Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 85

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 85
---
 or proceedings. Although Mechanics devotes significant resources to maintain and regularly upgrade its systems and networks to safeguard critical business applications, there is no guarantee that these measures or any other measures can provide absolute security. Mechanics’ computer systems, software and networks may be adversely affected by cyber incidents such as: unauthorized access; loss or destruction of data (including confidential client information); account takeovers; unavailability of service; computer viruses or other malicious code; cyberattacks; and other events. In addition, Mechanics’ protective measures may not promptly detect intrusions, and Mechanics may experience losses or incur costs or other damage related to intrusions that go undetected or go undetected for significant periods of time, at levels that adversely affect Mechanics’ financial results or reputation. Further, because the methods used to cause cyberattacks change frequently, or in some cases cannot be recognized until launched, Mechanics may be unable to implement preventative measures or proactively address these methods until they are discovered. Cyber threats have derived or may derive from human error, fraud or malice on the part of employees or third parties, or may result from accidental technological failure. Additional challenges are posed by external extremist parties, including foreign state actors, in some circumstances, as a means to promote political ends. If one or more of these events occurs, then it could result in the disclosure of confidential client or customer information, damage to Mechanics’ reputation with Mechanics’ clients, customers and the market, customer dissatisfaction, additional costs such as repairing systems or adding new personnel or protection technologies, regulatory penalties, fines, remediation costs, exposure to litigation and other financial losses to both Mechanics and its clients and customers. Such events could also cause interruptions or malfunctions in Mechanics’ operations. Mechanics maintains cyber risk insurance, but this insurance may not be sufficient to cover all of Mechanics’ losses from any future breaches of Mechanics’ systems. Mechanics continues to evaluate its cybersecurity program and will consider incorporating new practices as necessary to meet the expectations of regulatory agencies in light of such cybersecurity guidance and regulatory actions and settlements for cybersecurity-related failures and violations by other industry participants. Such procedures include management-level engagement and corporate governance, risk management and assessment, technical controls, incident response planning, vulnerability testing, vendor management, intrusion detection monitoring, patch management and staff training. Even if Mechanics implements these procedures, however, Mechanics cannot assure you that it will be fully protected from a cybersecurity incident, the occurrence of which could adversely affect its reputation and financial condition. Business and results of operations may be adversely affected by unpredictable economic, market and business conditions.