What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-06 compared with 2025-11-05 · 210 added, 391 removed, 623 unchanged (49% of the section changed)

6 unchanged sentences

Such forward-looking statements involve certain risks and uncertainties and our actual results may differ materially from such forward-looking statements.

Factors that may cause actual results to differ materially from those

contemplated by such forward-looking statements, in addition to those risk factors listed under the “Risk Factors” section of the 2024 Form 10-K, include but are not limited to:

Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, in addition to those risk factors listed under the “Risk Factors” section of the 2025 Form 10-K, include but are not limited to:

• adverse economic conditions in the regional and local economies within the New England region and the Company’s market area;

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• political and policy uncertainties, changes in U.S.

and international trade policies, such as tariffs or other factors, the prolongment of the U.S.

government shutdown, and the potential impact of such factors on the Company and its customers, including the potential for decreases in deposits and loan demand, unanticipated loan delinquencies, loss of collateral and decreased service re venues ;

• the instability or volatility in financial markets and unfavorable domestic or global general economic, political or business conditions, whether caused by geopolitical concerns, including the Russia/Ukraine conflict, the conflicts in Israel, Iran and surrounding areas and uncertainties surrounding the trajectories of such conflicts;

and international trade policies, such as tariffs or other factors, and the potential impact of such factors on the Company and its customers, including the potential for decreases in deposits and loan demand, unanticipated loan delinquencies, loss of collateral and decreased service re venues ;

• the instability or volatility in financial markets and unfavorable domestic or global general economic, political or business conditions, including international conflicts and hostilities, such as the ongoing conflict involving Israel, the U.S.

• unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on the Company’s local economies or the Company’s business caused by adverse weather conditions and natural disasters, changes in climate, public health crises or other external events and any actions taken by governmental authorities in response to any such events;

• adverse changes or volatility in the local real estate market;

• adverse changes or volatility in the local real estate market, including limitations on rent growth, increases in operating expenses, reductions in property cash flows, reductions in collateral values, and decreased investor demand, which may be exacerbated by legislative or regulatory actions such as rent control or tenant protection laws, including a pending ballot initiative which would establish rent control for all residential properties in Massachusetts, subject to limited exceptions;

• changes in interest rates and any resulting impact on interest earning assets and/or interest bearing liabilities, the level of voluntary prepayments on loans and the receipt of payments on mortgage-backed securities, decreased loan demand or increased difficulty in the ability of borrowers to repay variable rate loans;

• risks related to the Company’s acquisition of Enterprise Bancorp, Inc., parent of Enterprise Bank and Trust Company (collectively, “Enterprise”) and acquisitions generally, including disruption to current plans and operations;

• risks related to the Company’s acquisition activities, including disruption to current plans and operations;

difficulties in customer and employee retention;

fees, expenses and charges related to these transactions being significantly higher than anticipated;

unforeseen integration issues or impairment of goodwill and/or other intangibles;

impairment of goodwill and/or other intangibles;

and the Company’s inability to achieve expected revenues, cost savings, synergies, and other benefits at levels or within the timeframes originally anticipated;

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long-term sovereign debt or uncertainties surrounding the federal budget;

• inability to adapt to changes in information technology, including changes to industry accepted delivery models driven by a migration to the internet as a means of service delivery, including any inability to effectively implement new technology-driven products, such as artificial intelligence;

• electronic or other fraudulent activity within the financial services industry, especially in the commercial banking sector;

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and outages or other issues impacting the Company or its third party service providers which could lead to interruptions or disruptions of the Company’s operating systems, including systems that are customer facing, and adversely impact the Company’s business;

• risks related to the development and use of AI by the Company, its third-party vendors, clients and counterparties;

• any unexpected material adverse changes in the Company’s operations or earnings.

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Three Months Ended

2025 March 31

2026 December 31

2025 September 30

2025 March 31

(Dollars in thousands, except per share data)

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Tangible book value per share (1)

47.86 47.55 46.63 48.80 47.81

Performance ratios

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Tangible equity to tangible assets (1)

9.86 % 9.88 % 9.77 % 10.92 % 10.78 %

Tier 1 leverage capital ratio 10.23 % 10.15 % 10.11 % 11.44 % 11.43 %

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These metrics are used by management to make key decisions regarding the Company’s balance sheet, liquidity, interest rate sensitivity, and capital resources and assist with identifying opportunities for improving the Company’s financial position or operating results.

The Company is focused on organic growth, but will also consider acquisition opportunities that are expected to provide a satisfactory financial return, including the recent acquisition of Enterprise, which closed on July 1, 2025.

The transaction included the acquisition of $3.9 billion in loans and $4.4 billion in deposits, each at fair value, and resulted in the addition of twenty-seven branch locations in northern Massachusetts and southern New Hampshire.

Third Quarter 2025 Results

Net income for the three months ended September 30, 2025 was $34.3 million, or $0.69 on a diluted earnings per share basis, as compared to $42.9 million, or $1.01 on a diluted earnings per share basis, for the three months ended September 30, 2024, representing decreases of 20.2% and 31.7%, respectively.

The decrease in net income was primarily driven by merger-related costs and the current period provision for credit losses associated with the Company’s third quarter acquisition of Enterprise.

Specifically, the 2025 third quarter results include pre-tax merger-related costs of $23.9 million and a $34.5 million provision for credit losses attributable to the closing of the Enterprise acquisition.

Excluding these merger-related costs and the provision for credit losses associated with the acquisition, and their related tax effects, operating net income was $77.4 million, or $1.55 per diluted share for the third quarter of 2025.

There were no such non-core costs recorded during the third quarter of 2024.

Third quarter 2025 results reflected solid overall business activity amidst a continued challenging environment, including the following key drivers:

• Successful close of the Enterprise acquisition on July 1, 2025;

• Net interest margin increased by 25 basis point to 3.62%;

• Robust organic commercial & industrial loan growth;

• Relatively flat total loan and deposit balances;

• Wealth assets under administration increased to $9.2 billion;

• Operating efficiency ratio decreased to 56.2%;

• Loan loss provision of $38.5 million includes $34.5 million attributable to acquired Enterprise loan portfolio;

• Repurchase of approximately 365,000 share for $23.4 million.

Interest-Earning Assets

The results depicted in the following table reflect the trend of the Company’s interest-earning assets over the past five quarters.

While the Company employs a longer term strategy that typically emphasizes loan growth commensurate with overall economic growth, changes over the trailing five quarter period reflect relatively consistent balances of total interest-earning assets.

For the third quarter of 2025, the increase in interest-earning assets was driven primarily the Enterprise acquisition, which included the addition of $3.9 billion in loans and $590.3 million in available for sale securities.

The following table summarizes the Company’s average interest-earning assets for each period presented:

Management strives to be disciplined about loan pricing and considers interest rate sensitivity when generating loan assets.

In addition, management takes a disciplined approach to credit underwriting, seeking to avoid undue credit risk and credit losses.

Funding and Net Interest Margin

The Company’s overall sources of funding reflect strong business and retail deposit growth with a management emphasis on core deposit growth to fund loans.

The increase in funding sources during the third quarter of 2025 were driven primarily the addition of $4.4 billion in deposits acquired from Enterprise.

The following chart shows sources of funding for the trailing five quarters:

The Company’s ratio of core deposits to total deposits of 83.1% remained relatively consistent at September 30, 2025.

The following chart shows the percentage of core deposits for the trailing five quarters:

(1) The percentage of core deposits to total deposits presented above is inclusive of reciprocal deposits collected through the Company’s participation in the IntraFi Network.

The net interest margin of 3.62% increased 25 basis points when compared to the prior quarter, including an 8 basis point lift from acquired loan purchase accounting accretion.

The remaining increase was driven by the acquisition of a slightly higher adjusted margin from Enterprise, continued benefit from long term asset repricing, and a 5 basis point lift from discount accretion on the acquired securities.

The following table shows the net interest margin and cost of deposits trends for the trailing five quarters:

Non-interest Income

Non-interest income is primarily comprised of deposit account fees, interchange and ATM fees, investment management fees and mortgage banking income.

The increases in non-interest income during the third quarter of 2025 were driven primarily by the impact of the Enterprise acquisition.

The following chart shows trends in the components of non-interest income over the past five quarters:

Expense Control

Management seeks to take a balanced approach to non-interest expense control by monitoring ongoing operating expenses while making needed capital expenditures and prudently investing in growth initiatives.

The Company’s primary expenses arise from employee salaries and benefits, as well as expenses associated with buildings and equipment.

The following chart depicts the Company’s efficiency ratio on a GAAP basis (calculated by dividing non-interest expense by the sum of non-interest income and net interest income), as well as the Company’s efficiency ratio on a non-GAAP operating basis, (calculated by dividing non-interest expense, excluding certain non-core items, such as merger-related costs, by the sum of non-interest income, excluding certain non-core items, and net interest income) over the past five quarters:

*See "Non-GAAP Measures" below for a reconciliation to GAAP financial measures.

The Company’s approach with respect to revenue and expense is designed to promote long-term earnings growth, which in turn contributes to capital growth.

Capital is primarily impacted by earnings retention, dividends, changes in other comprehensive income, and opportunistic share repurchases.

In addition, third quarter 2025 capital results were impacted by the closing of the Enterprise acquisition.

The following chart shows the Company’s book value and tangible book value per share over the past five quarters:

*See “Non-GAAP Measures” below for a reconciliation to GAAP financial measures.

The Company declared a quarterly cash dividend of $0.59 per share for the third quarter of 2025, representing an increase of 3.5% from the 2024 third quarter dividend rate of $0.57.

The Company is focused on organic growth, but will also consider acquisition opportunities that are expected to provide a satisfactory financial return.

Financial Highlights

• The company reported net income of $79.9 million, or $1.63 on a diluted earnings per share basis, as compared to $44.4 million, or $1.04 on a diluted earnings per share basis, for the three months ended March 31, 2025.

