Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 97

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 97
---
 on Mechanics’ common stock.

**Mechanics is dependent on its management team, and the loss of Mechanics’ senior executive officers or other key employees could impair Mechanics’ relationship with customers and adversely affect its business and financial results.**

Mechanics’ success is dependent, to a large degree, upon the continued service and skills of its existing management team and other key employees with long-term customer relationships. Mechanics’ continued success and growth

<div align='center'>48</div>

#### TABLE OF CONTENTS
depend in large part on the efforts of these key personnel and Mechanics’ ability to attract, motivate and retain highly qualified senior and middle management and other skilled employees to complement and succeed to its core senior management team. Mechanics’ business and growth strategies rely upon its ability to retain employees with experience and business relationships.

Mechanics’ future success depends in large part on its ability to retain and motivate its existing employees and attract new employees. Competition for the best employees can be intense. The loss of one or more of such key personnel could have an adverse impact on Mechanics’ business because of their skills, knowledge of the market, years of industry experience and the difficulty of finding qualified replacement personnel. If any of these personnel were to leave and compete with Mechanics, then its business, financial condition, results of operations and growth could suffer.

**Mechanics is subject to losses due to fraudulent and negligent acts.**

Mechanics’ banking and mortgage origination businesses expose it to fraud risk from its loan and deposit customers and the parties they do business with, as well as from its employees, contractors and vendors. Mechanics relies heavily upon information supplied by third parties, including the information contained in credit applications, property appraisals, title information, equipment pricing and valuation, and employment and income documentation, in deciding which loans to originate and the terms of those loans. If any of the information upon which Mechanics relies is misrepresented, either fraudulently or negligently, and the misrepresentation is not detected before funding, then the value of the collateral may be significantly lower than expected, the source of repayment may not exist or may be significantly impaired, or Mechanics may fund a loan that it would not have funded or on terms Mechanics would not have extended. While Mechanics has underwriting and operational controls in place to help detect and prevent such fraud, no such controls are effective to detect or prevent all fraud. Whether a misrepresentation is made by the applicant, another third party or one of Mechanics’ own employees, Mechanics may bear the risk of loss associated with the