Exhibit 99.2

MECHANICS BANK

Consolidated Financial Statements for the six months ended June 30, 2025 and 2024	Page

Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (Unaudited)	1
Consolidated Income Statements (Unaudited)	2
Consolidated Statements of Comprehensive Income (Unaudited)	3
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)	4
Consolidated Statements of Cash Flows (Unaudited)	5
Notes to Consolidated Financial Statements (Unaudited)	6

MECHANICS BANK

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2025 AND DECEMBER 31, 2024

(Unaudited)

(in thousands, except shares)	June 30, 2025			December 31, 2024
ASSETS
Cash and cash equivalents	$	2,078,960		$	999,711
Securities available-for-sale, at fair value		2,562,438			3,065,251
Securities held-to-maturity, at amortized cost (fair value of $1,199,559 and $1,196,000 at June 30, 2025 and December 31, 2024, respectively)		1,391,211			1,440,494
Loans held for sale		415			543
Loan and lease receivables		9,239,834			9,643,497
Allowance for credit losses on loans and leases		(68,334	)		(88,558	)
Net loan and lease receivables		9,171,500			9,554,939
Other real estate owned		—			15,600
Federal Home Loan Bank stock, at cost		17,250			17,250
Premises and equipment, net		114,715			117,362
Bank-owned life insurance		84,786			83,741
Goodwill		843,305			843,305
Other intangible assets, net		33,309			38,744
Right-of-use asset		56,696			53,545
Interest receivable and other assets		216,588			259,627
TOTAL ASSETS	$	16,571,173		$	16,490,112

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing demand deposits	$	5,453,890		$	5,616,116
Interest-bearing transaction accounts		6,359,590			6,138,909
Savings and time deposits		2,155,383			2,186,779
Total deposits		13,968,863			13,941,804
Operating lease liability		59,233			56,094
Interest payable and other liabilities		126,460			190,346
TOTAL LIABILITIES		14,154,556			14,188,244

SHAREHOLDERS’ EQUITY
Common stock, $50 par value Authorized — 300,000 shares Issued and outstanding (64,235 and 64,230 shares at June 30, 2025 and December 31, 2024)		3,212			3,212
Additional paid in capital		2,119,162			2,118,905
Retained earnings		325,793			239,517
Accumulated other comprehensive income (loss), net of tax		(31,550	)		(59,766	)
TOTAL SHAREHOLDERS’ EQUITY		2,416,617			2,301,868
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	16,571,173		$	16,490,112

See accompanying notes to consolidated financial statements.

Index

MECHANICS BANK

CONSOLIDATED INCOME STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

(Unaudited)

	Six Months Ended June 30,
(in thousands, except per share data)	2025			2024
INTEREST INCOME
Loans and leases interest and fees	$	237,908		$	273,180
Investment securities		89,598			54,178
Interest-bearing cash and other		24,232			39,389
Total interest income		351,738			366,747
INTEREST EXPENSE
Deposits		93,155			88,451
Subordinated debentures		—			676
Borrowed funds		—			17,821
Total interest expense		93,155			106,948
Net interest income		258,583			259,799
Provision (reversal of provision) for credit losses on loans and leases		(3,395	)		(4,046	)
Provision (reversal of provision) for credit losses on unfunded lending commitments		(631	)		504
Net interest income after provision for credit losses		262,609			263,341
NONINTEREST INCOME
Service charges on deposit accounts		10,986			11,847
Trust fees and commissions		6,335			5,665
ATM network fee income		5,928			5,975
Loan servicing income		345			584
Net gain (loss) on sale of investment securities		4,137			(207,203	)
Income from bank-owned life insurance		1,029			1,134
Other		5,846			7,439
Total noninterest income (loss)		34,606			(174,559	)
NONINTEREST EXPENSE
Salaries and employee benefits		96,585			100,645
Occupancy		16,309			16,085
Equipment		12,158			11,836
Professional services		16,560			8,307
FDIC assessments and regulatory fees		4,426			5,762
Amortization of intangible assets		5,404			7,403
Data processing		3,550			4,440
Loan related		4,797			3,839
Marketing and advertising		1,335			1,640
Other real estate owned related		2,788			1,687
Other		12,806			14,115
Total noninterest expense		176,718			175,759
Income (loss) before provision for income tax expense		120,497			(86,977	)
PROVISION FOR INCOME TAXES		34,221			(24,369	)
NET INCOME (LOSS)	$	86,276		$	(62,608	)
NET INCOME (LOSS) PER SHARE
Basic	$	1,343.21		$	(974.80	)
Diluted	$	1,342.84		$	(974.80	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		64,231			64,226
Diluted		64,249			64,226

See accompanying notes to consolidated financial statements.

Index

MECHANICS BANK

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

(Unaudited)

	Six Months Ended June 30,
(in thousands)	2025		2024
NET INCOME (LOSS)	$	86,276	$	(62,608	)
Other comprehensive income, net of tax:
Net change in unrealized gain (loss) on securities available-for-sale, net of tax (expense) benefit of ($11,143) and $5,710 for the six months ended June 30, 2025 and 2024, respectively.		27,222		(12,556	)
Reclassification adjustment for accretion of unrealized holding loss included in accumulated other comprehensive income from the transfer of securities from available-for-sale to held-to-maturity debt securities, net of tax expense of $361 and $370 for the six months ended June 30, 2025 and 2024, respectively.		891		926
Reclassification adjustment for net realized loss on securities available-for-sale included in net income, net of tax expense of $0 and $59,716 for the six months ended June 30, 2025 and 2024, respectively.		—		147,487
Change in defined benefit pension liability obligations, net of tax (expense) benefit of ($42) and $18 for the six months ended June 30, 2025 and 2024, respectively.		103		(45	)
Total other comprehensive income		28,216		135,812
COMPREHENSIVE INCOME	$	114,492	$	73,204

See accompanying notes to consolidated financial statements.

Index

MECHANICS BANK

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

(Unaudited)

										Accumulated Other Comprehensive Income (Loss), Net
(in thousands, except share amounts)	Shares		Common Stock		Additional Paid In Capital		Retained Earnings			Securities			Defined Benefit Obligations			Total Shareholders’ Equity
Six Months Ended June 30, 2024
Balance, December 31, 2023		64,225	$	3,211	$	2,118,677	$	305,510		$	(199,625	)	$	7,832		$	2,235,605
Net loss		—		—		—		(62,608	)		—			—			(62,608	)
Issuance of restricted stock		5		1		228		—			—			—			229
Other comprehensive income (loss), net of tax		—		—		—		—			135,857			(45	)		135,812
Cash dividends declared ($1,012 per share)		—		—		—		(64,996	)		—			—			(64,996	)
Balance, June 30, 2024		64,230	$	3,212	$	2,118,905	$	177,906		$	(63,768	)	$	7,787		$	2,244,042

Six Months Ended June 30, 2025
Balance, December 31, 2024		64,230	$	3,212	$	2,118,905	$	239,517		$	(64,058	)	$	4,292		$	2,301,868
Net income		—		—		—		86,276			—			—			86,276
Issuance of restricted stock		5		—		257		—			—			—			257
Other comprehensive income (loss), net of tax		—		—		—		—			28,113			103			28,216
Balance, June 30, 2025		64,235	$	3,212	$	2,119,162	$	325,793		$	(35,945	)	$	4,395		$	2,416,617

See accompanying notes to consolidated financial statements.

Index

MECHANICS BANK

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

(Unaudited)

	Six Months Ended June 30,
(in thousands)	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	86,276		$	(62,608	)
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (reversal of provision) for credit losses on loans and leases		(3,395	)		(4,046	)
Originations of loans held for sale		(3,181	)		(3,529	)
Proceeds from sales and principal collected on loans held for sale		3,309			3,729
Net (gain) loss on sale of loans		—			(42	)
Provision (reversal of provision) for credit losses on unfunded lending commitments		(631	)		504
Net amortization of securities		1,457			4,447
Depreciation of premises and equipment		4,563			4,838
Amortization of intangible assets		5,404			7,403
Amortization of discount on subordinated debentures		—			20
Stock based compensation expense		257			228
Increase in cash surrender value of bank-owned life insurance		(1,045	)		(1,111	)
Net (gain) loss on sale of securities		(4,137	)		207,203
Net loss (gain) on sale, disposal and write-down of other real estate owned		2,297			1,226
Net loss (gain) on sale and disposal of premises and equipment		42			(837	)
Deferred income tax expense		8,753			11,685
Net change in deferred loan costs/fees		6,972			10,876
Amortization of premiums and discounts on purchased loans		(4,140	)		(2,018	)
Changes in:
Interest receivable and other assets		5,213			(33,078	)
Interest payable and other liabilities		(44,312	)		1,976
Net cash provided by operating activities		63,702			146,866

CASH FLOWS FROM INVESTING ACTIVITIES
Securities available-for-sale:
Purchases		(561,139	)		(1,839,156	)
Sales		929,969			1,629,111
Maturities/calls/paydowns		175,956			132,334
Securities held-to-maturity:
Maturities/calls/paydowns		48,355			47,555
Loan originations and principal collections, net		505,697			692,820
Purchase of loans		(127,032	)		(171,142	)
Recoveries of loans charged-off		5,337			9,751
Proceeds from sales of other real estate owned		13,303			186
Proceeds from sales of premises and equipment		—			1,843
Purchases of premises and equipment		(1,958	)		(2,563	)
Net cash provided by investing activities		988,488			500,739
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) increase in deposits		27,059			(197,286	)
Cash dividends paid		—			(64,996	)
Net cash provided by (used in) financing activities		27,059			(262,282	)
Net (decrease) increase in cash and cash equivalents		1,079,249			385,323
Cash and cash equivalents at beginning of period		999,711			1,457,569
Cash and cash equivalents at end of period	$	2,078,960		$	1,842,892

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest paid	$	93,815		$	89,476
Income taxes paid, net of refunds		21,777			3,505
Non-cash disclosures:
Transfer from loans to other real estate owned		—			2,282
Lease liabilities arising from obtaining right-of-use assets		14,415			8,757

See accompanying notes to consolidated financial statements.

Index

MECHANICS BANK

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations: Mechanics Bank (MB) and subsidiaries (the Bank, we, us and our) is headquartered in Walnut Creek, California. The Bank offers a variety of financial services to meet the banking and financial needs of the communities we serve, with operations conducted through 111 banking branches, including locations in Greater San Francisco, Sacramento, Los Angeles and San Diego areas and throughout the Central Valley in California. MacDonald Auxiliary Corporation, Mechanics Real Estate Holdings Inc., 3190 Klose Way, LLC and Hydrox Properties XXVI, LLC are wholly-owned subsidiary corporations whose business purposes are lending, holding deeds of trust securing loans made by the Bank and its subsidiaries and holding real estate and other assets acquired through foreclosure proceedings that are pending sale or liquidation.

The Bank ceased originating auto loans in February 2023, but continued to service the portfolio through April 30, 2025. Effective May 1, 2025, the Bank entered into a servicing agreement with Westlake Portfolio Management, LLC to oversee and manage the Bank’s active portfolio of auto loans. The portfolio consisted of new and pre-owned retail automobile sales contracts purchased from both franchised and independent automobile dealerships in the United States.

Refer to Note 12, “Subsequent Events” for discussion of the merger that became effective on September 2, 2025, in which HomeStreet Bank merged with and into Mechanics Bank, with Mechanics Bank surviving the merger and becoming a wholly-owned subsidiary of Mechanics Bancorp.

Basis of Presentation: The consolidated financial statements include the accounts of the Bank and all other entities in which it has a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Bank include its wholly-owned subsidiaries. The accounting and reporting policies of the Bank are based upon U.S. generally accepted accounting principles (GAAP) and conform to predominant practices within the financial services industry. Our significant accounting policies are described in Note 1, “Summary of Significant Accounting Policies,” of our audited consolidated financial statements and notes included in the Bank’s Notes to Consolidated Financial Statements for the year ended December 31, 2024, 2023 and 2022 included as Exhibit 99.1 to Mechanics Bancorp’s Amendment No. 1 to its Current Report on Form 8-K, as filed with the U.S. Securities and Exchange Commission (the SEC) on September 25, 2025. There have been no material changes to the Bank’s significant accounting policies as disclosed therein.

Certain prior period amounts have been reclassified to conform to the current quarter’s presentation. These reclassifications had no impact on the Bank’s consolidated balance sheet, results of operations or net change in cash or cash equivalents.

These unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the periods presented. These adjustments are of a normal recurring nature, unless otherwise disclosed in these accompanying notes to the financial statements. The results of operations in the interim financial statements do not necessarily indicate the results that may be expected for the full year. Certain disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted in the interim financial statements, as permitted under GAAP. The unaudited interim financial statements should be read in conjunction with the Bank’s audited Consolidated Financial Statements and Notes to Consolidated Financial Statements for the years ended December 31, 2024, 2023 and 2022 included as Exhibit 99.1 to Mechanics Bancorp’s Amendment No. 1 to its Current Report on Form 8-K, as filed with the SEC on September 25, 2025.

Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for credit losses. Other significant estimates that may be subject to change include fair value determinations and disclosures, evaluation of goodwill and other intangible assets for impairment, and the realization of deferred tax assets. These estimates may be adjusted as more current information becomes available, and any adjustments may be significant.

Acquisitions: Effective October 1, 2016 (the CRB Acquisition Date), the Bank completed its acquisition of California Republic Bancorp (CRB) pursuant to the Agreement and Plan of Merger and Reorganization (the CRB Agreement), dated as of April 28, 2016, between Coast Acquisition Corporation (CAC), a wholly-owned subsidiary of Mechanics Bank and into CRB (the CRB Merger), with CRB being the surviving corporation, followed by the merger of CRB with and into MB (the CRB Acquisition), with MB being the surviving corporation.

Index

On February 12, 2018 (the SVB Acquisition Date), Gold Rush Acquisition Corporation (a wholly-owned subsidiary of Ford Financial Fund II, L.P. formed for this sole purpose), Mechanics Bank and Learner Financial Corporation, the bank holding company for Scott Valley Bank (SVB), entered into a definitive agreement for Mechanics Bank to acquire Learner Financial Corporation and its wholly-owned subsidiary, Scott Valley Bank, which acquisition (the SVB Acquisition) was completed and became effective on June 1, 2018.

On March 15, 2019, Mechanics Bank and Rabobank International Holding B.V. (Rabo), entered into a definitive agreement for Mechanics Bank to acquire Rabobank, N.A. (RNA), a subsidiary of Rabo, in a strategic business combination (the RNA Acquisition), which became effective on August 31, 2019 (the RNA Acquisition Date). For additional information, refer to Note 8, “Shareholders’ Equity and Dividend Limitations.”

The Bank follows the acquisition method of accounting as required by ASC 805, Business Combinations. In accordance with ASC 805, purchased assets, including identifiable intangible assets and assumed liabilities are recorded at their estimated fair values. Goodwill represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired.

