COMMERCE BANCSHARES INC /MO/ 10-K

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors Commerce Bancshares, Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Commerce Bancshares, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income (loss), changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 24, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Assessment for credit losses related to loans collectively evaluated for impairment As discussed in Notes 1 and 2 to the consolidated financial statements, the total allowance for credit losses was $179.5 million as of December 31, 2025. The allowance for credit losses on loans and leases is measured on a collective (pool) basis where loans are aggregated into pools based on similar risk characteristics. The Company estimates the collective ACL utilizing average historical loss rates, calculated using historical net charge-offs and outstanding loan balances during a lookback period for each pool. In certain pools, if the Company’s own historical loss rate is not reflective of loss 67 Table of Contents expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts (forecast adjust loss rate). These adjustments increase or decrease the average historical loss rate to reflect expectations of further losses given a single path economic forecast of key macroeconomic variables. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast adjustment loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The allowance is further adjusted for certain qualitative factors not included in historical loss rates or the macroeconomic forecast, which include concentrations, changes in portfolio composition and characteristics, underwriting practices, watchlist trends, or significant unique events or conditions. We identified the assessment of the December 31, 2025 collective ACL as a critical audit matter. A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgement was involved in the assessment due to significant measurement uncertainty. Specifically, this assessment encompassed the evaluation of the conceptual soundness of the average historical loss model used to estimate the collective ACL, including the following key factors and assumptions (1) historical losses, (2) the reasonable and supportable forecast period, and (3) the development and evaluation of qualitative adjustments. In addition, auditor judgement was required to evaluate the sufficiency of audit evidence obtained. The following are the primary procedures we performed to address the critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s measurement of the collective ACL estimates, including controls over the (1) development and approval of the collective ACL methodology, (2) evaluation of conceptual soundness and performance of the ACL methodology and model, (3) identification and determination of the key factors and assumptions used to estimate the collective ACL, (4) development of qualitative adjustments, and (5) analysis of the collective ACL results, trends, and ratios. We evaluated the Company’s process to develop the collective ACL results by testing certain sources of data, factors, and assumptions, and considered the relevance and reliability of such data, factors, and assumptions. We evaluated whether the historical losses in the Company’s portfolio are representative of the credit characteristics of the current portfolio. We involved credit risk professionals with specialized skills and knowledge, who assisted in: • evaluating the Company’s collective ACL methodology for compliance with U.S generally accepted accounting principles • evaluating the collective ACL methodology and model for conceptual soundness by inspecting the methodology and model documentation to determine whether the methodology and model are suitable for intended use • testing the historical losses period and the reasonable and supportable forecast period by comparing them to the Company’s business environment and relevant industry practices • evaluating the methodology used to develop the qualitative factors and the effect of those factors on the collective ACL compared with changes in the nature and volume of the entity’s loans and leases and identified limitations of the underlying quantitative model. We assessed the sufficiency of the audit evidence obtained related to the Company’s December 31, 2025 collective ACL by evaluating the cumulative results of the audit procedures, qualitative aspects of the Company’s accounting practices and potential bias in the accounting estimates. We have served as the Company’s auditor since 1971. Kansas City, Missouri February 24, 2026 68 Table of Contents Commerce Bancshares, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS December 31 2025 2024 (In thousands) ASSETS Loans $ 17,771,263 $ 17,220,103 Allowance for credit losses on loans ( 179,468 ) ( 162,742 ) Net loans 17,591,795 17,057,361 Loans held for sale (including $ 4,028,000 and $ 2,981,000 of residential mortgage loans carried at fair value at December 31, 2025 and 2024, respectively) 4,329 3,242 Investment securities: Available for sale debt, at fair value (amortized cost of $ 9,742,278,000 and $ 10,127,426,000 at December 31, 2025 and 2024, respectively, and allowance for credit losses of $ – at both December 31, 2025 and 2024) 9,095,513 9,136,853 Trading debt 40,080 38,034 Equity 57,354 57,442 Other 230,459 230,051 Total investment securities 9,423,406 9,462,380 Federal funds sold — 3,000 Securities purchased under agreements to resell 850,000 625,000 Interest earning deposits with banks 2,744,393 2,624,553 Cash and due from banks 803,239 748,357 Premises and equipment – net 485,700 475,275 Goodwill 146,539 146,539 Other intangible assets – net 13,311 13,632 Other assets 852,377 837,288 Total assets $ 32,915,089 $ 31,996,627 LIABILITIES AND SHAREHOLDERS’ EQUITY Deposits: Non-interest bearing $ 8,205,711 $ 8,150,669 Savings, interest checking and money market 15,047,406 14,754,571 Certificates of deposit of less than $100,000 1,023,406 996,721 Certificates of deposit of $100,000 and over 1,363,053 1,391,683 Total deposits 25,639,576 25,293,644 Federal funds purchased and securities sold under agreements to repurchase 2,989,641 2,926,758 Other borrowings 12,798 56 Other liabilities 458,302 443,694 Total liabilities 29,100,317 28,664,152 Commerce Bancshares, Inc. shareholders’ equity: Common stock, $ 5 par value Authorized 190,000,000 shares at both December 31, 2025 and December 31, 2024; issued 138,588,701 shares at December 31, 2025 and 135,210,812 shares at December 31, 2024 692,944 676,054 Capital surplus 3,522,292 3,395,645 Retained earnings 131,826 45,494 Treasury stock of 876,521 shares at December 31, 2025 and 784,203 shares at December 31, 2024, at cost ( 48,001 ) ( 48,401 ) Accumulated other comprehensive income (loss) ( 507,690 ) ( 758,911 ) Total Commerce Bancshares, Inc. shareholders’ equity 3,791,371 3,309,881 Non-controlling interest 23,401 22,594 Total equity 3,814,772 3,332,475 Total liabilities and equity $ 32,915,089 $ 31,996,627 See accompanying notes to consolidated financial statements. 69 Table of Contents Commerce Bancshares, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME For the Years Ended December 31 (In thousands, except per share data) 2025 2024 2023 INTEREST INCOME Interest and fees on loans $ 1,036,491 $ 1,062,771 $ 984,397 Interest on loans held for sale 131 165 583 Interest on investment securities 310,181 271,774 278,755 Interest on federal funds sold 31 49 659 Interest on securities purchased under agreements to resell 33,090 13,358 13,649 Interest on deposits with banks 103,799 121,440 103,248 Total interest income 1,483,723 1,469,557 1,381,291 INTEREST EXPENSE Interest on deposits: Savings, interest checking and money market 210,308 226,876 146,392 Certificates of deposit of less than $100,000 34,032 42,226 38,690 Certificates of deposit of $100,000 and over 52,086 67,060 61,057 Interest on federal funds purchased 5,518 12,221 25,265 Interest on securities sold under agreements to repurchase 69,884 80,908 73,164 Interest on other borrowings 37 20 38,594 Total interest expense 371,865 429,311 383,162 Net interest income 1,111,858 1,040,246 998,129 Provision for credit losses 56,138 32,903 35,451 Net interest income after credit losses 1,055,720 1,007,343 962,678 NON-INTEREST INCOME Trust fees 232,700 214,430 190,954 Bank card transaction fees 184,267 189,784 191,156 Deposit account charges and other fees 108,246 100,336 90,992 Consumer brokerage services 22,051 18,141 17,223 Capital market fees 20,655 19,776 14,100 Loan fees and sales 13,882 12,890 11,165 Other 70,480 60,196 57,455 Total non-interest income 652,281 615,553 573,045 INVESTMENT SECURITIES GAINS (LOSSES), NET 3,660 7,823 14,985 NON-INTEREST EXPENSE Salaries and employee benefits 628,453 607,862 584,063 Data processing and software 133,970 127,390 118,758 Net occupancy 54,320 53,223 53,629 Professional and other services 48,856 35,077 36,198 Marketing 24,688 22,353 24,511 Equipment 21,508 20,619 19,548 Supplies and communication 19,686 19,291 19,420 Deposit insurance 10,049 16,482 33,163 Other 38,296 48,932 41,692 Total non-interest expense 979,826 951,229 930,982 Income before income taxes 731,835 679,490 619,726 Less income taxes 161,136 145,089 134,549 Net income 570,699 534,401 485,177 Less non-controlling interest expense (income) 4,448 8,070 8,117 Net income attributable to Commerce Bancshares, Inc. $ 566,251 $ 526,331 $ 477,060 Net income per common share - basic $ 4.04 $ 3.69 $ 3.30 Net income per common share - diluted $ 4.04 $ 3.69 $ 3.30 See accompanying notes to consolidated financial statements. 70 Table of Contents Commerce Bancshares, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the Years Ended December 31 (In thousands) 2025 2024 2023 Net income $ 570,699 $ 534,401 $ 485,177 Other comprehensive income (loss), net of tax: Net unrealized gains (losses) on other securities 257,855 172,075 209,914 Change in pension loss 2,436 1,537 3,590 Unrealized gains (losses) on cash flow hedge derivatives ( 9,070 ) ( 41,111 ) ( 18,052 ) Other comprehensive income (loss), net of tax 251,221 132,501 195,452 Comprehensive income (loss) 821,920 666,902 680,629 Less non-controlling interest (income) loss 4,448 8,070 8,117 Comprehensive income (loss) attributable to Commerce Bancshares, Inc. $ 817,472 $ 658,832 $ 672,512 See accompanying notes to consolidated financial statements. 71 Table of Contents Commerce Bancshares, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Commerce Bancshares, Inc. Shareholders (In thousands, except per share data) Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Non-Controlling Interest Total Balance at December 31, 2022 $ 629,319 $ 2,932,959 $ 31,620 $ ( 41,743 ) $ ( 1,086,864 ) $ 16,286 $ 2,481,577 Net income 477,060 8,117 485,177 Other comprehensive income (loss) 195,452 195,452 Distributions to non-controlling interest ( 4,235 ) ( 4,235 ) Purchases of treasury stock ( 76,890 ) ( 76,890 ) Sale of non-controlling interest of subsidiary 54 ( 54 ) — Cash dividends paid on common stock ($ .933 per share) ( 134,734 ) ( 134,734 ) Stock-based compensation 17,052 17,052 Issuance under stock purchase and equity compensation plans ( 21,732 ) 23,439 1,707 5 % stock dividend, net 26,003 234,289 ( 320,763 ) 59,595 ( 876 ) Balance at December 31, 2023 655,322 3,162,622 53,183 ( 35,599 ) ( 891,412 ) 20,114 2,964,230 Net income 526,331 8,070 534,401 Other comprehensive income (loss) 132,501 132,501 Distributions to non-controlling interest ( 5,590 ) ( 5,590 ) Purchases of treasury stock ( 171,407 ) ( 171,407 ) Cash dividends paid on common stock ($ .980 per share) ( 139,503 ) ( 139,503 ) Stock-based compensation 17,031 17,031 Issuance under stock purchase and equity compensation plans ( 23,816 ) 25,514 1,698 5 % stock dividend, net 20,732 239,808 ( 394,517 ) 133,091 ( 886 ) Balance at December 31, 2024 676,054 3,395,645 45,494 ( 48,401 ) ( 758,911 ) 22,594 3,332,475 Net income 566,251 4,448 570,699 Other comprehensive income (loss) 251,221 251,221 Distributions to non-controlling interest ( 3,641 ) ( 3,641 ) Purchases of treasury stock ( 207,967 ) ( 207,967 ) Cash dividends paid on common stock ($ 1.048 per share) ( 146,596 ) ( 146,596 ) Stock-based compensation 17,272 17,272 Issuance under stock purchase and equity compensation plans ( 18,081 ) 19,937 1,856 5 % stock dividend, net 16,890 127,456 ( 333,323 ) 188,430 ( 547 ) Balance at December 31, 2025 $ 692,944 $ 3,522,292 $ 131,826 $ ( 48,001 ) $ ( 507,690 ) $ 23,401 $ 3,814,772 See accompanying notes to consolidated financial statements. 72 Table of Contents Commerce Bancshares, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31 (In thousands) 2025 2024 2023 OPERATING ACTIVITIES Net income $ 570,699 $ 534,401 $ 485,177 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 56,138 32,903 35,451 Depreciation and amortization 56,501 54,076 49,513 Amortization of investment security premiums, net ( 18,308 ) ( 839 ) 17,666 Deferred income tax (benefit) expense 11,555 ( 591 ) ( 7,399 ) Investment securities (gains) losses, net (A) ( 3,660 ) ( 7,823 ) ( 14,985 ) Net (gains) losses on sales of loans held for sale ( 2,929 ) ( 2,326 ) ( 1,026 ) Proceeds from sales of loans held for sale 129,670 107,456 58,946 Originations of loans held for sale ( 128,743 ) ( 104,974 ) ( 57,424 ) Net (increase) decrease in trading securities, excluding unsettled transactions ( 15,321 ) ( 18,466 ) 28,478 Purchase of interest rate floors — — ( 54,449 ) Stock-based compensation 17,272 17,031 17,052 (Increase) decrease in interest receivable ( 11,025 ) ( 5,362 ) ( 5,986 ) Increase (decrease) in interest payable 8,681 ( 23,856 ) 46,650 Increase (decrease) in income taxes payable ( 22,625 ) 12,215 4,586 Other changes, net ( 2,769 ) ( 15,986 ) ( 113,481 ) Net cash provided by (used in) operating activities 645,136 577,859 488,769 INVESTING ACTIVITIES Cash paid in acquisition, net of cash received — — ( 6,365 ) Distributions received from equity-method investment — — 1,434 Proceeds from sales of investment securities (A) 85,956 1,295,587 1,141,949 Proceeds from maturities/pay downs of investment securities (A) 1,774,612 2,133,113 1,935,552 Purchases of investment securities (A) ( 1,451,271 ) ( 2,677,996 ) ( 246,286 ) Net (increase) decrease in loans ( 594,019 ) ( 54,675 ) ( 933,736 ) Securities purchased under agreements to resell ( 350,000 ) ( 500,000 ) — Repayments of securities purchased under agreements to resell 125,000 325,000 375,000 Purchases of premises and equipment ( 52,748 ) ( 46,133 ) ( 88,074 ) Sales of premises and equipment 100 8,891 4,358 Net cash provided by (used in) investing activities ( 462,370 ) 483,787 2,183,832 FINANCING ACTIVITIES Net increase (decrease) in non-interest bearing, savings, interest checking and money market deposits 273,085 413,329 ( 2,612,412 ) Net increase (decrease) in certificates of deposit ( 1,945 ) ( 487,286 ) 1,881,587 Net increase (decrease) in federal funds purchased and short-term securities sold under agreements to repurchase 62,883 17,943 67,081 FHLB short-term borrowings — — 2,250,000 Repayments of FHLB borrowings — — ( 2,250,000 ) Net increase (decrease) in other borrowings 12,742 ( 1,348 ) ( 8,268 ) Purchases of treasury stock ( 207,567 ) ( 170,470 ) ( 76,370 ) Cash dividends paid on common stock and distributions to non-controlling interest ( 150,237 ) ( 145,093 ) ( 134,734 ) Other, net ( 4 ) ( 12 ) ( 3 ) Net cash provided by (used in) financing activities ( 11,043 ) ( 372,937 ) ( 883,119 ) Increase (decrease) in cash, cash equivalents and restricted cash 171,723 688,709 1,789,482 Cash, cash equivalents and restricted cash at beginning of year 3,375,992 2,687,283 897,801 Cash, cash equivalents and restricted cash at end of year $ 3,547,715 $ 3,375,992 $ 2,687,283 Interest paid on deposits and borrowings 363,184 453,167 336,512 Loans transferred to foreclosed real estate 2,172 1,184 322 (A) Available for sale debt securities, equity securities, and other securities. See accompanying notes to consolidated financial statements. 73 Table of Contents Commerce Bancshares, Inc. and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies Nature of Operations Commerce Bancshares, Inc. and its subsidiaries (the Company) conducts its principal activities from approximately 236 branch and ATM locations, primarily throughout Missouri, Kansas, Illinois, Oklahoma and Colorado. Principal activities include retail and commercial banking, investment management, securities brokerage, mortgage banking, trust, and private banking services. The Company also maintains offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids that support customers in its commercial and/or wealth segments and operates a commercial payments business with sales representatives covering the continental U.S. Basis of Presentation, Use of Estimates, and Subsequent Events The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All material inter-company transactions have been eliminated through consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no effect on net income or total assets. The Company follows accounting principles generally accepted in the United States of America (GAAP) and reporting practices applicable to the banking industry. The preparation of financial statements under GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes. These estimates are based on information available to management at the time the estimates are made. While the consolidated financial statements reflect management’s best estimates and judgments, actual results could differ from those estimates. Management has evaluated subsequent events for potential recognition or disclosure through the date these consolidated financial statements were issued. The Company, in the normal course of business, engages in a variety of activities that involve variable interest entities (VIEs). A VIE is a legal entity that lacks equity investors or whose equity investors do not have a controlling financial interest in the entity through their equity investments. However, an enterprise is deemed to have a controlling financial interest and is the primary beneficiary of a VIE if it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. An enterprise that is the primary beneficiary must consolidate the VIE. The Company’s interests in VIEs are evaluated to determine if the Company is the primary beneficiary both at inception and when there is a change in circumstances that requires a reconsideration. The Company is considered to be the primary beneficiary in a rabbi trust related to a deferred compensation plan offered to certain employees. The assets and liabilities of this trust, which are included in the accompanying consolidated balance sheets, are not significant. The Company also has variable interests in certain entities in which it is not the primary beneficiary. These entities are not consolidated. These interests include certain investments in entities accounted for using the equity method of accounting, as well as affordable housing limited partnership interests, holdings in its investment portfolio of various asset and mortgage-backed bonds that are issued by securitization trusts, and managed discretionary trust assets that are not included in the accompanying consolidated balance sheets. Cash, Cash Equivalents and Restricted Cash In the accompanying consolidated statements of cash flows, cash and cash equivalents include “Cash and due from banks”, “Federal funds sold", "Securities purchased under agreements to resell”, and “Interest earning deposits with banks” as segregated in the accompanying consolidated balance sheets. Restricted cash is comprised of cash collateral on deposit with another financial institution to secure interest rate swap transactions. Restricted cash is included in other assets in the consolidated balance sheets and totaled $ 83 thousand and $ 82 thousand at December 31, 2025 and 2024, respectively. During 2020, the Federal Reserve System, which historically required the Bank to maintain cash balances at the Federal Reserve Bank, reduced the reserve requirement ratios to zero percent effective March 26, 2020. Other interest earning cash balances held at the Federal Reserve Bank totaled $ 2.7 billion at December 31, 2025. 74 Table of Contents Loans and Related Earnings The Company's portfolio of held-for-investment loans includes a net investment in direct financing and sales type leases to commercial and industrial and tax-exempt entities, and collectively, the Company's portfolio of loans and leases is referred to as its "loan portfolio" or "loans". Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at amortized cost, excluding accrued interest receivable. Amortized cost is the outstanding principal balance, net of any deferred fees and costs on originated loans. Origination fee income received on loans and amounts representing the estimated direct costs of origination are deferred and amortized to interest income over the life of the loan using the interest method. Interest on loans is accrued based upon the principal amount outstanding. The Company has elected the practical expedient to exclude all accrued interest receivable from all required disclosures of amortized cost. Additionally, an election was made not to measure an allowance for credit losses for accrued interest receivables. The Company has also made the election that all interest accrued but ultimately not received is reversed against interest income. Loan and commitment fees, net of costs, are deferred and recognized in interest income over the term of the loan or commitment as an adjustment of yield. Annual fees charged on credit card loans are capitalized to principal and amortized over 12 months to loan fees and sales. Other credit card fees, such as cash advance fees and late payment fees, are recognized in income as an adjustment of yield when charged to the cardholder’s account. Past Due Loans Management reports loans as past due on the day following the contractual repayment date if payment was not received by end of the business day. Loans, or portions of loans, are charged off to the extent deemed uncollectible. Loan charge-offs reduce the allowance for credit losses on loans, and recoveries of loans previously charged off are added back to the allowance. Business, business real estate, construction and land real estate, and personal real estate loans are generally charged down to estimated collectible balances when they are placed on non-accrual status. Consumer loans and related accrued interest are normally charged down to the fair value of related collateral (or are charged off in full if not collateralized) once the loans are more than 120 to 180 days delinquent, depending on the type of loan. Revolving home equity loans are charged down to the fair value of the related collateral once the loans are more than 180 days past due. Credit card loans are charged off against the allowance for credit losses when the receivable is more than 180 days past due. Non-Accrual Loans Loans are placed on non-accrual status when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment. Business, construction real estate, business real estate, and individually significant personal real estate and consumer loans that are contractually 90 days past due as to principal and/or interest payments are generally placed on non-accrual status, unless they are both well-secured and in the process of collection. Personal real estate, consumer, revolving home equity and credit card loans are generally exempt under regulatory rules from being classified as non-accrual. When a loan is placed on non-accrual status, any interest previously accrued but not collected is reversed against current interest income, and the loan is charged off to the extent uncollectible. Principal and interest payments received on non-accrual loans are generally applied to principal. Interest is included in income only after all previous loan charge-offs have been recovered and is recorded only as received. The loan is returned to accrual status only when the borrower has brought all past due principal and interest payments current, and, in the opinion of management, the borrower has demonstrated the ability to make future payments of principal and interest as scheduled. A six month history of sustained payment performance is generally required before reinstatement of accrual status. Modifications for Borrowers Experiencing Financial Difficulty The Company may renegotiate the terms of existing loans for a variety of reasons. When refinancing or restructuring a loan, the Company evaluates whether the borrower is experiencing financial difficulty. In making this determination, the Company considers whether the borrower is currently in default on any of its debt. In addition, the Company evaluates whether it is probable that the borrower would be in payment default on any of its debt in the foreseeable future without the modification and if the borrower (without the current modification) could obtain equivalent financing from another creditor at a market rate for similar debt. Modifications of loans to borrowers in these situations may indicate that the borrower is facing financial difficulty. 75 Table of Contents Loans Held For Sale Historically, loans held for sale included student loans and certain fixed rate residential mortgage loans. These loans are typically classified as held for sale upon origination based upon management's intent to sell the production of these loans. During 2024, the Company sold its remaining portfolio of student loans. When offered, the student loans were carried at the lower of aggregate cost or fair value, and their fair value was determined based on sale contract prices. The mortgage loans are carried at fair value under the elected fair value option. Their fair value is based on secondary market prices for loans with similar characteristics, including an adjustment for embedded servicing value. Changes in fair value and gains and losses on sales are included in loan fees and sales. Deferred fees and costs related to these loans are not amortized but are recognized as part of the cost basis of the loan at the time it is sold. Interest income related to loans held for sale is accrued based on the principal amount outstanding and the loan's contractual interest rate. Occasionally, other types of loans may be classified as held for sale in order to manage credit concentration. These loans are carried at the lower of cost or fair value with gains and losses on sales recognized in loan fees and sales. Allowance for Credit Losses on Loans The allowance for credit losses on loans is a valuation amount that is deducted from the amortized cost basis of loans not held at fair value to present the net amount expected to be collected over the contractual term of the loans. The allowance for credit losses on loans is measured using relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. An allowance will be created upon origination or acquisition of a loan and is updated at subsequent reporting dates. The methodology is applied consistently for each reporting period and reflects management’s current expectations of credit losses. Changes to the allowance for credit losses on loans resulting from periodic evaluations are recorded through increases or decreases to the credit loss expense for loans, which is recorded in provision for credit losses on the consolidated statements of income. Loans that are deemed to be uncollectible are charged off against the related allowance for credit losses on loans. The allowance for credit losses on loans is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis. The allowance related to these large non-accrual loans is generally measured using the fair value of the collateral (less selling cost, if applicable) as most of these loans are collateral dependent and the borrower is facing financial difficulty. As noted above, the allowance for credit losses on loans does not include an allowance for accrued interest. Liability for Unfunded Lending Commitments The Company’s unfunded lending commitments are primarily unfunded loan commitments and letters of credit. Expected credit losses for these unfunded lending commitments are calculated over the contractual period during which the Company is exposed to the credit risk. The methodology used to measure credit losses for unfunded lending commitments is the same as the methodology used for loans, however, the estimate of credit risk for unfunded lending commitments takes into consideration the likelihood that funding will occur. The liability for unfunded lending commitments excludes any exposures that are unconditionally cancellable by the Company. The loss estimate is recorded within other liabilities on the consolidated balance sheet. Changes to the liability for unfunded lending commitments are recorded through increases or decreases to the provision for credit losses on the consolidated statements of income. Direct Financing and Sales Type Leases The net investment in direct financing and sales type leases is included in loans on the Company’s consolidated balance sheets and consists of the present values of the sum of the future minimum lease payments and estimated residual value of the leased asset. Revenue consists of interest earned on the net investment and is recognized over the lease term as a constant percentage return thereon. Investments in Debt and Equity Securities The majority of the Company's investment portfolio is comprised of debt securities that are classified as available for sale. From time to time, the Company sells securities and utilizes the proceeds to reduce borrowings, fund loan growth, or modify its interest rate profile. Securities classified as available for sale are carried at fair value. Changes in fair value are reported in other comprehensive income (loss), a component of shareholders' equity. Securities are periodically evaluated for credit losses in accordance with the guidance provided in Accounting Standards Codification (ASC) 326. Further discussion of this 76 Table of Contents evaluation is provided in " Allowance for Credit Losses on Available for Sale Debt Securities" below. Gains and losses realized upon sales of securities are calculated using the specific identification method and are included in investment securities gains (losses), net, in the consolidated statements of income. Purchase premiums and discounts are amortized to interest income using a level yield method over the estimated lives of the securities. For certain callable debt securities purchased at a premium, the amortization is recorded to the earliest call date. For mortgage and asset-backed securities, prepayment experience is evaluated quarterly to determine if a change in a bond's estimated remaining life is necessary. A corresponding adjustment is then made in the related amortization of premium or discount accretion. Accrued interest receivable on available for sale debt securities is reported in other assets on the consolidated balance sheet. The Company has elected the practical expedient to exclude the accrued interest from all required disclosures of amortized cost of debt securities. Additionally, an election was made not to measure an allowance for credit losses for accrued interest receivables. Interest accrued but not received is reversed against interest income. Equity securities include common and preferred stock and are carried at fair value. Certain equity securities do not have readily determinable fair values. The Company has elected to measure these equity securities without a readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for the identical or similar investment of the same issuer. The Company has not recorded any impairment or other adjustments to the carrying amount of these equity securities without readily determinable fair values. Other securities include the Company's investments in Federal Reserve Bank stock and Federal Home Loan Bank stock, equity method investments, and private equity investments. Federal Reserve Bank stock and Federal Home Loan Bank stock are held for debt and regulatory purposes, are carried at cost and are periodically evaluated for impairment. The Company's equity method investments are carried at cost, adjusted to reflect the Company's portion of income, loss, or dividends of the investee. The Company's private equity investments in portfolio concerns, consisting of both debt and equity instruments, are held by the Company’s private equity subsidiary, which is a small business investment company licensed by the Small Business Administration. The Company's private equity investments are carried at fair value in accordance with investment company accounting guidance (ASC 946-10-15), with changes in fair value reported in current income. In the absence of readily ascertainable market values, fair value is estimated using internally developed methods. Changes in fair value which are recognized in current income and gains and losses from sales are included in investment securities gains (losses), net, in the consolidated statements of income. Trading account securities, which are debt securities bought and held principally for the purpose of resale in the near term, are carried at fair value. Gains and losses, both realized and unrealized, are recorded in non-interest income. Purchases and sales of securities are recognized on a trade date basis. A receivable or payable is recognized for transaction pending settlements. Allowance for Credit Losses on Available for Sale Debt Securities For available for sale debt securities in an unrealized loss position, the entire loss in fair value is required to be recognized in current earnings if the Company intends to sell the securities or believes it more likely than not that it will be required to sell the security before the anticipated recovery. If neither condition is met, and the Company does not expect to recover the amortized cost basis, the Company determines whether the decline in fair value resulted from credit losses or other factors. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss has occurred, and an allowance for credit losses is recorded. The allowance for credit losses is limited by the amount that the fair value is less than the amortized cost basis. Any impairment not recorded through the provision for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses on the consolidated statements of income. Losses are charged against the allowance for credit losses on securities when management believes the uncollectibility of an available for sale security is confirmed or when either of the conditions regarding intent or requirement to sell is met. Accrued interest receivable on available for sale debt securities is excluded from the estimate of credit losses. 77 Table of Contents Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase Securities purchased under agreements to resell and securities sold under agreements to repurchase are treated as collateralized financing transactions, not as purchases and sales of the underlying securities. The agreements are recorded at the amount of cash advanced or received. The Company periodically enters into securities purchased under agreements to resell with large financial institutions. Securities pledged by the counterparties to secure these agreements are delivered to a third party custodian. Securities sold under agreements to repurchase are a source of funding to the Company and are offered to cash management customers as an automated, collateralized investment account. From time to time, securities sold may also be used by the Bank to obtain additional borrowed funds at favorable rates. These borrowings are secured by a portion of the Company's investment security portfolio and delivered either to the dealer custody account at the Federal Reserve Bank or to the applicable counterparty. The fair value of collateral either received from or provided to a counterparty is monitored daily, and additional collateral is obtained, returned, or provided by the Company in order to maintain full collateralization for these transactions. As permitted by current accounting guidance, the Company offsets certain securities purchased under agreements to resell against securities sold under agreements to repurchase in its balance sheet presentation. These agreements are further discussed in Note 20, Resale and Repurchase Agreements. Premises and Equipment Land is stated at cost, and buildings and equipment are stated at cost, including capitalized interest when appropriate, less accumulated depreciation. Depreciation is computed using a straight-line method, utilizing estimated useful lives; generally 30 to 40 years for buildings, 10 years for building improvements, and 3 to 10 years for equipment. Leasehold improvements are amortized over the shorter of 10 years or the remaining lease term. Maintenance and repairs are charged to non-interest expense as incurred. Also included in premises and equipment is construction in process, which represents facilities construction projects underway that have not yet been placed into service, as well as the Company's right-of-use leased assets, which are mainly comprised of operating leases for branches, office space, ATM locations, and certain equipment. Foreclosed Assets Foreclosed assets consist of property that has been repossessed and is comprised of commercial and residential real estate and other non-real estate property, including auto and recreational and marine vehicles. The assets are initially recorded at fair value less estimated selling costs, establishing a new cost basis. Initial valuation adjustments are charged to the allowance for credit losses. Fair values are estimated primarily based on appraisals, third-party price opinions, or internally developed pricing models. After initial recognition, fair value estimates are updated periodically. Declines in fair value below cost are recognized through valuation allowances which may be reversed when supported by future increases in fair value. These valuation adjustments, in addition to gains and losses realized on sales and net operating expenses, are recorded in other non-interest expense. Foreclosed assets are included in other assets on the consolidated balance sheets. Goodwill and Intangible Assets Goodwill and intangible assets that have indefinite useful lives, such as property easement intangible assets, are not amortized but are assessed for impairment on an annual basis or more frequently in certain circumstances. When testing for goodwill impairment, the Company may initially perform a qualitative assessment. Based on the results of this qualitative assessment, if the Company concludes it is more likely than not that a reporting unit's fair value is less than its carrying amount, a quantitative analysis is performed. Quantitative valuation methodologies include a combination of formulas using current market multiples, based on recent sales of financial institutions within the Company's geographic marketplace. If the fair value of a reporting unit is less than the carrying amount, an impairment has occurred and is measured as the amount by which the carrying amount exceeds the reporting unit's fair value. The Company has not recorded impairment resulting from goodwill impairment tests. However, adverse changes in the economic environment, operations of the reporting unit, or other factors could result in a decline in fair value. Intangible assets that have finite useful lives, such as core deposit intangibles and mortgage servicing rights, are amortized over their estimated useful lives. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income, considering appropriate prepayment assumptions. Core deposit intangibles are reviewed for impairment 78 Table of Contents whenever events or changes in circumstances indicate their carrying amount may not be recoverable. Impairment is indicated if the sum of the undiscounted estimated future net cash flows is less than the carrying value of the intangible asset. Mortgage servicing rights, while initially recorded at fair value, are subsequently amortized and carried at the lower of the initial capitalized amount (net of accumulated amortization), or estimated fair value. The Company evaluates its mortgage servicing rights for impairment on a quarterly basis, using estimated prepayment speeds of the underlying mortgage loans serviced and stratification based on the risk characteristics of the underlying loans. A valuation allowance has been established, through a charge to earnings, to the extent the amortized cost exceeds the estimated fair value. However, the Company has not recorded other-than-temporary impairment losses on its intangible assets. Income Taxes Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income taxes are provided for temporary differences between the financial reporting bases and income tax bases of the Company’s assets and liabilities, net operating losses, and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income when such assets and liabilities are anticipated to be settled or realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as tax expense or benefit in the period that includes the enactment date of the change. In determining the amount of deferred tax assets to recognize in the financial statements, the Company evaluates the likelihood of realizing such benefits in future periods. A valuation allowance is established if it is more likely than not that all or some portion of the deferred tax asset will not be realized. The Company recognizes interest and penalties related to income taxes within income tax expense in the consolidated statements of income. The Company and its eligible subsidiaries file a consolidated federal income tax return. State and local income tax returns are filed on a combined, consolidated or separate return basis based upon each jurisdiction’s laws and regulations. The Company adopted ASU 2023-09 “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures” for the year ended December 31, 2025. The amendments required additional disclosures regarding the rate reconciliation and income taxes paid and adoption did not have a material impact on the Company’s financial statements. The Company adopted this Update on a retrospective basis. Additional information about current and deferred income taxes is provided in Note 9, Income Taxes. Non-Interest Income Non-interest income is mainly comprised of revenue from contracts with customers. For that revenue (excluding certain revenue associated with financial instruments, derivative and hedging instruments, guarantees, lease contracts, transferring and servicing of financial assets, and other specific revenue transactions), the Company applies the following five-step approach when recognizing revenue: (i) identify the contract with the customer, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) the performance obligation is satisfied. The Company’s contracts with customers are generally short term in nature, with a duration of one year or less, and most contracts are cancellable by either the Company or its customer without penalty. Performance obligations for customer contracts are generally satisfied at a single point in time, typically when the transaction is complete and the customer has received the goods or service, or over time. For performance obligations satisfied over time, the Company recognizes the value of the goods or services transferred to the customer when the performance obligations have been transferred and received by the customer. Payments for satisfied performance obligations are typically due when or as the goods or services are completed, or shortly thereafter, which usually occurs within a single financial reporting period. In situations where payment is made before the performance obligation is satisfied, the fees are deferred until the performance obligations pertaining to those goods or services are completed. In cases where payment has not been received despite satisfaction of its performance obligations, the Company accrues an estimate of the amount due in the period that the performance obligations have been satisfied. For contracts with variable components, the Company only recognizes revenue to the extent that it is probable that the cumulative amount recognized will not be subject to a significant reversal in future periods. Generally, the Company’s contracts do not include terms that require significant judgment to determine whether a variable component is included within the transaction price. The Company generally acts in a principal capacity, on its own behalf, in most of its contracts with customers. For these transactions, revenue and the related costs to provide the goods or services are presented on a gross basis in the financial statements. In some cases, the Company acts in an agent capacity, deriving revenue through assisting third parties in transactions with the Company’s customers. In such transactions, revenue and the related costs to provide services is presented on a net basis in the financial statements. These transactions primarily relate to fees earned from bank card and related network and rewards costs and beginning in August 2023, commissions on sales of consumer brokerage transactions and products. 79 Table of Contents Derivatives The Company's derivative contracts are carried at fair value, and changes in fair value are recognized in current earnings. They include interest rate swaps and caps, which are offered to customers to assist in managing their risks of adverse changes in interest rates. Each contract between the Company and a customer is offset by a contract between the Company and an institutional counterparty, thus minimizing the Company's exposure to rate changes. The Company also enters into certain contracts, known as credit risk participation agreements, to buy or sell credit protection on specific interest rate swaps. It also purchases and sells forward foreign exchange contracts, either in connection with customer transactions, or for its own trading purposes. Additionally, the Company originates and sells certain personal real estate mortgages. Derivative instruments under this program include mortgage loan commitments, forward loan sale contracts, and forward contracts to sell certain to-be-announced (TBA) securities. The Company's interest rate risk management policy permits the use of hedge accounting for derivatives, and the Company has entered into interest rate floor contracts as protection from the potential for declining interest rates in the commercial loan portfolio. These floors were designated and qualified as cash flow hedges. In a cash flow hedge, the changes in fair value are recorded in accumulated other comprehensive income and recognized in the income statement when the hedged cash flows affect earnings. Both at hedge inception and on an ongoing basis, the Company assesses whether the interest rate floors used in the hedging relationships are highly effective in offsetting changes in the cash flows of the hedged items. From time to time, the Company has monetized its interest rate floors that had previously been designated and qualified as cash flow hedges. In such case, the monetized cash flow hedge is derecognized and the amounts recorded in accumulated other comprehensive income (AOCI) remain in AOCI until the underlying forecasted transaction impacts earnings, unless the forecasted transaction becomes probable of not occurring. The Company has master netting arrangements with various counterparties but does not offset derivative assets and liabilities under these arrangements in its consolidated balance sheets. However, interest rate swaps that are executed under central clearing requirements are presented net of variation margin as mandated by the statutory terms of the Company's contract with its clearing counterparty. Additional information about derivatives held by the Company and valuation methods employed is provided in Note 17, Fair Value Measurements and Note 19, Derivative Instruments. Cash flows associated with derivative instruments and their related gains and losses are presented in the consolidated statement of cash flows as operating activities. Pension Plan The Company’s pension plan is described in Note 10, Employee Benefit Plans. In accordance with ASU 2017-07, the Company has reported the service cost component of net periodic pension cost in salaries and employee benefits in the accompanying consolidated statements of income, while the other components are reported in other non-interest expense. The funded status of the plan is recognized as an other asset or other liability in the consolidated balance sheets, and changes in that funded status are recognized in the year in which the changes occur through other comprehensive income. Plan assets and benefit obligations are measured as of the fiscal year end of the plan. The measurement of the projected benefit obligation and pension expense involve actuarial valuation methods and the use of various actuarial and economic assumptions. The Company monitors the assumptions and updates them periodically. Due to the long-term nature of the pension plan obligation, actual results may differ significantly from estimations. Such differences are adjusted over time as the assumptions are replaced by facts and values are recalculated. Stock-Based Compensation The Company’s stock-based compensation plan is described in Note 11, Stock-Based Compensation and Directors Stock Purchase Plan. In accordance with the requirements of ASC 718-10-30-3 and 35-2, the Company measures the cost of stock-based compensation based on the grant-date fair value of the award, recognizing the cost over the requisite service period, which is generally the vesting period. The fair value of stock appreciation rights is estimated using the Black-Scholes option-pricing model while the fair value of a nonvested stock award is the common stock (CBSH) market price. The expense recognized for stock-based compensation is included in salaries and benefits in the accompanying consolidated statements of income. The Company recognizes forfeitures as a reduction to expense only when they have occurred. Treasury Stock Purchases of the Company’s common stock are recorded at cost. Upon re-issuance for acquisitions, exercises of stock-based awards or other corporate purposes, treasury stock is reduced based upon the average cost basis of shares held. 80 Table of Contents Income per Share Basic income per share is computed using the weighted average number of common shares outstanding during each year. Diluted income per share includes the effect of all dilutive potential common shares (primarily stock appreciation rights) outstanding during each year. The Company applies the two-class method of computing income per share. The two-class method is an earnings allocation formula that determines income per share for common stock and for participating securities, according to dividends declared and participation rights in undistributed earnings. The Company’s nonvested stock awards are considered to be a class of participating security. All per share data has been restated to reflect the 5 % stock dividend distributed in December 2025. 81 Table of Contents 2. Loans and Allowance for Credit Losses Major classifications within the Company’s held for investment loan portfolio at December 31, 2025 and 2024 are as follows: (In thousands) 2025 2024 Commercial: Business $ 6,439,380 $ 6,053,820 Real estate — construction and land 1,438,012 1,409,901 Real estate — business 3,674,567 3,661,218 Personal Banking: Real estate — personal 3,053,435 3,058,195 Consumer 2,196,822 2,073,123 Revolving home equity 375,159 356,650 Consumer credit card 589,694 595,930 Overdrafts 4,194 11,266 Total loans (1) $ 17,771,263 $ 17,220,103 (1) Accrued interest receivable totaled $ 74.4 million and $ 70.6 million at December 31, 2025 and 2024, respectively, and was included within other assets on the consolidated balance sheets. For the year ended December 31, 2025, the Company wrote-off accrued interest by reversing interest income of $ 315 thousand and $ 6.3 million in the Commercial and Personal Banking portfolios, respectively. For the year ended December 31, 2024, the Company wrote-off accrued interest by reversing interest income of $ 548 thousand and $ 6.1 million in the Commercial and Personal Banking portfolios, respectively. Loans to directors and executive officers of the Parent and the Bank, and to their affiliates, are summarized as follows: (In thousands) Balance at January 1, 2025 $ 38,859 Additions 58,105 Amounts collected ( 18,340 ) Amounts written off — Balance at December 31, 2025 $ 78,624 Management believes all loans to directors and executive officers have been made in the ordinary course of business with normal credit terms, including interest rate and collateral considerations, and do not represent more than a normal risk of collection. The activity in the table above includes draws and repayments on several lines of credit with business entities. There were no outstanding loans at December 31, 2025 to principal holders (over 10% ownership) of the Company’s common stock. The Company’s lending activity is generally centered in Missouri, Kansas, Illinois and other nearby states including Oklahoma, Colorado, Iowa, Ohio, and Texas. The Company maintains a diversified portfolio with limited industry concentrations of credit risk. Loans and loan commitments are extended under the Company’s normal credit standards, controls, and monitoring procedures. Most loan commitments are short or intermediate term in nature. Commercial loan maturities generally range from one to seven years. Collateral is commonly required and would include such assets as marketable securities, cash equivalent assets, accounts receivable, inventory, equipment, other forms of personal property, and real estate. At December 31, 2025, unfunded loan commitments totaled $ 15.8 billion (which included $ 6.1 billion in unused approved lines of credit related to credit card loan agreements) which could be drawn by customers subject to certain review and terms of agreement. At December 31, 2025, loans totaling $ 2.6 billion were pledged at the FHLB as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $ 2.8 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings. The Company has a net investment in direct financing and sales type leases to commercial and industrial and tax-exempt entities o f $ 864.9 million and $ 879.6 million at December 31, 2025 and 2024, respectively, which is included in business loans on the Company’s consolidated balance sheets. This investment includes deferred income of $ 97.1 million and $ 102.5 million at December 31, 2025 and 2024, respectively. 82 Table of Contents Allowance for credit losses The allowance for credit losses is measured using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis. For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, disposable income, unemployment rate, various interest rates, consumer price index (CPI) inflation rate, housing price index (HPI), commercial real estate price index (CREPI) and market volatility. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast-adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions (except for contractual extensions at the option of the customer), renewals and modifications. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions. 83 Table of Contents Key assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, forecasted macro-economic variables, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at December 31, 2025 and 2024 are discussed below. Key Assumption December 31, 2025 December 31, 2024 Overall economic forecast • Increased GDP due to expected increases in consumer spending • Stable unemployment • Higher rates and volatility are expected to continue • The US economy will continue to grow • Expansionary fiscal policy and less immigration cause the labor market to tighten, pushing the unemployment rate lower Reasonable and supportable period and related reversion period • Reasonable and supportable period of one year • Reversion to historical average loss rates within two quarters using a straight-line method • Reasonable and supportable period of one year • Reversion to historical average loss rates within two quarters using a straight-line method Forecasted macro-economic variables • Unemployment rate ranges from 4.3% to 4.5% during the reasonable and supportable forecast period • Real GDP growth ranges from 2.1% to 2.8% • Housing Price Index from 324.9 to 329.7 • Commercial Real Estate Price Index from 292.5 to 305.6 • CPI inflation rate from 2.1% to 2.6% • Unemployment rate ranges from 4.2% to 4.3% during the reasonable and supportable forecast period • Real GDP growth ranges from 2.5% to 2.7% • BBB corporate yield from 5.2% to 5.3% • Housing Price Index from 324.8 to 335.4 Prepayment assumptions Commercial loans • 5% for most loan pools Personal banking loans • Ranging from 8.7% to 24.7% for most loan pools • Consumer credit cards 66.9% Commercial loans • 5% for most loan pools Personal banking loans • Ranging from 8.9% to 23.1% for most loan pools • Consumer credit cards 66.5% Qualitative factors Added qualitative factors related to: • Changes in the composition of the loan portfolios • Certain industries experiencing stress or emerging concerns within the portfolio • Loans downgraded to special mention, substandard, or non-accrual status • Auto, other vehicle and other consumer portfolios loss expectation adjustment • Certain portfolios where the model assumptions do not capture all identified loss risk Added qualitative factors related to: • Changes in the composition of the loan portfolios • Certain industries experiencing stress or emerging concerns within the portfolio • Loans downgraded to special mention, substandard, or non-accrual status • Consumer auto portfolio • Certain portfolios where the model assumptions do not capture all identified loss risk The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded. Sensitivity in the Allowance for Credit Loss model The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in estimated expected credit losses. The current forecast includes projections on inflation, labor market trends, Federal Reserve monetary policy, business growth and consumer spending. Economic, political, and social developments regionally, nationally, and even globally could significantly modify economic projections used in the estimation of the allowance for credit losses. Uncertainty around increased unemployment and other negative economic trends is heightened. Potential changes in any one economic variable may or may not affect the overall allowance because a variety of economic variables and inputs are considered in estimating allowance, and changes in those variables and inputs may not occur at the same rate, may not be consistent across product types and may have offsetting impacts to other changing variables and inputs. 84 Table of Contents A summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments during the years ended December 31, 2025 and 2024 follows: For the Year Ended December 31 (In thousands) Commercial Personal Banking Total ALLOWANCE FOR CREDIT LOSSES ON LOANS Balance December 31, 2024 $ 106,769 $ 55,973 $ 162,742 Provision for credit losses on loans 11,567 45,846 57,413 Deductions: Loans charged off 2,545 47,495 50,040 Less recoveries on loans 1,074 8,279 9,353 Net loan charge-offs (recoveries) 1,471 39,216 40,687 Balance December 31, 2025 $ 116,865 $ 62,603 $ 179,468 LIABILITY FOR UNFUNDED LENDING COMMITMENTS Balance December 31, 2024 $ 17,887 $ 1,048 $ 18,935 Provision for credit losses on unfunded lending commitments ( 1,348 ) 73 ( 1,275 ) Balance December 31, 2025 $ 16,539 $ 1,121 $ 17,660 ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS $ 133,404 $ 63,724 $ 197,128 ALLOWANCE FOR CREDIT LOSSES ON LOANS Balance at December 31, 2023 $ 108,201 $ 54,194 $ 162,395 Provision for credit losses on loans ( 444 ) 39,658 39,214 Deductions: Loans charged off 2,035 45,236 47,271 Less recoveries on loans 1,047 7,357 8,404 Net loan charge-offs (recoveries) 988 37,879 38,867 Balance December 31, 2024 $ 106,769 $ 55,973 $ 162,742 LIABILITY FOR UNFUNDED LENDING COMMITMENTS Balance at December 31, 2023 $ 23,909 $ 1,337 $ 25,246 Provision for credit losses on unfunded lending commitments ( 6,022 ) ( 289 ) ( 6,311 ) Balance December 31, 2024 $ 17,887 $ 1,048 $ 18,935 ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS $ 124,656 $ 57,021 $ 181,677 85 Table of Contents Delinquent and non-accrual loans The Company considers loans past due on the day following the contractual repayment date, if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at December 31, 2025 and 2024. (In thousands) Current or Less Than 30 Days Past Due 30 – 89 Days Past Due 90 Days Past Due and Still Accruing Non-accrual Total December 31, 2025 Commercial: Business $ 6,437,476 $ 1,241 $ 540 $ 123 $ 6,439,380 Real estate – construction and land 1,437,727 285 — — 1,438,012 Real estate – business 3,636,517 23,265 — 14,785 3,674,567 Personal Banking: Real estate – personal 3,021,212 19,450 11,931 842 3,053,435 Consumer 2,165,109 28,269 3,444 — 2,196,822 Revolving home equity 373,245 1,493 421 — 375,159 Consumer credit card 573,698 7,673 8,323 — 589,694 Overdrafts 3,787 407 — — 4,194 Total $ 17,648,771 $ 82,083 $ 24,659 $ 15,750 $ 17,771,263 December 31, 2024 Commercial: Business $ 6,051,654 $ 1,501 $ 564 $ 101 $ 6,053,820 Real estate – construction and land 1,409,681 — — 220 1,409,901 Real estate – business 3,640,643 5,621 — 14,954 3,661,218 Personal Banking: Real estate – personal 3,021,017 25,267 10,885 1,026 3,058,195 Consumer 2,029,115 40,398 3,610 — 2,073,123 Revolving home equity 351,056 2,798 819 1,977 356,650 Consumer credit card 579,670 7,622 8,638 — 595,930 Overdrafts 10,953 313 — — 11,266 Total $ 17,093,789 $ 83,520 $ 24,516 $ 18,278 $ 17,220,103 At December 31, 2025 the Company had no non-accrual loans that had allowance for credit loss, compared to $ 2.0 million at December 31, 2024. The Company did not record any interest income on non-accrual loans during the years ended December 31, 2025 and 2024. 86 Table of Contents Credit quality indicators The following table provides information about the credit quality of the Commercial loan portfolio. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment based on borrower specific information, including but not limited to, current financial information, historical payment experience, industry information, collateral levels and collateral types. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. A loan is assigned the risk rating at origination and then monitored throughout the contractual term for possible risk rating changes. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment. All loans are analyzed for risk rating updates annually. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Special Mention, Substandard or Non-accrual are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by a credit review department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan. 87 Table of Contents The risk category of loans in the Commercial portfolio as of December 31, 2025 and 2024 are as follows: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total December 31, 2025 Business Risk Rating: Pass $ 1,704,299 $ 847,973 $ 568,361 $ 416,732 $ 252,398 $ 336,662 $ 2,129,247 $ 6,255,672 Special mention 13,410 4,149 2,661 1,536 893 1,375 47,568 71,592 Substandard 96 619 4,713 15,957 4,016 519 86,073 111,993 Non-accrual — 49 32 42 — — — 123 Total Business: $ 1,717,805 $ 852,790 $ 575,767 $ 434,267 $ 257,307 $ 338,556 $ 2,262,888 $ 6,439,380 Gross write-offs for the year ended December 31, 2025 $ — $ 389 $ 116 $ 165 $ 2 $ 10 $ 1,423 $ 2,105 Real estate-construction Risk Rating: Pass $ 450,046 $ 283,778 $ 379,456 $ 239,314 $ 3,857 $ 2,860 $ 18,109 $ 1,377,420 Special mention 14,104 — — — — — — 14,104 Substandard — — 2,365 25,875 18,248 — — 46,488 Total Real estate-construction: $ 464,150 $ 283,778 $ 381,821 $ 265,189 $ 22,105 $ 2,860 $ 18,109 $ 1,438,012 Gross write-offs for the year ended December 31, 2025 $ — $ 40 $ — $ — $ — $ — $ — $ 40 Real estate- business Risk Rating: Pass $ 1,334,661 $ 426,130 $ 309,409 $ 462,953 $ 359,933 $ 389,275 $ 166,209 $ 3,448,570 Special mention 58,905 27,423 3,572 12,221 965 1,965 31 105,082 Substandard — 1,884 6,646 26,960 13,423 50,821 6,396 106,130 Non-accrual — — — 124 153 14,508 — 14,785 Total Real-estate business: $ 1,393,566 $ 455,437 $ 319,627 $ 502,258 $ 374,474 $ 456,569 $ 172,636 $ 3,674,567 Gross write-offs for the year ended December 31, 2025 $ — $ — $ 400 $ — $ — $ — $ — $ 400 Commercial loans Risk Rating: Pass $ 3,489,006 $ 1,557,881 $ 1,257,226 $ 1,118,999 $ 616,188 $ 728,797 $ 2,313,565 $ 11,081,662 Special mention 86,419 31,572 6,233 13,757 1,858 3,340 47,599 190,778 Substandard 96 2,503 13,724 68,792 35,687 51,340 92,469 264,611 Non-accrual — 49 32 166 153 14,508 — 14,908 Total Commercial loans: $ 3,575,521 $ 1,592,005 $ 1,277,215 $ 1,201,714 $ 653,886 $ 797,985 $ 2,453,633 $ 11,551,959 Gross write-offs for the year ended December 31, 2025 $ — $ 429 $ 516 $ 165 $ 2 $ 10 $ 1,423 $ 2,545 88 Table of Contents Term Loans Amortized Cost Basis by Origination Year (In thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total December 31, 2024 Business Risk Rating: Pass $ 1,505,299 $ 956,449 $ 596,681 $ 405,669 $ 148,483 $ 350,106 $ 1,887,596 $ 5,850,283 Special mention 13,576 7,978 8,941 4,155 263 2,065 34,997 71,975 Substandard 2,218 5,596 19,145 5,069 928 10,086 88,419 131,461 Non-accrual 1 47 1 — — 52 — 101 Total Business: $ 1,521,094 $ 970,070 $ 624,768 $ 414,893 $ 149,674 $ 362,309 $ 2,011,012 $ 6,053,820 Gross write-offs for the year ended December 31, 2024 $ 200 $ 275 $ 40 $ 53 $ — $ 18 $ 1,387 $ 1,973 Real estate-construction Risk Rating: Pass $ 419,562 $ 442,720 $ 451,606 $ 53,462 $ 3,143 $ 2,450 $ 34,075 $ 1,407,018 Substandard — 2,663 — — — — — 2,663 Non-accrual 220 — — — — — — 220 Total Real estate-construction: $ 419,782 $ 445,383 $ 451,606 $ 53,462 $ 3,143 $ 2,450 $ 34,075 $ 1,409,901 Gross write-offs for the year ended December 31, 2024 $ — $ — $ — $ — $ — $ — $ — $ — Real estate- business Risk Rating: Pass $ 755,498 $ 604,936 $ 753,023 $ 448,041 $ 363,717 $ 368,350 $ 129,868 $ 3,423,433 Special mention 324 — 12,383 12,524 1,643 298 — 27,172 Substandard 1,280 23,420 36,657 18,429 4,416 104,382 7,075 195,659 Non-accrual — — 170 — 14,668 116 — 14,954 Total Real-estate business: $ 757,102 $ 628,356 $ 802,233 $ 478,994 $ 384,444 $ 473,146 $ 136,943 $ 3,661,218 Gross write-offs for the year ended December 31, 2024 $ — $ — $ — $ — $ — $ 62 $ — $ 62 Commercial loans Risk Rating: Pass $ 2,680,359 $ 2,004,105 $ 1,801,310 $ 907,172 $ 515,343 $ 720,906 $ 2,051,539 $ 10,680,734 Special mention 13,900 7,978 21,324 16,679 1,906 2,363 34,997 99,147 Substandard 3,498 31,679 55,802 23,498 5,344 114,468 95,494 329,783 Non-accrual 221 47 171 — 14,668 168 — 15,275 Total Commercial loans: $ 2,697,978 $ 2,043,809 $ 1,878,607 $ 947,349 $ 537,261 $ 837,905 $ 2,182,030 $ 11,124,939 Gross write-offs for the year ended December 31, 2024 $ 200 $ 275 $ 40 $ 53 $ — $ 80 $ 1,387 $ 2,035 89 Table of Contents The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of December 31, 2025 and 2024 below: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total December 31, 2025 Real estate-personal Current to 90 days past due $ 386,816 $ 312,902 $ 335,950 $ 360,793 $ 438,586 $ 1,196,850 $ 8,765 $ 3,040,662 Over 90 days past due — 570 1,581 3,581 1,820 4,379 — 11,931 Non-accrual — — — — 102 740 — 842 Total Real estate-personal: $ 386,816 $ 313,472 $ 337,531 $ 364,374 $ 440,508 $ 1,201,969 $ 8,765 $ 3,053,435 Gross write-offs for the year ended December 31, 2025 $ — $ 47 $ 65 $ 416 $ 48 $ 29 $ — $ 605 Consumer Current to 90 days past due $ 520,170 $ 242,791 $ 237,779 $ 132,942 $ 93,343 $ 62,726 $ 903,627 $ 2,193,378 Over 90 days past due 187 387 406 276 117 195 1,876 3,444 Total Consumer: $ 520,357 $ 243,178 $ 238,185 $ 133,218 $ 93,460 $ 62,921 $ 905,503 $ 2,196,822 Gross write-offs for the year ended December 31, 2025 $ 894 $ 3,862 $ 2,948 $ 1,705 $ 720 $ 359 $ 2,032 $ 12,520 Revolving home equity Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 374,738 $ 374,738 Over 90 days past due — — — — — — 421 421 Total Revolving home equity: $ — $ — $ — $ — $ — $ — $ 375,159 $ 375,159 Gross write-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ 15 $ 15 Consumer credit card Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 581,371 $ 581,371 Over 90 days past due — — — — — — 8,323 8,323 Total Consumer credit card: $ — $ — $ — $ — $ — $ — $ 589,694 $ 589,694 Gross write-offs for the year ended December 31, 2025 $ — $ — $ — $ — $ — $ — $ 31,833 $ 31,833 Overdrafts Current to 90 days past due $ 4,194 $ — $ — $ — $ — $ — $ — $ 4,194 Total Overdrafts: $ 4,194 $ — $ — $ — $ — $ — $ — $ 4,194 Gross write-offs for the year ended December 31, 2025 $ 2,522 $ — $ — $ — $ — $ — $ — $ 2,522 Personal banking loans Current to 90 days past due $ 911,180 $ 555,693 $ 573,729 $ 493,735 $ 531,929 $ 1,259,576 $ 1,868,501 $ 6,194,343 Over 90 days past due 187 957 1,987 3,857 1,937 4,574 10,620 24,119 Non-accrual — — — — 102 740 — 842 Total Personal banking loans: $ 911,367 $ 556,650 $ 575,716 $ 497,592 $ 533,968 $ 1,264,890 $ 1,879,121 $ 6,219,304 Gross write-offs for the year ended December 31, 2025 $ 3,416 $ 3,909 $ 3,013 $ 2,121 $ 768 $ 388 $ 33,880 $ 47,495 90 Table of Contents Term Loans Amortized Cost Basis by Origination Year (In thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total December 31, 2024 Real estate-personal Current to 90 days past due $ 387,119 $ 387,486 $ 404,680 $ 482,733 $ 637,115 $ 736,217 $ 10,934 $ 3,046,284 Over 90 days past due 665 892 1,431 1,890 3,180 2,827 — 10,885 Non-accrual — 8 — 108 — 910 — 1,026 Total Real estate-personal: $ 387,784 $ 388,386 $ 406,111 $ 484,731 $ 640,295 $ 739,954 $ 10,934 $ 3,058,195 Gross write-offs for the year ended December 31, 2024 $ — $ 82 $ 115 $ 83 $ — $ 22 $ — $ 302 Consumer Current to 90 days past due $ 418,902 $ 369,855 $ 228,189 $ 165,030 $ 72,314 $ 49,890 $ 765,333 $ 2,069,513 Over 90 days past due 465 584 406 213 47 367 1,528 3,610 Total Consumer: $ 419,367 $ 370,439 $ 228,595 $ 165,243 $ 72,361 $ 50,257 $ 766,861 $ 2,073,123 Gross write-offs for the year ended December 31, 2024 $ 1,438 $ 3,109 $ 2,859 $ 1,308 $ 540 $ 255 $ 2,309 $ 11,818 Revolving home equity Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 353,854 $ 353,854 Over 90 days past due — — — — — — 819 819 Non-accrual — — — — — — 1,977 $ 1,977 Total Revolving home equity: $ — $ — $ — $ — $ — $ — $ 356,650 $ 356,650 Gross write-offs for the year ended December 31, 2024 $ — $ — $ — $ — $ — $ — $ — $ — Consumer credit card Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 587,292 $ 587,292 Over 90 days past due — — — — — — 8,638 8,638 Total Consumer credit card: $ — $ — $ — $ — $ — $ — $ 595,930 $ 595,930 Gross write-offs for the year ended December 31, 2024 $ — $ — $ — $ — $ — $ — $ 30,427 $ 30,427 Overdrafts Current to 90 days past due $ 11,266 $ — $ — $ — $ — $ — $ — $ 11,266 Total Overdrafts: $ 11,266 $ — $ — $ — $ — $ — $ — $ 11,266 Gross write-offs for the year ended December 31, 2024 $ 2,689 $ — $ — $ — $ — $ — $ — $ 2,689 Personal banking loans Current to 90 days past due $ 817,287 $ 757,341 $ 632,869 $ 647,763 $ 709,429 $ 786,107 $ 1,717,413 $ 6,068,209 Over 90 days past due 1,130 1,476 1,837 2,103 3,227 3,194 10,985 23,952 Non-accrual — 8 — 108 — 910 1,977 3,003 Total Personal banking loans: $ 818,417 $ 758,825 $ 634,706 $ 649,974 $ 712,656 $ 790,211 $ 1,730,375 $ 6,095,164 Gross write-offs for the year ended December 31, 2024 $ 4,127 $ 3,191 $ 2,974 $ 1,391 $ 540 $ 277 $ 32,736 $ 45,236 91 Table of Contents Collateral-dependent loans The Company's collateral-dependent loans are comprised of large loans on non-accrual status. The Company requires that collateral-dependent loans are either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of December 31, 2025 and 2024. December 31, 2025 December 31, 2024 (In thousands) Real Estate Total Real Estate Total Commercial: Real estate - business $ 14,508 $ 14,508 $ 14,667 $ 14,667 Personal Banking: Revolving home equity — — 1,977 1,977 Total $ 14,508 $ 14,508 $ 16,644 $ 16,644 Modifications for borrowers experiencing financial difficulty When borrowers are experiencing financial difficulty, the Company may agree to modify the contractual terms of a loan to a borrower in order to assist the borrower in repaying principal and interest owed to the Company. The Company's modifications of loans to borrowers experiencing financial difficulty are generally in the form of term extensions, repayment plans, payment deferrals, forbearance agreements, interest rate reductions, forgiveness of interest and/or fees, or any combination thereof. Commercial loans modified to borrowers experiencing financial difficulty are primarily loans that are substandard or non-accrual, where the maturity date was extended. Modifications on personal real estate loans are primarily those placed on forbearance plans, repayment plans, or deferral plans where monthly payments are suspended for a period of time or past due amounts are paid off over a certain period of time in the future or set up as a balloon payment at maturity. Modifications to certain credit card and other small consumer loans are often modified under debt counseling programs that can reduce the contractual rate or, in certain instances, forgive certain fees and interest charges. Other consumer loans modified to borrowers experiencing financial difficulty consist of various other workout arrangements with consumer customers. The following tables present the amortized cost at December 31, 2025 of loans that were modified during the year ended December 31, 2025 and the amortized cost at December 31, 2024 of loans that were modified during the year ended December 31, 2024. For the Year Ended December 31, 2025 (Dollars in thousands) Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category December 31, 2025 Commercial: Business $ 82,057 $ — $ — $ — $ — $ 82,057 1.3 % Real estate – construction and land 18,258 — — — — 18,258 1.3 Real estate – business 65,684 — — — — 65,684 1.8 Personal Banking: Real estate – personal 30 9,833 — — — 9,863 0.3 Consumer — 89 85 — — 174 — Consumer credit card — — 2,955 — — 2,955 0.5 Total $ 166,029 $ 9,922 $ 3,040 $ — $ — $ 178,991 1.0 % 92 Table of Contents For the Year Ended December 31, 2024 (Dollars in thousands) Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category December 31, 2024 Commercial: Business $ 48,002 $ — $ — $ — $ — $ 48,002 0.8 % Real estate – business 121,183 — — — — 121,183 3.3 Personal Banking: Real estate – personal — 9,023 — — — 9,023 0.3 Consumer — 716 96 — 66 878 — Consumer credit card — — 3,177 — — 3,177 0.5 Total $ 169,185 $ 9,739 $ 3,273 $ — $ 66 $ 182,263 1.1 % The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical experience on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a change to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are placed on non-accrual status, the Company determines the allowance for credit losses on an individual evaluation, using the same process that it utilizes for other loans on non-accrual status. Modifications made to commercial loans which are not on non-accrual status for borrowers experiencing financial difficulty are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience, and current economic factors. Modifications made to borrowers experiencing financial difficulty for personal banking loans which are not on non-accrual status are collectively evaluated based on loan type, delinquency, historical experience, and current economic factors. If a loan to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the allowance for credit losses continues to be based on individual evaluation, if that loan is already on non-accrual status. For those loans, the allowance for credit losses is estimated using discounted expected cash flows or the fair value of collateral. If an accruing loan made to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the loan's risk rating is downgraded to non-accrual status and the loan's related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begin. The following tables summarize the financial impact of loan modifications and payment deferrals during the years ended December 31, 2025 and December 31, 2024. Term Extension For the Year Ended December 31, 2025 For the Year Ended December 31, 2024 Commercial: Business Extended maturity by a weighted average of 11 months. Extended maturity by a weighted average of 7 months. Real estate – construction and land Extended maturity by a weighted average of 3 months. — Real estate – business Extended maturity by a weighted average of 22 months. Extended maturity by a weighted average of 10 months. Personal Banking: Real estate – personal Extended maturity by 9 months. — Payment Delay For the Year Ended December 31, 2025 For the Year Ended December 31, 2024 Personal Banking: Real estate – personal Deferred certain payments by a weighted average of 25 years . Deferred certain payments by a weighted average of 16 years . Consumer Deferred certain payments by a weighted average of 8 years . Deferred certain payments by 19 years . 93 Table of Contents Interest Rate Reduction For the Year Ended December 31, 2025 For the Year Ended December 31, 2024 Personal Banking: Consumer Reduced contractual interest rate from average 22% to 6%. Reduced contractual interest rate from average 21% to 6%. Consumer credit card Reduced contractual interest rate from average 22% to 6%. Reduced contractual interest rate from average 21% to 6%. The Company had commitments of $ 11.4 million and $ 14.9 million at December 31, 2025 and December 31, 2024, respectively, to lend additional funds to borrowers experiencing financial difficulty and for whom the Company has modified the terms of loans in the form of an interest rate reduction; an other-than-insignificant payment delay; forgiveness of principal, interest, or fees; or a term extension during the current reporting period. The following tables provide the amortized cost basis at December 31, 2025 of loans to borrowers experiencing financial difficulty that had a payment default during the year ended December 31, 2025 and were modified within the 12 months preceding the payment default, as well as the amortized cost basis at December 31, 2024 of loans to borrowers experiencing financial difficulty that had a payment default during the year ended December 31, 2024 and had been modified within the 12 months preceding the payment default. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal. For the Year Ended December 31, 2025 (Dollars in thousands) Term Extension Payment Delay Interest Rate Reduction Total December 31, 2025 Commercial: Real estate – business $ 14,508 $ — $ — $ 14,508 Personal Banking: Real estate – personal — 2,587 — 2,587 Consumer — 35 25 60 Consumer credit card — — 470 470 Total $ 14,508 $ 2,622 $ 495 $ 17,625 For the Year Ended December 31, 2024 (Dollars in thousands) Term Extension Payment Delay Interest Rate Reduction Total December 31, 2024 Commercial: Real estate – business $ 14,668 $ — $ — $ 14,668 Personal Banking: Real estate – personal — 3,818 — 3,818 Consumer — — 23 23 Consumer credit card — — 595 595 Total $ 14,668 $ 3,818 $ 618 $ 19,104 94 Table of Contents The following tables present the amortized cost basis at December 31, 2025 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months, as well as the amortized cost basis at December 31, 2024 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months. (In thousands) Current 30-89 Days Past Due 90 Days Past Due Total December 31, 2025 Commercial: Business $ 82,057 $ — $ — $ 82,057 Real estate – construction and land 18,258 — — 18,258 Real estate – business 51,176 — 14,508 65,684 Personal Banking: Real estate – personal 5,124 3,633 1,106 9,863 Consumer 120 18 36 174 Consumer credit card 2,230 514 211 2,955 Total $ 158,965 $ 4,165 $ 15,861 $ 178,991 (In thousands) Current 30-89 Days Past Due 90 Days Past Due Total December 31, 2024 Commercial: Business $ 47,958 $ 44 $ — $ 48,002 Real estate – business 106,516 — 14,667 121,183 Personal Banking: Real estate – personal 4,484 2,613 1,926 9,023 Consumer 856 17 5 878 Consumer credit card 2,519 430 228 3,177 Total $ 162,333 $ 3,104 $ 16,826 $ 182,263 Loans held for sale The Company designates certain long-term fixed rate personal real estate loans as held for sale, and the Company has elected the fair value option for these loans. The election of the fair value option aligns the accounting for these loans with the related economic hedges discussed in Note 19. The loans are primarily sold to FNMA and FHLMC. At December 31, 2025, the fair value of these loans was $ 4.0 million, and the unpaid principal balance was $ 4.0 million. At December 31, 2025, none of the loans held for sale were on non-accrual status or 90 days past due and still accruing. Foreclosed real estate/repossessed assets The Company’s holdings of foreclosed real estate totaled $ 1.2 million and $ 343 thousand at December 31, 2025 and 2024, respectively, and included in those amounts were $ 1.0 million and $ 343 thousand of foreclosed residential real estate properties held as a result of obtaining physical possession at December 31, 2025 and December 31, 2024, respectively. Personal property acquired in repossession, generally autos, marine and recreational vehicles (RV), totaled $ 2.3 million and $ 2.2 million at December 31, 2025 and 2024, respectively. Upon acquisition, these assets are recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. They are subsequently carried at the lower of this cost basis or fair value less estimated selling costs. 95 Table of Contents 3. Investment Securities Investment securities consisted of the following at December 31, 2025 and 2024: (In thousands) 2025 2024 Available for sale debt securities $ 9,095,513 $ 9,136,853 Trading debt securities 40,080 38,034 Equity securities: Readily determinable fair value 47,551 48,359 No readily determinable fair value 9,803 9,083 Other: Federal Reserve Bank stock 35,918 35,545 Federal Home Loan Bank stock 10,198 10,120 Private equity investments 184,343 184,386 Total investment securities (1) $ 9,423,406 $ 9,462,380 (1) Accrued interest receivable totaled $ 42.0 million and $ 35.0 million at December 31, 2025 and December 31, 2024, respectively, and was included within other assets on the consolidated balance sheet. Most of the Company’s investment securities are classified as available for sale debt securities, and this portfolio is discussed in more detail below. The Company’s equity securities are also discussed below. Other investment securities include Federal Reserve Bank (FRB) stock, Federal Home Loan Bank (FHLB) stock, and investments in portfolio concerns held by the Company’s private equity subsidiary. FRB stock and FHLB stock are held for liquidity management and regulatory purposes. Investment in FRB stock is based on the capital structure of the investing bank, and investment in FHLB stock is tied to the asset size of the borrowing bank and the level of borrowings from the FHLB. These holdings are carried at cost. The Company’s private equity investments are carried at estimated fair value. Equity Securities The Company’s equity securities portfolio includes mutual funds, common stock, and preferred stock with readily determinable fair values as well as equity securities with no readily determinable fair value. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for the identical or similar investment of the same issuer. At March 31, 2024, this portfolio included the Company’s 823,447 shares of Visa Inc. (“Visa”) Class B-1 common stock (formerly Class B common stock), which were held by Commerce Bancshares, Inc. The Company’s Visa Class B-1 shares had a carrying value of zero at March 31, 2024, as there had not been observable price changes in orderly transactions for identical or similar investments of the same issuer. On April 8, 2024, Visa announced the commencement of a public offering to permit the exchange of its Class B-1 common stock for a combination of shares of its Class B-2 common stock and its Class C common stock (“Exchange Offer”). The Company tendered all of its Visa Class B-1 shares pursuant to the Exchange Offer. On May 3, 2024, the Exchange Offer closed, and in exchange for its 823,447 shares of Visa Class B-1 common stock, the Company received 411,723 shares of Visa Class B-2 common stock (which will be convertible under certain circumstances, as further described below, into Visa’s publicly traded Class A common stock at an initial rate of 1.5875 shares of Class A common for each share of Class B-2 common stock, subject to adjustment) and 163,404 shares of Visa Class C common stock which automatically convert into four shares of Visa's Class A common stock (subject to future adjustments for any stock splits, recapitalizations or similar transactions) upon any transfer to a person other than a Visa member or an affiliate of a Visa member. As a condition of participating in the exchange, the Company entered into a Makewhole Agreement with Visa that provides for cash payments to Visa to the extent (if any) that future adjustments to the conversion ratio for the Visa Class B-2 common stock to Class A common stock cause such ratio to fall below zero. Changes to the conversion ratio occur when Visa deposits funds to a litigation escrow established by Visa to pay settlements for certain covered litigation that pre-dated Visa’s initial public offering, for which Visa has been effectively indemnified by Visa USA members through reductions to the conversion ratio for its Class B-1 common stock. The purpose of the Makewhole Agreement is to preserve the economic benefit of these adjustments to the Class B-1 conversion ratio for the benefit of Visa’s Class A and Class C common stockholders following the exchange. As further described in Visa’s related Issuer Tender Offer Statement on Schedule TO and Prospectus, each dated April 8, 2024, publicly filed with the U. S. Securities and Exchange Commission, both the Makewhole Agreement and the related escrow fund and transfer restrictions on Visa’s Class B-1 common stock and the new Class B-2 common stock will terminate whenever the covered litigation is ultimately resolved, at which future date outstanding shares of Visa Class B-2 common stock will be convertible into shares of its Class A common stock at the then-applicable conversion ratio. 96 Table of Contents As a result of the exchange, the Company elected the measurement alternative approach for its Visa Class C common stock and marked the stock to fair value, recording a gain based on the conversion privilege of the Visa Class C common stock and the closing price of Visa Class A common stock. During the second quarter of 2024, the Company sold 436 thousand shares of Visa Class A common stock at an average price of $ 274.91 , resulting in proceeds of $ 119.8 million. During the third quarter of 2024, the Company sold 218 thousand Visa Class A shares at an average price of $ 260.56 , resulting in proceeds of $ 56.8 million. During the second and third quarters of 2024, the Company sold all of the Visa Class C shares it received from the Visa Exchange Offer. The Company’s Visa Class B-2 common stock will continue to be carried at cost of $ 0 as the Company elected the measurement alternative approach for these shares as well, and there are not observable price changes in orderly transactions for identical or similar investments of the same issuer for the Visa Class B-2 shares held by the Company. Changes in equity investments with no readily determinable fair value for the year ended December 31, 2024 were as follows: For the Year Ended December 31 (In thousands) 2024 Balance at beginning of period $ 6,978 Observable upward price adjustments 178,227 Observable downward price adjustments ( 416 ) Impairment charges — Sales of securities and other activity ( 175,706 ) Balance at end of period $ 9,083 Net gains and losses for the Company's equity securities portfolio during the year ended December 31, 2024 were as follows: For the Year Ended December 31 (In thousands) 2024 Net gains (losses) recognized during the period on equity securities $ 178,092 Less: Net (gains) losses recognized during the period on equity securities sold during the period ( 176,755 ) Net unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ 1,337 Available for sale debt securities portfolio The majority of the Company’s investment portfolio is comprised of available for sale debt securities, which are carried at fair value with changes in fair value reported in accumulated other comprehensive income (AOCI). The investment portfolio includes agency mortgage-backed securities, which are guaranteed by agencies such as FHLMC, FNMA, and Government National Mortgage Association (GNMA), in addition to non-agency mortgage-backed securities, which have no guarantee but are collateralized by commercial and residential mortgages. Also included are certain other asset-backed securities, which are primarily collateralized by credit cards, automobiles, student loans, and commercial loans. These securities differ from traditional debt securities primarily in that they may have uncertain maturity dates and are priced based on estimated prepayment rates on the underlying collateral. A summary of the available for sale debt securities by maturity groupings as of December 31, 2025 is shown below. In the table below, the weighted average yield for the year ended December 31, 2025 is calculated based on amortized cost and has not been tax equated. 97 Table of Contents (Dollars in thousands) Amortized Cost Fair Value Weighted Average Yield U.S. government and federal agency obligations: Within 1 year $ 389,021 $ 389,986 3.85 *% After 1 but within 5 years 1,779,346 1,792,019 3.46 * After 5 but within 10 years 982,623 989,466 3.71 * After 10 years 106,571 107,629 4.50 * Total U.S. government and federal agency obligations 3,257,561 3,279,100 3.61 * Government-sponsored enterprise obligations: After 1 but within 5 years 4,306 4,112 2.94 After 5 but within 10 years 30,824 26,547 2.46 After 10 years 19,821 14,053 2.12 Total government-sponsored enterprise obligations 54,951 44,712 2.37 State and municipal obligations: Within 1 year 51,754 51,339 1.91 After 1 but within 5 years 415,328 397,576 1.79 After 5 but within 10 years 141,134 126,470 1.79 After 10 years 106,821 89,348 2.14 Total state and municipal obligations 715,037 664,733 1.85 Mortgage and asset-backed securities: Agency mortgage-backed securities 3,786,811 3,223,105 2.11 Non-agency mortgage-backed securities 467,200 435,688 2.22 Asset-backed securities 1,269,503 1,262,045 3.78 Total mortgage and asset-backed securities 5,523,514 4,920,838 2.50 Other debt securities: Within 1 year 22,425 22,278 1.67 After 1 but within 5 years 61,522 57,611 1.76 After 5 but within 10 years 83,331 82,357 4.08 After 10 years 23,937 23,884 3.48 Total other debt securities 191,215 186,130 2.98 % Total available for sale debt securities $ 9,742,278 $ 9,095,513 * Rate does not reflect inflation adjustment on inflation-protected securities Investments in U.S. government and federal agency obligations include U.S. Treasury inflation-protected securities, which totaled $ 419.4 million, at fair value, at December 31, 2025. Interest paid on these securities increases with inflation and decreases with deflation, as measured by the non-seasonally adjusted Consumer Price Index (CPI-U). At maturity, the principal paid is the greater of an inflation-adjusted principal or the original principal. Allowance for credit losses on available for sale debt securities Securities for which fair value is less than amortized cost are reviewed for impairment. Special emphasis is placed on securities whose credit rating has fallen below Baa3 (Moody's) or BBB- (Standard & Poor's), whose fair values have fallen more than 20 % below purchase price, or those which have been identified based on management’s judgment. These securities are placed on a watch list and cash flow analyses are prepared on an individual security basis. Certain securities are analyzed using a projected cash flow model, discounted to present value, and compared to the current amortized cost bases of the securities. The model uses input factors such as cash flow projections, contractual payments required, expected delinquency rates, credit support from other tranches, prepayment speeds, collateral loss severity rates (including loan to values), and various other information related to the underlying collateral. Securities not analyzed using the cash flow model are analyzed by reviewing credit ratings, credit support agreements, and industry knowledge to project future cash flows and any possible credit impairment. At December 31, 2025, the fair value of securities on this watch list was $ 896.7 million compared to $ 1.6 billion at 98 Table of Contents December 31, 2024. Almost all of the securities included on the Company's watch list were experiencing unrealized loss positions due to the significant increase in interest rates and were analyzed outside of the cash flow model. At December 31, 2025, the securities on the Company's watch list that were not deemed to be solely related to increasing interest rates were securities backed by government-guaranteed student loans and are expected to perform as contractually required. As of December 31, 2025, the Company did not identify any securities for which a credit loss exists, and for the years ended December 31, 2025 and 2024, the Company did not recognize a credit loss expense on any available for sale debt securities. The table below summarizes debt securities available for sale in an unrealized loss position, aggregated by length of loss period, for which an allowance for credit losses has not been recorded at December 31, 2025 and 2024. Unrealized losses on these available for sale securities have not been recognized into income because after review, the securities were deemed not to be impaired. The unrealized losses on these securities are primarily attributable to changes in interest rates and current market conditions. At December 31, 2025, the Company does not intend to sell the securities, nor is it anticipated that it would be required to sell any of these securities at a loss. Less than 12 months 12 months or longer Total (In thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2025 U.S. government and federal agency obligations $ 612,167 $ 2,620 $ 314,006 $ 8,244 $ 926,173 $ 10,864 Government-sponsored enterprise obligations — — 44,712 10,239 44,712 10,239 State and municipal obligations 12,157 18 636,492 50,323 648,649 50,341 Mortgage and asset-backed securities: Agency mortgage-backed securities 2,437 30 3,148,627 565,056 3,151,064 565,086 Non-agency mortgage-backed securities — — 421,508 31,942 421,508 31,942 Asset-backed securities 32,875 36 546,984 16,925 579,859 16,961 Total mortgage and asset-backed securities 35,312 66 4,117,119 613,923 4,152,431 613,989 Other debt securities — — 110,038 6,661 110,038 6,661 Total $ 659,636 $ 2,704 $ 5,222,367 $ 689,390 $ 5,882,003 $ 692,094 December 31, 2024 U.S. government and federal agency obligations $ 1,492,875 $ 24,662 $ 353,129 $ 17,197 $ 1,846,004 $ 41,859 Government-sponsored enterprise obligations — — 42,848 12,576 42,848 12,576 State and municipal obligations 14,860 230 724,587 79,685 739,447 79,915 Mortgage and asset-backed securities: Agency mortgage-backed securities 3,882 42 3,409,405 750,664 3,413,287 750,706 Non-agency mortgage-backed securities 10 — 564,637 56,986 564,647 56,986 Asset-backed securities 219,414 2,371 1,083,938 36,824 1,303,352 39,195 Total mortgage and asset-backed securities 223,306 2,413 5,057,980 844,474 5,281,286 846,887 Other debt securities 26,390 579 198,936 12,718 225,326 13,297 Total $ 1,757,431 $ 27,884 $ 6,377,480 $ 966,650 $ 8,134,911 $ 994,534 The entire available for sale debt securities portfolio included $ 5.9 billion of securities that were in a loss position at December 31, 2025, compared to $ 8.1 billion at December 31, 2024. The total amount of unrealized loss on these securities was $ 692.1 million at December 31, 2025, a decrease of $ 302.4 million compared to the unrealized loss at December 31, 2024. Securities with significant unrealized losses are discussed in the " Allowance for credit losses on available for sale debt securities " section above. 99 Table of Contents For debt securities classified as available for sale, the following table shows the amortized cost, fair value, and allowance for credit losses of securities available for sale at December 31, 2025 and 2024 and the corresponding amounts of gross unrealized gains and losses (pre-tax) in AOCI, by security type. (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value December 31, 2025 U.S. government and federal agency obligations $ 3,257,561 $ 32,403 $ ( 10,864 ) $ — $ 3,279,100 Government-sponsored enterprise obligations 54,951 — ( 10,239 ) — 44,712 State and municipal obligations 715,037 37 ( 50,341 ) — 664,733 Mortgage and asset-backed securities: Agency mortgage-backed securities 3,786,811 1,380 ( 565,086 ) — 3,223,105 Non-agency mortgage-backed securities 467,200 430 ( 31,942 ) — 435,688 Asset-backed securities 1,269,503 9,503 ( 16,961 ) — 1,262,045 Total mortgage and asset-backed securities 5,523,514 11,313 ( 613,989 ) — 4,920,838 Other debt securities 191,215 1,576 ( 6,661 ) — 186,130 Total $ 9,742,278 $ 45,329 $ ( 692,094 ) $ — $ 9,095,513 December 31, 2024 U.S. government and federal agency obligations $ 2,594,130 $ 2,981 $ ( 41,859 ) $ — $ 2,555,252 Government-sponsored enterprise obligations 55,425 — ( 12,576 ) — 42,849 State and municipal obligations 822,790 16 ( 79,915 ) — 742,891 Mortgage and asset-backed securities: Agency mortgage-backed securities 4,195,182 415 ( 750,706 ) — 3,444,891 Non-agency mortgage-backed securities 625,539 136 ( 56,986 ) — 568,689 Asset-backed securities 1,595,797 413 ( 39,195 ) — 1,557,015 Total mortgage and asset-backed securities 6,416,518 964 ( 846,887 ) — 5,570,595 Other debt securities 238,563 — ( 13,297 ) — 225,266 Total $ 10,127,426 $ 3,961 $ ( 994,534 ) $ — $ 9,136,853 The following table presents proceeds from sales of securities and the components of investment securities gains and losses which have been recognized in earnings. For the Year Ended December 31 (In thousands) 2025 2024 2023 Proceeds from sales of securities: Available for sale debt securities $ 70,145 $ 1,080,083 $ 1,101,782 Equity securities — 176,780 — Other 15,811 38,724 40,167 Total proceeds $ 85,956 $ 1,295,587 $ 1,141,949 Investment securities gains (losses), net: Available for sale debt securities: Gains realized on sales $ 4 $ — $ 143 Losses realized on sales ( 8,414 ) ( 196,283 ) ( 8,587 ) Equity securities: Gains (losses) on equity securities, net 1,376 178,092 ( 487 ) Other: Gains realized on sales 1,312 3,481 976 Losses realized on sales ( 2,354 ) ( 1,601 ) ( 1,076 ) Fair value adjustments, net 11,736 24,134 24,016 Total investment securities gains (losses), net $ 3,660 $ 7,823 $ 14,985 100 Table of Contents During 2024, the Company executed a plan to reposition a portion of its available for sale debt securities portfolio through the sale of securities with an amortized cost of $ 1.2 billion. The securities that the Company sold had a yield of approximately 2.1 %, which resulted in a loss of $ 179.1 million, and the Company reinvested $ 928.8 million of the proceeds into U.S. Treasury securities yielding approximately 4.6 %. Pledged securities At December 31, 2025, securities totaling $ 7.3 billion in fair value were pledged to secure public fund deposits, securities sold under agreements to repurchase, trust funds, and borrowings at the FRB and FHLB, compared to $ 6.9 billion at December 31, 2024. At December 31, 2025, the Company had no securities pledged under agreements pursuant to which the collateral may be sold or re-pledged by the secured parties. Except for obligations of various government-sponsored enterprises such as FNMA, FHLB and FHLMC, no investment in a single issuer exceeds 10 % of shareholders' equity. 4. Premises and Equipment Premises and equipment consist of the following at December 31, 2025 and 2024: (In thousands) 2025 2024 Land $ 86,278 $ 86,378 Buildings and improvements 778,615 750,464 Equipment 251,769 240,046 Right of use leased assets 31,526 31,332 Total 1,148,188 1,108,220 Less accumulated depreciation 662,488 632,945 Net premises and equipment $ 485,700 $ 475,275 Depreciation expense of $ 42.1 million in 2025, $ 40.0 million in 2024, and $ 36.1 million in 2023, was included in occupancy expense and equipment expense in the consolidated statements of income. Repairs and maintenance expense of $ 18.9 million, $ 18.3 million, and $ 18.5 million for 2025, 2024 and 2023, respectively, was included in occupancy expense and equipment expense. There was no interest expense capitalized on construction projects in 2025. Interest expense capitalized on construction projects totaled $ 2 thousand and $ 903 thousand in 2024 and 2023, respectively. The decrease in 2024 was primarily driven by the completion of a large office building construction project in March 2023. Right of use leased assets are comprised mainly of operating leases for branches, office space, ATM locations, and certain equipment, as described in Note 6. 5. Goodwill and Other Intangible Assets The following table presents information about the Company's intangible assets which have estimable useful lives. December 31, 2025 December 31, 2024 ( In thousands) Gross Carrying Amount Accumulated Amortization Valuation Allowance Net Amount Gross Carrying Amount Accumulated Amortization Valuation Allowance Net Amount Amortizable intangible assets: Core deposit premium $ 5,550 $ ( 5,427 ) $ — $ 123 $ 5,550 $ ( 5,286 ) $ — $ 264 Mortgage servicing rights 13,805 ( 4,217 ) — 9,588 13,673 ( 3,905 ) — 9,768 Total $ 19,355 $ ( 9,644 ) $ — $ 9,711 $ 19,223 $ ( 9,191 ) $ — $ 10,032 The carrying amount of goodwill and its allocation among segments at December 31, 2025 and 2024 is shown in the table below. As a result of ongoing assessments, no impairment of goodwill was recorded in 2025, 2024 or 2023. Further, the annual assessment of qualitative factors on January 1, 2026 revealed no likelihood of impairment as of that date. 101 Table of Contents (In thousands) December 31, 2025 December 31, 2024 Retail Banking segment $ 70,721 $ 70,721 Commercial segment 75,072 75,072 Wealth segment 746 746 Total goodwill $ 146,539 $ 146,539 In addition to its intangible assets with estimable useful lives included in the table above, the Company also has a $ 3.6 million intangible asset for an easement in connection with a commercial office complex in Clayton, Missouri. The easement, which grants the Company access to all portions of the parking facility and terrace garden, is perpetual and will be assessed for impairment at least annually, or whenever events or circumstances indicate an impairment may have occurred. No impairment was identified at December 31, 2025. Changes in the net carrying amount of goodwill and other net intangible assets for the years ended December 31, 2025 and 2024 are shown in the following table. (In thousands) Goodwill Easement Core Deposit Premium Mortgage Servicing Rights Balance at December 31, 2023 $ 146,539 $ 3,600 $ 458 $ 10,121 Originations, net of disposals — — — 762 Amortization — — ( 194 ) ( 1,115 ) Balance at December 31, 2024 146,539 3,600 264 9,768 Originations, net of disposals — — — 953 Amortization — — ( 141 ) ( 1,133 ) Balance at December 31, 2025 $ 146,539 $ 3,600 $ 123 $ 9,588 Mortgage servicing rights (MSRs) are initially recorded at fair value and subsequently amortized over the period of estimated servicing income. They are periodically reviewed for impairment at a tranche level, and if impairment is indicated, recorded at fair value. Temporary impairment, including impairment recovery, is effected through a change in a valuation allowance. During 2025, no impairment or impairment recovery was recognized. The fair value of the MSRs is based on the present value of expected future cash flows, as further discussed in Note 17 on Fair Value Measurements. Aggregate amortization expense on intangible assets for the years ended December 31, 2025, 2024 and 2023 was $ 1.3 million, $ 1.3 million and $ 1.4 million, respectively. The following table shows the estimated future amortization expense based on existing asset balances and the interest rate environment as of December 31, 2025. The Company’s actual amortization expense in any given period may be different from the estimated amounts depending upon the acquisition of intangible assets, changes in mortgage interest rates, prepayment rates and other market conditions. (In thousands) 2026 $ 1,224 2027 1,050 2028 906 2029 809 2030 721 6. Leases The Company's leasing activities include leasing certain real estate and equipment, providing lease financing to commercial customers, and leasing office space to third parties. The Company uses the FHLB fixed-advance rate at lease commencement or at any subsequent remeasurement event date based on the remaining lease term to calculate the liability for each lease. Lessee The Company's operating leases are primarily for branches, office space, ATM locations, and certain equipment. As of December 31, 2025, the right-of-use asset for operating leases, reported within premises and equipment, net , and lease liability, 102 Table of Contents reported within other liabilities, recognized on the Company's consolidated balance sheets totaled $ 30.6 million and $ 31.5 million, respectively, compared to right-of-use assets of $ 30.7 million and lease liability of $ 31.2 million at December 31, 2024. Total lease cost for the year ended December 31, 2025 was $ 8.6 million, compared to $ 8.5 million for the year ended December 31, 2024. For leases with a term of 12 months or less, an election was made not to recognize lease assets and lease liabilities for all asset classes, and to recognize lease expense for these leases on a straight-line basis over the lease term. The Company's leases have remaining terms of 2 months to 26 years, most of which contain renewal options. However, the renewal options are generally not included in the leased asset or liability because the option exercises are uncertain. The maturities of operating leases at December 31, 2025 are included in the table below. (in thousands) Operating Leases (1) 2026 $ 6,730 2027 6,468 2028 5,952 2029 4,385 2030 3,268 After 2030 12,091 Total lease payments $ 38,894 Less: Interest 7,437 Present value of lease liabilities $ 31,457 (1) Excludes $ 2.8 million of legally binding minimum lease payments for operating leases signed but not yet commenced. The following table presents the average lease term and discount rate of operating leases. December 31, 2025 December 31, 2024 Weighted-average remaining lease term 8.7 years 9.2 years Weighted-average discount rate 4.38 % 4.32 % Supplemental cash flow information related to operating leases is included in the table below. For the Year Ended December 31 (in thousands) 2025 2024 Operating cash paid toward lease liabilities $ 6,575 6,553 Leased assets obtained in exchange for new lease liabilities $ 7,695 9,128 Lessor The Company has net investments in direct financing and sales-type leases to commercial, industrial, and tax-exempt entities. These leases are included within business loans on the Company's consolidated balance sheets. The Company primarily leases various types of equipment, trucks and trailers, and office furniture and fixtures. Lease agreements may include options for the lessee to renew or purchase the leased equipment at the end of the lease term. The Company has elected to adopt the lease component expedient in which the lease and nonlease components are combined into the total lease receivable. The Company also leases office space to third parties, and these leases are classified as operating leases. The leases may include options to renew or to expand the leased space, and currently the leases have remaining terms of 1 month to 13 years. The following table provides the components of lease income. For the Year Ended December 31 (in thousands) 2025 2024 Direct financing and sales-type leases 39,771 37,168 Operating leases (1) 18,464 16,816 Total lease income $ 58,235 $ 53,984 (1) Includes rent from Tower Properties, a related party, of $ 0 and $ 78 thousand for the years ended December 31, 2025 and 2024, respectively. Tower Properties Company was no longer a lessee of the Company as of January 1, 2025. 103 Table of Contents The following table presents the components of the net investments in direct financing and sales-type leases. (in thousands) December 31, 2025 December 31, 2024 Lease payment receivable $ 780,925 $ 792,863 Unguaranteed residual assets 81,818 84,063 Total net investments in direct financing and sales-type leases $ 862,743 $ 876,926 Deferred origination cost 2,145 2,715 Total net investment included within business loans $ 864,888 $ 879,641 The maturities of lease receivables at December 31, 2025 are included in the table below. (in thousands) Direct Financing and Sale-Type Leases Operating Leases Total 2026 $ 247,926 $ 16,344 $ 264,270 2027 214,284 15,089 229,373 2028 174,483 14,698 189,181 2029 105,257 11,033 116,290 2030 69,465 10,696 80,161 After 2030 55,100 60,255 115,355 Total lease receipts 866,515 $ 128,115 $ 994,630 Less: Net present value adjustment 85,590 Present value of lease receipts $ 780,925 7. Deposits At December 31, 2025, the scheduled maturities of certificates of deposit were as follows: (In thousands) Due in 2026 $ 2,272,894 Due in 2027 98,074 Due in 2028 9,298 Due in 2029 3,082 Due in 2030 3,103 Thereafter 8 Total $ 2,386,459 The aggregate amount of certificates of deposit that exceeded the $250,000 FDIC insurance limit totaled $ 632.6 million at December 31, 2025. 104 Table of Contents 8. Borrowings At December 31, 2025, the Company's borrowings primarily consisted of federal funds purchased and securities sold under agreements to repurchase (repurchase agreements). The following table sets forth selected information for federal funds purchased and repurchase agreements. (Dollars in thousands) Year End Weighted Rate Average Weighted Rate Average Balance Outstanding Maximum Outstanding at any Month End Balance at December 31 Federal funds purchased and repurchase agreements: 2025 1.88 % 2.86 % $ 2,639,979 $ 2,989,641 $ 2,989,641 2024 2.14 3.55 2,621,260 2,926,758 2,926,758 2023 2.78 3.47 2,839,633 3,133,020 2,908,815 Federal funds purchased and repurchase agreements comprised the majority of the Company's short-term borrowings (borrowings with an original maturity of less than one year at December 31, 2025), and $ 2.9 billion of these borrowings were repurchase agreements, which generally have one day maturities and are mainly comprised of non-insured customer funds secured by a portion of the Company's investment securities portfolio. Additional information about the securities pledged for repurchase agreements and repurchase agreement maturity is provided in Note 20 on Resale and Repurchase Agreements. Accrued interest for repurchase agreements was $ 965 thousand, $ 928 thousand and $ 695 thousand at December 31, 2025, 2024 and 2023, respectively. The Bank is a member of the Des Moines FHLB and has access to term financing from the FHLB. These borrowings are secured under a blanket collateral agreement that includes primarily residential mortgages, as well as all unencumbered assets and stock of the borrowing bank. At December 31, 2025, the Bank had no outstanding advances from the FHLB. The FHLB also issues letters of credit to secure the Bank's obligations to certain depositors of public funds, which totaled $ 198.4 million at December 31, 2025. 