Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 63

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 63
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. Treasury securities 22,306 — (2,319) 19,987 Agency debentures 10,320 — (1,044) 9,276 Total $ 1,135,504 $ 374 $ (115,919) $ 1,019,959 HTM Municipal bonds $ 2,301 $ — $ (28) $ 2,273 At December 31, 2023 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value AFS MBS: Residential $ 194,141 $ 117 $ (10,460) $ 183,798 Commercial 55,235 — (7,479) 47,756 CMOs: Residential 473,269 8 (33,539) 439,738 Commercial 63,456 — (6,059) 57,397 Municipal bonds 452,057 670 (47,853) 404,874 Corporate debt securities 45,611 34 (7,098) 38,547 U.S. Treasury securities 22,658 — (2,474) 20,184 Agency debentures 60,202 5 (1,302) 58,905 Total $ 1,366,629 $ 834 $ (116,264) $ 1,251,199 HTM Municipal bonds $ 2,371 $ — $ (40) $ 2,331 At December 31, 2024 and 2023, the Company held $35 million and $25 million, respectively, of trading securities consisting of U.S. Treasury notes used as economic hedges of our single family mortgage servicing rights, which are carried at fair value and included with investment securities on the balance sheet. For 2024 and 2023, net losses of $1.7 million and $0.5 million on trading securities, respectively, were recorded in servicing income. MBS and CMOs represent securities issued or guaranteed by government sponsored enterprises ("GSEs"). Most of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by 51

either collateral or revenues from the specific project being financed) issued by various municipal organizations. As of December 31, 2024 and 2023, substantially all securities held