Other Significant Events and Transactions: The Bank has had no significant events during the periods represented in the consolidated financial statements.

Segments: The Bank has one reportable segment: community banking. The segment primarily encompasses the commercial loan and deposit activities of the Bank as well as retail lending and deposit activities in areas surrounding the branches. Our chief operating decision maker (CODM), the Chief Executive Officer, manages the Bank’s business activities as one single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes net interest income, noninterest income and noninterest expenses (salary and employee benefits, occupancy, equipment and general, administrative and other) at the consolidated level to manage the Bank’s operations.

Recent Accounting Developments: In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which expands disclosures in an entity’s income tax rate reconciliation table and taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. The adoption of ASU 2023-09 will not have an impact on the Bank’s financial position or results of operation as it impacts disclosures only. We are assessing the impact on our disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”), which provides a practical expedient permitting an entity to assume that conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and for interim periods within those annual reporting periods, with early adoption permitted. The amendments in ASU 2025-05 should be applied prospectively. The Bank is currently evaluating the impact of adopting ASU 2025-05 and believes that the adoption will not have a material impact on the consolidated financial statements and related disclosures.

Changes in Accounting Principles or Practices: The Bank had no major changes to accounting principles or practices in the periods represented in the consolidated financial statements.

Significant Changes Since Year-End: There have been no significant changes to the nature of the Bank’s business in the periods represented in the consolidated financial statements.

Contingencies: The Bank is occasionally named as a defendant in or threatened with claims and legal actions arising in the ordinary course of business. The outcomes of claims and legal actions brought against the Bank are subject to many uncertainties. The Bank establishes accruals for such matters when a loss is probable and the amount of the loss can be reasonably estimated. For claims and legal actions where it is not reasonably possible that a loss may be incurred, or where the Bank is not currently able to estimate the reasonably possible loss or range of loss, the Bank does not establish an accrual. As of June 30, 2025 and December 31, 2024, the Bank recorded an accrued contingent liability of $3.2 million and $3.1 million, respectively.

Income Taxes: The Bank’s accounting for income taxes is based on an asset and liability approach. The Bank recognizes the amount of taxes payable or refundable for the current year, and recognizes deferred tax assets and liabilities for the future tax consequences for transactions that have been recognized in the Bank’s consolidated financial statements or tax returns. The measurement of tax assets and liabilities is based on enacted tax laws and rates. A valuation allowance, if needed, will reduce deferred tax assets to the amount expected to be realized.

Index

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, based upon the technical merits of the position, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Bank recognizes interest and/or penalties related to income tax matters in Provision for Income Taxes on the Consolidated Income Statement.

Index

NOTE 2 - DEBT SECURITIES

The following table presents the amortized cost and fair value of the debt securities portfolio as of the dates indicated:

	June 30, 2025
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available-for-sale
Obligations of states and political subdivisions	$	91,326	$	239	$	(1,704	)	$	89,861
Mortgage-backed securities - residential		2,029,741		14,198		(31,751	)		2,012,188
Mortgage-backed securities - commercial		255,560		1,190		(13,851	)		242,899
Collateralized loan obligations		188,500		70		(327	)		188,243
Corporate bonds		34,000		—		(4,753	)		29,247
Total securities available-for-sale	$	2,599,127	$	15,697	$	(52,386	)	$	2,562,438

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities held-to-maturity
Obligations of states and political subdivisions	$	14,321	$	473	$	(11	)	$	14,783
Mortgage-backed securities - residential		1,065,928		—		(155,582	)		910,346
Mortgage-backed securities - commercial		310,962		—		(36,532	)		274,430
Total securities held-to-maturity	$	1,391,211	$	473	$	(192,125	)	$	1,199,559
Total debt securities								$	3,761,997

	December 31, 2024
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities available-for-sale
Obligations of states and political subdivisions	$	91,799	$	699	$	(1,199	)	$	91,299
Mortgage-backed securities - residential		2,694,745		2,107		(53,164	)		2,643,688
Mortgage-backed securities - commercial		259,793		22		(18,953	)		240,862
Collateralized loan obligations		50,000		—		—			50,000
Corporate bonds		43,968		—		(4,566	)		39,402
Total securities available-for-sale	$	3,140,305	$	2,828	$	(77,882	)	$	3,065,251

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities held-to-maturity
Obligations of states and political subdivisions	$	14,193	$	509	$	(30	)	$	14,672
Mortgage-backed securities - residential		1,115,389		—		(196,949	)		918,440
Mortgage-backed securities - commercial		310,912		—		(48,024	)		262,888
Total securities held-to-maturity	$	1,440,494	$	509	$	(245,003	)	$	1,196,000
Total debt securities								$	4,261,251

Index

In addition to the reported fair values of the debt securities reflected above, the Bank is entitled to receive accrued interest and dividends from its securities. Included in Interest Receivable and Other Assets on the Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 was $15.0 million and $15.9 million, respectively, of interest and dividends receivable from the Bank’s debt securities. Accrued interest receivable from securities available-for-sale totaled $12.7 million and $13.6 million at June 30, 2025 and December 31, 2024, respectively. Accrued interest receivable from securities held-to-maturity totaled $2.3 million and $2.4 million at June 30, 2025 and December 31, 2024, respectively.

