What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-06 · 252 added, 138 removed, 695 unchanged (36% of the section changed)

14 unchanged sentences

• 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;

7 unchanged sentences

• higher than expected tax expense, including as a result of failure to comply with general tax laws and changes in tax laws;

• increased competition in the Company’s market areas, including competition that could impact deposit gathering, retention of deposits and the cost of deposits, increased competition due to the demand for innovative products and service offerings, and competition from non-depository institutions which may be subject to fewer regulatory constraints and lower cost structures;

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;

11 unchanged sentences

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;

including the Company’s ability to successfully complete and integrate its core system conversion and to do so within the anticipated timeframe, including its reliance on third-party providers in connection with that conversion, as well as its ability to effectively manage any related operational disruptions, customer impacts, data conversion issues, or related internal control issues;

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

7 unchanged sentences

Three Months Ended

2026 March 31

2026 December 31

2025 September 30

2025 March 31

(Dollars in thousands, except per share data)

44 unchanged sentences

(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.

For reconciliation to the comparable GAAP financial measures, see Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Executive Level Overview - Non-GAAP Measures” below.

Executive Level Overview

3 unchanged sentences

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.

• Total assets at June 30, 2026 were approximately $25.0 billion.

• Total loans at June 30, 2026 were $18.4 billion and reflect decreases of $31.2 million, or 0.2% and $109.5 million, or 0.6%, when compared to March 31, 2026, and December 31, 2025, respectively.

Loan balances reflect strong growth in core commercial and industrial and home equity portfolios, offset by runoff in the commercial real estate portfolio.

• Total deposits at June 30, 2026 were $20.4 billion and reflect increases of $294.6 million, or 1.5%, and $265.3 million, or 1.3%, when compared to March 31, 2026, and December 31, 2025, respectively.

Deposit balances for the first six months reflect growth in core deposits with average balances impacted by seasonality.

• Wealth assets under administration increased to $9.5 billion at June 30, 2026 compared to $9.2 billion at December 31, 2025.

• The Company has been active in repurchasing common stock during 2026, with quarterly activity as follows:

Shares Repurchased Average Price per Share Total Repurchases (in millions)

Q1 2026 802,316 $ 78.85 $ 63.3

Q2 2026 964,141 77.79 75.0

Total 2026 1,766,457 $ 78.27 $ 138.3

• The Company’s tangible book value per share of $48.34 at June 30, 2026 increased by $0.79 as compared to December 31, 2025 (1) .

Three Months Ended June 30, 2026

• The Company reported net income of $81.8 million, or $1.70 on a diluted earnings per share basis, as compared to $51.1 million, or $1.20 on a diluted earnings per share basis, for the three months ended June 30, 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.

(“Enterprise”) and continued net interest margin expansion.

• There were no merger-related costs incurred during the second quarter of 2026, compared to $2.2 million of pre-tax merger-related costs related to the Enterprise acquisition during the same prior year period.

Excluding these merger-related costs and their related tax effects, operating net income was $53.5 million, or $1.25 per diluted share, for the second quarter of 2025 (1) .

• The Company’s net interest margin of 3.85% increased 48 basis points as compared to 3.37% for the three months ended June 30, 2025, driven by increased interest earning assets obtained from Enterprise, as well as higher yields on interest-earning assets and decreased funding costs.

• The second quarter 2026 provision for credit losses decreased to $6.3 million, as compared to $7.2 million for the second quarter of 2025.

Six Months Ended June 30, 2026

• The Company reported net income of $161.8 million, or $3.33 on a diluted earnings per share basis, as compared to $95.5 million, or $2.24 on a diluted earnings per share basis for the six months ended June 30, 2025, with the increase attributable to the Enterprise acquisition.

• Financial results for the first half of 2026 were inclusive of $3.0 million of pre-tax merger-related costs related to the Enterprise acquisition, as compared to $3.4 million during the same prior year period.

Excluding these merger-related costs, and their related tax effects, operating net income was $164.0 million, or $3.38 per diluted share for the six months ended June 30, 2026, compared to $98.7 million, or $2.32 per diluted share, for the comparable prior year period (1).

• The Company’s net interest margin of 3.88% increased 48 basis points as compared to3.40% for the six months ended June 30, 2025, driven by increased interest earning assets obtained from Enterprise, as well as higher yields on interest-earning assets and decreased funding costs.

• The Company recorded a provision for credit losses of $11.8 million for the six months ended June 30, 2026, as compared to $22.2 million for the same prior year period.

(1) Represents a non-GAAP measure.

13 unchanged sentences

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

Three Months Ended June 30

Net Income Diluted

8 unchanged sentences

Net taxes associated with non-core items (1) — (544) — (0.01)

Add - adjustment for tax effect of previously incurred merger and acquisition expenses — 657 — 0.01

Total tax impact — 113 — —

Non-core increases to net income — 2,352 — 0.05

Operating net income (Non-GAAP) $ 81,838 $ 53,453 $ 1.70 $ 1.25

Six Months Ended June 30

Net Income Diluted

Earnings Per Share

2026 2025 2026 2025

(Dollars in thousands, except per share data)

Net income available to common shareholders (GAAP) $ 161,757 $ 95,525 $ 3.33 $ 2.24

Non-GAAP adjustments

merger and acquisition expenses 3,024 3,394 0.06 0.08

Non-core increases to income before taxes 3,024 3,394 0.06 0.08

Net taxes associated with non-core items (1) (830) (593) (0.01) (0.01)

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

Total tax impact (830) (212) (0.01) —

Non-core increases to net income 2,194 3,182 0.05 0.08

Operating net income (Non-GAAP) $ 163,951 $ 98,707 $ 3.38 $ 2.32

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

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

2026 March 31

2026 December 31

2025 September 30

2025 March 31

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

9 unchanged sentences

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.

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

Refer to “Critical Accounting Estimates” in Item 7.

9 unchanged sentences

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.

Total securities increased by $3.1 million, or 0.1%, to $3.3 billion at June 30, 2026, as new purchases of $238.1 million in the available for sale portfolio were partially offset by maturities, calls, and paydowns in the combined available for sale and held to maturity portfolios, as well as unrealized losses of $23.4 million recognized on available for sale securities.

Total securities represented 13.3% of total assets at both June 30, 2026 and December 31, 2025.

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.

9 unchanged sentences

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 Company incurred no losses related to residential mortgage repurchases during the three and six months ended June 30, 2026 and 2025.

The volume of residential real estate loan sales fluctuates 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

Three Months Ended June 30 Six Months Ended June 30

2026 2025 2026 2025

(Dollars in thousands)

5 unchanged sentences

Table 2 - Residential Mortgage Loan Sales

Three Months Ended March 31

Three Months Ended June 30 Six Months Ended June 30

2026 2025 2026 2025

(Dollars in thousands)

1 unchanged sentence

Sold with servicing rights retained (1)

— 102 452 1,207

Total loans sold $ 61,599 $ 50,016 $ 156,807 $ 87,092

6 unchanged sentences

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.

The principal balance of loans serviced by the Bank on behalf of investors was $258.0 million, $266.0 million and $271.2 million at June 30, 2026, December 31, 2025, and June 30, 2025, respectively.

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

Table 3 - Mortgage Servicing Asset

Three Months Ended March 31

Three Months Ended June 30 Six Months Ended June 30

2026 2025 2026 2025

(Dollars in thousands)

6 unchanged sentences

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).

Loan Portfolio The Company’s total loan portfolio at June 30, 2026 decreased $109.5 million, or 0.6%, when compared to December 31, 2025, driven primarily by a decrease in the combined commercial real estate and construction portfolio of $266.1 million, or 2.8%, due to elevated payoffs and amortization of balances, including a reduction of $77.5 million in the Company’s office portfolio.

This decrease was partially offset by growth in the commercial and industrial portfolio of $119.0 million, or 2.6% (5.20% annualized), despite runoff of $75.5 million attributable to the Company’s strategic exit from the dealer finance business.

