Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 130

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 130
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 presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated:  Years Ended December 31,(in thousands)20242023Recognized in noninterest income:  Net gain (loss) on loan origination and sale activities (1)$224 $804 Loan servicing income (loss) (2)(1,230)(1,255)        Other (3)3 (3)(1)Comprised of forward contracts used as an economic hedge of loans held for sale and interest rate lock commitments ("IRLCs") to customers.(2)Comprised of futures, US Treasury options and forward contracts used as economic hedges of single family MSRs.(3)Impact of interest rate swap agreements executed with commercial banking customers and broker dealer counterparties.

The notional amount of open interest rate swap agreements executed with commercial banking customers and broker dealer counterparties at December 31, 2024 and 2023 were $223 million and $236 million, respectively. 

NOTE 9–MORTGAGE BANKING OPERATIONS:

LHFS consisted of the following: At December 31,(in thousands)20242023Single family $20,312 $12,849 CRE, multifamily and SBA— 6,788 Total $20,312 $19,637  Loans sold consisted of the following for the periods indicated:  Years Ended December 31,(in thousands)20242023Single family$404,952 $335,751 CRE, multifamily and SBA(1)1,103,742 26,839 Total$1,508,694 $362,590 (1)  2024 amounts include the sale of $990 million of multifamily loans in the fourth quarter.Gain (loss) on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following:  Years Ended December 31,(in thousands)20242023Single family $9,573 $8,500 CRE, multifamily and SBA(1)(86,463)846 Total $(76,890)$9,346 (1) 2024 amounts include loss of $88.8 million on the sale of $990 million of multifamily loans in the fourth quarter.

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The Company's portfolio of loans serviced for others is primarily comprised of loans held in U.S.