Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 154

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 154
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 due to lower net interest income of $68.0 million, partially offset by a lower provision for credit losses on loans and leases of $22.9 million, an increase in noninterest income of $10.5 million and a decrease in noninterest expense of $7.5 million. Income Taxes: Our effective tax rate during 2024 was 18.8% as compared to 27.4% in 2023 and 28.3% in 2022 and our federal statutory rate was 21.0%. Our effective tax rate was lower than our statutory rate in 2024 due to the benefits of tax advantaged investments, realized losses on sales of debt securities, and valuation allowances for equity investments, partially offset by state income taxes. Our effective tax rate was higher than the statutory rate in 2023 and 2022 primarily as a result of state taxes, partially offset by valuation allowances for equity investments. Net Interest Income: The following table sets 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:

|                                       |     | Year Ended December 31, 
                    2024 |     |          |     |         |     |        2023 |     |          |     |         |     |        2022 |     |          |     |         |
|:--------------------------------------|:----|------------------------:|:----|---------:|:----|:--------|:----|------------:|:----|---------:|:----|:--------|:----|------------:|:----|---------:|:----|:--------|
| (in thousands)                        |     |                 Average 
                 Balance |     | Interest |     | Average 
 Yield/  
 Cost    |     |     Average 
     Balance |     | Interest |     | Average 
 Yield/  
 Cost    |     |     Average 
     Balance |     | Interest |     | Average 
 Yield/  
 Cost    |
| Assets:                               |     |                         |     |          |     |         |     |             |     |          |     |         |     |             |     |          |     |         |
| Interest-earning assets: