INDEPENDENT BANK CORP 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Independent Bank Corp. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Independent Bank Corp. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025 and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 27, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate. 70 Allowance for credit losses Description of the Matter The Company’s loan portfolio totaled $18.5 billion as of December 31, 2025, and the associated allowance for credit losses (“allowance”) was $190 million. As discussed in Notes 1 and 4 to the consolidated financial statements, the Company estimates the allowance on a collective basis for loans sharing similar risk characteristics using a quantitative model based on probability of default, loss given default and exposure at default estimates, which are derived from internal historical default and loss experience, adjusted for economic forecasts. The output is then combined with an assessment of qualitative factors, including economic and business conditions, changes to collateral values and other external factors, which factors are designed to address forecast risk and model risk inherent in the quantitative model output. Loans that do not share similar risk characteristics are individually evaluated and an allowance is determined based on a discounted cash flow or the fair value of collateral. Auditing the Company’s allowance for credit losses was complex due to the quantitative modeling used and involved subjective judgment to evaluate management’s determination of the qualitative risk factor adjustments and the allowance on individually evaluated loans described above. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s allowance process, which included, among others, controls over the appropriateness of the methodology, the development, operation and monitoring of the quantitative model, the reliability and accuracy of data used in developing the estimate, and management’s review and approval process over the economic forecasts, qualitative adjustments, individually evaluated loans, and overall allowance result. We tested the completeness, accuracy, and appropriateness of the underlying data, calculation, and methodology used to determine key assumption inputs into the quantitative model. We evaluated whether changes existed, or should have existed, to the key assumptions or quantitative model and concluded those changes were reasonable. To test the qualitative factors, among other procedures, we assessed management’s methodology and considered whether relevant risks were reflected in the models and whether adjustments to the model output were appropriate. We tested the completeness, accuracy and relevance of the underlying data used to estimate the qualitative adjustments. We evaluated whether qualitative adjustments were reasonable based on changes in economic conditions, the loan portfolio, management’s policies and procedures, and lending personnel. For example, we evaluated the reasonableness of qualitative adjustments for economic and business conditions, changes to collateral values and other external factors. We also assessed whether qualitative adjustments were consistent with publicly available information. Further, we performed an independent search for the existence of new or contrary information relating to risks impacting the qualitative adjustments to validate that management’s considerations were appropriate. Additionally, we evaluated whether the overall allowance, inclusive of qualitative adjustments, reasonably reflects losses expected in the loan portfolio by comparing to peer bank data. For the allowance on individually evaluated loans, we assessed management’s use of either a discounted cash flow or fair value of collateral approach based on the nature of the loan. We evaluated the methodologies and the assumptions used by management in determining the likelihood of recoverability and valuation of the underlying collateral. Procedures performed included testing the completeness and accuracy of management’s population and testing the calculation of the allowance on individually evaluated loans. Fair Value of Acquired Loans and Core Deposit Intangible Recognized as Part of the Enterprise Bancorp, Inc. Merger Description of the Matter As described in Note 2 to the consolidated financial statements, the Company acquired Enterprise Bancorp, Inc. (“Enterprise”) on July 1, 2025. The transaction has been accounted for as a business combination and accordingly, the assets acquired and liabilities assumed from Enterprise were recorded at fair value as of the merger date. The fair value of loans acquired from Enterprise was approximately $3.9 billion as of July 1, 2025. As disclosed by the Company, the fair value of acquired loans was determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a market-based discount rate to those cash flows. Additionally, the Company recognized a core deposit intangible asset of approximately $123 million as of July 1, 2025. The fair value of the core deposit intangible asset was determined based on projected cash flows, discounted at a rate commensurate with market participants. 71 Auditing the Company’s estimates of the fair value of acquired loans and core deposit intangible asset was complex due to the judgment required by management in determining the discount rates and loss rates used in the discounted cash flow methodology for the fair value of acquired loans and the projected deposit attrition rates and float reserve assumptions for the fair value of the core deposit intangible asset. This required a high degree of auditor judgment and effort in performing procedures and evaluating audit evidence obtained related to the judgments made by management, and required the use of professionals with specialized skill and knowledge. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s process for estimating the fair value of acquired loans and core deposit intangible, including management’s controls over completeness and accuracy of key inputs and assumptions used in the discounted cash flow methodology, including loan and deposit data. To test the estimated fair value of acquired loans, our audit procedures included, among others, involving EY specialists to assist us in testing management’s methodology and significant assumptions used in measuring the fair value of the acquired loan portfolio. We involved our specialists to test, on a sample basis, the determination and application of discount rates and loss rates by comparing management’s selected assumptions to independently developed ranges based on third party market data. We tested, on a sample basis, completeness and accuracy of the underlying loan data provided by management that was used in the fair value calculation. On a sample basis, we performed independent comparative calculations of the fair value adjustment to the acquired loans. To test the estimated fair value of the core deposit intangible asset, our audit procedures included, among others, involving EY specialists to assist us in testing management’s methodology and significant assumptions used in measuring the fair value of the core deposit intangible. We involved our specialists to test the determination and application of projected deposit attrition rates and float reserve assumptions by comparing management’s selected assumptions to independently developed ranges based on third party market data. Additionally, we tested completeness and accuracy of the underlying deposit data provided by management that was used in the fair value calculation. Lastly, we performed an independent comparative calculation of the core deposit intangible asset fair value. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2009 Boston, Massachusetts February 27, 2026 72 INDEPENDENT BANK CORP. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) December 31 2025 2024 Assets Cash and due from banks $ 229,770 $ 187,849 Interest-earning deposits with banks 542,132 32,041 Securities Trading 4,720 4,245 Equities 21,581 21,204 Available for sale (amortized cost $ 2,051,822 and $ 1,353,964 ) 2,004,247 1,250,944 Held to maturity (fair value $ 1,190,733 and $ 1,291,801 ) 1,279,027 1,434,956 Total securities 3,309,575 2,711,349 Loans held for sale (at fair value) 35,909 7,271 Loans Commercial and industrial 4,611,789 3,246,455 Commercial real estate 8,275,408 6,839,705 Commercial construction 1,399,193 782,078 Residential real estate 2,873,443 2,460,600 Home equity - first position 506,764 490,115 Home equity - subordinate positions 790,898 650,053 Other consumer 46,282 39,372 Total loans 18,503,777 14,508,378 Less: allowance for credit losses ( 189,877 ) ( 169,984 ) Net loans 18,313,900 14,338,394 Federal Home Loan Bank stock 21,835 31,573 Bank premises and equipment, net 218,190 193,320 Goodwill 1,090,610 985,072 Other intangible assets 133,576 12,284 Cash surrender value of life insurance policies 378,576 303,965 Other assets 638,823 570,447 Total assets $ 24,912,896 $ 19,373,565 Liabilities and Stockholders’ Equity Deposits Non-interest-bearing demand deposits $ 5,600,955 $ 4,390,703 Savings and interest checking accounts 6,482,970 5,207,548 Money market 4,774,645 2,960,381 Time certificates of deposit 3,268,220 2,747,346 Total deposits 20,126,790 15,305,978 Borrowings Federal Home Loan Bank and other borrowings 416,549 638,514 Line of credit (less unamortized debt issuance costs of $ 47 ) 49,953 — Junior subordinated debentures (less unamortized debt issuance costs of $ 26 and $ 28 ) 62,862 62,860 Subordinated debentures (less unamortized debt issuance costs of $ 3,517 ) 296,483 — Total borrowings 825,847 701,374 Other liabilities 394,531 373,093 Total liabilities 21,347,168 16,380,445 Commitments and contingencies — — Stockholders’ Equity Preferred stock, $ 0.01 par value; authorized: 1,000,000 shares, outstanding: none — — Common stock, $ 0.01 par value; authorized: 75,000,000 shares, issued and outstanding: 49,243,813 shares at December 31, 2025 and 42,500,611 shares at December 31, 2024 (includes 254,359 and 199,410 shares of unvested participating restricted stock awards, respectively) 490 423 Value of shares held in rabbi trust at cost: 75,247 shares at December 31, 2025 and 78,088 shares at December 31, 2024 ( 3,452 ) ( 3,383 ) Deferred compensation obligation 3,452 3,383 Additional paid in capital 2,335,879 1,909,980 Retained earnings 1,269,113 1,172,724 Accumulated other comprehensive loss, net of tax ( 39,754 ) ( 90,007 ) Total stockholders’ equity 3,565,728 2,993,120 Total liabilities and stockholders’ equity $ 24,912,896 $ 19,373,565 The accompanying notes are an integral part of these consolidated financial statements. 73 INDEPENDENT BANK CORP. CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31 2025 2024 2023 (Dollars in thousands, except per share data) Interest income Interest and fees on loans $ 922,225 $ 789,274 $ 730,008 Taxable interest and dividends on securities 79,268 57,092 60,336 Non-taxable interest and dividends on securities 345 6 6 Interest on loans held for sale 796 712 190 Interest on federal funds sold and short-term investments 19,766 5,669 5,186 Total interest and dividend income 1,022,400 852,753 795,726 Interest expense Interest on deposits 274,396 246,962 144,752 Interest on borrowings 39,173 44,062 44,453 Total interest expense 313,569 291,024 189,205 Net interest income 708,831 561,729 606,521 Provision for credit losses 65,469 36,250 23,250 Net interest income after provision for credit losses 643,362 525,479 583,271 Non-interest income Deposit account fees 32,141 26,455 23,486 Interchange and ATM fees 20,989 19,055 18,108 Investment management 50,045 42,744 40,191 Mortgage banking income 4,531 4,143 2,326 Increase in cash surrender value of life insurance policies 9,434 8,086 7,868 Gain on life insurance benefits 1,965 457 2,291 Loan level derivative income 3,564 2,117 3,327 Other non-interest income 26,020 24,957 27,012 Total non-interest income 148,689 128,014 124,609 Non-interest expenses Salaries and employee benefits 287,499 233,653 222,135 Occupancy and equipment expenses 57,596 52,072 50,582 Data processing & facilities management 11,180 9,957 9,884 Software and subscriptions 24,216 18,152 16,165 FDIC assessment 12,500 10,892 11,953 Debit card expense 8,492 6,630 9,003 Consulting expense 6,613 7,125 8,954 Amortization of intangible assets 16,910 5,905 6,878 Merger and acquisition expense 39,635 1,902 — Other non-interest expenses 65,240 60,078 57,192 Total non-interest expenses 529,881 406,366 392,746 Income before income taxes 262,170 247,127 315,134 Provision for income taxes 57,048 55,046 75,632 Net Income $ 205,122 $ 192,081 $ 239,502 Basic earnings per share $ 4.44 $ 4.52 $ 5.42 Diluted earnings per share $ 4.44 $ 4.52 $ 5.42 Weighted average common shares (basic) 46,169,692 42,499,492 44,181,540 Common share equivalents 21,390 12,309 12,007 Weighted average common shares (diluted) 46,191,082 42,511,801 44,193,547 Cash dividends declared per common share $ 2.36 $ 2.28 $ 2.20 The accompanying notes are an integral part of these consolidated financial statements. 74 INDEPENDENT BANK CORP. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Years Ended December 31 2025 2024 2023 (Dollars in thousands) Net income $ 205,122 $ 192,081 $ 239,502 Other comprehensive income (loss), net of tax Net change in fair value of securities available for sale 42,761 16,743 32,426 Net change in fair value of cash flow hedges 8,353 6,713 16,055 Net change in other comprehensive income for defined benefit postretirement plans ( 861 ) 1,364 ( 224 ) Total other comprehensive income 50,253 24,820 48,257 Total comprehensive income $ 255,375 $ 216,901 $ 287,759 The accompanying notes are an integral part of these consolidated financial statements. 75 INDEPENDENT BANK CORP. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Common Stock Outstanding Common Stock Value of Shares Held in Rabbi Trust at Cost Deferred Compensation Obligation Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total (Dollars in thousands, except per share data) Balance December 31, 2022 45,641,238 $ 455 $ ( 3,227 ) $ 3,227 $ 2,114,888 $ 934,442 $ ( 163,084 ) $ 2,886,701 Net income — — — — — 239,502 — 239,502 Other comprehensive income — — — — — — 48,257 48,257 Common dividend declared ($ 2.20 per share) — — — — — ( 96,456 ) — ( 96,456 ) Proceeds from exercise of stock options, net of cash paid 3,238 — — — 81 — — 81 Stock based compensation — — — — 6,377 — — 6,377 Restricted stock awards issued, net of awards surrendered 82,181 1 — — ( 1,136 ) — — ( 1,135 ) Shares issued under direct stock purchase plan 46,963 — — — 2,682 — — 2,682 Shares repurchased under share repurchase program (1) ( 2,900,433 ) ( 29 ) — — ( 190,729 ) — — ( 190,758 ) Deferred compensation and other retirement benefit obligations — — ( 71 ) 71 — — — — Balance December 31, 2023 42,873,187 $ 427 $ ( 3,298 ) $ 3,298 $ 1,932,163 $ 1,077,488 $ ( 114,827 ) $ 2,895,251 Net income — — — — — 192,081 — 192,081 Other comprehensive income — — — — — — 24,820 24,820 Common dividend declared ($ 2.28 per share) — — — — — ( 96,845 ) — ( 96,845 ) Proceeds from exercise of stock options, net of cash paid 1,667 — — — 81 — — 81 Stock based compensation — — — — 6,523 — — 6,523 Restricted stock awards issued, net of awards surrendered 99,692 1 — — ( 782 ) — — ( 781 ) Shares issued under direct stock purchase plan 58,331 — — — 3,287 — — 3,287 Shares repurchased under share repurchase program (1) ( 532,266 ) ( 5 ) — — ( 31,292 ) — — ( 31,297 ) Deferred compensation and other retirement benefit obligations — — ( 85 ) 85 — — — — Balance December 31, 2024 42,500,611 $ 423 $ ( 3,383 ) $ 3,383 $ 1,909,980 $ 1,172,724 $ ( 90,007 ) $ 2,993,120 Net income — — — — — 205,122 — 205,122 Other comprehensive income — — — — — — 50,253 50,253 Common dividend declared ($ 2.36 per share) — — — — — ( 108,733 ) — ( 108,733 ) Common stock issued for acquisition 7,478,906 75 — — 477,191 — — 477,266 Proceeds from exercise of stock options, net of cash paid 380 — — — — — — — Stock based compensation — — — — 8,985 — — 8,985 Restricted stock awards issued, net of awards surrendered 137,410 1 — — ( 1,404 ) — — ( 1,403 ) Shares issued under direct stock purchase plan 39,364 — — — 2,575 — — 2,575 Shares repurchased under share repurchase program (1) ( 912,858 ) ( 9 ) — — ( 61,448 ) — — ( 61,457 ) Deferred compensation and other retirement benefit obligations — — ( 69 ) 69 — — — — Balance December 31, 2025 49,243,813 $ 490 $ ( 3,452 ) $ 3,452 $ 2,335,879 $ 1,269,113 $ ( 39,754 ) $ 3,565,728 (1) Inclusive of $ 608,000 , $ 311,000 and $ 1.8 million impact of excise tax attributable to shares repurchased under a repurchase program for the years ended December 31, 2025, 2024 and 2023, respectively. The accompanying notes are an integral part of these consolidated financial statements. 76 INDEPENDENT BANK CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31 2025 2024 2023 (Dollars in thousands) Cash flow from operating activities Net income $ 205,122 $ 192,081 $ 239,502 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 42,142 40,889 36,102 Change in unamortized net loan costs and fees ( 1,979 ) ( 1,739 ) ( 1,856 ) Net accretion of acquired loans ( 11,530 ) ( 538 ) ( 2,251 ) Provision for credit losses 65,469 36,250 23,250 Deferred income tax (benefit) expense ( 3,283 ) ( 10,600 ) 2,738 Net gain on equity securities ( 403 ) ( 423 ) ( 1,180 ) Net loss on sale of securities 64 — — Net loss on bank premises and equipment 130 155 310 Realized gain on sale leaseback transaction — — ( 193 ) Stock based compensation 8,985 6,523 6,377 Increase in cash surrender value of life insurance policies ( 9,434 ) ( 8,086 ) ( 7,877 ) Gain on life insurance benefits ( 1,965 ) ( 457 ) ( 2,291 ) Operating lease payments ( 15,339 ) ( 14,018 ) ( 13,863 ) Change in fair value on loans held for sale ( 457 ) 20 ( 97 ) Net change in: Trading assets ( 475 ) 742 ( 1,099 ) Loans held for sale ( 27,931 ) ( 923 ) ( 3,468 ) Other assets 72,162 ( 15,498 ) 23,504 Other liabilities ( 70,118 ) 5,543 ( 20,614 ) Total adjustments 46,038 37,840 37,492 Net cash provided by operating activities 251,160 229,921 276,994 Cash flows provided by (used in) investing activities Purchases of equity securities ( 984 ) ( 1,058 ) ( 742 ) Proceeds from sales of securities available for sale 74,303 — — Proceeds from maturities and principal repayments of securities available for sale 254,799 235,144 106,713 Purchases of securities available for sale ( 426,161 ) ( 129,379 ) — Proceeds from maturities and principal repayments of securities held to maturity 161,164 138,399 140,888 Net decrease (increase) in Federal Home Loan Bank stock 16,621 11,984 ( 38,339 ) Investments in low-income housing projects ( 38,722 ) ( 33,053 ) ( 31,073 ) Purchases of life insurance policies ( 117 ) ( 114 ) ( 162 ) Proceeds from life insurance policies 3,951 1,929 5,531 Net increase in loans ( 125,724 ) ( 236,519 ) ( 378,735 ) Net cash acquired in business combinations 97,760 — — Purchases of bank premises and equipment ( 12,135 ) ( 20,435 ) ( 15,844 ) Proceeds from the sale of bank premises and equipment 295 92 113 Net cash provided by (used in) investing activities 5,050 ( 33,010 ) ( 211,650 ) Cash flows provided by (used in) financing activities Net (decrease) increase in time deposits ( 219,128 ) 565,752 985,567 Net increase (decrease) in other deposits 677,185 ( 125,436 ) ( 1,999,198 ) Net (repayments of) advances from Federal Home Loan Bank and other borrowings ( 284,373 ) ( 467,000 ) 1,105,000 Proceeds from line of credit, net of issuance costs 49,937 — — Proceeds from subordinated debentures, net of issuance costs 295,843 — — Repayments of subordinated debentures ( 60,000 ) ( 50,000 ) — Net proceeds from exercise of stock options — 80 80 Restricted stock awards issued, net of awards surrendered ( 1,459 ) ( 815 ) ( 1,142 ) Proceeds from shares issued under direct stock purchase plan 2,549 3,254 2,662 Payments for shares repurchased under share repurchase program ( 60,849 ) ( 30,986 ) ( 188,910 ) Common dividends paid ( 103,903 ) ( 96,200 ) ( 98,006 ) Net cash provided by (used in) financing activities 295,802 ( 201,351 ) ( 193,947 ) 77 Net increase (decrease) in cash and cash equivalents 552,012 ( 4,440 ) ( 128,603 ) Cash and cash equivalents at beginning of year 219,890 224,330 352,933 Cash and cash equivalents at end of period $ 771,902 $ 219,890 $ 224,330 Cash paid during the year for Interest on deposits and borrowings $ 307,257 $ 291,692 $ 183,068 Income taxes $ 34,783 $ 51,079 $ 43,706 Supplemental schedule of non-cash investing and financing activities Transfer of loans to other real estate owned and foreclosed assets $ 2,100 $ — $ — Net increase in capital commitments relating to low-income housing project investments $ 67,251 $ 46,070 $ 31,891 Recognition of operating lease at commencement and/or extension $ 23,075 $ 12,602 $ 7,916 In conjunction with the Company's acquisitions, assets were acquired and liabilities were assumed as follows Common stock issued for acquisition $ 477,266 $ — $ — Fair value of assets acquired, net of cash acquired $ 4,930,778 $ — $ — Fair value of liabilities assumed $ 4,551,272 $ — $ — The accompanying notes are an integral part of these consolidated financial statements. 78 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) INDEPENDENT BANK CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Independent Bank Corp. (the “Company”) is a bank holding company, the principal subsidiary of which is Rockland Trust Company (“Rockland Trust” or the “Bank”). Rockland Trust is a state-chartered commercial bank which provides a variety of banking, investment and financial services through its retail branches, commercial banking centers, investment management offices, and mortgage lending centers located throughout Eastern Massachusetts as well as in Worcester County, southern New Hampshire, and Rhode Island. Rockland Trust deposits are insured by the Federal Deposit Insurance Corporation, subject to regulatory limits. The Company’s primary source of income is from providing loans to individuals and small-to-medium sized businesses in its market area. Rockland Trust is a community-oriented commercial bank, and the community banking business is the Company’s only reportable operating segment. Principles of Consolidation The consolidated financial statements include the accounts of the Company, the Bank and other wholly-owned subsidiaries, except subsidiaries that are not deemed necessary to be consolidated. All significant intercompany balances and transactions have been eliminated in consolidation. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company would consolidate voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, variable interest entities (“VIEs”) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when the Company has both the power and ability to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company also owns the common stock of various trusts which have issued trust preferred securities. These trusts are VIEs in which the Company is not the primary beneficiary and, therefore, are not consolidated. The trust’s only assets are junior subordinated debentures issued by the Company, which were acquired by the trust using the proceeds from the issuance of the trust preferred securities and common stock. The junior subordinated debentures are included in long-term debt and the Company’s equity interest in the trust is included in other assets in the accompanying Consolidated Balance Sheets. Interest expense on the junior subordinated debentures is reported in interest expense on long-term debt in the accompanying Consolidated Statements of Income. Reclassification 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. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could vary from these estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for expected credit losses on loans held for investment, income taxes, valuation and allowance for expected credit losses on investment securities, and the valuation of goodwill and other intangible assets and their respective analyses of impairment. 79 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Concentrations of Credit Risk The vast majority of the Bank’s lending activities are conducted in New England. The Bank originates commercial and industrial loans, commercial and residential real estate loans, including construction loans, home equity loans, and other consumer loans for its portfolio. The Bank tracks concentrations of credit across numerous categories and segments based on aggregate credit exposure, which includes direct, indirect or contingent obligations to a borrower or group of borrowers engaged in one industry and by property type. The Bank considers a concentration to exist when aggregate credit exposure of a category or segment exceeds 25% of the Bank's total risk-based capital (inclusive of Tier 2 capital instruments). Business Combinations In accordance with applicable accounting guidance, the Company recognizes assets acquired and liabilities assumed at their respective fair values as of the date of acquisition, with the related transaction costs expensed in the period incurred. The Company may use third party valuation specialists to assist in the determination of fair value of certain assets and liabilities at the acquisition date, including loans, core deposit intangibles and time deposits. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed on the acquisition date, the estimates are inherently uncertain. The allowance for credit losses on purchased credit deteriorated (“PCD”) loans is recognized within business combination accounting. The allowance for credit losses on non-PCD loans is recognized as a provision expense in the same period as the business combination. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents may include cash on hand, amounts due from banks, inclusive of interest-earning deposits held at banks, and federal funds sold. Generally, federal funds are sold for up to two week periods. Securities Investment securities are classified at the time of purchase as available for sale, held to maturity, trading, or equity. Classification is constantly re-evaluated for consistency with corporate goals and objectives. Trading and equity securities are recorded at fair value with subsequent changes in fair value recorded in earnings. Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Securities not classified as held to maturity or trading are classified as available for sale and recorded at fair value, with changes in fair value excluded from earnings and reported in other comprehensive income, net of related tax. Purchase premiums and discounts are included in the amortized cost and are recognized in interest income, using the interest method, to arrive at periodic interest income at a constant effective yield, thereby reflecting the securities market yield. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Such gains and losses are recognized within non-interest income or non-interest expense within the Consolidated Statements of Income. Accrued interest receivable balances are excluded from the amortized cost of held to maturity securities and the fair value of available for sale securities and are included within other assets on the Consolidated Balance Sheets. Management has elected not to measure an allowance for credit losses on these balances as the Company employs a timely write-off policy. It is the Company’s policy that a security is placed on non-accrual status at the time any principal or interest payments become 90 days delinquent, and interest earned but not collected for a security placed on non-accrual is reversed against interest income. Allowance for Credit Losses - Available for Sale Securities The Company’s available for sale securities are carried at fair value and assessed for estimated credit losses in accordance with the current expected credit loss (“CECL” methodology). For available for sale securities in an unrealized loss position, management will first evaluate whether there is intent to sell, or if it is more likely than not that the Company will be required to sell a security prior to anticipated recovery of its amortized cost basis. If either of these criteria are met, the Company will record a write-down of the security’s amortized cost basis to fair value through income. For those available for sale securities which do not meet the intent or requirement to sell criteria, management will evaluate whether the decline in fair value is a result of credit related matters or other factors. In performing this assessment, management considers the creditworthiness of the issuer including whether the security is guaranteed by the U.S. Federal Government or other government agency, the extent to which fair value is less than amortized cost, and changes in credit rating during the period, among other factors. If this assessment indicates the existence of credit losses, the security will be written down to fair value, 80 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) as determined by a discounted cash flow analysis. To the extent the estimated cash flows do not support the amortized cost, the deficiency is considered to be due to credit loss and is recognized in earnings. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when the uncollectability of a security is confirmed, or when either of the aforementioned criteria surrounding intent or requirement to sell have been met. Allowance for Credit Losses - Held to Maturity Securities The Company measures expected credit losses on held to maturity securities on a collective basis by major security type in accordance with the CECL methodology. Management classifies the held to maturity portfolio into the following major security types: U.S. Treasury, Agency Mortgage-Backed Securities, Agency Collateralized Mortgage Obligations, and Small Business Administration Pooled Securities. Securities in the Company’s held to maturity portfolio are primarily guaranteed by either the U.S. Federal Government or other government sponsored agencies with a long history of no credit losses. As a result, management has determined these securities to have a zero loss expectation and therefore does not estimate an allowance for credit losses on these securities. Loans Held for Sale The Bank may choose to classify new residential real estate mortgage loans as held for sale based on intent, which is determined when loans are underwritten. Loans that are classified as held for sale at the time of origination are accounted for under the fair value option, whereby any changes in fair value relating to loans intended for sale are recorded in earnings and are offset by changes in fair value relating to interest rate lock commitments and forward sales commitments. Gains and losses on residential loan sales (sales proceeds minus carrying amount) are recorded in mortgage banking income. Upfront costs and fees related to items for which the fair value option is elected are recognized in earnings as incurred and are not deferred. Alternatively, any loans not originated for sale but subsequently transferred from held for investment to held for sale are valued at the lower of cost or fair value on an individual asset basis. Prospectively, any cost amounts in excess of fair value would be recorded as a valuation allowance and recognized as a reduction of other non-interest income. Loans Held for Investment Loans that the Company has the intent and ability to hold until maturity or payoff are carried at amortized cost (net of the allowance for credit losses). Amortized cost is the principal amount outstanding, adjusted by partial charge-offs and net of deferred loan costs or fees. For originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the expected term of the loan using the level-yield method. When a loan is paid off, the unamortized portion of the deferred amount is recognized in interest income. Interest income on loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. As a general rule, loans 90 days or more past due with respect to principal or interest are classified as non-accrual loans, or sooner if management considers such action to be prudent. However, loans that are 90 days or more past due may be kept on an accruing status if the loan is well secured and in the process of collection. Income accruals are suspended on all non-accrual loans in a timely manner and all previously accrued and uncollected interest is reversed against current income. A loan remains on non-accrual 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. When doubt exists as to the collectability of a loan, any payments received are applied to reduce the amortized cost of the loan to the extent necessary to eliminate such doubt. For all loan portfolios, a charge-off occurs when the Company determines that a specific loan, or portion thereof, is uncollectible. This determination is made based on management’s review of specific facts and circumstances of the individual loan, including assessing the viability of the customer’s business or project as a going concern, the expected cash flows to repay the loan, the value of the collateral and the ability and willingness of any guarantors to perform. 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, 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 Bank 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 Bank may terminate foreclosure proceedings if the borrower is able to 81 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) work out a satisfactory payment plan. Any loans that are modified are reviewed by the Company to determine whether the modification is the direct result of a borrower experiencing financial difficulty. The Company accounts for loans modified to borrowers experiencing financial difficulty in a manner consistent with other loans held for investment. Allowance for Credit Losses - Loans Held for Investment The allowance for credit losses is established based upon the Company’s current estimate of expected lifetime credit losses on loans measured at amortized cost, also referred to as the CECL methodology. Credit losses are charged against the allowance when management’s assessments confirm that the Company will not collect the full amortized cost basis of a loan. Subsequent recoveries, if any, are credited to the allowance. Under the CECL methodology, the Company estimates 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 quantitative model utilizes a factor-based approach to estimate expected credit losses using Probability of Default (“PD”), Loss Given Default (“LGD”) and Exposure at Default (“EAD”), which are derived from internal historical default and loss experience. The model estimates expected credit losses using loan level data over the estimated life of the exposure, considering the effect of prepayments. Economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period, beyond which is a reversion to the Company’s historical long-run average. Management has determined a reasonable and supportable period of 12 months, and a straight line reversion period of 6 months, to be appropriate for purposes of estimating expected credit losses. The qualitative risk factors impacting the expected risk of loss within the portfolio include the following: • Lending policies and procedures • Economic and business conditions • Nature and volume of loans • Changes in management • Changes in credit quality • Changes in loan review system • Changes to underlying collateral values • Concentrations of credit risk • Other external factors • Model imprecision Loans that do not share similar risk characteristics with any pools of assets are subject to individual evaluation and are removed from the collectively assessed pools to avoid double counting. For the loans that are individually evaluated, the Company uses either a discounted cash flow (“DCF”) 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. Loan modifications made to borrowers experiencing financial difficulty are evaluated on a collective basis with loans sharing similar risk characteristics in accordance with the CECL methodology. Accrued interest receivable amounts are excluded from balances of loans held at amortized cost and are included within other assets on the Consolidated Balance Sheets. Management has elected not to measure an allowance for credit losses on these amounts as the Company employs a timely write-off policy. Consistent with the Company’s policy for non-accrual loans, accrued interest receivable is typically written off when loans reach 90 days past due and are placed on non-accrual status. Allowance for Credit Losses - Unfunded Lending Commitments In the ordinary course of business, the Company enters into commitments to extend credit, commercial letters of credit, and standby letters of credit. The allowance for credit losses on these unfunded loan commitments provides for potential exposure inherent with the funding of unused portions on legal commitments that are not unconditionally cancellable by the Company. Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. The reserve for unfunded lending commitments is included in other liabilities on the Consolidated Balance Sheets. 82 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Acquired Loans Loans acquired through purchase or a business combination are recorded at their fair value at the acquisition date. The Company performs an assessment of acquired loans to first determine if such loans have experienced a more than insignificant deterioration in credit quality since their origination and thus should be classified and accounted for as PCD loans. For loans that have not experienced a more than insignificant deterioration in credit quality since origination, referred to as non-PCD loans, the Company records such loans at fair value, with any resulting discount or premium accreted or amortized into interest income over the remaining life of the loan using the interest method. Additionally, upon the purchase or acquisition of non-PCD loans, the Company measures and records a reserve for credit losses based on the Company’s methodology for determining the allowance under CECL. The allowance for non-PCD loans is recorded through a charge to provision for credit losses in the period in which the loans were purchased or acquired. Acquired loans that are classified as PCD are acquired at fair value, including any resulting discounts or premiums. Discounts and premiums are accreted or amortized into interest income over the remaining life of the loan using the interest method. In contrast to non-PCD loans, the initial allowance for credit losses on PCD loans is established through an adjustment to the acquired loan balance, rather than through a charge to provision for credit losses, in the period in which the loans were acquired. The allowance for PCD loans is determined based upon the Company’s methodology for estimating the allowance under CECL, and is recorded as an adjustment to the acquired loan balance on the date of acquisition. The Company evaluates acquired loans for deterioration in credit quality based on a variety of characteristics, including, but not limited to non-accrual and delinquency status, downgrades in credit quality since origination, loans that have been modified, along with any other factors identified by the Company through its initial analysis of acquired loans which may indicate there has been a more than insignificant deterioration in credit quality since origination. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics, if applicable. Subsequent to acquisition, the allowances for credit losses for both non-PCD and PCD loans are determined with the use of the Company’s allowance methodology under CECL, in the same manner as all other loans. Transfers and Servicing of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans held for sale are generally sold with servicing rights released, however if rights are retained, servicing assets are recognized as separate assets. Servicing rights are originally recorded at fair value within other assets, but subsequently are amortized in proportion to and over the period of estimated net servicing income, and are assessed for impairment at each reporting date. Fair value is 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, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, default rates and losses. 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 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. Servicing fee income is recorded for fees earned for servicing loans for investors. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. The amortization of mortgage servicing rights is recorded as a reduction of loan servicing fee income. 83 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The Company is also a party to certain instruments with off-balance-sheet risk including certain residential loans sold to investors with recourse. The Company’s policy is to record such instruments when funded. Federal Home Loan Bank Stock The Company, as a member of the Federal Home Loan Bank (“FHLB”) of Boston, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. The Company continually reviews its investment to determine if impairment exists. Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line convention method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease terms or the estimated useful lives of the improvements. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured, not to exceed fifteen years . Leases Upon commencement of a new lease, the Company will recognize a right of use (“ROU”) asset and corresponding lease liability. The Company makes the decision on whether to renew an option to extend a lease by considering various factors. The Company will recognize an adjustment to its ROU asset and lease liability when lease agreements are amended and executed, or in an event where the Company is reasonably certain that a renewal option will be exercised. The discount rate used in determining the present value of lease payments is based on the Company’s incremental borrowing rate for borrowings with terms similar to each lease at commencement date. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. The Company has elected the short-term lease recognition exemption for all leases that qualify. The Company may also assume lease obligations in connection with its acquisition activities, which may result in a market-based favorable or unfavorable lease position, resulting in an intangible lease asset. These intangible lease assets are amortized over the estimated remaining lease term. The Company is a party to certain equipment lease transactions where it has assumed the role of lessor for purchased assets. These lease transactions are classified by the Company as either operating leases or direct financing leases for accounting purposes, depending upon the nature of the underlying lease agreements. Under operating lease arrangements, the leased asset value is recorded within fixed assets and the Company recognizes rental income over the life of the lease. Under direct financing lease arrangements, the leased asset value is derecognized and offset with the recognition of a lease receivable that is evaluated for impairment in a manner similar to loans. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the net fair value of acquired businesses. Goodwill is not amortized and is assigned to one reporting unit. Goodwill is evaluated for impairment at least annually, or more often if warranted. In assessing for impairment, the Company has the option to first perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events and circumstances, the Company determines it is more-likely-than-not that the fair value is less than carrying value, a quantitative impairment test is performed to compare carrying value to the fair value of the reporting unit. The Company also has an unconditional option to bypass the assessment of qualitative factors for any period and proceed directly to the quantitative goodwill impairment test. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Other intangible assets subject to amortization consist of core deposit intangibles, customer lists, and non-compete agreements that are amortized over the estimated lives of the intangibles using a method that approximates the amount of economic benefits that are realized by the Company. Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. 84 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Impairment of Long-Lived Assets Other Than Goodwill The Company reviews long-lived assets, including premises and equipment, for impairment whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. The Company performs an undiscounted cash flow analysis to determine if impairment exists. When impairment is determined to exist, the related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of are based on the estimated proceeds to be received, less costs of disposal. Cash Surrender Value of Life Insurance Policies Increases in the cash surrender value (“CSV”) of life insurance policies, as well as benefits received net of any CSV, are recorded in other non-interest income, and are generally not subject to income taxes. The CSV of the policies is recorded as an asset of the Bank, with liabilities recognized for any split dollar arrangements associated with the policies. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. Regulatory requirements limit the total amount of CSV to be held with any individual carrier to 15% of Tier 1 capital (as defined for regulatory purposes) and the total CSV of all life insurance policies is limited to 25% of Tier 1 capital. Other Real Estate Owned and Other Foreclosed Assets Real estate properties and other assets, which have served as collateral to secure loans, are held for sale and are initially 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. Upon a sale of a foreclosed asset, any excess of the carrying value over the sale proceeds is recognized as a loss on sale. Any excess of sale proceeds over the carrying value of the foreclosed asset is first applied as a recovery to the valuation allowance, if any, with the remainder being recognized as a gain on sale. Operating expenses and changes in the valuation allowance relating to foreclosed assets are recorded in other non-interest expense. Derivatives Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is determined by whether it has been designated and qualifies as part of a hedging relationship, and further, by the type of hedging relationship. At the inception of a hedge, the Company documents certain items, including but not limited to the following: the relationship between hedging instruments and hedged items, the Company’s risk management objectives, hedging strategies, and the evaluation of hedge transaction effectiveness. Documentation includes linking all derivatives designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions. For those derivative instruments that are designated and qualify for special hedge accounting, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income, net of related tax. The Company considers any economic mismatch between the hedging instrument and the hedged transaction in its ongoing assessment of hedge effectiveness. If the hedging instrument is not highly effective at achieving offsetting cash flows attributable to the revised contractually specified interest rate(s), hedge accounting will be discontinued. At that time, accumulated other comprehensive income would be frozen and amortized, as long as the forecasted transactions are still probable of occurring. For derivative instruments designated and qualifying as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or liability or an identified portion thereof that is attributable to the hedged risk), the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current earnings during the period of the change in fair values. Hedge accounting is discontinued prospectively when (1) a derivative is no longer highly effective in offsetting changes in the fair value or cash flow of a hedged item, (2) a derivative expires or is settled, (3) it is no longer likely that a forecasted transaction associated with the hedge will occur, or (4) it is determined that designation of a derivative as a hedge is no longer appropriate. 85 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) To the extent the Company enters into new or re-designates existing hedging relationships, it is the Company’s policy to include the Overnight Index Swap Rate based on the Fed Funds Effective Rate and the Overnight Index Swap Rate based on the Secured Overnight Financing Rate (“SOFR”) in the spectrum of available benchmark interest rates for hedge accounting. For derivative instruments not designated as hedging instruments, such as loan level derivatives, foreign exchange contracts, risk participation agreements and mortgage derivatives, changes in fair value are recognized in other non-interest income during the period of change and are included in changes in other assets or other liabilities on the Company’s Consolidated Statement of Cash Flows. Retirement Plans The Company has various retirement plans in place for current and former employees, including postretirement benefit plans, supplemental executive retirement plans, a frozen multiemployer pension plan, a frozen single employer pension plan, deferred compensation plans, as well as other benefits. The postretirement benefit plans and the supplemental executive retirement plans are unfunded and therefore have no plan assets. The actuarial cost method used to compute the benefit liabilities and related expense is the projected unit credit method. The projected benefit obligation is principally determined based on the present value of the projected benefit distributions at an assumed discount rate. The discount rate which is utilized is based on the investment yield of high quality corporate bonds available in the market place with maturities approximately equal to projected cash flows of future benefit payments as of the measurement date. Periodic benefit expense (or income) includes service costs and interest costs based on the assumed discount rate, amortization of prior service costs due to plan amendments and amortization of actuarial gains and losses. Service costs are included in salaries and employee benefits and all other costs are included in other non-interest expense. The amortization of actuarial gains and losses is determined using the 10% corridor minimum amortization approach and is taken over the average remaining future working lifetime of the plan participants. The underfunded status of the plans is recorded as a liability on the balance sheet. The multiemployer pension plan’s assets are determined based on fair value, generally representing observable market prices. The actuarial cost method used to compute the pension liabilities and related expense is the unit credit method. The pension expense is equal to the plan contribution requirement of the Company for the plan year. The Company offers various deferred compensation plans to directors and employees that permit the investment of funds into Company stock or other diversified investment alternatives. All funds under these plans are held in a rabbi trust. The plans do not permit diversification after initial election and therefore elections made to defer into Company stock result in both the investment and obligation recognized within Stockholders’ Equity. Alternatively, investments not in Company stock are included in trading securities, with the correlating obligation classified as a liability. The Company has obligations with various individuals related to certain post-retirement benefits. The obligations are based on the individual’s service through retirement, with the associated cost recognized over the requisite service period. The accrual methodology results in an accrued amount at the full eligibility date equal to the then present value of all of the future benefits expected to be paid. Stock-Based Compensation The Company recognizes stock-based compensation based on the grant-date fair value of the award, with no adjustment for estimated forfeitures, as forfeitures are recognized when they occur. For restricted stock awards and units, the Company recognizes compensation expense ratably over the vesting period for the fair value of the award, measured at the grant date. For stock option awards, the Company values awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for these awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. The Company recognizes excess tax benefits on certain stock compensation transactions. The excess tax benefits are recorded through earnings as a discrete item within the Company’s effective tax rate during the period of the transaction. 