The total consumer portfolio increased $37.6 million, or 0.89%, fueled by solid demand in the home equity portfolio, which grew by $45.1 million, or 3.5% (7.0% annualized).

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

1 unchanged sentence

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

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

The following pie chart shows the diversification of the commercial real estate loan portfolio as of June 30, 2026:

* Inclusive of commercial construction balances.

11 unchanged sentences

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

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

The following pie chart shows the diversification of the commercial and industrial portfolio as of June 30, 2026:

Select Statistics Regarding the Commercial and Industrial Portfolio

7 unchanged sentences

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:

The residential real estate, home equity and other consumer portfolios totaled $4.3 billion at June 30, 2026, as noted below:

(Dollars in thousands)

39 unchanged sentences

2026 December 31

2025 March 31

(Dollars in thousands)

13 unchanged sentences

Table 5 - Activity in Non-Performing Assets

Three Months Ended

2026 March 31

Three Months Ended Six Months Ended

(Dollars in thousands)

3 unchanged sentences

Loans paid-off (18,701) (35,977) (23,973) (46,909)

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

Loans restored to performing status (831) (1,659) (1,439) (3,015)

New to other real estate owned 206 2,100 206 2,100

Sale of other real estate owned (2,100) — (2,100) —

Other 19 15 47 (110)

5 unchanged sentences

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.

The Company’s qualitative assessment is structured based upon nine qualitative risk

factors impacting the expected risk of loss within the loan portfolio, with an additional factor designed to capture model imprecision.

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

For the loans that will be individually assessed,

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

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

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

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

As of 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.

As of June 30, 2026, management utilized the Moody’s Baseline forecast to estimate the effect of anticipated current and future economic conditions on the Company’s allowance for credit losses.

This scenario selected by management assumes, among other things, elevated levels of inflation caused by the Iran war, oil price shock, tariffs, and migration policy headwinds, leading to continued uncertainty surrounding monetary policy changes implemented by the Federal Reserve.

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

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

The allowance for credit losses of $195.9 million at June 30, 2026 represents an increase of $6.0 million, or 3.2%, compared to December 31, 2025, driven by provision for credit losses of $11.8 million, partially offset by net charge-offs of $5.7 million.

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

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

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

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

(Dollars in thousands)

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026 Six Months Ended June 30, 2026

Commercial and industrial $ 464 $ 4,684,134 0.04 % $ 775 $ 4,645,075 0.03 %

6 unchanged sentences

Total $ 911 $ 18,455,059 0.02 % $ 5,728 $ 18,452,873 0.06 %

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

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

(Dollars in thousands)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

Commercial and industrial $ 2,793 $ 3,363,944 0.33 % $ 2,945 $ 3,307,764 0.18 %

7 unchanged sentences

(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.

Net charge-offs were $911,000 and $5.7 million for the three and six months ended June 30, 2026, respectively, as compared to $6.5 million and $47.4 million for the three and six months ended June 30, 2025, respective ly.

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

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

28 unchanged sentences

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.

The Company’s investments in FHLB of Boston stock decreased to $13.6 million at June 30, 2026 from $21.8 million at December 31, 2025 in conjunction with net paydowns of FHLB term borrowings during the first half of 2026.

Goodwill and Other Intangible Assets Goodwill and other intangible assets were $1.2 billion at both June 30, 2026 and December 31, 2025.

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

1 unchanged sentence

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.

There were no other events or changes during the second 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 cash surrender value of life insurance policies was $381.2 million at June 30, 2026 compared to $378.6 million at December 31, 2025.

The Company recorded tax exempt income from life insurance policies of $2.6 million and $2.0 million for the three months ended June 30, 2026 and 2025, respectively, and $5.3 million and $4.1 million for the six months ended June 30, 2026 and 2025, respectively.

The Company recorded $672,000 and $1.7 million in gains on life insurance benefits for the three months ended June 30, 2026 and June 30, 2025, respectively, and $1.0 million and $1.7 million for the six months ended June 30, 2026 and June 30, 2025, respectively.

Deposits As of June 30, 2026, total deposits were $20.4 billion, representing an increase of $265.3 million, or 1.3%, from December 31, 2025.

Total non-interest bearing demand deposits comprised 28.0% of total deposits at June 30, 2026, as compared with 27.8% at December 31, 2025.

The total cost of deposits was 1.36% and 1.54% for the three months ended June 30, 2026 and 2025, respectively, and 1.36% and 1.55% for the six months ended June 30, 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 ratio of core deposits, inclusive of reciprocal money market deposits, to total deposits represented 84.1% of total deposits at June 30, 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 $60.0 million and $6.0 million outstanding at June 30, 2026 and December 31, 2025, respectively .

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”).

1 unchanged sentence

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.

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 $2.0 billion and $2.2 billion at June 30, 2026 and December 31, 2025.

The estimated balances of uninsured deposits at the Bank were $6.9 billion and $6.5 billion at June 30, 2026 and December 31, 2025, respectively.

Included in these amounts were $1.1 billion and $932.0 million of collateralized deposits at June 30, 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.

Borrowings were $701.5 million at June 30, 2026, representing a decrease of $124.4 million, or 15.1%, as compared to December 31, 2025, reflecting approximately $200 million in net paydowns on FHLB borrowings, partially offset by $75.0 million advanced on a working capital line of credit during the first half of 2026.

The Company had $13.4 billion and $12.9 billion of assets pledged as collateral against borrowings at June 30, 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.

Capital Resources On June 18, 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 June 29, 2026.

This dividend was paid on July 9, 2026.

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

2 unchanged sentences

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

(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).

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

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

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

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.

At June 30, 2026 and December 31, 2025, the Company and the Bank exceeded the minimum requirements for all applicable ratios that were in effect during the respective periods.

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

3 unchanged sentences

Amount Ratio Amount Ratio Amount Ratio

March 31, 2026

June 30, 2026

(Dollars in thousands)

25 unchanged sentences

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

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

At June 30, 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.

5 unchanged sentences

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.

Dividends paid by the Bank to the Company totaled $81.8 million and $51.5 million for the three months ended June 30, 2026 and 2025, respectively, and totaled $144.2 million and $87.6 million for the six months ended June 30, 2026 and 2025, respectively.

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

1 unchanged sentence

2026 December 31

2025 March 31

(Dollars in thousands)

5 unchanged sentences

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 Investment Management Group generated gross fee revenues of $13.6 million and $10.3 million for the three months ended June 30, 2026 and 2025, respectively and $26.4 million and $20.4 million for the six months ended June 30, 2026 and 2025, respectively.

Total assets under administration at June 30, 2026 and December 31, 2025 were $9.5 billion and $9.2 billion, respectively, which included $451.4 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.

Total assets under administration as of June 30, 2026 and December 31, 2025 included $521.3 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.

3 unchanged sentences

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.

Retail investments and insurance revenue was $1.4 million and $1.0 million for the three months ended June 30, 2026 and 2025, respectively, and $2.7 million and $2.2 million for the six months ended June 30, 2026 and 2025, respectively.

RESULTS OF OPERATIONS

1 unchanged sentence

Table 10 - Summary of Results of Operations

Three Months Ended March 31

Three Months Ended June 30 Six Months Ended June 30

2026 2025 2026 2025

(Dollars in thousands, except per share data)

5 unchanged sentences

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.

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.

On a fully tax equivalent basis (“FTE”), net interest income for the second quarter of 2026 was $212.4 million, representing an increase of $63.7 million, or 42.9%, when compared to the second quarter of 2025.

For the six months ended June 30, 2026, the net interest income on a FTE basis was $426.3 million, representing an increase of $131.0 million, or 44.4%, when compared to the six months ended June 30, 2025.

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

These factors resulted in a net interest margin of 3.85% and 3.88% for the three and six months ended June 30, 2026, respectively, representing increases of 48 basis points for the three and six month periods, respectively, compared to the same prior year periods.

The following tables present the Company’s average balances, net interest income, interest rate spread, and net interest margin for the three and six months ended June 30, 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

Three Months Ended June 30

Balance Interest

55 unchanged sentences

Cost of total funding liabilities 1.52 % 1.73 %

(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.

(1) The total amount of adjustment to present interest income and yield on a FTE basis was $1.5 million and $1.2 million for the three months ended June 30, 2026 and 2025, respectively.

(2) Includes average non-accruing loans.

1 unchanged sentence

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

Table 12 - Average Balance, Interest Earned/Paid & Average Yields Year-to-Date

Six Months Ended June 30

Balance Interest

(Dollars in thousands)

Interest-earning assets

Interest-earning deposits with banks, federal funds sold, and short-term investments $ 359,885 $ 6,290 3.52 % $ 274,490 $ 5,831 4.28 %

Securities - trading 5,330 — — % 4,655 — — %

Securities - taxable investments 3,334,797 51,358 3.11 % 2,742,075 31,175 2.29 %

Securities - non-taxable investments (1) 10,981 273 5.01 % 195 3 3.10 %

Total securities $ 3,351,108 $ 51,631 3.11 % $ 2,746,925 $ 31,178 2.29 %

Loans held for sale 17,290 462 5.39 % 8,127 232 5.76 %

Commercial and industrial (1) 4,645,075 142,749 6.20 % 3,307,764 102,181 6.23 %

Commercial real estate (1) 8,167,785 223,510 5.52 % 6,738,253 173,182 5.18 %

Commercial construction (1) 1,429,856 47,977 6.77 % 797,643 26,933 6.81 %

Total commercial 14,242,716 414,236 5.87 % 10,843,660 302,296 5.62 %

Residential real estate 2,853,081 69,277 4.90 % 2,468,158 55,795 4.56 %

Home equity 1,314,142 39,276 6.03 % 1,150,212 35,918 6.30 %

Total consumer real estate 4,167,223 108,553 5.25 % 3,618,370 91,713 5.11 %

Other consumer 42,934 1,331 6.25 % 37,227 1,175 6.36 %

Total loans $ 18,452,873 $ 524,120 5.73 % $ 14,499,257 $ 395,184 5.50 %

Total interest-earning assets $ 22,181,156 $ 582,503 5.30 % $ 17,528,799 $ 432,425 4.97 %

Cash and due from banks 227,372 196,838

Federal Home Loan Bank stock 18,698 25,260

Other assets 2,211,460 1,852,236

Total assets $ 24,638,686 $ 19,603,133

Interest-bearing liabilities

Savings and interest checking accounts $ 6,326,007 $ 32,004 1.02 % $ 5,218,591 $ 32,715 1.26 %

Money market 4,846,040 50,000 2.08 % 3,237,300 36,800 2.29 %

Time deposits 3,250,189 52,572 3.26 % 2,714,586 49,764 3.70 %

Total interest-bearing deposits $ 14,422,236 $ 134,576 1.88 % $ 11,170,477 $ 119,279 2.15 %

Federal Home Loan Bank and other borrowings $ 338,112 $ 6,376 3.80 % $ 489,733 $ 9,799 4.03 %

Line of credit 79,388 2,178 5.53 % — — — %

Junior subordinated debentures 62,863 1,750 5.61 % 62,861 1,950 6.26 %

Subordinated debentures 296,676 11,291 7.67 % 160,477 6,083 7.64 %

Total borrowings $ 777,039 $ 21,595 5.60 % $ 713,071 $ 17,832 5.04 %

Total interest-bearing liabilities $ 15,199,275 $ 156,171 2.07 % $ 11,883,548 $ 137,111 2.33 %

Non-interest bearing demand deposits 5,525,470 4,358,950

Other liabilities 343,008 310,641

Total liabilities $ 21,067,753 $ 16,553,139

Stockholders’ equity 3,570,933 3,049,994

Total liabilities and stockholders’ equity $ 24,638,686 $ 19,603,133

Net interest income (1) $ 426,332 $ 295,314

Interest rate spread (3) 3.23 % 2.64 %

Net interest margin (4) 3.88 % 3.40 %

Supplemental information

Total deposit, including demand deposits $ 19,947,706 $ 134,576 $ 15,529,427 $ 119,279

