INDEPENDENT BANK CORP 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with the consolidated financial statements, notes and tables included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (the “2024 Form 10-K”). Cautionary Statement Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q (this “Report”), in Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by forward-looking terminology such as “should,” “could,” “will,” “may,” “expect,” “believe,” “forecast,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” “estimate,” “intend,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties and our actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those 51 Table of Contents contemplated by such forward-looking statements, in addition to those risk factors listed under the “Risk Factors” section of the 2024 Form 10-K, include but are not limited to: • adverse economic conditions in the regional and local economies within the New England region and the Company’s market area; • events impacting the financial services industry, including high profile bank failures, and any resulting decreased confidence in banks among depositors, investors, and other counterparties, as well as competition for deposits and significant disruption, volatility and depressed valuations of equity and other securities of banks in the capital markets; • the effects to the Company of an increasingly competitive labor market, including the possibility that the Company will have to devote significant resources to attract and retain qualified personnel; • political and policy uncertainties, changes in U.S. and international trade policies, such as tariffs or other factors, the prolongment of the U.S. government shutdown, and the potential impact of such factors on the Company and its customers, including the potential for decreases in deposits and loan demand, unanticipated loan delinquencies, loss of collateral and decreased service re venues ; • the instability or volatility in financial markets and unfavorable domestic or global general economic, political or business conditions, whether caused by geopolitical concerns, including the Russia/Ukraine conflict, the conflicts in Israel, Iran and surrounding areas and uncertainties surrounding the trajectories of such conflicts; • unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on the Company’s local economies or the Company’s business caused by adverse weather conditions and natural disasters, changes in climate, public health crises or other external events and any actions taken by governmental authorities in response to any such events; • adverse changes or volatility in the local real estate market; • changes in interest rates and any resulting impact on interest earning assets and/or interest bearing liabilities, the level of voluntary prepayments on loans and the receipt of payments on mortgage-backed securities, decreased loan demand or increased difficulty in the ability of borrowers to repay variable rate loans; • risks related to the Company’s acquisition of Enterprise Bancorp, Inc., parent of Enterprise Bank and Trust Company (collectively, “Enterprise”) and acquisitions generally, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; unforeseen integration issues or impairment of goodwill and/or other intangibles; and the Company’s inability to achieve expected revenues, cost savings, synergies, and other benefits at levels or within the timeframes originally anticipated; • the effect of laws, regulations, new requirements or expectations, or additional regulatory oversight in the highly regulated financial services industry, and the resulting need to invest in technology to meet heightened regulatory expectations, increased costs of compliance or required adjustments to strategy; • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; • higher than expected tax expense, including as a result of failure to comply with general tax laws and changes in tax laws; • increased competition in the Company’s market areas, including competition that could impact deposit gathering, retention of deposits and the cost of deposits, increased competition due to the demand for innovative products and service offerings, and competition from non-depository institutions which may be subject to fewer regulatory constraints and lower cost structures; • a deterioration in the conditions of the securities markets; • a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainties surrounding the federal budget; • inability to adapt to changes in information technology, including changes to industry accepted delivery models driven by a migration to the internet as a means of service delivery, including any inability to effectively implement new technology-driven products, such as artificial intelligence; • electronic or other fraudulent activity within the financial services industry, especially in the commercial banking sector; • adverse changes in consumer spending and savings habits; • the effect of laws and regulations regarding the financial services industry, including the need to invest in technology to meet heightened regulatory expectations or the introduction of new requirements or expectations resulting in increased costs of compliance or required adjustments to strategy; • changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Company’s business and the associated costs of such changes; • the Company’s potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions; 52 Table of Contents • changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; • operational risks related to the Company and its customers’ reliance on information technology; cyber threats, attacks, intrusions, and fraud; and outages or other issues impacting the Company or its third party service providers which could lead to interruptions or disruptions of the Company’s operating systems, including systems that are customer facing, and adversely impact the Company’s business; and • any unexpected material adverse changes in the Company’s operations or earnings. Except as required by law, the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise. Any public statements or disclosures by the Company following this Report which modify or impact any of the forward-looking statements contained in this Report will be deemed to modify or supersede such statements in this Report. All material intercompany balances and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current year’s presentation, including a reclassification of the Company’s small business portfolio, with the majority of the portfolio reclassified into the commercial and industrial category, and the remainder of the portfolio, consisting of loans secured by non-owner occupied real estate, reclassified to the commercial real estate category. 53 Table of Contents Selected Quarterly Financial Data The selected consolidated financial and other data of the Company set forth below does not purport to be complete and should be read in conjunction with, and is qualified in its entirety by, the more detailed information, including the Consolidated Financial Statements and related notes, appearing elsewhere in this Report. Three Months Ended September 30 2025 June 30 2025 March 31 2025 December 31 2024 September 30 2024 (Dollars in thousands, except per share data) Financial condition data Securities $ 3,325,015 $ 2,695,280 $ 2,719,792 $ 2,711,349 $ 2,765,575 Loans 18,452,443 14,533,828 14,491,969 14,508,378 14,360,807 Allowance for credit losses (190,476) (144,773) (144,092) (169,984) (163,696) Goodwill and other intangible assets 1,225,106 994,814 996,013 997,356 998,773 Total assets 24,993,239 20,048,934 19,888,209 19,373,565 19,408,117 Total deposits 20,295,869 15,893,740 15,676,017 15,305,978 15,441,023 Total borrowings 775,377 759,428 859,874 701,374 663,380 Stockholders’ equity 3,546,887 3,074,856 3,033,392 2,993,120 2,977,148 Non-performing loans 86,597 56,217 89,493 101,529 104,248 Non-performing assets 88,697 58,317 89,493 101,529 104,358 Income statement Interest income $ 294,753 $ 218,192 $ 211,920 $ 216,320 $ 216,524 Interest expense 91,409 70,696 66,415 71,659 74,821 Net interest income 203,344 147,496 145,505 144,661 141,703 Provision for credit losses 38,519 7,200 15,000 7,500 19,500 Non-interest income 40,398 34,308 32,539 32,191 33,549 Non-interest expenses 160,836 108,798 105,878 106,422 100,443 Net income 34,262 51,101 44,424 50,033 42,947 Per share data Net income—basic $ 0.69 $ 1.20 $ 1.04 $ 1.18 $ 1.01 Net income—diluted 0.69 1.20 1.04 1.18 1.01 Cash dividends declared 0.59 0.59 0.59 0.57 0.57 Book value per share 71.24 72.13 71.19 70.43 70.08 Tangible book value per share (1) 46.63 48.80 47.81 46.96 46.57 Performance ratios Return on average assets 0.55 % 1.04 % 0.93 % 1.02 % 0.88 % Return on average common equity 3.82 % 6.68 % 5.94 % 6.64 % 5.75 % Net interest margin (on a fully tax equivalent basis) 3.62 % 3.37 % 3.42 % 3.33 % 3.29 % Dividend payout ratio 73.41 % 49.20 % 54.53 % 48.40 % 56.37 % Asset Quality Ratios Non-performing loans as a percent of gross loans 0.47 % 0.39 % 0.62 % 0.70 % 0.73 % Non-performing assets as a percent of total assets 0.35 % 0.29 % 0.45 % 0.52 % 0.54 % Allowance for credit losses as a percent of total loans 1.03 % 1.00 % 0.99 % 1.17 % 1.14 % 54 Table of Contents Allowance for credit losses as a percent of non-performing loans 219.96 % 257.53 % 161.01 % 167.42 % 157.03 % Capital ratios Equity to assets 14.19 % 15.34 % 15.25 % 15.45 % 15.34 % Tangible equity to tangible assets (1) 9.77 % 10.92 % 10.78 % 10.86 % 10.75 % Tier 1 leverage capital ratio 10.11 % 11.44 % 11.43 % 11.32 % 11.22 % Common equity tier 1 capital ratio 12.84 % 14.70 % 14.52 % 14.65 % 14.57 % Tier 1 risk-based capital ratio 12.84 % 14.70 % 14.52 % 14.65 % 14.57 % Total risk-based capital ratio 15.68 % 18.08 % 17.91 % 16.04 % 15.95 % (1) Represents a non-GAAP measure. For reconciliation to GAAP book value per share, see Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Executive Level Overview - Non-GAAP Measures” below. 55 Table of Contents Executive Level Overview Management evaluates the Company’s operating results and financial condition using measures that include net income, earnings per share, return on assets and equity, return on tangible common equity, net interest margin, tangible book value per share, asset quality indicators, and many others. These metrics are used by management to make key decisions regarding the Company’s balance sheet, liquidity, interest rate sensitivity, and capital resources and assist with identifying opportunities for improving the Company’s financial position or operating results. The Company is focused on organic growth, but will also consider acquisition opportunities that are expected to provide a satisfactory financial return, including the recent acquisition of Enterprise, which closed on July 1, 2025. The transaction included the acquisition of $3.9 billion in loans and $4.4 billion in deposits, each at fair value, and resulted in the addition of twenty-seven branch locations in northern Massachusetts and southern New Hampshire. Third Quarter 2025 Results Net income for the three months ended September 30, 2025 was $34.3 million, or $0.69 on a diluted earnings per share basis, as compared to $42.9 million, or $1.01 on a diluted earnings per share basis, for the three months ended September 30, 2024, representing decreases of 20.2% and 31.7%, respectively. The decrease in net income was primarily driven by merger-related costs and the current period provision for credit losses associated with the Company’s third quarter acquisition of Enterprise. Specifically, the 2025 third quarter results include pre-tax merger-related costs of $23.9 million and a $34.5 million provision for credit losses attributable to the closing of the Enterprise acquisition. Excluding these merger-related costs and the provision for credit losses associated with the acquisition, and their related tax effects, operating net income was $77.4 million, or $1.55 per diluted share for the third quarter of 2025. There were no such non-core costs recorded during the third quarter of 2024. Third quarter 2025 results reflected solid overall business activity amidst a continued challenging environment, including the following key drivers: • Successful close of the Enterprise acquisition on July 1, 2025; • Net interest margin increased by 25 basis point to 3.62%; • Robust organic commercial & industrial loan growth; • Relatively flat total loan and deposit balances; • Wealth assets under administration increased to $9.2 billion; • Operating efficiency ratio decreased to 56.2%; • Loan loss provision of $38.5 million includes $34.5 million attributable to acquired Enterprise loan portfolio; • Repurchase of approximately 365,000 share for $23.4 million. 56 Table of Contents Interest-Earning Assets The results depicted in the following table reflect the trend of the Company’s interest-earning assets over the past five quarters. While the Company employs a longer term strategy that typically emphasizes loan growth commensurate with overall economic growth, changes over the trailing five quarter period reflect relatively consistent balances of total interest-earning assets. For the third quarter of 2025, the increase in interest-earning assets was driven primarily the Enterprise acquisition, which included the addition of $3.9 billion in loans and $590.3 million in available for sale securities. The following table summarizes the Company’s average interest-earning assets for each period presented: Management strives to be disciplined about loan pricing and considers interest rate sensitivity when generating loan assets. In addition, management takes a disciplined approach to credit underwriting, seeking to avoid undue credit risk and credit losses. 57 Table of Contents Funding and Net Interest Margin The Company’s overall sources of funding reflect strong business and retail deposit growth with a management emphasis on core deposit growth to fund loans. The increase in funding sources during the third quarter of 2025 were driven primarily the addition of $4.4 billion in deposits acquired from Enterprise. The following chart shows sources of funding for the trailing five quarters: 58 Table of Contents The Company’s ratio of core deposits to total deposits of 83.1% remained relatively consistent at September 30, 2025. The following chart shows the percentage of core deposits for the trailing five quarters: (1) The percentage of core deposits to total deposits presented above is inclusive of reciprocal deposits collected through the Company’s participation in the IntraFi Network. The net interest margin of 3.62% increased 25 basis points when compared to the prior quarter, including an 8 basis point lift from acquired loan purchase accounting accretion. The remaining increase was driven by the acquisition of a slightly higher adjusted margin from Enterprise, continued benefit from long term asset repricing, and a 5 basis point lift from discount accretion on the acquired securities. The following table shows the net interest margin and cost of deposits trends for the trailing five quarters: 59 Table of Contents Non-interest Income Non-interest income is primarily comprised of deposit account fees, interchange and ATM fees, investment management fees and mortgage banking income. The increases in non-interest income during the third quarter of 2025 were driven primarily by the impact of the Enterprise acquisition. The following chart shows trends in the components of non-interest income over the past five quarters: 60 Table of Contents Expense Control Management seeks to take a balanced approach to non-interest expense control by monitoring ongoing operating expenses while making needed capital expenditures and prudently investing in growth initiatives. The Company’s primary expenses arise from employee salaries and benefits, as well as expenses associated with buildings and equipment. The following chart depicts the Company’s efficiency ratio on a GAAP basis (calculated by dividing non-interest expense by the sum of non-interest income and net interest income), as well as the Company’s efficiency ratio on a non-GAAP operating basis, (calculated by dividing non-interest expense, excluding certain non-core items, such as merger-related costs, by the sum of non-interest income, excluding certain non-core items, and net interest income) over the past five quarters: *See "Non-GAAP Measures" below for a reconciliation to GAAP financial measures. 61 Table of Contents Capital The Company’s approach with respect to revenue and expense is designed to promote long-term earnings growth, which in turn contributes to capital growth. Capital is primarily impacted by earnings retention, dividends, changes in other comprehensive income, and opportunistic share repurchases. In addition, third quarter 2025 capital results were impacted by the closing of the Enterprise acquisition. The following chart shows the Company’s book value and tangible book value per share over the past five quarters: *See “Non-GAAP Measures” below for a reconciliation to GAAP financial measures. The Company declared a quarterly cash dividend of $0.59 per share for the third quarter of 2025, representing an increase of 3.5% from the 2024 third quarter dividend rate of $0.57. Non-GAAP Measures When management assesses the Company’s financial performance for purposes of making day-to-day and strategic decisions, it does so based upon the performance of its core banking business, which is primarily derived from the combination of net interest income and non-interest or fee income, reduced by operating expenses, the provision for credit losses, and the impact of income taxes and other non-core items shown in the table that follows. There are items that impact the Company’s results that management believes are unrelated to its core banking business such as gains or losses on the sales of securities, merger and acquisition expenses, provision for credit losses on acquired portfolios, loss on extinguishment of debt, impairment and other items. Management, therefore, excludes items management considers to be non-core when computing the Company’s non-GAAP operating earnings and operating EPS, non-interest income on an operating basis, non-interest expense on an operating basis, and efficiency ratio on an operating basis. Management believes excluding these items facilitates greater visibility into the Company’s core banking business and underlying trends that may, to some extent, be obscured by inclusion of such items. Management also supplements its evaluation of financial performance with analysis of tangible book value per share (which is computed by dividing stockholders’ equity less goodwill and identifiable intangible assets, or “tangible common equity,” by common shares outstanding), and the tangible common equity ratio (which is computed by dividing tangible common equity by “tangible assets,” defined as total assets less goodwill and other intangibles). The Company has included information on tangible book value per share and the tangible common equity ratio because management believes that investors may find it useful to have access to the same analytical tools used by management. As a result of merger and acquisition activity, the Company has recognized goodwill and other intangible assets in conjunction with business combination accounting principles. Excluding the impact of goodwill and other intangibles in measuring asset and capital values for the ratios provided, along with other bank standard capital ratios, provides a framework to compare the capital adequacy of the Company to other companies in the financial services industry. 62 Table of Contents These non-GAAP measures should not be viewed as a substitute for operating results and other financial measures determined in accordance with GAAP. An item which management excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP performance measures, including operating net income, operating EPS, tangible book value per share, and the tangible common equity ratio, are not necessarily comparable to non-GAAP performance measures which may be presented by other companies. The following table summarizes the impact of non-core items on net income and reconciles non-GAAP net operating earnings to net income available to common shareholders for the periods indicated: Three Months Ended September 30 Net Income Diluted Earnings Per Share 2025 2024 2025 2024 (Dollars in thousands, except per share data) Net income available to common shareholders (GAAP) $ 34,262 $ 42,947 $ 0.69 $ 1.01 Non-GAAP adjustments Provision for non-PCD acquired loans 34,519 — 0.69 — Non-interest expense components Add: merger and acquisition expenses 23,893 — 0.48 — Non-core increases to income before taxes 58,412 — 1.17 — Net taxes associated with non-core items (1) (15,320) — (0.31) — Total tax impact (15,320) — (0.31) — Non-core increases to net income 43,092 — 0.86 — Operating net income (Non-GAAP) $ 77,354 $ 42,947 $ 1.55 $ 1.01 Nine Months Ended September 30 Net Income Diluted Earnings Per Share 2025 2024 2025 2024 (Dollars in thousands, except per share data) Net income available to common shareholders (GAAP) $ 129,787 $ 142,047 $ 2.88 $ 3.34 Non-GAAP adjustments Provision for non-PCD acquired loans 34,519 — 0.76 — Non-interest expense components Add: merger and acquisition expenses 27,287 — 0.61 — Non-core increases to income before taxes 61,806 — 1.37 — Net taxes associated with non-core items (1) (15,913) — (0.35) — Add: adjustment for tax effect of previously incurred merger and acquisition expenses 381 — 0.01 — Total tax impact (15,532) — (0.34) — Non-core increases to net income 46,274 — 1.03 — Operating net income (Non-GAAP) $ 176,061 $ 142,047 $ 3.91 $ 3.34 (1) The net tax benefit associated with non-core items is determined by assessing whether each non-core item is included or excluded from net taxable income and applying the Company’s combined marginal tax rate to only those items included in net taxable income. 63 Table of Contents The following table summarizes the impact of non-core items with respect to the Company’s total revenue, non-interest income as a percentage of total revenue, and the efficiency ratio for the periods indicated: Three Months Ended September 30 2025 June 30 2025 March 31 2025 December 31 2024 September 30 2024 (Dollars in thousands) Net interest income (GAAP) $ 203,344 $ 147,496 $ 145,505 $ 144,661 $ 141,703 (a) Non-interest income (GAAP) $ 40,398 $ 34,308 $ 32,539 $ 32,191 $ 33,549 (b) Non-interest expense (GAAP) $ 160,836 $ 108,798 $ 105,878 $ 106,422 $ 100,443 (c) Less: Merger and acquisition expense 23,893 2,239 1,155 1,902 — Non-interest expense on an operating basis (Non-GAAP) $ 136,943 $ 106,559 $ 104,723 $ 104,520 $ 100,443 (d) Total revenue (GAAP) $ 243,742 $ 181,804 $ 178,044 $ 176,852 $ 175,252 (a+b) Ratios Efficiency ratio (GAAP) (calculated by dividing total non-interest expense by total revenue) 65.99 % 59.84 % 59.47 % 60.18 % 57.31 % (c/(a+b)) Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total non-interest expense on an operating basis by total revenue) 56.18 % 58.61 % 58.82 % 59.10 % 57.31 % (d/(a+b)) 64 Table of Contents The following table summarizes the calculation of tangible common equity to tangible assets ratio and tangible book value per share and shows the reconciliation of non-GAAP measures: September 30 2025 June 30 2025 March 31 2025 December 31 2024 September 30 2024 Tangible common equity (Dollars in thousands, except per share data) Stockholders’ equity (GAAP) $ 3,546,887 $ 3,074,856 $ 3,033,392 $ 2,993,120 $ 2,977,148 (a) Less: Goodwill and other intangibles 1,225,106 994,814 996,013 997,356 998,773 Tangible common equity (Non-GAAP) 2,321,781 2,080,042 2,037,379 1,995,764 1,978,375 (b) Tangible assets Assets (GAAP) 24,993,239 20,048,934 19,888,209 19,373,565 19,408,117 (c) Less: Goodwill and other intangibles 1,225,106 994,814 996,013 997,356 998,773 Tangible assets (Non-GAAP) $ 23,768,133 $ 19,054,120 $ 18,892,196 $ 18,376,209 $ 18,409,343 (d) Common shares 49,787,305 42,627,286 42,610,271 42,500,611 42,480,765 (e) Common equity to assets ratio (GAAP) 14.19 % 15.34 % 15.25 % 15.45 % 15.34 % (a/c) Tangible common equity to tangible assets ratio (Non-GAAP) 9.77 % 10.92 % 10.78 % 10.86 % 10.75 % (b/d) Book value per share (GAAP) $ 71.24 $ 72.13 $ 71.19 $ 70.43 $ 70.08 (a/e) Tangible book value per share (Non-GAAP) $ 46.63 $ 48.80 $ 47.81 $ 46.96 $ 46.57 (b/e) Critical Accounting Estimates Critical accounting policies are defined as those that are reflective of significant management judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. Certain estimates associated with these policies inherently have a greater reliance on the use of assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. These critical accounting estimates are defined as estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material impact on financial condition or results of operations. There have been no material changes in critical accounting estimates during the first nine months of 2025. Refer to “Critical Accounting Estimates” in Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the 2024 Form 10-K for a complete listing of critical accounting policies. FINANCIAL POSITION Securities Portfolio The Company's securities portfolio primarily consists of U.S. Treasury, U.S. government agency securities, agency mortgage-backed securities, agency collateralized mortgage obligations, taxable and non-taxable municipals and small business administration pooled securities. Also included in the Company’s securities portfolio are trading and equity securities related to certain employee benefit programs. The majority of these securities are investment grade debt obligations with average lives of five years or less. U.S. government agency securities entail a lesser degree of risk than loans made by the Bank by virtue of the guarantees that back them, require less capital under risk-based capital rules than non-insured or non-guaranteed mortgage loans, are more liquid than individual mortgage loans, and may be used to collateralize borrowings or other obligations of the Bank. The Bank views its securities portfolio as a source of income and liquidity. Interest and principal payments generated from securities provide a source of liquidity to fund loans and meet short-term cash needs. Total securities increased by $613.7 million, or 22.63%, to $3.3 billion at September 30, 2025 compared to $2.7 billion at December 31, 2024, primarily attributable to the acquisition of the Enterprise available for sale securities portfolio. 