9. Income Taxes The components of income tax expense from operations for the years ended December 31, 2025, 2024 and 2023 were as follows: (In thousands) Current Deferred Total Year ended December 31, 2025: U.S. federal $ 131,851 $ 10,482 $ 142,333 State and local 17,730 1,073 18,803 Total $ 149,581 $ 11,555 $ 161,136 Year ended December 31, 2024: U.S. federal $ 132,197 $ ( 845 ) $ 131,352 State and local 13,483 254 13,737 Total $ 145,680 $ ( 591 ) $ 145,089 Year ended December 31, 2023: U.S. federal $ 124,787 $ ( 6,228 ) $ 118,559 State and local 17,161 ( 1,171 ) 15,990 Total $ 141,948 $ ( 7,399 ) $ 134,549 The components of income tax (benefit) expense recorded directly to shareholders' equity for the years ended 2025, 2024 and 2023 were as follows: (In thousands) 2025 2024 2023 Unrealized gain (loss) on available for sale debt securities $ 85,952 $ 57,359 $ 69,972 Change in fair value on cash flow hedges ( 3,023 ) ( 13,704 ) ( 6,017 ) Accumulated pension (benefit) loss 811 512 1,197 Income tax (benefit) expense allocated to shareholders' equity $ 83,740 $ 44,167 $ 65,152 105 Table of Contents Significant components of the Company’s deferred tax assets and liabilities at December 31, 2025 and 2024 were as follows: (In thousands) 2025 2024 Deferred tax assets: Unrealized loss on available for sale debt securities $ 161,691 $ 247,643 Loans, principally due to allowance for credit losses 47,422 43,450 Unearned fee income 10,430 10,858 Equity-based compensation 8,749 8,364 Deferred compensation 8,433 8,477 Cash flow hedges 8,301 5,630 Accrued expenses 7,785 10,124 Other 367 497 Total deferred tax assets 253,178 335,043 Deferred tax liabilities: Equipment lease financing 97,819 97,042 Land, buildings, and equipment 28,890 23,359 Accretion on investment securities 9,092 4,203 Intangible assets 7,702 7,596 Private equity investments 6,676 5,446 Other 5,643 4,746 Total deferred tax liabilities 155,822 142,392 Net deferred tax assets (liabilities) $ 97,356 $ 192,651 Management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the total deferred tax assets, therefore, no valuation allowance is needed for the deferred tax assets at year end. A reconciliation between the expected federal income tax expense using the federal statutory tax rate of 21 %, and the Company's actual income tax expense for 2025, 2024, and 2023 is provided below. The effective tax rate is calculated by dividing income taxes by income before income taxes less the non-controlling interest expense. (Dollars in thousands) 2025 2024 2023 Amount Effective Tax Rate (%) Amount Effective Tax Rate (%) Amount Effective Tax Rate (%) U.S. federal statutory income tax rate $ 152,751 21.00 % $ 140,998 21.00 % $ 128,438 21.00 % Federal Tax Credits, net ( 1,893 ) ( 0.26 ) ( 1,431 ) ( 0.21 ) ( 1,478 ) ( 0.24 ) Nontaxable or nondeductible items Tax-exempt interest, net of cost to carry ( 6,983 ) ( 0.96 ) ( 6,892 ) ( 1.03 ) ( 7,002 ) ( 1.15 ) Other 5,105 0.70 4,043 0.60 4,292 0.70 Other ( 2,732 ) ( 0.37 ) ( 2,444 ) ( 0.36 ) ( 2,349 ) ( 0.38 ) State and local income taxes, net of federal effect 14,855 2.04 10,852 1.62 12,633 2.07 Changes in unrecognized tax benefits 33 — ( 37 ) ( 0.01 ) 15 — Total income tax expense $ 161,136 22.15 % $ 145,089 21.61 % $ 134,549 22.00 % 106 Table of Contents In 2025, 2024, and 2023, state and local income taxes in Missouri, Illinois, and Kansas comprised the majority of the state and local income taxes, net of federal effect category listed in the table above. The gross amount of unrecognized tax benefits was $ 1.2 million at both December 31, 2025 and 2024, and the total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, was $ 1.0 million at both December 31, 2025 and 2024. The activity in the accrued liability for unrecognized tax benefits for the years ended December 31, 2025 and 2024 was as follows: (In thousands) 2025 2024 Unrecognized tax benefits at beginning of year $ 1,224 $ 1,270 Gross increases – tax positions in prior period 46 8 Gross decreases – tax positions in prior period ( 5 ) ( 2 ) Gross increases – current-period tax positions 187 295 Lapse of statute of limitations ( 232 ) ( 347 ) Unrecognized tax benefits at end of year $ 1,220 $ 1,224 The Company and its subsidiaries are subject to income tax by federal, state and local government taxing authorities. Tax years 2022 through 2025 remain open to examination for U.S. federal income tax and for major state taxing jurisdictions. Income taxes paid for 2025, 2024, and 2023 was as follows: (In thousands) 2025 2024 2023 U.S. federal $ 145,522 $ 116,528 $ 113,536 State and local 17,390 9,601 17,421 Total income taxes paid $ 162,912 $ 126,129 $ 130,957 10. Employee Benefit Plans Employee benefits charged to operating expenses are summarized in the table below. Substantially all of the Company’s employees are covered by a defined contribution (401(k)) plan, under which the Company makes matching contributions. (In thousands) 2025 2024 2023 Payroll taxes $ 33,471 $ 32,723 $ 31,507 Medical plans 38,705 36,860 36,277 401(k) plan 20,969 20,227 19,216 Pension plans 542 399 499 Other 3,440 3,391 3,587 Total employee benefits $ 97,127 $ 93,600 $ 91,086 A portion of the Company’s employees are covered by a noncontributory defined benefit pension plan, however, participation in the pension plan is not available to employees hired after June 30, 2003. All participants are fully vested in their benefit payable upon normal retirement date, which is based on years of participation and compensation. Since January 2011, all benefits accrued under the pension plan have been frozen. However, the accounts continue to accrue interest at a stated annual rate. Certain key executives also participate in a supplemental executive retirement plan (the CERP) that the Company funds only as retirement benefits are disbursed. The CERP carries no segregated assets. The CERP continues to provide credits based on hypothetical contributions in excess of those permitted under the 401(k) plan. In the tables presented below, the pension plan and the CERP are presented on a combined basis. Under the Company’s funding policy for the defined benefit pension plan, contributions are made to a trust as necessary to satisfy the statutory minimum required contribution as defined by the Pension Protection Act, which is intended to provide for current service accruals and for any unfunded accrued actuarial liabilities over a reasonable period. To the extent that these requirements are fully covered by assets in the trust, a contribution might not be made in a particular year. No contributions to the defined benefit plan were made in 2025, 2024 or 2023. The minimum required contribution for 2026 is expected to be zero . The Company does not expect to make any further contributions in 2026 other than the necessary funding contributions to the CERP. Distributions under the CERP were $ 191 thousand, $ 185 thousand and $ 806 thousand during 2025, 2024 and 2023, respectively. 107 Table of Contents The following items are components of the net pension cost for the years ended December 31, 2025, 2024 and 2023. (In thousands) 2025 2024 2023 Service cost $ 542 $ 399 $ 499 Interest cost on projected benefit obligation 4,321 4,377 4,615 Expected return on plan assets ( 3,939 ) ( 4,139 ) ( 4,051 ) Amortization of prior service cost — ( 181 ) ( 271 ) Amortization of unrecognized net (gain) loss 571 892 1,464 Net periodic pension cost $ 1,495 $ 1,348 $ 2,256 The following table sets forth the pension plans’ funded status, using valuation dates of December 31, 2025 and 2024. (In thousands ) 2025 2024 Change in projected benefit obligation Projected benefit obligation at prior valuation date $ 89,813 $ 93,949 Service cost 542 399 Interest cost 4,321 4,377 Benefits paid ( 7,154 ) ( 6,939 ) Actuarial (gain) loss ( 152 ) ( 1,973 ) Projected benefit obligation at valuation date 87,370 89,813 Change in plan assets Fair value of plan assets at prior valuation date 86,593 89,842 Actual return on plan assets 6,463 3,505 Employer contributions 191 185 Benefits paid ( 7,154 ) ( 6,939 ) Fair value of plan assets at valuation date 86,093 86,593 Funded status and net amount recognized at valuation date $ ( 1,277 ) $ ( 3,220 ) The unfunded pension benefit obligation decreased $ 1.9 million from the prior year primarily due to greater than expected returns on plan assets. The accumulated benefit obligation, which represents the liability of a plan using only benefits as of the measurement date, was $ 87.4 million and $ 89.8 million for the combined plans on December 31, 2025 and 2024, respectively. 108 Table of Contents Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) at December 31, 2025 and 2024 are shown below, including amounts recognized in other comprehensive income during the periods. All amounts are shown on a pre-tax basis. (In thousands) 2025 2024 Accumulated gain (loss) $ ( 12,826 ) $ ( 16,073 ) Accumulated other comprehensive income (loss) ( 12,826 ) ( 16,073 ) Cumulative employer contributions in excess of net periodic benefit cost 11,549 12,853 Net amount recognized as an accrued benefit liability on the December 31 balance sheet $ ( 1,277 ) $ ( 3,220 ) Net gain (loss) arising during period 2,676 1,338 Amortization of net (gain) loss 571 892 Amortization of prior service cost — ( 181 ) Total recognized in other comprehensive income (loss) $ 3,247 $ 2,049 Total income (expense) recognized in net periodic pension cost and other comprehensive income $ 1,752 $ 702 The following assumptions, on a weighted average basis, were used in accounting for the plans. 2025 2024 2023 Determination of benefit obligation at year end: Effective discount rate on benefit obligations 5.15 % 5.27 % 4.98 % Assumed cash balance interest crediting rate 5.00 % 5.00 % 5.00 % Determination of net periodic benefit cost for year ended: Effective discount rate on benefit obligations 5.46 % 4.93 % 5.19 % Effective rate for interest cost on benefit obligations 5.15 % 4.84 % 5.09 % Long-term rate of return on assets 4.75 % 4.75 % 4.75 % Assumed cash balance interest crediting rate 5.00 % 5.00 % 5.00 % 109 Table of Contents The following table shows the fair values of the Company’s pension plan assets by asset category at December 31, 2025 and 2024. Information about the valuation techniques and inputs used to measure fair value are provided in Note 17 on Fair Value Measurements. Fair Value Measurements (In thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2025 Assets: U.S. government obligations $ 22,420 $ 22,420 $ — $ — Government-sponsored enterprise obligations (a) 1,018 — 1,018 — State and municipal obligations 2,550 — 2,550 — Agency mortgage-backed securities (b) 1,837 — 1,837 — Non-agency mortgage-backed securities 2,041 — 2,041 — Asset-backed securities 4,050 — 4,050 — Corporate bonds (c) 44,330 — 44,330 — Mutual funds (e) 7,847 7,847 — — Total $ 86,093 $ 30,267 $ 55,826 $ — December 31, 2024 Assets: U.S. government obligations $ 12,072 $ 12,072 $ — $ — Government-sponsored enterprise obligations (a) 991 — 991 — State and municipal obligations 3,513 — 3,513 — Agency mortgage-backed securities (b) 2,026 — 2,026 — Non-agency mortgage-backed securities 2,202 — 2,202 — Asset-backed securities 5,171 — 5,171 — Corporate bonds (c) 45,526 — 45,526 — Equity securities and mutual funds: (d) Mutual funds 6,462 6,462 — — Common stocks 7,075 7,075 — — International developed markets funds 1,353 1,353 — — Emerging markets funds 202 202 — — Total $ 86,593 $ 27,164 $ 59,429 $ — (a) This category represents bonds (excluding mortgage-backed securities) issued by agencies such as the Government National Mortgage Association, the Federal Home Loan Mortgage Corp and the Federal National Mortgage Association. (b) This category represents mortgage-backed securities issued by the agencies mentioned in (a). (c) This category represents investment grade bonds issued in the U.S., primarily by domestic issuers, representing diverse industries. (d) This category represents investments in individual common stocks and equity funds. These holdings are diversified, largely across the electronic technology, technology services, financial services, healthcare technology, and retail trade industries. (e) As of 12/31/2025, this category consists solely of U.S. government money market mutual funds. The investment policy of the pension plan is designed for conservation of principal, within limits designed to safeguard against significant losses within the portfolio. The policy sets guidelines, which may change from time to time, regarding the types and percentages of investments held. Currently, the policy includes guidelines such as holding bonds rated investment grade or better and prohibiting investment in Company stock. The plan does not utilize derivatives. Management believes there are no significant concentrations of risk within the plan asset portfolio at December 31, 2025. Under the current policy, the plan's long-term target allocation is 100 % invested in fixed income securities. The Company regularly reviews its policies on investment mix and may make changes depending on economic conditions and perceived investment risk. The assumed overall expected long-term rate of return on pension plan assets used in calculating 2025 pension plan expense was 4.75 %. Determination of the plan’s expected rate of return is based upon historical and anticipated returns of the asset classes invested in by the pension plan and the allocation strategy currently in place among those classes. The rate used in plan calculations may be adjusted by management for current trends in the economic environment. The 10-year annualized return for 110 Table of Contents the Company’s pension plan was 5.0 %. During 2025, the plan’s assets gained 8.0 % of their value, compared to a gain of 2.9 % in 2024. Returns for any plan year may be affected by changes in the stock market and interest rates. The Company expects to incur pension expense of $ 1.1 million in 2026, compared to $ 1.5 million in 2025. The following future benefit payments are expected to be paid: (In thousands) 2026 $ 7,789 2027 7,578 2028 7,473 2029 7,348 2030 7,096 2031 - 2035 31,412 11. Stock-Based Compensation and Directors Stock Purchase Plan* The Company’s stock-based compensation is provided under a shareholder-approved plan that allows for issuance of various types of awards, including stock options, stock appreciation rights, restricted stock and restricted stock units, performance awards and stock-based awards. During the past three years, stock-based compensation has been issued in the form of nonvested restricted stock awards and stock appreciation rights. At December 31, 2025, 6,079,955 shares remained available for issuance under the plan. The stock-based compensation expense that was charged against income was $ 17.3 million, $ 17.0 million and $ 17.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $ 3.2 million for each of the years ended December 31, 2025, 2024 and 2023, respectively. Nonvested Restricted Stock Awards Nonvested stock is awarded to key employees by action of the Company's Compensation and Human Resources Committee and Board of Directors. These awards generally vest after 4 to 7 years of continued employment, but vesting terms may vary according to the specifics of the individual grant agreement. There are restrictions as to transferability, sale, pledging, or assigning, among others, prior to the end of the vesting period. Dividend and voting rights are conferred upon grant of restricted stock awards. A summary of the status of the Company’s nonvested share awards as of December 31, 2025 and changes during the year then ended is presented below. Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2025 1,315,029 $ 52.77 Granted 315,896 61.91 Vested ( 280,218 ) 52.00 Forfeited ( 44,729 ) 54.11 Nonvested at December 31, 2025 1,305,978 $ 55.11 The total fair value (at vest date) of shares vested during 2025, 2024 and 2023 was $ 17.1 million, $ 13.9 million and $ 20.9 million, respectively. 111 Table of Contents Stock Appreciation Rights Stock appreciation rights (SARs) are granted with exercise prices equal to the market price of the Company’s stock at the date of grant. SARs generally vest ratably over 4 years of continuous service and have 10 -year contractual terms. All SARs must be settled in stock under provisions of the plan. A summary of SAR activity during 2025 is presented below. ( Dollars in thousands, except per share data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2025 883,499 $ 46.57 Granted 40,629 61.84 Forfeited ( 3,118 ) 53.00 Expired ( 2,034 ) 52.96 Exercised ( 68,020 ) 37.46 Outstanding at December 31, 2025 850,956 $ 47.99 4.8 years $ 5,461 Exercisable at December 31, 2025 638,348 $ 46.11 3.7 years $ 4,973 In determining compensation cost, the Black-Scholes option-pricing model is used to estimate the fair value of SARs on date of grant. The Black-Scholes model is a closed-end model that uses various assumptions as shown in the following table. Expected volatility is based on historical volatility of the Company’s stock. The Company uses historical exercise behavior and other factors to estimate the expected term of the SARs, which represents the period of time that the SARs granted are expected to be outstanding. The risk-free rate for the expected term is based on the U.S. Treasury zero coupon spot rates in effect at the time of grant. The per share average fair value and the model assumptions for SARs granted during the past three years are shown in the table below. 2025 2024 2023 Weighted per share average fair value at grant date $ 18.78 $ 13.50 $ 16.10 Assumptions: Dividend yield 1.7 % 2.1 % 1.6 % Volatility 29.6 % 29.3 % 27.9 % Risk-free interest rate 4.1 % 4.2 % 3.9 % Expected term 6.0 years 6.0 years 5.8 years Additional information about SARs exercised is presented below. (In thousands) 2025 2024 2023 Intrinsic value of SARs exercised $ 1,647 $ 8,409 $ 1,723 Tax benefit realized SARs exercised 244 1,276 362 As of December 31, 2025, there was $ 34.3 million of unrecognized compensation cost related to nonvested SARs and stock awards. This cost is expected to be recognized over a weighted average period of approximately 3.0 years. Directors Stock Purchase Plan The Company has a directors stock purchase plan whereby outside directors of the Company and its subsidiaries may elect to use their directors’ fees to purchase Company stock at market value each month end. Remaining shares available for issuance under this plan were 50,810 at December 31, 2025. Shares authorized for issuance under the plan were increased to 150,000 shares in February 2022. In 2025, 32,330 shares were purchased at an average price of $ 57.53 , and in 2024, 30,755 shares were purchased at an average price of $ 55.59 . * All share and per share amounts in this note have been restated for the 5 % common stock dividend distributed in 2025. 112 Table of Contents 12. Accumulated Other Comprehensive Income The table below shows the activity and accumulated balances for components of other comprehensive income. The largest component is the unrealized holding gains and losses on available for sale debt securities. Another component is the amortization from other comprehensive income of losses associated with pension benefits, which occurs as the losses are included in current net periodic pension cost. The remaining component is gains and losses in fair value on certain interest rate floors that have been designated as cash flow hedges, including interest rate floors terminated in prior years. For those terminated floors, the realized gains are amortized into interest income through the original maturity dates of the floors. Information about unrealized gains and losses on securities can be found in Note 3, information about unrealized gains and losses on pension plans can be found in Note 10, and information about unrealized gains and losses on cash flow hedge derivatives is located in Note 19. (In thousands) Unrealized Gains (Losses) on Securities (1) Pension Loss Unrealized Gains (Losses) on Cash Flow Hedge Derivatives (2) Total Accumulated Other Comprehensive Income (Loss) Balance January 1, 2025 $ ( 742,926 ) $ ( 12,059 ) $ ( 3,926 ) $ ( 758,911 ) Other comprehensive income (loss) before reclassifications to current earnings 335,397 2,676 ( 3,020 ) 335,053 Amounts reclassified to current earnings from accumulated other comprehensive income 8,410 571 ( 9,073 ) ( 92 ) Current period other comprehensive income (loss), before tax 343,807 3,247 ( 12,093 ) 334,961 Income tax (expense) benefit ( 85,952 ) ( 811 ) 3,023 ( 83,740 ) Current period other comprehensive income (loss), net of tax 257,855 2,436 ( 9,070 ) 251,221 Balance December 31, 2025 $ ( 485,071 ) $ ( 9,623 ) $ ( 12,996 ) $ ( 507,690 ) Balance January 1, 2024 $ ( 915,001 ) $ ( 13,596 ) $ 37,185 $ ( 891,412 ) Other comprehensive income (loss) before reclassifications to current earnings 33,151 1,338 ( 43,416 ) ( 8,927 ) Amounts reclassified to current earnings from accumulated other comprehensive income 196,283 711 ( 11,399 ) 185,595 Current period other comprehensive income (loss), before tax 229,434 2,049 ( 54,815 ) 176,668 Income tax (expense) benefit ( 57,359 ) ( 512 ) 13,704 ( 44,167 ) Current period other comprehensive income (loss), net of tax 172,075 1,537 ( 41,111 ) 132,501 Balance December 31, 2024 $ ( 742,926 ) $ ( 12,059 ) $ ( 3,926 ) $ ( 758,911 ) (1) The pre-tax amounts reclassified from accumulated other comprehensive income to current earnings are included in "investment securities gains (losses), net" in the consolidated statements of income. (2) The pre-tax amounts reclassified from accumulated other comprehensive income to current earnings are included in "interest and fees on loans" in the consolidated statements of income. 13. Segments The Company segregates financial information for use in assessing its performance and allocating resources among three operating segments: Retail Banking, Commercial, and Wealth. The Retail Banking segment, previously called the Consumer segment, consists of various consumer loan and deposit products offered through its retail branch network of approximately 140 locations. This segment also includes residential mortgage, indirect and other consumer loan financing businesses, along with debit and credit card loan and fee businesses. The Commercial segment provides corporate lending (including the Small Business Banking product line within the branch network), leasing, and international services, along with business and governmental deposit products and commercial cash management services. This segment also includes both merchant and commercial bank card products as well as the Commercial Tradable Products division, which sells fixed-income securities, underwrites municipal bonds and provides securities safekeeping and accounting services to its business and correspondent bank customers. The Wealth segment provides traditional trust and estate planning, advisory and discretionary investment management, and brokerage services. This segment also provides various loan and deposit related services to its private banking customers. The Company’s business line reporting system derives segment information from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. This information is based on internal management accounting procedures and methods, which have been developed to reflect the underlying economics of the 113 Table of Contents businesses. These methodologies are applied in connection with funds transfer pricing and assignment of overhead costs among segments. Funds transfer pricing was used in the determination of net interest income. A standard cost for funds used is applied to assets, and a credit for funds provided is applied to liabilities based on their maturity, prepayment and/or repricing characteristics. Income and expense that directly relate to segment operations are recorded in the segment when incurred. Expenses that indirectly support the segments are allocated based on the most appropriate method available. The Company uses a funds transfer pricing method to value funds used (e.g., loans, fixed assets, and cash) and funds provided (e.g., deposits, borrowings, and equity) by the business segments and their components. This process assigns a specific value to each new source or use of funds with a maturity, based on current swap rates, thus determining an interest spread at the time of the transaction. Non-maturity assets and liabilities are valued using weighted average pools. The funds transfer pricing process attempts to remove interest rate risk from valuation, allowing management to compare profitability under various rate environments. The Company’s chief executive officer is its chief operating decision maker ("CODM"). The CODM is the primary individual in control of resource allocation, and the allocation determinations are made in consultation with the Company’s executive management committee, of which the CODM is a member. The Company’s CODM primarily utilizes net income before taxes to evaluate each segment’s performance and allocate resources (including employees, financial, or capital resources), primarily through the Company’s annual budgeting process and periodic segment performance reviews. To manage operations and make decisions regarding resource allocations, the CODM is regularly provided and reviews total non-interest expense at a consolidated level and total non-interest expense for each segment. The following tables present selected financial information by segment and reconciliations of combined segment totals to consolidated totals. There were no material intersegment revenues between the three segments. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results. If appropriate, these changes are reflected in prior year information presented below. Net interest income allocated among the segments prior to 2024 has been restated to reflect a funds transfer pricing methodology change implemented on January 1, 2024 for all deposit types, except certificates of deposit. The new methodology moves from a rolling pool to a profitability range methodology. The new methodology more accurately reflects the profitability of affected deposits relative to current rates and removes most interest rate risk from business segments. Additionally, the Company changed its management of its portfolio of residential mortgage loans that it retains, and as a result, the Company began including those loans in the Retail Banking segment on January 1, 2023. These loans had previously been included in the Other/Elimination column. As a result of this change, loans of approximately $ 1.9 billion were reclassified from the Other/Elimination column into the Retail Banking segment in 2023 and were restated below to also reflect this change. There were no changes to segment composition in conjunction with the Company's renaming the Consumer segment to the Retail Banking segment. 