INDEPENDENT BANK CORP 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with the consolidated financial statements, notes and tables included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (the “2025 Form 10-K”). Cautionary Statement Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q (this “Report”), in Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by forward-looking terminology such as “should,” “could,” “will,” “may,” “expect,” “believe,” “forecast,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” “estimate,” “intend,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties and our actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, in addition to those risk factors listed under the “Risk Factors” section of the 2025 Form 10-K, include but are not limited to: • adverse economic conditions in the regional and local economies within the New England region and the Company’s market area; • events impacting the financial services industry, including high profile bank failures, and any resulting decreased confidence in banks among depositors, investors, and other counterparties, as well as competition for deposits and significant disruption, volatility and depressed valuations of equity and other securities of banks in the capital markets; • the effects to the Company of an increasingly competitive labor market, including the possibility that the Company will have to devote significant resources to attract and retain qualified personnel; • political and policy uncertainties, changes in U.S. and international trade policies, such as tariffs or other factors, and the potential impact of such factors on the Company and its customers, including the potential for decreases in deposits and loan demand, unanticipated loan delinquencies, loss of collateral and decreased service re venues ; • the instability or volatility in financial markets and unfavorable domestic or global general economic, political or business conditions, including international conflicts and hostilities, such as the ongoing conflict involving Israel, the U.S. and Iran; • unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on the Company’s local economies or the Company’s business caused by adverse weather conditions and natural disasters, changes in climate, public health crises or other external events and any actions taken by governmental authorities in response to any such events; • adverse changes or volatility in the local real estate market, including limitations on rent growth, increases in operating expenses, reductions in property cash flows, reductions in collateral values, and decreased investor demand, which may be exacerbated by legislative or regulatory actions such as rent control or tenant protection laws, including a pending ballot initiative which would establish rent control for all residential properties in Massachusetts, subject to limited exceptions; • changes in interest rates and any resulting impact on interest earning assets and/or interest bearing liabilities, the level of voluntary prepayments on loans and the receipt of payments on mortgage-backed securities, decreased loan demand or increased difficulty in the ability of borrowers to repay variable rate loans; • risks related to the Company’s acquisition activities, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; impairment of goodwill and/or other intangibles; and the Company’s inability to achieve expected revenues, cost savings, synergies, and other benefits at levels or within the timeframes originally anticipated; • the effect of laws, regulations, new requirements or expectations, or additional regulatory oversight in the highly regulated financial services industry, and the resulting need to invest in technology to meet heightened regulatory expectations, increased costs of compliance or required adjustments to strategy; • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; • higher than expected tax expense, including as a result of failure to comply with general tax laws and changes in tax laws; 43 Table of Contents • increased competition in the Company’s market areas, including competition that could impact deposit gathering, retention of deposits and the cost of deposits, increased competition due to the demand for innovative products and service offerings, and competition from non-depository institutions which may be subject to fewer regulatory constraints and lower cost structures; • a deterioration in the conditions of the securities markets; • a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainties surrounding the federal budget; • inability to adapt to changes in information technology, including changes to industry accepted delivery models driven by a migration to the internet as a means of service delivery, including any inability to effectively implement new technology-driven products, such as artificial intelligence (“AI”); • electronic or other fraudulent activity within the financial services industry, especially in the commercial banking sector; • adverse changes in consumer spending and savings habits; • the effect of laws and regulations regarding the financial services industry, including the need to invest in technology to meet heightened regulatory expectations or the introduction of new requirements or expectations resulting in increased costs of compliance or required adjustments to strategy; • changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Company’s business and the associated costs of such changes; • the Company’s potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions; • changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters; • operational risks related to the Company and its customers’ reliance on information technology; cyber threats, attacks, intrusions, and fraud; and outages or other issues impacting the Company or its third party service providers which could lead to interruptions or disruptions of the Company’s operating systems, including systems that are customer facing, and adversely impact the Company’s business; • risks related to the development and use of AI by the Company, its third-party vendors, clients and counterparties; and • any unexpected material adverse changes in the Company’s operations or earnings. Except as required by law, the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise. Any public statements or disclosures by the Company following this Report which modify or impact any of the forward-looking statements contained in this Report will be deemed to modify or supersede such statements in this Report. All material intercompany balances and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current year’s presentation, including a reclassification of the Company’s small business portfolio, with the majority of the portfolio reclassified into the commercial and industrial category, and the remainder of the portfolio, consisting of loans secured by non-owner occupied real estate, reclassified to the commercial real estate category. 44 Table of Contents Selected Quarterly Financial Data The selected consolidated financial and other data of the Company set forth below does not purport to be complete and should be read in conjunction with, and is qualified in its entirety by, the more detailed information, including the Consolidated Financial Statements and related notes, appearing elsewhere in this Report. Three Months Ended March 31 2026 December 31 2025 September 30 2025 June 30 2025 March 31 2025 (Dollars in thousands, except per share data) Financial condition data Securities $ 3,371,974 $ 3,309,575 $ 3,325,015 $ 2,695,280 $ 2,719,792 Loans 18,425,478 18,503,777 18,452,443 14,533,828 14,491,969 Allowance for credit losses (190,560) (189,877) (190,476) (144,773) (144,092) Goodwill and other intangible assets 1,217,297 1,224,186 1,225,106 994,814 996,013 Total assets 24,783,580 24,912,896 24,993,239 20,048,934 19,888,209 Total deposits 20,097,510 20,126,790 20,295,869 15,893,740 15,676,017 Total borrowings 776,256 825,847 775,377 759,428 859,874 Stockholders’ equity 3,542,041 3,565,728 3,546,887 3,074,856 3,033,392 Non-performing loans 96,643 83,557 86,597 56,217 89,493 Non-performing assets 98,743 85,657 88,697 58,317 89,493 Income statement Interest income $ 290,265 $ 297,535 $ 294,753 $ 218,192 $ 211,920 Interest expense 77,806 85,049 91,409 70,696 66,415 Net interest income 212,459 212,486 203,344 147,496 145,505 Provision for credit losses 5,500 4,750 38,519 7,200 15,000 Non-interest income 40,262 41,445 40,398 34,308 32,539 Non-interest expenses 142,918 154,370 160,836 108,798 105,878 Net income 79,919 75,335 34,262 51,101 44,424 Per share data Net income—basic $ 1.63 $ 1.52 $ 0.69 $ 1.20 $ 1.04 Net income—diluted 1.63 1.52 0.69 1.20 1.04 Cash dividends declared 0.64 0.59 0.59 0.59 0.59 Book value per share 72.92 72.41 71.24 72.13 71.19 Tangible book value per share (1) 47.86 47.55 46.63 48.80 47.81 Performance ratios Return on average assets 1.31 % 1.20 % 0.55 % 1.04 % 0.93 % Return on average common equity 9.02 % 8.38 % 3.82 % 6.68 % 5.94 % Net interest margin (on a fully tax equivalent basis) 3.90 % 3.77 % 3.62 % 3.37 % 3.42 % Dividend payout ratio 36.36 % 39.01 % 73.41 % 49.20 % 54.53 % Asset Quality Ratios Non-performing loans as a percent of gross loans 0.52 % 0.45 % 0.47 % 0.39 % 0.62 % Non-performing assets as a percent of total assets 0.40 % 0.34 % 0.35 % 0.29 % 0.45 % Allowance for credit losses as a percent of total loans 1.03 % 1.03 % 1.03 % 1.00 % 0.99 % 45 Table of Contents Allowance for credit losses as a percent of non-performing loans 197.18 % 227.24 % 219.96 % 257.53 % 161.01 % Capital ratios Equity to assets 14.29 % 14.31 % 14.19 % 15.34 % 15.25 % Tangible equity to tangible assets (1) 9.86 % 9.88 % 9.77 % 10.92 % 10.78 % Tier 1 leverage capital ratio 10.23 % 10.15 % 10.11 % 11.44 % 11.43 % Common equity tier 1 capital ratio 12.89 % 12.86 % 12.84 % 14.70 % 14.52 % Tier 1 risk-based capital ratio 12.89 % 12.86 % 12.84 % 14.70 % 14.52 % Total risk-based capital ratio 15.76 % 15.70 % 15.68 % 18.08 % 17.91 % (1) Represents a non-GAAP measure. For reconciliation to GAAP book value per share, see Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Executive Level Overview - Non-GAAP Measures” below. 