In accordance with accounting standards, only the realized gains and losses from securities transactions are included in the Consolidated Income Statement as Net gain/(loss) on investment securities. Gross realized gains on sales of investments for the six months ended June 30, 2025 were $5.1 million and gross realized losses were $923,000, compared to gross realized losses of $207.2 million for the six months ended June 30, 2024. During the first quarter of 2024, the Bank executed an investment portfolio restructuring of its AFS investment securities portfolio. The Bank sold $1.8 billion of lower yielding AFS securities and realized a loss of $207.2 million. The proceeds of the sale were used to purchase $1.6 billion of higher yielding investments. No gross gains were realized on the sales.

The Bank reassessed classification of certain investments and effective January 1, 2022, transferred $1.7 billion in residential and commercial mortgage-backed securities from available-for-sale to held-to-maturity securities. The transfer occurred at fair value. The related net unrealized loss of $23.5 million, or $16.7 million net of deferred taxes, included in other comprehensive income remained in other comprehensive income. For the six months ended June 30, 2025 and 2024, $1.3 million of the unrealized loss was accreted to interest income as a yield adjustment through earnings and will be accreted over the remaining term of the securities. No gain or loss was recorded at the time of transfer.

The following table summarizes available-for-sale securities with unrealized and unrecognized losses at June 30, 2025 and December 31, 2024 aggregated by major security type and length of time in a continuous unrealized and unrecognized loss position:

	June 30, 2025
	Less than 12 months				12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	$	41,857	$	663	$	30,018	$	1,041	$	71,875	$	1,704
Mortgage-backed securities - residential		218,676		3,878		286,182		27,873		504,858		31,751
Mortgage-backed securities - commercial		50,367		36		108,509		13,815		158,876		13,851
Collateralized loan obligations		138,173		327		—		—		138,173		327
Corporate bonds		—		—		29,247		4,753		29,247		4,753
Total securities	$	449,073	$	4,904	$	453,956	$	47,482	$	903,029	$	52,386
Number of securities with unrealized losses				45				256				301

Index

	December 31, 2024
	Less than 12 months				12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	$	19,273	$	162	$	28,394	$	1,037	$	47,667	$	1,199
Mortgage-backed securities - residential		1,381,125		15,337		311,751		37,827		1,692,876		53,164
Mortgage-backed securities - commercial		98,071		422		107,118		18,531		205,189		18,953
Collateralized loan obligations		—		—		—		—		—		—
Corporate bonds		—		—		39,402		4,566		39,402		4,566
Total securities	$	1,498,469	$	15,921	$	486,665	$	61,961	$	1,985,134	$	77,882
Number of securities with unrealized losses				60				280				340

The Bank did not record an ACL on the debt securities portfolio at June 30, 2025 or December 31, 2024. As of both dates, the Bank considers any unrealized loss across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit quality. The Bank maintains that it has intent and ability to hold these securities until the amortized cost basis of each security is recovered and likewise concluded as of June 30, 2025 that it was not more likely than not that any of the securities in an unrealized loss position would be required to be sold. The following factors were considered in determining that an ACL was not required at June 30, 2025 or December 31, 2024.

Obligations of States and Political Subdivisions - The unrealized losses on the Bank’s investments in obligations of states and political subdivisions are primarily due to changes in interest rates and not due to credit losses. Management monitors these securities on an ongoing basis and performs an internal analysis which takes into account the impact from market rates movements, severity and duration of the unrealized loss position, viability of the issuer, recent downgrades in ratings, and external credit rating assessments. As a result, management expects to recover the entire amortized cost basis of these securities.

Mortgage-Backed Securities -Residential and Commercial (MBS) - The unrealized losses on the Bank’s investments in residential and commercial MBS are primarily due to changes in interest rates. These securities are either implicitly or explicitly guaranteed by the U.S. government, as such management expects to recover the entire amortized cost basis of these securities.

Collateralized Loan Obligations - There were no unrealized losses on the Bank’s collateralized loan obligations are primarily due to timing of the purchases. These securities are presented at par value.

Corporate Bonds - The unrealized losses on the Bank’s investments in corporate bonds are due to slight discount margin variances related to changes in market rates and not due to credit losses. Management monitors these securities on an ongoing basis and performs an internal analysis which includes a review of credit quality, changes in ratings, assessment of regulatory and financial ratios, and general standing versus peer group. Management expects to recover the entire amortized cost basis of these securities.

Index

Securities with a gross carrying value of $1.7 billion at June 30, 2025 were pledged to secure the Bank’s obligations for securities sold under agreements to repurchase and to collateralize certain public, trust and bankruptcy deposits as required by law.

The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. As of June 30, 2025, there were no past due or nonaccrual available-for-sale or held-to-maturity securities.

