Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 28

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 28
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. These supplemental performance measures may vary from, and may not be comparable to, similarly titled measures provided by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirements. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other parties in the evaluation of companies in our industry. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP. In the information below, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP measures used in this Annual Report, or a calculation of the non-GAAP financial measure. 24

Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures or the calculation of the non- GAAP financial measures For the Year Ended (in thousands, except ratio) 2024 2023 Core net income (loss) Net income (loss) $ (144,344) $ (27,508) Adjustments (tax effected) Loss on loan sale 67,058 — Merger related expenses 2,674 1,170 Loss on debt extinguishment 353 — Goodwill impairment charge — 34,622 Deferred tax valuation allowance 53,310 — Total $ (20,949) $ 8,284 Core net income (loss) per fully diluted share Fully diluted shares 18,857,392 18,783,005 Computed amount $ (1.11) $ 0.44 Return on average tangible equity - Core Average shareholders' equity $ 530,360 $ 552,234