Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 67

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 67
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 security. MBS and CMOs are excluded from the tables above because such securities are not due on a single maturity date. The weighted average yield of MBS and CMOs as of December 31, 2024 and 2023 was 3.01% and 3.21%, respectively. Sales of AFS investment securities were as follows: Years Ended December 31, (in thousands) 2024 2023 Proceeds $ — $ 4,693 Gross gains — 3 Gross losses — — 53

The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law. At December 31, (in thousands) 2024 2023 Federal Reserve Bank to secure existing or potential borrowings $ 906,475 $ 647,104 Washington, Oregon and California State to secure public deposits 195,212 10,654 Other securities pledged 1,334 1,440 Total securities pledged as collateral $ 1,103,021 $ 659,198 The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have minimal credit risk. Tax-exempt interest income on investment securities was $11.1 million and $11.3 million for 2024 and 2023, respectively. NOTE 3-LOANS AND CREDIT QUALITY: The Company's LHFI is divided into two portfolio segments, commercial loans and consumer loans. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loans within the commercial loan portfolio segment and single family and home equity and other loans within the consumer loan portfolio segment. LHFI consists of the following: At December 31, (in thousands) 2024 2023 CRE Non-owner occupied CRE $ 570,750 $ 641,885 Multifamily 2,992,675 3,940,189 Construction/land development 472,740 565,916 Total 4,036,165 5,147,990 Commercial and industrial loans Owner occupied CRE 361,997 391,285 Commercial business 312,004 359,049 Total 674,001 750,334 Consumer loans Single family 1,109,095 1,140,279 Home equity and