Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 95

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 95
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**Mechanics ultimately may write off goodwill and other intangible assets resulting from business combinations.**

Goodwill is initially recorded at fair value and is not amortized but is reviewed at least annually or more frequently if events or changes in circumstances indicate that the carrying value may not be fully recoverable. If Mechanics’ estimates of goodwill fair value change, then Mechanics may determine that impairment charges are necessary. The determination of whether impairment has occurred, takes into consideration a number of factors, including, but not limited to, operating results, business plans, economic projections, anticipated future cash flows and current market data. On an ongoing basis, Mechanics evaluates whether facts and circumstances indicate any impairment of value of intangible assets. As circumstances change, Mechanics may not realize the value of these intangible assets. If Mechanics determines that a material impairment has occurred, then it will be required to write off the impaired portion of intangible assets, which could have a material adverse effect on Mechanics’ results of operations in the period in which the write-off occurs. Mechanics continuously monitors developments regarding future operating performance of Mechanics’ business, overall economic conditions, market capitalization and any other triggering events or circumstances that may indicate an impairment in the future.

No assurance can be given that Mechanics will not record an impairment loss on goodwill in the future and any such impairment loss could have a material adverse effect on its business, consolidated financial condition and Mechanics’ consolidated results of operations. Furthermore, even though goodwill is a noncash item, significant impairment of goodwill could subject Mechanics to regulatory limitations, including the ability to pay dividends on Mechanics’ common stock.

**Mechanics is dependent on its management team, and the loss of Mechanics’ senior executive officers or other key employees could impair Mechanics’ relationship with customers and adversely affect its business and financial results.**

Mechanics’ success is dependent, to a large degree, upon the continued service and skills of its existing management team and other key employees with long-term customer relationships. Mechanics’ continued success and growth

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depend in large part on the efforts of these key personnel and Mechanics’ ability to attract, motivate and retain highly qualified senior and middle management and other skilled employees to complement and succeed to its core senior management team. Mechanics’ business and growth strategies rely upon its ability to retain employees with experience and business relationships.

Mechanics’ future success depends in large part on its ability to retain and motivate its existing employees and attract new employees. Competition for the best employees can be