Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 164

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 164
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 flows from financing activities Mechanics’ financing activities are primarily related to deposits, net proceeds from borrowings and equity transactions. For the quarter ended March 31, 2025, net cash of $44.4 million was provided by financing activities, due to an increase in deposits. For the quarter ended March 31, 2024, net cash of $200.1 million was used in financing activities, primarily due to a decrease in deposits and cash dividends paid. Capital Resources and Dividends The Capital Rules require Mechanics to meet specific capital adequacy requirements that, for the most part, involve quantitative measures, primarily in terms of the ratios of their capital to their assets, liabilities, and certain off-balance sheet items, calculated under regulatory accounting practices. In addition, prompt corrective action regulations place a federally insured depository institution, such as Mechanics, into one of five capital categories on the basis of its capital ratios: (i) well capitalized; (ii) adequately capitalized; (iii) undercapitalized; (iv) significantly undercapitalized; or (v) critically undercapitalized. A depository institution’s primary federal regulatory agency may determine that, based on certain qualitative assessments, the depository institution should be assigned to a lower capital category than the one indicated by its capital ratios. At each successive lower capital category, a depository institution is subject to greater operating restrictions and increased regulatory supervision by its federal bank regulatory agency. The following tables present the regulatory capital amounts and ratios (inclusive of capital 2.5% conservation buffer) for Mechanics as of the dates indicated:

|                                                        |     | March 31, 2025 |     |        |     |                     |     |       |     |                      |     |       |
|:-------------------------------------------------------|:----|---------------:|:----|:-------|:----|--------------------:|:----|:------|:----|---------------------:|:----|:------|
|                                                        |     |         Actual |     |        |     | For Minimum Capital 
   Adequacy Purposes |     |       |     | To Be Categorized As 
   “Well Capitalized” |     |       |
| (in thousands)                                         |     |         Amount |     | Ratio  |     |              Amount |     | Ratio |     |               Amount |     | Ratio |
| Tier 1 leverage capital (to average assets)            |     |     $1,546,975 |     | 9.91%  |     |