Company: MCHB
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001518715-25-000181
Chunk: 1

Company: Mechanics Bancorp
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 3
Chunk 1
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 the available-for-sale investment securities portfolio while maintaining a 

balance between risk and return. The Company's funding strategy is to grow core deposits while we efficiently supplement 

using wholesale borrowings.

We estimate the sensitivity of our net interest income to changes in market interest rates using an interest rate simulation 

model that includes assumptions related to the level of balance sheet growth, deposit repricing characteristics and the rate 

of prepayments for multiple interest rate change scenarios. Interest rate sensitivity depends on certain repricing 

characteristics in our interest-earnings assets and interest-bearing liabilities, including the maturity structure of assets and 

liabilities and their repricing characteristics during the periods of changes in market interest rates. Effective interest rate 

risk management seeks to ensure both assets and liabilities respond to changes in interest rates within an acceptable 

timeframe, minimizing the impact of interest rate changes on net interest income and capital. Interest rate sensitivity is 

measured as the difference between the volume of assets and liabilities, at a point in time, which are subject to repricing at 

various time horizons, known as interest rate sensitivity gaps.