Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 99

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 99
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#### TABLE OF CONTENTS
substantial periods of time. Substantial legal liability or significant regulatory action against Mechanics could have a material adverse effect on its results of operations or cause significant reputational harm to Mechanics, which could seriously harm its business and prospects. Further, regulatory inquiries and subpoenas, other requests for information, or testimony in connection with litigation may require incurrence of significant expenses, including fees for legal representation and fees associated with document production. These costs may be incurred even if Mechanics is not a target of the inquiry or a party to the litigation. Any financial liability or reputational damage could have a material adverse effect on Mechanics’ business, which, in turn, could have a material adverse effect on Mechanics’ financial condition and results of operations.

**Mechanics may need to raise additional capital, but additional capital may not be available.**

Mechanics may need to raise additional capital, in the future, to support its growth, strategic objectives or to meet regulatory or other internal requirements. Mechanics’ ability to access the capital markets, if needed, will depend on a number of factors, including Mechanics’ consolidated financial condition, its business prospectus and the state of the financial markets. If capital is not available on favorable terms when Mechanics needs it, then it may have to curtail its growth or certain operations until market conditions become more favorable. Any diminished ability to raise additional capital, if needed, could restrict Mechanics’ ability to grow, require Mechanics to take actions that would affect its earnings negatively or otherwise affect its business and its ability to implement its business plan, capital plan and strategic goals adversely. Such events could have a material adverse effect on Mechanics’ business, consolidated financial condition and consolidated results of operations.

**The soundness of other financial institutions could adversely affect Mechanics’ business.**

Mechanics’ ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial services institutions are interrelated as a result of trading, clearing, counterparty and other relationships. Mechanics has exposure to many different counterparties and Mechanics routinely executes transactions with counterparties in the financial services industry, including brokers and dealers, commercial banks, credit unions, investment banks, mutual and hedge funds and other institutional clients. As a result, defaults by, or even negative speculation about, one or more financial services institutions, or the financial services industry in general, have led to market-wide liquidity problems in the past and could lead to losses or defaults by