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Item 7. Management’s Discussion and Analysis

2026-03-02 compared with 2025-02-27 · 319 added, 358 removed, 1027 unchanged (40% of the section changed)

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We are subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks, the New Hampshire Banking Department, the FDIC, the Federal Reserve Board and the Consumer Financial Protection Bureau.

Our business consists of a full range of banking, lending (commercial, residential and consumer), savings and small business offerings, including our wealth management and trust operations that we conduct through our Cambridge Trust Wealth Management division.

Previously, our wealth management and trust operations were conducted through Eastern Wealth Management.

Following our merger with Cambridge Bancorp, described further below, the wealth management divisions of both banks now operate under the “Cambridge Trust Wealth Management, a division of Eastern Bank,” brand name.

On July 12, 2024, we completed our previously announced merger with Cambridge and Cambridge Trust.

In accordance with the terms of the definitive merger agreement, through which we agreed to acquire Cambridge through a merger with the Company as the surviving entity, each share of Cambridge common stock was exchanged for 4.956 shares of our common stock.

The transaction qualified as a tax-free reorganization for federal income tax purposes and provided Cambridge shareholders with a tax-free exchange of their shares of Cambridge common stock in exchange for our common stock as the consideration they received in the merger.

We issued 38.9 million shares of our common stock in the exchange which resulted in a transaction value of approximately $580.6 million based upon the closing price of our common stock on July 12, 2024 of $14.87 per share.

Cambridge, a Massachusetts corporation, was a federally registered bank holding company headquartered in Cambridge, Massachusetts.

Cambridge Trust, a Massachusetts-chartered trust company formed in 1890, was a wholly-owned subsidiary of Cambridge that operated through a network of 18 full-service banking offices in eastern Massachusetts and New Hampshire with $5.3 billion in total assets and $3.9 billion in deposits as of July 12, 2024.

Cambridge’s core services also included wealth management.

Through its wealth management group, which had offices in Massachusetts and New Hampshire, it offered comprehensive investment management, as well as trust administration, estate settlement, and financial planning services.

Cambridge had assets under management and administration of approximately $5.0 billion as of July 12, 2024.

Cambridge Trust’s wholly owned subsidiary, Cambridge Trust Company of New Hampshire Inc.

(“CTCNH”), offered trust services pursuant to New Hampshire law and was regulated by the New Hampshire Banking Department.

CTCNH is now a subsidiary of Eastern Bank.

In recent years, we managed our business under two business segments:

our banking business and our insurance agency business.

On October 31, 2023, we sold substantially all of the assets and transferred certain liabilities of our insurance agency business.

In the third quarter of 2023, following management’s decision to sell our insurance agency business, we reclassified the related assets and liabilities to assets and liabilities of discontinued operations, respectively, on our Consolidated Balance Sheets.

Accordingly, the results of discontinued operations were reclassified to “net income from discontinued operations” on our Consolidated Statements of Income.

For additional discussion of discontinued operations, refer to Note 23, “Discontinued Operations” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

The following discussion excludes amounts reported as discontinued operations.

Net income from continuing operations for the year ended December 31, 2024, computed in accordance with GAAP, was $119.6 million, as compared to a net loss from continuing operations of $62.7 million for the year ended December 31, 2023.

The net loss from continuing operations for the year ended December 31, 2023 and subsequent increase to net income during the year ended December 31, 2024 was primarily due to the sale of available for sale securities at a loss in connection with our balance sheet repositioning completed in March 2023.

Partially offsetting the increase to net income for the year ended December 31, 2024 were one-time expenses associated with our merger with Cambridge including the allowance for loan losses associated with non-purchased credit deteriorated (“PCD”) loans, which was recorded subsequent to the completion of the

merger and is hereafter referred to as the “non-PCD loan day-2” provision for the allowance for loan losses, and merger and acquisition expenses recorded.

Net income from continuing operations for the year ended December 31, 2024 and net loss from continuing operations for the year ended December 31, 2023 included items that our management considers non-core, which management excludes for purposes of assessing our operating net income, a non-GAAP financial measure.

Our business consists of a full range of banking, lending (commercial, residential and consumer), savings and small business offerings, including our wealth management and trust operations that we conduct under our “Cambridge Trust Wealth Management, a division of Eastern Bank” brand name (“Cambridge Trust Wealth Management division”).

On November 1, 2025, we completed our previously announced merger with HarborOne.

In accordance with the terms of the definitive merger agreement, each share of HarborOne common stock was exchanged for either (i) 0.765 shares of Company common stock and cash in lieu of any fractional share or (ii) $12.00 in cash subject to allocation procedures.

We issued 26.9 million shares of our common stock in the exchange and paid aggregate cash consideration of $74.6 million, which resulted in a transaction value of approximately $550.1 million based upon the closing price of our common stock on October 31, 2025 of $17.53 per share.

HarborOne, a Massachusetts corporation, was a federally registered bank holding company headquartered in Brockton, Massachusetts.

HarborOne Bank, a Massachusetts-chartered trust company formed in 1917, was a wholly-owned subsidiary of HarborOne that operated through a network of 30 full-service banking offices in Massachusetts and Rhode Island, and commercial lending offices in Boston, Massachusetts and Providence, Rhode Island, with $5.5 billion in total assets and $4.3 billion in deposits as of October 31, 2025.

Net income from continuing operations, computed in accordance with GAAP, was $88.2 million and $119.6 million for the years ended December 31, 2025 and 2024, respectively.

The decrease was primarily due to losses on sales of securities during the year ended December 31, 2025 which exceeded losses on sales of securities for the year ended December 31, 2024.

Partially offsetting the increase in losses on sales of securities was a decrease in one-time expenses during the year ended December 31, 2025 compared to the year ended December 31, 2024 associated with our mergers with HarborOne and Cambridge.

One-time expenses during the year ended December 31, 2024 included the initial allowance for loan losses associated with non-purchased credit deteriorated (“PCD”) loans, which was recorded subsequent to the completion of the merger through earnings and is hereafter referred to as the “non-PCD loan day-2” provision for the allowance for loan losses.

Net income from continuing operations for the year ended December 31, 2025 and 2024, included items that our management considers non-core, which management excludes for purposes of assessing our operating net income, a non-GAAP financial measure.

Operating net income for the year ended December 31, 2025 was $318.0 million compared to $196.6 million for the year ended December 31, 2024.

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The following chart shows our basic earnings per share from continuing operations on a GAAP and operating (non-GAAP) basis over the past four years (refer to the “Non-GAAP Financial Measures” section below for a reconciliation of GAAP earnings to operating earnings):

Earnings (loss) per share from continuing operations, on a GAAP basis, increased from $(0.39) for the year ended December 31, 2023 to $0.66 for the year ended December 31, 2024.

The loss per share from continuing operations for the year ended December 31, 2023 was a result of a loss on sale of AFS securities in March 2023, which was part of our balance sheet repositioning, as described above.

Operating earnings per share increased from $1.01 for the year ended December 31, 2023 to $1.06 for the year ended December 31, 2024, a 5.8% increase.

The increase was primarily due to an increase net interest income and noninterest income on an operating basis which were partially offset by an increase in noninterest expense on an operating basis.

Earnings per share from continuing operations, on a GAAP basis, decreased from $0.66 for the year ended December 31, 2024 to $0.43 for the year ended December 31, 2025.

Operating earnings per share, on a basic basis, increased from $1.09 for the year ended December 31, 2024 to $1.57 for the year ended December 31, 2025, a 44.2% increase.

The increase was primarily due to an increase in net interest income and noninterest income on an operating basis which were partially offset by an increase in noninterest expense on an operating basis.

Refer to the “Results of Operations” section below for additional discussion of the changes in net interest income, noninterest income and noninterest expense.

The following chart shows our efficiency ratio on a GAAP and operating (non-GAAP) basis over the past five years (refer to the “Non-GAAP Financial Measures” section below for additional information on the determination of each measure):

Both the GAAP efficiency ratio and non-GAAP operating efficiency ratio decreased during the year ended December 31, 2024 compared to the year ended December 31, 2023.

The decrease in the GAAP efficiency ratio is primarily due to lower security losses during the year ended December 31, 2024 compared to year ended December 31, 2023.

The decrease in the non-GAAP operating efficiency ratio was primarily due to increased net interest income and increased noninterest income on an operating basis which increased at a greater rate than noninterest expenses on an operating basis.

The GAAP efficiency ratio increased during the year ended December 31, 2025 compared to the year ended December 31, 2024, which was primarily due to higher security losses during the year ended December 31, 2025 compared to year ended December 31, 2024.

The non-GAAP operating efficiency ratio decreased during the year ended December 31, 2025 compared to the year ended December 31, 2024, which was primarily due to increased net interest income.

Refer to the “Results of Operations” section below for additional discussion of the changes in net interest income, noninterest income and noninterest expense.

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At its meeting on September 18, 2024, the FOMC decided to lower the target range for the federal funds rate by 50 basis points from the range set at its July 26, 2023 meeting to a range of 4.75% to 5.00%.

At its meeting on November 7, 2024, the FOMC then decided to lower the target range for the federal funds rate by 25 basis points to a range of 4.50% to 4.75%.

At its most recent meeting on January 29, 2025, the FOMC decided to maintain the target range for the federal funds rate at the range established following its November 7, 2024 meeting and indicated, in considering the extent and timing of additional adjustments to the target range for the federal funds rate, it will carefully assess incoming data, the evolving outlook, and the balance of risks.

The FOMC further decided to lower the target range for the federal funds rate at each of its meetings held on November 7, 2024, December 18, 2024, September 17, 2025, October 29, 2025, and December 10, 2025, with the most recent change reducing the target range for the federal funds rate to a range of 3.50% to 3.75%.

At its most recent meeting on January 28, 2026 the FOMC decided to maintain the target range for the federal funds rate at the range set at its December 10, 2025 meeting and indicated, in considering additional adjustments to the target range for the federal funds rate, it will carefully assess incoming data, the evolving outlook, and the balance of risks.

The FOMC further indicated it is strongly committed to supporting maximum employment and reducing the annual inflation rate to its 2 percent objective.

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Accordingly, we present operating net income, noninterest income on an operating basis, noninterest expense on an operating basis, total operating revenue, operating earnings per share, tangible net income to average tangible shareholders’ equity, tangible operating net income to average tangible shareholders’ equity, tangible book value per share, and the operating efficiency ratio, each of which excludes the impact of such items because we believe such exclusion can provide greater visibility into our core business and underlying trends.

Such items that we do not consider to be core to our business include (i) income and expenses from investments held in rabbi trusts, (ii) gains and losses on sales of securities available for sale, net, (iii) gains and losses on the sale of other equity investments, (iv) gains and losses on the sale of other assets, (v) rabbi trust employee benefits expense, (vi) impairment charges on tax credit investments and associated tax credit benefits, (vii) expenses indirectly associated with our IPO, (viii) other real estate owned (“OREO”) gains, (ix) merger and acquisition expenses, including the “day-2” provision for allowance for loan losses for non-PCD acquired loans, (x) the stock donation to the Eastern Bank Foundation (the “Foundation”) in connection with our mutual-to-stock conversion and IPO, (xi) settlement of putative consumer class action litigation matters related to overdraft and non-sufficient fund fees, and associated settlement expenses, (xii) the non-cash pension settlement charge recognized related to our Defined Benefit Plan, and (xiii) certain discrete tax items.

Such items that we do not consider to be core to our business include (i) gains and losses on sales of securities available for sale, net, (ii) gains and losses on the sale of other equity investments, (iii) gains and losses on the sale of other assets, (iv) impairment charges on tax credit investments and associated tax credit benefits, (v) other real estate owned (“OREO”) gains and losses, (vi) merger and acquisition expenses, and (vii) certain discrete tax items.

We also present tangible shareholders’ equity, tangible assets, the ratio of tangible shareholders’ equity to tangible assets, average tangible shareholders’ equity, the ratios of tangible net income (loss) from continuing operations and tangible operating net income to average tangible shareholders’ equity and tangible book value per share, each of which excludes the impact of goodwill and other intangible assets, as we believe these financial measures provide investors with the ability to further assess our performance, identify trends in our core business and provide a comparison of our capital adequacy to other companies.

We have included the tangible ratios because management believes that investors may find it useful to have access to the same analytical tools used by management to assess performance and identify trends.

In the first quarter of 2025, we changed our computation of operating net income to exclude, as an adjustment to net income (loss) in arriving at operating net income, income from investments held in rabbi trust and rabbi trust employee benefit expense.

