Company: MCHB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001518715-25-000083
Chunk: 27

Company: Mechanics Bancorp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 27
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987  Agency debentures10,320 — (1,044)9,276 Total$1,135,504 $374 $(115,919)$1,019,959 HTM   Municipal bonds$2,301 $— $(28)$2,273 

10

At March 31, 2025, and December 31, 2024, the Company held $46 million and $35 million, respectively, of trading securities, consisting of US Treasury notes used as economic hedges of our single family mortgage servicing rights, which are carried at fair value and included within investment securities on the balance sheet. For the quarters ended March 31, 2025 and 2024, net gains of $0.8 million and net losses of $0.6 million on trading securities, respectively, were recorded in servicing income. MBS and CMOs represent securities issued or guaranteed by government sponsored enterprises ("GSEs"). Most of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by either collateral or revenues from the specific project being financed) issued by various municipal corporations. As of March 31, 2025 and December 31, 2024, substantially all securities held, including municipal bonds and corporate debt securities, were rated investment grade based upon nationally recognized statistical rating organizations where available and, where not available, based upon internal ratings. Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position: At March 31, 2025 Less than 12 months12 months or moreTotal(in thousands)GrossunrealizedlossesFairvalueGrossunrealizedlossesFairvalueGrossunrealizedlossesFairvalueAFSMBS:Residential$(1)$530 $(5,486)$155,525 $(5,487)$156,055 Commercial— — (5,969)48,462 (5,969)48,462 CMOs:Residential(9)5,394 (26,935)278,518 (26,944)283,912 Commercial(2)3,081 (4,049