86 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If current available information raises doubt as to the realization of the deferred tax assets, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in enacted tax rates is recognized in income in the period that includes the enactment date. Income taxes are allocated to each entity in the consolidated group based on its share of taxable income. Management exercises significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets, including projections of future taxable income. Additionally, a liability for unrecognized tax benefits is recorded for uncertain tax positions taken by the Company on its tax returns for which there is less than a 50% likelihood of being recognized upon a tax examination. Low Income Housing Tax Credits The Company accounts for its investments in qualified affordable housing projects using the proportional amortization method. Under the proportional amortization method the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received, and recognizes the net investment benefit as a component of income tax expense (benefit). Assets Under Administration Assets held in a fiduciary or agency capacity for customers are not included in the accompanying consolidated balance sheet, as such assets are not assets of the Company. Revenue from administrative and management activities associated with these assets is recorded on an accrual basis. Extinguishment of Debt Upon extinguishment of an outstanding debt, the Company records the difference between the exit price and the net carrying amount of the debt as a gain or loss on the extinguishment. The gain or loss is recorded as a component of other non-interest income or other non-interest expense, respectively. Earnings Per Share Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities, not subject to performance based measures (i.e. unvested time-vested restricted stock). Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding (inclusive of participating securities). Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options or the attainment of performance measures) were issued during the period, computed using the treasury stock method. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, unrealized losses related to factors other than credit on debt securities, if applicable, unrealized gains and losses on cash flow hedges, deferred gains on hedge accounting transactions, and changes in the funded status of the Company’s postretirement and supplemental retirement plans. 87 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Fair Value Measurements In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Revenue Recognition A portion of the Company’s non-interest income is derived from contacts with customers, and as such, the revenue recognized depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company accounts for such revenues in accordance with ASC 606 - Revenue from contacts with Customers and considers the terms of the contract and all relevant facts and circumstances when applying this guidance. To ensure its alignment with this core principle, the Company measures revenue and the timing of recognition by applying the following five steps: 1. Identify the contract(s) with customers 2. Identify the performance obligations 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations 5. Recognize revenue when (or as) the entity satisfies a performance obligation There were no significant judgments made in determining or allocating the transaction price for the Company’s primary revenue streams, which are outlined in further detail below, as the consideration and service requirements are generally explicitly identified in the associated contracts. Deposit Account Fees The Company offers various deposit account products to its customers governed by specific deposit agreements applicable to either personal customers or business customers. These agreements identify the general conditions and obligations of both parties, and include standard information regarding deposit account related fees. Deposit account services include providing access to deposit accounts as well as access to the various deposit transactional services of the Company. These transactional services are primarily those that are identified in the standard fee schedule, and include, but are not limited to, services such as overdraft protection, wire transfer, and check collection. Revenue is recognized in conjunction with the various services being provided. For example, the Company may assess monthly fixed service fees associated with the customer having access to the deposit account, which can vary depending on the account type and daily account balance. In addition, the Company may also assess separate fixed fees associated with and at the time specific transactions are entered into by the customer. As such, the Company considers its performance obligations to be met concurrently with providing the account access or completing the requested deposit transaction. Cash Management Cash management services are a subset of the Deposit account fees revenue stream. These services primarily include ACH transaction processing, positive pay and remote deposit services. These services are also governed by separate agreements entered into with the customer. The fee arrangement for these services is structured to assess fees under one of two scenarios, either a per transaction fee arrangement or an earnings credit analysis arrangement. Under the per transaction fee arrangement, fixed fees are assessed concurrently with customers executing the transactions, and as such, the Company considers its performance obligations to be met concurrently with completing the requested transaction. Under the earnings credit analysis arrangement, the Company provides a monthly earnings credit to the customer that is negotiated and determined based on various factors. The credit is then available to absorb the per transaction fees that are assessed on the customer’s deposit account activity for the month. Any amount of the transactional fees in excess of the earnings credit is recognized as revenue in that month. 88 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Interchange Fees The Company earns interchange revenue from its issuance of credit and debit cards granted through its membership in various card payment networks. The Company provides credit cards and debit cards to its customers which are authorized and settled through these payment networks, and in exchange, the Company earns revenue as determined by each payment network's interchange program. The revenue is recognized concurrently with the settlement of card transactions within each network. ATM Fees The Company deploys automated teller machines (ATMs) as part of its overall branch network. Certain transactions performed at the ATMs require customers to acknowledge and pay a fee for the requested service. Certain ATM fees are disclosed in the deposit account agreement fee schedules, whereas those assessed to non-Rockland Trust deposit holders are solely determined during the transaction at the machine. The ATM fee is a fixed dollar per transaction amount, and as such, is recognized concurrently with the overall daily processing and settlement of the ATM activity. Investment Management - Wealth Management and Advisory Services The Company offers investment management and trust services to individuals, institutions, small businesses and charitable institutions. Each investment management product is governed by its own contract along with a separate identifiable fee schedule unique to that product. The Company also offers additional services, such as estate settlement, financial planning, tax services and other special services quoted at the client’s request. Asset management and/or custody fees are based upon a percentage of the monthly valuation of the principal assets in the customer’s account, whereas fees for additional or special services are fixed in nature and are charged as services are rendered. As the fees are dependent on assets under management, which are susceptible to market factors outside of the Company’s control, this variable consideration is constrained and therefore no revenue is estimated at contract initiation. As such, all revenue is recognized in correlation to the monthly management fee determinations or as transactional services are provided. Due to the fact that payments are primarily made subsequent to the valuation period, the Company records a receivable for revenue earned but not received. Investment Management - Retail Investments and Insurance Revenue The Company offers the sale of mutual fund shares, unit investment trust shares, third party model portfolios, general securities, fixed and variable annuities and life insurance products through registered representatives who are both employed by the Company and licensed and contracted with various Broker General Agents to offer these products to the Company’s customer base. As such, the Company performs these services as an agent and earns a fixed commission on the sales of these products and services. To a lesser degree, production bonus commissions can also be earned based upon the Company meeting certain volume thresholds. In general, the Company recognizes commission revenue at the point of sale, and for certain insurance products, may also earn and recognize annual residual commissions commensurate with annual premiums being paid. Payment Processing Income The Company refers customers to third party payment processing partners in exchange for commission and fee income. The income earned is comprised of multiple components, including a fixed referral fee per each referred customer, a rebate amount determined primarily as a percentage of net revenue earned by the third party from services provided to each referred customer, and overall production bonus commissions if certain new account production thresholds are met. Payment processing income is recognized in conjunction with either completing the referral to earn the fixed fee amount or as the merchant activity is processed to derive the Company’s rebate and/or production bonus amounts. 89 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Credit Card Income The Company provides consumer and business credit card solutions to its customers by soliciting new accounts on behalf of a third party credit card provider in exchange for a fee. The income earned is comprised of new account incentive payments as well as a percentage of interchange income earned by the third party provider offering the consumer and business purpose revolving credit accounts. The credit card income is recognized in conjunction with the establishment of each new credit card member or as the interchange is earned by the third party in connection with net purchase transactions made by the credit card member. Other Non-interest Income The Company earns various types of other non-interest income that fall within the scope of the new revenue recognition rules, and have been aggregated into one general revenue stream in the table noted above. This amount includes, but is not limited to, the following types of revenue with customers: Safe Deposit Rent The Company rents out the use of safe deposit boxes to its customers, which can be accessed when the bank is open for business. The safe deposit box rental fee is paid upfront and is recognized as revenue ratably over the annual term of the contract. Foreign Currency The Company earns fee income associated with various transactions related to foreign currency product offerings, including foreign currency bank notes and drafts and foreign currency wires. The majority of this income is derived from commissions earned related to customers executing the above mentioned foreign currency transactions through arrangements with third party correspondents. Recent Accounting Standards Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815 “Derivatives and Hedging” Update No. 2025-09. Update No. 2025-09 was issued in November 2025 to clarify certain aspects of the guidance on hedge accounting and to address several incremental hedge accounting issues arising from the global reference rate reform initiative. The objective of this update is to more closely align hedge accounting with the economics of an entity’s risk management activities and to better reflect those strategies in financial reporting by enabling entities to achieve and maintain hedge accounting for highly effective economic hedges of forecasted transactions. This standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted on any date on or after the issuance of this update. The Company is currently evaluating the impact of this standard and does not expect the adoption to have an impact on the Company’s financial statements. FASB ASC Topic 326 “Financial Instruments - Credit Losses - Purchased Loans” Update No. 2025-08 . Update No. 2025-08 was issued in November 2025 requires entities to apply the gross-up approach under Topic 326 to all “purchased seasoned loans.” According to the amendments in this update, purchased seasoned loans are loans (excluding purchased financial assets with credit deterioration, credit card receivables, debt securities and trade receivables) that are (1) acquired in a business combination, or (2) obtained through a transfer that is not a business combination or initially recognized through the consolidation of a variable interest entity, if certain seasoning criteria are met. A loan is considered seasoned if it is obtained more than 90 days after its origination date and the transferee was not involved in the origination. This standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption is permitted. This standard will be effective for the Company, on a prospective basis, for loans acquired on or after the adoption date. The Company does not expect the adoption to have an impact on the Company’s current financial statements. FASB ASC Subtopic 220-40 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures” Update No. 2024-03. Update No. 2024-03 was issued in November 2024 and requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses for both interim and annual reporting periods. This standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard and does not expect the adoption to have an impact on the Company’s financial statements. 90 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) FASB ASC Topic 740 “Income Taxes” Update No. 2023-09. Update No. 2023-09 was issued in December 2023 and aims to enhance the transparency and decision usefulness of income tax disclosures by requiring disaggregated information related to the effective tax rate reconciliation as well as information on income taxes paid. This standard is effective for annual periods beginning after December 15, 2024 and requires prospective application with the option to apply retrospectively. The Company adopted this standard, effective December 31, 2025. NOTE 2 ACQUISITIONS Enterprise Bancorp, Inc. On July 1, 2025, the Company completed the acquisition of Enterprise Bancorp, Inc. (“Enterprise”). For each share of Enterpr ise common stock, Enterprise stockholders had the right to receive 0.60 shares of the Company's common stock and $ 2.00 in cash, with cash paid in lieu of fractional shares. Total consideration was $ 503.1 million and consisted of $ 477.2 million of equity ( 7,478,906 shares) in the form of Independent Bank Corp. common stock, plus $ 25.9 million in cash, including cash paid for stock option cancellations and fractional shares. The transaction qualified as a tax-free reorganization for federal income tax purposes and provided a tax-free exchange for Enterprise stockholders for the portion of the transaction consideration consisting of the Company’s common stock. In addition to increasing its loan and deposit base, the Company believes it will be able to provide a deeper product set to Enterprise customers, as well as benefit from increased operating synergies, improving the long-term operating and financial results of the Company. The Company accounted for the Enterprise acquisition using the acquisition method pursuant to the Business Combinations Topic of the FASB ASC. Accordingly, the Company recorded merger and acquisition expenses of $ 39.6 million during the year ended December 31, 2025 related to the Enterprise acquisition. Additionally, the acquisition method requires the acquirer to recognize the assets acquired and the liabilities assumed at their fair values as of the acquisition date. The excess of consideration paid over the estimated fair value of the net assets acquired totaled $ 105.5 million and was recorded to goodwill. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition: Net Assets Acquired at Fair Value (Dollars in thousands) Assets Cash $ 123,638 Investments 590,267 Loans (including loans held for sale) 3,913,112 Allowance for credit losses on PCD loans ( 9,020 ) Bank Premises and equipment 35,706 Goodwill 105,538 Core deposit and other intangibles 136,403 Other assets 158,772 Total assets acquired 5,054,416 Liabilities Deposits 4,362,710 Borrowings 62,472 Subordinated debt 59,974 Other liabilities 66,116 Total liabilities assumed 4,551,272 Purchase price $ 503,144 Fair value adjustments to assets acquired and liabilities assumed are generally amortized using either an effective yield or straight-line basis over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities. 91 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Cash and Cash Equivalents The fair values of cash and cash equivalents approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities. Investments The fair values of securities were based on quoted market prices for identical securities received from an independent, nationally-recognized, third party pricing service. Prices provided by the independent pricing service were based on recent trading activity and other observable information including, but not limited to, market interest rate curves, referenced credit spreads and estimated prepayment rates where applicable. Loans The loans acquired were recorded at fair value. Fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a market-based discount rate to those cash flows. Acquired loans were reviewed to determine if any had experienced a more-than-insignificant deterioration in credit quality since origination. Loans meeting established criteria to indicate more-than-insignificant deterioration were identified as PCD loans. In connection with the Enterprise acquisition, the Company recorded an allowance for credit losses on PCD loans of approximately $ 9.0 million. For PCD loans acquired from Enterprise, a reconciliation of the difference between the purchase price and par value of the assets acquired is presented below: As of July 1, 2025 (Dollars in thousands) Gross amortized cost basis at July 1, 2025 $ 406,135 Allowance for credit losses on PCD loans ( 9,020 ) Interest and liquidity discount ( 10,444 ) Basis in PCD loans at acquisition - estimated fair value $ 386,671 For loans acquired without evidence of more-than-insignificant deterioration in credit quality since origination, also referred to as non-PCD loans, the Company estimated an allowance for credit losses based on the Company’s methodology for determining the allowance under CECL. The resulting allowance on non-PCD loans was $ 34.5 million, which was recorded through a charge to provision for credit losses on the date of acquisition. Premises and Equipment The fair value of the premises, including land, buildings and improvements, was determined based upon appraisals by licensed real estate appraisers. The appraisals were based upon the best and highest use of the property with final values determined based upon an analysis of the cost, sales comparison and income capitalization approaches for each property appraised. Lease Assets and Lease Liabilities Lease assets and liabilities were measured using a methodology to estimate the future rental payments over the remaining lease term with discounting using the Company’s incremental borrowing rate. The lease term was determined for individual leases based on the Company’s assessment of the probability of exercising renewal options. The net effect of any off-market terms in a lease were also discounted and applied to the balance of the lease asset. Core Deposit Intangible 92 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The fair value of the core deposit intangible is derived by comparing the interest rate and servicing costs that the financial institution pays on the core deposit liability versus the current market rate for alternative sources of financing, while factoring in estimates over the remaining life and attrition rate of the deposit accounts. The intangible asset represents the stable and relatively low cost source of funds that the deposits and accompanying relationships provide the Company, when compared to alternative funding sources. Wealth Management Customer List Intangible The acquired wealth management division has longstanding relationships with a significant number of its customers which have been developed over time and are essential to the business. The fair value of the Enterprise wealth management customer relationship intangible was determined utilizing variations and combinations of the income and cost approaches. Revenue growth and customer attrition assumptions were used to determine projected cash flows, with adjustments made for contributory asset charges and costs associated with new customer development. The resulting net, or excess, earnings attributable to these relationships was then discounted to present value using an appropriate discount rate. Deposits The fair value of acquired savings and transaction deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. Selected Pro Forma Results The following summarizes the unaudited pro forma results of operations as if the Company acquired Enterprise on January 1, 2025 (2024 amounts represent combined results for the Company and Enterprise). The selected pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the acquisition actually been completed at the beginning of the period presented, nor does it indicate future results for any other interim or full-year period. Year Ended December 31 2025 2024 (Dollars in thousands) Net interest income after provision for credit losses $ 788,062 $ 709,593 Net income $ 204,900 $ 230,814 Included in the pro forma net income for the twelve months ended December 31, 2025 are merger-related costs of $ 47.1 million, net of tax, recognized by the Company and Enterprise, in the aggregate. These costs were primarily made up of severance, contract terminations due to the change in control, professional and legal fees, facilities conversion and termination costs and other integration costs. NOTE 3 SECURITIES Trading Securities The Company had trading securities of $ 4.7 million and $ 4.2 million at December 31, 2025 and 2024, respectively. These securities are held in a rabbi trust and will be used for future payments associated with the Company’s non-qualified 401(k) Restoration Plan and Non-qualified Deferred Compensation Plan. Equity Securities The Company had equity securities of $ 21.6 million and $ 21.2 million at December 31, 2025 and 2024, respectively. These securities consist primarily of mutual funds held in a rabbi trust and will be used for future payments associated with the Company’s supplemental executive retirement plans. 