114 Table of Contents Segment Income Statement Data (In thousands) Retail Banking Commercial Wealth Other/Elimination Consolidated Totals Year ended December 31, 2025: Net interest income $ 504,475 $ 532,786 $ 90,660 $ ( 16,063 ) $ 1,111,858 Provision for credit losses ( 38,811 ) ( 1,838 ) ( 22 ) ( 15,467 ) ( 56,138 ) Non-interest income 98,543 280,844 266,287 6,607 652,281 Investment securities gains, net — — — 3,660 3,660 Non-interest expense ( 337,732 ) ( 430,291 ) ( 166,255 ) ( 45,548 ) ( 979,826 ) Income before income taxes $ 226,475 $ 381,501 $ 190,670 $ ( 66,811 ) $ 731,835 Year ended December 31, 2024: Net interest income $ 511,643 $ 516,263 $ 87,819 $ ( 75,479 ) $ 1,040,246 Provision for loan losses ( 37,610 ) ( 1,446 ) 148 6,005 ( 32,903 ) Non-interest income 99,896 262,238 243,476 9,943 615,553 Investment securities gains, net — — — 7,823 7,823 Non-interest expense ( 328,328 ) ( 405,180 ) ( 158,649 ) ( 59,072 ) ( 951,229 ) Income before income taxes $ 245,601 $ 371,875 $ 172,794 $ ( 110,780 ) $ 679,490 Year ended December 31, 2023: Net interest income $ 552,215 $ 522,009 $ 99,798 $ ( 175,893 ) $ 998,129 Provision for loan losses ( 27,458 ) ( 3,514 ) ( 28 ) ( 4,451 ) ( 35,451 ) Non-interest income 97,029 249,063 218,241 8,712 573,045 Investment securities gains, net — — — 14,985 14,985 Non-interest expense ( 323,582 ) ( 395,098 ) ( 157,441 ) ( 54,861 ) ( 930,982 ) Income before income taxes $ 298,204 $ 372,460 $ 160,570 $ ( 211,508 ) $ 619,726 Non-interest expense for the Retail Banking, Commercial, and Wealth segments above is primarily comprised of salaries, incentives, benefits, and allocated overhead costs for service and support. Non-interest expense for the segments also includes expenses for data processing and software, occupancy, and professional and other services. The segment activity, as shown above, includes both direct and allocated items. Amounts in the “Other/Elimination” column include activity not related to the segments, such as that relating to administrative functions, the investment securities portfolio, and the effect of certain expense allocations to the segments. The provision for credit losses in this category contains the difference between net loan charge-offs assigned directly to the segments and the recorded provision for credit loss expense. Included in this category’s net interest income are earnings of the investment portfolio, which are not allocated to a segment. Additionally, interest expense on the Company's brokered deposits, is included in this column, as the Company's brokered deposits are not allocated to a segment. Segment Balance Sheet Data (In thousands) Retail Banking Commercial Wealth Other/Elimination Consolidated Totals Average balances for 2025: Assets $ 3,880,476 $ 11,908,485 $ 2,178,209 $ 13,699,433 $ 31,666,603 Loans, including held for sale 3,732,326 11,576,878 2,160,154 7,325 17,476,683 Goodwill and other intangible assets 80,497 75,133 746 3,600 159,976 Deposits 12,313,189 10,274,702 2,527,562 ( 77,764 ) 25,037,689 Average balances for 2024: Assets $ 3,978,303 $ 11,617,602 $ 1,965,266 $ 13,124,109 $ 30,685,280 Loans, including held for sale 3,830,310 11,302,754 1,949,127 7,406 17,089,597 Goodwill and other intangible assets 80,889 75,187 746 3,600 160,422 Deposits 12,275,888 9,887,803 2,378,958 ( 35,642 ) 24,507,007 The above segment balances include only those items directly associated with the segment. The “Other/Elimination” column includes unallocated bank balances not associated with a segment (such as investment securities, federal funds sold and brokered deposits), balances relating to certain other administrative and corporate functions, and eliminations between segment and non-segment balances. This column also includes the resulting effect of allocating such items as float, deposit reserve and capital for the purpose of computing the cost or credit for funds used/provided. 115 Table of Contents The Company’s reportable segments are strategic lines of business that offer different products and services. They are managed separately because each line services a specific customer need, requiring different performance measurement analyses and marketing strategies. The performance measurement of the segments is based on the management structure of the Company and is not necessarily comparable with similar information for any other financial institution. The information is also not necessarily indicative of the segments’ financial condition and results of operations if they were independent entities. 14. Common Stock* On December 16, 2025, the Company distributed a 5 % stock dividend on its $ 5 par common stock for the 32nd consecutive year. All per common share data in this report has been restated to reflect the stock dividend. The Company applies the two-class method of computing income per share, as nonvested share-based awards that pay non-forfeitable common stock dividends are considered securities which participate in undistributed earnings with common stock. The two-class method requires the calculation of separate income per share amounts for the nonvested share-based awards and for common stock. Income per share attributable to common stock is shown in the following table. Nonvested share-based awards are further discussed in Note 11, Stock-Based Compensation. Basic income per share is based on the weighted average number of common shares outstanding during the year. Diluted income per share gives effect to all dilutive potential common shares that were outstanding during the year. Presented below is a summary of the components used to calculate basic and diluted income per common share, which have been restated for all stock dividends. (In thousands, except per share data) 2025 2024 2023 Basic income per common share: Net income attributable to Commerce Bancshares, Inc. $ 566,251 $ 526,331 $ 477,060 Less income allocated to nonvested restricted stock 5,386 4,914 4,241 Net income allocated to common stock $ 560,865 $ 521,417 $ 472,819 Weighted average common shares outstanding 138,773 141,248 143,239 Basic income per common share $ 4.04 $ 3.69 $ 3.30 Diluted income per common share: Net income attributable to Commerce Bancshares, Inc. $ 566,251 $ 526,331 $ 477,060 Less income allocated to nonvested restricted stock 5,383 4,910 4,237 Net income allocated to common stock $ 560,868 $ 521,421 $ 472,823 Weighted average common shares outstanding 138,773 141,248 143,239 Net effect of the assumed exercise of stock-based awards - based on the treasury stock method using the average market price for the respective periods 127 175 165 Weighted average diluted common shares outstanding 138,900 141,423 143,404 Diluted income per common share $ 4.04 $ 3.69 $ 3.30 Unexercised stock appreciation rights of 296 thousand, 405 thousand and 400 thousand were excluded from the computation of diluted income per share for the years ended December 31, 2025, 2024 and 2023, respectively, because their inclusion would have been anti-dilutive. The Company maintains a treasury stock buyback program authorized by its Board of Directors. The most recent authorization in October 2025 approved future purchases of 5,000,000 shares of the Company's common stock. At December 31, 2025, 3,186,721 shares of common stock remained available for purchase under the current authorization. 116 Table of Contents The table below shows activity in the outstanding shares of the Company’s common stock during the past three years. Shares in the table below are presented on an historical basis and have not been restated for the annual 5% stock dividends. Years Ended December 31 (In thousands) 2025 2024 2023 Shares outstanding at January 1 134,152 130,176 124,999 Issuance of stock: Awards and sales under employee and director plans 316 453 348 5% stock dividend 6,578 6,396 6,201 Other purchases of treasury stock ( 3,609 ) ( 2,875 ) ( 1,355 ) Other 50 2 ( 17 ) Shares outstanding at December 31 137,487 134,152 130,176 * Except as noted in the above table, all share and per share amounts in this footnote have been restated for the 5% common stock dividend distributed in 2025. 117 Table of Contents 15. Regulatory Capital Requirements The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and additional discretionary actions by regulators that could have a direct material effect on the Company’s financial statements. The regulations require the Company to meet specific capital adequacy guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital classification is also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The following tables show the capital amounts and ratios for the Company (on a consolidated basis) and the Bank, together with the minimum capital adequacy and well-capitalized capital requirements, at the last two year ends. Actual Minimum Capital Adequacy Requirement Well-Capitalized Capital Requirement (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2025 Total Capital (to risk-weighted assets): Commerce Bancshares, Inc. (consolidated) $ 4,353,905 18.16 % $ 1,917,661 8.00 % N.A. N.A. Commerce Bank 3,833,780 16.15 1,899,151 8.00 $ 2,373,939 10.00 % Tier I Capital (to risk-weighted assets): Commerce Bancshares, Inc. (consolidated) $ 4,156,776 17.34 % $ 1,438,246 6.00 % N.A. N.A. Commerce Bank 3,636,651 15.32 1,424,364 6.00 $ 1,899,151 8.00 % Tier I Common Capital (to risk-weighted assets): Commerce Bancshares, Inc. (consolidated) $ 4,156,776 17.34 % $ 1,078,684 4.50 % N.A. N.A. Commerce Bank 3,636,651 15.32 1,068,273 4.50 $ 1,543,061 6.50 % Tier I Capital (to adjusted quarterly average assets): (Leverage Ratio) Commerce Bancshares, Inc. (consolidated) $ 4,156,776 12.65 % $ 1,314,066 4.00 % N.A. N.A. Commerce Bank 3,636,651 11.13 1,307,252 4.00 $ 1,634,065 5.00 % December 31, 2024 Total Capital (to risk-weighted assets): Commerce Bancshares, Inc. (consolidated) $ 4,108,270 17.48 % $ 1,880,032 8.00 % N.A. N.A. Commerce Bank 3,484,249 14.98 1,861,121 8.00 $ 2,326,401 10.00 % Tier I Capital (to risk-weighted assets): Commerce Bancshares, Inc. (consolidated) $ 3,926,446 16.71 % $ 1,410,024 6.00 % N.A. N.A. Commerce Bank 3,302,425 14.20 1,395,841 6.00 $ 1,861,121 8.00 % Tier I Common Capital (to risk-weighted assets): Commerce Bancshares, Inc. (consolidated) $ 3,926,446 16.71 % $ 1,057,518 4.50 % N.A. N.A. Commerce Bank 3,302,425 14.20 1,046,880 4.50 $ 1,512,161 6.50 % Tier I Capital (to adjusted quarterly average assets): (Leverage Ratio) Commerce Bancshares, Inc. (consolidated) $ 3,926,446 12.26 % $ 1,281,116 4.00 % N.A. N.A. Commerce Bank 3,302,425 10.36 1,274,648 4.00 $ 1,593,310 5.00 % The minimum required ratios for well-capitalized banks (under prompt corrective action provisions) are 6.5 % for Tier I common capital, 8.0 % for Tier I capital, 10.0 % for Total capital and 5.0 % for the leverage ratio. At December 31, 2025 and 2024, the Company met all capital requirements to which it is subject, and the Bank’s capital position exceeded the regulatory definition of well-capitalized. 118 Table of Contents 16. Revenue from Contracts with Customers Revenue from contracts with customers, Accounting Standard Codification 606 ("ASC 606"), requires revenue recognition for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For the year ended December 31, 2025, approximately 63 % of the Company’s total revenue was comprised of net interest income, which is not within the scope of this guidance. Of the remaining revenue, those items that were subject to this guidance mainly included fees for bank card, trust, deposit account services and consumer brokerage services. The following table disaggregates revenue from contracts with customers by major product line. For the Years Ended December 31 (In thousands) 2025 2024 2023 Bank card transaction fees $ 184,267 $ 189,784 $ 191,156 Trust fees 232,700 214,430 190,954 Deposit account charges and other fees 108,246 100,336 90,992 Consumer brokerage services 22,051 18,141 17,223 Other non-interest income 55,921 47,576 38,784 Total non-interest income from contracts with customers 603,185 570,267 529,109 Other non-interest income (1) 49,096 45,286 43,936 Total non-interest income $ 652,281 $ 615,553 $ 573,045 (1) This revenue is not within the scope of ASC 606, and includes fees relating to bond trading activities, loan fees and sales, derivative instruments, standby letters of credit and various other transactions. The following table presents the opening and closing receivable balances for the years ended December 31, 2025 and 2024 for the Company’s significant revenue categories from contracts with customers. (In thousands) December 31, 2025 December 31, 2024 December 31, 2023 Bank card transaction fees $ 16,878 $ 17,754 $ 18,069 Trust fees 2,424 2,165 1,764 Deposit account charges and other fees 8,414 7,897 6,588 Consumer brokerage services — — 8 For these revenue categories, none of the transaction price has been allocated to performance obligations that are unsatisfied as of the end of a reporting period. A description of these revenue categories follows. 119 Table of Contents Bank Card Transaction Fees The following table presents the components of bank card fee income. For the Years Ended December 31 (In thousands) 2025 2024 2023 Debit card: Fee income $ 44,791 $ 45,279 $ 44,795 Expense for network charges ( 762 ) ( 762 ) ( 914 ) Net debit card fees 44,029 44,517 43,881 Credit card: Fee income 31,910 31,845 31,639 Expense for network charges and rewards ( 17,508 ) ( 15,833 ) ( 17,191 ) Net credit card fees 14,402 16,012 14,448 Corporate card: Fee income 216,312 216,393 220,229 Expense for network charges and rewards ( 113,597 ) ( 109,731 ) ( 109,588 ) Net corporate card fees 102,715 106,662 110,641 Merchant: Fee income 38,513 38,358 36,775 Fees to cardholder banks ( 10,818 ) ( 11,515 ) ( 11,001 ) Expense for network charges ( 4,574 ) ( 4,250 ) ( 3,588 ) Net merchant fees 23,121 22,593 22,186 Total bank card transaction fees $ 184,267 $ 189,784 $ 191,156 The majority of debit and credit card fees are reported in the Retail Banking segment, while corporate card and merchant fees are reported in the Commercial segment. Debit and Credit Card Fees The Company issues debit and credit cards to its retail and commercial banking customers who use the cards to purchase goods and services from merchants through an electronic payment system. As a card issuer, the Company earns fees, including interchange income, for processing the cardholder’s purchase transaction with a merchant through a settlement network. Purchases are charged directly to a customer’s checking account (in the case of a debit card), or are posted to a customer’s credit card account. The fees earned are established by the settlement network and are dependent on the type of transaction processed but are typically based on a per unit charge. Interchange income, the largest component of debit and credit card fees, is settled daily through the networks. The services provided to the cardholders include issuing and maintaining cards, settling purchases with merchants, and maintaining memberships in various card networks to facilitate processing. These services are considered one performance obligation, as one of the services would not be performed without the others. The performance obligation is satisfied as services are rendered for each purchase transaction, and income is immediately recognized. In order to participate in the settlement network process, the Company must pay various transaction-related costs, established by the networks, including membership fees and a per unit charge for each transaction. These expenses are recorded net of the card fees earned. Consumer credit card products offer cardholders rewards that can be later redeemed for cash, goods or services to encourage card usage. Reward programs must meet network requirements based on the type of card issued. The expense associated with the rewards granted are recorded net of the credit card fees earned. Commercial card products offer cash rewards to corporate cardholders to encourage card usage in facilitating corporate payments. The Company pays cash rewards based on contractually agreed upon amounts, normally as a percent of each sales transaction. The expense associated with the cash rewards program is recorded net of the corporate card fees earned. 120 Table of Contents Merchant Fees The Company offers merchant processing services to its business customers to enable them to accept credit and debit card payments. Merchant processing activities include gathering merchant sales information, authorizing sales transactions and collecting the funds from card issuers using the networks. The merchant is charged a merchant discount fee for the services based on agreed upon pricing between the merchant and the Company. Merchant fees are recorded net of outgoing interchange costs paid to the card issuing banks and net of other network costs as shown in the table above. Merchant services provided are considered one performance obligation, as one of the services would not be performed without the others. The performance obligation is satisfied as services are rendered for each settlement transaction and income is immediately recognized. Income earned from merchant fees settles with the customer according to terms negotiated in individual customer contracts. The majority of customers settle with the Company at least monthly. Trust Fees The following table shows the components of revenue within trust fees, which are reported within the Wealth segment. For the Years Ended December 31 (In thousands) 2025 2024 2023 Private client $ 189,481 $ 173,659 $ 153,524 Institutional 37,129 34,596 31,756 Other 6,090 6,175 5,674 Total trust fees $ 232,700 $ 214,430 $ 190,954 The Company provides trust and asset management services to both private client and institutional trust customers including asset custody, investment advice, and reporting and administrative services. Other specialized services such as tax preparation, financial planning, representation and other related services are provided as needed. Trust fees are generally earned monthly and billed based on a rate multiplied by the fair value of the customer's trust assets. The majority of customer trust accounts are billed monthly. However, some accounts are billed quarterly, and a small number of accounts are billed semi-annually or annually, in accordance with agreements in place with the customer. The Company accrues trust fees monthly based on an estimate of fees due and either directly charges the customer’s account the following month or invoices the customer for fees due according to the billing schedule. The Company maintains written product pricing information which is used to bill each trust customer based on the services provided. Providing trust services is considered to be a single performance obligation that is satisfied on a monthly basis, involving the monthly custody of customer assets, statement rendering, periodic investment advice where applicable, and other specialized services as needed. As such, performance obligations are considered to be satisfied at the conclusion of each month while trust fee income is also recognized monthly. Deposit Account Charges and Other Fees The following table shows the components of revenue within deposit account charges and other fees. For the Years Ended December 31 (In thousands) 2025 2024 2023 Corporate cash management fees $ 72,203 $ 64,838 $ 56,291 Overdraft and return item fees 11,540 11,511 11,607 Other service charges on deposit accounts 24,503 23,987 23,094 Total deposit account charges and other fees $ 108,246 $ 100,336 $ 90,992 Approximately 71 % of this revenue is reported in the Commercial segment, while the remainder is reported in the Retail Banking segment. The Company provides corporate cash management services to its business and non-profit customers to meet their various transaction processing needs. Such services include deposit and check processing, lockbox, remote deposit, reconciliation, online banking and other similar transaction processing services. The Company maintains unit prices for each type of service, and the customer is billed based on transaction volumes processed monthly. The customer is usually billed either monthly or 121 Table of Contents quarterly, however, some customers may be billed semi-annually or annually. The customer may pay for the cash management services either by paying in cash or using the value of deposit balances (formula provided to the customer) held at the Company. The Company’s performance obligation for corporate cash management services is the processing of items over a monthly term, and the obligations are satisfied at the conclusion of each month. Overdraft fees are charged to customers when daily checks and other withdrawals to customers’ accounts exceed balances on hand. Fees are based on a unit price multiplied by the number of items processed whose total amounts exceed the available account balance. The daily overdraft charge is calculated, and the fee is posted to the customer’s account each day. The Company’s performance obligation for overdraft transactions is based on the daily transaction processed and the obligation is satisfied as each day’s transaction processing is concluded. Other deposit fees include numerous smaller fees such as monthly statement fees, foreign ATM processing fees, identification restoration fees, and stop payment fees. Such fees are mostly billed to customers directly on their monthly deposit account statements, or in the case of foreign ATM processing fees, the fee is charged to the customer on the day that transactions are processed. Performance obligations for all of these various services are satisfied at the time that the service is rendered. Consumer Brokerage Services Consumer brokerage services revenue is comprised of commissions received upon the execution of purchases and sales of mutual fund shares and equity securities, in addition to sales of annuities and certain limited insurance products, in an agency capacity. Also, commissions are earned on professionally managed advisory programs. Revenue from these services is generally recognized as a commission at the time of the transaction’s execution. Mutual fund and other distribution fees are recognized upon initial transaction execution as well as in future periods as customers continue to hold amounts in those mutual funds. Commission revenue for advisory services is recognized ratably over the contract term. Nearly all of the Company’s consumer brokerage services revenue is recorded in the Wealth segment. Other Non-Interest Income from Contracts with Customers Other non-interest income from contracts with customers consists mainly of various transaction-driven revenue streams such as ATM fees, check sales and wire fees, cash sweep commissions, underwriting fees, and gains on sales of tax credits. Performance obligations for these services consist mainly of the execution of a single transaction at a single point in time. Fees from these revenue sources are recognized when the performance obligation is completed, at which time cash is received by the Company. 122 Table of Contents 17. Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain financial and nonfinancial assets and liabilities and to determine fair value disclosures. Various financial instruments such as available for sale debt securities, equity securities, trading debt securities, certain investments relating to private equity activities, and derivatives are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record other assets and liabilities at fair value on a nonrecurring basis, such as mortgage servicing rights and certain other investment securities. These nonrecurring fair value adjustments typically involve lower of cost or fair value accounting, or write-downs of individual assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Company uses various valuation techniques and assumptions when estimating fair value. For accounting disclosure purposes, a three-level valuation hierarchy of fair value measurements has been established. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: • Level 1 – inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and inputs that are observable for the assets or liabilities, either directly or indirectly (such as interest rates, yield curves, and prepayment speeds). • Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value. These may be internally developed, using the Company’s best information and assumptions that a market participant would consider. When determining the fair value measurements for assets and liabilities required or permitted to be recorded or disclosed at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to observable market data for similar assets and liabilities. Nevertheless, certain assets and liabilities are not actively traded in observable markets, and the Company must use alternative valuation techniques to derive an estimated fair value measurement. 123 Table of Contents Instruments Measured at Fair Value on a Recurring Basis The table below presents the carrying values of assets and liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024. There were no transfers among levels during these years. Fair Value Measurements Using (In thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2025 Assets: Residential mortgage loans held for sale $ 4,028 $ — $ 4,028 $ — Available for sale debt securities: U.S. government and federal agency obligations 3,279,100 3,279,100 — — Government-sponsored enterprise obligations 44,712 — 44,712 — State and municipal obligations 664,733 — 663,781 952 Agency mortgage-backed securities 3,223,105 — 3,223,105 — Non-agency mortgage-backed securities 435,688 — 435,688 — Asset-backed securities 1,262,045 — 1,262,045 — Other debt securities 186,130 — 186,130 — Trading debt securities 40,080 13,215 26,865 — Equity securities 47,551 47,551 — — Private equity investments 184,343 — — 184,343 Derivatives * 51,421 — 51,232 189 Assets held in trust for deferred compensation plan 23,276 23,276 — — Total assets 9,446,212 3,363,142 5,897,586 185,484 Liabilities: Derivatives * 18,795 — 18,718 77 Liabilities held in trust for deferred compensation plan 23,276 23,276 — — Total liabilities $ 42,071 $ 23,276 $ 18,718 $ 77 December 31, 2024 Assets: Residential mortgage loans held for sale $ 2,981 $ — $ 2,981 $ — Available for sale debt securities: U.S. government and federal agency obligations 2,555,252 2,555,252 — — Government-sponsored enterprise obligations 42,849 — 42,849 — State and municipal obligations 742,891 — 741,927 964 Agency mortgage-backed securities 3,444,891 — 3,444,891 — Non-agency mortgage-backed securities 568,689 — 568,689 — Asset-backed securities 1,557,015 — 1,557,015 — Other debt securities 225,266 — 225,266 — Trading debt securities 38,034 10,219 27,815 — Equity securities 48,359 48,359 — — Private equity investments 184,386 — — 184,386 Derivatives * 62,648 — 62,555 93 Assets held in trust for deferred compensation plan 21,849 21,849 — — Total assets 9,495,110 2,635,679 6,673,988 185,443 Liabilities: Derivatives * 26,963 — 26,905 58 Liabilities held in trust for deferred compensation plan 21,849 21,849 — — Total liabilities $ 48,812 $ 21,849 $ 26,905 $ 58 *The fair value of each class of derivative is shown in Note 19. 