Contractual maturities of securities as of June 30, 2025 were as follows:

(in thousands)	Amortized Cost		Estimated Fair Value
Securities available-for-sale
Due in one year or less	$	3,085	$	3,084
Due after one year through five years		741		741
Due after five years through ten years		54,285		48,808
Due after ten years		67,215		66,475
Subtotal		125,326		119,108
Mortgage-backed securities - residential		2,029,741		2,012,188
Mortgage-backed securities - commercial		255,560		242,899
Collateralized loan obligations		188,500		188,243
Total securities available-for-sale	$	2,599,127	$	2,562,438
Securities held-to-maturity
Due in one year or less	$	3,000	$	3,000
Due after one year through five years		3,419		3,431
Due after five years through ten years		3,606		3,790
Due after ten years		4,296		4,562
Subtotal		14,321		14,783
Mortgage-backed securities - residential		1,065,928		910,346
Mortgage-backed securities - commercial		310,962		274,430
Total securities held-to-maturity	$	1,391,211	$	1,199,559
Total debt securities	$	3,990,338	$	3,761,997

Index

NOTE 3 – LOANS

The loans held for sale portfolio was $415 thousand and $543 thousand at June 30, 2025 and December 31, 2024, respectively, consisting solely of residential real estate. There were no impairment charges for the six months ended June 30, 2025 and 2024.

The loan and lease receivable portfolio at June 30, 2025 and December 31, 2024 consisted of the following:

(in thousands)	June 30, 2025			December 31, 2024
Commercial & Industrial	$	280,551		$	410,040
Commercial Real Estate
Construction & Land Development		135,013			104,430
Other		4,701,786			4,812,278
Residential Real Estate		2,438,271			2,280,963
Auto		1,147,967			1,596,935
Installment
Revolving Plans		4,790			2,920
Other		531,456			435,931

Total loan and lease receivables before allowance for credit losses		9,239,834			9,643,497

Allowance for credit losses on loans and leases		(68,334	)		(88,558	)
Net loan and lease receivables	$	9,171,500		$	9,554,939

The following table presents the activity in the allowance for credit losses by portfolio segment for the six months ended June 30, 2025 and 2024.

(in thousands)
Six Months Ended June 30, 2025	Commercial & Industrial			Commercial Real Estate			Residential Real Estate			Auto			Installment			Total
Allowance for credit losses on loans and leases
Beginning balance	$	4,869		$	35,097		$	4,656		$	41,282		$	2,654		$	88,558
Provision (reversal of provision) for credit losses		(1,447	)		(1,498	)		321			(1,410	)		639			(3,395	)
Loans charged off		(222	)		—			—			(20,759	)		(1,185	)		(22,166	)
Recoveries		256			—			—			4,754			327			5,337
Total ending allowance balance	$	3,456		$	33,599		$	4,977		$	23,867		$	2,435		$	68,334

(in thousands)
Six Months Ended June 30, 2024	Commercial & Industrial			Commercial Real Estate			Residential Real Estate			Auto			Installment			Total
Allowance for credit losses on loans and leases
Beginning balance	$	5,805		$	31,486		$	6,745		$	87,053		$	2,689		$	133,778
Provision (reversal of provision) for credit losses		(1,114	)		2,606			6			(7,299	)		1,755			(4,046	)
Loans charged off		(213	)		—			(10	)		(29,532	)		(1,707	)		(31,462	)
Recoveries		931			—			—			8,476			344			9,751
Total ending allowance balance	$	5,409		$	34,092		$	6,741		$	58,698		$	3,081		$	108,021

Index

The following table presents changes in the allowance for credit losses for the six months ended June 30, 2025 and 2024:

	Six Months Ended June 30,
(in thousands)	2025			2024
Allowance for credit losses on loans and leases at the beginning of the period	$	88,558		$	133,778
Provision (reversal of provision) for credit losses on loans and leases		(3,395	)		(4,046	)
Loans and leases charged off during the period		(22,166	)		(31,462	)
Recoveries on loans and leases previously charged off		5,337			9,751
Allowance for credit losses on loans and leases at the end of the period		68,334			108,021

Allowance for credit losses on unfunded lending commitments at the beginning of the period		4,366			4,314
Provision (reversal of provision) for credit losses on unfunded lending commitments		(631	)		504
Allowance for credit losses on unfunded lending commitments at the end of the period		3,735			4,818
Total allowance for credit losses on loans, leases and unfunded lending commitments at the end of the period	$	72,069		$	112,839

The allowance for credit losses on loans and leases is reflected in total assets as an offset to the loan and lease portfolio. The allowance for credit losses on unfunded lending commitments is reflected in total liabilities in the Interest Payable and Other Liabilities on the Consolidated Balance Sheets. There were no material changes to the methodologies for estimating credit losses for the periods presented.

Disclosures related to the amortized cost in loans excludes accrued interest receivable. The Bank has elected to exclude accrued interest receivable from the evaluation of the allowance for credit losses. Accrued interest receivable on loans held for investment was $32.7 million and $33.6 million at June 30, 2025 and December 31, 2024, respectively, and is included in Interest Receivable and Other Assets on the Consolidated Balance Sheets.

Index

Nonaccrual loans and loans past due 90 days or more and still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following table presents the amortized cost in nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of June 30, 2025 and December 31, 2024:

	June 30, 2025
(in thousands)	Nonaccrual With No Allowance for Credit Loss		Total Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Commercial & Industrial	$	1,375	$	1,402	$	—
Commercial Real Estate
Construction & Land Development		422		422		—
Other		5,730		5,730		717
Residential Real Estate		1,305		1,305		—
Auto		—		9,737		—
Installment
Revolving		10		10		—
Other		—		—		—
Total	$	8,842	$	18,606	$	717

	December 31, 2024
(in thousands)	Nonaccrual With No Allowance for Credit Loss		Total Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Commercial & Industrial	$	1,145	$	1,145	$	211
Commercial Real Estate
Construction & Land Development		441		441		—
Other		—		—		—
Residential Real Estate		2,854		2,854		—
Auto		564		6,252		—
Installment
Revolving		1		1		—
Other		—		—		—
Total	$	5,005	$	10,693	$	211

Index

The following table presents the amortized cost of collateral-dependent loans by class and collateral type as of June 30, 2025 and December 31, 2024:

	June 30, 2025
(in thousands)	Auto		Equipment		Farmland		Multifamily		Retail Building		Single Family Residential		Other non- real estate		Total Loans
Commercial & Industrial	$	—	$	149	$	—	$	—	$	1,015	$	—	$	141	$	1,305
Commercial Real Estate
Construction & Land Development		—		—		422		—		—		—		—		422
Other		—		—		—		1,930		3,800		—		—		5,730
Residential Real Estate		—		—		—		—		—		1,305		—		1,305
Auto		—		—		—		—		—		—		—		—
Installment
Revolving Plans		—		—		—		—		—		—		9		9
Other		—		—		—		—		—		—		—		—
Total	$	—	$	149	$	422	$	1,930	$	4,815	$	1,305	$	150	$	8,771

	December 31, 2024
(in thousands)	Auto		Equipment		Farmland		Multifamily		Retail Building		Single Family Residential		Other non- real estate		Total Loans
Commercial & Industrial	$	5	$	10	$	—	$	—	$	1,064	$	—	$	—	$	1,079
Commercial Real Estate
Construction & Land Development		—		—		441		—		—		—		—		441
Other		—		—		—		—		—		—		—		—
Residential Real Estate		—		—		—		—		—		2,853		—		2,853
Auto		—		—		—		—		—		—		—		—
Installment
Revolving Plans		—		—		—		—		—		—		—		—
Other		—		—		—		—		—		—		—		—
Total	$	5	$	10	$	441	$	—	$	1,064	$	2,853	$	—	$	4,373

Index

The following table presents the aging of the amortized cost in past due loans as of June 30, 2025 and December 31, 2024 by class of loans:

	June 30, 2025
(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total Loans
Commercial & Industrial	$	8,568	$	640	$	211	$	9,419	$	271,132	$	280,551
Commercial Real Estate
Construction & Land Development		—		—		140		140		134,873		135,013
Other		19,811		537		3,825		24,173		4,677,613		4,701,786
Residential Real Estate		16,879		1,163		254		18,296		2,419,975		2,438,271
Auto		42,477		15,234		6,220		63,931		1,084,036		1,147,967
Installment
Revolving Plans		1		1		10		12		4,778		4,790
Other		1,127		272		—		1,399		530,057		531,456
Total	$	88,863	$	17,847	$	10,660	$	117,370	$	9,122,464	$	9,239,834

	December 31, 2024
(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total Loans
Commercial & Industrial	$	1,920	$	82	$	278	$	2,280	$	407,760	$	410,040
Commercial Real Estate
Construction & Land Development		5,400		—		140		5,540		98,890		104,430
Other		3,458		—		—		3,458		4,808,820		4,812,278
Residential Real Estate		13,662		406		502		14,570		2,266,393		2,280,963
Auto		53,197		12,637		5,161		70,995		1,525,940		1,596,935
Installment
Revolving Plans		2		1		1		4		2,916		2,920
Other		359		213		—		572		435,359		435,931
Total	$	77,998	$	13,339	$	6,082	$	97,419	$	9,546,078	$	9,643,497

Index

The following tables present the amortized cost of loans at June 30, 2025 and 2024 that were both experiencing financial difficulty and modified during the six months ended June 30, 2025 and 2024, by class and by type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to the amortized cost of each class of financing receivable is also presented below.

	Six Months Ended June 30, 2025
(in thousands)	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combined Term Extension and Principal Forgiveness		Combined Term Extension and Interest Rate Reduction		Total Class of Financing Receivable
Commercial & Industrial	$	—	$	—	$	113	$	—	$	—	$	—		0.04	%
Total	$	—	$	—	$	113	$	—	$	—	$	—		0.00	%

	Six Months Ended June 30, 2024
(in thousands)	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Combined Term Extension and Principal Forgiveness		Combined Term Extension and Interest Rate Reduction		Total Class of Financing Receivable
Commercial & Industrial	$	—	$	—	$	679	$	—	$	—	$	—		0.12	%
Commercial Real Estate
Other		—		—		16,029		—		—		—		0.33	%
Total	$	—	$	—	$	16,708	$	—	$	—	$	—		0.16	%

The Bank has committed to lend no additional amounts to the borrowers included in the previous tables.

The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2025 and 2024:

	Six Months Ended June 30, 2025
(dollars in thousands)	Principal Forgiveness		Weighted- Average Interest Rate Reduction			Weighted-Average Term Extension <months>
Commercial & Industrial	$	—		—	%		60
Total	$	—		—	%		60

	Six Months Ended June 30, 2024
(dollars in thousands)	Principal Forgiveness		Weighted- Average Interest Rate Reduction			Weighted-Average Term Extension <months>
Commercial & Industrial	$	—		—	%		23
Commercial Real Estate
Other		—		—	%		9
Total	$	—		—	%		32

Index

The Bank closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. For the six months ended June 30, 2025, no loans had a payment default or were past due that were modified in the last 12 months. The following table presents the amortized cost of loans that had a payment default and were past due for the six months ended June 30, 2024 that were modified in the last 12 months.

	June 30, 2024
(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 89 Days Past Due		Total Past Due
Commercial & Industrial	$	—	$	447	$	—	$	447
Total	$	—	$	447	$	—	$	447

Upon the Bank’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

Index

Credit Quality Indicators:

The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic trends and other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis includes all loans regardless of balances. This analysis is performed on a quarterly basis.

The Bank uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above are considered to be pass rated loans.

Index

Based on the most recent analysis performed, the following table presents the amortized cost, by risk category of loans and origination year, for commercial and industrial and commercial real estate loan classes at June 30, 2025 and December 31, 2024. In addition, year-to-date charge-offs are presented by origination year.

(in thousands) June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Commercial & Industrial
Risk Rating
Pass	$	6,751	$	21,974	$	39,106	$	17,698	$	17,532	$	49,001	$	109,492	$	—	$	261,554
Special Mention		—		123		—		10,984		79		685		100		—		11,971
Substandard		—		—		—		—		119		6,138		742		—		6,999
Doubtful		—		—		—		—		—		—		27		—		27
Total Commercial & Industrial	$	6,751	$	22,097	$	39,106	$	28,682	$	17,730	$	55,824	$	110,361	$	—	$	280,551

Commercial & Industrial
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	16	$	—	$	206	$	—	$	222

(in thousands) June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Commercial Real Estate-Construction
Risk Rating
Pass	$	18,558	$	48,669	$	17,067	$	34,897	$	106	$	14,767	$	527	$	—	$	134,591
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		422		—		—		422
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial real estate-construction	$	18,558	$	48,669	$	17,067	$	34,897	$	106	$	15,189	$	527	$	—	$	135,013

Commercial real estate-construction
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(in thousands) June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Commercial Real Estate-Other
Risk Rating
Pass	$	58,848	$	203,168	$	439,650	$	1,176,045	$	809,049	$	1,821,457	$	99,048	$	—	$	4,607,265
Special Mention		—		—		—		—		—		32,779		—		—		32,779
Substandard		—		—		—		677		979		60,086		—		—		61,742
Doubtful		—		—		—		—		—		—		—		—		—
Total Commercial real estate-other	$	58,848	$	203,168	$	439,650	$	1,176,722	$	810,028	$	1,914,322	$	99,048	$	—	$	4,701,786

Commercial real estate-other
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Index

(in thousands) December 31, 2024	2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Commercial & Industrial
Risk Rating
Pass	$	28,334	$	113,024	$	41,271	$	23,098	$	55,675	$	140,905	$	—	$	402,307
Special Mention		—		—		—		107		789		—		—		896
Substandard		—		—		5		166		6,665		1		—		6,837
Doubtful		—		—		—		—		—		—		—		—
Total Commercial & Industrial	$	28,334	$	113,024	$	41,276	$	23,371	$	63,129	$	140,906	$	—	$	410,040

Commercial & Industrial
Year-to-date gross charge-offs	$	—	$	191	$	95	$	2	$	127	$	806	$	—	$	1,221

(in thousands) December 31, 2024	2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Commercial Real Estate-Construction
Risk Rating
Pass	$	34,891	$	13,515	$	34,985	$	141	$	20,355	$	102	$	—	$	103,989
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		441		—		—		441
Doubtful		—		—		—		—		—		—		—		—
Total Commercial real estate-construction	$	34,891	$	13,515	$	34,985	$	141	$	20,796	$	102	$	—	$	104,430

Commercial real estate-construction
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(in thousands) December 31, 2024	2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total

Commercial Real Estate-Other
Risk Rating
Pass	$	209,706	$	444,386	$	1,188,494	$	833,068	$	2,008,574	$	67,083	$	—	$	4,751,311
Special Mention		—		—		—		—		22,137		—		—		22,137
Substandard		—		—		—		—		38,830		—		—		38,830
Doubtful		—		—		—		—		—		—

Mechanics Bancorp 8-K/A