93 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following table represents a summary of the gains and losses recognized within non-interest income and non-interest expense within the Consolidated Statements of Income that relate to equity securities for the periods indicated: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Net gains recognized during the period on equity securities $ 403 $ 423 $ 1,180 Less: net gains recognized during the period on equity securities sold during the period 256 877 197 Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ 147 $ ( 454 ) $ 983 Available for Sale Securities The following table summarizes the amortized cost, allowance for credit losses, and fair value of available for sale securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at the dates indicated: December 31, 2025 December 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for credit losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for credit losses Fair Value (Dollars in thousands) U.S. government agency securities $ 228,697 $ — $ ( 10,025 ) $ — $ 218,672 $ 229,452 $ — $ ( 19,792 ) $ — $ 209,660 U.S. treasury securities 485,388 32 ( 14,336 ) — 471,084 628,017 — ( 36,016 ) — 592,001 Agency mortgage-backed securities 790,764 4,430 ( 22,231 ) — 772,963 415,918 25 ( 37,782 ) — 378,161 Agency collateralized mortgage obligations 273,321 784 ( 4,529 ) — 269,576 31,168 1 ( 2,174 ) — 28,995 Non-taxable municipal securities 12,478 80 — — 12,558 197 — ( 3 ) — 194 Taxable municipal securities 217,574 2,976 ( 30 ) — 220,520 — — — — — Pooled trust preferred securities issued by banks and insurers 1,120 — ( 78 ) — 1,042 1,180 — ( 85 ) — 1,095 Small business administration pooled securities 42,480 — ( 4,648 ) — 37,832 48,032 — ( 7,194 ) — 40,838 Total available for sale securities $ 2,051,822 $ 8,302 $ ( 55,877 ) $ — $ 2,004,247 $ 1,353,964 $ 26 $ ( 103,046 ) $ — $ 1,250,944 Excluded from the table above is accrued interest on available for sale securities of $ 5.6 million and $ 2.9 million at December 31, 2025 and 2024, respectively, which is included within other assets on the Consolidated Balance Sheets. The Company did not record any write-offs of accrued interest income on available for sale securities for the years ended December 31, 2025 and 2024. Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status at December 31, 2025 and 2024. When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. During the year ended December 31, 2025, the Company sold approximately $ 74.3 million of available for sale securities, largely comprised of securities acquired from the Enterprise acquisition, recognizing a loss of approximately $ 64,000 . The Company had no sales of securities available for sale for the year ended December 31, 2024. 94 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following tables show the gross unrealized losses and fair value of the Company’s available for sale securities in an unrealized loss position as of the dates indicated. These available for sale securities are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2025 Less than 12 months 12 months or longer Total # of holdings Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) U.S. government agency securities 9 $ — $ — $ 218,672 $ ( 10,025 ) $ 218,672 $ ( 10,025 ) U.S. treasury securities 10 — — 464,514 ( 14,336 ) 464,514 ( 14,336 ) Agency mortgage-backed securities 106 178,837 ( 911 ) 237,923 ( 21,320 ) 416,760 ( 22,231 ) Agency collateralized mortgage obligations 54 175,697 ( 3,216 ) 23,265 ( 1,313 ) 198,962 ( 4,529 ) Taxable municipal securities 8 6,792 ( 30 ) — — 6,792 ( 30 ) Pooled trust preferred securities issued by banks and insurers 1 — — 1,042 ( 78 ) 1,042 ( 78 ) Small business administration pooled securities 8 — — 37,832 ( 4,648 ) 37,832 ( 4,648 ) Total impaired available for sale securities 196 $ 361,326 $ ( 4,157 ) $ 983,248 $ ( 51,720 ) $ 1,344,574 $ ( 55,877 ) December 31, 2024 Less than 12 months 12 months or longer Total # of holdings Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government agency securities 9 $ — $ — $ 209,660 $ ( 19,792 ) $ 209,660 $ ( 19,792 ) U.S. treasury securities 13 — — 592,001 ( 36,016 ) 592,001 ( 36,016 ) Agency mortgage-backed securities 117 127,152 ( 2,867 ) 249,098 ( 34,915 ) 376,250 ( 37,782 ) Agency collateralized mortgage obligations 11 1,153 ( 4 ) 26,890 ( 2,170 ) 28,043 ( 2,174 ) Non-taxable municipal securities 1 194 ( 3 ) — — 194 ( 3 ) Pooled trust preferred securities issued by banks and insurers 1 — — 1,095 ( 85 ) 1,095 ( 85 ) Small business administration pooled securities 8 — — 40,838 ( 7,194 ) 40,838 ( 7,194 ) Total impaired available for sale securities 160 $ 128,499 $ ( 2,874 ) $ 1,119,582 $ ( 100,172 ) $ 1,248,081 $ ( 103,046 ) The Company does not intend to sell these investments and has determined, based upon available evidence, that it is more likely than not that the Company will not be required to sell each security before the recovery of its amortized cost basis. In addition, management does not believe that any of the securities are impaired due to reasons of credit quality. As a result, the Company did not recognize a provision for credit losses on these investments for either of the years ended December 31, 2025 and 2024. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, and current analysts’ evaluations. 95 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the table above by category were as follows at December 31, 2025: • U.S. Government Agency Securities, U.S. Treasury Securities, Agency Mortgage-Backed Securities, Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities: These portfolios have contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. Government or one of its agencies. • Taxable Municipal Securities : This portfolio has contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. • Pooled Trust Preferred Securities: This portfolio consists of one security which is performing. The unrealized loss on this security is attributable to the illiquid nature of the trust preferred market in the current economic and regulatory environment. Management evaluates collateral credit and instrument structure, including current and expected deferral and default rates and timing. In addition, discount rates are determined by evaluating comparable spreads observed currently in the market for similar instruments. Held to Maturity Securities The following table summarizes the amortized cost, fair value and allowance for credit losses of held to maturity securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated: December 31, 2025 December 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for credit losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for credit losses Fair Value (Dollars in thousands) U.S. treasury securities $ 100,872 $ — $ ( 3,748 ) $ — $ 97,124 $ 100,791 $ — $ ( 7,769 ) $ — $ 93,022 Agency mortgage-backed securities 694,903 339 ( 35,827 ) — 659,415 788,470 90 ( 62,198 ) — 726,362 Agency collateralized mortgage obligations 370,698 — ( 44,900 ) — 325,798 422,827 — ( 65,143 ) — 357,684 Small business administration pooled securities 112,554 183 ( 4,341 ) — 108,396 122,868 — ( 8,135 ) — 114,733 Total held to maturity securities $ 1,279,027 $ 522 $ ( 88,816 ) $ — $ 1,190,733 $ 1,434,956 $ 90 $ ( 143,245 ) $ — $ 1,291,801 All held to maturity securities held by the Company are guaranteed by the U.S. federal government or other government sponsored agencies and have a long history of no credit losses. As a result, management has determined these securities to have a zero loss expectation and therefore the Company did not record a provision for estimated credit losses on any held to maturity securities for the years ended December 31, 2025 and 2024. Excluded from the table above is accrued interest on held to maturity securities of $ 3.4 million and $ 3.8 million at December 31, 2025 and 2024, respectively, which is included within other assets on the Consolidated Balance Sheets. The Company did not record any write-offs of accrued interest income on held to maturity securities for the years ended December 31, 2025 and 2024. Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status at December 31, 2025 and 2024. When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The Company had no sales of held to maturity securities for the years ended December 31, 2025 and 2024, and therefore no gains or losses were realized during the periods presented. The Company monitors the credit quality of held to maturity securities through the use of credit ratings. Credit ratings are monitored by the Company on at least a quarterly basis. At December 31, 2025 and 2024, all held to maturity securities held by the Company were rated investment grade or higher. 96 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The actual maturities of certain available for sale or held to maturity securities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. A schedule of the contractual maturities of securities available for sale and securities held to maturity at December 31, 2025 is presented below: Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Available for sale securities U.S. government agency securities $ 67,581 $ 66,465 $ 161,116 $ 152,207 $ — $ — $ — $ — $ 228,697 $ 218,672 U.S. treasury securities 245,330 241,528 240,058 229,556 — — — — 485,388 471,084 Agency mortgage-backed securities 23,941 23,460 186,900 183,182 46,100 42,489 533,823 523,832 790,764 772,963 Agency collateralized mortgage obligations — — 4,420 4,454 1,877 1,773 267,024 263,349 273,321 269,576 Non-taxable municipal securities 1,588 1,589 7,800 7,806 3,090 3,163 — — 12,478 12,558 Taxable municipal securities — — 104,445 105,598 111,671 113,439 1,458 1,483 217,574 220,520 Pooled trust preferred securities issued by banks and insurers — — — — — — 1,120 1,042 1,120 1,042 Small business administration pooled securities — — — — 10,560 10,017 31,920 27,815 42,480 37,832 Total available for sale securities $ 338,440 $ 333,042 $ 704,739 $ 682,803 $ 173,298 $ 170,881 $ 835,345 $ 817,521 $ 2,051,822 $ 2,004,247 Held to maturity securities U.S. Treasury securities $ — $ — $ 99,878 $ 96,252 $ 994 $ 872 $ — $ — $ 100,872 $ 97,124 Agency mortgage-backed securities 78,780 78,001 346,118 332,207 139,401 125,995 130,604 123,212 694,903 659,415 Agency collateralized mortgage obligations 25,468 25,323 34,664 32,923 13,019 11,971 297,547 255,581 370,698 325,798 Small business administration pooled securities — — — — 5,226 4,967 107,328 103,429 112,554 108,396 Total held to maturity securities $ 104,248 $ 103,324 $ 480,660 $ 461,382 $ 158,640 $ 143,805 $ 535,479 $ 482,222 $ 1,279,027 $ 1,190,733 Total $ 442,688 $ 436,366 $ 1,185,399 $ 1,144,185 $ 331,938 $ 314,686 $ 1,370,824 $ 1,299,743 $ 3,330,849 $ 3,194,980 Included in the table above is $ 132.2 million of callable securities at December 31, 2025. The carrying value of securities pledged to secure public funds, trust deposits, and for other purposes, as required or permitted by law, was $ 2.5 billion and $ 2.1 billion at December 31, 2025 and 2024, respectively. At December 31, 2025 and 2024, the Company had no investments in obligations of individual states, counties, or municipalities which exceeded 10% of stockholders’ equity. 97 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 4 LOANS, ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY Loans Held for Investment and Allowance for Credit Losses The following table summarizes the change in allowance for credit losses by loan category, and bifurcates the amount of loans allocated to each loan category for the periods indicated: Year Ended December 31, 2025 (Dollars in thousands) Commercial and Industrial Commercial Real Estate Commercial Construction Residential Real Estate Home Equity Other Consumer Total Allowance for credit losses Beginning balance $ 30,799 $ 93,718 $ 8,166 $ 25,238 $ 11,007 $ 1,056 $ 169,984 Charge-offs ( 8,813 ) ( 43,412 ) — — ( 96 ) ( 4,483 ) ( 56,804 ) Recoveries 135 20 — — 94 1,959 2,208 Initial allowance on PCD loans 4,016 2,796 1,739 297 118 54 9,020 Provision for credit losses 21,839 31,794 4,349 3,719 1,253 2,515 65,469 Ending balance (1) $ 47,976 $ 84,916 $ 14,254 $ 29,254 $ 12,376 $ 1,101 $ 189,877 Year Ended December 31, 2024 (Dollars in thousands) Commercial and Industrial Commercial Real Estate Commercial Construction Residential Real Estate Home Equity Other Consumer Total Allowance for credit losses Beginning balance $ 36,049 $ 61,305 $ 7,683 $ 23,637 $ 12,797 $ 751 $ 142,222 Charge-offs ( 6,593 ) — — — ( 380 ) ( 3,374 ) ( 10,347 ) Recoveries 194 — — — 343 1,322 1,859 Provision for credit losses 1,149 32,413 483 1,601 ( 1,753 ) 2,357 36,250 Ending balance (1) $ 30,799 $ 93,718 $ 8,166 $ 25,238 $ 11,007 $ 1,056 $ 169,984 Year Ended December 31, 2023 (Dollars in thousands) Commercial and Industrial Commercial Real Estate Commercial Construction Residential Real Estate Home Equity Other Consumer Total Allowance for credit losses Beginning balance $ 44,336 $ 63,856 $ 10,762 $ 20,973 $ 11,504 $ 988 $ 152,419 Charge-offs ( 24,048 ) ( 7,855 ) — — ( 47 ) ( 2,832 ) ( 34,782 ) Recoveries 237 — — — 62 1,036 1,335 Provision for credit losses 15,524 5,304 ( 3,079 ) 2,664 1,278 1,559 23,250 Ending balance (1) $ 36,049 $ 61,305 $ 7,683 $ 23,637 $ 12,797 $ 751 $ 142,222 (1) Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $ 70.3 million, $ 55.6 million, and $ 60.2 million at December 31, 2025, 2024, and 2023, respectively. The balance of allowance for credit losses increased by $ 19.9 million to $ 189.9 million as of December 31, 2025, as compared to $ 170.0 million at December 31, 2024. The increase was driven primarily by $ 43.5 million in initial allowance reserves recorded on the acquired Enterprise portfolio, including $ 34.5 million and $ 9.0 million attributable to non-PCD and PCD loans, respectively, as well as additional specific reserve allocations on certain commercial loans during 2025. These increases were partially offset by charge-offs on several classified commercial loans which had been previously reserved for. Each of the following loan categories possesses unique risk characteristics that are considered when determining the appropriate level of allowance for each segment. Some of the characteristics unique to each loan category include: 98 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Commercial Portfolio • Commercial and Industrial : Consists of revolving, non-revolving, and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment, as well as loans to finance owner-occupied commercial properties. Collateral generally consists of accounts receivable, inventory, plant and equipment, real estate, or other business assets. The primary source of repayment is operating cash flow and, secondarily, liquidation of assets. • Commercial Real Estate : Consists of mortgage loans to finance investment in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational and healthcare facilities, as well as other specific use properties and is inclusive of non-owner-occupied commercial properties. Loans are typically written with amortizing payment structures. Collateral values are determined based upon third party appraisals and evaluations. Permissible loan to value ratios at origination are governed by Company policy and regulatory guidelines. The primary source of repayment is cash flow from operating leases and rents and, secondarily, liquidation of assets. • Commercial Construction : Consists of short-term construction loans, revolving and non-revolving credit lines and construction/permanent loans to finance the acquisition, development and construction or rehabilitation of real property. Project types include residential land development, one-to-four family, condominium, and multi-family home construction, commercial/retail, office, industrial, hotels, educational and healthcare facilities as well as other specific use properties. Loans may be written with non-amortizing or hybrid payment structures depending upon the type of project. Collateral values are determined based upon third party appraisals and evaluations. Permissible loan to value ratios at origination are governed by Company policy and regulatory guidelines. Repayment sources vary depending upon the type of project and may consist of proceeds from the sale or lease of units, operating cash flows or liquidation of other assets. For the commercial portfolio the Company typically obtains personal guarantees for payment from individuals and/or from other corporate or business entities holding a material ownership interest in the borrowing entities. Guarantees may be either unlimited or limited with respect to guaranteed loan amounts or with respect to other terms and conditions. Consumer Portfolio • Residential Real Estate : Residential mortgage loans held in the Company’s portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current and expected income, employment status, current assets, other financial resources, credit history and the value of the collateral. Collateral consists of mortgage liens on one-to-four family residential properties. Residential mortgage loans also include loans to construct owner-occupied one-to-four family residential properties. • Home Equity : Home equity loans and credit lines are made to qualified individuals and are primarily secured by senior or junior mortgage liens on one-to-four family homes, condominiums or vacation homes. Each home equity loan has a fixed rate and is billed in equal payments comprised of principal and interest. The majority of home equity lines of credit have a variable rate and are billed in interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the then outstanding principal balance plus all accrued interest over a predetermined repayment period, as set forth in the note. Additionally, the Company has the option of renewing each line of credit for additional draw periods. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan to value ratios within established policy guidelines. • Other Consumer: Other consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. These loans may be secured or unsecured. Credit Quality The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as adversely risk-rated, delinquent, non-performing and/or put on non-accrual status. Additionally, in the course of resolving such loans, the Company may choose to modify the contractual terms of certain loans to match the borrower’s ability to repay the loan based on their current financial condition. The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For the commercial portfolio, the Company utilizes a 10-point credit risk-rating system, which assigns a risk-grade to each loan 99 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) obligation based on a number of quantitative and qualitative factors associated with a commercial or small business loan transaction. Factors considered include industry and market conditions, position within the industry, earnings trends, operating cash flow, asset/liability values, debt capacity, guarantor strength, management and controls, financial reporting, collateral, and other considerations. The risk-rating categories for the commercial portfolio are defined as follows: • Pass: Risk-rating “1” through “6” comprises loans ranging from ‘Substantially Risk Free’ which indicates borrowers are of unquestioned credit standing and the pinnacle of credit quality, well established companies with a very strong financial condition, and loans fully secured by cash collateral, through ‘Acceptable Risk,’ which indicates borrowers may exhibit declining earnings, strained cash flow, increasing or above average leverage and/or weakening market fundamentals that indicate below average asset quality, margins and market share. Collateral coverage is protective. • Special Mention: Borrowers exhibit potential credit weaknesses or downward trends deserving management’s close attention. If not checked or corrected, these trends will weaken the Company’s asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned. • Substandard: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Loans may be inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. However, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation. • Doubtful: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. • Loss: Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted. The Company utilizes a comprehensive, continuous strategy for evaluating and monitoring commercial credit quality. Initially, credit quality is determined at loan origination and is re-evaluated when subsequent actions, such as renewals, modifications or reviews, occur. Actively managed commercial borrowers are required to provide updated financial information at least annually which is carefully evaluated for any changes in credit quality. Larger loan relationships are subject to a full annual credit review by experienced credit professionals, while continuous portfolio monitoring techniques are employed to evaluate changes in credit quality for smaller loan relationships. Any changes in credit quality are reflected in risk-rating changes. Additionally, the Company retains an independent loan review firm to evaluate the credit quality of the commercial loan portfolio. The independent loan review process achieves significant penetration into the commercial loan portfolio and reports the results of these reviews to the Audit Committee of the Board of Directors on a quarterly basis. For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. As a result, for this portfolio the Company utilizes a pass/default risk-rating system, based on an age analysis (i.e., days past due) associated with each consumer loan. Under this structure, consumer loans less than 90 days past due are assigned a “pass” rating, while any consumer loans 90 days or more past due are assigned a “default” rating. 100 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following table details the amortized cost balances of the Company’s loan portfolios, presented by credit quality indicator and origination year as of the dates indicated below: December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving converted to Term (1) Total (2) (Dollars in thousands) Commercial and industrial Pass $ 1,050,723 $ 674,956 $ 427,794 $ 408,646 $ 310,331 $ 777,748 $ 802,675 $ — $ 4,452,873 Special Mention 22,454 8,171 7,458 4,700 10,241 7,253 17,091 — 77,368 Substandard 28,004 15,826 445 5,045 2,358 2,306 27,544 — 81,528 Doubtful — — 20 — — — — — 20 Loss — — — — — — — — — Total commercial and industrial $ 1,101,181 $ 698,953 $ 435,717 $ 418,391 $ 322,930 $ 787,307 $ 847,310 $ — $ 4,611,789 Current-period gross write-offs $ — $ 42 $ 62 $ 98 $ 900 $ 76 $ 7,635 $ 8,813 Commercial real estate Pass $ 1,254,204 $ 868,351 $ 991,179 $ 1,233,528 $ 1,212,646 $ 2,323,268 $ 153,939 $ — $ 8,037,115 Special Mention 56,300 20,655 9,865 697 4,052 29,328 197 — 121,094 Substandard 25,600 32,514 20,927 1,326 10,291 4,266 — — 94,924 Doubtful 22,275 — — — — — — — 22,275 Loss — — — — — — — — — Total commercial real estate $ 1,358,379 $ 921,520 $ 1,021,971 $ 1,235,551 $ 1,226,989 $ 2,356,862 $ 154,136 $ — $ 8,275,408 Current-period gross write-offs $ 8,126 $ — $ 26,862 $ — $ 7,089 $ 1,335 $ — $ — $ 43,412 Commercial construction Pass $ 509,630 $ 362,300 $ 237,679 $ 69,779 $ 62,752 $ 23,781 $ 57,615 $ — $ 1,323,536 Special Mention 29,634 29,516 — — — — — — 59,150 Substandard 9,822 848 — — — 2,992 — — 13,662 Doubtful — — — 2,845 — — — — 2,845 Loss — — — — — — — — — Total commercial construction $ 549,086 $ 392,664 $ 237,679 $ 72,624 $ 62,752 $ 26,773 $ 57,615 $ — $ 1,399,193 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate Pass $ 273,907 $ 252,544 $ 487,064 $ 640,426 $ 405,352 $ 807,275 $ — $ — $ 2,866,568 Default — — 742 1,626 301 4,206 — — 6,875 Total residential real estate $ 273,907 $ 252,544 $ 487,806 $ 642,052 $ 405,653 $ 811,481 $ — $ — $ 2,873,443 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity Pass $ 10,970 $ 13,118 $ 18,339 $ 29,574 $ 43,928 $ 145,224 $ 1,011,854 $ 21,027 $ 1,294,034 Default — — — — — 587 2,991 50 3,628 Total home equity $ 10,970 $ 13,118 $ 18,339 $ 29,574 $ 43,928 $ 145,811 $ 1,014,845 $ 21,077 $ 1,297,662 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ 96 $ — $ 96 Other consumer (3) Pass $ 1,395 $ 1,781 $ 1,570 $ 906 $ 868 $ 1,067 $ 38,693 $ — $ 46,280 Default — — — — — — 2 — 2 Total other consumer $ 1,395 $ 1,781 $ 1,570 $ 906 $ 868 $ 1,067 $ 38,695 $ — $ 46,282 Current-period gross write-offs $ 4,428 $ 22 $ 10 $ — $ — $ — $ 23 $ — $ 4,483 Total $ 3,294,918 $ 2,280,580 $ 2,203,082 $ 2,399,098 $ 2,063,120 $ 4,129,301 $ 2,112,601 $ 21,077 $ 18,503,777 Total current-period gross write-offs $ 12,554 $ 64 $ 26,934 $ 98 $ 7,989 $ 1,411 $ 7,754 $ — $ 56,804 101 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) December 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving converted to Term (1) Total (2) (Dollars in thousands) Commercial and industrial Pass $ 729,519 $ 330,362 $ 378,428 $ 261,526 $ 180,076 $ 525,457 $ 673,733 $ 1,118 $ 3,080,219 Special Mention 18,600 554 2,410 10,724 964 2,676 41,534 — 77,462 Substandard 17,132 4,454 5,339 27,642 319 351 21,885 — 77,122 Doubtful — — — — — — 11,652 — 11,652 Loss — — — — — — — — — Total commercial and industrial $ 765,251 $ 335,370 $ 386,177 $ 299,892 $ 181,359 $ 528,484 $ 748,804 $ 1,118 $ 3,246,455 Current-period gross write-offs $ 48 $ 39 $ 35 $ 54 $ — $ — $ 6,417 $ — $ 6,593 Commercial real estate Pass $ 792,092 $ 883,190 $ 924,422 $ 1,050,867 $ 1,006,088 $ 1,828,952 $ 101,389 $ 241 $ 6,587,241 Special Mention 16,243 6,037 — 760 — 60,184 198 — 83,422 Substandard 53,532 13,017 12,967 10,145 916 5,836 — — 96,413 Doubtful — 53,752 — 11,660 — 7,217 — — 72,629 Loss — — — — — — — — — Total commercial real estate $ 861,867 $ 955,996 $ 937,389 $ 1,073,432 $ 1,007,004 $ 1,902,189 $ 101,587 $ 241 $ 6,839,705 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial construction Pass $ 288,979 $ 173,856 $ 130,245 $ 62,972 $ — $ 24,583 $ 32,077 $ 1,756 $ 714,468 Special Mention — 2,316 15,622 9,078 — — — — 27,016 Substandard 31,549 — 9,045 — — — — — 40,594 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction $ 320,528 $ 176,172 $ 154,912 $ 72,050 $ — $ 24,583 $ 32,077 $ 1,756 $ 782,078 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate Pass $ 197,985 $ 472,546 $ 607,105 $ 381,182 $ 173,047 $ 625,111 $ — $ — $ 2,456,976 Default — 209 636 373 742 1,664 — — 3,624 Total residential real estate $ 197,985 $ 472,755 $ 607,741 $ 381,555 $ 173,789 $ 626,775 $ — $ — $ 2,460,600 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity Pass $ 14,888 $ 24,020 $ 32,577 $ 49,290 $ 45,322 $ 127,029 $ 829,688 $ 16,229 $ 1,139,043 Default — — — — — 226 803 96 1,125 Total home equity $ 14,888 $ 24,020 $ 32,577 $ 49,290 $ 45,322 $ 127,255 $ 830,491 $ 16,325 $ 1,140,168 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ 241 $ 139 $ 380 Other consumer (3) Pass $ 651 $ 445 $ 151 $ 599 $ 211 $ 1,158 $ 36,157 $ — $ 39,372 Default — — — — — — — — — Total other consumer $ 651 $ 445 $ 151 $ 599 $ 211 $ 1,158 $ 36,157 $ — $ 39,372 Current-period gross write-offs $ 3,339 $ — $ — $ — $ — $ 19 $ 16 $ — $ 3,374 Total $ 2,161,170 $ 1,964,758 $ 2,118,947 $ 1,876,818 $ 1,407,685 $ 3,210,444 $ 1,749,116 $ 19,440 $ 14,508,378 Total current-period gross write-offs $ 3,387 $ 39 $ 35 $ 54 $ — $ 19 $ 6,674 $ 139 $ 10,347 (1) Amounts presented represent the amortized cost as of December 31, 2025 and December 31, 2024 of revolving loans that were converted to term loans during the twelve months then ended, respectively. (2) Loan origination dates in the tables above reflect the original date, or the date of a material modification of a previously originated loan, for both organic originations and acquired loans. 