Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 70

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 70
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 tax assets in the fourth quarter of 2024. As a result, we do not expect to recognize tax expense until the deferred tax assets valuation allowance no longer exists. The $0.7 million income tax benefit recognized in the six months ended June 30, 2025 primarily relates to the reversal of the disparate tax effects on our AOCI resulting from recording a valuation allowance for the deferred tax assets related to AOCI in the fourth quarter of 2024. Our effective tax rate in the six months ended June 30, 2024 of 26.0% was higher than our statutory rate of 24.6% due to the impact of tax advantaged investments which creates a higher benefit due to our taxable loss. 

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Net Interest Income: The following tables set forth, for the periods indicated, information regarding (i) the total dollar amount of interest income from interest-earning assets and the resultant average yields on those assets; (ii) the total dollar amount of interest expense and the average rate of interest on our interest-bearing liabilities; (iii) net interest income; (iv) net interest rate spread; and (v) net interest margin:

Six Months Ended June 30, 20252024(dollars in thousands)AverageBalanceInterestAverageYield/CostAverageBalanceInterestAverageYield/CostAssets:Interest-earning assets:Loans (1)$6,116,736 $145,550 4.75 %$7,457,798 $173,918 4.63 %Investment securities (1)1,049,240 18,956 3.61 %1,201,618 22,692 3.78 %FHLB Stock, Fed Funds and other217,981 6,326 5.85 %313,903 9,211 5.87 %Total interest-earning assets7,383,957 170,832 4.62 %8,973,319 205,821 4.56 %Noninterest-earning assets373,062 413,841 Total assets$7,757,019 $9,387,160 Interest-bearing liabilities:Interest-bearing  deposits: (2)Demand deposits$315,456 $590 0.38 %$320,076 $354 0.22 %Money market and savings 1,627,853 13,755 1.69 %1,