Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 109

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 109
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569 4.5 % 413,933 6.5 % Tier 1 risk-based capital (to risk-weighted assets) 814,719 12.79 % 382,092 6.0 % 509,456 8.0 % Total risk-based capital (to risk-weighted assets) 858,992 13.49 % 509,456 8.0 % 636,820 10.0 % As of each of the dates set forth in the above table, the Company exceeded the minimum required capital ratios applicable to it and Bank’s capital ratios exceeded the minimums necessary to qualify as a well-capitalized depository institution under the prompt corrective action regulations. No conditions or events have occurred since December 31, 2024 that we believe have changed the Company’s or the Bank’s capital adequacy classifications from those set forth in the above table. In addition to the minimum capital ratios, both the Company and the Bank are required to maintain a “conservation buffer" consisting of additional Common Equity Tier 1 Capital which is at least 2.5% above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses. The required ratios for capital adequacy set forth in the above table do not include the additional capital conservation buffer, though each of the Company and Bank maintained capital ratios necessary to satisfy the capital conservation buffer requirements as of the dates indicated. At December 31, 2024, capital conservation buffers for the Company and the Bank were 3.70% and 5.02%, respectively. The following table sets forth the minimum capital ratios plus the applicable increment of the capital conservation buffer: Common equity to Tier-1 to risk-weighted assets 7.00 % Tier 1 capital to risk-weighted assets 8.50 % Total capital to risk-weighted assets 10.50 % 87

NOTE 15–EARNINGS PER SHARE: The following table summarizes the calculation of earnings per share: Years Ended December 31, (in thousands, except share and per share data) 2024 2023 Net income (loss) $ (144,344) $ (27,508) Weighted average shares: Basic weighted-average number of common shares outstanding 18,857,392 18,783,005 Dilutive effect of outstanding common stock equivalents (1) — — Diluted weighted-average number of common shares outstanding 18,857,392 18,783,005