Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 107

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 107
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.06% at December 31, 2024. The total balance of past due and nonaccrual loans decreased slightly during the second quarter.

Management considers the current level of the ACL to be appropriate to cover estimated lifetime losses within our LHFI portfolio. The following table presents the ACL by product type:

 At June 30, 2025At December 31, 2024(dollars in thousands)AmountRate (1)AmountRate (1)CRENon-owner occupied CRE$1,791 0.35 %$1,739 0.30 %Multifamily18,948 0.65 %14,909 0.50 %Construction/land developmentMultifamily construction1,159 2.57 %849 0.86 %CRE construction71 0.59 %66 0.60 %Single family construction5,200 1.55 %6,737 2.10 %Single family construction to permanent150 0.44 %184 0.44 %Total 27,319 0.71 %24,484 0.61 %Commercial and industrial loansOwner occupied CRE610 0.19 %576 0.16 %Commercial business11,150 3.96 %6,886 2.23 %Total 11,760 1.94 %7,462 1.12 %Consumer loansSingle family3,602 0.37 %3,610 0.35 %Home equity and other3,125 0.72 %3,187 0.77 %Total 6,727 0.48 %6,797 0.47 %Total ACL $45,806 0.78 %$38,743 0.63 %

(1)   The ACL rate is calculated excluding balances related to loans that are insured by the FHA or guaranteed by the VA or SBA.

Liquidity and Sources of Funds

Liquidity risk management is primarily intended to ensure we are able to maintain sources of cash to adequately fund operations and meet our obligations, including demands from depositors, draws on lines of credit and paying any creditors, on a timely and cost-effective basis, in various market conditions. Our liquidity profile is influenced by changes in market conditions, the composition of the balance sheet and risk tolerance levels. The Company has established liquidity guidelines and operating