Expanding the characteristic polynomial along the first column gives
For , solving the two nullspace equations gives
These are all the eigenvalues and eigenvectors, with nonzero vectors understood. The three displayed spanning vectors form an eigenbasis, so is diagonalizable.
At , the sole eigenvalue is three, with algebraic multiplicity three but the same two-dimensional . Thus is diagonalizable exactly when . Indeed, at the exceptional parameter, with and , so its Jordan normal form has one block of size two and one of size one. This illustrates how an eigenvalue collision can destroy diagonalizability without changing the two-dimensional eigenspace.