65 Table of Contents During the nine months ended September 30, 2025, new purchases of $326.2 million and unrealized gains of $45.9 million in the available for sale portfolio were offset by sales, maturities, calls, and paydowns in the combined available for sale and held to maturity portfolios. Total securities represented 13.3% and 14.0% of total assets at September 30, 2025 and December 31, 2024, respectively. The Company estimates expected credit losses for its available for sale and held to maturity securities in accordance with the current expected credit loss (“CECL”) methodology. Further details regarding the Company's measurement of expected credit losses on securities can be found in Note 4 “Securities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report. Residential Mortgage Loan Sales The Bank’s residential mortgage loans are generally originated in compliance with terms, conditions and documentation which permit the sale of such loans to investors in the secondary market. Loan sales in the secondary market provide funds for additional lending and other banking activities. Depending on market conditions, the Bank may sell the servicing of the sold loans for a servicing released premium, simultaneous with the sale of the loan. For the remainder of the sold loans for which the Company retains the servicing, a mortgage servicing asset is recognized. Additionally, as part of its asset/liability management strategy, the Bank may opt to retain certain residential real estate loan originations for its portfolio. When a loan is sold, the Company enters into agreements that contain representations and warranties about the characteristics of the loans sold and their origination. The Company may be required to either repurchase mortgage loans or to indemnify the purchaser from losses if representations and warranties are found to be not accurate in all material respects. The Company incurred no material losses related to residential mortgage repurchases during the three and nine months ended September 30, 2025 and 2024. The following table shows the total residential real estate loans closed and the breakdown of amounts held in portfolio or sold (or held for sale) in the secondary market during the periods indicated: Table 1 - Closed Residential Real Estate Loans Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 (Dollars in thousands) Held in portfolio $ 78,815 $ 49,062 $ 211,181 $ 136,574 Sold or held for sale in the secondary market 82,323 79,960 178,613 190,842 Total closed loans $ 161,138 $ 129,022 $ 389,794 $ 327,416 The table below reflects additional information related to the loans sold during the periods indicated and the sale or retention of the related servicing rights: Table 2 - Residential Mortgage Loan Sales Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 (Dollars in thousands) Sold with servicing rights released $ 81,011 $ 77,656 $ 166,896 $ 172,386 Sold with servicing rights retained (1) 536 3,074 1,743 7,825 Total loans sold $ 81,547 $ 80,730 $ 168,639 $ 180,211 (1) All loans sold with servicing rights retained during the above periods were sold without recourse. In the event of a sale with servicing rights retained, a mortgage servicing asset is established, which represents the then current estimated fair value based on market prices for comparable mortgage servicing contracts, when available, or alternatively is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing rights are recorded in other assets in the Consolidated Balance Sheets, are amortized in proportion to and over the period of estimated net servicing income, and are assessed for impairment based on fair value at each reporting date. Impairment is determined by stratifying the rights based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance, to the extent that fair value is less than the capitalized 66 Table of Contents amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. The principal balance of loans serviced by the Bank on behalf of investors was $266.7 million, $280.2 million and $286.4 million at September 30, 2025, December 31, 2024, and September 30, 2024, respectively. The following table shows the adjusted cost of the servicing rights associated with these loans and the changes for the periods indicated: Table 3 - Mortgage Servicing Asset Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 (Dollars in thousands) Balance at beginning of period $ 2,288 $ 2,571 $ 2,466 $ 2,641 Additions 50 20 58 56 Amortization (88) (100) (258) (306) Change in valuation allowance 3 (14) (13) 86 Balance at end of period $ 2,253 $ 2,477 $ 2,253 $ 2,477 See Note 8, “Derivative and Hedging Activities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report for more information on mortgage activity and mortgage related derivatives. Loan Portfolio The Company’s total loan portfolio at September 30, 2025 increased $3.9 billion, or 27.2%, when compared to December 31, 2024, primarily due to the Enterprise acquisition. On the commercial side, the commercial and industrial portfolio increased organically by 7.3% but was offset by a decline in the commercial real estate and commercial construction portfolios. Organically, the consumer real estate portfolio increased by 1.9%, driven by growth within the home equity portfolio. The following table summarizes loan growth/decline during the periods indicated: Table 4 - Components of Loan Growth/(Decline) September 30 2025 December 31 2024 Enterprise Acquisition Organic Growth/(Decline) Organic Growth/(Decline) % (Dollars in thousands) Commercial and industrial $ 4,532,294 $ 3,246,455 $ 979,072 $ 306,767 7.26 % Commercial real estate 8,241,458 6,839,705 1,742,275 (340,522) (3.97) % Commercial construction 1,439,876 782,078 664,281 (6,483) (0.45) % Total commercial 14,213,628 10,868,238 3,385,628 (40,238) (0.28) % Residential real estate 2,917,101 2,460,600 425,695 30,806 1.07 % Home equity 1,284,139 1,140,168 95,096 48,875 3.96 % Total consumer real estate 4,201,240 3,600,768 520,791 79,681 1.93 % Total other consumer 37,575 39,372 6,693 (8,490) (18.43) % Total loans $ 18,452,443 $ 14,508,378 $ 3,913,112 $ 30,953 0.17 % 67 Table of Contents The Company’s commercial real estate loan portfolio, inclusive of commercial construction, is the Company’s largest loan type concentration. The Company believes that this portfolio is also well-diversified with loans secured by a variety of property types, such as non-owner-occupied commercial real estate, retail, office, industrial, warehouse, and other special purpose properties, such as hotels, motels, nursing homes, restaurants, churches, recreational facilities, marinas, and golf courses. Commercial real estate also includes loans secured by certain residential-related property types, including multi-family apartment buildings, residential development tracts and condominiums. The following pie chart shows the diversification of the commercial real estate loan portfolio as of September 30, 2025: * Inclusive of commercial construction balances. Select Statistics Regarding the Commercial Real Estate Portfolio (Dollars in thousands) Average loan size $ 1,771 Largest individual commercial real estate mortgage outstanding $ 59,687 Commercial real estate non-performing loans/commercial real estate loans 0.46 % Commercial and industrial loans consist of both term loans and revolving or non-revolving lines of credit. Term loans generally have a repayment schedule of five years or less. In addition, the Bank generally obtains personal guarantees from the principal owners of the borrower for its commercial and industrial loans. Lines of credit, including asset-based lines, are typically collateralized by accounts receivable, inventory, or both, as well as other business assets. Commercial lines of credit and asset-based lines generally are reviewed on an annual basis and usually require either a borrowing base formula or reflect varying levels of repayment of principal during the course of a year. Additionally, other commercial term loans are typically secured by machinery and equipment, and/or owner-occupied commercial real estate. To limit the risk within this portfolio, the loans are made across a diverse set of industry groups. The following pie chart shows the diversification of the commercial and industrial portfolio as of September 30, 2025: 68 Table of Contents Select Statistics Regarding the Commercial and Industrial Portfolio (Dollars in thousands) Average loan size (excluding floor plan tranches) $ 349 Largest individual commercial and industrial loan outstanding $ 45,691 Commercial and industrial non-performing loans/commercial and industrial loans 0.51 % 69 Table of Contents The Company’s consumer portfolio primarily consists of both fixed-rate and adjustable-rate residential real estate loans as well as residential construction lending related to single-home residential development within the Company’s market area. The Company also provides home equity loans and lines of credit that may be made as a fixed-rate term loan or under a variable rate revolving line of credit secured by a first or junior mortgage on the borrower’s residence or second home. Additionally, the Company makes loans for other personal needs. Other consumer loans primarily consist of installment loans and overdraft protections. The residential real estate, home equity and other consumer portfolios totaled $4.2 billion at September 30, 2025, as noted below: (Dollars in thousands) Average loan size $ 121 Largest individual consumer loan outstanding $ 7,490 Consumer non-performing loans/consumer loans 0.44 % Asset Quality The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this assessment, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, non-performing and/or put on non-accrual status. Further details surrounding relevant asset quality categories are summarized below: Delinquency The Company’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations. The Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame. Generally, the Company requires that a delinquency notice be mailed to a borrower upon expiration of a grace period (typically no longer than 15 days beyond the due date). Reminder notices may be sent and telephone calls may be made prior to the expiration of the grace period. If the delinquent status is not resolved within a reasonable time frame following the mailing of a delinquency notice, the Bank’s personnel charged with managing its loan portfolios contacts the borrower to ascertain the reasons for delinquency and the prospects for payment. Any subsequent actions taken to resolve the delinquency will depend upon the nature of the loan and the length of time that the loan has been delinquent. The borrower’s needs are considered as much as reasonably possible without jeopardizing the Bank’s position. A late charge is usually assessed on loans upon expiration of the grace period. Non-accrual Loans As a general rule, loans 90 days or more past due with respect to principal or interest are classified as non-accrual loans. However, certain loans that are 90 days or more past due may be kept on an accruing status if the loans are well secured and in the process of collection. Income accruals are suspended on all non-accrual loans and all previously 70 accrued and uncollected interest is reversed against current income. A loan remains on nonaccrual status until it becomes current with respect to principal and interest and remains current for a minimum period of six months, the loan is liquidated, or when the loan is determined to be uncollectible and is charged-off against the allowance for credit losses. Loan Modifications In the course of resolving problem loans, the Company may choose to modify the contractual terms of certain loans. The Company attempts to work out an alternative payment schedule with the borrower in order to avoid or cure a default. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and may include adjustments to term extensions, interest rates, and accommodations for other than insignificant payment delays and/or a combination thereof. These actions are intended to minimize economic loss and avoid foreclosure or repossession of collateral. If such efforts by the Company do not result in satisfactory performance, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work out a satisfactory payment plan. All loan modifications are reviewed by the Company to identify if a borrower is deemed to be experiencing financial difficulty at time of the modification. Purchased Credit Deteriorated Loans Purchased Credit Deteriorated (“PCD”) loans are acquired loans which have shown a more-than-insignificant deterioration in credit quality since origination. PCD loans are recorded at amortized cost with an allowance for credit losses recorded upon purchase. Non-performing Assets Non-performing assets are typically comprised of non-performing loans and other real estate owned (“OREO”). Non-performing loans consist of non-accrual loans and loans that are 90 days or more past due but still accruing interest. OREO consists of real estate properties, which have primarily served as collateral to secure loans, that are controlled or owned by the Bank. These properties are recorded at fair value less estimated costs to sell at the date control is established, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated costs to sell) of the foreclosed asset is charged to the allowance for credit losses. Subsequent declines in the fair value of the foreclosed asset below the new cost basis are recorded through the use of a valuation allowance. Subsequent increases in the fair value are recorded as reductions in the valuation allowance, but not below zero. All costs incurred thereafter in maintaining the property are generally charged to non-interest expense. In the event the real estate is utilized as a rental property, net rental income and expenses are recorded as incurred within non-interest expense. 