Management believes these changes result in a more meaningful measure of our financial performance and allow for better comparability to peer companies.

Prior period results have been recast for comparability purposes.

In the third quarter of 2024, we changed our return on average tangible shareholders’ equity and operating return on average tangible shareholders’ equity computations to utilize tangible net income (loss) from continuing operations and tangible operating net income, respectively, in the numerators of the computations.

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An item which we consider to be non-core and exclude when computing these non-GAAP financial measures can be of substantial importance to our results for any particular period.

In addition, our methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other companies to calculate the same or similar performance measures and, accordingly, our reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other companies.

In addition, our methodology for calculating non-GAAP financial measures may differ from the methodologies employed by other companies to calculate the

same or similar performance measures and, accordingly, our reported non-GAAP financial measures may not be comparable to the same or similar performance measures reported by other companies.

The following table summarizes the impact of non-core items recorded for the time periods indicated below and reconciles them to the most directly comparable GAAP financial measure.

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Noninterest income components:

(Income) losses from investments held in rabbi trusts (9,675) (9,305) 10,762

Losses on sales of securities available for sale, net 269,638 16,798 333,170

Gain on sale of other equity investment (1,584) (9,291) —

Losses (gains) on sales of other assets 2,620 3 (1,365)

Losses on sales of other assets 731 2,620 3

Noninterest expense components:

Rabbi trust employee benefit expense (income) 4,241 3,742 (5,161)

Impairment of lease acquired in a merger 3,469 — —

Merger and acquisition expenses (2)

Defined Benefit Plan settlement loss (2) — — 12,045

35,688 36,664 5,495

Total impact of non-GAAP adjustments 307,942 87,690 338,668

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Operating earnings per share, diluted (non-GAAP) $ 1.56 $ 1.08 $ 1.03

(1) Comprised of merger and acquisition expenses incurred related to our acquisitions of Cambridge and Century Bancorp, Inc.

Merger and acquisition expenses previously reported for the year ended December 31, 2022 related to acquisitions by Eastern Insurance Group were excluded from the above table as they were reclassified to discontinued operations.

Refer to Note 23, “Discontinued Operations” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K for additional discussion.

(2) Represents a non-cash settlement loss for the year ended December 31, 2022 related to the Defined Benefit Plan.

For additional information, refer to Note 15, “Employee Benefits” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

(3) The net tax benefit amount for the year ended December 31, 2023 primarily resulted from the sale of securities classified as available for sale in the first quarter of 2023 and a $23.7 million tax benefit resulting from the transfer of certain securities from Market Street Securities Corp., a wholly owned subsidiary which was liquidated during the first quarter of 2023, to Eastern Bank.

(1) The provision for non-PCD acquired loans for the year ended December 31, 2024 was recorded prior to our adoption of ASU 2025-08, Financial Instrument- Credit Losses (Topic 326):

Purchased Loans .

Refer to Note 2, “Summary of Significant Accounting Policies” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K for further discussion.

(2) Comprised of merger and acquisition expenses incurred related to our acquisitions of HarborOne and Cambridge.

(3) The net tax benefit associated with these items is generally determined by assessing whether each item is included or excluded from net taxable income and applying our combined statutory tax rate only to those items included in net taxable income.

The following table summarizes the impact of non-core items with respect to our total revenue, noninterest income (loss), noninterest expense and the efficiency ratio, which reconciles to the most directly comparable respective GAAP financial measure, for the periods indicated:

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Tax-equivalent adjustment (non-GAAP) (1)

20,512 18,620 17,181 12,736 6,093

Fully-taxable equivalent net interest income (non-GAAP) 849,097 626,217 567,590 580,790 435,920

Noninterest income (loss) (GAAP) 123,917 (237,753) 76,750 97,437 83,679

Income (losses) from investments held in rabbi trusts 9,675 9,305 (10,762) 10,217 10,337

Noninterest (loss) income (GAAP) (105,936) 123,917 (237,753) 76,750 97,437

(Losses) gains on sales of securities available for sale, net (269,638) (16,798) (333,170) (3,157) 1,166

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Noninterest expense (GAAP) $ 596,943 $ 508,368 $ 418,602 $ 388,649 $ 360,955

Rabbi trust employee benefit expense (income) 4,241 3,742 (5,161) 5,515 4,789

(Reversal of) impairment charge on tax credit investments — — — — (170)

Indirect IPO costs (2) — — — — 1,199

Impairment of lease acquired in a merger 3,469 — — — —

Merger and acquisition expenses (2)

35,688 36,664 5,495 — 35,456

Settlement and expenses for putative consumer class action matters — — — — 3,325

Defined Benefit Plan settlement loss — — — 12,045 —

Stock donation to the Eastern Bank Foundation — — — — 91,287

Gain on sale of other real estate owned — — — — 87

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(1) Interest income on tax-exempt loans and investment securities has been adjusted to an FTE basis using a marginal tax rate of 22.0% for the year ended December 31, 2025, 21.8% for the year ended December 31, 2024, 21.8% for the year ended December 31, 2023, 21.6% for the year ended December 31, 2022, and 21.0% for the year ended December 31, 2021.

(2) Reflects costs associated with the IPO that were indirectly related to the IPO and were not recorded as a reduction of capital.

(3) Comprised of merger and acquisition expenses incurred related to our acquisition of Cambridge and Century.

(2) Comprised of merger and acquisition expenses incurred related to our acquisition of HarborOne, Cambridge, and Century.

Merger and acquisition expenses previously reported for the years ended December 31, 2022 and 2021 related to acquisitions by Eastern Insurance Group were excluded from the above table as they were reclassified to discontinued operations.

Refer to Note 23, “Discontinued

Operations” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

The following table summarizes the calculation of our tangible shareholders’ equity, tangible assets, the ratio of tangible shareholders’ equity to tangible assets, and tangible book value per share, which reconciles to the most directly comparable respective GAAP measure, as of the dates indicated:

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Tangible book value per share (non-GAAP) $ 12.90 $ 11.98 $ 13.65 $ 10.28 $ 14.80

(1) Includes goodwill and other intangible assets which were associated with our insurance agency business for the years ended December 31, 2022, 2021, and 2020.

on average tangible shareholders’ equity”), which reconciles to the most directly comparable GAAP measure, for the periods indicated:

The following table summarizes the calculation of our average tangible shareholders’ equity and ratio of net income (loss) from continuing operations and operating net income to average tangible shareholders’ equity (“operating return on average tangible shareholders’ equity”), which reconciles to the most directly comparable GAAP measure, for the periods indicated:

As of December 31,

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Tax effect of amortization of intangible assets (2)

Tangible net (loss) income from continuing operations (non-GAAP) $ 130,094 $ (61,394) $ 187,372 $ 145,688 $ 9,289

9,433 4,036 509 337 62

Tangible net income (loss) from continuing operations (non-GAAP) $ 112,965 $ 130,094 $ (61,394) $ 187,372 $ 145,688

Operating net income (non-GAAP) (1)

$ 317,977 $ 196,620 $ 167,274 $ 195,950 $ 160,589

Amortization of intangible assets 34,179 14,569 1,804 1,198 219

Tax effect of amortization of intangible assets (2)

9,433 4,036 509 337 62

Tangible operating net income (non-GAAP) $ 342,723 $ 207,153 $ 168,569 $ 196,811 $ 160,746

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Operating return on average tangible shareholders’ equity (non-GAAP) 12.71 % 8.36 % 8.75 % 9.05 % 5.34 %

(1) Refer to the table above within this “Non-GAAP Financial Measures” section for a reconciliation of operating net income to net income.

(2) Includes goodwill and other intangible assets included in assets of discontinued operations within the Company’s Consolidated Balance Sheets for the years ended December 31, 2023, 2022, 2021, and 2020.

(3) The tax effect of amortization of intangible assets was calculated using our combined statutory tax rate of 27.7% for the year ended December 31, 2024, 28.2% for the year ended December 31, 2023 , and 28.1% for the years ended December 31, 2022 , 2021, and 2020.

(1) Refer to the table above within this “Non-GAAP Financial Measures” section for a reconciliation of operating net income to net income (loss).

(2) The tax effect of amortization of intangible assets was calculated using our combined statutory tax rate of 27.6% for the year ended December 31, 2025, 27.7% for the year ended December 31, 2024, 28.2% for the year ended December 31, 2023, and 28.1% for the years ended 2022 and 2021.

Financial Position

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Cash and cash equivalents

Total cash and cash equivalents increased by $313.8 million, or 45.3%, to $1.0 billion at December 31, 2024 from $693.1 million at December 31, 2023.

This increase was primarily due to proceeds from the sale of AFS securities of $1.1 billion and proceeds from maturities and principal paydowns of AFS and HTM securities of $0.4 billion.

Partially offsetting these increases were net repayments of FHLB advances of $739.9 million, which includes repayment of advances assumed in connection with our merger with Cambridge, a net decrease in deposits, excluding deposits acquired from Cambridge, of $178.3 million, and a net increase in gross loans, excluding loans acquired from Cambridge, of $171.0 million during the year ended December 31, 2024.

For further discussion of the change in securities, loans, and deposits, refer to the later “Securities,” “Loans,” and “Deposits” sections in this Item 7.

For further information regarding our merger with Cambridge, refer to Note 3, “Mergers and Acquisitions” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

Total cash and cash equivalents decreased by $690.0 million, or 68.5%, to $0.3 billion at December 31, 2025 from $1.0 billion at December 31, 2024.

This decrease was primarily due to an increase in gross loans of $1.0 billion, excluding loans acquired from HarborOne, and a decrease in total deposits of $181.8 million, excluding deposits acquired from HarborOne.

Also contributing to the overall decrease were net repayments of FHLB advances of $369.3 million, which includes repayment of advances assumed in connection with our merger with HarborOne.

For further discussion of the change in securities, loans, and deposits, refer to the later “Loans,” and “Deposits” sections in this Item 7.

For further information regarding our merger with HarborOne, refer to Note 3, “Mergers and Acquisitions” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

Our current investment policy authorizes us to invest in various types of investment securities and liquid assets, including U.S.

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government securities:

government securities consists of U.S.

As of December 31, 2025, our U.S.

government securities consisted of U.S.

Treasury securities.

As of December 31, 2024, our U.S.

government securities consisted of U.S.

Agency bonds and U.S.

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Investments in residential mortgage-backed securities involve a risk that actual payments will be greater or less than the prepayment rate estimated at the time of purchase, which may require adjustments to the amortization of any premium or accretion of any discount relating to such interests, thereby affecting the net yield on our securities.

We periodically review current prepayment speeds to determine whether prepayment estimates require modification that could cause amortization or

accretion adjustments.

We periodically review current prepayment speeds to determine whether prepayment estimates require modification that could cause amortization or accretion adjustments.

There is also reinvestment risk associated with the cash flows from such securities.

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Government-sponsored commercial mortgage-backed securities 185,185 189,006

State and municipal bonds and obligations 167,346 —

Corporate bonds 36,884 —

Total held to maturity securities, at amortized cost 599,557 420,715

Total $ 4,425,126 $ 4,442,313

Our securities portfolio has decreased $0.4 billion, or 8.5%, to $4.4 billion at December 31, 2024 from $4.9 billion at December 31, 2023.

This decrease was primarily due to sales of AFS securities of $1.1 billion and maturities and principal paydowns of AFS and HTM securities of $0.4 billion.

Included in this activity are principal paydowns and proceeds from the sale of securities acquired in connection with our merger with Cambridge of $883.0 million, representing all of the securities acquired at fair value.

All acquired securities paid down or were sold immediately following the completion of the merger.

Our securities portfolio has remained consistent with a balance of $4.4 billion at December 31, 2025 and 2024.

This consistency was due to the offsetting effect of sales of AFS securities of $1.6 billion, AFS and HTM maturities and principal paydowns of $0.5 billion, and purchases of AFS and HTM securities of $1.4 billion.

Included in this activity are principal paydowns and proceeds from the sale of securities acquired in connection with our merger with HarborOne of $298.3 million, representing substantially all of the securities acquired at fair value.

All acquired securities, with the exception of two corporate bonds, paid down or were sold immediately following the completion of the merger.

No gain or loss was recognized upon the sale as the securities were marked to fair value in connection with our purchase accounting based upon quoted sale prices.

Partially offsetting these items were purchases of AFS securities of $199.5 million.