The increase in net income was driven primarily by the Company’s July 2025 acquisition of Enterprise Bancorp Inc.

(“Enterprise”) and improving net interest margin.

• Financial results for the first quarter of 2026 were inclusive of $3.0 million of pre-tax merger-related costs related to the Enterprise acquisition, as compared to $1.2 million during the same prior year period.

Excluding these merger-related costs associated with the Enterprise acquisition, and their related tax effects, operating net income was $82.1 million, or $1.68 per diluted share for the first quarter of 2026, as compared to $45.3 million, or $1.06 per diluted share basis for the first quarter of 2025 (1) .

• The net interest margin of 3.90% compared to 3.42% for the three months ended March 31, 2025, and was driven by higher yields on interest-earning assets and decreased funding costs.

• Loan balances decreased by $78.3 million from December 31, 2025, with core commercial and industrial growth offset by runoff in the commercial and residential portfolios.

• Deposits decreased $29.3 million from December 31, 2025, driven primarily by seasonality in business operating balances.

• The Company executed on its previously announced $150 million stock repurchase plan, buying back approximately 802,000 shares of common stock for $63.3 million at an average price per share of $78.85.

• The Company’s tangible book value per share at March 31, 2026 grew by $0.31 compared to December 31, 2025 (1) .

• The Company increased its quarterly dividend by 8.5% in the first quarter of 2026, from $0.59 to $0.64 per share.

• The first quarter 2025 provision for credit losses increased to $5.5 million, as compared to $4.8 million for the fourth quarter of 2025.

• Net charge-offs decreased slightly to $4.8 million, as compared to $5.3 million for the fourth quarter of 2025, representing 0.11% and 0.12%, respectively, of average loans annualized.

The largest individual charge-off in the quarter was $4.2 million related to a commercial real estate loan that was partially reserved for in the prior quarter.

• During the first quarter of 2026, the Company’s non-performing loans increased to $96.6 million as compared to $83.6 million at December 31, 2025.

(1) Represents a non-GAAP measure.

See “Non-GAAP Measures” below for reconciliation to the corresponding GAAP measures.

Non-GAAP Measures

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The following table summarizes the impact of non-core items on net income and reconciles non-GAAP net operating earnings to net income available to common shareholders for the periods indicated:

Three Months Ended September 30

Net Income Diluted

Earnings Per Share

2025 2024 2025 2024

(Dollars in thousands, except per share data)

Net income available to common shareholders (GAAP) $ 34,262 $ 42,947 $ 0.69 $ 1.01

Non-GAAP adjustments

Provision for non-PCD acquired loans 34,519 — 0.69 —

Non-interest expense components

merger and acquisition expenses 23,893 — 0.48 —

Non-core increases to income before taxes 58,412 — 1.17 —

Net taxes associated with non-core items (1) (15,320) — (0.31) —

Total tax impact (15,320) — (0.31) —

Non-core increases to net income 43,092 — 0.86 —

Operating net income (Non-GAAP) $ 77,354 $ 42,947 $ 1.55 $ 1.01

Nine Months Ended September 30

Three Months Ended March 31

Net Income Diluted

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Non-GAAP adjustments

Provision for non-PCD acquired loans 34,519 — 0.76 —

Non-interest expense components

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Net taxes associated with non-core items (1) (830) (325) (0.02) (0.01)

adjustment for tax effect of previously incurred merger and acquisition expenses 381 — 0.01 —

Total tax impact (15,532) — (0.34) —

Non-core increases to net income 2,194 830 0.05 0.02

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(1) The net tax benefit associated with non-core items is determined by assessing whether each non-core item is included or excluded from net taxable income and applying the Company’s combined marginal tax rate to only those items included in net taxable income.

The following table summarizes the impact of non-core items with respect to the Company’s total revenue, non-interest income as a percentage of total revenue, and the efficiency ratio for the periods indicated:

Three Months Ended

2025 March 31

2025 December 31

2024 September 30

(Dollars in thousands)

Net interest income (GAAP) $ 203,344 $ 147,496 $ 145,505 $ 144,661 $ 141,703 (a)

Non-interest income (GAAP) $ 40,398 $ 34,308 $ 32,539 $ 32,191 $ 33,549 (b)

Non-interest expense (GAAP) $ 160,836 $ 108,798 $ 105,878 $ 106,422 $ 100,443 (c)

Merger and acquisition expense 23,893 2,239 1,155 1,902 —

Non-interest expense on an operating basis (Non-GAAP) $ 136,943 $ 106,559 $ 104,723 $ 104,520 $ 100,443 (d)

Total revenue (GAAP) $ 243,742 $ 181,804 $ 178,044 $ 176,852 $ 175,252 (a+b)

Efficiency ratio (GAAP) (calculated by dividing total non-interest expense by total revenue) 65.99 % 59.84 % 59.47 % 60.18 % 57.31 % (c/(a+b))

Efficiency ratio on an operating basis (Non-GAAP) (calculated by dividing total non-interest expense on an operating basis by total revenue) 56.18 % 58.61 % 58.82 % 59.10 % 57.31 % (d/(a+b))

The following table summarizes the calculation of tangible common equity to tangible assets ratio and tangible book value per share and shows the reconciliation of non-GAAP measures:

2025 March 31

2026 December 31

2025 September 30

2025 March 31

Tangible common equity (Dollars in thousands, except per share data)

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Tangible common equity (Non-GAAP) 2,324,744 2,341,542 2,315,645 2,080,042 2,037,379 (b)

Tangible assets

Assets (GAAP) 24,993,239 20,048,934 19,888,209 19,373,565 19,408,117 (c)

Goodwill and other intangibles 1,225,106 994,814 996,013 997,356 998,773

Tangible assets (Non-GAAP) $ 23,768,133 $ 19,054,120 $ 18,892,196 $ 18,376,209 $ 18,409,343 (d)

Common shares 49,787,305 42,627,286 42,610,271 42,500,611 42,480,765 (e)

Common equity to assets ratio (GAAP) 14.19 % 15.34 % 15.25 % 15.45 % 15.34 % (a/c)

Tangible common equity to tangible assets ratio (Non-GAAP) 9.77 % 10.92 % 10.78 % 10.86 % 10.75 % (b/d)

Book value per share (GAAP) $ 71.24 $ 72.13 $ 71.19 $ 70.43 $ 70.08 (a/e)

Tangible book value per share (Non-GAAP) $ 46.63 $ 48.80 $ 47.81 $ 46.96 $ 46.57 (b/e)

Common shares 48,572,237 49,243,813 49,787,305 42,627,286 42,610,271 (c)

Book value per share (GAAP) $ 72.92 $ 72.41 $ 71.24 $ 72.13 $ 71.19 (a/c)

Tangible book value per share (Non-GAAP) $ 47.86 $ 47.55 $ 46.51 $ 48.80 $ 47.81 (b/c)

Critical Accounting Estimates

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These critical accounting estimates are defined as estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material impact on financial condition or results of operations.

There have been no material changes in critical accounting estimates during the first nine months of 2025.

There have been no material changes in critical accounting estimates during the first three months of 2026.

Refer to “Critical Accounting Estimates” in Item 7.

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Treasury, U.S.

government agency securities, agency mortgage-backed securities, agency collateralized mortgage obligations, taxable and non-taxable municipals and small business administration pooled securities.

government agency securities, agency mortgage-backed securities, agency collateralized mortgage obligations, municipal securities and small business administration pooled securities.

Also included in the Company’s securities portfolio are trading and equity securities related to certain employee benefit programs.

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Interest and principal payments generated from securities provide a source of liquidity to fund loans and meet short-term cash needs.

Total securities increased by $613.7 million, or 22.63%, to $3.3 billion at September 30, 2025 compared to $2.7 billion at December 31, 2024, primarily attributable to the acquisition of the Enterprise available for sale securities portfolio.

During the nine months ended September 30, 2025, new purchases of $326.2 million and unrealized gains of $45.9 million in the available for sale portfolio were offset by sales, maturities, calls, and paydowns in the combined available for sale and held to maturity portfolios.

Total securities represented 13.3% and 14.0% of total assets at September 30, 2025 and December 31, 2024, respectively.

Total securities increased by $62.4 million, or 1.9%, to $3.4 billion at March 31, 2026 compared to $3.3 billion at December 31, 2025, driven by new purchases of $168.4 million in the available for sale portfolio which were partially offset by maturities, calls, and paydowns in the combined available for sale and held to maturity portfolios.

Total securities represented 13.6% and 13.3% of total assets at March 31, 2026 and December 31, 2025, respectively.

The Company estimates expected credit losses for its available for sale and held to maturity securities in accordance with the current expected credit loss (“CECL”) methodology.

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Additionally, as part of its asset/liability management strategy, the Bank may opt to retain certain residential real estate loan originations for its portfolio.

When a loan is sold, the Company enters into agreements that contain representations and warranties about the characteristics of the loans sold and their origination.

When a loan is sold, the Company enters into agreements that contain representations and

warranties about the characteristics of the loans sold and their origination.

The Company may be required to either repurchase mortgage loans or to indemnify the purchaser from losses if representations and warranties are found to be not accurate in all material respects.

The Company incurred no material losses related to residential mortgage repurchases during the three and nine months ended September 30, 2025 and 2024.

The Company incurred no losses related to residential mortgage repurchases during the three months ended March 31, 2026 and 2025.

The volume of residential real estate loan sales fluctuate based on customer demands, which is often driven by the interest rate environment.

The following table shows the total residential real estate loans closed and the breakdown of amounts held in portfolio or sold (or held for sale) in the secondary market during the periods indicated:

Table 1 - Closed Residential Real Estate Loans

Three Months Ended September 30 Nine Months Ended September 30

2025 2024 2025 2024

Three Months Ended March 31

(Dollars in thousands)

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Total closed loans $ 116,050 $ 83,522

When a loan is sold, the Company may decide to also sell the servicing of sold loans for a servicing release premium, simultaneously with the sale of the loan, or the Company may opt to sell the loan and retain the servicing.

The table below reflects additional information related to the loans sold during the periods indicated and the sale or retention of the related servicing rights:

Table 2 - Residential Mortgage Loan Sales

Three Months Ended September 30 Nine Months Ended September 30

2025 2024 2025 2024

Three Months Ended March 31

(Dollars in thousands)

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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

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.

The principal balance of loans serviced by the Bank on behalf of investors was $266.7 million, $280.2 million and $286.4 million at September 30, 2025, December 31, 2024, and September 30, 2024, respectively.

The principal balance of loans serviced by the Bank on behalf of investors was $260.9 million, $266.0 million and $275.8 million at March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

The following table shows the adjusted cost of the servicing rights associated with these loans and the changes for the periods indicated:

Table 3 - Mortgage Servicing Asset

Three Months Ended September 30 Nine Months Ended September 30

2025 2024 2025 2024

Three Months Ended March 31

(Dollars in thousands)

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Item 1 of this Report for more information on mortgage activity and mortgage related derivatives.

Loan Portfolio The Company’s total loan portfolio at September 30, 2025 increased $3.9 billion, or 27.2%, when compared to December 31, 2024, primarily due to the Enterprise acquisition.

On the commercial side, the commercial and industrial portfolio increased organically by 7.3% but was offset by a decline in the commercial real estate and commercial construction portfolios.

Organically, the consumer real estate portfolio increased by 1.9%, driven by growth within the home equity portfolio.

The following table summarizes loan growth/decline during the periods indicated:

Table 4 - Components of Loan Growth/(Decline)

2025 December 31

2024 Enterprise Acquisition Organic Growth/(Decline) Organic Growth/(Decline) %

(Dollars in thousands)

Commercial and industrial $ 4,532,294 $ 3,246,455 $ 979,072 $ 306,767 7.26 %

Commercial real estate 8,241,458 6,839,705 1,742,275 (340,522) (3.97) %

Commercial construction 1,439,876 782,078 664,281 (6,483) (0.45) %

Total commercial 14,213,628 10,868,238 3,385,628 (40,238) (0.28) %

Residential real estate 2,917,101 2,460,600 425,695 30,806 1.07 %

Home equity 1,284,139 1,140,168 95,096 48,875 3.96 %

Total consumer real estate 4,201,240 3,600,768 520,791 79,681 1.93 %

Total other consumer 37,575 39,372 6,693 (8,490) (18.43) %

Total loans $ 18,452,443 $ 14,508,378 $ 3,913,112 $ 30,953 0.17 %

The Company’s commercial real estate loan portfolio, inclusive of commercial construction, is the Company’s largest loan type concentration.

The Company believes that this portfolio is also well-diversified with loans secured by a variety of property types, such as non-owner-occupied commercial real estate, retail, office, industrial, warehouse, and other special purpose properties, such as hotels, motels, nursing homes, restaurants, churches, recreational facilities, marinas, and golf courses.

Commercial real estate also includes loans secured by certain residential-related property types, including multi-family apartment buildings, residential development tracts and condominiums.

The following pie chart shows the diversification of the commercial real estate loan portfolio as of September 30, 2025:

Loan Portfolio The Company’s total loan portfolio at March 31, 2026 decreased $78.3 million, or 0.4%, when compared to December 31, 2025, driven primarily by a decrease in the combined commercial real estate and construction portfolio of $89.6 million, or 0.9%, due to elevated payoffs and amortization of balances, including a reduction of $55.9 million in the Company’s office portfolio.

This decrease was partially offset by growth in commercial and industrial portfolio of $39.7 million, or 0.9% (3.5% annualized), despite runoff of $38.7 million attributable to the Company’s strategic exit from the dealer finance business.

The total consumer portfolio decreased $28.3 million, or 0.7%, primarily attributable to a decline in the residential real estate portfolio of $31.3 million, or 1.1%, reflecting seasonally lower volume.

This decrease was partially offset by a modest increase in the home equity portfolio of $10.1 million, or 0.8% (3.2% annualized).

The Bank’s commercial real estate portfolio, inclusive of commercial construction, is the Bank’s largest loan type concentration.

The Bank believes this portfolio is well diversified with loans secured by a variety of property types, such as non-owner-occupied commercial real estate, retail, office, industrial, warehouse, industrial development bonds and other special purpose properties, such as hotels, motels, nursing homes, restaurants, churches, and recreational facilities.

The portfolio also includes loans secured by certain residential-related property types including multi-family apartment buildings, residential development tracts and condominiums.

The following pie chart shows the diversification of the commercial real estate loan portfolio as of March 31, 2026:

* Inclusive of commercial construction balances.

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Commercial and industrial loans consist of both term loans and revolving or non-revolving lines of credit.

Term loans generally have a repayment schedule of five years or less.

Term loans generally have a repayment schedule of five years or less and are collateralized by equipment, machinery or other business assets.

In addition, the Bank generally obtains personal guarantees from the principal owners of the borrower for its commercial and industrial loans.

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To limit the risk within this portfolio, the loans are made across a diverse set of industry groups.

The following pie chart shows the diversification of the commercial and industrial portfolio as of September 30, 2025:

The following pie chart shows the diversification of the commercial and industrial portfolio as of March 31, 2026:

Select Statistics Regarding the Commercial and Industrial Portfolio

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Additionally, the Company makes loans for other personal needs.

Other consumer loans primarily consist of installment loans and overdraft protections.

The residential real estate, home equity and other consumer portfolios totaled $4.2 billion at September 30, 2025, as noted below:

Other consumer loans primarily consist of investment management secured lines of credit, installment loans and overdraft protections.

The residential real estate, home equity and other consumer portfolios totaled $4.2 billion at March 31, 2026, as noted below:

(Dollars in thousands)

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The borrower’s needs are considered as much as reasonably possible without jeopardizing the Bank’s position.

A late charge is usually assessed on loans upon expiration of the grace period.

Non-accrual Loans As a general rule, loans 90 days or more past due with respect to principal or interest are classified as non-accrual loans.

However, certain loans that are 90 days or more past due may be kept on an accruing status if the loans are well secured and in the process of collection.

Income accruals are suspended on all non-accrual loans and all previously

accrued and uncollected interest is reversed against current income.

A loan remains on nonaccrual status until it becomes current with respect to principal and interest and remains current for a minimum period of six months, the loan is liquidated, or when the loan is determined to be uncollectible and is charged-off against the allowance for credit losses.

A late charge is usually assessed on loans upon expiration of the grace period as permitted by loan agreements.

Non-accrual Loans As a general rule, loans 90 days or more past due with respect to principal or interest are classified as non-accrual loans, or sooner if management considers such action to be prudent.

However, certain loans that are 90 days or

more past due may be kept on an accruing status if the loans are well secured and in the process of collection.

Income accruals are suspended on all non-accrual loans and all previously 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.

Loan Modifications In the course of resolving problem loans, the Company may choose to modify the contractual terms of certain loans.

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2026 December 31

2024 September 30

2025 March 31

(Dollars in thousands)

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Table 5 - Activity in Non-Performing Assets

Three Months Ended Nine Months Ended

2025 September 30

2024 September 30

2025 September 30

Three Months Ended

2026 March 31

(Dollars in thousands)

Non-performing assets beginning balance $ 85,657 $ 101,529

Enterprise non-performing assets at July 1, 2025 24,487 — 24,487 —

New to non-performing 24,714 41,777

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Loans paid-off (5,272) (10,932)

Loans transferred to other real estate owned and foreclosed assets — — (2,100) —

Loans restored to performing status (608) (1,356)

New to other real estate owned — — 2,100 —

Other 28 (125)

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The allowance is increased by providing for credit losses through a charge to expense and by credits for recoveries of loans previously charged-off and is reduced by loans being charged-off.

In accordance with its Allowance for Credit Losses Program, the Company uses the Current Expected Credit Losses (or “CECL”) model methodology to estimate credit losses for financial assets on a collective basis for loans sharing similar risk characteristics using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output.

In accordance with its Allowance for Credit Losses Program, the Company uses the CECL model methodology to estimate credit losses for financial assets on a collective basis for loans sharing similar risk characteristics using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output.

The model estimates expected credit losses using loan level data over the contractual life of the exposure, which is adjusted for estimated prepayments.

Economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period of 12 months, beyond which is a reversion to

the Company’s historical long-run average over a period of six months.

Economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period of 12 months, beyond which is a reversion to the Company’s historical long-run average over a period of six months.

The Company’s qualitative assessment is structured based upon nine qualitative risk factors impacting the expected risk of loss within the loan portfolio, with an additional factor designed to capture model imprecision.

Loans that do not share similar risk characteristics with any pools of assets are subject to individual assessment and are removed from the collectively assessed pools to avoid double counting.

For the loans that will be individually assessed, the Company uses either a discounted cash flow approach or a fair value of collateral approach.

For the loans that will be individually assessed,

the Company uses either a discounted cash flow approach or a fair value of collateral approach.

The latter approach is used for loans deemed to be collateral dependent or when foreclosure is probable.

Management’s allowance for credit loss estimate inco rporates an economic forecast over a reasonable and supportable period of 12 months.

As of September 30, 2025, management utilized the Moody’s Baseline forecast to estimate the effect of anticipated current and future economic conditions on the Company’s allowance for credit losses.

This scenario selected by management assumes that general economic conditions will reflect a slight increase in momentum in the near term, that monetary policy will be impacted by a gradual reduction in Federal Reserve policy rates, and that progress toward inflation will be slowed as a result of changes in international trade policies.

A dditionally, the allowance for credit losses is qualitatively adjusted on a quarterly basis in order to ensure coverage for relationships that are deemed to be more at risk within certain industries, specific collateral types, or other specific characteristics that may be highly impacted by the current economic environment.

