Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 99

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 99
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 to prevent any such violations of rules and regulations, such violations may occur from time to time, which could have a material adverse effect on Mechanics’ financial condition and results of operations.

Compliance with new laws and regulations has resulted and likely will continue to result in additional costs, which could be significant and may adversely impact Mechanics’ results of operations, financial condition and liquidity. The

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U.S. Congress, state legislatures and federal and state regulatory agencies frequently revise banking and securities laws, regulations and policies.

Mechanics received a “satisfactory” CRA rating in connection with its most recent CRA performance evaluation. A CRA rating of less than “satisfactory” adversely affects a bank’s ability to establish new branches and impairs a bank’s ability to commence new activities that are “financial in nature” or acquire companies engaged in these activities. Other regulatory exam ratings or findings also may adversely impact Mechanics’ ability to branch, commence new activities or make acquisitions.

Mechanics cannot predict whether or in what form any other proposed regulations or statutes will be adopted or the extent to which its business may be affected by any new regulation or statute. These changes become less predictable, yet more likely to occur, following the transition of power from one presidential administration to another, especially as occurred in 2025, when it involves a change in the governing political party. Any such changes could subject Mechanics’ business to additional costs, limit the types of financial services and products Mechanics may offer and increase the ability of non-banks to offer competing financial services and products, among other things.

**Mechanics’ failure to comply with stringent capital requirements could result in regulatory criticism, requirements and restrictions, and Mechanics may be subject to more stringent capital requirements in the future.**

Mechanics is subject to capital adequacy guidelines and other regulatory requirements specifying minimum amounts and types of capital which it must maintain. From time to time, the regulators change these regulatory capital adequacy guidelines. Mechanics’ failure to meet applicable regulatory capital requirements could result in one or more of Mechanics’ regulators placing limitations or conditions on Mechanics’ activities. If Mechanics fails to meet the minimum capital guidelines and other regulatory requirements as applicable to Mechanics, then Mechanics may be restricted in the types of activities it may conduct, and Mechanics may be prohibited from taking certain capital actions. Failure to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on Mechanics’ financial