Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 21

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 21
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 borrowings and other purposes as permitted or required by law: (in thousands)At June 30, 2025At December 31, 2024Federal Reserve Bank to secure borrowings$864,307 $906,475 Washington, Oregon and California to secure public deposits195,385 195,212 Other securities pledged1,278 1,334 Total securities pledged as collateral$1,060,970 $1,103,021 The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little credit risk. Tax-exempt interest income on investment securities was $2.6 million and $2.8 million for quarters ended June 30, 2025 and 2024, and $5.3 million and $5.6 million for the six months ended June 30, 2025 and 2024, respectively.

13

NOTE 3-LOANS AND CREDIT QUALITY:

The Company's LHFI is divided into two portfolio segments, commercial loans and consumer loans. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes:  non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loans within the commercial loan portfolio segment and single family and home equity and other loans within the consumer loan portfolio segment. LHFI consists of the following:(in thousands)At June 30, 2025At December 31, 2024CRENon-owner occupied CRE$508,781 $570,750 Multifamily2,895,342 2,992,675 Construction/land development425,718 472,740 Total3,829,841 4,036,165 Commercial and industrial loansOwner occupied CRE324,299 361,997 Commercial business285,612 312,004 Total 609,911 674,001 Consumer loansSingle family1,060,566 1,109,095 Home equity and other432,821 412,535 Total  (1)1,493,387 1,521,630 Total LHFI 5,933,139 6,231,796 Allowance for credit losses ("ACL")(45,806)(38,743)Total LHFI less ACL$5,887,333 $6,193,053 (1)