Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 31

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 31
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 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, that are subject to repricing at various time horizons, known as interest rate sensitivity gaps. 27

The following table presents sensitivity gaps for these different intervals: December 31, 2024 (dollars in thousands) 3 Mos. or Less More Than 3 Mos. to 6 Mos. More Than 6 Mos. to 12 Mos. More Than 12 Mos. to 3 Yrs. More Than 3 Yrs. to 5 Yrs. More Than 5 to 15 Yrs. More Than 15 Yrs. Non-Rate- Sensitive Total Interest-earning assets Cash & cash equivalents $ 406,600 $ — $ — $ — $ — $ — $ — $ — $ 406,600 FHLB Stock 45,049 — — — — — 5,627 — 50,676 Investment securities (1) 139,077 95,026 69,091 110,144 133,929 496,921 12,818 — 1,057,006 LHFS 20,312 — — — — — — — 20,312 LHFI (1) 1,267,949 413,055 576,358 1,708,257 1,418,040 777,129 71,008 — 6,231,796 Total 1,878,987 508,081 645,449 1,818,401 1,551,969 1,274,050 89,453 — 7,766,390 Noninterest-earning assets — — — — — — — 357,308 357,308 Total assets $ 1,878,987 $ 508,081 $ 645,449 $ 1,818,401 $