EARNINGS PER SHARE

The Company has two classes of common stock and, as such applies the “two-class method” of computing earnings per

share in accordance with ASC 260, “Earnings Per Share.” Earnings are allocated in the same manner as dividends would be

distributed. The Company’s common shareholders are entitled to equally share in all dividends and distributions based on

such shareholders’ pro rata ownership interest in the Company, except that each share of Class B common stock is treated

as if such share had been converted into ten Class A Shares for purposes of calculating the economic rights of the Class B

Shares, including upon liquidation of the Company or the declaration of dividends or distributions by the Company.

The following tables summarize the calculation of earnings per share under the two-class method:


	Year Ended December 31,			Year Ended December 31,
	2025			2024
(dollars in thousands, except per share amounts)	Class A common stock	Class B common stock	Consolidated	Class A common stock	Class B common stock	Consolidated

Net income			$265,739			$28,999
Basic:
Numerator
Allocation of distributed earnings (cash dividends declared)	$46,221	$2,340	$48,561	$89,999	$4,993	$94,992
Allocation of undistributed earnings (losses)	206,109	11,069	217,178	(62,524)	(3,469)	(65,993)
Allocation of distributed and undistributed earnings	$252,330	$13,409	$265,739	$27,475	$1,524	$28,999

Denominator
Basic weighted average common shares outstanding	207,512,468	1,114,448	208,626,916	200,878,747	1,114,448	201,993,195
Basic earnings per share (1)	$1.22	$12.03	$1.27	$0.14	$1.37	$0.14

Diluted:
Numerator
Allocation of distributed and undistributed earnings	$252,330	$13,409	$265,739	$27,475	$1,524	$28,999

Denominator
Basic weighted average common shares outstanding	207,512,468	1,114,448	208,626,916	200,878,747	1,114,448	201,993,195
Dilutive effect of unvested restricted stock units (2)	104,686	—	104,686	59,420	—	59,420
Diluted weighted average common shares outstanding	207,617,154	1,114,448	208,731,602	200,938,167	1,114,448	202,052,615
Diluted earnings per share (1)	$1.22	$12.03	$1.27	$0.14	$1.37	$0.14

(1)Periods prior to September 2, 2025 have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from

the Merger of 3,301.0920 for Class A common stock and 330.1092 for Class B common stock.

(2)No restricted stock units were antidilutive for 2025 or 2024.

Historical Timeline

Fiscal Year	Filed
2025	Mar 17, 2026	Showing above
2024	Mar 7, 2025

2023	Mar 6, 2024

2022	Mar 6, 2023

2021	Mar 4, 2022

2020	Mar 12, 2021

2019	Mar 6, 2020

2018	Mar 6, 2019

2017	Mar 6, 2018

2016	Mar 9, 2017

2015	Mar 11, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Mechanics Bancorp Earnings Per Share Disclosure

Historical Timeline

About Earnings Per Share Disclosures

Other Available Disclosures