Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 371

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 371
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 amount does not necessarily represent future cash requirements. The Bank’s exposure to credit loss is the contract amount of the commitment in the event of nonperformance by the borrower. The Bank uses the same credit policies in making commitments as it does for on-balance-sheet instruments and evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank, is based on management’s credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and real property. The Bank also issues standby letters of credit, which are unconditional commitments to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support construction, bonds, private borrowing arrangements, and similar transactions. Most of these guarantees are one to three year commitments and are not expected to be drawn on. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral as deemed necessary, as described above.

F-42

TABLE OF CONTENTS

The contract amounts of commitments not reflected on the Consolidated Balance Sheets at December 31, 2024 and 2023 were as follows:

| (in thousands)            |     | December 31, 2024 |     |               |     |            |     | December 31, 2023 |     |               |     |            |
|:--------------------------|:----|------------------:|:----|--------------:|:----|-----------:|:----|------------------:|:----|--------------:|:----|-----------:|
|                           |     |        Fixed rate |     | Variable rate |     |      Total |     |        Fixed rate |     | Variable rate |     |      Total |
| Loan commitments          |     |          $648,699 |     |      $485,001 |     | $1,133,700 |     |          $723,451 |     |      $337,804 |     | $1,061,255 |
| Standby letters of credit |     |           $19,227 |     |            $— |     |    $19,227 |     |           $26,448 |     |            $— |     |    $26,448 |

NOTE 15 – CONTINGENCIES The Bank is occasionally named as a defendant in or threatened with claims and legal actions arising in the ordinary course of business. The outcomes of