102 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (3) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances and the associated gross write-offs. For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. However, the Company does supplement performance data with current Fair Isaac Corporation (“FICO”) scores and Loan to Value (“LTV”) estimates. Current FICO data is purchased and appended to all consumer loans on a regular basis. In addition, automated valuation services and broker opinions of value are used to supplement original value data for the residential real estate and home equity portfolios, periodically. The following table shows the weighted average FICO scores and the weighted average combined LTV ratios at the dates indicated below: December 31 2025 December 31 2024 Residential portfolio FICO score (re-scored) (1) 754 755 LTV (re-valued) (2) 57.2 % 57.9 % Home equity portfolio FICO score (re-scored) (1) 769 769 LTV (re-valued) (2)(3) 45.3 % 43.9 % (1) The average FICO scores at December 31, 2025 are based upon rescores from December 2025, as available for previously originated loans, or origination score data for loans booked in December 2025. The average FICO scores at December 31, 2024 were based upon rescores from December 2024, as available for previously originated loans, or origination score data for loans booked in December 2024. (2) The combined LTV ratios for December 31, 2025 are based upon updated automated valuations as of November 2025, when available, and/or the most current valuation data available. The combined LTV ratios for December 31, 2024 were based upon updated automated valuations as of November 2024, when available, and/or the most current valuation data available as of such date. The updated automated valuations provide new information on loans that may be available since the previous valuation was obtained. If no new information is available, the valuation will default to the previously obtained data or most recent appraisal. (3) For home equity loans and lines in a subordinate lien, the LTV data represents a combined LTV, taking into account the senior lien data for loans and lines. Unfunded Commitments Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. At December 31, 2025 and 2024, the Company’s estimated reserve for unfunded commitments amounted to $ 1.8 million and $ 1.4 million, respectively. Asset Quality 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. Delinquent loans are managed by a team of collection specialists and the Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame. As a general rule, loans 90 days or more past due with respect to principal or interest are classified as non-accrual loans, or sooner if management considers such action to be prudent. However, loans that are 90 days or more past due may be kept on accruing status if the loan is well secured and/or in process of collection. 103 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following table shows information regarding non-accrual loans at the dates indicated: Non-accrual Balances December 31, 2025 December 31, 2024 With Allowance for Credit Losses Without Allowance for Credit Losses (1) Total With Allowance for Credit Losses Without Allowance for Credit Losses (1) Total (Dollars in thousands) Commercial and industrial $ 8,173 $ 987 $ 9,160 $ 2,802 $ 11,652 $ 14,454 Commercial real estate 26,674 23,841 50,515 67,126 7,217 74,343 Commercial construction 848 2,845 3,693 — — — Residential real estate 15,043 — 15,043 10,243 — 10,243 Home equity 5,102 — 5,102 2,479 — 2,479 Other consumer 44 — 44 10 — 10 Total non-accrual loans $ 55,884 $ 27,673 $ 83,557 $ 82,660 $ 18,869 $ 101,529 (1) Non-accrual balances reported above without an allowance for credit losses are attributable to loans evaluated on an individual basis where it was determined that there was minimal to no risk of loss due to sufficient underlying collateral values. It is the Company’s policy to reverse any accrued interest when a loan is put on non-accrual status, and, as such, the Company did not record any interest income on non-accrual loans for the years ended December 31, 2025, 2024, and 2023, except for instances where non-accrual loans were paid off in excess of the recorded book balance. Total accrued interest reversed against interest income when loans were put on non-accrual status amounted to $ 1.0 million, $ 676,000 , and $ 1.0 million for the years ended December 31, 2025, 2024, and 2023, respectively. The following table shows information regarding foreclosed residential real estate property at the dates indicated: December 31, 2025 December 31, 2024 (Dollars in thousands) Foreclosed residential real estate property held by the creditor $ — $ — Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure $ 4,102 $ 1,301 The following tables show the age analysis of past due financing receivables at the dates indicated: December 31, 2025 30-59 days 60-89 days 90 days or more Total Past Due Total Financing Receivables (2) Number of Loans Principal Balance Number of Loans Principal Balance Number of Loans Principal Balance Number of Loans Principal Balance Current (Dollars in thousands) Commercial and industrial 36 $ 7,765 18 $ 3,627 35 $ 5,776 89 $ 17,168 $ 4,594,621 $ 4,611,789 Commercial real estate 15 7,037 3 619 7 10,103 25 17,759 8,257,649 8,275,408 Commercial construction 1 804 1 488 2 3,693 4 4,985 1,394,208 1,399,193 Residential real estate 20 5,592 16 3,597 18 3,278 54 12,467 2,860,976 2,873,443 Home equity 20 3,247 9 456 24 3,629 53 7,332 1,290,330 1,297,662 Other consumer (1) 624 321 15 27 3 3 642 351 45,931 46,282 Total 716 $ 24,766 62 $ 8,814 89 $ 26,482 867 $ 60,062 $ 18,443,715 $ 18,503,777 104 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) December 31, 2024 30-59 days 60-89 days 90 days or more Total Past Due Total Financing Receivables (2) Number of Loans Principal Balance Number of Loans Principal Balance Number of Loans Principal Balance Number of Loans Principal Balance Current (Dollars in thousands) Commercial and industrial 125 $ 5,864 5 $ 29 8 $ 13,872 138 $ 19,765 $ 3,226,690 $ 3,246,455 Commercial real estate 4 33,860 — — 3 20,458 7 54,318 6,785,387 6,839,705 Commercial construction — — — — — — — — 782,078 782,078 Residential real estate 27 6,310 9 1,401 10 2,224 46 9,935 2,450,665 2,460,600 Home equity 9 1,046 11 764 10 1,126 30 2,936 1,137,232 1,140,168 Other consumer (1) 596 441 3 7 6 6 605 454 38,918 39,372 Total 761 $ 47,521 28 $ 2,201 37 $ 37,686 826 $ 87,408 $ 14,420,970 $ 14,508,378 (1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances. (2) The amount of net unamortized deferred fees/costs on originated loans included in the ending balance was $ 7.7 million and $ 6.1 million at December 31, 2025, and December 31, 2024, respectively. Net unamortized discounts on acquired loans included in the ending balance was $ 157.0 million and $ 8.1 million at December 31, 2025 and 2024, respectively. Loan Modifications The following tables present the period end amortized cost basis of loans modified to borrowers experiencing financial difficulty during the periods indicated, disaggregated by class of financing receivable, type of modification granted and the financial effect of the modifications: Year Ended December 31, 2025 Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect (Dollars in thousands) Term Extension Commercial and industrial $ 9,961 0.22 % Added a weighted-average contractual term of 1.5 years to the life of the loans Commercial real estate 13,045 0.16 % Added a weighted-average contractual term of 1.1 years to the life of the loans Residential real estate 1,002 0.03 % Added a weighted-average contractual term of 9.8 years to the life of the loans Home equity 248 0.02 % Added a weighted-average contractual term of 5.1 years to the life of the loans Total $ 24,256 Other Than Insignificant Payment Delay Commercial and industrial $ 413 0.01 % Modification was made with minimal financial effect Commercial real estate 29,139 0.35 % Modification was made with minimal financial effect Total $ 29,552 Combination - Term Extension and Interest Rate Reduction Commercial and industrial $ 85 — % Extended the contractual term of one loan by 5.0 years and reduced the contractual rate from 9.50 % to 6.69 % Commercial real estate 25,025 0.30 % Added a weighted-average contractual term of 3.7 years to the life of the loans and reduced the weighted-average interest rate from 7.85 % to 6.83 % 105 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Commercial construction 140 0.01 % Extended the contractual term of one loan by 1.0 year and reduced the contractual rate from 7.76 % to 5.51 % Home equity 1,283 0.10 % Added a weighted-average contractual term of 22.9 years to the life of the loans and reduced the weighted average interest rate from 7.25 % to 6.88 % Total $ 26,533 Combination - Term Extension and Other Than Insignificant Payment Delay Commercial real estate 22,248 0.27 % Modification on one loan included an interest rate reduction from 5.91% to 5.50% and payment deferral of 13 months Total $ 22,248 Total Outstanding Modified $ 102,589 Year Ended December 31, 2024 Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect (Dollars in thousands) Term Extension Commercial and industrial 12,983 0.40 % Added a weighted-average contractual term of 2.4 years to the life of the loans Commercial real estate 26,749 0.39 % Added a weighted-average contractual term of 2.0 years to the life of the loans Commercial construction 818 0.10 % Added a weighted-average contractual term of 6 months to the life of the loans Residential real estate 764 0.03 % Added a weighted-average contractual term of 7.9 years to the life of the loans Total $ 41,314 Interest Rate Reduction Commercial and industrial 36 — % Reduced contractual rate on one loan from 11.00 % to 8.20 % Home equity 63 0.01 % Reduced contractual rate on one loan from 7.99 % to 7.00 % Total $ 99 Other Than Insignificant Payment Delay Commercial and industrial $ 11,604 0.36 % Modification was made with minimal financial effect Commercial construction 10,672 1.36 % Modification was made with minimal financial effect Total $ 22,276 Combination - Term Extension and Interest Rate Reduction Commercial and industrial 194 0.01 % Added a weighted-average contractual term of 3.9 years to the life of the loans and reduced the weighted -average interest rate from 12.63 % to 6.87 % 106 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Residential real estate 397 0.02 % Extended the contractual term on one loan by 6.1 years and reduced the interest rate from 7.75 % to 6.30 % Home equity 69 0.01 % Extended the contractual term on one loan by 8.1 years and reduced the interest rate from 10.00 % to 6.80 % Total $ 660 Combination - Term Extension and Other Than Insignificant Payment Delay Commercial real estate 25,929 0.38 % The financial effects of term extensions are included in term extension table above, while the payment delay modifications had minimal financial effect Total $ 25,929 Total Outstanding Modified $ 90,278 Year Ended December 31, 2023 Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect (Dollars in thousands) Term Extension Commercial and industrial $ 11,010 0.36 % Added a weighted-average contractual term of 3 months to the life of the loans Commercial real estate 17,738 0.26 % Added a weighted-average contractual term of 2.6 years to the life of the loans Total $ 28,748 Combination - Term Extension and Interest Rate Reduction Commercial and industrial 123 — % Added a weighted-average contractual term of 5.0 years to the life of the loans and reduced the weighted -average interest rate from 10.00 % to 6.85 % Total $ 123 Combination - Term Extension and Other Than Insignificant Payment Delay Commercial and industrial $ 8,370 0.27 % The financial effects of term extensions are included in term extension table above, while the payment delay modifications had minimal financial effect Total $ 8,370 Total Outstanding Modified $ 37,241 The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. All material loans modified for borrowers experiencing financial difficulty during 2025 were performing in accordance with their modified terms as of December 31, 2025. At December 31, 2024 there was one $ 11.7 million commercial real estate loan modified during the year then ended that was past due by 90 days or more. The Company considers a loan to have defaulted when it reaches 90 days past due. During the twelve months ended December 31, 2025 there were no material loans modified to borrowers experiencing financial difficulty that had a subsequent 107 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) payment default. At December 31, 2024 there was one $ 11.7 million commercial real estate loan modified to a borrower experiencing financial difficulty that subsequently defaulted. At December 31, 2025, the Company had $ 14.5 million in additional commitments to lend to borrowers experiencing financial difficulty whose loans were modified during the previous twelve months, as compared to $ 8.6 million of such additional commitments at December 31, 2024 that were largely attributable to one borrower. Loan modifications to borrowers experiencing financial difficulty are evaluated on a collective basis with loans sharing similar risk characteristics in accordance with the CECL methodology. NOTE 5 BANK PREMISES AND EQUIPMENT Bank premises and equipment at December 31, were as follows: 2025 2024 Estimated Useful Life (Dollars in thousands) (In years) Cost Land $ 59,276 $ 52,831 n/a Bank premises 125,154 104,899 5 - 40 Leasehold improvements 63,648 55,243 1 - 15 Furniture and equipment 124,694 112,600 1 - 10 Leased equipment 32,654 32,654 5 Total cost 405,426 358,227 Accumulated depreciation ( 187,236 ) ( 164,907 ) Net bank premises and equipment $ 218,190 $ 193,320 Depreciation expense related to bank premises and equipment was $ 22.5 million, $ 19.9 million, and $ 18.9 million for the years ended December 31, 2025, 2024 and 2023, respectively, and is primarily reflected in occupancy and equipment expenses. The Company held leased equipment with a total cost of $ 32.7 million at both December 31, 2025 and 2024. The leased equipment is subject to a master lease agreement entered into during 2021 with a third-party lessee and the Company assumes the role of lessor in the transaction, which is deemed an operating lease for accounting purposes. The Company recognized rental income of $ 6.4 million for each of the years ended December 31, 2025, 2024, and 2023 . NOTE 6 GOODWILL AND OTHER INTANGIBLE ASSETS The following table sets forth the carrying value of goodwill and other intangible assets, net of accumulated amortization, at December 31: 2025 2024 (Dollars in thousands) Balances not subject to amortization Goodwill $ 1,090,610 $ 985,072 Balances subject to amortization Core deposit intangibles 119,074 10,689 Other intangible assets 14,502 1,595 Total other intangible assets 133,576 12,284 Total goodwill and other intangible assets $ 1,224,186 $ 997,356 108 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The changes in the carrying value of goodwill for the periods indicated were as follows: 2025 2024 2023 (Dollars in thousands) Balance at beginning of year $ 985,072 $ 985,072 $ 985,072 Acquisitions 105,538 — — Balance at end of year $ 1,090,610 $ 985,072 985,072 The gross carrying amount and accumulated amortization of other intangible assets were as follows at the dates indicated: December 31 2025 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Dollars in thousands) Core deposit intangibles $ 167,263 $ ( 48,189 ) $ 119,074 $ 44,160 $ ( 33,471 ) $ 10,689 Other intangible assets 21,200 ( 6,698 ) 14,502 6,100 ( 4,505 ) 1,595 Total $ 188,463 $ ( 54,887 ) $ 133,576 $ 50,260 $ ( 37,976 ) $ 12,284 The following table sets forth the estimated annual amortization expense of intangible assets for each of the next five years: Year Amount (Dollars in thousands) 2026 $ 26,091 2027 $ 22,660 2028 $ 19,272 2029 $ 16,367 2030 $ 13,841 The original weighted average amortization period for intangible assets is 9.9 years. 109 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 7 DEPOSITS The following is a summary of the scheduled maturities of time deposits at December 31: 2025 2024 (Dollars in thousands) 1 year or less $ 3,200,367 97.9 % $ 2,680,063 97.5 % Over 1 year to 2 years 44,973 1.4 % 43,773 1.6 % Over 2 years to 3 years 9,192 0.3 % 11,576 0.4 % Over 3 years to 4 years 9,396 0.3 % 4,215 0.2 % Over 4 years to 5 years 4,292 0.1 % 7,719 0.3 % Total (1) $ 3,268,220 100.0 % $ 2,747,346 100.0 % (1) The total amount of time deposit accounts with balances equal to or greater than $250,000 at December 31, 2025 and 2024 was $ 1.1 billion and $ 774.9 million, respectively. At December 31, 2025 and 2024, the Company had a balance of $ 4.1 million and $ 4.7 million, respectively in demand deposit overdrafts. Overdrafts are included in other consumer loans in the Consolidated Balance Sheets. The Company had pledged assets as collateral covering certain deposits in the amount of $ 1.4 billion and $ 1.1 billion at December 31, 2025 and 2024, respectively. The Bank’s deposit accounts are insured to the maximum extent permitted by law by the Deposit Insurance Fund which is administered by the FDIC. The FDIC offers insurance coverage on deposits up to the federally insured limit of $250,000. NOTE 8 BORROWINGS Federal Home Loan Bank and Other Borrowings The table below shows the outstanding borrowings as well as the contractual rates and effective rates, net of any swap impact, as applicable, at the dates indicated: December 31, 2025 December 31, 2024 Total Outstanding Weighted Average Contractual Rate Effective Rate, Net of Swap Impact Total Outstanding Weighted Average Contractual Rate Effective Rate, Net of Swap Impact (Dollars in thousands) Overnight borrowings $ — — % n/a $ 38,000 4.53 % n/a 1-Month term 400,000 3.90 % 3.71 % 400,000 4.63 % 3.74 % Stated maturity 2025 — — % n/a 200,000 4.81 % n/a Other FHLB Borrowings 5,145 1.02 % n/a 514 1.40 % n/a Total FHLB Borrowings $ 405,145 $ 638,514 Other borrowings 11,404 2.93 % n/a — n/a n/a Total FHLB and other borrowings $ 416,549 $ 638,514 At December 31, 2025 and 2024, the Company had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB’s collateral pledging program. The Company’s FHLB advances are collateralized by a blanket pledge agreement on the Bank’s FHLB stock, certain qualified investment securities, deposits at the FHLB, residential mortgages, and by certain commercial real estate loans held in the Bank’s portfolio. The carrying value of loans and securities pledged as collateral for these borrowings totaled $ 4.5 billion and $ 3.8 billion at December 31, 2025 and 2024, respectively, resulting in total borrowing capacity with the FHLB of $ 3.2 billion and $ 2.6 billion, of which $ 2.8 billion and $ 2.0 billion remained available as of December 31, 2025, and 2024, respectively. 110 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Line of Credit During the fourth quarter of 2025, the Company entered into a multi-year advance term loan credit facility for an aggregate principal amount of up to $ 125.0 million, which includes a one-year advance period, after which any amounts outstanding shall convert to a two-year term loan. The line of credit bears interest at a rate of one-month SOFR plus 1.70 % (combined 5.57 % at December 31, 2025) and matures December 31, 2028. As of December 31, 2025 the Company had advanced $ 50.0 million on the line of credit and recorded $ 116,000 of related interest expense during the year then ended. Long-Term Debt The following table summarizes long-term debt, net of debt issuances costs, at the dates indicated: December 31 2025 2024 (Dollars in thousands) Junior subordinated debentures Capital Trust V $ 51,521 $ 51,519 Central Trust I 5,258 5,258 Central Trust II 6,083 6,083 Subordinated debentures 296,483 — Total long-term debt $ 359,345 $ 62,860 The interest expense on long-term debt was $ 21.3 million, $ 5.0 million, and $ 6.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. Junior Subordinated Debentures : The junior subordinated debentures are issued to various trust subsidiaries of the Company. These trusts were formed for the purpose of issuing trust preferred securities, which were then sold in a private placement offering. The proceeds from the sale of the securities and the issuance of common stock by these trusts were invested in these Junior Subordinated Debentures issued by the Company. These trust preferred securities bear interest at a rate of three-month SOFR plus a SOFR index spread (combined 3.98 % at December 31, 2025), plus an applicable credit spread. Information relating to these trust preferred securities at December 31, 2025 is as follows: Trust Principal Amount Maturity Date Credit Spread All-in Rate (Dollars in thousands) Capital Trust V $ 50,000 3/15/2037 1.48 % 5.46 % Central Trust I (1) $ 5,100 9/16/2034 2.44 % 6.42 % Central Trust II (1) $ 5,900 3/15/2037 1.65 % 5.63 % (1) These securities noted above are callable quarterly until maturity. Subordinated Debentures : On March 25, 2025, the Company completed the issuance of $ 300.0 million of fixed-to-floating rate subordinated notes (the “Notes”). The Notes mature on April 1, 2035, however, with regulatory approval, the Company may redeem the Notes without penalty at any scheduled payment date on or after April 1, 2030. The Notes carry interest at a fixed rate of 7.25 % through April 1, 2030, after which the Notes convert to a variable rate. The Company has used, and intends to use, the net proceeds for general corporate purposes, including the redemption of $ 60.0 million of Enterprise’s fixed-to-floating rate subordinated notes due July 15, 2030, which the Company redeemed in full on July 15, 2025, subsequent to consummating the merger with Enterprise on July 1, 2025. At December 31, 2025, the Company held no long-term debt scheduled to mature within the next 5 years. 111 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 9 STOCK BASED COMPENSATION The Company’s stock based plans include the 2018 Non-Employee Director St ock Plan (the “2018 Plan”) and the 2023 Omnibus Incentive Plan (the “2023 Plan”), which have been approved by the Company’s Board of Directors and shareholders. Shares from the 2018 Plan may be awarded in the form of stock options or restricted stock, and shares from the 2023 Plan may be awarded in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, or other stock-based awards from its pool of authorized but unissued shares. Upon adoption of the 2023 Plan on May 18, 2023, the Second Amended and Restated 2005 Employee Stock Plan (the “2005 Plan”) was terminated in its entirety and the Company no longer grants awards under the 2005 Plan. However, awards outstanding under the 2005 Plan will continue to remain outstanding in accordance with their terms. The following table presents the amount of cumulatively granted stock option awards and restricted stock awards, net of forfeitures and expirations, granted through December 31, 2025: Authorized Awards Cumulatively Granted, Net of Forfeitures and Expirations Total Authorized but Unissued Stock Option Awards Restricted Stock Awards 2005 Plan 1,650,000 387,258 1,034,517 1,421,775 n/a 2018 Plan 300,000 — 77,115 77,115 222,885 2023 Plan 1,126,886 — 330,199 330,199 796,687 The following table presents the pre-tax expense associated with stock option and restricted stock awards and the related tax benefits recognized for the periods presented: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Stock based compensation expense Restricted stock awards (1) $ 8,025 $ 5,923 $ 5,777 Directors’ fee expense (2) Restricted stock awards 960 600 600 Total stock based award expense $ 8,985 $ 6,523 $ 6,377 Related tax benefits recognized in earnings $ 2,459 $ 1,834 $ 1,793 (1) Inclusive of compensation expense associated with time-vested and performance-based restricted stock awards. (2) Expense related to awards issued to directors is recognized as directors’ fees within other non-interest expense. The Company has standard form agreements used for stock option and restricted stock awards. The standard form agreements used for the Chief Executive Officer and all other Executive Officers have previously been disclosed in Securities and Exchange Commission filings and generally provide that: (1) any unvested options or unvested restricted stock vest upon a Change of Control; and, that (2) any stock options which vest pursuant to a Change of Control, which is an event described in Section 280G of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), will be cashed out at the difference between the acquisition price and the exercise price of the stock option. 112 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Stock Options The fair value of each stock option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions used for grants under the identified plans: • Expected volatility is based on the standard deviation of the historical volatility of the weekly adjusted closing price of the Company’s shares for a period equivalent to the expected life of the option. • Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, historical exercise/forfeiture behavior, and the vesting period, if any. • Expected dividend yield is an annualized rate calculated using the most recent dividend payment at time of grant and the Company’s average trailing twelve-month daily closing stock price. • The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. • Forfeitures on stock compensation are recognized when they occur. For the years ended December 31, 2025, 2024 and 2023, there were no awards granted by the Company of non-qualified options to purchase shares of common stock. Under all of the Company’s stock based plans, the option exercise price is based upon the average of the high and low trading value of the stock on the date of grant. Stock option awards granted to date under all plans expire at various dates through 2028. The following table presents relevant information relating to the Company’s stock options for the periods presented: Years Ended December 31 2025 2024 2023 (Dollars in thousands, except per share data) Fair value of stock options vested based on grant date fair value $ — $ — $ — Intrinsic value of stock options exercised $ 22 $ 43 $ 139 Cash received from stock option exercises $ 80 $ 80 $ 257 Tax benefit realized on stock option exercises $ 6 $ 12 $ 39 The following table presents a summary of stock option award activity for the year ended December 31, 2025: Outstanding Stock Option Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (1) (Dollars in thousands, except per share data) Balance at January 1, 2025 11,667 $ 67.35 Granted — — Exercised ( 1,667 ) 48.10 Balance of options outstanding, vested and exercisable at December 31, 2025 10,000 (2) $ 70.56 2.05 years $ 32 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the average of the high price and low price at which the Company’s common stock traded on December 31, 2025 of $ 73.75 , which would have been received by in-the-money option holders had they all exercised their options as of that date. (2) Represents vested stock options outstanding to Directors. At December 31, 2025, all outstanding stock option awards are vested and there is no unrecognized compensation expense related to those options. 113 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Restricted Stock The Company grants both time-vested restricted stock awards as well as performance-based restricted stock awards. The fair value of the restricted stock awards is based upon the average of the high and low prices at which the Company’s common stock traded on the date of grant. The holders of time-vested restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of performance-based restricted stock awards do not participate in the rewards of stock ownership of the Company until vested. The holders of all restricted stock awards are not required to pay any consideration to the Company for the awards. During the years ended December 31, 2025, 2024, and 2023 the Company made the following restricted stock award grants: Shares Granted Plan Fair Value Vesting Period Time-vested 2025 2/15/2025 1,090 2023 $ 69.09 Ratably over 3 years from grant date 2/20/2025 113,000 2023 $ 68.83 Ratably over 3 years from grant date 3/15/2025 2,600 2023 $ 62.84 Ratably over 3 years from February 20, 2025 4/15/2025 1,360 2023 $ 55.25 Ratably over 3 years from grant date 5/15/2025 1,540 2023 $ 65.05 Ratably over 3 years from grant date 5/20/2025 12,194 2018 $ 64.03 Immediately upon grant date 6/15/2025 3,380 2023 $ 66.67 Ratably over 3 years from grant date 7/1/2025 2,814 2018 $ 63.67 Immediately upon grant date 7/15/2025 7,620 2023 $ 65.63 At the end of 5 years from grant date 7/15/2025 25,220 2023 $ 65.63 Ratably over 3 years from grant date 9/15/2025 1,430 2023 $ 69.74 Ratably over 3 years from grant date 2024 2/22/2024 106,200 2023 $ 52.73 Ratably over 3 years from grant date 4/15/2024 1,650 2023 $ 48.49 Ratably over 3 years from grant date 5/21/2024 11,340 2018 $ 52.94 Immediately upon grant date 8/15/2024 3,703 2023 $ 59.42 Ratably over 3 years from grant date 10/15/2024 1,120 2023 $ 62.32 Ratably over 3 years from grant date 12/15/2024 1,060 2023 $ 70.89 Ratably over 3 years from grant date 2023 2/16/2023 77,525 2005 $ 80.65 Ratably over 3 years from grant date 2/16/2023 12,309 2005 $ 80.65 Ratably over 5 years, on each anniversary of February 6, 2023 start date 5/15/2023 1,080 2005 $ 46.21 Ratably over 3 years from grant date 5/23/2023 12,410 2018 $ 48.35 Immediately upon grant date 5/30/2023 890 2023 $ 45.09 Ratably over 3 years from grant date 9/15/2023 5,270 2023 $ 51.44 Ratably over 5 years from grant date 9/15/2023 3,020 2023 $ 51.44 Ratably over 3 years from grant date 12/15/2023 460 2023 $ 66.24 Ratably over 3 years from grant date Performance-based 2/20/2025 43,100 2023 $ 68.83 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2028. 2/22/2024 41,200 2023 $ 52.73 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2027. 2/16/2023 32,200 2005 $ 80.65 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2026. 114 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following table presents the fair value of restricted stock awards that vested during the periods presented: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Fair value of restricted stock awards upon vesting $ 7,045 $ 4,158 $ 5,003 The following table presents a summary of restricted stock award activity for the year ended December 31, 2025: Outstanding Restricted Stock Awards Weighted Average Grant Price ($) Balance at January 1, 2025 277,292 $ 65.88 Granted 217,628 67.76 Vested/released ( 103,829 ) 68.49 Forfeited ( 35,673 ) 67.87 Balance at December 31, 2025 355,418 $ 66.08 Unrecognized compensation cost (in thousands) $ 11,933 Weighted average remaining recognition period (years) 2.02 years NOTE 10 DERIVATIVES AND HEDGING ACTIVITIES The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally to manage the Company’s interest rate risk. Additionally, the Company enters into interest rate derivatives, foreign exchange contracts and risk participation agreements to accommodate the business requirements of its customers (“customer related positions”). The Company minimizes the market and liquidity risks of customer related positions by entering into similar offsetting positions with broker-dealers. Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies as a hedge for accounting purposes, and further, by the type of hedging relationship. The Company does not enter into proprietary trading positions for any derivatives. The Company is subject to over-the-counter derivative clearing requirements which require certain derivatives to be cleared through central clearing houses. Accordingly, the Company clears certain derivative transactions through the Chicago Mercantile Exchange Clearing House (“CME”). The CME requires the Company to post initial and variation margin to mitigate the risk of non-payment, the latter of which is received or paid daily based on the net asset or liability position of the contracts. Interest Rate Positions The Company may utilize various interest rate derivatives as hedging instruments against interest rate risk associated with the Company’s borrowings and loan portfolios. An interest rate derivative is an agreement whereby 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 of time, from a second party. The amounts relating to the notional principal amount are not actually exchanged. 115 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following tables reflect information about the Company’s derivative positions at the dates indicated below for interest rate swaps which qualify as cash flow hedges for accounting purposes: December 31, 2025 Weighted Average Rate Notional Amount Weighted Average Maturity Current Rate Received Pay Fixed Swap Rate Fair Value (in thousands) (in years) (in thousands) Interest rate swaps on borrowings $ 400,000 0.58 3.87 % 3.67 % $ ( 209 ) Current Rate Paid Receive Fixed Swap Rate Interest rate swaps on loans 550,000 1.21 3.89 % 2.73 % ( 7,903 ) Current Rate Paid Receive Fixed Swap Rate Cap - Floor Interest rate collars on loans 150,000 0.94 4.05 % 3.94 % - 2.33 % ( 140 ) Total $ 1,100,000 $ ( 8,252 ) December 31, 2024 Weighted Average Rate Notional Amount Average Maturity Current Rate Received Pay Fixed Swap Rate Fair Value (in thousands) (in years) (in thousands) Interest rate swaps on borrowings $ 400,000 1.58 4.56 % 3.67 % $ 2,724 Current Rate Paid Receive Fixed Swap Rate Interest rate swaps on loans 750,000 1.77 4.57 % 2.78 % ( 21,205 ) Current Rate Paid Receive Fixed Swap Rate Cap - Floor Interest rate collars on loans 150,000 1.94 4.70 % 3.94 % - 2.33 % ( 1,529 ) Total $ 1,300,000 $ ( 20,010 ) The maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions related to the payment of variable interest on existing financial instruments is 3.2 years. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company expects approximately $ 4.0 million (pre-tax) to be reclassified as a decrease to net interest income, from other comprehensive income related to the Company’s cash flow hedges in the twelve months following December 31, 2025. This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve at December 31, 2025. The Company had no fair value hedges for the years ended December 31, 2025 and 2024. 116 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Customer Related Positions Loan level derivatives, primarily interest rate swaps, offered to commercial borrowers through the Company’s loan level derivative program do not qualify as hedges for accounting purposes. The Company believes that its exposure to commercial customer derivatives is limited because these contracts are simultaneously matched at inception with an offsetting dealer transaction. Derivatives with dealer counterparties are then either cleared through a clearinghouse or settled directly with a single counterparty. The commercial customer derivative program allows the Company to retain variable-rate commercial loans while allowing the customer to synthetically fix the loan rate by entering into a variable-to-fixed interest rate swap. The amounts relating to the notional principal amount are not actually exchanged. Foreign exchange contracts offered to commercial borrowers through the Company’s derivative program do not qualify as hedges for accounting purposes. The Company acts as a seller and buyer of foreign exchange contracts to accommodate its customers. To mitigate the market and liquidity risk associated with these derivatives, the Company enters into similar offsetting positions. The amounts relating to the notional principal amount are exchanged. The Company has entered into risk participation agreements with other dealer banks in commercial loan agreements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. These derivatives are not designated as hedges and, therefore, changes in fair value are recognized in earnings. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower for a fee received from the other bank. 117 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following tables reflect the Company’s customer related derivative positions at the dates indicated below for those derivatives not designated as hedging: Number of Positions (1) Notional Amount Maturing Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value December 31, 2025 (Dollars in thousands) Loan level swaps Receive fixed, pay variable 259 $ 151,688 $ 261,876 $ 224,449 $ 192,734 $ 878,490 $ 1,709,237 $ ( 41,517 ) Pay fixed, receive variable 259 151,688 261,876 224,449 192,734 878,490 1,709,237 41,503 Foreign exchange contracts Buys foreign currency, sells U.S. currency 47 95,672 — — — — 95,672 1,385 Buys U.S. currency, sells foreign currency 47 95,672 — — — — 95,672 ( 1,328 ) Risk participation agreements Participation out 19 — 26,865 28,643 33,850 79,953 169,311 59 Participation in 15 — 22,314 20,291 — 61,994 104,599 ( 44 ) Number of Positions (1) Notional Amount Maturing Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value December 31, 2024 (Dollars in thousands) Loan level swaps Receive fixed, pay variable 276 $ 261,222 $ 225,043 $ 252,911 $ 208,762 $ 869,095 $ 1,817,033 $ ( 92,913 ) Pay fixed, receive variable 276 261,222 225,043 252,911 208,762 869,095 1,817,033 92,875 Foreign exchange contracts Buys foreign currency, sells U.S. currency 34 112,156 12,120 — — — 124,276 ( 5,363 ) Buys U.S. currency, sells foreign currency 34 112,156 12,120 — — — 124,276 5,424 Risk participation agreements Participation out 18 23,672 — 27,140 21,256 91,053 163,121 56 Participation in 12 — 13,016 22,904 15,334 — 51,254 ( 12 ) (1) The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements. Mortgage Derivatives The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that loans may be sold subsequently in the secondary market. Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. These commitments are recognized at fair value on the Consolidated Balance Sheet in other assets and other liabilities with changes in their fair values recorded within mortgage banking income. In addition, the Company has elected the fair value option to carry loans held for sale at fair value. The change in fair value of loans held for sale is recorded in current period earnings as a component of mortgage banking income in accordance with the Company’s fair value election. The fair value of loans held for sale increased by $ 457,000 , decreased by $ 20,000 and increased by $ 97,000 for the years ended December 31, 2025, 2024 and 2023, respectively. These amounts were offset in earnings by the change in the fair value of mortgage derivatives. 118 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Outstanding loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might change from inception of the rate lock to funding of the loan due to changes in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. To protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Included in the mandatory delivery forward commitments are To Be Announced securities (“TBAs”). Certain assumptions, including pull through rates and rate lock periods, are used in managing the existing and future hedges. The accuracy of underlying assumptions will impact the ultimate effectiveness of any hedging strategies. With mandatory delivery contracts, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor/counterparty to compensate the investor for the shortfall. Generally, the Company makes this type of commitment once mortgage loans have been funded and are held for sale, in order to minimize the risk of failure to deliver the requisite volume of loans to the investor and paying pair-off fees as a result. The Company also sells TBA securities to offset potential changes in the fair value of derivative loan commitments. Generally, the Company sells TBA securities by entering into derivative loan commitments for settlement in 30 to 90 days. The Company expects that mandatory delivery contracts, including TBA securities, will experience changes in fair value opposite to the changes in the fair value of derivative loan commitments. With best effort contracts, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, best efforts cash contracts have no pair off risk regardless of market movement. The price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these best efforts forward loan sale commitments will experience a net neutral shift in fair value with related derivative loan commitments. The aggregate amount of net realized gains on sales of mortgage loans included within mortgage banking income was $ 5.1 million, $ 4.1 million and $ 1.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. Balance Sheet Offsetting The Company does not offset fair value amounts recognized for derivative instruments. The Company does net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary. A daily settlement occurs through the CME for changes in the fair value of centrally cleared derivatives. Not all of the derivatives are required to be cleared through the daily clearing agent. As a result, the total fair values of loan level derivative assets and liabilities recognized on the Company’s financial statements are not equal and offsetting. 119 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the balance sheet at the dates indicated: Asset Derivatives (1) Liability Derivatives (2) Fair Value at Fair Value at Fair Value at Fair Value at December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 (Dollars in thousands) Derivatives designated as hedges Interest rate derivatives $ 77 (3) $ 2,724 (3) $ 8,329 (4) $ 22,734 (4) Derivatives not designated as hedges Customer Related Positions: Loan level derivatives 57,790 (3) 95,606 (3) 57,804 (4) 95,644 (4) Foreign exchange contracts 1,814 5,424 1,757 5,363 Risk participation agreements 59 56 44 12 Mortgage Derivatives Interest rate lock commitments 355 77 — 2 Forward sale loan commitments 35 13 — — Forward sale hedge commitments — 58 31 — Total derivatives not designated as hedges 60,053 101,234 59,636 101,021 Total 60,130 103,958 67,965 123,755 Netting Adjustments (5) ( 25,765 ) ( 46,664 ) 8,135 21,078 Net Derivatives on the Balance Sheet 34,365 57,294 59,830 102,677 Financial instruments (6) 5,164 2,894 5,164 2,894 Cash collateral pledged (received) ( 12,420 ) ( 33,283 ) 3,130 — Net Derivative Amounts $ 16,781 $ 21,117 $ 51,536 $ 99,783 (1) All asset derivatives are located in other assets on the balance sheet . (2) All liability derivatives are located in other liabilities on the balance sheet . (3) A pproximately $ 9,000 of accrued interest payable is included in the fair value of interest rate derivative assets and approximately $ 1.2 million of accrued interest receivable is included in the fair value of loan level derivative assets at December 31, 2025, in comparison to accrued interest receivable of approximately $ 195,000 and $ 2.2 million, included in the fair value of interest rate and loan level derivative assets, respectively, at December 31, 2024. (4) Approximately $ 363,000 and $ 1.2 million of accrued interest payable is included in the fair value of interest rate and loan level derivative liabilities, respectively, at December 31, 2025, in comparison to accrued interest payable of approximately $ 825,000 and $ 2.2 million, respectively, at December 31, 2024. (5) Netting adjustments represent the amounts recorded to convert derivative assets and liabilities cleared through CME from a gross basis to a net basis, inclusive of the variation margin payments, in accordance with applicable accounting guidance. (6) Reflects offsetting derivative positions with the same counterparty that are not netted on the balance sheet. 120 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The table below presents the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) and current earnings for the periods indicated: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Derivatives designated as hedges Gain in OCI on derivatives (effective portion), net of tax $ 8,353 $ 6,713 $ 16,055 Loss reclassified from OCI into interest income or interest expense (effective portion) $ ( 9,326 ) $ ( 19,372 ) $ ( 27,414 ) Derivatives not designated as hedges Changes in fair value of customer related positions Other income $ 140 $ 231 $ 517 Other expenses ( 125 ) ( 212 ) ( 679 ) Changes in fair value of mortgage derivatives Mortgage banking income 213 ( 38 ) 112 Total $ 228 $ ( 19 ) $ ( 50 ) The Company’s derivative agreements with institutional counterparties contain various credit-risk related contingent provisions, such as requiring the Company to maintain a well-capitalized capital position. If the Company fails to meet these conditions, the counterparties could request the Company make immediate payment or demand that the Company provide immediate and ongoing full collateralization on derivative positions in net liability positions. All derivative instruments with credit-risk related contingent features were in a net asset position at December 31, 2025 and December 31, 2024. By using derivatives, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty. The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s Board of Directors. In addition, certain derivative contracts executed bilaterally with a dealer counterparty in the over-the-counter market are cleared through a clearinghouse, whereby the clearinghouse becomes the counterparty to the transaction. As such, management believes the risk of incurring credit losses on derivative contracts with those counterparties is remote. The Company’s exposure relating to institutional counterparties was $ 49.7 million and $ 97.0 million at December 31, 2025 and 2024, respectively. The Company’s exposure relating to customer counterparties was approximately $ 8.1 million and $ 1.4 million at December 31, 2025 and 2024, respectively. Credit exposure may be reduced by the value of collateral pledged by the counterparty. 121 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 11 INCOME TAXES The provision for income taxes is comprised of the following components: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Current expense Federal $ 46,155 $ 47,830 $ 51,771 State 14,176 17,816 21,123 Total current expense 60,331 65,646 72,894 Deferred expense (benefit) Federal ( 1,748 ) ( 7,671 ) 1,336 State ( 1,535 ) ( 2,929 ) 1,402 Total deferred expense (benefit) ( 3,283 ) ( 10,600 ) 2,738 Total expense $ 57,048 $ 55,046 $ 75,632 The difference between the statutory federal income tax rate and the effective income tax rate reported for the last three years is detailed below: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Computed statutory federal income tax provision $ 55,056 21.00 % $ 51,897 21.00 % $ 66,178 21.00 % State and local income tax, net of federal income tax benefit 10,420 3.97 % 12,143 4.91 % 17,992 5.71 % Tax Credits Low income housing tax credits ( 3,594 ) ( 1.37 ) % ( 4,496 ) ( 1.82 ) % ( 3,740 ) ( 1.19 ) % Other ( 27 ) ( 0.01 ) % — — % ( 76 ) ( 0.02 ) % Nontaxable or nondeductible items Tax-exempt interest, net of disallowance ( 3,716 ) ( 1.42 ) % ( 3,653 ) ( 1.48 ) % ( 3,508 ) ( 1.11 ) % Other ( 1,716 ) ( 0.65 ) % ( 1,629 ) ( 0.66 ) % ( 2,260 ) ( 0.72 ) % Changes in unrecognized tax benefits ( 942 ) ( 0.36 ) % ( 1,215 ) ( 0.49 ) % ( 655 ) ( 0.21 ) % Other adjustments 1,567 0.60 % 1,999 0.81 % 1,701 0.54 % Effective income tax rate $ 57,048 21.76 % $ 55,046 22.27 % $ 75,632 24.00 % 122 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The tax-effected components of the net deferred tax asset at December 31 of the years presented were as follows: 2025 2024 (Dollars in thousands) Deferred tax assets Allowance for credit losses $ 51,939 $ 46,372 Accrued expenses not deducted for tax purposes 16,517 17,720 Basis difference on loans 42,703 1,612 Basis differences on acquired securities 15,852 — Derivatives fair value adjustment 2,164 5,304 Employee and director equity compensation 5,268 1,930 Foreign Tax Credit Carryforward 89 89 Net operating loss carry-forward 1,002 627 Net unrealized loss on securities available for sale 11,607 23,795 Operating lease liability 20,707 15,471 State purchased credits 15,638 21,448 Other 541 621 Gross deferred tax assets $ 184,027 $ 134,989 Valuation allowance (1) ( 485 ) ( 531 ) Total deferred tax assets net of valuation allowance $ 183,542 $ 134,458 Deferred tax liabilities Core deposit and other intangibles $ 34,622 $ 1,453 Deferred loan fees, net 11,226 8,080 Fixed assets 9,741 14,747 Goodwill 11,690 11,476 Prepaid pension 3,137 7,260 Right of use asset 20,107 14,921 Other 1,592 1,868 Gross deferred tax liabilities $ 92,115 $ 59,805 Total net deferred tax asset $ 91,427 $ 74,653 (1) Deferred tax assets are to be reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of the tax benefit depends upon the existence of sufficient taxable income in future periods. 