Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 44

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 44
---
)   Includes additions for new 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 $1.6 million were recorded in other assets as of both June 30, 2025 and December 31, 2024.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 June 30, 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 $8.6 million and $5.1 million, respectively. 

32

Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following: Quarter Ended June 30,Six Months Ended June 30,(in thousands)2025202420252024Servicing income, net:Servicing fees and other$6,348 $6,562 $12,855 $12,916 Amortization of single family MSRs (1)(1,598)(1,713)(3,180)(3,141)Amortization of multifamily and SBA MSRs(1,455)(1,459)(2,809)(2,861)Total3,295 3,390 6,866 6,914 Risk management, single family MSRs:Changes in fair value of MSRs due to assumptions (2)4,373 529 4,644 1,147 Net gain (loss) from economic hedging (3)(118)(509)898 (1,619)Total4,255 20 5,542 (472)               Loan servicing income $7,550 $3,410 $12,408 $6,442 (1)  Represents changes due to collection/realization of expected cash flows and curtailments.(2)  Principally reflects changes in model assumptions