Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 141

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 141
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 Operations.Level 3 recurring fair value measurement.DerivativesFutures and OptionsFair value is based on closing exchange prices.Level 1 recurring fair value measurement.Forward sale commitmentsInterest rate swapsFair value is based on quoted prices for identical or similar instruments when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs, including:               •       Forward interest rates •       Interest rate volatilitiesLevel 2 recurring fair value measurement.IRLCThe fair value considers several factors including:•       Fair value of the underlying loan based on quoted prices in     the secondary market, when available. •       Value of servicing•       Fall-out factorLevel 3 recurring fair value measurement. 

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The following tables presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis: At December 31, 2024(in thousands)Fair ValueLevel 1Level 2Level 3Assets:Trading securities - U.S. Treasury securities$34,746 $34,746 $— $— Investment securities AFSMortgage backed securities:Residential167,462 — 165,764 1,698 Commercial47,642 — 47,642 — Collateralized mortgage obligations:Residential317,444 — 317,444 — Commercial54,945 — 54,945 — Municipal bonds378,259 — 378,259 — Corporate debt securities24,944 — 24,944 — U.S. Treasury securities19,987 — 19,987 —         Agency debentures9,276 — 9,276 — Single family LHFS20,312 — 20,312 — Single family LHFI1,287 — — 1,287 Single family mortgage servicing rights72,901 — — 72,901 DerivativesFutures1 1 — — Forward sale commitments237 — 237 — Options3 3 — Interest rate lock commitments175 — — 175 Interest rate swaps10,250 — 10,250 — Total assets$1,159,871 $34,750 $1,049,060 $76,061 Liabilities