Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 161

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 161
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 flows during these periods.

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TABLE OF CONTENTS

Cash flows from operating activities Mechanics’ operating assets and liabilities are used to support our lending activities. For 2024, $292.2 million of cash was provided by operating activities primarily due to our net income for the year, excluding the impact of the $207.2 million loss on sale of securities. For 2023 and 2022, cash of $266.0 million and $318.2 million, respectively, was provided by operating activities primarily due to our net income for the year. Cash flows from investing activities Mechanics’ investing activities are primarily related to investment securities and LHFI. For 2024, cash of $476.2 million was provided by investing activities primarily from net loan originations and principal collections partially offset by AFS investment security purchases, net of maturities and sales. For 2023, cash of $1.7 billion was provided by investing activities primarily from net loan originations and principal collections and maturities of AFS securities. For 2022, cash of $258.1 million was provided by investing activities primarily from net loan originations and principal collections, and maturities and sales of AFS securities. Cash flows from financing activities Mechanics’ financing activities are primarily related to deposits, net proceeds from borrowings and equity transactions. For 2024, cash of $1.2 billion was used in financing activities primarily due to a net decrease in bank term funding, decreases in deposits and cash dividends paid. For 2023, cash of $813.4 million was used in financing activities primarily due to decreases in deposits, decreases in short-term FHLB borrowings and cash dividends paid, partially offset by a net increase in bank term funding. For 2022, cash of $1.2 billion was used in financing activities primarily due to a net decreases in deposits and cash dividends paid, partially offset by a net increase in short-term FHLB borrowings. Capital Resources and Dividends The capital rules applicable to United States based bank holding companies and federally insured depository institutions (“Capital Rules”) require Mechanics to meet specific capital adequacy requirements that, for the most part, involve quantitative measures, primarily in terms of the ratios of their capital to their assets, liabilities, and certain off-balance sheet items, calculated under regulatory accounting practices. In addition, prompt corrective action regulations place a federally insured depository institution, such as Mechanics, into one of five capital categories on the basis of its capital ratios: