Mechanics Bancorp Reports Second Quarter 2026 Results

Mechanics Bancorp Reports Second Quarter 2026 Results

 

WALNUT CREEK, Calif.–(BUSINESS WIRE)–
Mechanics Bancorp (NASDAQ: MCHB):

Second Quarter Highlights
$21.2 billion Total Assets		$57.7 million Net Income		14.39% CET1 Ratio (1)		$12.15 Book Value Per Share $7.56 Tangible Book Value Per Share (2)

Mechanics Bancorp (Nasdaq: MCHB) (“Mechanics” or the “Company”), the financial holding company of Mechanics Bank, today announced its financial results for the quarter ended June 30, 2026. Mechanics reported net income of $57.7 million, or $0.25 per diluted share ⁽³⁾, for the second quarter of 2026, compared to $44.1 million, or $0.19 per diluted share, for the first quarter of 2026. For the six months ended June 30, 2026, Mechanics reported net income of $101.8 million, or $0.44 per diluted share, compared to $86.3 million, or $0.41 per diluted share, for the six months ended June 30, 2025.

Second Quarter 2026 Highlights:

• Total assets of $21.2 billion at June 30, 2026, compared with $21.4 billion at March 31, 2026.
• Total loans of $13.6 billion at June 30, 2026, compared with $13.9 billion at March 31, 2026.
• Loans-to-deposits ratio of 75% at June 30, 2026, compared with 76% at March 31, 2026.
• Total deposits of $18.1 billion at June 30, 2026, compared with $18.2 billion at March 31, 2026, and noninterest-bearing deposits of $6.4 billion at June 30, 2026, compared with $6.5 billion at March 31, 2026.
• Total cost of deposits was 1.25% for the second quarter of 2026 and 1.28% for the first quarter of 2026.
• Dividends paid in the second quarter of 2026 were $0.70 per share of Class A common stock and $7.00 per share of Class B common stock.
• Strong capital ratios⁽¹⁾, including an estimated 16.70% Total risk-based capital ratio, 14.39% Tier 1 capital ratio, 14.39% CET1 capital ratio and 8.71% Tier 1 leverage ratio at June 30, 2026.
• Allowance for credit losses (“ACL”) to total loans of 1.12%, down from 1.13% at the prior quarter-end.
• Non-recurring acquisition and integration costs of $5.9 million for the second quarter of 2026, compared to $4.8 million in the prior quarter.

(1)		Regulatory capital ratios at June 30, 2026 are preliminary.
(2)		Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” below.
(3)		Unless otherwise specified, refers to diluted earnings per share for Class A common stock.

C.J. Johnson, President and CEO of Mechanics, said, “We had a strong second quarter financially and substantially completed our merger with HomeStreet. We also successfully sold our Fannie Mae DUS business line and paid $162 million in cash dividends during the quarter. Our merger was an unqualified success and I am very grateful to our employees for a job well-done on the integration. I look forward to getting back to “business as usual” and believe Mechanics is well-positioned for future growth.”

Nathan Duda, CFO of Mechanics, added, “Our second quarter results demonstrated the underlying earnings power of the franchise as we continued to realize merger-related cost savings, reduced our funding costs and maintained a stable net interest margin. While we continue to incur certain integration-related expenses, the benefits of the HomeStreet merger are increasingly evident in our results.”

Presentation of Results – HomeStreet Bank Merger

On September 2, 2025, the merger of HomeStreet Bank, the wholly owned subsidiary of Mechanics Bancorp (formerly known as HomeStreet, Inc.) with and into Mechanics Bank, was completed. Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp is the legal acquirer. Mechanics’ financial results for all periods ended prior to September 2, 2025 reflect Mechanics Bank’s historical financial results on a standalone basis and results of the combined company beginning September 2, 2025. In addition, for periods prior to September 2, 2025, the number of shares issued and outstanding, earnings per share, and all references to share quantities or metrics of Mechanics have been retrospectively restated to reflect the equivalent number of shares issued in the merger since the merger was accounted for as a reverse acquisition. As the accounting acquirer, Mechanics Bank remeasured the identifiable assets acquired and liabilities assumed in the merger as of September 2, 2025 at their acquisition date fair values. The estimates of fair value were recorded based on valuations as of the merger date. These estimates are considered preliminary as of June 30, 2026, are subject to change for up to one year after the merger date, and any changes could be material.

Adoption of Purchased Seasoned Loans Accounting Standard

The Company early adopted Accounting Standards Update (“ASU”) 2025-08, “Financial Instruments–Credit Losses (Topic 326): Purchased Loans,” during the fourth quarter of 2025. This new standard, which the Company elected to early adopt as of January 1, 2025, requires acquired loans that meet certain criteria at acquisition (purchased seasoned loans) to be recognized at their purchase price plus the amount of the allowance for expected credit losses (gross-up approach). As a result, for purchased seasoned loans acquired in the HomeStreet merger, the Company established an allowance for credit losses of $20.3 million at the date of acquisition for these loans and reversed the provision for credit losses recorded in the third quarter of 2025, and recorded it as part of the acquired loans initial amortized cost basis. Required disclosures regarding the impact of the adoption were presented when the Company filed its annual report on Form 10-K for the year ended December 31, 2025. In addition, third quarter 2025 results will be retrospectively adjusted when the Company files its quarterly report on Form 10-Q for the quarter ended September 30, 2026.

The impact of the adoption is reflected in the comparative prior period results as of September 30, 2025 presented in this earnings release.

