Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 74

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 74
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 costs is primarily due to reductions in leased space from branch closures in 2024. The decrease in general and administrative costs was due to lower merger related expenses and reductions in other costs which reflect the efforts made to eliminate or defer nonessential expenses.   

53

Financial Condition

During the six months ended June 30, 2025, our total assets decreased $514 million due primarily to a $306 million decrease in loans held for investment and a $206 million decrease in cash. In the six months ended June 30, 2025, total liabilities decreased $520 million due to a $556 million decrease in deposits. The decrease in deposits was primarily due to a $541 million decrease in brokered certificates of deposits. 

Credit Risk Management

During the second quarter of 2025, our ratios of nonperforming assets to total assets and total loans delinquent over 30 days, including nonaccrual loans, remained at low levels. As of June 30, 2025, our ratio of nonperforming assets to total assets was 0.76% as compared to 0.71% at December 31, 2024, and our ratio of total loans delinquent over 30 days, including nonaccrual loans, to total loans was 1.11% as compared to 1.06% at December 31, 2024. The total balance of past due and nonaccrual loans decreased slightly during the second quarter.

Management considers the current level of the ACL to be appropriate to cover estimated lifetime losses within our LHFI portfolio. The following table presents the ACL by product type:

 At June 30, 2025At December 31, 2024(dollars in thousands)AmountRate (1)AmountRate (1)CRENon-owner occupied CRE$1,791 0.35 %$1,739 0.30 %Multifamily18,948 0.65 %14,909 0.50 %Construction/land developmentMultifamily construction1,159 2.57 %849 0.86 %CRE construction71 0.59 %66 0.60 %Single family construction5,200 1.55 %6,737 2.10 %Single family construction to permanent150 0.44 %184 0.44 %Total 27,319 0.71 %24,484 0.61