Company: MCHB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001518715-25-000083
Chunk: 31

Company: Mechanics Bancorp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 31
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$888,706 $906,475 Washington, Oregon and California to secure public deposits191,850 195,212 Other securities pledged1,304 1,334 Total securities pledged as collateral$1,081,860 $1,103,021 The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little credit risk. Tax-exempt interest income on investment securities was $2.7 million and $2.8 million for quarters ended March 31, 2025 and 2024, respectively.

13

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:(in thousands)At March 31, 2025At December 31, 2024CRENon-owner occupied CRE$545,313 $570,750 Multifamily2,934,442 2,992,675 Construction/land development436,610 472,740 Total3,916,365 4,036,165 Commercial and industrial loansOwner occupied CRE340,106 361,997 Commercial business299,001 312,004 Total 639,107 674,001 Consumer loansSingle family1,088,264 1,109,095 Home equity and other419,480 412,535 Total  (1)1,507,744 1,521,630 Total LHFI 6,063,216 6,231,796 Allowance for credit losses ("ACL")(39,634)(38,743)Total LHFI less ACL$6,023,582 $6,193,053 (1)    Includes $1.2 million and $1.3 million of loans at March 31, 2025 and December 31, 2024, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.