INCOME STATEMENT HIGHLIGHTS

Summary Income Statement

		Quarter Ended											Six Months Ended
(in thousands)		June 30, 2026				March 31, 2026			June 30, 2025				June 30, 2026				June 30, 2025
Total interest income		$	237,942			$	241,936		$	178,153			$	479,878			$	351,738
Total interest expense			60,770				62,891			48,024				123,661				93,155
Net interest income			177,172				179,045			130,129				356,217				258,583
Provision (reversal of provision) for credit losses on loans			(904	)			7,593			357				6,689				(3,395	)
Provision (reversal of provision) for credit losses on unfunded lending commitments			(1,863	)			174			(725	)			(1,689	)			(631	)
Total provision (reversal of provision) for credit losses			(2,767	)			7,767			(368	)			5,000				(4,026	)
Total noninterest income			23,796				21,020			19,625				44,816				34,606
Acquisition and integration costs			5,923				4,794			5,639				10,717				5,989
Other noninterest expense			118,550				125,633			85,441				244,183				170,729
Total noninterest expense			124,473				130,427			91,080				254,900				176,718
Income before income tax expense			79,262				61,871			59,042				141,133				120,497
Income tax expense			21,561				17,781			16,557				39,342				34,221
Net income		$	57,701			$	44,090		$	42,485			$	101,791			$	86,276

Net Interest Income

Second Quarter of 2026 vs. First Quarter of 2026

Net interest income in the second quarter of 2026 was $1.9 million lower than the first quarter of 2026 primarily as a result of a decrease in average interest earning assets of $468.4 million, partially offset by lower interest expense on certificates of deposit. Mechanics’ net interest margin increased from 3.61% to 3.62% primarily due to runoff of higher cost certificates of deposit.

Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025

Net interest income for the six months ended June 30, 2026 increased $97.6 million as compared to the six months ended June 30, 2025 due primarily to an increase of $4.7 billion in average interest-earning assets, as well as an increase in net interest margin from 3.44% in the six months ended June 30, 2025 to 3.61% in the six months ended June 30, 2026, as a result of the HomeStreet merger.

Provision for Credit Losses

Second Quarter of 2026 vs. First Quarter of 2026

The reversal of provision for credit losses in the second quarter of 2026, which consists of the provision for loans and unfunded commitments, was $2.8 million, compared to a provision of $7.8 million for the first quarter of 2026. The reversal of provision for the second quarter was primarily driven by the combination of an increase in modeled loss rates for multifamily loans, the elimination of economic qualitative adjustments now that the Middle East conflict and corresponding economic impact are embedded in expected loss rate modeling, and a reduction in residential construction and HELOC unfunded commitments.

Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025

The provision for credit losses was $5.0 million for the six months ended June 30, 2026, compared to a reversal of provision of $4.0 million for the six months ended June 30, 2025. The increase in provision for the six months ended June 30, 2026 was driven primarily by an increase in modeled loss rates for multifamily loans during 2026, offset slightly by downward qualitative adjustments and lower balances. The increase in provision was partially offset by a reduction in the unfunded commitments reserve.

Noninterest Income

Second Quarter of 2026 vs. First Quarter of 2026

Noninterest income in the second quarter of 2026 increased $2.8 million from the first quarter of 2026 primarily due to higher other noninterest income from the gain on sale of the Fannie Mae Multifamily Delegated Underwriting and Servicing (“DUS®”) business line and a mortgage servicing rights valuation adjustment.

Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025

Noninterest income for the six months ended June 30, 2026 increased $10.2 million from the six months ended June 30, 2025 primarily due to higher loan servicing income, ATM network fee income and other noninterest income, which were all driven by the HomeStreet merger. In addition, the increase in other noninterest income resulted from the gain on sale of the DUS business line and a mortgage servicing rights valuation adjustment. The increases in noninterest income were partially offset by lower gain on sales and calls of investment securities.

Noninterest Expense

Second Quarter of 2026 vs. First Quarter of 2026

Noninterest expense decreased $6.0 million in the second quarter of 2026 compared to the first quarter of 2026, primarily due to lower salaries and employee benefits expense from a decrease in headcount as a result of integration following the HomeStreet merger.

Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025

Noninterest expense increased $78.2 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to higher salaries and employee benefits expense, occupancy costs, equipment expense, amortization of intangibles and acquisition and integration related costs from the HomeStreet merger.

Income Taxes

Second Quarter of 2026 vs. First Quarter of 2026

Our effective tax rate during the second quarter of 2026 was 27.2% as compared to 28.7% in the first quarter of 2026 and our federal statutory rate was 21.0%. The effective tax rate decreased compared to the prior quarter as a result of a $1.7 million remeasurement of deferred tax assets in the first quarter.

Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025

Our effective tax rate for the six months ended June 30, 2026 was 27.9% as compared to 28.4% for the six months ended June 30, 2025 and our federal statutory rate was 21.0%. The effective tax rate decreased compared to the six months ended June 30, 2025 as a result of a lower state tax rate due to more taxable income being apportioned to states with lower tax rates and an increase in tax exempt investments and loans, both a result of the HomeStreet merger. These were partially offset by the $1.7 million remeasurement of deferred tax assets in the current year.

BALANCE SHEET HIGHLIGHTS

Selected Balance Sheet Items

(in thousands)		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Cash and cash equivalents		$	553,915		$	483,513		$	1,029,983		$	1,442,647		$	2,078,960
Trading securities			46,595			49,463			49,518			50,357			—
Securities available-for-sale			4,119,215			3,933,705			3,993,385			3,490,478			2,562,438
Securities held-to-maturity			1,286,813			1,313,520			1,336,632			1,363,636			1,391,211
Loans held for investment (before ACL) (1)			13,576,196			13,852,209			14,176,936			14,587,530			9,239,834
Total assets (1)			21,230,839			21,388,955			22,351,475			22,721,935			16,571,173
Noninterest-bearing demand deposits		$	6,420,746		$	6,511,998		$	6,744,082		$	6,748,479		$	5,453,890
Total deposits			18,089,437			18,242,769			19,024,997			19,452,819			13,968,863
Borrowings			80,000			—			—			—			—
Long-term debt			130,420			128,815			192,014			190,123			—
Total liabilities			18,540,908			18,597,563			19,489,100			19,934,686			14,154,556
Total shareholders’ equity (1)			2,689,931			2,791,392			2,862,375			2,787,249			2,416,617

(1)

Prior period comparative disclosures for September 30, 2025 reflect the impact of adoption of ASU 2025-08.

