Mechanics BancorpMCHB

Mechanics Bancorp Debt Disclosure

10-KFiled Mar 17, 20263 min read
BORROWINGS AND LONG-TERM DEBT
Federal Home Loan Bank (FHLB) Advances
The Company did not have any outstanding FHLB advances as of December 31, 2025 and 2024.
As of December 31, 2025 and 2024, the Company’s investment in capital stock of the FHLB totaled $17.3 million. The
Company had $10.5 billion of loans pledged to the FHLB, which permits up to $6.2 billion of available borrowing capacity
as of December 31, 2025.
Federal Reserve Bank Discount Window
The Company had no outstanding Discount Window borrowings as of December 31, 2025 and 2024.
The Company had pledged $1.3 billion of consumer loans through the Borrower-In-Custody Program and investment
securities with a carrying value of $3.4 billion to the Federal Reserve Bank Discount Window, which permits $4.4 billion
of additional borrowing capacity as of December 31, 2025.
Brokered and Other Wholesale Funding
The Company had no brokered or other wholesale funding outstanding as of December 31, 2025 and 2024.
The Company had $5.3 billion of available borrowing capacity under borrowing lines established with other financial
institutions as of December 31, 2025.
Long-Term Debt
As a result of the Merger, the Company assumed Subordinated Notes, Senior Notes and TRUPS debt. These balances are
reported beginning on the Merger date of September 2, 2025, therefore there are no balances or activity for 2024 and as of 
December 31, 2024.
The trust preferred securities were issued by legacy HomeStreet, Inc. during the period from 2005 through 2007. In
connection with the issuance of trust preferred securities, legacy HomeStreet, Inc. issued to HomeStreet Statutory Trust,
Junior Subordinated Deferrable Interest Debentures. The sole assets of the HomeStreet Statutory Trust are the Subordinated
Debt Securities I, II, III, and IV.
The Company’s outstanding long-term debt as of December 31, 2025 is as follows:
December 31, 2025
(dollars in thousands)
Par Value
Carrying Value (1)
Rate
Maturity Date
Senior Notes (2)
$65,000
$64,835
6.5% per annum
June 1, 2026
Subordinated Notes
96,000
79,626
3.5% per annum (3)
January 30, 2032
TRUPs:
HomeStreet Statutory Trust I (5)
5,155
4,090
3-month Term SOFR + 1.96% (4)
June 15, 2035
HomeStreet Statutory Trust II (5)
20,619
15,943
3-month Term SOFR + 1.76% (4)
December 15, 2035
HomeStreet Statutory Trust III (5)
20,619
15,686
3-month Term SOFR + 1.63% (4)
March 15, 2036
HomeStreet Statutory Trust IV (5)
15,464
11,834
3-month Term SOFR + 1.94% (4)
June 15, 2037
$222,857
$192,014
(1)Includes discounts from purchase accounting adjustments as a result of the Merger on September 2, 2025.
(2)On March 1, 2026, the Company redeemed at par, its $65 million of Senior Notes, see Note 27, “Subsequent Events.”
(3)The Subordinated Notes bear interest at a rate of 3.5% per annum until January 30, 2027. From January 30, 2027, until the maturity date or the date
of earlier redemption, the notes will bear interest equal to the three-month Term SOFR plus 215 basis points.
(4)These rates reflect the floating rates as of December 31, 2025.
(5)Call options are exercisable at par and are callable, without penalty, on a quarterly basis.

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2024Mar 7, 2025
2023Mar 6, 2024
2022Mar 6, 2023
2021Mar 4, 2022
2020Mar 12, 2021
2019Mar 6, 2020
2018Mar 6, 2019
2017Mar 6, 2018
2016Mar 9, 2017
2015Mar 11, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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