Company: MCHB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001518715-25-000083
Chunk: 117

Company: Mechanics Bancorp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 117
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 lack of significant expected credit issues arising in future periods.

49

Noninterest Income consisted of the following:   

 Quarter Ended March 31,(in thousands)20252024Noninterest incomeGain on loan origination and sale activities (1)Single family $2,283 $1,986 CRE, multifamily and SBA933 320 Loan servicing income4,858 3,032 Deposit fees2,071 2,241 Other1,991 1,875 Total noninterest income$12,136 $9,454 

(1)   May include loans originated as held for investment. 

Noninterest income in the first quarter of 2025 increased from the first quarter of 2024 primarily due to a $0.9 million increase in gain on loan sales and a $1.8 million increase in loan servicing income. The gain on loan sales increased primarily due to an increase in CRE loan sales volume. The increase in loan servicing income is primarily due to an increase in the value of our single family mortgage servicing rights.

Loan servicing income, a component of noninterest income, consisted of the following: 

 Quarter Ended March 31,(in thousands)20252024Single family servicing income, netServicing fees and other$3,725 $3,839 Changes - amortization (1)(1,582)(1,428)Net2,143 2,411 Risk management, single family MSRs:Changes in fair value due to assumptions (2)271 618 Net gain (loss) from economic hedging (3)1,016 (1,110)Subtotal1,287 (492)Single Family servicing income 3,430 1,919 Commercial loan servicing income:Servicing fees and other2,782 2,515 Amortization of capitalized MSRs(1,354)(1,402)Total1,428 1,113 Total loan servicing income$4,858 $3,032 

(1)Represents changes due to collection/realization of expected cash flows and curtailments.

(2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. 

(3)The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $0.4 million and $0.3 million for