Cost of total deposits 1.36 % 1.55 %

Total funding liabilities, including demand deposits $ 20,724,745 $ 156,171 $ 16,242,498 $ 137,111

Cost of total funding liabilities 1.52 % 1.70 %

(1) The total amount of adjustment to present interest income and yield on a FTE basis was $2.9 million and $2.3 million for the six months ended June 30, 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.

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.

2 unchanged sentences

Table 13 - Volume Rate Analysis

Three Months Ended March 31

2026 Compared To 2025

Three Months Ended June 30 Six Months Ended June 30

2026 Compared To 2025 2026 Compared To 2025

Volume Total Change Change

Volume Total Change

4 unchanged sentences

Securities - non-taxable investments (1)

23 104 127 104 166 270

Total securities 10,346 20,453

11 unchanged sentences

Total loans (1)(2)

62,752 128,936

Total income of interest-earning assets $ 71,408 $ 150,078

12 unchanged sentences

(1) Reflects income determined on a FTE basis.

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

See footnote (1) to Tables 11 and 12 in this Report for the related adjustments.

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

1 unchanged sentence

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.

The Company recorded a provision for credit loss of $6.3 million and $11.8 million for the three and six months ended June 30, 2026, respectively, as compared to $7.2 million and $22.2 million for the three and six months ended June 30, 2025, respectively, 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 1.06% at June 30, 2026, 1.03% at December 31, 2025, and 1.00% at June 30, 2025.

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

3 unchanged sentences

Three Months Ended

March 31 Change

June 30 Change

2026 2025 Amount %

9 unchanged sentences

Total $ 42,391 $ 34,308 $ 8,083 23.56 %

Six Months Ended

June 30 Change

2026 2025 Amount %

(Dollars in thousands)

Deposit account fees $ 18,642 $ 14,194 $ 4,448 31.34 %

Interchange and ATM fees 10,704 9,619 1,085 11.28 %

Investment management and advisory 29,126 22,600 6,526 28.88 %

Mortgage banking income 2,444 1,813 631 34.80 %

Increase in cash surrender value of life insurance policies 5,348 4,103 1,245 30.34 %

Gain on life insurance benefits 1,018 1,650 (632) (38.30) %

Loan level derivative income 2,227 1,108 1,119 100.99 %

Other non-interest income 13,143 11,760 1,383 11.76 %

Total $ 82,652 $ 66,847 $ 15,805 23.64 %

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.

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

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

• The increase in investment management and advisory income was primarily driven by higher asset-based revenue attributable to higher levels of assets under administration, which increased by $2.1 billion, or 28.7%, to $9.5 billion at June 30, 2026, as compared to $7.4 billion at June 30, 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 half 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.

• The Company received proceeds on life insurance policies resulting in gains of $672,000 and $1.0 million during the three and six months ended June 30, 2026, respectively, as compared to $1.7 million for both the three and six months ended June 30, 2025.

• Loan level derivative income increased due to higher customer demand.

• Other non-interest income was higher for the three and six months ended June 30, 2026, primarily attributable to increases in credit card fee income of $235,000 and $462,000, respectively, and increases in payment processing income of $177,000 and $397,000, respectively.

Additionally, income from other investments increased $441,000 during the first half of 2026 as compared to the prior year period.