We did not have trading investments at December 31, 2025 and 2024.

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Government-sponsored commercial mortgage-backed securities 2.10 3.94 1.98 2.02 3.02

Agency bonds — 1.56 — — 1.56

Treasury securities 4.19 — — — 4.19

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Government-sponsored commercial mortgage-backed securities — 2.16 2.35 — 2.21

State and municipal bonds and obligations — — — 5.54 5.54

Corporate bonds — 7.35 7.10 — 7.11

Total held to maturity securities — % 2.20 % 4.23 % 4.05 % 3.67 %

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The yield on tax-exempt obligations of states and political subdivisions has been adjusted to a fully-taxable equivalent (“FTE”) basis by adjusting tax-exempt income upward by an amount equivalent to the prevailing federal income taxes that would have been paid if the income had been fully taxable.

The following table shows the composition of our loan portfolio, by category, as of the dates indicated, and the balance of loans, by category, that were acquired in connection with our merger with Cambridge as of the merger date of July 12, 2024:

As of December 31, Cambridge Acquired Loan Balances Organic Change

As of December 31, HarborOne Acquired Loan Balances Organic Change

2025 2024 Change ($) Amount ($) Percentage (%)

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Our loans increased $5.5 billion, or 30.4%, to $23.6 billion at December 31, 2025 from $18.1 billion at December 31, 2024.

The increase as of December 31, 2024 was primarily due to loans acquired in connection with our merger with Cambridge.

The increase as of December 31, 2025 was primarily due to loans acquired in connection with our merger with HarborOne.

Refer to Note 3, “Mergers and Acquisitions” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K for additional discussion.

Excluding the addition of acquired loans, our gross loans increased $171.0 million, or 1.2%, which was primarily attributable to increased balances of business banking and consumer home equity loans.

• Excluding Cambridge-acquired loans, our business banking portfolio increased by $242.0 million, or 22.3%, from December 31, 2023 to December 31, 2024 which was primarily due to transfers from our commercial and industrial and commercial real estate portfolios.

These transfers contributed to an overall decrease in the total balance of our commercial and industrial and commercial real estate portfolios and were partially offset by originations in those portfolios.

In the normal course of business, loans are transferred from our commercial and industrial and commercial real estate portfolios to our business banking portfolio once the loan balances reach a certain dollar threshold.

• Excluding Cambridge-acquired loans, our consumer home equity portfolio increased by $89.4 million, or 7.4%, from December 31, 2023 to December 31, 2024 which was primarily due to additional draws by borrowers on home equity lines of credit.

Excluding the addition of acquired loans, our gross loans increased $1.0 billion, or 5.6%, which was primarily attributable to continued investment in resources targeted to grow our commercial and industrial loan portfolio and an increase in our commercial real estate investment loans driven by steady growth in our multifamily property type segment.

We believe that our commercial loan portfolio composition is relatively diversified in terms of industry sectors, property types and various lending specialties.

As of December 31, 2024, the amortized cost balances of concentrations in our commercial loan portfolios were as follows:

As of December 31, 2025 and 2024, the amortized cost balances of concentrations in our commercial loan portfolios were as follows:

Commercial and Industrial

Balance Percentage (%)

2025 2024 (1)

Balance Percentage (%) Balance Percentage (%)

(Dollars in thousands)

Educational services $ 694,739 21.2 %

Real estate 342,537 10.5 %

Professional, scientific, and technical services 326,486 10.0 %

Wholesale trade 279,947 8.6 %

Education $ 754,918 17.6 % $ 694,739 21.3 %

Accommodation 557,724 13.0 % 266,386 8.2 %

Wholesale Trade 535,559 12.5 % 279,947 8.6 %

Professional and Scientific 377,082 8.8 % 326,486 10.0 %

Real Estate 347,760 8.1 % 342,537 10.5 %

Health Care 231,490 5.4 % 164,557 5.0 %

Finance and Insurance 229,626 5.3 % 174,313 5.3 %

Admin support 169,153 5.2 %

Healthcare 164,557 5.0 %

Transportation 150,465 4.6 %

Utilities 209,697 4.9 % 146,716 4.5 %

Manufacturing 207,666 4.8 % 114,510 3.5 %

Transportation 190,886 4.4 % 150,465 4.6 %

Admin Support 187,896 4.4 % 169,153 5.2 %

Other industries 465,398 10.8 % 436,766 13.3 %

Total portfolio $ 4,295,702 100.0 % $ 3,266,575 100.0 %

(1) Certain loan property types, previously reported separately in our 2024 10-K, were combined to align with our presentation as of December 31, 2025.

Commercial Real Estate

Balance Percentage (%)

2025 2024 (1)

Balance Percentage (%) Balance Percentage (%)

(Dollars in thousands)

Multi-family $ 2,045,617 28.9 %

Industrial/warehouse 746,945 10.6 %

Multifamily $ 3,658,965 38.9 % $ 2,897,232 41.1 %

Retail 1,246,853 13.2 % 963,192 13.7 %

Office 1,224,657 13.0 % 941,850 13.4 %

Mixed use - multi-family 443,060 6.3 %

Affordable housing 408,555 5.8 %

School 336,645 4.8 %

Mixed use - office 335,288 4.8 %

Mixed use - retail 282,389 4.0 %

Hotel/motel/hospitality 259,178 3.7 %

Industrial 1,179,350 12.5 % 746,945 10.6 %

Hospitality 625,431 6.7 % ROUND +0.001 259,178 3.7 %

Education 394,154 4.2 % 336,645 4.8 %

Self Storage 265,796 2.8 % 236,231 3.4 %

Other property types 819,155 8.7 % 662,805 9.3 %

Total portfolio $ 9,414,361 100.0 % $ 7,044,078 100.0 %

(1) Certain loan property types, previously reported separately in our 2024 10-K, were combined to align with our presentation as of December 31, 2025.

Commercial Construction

Balance Percentage (%)

2025 2024 (1)

Balance Percentage (%) Balance Percentage (%)

(Dollars in thousands)

Affordable housing $ 284,753 57.9 %

Multi-family 81,056 16.5 %

Multifamily $ 355,147 63.0 % $ 386,932 78.7 %

Education 53,929 9.6 % 3,602 0.7 %

Industrial 45,528 8.1 % 14,748 3.0 %

For Sale Housing 32,373 5.7 % 44,160 9.0 %

Mixed use - multi-family 21,123 4.3 %

Self storage 18,829 3.8 %

Industrial/warehouse 14,748 3.0 %

Office 25,098 4.5 % 1,406 0.3 %

Assisted Living 13,751 2.4 % 334 0.1 %

Retail 12,286 2.2 % 12,667 2.6 %

School 3,602 0.7 %

Other property types 25,373 4.5 % 27,800 5.6 %

Total portfolio $ 563,485 100.0 % $ 491,649 100.0 %

(1) Certain loan property types, previously reported separately in our 2024 10-K, were combined to align with our presentation as of December 31, 2025.

We believe that the loan to value ratio (“LTV”) is an important factor in monitoring the risk characteristics of our loans secured by real estate.

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2025 2024 2023 2022 2021 2020 and Prior Total

Current LTV (1) (Dollars in thousands)

Current LTV (1)

(Dollars in thousands)

Not available (2)

$ 5,557 $ — $ — $ — $ 17 $ 5,117 $ 10,691

50.00% or lower 276,857 246,476 356,757 908,091 399,026 1,554,503 3,741,710

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80.00% - 89.99% (3)

7,983 7,985 10,464 92,247 14,495 53,017 186,191

90.00% or higher (3)

16,126 100,877 83,718 172,120 61,029 94,411 528,281

Total $ 926,941 $ 624,510 $ 883,011 $ 2,493,311 $ 1,396,800 $ 3,089,788 $ 9,414,361

2 unchanged sentences

2025 2024 2023 2022 2021 2020 and Prior Total

Current LTV (1) (Dollars in thousands)

Current LTV (1)

(Dollars in thousands)

Not available (2)

$ 36,054 $ — $ — $ — $ 81 $ 9,494 $ 45,629

50.00% or lower 57,894 34,945 44,934 166,634 341,915 508,179 1,154,501

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2025 2024 2023 2022 2021 2020 and Prior Total

Current LTV (1) (Dollars in thousands)

Current LTV (1)

(Dollars in thousands)

Not available (2)

$ 282,821 $ 227,902 $ 178,434 $ 269,380 $ 157,527 $ 191,055 $ 1,307,119

50.00% or lower 5,601 7,117 6,692 10,442 6,064 95,322 131,238

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Scheduled Contractual Loan Maturity

One Year or Less (1) One to Five Years Five to Fifteen Years After Fifteen Years Total

One Year or Less (1)

One to Five Years Five to Fifteen Years After Fifteen Years Total

(In thousands)

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Special mention, substandard and doubtful loans totaled 5.0% and 4.9% of total commercial loans outstanding at December 31, 2025 and 2024, respectively.

This increase was driven by several risk rating downgrades of loans in the commercial real estate and commercial and industrial portfolios.

Our philosophy toward managing our loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations.

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Not available (2)

$ 56,429 $ 24,608 $ 17,455 $ 35,784 $ 26,906 $ 18,024

640 or lower 154,600 82,198 6,677 118,720 65,538 3,656

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Average FICO 769.4 755.0 783.0 770.9 755.4 783.0

(1) Borrower FICO scores are updated on a semi-annual basis, and the most recent update occurred in August 2024.

(1) Borrower FICO scores are updated on a semi-annual basis, and the most recent update occurred in December 2025.

Borrower FICO scores related to loans acquired in connection with our merger with HarborOne were not updated in 2025, and are scheduled to be updated in the second quarter of 2026, as part of the annual process.

(2) Insufficient data available to report.

The delinquency rate of our total loan portfolio increased to 0.62% at December 31, 2024 from 0.41% at December 31, 2023.

The delinquency rate of our total loan portfolio decreased to 0.56% at December 31, 2025 from 0.62% at December 31, 2024.

The following table provides details regarding our delinquency rates as of the dates indicated:

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NPLs increased $36.5 million, or 27%, to $172.3 million at December 31, 2025 from $135.8 million at December 31, 2024.

NPLs as a percentage of total loans increased to 0.76% at December 31, 2024 from 0.38% at December 31, 2023.

Refer to the later “Allowance for Credit Losses” section in this Item 7 for a discussion of the change in non-accrual loans which comprise our NPLs as of December 31, 2024 and December 31, 2023.

NPLs as a percentage of total loans decreased to 0.75% at December 31, 2025 from 0.76% at December 31, 2024.

Refer to the later “Allowance for Credit Losses” section in this Item 7 for a discussion of the change in non-accrual loans which comprise our NPLs as of December 31, 2025 and 2024.

The total amount of interest recorded on NPLs during both the years ended December 31, 2025 and 2024 was not significant.

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The aggregate amortized cost balance as of December 31, 2024 of loans modified during the year ended December 31, 2024 which were determined to be modifications to borrowers experiencing financial difficulty was $30.7 million.

As of December 31, 2024, there were three loans with an aggregate balance of $0.5 million that had been modified to borrowers experiencing financial difficulty during the during the twelve-month period then ended which had subsequently defaulted during the year ended December 31, 2024.

As of December 31, 2023, there were no loans that had been modified to borrowers experiencing financial difficulty during the twelve-month period then ended which had subsequently defaulted during the year ended December 31, 2023.

As of December 31, 2025, there were two loans with an aggregate balance of $0.3 million that had been modified to borrowers experiencing financial difficulty during the during the twelve-month period then ended which had subsequently defaulted during the year ended December 31, 2025.

As of December 31, 2024, there were three loans with an aggregate balance of $0.5 million that had been modified to borrowers experiencing financial difficulty during the twelve-month period then ended which had subsequently defaulted during the year ended December 31, 2024.

Our policy is that any restructured loan, which is on non-accrual status prior to being modified, remain on non-accrual status for approximately six months subsequent to being modified before we consider its return to accrual status.

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We consider factors such as payment history, collateral values and accrual status when determining whether there was evidence of deterioration at the merger date.

As of December 31, 2024 and December 31, 2023,

the carrying amount of PCD loans was $331.4 million and $49.1 million, respectively.

The increase in PCD loans was due to our acquisition of PCD loans in the third quarter of 2024 in connection with our merger with Cambridge which was completed on July 12, 2024 and which added $356.1 million in PCD loans on a gross amortized cost basis.

As of December 31, 2025 and 2024, the carrying

amount of PCD loans was $659.7 million and $331.4 million, respectively.

The increase in PCD loans was due to our acquisition of PCD loans in the fourth quarter of 2025 in connection with our merger with HarborOne which was completed on November 1, 2025 and which added $514.6 million in PCD loans on a gross amortized cost basis, including the day-1 gross-up adjustment of the allowance for loan losses and loan amortized cost balance.

Potential Problem Loans.

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These loans as a percentage of total loans decreased to 1.8% at December 31, 2025 from 2.3% at December 31, 2024.

The increase in potential problem loans from December 31, 2023 to December 31, 2024 was primarily due to the downgrade of certain commercial real estate and commercial and industrial loans during the year ended December 31, 2024, including certain commercial real estate loans collateralized by properties in the office risk segment, and the addition of certain loans acquired in connection with our merger with Cambridge.

Refer to the below “Commercial Real Estate Office Exposure” section of this Item 7 for additional information.

Commercial Real Estate Office Exposure.

Our total office-related commercial real estate (“CRE”) loans (which is comprised of loans within our commercial real estate and construction portfolios that are secured by office space, medical office space, and mixed-use properties where rental income is primarily from office space) totaled $1.0 billion and $0.8 billion as of December 31, 2024 and 2023, respectively.

Included in this total as of December 31, 2024 were loans with a balance of $288.1 million which were acquired during year ended December 31, 2024 in connection with our merger with Cambridge.

Our total office-related commercial real estate (“CRE”) loans (which is comprised of loans within our commercial real estate and construction portfolios that are secured by office space, medical office space, mixed-use, and laboratory/life sciences office properties where rental income is primarily from office space) totaled $1.3 billion and $1.0 billion as of December 31, 2025 and 2024, respectively.

Included in this total as of December 31, 2025, were loans with a balance of $323.9 million which were acquired during year ended December 31, 2025 in connection with our merger with HarborOne.

As of December 31, 2025, our office-related CRE loans are primarily concentrated in Massachusetts, where approximately 87.5% of the total recorded investment balance of office-related CRE loans are located, and approximately 19.6% of the total recorded investment balance of office-related CRE loans are located in the City of Boston.

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Such monitoring includes incremental risk management strategies undertaken by management including monthly internal CRE office exposure portfolio reporting, more frequent portfolio reviews, ongoing monitoring of market conditions, and additional portfolio analysis such as maturity risk analysis and rent rollover risk analysis.

As of December 31, 2024, twelve of our office-related CRE loans, which had a total recorded investment balance of $87.0 million, were on non-accrual status.

As of December 31, 2023, two of our office-related CRE loans were on non-accrual status and had a total recorded investment balance of $14.0 million.

As of December 31, 2025, four of our office-related CRE loans, which had a total recorded investment balance of $36.7 million, were on non-accrual status of which $9.7 million were acquired during year ended December 31, 2025 in connection with our merger with HarborOne.

As of December 31, 2024, twelve of our office-related CRE loans were on non-accrual status and had a total recorded investment balance of $87.0 million.

The following table sets forth the unpaid principal balance of office-related CRE loans by loan segment and credit quality indicator as of the dates indicated:

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Mixed-use 425,529 337,966

Laboratory/life science (1)

123,438 103,517

Total commercial real estate $ 1,246,127 $ 1,037,035

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Mixed-use 19,208 —

Laboratory/life science — —

Total commercial construction $ 25,021 $ 1,400

Total $ 1,271,148 $ 1,038,435

(1) In the second quarter of 2025, we refined the presentation of CRE office risk segments resulting in the addition of the “laboratory/life science” risk segment.

Loans in this risk segment were reported in other risk segments as of December 31, 2024 and were reclassified above for comparative purposes.

Allowance for credit losses.

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We use a methodology to systematically estimate the amount of expected credit loss in the loan portfolio.

Under our current methodology, the allowance for loan losses contains reserves related to loans for which

the related allowance for loan losses is determined on an individual loan basis and on a collective basis, and other qualitative components.

Under our current methodology, the allowance for loan losses contains reserves related to loans for which the related allowance for loan losses is determined on an individual loan basis and on a collective basis, and other qualitative components.

The allowance for loan losses increased by $102.9 million, or 44.9%, to $331.8 million, or 1.44% of total loans, at December 31, 2025 from $229.0 million, or 1.29% of total loans at December 31, 2024.

The increase in the allowance for loan losses was primarily due to our merger with Cambridge, which was completed on July 12, 2024.

In connection with the merger, we recorded an allowance for acquired PCD loans of $55.8 million, as a gross-up of the corresponding loan balance, and an allowance for acquired non-PCD loans of $40.9 million, recognized through the provision for allowance for loan losses immediately following the completion of the merger.

The increase in the allowance for loan losses was primarily due to our merger with HarborOne, which was completed on November 1, 2025.

In connection with the merger, we recorded an allowance for loan losses related to acquired loans of $103.7 million, as a gross-up of the corresponding loan balance.

Excluding these amounts, the allowance for loan losses decreased by $0.8 million from December 31, 2024 to December 31, 2025.

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The reserve for unfunded lending commitments is included in other liabilities in the Consolidated Balance Sheets.

Our reserve for unfunded lending commitments decreased by $1.0 million, or 7%, to $13.1 million at December 31, 2024 from $14.1 million at December 31, 2023.

The decrease was primarily due to lower reserve rates and unfunded balances within the commercial construction portfolio, which were attributable to an improved economic forecast and draws by borrowers which served to reduce unfunded balances.

The decrease in our reserve for unfunded lending commitments contributed to a decrease in our other non-interest expense during the year ended December 31, 2024.

Our reserve for unfunded lending commitments increased by $3.3 million, or 25%, to $16.4 million at December 31, 2025 from $13.1 million at December 31, 2024.

The following table summarizes credit ratios for the periods presented:

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Average total loans (1)

$ 18,967,543 $ 15,810,694 $ 13,832,087 $ 12,538,149 $ 10,021,862

Total net charge-offs (recoveries) to average total loans outstanding during the period

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(1) Average loan balances exclude loans held for sale

(2) Amounts presented include unearned discounts and deferred fees, net

Non-accrual loans increased $83.3 million, or 158%, to $135.8 million at December 31, 2024 from $52.6 million at December 31, 2023, primarily due to loans acquired from Cambridge and which were already on non-accrual or were transferred to non-accrual following the completion of the merger.

As of December 31, 2024, the amount of loans on non-accrual which were acquired from Cambridge was $59.3 million.

Non-accrual loans increased $36.5 million, or 27%, to $172.3 million at December 31, 2025 from $135.8 million at December 31, 2024, primarily due to loans acquired from HarborOne and which were already on non-accrual or were transferred to non-accrual following the completion of the merger.

As of December 31, 2025, the amount of loans on non-accrual which were acquired from HarborOne was $89.9 million.

For additional information regarding the credit quality of our loans, see Note 6, “Loans and Allowance for Credit Losses” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

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Regardless of whether a loan is unsecured or collateralized, we charge off the amount of any confirmed loan loss in the period when the loans, or portions of loans, are deemed uncollectible.

For troubled, collateral-dependent loans, loss

confirming events may include an appraisal or other valuation that reflects a shortfall between the value of the collateral and the carrying value of the loan or receivable, or a deficiency balance following the sale of the collateral.

For troubled, collateral-dependent loans, loss confirming events may include an appraisal or other valuation that reflects a shortfall between the value of the collateral and the carrying value of the loan or receivable, or a deficiency balance following the sale of the collateral.

For additional information regarding our allowance for loan losses, see Note 6, “Loans and Allowance for Credit Losses” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

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We purchase and/or are subject to redemption of FHLBB stock proportional to the volume of funding received and view the holdings as a necessary long-term investment for the purpose of balance sheet liquidity and not for investment return.

We held an investment in the FHLBB of $5.9 million at both December 31, 2024 and 2023.

We held an investment in the FHLBB of $13.8 million and $5.9 million at December 31, 2025 and 2024, respectively.

The amount of stock we are required to purchase is in proportional to our FHLB borrowings and level of total assets.

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The balance of our goodwill and other intangible assets was $1.3 billion and $1.1 billion at December 31, 2025 and 2024, respectively.

The increase in goodwill and other intangible assets at December 31, 2024 from December 31, 2023 was due to our merger with Cambridge during the third quarter of 2024.

The increase in goodwill and other intangible assets at December 31, 2025 from 2024 was due to our merger with HarborOne during the fourth quarter of 2025.

Refer to Note 3, “Mergers and Acquisitions” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K for additional discussion.

We did not record any impairment to our goodwill or other intangible assets during the years ended December 31, 2025 and 2024.

For discussion of the impairment testing performed, refer to Note 8, “Goodwill and Core Deposit Intangible Asset” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

For discussion of the impairment testing performed, refer to Note 9, “Goodwill and Other Intangible Assets” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

Deposits and other interest-bearing liabilities

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Furthermore, we shift the mix and maturity of the deposits depending on economic conditions and loan and investment policies in an attempt, within set policies, to minimize cost and maximize net interest margin.

The following table presents our deposits as of the dates indicated, and the balance of deposits, by category, that were acquired in connection with our merger with Cambridge as of the merger date of July 12, 2024:

The following table presents our deposits as of the dates indicated, and the balance of deposits, by category, that were acquired in connection with our merger with HarborOne as of the merger date of November 1, 2025:

Components of Deposits

As of December 31, Cambridge Acquired Deposit Balances Organic Change

As of December 31, HarborOne Acquired Deposit Balances Organic Change

2025 2024 Change Amount ($) Percentage (%)

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Deposits increased by $4.2 billion, or 19.5%, to $25.5 billion at December 31, 2025 from $21.3 billion at December 31, 2024.

This increase was primarily due to the addition of deposits acquired in connection with our merger with Cambridge, which was completed on July 12, 2024.

This increase was primarily due to the addition of deposits acquired in connection with our merger with HarborOne, which was completed on November 1, 2025.

Excluding the acquired deposit balances, deposits decreased $181.8 million, or 0.9%, at December 31, 2025 from December 31, 2024.

This decrease was primarily driven by a decrease in the balances of omnibus deposit accounts which decreased $285.3 million from December 31, 2023 to December 31, 2024 and which contributed to the decrease in interest checking deposits, excluding the impact of our merger with Cambridge.

Further, the remaining changes, which taken together comprise an overall increase, reflect organic deposit growth and a continued shift in deposit mix from non-interest-bearing/low-yielding deposit accounts to interest-bearing/higher-yielding deposit account types during the year ended December 31, 2024.

The shift in deposit mix was due primarily to increases in rates paid on money market investment deposits and certificates of deposit, which attracted depositors to such products.

This decrease was primarily driven by regular deposit outflows during the year ended December 31, 2025.

The Bank’s estimate of total uninsured deposits was $10.2 billion and $9.0 billion at December 31, 2025 and 2024, respectively.

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For liquidity monitoring purposes, we exclude internal deposit accounts and collateralized deposits from our estimate of uninsured deposits.

Our estimate of uninsured deposits, excluding internal deposit accounts and collateralized deposits, was $6.9 billion and $5.5 billion at December 31, 2024 and December 31, 2023, respectively.

Our estimate of uninsured deposits, excluding internal deposit accounts and collateralized deposits, was $8.1 billion and $6.9 billion at December 31, 2025 and 2024, respectively.

The following table presents the classification of deposits on an average basis for the years indicated:

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Interest checking 4,482,914 0.94 % 4,167,043 1.04 % 4,070,585 0.60 %

Savings 1,466,914 0.21 % 1,515,713 0.01 % 2,015,651 0.01 %

1,683,451 0.30 % 1,487,842 0.21 % 1,535,578 0.01 %

Money market investments 6,309,936 2.35 % 5,283,231 2.66 % 4,918,343 2.11 %

1 unchanged sentence

Total deposits $ 21,767,817 1.53 % $ 19,432,379 1.74 % $ 18,232,234 1.24 %

(1) Includes the reclassification of the escrow deposits of borrowers to deposit savings accounts recorded in the first quarter of 2025 for comparability purposes.

Other time deposits in excess of the FDIC insurance limit of $250,000, including certificates of deposits as of the dates indicated had maturities as follows:

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(In thousands)

Escrow deposits of borrowers $ 27,721 $ 21,978 $ 5,743 26.1 %

Interest rate swap collateral funds $ 15,321 $ 48,590 $ (33,269) (68.5) %

2 unchanged sentences

Our total borrowings increased by $148.8 million to $214.9 million at December 31, 2025 compared to $66.2 million at December 31, 2024.

The increase was primarily due to increased balances of interest rate swap collateral funds.

The increase was primarily due to increased balances of FHLB advances which increased due to FHLB borrowings assumed in connection with our merger with HarborOne.

Refer to the later “Liquidity, Capital Resources, Contractual Obligations, Commitments and Contingencies” section in this Item 7 for additional discussion of our liquidity position.

Results of Operations

The information presented within this section excludes discontinued operations with regard to the year ended December 31, 2023.

Refer to Note 23, “Discontinued Operations” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K for further discussion regarding discontinued operations.

Summary of Results of Operations

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Provision for allowance for loan losses 26,200 67,380 (41,180) (61.1) %

Noninterest income (loss) 123,917 (237,753) 361,670 (152.1) %

Noninterest (loss) income (105,936) 123,917 (229,853) (185.5) %

Noninterest expense 596,943 508,368 88,575 17.4 %

Income tax expense (benefit) 36,205 (63,309) 99,514 (157.2) %

Net income (loss) $ 119,561 $ (62,689) $ 182,250 (290.7) %

Income tax expense 11,287 36,205 (24,918) (68.8) %

Net income $ 88,219 $ 119,561 $ (31,342) (26.2) %

Comparison of the Years Ended December 31, 2025 and 2024

Interest and Dividend Income

Interest and dividend income increased by $150.3 million, or 18.9%, to $946.8 million during the year ended December 31, 2024 from $796.5 million during the year ended December 31, 2023.

The increase was due to an increase in the average balance of our loan portfolio and our yields and was partially offset by a decrease in interest income on securities and other short-term investments.

• Interest income on loans increased $155.9 million, or 23.9%, to $808.0 million during the year ended December 31, 2024 from $652.1 million during the year ended December 31, 2023.

The increase in interest income on our loans was due to an increase in the average balance of our loans and an increase in the yield on our loans.

The average balance of our loans increased $2.0 billion, or 14.3%, to $15.8 billion during the year ended December 31, 2024 from $13.8 billion during the year ended December 31, 2023, which was primarily due to loans acquired in connection with our merger with Cambridge of $3.7 billion.

The increase in yield, which increased 39 basis points to 5.22% during the year ended December 31, 2024, from 4.83% during the year ended December 31, 2023, was primarily due to accretion of the discount on loans acquired in our merger with Cambridge, increases in market rates of interest which resulted in increased yields on variable rate loans which repriced, and new loans originated at higher rates of interest.

• Interest income on securities and other short-term investments decreased by $5.6 million, or 3.9%, to $138.7 million during the year ended December 31, 2024 from $144.4 million during the year ended December 31, 2023.

The decrease was primarily driven by a decrease in the average balance of our securities and other short-term investments, which decreased $0.8 billion, or 11.2%, to $6.2 billion for the year ended December 31, 2024 from $7.0 billion for the year ended December 31, 2023.

The decrease in the average balance was primarily due to our sales of AFS securities during the year ended December 31, 2024, as well as maturities and principal paydowns on AFS and HTM securities.

Partially offsetting the decrease in the average balance of our securities and other short-term investments, and contributing to the overall increase in interest income during the year ended December 31, 2024, was an increase in our yield on our securities and other short-term investments which increased 16 basis points during the year ended December 31, 2024 in comparison to the year ended December 31, 2023 primarily due to an increase in the rate paid on our cash held at the Federal Reserve Bank of Boston from an average of 5.10% during the year ended December 31, 2023 to an average of 5.21% during the year ended December 31, 2024.

Interest and dividend income increased by $217.5 million, or 23.0%, to $1.2 billion during the year ended December 31, 2025 from $946.8 million during the year ended December 31, 2024.

The increase was due to an increase in both the average balance and yields of our loan portfolio.

Our yields on loans and securities are generally presented on an FTE basis where the embedded tax benefit on loans and securities are calculated and added to the yield.

Management believes that this presentation allows for better comparability between institutions with different tax structures.

• Interest income on loans increased $201.3 million, or 24.9%, to $1.0 billion during the year ended December 31, 2025 from $808.0 million during the year ended December 31, 2024.

The increase in interest income on our loans was primarily due to an increase in the average balance of our loans and an increase in the yield on our loans.

The average balance of our loan portfolio increased $3.2 billion, or 20.0%, to $19.0 billion during the year ended December 31, 2025 from $15.8 billion during the year ended December 31, 2024.

This increase was primarily due to loans acquired in connection with our 2025 merger with HarborOne, which was completed in November 2025, and our 2024 merger with Cambridge, which was completed in July 2024.

The overall yield on our loans increased 20 basis points during the year ended December 31, 2025 in comparison to the year ended December 31, 2024, which was primarily due to accretion of the discounts recorded related to loans acquired in our mergers with HarborOne and Cambridge.

• Interest income on securities and other short-term investments increased by $16.2 million, or 11.7%, to $154.9 million during the year ended December 31, 2025 from $138.7 million during the year ended December 31, 2024.

The increase was primarily due to an increase in our combined yield on our securities and other short-term investments, which increased 76 basis points during the year ended December 31, 2025 in comparison to the year ended December 31, 2024 due to sales of AFS securities and the purchase of new securities with higher yields.

Partially offsetting this increase was a decrease in the average balance of our securities and other short-term investments during the year ended December 31, 2025, which resulted from sales and maturities and principal paydowns of AFS and HTM securities.

Interest Expense

Interest expense increased $93.1 million to $339.2 million during the year ended December 31, 2024 from $246.1 million during the year ended December 31, 2023.

The overall increase was attributable to an increase in deposit interest expense partially offset by a decrease in borrowings interest expense.

During the year ended December 31, 2024, interest expense on our interest-bearing deposits increased by $111.3 million to $337.4 million from $226.1 million during the year ended December 31, 2023.

This increase was due to an increase in the average balance of interest-bearing deposits.

During the year ended December 31, 2024, average interest-bearing deposits increased $1.3 billion, or 9.8%, to $14.1 billion, from $12.8 billion during the year ended December 31, 2023 primarily as a result of our merger with Cambridge which added approximately $2.9 billion in interest-bearing deposits.

Also contributing to the increase was an increase in rates paid on deposits.

Rates paid on deposits increased by 63 basis points to 2.40% during the year ended December 31, 2024 from 1.77% during the year ended December 31, 2023.

This was primarily due to our increasing overall deposit rates paid in response to an increase in market rates of interest and heightened industry-wide competition for deposits, as well as a shift in deposit mix from lower interest-bearing account types to higher interest-bearing account types.

Interest expense related to our borrowings decreased by $18.2 million to $1.8 million during the year ended December 31, 2024 from $20.0 million during the year ended December 31, 2023.

The decrease in borrowings interest expense during the year ended December 31, 2024 compared to the year ended December 31, 2023 was due to a decrease in our utilization of our FHLB borrowing capacity.

Our utilization of FHLBB borrowings was greater during the year ended December 31, 2023 compared to the year ended December 31, 2024 as we had bolstered our on-balance sheet liquidity in response to the bank failures in the first quarter of 2023.

During the fourth quarter of 2023, we paid down our FHLB advances primarily with the proceeds from the sale of our insurance agency business, which occurred in the fourth quarter of 2023.

Both of these factors resulted in a reduced average balance of borrowings during the year ended December 31, 2024 compared to the year ended December 31, 2023.

During the year ended December 31, 2025 interest expense decreased by $3.5 million to $335.6 million from $339.2 million during the year ended December 31, 2024.

This decrease was primarily due to deposit interest expense which decreased during the year ended December 31, 2025 by $5.0 million to $332.4 million from $337.4 million.

This decrease was due to a decrease in rates paid on deposits.

Net Interest Income

Net interest income increased by $221.0 million, or 36.4%, to $828.6 million during the year ended December 31, 2025 from $607.6 million during the year ended December 31, 2024.

Net interest income increased due to a increase in the balance of average total interest-earning assets of $1.2 billion, or 5.7%, to $22.0 billion during the year ended December 31, 2024 from $20.8 billion during the year ended December 31, 2023, as well as an increase in our net interest margin during the year ended December 31, 2024.

Net interest income increased due to an increase in our net interest margin of 67 basis points, to 3.51%.

Also contributing to the increase was an increase in the balance of average total interest-earning assets of $2.2 billion, or 9.8%, to $24.2 billion during the year ended December 31, 2025 from $22.0 billion during the year ended December 31, 2024.

The following chart shows our net interest margin over the past five years:

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Net interest margin increased 67 basis points basis points to 3.51% during the year ended December 31, 2025, from 2.85% during the year ended December 31, 2024.

The increase in net interest margin for the year ended December 31, 2024 from the year ended December 31, 2023 was primarily due to an increase in the average balance and yield on interest-earning assets which exceeded the increase in the cost of our interest-earning liabilities.

The increase in net interest margin for the year ended December 31, 2025 from the year ended December 31, 2024 was primarily due to an increase in the average balance and yield on interest-earning assets.

Also contributing to the increase was a decrease in the cost of our interest-bearing liabilities.

The following tables set forth average balance sheet items, average yields and costs, and certain other information for the periods indicated.

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Total interest-bearing deposits 15,963,941 332,404 2.08 % 14,084,255 337,403 2.40 % 12,828,026 226,081 1.76 %

Federal funds purchased 8 — — % 8 — — % 964 24 2.49 %

Other borrowings 68,227 1,802 2.64 % 418,876 19,975 4.77 % 255,668 8,482 3.32 %

Borrowings 90,506 3,245 3.59 % 47,307 1,766 3.73 % 399,019 19,969 5.00 %

Total interest-bearing liabilities 16,054,447 335,649 2.09 % 14,131,562 339,169 2.40 % 13,227,045 246,050 1.86 %

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Net interest rate spread (2)

2.81 % 1.99 % 2.05 %

Net interest-earning assets (3)

$ 8,107,155 $ 7,865,498 $ 7,575,826

Net interest margin - FTE (4)

3.51 % 2.85 % 2.73 %

Average interest-earning assets to interest-bearing liabilities 150.50 % 155.66 % 157.28 %

Return on average assets (5)

0.34 % 0.51 % 1.07 %

Return on average equity (6)

2.34 % 3.66 % 9.03 %

Noninterest expenses to average assets (7)

2.28 % 2.18 % 2.35 %

(1) Non-accrual loans are included in loans.

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Refer to the earlier “ Non-GAAP Financial Measures” section within this Item 7 for additional information.

(5) Represents net income, including net income from discontinued operations, divided by average total assets.

Discontinued operations is applicable to the years ended December 31, 2023 and 2022.

(6) Represents net income, including net income from discontinued operations, divided by average equity.

Discontinued operations is applicable to the years ended December 31, 2023 and 2022..

(7) Includes noninterest expenses included in results of discontinued operations.

Discontinued operations is applicable to the years ended December 31, 2023 and 2022.

(5) Represents net income, including net income from discontinued operations in the case of the year ended December 31, 2023, divided by average total assets.

(6) Represents net income, including net income from discontinued operations in the case of the year ended December 31, 2023, divided by average equity.

(7) Includes noninterest expenses included in results of discontinued operations in the case of the year ended December 31, 2023.

Refer to Note 24, “Discontinued Operations ” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

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Total interest-bearing deposits (49,151) 44,152 (4,999) 63,493 47,829 111,322

Federal funds purchased — — — (12) (12) (24)

Other borrowings (6,318) (11,855) (18,173) 4,673 6,820 11,493

Borrowings (73) 1,552 1,479 (4,071) (14,132) (18,203)

Total interest-bearing liabilities (49,224) 45,704 (3,520) 59,422 33,697 93,119

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We recorded a provision for allowance for loan losses of $26.2 million for the year ended December 31, 2025, compared to a provision of $67.4 million for the year ended December 31, 2024.

During the year ended December 31, 2024, we recorded a provision for allowance for loan losses of $40.9 million related to non-PCD loans acquired in connection with our merger with Cambridge which closed on July 12, 2024.

Excluding this amount, the provision for the year ended December 31, 2024 was $26.5 million.

Management determined a provision to be necessary for the year ended December 31, 2024 primarily due to $42.6 million in charge-offs of commercial real estate loans and due to an increase in specific reserves for commercial real estate loans collateralized by property in the office risk segment.