71 Table of Contents The following table sets forth information regarding non-performing assets held by the Company at the dates indicated: Table 5 - Non-Performing Assets September 30 2025 December 31 2024 September 30 2024 (Dollars in thousands) Loans accounted for on a non-accrual basis Commercial and industrial $ 23,173 $ 14,454 $ 12,772 Commercial real estate 29,216 74,343 77,707 Commercial construction 15,516 — — Residential real estate 14,406 10,243 9,744 Home equity 4,244 2,479 3,992 Other consumer 42 10 33 Total non-performing loans $ 86,597 $ 101,529 $ 104,248 Other real estate owned 2,100 — 110 Total non-performing assets $ 88,697 $ 101,529 $ 104,358 Non-performing loans as a percent of gross loans 0.47 % 0.70 % 0.73 % Non-performing assets as a percent of total assets 0.35 % 0.52 % 0.54 % The following table summarizes the changes in non-performing assets for the periods indicated: Table 6 - Activity in Non-Performing Assets Three Months Ended Nine Months Ended September 30 2025 September 30 2024 September 30 2025 September 30 2024 (Dollars in thousands) Non-performing assets beginning balance $ 58,317 $ 57,561 $ 101,529 $ 54,493 Enterprise non-performing assets at July 1, 2025 24,487 — 24,487 — New to non-performing 16,767 57,197 71,955 82,656 Loans charged-off (2,670) (7,006) (51,036) (8,695) Loans paid-off (6,983) (2,306) (53,892) (12,746) Loans transferred to other real estate owned and foreclosed assets — — (2,100) — Loans restored to performing status (1,404) (1,058) (4,419) (11,342) New to other real estate owned — — 2,100 — Other 183 (30) 73 (8) Non-performing assets ending balance $ 88,697 $ 104,358 $ 88,697 $ 104,358 Allowance for Credit Losses The allowance for credit losses is maintained at a level that management considers appropriate to provide for the Company’s current estimate of expected lifetime credit losses on loans measured at amortized cost. The allowance is increased by providing for credit losses through a charge to expense and by credits for recoveries of loans previously charged-off and is reduced by loans being charged-off. In accordance with its Allowance for Credit Losses Program, the Company uses the Current Expected Credit Losses (or “CECL”) model methodology to estimate credit losses for financial assets on a collective basis for loans sharing similar risk characteristics 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. The model estimates expected credit losses using loan level data over the contractual life of the exposure, which is adjusted for estimated prepayments. Economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period of 12 months, beyond which is a reversion to 72 Table of Contents the Company’s historical long-run average over a period of six months. The Company’s qualitative assessment is structured based upon nine qualitative risk factors impacting the expected risk of loss within the loan portfolio, with an additional factor designed to capture model imprecision. Loans that do not share similar risk characteristics with any pools of assets are subject to individual assessment and are removed from the collectively assessed pools to avoid double counting. For the loans that will be individually assessed, the Company uses either a discounted cash flow approach or a fair value of collateral approach. The latter approach is used for loans deemed to be collateral dependent or when foreclosure is probable. Management’s allowance for credit loss estimate inco rporates an economic forecast over a reasonable and supportable period of 12 months. As of September 30, 2025, management utilized the Moody’s Baseline forecast to estimate the effect of anticipated current and future economic conditions on the Company’s allowance for credit losses. This scenario selected by management assumes that general economic conditions will reflect a slight increase in momentum in the near term, that monetary policy will be impacted by a gradual reduction in Federal Reserve policy rates, and that progress toward inflation will be slowed as a result of changes in international trade policies. A dditionally, the allowance for credit losses is qualitatively adjusted on a quarterly basis in order to ensure coverage for relationships that are deemed to be more at risk within certain industries, specific collateral types, or other specific characteristics that may be highly impacted by the current economic environment. The allowance for credit losses of $190.5 million at September 30,2025 represents an increase of $20.5 million, or 12.1% compared to December 31, 2024, driven primarily by $43.5 million in initial allowance reserves recorded on the acquired Enterprise loan portfolio, including $34.5 million and $9.0 million attributable to non-PCD and PCD loans, respectively. 73 Table of Contents The following table summarizes the ratio of net charge-offs to average loans outstanding within each major loan category for the periods presented: Table 7 - Summary of Net Charge-Offs/(Recoveries) to Average Loans Outstanding Net Charge-Offs/(Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans Net Charge-Offs Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans (Dollars in thousands) Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 Commercial and industrial $ 1,178 $ 4,485,053 0.10 % $ 4,123 $ 3,704,506 0.15 % Commercial real estate 21 8,270,774 — % 43,364 7,254,708 0.80 % Commercial construction — 1,446,615 — % — 1,016,344 — % Residential real estate — 2,913,749 — % — 2,618,320 — % Home equity (12) 1,275,945 — % 17 1,192,583 — % Other consumer (1) 649 40,726 6.32 % 1,743 38,406 6.07 % Total $ 1,836 $ 18,432,862 0.04 % $ 49,247 $ 15,824,867 0.42 % Net Charge-Offs/(Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans Net Charge-Offs/ (Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs/(Recoveries) to Average Loans (Dollars in thousands) Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 Commercial and industrial $ 6,043 $ 3,187,701 0.75 % $ 6,074 $ 3,166,270 0.26 % Commercial real estate — 6,838,617 — % — 6,805,910 — % Commercial construction — 749,009 — % — 808,570 — % Residential real estate — 2,443,488 — % — 2,429,963 — % Home equity 24 1,122,750 0.01 % (246) 1,109,245 (0.03) % Other consumer (1) 596 35,331 6.71 % 1,448 32,350 5.98 % Total $ 6,663 $ 14,376,896 0.18 % $ 7,276 $ 14,352,308 0.07 % (1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances and the associated net charge-offs. Net charge-offs were $1.8 million and $49.2 million for the three and nine months ended September 30, 2025, respectively, compared to $6.7 million and $7.3 million for the three and nine months ended September 30, 2024, respectively. The elevated charge-off activity for the nine months ended September 30, 2025 was primarily attributable to charge-offs on three classified commercial loans recognized in the first quarter of 2025. 74 Table of Contents For purposes of the allowance for credit losses, management segregates the portfolio based upon loans sharing similar risk characteristics. The allocation of the allowance for credit losses is made to each loan category using the analytical techniques and estimation methods described in this Report. While these amounts represent management’s best estimate of credit losses at the evaluation dates, they are not necessarily indicative of either the categories in which actual losses may occur or the extent of actual losses that may be recognized within each category. Each of these loan categories possess unique risk characteristics that are considered when determining the appropriate level of allowance for each segment. The total allowance is available to absorb losses from any segment of the loan portfolio. The following table sets forth the allocation of the allowance for credit losses by loan category at the dates indicated: Table 8 - Summary of Allocation of Allowance for Credit Losses September 30 2025 December 31 2024 Allowance Amount Allowance Amount as a Percentage of Total Allowance Percent of Loans in Category to Total Loans Allowance Amount Allowance Amount as a Percentage of Total Allowance Percent of Loans in Category to Total Loans (Dollars in thousands) Commercial and industrial $ 54,482 28.6 % 24.6 % $ 30,799 18.1 % 22.4 % Commercial real estate 77,083 40.4 % 44.6 % 93,718 55.2 % 47.0 % Commercial construction 15,933 8.4 % 7.8 % 8,166 4.8 % 5.4 % Residential real estate 29,890 15.7 % 15.8 % 25,238 14.8 % 17.0 % Home equity 12,187 6.4 % 7.0 % 11,007 6.5 % 7.9 % Other consumer 901 0.5 % 0.2 % 1,056 0.6 % 0.3 % Total $ 190,476 100.0 % 100.0 % $ 169,984 100.0 % 100.0 % To determine if a loan should be charged-off, all possible sources of repayment are analyzed. Possible sources of repayment include the potential for future cash flows, the value of the Bank’s collateral, and the strength of co-makers or guarantors. When available information confirms that specific loans or portions thereof are uncollectible, these amounts are promptly charged-off against the allowance for credit losses and any recoveries of such previously charged-off amounts are credited to the allowance. Regardless of whether a loan is unsecured or collateralized, the Company charges 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 additional information regarding the Company’s allowance for credit losses, see Note 5 “Loans, Allowance for Credit Losses and Credit Quality” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report. Federal Home Loan Bank Stock The Federal Home Loan Bank (“FHLB”) is a cooperative that provides services to its member banking institutions. The primary reason for the FHLB of Boston membership is to gain access to a reliable source of wholesale funding as a tool to manage liquidity and interest rate risk. The purchase of stock in the FHLB is a requirement for a member to gain access to funding. The Company either purchases additional FHLB stock or is subject to redemption of FHLB stock proportional to the volume of funding received. The Company views the holdings as a necessary long-term investment for the purpose of balance sheet liquidity and not for investment return. The Company’s investments in FHLB of Boston stock decreased to $21.8 million at September 30, 2025 from $31.6 million at December 31, 2024 in conjunction with paydowns of FHLB term borrowings during the first nine months of 2025, including the paydown of approximately $50.0 million of FHLB borrowings assumed from the Enterprise acquisition during the third quarter. Goodwill and Other Intangible Assets Goodwill and other intangible assets were $1.2 billion and $997.4 million at September 30, 2025 and December 31, 2024, respectively, with the 2025 increase attributable to the Enterprise acquisition, partially offset by amortization of definite-lived intangibles. 75 Table of Contents The Company typically performs its annual goodwill impairment testing during the third quarter of the year, unless certain indicators suggest earlier testing to be warranted. Accordingly, the Company performed its annual goodwill impairment testing during the third quarter of 2025 and determined that the Company’s goodwill was not impaired as of August 31, 2025. Other intangible assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. There were no other events or changes during the third quarter of 2025 that indicated impairment of goodwill and other intangible assets. Cash Surrender Value of Life Insurance Policies The Bank holds life insurance policies for the purpose of offsetting its future obligations to its employees under its retirement and benefits plans. The cash surrender value of life insurance policies was $376.2 million at September 30, 2025 compared to $304.0 million at December 31, 2024, reflecting approximately $68.4 million of policies obtained from the Enterprise acquisition. The Company recorded tax exempt income from life insurance policies of $2.6 million and $2.0 million for the three months ended September 30, 2025 and 2024, respectively, and $6.7 million and $5.9 million for the nine months ended September 30, 2025 and 2024, respectively. The Company recorded no gains on life insurance benefits for the three months ended September 30, 2025 and September 30, 2024, respectively, and $1.7 million and $263,000 for the nine months ended September 30, 2025 and September 30, 2024, respectively. Deposits As of September 30, 2025, total deposits were $20.3 billion, representing a $5.0 billion, or 32.6%, increase from December 31, 2024. Total non-interest bearing demand deposits comprised 27.8% of total deposits at September 30, 2025, remaining relatively consistent with 28.7% at December 31, 2024. The total cost of deposits was 1.58% and 1.74% for the three months ended September 30, 2025 and 2024, respectively, and 1.56% and 1.62% for the nine months ended September 30, 2025 and 2024, respectively. The Company’s deposits are comprised primarily of core deposits (demand, savings and money market), as well as time deposits. The 2025 growth in deposit balances was driven primarily by $4.4 billion in balances acquired from Enterprise, as well as solid organic growth of $627.2 million, or 3.2%, during the first nine months of 2025. The Company’s ratio of core deposits to total deposits represented 83.1% of total deposits at September 30, 2025, compared to 81.7% of total deposits at December 31, 2024. In addition, the Company may also utilize brokered deposit sources, as needed, with balances of $6.4 million and $61.2 million outstanding at September 30, 2025 and December 31, 2024, respectively . The decrease in brokered deposits was due to the third quarter 2025 maturity of $50.0 million in brokered certificates acquired from Enterprise. The Company’s deposit accounts are insured to the maximum extent permitted by the Deposit Insurance Fund which is administered by the Federal Deposit Insurance Corporation ( “ FDIC”). The FDIC offers insurance coverage on deposits up to the federally insured limit of $250,000. The Company participates in the IntraFi Network, allowing it to provide easy access to multi-million dollar FDIC deposit insurance protection on certificate of deposit and money market investments for consumers, businesses and public entities. This channel allows the Company to access a reciprocal deposit exchange that can be used to benefit customers seeking increased FDIC insurance protection, and amounted to $2.2 billion and $1.1 billion at September 30, 2025 and December 31, 2024, respectively, with the increase attributable to reciprocal deposit balances acquired from Enterprise. The estimated balances of uninsured deposits at the Bank were $6.7 billion and $5.0 billion as of September 30, 2025 and December 31, 2024, respectively. Included in these amounts were $893.9 million and $814.0 million of collateralized deposits, which offer additional protection. 