Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 388

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 388
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,071 |     |        422 |     |           107,118 |     |     18,531 |     |    205,189 |     |     18,953 |
| Collateralized loan obligations                  |     |                   — |     |          — |     |                 — |     |          — |     |          — |     |          — |
| Corporate bonds                                  |     |                   — |     |          — |     |            39,402 |     |      4,566 |     |     39,402 |     |      4,566 |
| Total securities                                 |     |          $1,498,469 |     |    $15,921 |     |          $486,665 |     |    $61,961 |     | $1,985,134 |     |    $77,882 |
| Number of securities with unrealized losses      |     |                     |     |         60 |     |                   |     |        280 |     |            |     |        340 |

The Bank did not record an ACL on the debt securities portfolio at March 31, 2025 or December 31, 2024. As of both dates the Bank considers any unrealized loss across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit quality. The Bank maintains that it has intent and ability to hold these securities until the amortized cost basis of each security is recovered and likewise concluded as of March 31, 2025 that it was not more likely than not that any of the securities in an unrealized loss position would be required to be sold.

F-58

TABLE OF CONTENTS

U.S. Treasuries and US Government-Sponsored Agency Securities - For the quarters presented, the unrealized losses on the Bank’s investments in U.S. treasuries and government-sponsored agency securities are primarily due to changes in interest rates. These securities have explicit or implicit guarantees from the U.S. government, thus posing no credit losses. Management expects to recover the entire amortized cost basis of these securities. Obligations of States and Political Subdivisions - For the quarters presented, the unrealized losses on the Bank’s investments in obligations of states and political subdivisions are primarily due to changes in interest rates and not due to credit losses. Management monitors these securities on an ongoing basis and performs an internal analysis which takes into account the impact