Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 83

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 83
---
 impaired by factors that affect Mechanics specifically or the financial services industry in general. For example, factors that could detrimentally impact Mechanics’ access to liquidity sources include Mechanics’ consolidated financial results, a decrease in the level of Mechanics’ business activity due to a market downturn or adverse regulatory action against it, a reduction in Mechanics’ credit rating, any damage to Mechanics’ reputation, counterparty availability, changes in the activities of Mechanics’ business partners, changes affecting Mechanics’ loan portfolio or other assets, or any other event that could cause a decrease in depositor or investor confidence in Mechanics’ creditworthiness and business. Those factors may lead to depositors withdrawing Mechanics’ deposits or creditors limiting its borrowings. Mechanics’ access to liquidity could also be impaired by factors that are not specific to Mechanics, such as general business conditions, interest rate fluctuations, severe volatility or disruption of the financial markets, bank closures or negative views and expectations about the prospects for the financial services industry as a whole, or legal, regulatory, accounting, and tax environments governing Mechanics’ funding transactions. In addition, Mechanics’ ability to raise funds is strongly affected by the general state of the U.S. and world economies and financial markets as well as the policies and capabilities of the U.S. government and its agencies, and may remain or become increasingly difficult due to economic and other factors beyond Mechanics’ control, including the impact of tariffs. Any such event or failure to manage Mechanics’ liquidity effectively could affect Mechanics’ competitive position, increase its borrowing costs and the interest rates Mechanics pays on deposits, limit Mechanics’ access to the capital markets and have a material adverse effect on Mechanics’ consolidated financial condition and consolidated results of operations.

**Mechanics’ operational systems and networks have been, and will continue to be, subject to an increasing risk of continually evolving cybersecurity or other technological risks, which could result in a loss of customer business, financial liability, regulatory penalties, damage to Mechanics’ reputation or the disclosure of confidential information.**

Mechanics relies heavily on communications and information systems to conduct its business and maintain the security of confidential information and complex transactions, which subjects Mechanics to an increasing risk of cyber incidents, threats of cyberattacks from these activities, due to a combination of new technologies and the increasing use of the Internet to conduct financial transactions, and the potential failure, interruption or breach in the security of these systems, including those that could result from attacks or planned changes, upgrades and maintenance of these systems. Such cyber incidents could result in, and have in the past resulted in, failures or disruptions