76 Table of Contents Excluding the effects of the Enterprise acquisition, the Company’s deposits have increased on an organic basis as compared to the prior year end. The table below summarizes these organic growth/decline by category for the period indicated: Table 9 - Components of Deposit Growth/(Decline) September 30 2025 December 31 2024 Enterprise Bancorp Acquisition Organic Growth/(Decline) Organic Growth/ (Decline)% (Dollars in thousands) Non-interest-bearing demand deposits $ 5,635,911 $ 4,390,703 $ 1,040,758 $ 204,450 3.76 % Savings and interest checking 7,111,570 5,207,548 1,766,463 137,559 1.97 % Money market 4,128,400 2,960,381 815,532 352,487 9.34 % Time certificates of deposits 3,419,988 2,747,346 739,957 (67,315) (1.93) % Total $ 20,295,869 $ 15,305,978 $ 4,362,710 $ 627,181 3.19 % Borrowings The Company’s borrowings consist of both short-term and long-term borrowings and provide the Bank with one of its primary sources of funding. Maintaining available borrowing capacity provides the Bank with a contingent source of liquidity. Borrowings were $775.4 million at September 30, 2025, representing an increase of $74.0 million, or 10.6%, as compared to December 31, 2024. The increase was driven by a $300.0 million subordinated debt raise completed by the Company in March 2025, partially offset by $287.0 million in paydowns on FHLB borrowings during the nine months ended September 30, 2025, including the paydown of approximately $50.0 million in FHLB borrowings acquired from Enterprise. Additionally, at the July 15, 2025 call date, the Company redeemed in full $60.0 million in subordinated notes assumed as part of the Enterprise merger. Refer to Note 6, “Borrowings” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report, for further details surrounding the subordinated debt. The Company had $10.0 billion and $8.7 billion of assets pledged as collateral against borrowings at September 30, 2025 and December 31, 2024, respectively. These assets are primarily pledged to the FHLB of Boston and the Federal Reserve Bank of Boston. Capital Resources On September 18, 2025 the Company’s Board of Directors declared a cash dividend of $ 0.59 per share to shareholders of record as of the close of business on September 29, 2025. This dividend was paid on October 7, 2025. The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total, Tier 1 Capital and Common Equity Tier 1 Capital (as defined for regulatory purposes) to risk weighted assets (as defined for regulatory purposes) and Tier 1 Capital to average assets (as defined for regulatory purposes). Total capital consists of Tier 1 Capital and Tier 2 Capital, as defined in the regulations. Tier 2 capital includes the permissible portions of qualifying subordinated debt, trust preferred securities, and the allowance for credit losses. 77 Table of Contents At September 30, 2025 and December 31, 2024, the Company and the Bank exceeded the minimum requirements for all applicable ratios that were in effect during the respective periods. The Company’s and the Bank’s capital amounts and ratios are presented in the following table, along with the applicable minimum requirements as of each date indicated: Table 10 - Company and Bank’s Capital Amounts and Ratios Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio September 30, 2025 (Dollars in thousands) Company (consolidated) Total capital (to risk weighted assets) $ 2,938,829 15.68 % $ 1,499,021 ≥ 8.0 % N/A N/A Common equity tier 1 capital (to risk weighted assets) 2,406,238 12.84 % 843,199 ≥ 4.5 % N/A N/A Tier 1 capital (to risk weighted assets) 2,406,238 12.84 % 1,124,266 ≥ 6.0 % N/A N/A Tier 1 capital (to average assets) 2,406,238 10.11 % 952,313 ≥ 4.0 % N/A N/A Bank Total capital (to risk weighted assets) $ 2,858,443 15.26 % $ 1,498,773 ≥ 8.0 % $ 1,873,466 ≥ 10.0 % Common equity tier 1 capital (to risk weighted assets) 2,683,127 14.32 % 843,060 ≥ 4.5 % 1,217,753 ≥ 6.5 % Tier 1 capital (to risk weighted assets) 2,683,127 14.32 % 1,124,080 ≥ 6.0 % 1,498,773 ≥ 8.0 % Tier 1 capital (to average assets) 2,683,127 11.27 % 952,384 ≥ 4.0 % 1,190,480 ≥ 5.0 % December 31, 2024 (Dollars in thousands) Company (consolidated) Total capital (to risk weighted assets) $ 2,299,003 16.04 % $ 1,146,816 ≥ 8.0 % N/A N/A Common equity tier 1 capital (to risk weighted assets) 2,100,158 14.65 % 645,084 ≥ 4.5 % N/A N/A Tier 1 capital (to risk weighted assets) 2,100,158 14.65 % 860,112 ≥ 6.0 % N/A N/A Tier 1 capital (to average assets) 2,100,158 11.32 % 741,953 ≥ 4.0 % N/A N/A Bank Total capital (to risk weighted assets) $ 2,210,775 15.43 % $ 1,146,528 ≥ 8.0 % $ 1,433,159 ≥ 10.0 % Common equity tier 1 capital (to risk weighted assets) 2,072,930 14.46 % 644,922 ≥ 4.5 % 931,554 ≥ 6.5 % Tier 1 capital (to risk weighted assets) 2,072,930 14.46 % 859,896 ≥ 6.0 % 1,146,528 ≥ 8.0 % Tier 1 capital (to average assets) 2,072,930 11.18 % 741,843 ≥ 4.0 % 927,303 ≥ 5.0 % In addition to the minimum risk-based capital requirements outlined in the table above, the Company is required to maintain a minimum capital conservation buffer, in the form of common equity, in order to avoid restrictions on capital distributions and discretionary bonuses. The required amount of the capital conservation buffer is 2.5%. At September 30, 2025, the Company’s capital levels exceeded the buffer. Dividend Restrictions The Company is subject to capital and dividend requirements administered by federal and state bank regulators, and the Company will not declare a cash dividend that would cause the Company to violate regulatory requirements. The Company is, in the ordinary course of business, dependent upon the receipt of cash dividends from the Bank to pay cash dividends to shareholders and satisfy the Company’s other cash needs. Federal and state law impose limits on capital distributions by the Bank. Massachusetts-chartered banks, such as the Bank, may declare from net profits cash dividends not more frequently than quarterly and non-cash dividends at any time. No dividends may be declared, credited, or paid if the Bank’s capital stock would be impaired. Massachusetts Bank Commissioner approval is required if the total of all dividends declared by the Bank in any calendar year would exceed the total of its net profits for that year combined with its 78 Table of Contents retained net profits of the preceding two years, less any required transfer to surplus or a fund for the retirement of any preferred stock. Dividends paid by the Bank to the Company totaled $29.4 million and $45.3 million for the three months ended September 30, 2025 and 2024, respectively, and totaled $79.7 million and $138.5 million for the nine months ended September 30, 2025 and 2024, respectively. Investment Management The following table presents total assets under administration and number of accounts held by the Rockland Trust Investment Management Group at the following dates: Table 11 - Assets Under Administration September 30 2025 December 31 2024 September 30 2024 (Dollars in thousands) Assets under administration $ 9,220,205 $ 7,035,315 $ 7,161,264 Number of trust, fiduciary and agency accounts 8,058 6,637 6,601 The Company’s Investment Management Group provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions. Accounts maintained by the Investment Management Group consist of managed and non-managed accounts. Managed accounts are those for which the Bank is responsible for administration and investment management and/or investment advice, while non-managed accounts are those for which the Bank acts solely as a custodian or directed trustee. The Bank receives fees dependent upon the level and type of service(s) provided. The Investment Management Group generated gross fee revenues of $12.4 million and $9.7 million for the three months ended September 30, 2025 and 2024, respectively and $32.7 million and $28.4 million for the nine months ended September 30, 2025 and 2024, respectively. Total assets under administration at September 30, 2025 were $9.2 billion, including $461.1 million of investment solutions designed by Rockland Trust that are administered and executed through its agreement with LPL Financial ( “ LPL”), compared to $7.0 billion and $418.2 million, respectively, at December 31, 2024. The Company also has a subsidiary that is a registered investment advisor, Bright Rock Capital Management, LLC ( “ Bright Rock”), which provides institutional quality investment management services to both institutional and high net worth clients. Total assets under administration as of September 30, 2025 and December 31, 2024 include $514.2 million and $491.5 million, respectively, related to Bright Rock. The administration of trust and fiduciary accounts is monitored by the Trust Committee of the Bank’s Board of Directors. The Trust Committee has delegated administrative responsibilities to three committees, one for investments, one for administration, and one for operations, all of which are comprised of Investment Management Group officers who meet no less than quarterly. The Bank has an agreement with LPL and its affiliates and their insurance subsidiary, LPL Insurance Associates, Inc., to offer the sale of mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities and life insurance. Registered representatives who are both employed by the Bank and licensed and contracted with LPL are onsite to offer these products to the Bank’s customer base. These same agents are also approved and appointed with various other broker general agents for the purposes of processing insurance solutions for clients. Retail investments and insurance revenue was $1.3 million and $1.4 million for the three months ended September 30, 2025 and 2024, respectively, and $3.5 million and $3.6 million for the nine months ended September 30, 2025 and 2024, respectively. 79 Table of Contents RESULTS OF OPERATIONS The following table provides a summary of results of operations for the three and nine months ended September 30, 2025 and 2024: Table 12 - Summary of Results of Operations Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 (Dollars in thousands, except per share data) Net income $ 34,262 $ 42,947 $ 129,787 $ 142,047 Diluted earnings per share $ 0.69 $ 1.01 $ 2.88 $ 3.34 Return on average assets 0.55 % 0.88 % 0.81 % 0.98 % Return on average equity 3.82 % 5.75 % 5.39 % 6.49 % Net interest margin 3.62 % 3.29 % 3.49 % 3.26 % Net Interest Income The amount of net interest income is affected by changes in interest rates and by the volume, mix, and interest rate sensitivity of interest-earning assets and interest-bearing liabilities. On a fully tax equivalent basis (“FTE”), net interest income for the third quarter of 2025 was $204.7 million, representing an increase of $61.8 million, or 43.3%, when compared to the third quarter of 2024. For the nine months ended September 30, 2025, net interest income on a FTE basis was $500.0 million, representing an increase of $79.4 million, or 18.9%, when compared to the nine months ended September 30, 2024. The 2025 increase in net interest income was primarily attributable to increased average interest earning assets obtained from the Enterprise acquisition, as well as higher yields on interest earning assets, which were positively impacted by the accretion of purchase accounting marks from the Enterprise acquisition, and decreased funding costs. These factors resulted in a net interest margin of 3.62% and 3.49% for the three and nine months ended September 30, 2025, respectively, representing increases of 33 basis points and 23 basis points, respectively, compared to the same prior year periods. 