Investment Securities

Trading securities totaled $46.6 million and $49.5 million at June 30, 2026 and March 31, 2026. Securities available-for-sale increased by $185.5 million during the second quarter of 2026 to $4.1 billion at June 30, 2026, primarily due to purchases of agency MBS, partially offset by paydowns. Securities held-to-maturity decreased by $26.7 million in the second quarter of 2026, due to paydowns, and totaled $1.3 billion at June 30, 2026.

Loans

Total loans at June 30, 2026 were $13.6 billion, a decrease of $276.0 million from $13.9 billion at March 31, 2026, due primarily to loan repayments during the quarter, partially offset by originations.

Deposits

Total deposits decreased by $153.3 million during the second quarter of 2026 to $18.1 billion at June 30, 2026. The decrease was due to $199.2 million certificates of deposit runoff, partially offset by $45.9 million of core deposit growth.

Noninterest-bearing demand deposits totaled $6.4 billion and represented 35% of total deposits at June 30, 2026, compared to $6.5 billion, or 36% of total deposits, at March 31, 2026.

Borrowings

Total borrowings were $80.0 million at June 30, 2026, compared to zero at March 31, 2026. The increase in the second quarter of 2026 was due to short-term Federal Reserve Discount Window borrowings during the quarter.

Equity

During the second quarter of 2026, total shareholders’ equity decreased by $101.5 million to $2.7 billion and tangible common equity ⁽¹⁾ increased slightly by $5.9 million, and was $1.75 billion at June 30, 2026. The decrease in total shareholders’ equity for the second quarter of 2026 primarily resulted from a net decrease in retained earnings in the second quarter of 2026 from net income, less dividends paid to common shareholders. Tangible common equity remained relatively flat due to the reduction in intangibles from the sale of the DUS business line, which offset the decrease in total shareholders’ equity.

At June 30, 2026, book value per common share decreased to $12.15, compared to $12.61 at March 31, 2026. At June 30, 2026, tangible book value per common share ⁽¹⁾ increased to $7.56, compared to $7.53 at March 31, 2026.

(1)

Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” below.

CAPITAL AND LIQUIDITY

Capital ratios remain strong with Total risk-based capital at 16.70% and a Tier 1 leverage ratio of 8.71% at June 30, 2026. The following table presents our regulatory capital ratios as of the dates indicated:

		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Mechanics Bancorp (1),(2)
Tier 1 leverage capital (to average assets)		8.71	%		8.66	%		8.65	%		10.34	%		n/a
Common equity Tier 1 capital (to risk-weighted assets)		14.39	%		13.92	%		14.09	%		13.42	%		n/a
Tier 1 risk-based capital (to risk-weighted assets)		14.39	%		13.92	%		14.09	%		13.42	%		n/a
Total risk-based capital (to risk-weighted assets)		16.70	%		16.16	%		16.27	%		15.57	%		n/a
Mechanics Bank (1)
Tier 1 leverage capital (to average assets)		9.38	%		9.31	%		9.58	%		11.46	%		10.16	%
Common equity Tier 1 capital (to risk-weighted assets)		15.48	%		14.96	%		15.59	%		14.87	%		18.27	%
Tier 1 risk-based capital (to risk-weighted assets)		15.48	%		14.96	%		15.59	%		14.87	%		18.27	%
Total risk-based capital (to risk-weighted assets)		16.74	%		16.21	%		16.81	%		16.13	%		19.10	%

(1)		On September 2, 2025, HomeStreet Bank merged with and into Mechanics Bank, with Mechanics Bank surviving the merger and becoming a wholly-owned subsidiary of Mechanics Bancorp. As a result, for periods prior to September 30, 2025, regulatory capital ratios are only presented for Mechanics Bank.
(2)		Regulatory capital ratios at June 30, 2026 are preliminary.

At June 30, 2026, Mechanics had available borrowing capacity of $5.9 billion from the FHLB, $4.4 billion from the Federal Reserve and $5.0 billion under borrowing lines established with other financial institutions.

CREDIT QUALITY

Asset Quality Information and Ratios

(dollars in thousands)		June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
Delinquent loans held for investment:
30-89 days past due (1)		$	54,529			$	43,556			$	58,459			$	55,899			$	106,710
90+ days past due			40,888				33,447				34,686				38,316				10,660
Total delinquent loans		$	95,417			$	77,003			$	93,145			$	94,215			$	117,370
Total delinquent loans to loans held for investment			0.70	%			0.56	%			0.66	%			0.65	%			1.27	%
Nonperforming assets:
Nonaccrual loans		$	48,557			$	44,379			$	42,863			$	60,586			$	18,606
90+ days past due and accruing			6,543				4,098				3,943				2,653				717
Total nonperforming loans			55,100				48,477				46,806				63,239				19,323
Foreclosed assets			4,262				4,658				4,990				1,675				—
Total nonperforming assets		$	59,362			$	53,135			$	51,796			$	64,914			$	19,323
Allowance for credit losses on loans		$	152,601			$	156,796			$	153,319			$	168,959			$	68,334
Allowance for credit losses on loans to total loans held for investment			1.12	%			1.13	%			1.08	%			1.16	%			0.74	%
Allowance for credit losses on loans to nonaccrual loans			314.27	%			353.31	%			357.70	%			278.88	%			367.27	%
Nonaccrual loans to total loans held for investment			0.36	%			0.32	%			0.30	%			0.42	%			0.20	%
Nonperforming assets to total assets			0.28	%			0.25	%			0.23	%			0.29	%			0.12	%

(1)

Prior period comparative disclosures for September 30, 2025 reflect the impact of adoption of ASU 2025-08.

At June 30, 2026, total delinquent loans were $95.4 million, compared to $77.0 million at March 31, 2026. The increase was primarily due to two matured commercial real estate loans that became past due during the quarter and were in process of refinance or extension as of June 30, 2026. Total delinquent loans as a percentage of total loans were 0.70% at June 30, 2026, as compared to 0.56% at March 31, 2026.

At June 30, 2026, nonperforming assets were $59.4 million, compared to $53.1 million at March 31, 2026. The slight increase was primarily due to additional single family, home equity and multifamily nonperforming loans during the quarter, partially offset by $2.4 million of foreclosed assets sold. Nonperforming assets as a percentage of total assets increased to 0.28% at June 30, 2026, as compared to 0.25% at March 31, 2026.

Allowance for Credit Losses

		Quarter Ended												Six Months Ended
(dollars in thousands)		June 30, 2026				March 31, 2026				June 30, 2025				June 30, 2026				June 30, 2025
Allowance for credit losses on loans:
Beginning balance		$	156,796			$	153,319			$	75,515			$	153,319			$	88,558
Provision (reversal of provision) for credit losses			(904	)			7,593				357				6,689				(3,395	)
Loans charged off			(6,308	)			(7,205	)			(9,949	)			(13,513	)			(22,166	)
Recoveries			3,017				3,089				2,411				6,106				5,337
Ending balance		$	152,601			$	156,796			$	68,334			$	152,601			$	68,334
Allowance for credit losses on unfunded lending commitments:
Beginning balance		$	7,289			$	7,115			$	4,460			$	7,115			$	4,366
Provision (reversal of provision) for credit losses			(1,863	)			174				(725	)			(1,689	)			(631	)
Ending balance		$	5,426			$	7,289			$	3,735			$	5,426			$	3,735
Net charge-offs to average loans (1)			0.10	%			0.12	%			0.32	%			0.11	%			0.36	%

(1)

Ratios are annualized.

The allowance for credit losses on loans totaled $152.6 million, or 1.12% of total loans at June 30, 2026, compared to $156.8 million, or 1.13% of total loans at March 31, 2026. The decrease in allowance was the result of a decrease in qualitative factors across loan types, with the greatest impact on commercial real estate loans due to the size of the portfolio, partially offset by higher expected loss rates due to a weaker economic outlook stemming from the conflict in the Middle East.

Conference Call

The Company will host a conference call and webcast to discuss its second quarter 2026 financial results at 11:00 a.m. Eastern Time (ET) on Wednesday, July 29, 2026. Investors and analysts interested in participating in the call are invited to dial 1-833-461-5787 (international callers please dial 1-585-542-9983) approximately 10 minutes prior to the start of the call. The pin to access the call is 513809929. A live audio webcast of the conference call will be available on the Company’s website at https://ir.mechanicsbank.com. The earnings presentation for the call will also be available on the Company’s Investor Relations website prior to the call.

A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed through the News & Events tab of the Company’s website as well as through the webcast link: https://events.q4inc.com/attendee/513809929.

About Mechanics Bancorp

Mechanics Bancorp is headquartered in Walnut Creek, Calif., and is the financial holding company of Mechanics Bank, a full-service, FDIC-insured bank with $21.2 billion in assets as of June 30, 2026, and 166 branches across California, Oregon, Washington and Hawaii. Founded in 1905 to help families, businesses and communities prosper, Mechanics Bank offers a wide range of products and services in consumer and business banking, commercial lending, cash management services, private banking, and comprehensive wealth management and trust services.

To learn more, visit www.MechanicsBank.com.

Cautionary Note

The information contained herein is preliminary and based on Company data available at the time of this earnings release. It speaks only as of the particular date or dates included in the earnings release. Except as required by law, Mechanics does not undertake an obligation to, and disclaims any duty to, update any of the information herein.

Forward-Looking Statements

This earnings release, including information incorporated by reference herein, contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). All statements, other than statements of historical fact, contained or incorporated by reference in this earnings release, including statements regarding our plans, objectives, expectations, strategies, beliefs, or future performance or events, are forward-looking statements. Generally, forward-looking statements include the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “look,” “may,” “optimistic,” “plan,” “potential,” “projection,” “should,” “will,” and “would” and similar expressions (or the negative of these terms), although not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates, and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. Furthermore, the following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this earnings release:

• substantial non-recurring and integration costs, which may be greater than anticipated due to unexpected events;

• failure to realize the anticipated benefits of the HomeStreet merger;

• our ability to effectively manage our expanded operations;

• negative developments and events impacting the financial services industry;

• the soundness of other financial institutions;

• our ability to maintain sufficient liquidity, or an increase in the cost of liquidity;

• unpredictable economic, market and business conditions;

• interest rate risk, and fluctuations in interest rates;

• inflationary pressures and rising prices;

• adverse changes in real estate market values;

• the impact of climate change, including indirectly through impacts on our customers;

• the adequacy of our allowances for credit losses for loans and debt securities;

• incurring losses in our loan portfolio despite strict adherence to our underwriting practices;

• fluctuations in our mortgage origination business based upon seasonal and other factors;

• our geographic concentration, which may magnify the adverse effects and consequences of any regional or local economic downturn;

• the accuracy of independent appraisals to determine the value of the real estate that secures a substantial portion of our loans;

• the ability of our small- to medium-sized borrowers to weather adverse business developments;

• our ability to fully identify and mitigate exposure to the various risks that we face, including interest rate, credit, liquidity and market risk;

• our ability to mitigate our exposure to interest rate risk;

• negative publicity regarding us, or financial institutions in general;

• environmental liability risk associated with our lending activities;

• our ability to manage risks associated with new lines of business, products, product enhancements and services;

• our ability to adapt our services to changes in the marketplace related to mortgage servicing or origination, technology or in changes in the requirements of governmental authorities and customers;

• our ability to develop, implement and maintain an effective system of internal control over financial reporting;

• the potential that we may identify material weaknesses in our internal control over financial reporting in the future, which may result in material misstatements of our financial statements;

• the potential that we may write off goodwill and other intangible assets resulting from business combinations;

• dependence on our management team;

• exposure to fraudulent and negligent acts by our customers and the parties they do business with, as well as from employees, contractors and vendors;

• legal claims and litigation, including potential securities law liabilities;

• employee class action lawsuits or other legal proceedings;

• our ability to raise additional capital, if needed;

• competition from other financial institutions and financial service companies;

• regulatory restrictions that may delay, impede or prohibit our ability to consider certain acquisitions and opportunities;

• extensive supervision and regulation that could restrict our activities and impose financial requirements or limitations on the conduct of our business and limit our ability to generate income;

• our ability to comply with stringent capital requirements;

• the impact of federal and state regulators’ examination of our business;

• our ability to comply with the Bank Secrecy Act and other anti-money laundering statutes and regulations;

• our reliance on dividends from Mechanics Bank;

• our ability to raise debt or capital to pay off our debts upon maturity;

• our level of indebtedness following the completion of the HomeStreet merger;

• increasing and continually evolving cybersecurity and other technological risks;

• our ability to adapt to rapid technological change;

• our ability to effectively implement new technological solutions or enhancements to existing systems or platforms;

• our ability to manage risks and challenges relating to the development and use of artificial intelligence;

• our dependence on our computer and communications systems;

• our ability to effectively manage and aggregate data;

• Ford Financial Funds and their controlled affiliates control approximately 77% of the voting power of Mechanics Bancorp, and have the ability to elect all of our directors and control most other matters submitted to our shareholders for approval;

• we are a “controlled company” within the meaning of the rules of Nasdaq and, as a result, we qualify for, and rely on, exemptions from certain corporate governance standards;

• future sales of shares by existing shareholders could cause our stock price to decline;

• our reliance on certain entities affiliated with the Ford Financial Funds for services;

• reduced disclosure requirements as a smaller reporting company; and

• certain of our shareholders have registration rights, the exercise of which could adversely affect the trading price of our common stock.

A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives is also contained in Item 1A “Risk Factors” included in our 2025 Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the “SEC”). We strongly recommend readers review those disclosures in conjunction with the discussions herein. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and should not be relied upon as a prediction of actual results or future events.

Forward-looking statements in this earnings release are based on management’s expectations at the time such statements are made and speak only as of the date made. We do not assume any obligation or undertake to update any forward-looking statements after the date of this earnings release as a result of new information, future events or developments, except as required by federal securities or other applicable laws, although we may do so from time to time.

All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that we currently deem immaterial may become material, and it is impossible for us to predict these events or how they may affect us.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands)	June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
ASSETS
Cash and cash equivalents	$	553,915			$	483,513			$	1,029,983			$	1,442,647			$	2,078,960
Trading securities		46,595				49,463				49,518				50,357				—
Securities available-for-sale		4,119,215				3,933,705				3,993,385				3,490,478				2,562,438
Securities held-to-maturity		1,286,813				1,313,520				1,336,632				1,363,636				1,391,211
Loans held for sale		5,345				4,692				5,967				54,985				415
Loan receivables (1)		13,576,196				13,852,209				14,176,936				14,587,530				9,239,834
Allowance for credit losses on loans		(152,601	)			(156,796	)			(153,319	)			(168,959	)			(68,334	)
Net loan receivables (1)		13,423,595				13,695,413				14,023,617				14,418,571				9,171,500
Mortgage servicing rights		59,142				84,000				85,832				88,595				—
Other real estate owned		4,262				4,658				4,990				1,675				—
Federal Home Loan Bank stock, at cost		17,287				17,289				17,292				17,294				17,250
Premises and equipment, net		141,615				143,157				143,895				143,917				114,715
Bank-owned life insurance		172,980				171,674				170,339				169,163				84,786
Goodwill		843,305				843,305				843,305				843,305				843,305
Other intangible assets, net		97,906				205,269				212,491				143,264				33,309
Right-of-use asset		74,623				78,046				82,076				85,657				56,696
Interest receivable and other assets (1)		384,241				361,251				352,153				408,391				216,588
TOTAL ASSETS (1)	$	21,230,839			$	21,388,955			$	22,351,475			$	22,721,935			$	16,571,173
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Noninterest-bearing demand deposits	$	6,420,746			$	6,511,998			$	6,744,082			$	6,748,479			$	5,453,890
Interest-bearing transaction accounts		8,394,708				8,222,964				8,128,832				7,918,670				6,359,590
Savings and time deposits		3,273,983				3,507,807				4,152,083				4,785,670				2,155,383
Total deposits		18,089,437				18,242,769				19,024,997				19,452,819				13,968,863
Borrowings		80,000				—				—				—				—
Long-term debt		130,420				128,815				192,014				190,123				—
Operating lease liability		78,174				82,403				86,794				90,796				59,233
Interest payable and other liabilities		162,877				143,576				185,295				200,948				126,460
TOTAL LIABILITIES		18,540,908				18,597,563				19,489,100				19,934,686				14,154,556
SHAREHOLDERS’ EQUITY
Common stock		2,404,941				2,402,968				2,402,193				2,401,989				2,122,374
Retained earnings (1)		303,046				407,908				456,695				394,069				325,793
Accumulated other comprehensive income (loss), net of tax		(18,056	)			(19,484	)			3,487				(8,809	)			(31,550	)
TOTAL SHAREHOLDERS’ EQUITY (1)		2,689,931				2,791,392				2,862,375				2,787,249				2,416,617
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (1)	$	21,230,839			$	21,388,955			$	22,351,475			$	22,721,935			$	16,571,173
Common shares outstanding-Class A and B		221,425,469				221,400,590				221,305,009				221,203,135				202,015,832

(1)

Prior period comparative disclosures for September 30, 2025 reflect the impact of adoption of ASU 2025-08.

CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

	Quarter Ended											Six Months Ended
(dollars in thousands, except per share amounts)	June 30, 2026				March 31, 2026			June 30, 2025				June 30, 2026				June 30, 2025
INTEREST INCOME
Loans interest and fees	$	178,170			$	181,190		$	120,116			$	359,360			$	237,908
Investment securities		53,062				53,074			42,013				106,136				89,598
Interest-bearing cash and other		6,710				7,672			16,024				14,382				24,232
Total interest income		237,942				241,936			178,153				479,878				351,738
INTEREST EXPENSE
Deposits		56,544				58,323			48,024				114,867				93,155
Borrowed funds		1,055				228			—				1,283				—
Long-term debt		3,171				4,340			—				7,511				—
Total interest expense		60,770				62,891			48,024				123,661				93,155
Net interest income		177,172				179,045			130,129				356,217				258,583
Provision (reversal of provision) for credit losses on loans		(904	)			7,593			357				6,689				(3,395	)
Provision (reversal of provision) for credit losses on unfunded lending commitments		(1,863	)			174			(725	)			(1,689	)			(631	)
Net interest income after provision for credit losses		179,939				171,278			130,497				351,217				262,609
NONINTEREST INCOME
Service charges on deposit accounts		6,027				6,043			5,492				12,070				10,986
Trust fees and commissions		3,476				3,070			3,216				6,546				6,335
ATM network fee income		4,109				3,904			3,040				8,013				5,928
Loan servicing income		1,582				1,927			168				3,509				345
Net gain on sales and calls of investment securities		31				52			4,137				83				4,137
Income from bank-owned life insurance		1,327				1,165			502				2,492				1,029
Other		7,244				4,859			3,070				12,103				5,846
Total noninterest income		23,796				21,020			19,625				44,816				34,606
NONINTEREST EXPENSE
Salaries and employee benefits		63,090				68,550			47,734				131,640				96,585
Occupancy		11,851				12,429			8,337				24,280				16,309
Equipment		8,724				9,615			6,288				18,339				12,157
Professional services		7,435				6,071			5,907				13,506				10,823
FDIC assessments and regulatory fees		2,990				2,990			2,213				5,980				4,426
Amortization of intangible assets		7,207				7,222			2,666				14,429				5,404
Data processing		2,468				3,873			2,200				6,341				3,550
Loan related		3,616				3,506			3,220				7,122				4,797
Marketing and advertising		696				907			744				1,603				1,328
Other real estate owned related		47				384			104				431				2,788
Acquisition and integration costs		5,923				4,794			5,639				10,717				5,989
Other		10,426				10,086			6,028				20,512				12,562
Total noninterest expense		124,473				130,427			91,080				254,900				176,718
Income before income tax expense		79,262				61,871			59,042				141,133				120,497
INCOME TAX EXPENSE		21,561				17,781			16,557				39,342				34,221
NET INCOME	$	57,701			$	44,090		$	42,485			$	101,791			$	86,276
Basic earnings per share
Class A common stock	$	0.25			$	0.19		$	0.20			$	0.44			$	0.41
Class B common stock	$	2.51			$	1.91		$	2.00			$	4.42			$	4.07
Diluted earnings per share
Class A common stock	$	0.25			$	0.19		$	0.20			$	0.44			$	0.41
Class B common stock	$	2.51			$	1.91		$	2.00			$	4.42			$	4.07
Basic weighted-average shares outstanding
Class A common stock		221,148,246				221,047,803			200,893,223				221,098,302				200,889,074
Class B common stock		1,114,448				1,114,448			1,114,448				1,114,448				1,114,448
Diluted weighted-average shares outstanding
Class A common stock		221,338,344				221,203,293			200,952,643				221,271,096				200,948,494
Class B common stock		1,114,448				1,114,448			1,114,448				1,114,448				1,114,448

LOANS HELD FOR INVESTMENT ⁽¹⁾

(in thousands)		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Commercial and industrial		$	439,814		$	460,081		$	482,170		$	550,176		$	280,551
Commercial real estate
Multifamily			5,223,356			5,291,597			5,355,252			5,450,206			2,826,750
Non-owner occupied			1,614,883			1,711,611			1,740,277			1,866,119			1,551,617
Owner occupied			512,474			586,698			689,079			710,638			323,419
Construction and land development			360,668			399,546			493,992			538,754			135,013
Residential real estate			4,107,867			4,017,120			3,970,803			3,914,675			2,438,271
Auto			510,232			639,825			791,012			954,617			1,147,967
Other consumer			806,902			745,731			654,351			602,345			536,246
Total LHFI		$	13,576,196		$	13,852,209		$	14,176,936		$	14,587,530		$	9,239,834

(1)

Prior period comparative disclosures for September 30, 2025 reflect the impact of adoption of ASU 2025-08.

COMPOSITION OF DEPOSITS

(in thousands)		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Deposits by product:
Noninterest-bearing demand deposits		$	6,420,746		$	6,511,998		$	6,744,082		$	6,748,479		$	5,453,890
Interest-bearing:
Interest-bearing demand deposits			1,671,232			1,767,403			1,878,468			1,733,215			1,331,785
Savings			1,328,503			1,363,137			1,367,475			1,398,430			1,173,943
Money market			6,723,476			6,455,561			6,250,364			6,185,455			5,027,805
Certificates of deposit			1,945,480			2,144,670			2,784,608			3,387,240			981,440
Total interest-bearing deposits			11,668,691			11,730,771			12,280,915			12,704,340			8,514,973
Total deposits		$	18,089,437		$	18,242,769		$	19,024,997		$	19,452,819		$	13,968,863

SUMMARY FINANCIAL DATA

	Quarter Ended												Six Months Ended
	June 30, 2026				March 31, 2026				June 30, 2025				June 30, 2026				June 30, 2025
Select performance ratios:
Return on average equity (1)		8.48	%			6.25	%			7.15	%			7.35	%			7.37	%
Return on average tangible equity (1),(2)		14.42	%			11.07	%			11.82	%			12.73	%			12.28	%
Return on average assets (1)		1.09	%			0.82	%			1.03	%			0.95	%			1.06	%
Efficiency ratio		61.9	%			65.2	%			60.8	%			63.6	%			60.3	%
Efficiency ratio (non-GAAP) (2)		58.4	%			61.6	%			59.0	%			60.0	%			58.4	%
Net interest margin (1)		3.62	%			3.61	%			3.44	%			3.61	%			3.44	%
Cash dividends declared per share:
Class A common stock	$	0.70			$	0.40			$	—			$	1.10			$	—
Class B common stock	$	7.00			$	4.00			$	—			$	11.00			$	—

	As of
	June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
Other data:
Book value per share (3)	$	12.15			$	12.61			$	12.93			$	12.60			$	11.96
Tangible book value per share (2), (3)	$	7.56			$	7.53			$	7.81			$	7.79			$	7.26
Common equity ratio (3)		12.67	%			13.05	%			12.81	%			12.27	%			14.58	%
Tangible common equity ratio (2), (3)		8.62	%			8.57	%			8.48	%			8.28	%			9.81	%
Loans to deposit ratio (3)		75.05	%			75.93	%			74.52	%			74.99	%			66.15	%
Full time equivalent employees		1,756				1,890				1,921				2,036				1,303

(1)		Ratios are annualized.
(2)		Return on average tangible equity, efficiency ratio (excluding the impact of intangible amortization), tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. For a reconciliation of these measures to the comparable GAAP financial measure or the computation of the measure, see “Non-GAAP Financial Measures and Reconciliations” below.
(3)		Prior period comparative disclosures for September 30, 2025 reflect the impact of adoption of ASU 2025-08.

NET INTEREST MARGIN

		Quarter Ended
		June 30, 2026									March 31, 2026									June 30, 2025
(dollars in thousands)		Average Balance			Interest			Average Yield/ Cost (1)			Average Balance			Interest			Average Yield/ Cost (1)			Average Balance			Interest			Average Yield/ Cost (1)
Assets:
Interest-earning assets:
Cash and cash equivalents		$	459,729		$	3,520		3.07	%		$	549,799		$	4,162		3.07	%		$	1,390,355		$	14,668		4.23	%
Investment securities			5,355,011			53,062		3.97	%			5,425,705			53,074		3.97	%			4,342,666			42,013		3.88	%
Loans (2)			13,694,264			178,170		5.22	%			14,002,665			181,190		5.25	%			9,337,910			120,116		5.16	%
FHLB stock and other investments			147,538			3,190		8.67	%			146,776			3,510		9.70	%			103,468			1,356		5.26	%
Total interest-earning assets			19,656,542			237,942		4.86	%			20,124,945			241,936		4.88	%			15,174,399			178,153		4.71	%
Noninterest-earning assets			1,661,711									1,697,660									1,294,772
Total assets		$	21,318,253								$	21,822,605								$	16,469,171
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Demand deposits		$	1,707,751		$	1,839		0.43	%		$	1,804,524		$	2,176		0.49	%		$	1,344,397		$	1,045		0.31	%
Money market and savings			7,900,995			42,287		2.15	%			7,740,958			39,060		2.05	%			6,231,772			40,956		2.64	%
Certificates of deposit			2,036,264			12,418		2.45	%			2,472,421			17,087		2.80	%			960,431			6,023		2.52	%
Total			11,645,010			56,544		1.95	%			12,017,903			58,323		1.97	%			8,536,600			48,024		2.26	%
Borrowings:
Borrowings			114,121			1,055		3.71	%			24,667			228		3.75	%			13			—		4.61	%
Long-term debt			129,369			3,171		9.83	%			170,987			4,340		10.29	%			—			—		—	%
Total interest-bearing liabilities			11,888,500			60,770		2.05	%			12,213,557			62,891		2.09	%			8,536,613			48,024		2.26	%
Noninterest-bearing liabilities:
Demand deposits (3)			6,440,279									6,448,090									5,355,287
Other liabilities			260,515									300,464									193,089
Total liabilities			18,589,294									18,962,111									14,084,989
Shareholders’ equity			2,728,959									2,860,494									2,384,182
Total liabilities and shareholders’ equity		$	21,318,253								$	21,822,605								$	16,469,171
Net interest income					$	177,172								$	179,045								$	130,129
Net interest rate spread								2.81	%								2.79	%								2.45	%
Net interest margin								3.62	%								3.61	%								3.44	%

(1)		Ratios are annualized.
(2)		Includes loans held for sale.
(3)		Cost of all deposits, including noninterest-bearing demand deposits, was 1.25%, 1.28% and 1.39% for the quarters ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

	Six Months Ended
	June 30, 2026									June 30, 2025
(dollars in thousands)	Average Balance			Interest			Average Yield/Cost (1)			Average Balance			Interest			Average Yield/Cost (1)
Assets:
Interest-earning assets:
Cash and cash equivalents	$	504,515		$	7,681		3.07	%		$	1,064,256		$	21,856		4.14	%
Investment securities		5,390,163			106,136		3.97	%			4,561,015			89,598		3.96	%
Loans (2)		13,847,613			359,360		5.23	%			9,414,385			237,908		5.10	%
FHLB stock and other investments		147,159			6,701		9.18	%			102,355			2,376		4.68	%
Total interest-earning assets		19,889,450			479,878		4.87	%			15,142,011			351,738		4.68	%
Noninterest-earning assets		1,679,586									1,297,427
Total assets	$	21,569,036								$	16,439,438
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Demand deposits	$	1,755,870		$	4,015		0.46	%		$	1,373,563		$	2,344		0.34	%
Money market and savings		7,821,419			81,347		2.10	%			6,142,341			79,096		2.60	%
Certificates of deposit		2,253,137			29,505		2.64	%			949,911			11,715		2.49	%
Total		11,830,426			114,867		1.96	%			8,465,815			93,155		2.22	%
Borrowings:
Borrowings		69,641			1,283		3.71	%			7			—		4.61	%
Long-term debt		150,064			7,511		10.09	%			—			—		—	%
Total interest-bearing liabilities		12,050,131			123,661		2.07	%			8,465,822			93,155		2.22	%
Noninterest-bearing liabilities:
Demand deposits (3)		6,444,163									5,398,473
Other liabilities		280,379									215,532
Total liabilities		18,774,673									14,079,827
Shareholders’ equity		2,794,363									2,359,611
Total liabilities and shareholders’ equity	$	21,569,036								$	16,439,438
Net interest income				$	356,217								$	258,583
Net interest spread							2.80	%								2.47	%
Net interest margin							3.61	%								3.44	%

