Company: MCHB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001518715-25-000083
Chunk: 60

Company: Mechanics Bancorp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 60
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 level 3 recurring assets as the valuation technique included a significant unobservable input. The total amount of held for investment loans where fair value option election was made was $1.2 million and $1.3 million at March 31, 2025 and December 31, 2024, respectively.The following information presents significant Level 3 unobservable inputs used to measure fair value of certain assets:(dollars in thousands)Fair ValueValuationTechniqueSignificant UnobservableInputsLowHighWeighted AverageMarch 31, 2025Investment securities AFS$1,699 Income approachImplied spread to benchmark interest rate curve2.25%2.25%2.25%Single family LHFI1,248 Income approachImplied spread to benchmark interest rate curve2.80%4.97%3.45%Interest rate lock commitments, net556 Income approachFall-out factor0.77%22.98%8.30%Value of servicing0.62%1.61%1.01%December 31, 2024Investment securities AFS$1,698 Income approachImplied spread to benchmark interest rate curve2.25%2.25%2.25%Single family LHFI1,287 Income approachImplied spread to benchmark interest rate curve2.94%5.56%3.69%Interest rate lock commitments, net126 Income approachFall-out factor0.83%29.13%9.28%Value of servicing0.78%2.15%1.37%We had no LHFS where the fair value was not derived with significant observable inputs at March 31, 2025 and December 31, 2024.

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The following table presents fair value changes and activity for certain Level 3 assets for the periods indicated: (in thousands)Beginning balanceAdditionsTransfersPayoffs/SalesChange in mark to market (1)Ending balanceQuarter Ended March 31, 2025Investment securities AFS$1,698 $— $— $(50)$51 $1,699 Single family LHFS— — 50 (50)— $— Single family LHFI1,287 — (50)— 11 1,248 Quarter Ended March 31, 2024Investment securities AFS$1,860 $— $— $(50)$(19)$1,791 Single family LHFI1,