80 Table of Contents The following tables present the Company’s average balances, net interest income, interest rate spread, and net interest margin for the three and nine months ended September 30, 2025 and 2024. Non-taxable income from loans and securities is presented on a FTE basis by adjusting tax-exempt income upward by an amount equivalent to the prevailing income tax rate that would have been paid if the income had been fully taxable. Table 13 - Average Balance, Interest Earned/Paid & Average Yields Quarter-to-Date Three Months Ended September 30 2025 2024 Average Balance Interest Earned/ Paid Yield/Rate Average Balance Interest Earned/ Paid Yield/Rate (Dollars in thousands) Interest-earning assets Interest-earning deposits with banks, federal funds sold, and short term investments $ 688,394 $ 7,245 4.18 % $ 129,827 $ 1,635 5.01 % Securities Securities - trading 4,613 — — % 4,366 — — % Securities - taxable investments 3,253,928 23,303 2.84 % 2,761,758 14,064 2.03 % Securities - non-taxable investments (1) 34,803 263 3.00 % 194 1 2.05 % Total securities $ 3,293,344 $ 23,566 2.84 % $ 2,766,318 $ 14,065 2.02 % Loans held for sale 15,632 225 5.71 % 15,208 227 5.94 % Loans (2) Commercial and industrial (1) 4,485,053 70,869 6.27 % 3,187,701 50,157 6.26 % Commercial real estate (1) 8,270,774 112,855 5.41 % 6,838,617 90,898 5.29 % Commercial construction (1) 1,446,615 24,750 6.79 % 749,009 13,778 7.32 % Total commercial 14,202,442 208,474 5.82 % 10,775,327 154,833 5.72 % Residential real estate 2,913,749 34,813 4.74 % 2,443,488 26,917 4.38 % Home equity 1,275,945 21,173 6.58 % 1,122,750 19,372 6.86 % Total consumer real estate 4,189,694 55,986 5.30 % 3,566,238 46,289 5.16 % Other consumer 40,726 644 6.27 % 35,331 665 7.49 % Total loans $ 18,432,862 $ 265,104 5.71 % $ 14,376,896 $ 201,787 5.58 % Total interest-earning assets $ 22,430,232 $ 296,140 5.24 % $ 17,288,249 $ 217,714 5.01 % Cash and due from banks 214,626 182,151 Federal Home Loan Bank stock 22,206 30,513 Other assets 2,263,385 1,839,389 Total assets $ 24,930,449 $ 19,340,302 Interest-bearing liabilities Deposits Savings and interest checking accounts $ 6,946,463 $ 18,927 1.08 % $ 5,163,567 $ 17,978 1.39 % Money market 4,136,911 30,019 2.88 % 2,998,672 18,986 2.52 % Time deposits 3,466,139 31,793 3.64 % 2,740,982 30,021 4.36 % Total interest-bearing deposits $ 14,549,513 $ 80,739 2.20 % $ 10,903,221 $ 66,985 2.44 % Borrowings Federal Home Loan Bank and other borrowings $ 416,074 $ 3,946 3.76 % $ 623,053 $ 6,692 4.27 % Junior subordinated debentures 62,861 981 6.19 % 62,859 1,144 7.24 % Subordinated debentures 305,280 5,743 7.46 % — — — % Total borrowings $ 784,215 $ 10,670 5.40 % $ 685,912 $ 7,836 4.54 % 81 Table of Contents Total interest-bearing liabilities $ 15,333,728 $ 91,409 2.37 % $ 11,589,133 $ 74,821 2.57 % Non-interest bearing demand deposits 5,699,765 4,442,858 Other liabilities 339,116 339,075 Total liabilities $ 21,372,609 $ 16,371,066 Stockholders’ equity 3,557,840 2,969,236 Total liabilities and stockholders’ equity $ 24,930,449 $ 19,340,302 Net interest income (1) $ 204,731 $ 142,893 Interest rate spread (3) 2.87 % 2.44 % Net interest margin (4) 3.62 % 3.29 % Supplemental information Total deposits, including demand deposits $ 20,249,278 $ 80,739 $ 15,346,079 $ 66,985 Cost of total deposits 1.58 % 1.74 % Total funding liabilities, including demand deposits $ 21,033,493 $ 91,409 $ 16,031,991 $ 74,821 Cost of total funding liabilities 1.72 % 1.86 % (1) The total amount of adjustment to present interest income and yield on a FTE basis was $1.4 million and $1.2 million for the three months ended September 30, 2025 and 2024, respectively. (2) Includes average nonaccruing loans. (3) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (4) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. 82 Table of Contents Table 14 - Average Balance, Interest Earned/Paid & Average Yields Year-to-Date Nine Months Ended September 30 2025 2024 Average Balance Interest Earned/ Paid Yield/ Rate Average Balance Interest Earned/ Paid Yield/ Rate (Dollars in thousands) Interest-earning assets Interest-earning deposits with banks, federal funds sold, and short-term investments $ 413,974 $ 13,076 4.22 % $ 76,199 $ 2,515 4.41 % Securities Securities - trading 4,641 — — % 4,627 — — % Securities - taxable investments 2,914,567 54,478 2.50 % 2,807,287 42,287 2.01 % Securities - non-taxable investments (1) 11,858 266 3.00 % 191 5 3.50 % Total securities $ 2,931,066 $ 54,744 2.50 % $ 2,812,105 $ 42,292 2.01 % Loans held for sale 10,656 457 5.73 % 11,651 530 6.08 % Loans (2) Commercial and industrial (1) 3,704,506 173,050 6.25 % 3,166,270 146,867 6.20 % Commercial real estate (1) 7,254,708 286,037 5.27 % 6,805,910 265,161 5.20 % Commercial construction (1) 1,016,344 51,683 6.80 % 808,570 44,650 7.38 % Total commercial 11,975,558 510,770 5.70 % 10,780,750 456,678 5.66 % Residential real estate 2,618,320 90,608 4.63 % 2,429,963 79,472 4.37 % Home equity 1,192,583 57,091 6.40 % 1,109,245 56,642 6.82 % Total consumer real estate 3,810,903 147,699 5.18 % 3,539,208 136,114 5.14 % Other consumer 38,406 1,819 6.33 % 32,350 1,867 7.71 % Total loans $ 15,824,867 $ 660,288 5.58 % $ 14,352,308 $ 594,659 5.53 % Total interest-earning assets $ 19,180,563 $ 728,565 5.08 % $ 17,252,263 $ 639,996 4.96 % Cash and due from banks 202,833 179,414 Federal Home Loan Bank stock 24,231 39,576 Other assets 1,990,792 1,841,696 Total assets $ 21,398,419 $ 19,312,949 Interest-bearing liabilities Deposits Savings and interest checking accounts $ 5,800,879 $ 51,642 1.19 % $ 5,165,252 $ 49,163 1.27 % Money market 3,540,466 66,819 2.52 % 2,917,693 52,386 2.40 % Time deposits 2,967,856 81,557 3.67 % 2,539,915 81,225 4.27 % Total interest-bearing deposits $ 12,309,201 $ 200,018 2.17 % $ 10,622,860 $ 182,774 2.30 % Borrowings Federal Home Loan Bank and other borrowings $ 464,910 $ 13,745 3.95 % $ 920,781 $ 32,652 4.74 % Junior subordinated debentures 62,861 2,931 6.23 % 62,859 3,431 7.29 % Subordinated debentures 209,275 11,826 7.56 % 13,501 508 5.03 % Total borrowings $ 737,046 $ 28,502 5.17 % $ 997,141 $ 36,591 4.90 % Total interest-bearing liabilities $ 13,046,247 $ 228,520 2.34 % $ 11,620,001 $ 219,365 2.52 % Non-interest bearing demand deposits 4,810,799 4,414,392 Other liabilities 320,237 354,038 Total liabilities $ 18,177,283 $ 16,388,431 83 Table of Contents Stockholders’ equity 3,221,136 2,924,518 Total liabilities and stockholders’ equity $ 21,398,419 $ 19,312,949 Net interest income (1) $ 500,045 $ 420,631 Interest rate spread (3) 2.74 % 2.44 % Net interest margin (4) 3.49 % 3.26 % Supplemental information Total deposit, including demand deposits $ 17,120,000 $ 200,018 $ 15,037,252 $ 182,774 Cost of total deposits 1.56 % 1.62 % Total funding liabilities, including demand deposits $ 17,857,046 $ 228,520 $ 16,034,393 $ 219,365 Cost of total funding liabilities 1.71 % 1.83 % (1) The total amount of adjustment to present interest income and yield on a FTE basis was $3.7 million and $3.6 million for the nine months ended September 30, 2025 and 2024, respectively. (2) Includes average non-accruing loans. (3) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (4) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. 84 Table of Contents The following table presents certain information on a FTE basis regarding changes in the Company’s interest income and interest expense for the periods indicated. For each category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes attributable to: (1) changes in rate (change in rate multiplied by prior period volume), (2) changes in volume (change in volume multiplied by old rate), and (3) changes in volume/rate (change in volume multiplied by change in rate) which is allocated to the change due to rate column: Table 15 - Volume Rate Analysis Three Months Ended September 30 Nine Months Ended September 30 2025 Compared To 2024 2025 Compared To 2024 Change Due to Rate Change Due to Volume Total Change Change Due to Rate Change Due to Volume Total Change (Dollars in thousands) Income on interest-earning assets Interest earning deposits, federal funds sold and short term investments $ (1,424) $ 7,034 $ 5,610 $ (587) $ 11,148 $ 10,561 Securities Securities - taxable investments 6,733 2,506 9,239 10,575 1,616 12,191 Securities - non-taxable investments (1) 84 178 262 (44) 305 261 Total securities 9,501 12,452 Loans held for sale (8) 6 (2) (28) (45) (73) Loans Commercial and industrial (1) 299 20,413 20,712 1,217 24,966 26,183 Commercial real estate (1) 2,921 19,036 21,957 3,391 17,485 20,876 Commercial construction (1,860) 12,832 10,972 (4,440) 11,473 7,033 Total commercial 53,641 54,092 Residential real estate 2,716 5,180 7,896 4,976 6,160 11,136 Home equity (842) 2,643 1,801 (3,807) 4,256 449 Total consumer real estate 9,697 11,585 Other consumer (123) 102 (21) (398) 350 (48) Total loans (1)(2) 63,317 65,629 Total income of interest-earning assets $ 78,426 $ 88,569 Expense of interest-bearing liabilities Deposits Savings and interest checking accounts $ (5,259) $ 6,208 $ 949 $ (3,571) $ 6,050 $ 2,479 Money market 3,826 7,207 11,033 3,251 11,182 14,433 Time certificates of deposits (6,170) 7,942 1,772 (13,353) 13,685 332 Total interest bearing deposits 13,754 17,244 Borrowings Federal Home Loan Bank and other borrowings (523) (2,223) (2,746) (2,741) (16,166) (18,907) Junior subordinated debentures (163) — (163) (500) — (500) Subordinated debentures 5,743 — 5,743 3,952 7,366 11,318 Total borrowings 2,834 (8,089) Total expense of interest-bearing liabilities 16,588 9,155 Change in net interest income $ 61,838 $ 79,414 (1) Reflects income determined on a FTE basis. See footnote (1) to Tables 13 and 14 in this Report for the related adjustments. (2) Loans include portfolio loans and non-accrual loans; however, unpaid interest on non-accrual loans has not been included for purposes of determining interest income. 85 Table of Contents Provision For Credit Losses The provision for credit losses represents the charge to expense that is required to maintain an appropriate level of allowance for credit losses. The Company recorded a provision for credit loss of $38.5 million and $60.7 million for the three and nine months ended September 30, 2025, respectively, as compared to $19.5 million and $28.8 million for the three and nine months ended September 30, 2024, respectively. The increase in the current periods includes the $34.5 million related to non-PCD loans acquired from Enterprise. The Company’s allowance for credit losses, as a percentage of total loans, was 1.03% at September 30, 2025, 1.17% at December 31, 2024, and 1.14% at September 30, 2024. The decrease from the prior periods is due to charge-offs taken on loans that were specifically reserved for at those periods. Refer to Note 5, “Loans, Allowance for Credit Losses and Credit Quality” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report, for further details surrounding the primary drivers of the provision for credit losses for the period. Non-Interest Income The following table sets forth information regarding non-interest income for the periods shown: Table 16 - Non-Interest Income Three Months Ended September 30 Change 2025 2024 Amount % (Dollars in thousands) Deposit account fees $ 8,847 $ 6,779 $ 2,068 30.51 % Interchange and ATM fees 5,989 4,970 1,019 20.50 % Investment management and advisory 13,652 11,033 2,619 23.74 % Mortgage banking income 1,444 972 472 48.56 % Increase in cash surrender value of life insurance policies 2,629 2,006 623 31.06 % Loan level derivative income 1,224 1,125 99 8.80 % Other non-interest income 6,613 6,664 (51) (0.77) % Total $ 40,398 $ 33,549 $ 6,849 20.41 % Nine Months Ended September 30 Change 2025 2024 Amount % (Dollars in thousands) Deposit account fees $ 23,041 $ 19,339 $ 3,702 19.14 % Interchange and ATM fees 15,608 14,175 1,433 10.11 % Investment management 36,252 31,961 4,291 13.43 % Mortgage banking income 3,257 3,088 169 5.47 % Increase in cash surrender value of life insurance policies 6,732 5,934 798 13.45 % Gain on life insurance benefits 1,650 263 1,387 527.38 % Loan level derivative income 2,332 1,678 654 38.97 % Other non-interest income 18,373 19,384 (1,011) (5.22) % Total $ 107,245 $ 95,822 $ 11,423 11.92 % The primary reasons for significant variances in the non-interest income categories shown in the preceding table are noted below: • Deposit account fees were higher as a result of increases in overdraft and cash management fees, as well as increased volume attributable to the Enterprise acquisition. • Interchange and ATM fees were higher primarily attributable to increased volume due to the Enterprise acquisition. • The increase in investment management and advisory income is primarily attributable to higher asset-based revenue resulting from higher levels of assets under administration, which increased by $2.1 billion, or 28.8%, to $9.2 billion at 86 Table of Contents September 30, 2025, as compared to $7.2 billion at September 30, 2024, including the addition of $1.5 billion in assets under administration acquired from Enterprise. These increases were partially offset by lower insurance commission income for the three and nine months ended September 30, 2025, as compared to the same prior year periods. • Mortgage banking income increased driven by higher origination volume as compared to the same prior year periods. • The increases in cash surrender value of life insurance policies were primarily attributable to policies obtained in connection with the Enterprise acquisition. • The Company received proceeds on life insurance policies resulting in a gain of $1.7 million during the nine months ended September 30, 2025 compared to $263,000 during the nine months ended September 30, 2024. No such gains were recorded during the third quarter of 2025 or 2024. • Loan level derivative income increased for the three and nine months ended September 30, 2025 when compared to the same respective periods in 2024, driven primarily by fluctuations in customer demand resulting from changes in the macroeconomic environment. • Other non-interest income for the third quarter of 2025 remained consistent with the third quarter of 2024, and decreased for the nine months ended September 30, 2025, as compared to the same prior year period, primarily attributable to decreases in FHLB dividend income of $1.1 million, decreased unrealized gain on equity securities of $613,000, and decreased realized gains on equity securities of $501,000. These decreases were partially offset by increases in credit card fee income of $327,000 and annual fees on commercial lines of credit of $230,000. 