INDEPENDENT BANK CORP 10-Q

Item 1. Financial Statements INDEPENDENT BANK CORP. CONSOLIDATED BALANCE SHEETS (Unaudited—Dollars in thousands) March 31 2026 December 31 2025 Assets Cash and due from banks $ 223,291 $ 229,770 Interest-earning deposits with banks 505,687 542,132 Securities Trading 5,525 4,720 Equity 21,518 21,581 Available for sale (amortized cost $ 2,148,222 and $ 2,051,822 ) 2,088,365 2,004,247 Held to maturity (fair value $ 1,166,302 and $ 1,190,733 ) 1,256,566 1,279,027 Total securities 3,371,974 3,309,575 Loans held for sale (at fair value) 16,758 35,909 Loans Commercial and industrial 4,651,453 4,611,789 Commercial real estate 8,181,340 8,275,408 Commercial construction 1,403,613 1,399,193 Residential real estate 2,842,144 2,873,443 Home equity 1,307,746 1,297,662 Other consumer 39,182 46,282 Total loans 18,425,478 18,503,777 Less: allowance for credit losses ( 190,560 ) ( 189,877 ) Net loans 18,234,918 18,313,900 Federal Home Loan Bank stock 17,752 21,835 Bank premises and equipment, net 217,695 218,190 Goodwill 1,090,610 1,090,610 Other intangible assets 126,687 133,576 Cash surrender value of life insurance policies 380,423 378,576 Other assets 597,785 638,823 Total assets $ 24,783,580 $ 24,912,896 Liabilities and Stockholders' Equity Deposits Non-interest-bearing demand deposits $ 5,633,079 $ 5,600,955 Savings and interest checking accounts 6,310,870 6,482,970 Money market 4,898,267 4,774,645 Time certificates of deposit 3,255,294 3,268,220 Total deposits 20,097,510 20,126,790 Borrowings Federal Home Loan Bank and other borrowings 316,734 416,549 Line of credit (less unamortized debt issuance costs of $ 31 and $ 47 ) 99,969 49,953 Junior subordinated debentures (less unamortized debt issuance costs of $ 25 and $ 26 ) 62,863 62,862 5 Table of Contents Subordinated debentures (less unamortized debt issuance costs of $ 3,310 and $ 3,517 ) 296,690 296,483 Total borrowings 776,256 825,847 Other liabilities 367,773 394,531 Total liabilities 21,241,539 21,347,168 Commitments and contingencies — — Stockholders' equity Preferred stock, $ 0.01 par value, authorized: 1,000,000 shares, outstanding: none — — Common stock, $ 0.01 par value, authorized: 75,000,000 shares, issued and outstanding: 48,572,237 shares at March 31, 2026 and 49,243,813 shares at December 31, 2025 (includes 297,143 and 254,359 shares of unvested participating restricted stock awards, respectively) 483 490 Value of shares held in rabbi trust at cost: 77,307 shares at March 31, 2026 and 75,247 shares at December 31, 2025 ( 3,622 ) ( 3,452 ) Deferred compensation and other retirement benefit obligations 3,622 3,452 Additional paid in capital 2,272,910 2,335,879 Retained earnings 1,317,946 1,269,113 Accumulated other comprehensive loss, net of tax ( 49,298 ) ( 39,754 ) Total stockholders’ equity 3,542,041 3,565,728 Total liabilities and stockholders’ equity $ 24,783,580 $ 24,912,896 The accompanying notes are an integral part of these unaudited consolidated financial statements. 6 Table of Contents INDEPENDENT BANK CORP. CONSOLIDATED STATEMENTS OF INCOME (Unaudited—Dollars in thousands, except per share data) Three Months Ended March 31 2026 2025 Interest income Interest and fees on loans $ 260,982 $ 195,093 Taxable interest and dividends on securities 25,260 15,296 Non-taxable interest and dividends on securities 114 1 Interest on loans held for sale 252 92 Interest on federal funds sold and short-term investments 3,657 1,438 Total interest and dividend income 290,265 211,920 Interest expense Interest on deposits 66,935 59,436 Interest on borrowings 10,871 6,979 Total interest expense 77,806 66,415 Net interest income 212,459 145,505 Provision for credit losses 5,500 15,000 Net interest income after provision for credit losses 206,959 130,505 Non-interest income Deposit account fees 9,249 7,053 Interchange and ATM fees 5,018 4,622 Investment management and advisory 14,165 11,220 Mortgage banking income 1,270 741 Increase in cash surrender value of life insurance policies 2,712 2,065 Gain on life insurance benefits 346 — Loan level derivative income 910 1,042 Other non-interest income 6,592 5,796 Total non-interest income 40,262 32,539 Non-interest expenses Salaries and employee benefits 80,737 61,931 Occupancy and equipment expenses 17,306 13,859 Data processing and facilities management 3,259 2,642 Software and subscriptions 7,068 5,027 FDIC assessment 3,328 2,988 Debit card expense 2,402 1,935 Amortization of intangible assets 6,890 1,344 Merger and acquisition expense 3,024 1,155 Other non-interest expenses 18,904 14,997 Total non-interest expenses 142,918 105,878 Income before income taxes 104,303 57,166 Provision for income taxes 24,384 12,742 Net income $ 79,919 $ 44,424 Basic earnings per share $ 1.63 $ 1.04 Diluted earnings per share $ 1.63 $ 1.04 Weighted average common shares (basic) 48,970,060 42,550,274 Common share equivalents 29,685 22,353 Weighted average common shares (diluted) 48,999,745 42,572,627 Cash dividends declared per common share $ 0.64 $ 0.59 The accompanying notes are an integral part of these unaudited consolidated financial statements. 7 Table of Contents INDEPENDENT BANK CORP. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited—Dollars in thousands) Three Months Ended March 31 2026 2025 Net income $ 79,919 $ 44,424 Other comprehensive income, net of tax Net change in fair value of securities available for sale ( 9,493 ) 16,394 Net change in fair value of cash flow hedges ( 32 ) 3,456 Net change in other comprehensive income for defined benefit postretirement plans ( 19 ) ( 45 ) Total other comprehensive (loss) income ( 9,544 ) 19,805 Total comprehensive income $ 70,375 $ 64,229 The accompanying notes are an integral part of these unaudited consolidated financial statements. 8 Table of Contents INDEPENDENT BANK CORP. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Three Months Ended March 31, 2026 and 2025 (Unaudited—Dollars in thousands, except per share data) Common Stock Outstanding Common Stock Value of Shares Held in Rabbi Trust at Cost Deferred Compensation Obligation Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Balance December 31, 2025 49,243,813 $ 490 $ ( 3,452 ) $ 3,452 $ 2,335,879 $ 1,269,113 $ ( 39,754 ) $ 3,565,728 Net income — — — — — 79,919 — 79,919 Other comprehensive loss — — — — — — ( 9,544 ) ( 9,544 ) Common dividend declared ($ 0.64 per share) — — — — — ( 31,086 ) — ( 31,086 ) Stock based compensation — — — — 2,315 — — 2,315 Restricted stock awards issued, net of awards surrendered 121,283 1 — — ( 2,131 ) — — ( 2,130 ) Shares issued under direct stock purchase plan 9,457 — — — 734 — — 734 Shares repurchased under share repurchase program ( 802,316 ) ( 8 ) — — ( 63,887 ) — — ( 63,895 ) Deferred compensation and other retirement benefit obligations — — ( 170 ) 170 — — — — Balance March 31, 2026 48,572,237 $ 483 $ ( 3,622 ) $ 3,622 $ 2,272,910 $ 1,317,946 $ ( 49,298 ) $ 3,542,041 Balance December 31, 2024 42,500,611 $ 423 $ ( 3,383 ) $ 3,383 $ 1,909,980 $ 1,172,724 $ ( 90,007 ) $ 2,993,120 Net income — — — — — 44,424 — 44,424 Other comprehensive income — — — — — — 19,805 19,805 Common dividend declared ($ 0.59 per share) — — — — — ( 25,140 ) — ( 25,140 ) Stock based compensation — — — — 1,896 — — 1,896 Restricted stock awards issued, net of awards surrendered 100,430 1 — — ( 1,309 ) — — ( 1,308 ) Shares issued under direct stock purchase plan 9,230 — — — 595 — — 595 Deferred compensation and other retirement benefit obligations — — ( 141 ) 141 — — — — Balance March 31, 2025 42,610,271 $ 424 $ ( 3,524 ) $ 3,524 $ 1,911,162 $ 1,192,008 $ ( 70,202 ) $ 3,033,392 9 Table of Contents INDEPENDENT BANK CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited—Dollars in thousands) Three Months Ended March 31 2026 2025 Cash flow from operating activities Net income $ 79,919 $ 44,424 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 10,208 10,292 Change in unamortized net loan costs and fees ( 315 ) ( 338 ) Net accretion of acquired loans ( 9,186 ) ( 410 ) Provision for credit losses 5,500 15,000 Deferred income tax expense 1,331 1,021 Net gain on equity securities ( 25 ) ( 98 ) Net loss on bank premises and equipment — 74 Stock based compensation 2,315 1,896 Increase in cash surrender value of life insurance policies ( 2,712 ) ( 2,065 ) Gain on life insurance benefits ( 346 ) — Operating lease payments ( 3,955 ) ( 3,991 ) Change in fair value on loans held for sale 417 ( 57 ) Net change in: Trading assets ( 805 ) ( 571 ) Loans held for sale 18,734 ( 1,196 ) Other assets 36,522 ( 10,384 ) Other liabilities ( 20,384 ) ( 40,255 ) Total adjustments 37,299 ( 31,082 ) Net cash provided by operating activities 117,218 13,342 Cash flows provided by (used in) investing activities Purchases of equity securities ( 185 ) ( 179 ) Proceeds from maturities and principal repayments of securities available for sale 79,030 60,035 Purchases of securities available for sale ( 168,446 ) ( 70,806 ) Proceeds from maturities and principal repayments of securities held to maturity 23,636 26,415 Net decrease in Federal Home Loan Bank stock 4,083 5,769 Investments in low income housing projects ( 3,863 ) ( 15,333 ) Purchases of life insurance policies — ( 47 ) Proceeds from life insurance policies 1,074 — Net decrease (increase) in loans 82,983 ( 23,735 ) Purchases of bank premises and equipment ( 5,604 ) ( 2,032 ) Net cash provided by (used in) investing activities 12,708 ( 19,913 ) Cash flows provided by (used in) financing activities Net decrease in time deposits ( 12,926 ) ( 37,852 ) Net (decrease) increase in other deposits ( 16,354 ) 407,873 Net repayments of Federal Home Loan Bank and other borrowings ( 99,786 ) ( 138,000 ) Proceeds from line of credit, net of issuance costs 50,000 — Proceeds from subordinated debentures, net of issuance costs — 296,491 10 Table of Contents Restricted stock awards issued, net of awards surrendered ( 2,195 ) ( 1,351 ) Proceeds from shares issued under direct stock purchase plan 727 589 Payments for shares repurchased under share repurchase program ( 63,261 ) — Common dividends paid ( 29,055 ) ( 24,225 ) Net cash (used in) provided by financing activities ( 172,850 ) 503,525 Net (decrease) increase in cash and cash equivalents ( 42,924 ) 496,954 Cash and cash equivalents at beginning of year 771,902 219,890 Cash and cash equivalents at end of period $ 728,978 $ 716,844 Supplemental schedule of non-cash investing and financing activities Net increase in capital commitments relating to low income housing project investments $ — $ 10,223 Recognition of operating lease at commencement and/or at extension $ 972 $ 793 The accompanying notes are an integral part of these unaudited consolidated financial statements. 11 Table of Contents NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - BASIS OF PRESENTATION Independent Bank Corp. (the “Company”) is a state chartered, federally registered bank holding company, incorporated in 1985. The Company is the sole stockholder of Rockland Trust Company (“Rockland Trust” or the “Bank”), a Massachusetts trust company chartered in 1907. All material intercompany balances and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current year’s presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, primarily consisting of normal recurring adjustments, have been included. Results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026 or any other interim period. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “2025 Form 10-K”). NOTE 2 - RECENT ACCOUNTING STANDARDS UPDATES Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815 “Derivatives and Hedging” Update No. 2025-09. Update No. 2025-09 was issued in November 2025 to clarify certain aspects of the guidance on hedge accounting and to address several incremental hedge accounting issues arising from the global reference rate reform initiative. The objective of this update is to more closely align hedge accounting with the economics of an entity’s risk management activities and to better reflect those strategies in financial reporting by enabling entities to achieve and maintain hedge accounting for highly effective economic hedges of forecasted transactions. This standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted on any date on or after the issuance of this update. The Company is currently evaluating the impact of this standard and does not expect the adoption to have an impact on the Company’s financial statements. FASB ASC Topic 326 “Financial Instruments - Credit Losses - Purchased Loans” Update No. 2025-08 . Update No. 2025-08 was issued in November 2025 requires entities to apply the gross-up approach under Topic 326 to all “purchased seasoned loans.” According to the amendments in this update, purchased seasoned loans are loans (excluding purchased financial assets with credit deterioration, credit card receivables, debt securities and trade receivables) that are (1) acquired in a business combination, or (2) obtained through a transfer that is not a business combination or initially recognized through the consolidation of a variable interest entity, if certain seasoning criteria are met. A loan is considered seasoned if it is obtained more than 90 days after its origination date and the transferee was not involved in the origination. This standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption is permitted. This standard will be effective for the Company, on a prospective basis, for loans acquired on or after the adoption date. The Company does not expect the adoption to have an impact on the Company’s current financial statements. FASB ASC Subtopic 220-40 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures” Update No. 2024-03. Update No. 2024-03 was issued in November 2024 and requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses for both interim and annual reporting periods. This standard is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard and does not expect the adoption to have an impact on the Company’s financial statements. 12 Table of Contents NOTE 3 - SECURITIES Trading Securities The Company had trading securities of $ 5.5 million and $ 4.7 million as of March 31, 2026 and December 31, 2025, respectively. These securities are held in a rabbi trust and will be used for future payments associated with the Company’s non-qualified 401(k) Restoration Plan and Non-qualified Deferred Compensation Plan. Equity Securities The Company had equity securities of $ 21.5 million and $ 21.6 million as of March 31, 2026 and December 31, 2025, respectively. These securities consist primarily of mutual funds held in a rabbi trust and will be used for future payments associated with the Company’s supplemental executive retirement plans. The following table represents a summary of the gains and losses recognized within non-interest income and non-interest expense within the Consolidated Statements of Income that relate to equity securities for the periods indicated: Three Months Ended March 31 2026 2025 Dollars in thousands Net gains recognized during the period on equity securities $ 25 $ 98 Less: net gains recognized during the period on equity securities sold during the period — 6 Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 25 $ 92 Available for Sale Securities The following table summarizes the amortized cost, allowance for credit losses, and fair value of available for sale securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at the dates indicated: March 31, 2026 December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for credit losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for credit losses Fair Value (Dollars in thousands) U.S. government agency securities $ 228,507 $ — $ ( 9,947 ) $ — $ 218,560 $ 228,697 $ — $ ( 10,025 ) $ — $ 218,672 U.S. treasury securities 435,551 — ( 13,195 ) — 422,356 485,388 32 ( 14,336 ) — 471,084 Agency mortgage-backed securities 944,915 1,909 ( 27,169 ) — 919,655 790,764 4,430 ( 22,231 ) — 772,963 Agency collateralized mortgage obligations 267,747 202 ( 7,962 ) — 259,987 273,321 784 ( 4,529 ) — 269,576 Municipal securities 229,123 1,506 ( 184 ) — 230,445 230,052 3,056 ( 30 ) — 233,078 Pooled trust preferred securities issued by banks and insurers 1,120 — ( 76 ) — 1,044 1,120 — ( 78 ) — 1,042 Small business administration pooled securities 41,259 — ( 4,941 ) — 36,318 42,480 — ( 4,648 ) — 37,832 Total available for sale securities $ 2,148,222 $ 3,617 $ ( 63,474 ) $ — $ 2,088,365 $ 2,051,822 $ 8,302 $ ( 55,877 ) $ — $ 2,004,247 Excluded from the table above is accrued interest on available for sale securities of $ 6.2 million and $ 5.6 million at March 31, 2026 and December 31, 2025, respectively, which is included within other assets on the Consolidated Balance Sheets. The Company did not record any write-offs of accrued interest income on available for sale securities during the three months ended March 31, 2026 and 2025. Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status at March 31, 2026 and December 31, 2025, respectively. 13 Table of Contents When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The Company had no sales of securities available for sale during the three months ended March 31, 2026 and 2025, and therefore no gains or losses were realized for such periods. The following tables show the gross unrealized losses and fair value of the Company’s available for sale securities in an unrealized loss position as of the dates indicated. These available for sale securities are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2026 Less than 12 months 12 months or longer Total # of holdings Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) U.S. government agency securities 9 $ — $ — $ 218,560 $ ( 9,947 ) $ 218,560 $ ( 9,947 ) U.S. treasury securities 10 6,564 ( 17 ) 415,793 ( 13,178 ) 422,357 ( 13,195 ) Agency mortgage-backed securities 117 467,011 ( 5,731 ) 233,557 ( 21,438 ) 700,568 ( 27,169 ) Agency collateralized mortgage obligations 80 224,557 ( 6,549 ) 22,206 ( 1,413 ) 246,763 ( 7,962 ) Municipal securities 56 49,363 ( 184 ) — — 49,363 ( 184 ) Pooled trust preferred securities issued by banks and insurers 1 — — 1,044 ( 76 ) 1,044 ( 76 ) Small business administration pooled securities 8 — — 36,318 ( 4,941 ) 36,318 ( 4,941 ) Total 281 $ 747,495 $ ( 12,481 ) $ 927,478 $ ( 50,993 ) $ 1,674,973 $ ( 63,474 ) December 31, 2025 Less than 12 months 12 months or longer Total # of holdings Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) U.S. government agency securities 9 $ — $ — $ 218,672 $ ( 10,025 ) $ 218,672 $ ( 10,025 ) U.S. treasury securities 10 — — 464,514 ( 14,336 ) 464,514 ( 14,336 ) Agency mortgage-backed securities 106 178,837 ( 911 ) 237,923 ( 21,320 ) 416,760 ( 22,231 ) Agency collateralized mortgage obligations 54 175,697 ( 3,216 ) 23,265 ( 1,313 ) 198,962 ( 4,529 ) Municipal securities 8 6,792 ( 30 ) — — 6,792 ( 30 ) Pooled trust preferred securities issued by banks and insurers 1 — — 1,042 ( 78 ) 1,042 ( 78 ) Small business administration pooled securities 8 — — 37,832 ( 4,648 ) 37,832 ( 4,648 ) Total 196 $ 361,326 $ ( 4,157 ) $ 983,248 $ ( 51,720 ) $ 1,344,574 $ ( 55,877 ) The Company does not intend to sell these investments and has determined, based upon available evidence, that it is more likely than not that the Company will not be required to sell each security before the recovery of its amortized cost basis. In addition, management does not believe that any of the securities are impaired due to reasons of credit quality. As a result, the Company did not recognize a provision for credit losses on these investments during the three months ended March 31, 2026 and 2025. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, and current analysts’ evaluations. 14 Table of Contents As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the table above by category were as follows at March 31, 2026: • U.S. Government Agency Securities, U.S. Treasury Securities, Agency Mortgage-Backed Securities, Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities: These portfolios have contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. Government or one of its agencies. • Municipal Securities : This portfolio has contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. • Pooled Trust Preferred Securities: This portfolio consists of one security which is performing. The unrealized loss on this security is attributable to the illiquid nature of the trust preferred market in the current economic and regulatory environment. Management evaluates collateral credit and instrument structure, including current and expected deferral and default rates and timing. In addition, discount rates are determined by evaluating comparable spreads observed currently in the market for similar instruments. Held to Maturity Securities The following table summarizes the amortized cost, fair value and allowance for credit losses of held to maturity securities and the corresponding amounts of gross unrealized gains and losses recognized at the dates indicated: March 31, 2026 December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for credit losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for credit losses Fair Value (Dollars in thousands) U.S. treasury securities $ 100,892 $ — $ ( 3,648 ) $ — $ 97,244 $ 100,872 $ — $ ( 3,748 ) $ — $ 97,124 Agency mortgage-backed securities 686,110 249 ( 36,983 ) — 649,376 694,903 339 ( 35,827 ) — 659,415 Agency collateralized mortgage obligations 360,263 — ( 45,871 ) — 314,392 370,698 — ( 44,900 ) — 325,798 Small business administration pooled securities 109,301 36 ( 4,047 ) — 105,290 112,554 183 ( 4,341 ) — 108,396 Total held to maturity securities $ 1,256,566 $ 285 $ ( 90,549 ) $ — $ 1,166,302 $ 1,279,027 $ 522 $ ( 88,816 ) $ — $ 1,190,733 All held to maturity securities held by the Company are guaranteed by the U.S. federal government or other government sponsored agencies and have a long history of no credit losses. As a result, management has determined these securities to have a zero loss expectation and therefore the Company did not record a provision for estimated credit losses on any held to maturity securities during the three months ended March 31, 2026 and 2025. Excluded from the table above is accrued interest on held to maturity securities of $ 2.8 million and $ 3.4 million at March 31, 2026 and December 31, 2025, respectively, which is included within other assets on the Consolidated Balance Sheets. The Company did not record any write-offs of accrued interest income on held to maturity securities during the three months ended March 31, 2026 and 2025. Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status at March 31, 2026 and December 31, 2025. When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The Company had no sales of held to maturity securities during the three months ended March 31, 2026 and 2025, and therefore no gains or losses were realized for such periods. The Company monitors the credit quality of held to maturity securities through the use of credit ratings. Credit ratings are monitored by the Company on at least a quarterly basis. As of March 31, 2026, all held to maturity securities held by the Company were rated investment grade or higher. 15 Table of Contents The actual maturities of certain available for sale or held to maturity securities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. A schedule of the contractual maturities of securities available for sale and securities held to maturity at March 31, 2026 is presented below: Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Available for sale securities U.S. government agency securities $ 67,548 $ 66,733 $ 160,959 $ 151,827 $ — $ — $ — $ — $ 228,507 $ 218,560 U.S. treasury securities 195,253 192,669 240,298 229,687 — — — — 435,551 422,356 Agency mortgage-backed securities 23,773 23,441 208,639 201,586 22,738 21,855 689,765 672,773 944,915 919,655 Agency collateralized mortgage obligations — — 4,448 4,444 1,800 1,689 261,499 253,854 267,747 259,987 Municipal securities 1,923 1,925 119,275 119,807 106,466 107,224 1,459 1,489 229,123 230,445 Pooled trust preferred securities issued by banks and insurers — — — — — — 1,120 1,044 1,120 1,044 Small business administration pooled securities — — — — 10,264 9,670 30,995 26,648 41,259 36,318 Total available for sale securities $ 288,497 $ 284,768 $ 733,619 $ 707,351 $ 141,268 $ 140,438 $ 984,838 $ 955,808 $ 2,148,222 $ 2,088,365 Held to maturity securities U.S. treasury securities $ 99,898 $ 96,377 $ 994 $ 867 $ — $ — $ — $ 100,892 $ 97,244 Agency mortgage-backed securities 104,300 103,524 377,411 355,833 90,223 82,710 114,176 107,309 686,110 649,376 Agency collateralized mortgage obligations 25,314 25,197 34,695 32,853 12,277 11,231 287,977 245,111 360,263 314,392 Small business administration pooled securities — — — — 5,106 4,845 104,195 100,445 109,301 105,290 Total held to maturity securities $ 229,512 $ 225,098 $ 413,100 $ 389,553 $ 107,606 $ 98,786 $ 506,348 $ 452,865 $ 1,256,566 $ 1,166,302 Total $ 518,009 $ 509,866 $ 1,146,719 $ 1,096,904 $ 248,874 $ 239,224 $ 1,491,186 $ 1,408,673 $ 3,404,788 $ 3,254,667 Included in the table above is $ 130.0 million of callable securities at March 31, 2026. The carrying value of securities pledged to secure public funds, trust deposits, and for other purposes, as required or permitted by law, was $ 2.8 billion and $ 2.5 billion at March 31, 2026 and December 31, 2025, respectively. At March 31, 2026 and December 31, 2025, the Company had no investments in obligations of individual states, counties, or municipalities which exceeded 10% of consolidated stockholders’ equity. 16 Table of Contents . NOTE 4 - LOANS, ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY Loans Held for Investment and Allowance for Credit Losses The following table summarizes the change in allowance for credit losses by loan category, and bifurcates the amount of loans allocated to each loan category for the period indicated: Three Months Ended March 31, 2026 (Dollars in thousands) Commercial and Industrial Commercial Real Estate Commercial Construction Residential Real Estate Home Equity Other Consumer Total Allowance for credit losses Beginning balance $ 47,976 $ 84,916 $ 14,254 $ 29,254 $ 12,376 $ 1,101 $ 189,877 Charge-offs ( 470 ) ( 4,224 ) — — — ( 1,082 ) ( 5,776 ) Recoveries 159 190 — — 12 598 959 Provision for (release of) credit losses 1,617 2,110 ( 42 ) 646 880 289 5,500 Ending balance (1) $ 49,282 $ 82,992 $ 14,212 $ 29,900 $ 13,268 $ 906 $ 190,560 Three Months Ended March 31, 2025 (Dollars in thousands) Commercial and Industrial Commercial Real Estate Commercial Construction Residential Real Estate Home Equity Other Consumer Total Allowance for credit losses Beginning balance $ 30,799 $ 93,718 $ 8,166 $ 25,238 $ 11,007 $ 1,056 $ 169,984 Charge-offs ( 167 ) ( 39,996 ) — — ( 96 ) ( 1,141 ) ( 41,400 ) Recoveries 15 — — — 18 475 508 Provision for (release of) credit losses 6,572 7,694 211 231 ( 83 ) 375 15,000 Ending balance (1) $ 37,219 $ 61,416 $ 8,377 $ 25,469 $ 10,846 $ 765 $ 144,092 (1) Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $ 69.1 million and $ 53.7 million as of March 31, 2026 and March 31, 2025, respectively. The balance of allowance for credit losses increased $ 683,000 to $ 190.6 million as of March 31, 2026, as compared to $ 189.9 million at December 31, 2025, driven by provision for credit losses of $ 5.5 million, offset by net charge-offs of $4.8 million. Each of the following loan categories possesses unique risk characteristics that are considered when determining the appropriate level of allowance for each segment. Some of the characteristics unique to each loan category include: Commercial Portfolio • Commercial and Industrial : Consists of revolving, non-revolving, and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment, as well as loans to finance owner-occupied commercial properties. Collateral generally consists of accounts receivable, inventory, plant and equipment, real estate, or other business assets. The primary source of repayment is operating cash flow and, secondarily, liquidation of assets. • Commercial Real Estate : Consists of mortgage loans to finance investment in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational and healthcare facilities, as well as other specific use properties and is inclusive of non-owner-occupied commercial properties. Loans are typically written with amortizing payment structures. Collateral values are determined based upon third party appraisals and evaluations. Permissible loan to value ratios at origination are governed by Company policy and regulatory guidelines. The primary source of repayment is cash flow from operating leases and rents and, secondarily, liquidation of assets. • Commercial Construction : Consists of short-term construction loans, revolving and non-revolving credit lines and construction/permanent loans to finance the acquisition, development and construction or rehabilitation of real property. Project types include residential land development, one-to-four family, condominium, and multi-family home construction, commercial/retail, office, industrial, hotels, educational and healthcare facilities as well as other specific use properties. Loans may be written with non-amortizing or hybrid payment structures depending upon the type of project. Collateral values are determined based upon third party appraisals and evaluations. Permissible loan to value ratios at origination are 17 Table of Contents governed by Company policy and regulatory guidelines. Repayment sources vary depending upon the type of project and may consist of proceeds from the sale or lease of units, operating cash flows or liquidation of other assets. For the commercial portfolio the Company typically obtains personal guarantees for payment from individuals and/or from other corporate or business entities holding a material ownership interest in the borrowing entities. Guarantees may be either unlimited or limited with respect to guaranteed loan amounts or with respect to other terms and conditions. Consumer Portfolio • Residential Real Estate : Residential mortgage loans held in the Company’s portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current and expected income, employment status, current assets, other financial resources, credit history and the value of the collateral. Collateral consists of mortgage liens on one-to-four family residential properties. Residential mortgage loans also include loans to construct owner-occupied one-to-four family residential properties. • Home Equity : Home equity loans and credit lines are made to qualified individuals and are primarily secured by senior or junior mortgage liens on one-to-four family homes, condominiums or vacation homes. Each home equity loan has a fixed rate and is billed in equal payments comprised of principal and interest. The majority of home equity lines of credit have a variable rate and are billed in interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the then outstanding principal balance plus all accrued interest over a predetermined repayment period, as set forth in the note. Additionally, the Company has the option of renewing each line of credit for additional draw periods. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan to value ratios within established policy guidelines. • Other Consumer: Other consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. These loans may be secured or unsecured. Credit Quality The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as adversely risk-rated, delinquent, non-performing and/or put on non-accrual status. Additionally, in the course of resolving such loans, the Company may choose to modify the contractual terms of certain loans to match the borrower’s ability to repay the loan based on their current financial condition. The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For the commercial portfolio, the Company utilizes a 10-point credit risk-rating system, which assigns a risk-grade to each loan obligation based on a number of quantitative and qualitative factors associated with a commercial or small business loan transaction. Factors considered include industry and market conditions, position within the industry, earnings trends, operating cash flow, asset/liability values, debt capacity, guarantor strength, management and controls, financial reporting, collateral, and other considerations. The risk-rating categories for the commercial portfolio are defined as follows: • Pass: Risk-rating “1” through “6” comprises loans ranging from ‘Substantially Risk Free’ which indicates borrowers are of unquestioned credit standing and the pinnacle of credit quality, well established companies with a very strong financial condition, and loans fully secured by cash collateral, through ‘Acceptable Risk,’ which indicates borrowers may exhibit declining earnings, strained cash flow, increasing or above average leverage and/or weakening market fundamentals that indicate below average asset quality, margins and market share. Collateral coverage is protective. • Special Mention: Borrowers exhibit potential credit weaknesses or downward trends deserving management’s close attention. If not checked or corrected, these trends will weaken the Company’s asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned. • Substandard: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Loans may be inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. However, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation. 18 Table of Contents • Doubtful: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. • Loss: Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted. The Company utilizes a comprehensive, continuous strategy for evaluating and monitoring commercial credit quality. Initially, credit quality is determined at loan origination and is re-evaluated when subsequent actions, such as renewals, modifications or reviews, occur. Actively managed commercial borrowers are required to provide updated financial information at least annually which is carefully evaluated for any changes in credit quality. Larger loan relationships are subject to a full annual credit review by experienced credit professionals, while continuous portfolio monitoring techniques are employed to evaluate changes in credit quality for smaller loan relationships. Any changes in credit quality are reflected in risk-rating changes. Additionally, the Company retains an independent loan review firm to evaluate the credit quality of the commercial loan portfolio. The independent loan review process achieves significant penetration into the commercial loan portfolio and reports the results of these reviews to the Audit Committee of the Board of Directors on a quarterly basis. For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. As a result, for this portfolio the Company utilizes a pass/default risk-rating system, based on an age analysis (i.e., days past due) associated with each consumer loan. Under this structure, consumer loans less than 90 days past due are assigned a “pass” rating, while any consumer loans 90 days or more past due are assigned a “default” rating. The following table details the amortized cost balances of the Company's loan portfolios, presented by credit quality indicator and origination year, as of March 31, 2026, and gross charge-offs for the three month period then ended: 19 Table of Contents March 31, 2026 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving converted to Term (1) Total (2) (Dollars in thousands) Commercial and industrial Pass $ 240,270 $ 910,184 $ 646,520 $ 417,374 $ 379,632 $ 1,011,104 $ 850,197 $ 5,398 $ 4,460,679 Special mention 2,291 45,856 16,970 8,975 3,553 18,291 17,054 — 112,990 Substandard 8,304 27,626 7,946 391 4,046 5,160 24,036 — 77,509 Doubtful — — — 17 — — 258 — 275 Loss — — — — — — — — — Total commercial and industrial $ 250,865 $ 983,666 $ 671,436 $ 426,757 $ 387,231 $ 1,034,555 $ 891,545 $ 5,398 $ 4,651,453 Current-period gross write-offs $ — $ — $ 22 $ 20 $ 9 $ 44 $ 375 $ — $ 470 Commercial real estate Pass $ 290,220 $ 1,216,650 $ 849,524 $ 936,207 $ 1,210,410 $ 3,258,025 $ 134,875 $ — $ 7,895,911 Special mention 17,634 49,888 21,408 11,158 340 57,992 242 — 158,662 Substandard 3,620 8,122 27,083 20,926 2,650 25,853 3,245 — 91,499 Doubtful — 35,268 — — — — — — 35,268 Loss — — — — — — — — — Total commercial real estate $ 311,474 $ 1,309,928 $ 898,015 $ 968,291 $ 1,213,400 $ 3,341,870 $ 138,362 $ — $ 8,181,340 Current-period gross write-offs $ — $ 4,224 $ — $ — $ — $ — $ — $ — $ 4,224 Commercial construction Pass $ 138,378 $ 480,477 $ 300,597 $ 233,531 $ 41,758 $ 51,915 $ 57,582 $ — $ 1,304,238 Special mention — 49,821 24,459 8,962 — — — — 83,242 Substandard — 9,827 1,138 — — 2,992 2,176 — 16,133 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction $ 138,378 $ 540,125 $ 326,194 $ 242,493 $ 41,758 $ 54,907 $ 59,758 $ — $ 1,403,613 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate Pass $ 39,122 $ 264,756 $ 236,732 $ 471,141 $ 633,673 $ 1,192,184 $ — $ — $ 2,837,608 Default — — — 564 596 3,376 — — 4,536 Total residential real estate $ 39,122 $ 264,756 $ 236,732 $ 471,705 $ 634,269 $ 1,195,560 $ — $ — $ 2,842,144 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity Pass $ 1,669 $ 10,810 $ 12,823 $ 17,585 $ 28,858 $ 182,510 $ 1,042,381 $ 6,412 $ 1,303,048 Default — — — 82 — 588 4,000 28 4,698 Total home equity $ 1,669 $ 10,810 $ 12,823 $ 17,667 $ 28,858 $ 183,098 $ 1,046,381 $ 6,440 $ 1,307,746 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other consumer (3) Pass $ 164 $ 1,305 $ 1,665 $ 1,431 $ 820 $ 1,603 $ 32,174 $ — $ 39,162 Default — — — — — 20 — — 20 Total other consumer $ 164 $ 1,305 $ 1,665 $ 1,431 $ 820 $ 1,623 $ 32,174 $ — $ 39,182 Current-period gross write-offs $ 1,065 $ — $ — $ — $ 2 $ — $ 15 $ — $ 1,082 Total $ 741,672 $ 3,110,590 $ 2,146,865 $ 2,128,344 $ 2,306,336 $ 5,811,613 $ 2,168,220 $ 11,838 $ 18,425,478 Total current-period gross write-offs $ 1,065 $ 4,224 $ 22 $ 20 $ 11 $ 44 $ 390 $ — $ 5,776 20 Table of Contents The following table details the amortized cost balances of the Company's loan portfolios, presented by credit quality indicator and origination year, as of December 31, 2025, and gross charge-offs for the year then ended: December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving converted to Term (1) Total (2) (Dollars in thousands) Commercial and industrial Pass $ 1,050,723 $ 674,956 $ 427,794 $ 408,646 $ 310,331 $ 777,748 $ 802,675 $ — $ 4,452,873 Special mention 22,454 8,171 7,458 4,700 10,241 7,253 17,091 — 77,368 Substandard 28,004 15,826 445 5,045 2,358 2,306 27,544 — 81,528 Doubtful — — 20 — — — — — 20 Loss — — — — — — — — — Total commercial and industrial $ 1,101,181 $ 698,953 $ 435,717 $ 418,391 $ 322,930 $ 787,307 $ 847,310 $ — $ 4,611,789 Current-period gross write-offs $ — $ 42 $ 62 $ 98 $ 900 $ 76 $ 7,635 $ — $ 8,813 Commercial real estate Pass $ 1,254,204 $ 868,351 $ 991,179 $ 1,233,528 $ 1,212,646 $ 2,323,268 $ 153,939 $ — $ 8,037,115 Special mention 56,300 20,655 9,865 697 4,052 29,328 197 — 121,094 Substandard 25,600 32,514 20,927 1,326 10,291 4,266 — — 94,924 Doubtful 22,275 — — — — — — — 22,275 Loss — — — — — — — — — Total commercial real estate $ 1,358,379 $ 921,520 $ 1,021,971 $ 1,235,551 $ 1,226,989 $ 2,356,862 $ 154,136 $ — $ 8,275,408 Current-period gross write-offs $ 8,126 $ — $ 26,862 $ — $ 7,089 $ 1,335 $ — $ — $ 43,412 Commercial construction Pass $ 509,630 $ 362,300 $ 237,679 $ 69,779 $ 62,752 $ 23,781 $ 57,615 $ — $ 1,323,536 Special mention 29,634 29,516 — — — — — — 59,150 Substandard 9,822 848 — — — 2,992 — — 13,662 Doubtful — — — 2,845 — — — — 2,845 Loss — — — — — — — — — Total commercial construction $ 549,086 $ 392,664 $ 237,679 $ 72,624 $ 62,752 $ 26,773 $ 57,615 $ — $ 1,399,193 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate Pass $ 273,907 $ 252,544 $ 487,064 $ 640,426 $ 405,352 $ 807,275 $ — $ — $ 2,866,568 Default — — 742 1,626 301 4,206 — — 6,875 Total residential real estate $ 273,907 $ 252,544 $ 487,806 $ 642,052 $ 405,653 $ 811,481 $ — $ — $ 2,873,443 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity Pass $ 10,970 $ 13,118 $ 18,339 $ 29,574 $ 43,928 $ 145,224 $ 1,011,854 $ 21,027 $ 1,294,034 Default — — — — — 587 2,991 50 3,628 Total home equity $ 10,970 $ 13,118 $ 18,339 $ 29,574 $ 43,928 $ 145,811 $ 1,014,845 $ 21,077 $ 1,297,662 Current-period gross write-offs $ — $ — $ — $ — $ — $ — $ 96 $ — $ 96 Other consumer (3) Pass $ 1,395 $ 1,781 $ 1,570 $ 906 $ 868 $ 1,067 $ 38,693 $ — $ 46,280 Default — — — — — — 2 — 2 Total other consumer $ 1,395 $ 1,781 $ 1,570 $ 906 $ 868 $ 1,067 $ 38,695 $ — $ 46,282 Current-period gross write-offs $ 4,428 $ 22 $ 10 $ — $ — $ — $ 23 $ — $ 4,483 Total $ 3,294,918 $ 2,280,580 $ 2,203,082 $ 2,399,098 $ 2,063,120 $ 4,129,301 $ 2,112,601 $ 21,077 $ 18,503,777 Total current-period gross write-offs $ 12,554 $ 64 $ 26,934 $ 98 $ 7,989 $ 1,411 $ 7,754 $ — $ 56,804 21 Table of Contents (1) Amounts presented represent the amortized cost as of March 31, 2026 and December 31, 2025 of revolving loans that were converted to term loans during the three and twelve months then ended, respectively. (2) Loan origination dates in the tables above reflect the original origination date, or the date of a material modification of a previously originated loan. (3) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances and the associated gross write-offs. For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. However, the Company does supplement performance data with current Fair Isaac Corporation (“FICO”) scores and Loan to Value (“LTV”) estimates. Current FICO data is purchased and appended to all consumer loans on a regular basis. In addition, automated valuation services and broker opinions of value are used to supplement original value data for the residential real estate and home equity portfolios, periodically. The following table shows the weighted average FICO scores and the weighted average combined LTV ratios at the dates indicated below: March 31 2026 December 31 2025 Residential real estate portfolio FICO score (re-scored) (1) 754 754 LTV (re-valued) (1) 57.3 % 57.2 % Home equity portfolio FICO score (re-scored) (1) 769 769 LTV (re-valued) (2)(3) 45.9 % 45.3 % (1) The average FICO scores at March 31, 2026 are based upon rescores from March 2026, as available for previously originated loans, or the origination score data for loans booked in March 2026. The average FICO scores at December 31, 2025 were based upon rescores from December 2025, as available for previously originated loans, or origination score data for loans booked in December 2025. (2) The combined LTV ratios for March 31, 2026 are based upon updated automated valuations as of February 2026, when available, and/or the most current valuation data available. The combined LTV ratios for December 31, 2025 were based upon updated automated valuations as of November 2025, when available, and/or the most current valuation data available. The updated automated valuations provide new information on loans that may be available since the previous valuation was obtained. If no new information is available, the valuation will default to the previously obtained data or most recent appraisal. (3) For home equity loans and lines in a subordinate lien, the LTV data represents a combined LTV, taking into account the senior lien data for loans and lines. The Company’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations. Delinquent loans are managed by a team of collection specialists and the Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame. As a general rule, loans 90 days or more past due with respect to principal or interest are classified as non-accrual loans, or sooner if management considers such action to be prudent. However, loans that are 90 days or more past due may be kept on accruing status if the loan is well secured and/or in process of collection. The following table shows information regarding non-accrual loans as of the dates indicated: Non-accrual Balances March 31, 2026 December 31, 2025 With Allowance for Credit Losses Without Allowance for Credit Losses (1) Total With Allowance for Credit Losses Without Allowance for Credit Losses (1) Total (Dollars in thousands) Commercial and industrial $ 8,453 $ — $ 8,453 $ 8,173 $ 987 $ 9,160 Commercial real estate 26,394 38,457 64,851 26,674 23,841 50,515 Commercial construction 698 — 698 848 2,845 3,693 Residential real estate 15,593 — 15,593 15,043 — 15,043 Home equity 7,011 — 7,011 5,102 — 5,102 Other consumer 37 — 37 44 — 44 Total non-accrual loans $ 58,186 $ 38,457 $ 96,643 $ 55,884 $ 27,673 $ 83,557 (1) Non-accrual balances reported above without an allowance for credit losses are attributable to loans evaluated on an individual basis where it was determined that there was no risk of loss due to sufficient underlying collateral values. 22 Table of Contents It is the Company’s policy to reverse any accrued interest when a loan is put on non-accrual status, and, as such, the Company did not record any interest income on non-accrual loans during the three months ended March 31, 2026 and 2025, respectively, except for instances where non-accrual loans were paid off in excess of the recorded book balance. Total accrued interest reversed against interest income amounted to $ 215,000 and $ 344,000 for the three months ended March 31, 2026 and 2025, respectively. The following table shows information regarding foreclosed residential real estate property at the dates indicated: March 31, 2026 December 31, 2025 (Dollars in thousands) Foreclosed residential real estate property held by the creditor $ — $ — Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure $ 6,282 $ 4,102 The following tables show the age analysis of past due financing receivables as of the dates indicated: March 31, 2026 30-59 days 60-89 days 90 days or more Total Past Due Total Financing Receivables (2) Number of Loans Principal Balance Number of Loans Principal Balance Number of Loans Principal Balance Number of Loans Principal Balance Current (Dollars in thousands) Loan Portfolio Commercial and industrial 37 $ 12,862 23 $ 959 40 $ 2,693 100 $ 16,514 $ 4,634,939 $ 4,651,453 Commercial real estate 16 18,594 3 763 8 13,331 27 32,688 8,148,652 8,181,340 Commercial construction 1 2,176 — — 2 698 3 2,874 1,400,739 1,403,613 Residential real estate 31 6,900 16 3,959 19 4,536 66 15,395 2,826,749 2,842,144 Home equity 24 2,228 14 1,512 26 4,698 64 8,438 1,299,308 1,307,746 Other consumer (1) 588 278 13 15 3 20 604 313 38,869 39,182 Total 697 $ 43,038 69 $ 7,208 98 $ 25,976 864 $ 76,222 $ 18,349,256 $ 18,425,478 December 31, 2025 30-59 days 60-89 days 90 days or more Total Past Due Total Financing Receivables (2) Number of Loans Principal Balance Number of Loans Principal Balance Number of Loans Principal Balance Number of Loans Principal Balance Current (Dollars in thousands) Loan Portfolio Commercial and industrial 36 $ 7,765 18 $ 3,627 35 $ 5,776 89 $ 17,168 $ 4,594,621 $ 4,611,789 Commercial real estate 15 7,037 3 619 7 10,103 25 17,759 8,257,649 8,275,408 Commercial construction 1 804 1 488 2 3,693 4 4,985 1,394,208 1,399,193 Residential real estate 20 5,592 16 3,597 18 3,278 54 12,467 2,860,976 2,873,443 Home equity 20 3,247 9 456 24 3,629 53 7,332 1,290,330 1,297,662 Other consumer (1) 624 321 15 27 3 3 642 351 45,931 46,282 Total 716 $ 24,766 62 $ 8,814 89 $ 26,482 867 $ 60,062 $ 18,443,715 $ 18,503,777 (1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances. (2) The amount of net deferred fees/costs on originated loans included in the ending balance was $ 7.9 million and $ 7.7 million at March 31, 2026 and December 31, 2025, respectively. Net unamortized discounts on acquired loans included in the ending balance were $ 147.8 million and $ 157.0 million at March 31, 2026 and December 31, 2025, respectively. Unfunded Commitments Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. The Company’s estimated reserve for unfunded commitments amounted to $ 1.9 million and $ 1.8 million at March 31, 2026 and December 31, 2025, respectively. 23 Table of Contents Loan Modifications The following tables present the period end amortized cost basis of loans modified to borrowers experiencing financial difficulty during the periods indicated, disaggregated by class of financing receivable, type of modification granted and the financial effect of the modifications: Three Months Ended March 31, 2026 Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect (Dollars in thousands) Term Extension Commercial and industrial $ 1,090 0.02 % Extended contractual term on one loan by 1 year Commercial real estate 15,170 0.19 % Added a weighted-average contractual term of 10 months to the life of the loans Total $ 16,260 Three Months Ended March 31, 2025 Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect (Dollars in thousands) Term Extension Commercial and industrial $ 5,204 0.16 % Added a weighted-average contractual term of 11 months to the life of the loans Commercial real estate 3,375 0.05 % Added a weighted-average contractual term of 6 months to the life of the loans Residential real estate 277 0.01 % Extended contractual term on one loan by 17.8 years Total $ 8,856 Other Than Insignificant Payment Delays Commercial real estate $ 11,002 0.16 % Modification was made with minimal financial effect Total $ 11,002 Term Extension and Interest Rate Reduction Commercial real estate $ 12,109 0.18 % Extended the contractual term on one loan by 4.5 years and reduced the interest rate from 8.01 % to 7.45 % Home equity 958 0.08 % Extended the contractual term on one loan by 25.0 years and reduced the interest rate from 7.25 % to 6.88 % Total $ 13,067 Total Outstanding Modified $ 32,925 24 Table of Contents The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. At March 31, 2026, all material loans modified to borrowers experiencing financial difficulty during the previous twelve months were performing in accordance with modified terms. At March 31, 2025, all material loans modified to borrowers experiencing financial difficulty during the previous twelve months were performing in accordance with modified terms, with the exception of one $ 4.6 million commercial real estate loan that was greater than 90 days past due at and was in the process of being resolved. The Company considers a loan to have defaulted when it reaches 90 days past due. During the three months ended March 31, 2026 and March 31, 2025, respectively, there were no material loans that had a payment default during the period and were modified to a borrower experiencing financial difficulty in the previous twelve months. At March 31, 2026, the Company had $ 1.9 million in additional commitments to lend to one borrower experiencing financial difficulty, pertaining to a term extension granted on a commercial and industrial loan during the three months then ended. At March 31, 2025 the Company had no additional commitments to lend to borrowers experiencing financial difficulty whose loans were modified and included in the above tables for the three months then ended. Loan modifications to borrowers experiencing financial difficulty are evaluated on a collective basis with loans sharing similar risk characteristics in accordance with the CECL methodology. NOTE 5 - STOCK BASED COMPENSATION During the three months ended March 31, 2026, the Company had the following activity related to stock based compensation: Time-Vested Restricted Stock Awards The Company made the following awards of time vested restricted stock: Date Shares Granted Plan Grant Date Fair Value Per Share Vesting Period 2/19/2026 142,000 2023 Omnibus Incentive Plan $ 80.45 Ratably on February 27th of 2027, 2028 and 2029 Performance-Based Restricted Stock Awards On February 19, 2026, the Company granted performance-based restricted stock awards to certain executive level employees. These performance-based restricted stock awards were issued from the 2023 Omnibus Incentive Plan and were determined to have a grant date fair value per share of $ 80.45 . The number of shares to be vested is contingent upon the Company’s attainment of certain performance criteria to be measured at the end of a three-year performance period ending December 31, 2028 . The awards will vest upon the earlier of the date on which it is determined if the performance goal is achieved subsequent to the performance period, or March 15, 2029. Excluding the impact of any forfeitures, achievement of target performance will result in the issuance of 20,150 shares, while achievement of the maximum performance will result in the issuance of 40,300 shares. On March 12, 2026, the performance-based restricted stock awards that were awarded on February 16, 2023 vested at 92 % of the target shares awarded, or 11,206 shares, net of forfeitures. 25 Table of Contents NOTE 6 - DERIVATIVE AND HEDGING ACTIVITIES The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally to manage the Company’s interest rate risk. Additionally, the Company enters into interest rate derivatives, foreign exchange contracts and risk participation agreements to accommodate the business requirements of its customers (“customer related positions”). The Company minimizes the market and liquidity risks of customer related positions by entering into similar offsetting positions with broker-dealers. Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies as a hedge for accounting purposes, and further, by the type of hedging relationship. The Company does not enter into proprietary trading positions for any derivatives. The Company is subject to over-the-counter derivative clearing requirements which require certain derivatives to be cleared through central clearing houses. Accordingly, the Company clears certain derivative transactions through the Chicago Mercantile Exchange Clearing House (“CME”). The CME requires the Company to post initial and variation margin to mitigate the risk of non-payment, the latter of which is received or paid daily based on the net asset or liability position of the contracts. Interest Rate Positions The Company may utilize various interest rate derivatives as hedging instruments against interest rate risk associated with the Company’s borrowings and loan portfolios. An interest rate derivative is an agreement whereby one party agrees to pay a floating rate of interest on a notional principal amount in exchange for receiving a fixed rate of interest on the same notional amount, for a predetermined period of time, from a second party. The amounts relating to the notional principal amount are not actually exchanged. 26 Table of Contents The following tables reflect information about the Company’s derivative positions at the dates indicated below for interest rate swaps which qualify as cash flow hedges for accounting purposes: March 31, 2026 Weighted Average Rate Notional Amount Average Maturity Current Rate Received Pay Fixed Swap Rate Fair Value (in thousands) (in years) (in thousands) Interest rate swaps on borrowings $ 300,000 0.47 3.67 % 3.57 % $ 277 Current Rate Paid Receive Fixed Swap Rate Interest rate swaps on loans 550,000 1.42 3.67 % 2.81 % ( 8,251 ) Current Rate Paid Receive Fixed Swap Rate Cap - Floor Interest rate collars on loans 150,000 0.70 3.78 % 3.94 % - 2.33 % ( 221 ) Total $ 1,000,000 $ ( 8,195 ) December 31, 2025 Weighted Average Rate Notional Amount Average Maturity Current Rate Received Pay Fixed Swap Rate Fair Value (in thousands) (in years) (in thousands) Interest rate swaps on borrowings $ 400,000 0.58 3.87 % 3.67 % $ ( 209 ) Current Rate Paid Receive Fixed Swap Rate Interest rate swaps on loans 550,000 1.21 3.89 % 2.73 % ( 7,903 ) Current Rate Paid Receive Fixed Swap Rate Cap - Floor Interest rate collars on loans 150,000 0.94 4.05 % 3.94 % - 2.33 % ( 140 ) Total $ 1,100,000 $ ( 8,252 ) The maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions related to the payment of variable interest on existing financial instruments is 4.9 years. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company expects approximately $ 270,000 (pre-tax) to be reclassified as an increase to net interest income and $ 4.4 million (pre-tax) to be reclassified as a decrease to net interest income, from other comprehensive income related to the Company’s cash flow hedges in the twelve months following March 31, 2026. This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve at March 31, 2026. The Company had no fair value hedges as of March 31, 2026 or December 31, 2025. 27 Table of Contents Customer Related Positions Loan level derivatives, primarily interest rate swaps, offered to commercial borrowers through the Company’s loan level derivative program do not qualify as hedges for accounting purposes. The Company believes that its exposure to commercial customer derivatives is limited because these contracts are simultaneously matched at inception with an offsetting dealer transaction. Derivatives with dealer counterparties are then either cleared through a clearinghouse or settled directly with a single counterparty. The commercial customer derivative program allows the Company to retain variable-rate commercial loans while allowing the customer to synthetically fix the loan rate by entering into a variable-to-fixed interest rate swap. The amounts relating to the notional principal amount are not actually exchanged. Foreign exchange contracts offered to commercial borrowers through the Company’s derivative program do not qualify as hedges for accounting purposes. The Company acts as a seller and buyer of foreign exchange contracts to accommodate its customers. To mitigate the market and liquidity risk associated with these derivatives, the Company enters into similar offsetting positions. The amounts relating to the notional principal amount are exchanged. The Company has entered into risk participation agreements with other dealer banks in commercial loan agreements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. These derivatives are not designated as hedges and, therefore, changes in fair value are recognized in earnings. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower for a fee received from the other bank. 28 Table of Contents The following tables reflect the Company’s customer related derivative positions at the dates indicated below for those derivatives not designated as hedging: Notional Amount Maturing Number of Positions (1) Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value March 31, 2026 (Dollars in thousands) Loan level swaps Receive fixed, pay variable 258 $ 169,361 $ 283,414 $ 176,078 $ 257,490 $ 793,390 $ 1,679,733 $ ( 40,163 ) Pay fixed, receive variable 258 169,361 283,414 176,078 257,490 793,390 1,679,733 40,157 Foreign exchange contracts Buys foreign currency, sells U.S. currency 50 97,887 — — — — 97,887 ( 1,460 ) Buys U.S. currency, sells foreign currency 50 97,887 — — — — 97,887 1,521 Risk participation agreements Participation out 17 — 47,706 7,660 38,031 47,720 141,117 64 Participation in 13 19,243 5,500 6,941 — 61,836 93,520 ( 47 ) Notional Amount Maturing Number of Positions (1) Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value December 31, 2025 (Dollars in thousands) Loan level swaps Receive fixed, pay variable 259 $ 151,688 $ 261,876 $ 224,449 $ 192,734 $ 878,490 $ 1,709,237 $ ( 41,517 ) Pay fixed, receive variable 259 151,688 261,876 224,449 192,734 878,490 1,709,237 41,503 Foreign exchange contracts Buys foreign currency, sells U.S. currency 47 95,672 — — — — 95,672 1,385 Buys U.S. currency, sells foreign currency 47 95,672 — — — — 95,672 ( 1,328 ) Risk participation agreements Participation out 19 — 26,865 28,643 33,850 79,953 169,311 59 Participation in 15 — 22,314 20,291 — 61,994 104,599 ( 44 ) (1) The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements. 29 Table of Contents Mortgage Derivatives The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that loans may be sold subsequently in the secondary market. Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. These commitments are recognized at fair value on the Consolidated Balance Sheet in other assets and other liabilities with changes in their fair values recorded within mortgage banking income. In addition, the Company has elected the fair value option to carry loans held for sale at fair value. The change in fair value of loans held for sale is recorded in current period earnings as a component of mortgage banking income in accordance with the Company’s fair value election. The fair value of loans held for sale decreased by $ 417,000 and increased by $ 57,000 for the three months ended March 31, 2026 and 2025, respectively. These amounts were offset in earnings by the change in the fair value of mortgage derivatives. Outstanding loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might change from inception of the rate lock to funding of the loan due to changes in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. To protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Included in the mandatory delivery forward commitments are To Be Announced securities (“TBAs”). Certain assumptions, including pull through rates and rate lock periods, are used in managing the existing and future hedges. The accuracy of underlying assumptions will impact the ultimate effectiveness of any hedging strategies. With mandatory delivery contracts, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor/counterparty to compensate the investor for the shortfall. Generally, the Company makes this type of commitment once mortgage loans have been funded and are held for sale, in order to minimize the risk of failure to deliver the requisite volume of loans to the investor and paying pair-off fees as a result. The Company also sells TBA securities to offset potential changes in the fair value of derivative loan commitments. Generally, the Company sells TBA securities by entering into derivative loan commitments for settlement in 30 to 90 days. The Company expects that mandatory delivery contracts, including TBA securities, will experience changes in fair value opposite to the changes in the fair value of derivative loan commitments. With best effort contracts, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, best efforts cash contracts have no pair off risk regardless of market movement. The price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these best efforts forward loan sale commitments will experience a net neutral shift in fair value with related derivative loan commitments. The aggregate amount of net realized gains on sales of mortgage loans included within mortgage banking income was $ 1.7 million and $ 705,000 for the three months ended March 31, 2026 and 2025, respectively. Balance Sheet Offsetting The Company does not offset fair value amounts recognized for derivative instruments. The Company does net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary. A daily settlement occurs through the CME for changes in the fair value of centrally cleared derivatives. Not all of the derivatives are required to be cleared through the daily clearing agent. As a result, the total fair values of loan level derivative assets and liabilities recognized on the Company’s financial statements are not equal and offsetting. 30 Table of Contents The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet and the potential effect of netting arrangements on its financial position, at the dates indicated: Asset Derivatives (1) Liability Derivatives (2) Fair Value at Fair Value at Fair Value at Fair Value at March 31 2026 December 31 2025 March 31 2026 December 31 2025 (Dollars in thousands) Derivatives designated as hedges: Interest rate derivatives $ 284 (3) $ 77 (3) $ 8,479 (4) $ 8,329 (4) Derivatives not designated as hedges: Customer Related Positions Loan level derivatives 50,074 (3) 57,790 (3) 50,080 (4) 57,804 (4) Foreign exchange contracts 1,735 1,814 1,674 1,757 Risk participation agreements 64 59 47 44 Mortgage Derivatives Interest rate lock commitments 224 355 — — Forward sale loan commitments 125 35 — — Forward sale hedge commitments 98 — — 31 Total derivatives not designated as hedges 52,320 60,053 51,801 59,636 Total gross derivatives on the balance sheet 52,604 60,130 60,280 67,965 Netting Adjustments (5) ( 25,893 ) ( 25,765 ) 8,178 8,135 Net derivatives on the balance sheet 26,711 34,365 52,102 59,830 Gross amounts not offset on the balance sheet: Financial instruments (6) 4,528 5,164 4,528 5,164 Cash collateral 8,275 12,420 720 3,130 Net derivatives not offset $ 13,908 $ 16,781 $ 46,854 $ 51,536 (1) All asset derivatives are reflected in other assets on the balance sheet. (2) All liability derivatives are reflected in other liabilities on the balance sheet. (3) Approximately $ 14,000 and $ 1.0 million of accrued interest receivable is included in the fair value of interest rate and loan level derivative assets, respectively, at March 31, 2026, in comparison to accrued interest payable of approximately $ 9,000 and accrued interest receivable of approximately $ 1.2 million, respectively, at December 31, 2025. (4) Approximately $ 284,000 and $ 1.0 million of accrued interest payable is included in the fair value of interest rate and loan level derivative liabilities, respectively, at March 31, 2026, in comparison to accrued interest payable of approximately $ 363,000 and $ 1.2 million, respectively, at December 31, 2025. (5) Netting adjustments represent the amounts recorded to convert derivative assets and liabilities cleared through CME from a gross basis to a net basis, inclusive of the variation margin payments, in accordance with applicable accounting guidance. (6) Reflects offsetting derivative positions with the same counterparty that are not netted on the balance sheet. 31 Table of Contents The table below presents the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) and current earnings for the periods indicated: Three Months Ended March 31 2026 2025 (Dollars in thousands) Derivatives designated as hedges (Loss) gain in OCI on derivatives (effective portion), net of tax $ ( 32 ) $ 3,456 Loss reclassified from OCI into interest income or interest expense (effective portion) $ ( 1,367 ) $ ( 2,670 ) Derivatives not designated as hedges Changes in fair value of customer related positions Other income $ 32 $ 36 Other expense ( 22 ) ( 17 ) Changes in fair value of mortgage derivatives Mortgage banking income 88 125 Total $ 98 $ 144 The Company’s derivative agreements with institutional counterparties contain various credit-risk related contingent provisions, such as requiring the Company to maintain a well-capitalized capital position. If the Company fails to meet these conditions, the counterparties could request the Company make immediate payment or demand that the Company provide immediate and ongoing full collateralization on derivative positions in net liability positions. All derivative instruments with credit-risk contingent features were in a net asset position at March 31, 2026 and December 31, 2025. By using derivatives, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty. The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s Board of Directors. In addition, certain derivative contracts executed bilaterally with a dealer counterparty in the over-the-counter market are cleared through a clearinghouse, whereby the clearinghouse becomes the counterparty to the transaction. As such, management believes the risk of incurring credit losses on derivative contracts with those counterparties is remote. The Company’s exposure relating to institutional counterparties was $ 45.4 million and $ 49.7 million at March 31, 2026 and December 31, 2025, respectively. The Company’s exposure relating to customer counterparties was approximately $ 5.0 million and $ 8.1 million at March 31, 2026 and December 31, 2025, respectively. Credit exposure may be reduced by the value of collateral pledged by the counterparty. NOTE 7 - FAIR VALUE MEASUREMENTS Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the assumptions applied by the Company when determining fair value reflect those that the Company determines market participants would use to price the asset or liability at the measurement date. If there has been a significant decrease in the volume and level of activity for the asset or liability, regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received if the asset were to be sold or that would be paid if the liability were to be transferred in an orderly market transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. When determining fair value, the Company considers pricing information and other inputs that are current as of the measurement date. In periods of market dislocation, the observability of prices and other inputs may be reduced for certain instruments, or not available at all. The unavailability or reduced availability of pricing or other input information could cause an instrument to be reclassified from one level to another. The Fair Value Measurements and Disclosures Topic of the FASB ASC defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to 32 Table of Contents unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the Fair Value Measurements and Disclosures Topic of the FASB ASC are described below: Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation Techniques There were no changes in the valuation techniques used during the three months ended March 31, 2026. Securities Trading and Equity Securities These equity securities are valued based on market quoted prices. These securities are categorized in Level 1 as they are actively traded and no valuation adjustments have been applied. U.S. Government Agency and U.S. Treasury Securities Fair value is estimated using either multi-dimensional spread tables or benchmarks. The inputs used include benchmark yields, reported trades, and broker/dealer quotes. These securities are classified as Level 2. Agency Mortgage-Backed Securities Fair value is estimated using either a matrix or benchmarks. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. These securities are categorized as Level 2. Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities The valuation model for these securities is volatility-driven and ratings based, and uses multi-dimensional spread tables. The inputs used include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is not observable, these securities are categorized as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2. Municipal Securities The fair value is estimated using a valuation matrix with inputs including bond interest rate tables, recent transactions, and yield relationships. These securities are categorized as Level 2. Pooled Issuer Trust Preferred Securities The fair value of pooled issuer trust preferred securities is estimated using external pricing models, discounted cash flow methodologies or similar techniques. The inputs used in these valuations include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is 33 Table of Contents not observable, these securities are classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2. Loans Held for Sale The Company has elected the fair value option to account for originated closed loans intended for sale. The fair value is measured on an individual loan basis using quoted market prices and when not available, comparable market value or discounted cash flow analysis may be utilized. These assets are typically classified as Level 2. Derivative Instruments Derivatives The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect non-performance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of non-performance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings. Additionally, in conjunction with fair value measurement guidance, the Company has made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its interest rate derivatives and risk participation agreements may also utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of March 31, 2026 and December 31, 2025, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are properly classified as Level 2. Mortgage Derivatives The fair value of mortgage derivatives is determined based on current market prices for similar assets in the secondary market and, therefore, classified as Level 2 within the fair value hierarchy. Individually Assessed Collateral Dependent Loans In accordance with the CECL standard, expected credit losses on individually assessed loans deemed to be collateral dependent are valued based upon the lower of amortized cost or fair value of the underlying collateral less costs to sell. The inputs used in the appraisals of the collateral are not always observable, and in such cases the loans may be classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2. Other Real Estate Owned and Other Foreclosed Assets Other Real Estate Owned (“OREO”) and Other Foreclosed Assets, when applicable, are valued at the lower of cost or fair value of the property, less estimated costs to sell. The fair values are generally estimated based upon recent appraisal values of the property less costs to sell the property. Certain inputs used in appraisals are not always observable, and therefore OREO and Other Foreclosed Assets may be classified as Level 3 within the fair value hierarchy. 34 Table of Contents Assets and liabilities measured at fair value on a recurring and non-recurring basis were as follows at the dates indicated: Fair Value Measurements at Reporting Date Using Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2026 (Dollars in thousands) Recurring fair value measurements Assets Trading securities $ 5,525 $ 5,525 $ — $ — Equity securities 21,518 21,518 — — Securities available for sale U.S. government agency securities 218,560 — 218,560 — U.S. treasury securities 422,356 — 422,356 — Agency mortgage-backed securities 919,655 — 919,655 — Agency collateralized mortgage obligations 259,987 — 259,987 — Municipal securities 230,445 — 230,445 — Pooled trust preferred securities issued by banks and insurers 1,044 — 1,044 — Small business administration pooled securities 36,318 — 36,318 — Loans held for sale 16,758 — 16,758 — Derivative instruments 52,604 — 52,604 — Liabilities Derivative instruments 60,280 — 60,280 — Total recurring fair value measurements $ 2,124,490 $ 27,043 $ 2,097,447 $ — Non-recurring fair value measurements Assets Individually assessed collateral dependent loans (1) $ 73,348 $ — $ — $ 73,348 Other real estate owned and other foreclosed assets 2,100 — — 2,100 Total non-recurring fair value measurements $ 75,448 $ — $ — $ 75,448 35 Table of Contents Fair Value Measurements at Reporting Date Using Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2025 (Dollars in thousands) Recurring fair value measurements Assets Trading securities $ 4,720 $ 4,720 $ — $ — Equity securities 21,581 21,581 — — Securities available for sale U.S. government agency securities 218,672 — 218,672 — U.S. treasury securities 471,084 — 471,084 — Agency mortgage-backed securities 772,963 — 772,963 — Agency collateralized mortgage obligations 269,576 — 269,576 — Municipal securities 233,078 — 233,078 — Pooled trust preferred securities issued by banks and insurers 1,042 — 1,042 — Small business administration pooled securities 37,832 — 37,832 — Loans held for sale 35,909 — 35,909 — Derivative instruments 60,130 — 60,130 — Liabilities Derivative instruments 67,965 — 67,965 — Total recurring fair value measurements, net $ 2,058,622 $ 26,301 $ 2,032,321 $ — Non-recurring fair value measurements Assets Individually assessed collateral dependent loans (1) $ 79,868 $ — $ — $ 79,868 Other real estate owned and other foreclosed assets 2,100 — — 2,100 Total non-recurring fair value measurements $ 81,968 $ — $ — $ 81,968 (1) The carrying value of individually assessed collateral dependent loans is based on the lower of amortized cost or fair value of the underlying collateral less costs to sell. The fair value of the underlying collateral is generally determined through independent appraisals, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. 36 Table of Contents The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below at the dates indicated: Fair Value Measurements at Reporting Date Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2026 (Dollars in thousands) Financial assets Securities held to maturity (a) U.S. treasury securities $ 100,892 $ 97,244 $ — $ 97,244 $ — Agency mortgage-backed securities 686,110 649,376 — 649,376 — Agency collateralized mortgage obligations 360,263 314,392 — 314,392 — Small business administration pooled securities 109,301 105,290 — 105,290 — Loans, net of allowance for credit losses (b) 18,161,570 17,831,282 — — 17,831,282 Federal Home Loan Bank stock (c) 17,752 17,752 — 17,752 — Cash surrender value of life insurance policies (d) 380,423 380,423 — 380,423 — Financial liabilities Deposit liabilities, other than time deposits (e) $ 16,842,216 $ 16,842,216 $ — $ 16,842,216 $ — Time certificates of deposits (f) 3,255,294 3,248,416 — 3,248,416 — Federal Home Loan Bank and other borrowings (f) 316,734 317,436 — 317,436 — Line of credit (f) 99,969 103,723 — 103,723 — Junior subordinated debentures (g) 62,863 62,520 — 62,520 — Subordinated debentures (h) 296,690 306,790 — — 306,790 37 Table of Contents Fair Value Measurements at Reporting Date Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2025 (Dollars in thousands) Financial assets Securities held to maturity (a) U.S. treasury securities $ 100,872 $ 97,124 $ — $ 97,124 $ — Agency mortgage-backed securities 694,903 659,415 — 659,415 — Agency collateralized mortgage obligations 370,698 325,798 — 325,798 — Small business administration pooled securities 112,554 108,396 — 108,396 — Loans, net of allowance for credit losses (b) 18,234,032 17,842,036 — — 17,842,036 Federal Home Loan Bank stock (c) 21,835 21,835 — 21,835 — Cash surrender value of life insurance policies (d) 378,576 378,576 — 378,576 — Financial liabilities Deposit liabilities, other than time deposits (e) $ 16,858,570 $ 16,858,570 $ — $ 16,858,570 $ — Time certificates of deposits (f) 3,268,220 3,262,605 — 3,262,605 — Federal Home Loan Bank and other borrowings (f) 416,549 417,352 — 417,352 — Line of credit (f) 49,953 52,494 — 52,494 — Junior subordinated debentures (g) 62,862 62,492 — 62,492 — Subordinated debentures (f) 296,483 308,794 — — 308,794 (a) The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis. (b) Fair value of loans is measured using the exit price valuation method, determined primarily by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows, while incorporating liquidity and credit assumptions. Additionally, this amount excludes individually assessed collateral dependent loans, which are deemed to be marked to fair value on a non-recurring basis. (c) Federal Home Loan Bank stock has no quoted market value and is carried at cost, therefore the carrying amount approximates fair value. (d) Cash surrender value of life insurance policies is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore, carrying amount approximates fair value. (e) Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date. (f) Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities. (g) Fair value was determined based upon market prices of securities with similar terms and maturities. This summary excludes certain financial assets and liabilities for which the carrying value approximates fair value. For financial assets, these may include cash and due from banks, federal funds sold and short-term investments. For financial liabilities, these may include federal funds purchased. These instruments would all be considered to be classified as Level 1 within the fair value hierarchy. Also excluded from the summary are financial instruments measured at fair value on a recurring and non-recurring basis, as previously described. The Company considers its current use of financial instruments to be the highest and best use of the instruments. 38 Table of Contents NOTE 8 - REVENUE RECOGNITION The Company has disaggregated its revenue from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following table presents the revenue streams that the Company has disaggregated for the periods indicated: Three Months Ended March 31 2026 March 31 2025 (Dollars in thousands) Deposit account fees (inclusive of cash management fees) $ 9,249 $ 7,053 Interchange fees 3,365 3,083 ATM fees 1,085 1,032 Investment management - wealth management and advisory services 12,849 10,022 Investment management - retail investments and insurance revenue 1,316 1,198 Payment processing income 779 560 Credit card income 814 587 Other non-interest income 1,542 1,563 Total non-interest income in-scope of ASC 606 30,999 25,098 Total non-interest income out-of-scope of ASC 606 9,263 7,441 Total non-interest income $ 40,262 $ 32,539 In each of the revenue streams identified above, there were no significant judgments made in determining or allocating the transaction price, as the consideration and service requirements are generally explicitly identified in the associated contracts. The following table provides the amount of investment management revenue earned but not received as of the dates indicated: March 31, 2026 December 31, 2025 (Dollars in thousands) Receivables, included in other assets $ 8,011 $ 7,884 39 Table of Contents NOTE 9 - OTHER COMPREHENSIVE INCOME (LOSS) The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the periods indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): Three Months Ended March 31, 2026 Pre-Tax Amount Tax (Expense) Benefit After Tax Amount (Dollars in thousands) Change in fair value of securities available for sale $ ( 12,282 ) $ 2,789 $ ( 9,493 ) Less: net security losses reclassified into other non-interest expense — — — Net change in fair value of securities available for sale ( 12,282 ) 2,789 ( 9,493 ) Change in fair value of cash flow hedges ( 1,412 ) 388 ( 1,024 ) Less: net cash flow hedge losses reclassified into interest income or interest expense ( 1,367 ) 375 ( 992 ) Net change in fair value of cash flow hedges ( 45 ) 13 ( 32 ) Amortization of net actuarial gains ( 30 ) 8 ( 22 ) Amortization of net prior service costs 4 ( 1 ) 3 Net change in other comprehensive income for defined benefit postretirement plans (1) ( 26 ) 7 ( 19 ) Total other comprehensive loss $ ( 12,353 ) $ 2,809 $ ( 9,544 ) Three Months Ended March 31, 2025 Pre-Tax Amount Tax (Expense) Benefit After Tax Amount (Dollars in thousands) Change in fair value of securities available for sale $ 21,264 $ ( 4,870 ) $ 16,394 Less: net security losses reclassified into other non-interest expense — — — Net change in fair value of securities available for sale 21,264 ( 4,870 ) 16,394 Change in fair value of cash flow hedges 2,089 ( 572 ) 1,517 Less: net cash flow hedge losses reclassified into interest income or interest expense ( 2,670 ) 731 ( 1,939 ) Net change in fair value of cash flow hedges 4,759 ( 1,303 ) 3,456 Amortization of net actuarial gains ( 66 ) 18 ( 48 ) Amortization of net prior service costs 4 ( 1 ) 3 Net change in other comprehensive income for defined benefit postretirement plans (1) ( 62 ) 17 ( 45 ) Total other comprehensive income $ 25,961 $ ( 6,156 ) $ 19,805 (1) The amortization of prior service costs is included in the computation of net periodic pension cost as disclosed in Note 13 - Employee Benefit Plans within the Notes to the Consolidated Financial Statements included in Item 8 of the 2025 Form 10-K. 40 Table of Contents Information on the Company’s accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the dates indicated: Unrealized Gain (Loss) on Securities Unrealized Gain (Loss) on Cash Flow Hedge Defined Benefit Postretirement Plans Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) 2026 Beginning balance: January 1, 2026 $ ( 36,727 ) $ ( 5,509 ) $ 2,482 $ ( 39,754 ) Net change in other comprehensive loss ( 9,493 ) ( 32 ) ( 19 ) ( 9,544 ) Ending balance: March 31, 2026 $ ( 46,220 ) $ ( 5,541 ) $ 2,463 $ ( 49,298 ) 2025 Beginning balance: January 1, 2025 $ ( 79,488 ) $ ( 13,862 ) $ 3,343 $ ( 90,007 ) Net change in other comprehensive income (loss) 16,394 3,456 ( 45 ) 19,805 Ending balance: March 31, 2025 $ ( 63,094 ) $ ( 10,406 ) $ 3,298 $ ( 70,202 ) NOTE 10 - COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance Sheet Risk In the normal course of business, the Company enters into various transactions to meet the financing needs of its customers, which, in accordance with GAAP, are not included in its Consolidated Balance Sheets. These transactions include commitments to extend credit and standby letters of credit, and loan exposures with recourse, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of these commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. The Company has certain loan exposures for which there is recourse. These loan relationships could require the Company to repurchase or cover certain losses per agreements for certain loans that are either sold or referred to third parties. Standby letters of credit are written conditional commitments issued to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, the Company would be entitled to seek recovery from the customer. The Company’s policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements. The fees collected in connection with the issuance of standby letters of credit are representative of the fair value of the Company’s obligation undertaken in issuing the guarantee. In accordance with applicable accounting standards related to guarantees, fees collected in connection with the issuance of standby letters of credit are deferred. The fees are then recognized in income proportionately over the life of the standby letter of credit agreement. The deferred standby letter of credit fees represent the fair value of the Company’s potential obligations under the standby letter of credit guarantees. 41 Table of Contents The following table summarizes the above financial instruments at the dates indicated: March 31, 2026 December 31, 2025 (Dollars in thousands) Commitments to extend credit $ 6,361,190 $ 6,378,011 Loan exposures sold with recourse 128,083 131,108 Standby letters of credit 68,108 65,559 Deferred standby letter of credit fees 464 432 Lease Commitments The Company leases space for offices, parking, and ATM locations, as well as certain branch locations under non-cancellable operating leases. Several of these leases contain renewal options to extend lease terms for a period of 1 to 20 years. During the quarter ended March 31, 2026, there were no significant changes in future minimum lease payments payable by the Company. See the 2025 Form 10-K for information regarding leases and other commitments. Other Contingencies At March 31, 2026, the Bank was involved in pending lawsuits, which management has reviewed with legal counsel and has taken into consideration the view of counsel as to their outcome. In the opinion of management, the final disposition of pending lawsuits is not expected to have a material adverse effect on the Company’s financial position or results of operations. NOTE 11 - SEGMENT INFORMATION The Company is a bank holding company, the principal subsidiary of which is the Bank. The Bank provides a variety of banking, investment, and financial services through its retail branches, commercial banking centers, investment management offices, and mortgage lending centers throughout Eastern Massachusetts, as well as in Worcester County, Southern New Hampshire, and Rhode Island. The Bank is a community-oriented commercial bank, and has only one reportable segment, which is community banking. The community banking segment derives revenues primarily from providing loans to individuals and small-to-medium sized businesses in its market area. The accounting policies of the community banking segment are the same as those described in Note 1, “Summary of Significant Accounting Policies” within the Notes to Consolidated Financial Statements included in Item 8 of the 2025 Form 10-K . The Company’s reportable segment is determined by the Chief Executive Officer and Chief Financial Officer, who are the Company’s designated chief operating decision makers (“CODMs”), based upon information about the Company’s products and services offered to customers as part of its community banking operations. The CODMs assess performance for the community banking segment and decide how to allocate resources based on the Company’s consolidated net income and diluted earnings per share, as reported in the Consolidated Statements of Income. The significant expense categories reviewed by the CODMs are also consistent with those presented on the Consolidated Statements of Income, with an emphasis on interest expense on deposits and borrowings, as well as provision for credit losses, salaries and benefits, and occupancy and equipment costs. Other segment expenses are comprised of the remaining expense categories presented on the Consolidated Statements of Income, including other non-interest expenses. Other non-interest expenses are inclusive of costs related to professional services, advertising, technology and communications costs, and various other general and administrative costs. Net income and diluted earnings per share are used by the CODMs to monitor management’s budgeted results versus actual, as we ll as to benchmark the Company’s relative performance against other banking institutions in its peer group. The results of these mon itoring and benchmarking analyses are used in assessing performance of the community banking segment and to inform decisions surrounding general corporate strategy, capital allocations, and compensation. A sset details provided to the CODMs are consistent with those reported on the Consolidated Balance Sheets, with an emphasis on interest-earning assets, including loans and investment securities, which provide the majority of revenues generated by the community banking segment. 42 Table of Contents