46 Table of Contents Executive Level Overview Management evaluates the Company’s operating results and financial condition using measures that include net income, earnings per share, return on assets and equity, return on tangible common equity, net interest margin, tangible book value per share, asset quality indicators, and many others. These metrics are used by management to make key decisions regarding the Company’s balance sheet, liquidity, interest rate sensitivity, and capital resources and assist with identifying opportunities for improving the Company’s financial position or operating results. The Company is focused on organic growth, but will also consider acquisition opportunities that are expected to provide a satisfactory financial return. Financial Highlights • The company reported net income of $79.9 million, or $1.63 on a diluted earnings per share basis, as compared to $44.4 million, or $1.04 on a diluted earnings per share basis, for the three months ended March 31, 2025. The increase in net income was driven primarily by the Company’s July 2025 acquisition of Enterprise Bancorp Inc. (“Enterprise”) and improving net interest margin. • Financial results for the first quarter of 2026 were inclusive of $3.0 million of pre-tax merger-related costs related to the Enterprise acquisition, as compared to $1.2 million during the same prior year period. Excluding these merger-related costs associated with the Enterprise acquisition, and their related tax effects, operating net income was $82.1 million, or $1.68 per diluted share for the first quarter of 2026, as compared to $45.3 million, or $1.06 per diluted share basis for the first quarter of 2025 (1) . • The net interest margin of 3.90% compared to 3.42% for the three months ended March 31, 2025, and was driven by higher yields on interest-earning assets and decreased funding costs. • Loan balances decreased by $78.3 million from December 31, 2025, with core commercial and industrial growth offset by runoff in the commercial and residential portfolios. • Deposits decreased $29.3 million from December 31, 2025, driven primarily by seasonality in business operating balances. • The Company executed on its previously announced $150 million stock repurchase plan, buying back approximately 802,000 shares of common stock for $63.3 million at an average price per share of $78.85. • The Company’s tangible book value per share at March 31, 2026 grew by $0.31 compared to December 31, 2025 (1) . • The Company increased its quarterly dividend by 8.5% in the first quarter of 2026, from $0.59 to $0.64 per share. • The first quarter 2025 provision for credit losses increased to $5.5 million, as compared to $4.8 million for the fourth quarter of 2025. • Net charge-offs decreased slightly to $4.8 million, as compared to $5.3 million for the fourth quarter of 2025, representing 0.11% and 0.12%, respectively, of average loans annualized. The largest individual charge-off in the quarter was $4.2 million related to a commercial real estate loan that was partially reserved for in the prior quarter. • During the first quarter of 2026, the Company’s non-performing loans increased to $96.6 million as compared to $83.6 million at December 31, 2025. (1) Represents a non-GAAP measure. See “Non-GAAP Measures” below for reconciliation to the corresponding GAAP measures. 47 Table of Contents Non-GAAP Measures When management assesses the Company’s financial performance for purposes of making day-to-day and strategic decisions, it does so based upon the performance of its core banking business, which is primarily derived from the combination of net interest income and non-interest or fee income, reduced by operating expenses, the provision for credit losses, and the impact of income taxes and other non-core items shown in the table that follows. There are items that impact the Company’s results that management believes are unrelated to its core banking business such as gains or losses on the sales of securities, merger and acquisition expenses, provision for credit losses on acquired portfolios, loss on extinguishment of debt, impairment and other items. Management, therefore, excludes items management considers to be non-core when computing the Company’s non-GAAP operating earnings and operating EPS, non-interest income on an operating basis, non-interest expense on an operating basis, and efficiency ratio on an operating basis. Management believes excluding these items facilitates greater visibility into the Company’s core banking business and underlying trends that may, to some extent, be obscured by inclusion of such items. Management also supplements its evaluation of financial performance with analysis of tangible book value per share (which is computed by dividing stockholders’ equity less goodwill and identifiable intangible assets, or “tangible common equity,” by common shares outstanding), and the tangible common equity ratio (which is computed by dividing tangible common equity by “tangible assets,” defined as total assets less goodwill and other intangibles). The Company has included information on tangible book value per share and the tangible common equity ratio because management believes that investors may find it useful to have access to the same analytical tools used by management. As a result of merger and acquisition activity, the Company has recognized goodwill and other intangible assets in conjunction with business combination accounting principles. Excluding the impact of goodwill and other intangibles in measuring asset and capital values for the ratios provided, along with other bank standard capital ratios, provides a framework to compare the capital adequacy of the Company to other companies in the financial services industry. These non-GAAP measures should not be viewed as a substitute for operating results and other financial measures determined in accordance with GAAP. An item which management excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP performance measures, including operating net income, operating EPS, tangible book value per share, and the tangible common equity ratio, are not necessarily comparable to non-GAAP performance measures which may be presented by other companies. The following table summarizes the impact of non-core items on net income and reconciles non-GAAP net operating earnings to net income available to common shareholders for the periods indicated: Three Months Ended March 31 Net Income Diluted Earnings Per Share 2026 2025 2026 2025 (Dollars in thousands, except per share data) Net income available to common shareholders (GAAP) $ 79,919 $ 44,424 $ 1.63 $ 1.04 Non-GAAP adjustments Non-interest expense components Add: merger and acquisition expenses 3,024 1,155 0.07 0.03 Non-core increases to income before taxes 3,024 1,155 0.07 0.03 Net taxes associated with non-core items (1) (830) (325) (0.02) (0.01) Non-core increases to net income 2,194 830 0.05 0.02 Operating net income (Non-GAAP) $ 82,113 $ 45,254 $ 1.68 $ 1.06 (1) The net tax benefit associated with non-core items is determined by assessing whether each non-core item is included or excluded from net taxable income and applying the Company’s combined marginal tax rate to only those items included in net taxable income. 48 Table of Contents The following table summarizes the calculation of tangible common equity to tangible assets ratio and tangible book value per share and shows the reconciliation of non-GAAP measures: March 31 2026 December 31 2025 September 30 2025 June 30 2025 March 31 2025 Tangible common equity (Dollars in thousands, except per share data) Stockholders’ equity (GAAP) $ 3,542,041 $ 3,565,728 $ 3,546,887 $ 3,074,856 $ 3,033,392 (a) Less: Goodwill and other intangibles 1,217,297 1,224,186 1,231,242 994,814 996,013 Tangible common equity (Non-GAAP) 2,324,744 2,341,542 2,315,645 2,080,042 2,037,379 (b) Common shares 48,572,237 49,243,813 49,787,305 42,627,286 42,610,271 (c) Book value per share (GAAP) $ 72.92 $ 72.41 $ 71.24 $ 72.13 $ 71.19 (a/c) Tangible book value per share (Non-GAAP) $ 47.86 $ 47.55 $ 46.51 $ 48.80 $ 47.81 (b/c) Critical Accounting Estimates Critical accounting policies are defined as those that are reflective of significant management judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. Certain estimates associated with these policies inherently have a greater reliance on the use of assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. These critical accounting estimates are defined as estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material impact on financial condition or results of operations. There have been no material changes in critical accounting estimates during the first three months of 2026. Refer to “Critical Accounting Estimates” in Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the 2025 Form 10-K for a complete listing of critical accounting policies. FINANCIAL POSITION Securities Portfolio The Company's securities portfolio primarily consists of U.S. Treasury, U.S. government agency securities, agency mortgage-backed securities, agency collateralized mortgage obligations, municipal securities and small business administration pooled securities. Also included in the Company’s securities portfolio are trading and equity securities related to certain employee benefit programs. The majority of these securities are investment grade debt obligations with average lives of five years or less. U.S. government agency securities entail a lesser degree of risk than loans made by the Bank by virtue of the guarantees that back them, require less capital under risk-based capital rules than non-insured or non-guaranteed mortgage loans, are more liquid than individual mortgage loans, and may be used to collateralize borrowings or other obligations of the Bank. The Bank views its securities portfolio as a source of income and liquidity. Interest and principal payments generated from securities provide a source of liquidity to fund loans and meet short-term cash needs. Total securities increased by $62.4 million, or 1.9%, to $3.4 billion at March 31, 2026 compared to $3.3 billion at December 31, 2025, driven by new purchases of $168.4 million in the available for sale portfolio which were partially offset by maturities, calls, and paydowns in the combined available for sale and held to maturity portfolios. Total securities represented 13.6% and 13.3% of total assets at March 31, 2026 and December 31, 2025, respectively. The Company estimates expected credit losses for its available for sale and held to maturity securities in accordance with the current expected credit loss (“CECL”) methodology. Further details regarding the Company's measurement of expected credit losses on securities can be found in Note 3 “Securities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report. Residential Mortgage Loan Sales The Bank’s residential mortgage loans are generally originated in compliance with terms, conditions and documentation which permit the sale of such loans to investors in the secondary market. Loan sales in the secondary market provide funds for additional lending and other banking activities. Depending on market conditions, the Bank may sell the servicing of the sold loans for a servicing released premium, simultaneous with the sale of the loan. For the remainder of the sold loans for which the Company retains the servicing, a mortgage servicing asset is recognized. Additionally, as part of its asset/liability management strategy, the Bank may opt to retain certain residential real estate loan originations for its portfolio. When a loan is sold, the Company enters into agreements that contain representations and 49 Table of Contents warranties about the characteristics of the loans sold and their origination. The Company may be required to either repurchase mortgage loans or to indemnify the purchaser from losses if representations and warranties are found to be not accurate in all material respects. The Company incurred no losses related to residential mortgage repurchases during the three months ended March 31, 2026 and 2025. The volume of residential real estate loan sales fluctuate based on customer demands, which is often driven by the interest rate environment. The following table shows the total residential real estate loans closed and the breakdown of