Included in charge-offs of commercial real estate loans during the year ended December 31, 2024 was $41.3 million of charge-offs on loans collateralized by property in the office risk segment which transitioned to non-accrual status during the year ended December 31, 2024 and had not been previously reserved for on a specific reserve basis, and $19.8 million of charge-offs on PCD loans acquired in the merger with Cambridge.

For information regarding the change in the allowance for loan loss, including factors leading to the provision for allowance for loan loss recorded during the year ended December 31, 2025, see Note 6, “Loans and Allowance for Credit Losses” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

Management’s estimate of our allowance for loan losses as of December 31, 2025 and the provision for loan losses for the year ended December 31, 2025, was supported, in part, by Oxford Economics’ December 2025 Baseline forecast (“the forecast”) which was used to develop management’s estimate of the effect of expected future economic conditions on the allowance for loan losses.

The forecast assumed U.S.

economic growth in 2025 will be consistent with 2024 as U.S.

economic growth in 2026 will be larger than 2025 growth as U.S.

gross domestic product (“GDP”) will grow by 2.5%.

This forecast reflects the impact of steady consumer spending but a slight increase in the unemployment rate.

Primary macroeconomic assumptions included in management’s evaluation of the adequacy of the allowance for loan losses included a rise in the unemployment rate and a slight decline in the growth rate of U.S.

Further, the forecast assumed that the FOMC will decrease federal funds rates several times in 2025.

This forecast reflects the impact of steady consumer spending along with a decrease in effective tariff rates, but a slight increase in the unemployment rate and and increase in the duration of a higher unemployment rate.

Primary macroeconomic assumptions included in management’s evaluation of the adequacy of the allowance for loan losses included a rise in the unemployment rate.

Further, the forecast assumed that the FOMC will decrease federal funds rates multiple times in 2026.

Refer to the section titled “Outlook and Trends” within this Item 7 for additional discussion.

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The following table sets forth information regarding noninterest income for the periods shown:

Noninterest Income (Loss)

Noninterest (Loss) Income

For the Year Ended December 31, Change

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(Dollars in thousands)

Trust and investment advisory fees $ 46,126 $ 24,264 $ 21,862 90.1 %

Investment advisory fees $ 69,921 $ 46,126 $ 23,795 51.6 %

Service charges on deposit accounts 35,035 32,004 3,031 9.5 %

Debit card processing fees 14,177 13,469 708 5.3 %

Card income 18,260 16,612 1,648 9.9 %

Interest rate swap income 3,755 2,819 936 33.2 %

Income from investments held in rabbi trusts 9,963 9,675 288 3.0 %

Losses on sales of commercial and industrial loans — (2,738) 2,738 (100.0) %

Losses on sales of mortgage loans held for sale, net (920) (507) (413) 81.5 %

Mortgage banking income (loss) 2,877 (887) 3,764 (424.4) %

Losses on sales of securities available for sale, net (269,638) (16,798) (252,840) 1,505.2 %

Other 36,834 21,457 15,377 71.7 %

Total noninterest income (loss) $ 123,917 $ (237,753) $ 361,670 (152.1) %

Noninterest income increased $361.7 million, or 152.1%, to $123.9 million for the year ended December 31, 2024 from a net loss of $237.8 million for the year ended December 31, 2023.

This increase was primarily due to a $316.4 million decrease in losses on sales of securities available for sale, a $21.9 million increase in trust and investment advisory fees, a $15.4 million increase in other noninterest income, and a $3.4 million increase in service charges on deposit accounts.

• We recorded losses of $16.8 million and $333.2 million on sales of securities available for sale, net, for the years ended December 31, 2024 and 2023, respectively.

◦ In the second quarter of 2024, an early withdrawal of an omnibus deposit contract occurred which had a balance of $100.0 million at the time of the contract termination.

Management made the decision to sell certain available for sale securities following the early termination in order to recoup liquidity.

◦ In July 2024, following our merger with Cambridge, we sold all securities that we had acquired through the merger.

However, such securities had been adjusted to fair value in connection with our merger purchase accounting based upon the quoted sale price.

As such, no gain or loss was recognized from the sale of such securities.

◦ In the fourth quarter of 2024, management made the decision to sell lower yielding available for sale securities at a loss to offset a gain recognized upon sale of an other equity investment we sold in the fourth quarter of 2024.

◦ We recorded losses during the year ended December 31, 2023 as management made the decision to sell certain available for sale securities in connection with a balance sheet repositioning in March 2023.

• Trust and investment advisory fees increased due to an increase in our assets under management, which increased due to an increase in our wealth management and trust operations as a result of our merger with Cambridge through which we acquired $5.0 billion in assets held in a fiduciary, custodial or agency capacity for customers.

• Other noninterest income increased primarily as a result of a $9.3 million gain on sale of an other equity investment held by us, as described above.

Also contributing to the increase was $7.8 million of fee income received as a result of the early withdrawal of an omnibus deposit contract which had a balance of $100.0 million, as described above.

• Service charges on deposit accounts increased primarily as a result of increased corporate account analysis charges as a result of an increase in our account analysis service prices charged to customers during the year ended December 31, 2024.

Miscellaneous income and fees 23,038 27,695 (4,657) (16.8) %

Non-operating income 853 6,671 (5,818) (87.2) %

Total noninterest (loss) income $ (105,936) $ 123,917 $ (229,853) (185.5) %

Noninterest income decreased by $229.9 million, or 185.5%, to a loss of $105.9 million for the year ended December 31, 2025, from $123.9 million for the year ended December 31, 2024.

This decrease was primarily due to a $252.8 million increase in losses on sales of securities available for sale, a $5.8 million decrease in other non-operating income and a $4.7 million decrease in miscellaneous income and fees.

These items were partially offset by a $23.8 million increase in investment advisory fees.

• Losses on sales of securities available for sale were $269.6 million for the year ended December 31, 2025 compared to $16.8 million for the year ended December 31, 2024.

This increase in losses was due to sales of securities with an aggregate book value of $1.9 billion during the year ended December 31, 2025 compared to $1.1 billion of sales during the year ended December 31, 2024.

Included in these total book value amounts are securities we acquired in our mergers with HarborOne and Cambridge that were sold immediately following the closing of mergers at no gain or loss.

• Other non-operating income decreased primarily as a result of a gain on the sale of an other equity investment recognized during the year ended December 31, 2024 which exceeded the gain on sale of another other equity investment recognized during the year ended December 31, 2025.

• Miscellaneous income and fees decreased primarily as a result of non-recurring fee income received during the year ended December 31, 2024 as a result of the early withdrawal of an omnibus deposit contract which did not recur during year ended December 31, 2025.

• Investment advisory fees increased due to an increase in our assets under management, which increased due to our merger with Cambridge through which we acquired $5.0 billion in assets held in a fiduciary, custodial or agency capacity for customers.

Our merger with Cambridge was completed in July 2024, and therefore contributed to increased trust and investment advisory fee income for a partial year in 2024 compared to a full year in 2025.

Noninterest Expense

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Noninterest Expense

For the Year Ended December 31, Change in Merger & Acquisition Expenses, Net (1) Change Excluding Merger & Acquisition Expenses (1)

For the Year Ended December 31, Change

2025 2024 Amount %

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Amortization of other intangible assets 34,179 14,569 19,610 134.6 %

Other 27,793 25,610 2,183 8.5 % 5,002 (2,819)

Other operating expenses 24,486 22,740 1,746 7.7 %

Non-operating expense 39,157 36,664 2,493 6.8 %

Total noninterest expense $ 596,943 $ 508,368 $ 88,575 17.4 %

(1) We recorded merger and acquisition expenses of $36.7 million and $5.5 million during the years ended December 31, 2024 and 2023, respectively, related to our merger with Cambridge.

These columns display the period-over-period change in merger and acquisition expenses by financial statement line item and the change in account balances excluding such amounts.

Noninterest expense increased by $88.6 million, or 17.4%, to $596.9 million during the year ended December 31, 2025 from $508.4 million during the year ended December 31, 2024.

This increase was primarily due to an increase in merger and acquisition expenses of $31.2 million and the following items, which exclude merger and acquisition expenses:

a $34.6 million increase in salaries and employee benefits, a $16.5 million increase in data processing, a $12.8 million increase in amortization of intangible assets, and a $5.9 million increase in office occupancy and equipment.

These increases were partially offset by a $8.0 million decrease in FDIC insurance expenses.

• Merger and acquisition expenses increased as our merger with Cambridge was completed in the third quarter of 2024 around such time the majority of the related expenses were incurred.

• Salaries and employee benefits expenses increased primarily due to an increase in salaries and wages expense, an increase in share-based compensation, an increase in pension service cost.

◦ Salaries and wages expense, excluding merger and acquisition expenses, increased $20.5 million primarily due to an increase in the number of employees as a result of our merger with Cambridge as well as regular annual wage increases.

◦ Share-based compensation, excluding merger and acquisition expenses, increased due to an increase in the number of employees in the “2021 Equity Plan”, which was the result of our merger with Cambridge, as well as additional restricted stock awards granted to two new executives who were hired during the year ended December 31, 2024.

◦ Pension service cost primarily increased due to an increase in the number of employees enrolled in our Defined Benefit Plan during the year ended December 31, 2024.

Also contributing to the increase was an increase in the interest crediting rate on cash balance accounts in the plan during the year ended December 31, 2024.

• Data processing, excluding merger and acquisition expenses, increased primarily as a result of a increase in software expenses, which were primarily driven by an increase in cybersecurity software expenses.

The increase in these expenses was driven by efforts to improve our cybersecurity technology to better protect against cybersecurity threats.

• Amortization of intangible assets increased primarily due to an increase in intangible assets in connection with our merger with Cambridge, resulting in a corresponding increase in amortization expense.

• Office occupancy and equipment, excluding merger and acquisition expenses, increased primarily due to the addition of properties resulting from our merger with Cambridge.

• FDIC insurance expenses decreased primarily due to the FDIC's special assessment for which the majority was accrued for in the fourth quarter of 2023.

In 2023, the FDIC announced that, as required by the FDIA, any losses to the Deposit Insurance Fund (“DIF”) to support uninsured depositors would be recovered by a special assessment.

On November 16, 2023, the FDIC published in the Federal Register its final rule that imposes special assessments to recover the loss to the DIF arising from the protection of uninsured depositors in connection with the systemic risk determination announced on March 12, 2023, following the closures of SVB and Signature Bank, as required by the FDIA.

We recognized the special assessment estimate of $10.8 million in full upon finalization of the rule in the fourth quarter of 2023.

In June 2024, we received the FDIC’s additional special assessment invoice, which included an incremental assessment amount of $1.9 million.

We recorded this amount during the second quarter of 2024.

This increase was primarily due to a $48.4 million increase in salaries and employee benefits expense, a $19.6 million increase in amortization of intangible assets, and a $8.2 million increase in data processing expense.

• Salaries and employee benefits expenses increased primarily due to an increase in salaries and wages expense, an increase in incentives, and an increase in health insurance expense.

◦ Salaries and wages expense increased $34.6 million primarily due to an increase in the number of employees as a result of our mergers with HarborOne and Cambridge, in addition to regular employee wage increases.

◦ Incentives increased $8.7 million primarily due to an increase in the number employees participating in our incentive compensation plans which was primarily the result of our mergers with HarborOne and Cambridge.

◦ Health insurance expense increased $5.8 million primarily due to an increase in the number of employees, which was primarily driven by our mergers with HarborOne and Cambridge.

• Amortization of intangible assets increased primarily due to an increase in intangible assets in connection with our mergers with HarborOne and Cambridge, resulting in a corresponding increase in amortization expense.

• Data processing expense increased primarily due to increases in volume expenses, such as debit card processing expense and core data processing expense, in connection with our mergers with HarborOne and Cambridge.

Also contributing to this increase was an increase in investment in key technology platforms.

We recognize the tax effect of all income and expense transactions in each year’s consolidated statements of income, regardless of the year in which the transactions are reported for income tax purposes.

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Blended statutory tax rate 27.6 % 27.7 %

Income tax expense increased by $99.5 million to expense of $36.2 million in the year ended December 31, 2024 from a benefit of $63.3 million in the year ended December 31, 2023.

The increase to net expense for the year ended December 31, 2024 was primarily due to pre-tax losses resulting from losses on sales available for sale securities in the first quarter of 2023.

Also contributing to the increase was a $7.4 million expense recorded in 2024 for the lost state tax benefit associated with the 2024 Massachusetts state tax net operating loss which cannot be carried over.