The allowance for credit losses of $190.5 million at September 30,2025 represents an increase of $20.5 million, or 12.1% compared to December 31, 2024, driven primarily by $43.5 million in initial allowance reserves recorded on the acquired Enterprise loan portfolio, including $34.5 million and $9.0 million attributable to non-PCD and PCD loans, respectively.

As of March 31, 2026, management utilized the Moody’s S6 forecast to estimate the effect of anticipated current and future economic conditions on the Company’s allowance for credit losses.

This scenario selected by management assumes, among other things, a temporary but significant increase in oil prices related to the ongoing conflict in Iran, which in turn may lead to higher inflation, reduced economic growth, and greater uncertainty surrounding monetary policy changes implemented by the Federal Reserve.

Additionally, the allowance for credit losses is qualitatively adjusted on a quarterly basis in order to ensure coverage for relationships that are deemed to be more at risk within certain industries, specific collateral types, or other specific characteristics that may be highly impacted by the current economic environment.

The allowance for credit losses of $190.6 million at March 31, 2026 represents an increase of $683,000, or 0.4%, compared to December 31, 2025, driven by provision for credit losses of $5.5 million, offset by net charge-offs of $4.8 million.

The following table summarizes the ratio of net charge-offs to average loans outstanding within each major loan category for the periods presented:

Table 6 - Summary of Net Charge-Offs/(Recoveries) to Average Loans Outstanding

Net Charge-Offs/(Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans Net Charge-Offs Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans

Net Charge-Offs/(Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans

(Dollars in thousands)

Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Commercial and industrial $ 311 $ 4,605,582 0.03 %

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Other consumer (1)

484 43,789 4.48 %

Total $ 4,817 $ 18,450,664 0.11 %

Net Charge-Offs/(Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans Net Charge-Offs/ (Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs/(Recoveries) to Average Loans

Net Charge-Offs/(Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans

(Dollars in thousands)

Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Commercial and industrial $ 152 $ 3,250,960 0.02 %

4 unchanged sentences

Other consumer (1)

666 38,618 6.99 %

Total $ 40,892 $ 14,484,149 1.14 %

(1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances and the associated net charge-offs.

Net charge-offs were $1.8 million and $49.2 million for the three and nine months ended September 30, 2025, respectively, compared to $6.7 million and $7.3 million for the three and nine months ended September 30, 2024, respectively.

The elevated charge-off activity for the nine months ended September 30, 2025 was primarily attributable to charge-offs on three classified commercial loans recognized in the first quarter of 2025.

Net charge-offs were $4.8 million for the three months ended March 31, 2026, as compared to $40.9 million for the three months ended March 31, 2025 .

The elevated charge-off activity in the prior year was primarily attributable to three isolated classified commercial loans.

For purposes of the allowance for credit losses, management segregates the portfolio based upon loans sharing similar risk characteristics.

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The Company views the holdings as a necessary long-term investment for the purpose of balance sheet liquidity and not for investment return.

The Company’s investments in FHLB of Boston stock decreased to $21.8 million at September 30, 2025 from $31.6 million at December 31, 2024 in conjunction with paydowns of FHLB term borrowings during the first nine months of 2025, including the paydown of approximately $50.0 million of FHLB borrowings assumed from the Enterprise acquisition during the third quarter.

Goodwill and Other Intangible Assets Goodwill and other intangible assets were $1.2 billion and $997.4 million at September 30, 2025 and December 31, 2024, respectively, with the 2025 increase attributable to the Enterprise acquisition, partially offset by amortization of definite-lived intangibles.

The Company’s investments in FHLB of Boston stock decreased to $17.8 million at March 31, 2026 from $21.8 million at December 31, 2025 in conjunction with net paydowns of FHLB term borrowings during the first quarter of 2026.

Goodwill and Other Intangible Assets Goodwill and other intangible assets were $1.2 billion at both March 31, 2026 and December 31, 2025.

The Company typically performs its annual goodwill impairment testing during the third quarter of the year, unless certain indicators suggest earlier testing to be warranted.

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Other intangible assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

There were no other events or changes during the third quarter of 2025 that indicated impairment of goodwill and other intangible assets.

There were no other events or changes during the first quarter of 2026 that indicated impairment of goodwill and other intangible assets.

Cash Surrender Value of Life Insurance Policies The Bank holds life insurance policies for the purpose of offsetting its future obligations to its employees under its retirement and benefits plans.

The cash surrender value of life insurance policies was $376.2 million at September 30, 2025 compared to $304.0 million at December 31, 2024, reflecting approximately $68.4 million of policies obtained from the Enterprise acquisition.

The Company recorded tax exempt income from life insurance policies of $2.6 million and $2.0 million for the three months ended September 30, 2025 and 2024, respectively, and $6.7 million and $5.9 million for the nine months ended September 30, 2025 and 2024, respectively.

The Company recorded no gains on life insurance benefits for the three months ended September 30, 2025 and September 30, 2024, respectively, and $1.7 million and $263,000 for the nine months ended September 30, 2025 and September 30, 2024, respectively.

Deposits As of September 30, 2025, total deposits were $20.3 billion, representing a $5.0 billion, or 32.6%, increase from December 31, 2024.

Total non-interest bearing demand deposits comprised 27.8% of total deposits at September 30, 2025, remaining relatively consistent with 28.7% at December 31, 2024.

The total cost of deposits was 1.58% and 1.74% for the three months ended September 30, 2025 and 2024, respectively, and 1.56% and 1.62% for the nine months ended September 30, 2025 and 2024, respectively.

The cash surrender value of life insurance policies was $380.4 million at March 31, 2026 compared to $378.6 million at December 31, 2025.

The Company recorded tax exempt income from life insurance policies of $2.7 million and $2.1 million for the three months ended March 31, 2026 and 2025, respectively.

The Company recorded $346,000 in gains on life insurance benefits for the three months ended March 31, 2026 and no such gains were recorded for the three months ended March 31, 2025.

Deposits As of March 31, 2026, total deposits were $20.1 billion, representing a decrease of $29.3 million, or 0.1%, from December 31, 2025, driven primarily by seasonal outflows in business operating accounts.

Total non-interest bearing demand deposits comprised 28.0% of total deposits at March 31, 2026, as compared with 27.8% at December 31, 2025.

The total cost of deposits was 1.36% and 1.56% for the three months ended March 31, 2026 and 2025, respectively.

The Company’s deposits are comprised primarily of core deposits (demand, savings and money market), as well as time deposits.

The 2025 growth in deposit balances was driven primarily by $4.4 billion in balances acquired from Enterprise, as well as solid organic growth of $627.2 million, or 3.2%, during the first nine months of 2025.

The Company’s ratio of core deposits to total deposits represented 83.1% of total deposits at September 30, 2025, compared to 81.7% of total deposits at December 31, 2024.

In addition, the Company may also utilize brokered deposit sources, as needed, with balances of $6.4 million and $61.2 million outstanding at September 30, 2025 and December 31, 2024, respectively .

The decrease in brokered deposits was due to the third quarter 2025 maturity of $50.0 million in brokered certificates acquired from Enterprise.

The Company’s ratio of core deposits, inclusive of reciprocal money market deposits, to total deposits represented 83.8% of total deposits at March 31, 2026, compared to 83.7% of total deposits at December 31, 2025.

In addition, the Company may also utilize brokered deposit sources, as needed, with balances of $6.0 million outstanding at both March 31, 2026 and December 31, 2025 .

The Company’s deposit accounts are insured to the maximum extent permitted by the Deposit Insurance Fund which is administered by the Federal Deposit Insurance Corporation ( “ FDIC”).

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The Company participates in the IntraFi Network, allowing it to provide easy access to multi-million dollar FDIC deposit insurance protection on certificate of deposit and money market investments for consumers, businesses and public entities.

This channel allows the Company to access a reciprocal deposit exchange that can be used to benefit customers seeking increased FDIC insurance protection, and amounted to $2.2 billion and $1.1 billion at September 30, 2025 and December 31, 2024, respectively, with the increase attributable to reciprocal deposit balances acquired from Enterprise.

The estimated balances of uninsured deposits at the Bank were $6.7 billion and $5.0 billion as of September 30, 2025 and December 31, 2024, respectively.

Included in these amounts were $893.9 million and $814.0 million of collateralized deposits, which offer additional protection.

Excluding the effects of the Enterprise acquisition, the Company’s deposits have increased on an organic basis as compared to the prior year end.

The table below summarizes these organic growth/decline by category for the period indicated:

Table 9 - Components of Deposit Growth/(Decline)

2025 December 31

2024 Enterprise Bancorp Acquisition Organic Growth/(Decline) Organic Growth/ (Decline)%

(Dollars in thousands)

Non-interest-bearing demand deposits $ 5,635,911 $ 4,390,703 $ 1,040,758 $ 204,450 3.76 %

Savings and interest checking 7,111,570 5,207,548 1,766,463 137,559 1.97 %

Money market 4,128,400 2,960,381 815,532 352,487 9.34 %

Time certificates of deposits 3,419,988 2,747,346 739,957 (67,315) (1.93) %

Total $ 20,295,869 $ 15,305,978 $ 4,362,710 $ 627,181 3.19 %

This channel allows the Company to access a reciprocal deposit exchange that can be used to benefit customers seeking increased FDIC insurance protection, and amounted to $2.1 billion and $2.2 billion at March 31, 2026 and December 31, 2025.

The estimated balances of uninsured deposits at the Bank were $6.5 billion at both March 31, 2026 and December 31, 2025.

Included in these amounts were $971.4 million and $932.0 million of collateralized deposits at March 31, 2026 and December 31, 2025, respectively, which offer additional protection.

Borrowings The Company’s borrowings consist of both short-term and long-term borrowings and provide the Bank with one of its primary sources of funding.

Maintaining available borrowing capacity provides the Bank with a contingent source of liquidity.

Borrowings were $775.4 million at September 30, 2025, representing an increase of $74.0 million, or 10.6%, as compared to December 31, 2024.