amounts held in portfolio or sold (or held for sale) in the secondary market during the periods indicated: Table 1 - Closed Residential Real Estate Loans Three Months Ended March 31 2026 2025 (Dollars in thousands) Held in portfolio $ 39,577 $ 45,250 Sold or held for sale in the secondary market 76,473 38,272 Total closed loans $ 116,050 $ 83,522 When a loan is sold, the Company may decide to also sell the servicing of sold loans for a servicing release premium, simultaneously with the sale of the loan, or the Company may opt to sell the loan and retain the servicing. The table below reflects additional information related to the loans sold during the periods indicated and the sale or retention of the related servicing rights: Table 2 - Residential Mortgage Loan Sales Three Months Ended March 31 2026 2025 (Dollars in thousands) Sold with servicing rights released $ 94,756 $ 35,971 Sold with servicing rights retained (1) 452 1,105 Total loans sold $ 95,208 $ 37,076 (1) All loans sold with servicing rights retained during the above periods were sold without recourse. In the event of a sale with servicing rights retained, a mortgage servicing asset is established, which represents the then current estimated fair value based on market prices for comparable mortgage servicing contracts, when available, or alternatively is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing rights are recorded in other assets in the Consolidated Balance Sheets, are amortized in proportion to and over the period of estimated net servicing income, and are assessed for impairment based on fair value at each reporting date. Impairment is determined by stratifying the rights based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. The principal balance of loans serviced by the Bank on behalf of investors was $260.9 million, $266.0 million and $275.8 million at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. 50 Table of Contents The following table shows the adjusted cost of the servicing rights associated with these loans and the changes for the periods indicated: Table 3 - Mortgage Servicing Asset Three Months Ended March 31 2026 2025 (Dollars in thousands) Balance at beginning of period $ 2,209 $ 2,466 Additions 5 8 Amortization (80) (86) Change in valuation allowance 37 (14) Balance at end of period $ 2,171 $ 2,374 See Note 6, “Derivative and Hedging Activities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report for more information on mortgage activity and mortgage related derivatives. Loan Portfolio The Company’s total loan portfolio at March 31, 2026 decreased $78.3 million, or 0.4%, when compared to December 31, 2025, driven primarily by a decrease in the combined commercial real estate and construction portfolio of $89.6 million, or 0.9%, due to elevated payoffs and amortization of balances, including a reduction of $55.9 million in the Company’s office portfolio. This decrease was partially offset by growth in commercial and industrial portfolio of $39.7 million, or 0.9% (3.5% annualized), despite runoff of $38.7 million attributable to the Company’s strategic exit from the dealer finance business. The total consumer portfolio decreased $28.3 million, or 0.7%, primarily attributable to a decline in the residential real estate portfolio of $31.3 million, or 1.1%, reflecting seasonally lower volume. This decrease was partially offset by a modest increase in the home equity portfolio of $10.1 million, or 0.8% (3.2% annualized). The Bank’s commercial real estate portfolio, inclusive of commercial construction, is the Bank’s largest loan type concentration. The Bank believes this portfolio is well diversified with loans secured by a variety of property types, such as non-owner-occupied commercial real estate, retail, office, industrial, warehouse, industrial development bonds and other special purpose properties, such as hotels, motels, nursing homes, restaurants, churches, and recreational facilities. The portfolio also includes loans secured by certain residential-related property types including multi-family apartment buildings, residential development tracts and condominiums. 51 Table of Contents The following pie chart shows the diversification of the commercial real estate loan portfolio as of March 31, 2026: * Inclusive of commercial construction balances. Select Statistics Regarding the Commercial Real Estate Portfolio (Dollars in thousands) Average loan size $ 1,547 Largest individual commercial real estate mortgage outstanding $ 59,029 Commercial real estate non-performing loans/commercial real estate loans 0.68 % Commercial and industrial loans consist of both term loans and revolving or non-revolving lines of credit. Term loans generally have a repayment schedule of five years or less and are collateralized by equipment, machinery or other business assets. In addition, the Bank generally obtains personal guarantees from the principal owners of the borrower for its commercial and industrial loans. Lines of credit, including asset-based lines, are typically collateralized by accounts receivable, inventory, or both, as well as other business assets. Commercial lines of credit and asset-based lines generally are reviewed on an annual basis and usually require either a borrowing base formula or reflect varying levels of repayment of principal during the course of a year. Additionally, other commercial term loans are typically secured by machinery and equipment, and/or owner occupied commercial real estate. To limit the risk within this portfolio, the loans are made across a diverse set of industry groups. 52 Table of Contents The following pie chart shows the diversification of the commercial and industrial portfolio as of March 31, 2026: Select Statistics Regarding the Commercial and Industrial Portfolio (Dollars in thousands) Average loan size (excluding floor plan tranches) $ 272 Largest individual commercial and industrial loan outstanding $ 45,095 Commercial and industrial non-performing loans/commercial and industrial loans 0.18 % 53 Table of Contents The Company’s consumer portfolio primarily consists of both fixed-rate and adjustable-rate residential real estate loans as well as residential construction lending related to single-home residential development within the Company’s market area. The Company also provides home equity loans and lines of credit that may be made as a fixed-rate term loan or under a variable rate revolving line of credit secured by a first or junior mortgage on the borrower’s residence or second home. Additionally, the Company makes loans for other personal needs. Other consumer loans primarily consist of investment management secured lines of credit, installment loans and overdraft protections. The residential real estate, home equity and other consumer portfolios totaled $4.2 billion at March 31, 2026, as noted below: (Dollars in thousands) Average loan size $ 123 Largest individual consumer loan outstanding $ 7,860 Consumer non-performing loans/consumer loans 0.54 % Asset Quality The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this assessment, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, non-performing and/or put on non-accrual status. Further details surrounding relevant asset quality categories are summarized below: Delinquency The Company’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations. The Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame. Generally, the Company requires that a delinquency notice be mailed to a borrower upon expiration of a grace period (typically no longer than 15 days beyond the due date). Reminder notices may be sent and telephone calls may be made prior to the expiration of the grace period. If the delinquent status is not resolved within a reasonable time frame following the mailing of a delinquency notice, the Bank’s personnel charged with managing its loan portfolios contacts the borrower to ascertain the reasons for delinquency and the prospects for payment. Any subsequent actions taken to resolve the delinquency will depend upon the nature of the loan and the length of time that the loan has been delinquent. The borrower’s needs are considered as much as reasonably possible without jeopardizing the Bank’s position. A late charge is usually assessed on loans upon expiration of the grace period as permitted by loan agreements. Non-accrual Loans As a general rule, loans 90 days or more past due with respect to principal or interest are classified as non-accrual loans, or sooner if management considers such action to be prudent. However, certain loans that are 90 days or 54 more past due may be kept on an accruing status if the loans are well secured and in the process of collection. Income accruals are suspended on all non-accrual loans and all previously accrued and uncollected interest is reversed against current income. A loan remains on non-accrual status until it becomes current with respect to principal and interest and remains current for a minimum period of six months, the loan is liquidated, or when the loan is determined to be uncollectible and is charged-off against the allowance for credit losses. Loan Modifications In the course of resolving problem loans, the Company may choose to modify the contractual terms of certain loans. The Company attempts to work out an alternative payment schedule with the borrower in order to avoid or cure a default. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and may include adjustments to term extensions, interest rates, and accommodations for other than insignificant payment delays and/or a combination thereof. These actions are intended to minimize economic loss and avoid foreclosure or repossession of collateral. If such efforts by the Company do not result in satisfactory performance, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work out a satisfactory payment plan. All loan modifications are reviewed by the Company to identify if a borrower is deemed to be experiencing financial difficulty at time of the modification. Purchased Credit Deteriorated Loans Purchased Credit Deteriorated (“PCD”) loans are acquired loans which have shown a more-than-insignificant deterioration in credit quality since origination. PCD loans are recorded at amortized cost with an allowance for credit losses recorded upon purchase. Non-performing Assets Non-performing assets are typically comprised of non-performing loans and other real estate owned (“OREO”). Non-performing loans consist of non-accrual loans and loans that are 90 days or more past due but still accruing interest. OREO consists of real estate properties, which have primarily served as collateral to secure loans, that are controlled or owned by the Bank. These properties are recorded at fair value less estimated costs to sell at the date control is established, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated costs to sell) of the foreclosed asset is charged to the allowance for credit losses. Subsequent declines in the fair value of the foreclosed asset below the new cost basis are recorded through the use of a valuation allowance. Subsequent increases in the fair value are recorded as reductions in the valuation allowance, but not below zero. All costs incurred thereafter in maintaining the property are generally charged to non-interest expense. In the event the real estate is utilized as a rental property, net rental income and expenses are recorded as incurred within non-interest expense. 55 Table of Contents The following table sets forth information regarding non-performing assets held by the Company at the dates indicated: Table 4 - Non-Performing Assets March 31 2026 December 31 2025 March 31 2025 (Dollars in thousands) Loans accounted for on a non-accrual basis Commercial and industrial $ 8,453 $ 9,160 $ 9,839 Commercial real estate 64,851 50,515 65,840 Commercial construction 698 3,693 — Residential real estate 15,593 15,043 10,966 Home equity 7,011 5,102 2,840 Other consumer 37 44 8 Total non-performing loans $ 96,643 $ 83,557 $ 89,493 Other real estate owned 2,100 2,100 — Total non-performing assets $ 98,743 $ 85,657 $ 89,493 Non-performing loans as a percent of gross loans 0.52 % 0.45 % 0.62 % Non-performing assets as a percent of total assets 0.40 % 0.34 % 0.45 % The following table summarizes the changes in non-performing assets for the periods indicated: Table 5 - Activity in Non-Performing Assets Three Months Ended March 31 2026 March 31 2025 (Dollars in thousands) Non-performing assets beginning balance $ 85,657 $ 101,529 New to non-performing 24,714 41,777 Loans charged-off (5,776) (41,400) Loans paid-off (5,272) (10,932) Loans restored to performing status (608) (1,356) Other 28 (125) Non-performing assets ending balance $ 98,743 $ 89,493 Allowance for Credit Losses The allowance for credit losses is maintained at a level that management considers appropriate to provide for the Company’s current estimate of expected lifetime credit losses on loans measured at amortized cost. The allowance is increased by providing for credit losses through a charge to expense and by credits for recoveries of loans previously charged-off and is reduced by loans being charged-off. In accordance with its Allowance for Credit Losses Program, the Company uses the CECL model methodology to estimate credit losses for financial assets on a collective basis for loans sharing similar risk characteristics using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output. The model estimates expected credit losses using loan level data over the contractual life of the exposure, which is adjusted for estimated prepayments. Economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period of 12 months, beyond which is a reversion to the Company’s historical long-run average over a period of six months. The Company’s qualitative assessment is structured based upon nine qualitative risk factors impacting the expected risk of loss within the loan portfolio, with an additional factor designed to capture model imprecision. Loans that do not share similar risk characteristics with any pools of assets are subject to individual assessment and are removed from the collectively assessed pools to avoid double counting. For the loans that will be individually assessed, 56 Table of Contents the Company uses either a discounted cash flow approach or a fair value of collateral approach. The latter approach is used for loans deemed to be collateral dependent or when foreclosure is probable. Management’s allowance for credit loss estimate inco rporates an economic forecast over a reasonable and supportable period of 12 months. As of March 31, 2026, management utilized the Moody’s S6 forecast to estimate the effect of anticipated current and future economic conditions on the Company’s allowance for credit losses. This scenario selected by management assumes, among other things, a temporary but significant increase in oil prices related to the ongoing conflict in Iran, which in turn may lead to higher inflation, reduced economic growth, and greater uncertainty surrounding monetary policy changes implemented by the Federal Reserve. Additionally, the allowance for credit losses is qualitatively adjusted on a quarterly basis in order to ensure coverage for relationships that are deemed to be more at risk within certain industries, specific collateral types, or other specific characteristics that may be highly impacted by the current economic environment. The allowance for credit losses of $190.6 million at March 31, 2026 represents an increase of $683,000, or 0.4%, compared to December 31, 2025, driven by provision for credit losses of $5.5 million, offset by net charge-offs of $4.8 million. 57 Table of Contents The following table summarizes the ratio of net charge-offs to average loans outstanding within each major loan category for the periods presented: Table 6 - Summary of Net Charge-Offs/(Recoveries) to Average Loans Outstanding Net Charge-Offs/(Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans (Dollars in thousands) Three Months Ended March 31, 2026 Commercial and industrial $ 311 $ 4,605,582 0.03 % Commercial real estate 4,034 8,240,241 0.20 % Commercial construction — 1,404,278 — % Residential real estate — 2,856,572 — % Home equity (12) 1,300,202 — % Other consumer (1) 484 43,789 4.48 % Total $ 4,817 $ 18,450,664 0.11 % Net Charge-Offs/(Recoveries) Average Loans Outstanding Ratio of Annualized Net Charge-Offs to Average Loans (Dollars in thousands) Three Months Ended March 31, 2025 Commercial and industrial $ 152 $ 3,250,960 0.02 % Commercial real estate 39,996 6,804,605 2.38 % Commercial construction — 785,312 — % Residential real estate — 2,464,464 — % Home equity 78 1,140,190 0.03 % Other consumer (1) 666 38,618 6.99 % Total $ 40,892 $ 14,484,149 1.14 % (1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances and the associated net charge-offs. Net charge-offs were $4.8 million for the three months ended March 31, 2026, as compared to $40.9 million for the three months ended March 31, 2025 . The elevated charge-off activity in the prior year was primarily attributable to three isolated classified commercial loans. 58 Table of Contents For purposes of the allowance for credit losses, management segregates the portfolio based upon loans sharing similar risk characteristics. The allocation of the allowance for credit losses is made to each loan category using the analytical techniques and estimation methods described in this Report. While these amounts represent management’s best estimate of credit losses at the evaluation dates, they are not necessarily indicative of either the categories in which actual losses may occur or the extent of actual losses that may be recognized within each category. Each of these loan categories possess unique risk characteristics that are considered when determining the appropriate level of allowance for each segment. The total allowance is available to absorb losses from any segment of the loan portfolio. The following table sets forth the allocation of the allowance for credit losses by loan category at the dates indicated: Table 7 - Summary of Allocation of Allowance for Credit Losses March 31 2026 December 31 2025 Allowance Amount Allowance Amount as a Percentage of Total Allowance Percent of Loans in Category to Total Loans Allowance Amount Allowance Amount as a Percentage of Total Allowance Percent of Loans in Category to Total Loans (Dollars in thousands) Commercial and industrial $ 49,282 25.8 % 25.2 % $ 47,976 25.3 % 24.9 % Commercial real estate 82,992 43.5 % 44.5 % 84,916 44.7 % 44.7 % Commercial construction 14,212 7.5 % 7.6 % 14,254 7.5 % 7.6 % Residential real estate 29,900 15.7 % 15.4 % 29,254 15.4 % 15.5 % Home equity 13,268 7.0 % 7.1 % 12,376 6.5 % 7.0 % Other consumer 906 0.5 % 0.2 % 1,101 0.6 % 0.3 % Total $ 190,560 100.0 % 100.0 % $ 189,877 100.0 % 100.0 % To determine if a loan should be charged-off, all possible sources of repayment are analyzed. Possible sources of repayment include the potential for future cash flows, the value of the Bank’s collateral, and the strength of co-makers or guarantors. When available information confirms that specific loans or portions thereof are uncollectible, these amounts are promptly charged-off against the allowance for credit losses and any recoveries of such previously charged-off amounts are credited to the allowance. Regardless of whether a loan is unsecured or collateralized, the Company charges off the amount of any confirmed loan loss in the period when the loans, or portions of loans, are deemed uncollectible. For troubled, collateral-dependent loans, loss-confirming events may include an appraisal or other valuation that reflects a shortfall between the value of the collateral and the carrying value of the loan or receivable, or a deficiency balance following the sale of the collateral. For additional information regarding the Company’s allowance for credit losses, see Note 4 “Loans, Allowance for Credit Losses and Credit Quality” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report. Federal Home Loan Bank Stock The Federal Home Loan Bank (“FHLB”) is a cooperative that provides services to its member banking institutions. The primary reason for the FHLB of Boston membership is to gain access to a reliable source of wholesale funding as a tool to manage liquidity and interest rate risk. The purchase of stock in the FHLB is a requirement for a member to gain access to funding. The Company either purchases additional FHLB stock or is subject to redemption of FHLB stock proportional to the volume of funding received. The Company views the holdings as a necessary long-term investment for the purpose of balance sheet liquidity and not for investment return. The Company’s investments in FHLB of Boston stock decreased to $17.8 million at March 31, 2026 from $21.8 million at December 31, 2025 in conjunction with net paydowns of FHLB term borrowings during the first quarter of 2026. Goodwill and Other Intangible Assets Goodwill and other intangible assets were $1.2 billion at both March 31, 2026 and December 31, 2025. 59 Table of Contents The Company typically performs its annual goodwill impairment testing during the third quarter of the year, unless certain indicators suggest earlier testing to be warranted. Accordingly, the Company performed its annual goodwill impairment testing during the third quarter of 2025 and determined that the Company’s goodwill was not impaired as of August 31, 2025. Other intangible assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. There were no other events or changes during the first quarter of 2026 that indicated impairment of goodwill and other intangible assets. Cash Surrender Value of Life Insurance Policies The Bank holds life insurance policies for the purpose of offsetting its future obligations to its employees under its retirement and benefits plans. The cash surrender value of life insurance policies was $380.4 million at March 31, 2026 compared to $378.6 million at December 31, 2025. The Company recorded tax exempt income from life insurance policies of $2.7 million and $2.1 million for the three months ended March 31, 2026 and 2025, respectively. The Company recorded $346,000 in gains on life insurance benefits for the three months ended March 31, 2026 and no such gains were recorded for the three months ended March 31, 2025. Deposits As of March 31, 2026, total deposits were $20.1 billion, representing a decrease of $29.3 million, or 0.1%, from December 31, 2025, driven primarily by seasonal outflows in business operating accounts. Total non-interest bearing demand deposits comprised 28.0% of total deposits at March 31, 2026, as compared with 27.8% at December 31, 2025. The total cost of deposits was 1.36% and 1.56% for the three months ended March 31, 2026 and 2025, respectively. The Company’s deposits are comprised primarily of core deposits (demand, savings and money market), as well as time deposits. The Company’s ratio of core deposits, inclusive of reciprocal money market deposits, to total deposits represented 83.8% of total deposits at March 31, 2026, compared to 83.7% of total deposits at December 31, 2025. In addition, the Company may also utilize brokered deposit sources, as needed, with balances of $6.0 million outstanding at both March 31, 2026 and December 31, 2025 . The Company’s deposit accounts are insured to the maximum extent permitted by the Deposit Insurance Fund which is administered by the Federal Deposit Insurance Corporation ( “ FDIC”). The FDIC offers insurance coverage on deposits up to the federally insured limit of $250,000. The Company participates in the IntraFi Network, allowing it to provide easy access to multi-million dollar FDIC deposit insurance protection on certificate of deposit and money market investments for consumers, businesses and public entities. This channel allows the Company to access a reciprocal deposit exchange that can be used to benefit customers seeking increased FDIC insurance protection, and amounted to $2.1 billion and $2.2 billion at March 31, 2026 and December 31, 2025. The estimated balances of uninsured deposits at the Bank were $6.5 billion at both March 31, 2026 and December 31, 2025. Included in these amounts were $971.4 million and $932.0 million of collateralized deposits at March 31, 2026 and December 31, 2025, respectively, which offer additional protection. Borrowings The Company’s borrowings consist of both short-term and long-term borrowings and provide the Bank with one of its primary sources of funding. Maintaining available borrowing capacity provides the Bank with a contingent source of liquidity. Borrowings were $776.3 million at March 31, 2026, representing a decrease of $49.6 million, or 6.0%, as compared to December 31, 2025, reflecting approximately $100 million in net paydowns on FHLB borrowings, partially offset by $50 million advanced on a working capital line of credit during the first quarter of 2026. The Company had $13.3 billion and $12.9 billion of assets pledged as collateral against borrowings at March 31, 2026 and December 31, 2025, respectively. These assets are primarily pledged to the FHLB of Boston and the Federal Reserve Bank of Boston. Capital Resources On March 19, 2026 the Company’s Board of Directors declared a cash dividend of $ 0.64 per share to shareholders of record as of the close of business on March 30, 2026. This dividend was paid on April 9, 2026. The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total, Tier 1 Capital and Common Equity Tier 1 Capital 60 Table of Contents (as defined for regulatory purposes) to risk weighted assets (as defined for regulatory purposes) and Tier 1 Capital to average assets (as defined for regulatory purposes). Total capital consists of Tier 1 Capital and Tier 2 Capital, as defined in the regulations. Tier 2 capital includes the permissible portions of qualifying subordinated debt, trust preferred securities, and the allowance for credit losses. 61 Table of Contents At March 31, 2026 and December 31, 2025, the Company and the Bank exceeded the minimum requirements for all applicable ratios that were in effect during the respective periods. The Company’s and the Bank’s capital amounts and ratios are presented in the following table, along with the applicable minimum requirements as of each date indicated: Table 8 - Company and Bank’s Capital Amounts and Ratios Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio March 31, 2026 (Dollars in thousands) Company (consolidated) Total capital (to risk weighted assets) $ 2,946,536 15.76 % $ 1,495,582 ≥ 8.0 % N/A N/A Common equity tier 1 capital (to risk weighted assets) 2,409,235 12.89 % 841,265 ≥ 4.5 % N/A N/A Tier 1 capital (to risk weighted assets) 2,409,235 12.89 % 1,121,686 ≥ 6.0 % N/A N/A Tier 1 capital (to average assets) 2,409,235 10.23 % 942,472 ≥ 4.0 % N/A N/A Bank Total capital (to risk weighted assets) $ 2,941,519 15.73 % $ 1,495,678 ≥ 8.0 % $ 1,869,598 ≥ 10.0 % Common equity tier 1 capital (to risk weighted assets) 2,761,877 14.77 % 841,319 ≥ 4.5 % 1,215,239 ≥ 6.5 % Tier 1 capital (to risk weighted assets) 2,761,877 14.77 % 1,121,759 ≥ 6.0 % 1,495,678 ≥ 8.0 % Tier 1 capital (to average assets) 2,761,877 11.72 % 942,436 ≥ 4.0 % 1,178,045 ≥ 5.0 % December 31, 2025 (Dollars in thousands) Company (consolidated) Total capital (to risk weighted assets) $ 2,953,734 15.70 % $ 1,504,816 ≥ 8.0 % N/A N/A Common equity tier 1 capital (to risk weighted assets) 2,418,180 12.86 % 846,459 ≥ 4.5 % N/A N/A Tier 1 capital (to risk weighted assets) 2,418,180 12.86 % 1,128,612 ≥ 6.0 % N/A N/A Tier 1 capital (to average assets) 2,418,180 10.15 % 952,995 ≥ 4.0 % N/A N/A Bank Total capital (to risk weighted assets) $ 2,906,245 15.46 % $ 1,504,129 ≥ 8.0 % $ 1,880,162 ≥ 10.0 % Common equity tier 1 capital (to risk weighted assets) 2,728,127 14.51 % 846,073 ≥ 4.5 % 1,222,105 ≥ 6.5 % Tier 1 capital (to risk weighted assets) 2,728,127 14.51 % 1,128,097 ≥ 6.0 % 1,504,129 ≥ 8.0 % Tier 1 capital (to average assets) 2,728,127 11.45 % 953,126 ≥ 4.0 % 1,191,407 ≥ 5.0 % In addition to the minimum risk-based capital requirements outlined in the table above, the Company is required to maintain a minimum capital conservation buffer, in the form of common equity, in order to avoid restrictions on capital distributions and discretionary bonuses. The required amount of the capital conservation buffer is 2.5%. At March 31, 2026, the Company’s capital levels exceeded the buffer. Dividend Restrictions The Company is subject to capital and dividend requirements administered by federal and state bank regulators, and the Company will not declare a cash dividend that would cause the Company to violate regulatory requirements. The Company is, in the ordinary course of business, dependent upon the receipt of cash dividends from the Bank to pay cash dividends to shareholders and satisfy the Company’s other cash needs. Federal and state law impose limits on capital distributions by the Bank. Massachusetts-chartered banks, such as the Bank, may declare from net profits cash dividends not more frequently than quarterly and non-cash dividends at any time. No dividends may be declared, credited, or paid if the Bank’s capital stock would be impaired. Massachusetts Bank Commissioner approval is required if the total of all 62 Table of Contents dividends declared by the Bank in any calendar year would exceed the total of its net profits for that year combined with its retained net profits of the preceding two years, less any required transfer to surplus or a fund for the retirement of any preferred stock. Dividends paid by the Bank to the Company totaled $62.4 million and $36.1 million for the three months ended March 31, 2026 and 2025, respectively. Investment Management The following table presents total assets under administration and number of accounts held by the Rockland Trust Investment Management Group at the following dates: Table 9 - Assets Under Administration March 31 2026 December 31 2025 March 31 2025 (Dollars in thousands) Assets under administration $ 9,172,082 $ 9,217,333 $ 7,098,961 Number of trust, fiduciary and agency accounts 7,884 7,843 6,688 The Company’s Investment Management Group provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions. Accounts maintained by the Investment Management Group consist of managed and non-managed accounts. Managed accounts are those for which the Bank is responsible for administration and investment management and/or investment advice, while non-managed accounts are those for which the Bank acts solely as a custodian or directed trustee. The Bank receives fees dependent upon the level and type of service(s) provided. The Investment Management Group generated gross fee revenues of $12.8 million and $10.0 million for the three months ended March 31, 2026 and 2025. Total assets under administration at both March 31, 2026 and December 31, 2025 were $9.2 billion, which included $444.8 million and $444.3 million, respectively, of investment solutions designed by Rockland Trust that are administered and executed through its agreement with LPL Financial ( “ LPL”). The Company also has a subsidiary that is a registered investment advisor, Bright Rock Capital Management, LLC ( “ Bright Rock”), which provides institutional quality investment management services to both institutional and high net worth clients. Total assets under administration as of March 31, 2026 and December 31, 2025 include $510.2 million and $520.5 million, respectively, related to Bright Rock. The administration of trust and fiduciary accounts is monitored by the Trust Committee of the Bank’s Board of Directors. The Trust Committee has delegated administrative responsibilities to three committees, one for investments, one for administration, and one for operations, all of which are comprised of Investment Management Group officers who meet no less than quarterly. The Bank has an agreement with LPL and its affiliates and their insurance subsidiary, LPL Insurance Associates, Inc., to offer the sale of mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities and life insurance. Registered representatives who are both employed by the Bank and licensed and contracted with LPL are onsite to offer these products to the Bank’s customer base. These same agents are also approved and appointed with various other broker general agents for the purposes of processing insurance solutions for clients. Retail investments and insurance revenue was $1.3 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively. 63 Table of Contents RESULTS OF OPERATIONS The following table provides a summary of results of operations for the periods presented: Table 10 - Summary of Results of Operations Three Months Ended March 31 2026 2025 (Dollars in thousands, except per share data) Net income $ 79,919 $ 44,424 Diluted earnings per share $ 1.63 $ 1.04 Return on average assets 1.31 % 0.93 % Return on average equity 9.02 % 5.94 % Net interest margin 3.90 % 3.42 % Net Interest Income The amount of net interest income is affected by changes in interest rates and by the volume, mix, and interest rate sensitivity of interest-earning assets and interest-bearing liabilities. On a fully tax equivalent basis (“FTE”), net interest income for the first quarter of 2026 was $213.9 million, representing an increase of $67.3 million, or 45.9%, when compared to the first quarter of 2025. The first quarter 2026 increase in net interest income was primarily attributable to increased average interest earning assets obtained from the July 2025 acquisition of Enterprise, as well a higher yields on interest earning assets, which were positively impacted by the accretion of purchase accounting marks from the Enterprise acquisition, and decreased funding costs. These factors resulted in a net interest margin of 3.90% for the three months ended March 31, 2026, representing an increase of 48 basis points compared to the same prior year period. 64 Table of Contents The following tables present the Company’s average balances, net interest income, interest rate spread, and net interest margin for the three months ended March 31, 2026 and 2025. Non-taxable income from loans and securities is presented on a FTE basis by adjusting tax-exempt income upward by an amount equivalent to the prevailing income tax rate that would have been paid if the income had been fully taxable. Table 11 - Average Balance, Interest Earned/Paid & Average Yields Quarter-to-Date Three Months Ended March 31 2026 2025 Average Balance Interest Earned/ Paid Yield/Rate Average Balance Interest Earned/ Paid Yield/Rate (Dollars in thousands) Interest-earning assets Interest-earning deposits with banks, federal funds sold, and short term investments $ 415,532 $ 3,657 3.57 % $ 141,410 $ 1,438 4.12 % Securities Securities - trading 5,108 — — % 4,513 — — % Securities - taxable investments 3,325,253 25,260 3.08 % 2,747,039 15,296 2.26 % Securities - non-taxable investments (1) 11,634 144 5.02 % 195 1 2.08 % Total securities $ 3,341,995 $ 25,404 3.08 % $ 2,751,747 $ 15,297 2.25 % Loans held for sale 19,495 252 5.24 % 6,396 92 5.83 % Loans (2) Commercial and industrial (1) 4,605,582 70,426 6.20 % 3,250,960 50,895 6.35 % Commercial real estate (1) 8,240,241 112,466 5.54 % 6,804,605 86,086 5.13 % Commercial construction (1) 1,404,278 23,926 6.91 % 785,312 13,167 6.80 % Total commercial 14,250,101 206,818 5.89 % 10,840,877 150,147 5.62 % Residential real estate 2,856,572 35,503 5.04 % 2,464,464 27,716 4.56 % Home equity 1,300,202 19,429 6.06 % 1,140,190 17,774 6.32 % Total consumer real estate 4,156,774 54,932 5.36 % 3,604,654 45,490 5.12 % Other consumer 43,789 664 6.15 % 38,618 593 6.23 % Total loans $ 18,450,664 $ 262,414 5.77 % $ 14,484,149 $ 196,230 5.49 % Total interest-earning assets $ 22,227,686 $ 291,727 5.32 % $ 17,383,702 $ 213,057 4.97 % Cash and due from banks 228,015 197,536 Federal Home Loan Bank stock 20,474 27,646 Other assets 2,226,216 1,852,073 Total assets $ 24,702,391 $ 19,460,957 Interest-bearing liabilities Deposits Savings and interest checking accounts $ 6,333,509 $ 15,883 1.02 % $ 5,222,353 $ 16,162 1.26 % Money market 4,862,134 24,672 2.06 % 3,178,879 17,710 2.26 % Time deposits 3,269,232 26,380 3.27 % 2,723,975 25,564 3.81 % Total interest-bearing deposits $ 14,464,875 $ 66,935 1.88 % $ 11,125,207 $ 59,436 2.17 % Borrowings Federal Home Loan Bank and other borrowings $ 380,062 $ 3,596 3.84 % $ 547,713 $ 5,566 4.12 % Line of credit 54,404 755 5.63 % — — — % Junior subordinated debentures 62,863 874 5.64 % 62,860 974 6.28 % Subordinated debentures 296,573 5,646 7.72 % 23,070 439 7.72 % 65 Table of Contents Total borrowings $ 793,902 $ 10,871 5.55 % $ 633,643 $ 6,979 4.47 % Total interest-bearing liabilities $ 15,258,777 $ 77,806 2.07 % $ 11,758,850 $ 66,415 2.29 % Non-interest bearing demand deposits 5,498,339 4,345,631 Other liabilities 353,886 323,728 Total liabilities $ 21,111,002 $ 16,428,209 Stockholders’ equity 3,591,389 3,032,748 Total liabilities and stockholders’ equity $ 24,702,391 $ 19,460,957 Net interest income (1) $ 213,921 $ 146,642 Interest rate spread (2) 3.25 % 2.68 % Net interest margin (4) 3.90 % 3.42 % Supplemental information Total deposits, including demand deposits $ 19,963,214 $ 66,935 $ 15,470,838 $ 59,436 Cost of total deposits 1.36 % 1.56 % Total funding liabilities, including demand deposits $ 20,757,116 $ 77,806 $ 16,104,481 $ 66,415 Cost of total funding liabilities 1.52 % 1.67 % (1) The total amount of adjustment to present interest income and yield on a FTE basis was $1.5 million and $1.1 million for the three months ended March 31, 2026 and 2025, respectively. (2) Includes average non-accruing loans. (3) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (4) Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. 66 Table of Contents The following table presents certain information on a FTE basis regarding changes in the Company’s interest income and interest expense for the periods indicated. For each category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes attributable to: (1) changes in rate (change in rate multiplied by prior period volume), (2) changes in volume (change in volume multiplied by old rate), and (3) changes in volume/rate (change in volume multiplied by change in rate) which is allocated to the change due to rate column: Table 12 - Volume Rate Analysis Three Months Ended March 31 2026 Compared To 2025 Change Due to Rate Change Due to Volume Total Change (Dollars in thousands) Income on interest-earning assets Interest earning deposits, federal funds sold and short term investments $ (569) $ 2,788 $ 2,219 Securities Securities - taxable investments 6,744 3,220 9,964 Securities - non-taxable investments (1) 84 59 143 Total securities 10,107 Loans held for sale (28) 188 160 Loans Commercial and industrial (1) (1,676) 21,207 19,531 Commercial real estate (1) 8,218 18,162 26,380 Commercial construction 381 10,378 10,759 Total commercial 56,670 Residential real estate 3,377 4,410 7,787 Home equity (839) 2,494 1,655 Total consumer real estate 9,442 Other consumer (8) 79 71 Total loans (1)(2) 66,183 Total income of interest-earning assets $ 78,669 Expense of interest-bearing liabilities Deposits Savings and interest checking accounts $ (3,718) $ 3,439 $ (279) Money market (2,416) 9,378 6,962 Time certificates of deposits (4,301) 5,117 816 Total interest bearing deposits 7,499 Borrowings Federal Home Loan Bank and other borrowings (266) (1,704) (1,970) Line of Credit 755 — 755 Junior subordinated debentures (100) — (100) Subordinated debentures 2 5,204 5,206 Total borrowings 3,891 Total expense of interest-bearing liabilities 11,390 Change in net interest income $ 67,279 (1) Reflects income determined on a FTE basis. See footnote (1) to Table 11 in this Report for the related adjustments. (2) Loans include portfolio loans and non-accrual loans; however, unpaid interest on non-accrual loans has not been included for purposes of determining interest income. 67 Table of Contents Provision For Credit Losses The provision for credit losses represents the charge to expense that is required to maintain an adequate level of allowance for credit losses. The Company recorded a provision for credit loss of $5.5 million for the three months ended March 31, 2026, as compared to $15.0 million for the three months ended March 31, 2025, reflecting lower levels of charge-off activity and specific reserve allocations. The Company’s allowance for credit losses, as a percentage of total loans, was 1.03% at both March 31, 2026 and December 31, 2025 and 0.99% at March 31, 2025. Refer to Note 4, “Loans, Allowance for Credit Losses and Credit Quality” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report, for further details surrounding the primary drivers of the provision for credit losses for the period. Non-Interest Income The following table sets forth information regarding non-interest income for the periods shown: Table 13 - Non-Interest Income Three Months Ended March 31 Change 2026 2025 Amount % (Dollars in thousands) Deposit account fees $ 9,249 $ 7,053 $ 2,196 31.14 % Interchange and ATM fees 5,018 4,622 396 8.57 % Investment management and advisory 14,165 11,220 2,945 26.25 % Mortgage banking income 1,270 741 529 71.39 % Increase in cash surrender value of life insurance policies 2,712 2,065 647 31.33 % Gain on life insurance benefits 346 — 346 100.00% Loan level derivative income 910 1,042 (132) (12.67) % Other non-interest income 6,592 5,796 796 13.73 % Total $ 40,262 $ 32,539 $ 7,723 23.73 % The primary reasons for significant variances in the non-interest income categories shown in the preceding table are noted below: • Deposit account fees were higher as a result of increases in overdraft and cash management fees, as well as increased volume attributable to the Enterprise acquisition. • Interchange and ATM fees were higher primarily due to increased volume due to the Enterprise acquisition. • Mortgage banking income increased, driven by increased origination volumes and a higher ratio of new originations sold in the secondary market versus held in portfolio as to the same prior year period. • The increase in investment management and advisory income was primarily due to higher asset-based revenue attributable to higher levels of assets under administration, which increased by $2.1 billion, or 29.2%, to $9.2 billion at March 31, 2026, as compared to $7.1 billion at March 31, 2025, including the addition of $1.5 billion in assets under administration acquired from Enterprise on July 1, 2025. The Company also generated higher insurance commission income during the first quarter of 2026, as compared to the same prior year period. • The increases in cash surrender value of life insurance policies were primarily attributable to policies obtained in connection with the Enterprise acquisition. • The Company received proceeds on life insurance policies resulting in a gain of $346,000 during the three months ended March 31, 2026. No such gains were recorded during the first quarter of 2025. • Other non-interest income increased, driven primarily by increases in income from other investments of $442,000, credit card fee income of $227,000, and payment processing income of $219,000. 68 Table of Contents Non-Interest Expense The following table sets forth information regarding non-interest expense for the periods shown: Table 14 - Non-Interest Expense Three Months Ended March 31 Change 2026 2025 Amount % (Dollars in thousands) Salaries and employee benefits $ 80,737 $ 61,931 $ 18,806 30.37 % Occupancy and equipment expenses 17,306 13,859 3,447 24.87 % Data processing & facilities management 3,259 2,642 617 23.35 % Software and subscriptions 7,068 5,027 2,041 40.60 % FDIC assessment 3,328 2,988 340 11.38 % Debit card expense 2,402 1,935 467 24.13 % Amortization of intangible assets 6,890 1,344 5,546 412.65 % Merger and acquisition expenses 3,024 1,155 1,869 161.82 % Other non-interest expenses 18,904 14,997 3,907 26.05 % Total $ 142,918 $ 105,878 $ 37,040 34.98 % The primary reasons for significant variances in the non-interest expense categories shown in the preceding table are noted below: • Salaries and employee benefits were higher, driven primarily by increases in general salaries of $11.3 million, including the impact of an expanded employee base as a result of the Enterprise acquisition, as well as increases in medical plan insurance of $2.2 million, incentive programs of $2.9 million, payroll taxes of $947,000, and commissions of $591,000. • Occupancy and equipment costs increased, primarily attributable to the expanded branch network, real estate and other fixed assets obtained from the Enterprise acquisition, as well as a $1.2 million increase in snow removal costs compared to the first quarter of 2025. • Data processing and facilities management costs increased, reflecting higher overall levels of transactional activity in conjunction with the Company’s growth, including due to the Enterprise acquisition. • Software and subscriptions costs increased, driven by the Company’s continued investment in its technology infrastructure. • FDIC assessment expense increased in comparison to the prior year, primarily attributable to an increased assessment rate following the Enterprise acquisition. • Debit card expense increased compared to the same period prior year driven primarily by increased transaction volume attributable to the Enterprise acquisition. • Amortization of intangible assets increased, driven by increased amortization attributable to the core deposit intangible, customer list, and other intangible assets established as part of the Enterprise acquisition. • The Company incurred merger and acquisition expenses of $3.0 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively, related to the Company’s acquisition of Enterprise. Merger-related expenses were primarily attributable to severance contracts and legal fees for first quarters of 2026 and 2025, respectively. • Other non-interest expense increased, primarily attributable to increases in consultant fees of $880,000, check fraud losses of $537,000, state-charter assessments of $483,000, loan workout costs of $364,000, internet banking expense of $344,000, appraisals of $255,000, and advertising expense of $234,000. 69 Table of Contents Income Taxes The tax effect of all income and expense transactions is recognized by the Company in each year’s consolidated statements of income, regardless of the year in which the transactions are reported for income tax purposes. The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated: Table 15 - Tax Provision and Applicable Tax Rates Three Months Ended March 31 2026 2025 (Dollars in thousands) Combined federal and state income tax provision $ 24,384 $ 12,742 Effective income tax rate 23.38 % 22.29 % Blended statutory tax rate 27.47 % 27.37 % The effective tax rate is largely impacted by pre-tax income levels. The effective tax rates in the table are lower than the blended statutory tax rates due to the impact of discrete items, including tax benefits related to equity compensation, as well as certain tax preference assets such as life insurance policies, tax exempt bonds and federal tax credits, such as low income housing tax credits. The Company invests in various low income housing projects, which are real estate limited partnerships that acquire, develop, own and operate low and moderate-income housing developments. As a limited partner in these operating partnerships, the Company will receive tax credits and tax deductions for losses incurred by the underlying properties. The investments are accounted for using the proportional amortization method and will be amortized over various periods through 2042, which represents the period that the tax credits and other tax benefits will be utilized. The total committed investment in these partnerships is $340.2 million, of which $245.9 million had been funded as of March 31, 2026. It is expected that the limited partnership investments will generate a net tax benefit of approximately $6.2 million for the fiscal year 2026 and a total of $52.5 million over the remaining life of the investments from the combination of the tax credits and operating losses. The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025. Among other things, the new law makes permanent certain expiring business tax provisions of the Tax Cuts and Jobs Act of 2017. These include provisions which allow businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets and the cost of qualified domestic research and development. The OBBBA also imposes a floor on tax deductions taken on charitable contributions. Further, the OBBBA significantly changes U.S. tax law related to foreign operations and certain tax credits; however, such changes are not anticipated to have a material impact to the Company’s financial statements. Risk Management The Board of Directors has approved an Enterprise Risk Management Policy and Risk Appetite Statement to state the Company’s goals and objectives in identifying, measuring, and managing the risks associated with the Company’s current and near future anticipated size and complexity. Management is responsible for comprehensive enterprise risk management, and continually strives to adopt and implement practices that strike an appropriate balance between risk and reward and permit the achievement of strategic goals in a controlled environment. The Company has implemented the “three lines of defense” enterprise risk management model . The first line of defense represents all operating business units, and corporate functions. Under the purview of the Chief Risk Officer, the second line of defense monitors and provides risk management advice across all risk domains, and is comprised of Enterprise Risk Management/Operational Risk, Enterprise Compliance, and Information Security. The activities of the second line of defense are overseen by and reported to the Board Risk Committee on a regular basis. Under the purview of the Chief Internal Auditor, the third line of defense is the independent assurance function primarily executed by the Company’s internal audit department. Third line of defense audit activities are overseen by and reported to the Company’s Board Audit Committee on a regular basis. Risk management efforts are further supported and bolstered through a formal and robust risk governance structure comprised of various management level committees that are designed to identify, monitor, report and mitigate top risks faced by the Company based on its risk taxonomy as described below. The Board of Directors, with the assistance of its Risk Committee, exercises oversight of the Company’s risk management program and practices. As risks must be taken to create value, the Board of Directors has approved a Risk Appetite Statement that defines the acceptable residual risk appetite for the Company and the nine major risk types identified as having the potential to create significant adverse impacts on the Company, such as financial losses, reputational damage, legal 70 Table of Contents or regulatory actions, failure to achieve strategic objectives, diminished customer experience, and/or cultural erosion. The nine major risk categories identified by the Company and addressed in the Risk Appetite Statement are strategic and emerging risk, culture risk, credit risk, liquidity risk, market and interest rate risk, operational risk, reputation risk, regulatory and compliance risk, and technology and cyber risk, each of which is discussed below. Strategic and Emerging Risk Strategic and emerging risk is the risk arising from adverse strategic or business decisions, misalignment of strategic direction with the Company’s mission and values, failure to execute strategies or tactics, or an inadequate adaptation or lack of responsiveness to industry and/or operating environment changes. Management seeks to mitigate strategic and emerging risk through strategic planning, frequent executive review of strategic plan progress, monitoring of competitors and technology, assessment of new products, new branches, and new business initiatives, customer advocacy, and crisis management planning. Culture Risk Culture risk is the risk arising from failed leadership and/or ineffective colleague engagement and workplace management that causes the Company to lose sight of core values and, through acts or omissions, damage the relationship-based culture that has been one of the foundations of the Company’s success. Management seeks to mitigate culture risk through effective employee relations, leadership that encourages continuous improvement, cultural development and reinforcement of core values, communication of clear ethical and behavioral standards, consistent enforcement of policies and programs, discipline of misbehavior, alignment of incentives and compensation, and by promoting a company-wide focus on respect for individual differences and differing perspectives. Credit Risk Credit risk is the risk arising from the failure of a borrower or a counterparty to a contract to make payments as agreed, and includes the risks arising from inadequate collateral and mismanagement of loan concentrations. While the collateral securing loans may be sufficient in some cases to recover the amount due, in other cases the Company may experience significant credit losses that could have an adverse effect on its operating results. The Company makes assumptions and judgments about the collectability of its loan portfolio, including the creditworthiness of its borrowers and counterparties and the value of collateral for the repayment of loans. For further discussion regarding the credit risk and the credit quality of the Company’s loan portfolio, see Note 4, “Loans, Allowance for Credit Losses and Credit Quality” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report . Liquidity Risk Liquidity risk is the risk arising from the Company being unable to meet obligations when due. Liquidity risk includes the inability to access funding sources or manage fluctuations in available funding levels. Liquidity risk also results from a failure to recognize or address market condition changes that affect the ability to liquidate assets quickly with minimal value loss. The Company’s primary sources of funds are deposits, borrowings, and the amortization, prepayment, and maturities of loans and securities. The Bank utilizes its extensive branch network to access retail customers who provide a base of in-market core deposits. These funds are principally comprised of demand deposits, interest checking accounts, savings accounts, and money market accounts. Interest rates, economic conditions, and competitive factors greatly influence deposit levels. The Company measures funds availability and surplus under both stress and non-stress conditions. In addition, liquidity monitoring ensures appropriate oversight of funding exposures and reliance, as well as available capacity. The Company continually monitors both on and off balance sheet liquidity sources to understand vulnerabilities and when adjustments to the balance between sources and uses of funds may be necessary. Management regularly performs liquidity stress testing to assess potential liquidity outflows or funding concerns resulting from economic or industry disruptions, volatility in the financial markets, or unforeseen credit events. The results of these scenarios are used to inform the Company’s Contingency Funding Plan and help provide the basis for its liquidity needs. The Company prioritizes core deposits as a primary funding source and continues to maintain a variety of available liquidity sources, including FHLB advances, and Federal Reserve borrowing capacity. These funding sources serve as a contingent source of liquidity and, when profitable lending and investment opportunities exist, the Company may access them to provide the liquidity needed to grow the balance sheet. The amount and type of assets that the Company has available to pledge affects the Company’s FHLB and Federal Reserve borrowing capacity. The Company’s lending decisions, therefore, can also affect its liquidity position. The Company may also have the ability to raise additional funds through the issuance of equity or unsecured debt privately or publicly, as demonstrated by the $300.0 million subordinated debt issuance completed by the Company during the first quarter of 2025. Additionally, the Company is able to acquire brokered certificates of deposits at its discretion. The availability and cost of equity or debt on an unsecured basis is dependent on many factors, including the Company’s financial 71 Table of Contents position, the market environment, and the Company’s credit rating. The Company monitors the factors that could affect its ability to raise liquidity through these channels. The following table depicts current and unused liquidity capacity from various sources as of the dates indicated: Table 16 - Liquidity Sources March 31, 2026 December 31, 2025 Outstanding Additional Borrowing Capacity Outstanding Additional Borrowing Capacity (Dollars in thousands) Federal Home Loan Bank of Boston (1) $ 316,734 $ 3,421,976 $ 416,549 $ 2,812,217 Federal Reserve Bank of Boston (2) — 5,634,123 — 5,472,672 Unpledged securities — 299,936 — 576,504 Lines of credit 99,969 25,000 49,953 75,000 Federal funds lines of credit — 140,000 — 140,000 Junior subordinated debentures (3) 62,863 — 62,862 — Subordinated debt (3) 296,690 — 296,483 — Brokered deposits (3) 6,000 — 6,000 — $ 782,256 $ 9,521,035 $ 831,847 $ 9,076,393 (1) Loans and securities with a carrying value of $5.0 billion and $4.5 billion as of March 31, 2026 and December 31, 2025, respectively, were pledged to the FHLB of Boston. (2) Loans and securities with a carrying value of $8.3 billion as of both March 31, 2026 and December 31, 2025 were pledged to the Federal Reserve Bank of Boston. (3) The additional borrowing capacity has not been assessed for these categories. In addition to customary operational liquidity practices, the Board and management recognize the need to establish reasonable guidelines to manage a heightened liquidity risk environment. Catalysts for elevated liquidity risk can be Company-specific issues and/or systemic macro-economic or industry-wide events. Management is therefore responsible for instituting systems and controls designed to provide advanced detection of potentially significant funding shortages, establishing methods for assessing and monitoring risk levels, and instituting responses that may alleviate or circumvent a potential liquidity crisis. Management has established a Contingency Funding Plan to provide a framework to detect potential liquidity problems and appropriately address them in a timely manner. Market and Interest Rate Risk Market risk refers to the risk of potential losses arising from changes in interest rates and the value of assets due to market conditions or other external factors or events. Interest rate risk is the most significant market risk to which the Company has exposure to due to the nature of its operations. Interest rate risk is the sensitivity of income to changes in interest rates. Interest rate changes, as well as fluctuations in the level and duration of assets and liabilities, affect net interest income, which is the Company’s primary source of revenue. Interest rate risk arises from the Company’s core banking activities. In addition to directly affecting net interest income, changes in the level of interest rates can also affect the amount of loans originated, the timing of cash flows on loans and securities, and the fair value of securities and derivatives, and have other effects. Management strives to control interest rate risk within limits approved by the Board of Directors that reflect the Company’s tolerance for interest rate risk over short-term and long-term horizons. The Company attempts to manage interest rate risk by identifying, quantifying, and, where appropriate, hedging exposure. If assets and liabilities do not re-price simultaneously and in equal volume, the potential for interest rate exposure exists. It is the Company’s objective to maintain stability in the growth of net interest income through the maintenance of an appropriate mix of interest-earning assets and interest-bearing liabilities and, when necessary within limits management deems prudent, with hedging instruments such as interest rate swaps, floors, and caps. The Company quantifies its interest rate exposures using net interest income and Economic Value of Equity analysis. Key assumptions in these analyses relate to behavior of interest rates and behavior of the Company’s deposit and loan customers. The most material assumptions relate to the prepayment of loans and securities and the life and sensitivity of non-maturity deposits ( e.g. , demand deposit, savings, and money market accounts). The risk of prepayment tends to increase when 72 Table of Contents interest rates fall. Since future prepayment behavior of loan customers is uncertain, interest rate sensitivity of loans cannot be determined with precision and actual behavior may differ from assumptions to a significant degree. Non-maturity deposits, assumptions over customer behavior, shifts in deposits categories, and magnitude of impact to the cost of deposits all may differ from modeling or expectations. Given the volatility associated with market rates, and the uncertainty surrounding future rate movements, management has continued to maintain a more neutral interest rate risk position. The Company runs numerous scenarios to quantify and effectively assist in managing interest rate risk, including instantaneous parallel shifts over one and two year horizons, and a series of non-parallel shocks to evaluate the impact of different yield curve shape. Key highlights of the Company’s net interest income sensitivity are summarized in the following table: Table 17 - Interest Rate Sensitivity March 31 2026 2025 Year 1 Year 1 Parallel rate shocks (basis points) -200 (1.2) % (4.6) % -100 (0.4) % (1.7) % +100 0.3 % 1.5 % +200 0.4 % 2.8 % The results depicted in the table above are dependent on material assumptions, such as prepayment rates, betas, rates, pricing decisions on loans and deposits, and other factors, which management believes are reasonable. These assumptions may be impacted by customer preferences or competitive influences and therefore actual experience may differ from the assumptions in the model. Accordingly, although the tables provide an indication of the Company’s interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates, and actual results may differ. The most significant market factors affecting the Company’s net interest income during the three months ended March 31, 2026 were the shape of the U.S. Government securities and interest rate swap yield curve, the U.S. prime interest rate, the Secured Overnight Financing Rate, and other interest rates offered on long-term fixed rate loans. The Company manages the interest rate risk inherent in both its loan and borrowing portfolios by using interest rate swap agreements and interest rate caps and floors. An interest rate swap is an agreement in which one party agrees to pay a floating rate of interest on a notional principal amount in exchange for receiving a fixed rate of interest on the same notional amount for a predetermined period from the other party. Interest rate caps and floors are agreements where one party agrees to pay a floating rate of interest on a notional principal amount for a predetermined period to a second party if certain market interest rate thresholds are realized. While interest is paid or received in swap, cap, and floors agreements, the notional principal amount is not exchanged. The Company may also manage the interest rate risk inherent in its mortgage banking operations by entering into forward sales contracts under which the Company agrees to deliver whole mortgage loans to various investors. See Note 6, “ Derivative and Hedging Activities ” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report for additional information regarding the Company’s derivative financial instruments. Movements in foreign currency rates or commodity prices do not directly or materially affect the Company’s earnings. Movements in equity prices may have a modest impact on earnings by affecting the volume of activity or the amount of fees from investment-related business lines. See Note 3, “Securities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report. Operational Risk Operational risk is the risk arising from human error or misconduct, transaction errors or delays, inadequate or failed internal systems or processes, data unavailability, loss, or poor quality, or adverse external events. Operational risk includes fraud risk and model risk. Potential operational risk exposure exists throughout the Company. The continued effectiveness of colleagues and operational infrastructure are integral to mitigating operational risk, and any shortcomings subject the Company to risks that vary in size, scale and scope. 73 Table of Contents Reputation Risk Reputation risk is the risk arising from negative public opinion of the Company and the Bank. Management seeks to mitigate reputational risk through actions that include a structured process of customer complaint resolution and ongoing reputational monitoring. Regulatory and Compliance Risk Regulatory and Compliance risk is the risk arising from violations of laws or regulations, non-conformance with prescribed practices, internal bank policies and procedures, or ethical standards. Compliance risk includes consumer compliance risk, legal risk, and regulatory compliance risk. Management seeks to mitigate compliance risk through compliance training and regulatory change management processes. Technology and Cyber Risk Technology and Cyber risk is the risk of losses or other impacts arising from the failure of technology systems to function in accordance with expectations and business requirements. Technology risks include technical failures, unlawful tampering with technical systems, cyber security, terrorist activities, ineffectiveness or exposure due to interruption in third party support. Management seeks to mitigate technology risk through appropriate security and controls over data and its technological environment. The Bank manages cybersecurity threats proactively and maintains robust controls to protect its critical systems and information assets by investing in secure, reliable and resilient technology infrastructure, fostering a culture of technology risk awareness and continuously improving its technology risk management practices. Contractual Obligations, Commitments, Contingencies, and Off-Balance Sheet Financial Information Off-Balance Sheet Arrangements There were no material changes in off-balance sheet arrangements during the three months ended March 31, 2026. See Note 6, “Derivative and Hedging Activities” and Note 10, “Commitments and Contingencies” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report for more information relating to the Company’s other off-balance sheet financial instruments. Contractual Obligations, Commitments, and Contingencies There were no material changes in contractual obligations, commitments, or contingencies during the three months ended March 31, 2026. Item 3. Quantitative and Qualitative Disclosures About Market Risk Information required by this Item 3 is included in the “Risk Management” section of Part I. Item 2 “Management's Discussion and Analysis of Financial Condition and Results of Operations” of this Report and is incorporated herein by reference.