124 Table of Contents Valuation methods for instruments measured at fair value on a recurring basis Following is a description of the Company’s valuation methodologies used for instruments measured at fair value on a recurring basis: Residential mortgage loans held for sale The Company originates fixed rate, first lien residential mortgage loans that are intended for sale in the secondary market. Fair value is based on quoted secondary market prices for loans with similar characteristics, which are adjusted to include the embedded servicing value in the loans. This adjustment represents an unobservable input to the valuation but is not considered significant given the relative insensitivity of the valuation to changes in this input. Accordingly, these loan measurements are classified as Level 2. Available for sale debt securities For available for sale securities, changes in fair value are recorded in other comprehensive income. This portfolio comprises the majority of the assets which the Company records at fair value. Most of the portfolio, which includes government-sponsored enterprise, mortgage-backed and asset-backed securities, are priced utilizing industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. These measurements are classified as Level 2 in the fair value hierarchy. Where quoted prices are available in an active market, the measurements are classified as Level 1. Most of the Level 1 measurements apply to U.S. Treasury obligations. The fair values of Level 1 and 2 securities in the available for sale portfolio are prices provided by a third-party pricing service. The prices provided by the third-party pricing service are based on observable market inputs, as described in the sections below. On a quarterly basis, the Company compares these prices to other independent sources for the same and similar securities. Variances are analyzed, and, if appropriate, additional research is conducted with the third-party pricing service. Based on this research, the pricing service may affirm or revise its quoted price. No significant adjustments have been made to the prices provided by the pricing service. The pricing service also provides documentation on an ongoing basis that includes reference data, inputs and methodology by asset class, which is reviewed by the Company to ensure that security placement within the fair value hierarchy is appropriate. Valuation methods and inputs, by class of security: • U.S. government and federal agency obligations U.S. treasury bills, bonds and notes, including inflation-protected securities, are valued using quoted prices from active markets. • Government-sponsored enterprise obligations Government-sponsored enterprise obligations are evaluated using cash flow valuation models. Inputs used are live market data, cash settlements, Treasury market yields, and floating rate indices such as SOFR, CMT, and Prime. • State and municipal obligations, excluding auction rate securities A yield curve is generated and applied to bond sectors, and individual bond valuations are extrapolated. Inputs used to generate the yield curve are bellwether issue levels, established trading spreads between similar issuers or credits, historical trading spreads over widely accepted market benchmarks, new issue scales, and verified bid information. Bid information is verified by corroborating the data against external sources such as broker-dealers, trustees/paying agents, issuers, or non-affiliated bondholders. • Mortgage and asset-backed securities Collateralized mortgage obligations and other asset-backed securities are valued at the tranche level. For each tranche valuation, the process generates predicted cash flows for the tranche, applies a market based (or benchmark) yield/spread for each tranche, and incorporates deal collateral performance and tranche level attributes to determine tranche-specific spreads to adjust the benchmark yield. Tranche cash flows are generated from new deal files and prepayment/default assumptions. Tranche spreads are based on tranche characteristics such as average life, type, volatility, ratings, underlying collateral and performance, and prevailing market conditions. The appropriate tranche spread is applied to the corresponding benchmark, and the resulting value is used to discount the cash flows to generate an evaluated price. 125 Table of Contents Valuation of agency pass-through securities, typically issued under GNMA, FNMA, FHLMC, and SBA programs, are primarily derived from information from the to-be-announced (TBA) market. This market consists of generic mortgage pools which have not been received for settlement. Snapshots of the TBA market, using live data feeds distributed by multiple electronic platforms, are used in conjunction with other indices to compute a price based on discounted cash flow models. • Other debt securities Other debt securities are valued using active markets and inter-dealer brokers as well as option adjusted spreads. The spreads and models use yield curves, terms and conditions of the bonds, and any special features (e.g., call or put options and redemption features). Trading debt securities The securities in the Company’s trading portfolio are priced by averaging several broker quotes for similar instruments and are classified as Level 2 measurements. Certain U.S. Treasury obligations within the trading portfolio are classified as Level 1 measurements. Equity securities with readily determinable fair values Equity securities are priced using the market prices for each security from the major stock exchanges or other electronic quotation systems. These are generally classified as Level 1 measurements. Stocks which trade infrequently are classified as Level 2. Private equity investments These securities are held by the Company’s private equity subsidiary and are included in other investment securities in the consolidated balance sheets. Due to the absence of quoted market prices, valuation of these nonpublic investments requires significant management judgment. These fair value measurements, which are discussed in the Level 3 Inputs section of this note, are classified as Level 3. Derivatives The Company’s derivative instruments include interest rate swaps and floors, foreign exchange forward contracts, and certain credit risk guarantee agreements. When appropriate, the impact of credit standing as well as any potential credit enhancements, such as collateral, has been considered in the fair value measurement. • Valuations for interest rate swaps are derived from a proprietary model whose significant inputs are readily observable market parameters, primarily yield curves used to calculate current exposure. Counterparty credit risk is incorporated into the model and calculated by applying a net credit spread over SOFR to the swap's total expected exposure over time. The net credit spread is comprised of spreads for both the Company and its counterparty, derived from probability of default and other loss estimate information obtained from a third party credit data provider or from the Company's Credit department when not otherwise available. The credit risk component is not significant compared to the overall fair value of the swaps. The results of the model are constantly validated through comparison to active trading in the marketplace. Parties to swaps requiring central clearing are required to post collateral (generally in the form of cash or marketable securities) to an authorized clearing agency that holds and monitors the collateral. The Company's clearing counterparty characterizes a component of this collateral, known as variation margin, as a legal settlement of the derivative contract exposure, and as a result, the variation margin is considered in determining the fair value of the derivative. Valuations for interest rate floors are also derived from a proprietary model whose significant inputs are readily observable market parameters, primarily yield curves and volatility surfaces. The model uses market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates fall below the strike rates of the floors. The model also incorporates credit valuation adjustments of both the Company's and the counterparties' non-performance risk. The credit valuation adjustment component is not significant compared to the overall fair value of the floors. The fair value measurements of interest rate swaps and floors are classified as Level 2 due to the observable nature of the significant inputs utilized. • Fair value measurements for foreign exchange contracts are derived from a model whose primary inputs are quotations from global market makers and are classified as Level 2. 126 Table of Contents • The Company’s contracts related to credit risk guarantees are valued under a proprietary model which uses unobservable inputs and assumptions about the creditworthiness of the counterparty (generally a Bank customer). Customer credit spreads, which are based on probability of default and other loss estimates, are calculated internally by the Company's Credit department, as mentioned above, and are based on the Company's internal risk rating for each customer. Because these inputs are significant to the measurements, they are classified as Level 3. • Derivatives relating to residential mortgage loan sale activity include commitments to originate mortgage loans held for sale, forward loan sale contracts, and forward commitments to sell TBA securities. The fair values of loan commitments and sale contracts are estimated using quoted market prices for loans similar to the underlying loans in these instruments. The valuations of loan commitments are further adjusted to include embedded servicing value and the probability of funding. These assumptions are considered Level 3 inputs and are significant to the loan commitment valuation; accordingly, the measurement of loan commitments is classified as Level 3. The fair value measurement of TBA contracts is based on security prices published on trading platforms and is classified as Level 2. Assets held in trust for deferred compensation plan Assets held in a third party trust for the Company’s deferred compensation plan consist of investments in mutual funds. The fair value measurements are based on quoted prices in active markets and classified as Level 1. The Company has recorded an asset representing the total investment amount. The Company has also recorded a corresponding liability, representing the Company’s liability to the plan participants. 127 Table of Contents The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In thousands) State and Municipal Obligations Private Equity Investments Total Year ended December 31, 2025: Balance at January 1, 2025 $ 964 $ 184,386 $ 185,350 Total gains (losses) realized/unrealized: Included in earnings — 11,736 11,736 Included in other comprehensive income * ( 14 ) — ( 14 ) Discount accretion 2 — 2 Purchases of private equity securities — 7,363 7,363 Sale / pay down of private equity securities — ( 19,212 ) ( 19,212 ) Capitalized interest/dividends — 70 70 Balance at December 31, 2025 $ 952 $ 184,343 $ 185,295 Total gains (losses) for the year included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2025 $ — $ 12,737 $ 12,737 Total gains (losses) for the year included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2025 $ ( 14 ) $ — $ ( 14 ) Year ended December 31, 2024: Balance at January 1, 2024 $ 947 $ 176,667 $ 177,614 Total gains (losses) realized/unrealized: Included in earnings — 24,134 24,134 Included in other comprehensive income * 15 — 15 Discount accretion 2 — 2 Purchases of private equity securities — 20,800 20,800 Sale / pay down of private equity securities — ( 37,103 ) ( 37,103 ) Capitalized interest/dividends — ( 112 ) ( 112 ) Balance at December 31, 2024 $ 964 $ 184,386 $ 185,350 Total gains (losses) for the year included in earnings attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2024 $ — $ 14,409 $ 14,409 Total gains (losses) for the year included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2024 $ 15 $ — $ 15 * Included in "net unrealized gains (losses) on securities" in the consolidated statements of comprehensive income. Gains and losses on the Level 3 assets and liabilities in the table above are reported in the following income categories: (In thousands) Investment Securities Gains (Losses), Net Year ended December 31, 2025: Total gains or losses included in earnings $ 11,736 Change in unrealized gains or losses relating to assets still held at December 31, 2025 $ 12,737 Year ended December 31, 2024: Total gains or losses included in earnings $ 24,134 Change in unrealized gains or losses relating to assets still held at December 31, 2024 $ 14,409 128 Table of Contents Level 3 Inputs The Company's significant Level 3 measurements, which employ unobservable inputs that are readily quantifiable, pertain to investments in portfolio concerns held by the Company's private equity subsidiaries. Information about these inputs as of December 31, 2025 is presented in the table below. Quantitative Information about Level 3 Fair Value Measurements Weighted Valuation Technique Unobservable Input Range Average* Private equity investments Market comparable companies EBITDA multiple 4.0 - 6.0 5.1 * Unobservable inputs were weighted by the relative fair value of the instruments. The fair values of the Company's private equity investments are based on a determination of fair value of the investee company less preference payments assuming the sale of the investee company. Investee companies are normally non-public entities. The fair value of the investee company is determined by reference to the investee's total earnings before interest, depreciation/amortization, and income taxes (EBITDA) multiplied by an EBITDA factor. EBITDA is normally determined based on a trailing prior period adjusted for specific factors including current economic outlook, investee management, and specific unique circumstances such as sales order information, major customer status, regulatory changes, etc. The EBITDA multiple is based on management's review of published trading multiples for recent private equity transactions and other judgments and is derived for each individual investee. The fair value of the Company's investment is then calculated based on its ownership percentage in the investee company. On a quarterly basis, these fair value analyses are reviewed by a valuation committee consisting of investment managers and senior Company management. Instruments Measured at Fair Value on a Nonrecurring Basis For assets measured at fair value on a nonrecurring basis during 2025 and 2024, and still held as of December 31, 2025 and 2024, the following table provides the adjustments to fair value recognized during the respective periods, the level of valuation assumptions used to determine each adjustment, and the carrying value of the related individual assets or portfolios at December 31, 2025 and 2024. Fair Value Measurements Using (In thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Gains (Losses) Balance at December 31, 2025 Collateral dependent loans $ 172 $ — $ — $ 172 $ ( 460 ) Foreclosed assets 174 — — 174 ( 40 ) Long-lived assets 301 — — 301 ( 99 ) Balance at December 31, 2024 Collateral dependent loans $ 14,683 $ — $ — $ 14,683 $ ( 2,382 ) Foreclosed assets 20 — — 20 ( 50 ) Long-lived assets 393 — — 393 ( 626 ) Valuation methods for instruments measured at fair value on a nonrecurring basis Following is a description of the Company’s valuation methodologies used for other financial and nonfinancial instruments measured at fair value on a nonrecurring basis. Collateral dependent loans While the overall loan portfolio is not carried at fair value, the Company periodically records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral dependent loans when establishing the allowance for credit losses on loans. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. In determining the value of real estate collateral, the Company relies on external and internal appraisals of property values depending on the size and complexity of the real estate collateral. The Company maintains a staff of qualified appraisers who also review third party appraisal reports for reasonableness. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgments based on the experience and expertise of internal 129 Table of Contents specialists. Values of all loan collateral are regularly reviewed by credit administration. Unobservable inputs to these measurements, which include estimates and judgments often used in conjunction with appraisals, are not readily quantifiable. These measurements are classified as Level 3. Nonrecurring adjustments to the carrying value of loans based on fair value measurements at December 31, 2025 and 2024 are shown in the table above. Foreclosed assets Foreclosed assets consist of loan collateral which has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including auto, marine and recreational vehicles. Foreclosed assets are recorded as held for sale initially at the lower of the loan balance or fair value of the collateral less estimated selling costs. Subsequent to foreclosure, valuations are updated periodically, and the assets may be marked down further, reflecting a new cost basis. Fair value measurements may be based upon appraisals, third-party price opinions, or internally developed pricing methods. These measurements are classified as Level 3. Long-lived assets When investments in branch facilities and various office buildings are determined to be impaired, their carrying values are written down to estimated fair value, or estimated fair value less cost to sell if the property is held for sale. Fair value is estimated in a process which considers current local commercial real estate market conditions and the judgment of the sales agent and often involves obtaining third party appraisals from certified real estate appraisers. The carrying amounts of these real estate holdings are regularly monitored by real estate professionals employed by the Company. These fair value measurements are classified as Level 3. Unobservable inputs to these measurements, which include estimates and judgments often used in conjunction with appraisals, are not readily quantifiable. 130 Table of Contents 18. Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments held by the Company are set forth below. Fair value estimates are made at a specific point in time based on relevant market information. They do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for many of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, risk characteristics and economic conditions. These estimates are subjective, involve uncertainties, and cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The estimated fair values of the Company’s financial instruments and the classification of their fair value measurement within the valuation hierarchy are as follows at December 31, 2025 and 2024: Carrying Amount Estimated Fair Value at December 31, 2025 (In thousands) Level 1 Level 2 Level 3 Total Financial Assets Loans: Business $ 6,439,380 $ — $ — $ 6,367,754 $ 6,367,754 Real estate - construction and land 1,438,012 — — 1,415,490 1,415,490 Real estate - business 3,674,567 — — 3,628,499 3,628,499 Real estate - personal 3,053,435 — — 2,815,384 2,815,384 Consumer 2,196,822 — — 2,188,772 2,188,772 Revolving home equity 375,159 — — 371,998 371,998 Consumer credit card 589,694 — — 535,660 535,660 Overdrafts 4,194 — — 4,045 4,045 Total loans 17,771,263 — — 17,327,602 17,327,602 Loans held for sale 4,329 — 4,329 — 4,329 Investment securities 9,413,603 3,339,866 5,842,326 231,411 9,413,603 Securities purchased under agreements to resell 850,000 — — 869,427 869,427 Interest earning deposits with banks 2,744,393 2,744,393 — — 2,744,393 Cash and due from banks 803,239 803,239 — — 803,239 Derivative instruments 51,421 — 51,232 189 51,421 Assets held in trust for deferred compensation plan 23,276 23,276 — — 23,276 Total $ 31,661,524 $ 6,910,774 $ 5,897,887 $ 18,428,629 $ 31,237,290 Financial Liabilities Non-interest bearing deposits $ 8,205,711 $ 8,205,711 $ — $ — $ 8,205,711 Savings, interest checking and money market deposits 15,047,406 15,047,406 — — 15,047,406 Certificates of deposit 2,386,459 — — 2,418,268 2,418,268 Federal funds purchased 128,625 128,625 — — 128,625 Securities sold under agreements to repurchase 2,861,016 — — 2,863,921 2,863,921 Other borrowings 12,739 12,739 — — 12,739 Derivative instruments 18,795 — 18,718 77 18,795 Liabilities held in trust for deferred compensation plan 23,276 23,276 — — 23,276 Total $ 28,684,027 $ 23,417,757 $ 18,718 $ 5,282,266 $ 28,718,741 131 Table of Contents Carrying Amount Estimated Fair Value at December 31, 2024 (In thousands) Level 1 Level 2 Level 3 Total Financial Assets Loans: Business $ 6,053,820 $ — $ — $ 5,943,565 $ 5,943,565 Real estate - construction and land 1,409,901 — — 1,384,029 1,384,029 Real estate - business 3,661,218 — — 3,558,862 3,558,862 Real estate - personal 3,058,195 — — 2,738,880 2,738,880 Consumer 2,073,123 — — 2,053,191 2,053,191 Revolving home equity 356,650 — — 353,731 353,731 Consumer credit card 595,930 — — 549,874 549,874 Overdrafts 11,266 — — 11,120 11,120 Total loans 17,220,103 — — 16,593,252 16,593,252 Loans held for sale 3,242 — 3,242 — 3,242 Investment securities 9,453,297 2,613,830 6,608,452 231,015 9,453,297 Federal funds sold 3,000 3,000 — — 3,000 Securities purchased under agreements to resell 625,000 — — 622,021 622,021 Interest earning deposits with banks 2,624,553 2,624,553 — — 2,624,553 Cash and due from banks 748,357 748,357 — — 748,357 Derivative instruments 62,648 — 62,555 93 62,648 Assets held in trust for deferred compensation plan 21,849 21,849 — — 21,849 Total $ 30,762,049 $ 6,011,589 $ 6,674,249 $ 17,446,381 $ 30,132,219 Financial Liabilities Non-interest bearing deposits $ 8,150,669 $ 8,150,669 $ — $ — $ 8,150,669 Savings, interest checking and money market deposits 14,754,571 14,754,571 — — 14,754,571 Certificates of deposit 2,388,404 — — 2,409,537 2,409,537 Federal funds purchased 123,715 123,715 — — 123,715 Securities sold under agreements to repurchase 2,803,043 — — 2,806,428 2,806,428 Derivative instruments 26,963 — 26,905 58 26,963 Liabilities held in trust for deferred compensation plan 21,849 21,849 — — 21,849 Total $ 28,269,214 $ 23,050,804 $ 26,905 $ 5,216,023 $ 28,293,732 132 Table of Contents 19. Derivative Instruments The notional amounts of the Company’s derivative instruments are shown in the table below. These contractual amounts, along with other terms of the derivative, are used to determine amounts to be exchanged between counterparties and are not a measure of loss exposure. The Company's derivatives are not accounted for as accounting hedges except for the interest rate floors, as discussed below. December 31 (In thousands) 2025 2024 Interest rate swaps $ 1,968,679 $ 2,065,400 Interest rate floors 2,000,000 2,000,000 Interest rate caps 105,770 37,488 Credit risk participation agreements 474,951 503,196 Foreign exchange contracts 29,451 16,978 Mortgage loan commitments 6,297 3,060 Mortgage loan forward sale contracts 1,794 1,759 Forward TBA contracts 7,000 3,500 Total notional amount $ 4,593,942 $ 4,631,381 Interest rate swap contracts are sold to commercial customers who wish to modify their interest rate sensitivity. The customers are engaged in a variety of businesses, including real estate, manufacturing, retail product distribution, education, and retirement communities. These interest rate swap contracts with customers are offset by matching interest rate swap contracts purchased by the Company from other financial institutions (dealers). Contracts with dealers that require central clearing are novated to a clearing agency who becomes the Company's counterparty. Because of the matching terms of the offsetting contracts, in addition to collateral provisions which mitigate the impact of non-performance risk, changes in fair value subsequent to initial recognition have a minimal effect on earnings. Many of the Company’s interest rate swap contracts with large financial institutions contain contingent features relating to debt ratings or capitalization levels. Under these provisions, if the Company’s debt rating falls below investment grade or if the Company ceases to be “well-capitalized” under risk-based capital guidelines, certain counterparties can require immediate and ongoing collateralization on interest rate swaps in net liability positions or instant settlement of the contracts. The Company maintains debt ratings and capital well above those minimum requirements. As of December 31, 2025, the Company held four interest rate floors indexed to 1-month SOFR to hedge the risk of declining interest rates on certain floating rate commercial loans. The floors have a combined notional value of $2.0 billion and are forward-starting. Each of the four interest rate floors has a six-year term and a notional amount of $500 million. In the event that the index rate falls below zero, the maximum rate that the Company can earn on the notional amount of each floor is limited to the strike rate . Information about the floors is provided in the table below. Strike Rate Effective Date Maturity Date 3.50 % July 1, 2024 July 1, 2030 3.25 % November 1, 2024 November 1, 2030 3.00 % March 1, 2025 March 1, 2031 2.75 % July 1, 2025 July 1, 2031 The premium paid for the floors totaled $ 90.2 million, and at December 31, 2025, the maximum length of time over which the Company is hedging its exposure to lower rates is approximately 5.5 years. These interest rate floors qualified and were designated as cash flow hedges and were assessed for effectiveness using regression analysis. The change in the fair value of these interest rate floors is recorded in AOCI, net of the amortization of the premiums paid, which is recorded against interest and fees on loans in the consolidated statements of income. As of December 31, 2025, net deferred losses on the interest rate floors totaled $ 26.2 million (pre-tax) and were recorded in AOCI in the consolidated balance sheet. As of December 31, 2025, it is expected that $ 11.1 million (pre-tax) interest rate floor premium amortization will be reclassified from AOCI into earnings over the next 12 months for the outstanding interest rate floors. 133 Table of Contents During the year ended December 31, 2020, the Company monetized three interest rate floors that were previously classified as cash flow hedges with a combined notional balance of $ 1.5 billion and an asset fair value of $ 163.2 million. As of December 31, 2025, the total realized gains on the monetized cash flow hedges remaining in AOCI was $ 8.8 million (pre-tax), which will be reclassified into interest income over the next 12 months. The estimated amount of net gains remaining in AOCI related to the monetized cash flow hedges at December 31, 2025 that is expected to be reclassified into income within the next 12 months is $ 8.8 million. The Company also contracts with other financial institutions, as a guarantor or beneficiary, to share credit risk associated with certain interest rate swaps through risk participation agreements. The Company’s risks and responsibilities as guarantor are further discussed in Note 21 on Commitments, Contingencies and Guarantees. In addition, the Company enters into foreign exchange contracts, which are mainly comprised of contracts with customers to purchase or deliver specific foreign currencies at specific future dates. Under its program to sell residential mortgage loans in the secondary market, the Company designates certain newly-originated residential mortgage loans as held for sale. Derivative instruments arising from this activity include mortgage loan commitments and forward loan sale contracts. Changes in the fair values of the loan commitments and funded loans prior to sale that are due to changes in interest rates are economically hedged with forward contracts to sell residential mortgage-backed securities in the to-be-announced (TBA) market. These forward TBA contracts are also considered to be derivatives and are settled in cash at the security settlement date. The fair values of the Company’s derivative instruments, whose notional amounts are listed above, are shown in the table below. Information about the valuation methods used to determine fair value is provided in Note 17 on Fair Value Measurements. As stated in the summary of significant accounting policies, derivative instruments and their related gains and losses are presented as operating cash flows in the consolidated statement of cash flows. The Company's policy is to present its derivative assets and derivative liabilities on a gross basis in its consolidated balance sheets, and these are reported in other assets and other liabilities. In prior years, certain collateral posted to and from the Company's clearing counterparty has been applied to the fair values of the cleared swap. There was no reduction to positive or negative fair values of cleared swaps at December 31, 2025 and December 31, 2024. Asset Derivatives Liability Derivatives December 31 December 31 2025 2024 2025 2024 (In thousands ) Fair Value Fair Value Derivatives designated as hedging instruments: Interest rate floors $ 32,524 $ 35,544 $ — $ — Total derivatives designated as hedging instruments $ 32,524 $ 35,544 $ — $ — Derivatives not designated as hedging instruments: Interest rate swaps $ 18,294 $ 26,759 $ ( 18,294 ) $ ( 26,759 ) Interest rate caps 2 44 ( 2 ) ( 44 ) Credit risk participation agreements 56 35 ( 77 ) ( 58 ) Foreign exchange contracts 396 179 ( 401 ) ( 101 ) Mortgage loan commitments 133 58 — — Mortgage loan forward sale contracts 15 14 — — Forward TBA contracts 1 15 ( 21 ) ( 1 ) Total derivatives not designated as hedging instruments $ 18,897 $ 27,104 $ ( 18,795 ) $ ( 26,963 ) Total $ 51,421 $ 62,648 $ ( 18,795 ) $ ( 26,963 ) 134 Table of Contents The Company made an election to exclude the initial premiums paid on the interest rate floors from the hedge effectiveness measurement. Those initial premiums are amortized over the periods between the premium payment month and the contract maturity month. The pre-tax effects of the gains and losses (both the included and excluded amounts for hedge effectiveness assessment) recognized in the other comprehensive income from the cash flow hedging instruments and the amounts reclassified from accumulated other comprehensive income into income (both included and excluded amounts for hedge effectiveness measurement) are shown in the table below. Amount of Gain or (Loss) Recognized in OCI Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income (In thousands) Total Included Component Excluded Component (In thousands) Total Included Component Excluded Component For the Year Ended December 31, 2025 Derivatives in cash flow hedging relationships: Interest rate floors $ ( 3,020 ) $ 3,915 $ ( 6,935 ) Interest and fees on loans $ 9,073 $ 25,959 $ ( 16,886 ) Total $ ( 3,020 ) $ 3,915 $ ( 6,935 ) Total $ 9,073 $ 25,959 $ ( 16,886 ) For the Year Ended December 31, 2024 Derivatives in cash flow hedging relationships: Interest rate floors $ ( 43,416 ) $ ( 10,109 ) $ ( 33,307 ) Interest and fees on loans $ 11,399 $ 28,331 $ ( 16,932 ) Total $ ( 43,416 ) $ ( 10,109 ) $ ( 33,307 ) Total $ 11,399 $ 28,331 $ ( 16,932 ) For the Year Ended December 31, 2023 Derivatives in cash flow hedging relationships: Interest rate floors $ ( 8,860 ) $ 3,122 $ ( 11,982 ) Interest and fees on loans $ 15,209 $ 29,731 $ ( 14,522 ) Total $ ( 8,860 ) $ 3,122 $ ( 11,982 ) Total $ 15,209 $ 29,731 $ ( 14,522 ) The gain and loss recognized through various derivative instruments on the consolidated statements of income are shown in the table below. Location of Gain/(Loss) Recognized in the Consolidated Statements of Income Amount of Gain/(Loss) Recognized in Income on Derivative For the Years Ended December 31 (In thousands) 2025 2024 2023 Derivative instruments: Interest rate swaps Other non-interest income $ 2,111 $ 2,672 $ 3,642 Interest rate caps Other non-interest income — — 86 Credit risk participation agreements Other non-interest income 256 ( 109 ) 60 Foreign exchange contracts Other non-interest income ( 84 ) 23 ( 14 ) Mortgage loan commitments Loan fees and sales 75 ( 29 ) 87 Mortgage loan forward sale contracts Loan fees and sales 2 5 8 Forward TBA contracts Loan fees and sales ( 231 ) 80 53 Total $ 2,129 $ 2,642 $ 3,922 The following table shows the extent to which assets and liabilities relating to derivative instruments have been offset in the consolidated balance sheets. It also provides information about these instruments which are subject to an enforceable master netting arrangement, irrespective of whether they are offset, and the extent to which the instruments could potentially be offset. Also shown is collateral received or pledged in the form of other financial instruments, which is generally cash or marketable securities. The collateral amounts in this table are limited to the outstanding balances of the related asset or liability (after netting is applied); thus amounts of excess collateral are not shown. Most of the derivatives in the following table were transacted under master netting arrangements that contain a conditional right of offset, such as close-out netting, upon default. 135 Table of Contents While the Company is party to master netting arrangements with most of its swap counterparties, the Company does not offset derivative assets and liabilities under these arrangements on its consolidated balance sheets. Collateral exchanged between the Company and dealer bank counterparties is generally subject to thresholds and transfer minimums, and usually consist of marketable securities. By contract, this collateral may be sold or re-pledged by the secured party until recalled at a subsequent valuation date by the pledging party. For those swap transactions requiring central clearing, the Company posts cash or securities to its clearing agent. Collateral positions are valued daily, and adjustments to amounts received and pledged by the Company are made as appropriate to maintain proper collateralization for these transactions. Swap derivative transactions with customers are generally secured by rights to non-financial collateral, such as real and personal property, which is not shown in the table below. Gross Amounts Not Offset in the Balance Sheet (In thousands) Gross Amount Recognized Gross Amounts Offset in the Balance Sheet Net Amounts Presented in the Balance Sheet Financial Instruments Available for Offset Collateral Received/Pledged Net Amount December 31, 2025 Assets: Derivatives subject to master netting agreements $ 51,217 $ — $ 51,217 $ ( 10,642 ) $ ( 29,609 ) $ 10,966 Derivatives not subject to master netting agreements 204 — 204 Total derivatives $ 51,421 $ — $ 51,421 Liabilities: Derivatives subject to master netting agreements $ 18,400 $ — $ 18,400 $ ( 10,642 ) $ — $ 7,758 Derivatives not subject to master netting agreements 395 — 395 Total derivatives $ 18,795 $ — $ 18,795 December 31, 2024 Assets: Derivatives subject to master netting agreements $ 62,437 $ — $ 62,437 $ ( 3,780 ) $ ( 54,620 ) $ 4,037 Derivatives not subject to master netting agreements 211 — 211 Total derivatives $ 62,648 $ — $ 62,648 Liabilities: Derivatives subject to master netting agreements $ 26,848 $ — $ 26,848 $ ( 3,780 ) $ — $ 23,068 Derivatives not subject to master netting agreements 115 — 115 Total derivatives $ 26,963 $ — $ 26,963 20. Resale and Repurchase Agreements The Company regularly enters into resale and repurchase agreement transactions with other financial institutions and with its own customers. Resale and repurchase agreements are agreements to purchase/sell securities subject to an obligation to resell/repurchase the same or similar securities. They are accounted for as secured lending and collateralized borrowing (e.g. financing transactions), not as true sales and purchases of the underlying collateral securities. Some of the resale and repurchase agreements were transacted under master netting arrangements that contain a conditional right of offset, such as close-out netting, upon default. The security collateral accepted or pledged in resale and repurchase agreements with other financial institutions may be sold or re-pledged by the secured party, but is usually delivered to and held by third party trustees. The Company generally retains custody of securities pledged for repurchase agreements with its customers. Additional information about the Company's repurchase agreements is included in Note 8. The following table shows the extent to which resale agreement assets and repurchase agreement liabilities with the same counterparty have been offset on the consolidated balance sheets, in addition to the extent to which they could potentially be offset. Also shown is collateral received or pledged, which consists of marketable securities. The collateral amounts in the 136 Table of Contents table are limited to the outstanding balances of the related asset or liability (after offsetting is applied); thus amounts of excess collateral are not shown. Gross Amounts Not Offset in the Balance Sheet (In thousands) Gross Amount Recognized Gross Amounts Offset on the Balance Sheet Net Amounts Presented on the Balance Sheet Financial Instruments Available for Offset Securities Collateral Received/Pledged Unsecured amount December 31, 2025 Total resale agreements, subject to master netting arrangements $ 850,000 $ — $ 850,000 $ — $ ( 850,000 ) $ — Total repurchase agreements, subject to master netting arrangements 2,861,016 — 2,861,016 — ( 2,861,016 ) — December 31, 2024 Total resale agreements, subject to master netting arrangements $ 625,000 $ — $ 625,000 $ — $ ( 625,000 ) $ — Total repurchase agreements, subject to master netting arrangements 2,803,043 — 2,803,043 — ( 2,803,043 ) — The table below shows the remaining contractual maturities of repurchase agreements outstanding at December 31, 2025 and 2024, in addition to the various types of marketable securities that have been pledged by the Company as collateral for these borrowings. Remaining Contractual Maturity of the Agreements (In thousands) Overnight and continuous Up to 90 days Greater than 90 days Total December 31, 2025 Repurchase agreements, secured by: U.S. government and federal agency obligations $ 503,061 $ — $ — $ 503,061 Government-sponsored enterprise obligations 10,539 — — 10,539 Agency mortgage-backed securities 1,647,928 4,600 26,750 1,679,278 Non-agency mortgage-backed securities 21,970 — — 21,970 Asset-backed securities 453,827 29,656 21,226 504,709 Other debt securities 141,459 — — 141,459 Total repurchase agreements, gross amount recognized $ 2,778,784 $ 34,256 $ 47,976 $ 2,861,016 December 31, 2024 Repurchase agreements, secured by: U.S. government and federal agency obligations $ 518,937 $ — $ — $ 518,937 Government-sponsored enterprise obligations 9,969 — — 9,969 Agency mortgage-backed securities 1,641,156 9,600 22,250 1,673,006 Non-agency mortgage-backed securities 24,273 — — 24,273 Asset-backed securities 462,841 30,623 18,227 511,691 Other debt securities 65,167 — — 65,167 Total repurchase agreements, gross amount recognized $ 2,722,343 $ 40,223 $ 40,477 $ 2,803,043 137 Table of Contents 21. Commitments, Contingencies and Guarantees The Company engages in various transactions and commitments with off-balance sheet risk in the normal course of business to meet customer financing needs. The Company uses the same credit policies in making the commitments and conditional obligations described below as it does for on-balance sheet instruments. The following table summarizes these commitments at December 31: (In thousands) 2025 2024 Commitments to extend credit: Credit card $ 6,110,965 $ 5,796,427 Other unfunded loan commitments 9,696,270 9,616,132 Standby letters of credit, net of conveyance to other financial institutions 648,168 561,505 Commercial letters of credit 1,698 2,728 Commitments to extend credit are legally binding agreements to lend to a borrower providing there are no violations of any conditions established in the contract. As many of the commitments are expected to expire without being drawn upon, the total commitment does not necessarily represent future cash requirements. Refer to Note 2 on Loans and Allowance for Credit Losses for further discussion. The Company, as a provider of financial services, routinely issues financial guarantees in the form of financial and performance standby letters of credit. Standby letters of credit are contingent commitments issued by the Company generally to guarantee the payment or performance obligation of a customer to a third party. While these represent a potential cash outflow by the Company, a significant amount of the commitments may expire without being drawn upon. To mitigate the potential loss exposure, the Company involves other financial institutions to participate in certain standby letters of credit. Even with such participation, the Company remains liable for the full amount of the standby letters of credit to the third party. The Company has recourse against the customer for any amount it is required to pay to a third party under a standby letter of credit. The standby letters of credit are subject to the same credit policies, underwriting standards and approval process as loans made by the Company. Most of the standby letters of credit are secured, and in the event of nonperformance by the customer, the Company has rights to the underlying collateral, which could include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. At December 31, 2025, the Company had recorded a liability of $ 4.4 million, representing the carrying value of the guarantee obligations associated with the standby letters of credit. This amount will be accreted into income over the remaining life of the respective commitments. The contractual amount of these letters of credit, which represents the maximum potential future payments guaranteed by the Company, was $ 669.7 million at December 31, 2025. Commercial letters of credit act as a means of ensuring payment to a seller upon shipment of goods to a buyer. The majority of commercial letters of credit issued are used to settle payments in international trade. Typically, letters of credit require presentation of documents which describe the commercial transaction, evidence shipment, and transfer title. The Company regularly purchases various state tax credits arising from third-party property redevelopment. These tax credits are either resold to third parties for a profit or retained for use by the Company. During 2025, the Company purchased and sold state tax credits amounting to $ 179.4 million and $ 178.6 million, respectively. At December 31, 2025, the Company had outstanding purchase commitments totaling $ 165.2 million that it expects to fund in 2026. The remaining purchase commitments amount to $ 505.9 million and are projected to be funded from 2027 through 2035. The Company periodically enters into credit risk participation agreements (RPAs) as a guarantor to other financial institutions, in order to mitigate those institutions’ credit risk associated with interest rate swaps with third parties. The RPA stipulates that, in the event of default by the third party on the interest rate swap, the Company will reimburse a portion of the loss borne by the financial institution. These interest rate swaps are normally collateralized (generally with real property, inventories and equipment) by the third party, which limits the credit risk associated with the Company’s RPAs. The third parties usually have other borrowing relationships with the Company. The Company monitors overall borrower collateral, and at December 31, 2025, believes sufficient collateral is available to cover potential swap losses. The RPAs are carried at fair value throughout their term, with all changes in fair value, including those due to a change in the third party’s creditworthiness, recorded in current earnings. The terms of the RPAs, which correspond to the terms of the underlying swaps, range from 1 to 15 years. At December 31, 2025, the fair value of the Company's guarantee liability RPAs was $ 77 thousand, and the notional 138 Table of Contents amount of the underlying swaps was $ 283.3 million. The maximum potential future payment guaranteed by the Company cannot be readily estimated and is dependent upon the fair value of the interest rate swaps at the time of default. The Company has various legal proceedings pending at December 31, 2025, arising in the normal course of business. While some matters pending against the Company specify damages claimed by plaintiffs, others do not seek a specified amount of damages or are at very early stages of the legal process. The Company records a loss accrual for all legal and regulatory matters for which it deems a loss is probable and can be reasonably estimated. Some matters, which are in the early stages, have not yet progressed to the point where a loss amount can be determined to be probable and estimable. 22. Related Parties The Company's Chief Executive Officer, its Executive Chairman, and its former Vice Chairman are directors of Tower Properties Company (Tower) and, together with members of their immediate families, beneficially own approximately 76 % of the outstanding stock of Tower. At December 31, 2025, Tower owned 284,092 shares of Company stock. Tower is primarily engaged in the business of owning, developing, leasing and managing real property. During the years ended 2024 and 2023, the Company maintained property services contracts with Tower Properties, under which Tower Properties provided property management services on three Company-owned office buildings and related parking garages in downtown Kansas City. The Company ended its property management services contract with Tower as of December 31, 2024. (In thousands) 2025 2024 2023 Leasing agent fees $ — $ 16 $ 434 Operation of parking garages — 125 111 Building management fees — 2,342 2,202 Property construction management fees — 165 360 Project consulting fees — — 419 Dividends paid on Company stock held by Tower — 278 265 Total $ — $ 2,926 $ 3,791 Tower has a $ 13.5 million line of credit with the Bank which is subject to normal credit terms and had a variable interest rate. The line of credit is collateralized by Company stock and based on collateral value has a maximum borrowing amount of approximately $ 9.7 million at December 31, 2025. There were no borrowings under this line during 2025, 2024 or 2023, and no balance was outstanding at December 31, 2025, 2024 or 2023. There were no letters of credit outstanding during 2025, 2024 or 2023, and thus, no fees were received during these periods. From time to time, the Bank extended additional credit to Tower for construction and development projects. No construction loans were outstanding during 2025, 2024 and 2023. Tower leased office space in the Kansas City bank headquarters building owned by the Company during 2024 and 2023. Rent paid to the Company totaled $ 81 thousand in 2024 and $ 82 thousand in 2023, at $ 17.69 and $ 17.50 per square foot, for years 2024 and 2023, respectively. Tower was no longer a lessee of the Company as of January 1, 2025. Directors of the Company and their beneficial interests have deposit accounts with the Bank and may be provided with cash management and other banking services, including loans, in the ordinary course of business. Such loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unrelated persons and did not involve more than the normal risk of collectability. See Note 2 Loans and Allowance for Credit Losses for additional information for loans to directors and executive officers of the Company and the Bank, and to their affiliates. 139 Table of Contents 23. Parent Company Condensed Financial Statements Following are the condensed financial statements of Commerce Bancshares, Inc. (Parent only) for the periods indicated: Condensed Balance Sheets December 31 (In thousands) 2025 2024 Assets Investment in consolidated subsidiaries: Bank $ 3,280,689 $ 2,697,961 Non-banks 203,879 187,404 Cash 248,855 357,046 Investment securities: Available for sale debt 941 5,381 Equity 12,337 12,750 Note receivable due from bank subsidiary 50,000 50,000 Advances to subsidiaries, net of borrowings 550 1,500 Income tax receivable and deferred tax assets 7,546 9,131 Other assets 34,004 31,164 Total assets $ 3,838,801 $ 3,352,337 Liabilities and shareholders’ equity Pension obligation $ 1,277 $ 3,220 Other liabilities 46,153 39,236 Total liabilities 47,430 42,456 Shareholders’ equity 3,791,371 3,309,881 Total liabilities and shareholders’ equity $ 3,838,801 $ 3,352,337 Condensed Statements of Income For the Years Ended December 31 (In thousands) 2025 2024 2023 Income Dividends received from consolidated bank subsidiary $ 240,002 $ 215,001 $ 280,000 Earnings of consolidated subsidiaries, net of dividends 338,060 191,421 203,570 Interest and dividends on investment securities 2,084 2,282 2,905 Management fees charged to subsidiaries 45,776 42,296 47,773 Investment securities gains (losses) 1,408 176,863 ( 621 ) Net interest income on advances and note to subsidiaries 1,996 2,415 2,636 Other 4,099 3,294 2,842 Total income 633,425 633,572 539,105 Expense Salaries and employee benefits 44,778 44,520 41,549 Professional and other services 3,564 3,495 3,580 Data processing fees paid to affiliates 3,041 3,316 3,347 Donation to related charitable foundation — 5,000 — Other 19,525 15,390 16,264 Total expense 70,908 71,721 64,740 Income tax (benefit) expense ( 3,734 ) 35,520 ( 2,695 ) Net income $ 566,251 $ 526,331 $ 477,060 140 Table of Contents Condensed Statements of Cash Flows For the Years Ended December 31 (In thousands ) 2025 2024 2023 Operating Activities Net income $ 566,251 $ 526,331 $ 477,060 Adjustments to reconcile net income to net cash provided by operating activities: Earnings of consolidated subsidiaries, net of dividends ( 338,060 ) ( 191,421 ) ( 203,570 ) Other adjustments, net 10,312 ( 165,330 ) 5,749 Net cash provided by (used in) operating activities 238,503 169,580 279,239 Investing Activities (Increase) decrease in investment in subsidiaries, net ( 10 ) — 4,348 Proceeds from sales of investment securities — 176,561 — Proceeds from maturities/pay downs of investment securities 7,433 9 15 Purchases of investment securities ( 862 ) ( 1,062 ) ( 902 ) (Increase) decrease in advances to subsidiaries, net 950 300 18,729 Net purchases of building improvements and equipment ( 38 ) ( 5 ) ( 490 ) Net cash provided by (used in) investing activities 7,473 175,803 21,700 Financing Activities Purchases of treasury stock ( 207,567 ) ( 171,407 ) ( 76,890 ) Issuance of stock under equity compensation plans ( 4 ) — ( 3 ) Cash dividends paid on common stock ( 146,596 ) ( 139,503 ) ( 134,734 ) Net cash provided by (used in) financing activities ( 354,167 ) ( 310,910 ) ( 211,627 ) Increase (decrease) in cash ( 108,191 ) 34,473 89,312 Cash at beginning of year 357,046 322,573 233,261 Cash at end of year $ 248,855 $ 357,046 $ 322,573 Income tax payments (receipts), net $ ( 4,430 ) $ 34,975 $ ( 3,254 ) Dividends paid by the Parent to its shareholders were substantially provided from Bank dividends. The Bank may distribute common dividends without prior regulatory approval, provided that the dividends do not exceed the sum of net income for the current year and retained net income for the preceding two years, subject to maintenance of minimum capital requirements. The Parent charges fees to its subsidiaries for management services provided, which are allocated to the subsidiaries based on total assets and number of employees. The Parent makes cash advances to its private equity subsidiary for general short-term cash flow purposes. Advances may be made to the Parent by its subsidiary bank for temporary investment of idle funds. Interest on such advances is based on market rates. The Bank has $ 50.0 million of borrowings from the Parent as part of its strategy to manage FDIC insurance premiums. The note has a rolling 13 month maturity, and the interest rate is a variable rate equal to the one year treasury rate. For the past several years, the Parent has maintained a $ 20.0 million line of credit for general corporate purposes with the Bank. The Parent has not borrowed under this line during the past three years. The Parent has commitments to fund an additional $ 44.7 million relating to private equity investments over the next several years. The investments are made directly by the Parent and through non-bank subsidiaries. At December 31, 2025, the fair value of the investment securities held by the Parent consisted of investments of $ 941 thousand in corporate bonds, $ 4.6 million in common stock with readily determinable fair values, and $ 7.7 million in equity securities that do not have readily determinable fair values. The Parent's common stock investment of $ 4.6 million held at December 31, 2025 was entirely comprised of its holdings in FineMark Holdings, Inc. Those shares are no longer held after the Company's acquisition of FineMark in January 2026. The Parent also holds 411,723 shares of Visa Class B-2 common stock, which are discussed in Note 3. During 2024, the Parent sold Visa Class A common stock resulting in proceeds of $ 176.6 million, also discussed in Note 3. 141 Table of Contents 24. Subsequent Events On June 16, 2025, the Company and FineMark Holdings, Inc. ("FineMark") announced that it had entered into a definitive merger agreement in which the Company would acquire all outstanding shares of FineMark in an all-stock transaction ("Merger"). On January 1, 2026 , the Company completed its acquisition FineMark, and immediately after the Merger, FineMark's wholly-owned subsidiary, FineMark National Bank & Trust merged into the Bank, with the Bank continuing as the surviving bank. Total consideration for the acquisition was $ 519.9 million, consisting of 9.9 million shares of the Company's common stock (valued at the acquisition-date fair value of $ 52.34 per share), plus cash in lieu of fractional shares. Prior to the acquisition date, the Company held a non-controlling equity interest in FineMark, and in accordance with ASC 805, this previously held interest was remeasured to its acquisition-date fair value of $ 4.6 million. The total acquisition-date fair value of the business combination was $ 524.5 million, comprised of the $ 519.9 million of consideration transferred and the $ 4.6 million fair value of the Company's previously held equity interest. Under the terms of the merger agreement, each outstanding FineMark common stock share was converted into .7245 shares of the Company's common stock, and each outstanding share of FineMark's preferred stock was converted into 36.3636 shares of FineMark common stock, prior to conversion into .7245 shares of the Company's common stock. Acquisition-related costs of $ 5.6 million for the year ending December 31, 2025 were recognized primarily in Professional and other services expense line of the Company's Consolidated Statements of Income. The acquisition of FineMark will be accounted for as a business combination using the purchase method of accounting in accordance with FASB ASC Topic 805, Business Combinations, which requires assets acquired and liabilities assumed to be recognized at fair value as of the acquisition date. The valuation of assets acquired and liabilities assumed has not yet been finalized. Any necessary adjustments from preliminary estimates will be finalized within one year from the date of acquisition. Measurement period adjustments will be recorded in the period in which they are determined, as if they had been completed at the acquisition date. Due to the timing of the acquisition, the Company has performed limited valuation procedures, and the valuation of all assets acquired and liabilities assumed is not yet complete. 142 Table of Contents Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE There were no changes in or disagreements with accountants on accounting and financial disclosure.