Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 68

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 68
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 the impact of adverse credit migration of certain multifamily loans. The $1.0 million provision for credit losses in the first quarter of 2025 was primarily due to a $3.3 million increase in specific reserves which was partially offset by lower general reserves resulting in part from lower loan balances.

Noninterest income (loss) consisted of the following: 

 Quarter Ended (in thousands)June 30, 2025March 31, 2025Noninterest income (loss)Gain (loss) on loan origination and sale activities (1)Single family$3,182 $2,283 CRE, multifamily and SBA 53 933 Loan servicing income7,550 4,858 Deposit fees2,116 2,071 Other2,199 1,991 Total noninterest income (loss)$15,100 $12,136 

(1)   May include loans originated as held for investment. 

Loan servicing income, a component of noninterest income, consisted of the following: 

 Quarter Ended(in thousands)June 30, 2025March 31, 2025Single family servicing income, netServicing fees and other$3,684 $3,725 Changes - amortization (1)(1,598)(1,582)Net2,086 2,143 Risk management, single family MSRs:Changes in fair value due to assumptions (2)4,373 271 Net gain (loss) from economic hedging (3)(118)1,016 Subtotal4,255 1,287 Single Family servicing income 6,341 3,430 Commercial loan servicing income:Servicing fees and other2,664 2,782 Amortization of capitalized MSRs(1,455)(1,354)Total1,209 1,428 Total loan servicing income $7,550 $4,858 

(1)Represents changes due to collection/realization of expected cash flows and curtailments.

(2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. 

(3)The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $0.5 million and $0.4 million for the quarters ended June 30, 2025 and March 31,