The state tax net operating losses were due to the tax losses incurred as a result of the liquidation of the securities acquired in connection with our merger with Cambridge.

During the first quarter of 2023, we liquidated Market Street Securities Corporation (“MSSC”), a wholly owned subsidiary, and transferred all of MSSC’s assets to Eastern Bank.

In connection with the liquidation and subsequent transfer of securities previously held by MSSC to Eastern Bank, the Company recognized an additional deferred income tax benefit of $23.7 million.

This deferred income tax benefit resulted from a state tax rate change applied to the deferred tax asset related to the securities transferred to Eastern Bank.

For additional information related to the Company’s income taxes see Note 13, “Income Taxes” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

Income tax expense decreased by $24.9 million to $11.3 million for the year ended December 31, 2025 from $36.2 million for the year ended December 31, 2024.

The decrease was primarily due to lower pre-tax income for the year ended December 31, 2025 from the year ended December 31, 2024 and due to losses generated during the year ended December 31, 2024 for which a state tax benefit could not be realized.

For additional information related to our income taxes see Note 14, “Income Taxes” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

Critical Accounting Policies and Estimates

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Management uses a methodology to systematically estimate the amount of expected lifetime losses in the portfolio.

Expected lifetime losses are estimated on a collective basis for loans sharing similar risk characteristics and are

determined using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output.

Expected lifetime losses are estimated on a collective basis for loans sharing similar risk characteristics and are determined using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output.

For commercial and industrial, commercial real estate, commercial construction and business banking portfolios, the quantitative model uses a loan rating system which is comprised of management’s determination of a financial asset’s probability of default (“PD”), loss given default (“LGD”) and exposure at default (“EAD”), which are derived from historical loss experience and other factors.

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Acquisitions of businesses are accounted for using the acquisition method of accounting whereby goodwill represents the excess of purchase price over the fair value of net assets acquired.

We evaluate goodwill for impairment at least annually, which we performed as of September 30, 2024, using a quantitative impairment approach.

Following management’s decision to change its annual assessment date, we performed an assessment as of November 30, 2024, described further below.

For additional information regarding the change in annual assessment date, refer to Note 8, “Goodwill and Other Intangible Assets” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K.

We evaluate goodwill for impairment at least annually, which we performed as of November 30, 2025, using a quantitative impairment approach.

An assessment is also performed to the extent relevant events and/or circumstances occur which may indicate it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount.

The quantitative impairment test compares the book value to the fair value of each reporting unit.

If the book value exceeds the fair value, an impairment is charged to net income.

If the book value exceeds the fair

value, an impairment is charged to net income.

As of December 31, 2025, management identified one reporting unit for purposes of testing goodwill for impairment:

the banking business.

We performed our annual assessment of impairment for the banking business as of September 30, 2024.

We performed our annual assessment of impairment for the banking business as of November 30, 2025.

The assessment included a comparison of the banking reporting unit’s carrying value of equity to estimated fair value of equity using the market capitalization method of the market approach.

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The implied control premium was estimated using the discounted cash flow method of the income approach by evaluating the present value of market participant cost savings and synergies.

Based upon the assessment, we determined there was no impairment of our goodwill as of September 30, 2024.

In addition, following management’s decision to change the date at which our annual impairment assessment is performed, we performed our annual assessment for the banking business as of November 30, 2024, our new annual assessment date.

The assessment included a comparison of the banking reporting unit’s carrying value of equity to estimated fair value of equity based on our market capitalization.

The assessment also considered the changes in market conditions from the September 30, 2024 assessment.

Based upon the assessment, it was determined there was no impairment of our goodwill as of November 30, 2024.

Refer to Note 8, “Goodwill and Other Intangible Assets” within the Notes to the Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K for additional discussion of the change in annual impairment assessment date.

Based upon the assessment, we determined there was no impairment of our goodwill as of November 30, 2025.

Significant management judgment is necessary in the determination of the fair value of a reporting unit as the estimated fair value of equity and of the implied control premium requires estimation of future cash flows and the evaluation of the present value of market participant cost savings and synergies.

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In accordance with applicable accounting guidance, we recognize assets acquired and liabilities assumed at their respective fair values as of the date of acquisition, with the related transaction costs expensed in the period incurred.

We use third party valuation specialists to assist in the determination of fair value of certain assets and liabilities at the merger date,

including loans, core deposit intangibles, customer list intangibles, trade name intangibles and time deposits.

We use third party valuation specialists to assist in the determination of fair value of certain assets and liabilities at the merger date, including loans, core deposit intangibles, and time deposits.

While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed on the acquisition date, the estimates are inherently uncertain.

For further discussion of our methodology for estimating the fair value of acquired assets and assumed liabilities in connection with our merger with Cambridge, see Note 3, “Mergers and Acquisitions” within the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

The allowance for credit losses on PCD loans is recognized within business combination accounting.

The allowance for credit losses on non-PCD loans is recognized as a provision expense in the same period as the business combination.

For further discussion of our methodology for estimating the fair value of acquired assets and assumed liabilities in connection with our merger with HarborOne, see Note 3, “Mergers and Acquisitions” within the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

The allowance for credit losses on acquired loans is recognized within business combination accounting.

For further discussion of our accounting policies for estimating credit losses on acquired loans, see Note 2, “Summary of Significant Accounting Policies” within the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

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Our defined benefit pension plans are accounted for on an actuarial basis, which requires the selection of various assumptions, including an expected long-term rate of return on plan assets for our Qualified Defined Benefit Pension Plan (“Defined Benefit Plan”), a discount rate, lump sum conversion rates, compensation and benefit limitation increase assumptions, mortality rates of participants and expectation of mortality improvement.

The expected long-term rate of return on plan assets that is utilized in determining Defined Benefit Plan pension expense is derived from periodic studies, which include a review of asset allocation strategies, investment policy, amount and types of expenses that will be paid from the Defined Benefit Plan, and the expected long-term return for the Defined Benefit Plan using recent forward looking capital market assumptions published by leading financial organizations.

Benefit Plan, and the expected long-term return for the Defined Benefit Plan using recent forward looking capital market assumptions published by leading financial organizations.

While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return.

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We apply the individual annual yield curve rates instead of the assumed discount rate to determine the service cost and interest cost, which more specifically links the cash flows related to service cost and interest cost to bonds maturing in their year of payment.

For our Defined Benefit Plan and the Non-Qualified Benefit Equalization Plan, the interest rates used to convert annuities to the actuarial equivalent lump sum amounts were selected based on the applicable segment rates under Internal Revenue Code Section 417(e) and rounded up to the nearest 25 basis points to account for the increase in bond yields during December 2024.

For our Defined Benefit Plan and the Non-Qualified Benefit Equalization Plan, the interest rates used to convert annuities to the actuarial equivalent lump sum amounts were selected based on the applicable segment rates under Internal Revenue Code Section 417(e) (November 2025, released in December 2025) and rounded to the nearest 25 basis points.

The Society of Actuaries (“SOA”) most recently issued mortality improvement tables during the year ended December 31, 2021.

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Significant differences in actual experience or significant changes in assumptions may materially affect the pension obligations.

The effects of actual results differing from assumptions and the changing of assumptions are included in

unamortized net actuarial gains and losses that are subject to amortization to pension expense over future periods.

The effects of actual results differing from assumptions and the changing of assumptions are included in unamortized net actuarial gains and losses that are subject to amortization to pension expense over future periods.

The unamortized pre-tax actuarial loss on all of our pension plans was $11.7 million and $34.1 million at December 31, 2025 and December 31, 2024, respectively.

The year-over-year change was primarily due to an increase in plan assets and an increase in discount rates, partially offset by a decrease in lump sum conversion rates assumptions used for determining the benefit obligation.

The year-over-year change was primarily due to an increase in plan assets, partially offset by a decrease in discount rates.

The overfunded status of all of our pension plans improved during the year ended December 31, 2025 to $130.4 million from $110.9 million primarily due to:

(i) actual pension plan investment returns greater than expected of $31.7 million;

and (ii) the favorable effect of an increase in discount rates of $22.2 million;

partially offset by (iii) changes in other actuarial assumptions and demographic data updates;

and (iv) the unfavorable effect of a decrease in lump sum conversion rates of $0.3 million.

partially offset by (ii) changes in other actuarial assumptions and demographic data updates;

and (iii) the unfavorable effect of a decrease in discount rates of $8.0 million.

The following table illustrates the sensitivity to a change in certain assumptions for the pension plans, holding all other assumptions constant:

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Relevant standards that we adopted during the year ended December 31, 2025:

In March 2023, the FASB issued ASU 2023-02, Investments–Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (“ASU 2023-02”).

This update permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if the following conditions are met:

It is probable that the income tax credits allocable to the tax equity investor will be available.

The tax equity investor does not have the ability to exercise significant influence over the operating and financial policies of the underlying project.

Substantially all of the projected benefits are from income tax credits and other income tax benefits.

Projected benefits include income tax credits, other income tax benefits, and other non-income-tax-related benefits.

The projected benefits are determined on a discounted basis, using a discount rate that is consistent with the cash flow assumptions used by the tax equity investor in making its decision to invest in the project.

The tax equity investor’s projected yield based solely on the cash flows from the income tax credits and other income tax benefits is positive.

The tax equity investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the tax equity investor’s liability is limited to its capital investment.

Under previously effective accounting standards, the proportional amortization method was allowable only for equity investments in low-income-housing tax credit structures.

Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense (benefit).

Updates made by ASU 2023-02 allow a reporting entity to make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis.

The Company had previously made an accounting policy election to account for its investments in low-income-housing tax credit investments using the proportional amortization method.

This election was made upon the Company’s adoption of ASU 2014-01, Investments–Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Qualified Affordable Housing Projects , which

introduced the option to apply proportional amortization to low-income-housing tax credit investments .

We adopted this standard on January 1, 2024 and such adoption did not have a material impact on our Consolidated Financial Statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

The amendments in this update are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

The amendments in this update:

Require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision-maker (“CODM”) and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”).

Require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition.

The other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss.

Require that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by ASC 280, Segment Reporting in interim periods.

Clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit.

However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements.

In other words, in addition to the measure that is most consistent with the measurement principles under U.S.

GAAP, a public entity is not precluded from reporting additional measures of a segment’s profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources.

Require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

Require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this update and all existing segment disclosures in Topic 280.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

The amendments in this update are intended to improve income tax disclosure requirements, primarily through enhanced disclosures related to the existing requirements to disclose a rate reconciliation, income taxes paid and certain other required disclosures.

Specifically, the amendments in this update:

Require that a public entity disclose, on an annual basis:

(1) specific categories in the rate reconciliation and (2) additional information for reconciling items that meet a quantitative threshold.

The update requires disclosure of such reconciling items according to requirements indicated in the update.

Require that all entities disclose certain disaggregated information regarding income taxes paid.

Require that all entities disclose certain disaggregated information regarding income tax expense.

Eliminate the requirement to:

(1) disclose the nature and estimate of the range of reasonably possible changes in the unrecognized tax benefits balance in the next 12 months or (2) make a statement that an estimate of the range cannot be made.

Remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

For public business entities, the amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024.

Adoption should be done on a prospective basis and retrospective application is permitted.

The adoption of this standard did not have a material impact on our Consolidated Financial Statements.

In August 2025, the FASB issued ASU 2025-05, Financial Instrument- Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets.

The amendments in this update provide for the following when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers :

In developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset.

An entity other than a public business entity that elects the practical expedient is permitted to make an accounting policy election to consider collection activity after the balance sheet date when estimating expected credit losses.

The adoption of this standard did not have a material impact on our Consolidated Financial Statements.

In November 2025, the FASB issued ASU 2025-08, Financial Instrument- Credit Losses (Topic 326):

Purchased Loans.

The amendments in this update expand the population of acquired financial assets subject to the gross-up approach in Topic 326, Financial Instrument- Credit Losses .

In accordance with the amendments in this update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” (defined below) are purchased seasoned loans and accounted for using the gross-up approach at acquisition.

Specifically, after an entity determines that a loan is a non-PCD asset based on its assessment of credit deterioration experienced since origination, the entity should apply the guidance described in the amendments to determine whether the loan is seasoned and, therefore, should be accounted for using the gross-up approach.

All non-PCD loans (excluding credit cards) that are acquired in a business combination are deemed seasoned.

Other non-PCD loans (excluding credit cards) are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans.

