Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 110

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 110
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 Net income (loss) per share Basic earnings per share $ (7.65) $ (1.46) Diluted earnings per share $ (7.65) $ (1.46) (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the years ended December 31, 2024 and 2023 were certain unvested RSUs and PSUs. The aggregate number of common stock unvested restricted shares, which could potentially be dilutive in future periods, was 540,354 and 217,153 at December 31, 2024 and 2023, respectively. NOTE 16–LEASES: We have operating and finance leases for certain office space and finance leases for certain equipment. These leases have remaining lease terms of up to 11 years. The Company, as sublessor, subleases certain office and retail space in which the terms of any significant subleases end by 2027. Under all of our executed sublease arrangements, the sublessees are obligated to pay the Company sublease payments of $2.8 million in 2025, $2.9 million in 2026, $2.7 million in 2027, $69 thousand in 2028 and $29 thousand in 2029. In 2024 we incurred $2.0 million in impairment charges due primarily to an updated estimate of the cost impact of a leased space for which the sublease was not extended and expired in 2024. The components of lease expense were as follows: Years Ended December 31, (in thousands) 2024 2023 Operating lease cost $ 7,321 $ 8,103 Finance lease cost: Amortization of right-of-use assets 181 425 Interest on lease liabilities 6 8 Variable lease costs and nonlease components 1,633 1,470 Sublease income (649) (1,376) Total $ 8,492 $ 8,630 88

Supplemental cash flow information related to leases were as follows: Years Ended December 31, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,421 $ 11,248 Operating cash flows from finance leases 6 8 Financing cash flows from finance leases 168 456 Right-of-use assets obtained Operating leases $ 5,622 $ 2,690 Finance