123 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Uncertainty in Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction as well as in various states. The Company is subject to U.S. federal, state and local income tax examinations by tax authorities for the 2022 through 2024 tax years including any related income tax filings from its recent acquisitions. The Company believes that its income tax returns have been filed based upon applicable statutes, regulations and case law in effect at the time of filing, however, the Internal Revenue Service (“IRS”) and /or state jurisdictions could disagree with the Company’s interpretation upon examination. The Company accounts for uncertainties in income taxes by providing a tax reserve for certain positions. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits: (Dollars in thousands) Balance at December 31, 2022 $ 2,720 Reduction of tax positions for prior years ( 959 ) Balance at December 31, 2023 $ 1,761 Reduction of tax positions for prior years ( 999 ) Balance at December 31, 2024 $ 762 Reduction of tax positions for prior years ( 762 ) Balance at December 31, 2025 $ — Increases to the Company’s unrealized tax positions occur as a result of accruing for any unrecognized tax benefit, as well as the accrual of interest and penalties related to prior year positions. Decreases in the Company’s unrealized tax positions occur as a result of the statute of limitation lapsing on prior year positions and/or settlements relating to outstanding positions. At December 31, 2025, there were no indirect federal benefit of state tax positions, included in the balances noted in the table above, and there were approximately $ 160,000 , and $ 343,000 at December 31, 2024, and 2023, respectively. The following table summarizes the changes in accrued interest and penalties related to uncertain tax positions for the periods presented: As of December 31 2025 2024 2023 (Dollars in thousands) Beginning Balance $ 383 $ 689 $ 585 Expense (benefit) recognized in provision for income taxes ( 314 ) ( 306 ) 104 Ending Balance $ 69 $ 383 $ 689 124 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following table presents cash paid, net of refunds, for federal, state, and foreign income taxes for the periods presented: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Cash Paid for Federal Income Taxes $ 26,000 $ 38,000 $ 33,081 Cash Paid for State Income Taxes Massachusetts (1) 6,896 10,710 10,045 Other (2) 1,887 2,369 580 State subtotal 8,783 13,079 10,625 Total Cash Paid for Income Taxes $ 34,783 $ 51,079 $ 43,706 (1) Amounts shown above exclude $ 7.9 million, $ 8.2 million, and $ 7.9 million in purchased Massachusetts state credits for the years ended December 31, 2025, 2024, and 2023, respectively. These credits represent pre-payments of Massachusetts state taxes. (2) The amount of income taxes paid during the year does not meet the 5 % disaggregation threshold . 125 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 12 LOW INCOME HOUSING PROJECT INVESTMENTS The Company has invested in low income housing projects that generate Low Income Housing Tax Credits (“LIHTC”) which provide the Company with tax credits and operating loss tax benefits over a minimum of 15 years. None of the original investment is expected to be repaid. The following table presents certain information related to the Company’s investments in low income housing projects as of December 31 of the years presented: 2025 2024 2023 (Dollars in thousands) Original investment value $ 342,336 $ 275,085 $ 229,015 Current recorded investment 230,701 184,373 156,984 Unfunded liability obligation 100,277 71,748 58,731 Tax credits and benefits earned during the year 24,504 23,185 18,101 Amortization of investments during the year 20,957 18,676 14,360 Net income tax benefit recognized during the year 3,547 4,509 3,740 NOTE 13 EMPLOYEE BENEFIT PLANS Pension Plans The Company maintains a multiemployer defined benefit pension plan (the “Pension Plan”) administered by Pentegra Retirement Services (the “Fund” or “Pentegra Defined Benefit Plan for Financial Institutions”). The Fund does not segregate the assets or liabilities of all participating employers and accordingly, disclosure of plan assets, accumulated vested and non-vested benefits is not possible. Effective July 1, 2006, the Company froze the defined benefit plan by eliminating all future benefit accruals. In conjunction with the acquisition of Peoples Federal Bancshares, Inc., the parent of Peoples Federal Savings Bank (“Peoples”) in 2015, the Company acquired the Peoples Federal Defined Benefit Pension Plan (“Peoples Plan”). The Peoples Plan was frozen at the date of acquisition and maintained in the same manner as the Pension Plan. The Peoples Plan was also administered by Pentegra Retirement Services under the same Fund as the Pension Plan. Effective July 1, 2024, the Company withdrew The Peoples Bank from the Pension Plan and adopted The Peoples Bank Defined Benefit Pension Plan (the “Peoples DBP Plan”) as a qualified successor plan, which was fully funded. The Company’s Board of Directors voted to terminate the Peoples DBP Plan in 2025. As of December 31, 2025, the Peoples DBP Plan was terminated and all obligations due under the terms of the plan were settled. The Company’s participation in the Pension Plan and the Peoples Plan (the “Pension Plans”) for the annual period ended December 31, 2025, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The funding status of the Pension Plans is determined on the basis of the financial statements provided by the Fund using total plan assets and accumulated benefit obligation. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. The “Expiration Date of Collective-Bargaining Agreement” column lists the expiration dates of any collective-bargaining agreement(s) to which the Pension Plans are subject. Financial information for the Fund is made available through the public Form 5500 which is available by April 15 th of the year following the plan year end. Funding Status of Pension Plan FIP/RP Status Pending/ Implemented Surcharge Imposed Expiration Date of Collective- Bargaining Agreement Minimum Contributions Required for Future Periods EIN/Pension Plan Number 2025 2024 Pentegra defined benefit plan for financial institutions 13-5645888/333 At least 80 percent At least 80 percent No No N/A $ — 126 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Contributions to the Fund are based on each individual employer’s experience. The Company bears the market risk relating to the Pension Plan and will continue to fund the Pension Plan as required. The Pension Plan year is July 1 through June 30. The Company’s total contributions to the Pension Plan did not represent more than 5 % of the total contributions to the Pension Plan as indicated in the Pension Plan’s most recently available annual report dated June 30, 2025. The comparability of employer contributions is impacted by asset performance, discount rates and the reduction in the number of covered employees year over year. The Company’s contributions to the Pension Plans were as follows for the periods indicated: Required Contributions - Plan Year Allocation Contribution 2025-2026 2024-2025 2023-2024 (Dollars in thousands) 2025 $ 349 $ 349 $ — $ — 2024 $ 663 $ — $ 369 $ 294 2023 $ 476 $ — $ — $ 476 In conjunction with the acquisition of Blue Hills Bancorp, Inc., parent of Blue Hills Bank (collectively, “BHB”) in 2019, the Company acquired the Savings Banks Employees Retirement Association Pension Plan as adopted by BHB (the “BHB Plan”). The BHB Plan was administered by Savings Banks Employees Retirement Association and frozen on October 31, 2014. As of December 31, 2025, the BHB Plan has terminated and the plan’s assets and liabilities have been settled. I nformation pertaining to the BHB Plan is as follows: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Change in plan assets: Fair value of plan assets at beginning of year $ 9,749 $ 9,632 $ 9,889 Actual return on plan assets 375 508 509 Asset reversion ( 1,424 ) — — Benefits paid ( 8,700 ) ( 391 ) ( 766 ) Fair value of plan assets at end of year $ — $ 9,749 $ 9,632 Change in benefit obligation: Benefit obligation at beginning of year 7,898 8,385 8,716 Interest cost 415 388 420 Actuarial loss (gain) 387 ( 484 ) 15 Benefits paid ( 8,700 ) ( 391 ) ( 766 ) Benefit obligation at end of year $ — $ 7,898 $ 8,385 Funded status at end of year $ — $ 1,851 $ 1,247 At December 31, 2024, the discount rate used to determine the benefit obligation was 5.44 %. 127 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The components of net period pension expense (benefit) are as follows: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Interest cost $ 415 $ 388 $ 420 Expected return on plan assets ( 308 ) ( 258 ) ( 144 ) Amortization of net actuarial gain ( 143 ) ( 54 ) ( 17 ) Settlement gain ( 677 ) — ( 25 ) Net period pension (income) expense $ ( 713 ) $ 76 $ 234 The key assumptions used to determine net periodic pension expense (benefit) are as follows: Years Ended December 31 2025 2024 2023 Discount rate 5.44 % 4.77 % 4.97 % Expected long-term rate of return on plan assets 3.25 % 2.75 % 1.50 % The Company’s total defined benefit plan expense was $ 582,000 , $ 716,000 , and $ 487,000 , for the years ending December 31, 2025, 2024, and 2023, respectively. Supplemental Executive Retirement Plans The Bank maintains frozen defined benefit supplemental executive retirement plans (“SERP”) for certain highly compensated employees designed to offset the impact of regulatory limits on benefits under qualified pension plans. The Bank also maintains defined benefit SERPs acquired from previous acquisitions. The Bank has established and funded rabbi trusts to accumulate funds in order to satisfy the contractual liability of these supplemental retirement plan benefits. These agreements provide for the Bank to pay all benefits from its general assets, and the establishment of these trust funds does not reduce nor otherwise affect the Bank’s continuing liability to pay benefits from such assets except that the Bank’s liability shall be offset by actual benefit payments made from the trusts. The related trust assets included in the Company’s equity securities portfolio totaled $ 19.0 million and $ 18.7 million at December 31, 2025 and 2024, respectively. The following table shows the defined benefit supplemental retirement expense, and the contributions paid to the plans which were used only to pay the current year benefits for the years indicated: 2025 2024 2023 (Dollars in thousands) Retirement expense $ 716 $ 749 $ 703 Benefits paid $ 925 $ 1,120 $ 450 Expected future benefit payments for the defined benefit supplemental executive retirement plans are presented below: Defined Benefit Supplemental Executive Retirement Plans Expected Benefit Payments (Dollars in thousands) 2026 $ 1,093 2027 $ 1,066 2028 $ 1,053 2029 $ 1,048 2030 $ 1,129 2031-2035 $ 5,859 128 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The measurement date used to determine the defined benefit supplemental executive retirement plans’ benefits is December 31 for each of the years reported. The following table illustrates the status of the defined benefit supplemental executive retirement plans at December 31 for the years presented: Defined Benefit Supplemental Executive Retirement Benefits 2025 2024 2023 (Dollars in thousands) Change in accumulated benefit obligation Benefit obligation at beginning of year $ 14,973 $ 16,394 $ 15,711 Service cost — — 380 Interest cost 778 745 761 Actuarial loss (gain) 212 ( 1,046 ) ( 8 ) Benefits paid ( 925 ) ( 1,120 ) ( 450 ) Benefit obligation at end of year $ 15,038 $ 14,973 $ 16,394 Change in plan assets Fair value of plan assets at beginning of year $ — $ — $ — Employer contribution 925 1,120 450 Benefits paid ( 925 ) ( 1,120 ) ( 450 ) Fair value of plan assets at end of year $ — $ — $ — Funded status at end of year $ ( 15,038 ) $ ( 14,973 ) $ ( 16,394 ) Assets — — — Liabilities ( 15,038 ) ( 14,973 ) ( 16,394 ) Funded status at end of year $ ( 15,038 ) $ ( 14,973 ) $ ( 16,394 ) Amounts recognized in accumulated other comprehensive income (“AOCI”) Net gain $ ( 2,293 ) $ ( 2,567 ) $ ( 1,518 ) Prior service cost — — — Amounts recognized in AOCI $ ( 2,293 ) $ ( 2,567 ) $ ( 1,518 ) Information for plans with an accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 15,038 $ 14,973 $ 16,394 Accumulated benefit obligation $ 15,038 $ 14,973 $ 16,394 Net periodic benefit cost Service cost $ — $ — $ 380 Interest cost 778 745 761 Amortization of prior service cost — — 22 Recognized net actuarial (gain) loss ( 62 ) 4 ( 460 ) Net periodic benefit cost $ 716 $ 749 $ 703 Discount rate used for benefit obligation 3.82 % - 5.20 % 4.58 % - 5.41 % 4.62 % - 4.75 % Discount rate used for net periodic benefit cost 4.58 % - 5.41 % 4.62 % - 4.75 % 4.67 % - 4.93 % Rate of compensation increase n/a n/a n/a Other Employee Benefits The Bank may choose to create an incentive compensation plan for senior management and other officers to participate in at varying levels. In addition, the Bank may also pay a discretionary bonus to senior management, officers, and/or non-officers of the Bank. The expense for these incentive plans amounted to $ 28.0 million, $ 21.3 million and $ 18.6 million in 2025, 2024 and 2023, respectively. The Bank has an Employee Savings Plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the Employee Savings Plan, participating employees may defer a portion of their earnings, not to exceed the IRS annual contribution limits. The Bank matches 25 % of each employee’s contributions up to the first 6 % of the 129 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) employee’s eligible earnings. The 401(k) Plan incorporates an Employee Stock Ownership Plan for contributions invested in the Company’s common stock. The Company also provides three defined contributions under this Plan, providing the employees are deemed eligible. To be eligible for these contributions, an employee must complete one year and 1,000 hours of service. The defined contributions are made up of a safe harbor contribution, in which eligible employees receive a 3 % cash contribution of eligible earnings to the social security limit, a discretionary contribution in which eligible employees receive a 2 % cash contribution of eligible earnings up to the social security limit and a 5 % discretionary contribution of eligible earnings over the social security limit up to the maximum amount permitted by law. Benefits contributed to employees under this defined contribution plan vest immediately. The defined contribution plan expense was $ 12.0 million, $ 9.6 million and $ 9.3 million for the years ended December 2025, 2024 and 2023, respectively. The Company has a non-qualified deferred compensation plan which allows for deferrals of base salary and incentive payments until an elected distribution date in the future. This deferred compensation plan is available to certain highly compensated employees. Deferrals are invested at the election of the participant into one of the actively managed funds made available to the participant through the Company’s Investment Management Group. The funds are held in a rabbi trust until the elected date of distribution. The Company has a non-qualified 401(k) Restoration Plan (“Restoration Plan”) for certain executive officers. The Restoration Plan is intended to contribute to each participant the amount of matching and discretionary contributions which would have been made to the existing Rockland Trust 401(k) plan on the participant’s behalf, but were prohibited due to Internal Revenue Code limitations. Deferrals are invested at the election of the participant into one of the actively managed funds made available to the participant through the Company’s Investment Management Group or in the Company’s stock. These funds are held in a rabbi trust until separation of Service. The Company recognized expense of $ 605,000 , $ 659,000 and $ 524,000 related to this plan for services performed for the years ended December 31, 2025, 2024 and 2023, respectively. Also, as part of the Peoples acquisition in 2015, the Company assumed various Salary Continuation Agreements with certain current and former senior executives. The agreements require the payment of specified benefits upon retirement over periods of ten or twenty years as described in each agreement. Expense related to the Salary Continuation Agreements was $ 226,000 , $ 221,000 and $ 217,000 for the years ended December 31, 2025, 2024 and 2023, respectively. Director Benefits The Company maintains two deferred compensation plans for the Company’s Board of Directors which permit non-employee directors to defer cash fees, one of which was in effect through December 31, 2018 and a new plan which was adopted effective January 1, 2019. Under the plan in effect through December 31, 2018, deferred compensation was invested in Company stock. Under the plan that took effect January 1, 2019, participating directors may defer all or a portion of their cash compensation into a choice of diversified investment portfolios comprised of stocks, bonds and cash. There was no compensation deferred during 2025, 2024 and 2023. NOTE 14 FAIR VALUE MEASUREMENTS Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the assumptions applied by the Company when determining fair value reflect those that the Company determines market participants would use to price the asset or liability at the measurement date. If there has been a significant decrease in the volume and level of activity for the asset or liability, regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received if the asset were to be sold or that would be paid if the liability were to be transferred in an orderly market transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. When determining fair value, the Company considers pricing information and other inputs that are current as of the measurement date. In periods of market dislocation, the observability of prices and other inputs may be reduced for certain instruments, or not available at all. The unavailability or reduced availability of pricing or other input information could cause an instrument to be reclassified from one level to another. The Fair Value Measurements and Disclosures Topic of the FASB ASC defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the Fair Value Measurements and Disclosures Topic of the FASB ASC are described below: 130 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation Techniques There were no changes in the valuation techniques used during the year ended December 31, 2025. Securities Trading and Equity Securities These equity securities are valued based on market quoted prices. These securities are categorized in Level 1 as they are actively traded and no valuation adjustments have been applied. U.S. Government Agency and U.S. Treasury Securities Fair value is estimated using either multi-dimensional spread tables or benchmarks. The inputs used include benchmark yields, reported trades, and broker/dealer quotes. These securities are classified as Level 2. Agency Mortgage-Backed Securities Fair value is estimated using either a matrix or benchmarks. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. These securities are categorized as Level 2. Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities The valuation model for these securities is volatility-driven and ratings based, and uses multi-dimensional spread tables. The inputs used include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is not observable, these securities are categorized as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2. Non-taxable and Taxable Municipal Securities The fair value is estimated using a valuation matrix with inputs including bond interest rate tables, recent transaction, and yield relationships. These securities are categorized as Level 2. Pooled Issuer Trust Preferred Securities The fair value of pooled issuer trust preferred securities is estimated using external pricing models, discounted cash flow methodologies or similar techniques. The inputs used in these valuations include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is not observable, these securities are classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2. 131 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Loans Held for Sale The Company has elected the fair value option to account for originated closed loans intended for sale. The fair value is measured on an individual loan basis using quoted market prices and when not available, comparable market value or discounted cash flow analysis may be utilized. These assets are typically classified as Level 2. Derivative Instruments Derivatives The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect non-performance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of non-performance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings. Additionally, in conjunction with fair value measurement guidance, the Company has made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its interest rate derivatives and risk participation agreements may also utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of December 31, 2025 and 2024, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are properly classified as Level 2. Mortgage Derivatives The fair value of mortgage derivatives is determined based on current market prices for similar assets in the secondary market and, therefore, classified as Level 2 within the fair value hierarchy. Individually Assessed Collateral Dependent Loans In accordance with the CECL standard, expected credit losses on individually assessed loans deemed to be collateral dependent are valued based upon the lower of amortized cost or fair value of the underlying collateral less costs to sell. The inputs used in the appraisals of the collateral are not always observable, and in such cases the loans may be classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2. Other Real Estate Owned and Other Foreclosed Assets Other Real Estate Owned (“OREO”) and Other Foreclosed Assets, when applicable, are valued at the lower of cost or fair value of the property, less estimated costs to sell. The fair values are generally estimated based upon recent appraisal values of the property less costs to sell the property. Certain inputs used in appraisals are not always observable, and therefore OREO and Other Foreclosed Assets may be classified as Level 3 within the fair value hierarchy. 132 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Assets and liabilities measured at fair value on a recurring and non-recurring basis were as follows at the dates indicated: Fair Value Measurements at Reporting Date Using Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2025 (Dollars in thousands) Recurring fair value measurements Assets Trading securities $ 4,720 $ 4,720 $ — $ — Equity securities 21,581 21,581 — — Securities available for sale U.S. government agency securities 218,672 — 218,672 — U.S. treasury securities 471,084 — 471,084 — Agency mortgage-backed securities 772,963 — 772,963 — Agency collateralized mortgage obligations 269,576 — 269,576 — Non-taxable municipal securities 12,558 — 12,558 — Taxable municipal securities 220,520 — 220,520 — Pooled trust preferred securities issued by banks and insurers 1,042 — 1,042 — Small business administration pooled securities 37,832 — 37,832 — Loans held for sale 35,909 — 35,909 — Derivative instruments 60,130 — 60,130 — Liabilities Derivative instruments 67,965 — 67,965 — Total recurring fair value measurements, net $ 2,058,622 $ 26,301 $ 2,032,321 $ — Non-recurring fair value measurements Assets Individually assessed collateral dependent loans (1) $ 79,868 $ — $ — $ 79,868 Other real estate owned and other foreclosed assets 2,100 — — 2,100 Total non-recurring fair value measurements $ 81,968 $ — $ — $ 81,968 133 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Fair Value Measurements at Reporting Date Using Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2024 (Dollars in thousands) Recurring fair value measurements Assets Trading securities $ 4,245 $ 4,245 $ — $ — Equity securities 21,204 21,204 — — Securities available for sale U.S. government agency securities 209,660 — 209,660 — U.S. treasury securities 592,001 — 592,001 — Agency mortgage-backed securities 378,161 — 378,161 — Agency collateralized mortgage obligations 28,995 — 28,995 — Non-taxable municipal securities 194 — 194 — Pooled trust preferred securities issued by banks and insurers 1,095 — 1,095 — Small business administration pooled securities 40,838 — 40,838 — Loans held for sale 7,271 — 7,271 — Derivative instruments 103,958 — 103,958 — Liabilities Derivative instruments 123,755 — 123,755 — Total recurring fair value measurements, net $ 1,263,867 $ 25,449 $ 1,238,418 $ — Non-recurring fair value measurements Assets Individually assessed collateral dependent loans (1) $ 43,766 $ — $ — $ 43,766 Total non-recurring fair value measurements $ 43,766 $ — $ — $ 43,766 (1) The carrying value of individually assessed collateral dependent loans is based on the lower of amortized cost or fair value of the underlying collateral less costs to sell. The fair value of the underlying collateral is generally determined through independent appraisals, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. . 134 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below at the dates indicated: Fair Value Measurements at Reporting Date Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2025 (Dollars in thousands) Financial assets Securities held to maturity (a) U.S. treasury securities $ 100,872 $ 97,124 $ — $ 97,124 $ — Agency mortgage-backed securities 694,903 659,415 — 659,415 — Agency collateralized mortgage obligations 370,698 325,798 — 325,798 — Small business administration pooled securities 112,554 108,396 — 108,396 — Loans, net of allowance for credit losses (b) 18,234,032 17,842,036 — — 17,842,036 Federal Home Loan Bank stock (c) 21,835 21,835 — 21,835 — Cash surrender value of life insurance policies (d) 378,576 378,576 — 378,576 — Financial liabilities Deposit liabilities, other than time deposits (e) $ 16,858,570 $ 16,858,570 $ — $ 16,858,570 $ — Time certificates of deposits (f) 3,268,220 3,262,605 — 3,262,605 — Federal Home Loan Bank and other borrowings (f) 416,549 417,352 — 417,352 — Line of credit (f) 49,953 52,494 — 52,494 — Junior subordinated debentures (g) 62,862 62,492 — 62,492 — Subordinated debentures (f) 296,483 308,794 — — 308,794 Fair Value Measurements at Reporting Date Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2024 Financial assets (Dollars in thousands) Securities held to maturity (a) U.S. treasury securities $ 100,791 $ 93,022 $ — $ 93,022 $ — Agency mortgage-backed securities 788,470 726,362 — 726,362 — Agency collateralized mortgage obligations 422,827 357,684 — 357,684 — Small business administration pooled securities 122,868 114,733 — 114,733 — Loans, net of allowance for loan losses (b) 14,294,628 13,213,596 — — 13,213,596 Federal Home Loan Bank stock (c) 31,573 31,573 — 31,573 — Cash surrender value of life insurance policies (d) 303,965 303,965 — 303,965 — Financial liabilities Deposit liabilities, other than time deposits (e) $ 12,558,632 $ 12,558,632 $ — $ 12,558,632 $ — Time certificates of deposits (f) 2,747,346 2,739,606 — 2,739,606 — Federal Home Loan Bank and other borrowings (f) 638,514 638,489 — 638,489 — Junior subordinated debentures (g) 62,860 61,661 — 61,661 — 135 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) (a) The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis. (b) Fair value of loans is measured using the exit price valuation method, determined primarily by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows, while incorporating liquidity and credit assumptions. Additionally, this amount excludes individually assessed collateral dependent loans, which are deemed to be marked to fair value on a non-recurring basis. (c) Federal Home Loan Bank stock has no quoted market value and is carried at cost, therefore the carrying amount approximates fair value. (d) Cash surrender value of life insurance is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore, carrying amount approximates fair value. (e) Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date. (f) Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities. (g) Fair value was determined based upon market prices of securities with similar terms and maturities. This summary excludes certain financial assets and liabilities for which the carrying value approximates fair value. For financial assets, these may include cash and due from banks, federal funds sold and short-term investments. For financial liabilities, these may include federal funds purchased. These instruments would all be considered to be classified as Level 1 within the fair value hierarchy. Also excluded from the summary are financial instruments measured at fair value on a recurring and non-recurring basis, as previously described. The Company considers its current use of financial instruments to be the highest and best use of the instruments. 136 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 15 REVENUE RECOGNITION The Company has disaggregated its revenue from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following table presents the revenue streams that the Company has disaggregated for the periods indicated: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Deposit account fees (inclusive of cash management fees) $ 32,141 $ 26,455 $ 23,486 Interchange fees 13,977 12,513 11,865 ATM fees 4,563 4,568 4,243 Investment management - wealth management and advisory services 44,989 38,311 34,588 Investment management - retail investments and insurance revenue 5,056 4,433 5,603 Payment processing income 2,142 1,848 1,675 Credit card income 2,843 2,341 2,119 Other non-interest income 7,688 5,343 5,684 Total non-interest income in-scope of ASC 606 113,399 95,812 89,263 Total non-interest income out-of-scope of ASC 606 35,290 32,202 35,346 Total non-interest income $ 148,689 $ 128,014 $ 124,609 In each of the revenue streams identified above, there were no significant judgments made in determining or allocating the transaction price, as the consideration and service requirements are generally explicitly identified in the associated contracts. The following table provides the amount of investment management revenue earned but not received as of the dates indicated: December 31, 2025 December 31, 2024 (Dollars in thousands) Receivables, included in other assets $ 7,884 $ 5,968 137 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 16 OTHER COMPREHENSIVE INCOME (LOSS) The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the periods indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): Year Ended December 31, 2025 Pre-Tax Amount Tax (Expense) Benefit After Tax Amount (Dollars in thousands) Change in fair value of securities available for sale $ 55,381 $ ( 12,670 ) $ 42,711 Less: net security losses reclassified into other non-interest expense ( 64 ) 14 ( 50 ) Net change in fair value of securities available for sale 55,445 ( 12,684 ) 42,761 Change in fair value of cash flow hedges 2,174 ( 595 ) 1,579 Less: net cash flow hedge losses reclassified into interest income or interest expense ( 9,326 ) 2,552 ( 6,774 ) Net change in fair value of cash flow hedges 11,500 ( 3,147 ) 8,353 Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period ( 264 ) 72 ( 192 ) Amortization of net actuarial gains ( 266 ) 76 ( 190 ) Amortization of net prior service costs 17 ( 4 ) 13 Amortization of net settlement credits ( 677 ) 185 ( 492 ) Net change in other comprehensive income for defined benefit postretirement plans (1) ( 1,190 ) 329 ( 861 ) Total other comprehensive income (loss) $ 65,755 $ ( 15,502 ) $ 50,253 Year Ended December 31, 2024 Pre-Tax Amount Tax (Expense) Benefit After Tax Amount (Dollars in thousands) Change in fair value of securities available for sale $ 22,586 $ ( 5,843 ) $ 16,743 Less: net security losses reclassified into other non-interest expense — — — Net change in fair value of securities available for sale 22,586 ( 5,843 ) 16,743 Change in fair value of cash flow hedges ( 10,133 ) 2,770 ( 7,363 ) Less: net cash flow hedge losses reclassified into interest income or interest expense ( 19,372 ) 5,296 ( 14,076 ) Net change in fair value of cash flow hedges 9,239 ( 2,526 ) 6,713 Net unamortized gain related to defined benefit pension and other postretirement adjustments arising during the period 1,953 ( 534 ) 1,419 Amortization of net actuarial gains ( 93 ) 26 ( 67 ) Amortization of net prior service costs 17 ( 5 ) 12 Net change in other comprehensive income for defined benefit postretirement plans (1) 1,877 ( 513 ) 1,364 Total other comprehensive income (loss) $ 33,702 $ ( 8,882 ) $ 24,820 138 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Year Ended December 31, 2023 Pre-Tax Amount Tax (Expense) Benefit After Tax Amount (Dollars in thousands) Change in fair value of securities available for sale $ 42,019 $ ( 9,593 ) $ 32,426 Less: net security losses reclassified into other non-interest expense — — — Net change in fair value of securities available for sale 42,019 ( 9,593 ) 32,426 Change in fair value of cash flow hedges ( 5,078 ) 1,428 ( 3,650 ) Less: net cash flow hedge losses reclassified into interest income or interest expense ( 27,414 ) 7,709 ( 19,705 ) Net change in fair value of cash flow hedges 22,336 ( 6,281 ) 16,055 Net unamortized gain related to defined benefit pension and other postretirement adjustments arising during the period 210 ( 59 ) 151 Amortization of net actuarial gains ( 536 ) 151 ( 385 ) Amortization of net prior service costs 39 ( 11 ) 28 Amortization of net settlement credits ( 25 ) 7 ( 18 ) Net change in other comprehensive income for defined benefit postretirement plans (1) ( 312 ) 88 ( 224 ) Total other comprehensive income $ 64,043 $ ( 15,786 ) $ 48,257 (1) The amortization of prior service costs is included in the computation of net periodic pension costs as disclosed in Note 13 - Employee Benefit Plans within the Notes to the Consolidated Financial Statements in Item 8. Information on the Company’s accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the dates indicated: Unrealized Gain (Loss) on Securities Unrealized Gain (Loss) on Cash Flow Hedge Defined Benefit Postretirement Plans Accumulated Other Comprehensive Income (Loss) (Dollars in Thousands) Beginning balance: January 1, 2023 $ ( 128,657 ) $ ( 36,630 ) $ 2,203 $ ( 163,084 ) Other comprehensive (loss) income 32,426 16,055 ( 224 ) 48,257 Ending balance: December 31, 2023 $ ( 96,231 ) $ ( 20,575 ) $ 1,979 $ ( 114,827 ) Other comprehensive income (loss) 16,743 6,713 1,364 24,820 Ending balance: December 31, 2024 $ ( 79,488 ) $ ( 13,862 ) $ 3,343 $ ( 90,007 ) Other comprehensive income 42,761 8,353 ( 861 ) 50,253 Ending balance: December 31, 2025 $ ( 36,727 ) $ ( 5,509 ) $ 2,482 $ ( 39,754 ) 139 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 17 LEASES As of December 31, 2025, the Company had entered into 132 noncancellable operating lease agreements for office space, parking , space for ATM locations and certain branch locations, several of which contain renewal options to extend lease terms for a period of 1 to 20 years. The Company has no material financing leases outstanding and no leases with residual value guarantees. As of December 31, 2025, the Company did not have any material sub-lease agreements. The Company’s right-of-use asset related to operating leases totaled $ 73.2 million and $ 54.5 million at December 31, 2025 and 2024, respectively, and is recognized in the Company’s Consolidated Balance Sheet within other assets . When a decision is made to exit a leased location, the Company may incur certain termination costs and/or lease impairment charges, if applicable. The Company recognized no such exit costs during the year ended December 31, 2025, and $ 555,000 and $ 589,000 during the years ended December 31, 2024 and 2023, respectively. The following table provides information related to the Company’s lease costs for the periods indicated: Years Ended December 31 2025 2024 2023 (Dollars in thousands) Operating lease costs (1) $ 14,962 $ 14,365 $ 14,472 Short-term lease costs 22 37 28 Variable lease costs 4 — — Total lease costs $ 14,988 $ 14,402 $ 14,500 Weighted-average remaining lease term - operating leases 6.86 years 5.99 years 5.61 years Weighted-average discount rate - operating leases 3.98 % 3.49 % 2.98 % (1) Operating lease costs for the periods presented are inclusive of lease exit costs noted above. The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding at December 31, 2025 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in the Company’s Consolidated Balance Sheet in other liabilities: (Dollars in thousands) 2026 $ 15,623 2027 15,182 2028 12,512 2029 10,361 2030 8,881 Thereafter 24,418 Total minimum lease payments 86,977 Less: amount representing interest 11,571 Present value of future minimum lease payments $ 75,406 140 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 18 COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance Sheet Risk In the normal course of business, the Company enters into various transactions to meet the financing needs of its customers, which, in accordance with GAAP, are not included in its Consolidated Balance Sheets. These transactions include commitments to extend credit and standby letters of credit, and loan exposures with recourse, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of these commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. The Company has certain loan exposures for which there is recourse. These loan relationships could require the Company to repurchase or cover certain losses per agreements for certain loans that are either sold or referred to third parties. Standby letters of credit are written conditional commitments issued to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, the Company would be entitled to seek recovery from the customer. The Company’s policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements. The fees collected in connection with the issuance of standby letters of credit are representative of the fair value of the Company’s obligation undertaken in issuing the guarantee. In accordance with applicable accounting standards related to guarantees, fees collected in connection with the issuance of standby letters of credit are deferred. The fees are then recognized in income proportionately over the life of the standby letter of credit agreement. The deferred standby letter of credit fees represent the fair value of the Company’s potential obligations under the standby letter of credit guarantees. The following table summarizes the above financial instruments at the dates indicated: As of December 31 2025 2024 (Dollars in thousands) Commitments to extend credit $ 6,378,011 $ 4,663,314 Loan exposures sold with recourse $ 131,108 $ 141,151 Standby letters of credit $ 65,559 $ 24,863 Deferred standby letter of credit fees $ 432 $ 213 Other Contingencies At December 31, 2025, the Bank was involved in pending lawsuits, which management has reviewed with legal counsel and has taken into consideration the view of counsel as to their outcome. In the opinion of management, the final disposition of pending lawsuits is not expected to have a material adverse effect on the Company’s financial position or results of operations. NOTE 19 REGULATORY MATTERS Regulatory Capital Requirements 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- 141 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. At December 31, 2025 the Bank’s capital levels met or exceeded the minimum levels to be considered “well capitalized” for bank regulatory purposes. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, Common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. Management believes, as of December 31, 2025 and 2024, that the Company and the Bank met all capital adequacy requirements to which they are subject. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2025 and 2024 are also presented in the table that follows: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2025 (Dollars in thousands) Independent Bank Corp. Total capital (to risk weighted assets) $ 2,953,734 15.70 % $ 1,504,816 ≥ 8.0 % N/A N/A Common equity tier 1 capital (to risk weighted assets) $ 2,418,180 12.86 % $ 846,459 ≥ 4.5 % N/A N/A Tier 1 capital (to risk weighted assets) $ 2,418,180 12.86 % $ 1,128,612 ≥ 6.0 % N/A N/A Tier 1 capital (to average assets) leverage $ 2,418,180 10.15 % $ 952,995 ≥ 4.0 % N/A N/A Rockland Trust Company Total capital (to risk weighted assets) $ 2,906,245 15.46 % $ 1,504,129 ≥ 8.0 % $ 1,880,162 ≥ 10.0 % Common equity tier 1 capital (to risk weighted assets) $ 2,728,127 14.51 % $ 846,073 ≥ 4.5 % $ 1,222,105 ≥ 6.5 % Tier 1 capital (to risk weighted assets) $ 2,728,127 14.51 % $ 1,128,097 ≥ 6.0 % $ 1,504,129 ≥ 8.0 % Tier 1 capital (to average assets) leverage $ 2,728,127 11.45 % $ 953,126 ≥ 4.0 % $ 1,191,407 ≥ 5.0 % December 31, 2024 (Dollars in thousands) Independent Bank Corp. 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 Rockland Trust Company 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%. The Company’s capital levels exceeded the minimum requirement plus the buffer of 2.5% as of December 31, 2025 and 2024. 142 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 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 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 for the years ended December 31, 2025 and 2024 totaled $ 158.8 million and $ 183.8 million, respectively. Trust Preferred Securities In accordance with the applicable accounting standard related to variable interest entities, the common stock of trusts which have issued trust preferred securities have not been included in the consolidated financial statements of the Company. At both December 31, 2025 and 2024, there were $ 61.0 million in trust preferred securities that have been included within Tier 2 Capital of the Company for regulatory reporting purposes, pursuant to the Federal Reserve’s capital adequacy guidelines. NOTE 20 PARENT COMPANY FINANCIAL STATEMENTS Condensed financial information relative to the balance sheets of Independent Bank Corp., as the parent company, at December 31, 2025 and 2024 and the related statements of income and cash flows for the years ended December 31, 2025, 2024, and 2023 are presented below. The statement of stockholders’ equity is not presented below as the parent company’s stockholders’ equity is that of the consolidated Company. BALANCE SHEETS December 31 2025 2024 (Dollars in thousands) Assets Cash (1) $ 124,309 $ 110,097 Investments in subsidiaries (2) 3,877,550 2,967,786 Prepaid income taxes 8,153 2,309 Deferred tax asset 431 430 Total assets $ 4,010,443 $ 3,080,622 Liabilities and stockholders’ equity Dividends payable $ 29,055 $ 24,225 Line of credit (less unamortized issuance costs of $ 47 ) 49,953 — Junior subordinated debentures (less unamortized debt issuance costs of $ 26 and $ 28 ) 62,862 62,860 Subordinated debentures (less unamortized debt issuance costs of $ 3,517 ) 296,483 — Other liabilities 6,362 417 Total liabilities 444,715 87,502 Stockholders’ equity 3,565,728 2,993,120 Total liabilities and stockholders’ equity $ 4,010,443 $ 3,080,622 (1) Entire balance eliminated in consolidation. (2) Majority of balance eliminated in consolidation . 143 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) STATEMENTS OF INCOME Years Ended December 31 2025 2024 2023 (Dollars in thousands) Income Dividends received from subsidiaries (1) $ 158,922 $ 183,961 $ 229,046 Total income 158,922 183,961 229,046 Expenses Interest expense 21,456 5,014 6,829 Other expenses (1) 5,493 2,891 3,156 Total expenses 26,949 7,905 9,985 Income before income taxes and equity in undistributed income of subsidiaries 131,973 176,056 219,061 Income tax benefit ( 7,406 ) ( 2,280 ) ( 2,785 ) Income of parent company 139,379 178,336 221,846 Equity in undistributed income of subsidiaries 65,743 13,745 17,656 Net income $ 205,122 $ 192,081 $ 239,502 (1) Majority of balance eliminated in consolidation. 144 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) STATEMENTS OF CASH FLOWS Years Ended December 31 2025 2024 2023 (Dollars in thousands) Cash flows from operating activities Net income $ 205,122 $ 192,081 $ 239,502 Adjustments to reconcile net income to cash provided by operating activities Amortization 684 22 98 Deferred income tax (benefit) expense ( 1 ) ( 1 ) 24 Change in prepaid income taxes and other assets ( 5,843 ) 179 2,107 Change in other liabilities 3,975 ( 2,560 ) 52 Equity in undistributed income of subsidiaries ( 65,743 ) ( 13,745 ) ( 17,656 ) Net cash provided by operating activities 138,194 175,976 224,127 Cash flows used in investing activities Investment in subsidiaries ( 225,000 ) — — Net cash used in business combinations ( 21,100 ) — — Net cash used in investing activities ( 246,100 ) — — Cash flows provided by (used in) financing activities Proceeds from line of credit, net of issuance costs 49,937 — — Proceeds from subordinated debentures, net of issuance costs 295,843 — — Repayments of subordinated debentures ( 60,000 ) ( 50,000 ) — Restricted stock awards issued, net of awards surrendered ( 1,459 ) ( 815 ) ( 1,142 ) Net proceeds from exercise of stock options — 80 80 Proceeds from shares issued under direct stock purchase plan 2,549 3,254 2,662 Payments for shares repurchased under share repurchase program ( 60,849 ) ( 30,986 ) ( 188,910 ) Common dividends paid ( 103,903 ) ( 96,200 ) ( 98,006 ) Net cash provided by (used in) financing activities 122,118 ( 174,667 ) ( 285,316 ) Net increase (decrease) in cash and cash equivalents 14,212 1,309 ( 61,189 ) Cash and cash equivalents at the beginning of the year 110,097 108,788 169,977 Cash and cash equivalents at the end of the year $ 124,309 $ 110,097 $ 108,788 145 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE 21 TRANSACTIONS WITH RELATED PARTIES Certain directors and officers (including their affiliates, certain family members and entities in which they are principal owners) of the Company are customers of and have had, and are expected to have, transactions with the Company, within the ordinary course of business. These transactions include, but are not limited to, lending activities, deposit services, investment management, and property lease commitments. In the opinion of management, such transactions are consistent with prudent banking practices and are within applicable banking regulations. Lending Activities The following information represents annual activity of loans to related parties for the periods indicated: 2025 2024 2023 (Dollars in thousands) Principal balance of loans outstanding at beginning of year $ 11,408 $ 11,927 $ 26,721 Loan advances (1) 2,070 — 911 Loan payments/payoffs ( 515 ) ( 519 ) ( 1,336 ) Reduction for retired directors and/or changes in director status — — ( 14,369 ) Principal balance of loans outstanding at end of year $ 12,963 $ 11,408 $ 11,927 (1) The 2025 loan advances were associated with a new director and represent the outstanding loan balance at the effective date of appointment. At December 31, 2025 and 2024, there were no loans to related parties which were past due, on non-accrual status or that had been restructured due to financial difficulty. Deposits At December 31, 2025 and 2024, the amount of deposit balances of related parties totaled $ 8.0 million and $ 3.6 million, respectively. Lease Commitments At December 31, 2025 and 2024 , there were no material leases with related parties. NOTE 22 SEGMENT INFORMATION The Company is a bank holding company, the principal subsidiary of which is the Bank. The Bank provides a variety of banking, investment, and financial services through its retail branches, commercial banking centers, investment management offices, and mortgage lending centers throughout Eastern Massachusetts, as well as in Worcester County; southern New Hampshire; and Rhode Island. The Bank is a community-oriented commercial bank, and has only one reportable segment, which is community banking. The community banking segment derives revenues primarily from providing loans to individuals and small-to-medium sized businesses in its market area. The accounting policies of the community banking segment are the same as those described in Note 1, “Summary of Significant Accounting Policies” within the Notes to Consolidated Financial Statements included in Item 8. The Company’s reportable segment is determined by the Chief Executive Officer and Chief Financial Officer, who are the Company’s designated chief operating decision makers (“CODMs”), based upon information about the Company’s products and services offered to customers as part of its community banking operations. The CODMs assess performance for the community banking segment and decide how to allocate resources based on the Company’s consolidated net income and diluted earnings per share, as reported in the Consolidated Statements of Income. The significant expense categories reviewed by the CODMs are also consistent with those presented on the Consolidated Statements of Income, with an emphasis on interest expense on deposits and borrowings, as well as provision for credit losses, salaries and benefits, and occupancy and equipment costs. Other segment expenses are comprised of the remaining expense categories presented on the Consolidated Statements of income, including other non-interest expenses. Other non-interest expenses are inclusive of costs related to professional services, advertising, technology and communications costs, and various other general and administrative costs. Net income and diluted earnings per share are used by the CODMs to monitor management’s budgeted results versus actual, as we ll as to benchmark the Company’s relative performance against other banking institutions in its peer group. The results of these mon itoring and benchmarking analyses are used in assessing performance of the community banking segment and to inform decisions surrounding general corporate strategy, capital allocations, and compensation. A sset details provided to the CODMs 146 Table of Contents are consistent with those reported on the Consolidated Balance Sheets, with an emphasis on interest-earning assets, including loans and investment securities, which provide the majority of revenues generated by the community banking segment. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None