87 Table of Contents Non-Interest Expense The following table sets forth information regarding noninterest expense for the periods shown: Table 17 - Non-Interest Expense Three Months Ended September 30 Change 2025 2024 Amount % (Dollars in thousands) Salaries and employee benefits $ 81,132 $ 60,108 $ 21,024 34.98 % Occupancy and equipment expenses 14,975 12,734 2,241 17.60 % Data processing & facilities management 2,788 2,510 278 11.08 % Software and subscriptions 6,854 4,736 2,118 44.72 % FDIC assessment 3,080 2,628 452 17.20 % Amortization of intangible assets 7,315 1,460 5,855 401.03 % Merger and acquisition expenses 23,893 — 23,893 100.00% Other non-interest expenses 20,799 16,267 4,532 27.86 % Total $ 160,836 $ 100,443 $ 60,393 60.13 % Nine Months Ended September 30 Change 2025 2024 Amount % (Dollars in thousands) Salaries and employee benefits $ 205,919 $ 174,444 $ 31,475 18.04 % Occupancy and equipment expenses 41,992 38,673 3,319 8.58 % Data processing & facilities management 8,213 7,398 815 11.02 % Software and subscriptions 17,047 13,305 3,742 28.12 % FDIC assessment 8,441 8,304 137 1.65 % Amortization of intangible assets 9,856 4,488 5,368 119.61 % Merger and acquisition expenses 27,287 — 27,287 100.00% Other non-interest expenses 56,757 53,332 3,425 6.42 % Total $ 375,512 $ 299,944 $ 75,568 25.19 % The primary reasons for significant variances in the non-interest expense categories shown in the preceding table are noted below: • Salaries and employee benefits were higher, driven primarily by increases in general salaries, payroll taxes, medical plan insurance, and incentives, including the impact of an expanded employee base as a result of the Enterprise acquisition. • Occupancy and equipment costs increased, primarily attributable to the expanded branch network, real estate and other fixed assets obtained from the Enterprise acquisition. • Data processing increases reflect overall increased levels of transactional activity in conjunction with the Company’s growth, including due to the Enterprise acquisition. • Software and subscriptions costs increased, driven by the Company’s continued investment in its technology infrastructure. • Amortization of intangible assets increased, driven by increased amortization attributable to the core deposit intangible, customer list, and other intangible assets established as part of the Enterprise acquisition. • The Company incurred merger and acquisition expenses of $23.9 million and $27.3 million for the three and nine months ended September 30, 2025, respectively, related to the Company’s acquisition of Enterprise. The majority 88 Table of Contents of the merger expenses related to change in control and severance contracts, vendor and systems contract terminations, as well as legal and professional fees. No such costs were recognized during the same respective periods in 2024. • For the three months ended September 30, 2025, other non-interest expense increased primarily attributable to increases in debit card expense of $1.5 million, check losses of $440,000, sponsorships of $321,000, director fees of $303,000, consultant fees of $301,000, telecommunications costs of $272,000, card issuance costs of $267,000, and legal fees of $237,000. For the nine months ended September 30, 2025, other non-interest expense increased mainly due to increases in debit card expense of $1.4 million, contract labor of $487,000, loan workout costs of $422,000, internet banking expense of $413,000, sponsorships of $407,000, and telecommunications of $375,000, partially offset by decreases in consultant fees of approximately $1.0 million. Income Taxes The tax effect of all income and expense transactions is recognized by the Company in each year’s consolidated statements of income, regardless of the year in which the transactions are reported for income tax purposes. The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated: Table 18 - Tax Provision and Applicable Tax Rates Three Months Ended Nine Months Ended September 30 September 30 2025 2024 2025 2024 (Dollars in thousands) Combined federal and state income tax provision $ 10,125 $ 12,362 $ 37,572 $ 42,149 Effective income tax rate 22.81 % 22.35 % 22.45 % 22.88 % Blended statutory tax rate 27.37 % 27.91 % 27.37 % 27.91 % The Company’s effective tax rate for the third quarter of 2025 is consistent with the year ago periods. The effective tax rate is impacted by pre-tax income levels, a decrease in the statutory state tax rate, as well as increased tax benefits from low income housing tax credits. The effective tax rates in the table are lower than the blended statutory tax rates due to the impact of discrete items, including tax benefits related to equity compensation, as well as certain tax preference assets such as life insurance policies, tax exempt bonds and federal tax credits. The Company invests in various low income housing projects, which are real estate limited partnerships that acquire, develop, own and operate low and moderate-income housing developments. As a limited partner in these operating partnerships, the Company will receive tax credits and tax deductions for losses incurred by the underlying properties. The investments are accounted for using the proportional amortization method and will be amortized over various periods through 2042, which represents the period that the tax credits and other tax benefits will be utilized. The total committed investment in these partnerships is $305.7 million, of which $229.6 million had been funded as of September 30, 2025. It is expected that the limited partnership investments will generate a net tax benefit of approximately $5.7 million for the fiscal year 2025 and a total of $72.0 million over the remaining life of the investments from the combination of the tax credits and operating losses. The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025. Among other things, the new law makes permanent certain expiring business tax provisions of the Tax Cuts and Jobs Act. These include provisions which allow businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets and the cost of qualified domestic research and development. The OBBBA also imposes a floor on tax deductions taken on charitable contributions. Further, the OBBBA significantly changes U.S. tax law related to foreign operations and certain tax credits; however, such changes are not anticipated to have a material impact to the Company’s financial statements. Risk Management The Board of Directors has approved an Enterprise Risk Management Policy and Risk Appetite Statement to state the Company’s goals and objectives in identifying, measuring, and managing the risks associated with the Company’s current and near future anticipated size and complexity. Management is responsible for comprehensive enterprise risk management, and continually strives to adopt and implement practices that strike an appropriate balance between risk and reward and permit the achievement of strategic goals in a controlled environment. The Company has implemented the “three lines of defense” enterprise risk management framework. The first line of defense are the executives in charge of business units, operational areas, and corporate functions who, sometimes assisted by 89 Table of Contents management committees, teams, and working groups, own and manage risks. The second line of defense monitors and provides risk management advice across all risk domains, and is comprised of the enterprise risk management department, with oversight from the Chief Risk Officer. The third line of defense is independent assurance performed by the Chief Internal Auditor, who reports to the Audit Committee of the Company’s Board of Directors, and by the Company’s internal audit department. The Board of Directors, with the assistance of its Risk Committee, oversees management’s enterprise risk management practices. As risks must be taken to create value, the Board of Directors has approved a Risk Appetite Statement that defines the acceptable residual risk appetite for the Company and the nine major risk types identified as having the potential to create significant adverse impacts on the Company, such as financial losses, reputational damage, legal or regulatory actions, failure to achieve strategic objectives, diminished customer experience, and/or cultural erosion. The nine major risk categories identified by the Company and addressed in the Risk Appetite Statement are strategic and emerging risk, culture risk, credit risk, liquidity risk, market and interest rate risk, operational risk, reputation risk, regulatory and compliance risk, and technology and cyber risk, each of which is discussed below. Strategic and Emerging Risk Strategic and emerging risk is the risk arising from adverse strategic or business decisions, misalignment of strategic direction with the Company’s mission and values, failure to execute strategies or tactics, or an inadequate adaptation or lack of responsiveness to industry and/or operating environment changes. Management seeks to mitigate strategic and emerging risk through strategic planning, frequent executive review of strategic plan progress, monitoring of competitors and technology, assessment of new products, new branches, and new business initiatives, customer advocacy, and crisis management planning. Culture Risk Culture risk is the risk arising from failed leadership and/or ineffective colleague engagement and workplace management that causes the Company to lose sight of core values and, through acts or omissions, damage the relationship-based culture that has been one of the foundations of the Company’s success. Management seeks to mitigate culture risk through effective employee relations, leadership that encourages continuous improvement, cultural development and reinforcement of core values, communication of clear ethical and behavioral standards, consistent enforcement of policies and programs, discipline of misbehavior, alignment of incentives and compensation, and by promoting a company-wide focus on respect for individual differences and differing perspectives. Credit Risk Credit risk is the risk arising from the failure of a borrower or a counterparty to a contract to make payments as agreed, and includes the risks arising from inadequate collateral and mismanagement of loan concentrations. While the collateral securing loans may be sufficient in some cases to recover the amount due, in other cases the Company may experience significant credit losses that could have an adverse effect on its operating results. The Company makes assumptions and judgments about the collectability of its loan portfolio, including the creditworthiness of its borrowers and counterparties and the value of collateral for the repayment of loans. For further discussion regarding the credit risk and the credit quality of the Company’s loan portfolio, see Note 5, “Loans, Allowance for Credit Losses and Credit Quality” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report . Liquidity Risk Liquidity risk is the risk arising from the Company being unable to meet obligations when due. Liquidity risk includes the inability to access funding sources or manage fluctuations in available funding levels. Liquidity risk also results from a failure to recognize or address market condition changes that affect the ability to liquidate assets quickly with minimal value loss. The Company’s primary sources of funds are deposits, borrowings, and the amortization, prepayment, and maturities of loans and securities. The Bank utilizes its extensive branch network to access retail customers who provide a base of in-market core deposits. These funds are principally comprised of demand deposits, interest checking accounts, savings accounts, and money market accounts. Interest rates, economic conditions, and competitive factors greatly influence deposit levels. The Company’s primary measure of short-term liquidity is the Total Basic Surplus/Deficit as a percentage of assets. This ratio, which is an analysis of the relationship between liquid assets plus available FHLB funding, less short-term liabilities relative to total assets, was within policy limits at September 30, 2025. The Total Basic Surplus/Deficit measure is affected primarily by changes in deposits, securities and short-term investments, loans, and borrowings. An increase in deposits, without a corresponding increase in non-liquid assets, will improve the Total Basic Surplus/Deficit measure, whereas, an increase in loans, with no increase in deposits, will decrease the measure. Other factors affecting the Total Basic Surplus/Deficit include FHLB collateral requirements, securities portfolio changes, and the mix of deposits. The Company prioritizes core deposits as a primary funding source and continues to maintain a variety of available liquidity sources, including FHLB advances, and Federal Reserve borrowing capacity. These funding sources serve as a 90 Table of Contents contingent source of liquidity and, when profitable lending and investment opportunities exist, the Company may access them to provide the liquidity needed to grow the balance sheet. The amount and type of assets that the Company has available to pledge affects the Company’s FHLB and Federal Reserve borrowing capacity. The Company’s lending decisions, therefore, can also affect its liquidity position. The Company may also have the ability to raise additional funds through the issuance of equity or unsecured debt privately or publicly, as demonstrated by the $300.0 million subordinated debt issuance completed by the Company during the first quarter of 2025. Additionally, the Company is able to enter into repurchase agreements or acquire brokered deposits at its discretion. The availability and cost of equity or debt on an unsecured basis is dependent on many factors, including the Company’s financial position, the market environment, and the Company’s credit rating. The Company monitors the factors that could affect its ability to raise liquidity through these channels. The following table depicts current and unused liquidity capacity from various sources as of the dates indicated: Table 19 - Liquidity Sources September 30, 2025 December 31, 2024 Outstanding Additional Borrowing Capacity Outstanding Additional Borrowing Capacity (Dollars in thousands) Federal Home Loan Bank of Boston (1) $ 416,240 $ 3,105,524 $ 638,514 $ 1,992,574 Federal Reserve Bank of Boston (2) — 3,704,136 — 3,635,233 Unpledged Securities — 501,686 — 564,676 Lines of Credit — 225,000 — 50,000 Junior subordinated debentures (3) 62,862 — 62,860 — Subordinated debt (3) 296,275 — — — Brokered deposits (3) 6,418 — 61,236 — $ 781,795 $ 7,536,346 $ 762,610 $ 6,242,483 (1) Loans and securities with a carrying value of $4.9 billion and $3.8 billion at of September 30, 2025 and December 31, 2024, respectively, were pledged to the FHLB of Boston. (2) Loans and securities with a carrying value of $5.0 billion and $4.9 billion at September 30, 2025 and December 31, 2024, respectively, were pledged to the Federal Reserve Bank of Boston. (3) The additional borrowing capacity has not been assessed for these categories. In addition to customary operational liquidity practices, the Board and management recognize the need to establish reasonable guidelines to manage a heightened liquidity risk environment. Catalysts for elevated liquidity risk can be Company-specific issues and/or systemic industry-wide events. Management is therefore responsible for instituting systems and controls designed to provide advanced detection of potentially significant funding shortages, establishing methods for assessing and monitoring risk levels, and instituting responses that may alleviate or circumvent a potential liquidity crisis. Management has established a Liquidity Contingency Plan to provide a framework to detect potential liquidity problems and appropriately address them in a timely manner. In a period of perceived heightened liquidity risk, the Liquidity Contingency Plan provides for the establishment of a Liquidity Crisis Task Force to monitor the potential for a liquidity crisis and execute an appropriate response. The Company continually monitors both on and off balance sheet liquidity sources to understand vulnerabilities and when adjustments to the balance between sources and uses of funds may be necessary. Management regularly performs various liquidity stress testing scenarios and other analyses to assess potential liquidity outflows or funding concerns resulting from economic or industry disruptions, volatility in the financial markets, or unforeseen credit events. The results of these scenarios are used to inform the Company’s Liquidity Contingency Plan and help provide the basis for its liquidity needs. Market and Interest Rate Risk Market risk refers to the risk of potential losses arising from changes in interest rates and the value of investments due to market conditions or other external factors or events. Interest rate risk is the most significant market risk to which the Company has exposure to due to the nature of its operations. Interest rate risk is the sensitivity of income to changes in interest rates. Interest rate changes, as well as fluctuations in the level and duration of assets and liabilities, affect net interest income, which is the Company’s primary source of revenue. 91 Table of Contents Interest rate risk arises directly from the Company’s core banking activities. In addition to directly affecting net interest income, changes in the level of interest rates can also affect the amount of loans originated, the timing of cash flows on loans and securities, and the fair value of securities and derivatives, and have other effects. Management strives to control interest rate risk within limits approved by the Board of Directors that reflect the Company’s tolerance for interest rate risk over short-term and long-term horizons. The Company attempts to manage interest rate risk by identifying, quantifying, and, where appropriate, hedging exposure. If assets and liabilities do not re-price simultaneously and in equal volume, the potential for interest rate exposure exists. It is the Company’s objective to maintain stability in the growth of net interest income through the maintenance of an appropriate mix of interest-earning assets and interest-bearing liabilities and, when necessary within limits management deems prudent, with hedging instruments such as interest rate swaps, floors, and caps. The Company quantifies its interest rate exposures using net interest income simulation models, as well as simpler gap analysis, and an Economic Value of Equity analysis. Key assumptions in these analyses relate to behavior of interest rates and behavior of the Company’s deposit and loan customers. The most material assumptions relate to the prepayment of mortgage assets (including mortgage loans and mortgage-backed securities) and the life and sensitivity of non-maturity deposits ( e.g. , demand deposit, savings, and money market accounts). In the case of prepayment of mortgage assets, assumptions are derived from published median prepayment estimates for comparable mortgage loans. The risk of prepayment tends to increase when interest rates fall. Since future prepayment behavior of loan customers is uncertain, interest rate sensitivity of loans cannot be determined with precision and actual behavior may differ from assumptions to a significant degree. Non-maturity deposits, assumptions over customer behavior, shifts in deposits categories, and magnitude of impact to the cost of deposits all may differ from what is currently anticipated by the models or analyses. Given the volatility associated with market rates, and the uncertainty surrounding future rate movements, management has continued to maintain a more neutral interest rate risk position. The Company runs several scenarios to quantify and effectively assist in managing interest rate risk, including instantaneous parallel shifts in market rates as well as gradual (12-24 months) shifts in market rates, and may also include other alternative scenarios as management deems necessary given the interest rate environment. The results of those scenarios are summarized in the following table: Table 20 - Interest Rate Sensitivity September 30 2025 2024 Year 1 Year 1 Parallel rate shocks (basis points) -300 (0.9) % (6.4) % -200 (0.8) % (3.9) % -100 — % (1.5) % +100 (0.2) % 1.1 % +200 (0.7) % 2.0 % +300 (1.0) % 3.0 % +400 (1.3) % 4.1 % Gradual rate shifts (basis points) -200 over 12 months 0.1 % (1.3) % -100 over 12 months 0.1 % (0.6) % +200 over 12 months (0.4) % 0.9 % Alternative scenarios Steep down 200 basis point scenario 1.0 % (0.2) % 92 Table of Contents The results depicted in the table above are dependent on material assumptions, such as prepayment rates, decay rates, pricing decisions on loans and deposits, and other factors, which management believes are reasonable. These assumptions may be impacted by customer preferences or competitive influences and therefore actual experience may differ from the assumptions in the model. Accordingly, although the tables provide an indication of the Company’s interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates, and actual results may differ. The most significant market factors affecting the Company’s net interest income during the nine months ended September 30, 2025 were the shape of the U.S. Government securities and interest rate swap yield curve, the U.S. prime interest rate, the Secured Overnight Financing Rate, and other interest rates offered on long-term fixed rate loans. The Company manages the interest rate risk inherent in both its loan and borrowing portfolios by using interest rate swap agreements and interest rate caps and floors. An interest rate swap is an agreement in which one party agrees to pay a floating rate of interest on a notional principal amount in exchange for receiving a fixed rate of interest on the same notional amount for a predetermined period from the other party. Interest rate caps and floors are agreements where one party agrees to pay a floating rate of interest on a notional principal amount for a predetermined period to a second party if certain market interest rate thresholds are realized. While interest is paid or received in swap, cap, and floors agreements, the notional principal amount is not exchanged. The Company may also manage the interest rate risk inherent in its mortgage banking operations by entering into forward sales contracts under which the Company agrees to deliver whole mortgage loans to various investors. See Note 8, “ Derivative and Hedging Activities ” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report for additional information regarding the Company’s derivative financial instruments. Movements in foreign currency rates or commodity prices do not directly or materially affect the Company’s earnings. Movements in equity prices may have a modest impact on earnings by affecting the volume of activity or the amount of fees from investment-related business lines. See Note 4, “Securities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report. Operational Risk Operational risk is the risk arising from human error or misconduct, transaction errors or delays, inadequate or failed internal systems or processes, data unavailability, loss, or poor quality, or adverse external events. Operational risk includes fraud risk and model risk. Potential operational risk exposure exists throughout the Company. The continued effectiveness of colleagues and operational infrastructure are integral to mitigating operational risk, and any shortcomings subject the Company to risks that vary in size, scale and scope. Reputation Risk Reputation risk is the risk arising from negative public opinion of the Company and the Bank. Management seeks to mitigate reputational risk through actions that include a structured process of customer complaint resolution and ongoing reputational monitoring. Regulatory and Compliance Risk Regulatory and Compliance risk is the risk arising from violations of laws or regulations, non-conformance with prescribed practices, internal bank policies and procedures, or ethical standards. Compliance risk includes consumer compliance risk, legal risk, and regulatory compliance risk. Management seeks to mitigate compliance risk through compliance training and regulatory change management processes. Technology and Cyber Risk Technology and Cyber risk is the risk of losses or other impacts arising from the failure of technology systems to function in accordance with expectations and business requirements. Technology risks include technical failures, unlawful tampering with technical systems, cyber security, terrorist activities, ineffectiveness or exposure due to interruption in third party support. Management seeks to mitigate technology risk through appropriate security and controls over data and its technological environment. The Bank manages cybersecurity threats proactively and maintains robust controls to protect its critical systems and data by investing in secure, reliable and resilient technology infrastructure, fostering a culture of technology risk awareness and continuously improving its technology risk management practices. Contractual Obligations, Commitments, Contingencies, and Off-Balance Sheet Financial Information Off-Balance Sheet Arrangements There were no material changes in off-balance sheet arrangements during the three months ended September 30, 2025. 93 Table of Contents See Note 8, “Derivative and Hedging Activities” and Note 12, “Commitments and Contingencies” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report for more information relating to the Company's other off-balance sheet financial instruments. Contractual Obligations, Commitments, and Contingencies There were no material changes in contractual obligations, commitments, or contingencies during the three months ended September 30, 2025. Item 3. Quantitative and Qualitative Disclosures About Market Risk Information required by this Item 3 is included in the “Risk Management” section of Part I. Item 2 “Management's Discussion and Analysis of Financial Condition and Results of Operations” of this Report and is incorporated herein by reference.