The increase was driven by a $300.0 million subordinated debt raise completed by the Company in March 2025, partially offset by $287.0 million in paydowns on FHLB borrowings during the nine months ended September 30, 2025, including the paydown of approximately $50.0 million in FHLB borrowings acquired from Enterprise.

Additionally, at the July 15, 2025 call date, the Company redeemed in full $60.0 million in subordinated notes assumed as part of the Enterprise merger.

Refer to Note 6, “Borrowings” within the Notes to Consolidated Financial Statements included in Part I.

Item 1 of this Report, for further details surrounding the subordinated debt.

The Company had $10.0 billion and $8.7 billion of assets pledged as collateral against borrowings at September 30, 2025 and December 31, 2024, respectively.

Borrowings were $776.3 million at March 31, 2026, representing a decrease of $49.6 million, or 6.0%, as compared to December 31, 2025, reflecting approximately $100 million in net paydowns on FHLB borrowings, partially offset by $50 million advanced on a working capital line of credit during the first quarter of 2026.

The Company had $13.3 billion and $12.9 billion of assets pledged as collateral against borrowings at March 31, 2026 and December 31, 2025, respectively.

These assets are primarily pledged to the FHLB of Boston and the Federal Reserve Bank of Boston.

Capital Resources On September 18, 2025 the Company’s Board of Directors declared a cash dividend of $ 0.59 per share to shareholders of record as of the close of business on September 29, 2025.

This dividend was paid on October 7, 2025.

Capital Resources On March 19, 2026 the Company’s Board of Directors declared a cash dividend of $ 0.64 per share to shareholders of record as of the close of business on March 30, 2026.

This dividend was paid on April 9, 2026.

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies.

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The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total, Tier 1 Capital and Common Equity Tier 1 Capital (as defined for regulatory purposes) to risk weighted assets (as defined for regulatory purposes) and Tier 1 Capital to average assets (as defined for regulatory purposes).

(as defined for regulatory purposes) to risk weighted assets (as defined for regulatory purposes) and Tier 1 Capital to average assets (as defined for regulatory purposes).

Total capital consists of Tier 1 Capital and Tier 2 Capital, as defined in the regulations.

Tier 2 capital includes the permissible portions of qualifying subordinated debt, trust preferred securities, and the allowance for credit losses.

At September 30, 2025 and December 31, 2024, the Company and the Bank exceeded the minimum requirements for all applicable ratios that were in effect during the respective periods.

At March 31, 2026 and December 31, 2025, the Company and the Bank exceeded the minimum requirements for all applicable ratios that were in effect during the respective periods.

The Company’s and the Bank’s capital amounts and ratios are presented in the following table, along with the applicable minimum requirements as of each date indicated:

3 unchanged sentences

Amount Ratio Amount Ratio Amount Ratio

September 30, 2025

March 31, 2026

(Dollars in thousands)

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The required amount of the capital conservation buffer is 2.5%.

At September 30, 2025, the Company’s capital levels exceeded the buffer.

At March 31, 2026, the Company’s capital levels exceeded the buffer.

Dividend Restrictions The Company is subject to capital and dividend requirements administered by federal and state bank regulators, and the Company will not declare a cash dividend that would cause the Company to violate regulatory requirements.

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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 totaled $29.4 million and $45.3 million for the three months ended September 30, 2025 and 2024, respectively, and totaled $79.7 million and $138.5 million for the nine months ended September 30, 2025 and 2024, respectively.

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 totaled $62.4 million and $36.1 million for the three months ended March 31, 2026 and 2025, respectively.

Investment Management The following table presents total assets under administration and number of accounts held by the Rockland Trust Investment Management Group at the following dates:

1 unchanged sentence

2026 December 31

2024 September 30

2025 March 31

(Dollars in thousands)

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The Bank receives fees dependent upon the level and type of service(s) provided.

The Investment Management Group generated gross fee revenues of $12.4 million and $9.7 million for the three months ended September 30, 2025 and 2024, respectively and $32.7 million and $28.4 million for the nine months ended September 30, 2025 and 2024, respectively.

Total assets under administration at September 30, 2025 were $9.2 billion, including $461.1 million of investment solutions designed by Rockland Trust that are administered and executed through its agreement with LPL Financial ( “ LPL”), compared to $7.0 billion and $418.2 million, respectively, at December 31, 2024.

The Investment Management Group generated gross fee revenues of $12.8 million and $10.0 million for the three months ended March 31, 2026 and 2025.

Total assets under administration at both March 31, 2026 and December 31, 2025 were $9.2 billion, which included $444.8 million and $444.3 million, respectively, of investment solutions designed by Rockland Trust that are administered and executed through its agreement with LPL Financial ( “ LPL”).

The Company also has a subsidiary that is a registered investment advisor, Bright Rock Capital Management, LLC ( “ Bright Rock”), which provides institutional quality investment management services to both institutional and high net worth clients.

Total assets under administration as of September 30, 2025 and December 31, 2024 include $514.2 million and $491.5 million, respectively, related to Bright Rock.

Total assets under administration as of March 31, 2026 and December 31, 2025 include $510.2 million and $520.5 million, respectively, related to Bright Rock.

The administration of trust and fiduciary accounts is monitored by the Trust Committee of the Bank’s Board of Directors.

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These same agents are also approved and appointed with various other broker general agents for the purposes of processing insurance solutions for clients.

Retail investments and insurance revenue was $1.3 million and $1.4 million for the three months ended September 30, 2025 and 2024, respectively, and $3.5 million and $3.6 million for the nine months ended September 30, 2025 and 2024, respectively.

Retail investments and insurance revenue was $1.3 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively.

RESULTS OF OPERATIONS

The following table provides a summary of results of operations for the three and nine months ended September 30, 2025 and 2024:

The following table provides a summary of results of operations for the periods presented:

Table 10 - Summary of Results of Operations

Three Months Ended September 30 Nine Months Ended September 30

2025 2024 2025 2024

Three Months Ended March 31

(Dollars in thousands, except per share data)

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Net Interest Income The amount of net interest income is affected by changes in interest rates and by the volume, mix, and interest rate sensitivity of interest-earning assets and interest-bearing liabilities.

On a fully tax equivalent basis (“FTE”), net interest income for the third quarter of 2025 was $204.7 million, representing an increase of $61.8 million, or 43.3%, when compared to the third quarter of 2024.

For the nine months ended September 30, 2025, net interest income on a FTE basis was $500.0 million, representing an increase of $79.4 million, or 18.9%, when compared to the nine months ended September 30, 2024.

The 2025 increase in net interest income was primarily attributable to increased average interest earning assets obtained from the Enterprise acquisition, as well as higher yields on interest earning assets, which were positively impacted by the accretion of purchase accounting marks from the Enterprise acquisition, and decreased funding costs.

These factors resulted in a net interest margin of 3.62% and 3.49% for the three and nine months ended September 30, 2025, respectively, representing increases of 33 basis points and 23 basis points, respectively, compared to the same prior year periods.

The following tables present the Company’s average balances, net interest income, interest rate spread, and net interest margin for the three and nine months ended September 30, 2025 and 2024.

On a fully tax equivalent basis (“FTE”), net interest income for the first quarter of 2026 was $213.9 million, representing an increase of $67.3 million, or 45.9%, when compared to the first quarter of 2025.

The first quarter 2026 increase in net interest income was primarily attributable to increased average interest earning assets obtained from the July 2025 acquisition of Enterprise, as well a higher yields on interest earning assets, which were positively impacted by the accretion of purchase accounting marks from the Enterprise acquisition, and decreased funding costs.

These factors resulted in a net interest margin of 3.90% for the three months ended March 31, 2026, representing an increase of 48 basis points compared to the same prior year period.

The following tables present the Company’s average balances, net interest income, interest rate spread, and net interest margin for the three months ended March 31, 2026 and 2025.

Non-taxable income from loans and securities is presented on a FTE basis by adjusting tax-exempt income upward by an amount equivalent to the prevailing income tax rate that would have been paid if the income had been fully taxable.

Table 11 - Average Balance, Interest Earned/Paid & Average Yields Quarter-to-Date

Three Months Ended September 30

Three Months Ended March 31

Balance Interest

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Securities - non-taxable investments (1)

11,634 144 5.02 % 195 1 2.08 %

Total securities $ 3,341,995 $ 25,404 3.08 % $ 2,751,747 $ 15,297 2.25 %

1 unchanged sentence

Commercial and industrial (1)

4,605,582 70,426 6.20 % 3,250,960 50,895 6.35 %

Commercial real estate (1)

8,240,241 112,466 5.54 % 6,804,605 86,086 5.13 %

Commercial construction (1)

1,404,278 23,926 6.91 % 785,312 13,167 6.80 %

Total commercial 14,250,101 206,818 5.89 % 10,840,877 150,147 5.62 %

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Federal Home Loan Bank and other borrowings $ 380,062 $ 3,596 3.84 % $ 547,713 $ 5,566 4.12 %

Line of credit 54,404 755 5.63 % — — — %

Junior subordinated debentures 62,863 874 5.64 % 62,860 974 6.28 %

8 unchanged sentences

Net interest income (1)

$ 213,921 $ 146,642

Interest rate spread (2)

3.25 % 2.68 %

Net interest margin (4)

3.90 % 3.42 %

Supplemental information

3 unchanged sentences

Cost of total funding liabilities 1.52 % 1.67 %

(1) The total amount of adjustment to present interest income and yield on a FTE basis was $1.4 million and $1.2 million for the three months ended September 30, 2025 and 2024, respectively.

(2) Includes average nonaccruing loans.