We elected to early-adopt this ASU and applied the amendments to loans acquired in our merger with HarborOne.

Refer to Note 3, “Mergers and Acquisitions” within the Notes to the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K for further information including the initial allowance for loan losses recognized on purchased seasoned loans acquired in the merger.

Relevant standards that were recently issued but which we had not yet adopted as of December 31, 2025:

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If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation and S-X or Regulation S-K, the pending content of the related amendment will be removed from the codification and will not become effective for any entity.

Early adoption is not permitted and the

amendments are required to be applied on a prospective basis.

Early adoption is not permitted and the amendments are required to be applied on a prospective basis.

We expect the adoption of this standard will not have a material impact on our Consolidated Financial Statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

Specifically, the amendments in this update:

Require that a public entity disclose, on an annual basis:

(1) specific categories in the rate reconciliation and (2) additional information for reconciling items that meet a quantitative threshold.

The update requires disclosure of such reconciling items according to requirements indicated in the update.

Require that all entities disclose certain disaggregated information regarding income taxes paid.

Require that all entities disclose certain disaggregated information regarding income tax expense.

Eliminate the requirement to:

For public business entities, the amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024.

Adoption should be done on a prospective basis and retrospective application is permitted.

In November 2024, the FASB issued ASU 2024-03, Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40).

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The amendments in this update are to be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this update or (2) retrospectively to any or all prior periods presented in the financial statements.

In April 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810):

Determining the Accounting Acquirer of a Variable Interest Entity .

The amendments in this update are intended to improve the requirements for identifying the accounting acquirer in Topic 805, Business Combinations.

The amendments in this update differ from current generally accepted accounting principles because, for certain transactions, they replace the requirement that the primary beneficiary always is the acquirer with an assessment that requires an entity to consider the factors to determine which entity is the accounting acquirer.

The amendments in this update enhance the comparability of financial statements across entities engaging in acquisition transactions effected primarily by exchanging equity interests when the legal acquiree meets the definition of a business.

Specifically, under the amendments, acquisition transactions in which the legal acquiree is a variable interest entity will, in more instances, result in the same accounting outcomes as economically similar transactions in which the legal acquiree is a voting interest entity.

The amendments in this update do not change the accounting for a transaction determined to be a reverse acquisition or a transaction in which the legal acquirer is not a business and is determined to be the accounting acquiree.

For public business entities, the amendments in ASU 2025-03 are effective for annual periods beginning after December 15, 2026 and interim periods within those annual periods.

Adoption should be done on a prospective basis.

Early adoption is permitted as of the beginning of an interim or annual reporting period.

We do not expect the adoption of this standard will have a material impact on our Consolidated Financial Statements.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements .

The amendments in this update help clarify and refine hedge accounting requirements, including clarifications to documentation and designation in regards to hedge relationships.

The update introduces improvements to hedge accounting to better align financial reporting with the economic results of an entity's risk management activities.

Early adoption is permitted.

We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements.

The amendments in this update clarify interim disclosure requirements and the applicability of Topic 270.

The amendments in this update result in a comprehensive list of interim disclosures that are required by GAAP.

In developing the list of disclosures required by other Topics, the Board focused on identifying the interim disclosures that are currently required under GAAP.

The objective of the amendments is to provide clarity about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements.

The amendments in this update also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

The intent of the disclosure principle, which is modeled after a previous SEC disclosure requirement, is to help entities determine whether disclosures not specified in Topic 270 should be provided in interim reporting periods.

The amendments in this update also clarify the applicability of Topic 270, the types of interim reporting, and the form and content of interim financial statements in accordance with GAAP.

For public business entities, the amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Adoption can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements.

Early adoption is permitted.

We do not expect the adoption of this standard will have a material impact on our Consolidated Financial Statements.

Management of Market Risk

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economy has experienced both sharp increases and decreases in interest rates.

As noted in the earlier section titled “Outlook and Trends” within this Item 7, beginning in March 2022, the Federal Open Market Committee (“FOMC”) voted to increase the federal funds rate multiple times from a range of 0.00% to 0.25% to a range of 5.25% to 5.50% on July 26, 2023.

The FOMC next adjusted the federal funds rate on September 18, 2024, when the FOMC reduced the target range by 50 basis points to a range of 4.75% to 5.00% and again on November 7, 2024, when the FOMC reduced the target range further by 25 basis points to a range of 4.50% to 4.75%.

Refer to the earlier section titled “Outlook and Trends” within this Item 7, for a description of recent actions by the Federal Open Market Committee (“FOMC”) regarding changes to the range of the federal funds rate.

Our market risk management framework is designed for the potential for such rapid changes in interest rates, by establishing policy limits on such rapid shocks and periodically back-testing modeled to actual results.

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Interest Rates

(basis points) (1) Year 1

(basis points) (1)

Level Policy Limit

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(1) Assumes an immediate uniform change in interest rates at all maturities.

As of December 31, 2024, our model, as indicated above, shows a decline in our net interest income in rising rate scenarios.

In the rising rate scenarios, funding costs are modeled to rise faster than income on earning assets, due, in part, to the mix of funding which has shifted towards higher rate paying deposits, which are more sensitive to changes in interest rates.

As shown in the table above, the model generated similar results as of December 31, 2023.

That is, the model showed a decline in our net interest income in the rising rate scenarios as funding costs were modeled to rise faster than income on earning assets, due, in part, to the shift in our mix of funding.

As of December 31, 2025, our model, as indicated above, shows modest changes in net interest income in rising and falling rate scenarios.

In the rising rate scenarios, modeled funding costs are expected to outpace the growth in earning asset income.

In the falling rate scenarios, net interest income is essentially unchanged, except for the shock down 400 basis point scenario, where funding costs are modeled to fall faster than interest earning asset yields.

This represents a modest increase in asset sensitivity from December 31, 2024, driven by a modest decrease in asset duration, due in part to the reduced impact of the cash flow hedge portfolio.

The simulation results are within policy limits and management therefore does not expect a material change to our current strategy over the near term.

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When the Federal Reserve began raising interest rates in March of 2022 from very low levels, management began evaluating a derivative strategy designed to limit our exposure to downward rate scenarios.

In 2022, management executed a total of $2.4 billion in notional value of receive-fixed interest rate swap agreements on floating-rate loans.

In 2022, management executed receive-fixed interest rate swap agreements on floating-rate loans which have a total notional value of $1.9 billion as of December 31, 2025.

These swaps are designated as cash flow hedges and management believes these derivatives provide significant protection against falling interest rates, as they have the effect of converting floating rate loan exposure to fixed rates.

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EVE Interest Rate Sensitivity (2)

Change in Interest Rates (basis points) (1) As of December 31, 2024 EVE as a

Change in Interest Rates (basis points) (1)

As of December 31, 2025 EVE as a

Percentage of

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(400) (15.1) % (30) % 16.45 %

Change in Interest Rate (basis points) (1) As of December 31, 2023 EVE as a

Change in Interest Rates (basis points) (1)

As of December 31, 2024 EVE as a

Percentage of

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We may elect to raise additional capital through the sale of additional equity or debt financing to fund business activities such as strategic acquisitions, share repurchases, or other purposes beyond the next twelve months.

We participate in the IntraFi Network, which allows us to provide access to FDIC deposit insurance protection on customer deposits for consumers, businesses and public entities that exceed same-bank FDIC insurance thresholds.

We can elect to sell or repurchase this funding as reciprocal deposits from other IntraFi Network banks depending on our funding needs.

As of both December 31, 2024 and 2023, we had no IntraFi Network one-way sell deposits.

At December 31, 2024 and December 31, 2023, we had repurchased $2.1 billion and $1.3 billion, respectively, of previously sold reciprocal deposits.

We participate in a reciprocal deposit network, which allows us to provide access to FDIC deposit insurance protection on customer deposits for consumers, businesses and public entities that exceed same-bank FDIC insurance thresholds.

We can elect to sell or repurchase this funding as reciprocal deposits from other banks in the same network depending on our funding needs.

As of both December 31, 2025 and 2024, we had no one-way sell deposits.

At December 31, 2025 and 2024, we had repurchased $2.3 billion and $2.1 billion, respectively, of previously sold reciprocal deposits.

Although customer deposits remain our preferred source of funds, maintaining additional sources of liquidity is part of our prudent liquidity risk management practices.

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At December 31, 2025, we had the ability to borrow up to $3.9 billion from the Federal Reserve Bank of Boston Discount Window.

At December 31, 2024, cash and cash equivalents were $1.0 billion and secured borrowing capacity at the Federal Reserve Bank and Federal Home Loan Bank totaled $5.2 billion, providing total liquidity sources of $6.2 billion.

At December 31, 2025, cash and cash equivalents were $316.9 million and secured borrowing capacity at the Federal Reserve Bank and Federal Home Loan Bank totaled $7.0 billion, providing total liquidity sources of $7.3 billion.

These liquidity sources provided 90% coverage of all customer uninsured and uncollateralized deposits, which totaled $8.1 billion, or 32% of total deposits, as of December 31, 2025.

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(In thousands)

IntraFi Network reciprocal deposits $ 2,063,135 $ — $ 1,309,816 $ —

Brokered certificates of deposit (1) — — 50,000 —

Brokered deposits (1)

$ 84,703 $ — $ — $ —

Reciprocal deposits 2,267,539 — 2,063,135 —

Federal Home Loan Bank (2)

Federal Reserve Bank of Boston - Bank Term Funding Program (3) — — — 2,449,438

198,058 3,049,296 17,589 2,375,565

Federal Reserve Bank of Boston—Discount Window (3)

— 3,902,128 — 2,825,634

Total $ 2,550,300 $ 6,951,424 $ 2,080,724 $ 5,201,199

(1) The additional borrowing capacity has not been assessed for this category.

(2) As of December 31, 2024 and 2023, loans with a carrying value of $2.3 billion and $4.6 billion, respectively, and securities with a carrying value of $1.0 billion at December 31, 2024 were pledged to the FHLBB resulting in this additional unused borrowing capacity.

No securities were pledged to the FHLBB as collateral as of December 31, 2023.

(3) Securities with a carrying value of $2.4 billion at December 31, 2023 were pledged to the Federal Reserve Bank of Boston under the Bank Term Funding Program, resulting in this additional unused borrowing capacity.

The Bank Term Funding Program ceased extending new loans March 11, 2024.

Accordingly, we had no additional capacity nor any securities pledged to the Federal Reserve Bank of Boston under the Bank Term Funding Program as of December 31, 2024.

(4) Loans with a carrying value of $3.1 billion and $1.1 billion at December 31, 2024 and 2023, respectively, and securities with a carrying value of $794.8 million and $168.8 million at December 31, 2024 and 2023, respectively, were pledged to the Discount Window, resulting in this additional borrowing capacity.

The increase in the amount of securities pledged to the Discount Window at December 31, 2024 from December 31, 2023 was due to additional securities pledged which were previously pledged as collateral to the Bank Term Funding Program.

(1) Additional borrowing capacity has not been assessed in this category.

(2) As of December 31, 2025 and 2024, loans with a carrying value of $5.0 billion and $2.3 billion, respectively, and securities with a carrying value of $157.6 million and $1.0 billion, respectively, were pledged to the FHLBB resulting in this additional unused borrowing capacity.

The outstanding balance of FHLB borrowings as of December 31, 2025 shown above excludes the remaining premium related to borrowings assumed in connection with our merger with HarborOne of $1.6 million.

(3) As of December 31, 2025 and 2024, loans with a carrying value of $5.0 billion and $3.1 billion, respectively, and securities with a carrying value of $414.2 million and $794.8 million, respectively, were pledged to the Discount Window, resulting in this additional borrowing capacity.

We believe that advanced preparation, early detection, and prompt responses can avoid, minimize, or shorten potential liquidity constraints.

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At December 31, 2025 and 2024, we exceeded all applicable regulatory capital requirements, and were considered “well capitalized” under regulatory guidelines.

For additional information regarding our regulatory capital requirements, refer to Note

14, “Minimum Regulatory Capital Requirements” within the Notes to the Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K.

For additional information regarding our regulatory capital requirements, refer to Note 15, “Minimum Regulatory Capital Requirements” within the Notes to the Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K.

Contractual Obligations, Commitments and Contingencies.

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Commitments to extend credit (1)

$ 1,599,684 $ 5,703,067 $ 7,302,751

Standby letters of credit 80,914 2,691 83,605

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis