Basic earnings per share is computed by dividing net earnings attributable to TXNM by the weighted average number of common shares outstanding during the period. Diluted earnings per share was computed by dividing net earnings attributable to TXNM by the diluted weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other agreements to issue common stock were settled. TXNM applies the treasury stock method for restricted stock and the if-converted method is applied in determining the

dilutive effect of the potential conversion of eligible Convertible Notes. Information regarding the computation of earnings per share is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
	(In thousands, except per share amounts)
Net Earnings Attributable to TXNM	$	163,429	$	130,710	$	238,430	$	161,209
Average Number of Common Shares:
Outstanding during period	105,442		107,015		108,619		98,542
Vested awards of restricted stock	284		346		286		347
Average Shares – Basic	105,726		107,361		108,905		98,889
Dilutive Effect of Common Stock Equivalents:
Restricted stock	50		55		42		55
Convertible Notes	2,979		—		1,989		—

TXNM ATM Programs	—		1		—		98
Average Shares – Diluted	108,755		107,417		110,936		99,042

Net Earnings Per Share of Common Stock:
Basic	$	1.55	$	1.22	$	2.19	$	1.63
Diluted	$	1.50	$	1.22	$	2.15	$	1.63