Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 82

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 82
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 could result in the disclosure of confidential client or customer information, damage to Mechanics’ reputation with Mechanics’ clients, customers and the market, customer dissatisfaction, additional costs such as repairing systems or adding new personnel or protection technologies, regulatory penalties, fines, remediation costs, exposure to litigation and other financial losses to both Mechanics and its clients and customers. Such events could also cause interruptions or malfunctions in Mechanics’ operations. Mechanics maintains cyber risk insurance, but this insurance may not be sufficient to cover all of Mechanics’ losses from any future breaches of Mechanics’ systems. Mechanics continues to evaluate its cybersecurity program and will consider incorporating new practices as necessary to meet the expectations of regulatory agencies in light of such cybersecurity guidance and regulatory actions and settlements for cybersecurity-related failures and violations by other industry participants. Such procedures include management-level engagement and corporate governance, risk management and assessment, technical controls, incident response planning, vulnerability testing, vendor management, intrusion detection monitoring, patch management and staff training. Even if Mechanics implements these procedures, however, Mechanics cannot assure you that it will be fully protected from a cybersecurity incident, the occurrence of which could adversely affect its reputation and financial condition. Business and results of operations may be adversely affected by unpredictable economic, market and business conditions. Mechanics’ business and results of operations are affected by general economic, market and business conditions. The credit quality of Mechanics’ loan portfolio necessarily reflects, among other things, the general economic conditions in the areas in which Mechanics conducts its business. Mechanics’ continued financial success depends to a degree on factors beyond its control, including:

| • | national and local economic conditions, such as the level and volatility of short-term and long-term interest rates, inflation, home prices, unemployment and under-employment levels, energy prices, bankruptcies, household income and consumer spending; |

| • | the availability and cost of capital and credit; |

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| • | incidence of customer fraud; and |

| • | federal, state and local laws affecting these matters. |

The deterioration of any of these conditions, as Mechanics has experienced with past economic downturns, could adversely affect Mechanics’ consumer and commercial businesses and securities portfolios, Mechanics’ level of loan charge-offs and provision for credit losses, the carrying value of Mechanics’ deferred tax assets, Mechanics’ capital levels and liquidity, and Mechanics’ results of operations. Several factors could pose risks to the financial services industry, including tightening monetary policies by central banks, rising energy prices, trade wars, restrictions and tariffs; slowing growth in emerging economies; geopolitical matters