Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 365

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 365
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              |     |              |
| Operating lease right-of-use asset               |     |      -15,432 |     |      -15,801 |
| Amortizable assets                               |     |      -11,111 |     |      -14,819 |
| Non marketable securities                        |     |       -1,585 |     |       -1,429 |
| Bank premises & equipment                        |     |      -11,754 |     |      -13,131 |
| Deferred loan costs                              |     |       -3,710 |     |       -4,680 |
| Other                                            |     |       -1,115 |     |         -871 |
| Total deferred tax liability                     |     |      -44,707 |     |      -50,731 |
| Net deferred tax asset/(liability)               |     |      $51,646 |     |     $113,442 |

The Bank recorded no material unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022. Management assesses the available positive and negative evidence to estimate whether sufficient taxable income of the appropriate nature will be generated to permit use of the existing deferred tax assets. The Bank has federal and state net operating loss carryforwards of $12.6 million and $0.3 million, respectively, as of December 31, 2024. The state net operating losses will expire at various dates from 2040 to 2045. The federal operating losses do not have an expiration date. We believe that it is more likely than not, that the benefit of the net operating loss carryforwards will be realized in the carryforward period. The Bank recorded a valuation allowance as of December 31, 2023 against certain capital loss carryforwards. The capital losses were fully utilized against capital gains and the full valuation allowance was released in the year ended December 31, 2024 accordingly. The Bank and its subsidiaries are subject to U.S. federal income tax as well as income tax in various state jurisdictions. The Bank’s federal income tax returns are open and subject to examination from the 2021 tax return year and forward. The years open to examination by state and local government authorities varies by jurisdiction. NOTE 11 – RETIREMENT BENEFIT AND PROFIT SHARING PLANS The Bank’s qualified retirement plan (Retirement Plan) is a noncontributory defined benefit retirement plan, which generally provides for the payment of a monthly pension to employee