Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 396

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 396
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|:------------------------|:----|:-----------------------------|:----|:-----------------|:----|-------------:|
| (dollars in thousands)  |     | Principal                    
 Forgiveness                  |     | Weighted-        
 Average Interest 
 Rate Reduction   |     |    Weighted- 
 Average Term 
    Extension 
     <months> |
| Commercial & Industrial |     | $—                           |     | —%               |     |           13 |
| Commercial Real Estate  |     |                              |     |                  |     |              |
| Other                   |     | —                            |     | —                |     |            9 |
| Total                   |     | $—                           |     | —%               |     |           22 |

There were no loans that had a payment default during the quarters ended March 31, 2025 and 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. Upon the Bank’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. Credit Quality Indicators: The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic trends and other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis includes all loans regardless of balances. This analysis is performed on a quarterly basis.

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TABLE OF CONTENTS

The Bank uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard