Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 151

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 151
---
.

NOTE 16–LEASES:

We have operating and finance leases for certain office space and finance leases for certain equipment. These leases have remaining lease terms of up to 11 years. The Company, as sublessor, subleases certain office and retail space in which the terms of any significant subleases end by 2027. Under all of our executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $2.8 million in 2025, $2.9 million in 2026, $2.7 million in 2027, $69 thousand in 2028 and $29 thousand in 2029.In 2024 we incurred $2.0 million in impairment charges due primarily to an updated estimate of the cost impact of a leased space for which the sublease was not extended and expired in 2024.The components of lease expense were as follows: Years Ended December 31,(in thousands)20242023Operating lease cost$7,321 $8,103 Finance lease cost:Amortization of right-of-use assets181 425 Interest on lease liabilities6 8 Variable lease costs and nonlease components1,633 1,470 Sublease income(649)(1,376)Total$8,492 $8,630 

101

Supplemental cash flow information related to leases were as follows: Years Ended December 31,(in thousands)20242023Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows from operating leases$10,421 $11,248 Operating cash flows from finance leases6 8 Financing cash flows from finance leases168 456 Right-of-use assets obtained Operating leases$5,622 $2,690 Finance leases— 385         Supplemental information related to leases was as follows:At December 31,(in thousands, except lease term and discount rate)20242023Operating lease right-of-use assets, included in other assets$25,235$27,594Operating lease liabilities, included in accounts payable and other liabilities30,99335,043Finance lease right-of-use assets, included in other assets$48$318Finance lease liabilities, included in accounts payable and other liabilities 37288Weighted Average Remaining lease term in yearsOperating leases4.314.49Finance leases0.581.58Weighted Average Discount RateOperating leases1.82%1.88%Finance leases3.50