(3) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(4) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

Table 14 - Average Balance, Interest Earned/Paid & Average Yields Year-to-Date

Nine Months Ended September 30

Balance Interest

(Dollars in thousands)

Interest-earning assets

Interest-earning deposits with banks, federal funds sold, and short-term investments $ 413,974 $ 13,076 4.22 % $ 76,199 $ 2,515 4.41 %

Securities - trading 4,641 — — % 4,627 — — %

Securities - taxable investments 2,914,567 54,478 2.50 % 2,807,287 42,287 2.01 %

Securities - non-taxable investments (1) 11,858 266 3.00 % 191 5 3.50 %

Total securities $ 2,931,066 $ 54,744 2.50 % $ 2,812,105 $ 42,292 2.01 %

Loans held for sale 10,656 457 5.73 % 11,651 530 6.08 %

Commercial and industrial (1) 3,704,506 173,050 6.25 % 3,166,270 146,867 6.20 %

Commercial real estate (1) 7,254,708 286,037 5.27 % 6,805,910 265,161 5.20 %

Commercial construction (1) 1,016,344 51,683 6.80 % 808,570 44,650 7.38 %

Total commercial 11,975,558 510,770 5.70 % 10,780,750 456,678 5.66 %

Residential real estate 2,618,320 90,608 4.63 % 2,429,963 79,472 4.37 %

Home equity 1,192,583 57,091 6.40 % 1,109,245 56,642 6.82 %

Total consumer real estate 3,810,903 147,699 5.18 % 3,539,208 136,114 5.14 %

Other consumer 38,406 1,819 6.33 % 32,350 1,867 7.71 %

Total loans $ 15,824,867 $ 660,288 5.58 % $ 14,352,308 $ 594,659 5.53 %

Total interest-earning assets $ 19,180,563 $ 728,565 5.08 % $ 17,252,263 $ 639,996 4.96 %

Cash and due from banks 202,833 179,414

Federal Home Loan Bank stock 24,231 39,576

Other assets 1,990,792 1,841,696

Total assets $ 21,398,419 $ 19,312,949

Interest-bearing liabilities

Savings and interest checking accounts $ 5,800,879 $ 51,642 1.19 % $ 5,165,252 $ 49,163 1.27 %

Money market 3,540,466 66,819 2.52 % 2,917,693 52,386 2.40 %

Time deposits 2,967,856 81,557 3.67 % 2,539,915 81,225 4.27 %

Total interest-bearing deposits $ 12,309,201 $ 200,018 2.17 % $ 10,622,860 $ 182,774 2.30 %

Federal Home Loan Bank and other borrowings $ 464,910 $ 13,745 3.95 % $ 920,781 $ 32,652 4.74 %

Junior subordinated debentures 62,861 2,931 6.23 % 62,859 3,431 7.29 %

Subordinated debentures 209,275 11,826 7.56 % 13,501 508 5.03 %

Total borrowings $ 737,046 $ 28,502 5.17 % $ 997,141 $ 36,591 4.90 %

Total interest-bearing liabilities $ 13,046,247 $ 228,520 2.34 % $ 11,620,001 $ 219,365 2.52 %

Non-interest bearing demand deposits 4,810,799 4,414,392

Other liabilities 320,237 354,038

Total liabilities $ 18,177,283 $ 16,388,431

Stockholders’ equity 3,221,136 2,924,518

Total liabilities and stockholders’ equity $ 21,398,419 $ 19,312,949

Net interest income (1) $ 500,045 $ 420,631

Interest rate spread (3) 2.74 % 2.44 %

Net interest margin (4) 3.49 % 3.26 %

Supplemental information

Total deposit, including demand deposits $ 17,120,000 $ 200,018 $ 15,037,252 $ 182,774

Cost of total deposits 1.56 % 1.62 %

Total funding liabilities, including demand deposits $ 17,857,046 $ 228,520 $ 16,034,393 $ 219,365

Cost of total funding liabilities 1.71 % 1.83 %

(1) The total amount of adjustment to present interest income and yield on a FTE basis was $3.7 million and $3.6 million for the nine months ended September 30, 2025 and 2024, respectively.

(1) The total amount of adjustment to present interest income and yield on a FTE basis was $1.5 million and $1.1 million for the three months ended March 31, 2026 and 2025, respectively.

(2) Includes average non-accruing loans.

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Table 12 - Volume Rate Analysis

Three Months Ended September 30 Nine Months Ended September 30

2025 Compared To 2024 2025 Compared To 2024

Volume Total Change Change

Three Months Ended March 31

2026 Compared To 2025

Volume Total Change

7 unchanged sentences

Commercial and industrial (1)

(1,676) 21,207 19,531

Commercial real estate (1)

8,218 18,162 26,380

Commercial construction 381 10,378 10,759

12 unchanged sentences

Federal Home Loan Bank and other borrowings (266) (1,704) (1,970)

Line of Credit 755 — 755

Junior subordinated debentures (100) — (100)

4 unchanged sentences

(1) Reflects income determined on a FTE basis.

See footnote (1) to Tables 13 and 14 in this Report for the related adjustments.

See footnote (1) to Table 11 in this Report for the related adjustments.

(2) Loans include portfolio loans and non-accrual loans;

however, unpaid interest on non-accrual loans has not been included for purposes of determining interest income.

Provision For Credit Losses The provision for credit losses represents the charge to expense that is required to maintain an appropriate level of allowance for credit losses.

The Company recorded a provision for credit loss of $38.5 million and $60.7 million for the three and nine months ended September 30, 2025, respectively, as compared to $19.5 million and $28.8 million for the three and nine months ended September 30, 2024, respectively.

The increase in the current periods includes the $34.5 million related to non-PCD loans acquired from Enterprise.

The Company’s allowance for credit losses, as a percentage of total loans, was 1.03% at September 30, 2025, 1.17% at December 31, 2024, and 1.14% at September 30, 2024.

The decrease from the prior periods is due to charge-offs taken on loans that were specifically reserved for at those periods.

Provision For Credit Losses The provision for credit losses represents the charge to expense that is required to maintain an adequate level of allowance for credit losses.

The Company recorded a provision for credit loss of $5.5 million for the three months ended March 31, 2026, as compared to $15.0 million for the three months ended March 31, 2025, reflecting lower levels of charge-off activity and specific reserve allocations.

The Company’s allowance for credit losses, as a percentage of total loans, was 1.03% at both March 31, 2026 and December 31, 2025 and 0.99% at March 31, 2025.

Refer to Note 4, “Loans, Allowance for Credit Losses and Credit Quality” within the Notes to Consolidated Financial Statements included in Part I.

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Three Months Ended

September 30 Change

March 31 Change

2026 2025 Amount %

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Increase in cash surrender value of life insurance policies 2,712 2,065 647 31.33 %

Loan level derivative income 1,224 1,125 99 8.80 %

Other non-interest income 6,613 6,664 (51) (0.77) %

Total $ 40,398 $ 33,549 $ 6,849 20.41 %

Nine Months Ended

September 30 Change

2025 2024 Amount %

(Dollars in thousands)

Deposit account fees $ 23,041 $ 19,339 $ 3,702 19.14 %

Interchange and ATM fees 15,608 14,175 1,433 10.11 %

Investment management 36,252 31,961 4,291 13.43 %

Mortgage banking income 3,257 3,088 169 5.47 %

Increase in cash surrender value of life insurance policies 6,732 5,934 798 13.45 %

Gain on life insurance benefits 346 — 346 100.00%

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• Deposit account fees were higher as a result of increases in overdraft and cash management fees, as well as increased volume attributable to the Enterprise acquisition.

• Interchange and ATM fees were higher primarily attributable to increased volume due to the Enterprise acquisition.

• The increase in investment management and advisory income is primarily attributable to higher asset-based revenue resulting from higher levels of assets under administration, which increased by $2.1 billion, or 28.8%, to $9.2 billion at

September 30, 2025, as compared to $7.2 billion at September 30, 2024, including the addition of $1.5 billion in assets under administration acquired from Enterprise.

These increases were partially offset by lower insurance commission income for the three and nine months ended September 30, 2025, as compared to the same prior year periods.

• Mortgage banking income increased driven by higher origination volume as compared to the same prior year periods.

• Interchange and ATM fees were higher primarily due to increased volume due to the Enterprise acquisition.

• Mortgage banking income increased, driven by increased origination volumes and a higher ratio of new originations sold in the secondary market versus held in portfolio as to the same prior year period.

• The increase in investment management and advisory income was primarily due to higher asset-based revenue attributable to higher levels of assets under administration, which increased by $2.1 billion, or 29.2%, to $9.2 billion at March 31, 2026, as compared to $7.1 billion at March 31, 2025, including the addition of $1.5 billion in assets under administration acquired from Enterprise on July 1, 2025.

The Company also generated higher insurance commission income during the first quarter of 2026, as compared to the same prior year period.

• The increases in cash surrender value of life insurance policies were primarily attributable to policies obtained in connection with the Enterprise acquisition.

• The Company received proceeds on life insurance policies resulting in a gain of $1.7 million during the nine months ended September 30, 2025 compared to $263,000 during the nine months ended September 30, 2024.

No such gains were recorded during the third quarter of 2025 or 2024.

• Loan level derivative income increased for the three and nine months ended September 30, 2025 when compared to the same respective periods in 2024, driven primarily by fluctuations in customer demand resulting from changes in the macroeconomic environment.

• Other non-interest income for the third quarter of 2025 remained consistent with the third quarter of 2024, and decreased for the nine months ended September 30, 2025, as compared to the same prior year period, primarily attributable to decreases in FHLB dividend income of $1.1 million, decreased unrealized gain on equity securities of $613,000, and decreased realized gains on equity securities of $501,000.

These decreases were partially offset by increases in credit card fee income of $327,000 and annual fees on commercial lines of credit of $230,000.

Non-Interest Expense The following table sets forth information regarding noninterest expense for the periods shown:

• The Company received proceeds on life insurance policies resulting in a gain of $346,000 during the three months ended March 31, 2026.

No such gains were recorded during the first quarter of 2025.

• Other non-interest income increased, driven primarily by increases in income from other investments of $442,000, credit card fee income of $227,000, and payment processing income of $219,000.

Non-Interest Expense The following table sets forth information regarding non-interest expense for the periods shown:

Table 14 - Non-Interest Expense

Three Months Ended

September 30 Change

2025 2024 Amount %

(Dollars in thousands)

Salaries and employee benefits $ 81,132 $ 60,108 $ 21,024 34.98 %

Occupancy and equipment expenses 14,975 12,734 2,241 17.60 %

Data processing & facilities management 2,788 2,510 278 11.08 %

Software and subscriptions 6,854 4,736 2,118 44.72 %

FDIC assessment 3,080 2,628 452 17.20 %

Amortization of intangible assets 7,315 1,460 5,855 401.03 %

Merger and acquisition expenses 23,893 — 23,893 100.00%

Other non-interest expenses 20,799 16,267 4,532 27.86 %

Total $ 160,836 $ 100,443 $ 60,393 60.13 %

Nine Months Ended

September 30 Change

March 31 Change

2026 2025 Amount %

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FDIC assessment 3,328 2,988 340 11.38 %

Debit card expense 2,402 1,935 467 24.13 %

Amortization of intangible assets 6,890 1,344 5,546 412.65 %

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The primary reasons for significant variances in the non-interest expense categories shown in the preceding table are noted below:

• Salaries and employee benefits were higher, driven primarily by increases in general salaries, payroll taxes, medical plan insurance, and incentives, including the impact of an expanded employee base as a result of the Enterprise acquisition.

• Occupancy and equipment costs increased, primarily attributable to the expanded branch network, real estate and other fixed assets obtained from the Enterprise acquisition.

• Data processing increases reflect overall increased levels of transactional activity in conjunction with the Company’s growth, including due to the Enterprise acquisition.

• Salaries and employee benefits were higher, driven primarily by increases in general salaries of $11.3 million, including the impact of an expanded employee base as a result of the Enterprise acquisition, as well as increases in medical plan insurance of $2.2 million, incentive programs of $2.9 million, payroll taxes of $947,000, and commissions of $591,000.

• Occupancy and equipment costs increased, primarily attributable to the expanded branch network, real estate and other fixed assets obtained from the Enterprise acquisition, as well as a $1.2 million increase in snow removal costs compared to the first quarter of 2025.

• Data processing and facilities management costs increased, reflecting higher overall levels of transactional activity in conjunction with the Company’s growth, including due to the Enterprise acquisition.

• Software and subscriptions costs increased, driven by the Company’s continued investment in its technology infrastructure.

• FDIC assessment expense increased in comparison to the prior year, primarily attributable to an increased assessment rate following the Enterprise acquisition.

• Debit card expense increased compared to the same period prior year driven primarily by increased transaction volume attributable to the Enterprise acquisition.

• Amortization of intangible assets increased, driven by increased amortization attributable to the core deposit intangible, customer list, and other intangible assets established as part of the Enterprise acquisition.

• The Company incurred merger and acquisition expenses of $23.9 million and $27.3 million for the three and nine months ended September 30, 2025, respectively, related to the Company’s acquisition of Enterprise.

of the merger expenses related to change in control and severance contracts, vendor and systems contract terminations, as well as legal and professional fees.

No such costs were recognized during the same respective periods in 2024.

• For the three months ended September 30, 2025, other non-interest expense increased primarily attributable to increases in debit card expense of $1.5 million, check losses of $440,000, sponsorships of $321,000, director fees of $303,000, consultant fees of $301,000, telecommunications costs of $272,000, card issuance costs of $267,000, and legal fees of $237,000.

For the nine months ended September 30, 2025, other non-interest expense increased mainly due to increases in debit card expense of $1.4 million, contract labor of $487,000, loan workout costs of $422,000, internet banking expense of $413,000, sponsorships of $407,000, and telecommunications of $375,000, partially offset by decreases in consultant fees of approximately $1.0 million.

• The Company incurred merger and acquisition expenses of $3.0 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively, related to the Company’s acquisition of Enterprise.

Merger-related expenses were primarily attributable to severance contracts and legal fees for first quarters of 2026 and 2025, respectively.

• Other non-interest expense increased, primarily attributable to increases in consultant fees of $880,000, check fraud losses of $537,000, state-charter assessments of $483,000, loan workout costs of $364,000, internet banking expense of $344,000, appraisals of $255,000, and advertising expense of $234,000.

Income Taxes The tax effect of all income and expense transactions is recognized by the Company in each year’s consolidated statements of income, regardless of the year in which the transactions are reported for income tax purposes.

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Table 15 - Tax Provision and Applicable Tax Rates

Three Months Ended Nine Months Ended

September 30 September 30

2025 2024 2025 2024

Three Months Ended

(Dollars in thousands)

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Blended statutory tax rate 27.47 % 27.37 %

The Company’s effective tax rate for the third quarter of 2025 is consistent with the year ago periods.

The effective tax rate is impacted by pre-tax income levels, a decrease in the statutory state tax rate, as well as increased tax benefits from low income housing tax credits.

The effective tax rates in the table are lower than the blended statutory tax rates due to the impact of discrete items, including tax benefits related to equity compensation, as well as certain tax preference assets such as life insurance policies, tax exempt bonds and federal tax credits.

The effective tax rate is largely impacted by pre-tax income levels.

The Company invests in various low income housing projects, which are real estate limited partnerships that acquire, develop, own and operate low and moderate-income housing developments.

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The investments are accounted for using the proportional amortization method and will be amortized over various periods through 2042, which represents the period that the tax credits and other tax benefits will be utilized.

The total committed investment in these partnerships is $305.7 million, of which $229.6 million had been funded as of September 30, 2025.

The total committed investment in these partnerships is $340.2 million, of which $245.9 million had been funded as of March 31, 2026.

It is expected that the limited partnership investments will generate a net tax benefit of approximately $6.2 million for the fiscal year 2026 and a total of $52.5 million over the remaining life of the investments from the combination of the tax credits and operating losses.

The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025.

Among other things, the new law makes permanent certain expiring business tax provisions of the Tax Cuts and Jobs Act.

Among other things, the new law makes permanent certain expiring business tax provisions of the Tax Cuts and Jobs Act of 2017.

These include provisions which allow businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets and the cost of qualified domestic research and development.

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Management is responsible for comprehensive enterprise risk management, and continually strives to adopt and implement practices that strike an appropriate balance between risk and reward and permit the achievement of strategic goals in a controlled environment.

The Company has implemented the “three lines of defense” enterprise risk management framework.

The first line of defense are the executives in charge of business units, operational areas, and corporate functions who, sometimes assisted by

management committees, teams, and working groups, own and manage risks.

The second line of defense monitors and provides risk management advice across all risk domains, and is comprised of the enterprise risk management department, with oversight from the Chief Risk Officer.

The third line of defense is independent assurance performed by the Chief Internal Auditor, who reports to the Audit Committee of the Company’s Board of Directors, and by the Company’s internal audit department.

The Board of Directors, with the assistance of its Risk Committee, oversees management’s enterprise risk management practices.

As risks must be taken to create value, the Board of Directors has approved a Risk Appetite Statement that defines the acceptable residual risk appetite for the Company and the nine major risk types identified as having the potential to create significant adverse impacts on the Company, such as financial losses, reputational damage, legal or regulatory actions, failure to achieve strategic objectives, diminished customer experience, and/or cultural erosion.

The Company has implemented the “three lines of defense” enterprise risk management model .

The first line of defense represents all operating business units, and corporate functions.

Under the purview of the Chief Risk Officer, the second line of defense monitors and provides risk management advice across all risk domains, and is comprised of Enterprise Risk Management/Operational Risk, Enterprise Compliance, and Information Security.

The activities of the second line of defense are overseen by and reported to the Board Risk Committee on a regular basis.

Under the purview of the Chief Internal Auditor, the third line of defense is the independent assurance function primarily executed by the Company’s internal audit department.

Third line of defense audit activities are overseen by and reported to the Company’s Board Audit Committee on a regular basis.

Risk management efforts are further supported and bolstered through a formal and robust risk governance structure comprised of various management level committees that are designed to identify, monitor, report and mitigate top risks faced by the Company based on its risk taxonomy as described below.

The Board of Directors, with the assistance of its Risk Committee, exercises oversight of the Company’s risk management program and practices.

or regulatory actions, failure to achieve strategic objectives, diminished customer experience, and/or cultural erosion.

The nine major risk categories identified by the Company and addressed in the Risk Appetite Statement are strategic and emerging risk, culture risk, credit risk, liquidity risk, market and interest rate risk, operational risk, reputation risk, regulatory and compliance risk, and technology and cyber risk, each of which is discussed below.

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Interest rates, economic conditions, and competitive factors greatly influence deposit levels.

The Company’s primary measure of short-term liquidity is the Total Basic Surplus/Deficit as a percentage of assets.

This ratio, which is an analysis of the relationship between liquid assets plus available FHLB funding, less short-term liabilities relative to total assets, was within policy limits at September 30, 2025.

The Total Basic Surplus/Deficit measure is affected primarily by changes in deposits, securities and short-term investments, loans, and borrowings.

An increase in deposits, without a corresponding increase in non-liquid assets, will improve the Total Basic Surplus/Deficit measure, whereas, an increase in loans, with no increase in deposits, will decrease the measure.

Other factors affecting the Total Basic Surplus/Deficit include FHLB collateral requirements, securities portfolio changes, and the mix of deposits.

The Company measures funds availability and surplus under both stress and non-stress conditions.

In addition, liquidity monitoring ensures appropriate oversight of funding exposures and reliance, as well as available capacity.

The Company continually monitors both on and off balance sheet liquidity sources to understand vulnerabilities and when adjustments to the balance between sources and uses of funds may be necessary.

Management regularly performs liquidity stress testing to assess potential liquidity outflows or funding concerns resulting from economic or industry disruptions, volatility in the financial markets, or unforeseen credit events.

The results of these scenarios are used to inform the Company’s Contingency Funding Plan and help provide the basis for its liquidity needs.

The Company prioritizes core deposits as a primary funding source and continues to maintain a variety of available liquidity sources, including FHLB advances, and Federal Reserve borrowing capacity.

These funding sources serve as a

contingent source of liquidity and, when profitable lending and investment opportunities exist, the Company may access them to provide the liquidity needed to grow the balance sheet.

These funding sources serve as a contingent source of liquidity and, when profitable lending and investment opportunities exist, the Company may access them to provide the liquidity needed to grow the balance sheet.

The amount and type of assets that the Company has available to pledge affects the Company’s FHLB and Federal Reserve borrowing capacity.

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The Company may also have the ability to raise additional funds through the issuance of equity or unsecured debt privately or publicly, as demonstrated by the $300.0 million subordinated debt issuance completed by the Company during the first quarter of 2025.

Additionally, the Company is able to enter into repurchase agreements or acquire brokered deposits at its discretion.

The availability and cost of equity or debt on an unsecured basis is dependent on many factors, including the Company’s financial position, the market environment, and the Company’s credit rating.

Additionally, the Company is able to acquire brokered certificates of deposits at its discretion.

The availability and cost of equity or debt on an unsecured basis is dependent on many factors, including the Company’s financial

position, the market environment, and the Company’s credit rating.

The Company monitors the factors that could affect its ability to raise liquidity through these channels.

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Table 16 - Liquidity Sources

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Outstanding Additional

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Federal Home Loan Bank of Boston (1)

$ 316,734 $ 3,421,976 $ 416,549 $ 2,812,217

Federal Reserve Bank of Boston (2)

— 5,634,123 — 5,472,672

Unpledged securities — 299,936 — 576,504

Lines of credit 99,969 25,000 49,953 75,000

Federal funds lines of credit — 140,000 — 140,000

Junior subordinated debentures (3)

62,863 — 62,862 —

Subordinated debt (3)

296,690 — 296,483 —

Brokered deposits (3)

6,000 — 6,000 —

(1) Loans and securities with a carrying value of $4.9 billion and $3.8 billion at of September 30, 2025 and December 31, 2024, respectively, were pledged to the FHLB of Boston.

(2) Loans and securities with a carrying value of $5.0 billion and $4.9 billion at September 30, 2025 and December 31, 2024, respectively, were pledged to the Federal Reserve Bank of Boston.

$ 782,256 $ 9,521,035 $ 831,847 $ 9,076,393

(1) Loans and securities with a carrying value of $5.0 billion and $4.5 billion as of March 31, 2026 and December 31, 2025, respectively, were pledged to the FHLB of Boston.

(2) Loans and securities with a carrying value of $8.3 billion as of both March 31, 2026 and December 31, 2025 were pledged to the Federal Reserve Bank of Boston.

(3) The additional borrowing capacity has not been assessed for these categories.

In addition to customary operational liquidity practices, the Board and management recognize the need to establish reasonable guidelines to manage a heightened liquidity risk environment.

Catalysts for elevated liquidity risk can be Company-specific issues and/or systemic industry-wide events.

Catalysts for elevated liquidity risk can be Company-specific issues and/or systemic macro-economic or industry-wide events.

Management is therefore responsible for instituting systems and controls designed to provide advanced detection of potentially significant funding shortages, establishing methods for assessing and monitoring risk levels, and instituting responses that may alleviate or circumvent a potential liquidity crisis.

Management has established a Liquidity Contingency Plan to provide a framework to detect potential liquidity problems and appropriately address them in a timely manner.

In a period of perceived heightened liquidity risk, the Liquidity Contingency Plan provides for the establishment of a Liquidity Crisis Task Force to monitor the potential for a liquidity crisis and execute an appropriate response.

The Company continually monitors both on and off balance sheet liquidity sources to understand vulnerabilities and when adjustments to the balance between sources and uses of funds may be necessary.

Management regularly performs various liquidity stress testing scenarios and other analyses to assess potential liquidity outflows or funding concerns resulting from economic or industry disruptions, volatility in the financial markets, or unforeseen credit events.

The results of these scenarios are used to inform the Company’s Liquidity Contingency Plan and help provide the basis for its liquidity needs.

Market and Interest Rate Risk Market risk refers to the risk of potential losses arising from changes in interest rates and the value of investments due to market conditions or other external factors or events.

Management has established a Contingency Funding Plan to provide a framework to detect potential liquidity problems and appropriately address them in a timely manner.

Market and Interest Rate Risk Market risk refers to the risk of potential losses arising from changes in interest rates and the value of assets due to market conditions or other external factors or events.

Interest rate risk is the most significant market risk to which the Company has exposure to due to the nature of its operations.

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Interest rate changes, as well as fluctuations in the level and duration of assets and liabilities, affect net interest income, which is the Company’s primary source of revenue.

Interest rate risk arises directly from the Company’s core banking activities.

Interest rate risk arises from the Company’s core banking activities.

In addition to directly affecting net interest income, changes in the level of interest rates can also affect the amount of loans originated, the timing of cash flows on loans and securities, and the fair value of securities and derivatives, and have other effects.

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It is the Company’s objective to maintain stability in the growth of net interest income through the maintenance of an appropriate mix of interest-earning assets and interest-bearing liabilities and, when necessary within limits management deems prudent, with hedging instruments such as interest rate swaps, floors, and caps.

The Company quantifies its interest rate exposures using net interest income simulation models, as well as simpler gap analysis, and an Economic Value of Equity analysis.

The Company quantifies its interest rate exposures using net interest income and Economic Value of Equity analysis.

Key assumptions in these analyses relate to behavior of interest rates and behavior of the Company’s deposit and loan customers.

The most material assumptions relate to the prepayment of mortgage assets (including mortgage loans and mortgage-backed securities) and the life and sensitivity of non-maturity deposits ( e.g.

The most material assumptions relate to the prepayment of loans and securities and the life and sensitivity of non-maturity deposits ( e.g.

, demand deposit, savings, and money market accounts).

In the case of prepayment of mortgage assets, assumptions are derived from published median prepayment estimates for comparable mortgage loans.

The risk of prepayment tends to increase when interest rates fall.

The risk of prepayment tends to increase when

interest rates fall.

Since future prepayment behavior of loan customers is uncertain, interest rate sensitivity of loans cannot be determined with precision and actual behavior may differ from assumptions to a significant degree.

Non-maturity deposits, assumptions over customer behavior, shifts in deposits categories, and magnitude of impact to the cost of deposits all may differ from what is currently anticipated by the models or analyses.

Non-maturity deposits, assumptions over customer behavior, shifts in deposits categories, and magnitude of impact to the cost of deposits all may differ from modeling or expectations.

Given the volatility associated with market rates, and the uncertainty surrounding future rate movements, management has continued to maintain a more neutral interest rate risk position.

The Company runs several scenarios to quantify and effectively assist in managing interest rate risk, including instantaneous parallel shifts in market rates as well as gradual (12-24 months) shifts in market rates, and may also include other alternative scenarios as management deems necessary given the interest rate environment.

The results of those scenarios are summarized in the following table:

The Company runs numerous scenarios to quantify and effectively assist in managing interest rate risk, including instantaneous parallel shifts over one and two year horizons, and a series of non-parallel shocks to evaluate the impact of different yield curve shape.

Key highlights of the Company’s net interest income sensitivity are summarized in the following table:

Table 17 - Interest Rate Sensitivity

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+200 0.4 % 2.8 %

+200 (0.7) % 2.0 %

+300 (1.0) % 3.0 %

+400 (1.3) % 4.1 %

Gradual rate shifts (basis points)

-200 over 12 months 0.1 % (1.3) %

-100 over 12 months 0.1 % (0.6) %

+200 over 12 months (0.4) % 0.9 %

Alternative scenarios

Steep down 200 basis point scenario 1.0 % (0.2) %

The results depicted in the table above are dependent on material assumptions, such as prepayment rates, decay rates, pricing decisions on loans and deposits, and other factors, which management believes are reasonable.

The results depicted in the table above are dependent on material assumptions, such as prepayment rates, betas, rates, pricing decisions on loans and deposits, and other factors, which management believes are reasonable.

These assumptions may be impacted by customer preferences or competitive influences and therefore actual experience may differ from the assumptions in the model.

Accordingly, although the tables provide an indication of the Company’s interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates, and actual results may differ.

The most significant market factors affecting the Company’s net interest income during the nine months ended September 30, 2025 were the shape of the U.S.

The most significant market factors affecting the Company’s net interest income during the three months ended March 31, 2026 were the shape of the U.S.

Government securities and interest rate swap yield curve, the U.S.

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Management seeks to mitigate technology risk through appropriate security and controls over data and its technological environment.

The Bank manages cybersecurity threats proactively and maintains robust controls to protect its critical systems and data by investing in secure, reliable and resilient technology infrastructure, fostering a culture of technology risk awareness and continuously improving its technology risk management practices.

The Bank manages cybersecurity threats proactively and maintains robust controls to protect its critical systems and information assets by investing in secure, reliable and resilient technology infrastructure, fostering a culture of technology risk awareness and continuously improving its technology risk management practices.

Contractual Obligations, Commitments, Contingencies, and Off-Balance Sheet Financial Information

Off-Balance Sheet Arrangements There were no material changes in off-balance sheet arrangements during the three months ended September 30, 2025.

Off-Balance Sheet Arrangements There were no material changes in off-balance sheet arrangements during the three months ended March 31, 2026.

See Note 6, “Derivative and Hedging Activities” and Note 10, “Commitments and Contingencies” within the Notes to Consolidated Financial Statements included in Part I.

Item 1 of this Report for more information relating to the Company’s other off-balance sheet financial instruments.

Contractual Obligations, Commitments, and Contingencies There were no material changes in contractual obligations, commitments, or contingencies during the three months ended September 30, 2025.

Contractual Obligations, Commitments, and Contingencies There were no material changes in contractual obligations, commitments, or contingencies during the three months ended March 31, 2026.

Quantitative and Qualitative Disclosures About Market Risk

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis