Company: MCHB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001518715-25-000083
Chunk: 51

Company: Mechanics Bancorp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 51
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 loan sales and changes in estimated probable future repurchase losses on previously sold loans.(2)   Includes principal losses and accrued interest on repurchased loans, "make-whole" settlements, settlements with claimants and certain related expenses.The Company has agreements with certain investors to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $1.5 million and $1.6 million were recorded in other assets as of March 31, 2025 and December 31, 2024, respectively.When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company records the balance of the loans as other assets and other liabilities. At March 31, 2025 and December 31, 2024, delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets totaled $6.8 million and $5.1 million, respectively. 

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Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following: Quarter Ended March 31,(in thousands)20252024Servicing income, net:Servicing fees and other$6,507 $6,354 Amortization of single family MSRs (1)(1,582)(1,428)Amortization of multifamily and SBA MSRs(1,354)(1,402)Total3,571 3,524 Risk management, single family MSRs:Changes in fair value of MSRs due to assumptions (2)271 618 Net gain (loss) from economic hedging (3)1,016 (1,110)Total1,287 (492)               Loan servicing income $4,858 $3,032 (1)  Represents changes due to collection/realization of expected cash flows and curtailments.(2)  Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.(3)    The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $0.4 million and $0.3 million for quarters ended March 31, 2025 and