Company: MCHB
Filing Date: 2025-05-09
Form Type: 425
Source: 0001518715-25-000085
Chunk: 29

Company: Mechanics Bancorp
Filing Date: 2025-05-09
Form: 425
Chunk 29
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 paid a certain amount for that. I think that’s pretty competitive. We have a deposit incentive plan, every employee in the bank is eligible. For a new account that's not interest bearing, we pay 1% on that. If you source it and bring it in. If you need some help, if you need to work with the treasury sales officer or a commercial banker, then we can split the award 50/50, but if you bring a $10 million offering account, it's a hundred thousand dollar payout. So it's material. It caps at a hundred. And then if you bring in interest bearing accounts, you're paying three or four or higher than the payouts ratchet down because obviously that's not as valuable of a business. But everyone's eligible and so everyone's encouraged to have that culture of referring new business and maybe it's not your cup of tea, but you can get that business in the door and we've had several employees that are back office refer in very large accounts and get paid a fair amount. And so we're all for that. We track it very carefully. If it's an increase in existing account as opposed to new business, then we cut the payouts in half. We do the same thing for wealth management. We have a wealth management referral plan. If you refer in a Trust account or AUM that can go through an outside RIA. We pay referral fees for that and every employee is eligible. We have specific lending plans that are more designed. The eligible participants are commercial RMs, so not really trying to incent as much around commercial lending, but the real area of focus for us is deposits, mortgage and to an extent wealth. And we don't have too many plans. We also have our

typical annual incentive plan, long term incentive plan. We're going to modify some of that as we become a public company on the long term side of things for those that are eligible for equity based awards. But it will look very similar to what you have today and who's eligible for that today. But there's a lot of extra, these referral plans that anyone can participate in if you can bring business into the bank. Mark Mason You raise wealth management. We haven't talked much about wealth management. Now I know you have a significant initiative there. Maybe you could speak a couple minutes about your wealth management. C.J. Johnson I think we've got a great wealth team. Mechanics Bank has historically had $2 billion dollar roughly trust business, managing trust for people