(1)		Ratios are annualized.
(2)		Includes loans held for sale.
(3)		Cost of all deposits, including noninterest-bearing demand deposits, was 1.27% and 1.35% for the six months ended June 30, 2026 and 2025, respectively.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

This document contains non-GAAP financial measures of our financial performance, including return on average tangible equity, efficiency ratio (excluding the impact of intangible amortization), tangible book value per share and tangible common equity ratio. We believe that these non-GAAP financial measures provide useful information because they are used by management to evaluate our operating performance, without the impact of goodwill and other intangible assets. However, these financial measures are not intended to be considered in isolation of or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition to, and not as an alternative to, its GAAP results. The non-GAAP financial measures Mechanics presents may differ from similarly captioned measures presented by other companies. The following tables present the calculations of our non-GAAP financial measures.

(dollars in thousands, except per share amounts)				Quarter Ended												Six Months Ended
Return on Average Equity and Return on Average Tangible Equity		Ref.		June 30, 2026				March 31, 2026				June 30, 2025				June 30, 2026				June 30, 2025
Net income		(a)		$	57,701			$	44,090			$	42,485			$	101,791			$	86,276
Add: intangibles amortization, net of tax (1)					5,243				5,254				1,906				10,497				3,864
Net income, excluding the impact of intangible amortization, net of tax		(b)		$	62,944			$	49,344			$	44,391			$	112,288			$	90,140
Average shareholders’ equity		(c)		$	2,728,959			$	2,860,494			$	2,384,182			$	2,794,363			$	2,359,611
Less: average goodwill and other intangible assets					978,184				1,052,479				878,190				1,015,126				879,494
Average tangible shareholders’ equity		(d)		$	1,750,775			$	1,808,015			$	1,505,992			$	1,779,237			$	1,480,117
Return on average equity (2)		(a) / (c)			8.48	%			6.25	%			7.15	%			7.35	%			7.37	%
Return on average tangible equity (non-GAAP) (2)		(b) / (d)			14.42	%			11.07	%			11.82	%			12.73	%			12.28	%
				Quarter Ended												Six Months Ended
Efficiency Ratio		Ref.		June 30, 2026				March 31, 2026				June 30, 2025				June 30, 2026				June 30, 2025
Noninterest expense		(e)		$	124,473			$	130,427			$	91,080			$	254,900			$	176,718
Less: intangibles amortization					7,207				7,222				2,666				14,429				5,404
Noninterest expense, excluding the impact of intangible amortization		(f)		$	117,266			$	123,205			$	88,414			$	240,471			$	171,314
Net interest income		(g)		$	177,172			$	179,045			$	130,129			$	356,217			$	258,583
Noninterest income		(h)		$	23,796			$	21,020			$	19,625			$	44,816			$	34,606
Efficiency ratio		(e) / (g+h)			61.9	%			65.2	%			60.8	%			63.6	%			60.3	%
Efficiency ratio (non-GAAP)		(f) / (g+h)			58.4	%			61.6	%			59.0	%			60.0	%			58.4	%

(1)		Estimated statutory tax rate of 27.25%, 27.25% and 28.50% for the quarters ended and June 30, 2026, March 31, 2026 and June 30, 2025, respectively and 27.25% and 28.50% for the six months ended June 30, 2026 and 2025, respectively.
(2)		Ratios are annualized.

(dollars in thousands, except per share amounts)				As of
Book Value per Share and Tangible Book Value per Share (3)		Ref.		June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
Total shareholders’ equity		(i)		$	2,689,931			$	2,791,392			$	2,862,375			$	2,787,249			$	2,416,617
Less: goodwill and other intangible assets					941,211				1,048,574				1,055,796				986,569				876,614
Total tangible shareholders’ equity		(j)		$	1,748,720			$	1,742,818			$	1,806,579			$	1,800,680			$	1,540,003
Common shares outstanding-Class A and B		(k)			221,425,469				221,400,590				221,305,009				221,203,135				202,015,832
Common shares outstanding-Class A					220,311,021				220,286,142				220,190,561				220,088,687				200,901,384
Common shares outstanding-Class B-adjusted					11,144,480				11,144,480				11,144,480				11,144,480				11,144,480
Shares outstanding at period end-adjusted (4)		(l)			231,455,501				231,430,622				231,335,041				231,233,167				212,045,864
Book value per share		(i) / (k)		$	12.15			$	12.61			$	12.93			$	12.60			$	11.96
Tangible book value per share (non-GAAP)		(j) / (l)		$	7.56			$	7.53			$	7.81			$	7.79			$	7.26
				As of
Common Equity Ratio and Tangible Common Equity Ratio (3)		Ref.		June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
Total shareholders’ equity		(m)		$	2,689,931			$	2,791,392			$	2,862,375			$	2,787,249			$	2,416,617
Less: goodwill and other intangible assets					941,211				1,048,574				1,055,796				986,569				876,614
Total tangible shareholders’ equity		(n)		$	1,748,720			$	1,742,818			$	1,806,579			$	1,800,680			$	1,540,003
Total assets		(o)		$	21,230,839			$	21,388,955			$	22,351,475			$	22,721,935			$	16,571,173
Less: goodwill and other intangible assets					941,211				1,048,574				1,055,796				986,569				876,614
Total tangible assets		(p)		$	20,289,628			$	20,340,381			$	21,295,679			$	21,735,366			$	15,694,559
Common equity ratio		(m) / (o)			12.67	%			13.05	%			12.81	%			12.27	%			14.58	%
Tangible common equity ratio (non-GAAP)		(n) / (p)			8.62	%			8.57	%			8.48	%			8.28	%			9.81	%

(3)		Prior period comparative disclosures for September 30, 2025 reflect the impact of adoption of ASU 2025-08.
(4)		Includes 11,144,480 Class A Shares issuable upon the conversion of 1,114,448 Class B Shares outstanding. Class B Shares also are 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.

 

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