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

1 unchanged sentence

Three Months Ended

March 31 Change

June 30 Change

2026 2025 Amount %

7 unchanged sentences

Amortization of intangible assets 6,791 1,197 5,594 467.34 %

Consulting expense 3,274 1,018 2,256 221.61 %

Merger and acquisition expenses — 2,239 (2,239) (100.00) %

1 unchanged sentence

Total $ 140,272 $ 108,798 $ 31,474 28.93 %

Six Months Ended

June 30 Change

2026 2025 Amount %

(Dollars in thousands)

Salaries and employee benefits $ 159,825 $ 124,787 $ 35,038 28.08 %

Occupancy and equipment expenses 33,476 27,017 6,459 23.91 %

Data processing & facilities management 6,467 5,425 1,042 19.21 %

Software and subscriptions 14,138 10,193 3,945 38.70 %

FDIC assessment 6,486 5,361 1,125 20.98 %

Debit card expense 4,864 3,919 945 24.11 %

Amortization of intangible assets 13,681 2,541 11,140 438.41 %

Consulting expense 5,251 2,115 3,136 148.27 %

Merger and acquisition expenses 3,024 3,394 (370) (10.90) %

Other non-interest expenses 35,977 29,924 6,053 20.23 %

Total $ 283,189 $ 214,676 $ 68,513 31.91 %

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.

• Salaries and employee benefits were higher for the three and six months ended June 30, 2026, driven primarily by increases in general salaries of $11.1 million and $22.5 million, respectively, including the impact of an expanded employee base as a result of the Enterprise acquisition, as well as increases in medical plan insurance of $2.0 million and $4.2 million, respectively, incentive compensation of $985,000 and $4.5 million, respectively, and payroll taxes of $784,000 and $1.7 million, respectively.

• 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 $1.4 million increase in snow removal costs for the six months ended June 30, 2026 as compared to the prior year.

• 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.

3 unchanged sentences

• 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.

• Consulting expenses increased, driven primarily by one-time costs of $2.1 million and $3.3 million for the three and six months ended June 30, 2026, respectively, associated with the Company’s upcoming core conversion.

• The Company incurred no merger and acquisition expenses for the three months ended June 30, 2026 and $3.0 million for the six months ended June 30, 2026, as compared to $2.2 million and $3.4 million for the same prior year periods.

All of these merger-related costs were associated with the Company’s acquisition of Enterprise.

• Other non-interest expense was higher for the three and six months ended June 30, 2026, as compared to the prior year periods driven primarily by two full quarters of general increases associated with the Enterprise acquisition.

Notable activity for the second quarter 2026 included increases in internet banking expenses of $482,000, legal costs of $306,000, and other losses and charge-offs of $298,000.

Notable activity for the first half of 2026 included increases in other losses and charge-offs of $1.2 million, state-charter assessments of $431,000, appraisal costs of $425,000, and reciprocal deposit fees of $425,000.

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

1 unchanged sentence

Table 16 - Tax Provision and Applicable Tax Rates

Three Months Ended

Three Months Ended Six Months Ended

June 30 June 30

2026 2025 2026 2025

(Dollars in thousands)

3 unchanged sentences

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

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.

1 unchanged sentence

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.

The total committed investment in these partnerships is $340.2 million, of which $252.2 million had been funded as of June 30, 2026.

It is expected that the limited partnership investments will generate a net tax benefit of approximately $6.1 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.

The Board of Directors has approved an Enterprise Risk Management Policy 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.

1 unchanged sentence

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 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, Information Security, and Loan Review.

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

2 unchanged sentences

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

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.

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

The eight major risk categories identified by the Company and addressed in the Risk Appetite Statement are Strategic Risk, Culture Risk, Credit Risk, Liquidity Risk, Market and Interest Rate Risk, Operational Risk, Regulatory and Compliance Risk, and Technology and Cyber risk, each of which is discussed below.

Strategic Risk Strategic 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.

10 unchanged sentences

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.

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.

5 unchanged sentences

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.

The Company prioritizes deposits as a primary funding source and continues to maintain significant available borrowing capacity at the FHLB and Federal Reserve.

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.

3 unchanged sentences

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

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

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

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

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

1 unchanged sentence

Table 17 - Liquidity Sources

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Outstanding Additional

16 unchanged sentences

$ 761,422 $ 9,431,168 $ 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.

(1) Loans and securities with a carrying value of $5.1 billion and $4.5 billion as of June 30, 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 June 30, 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.

17 unchanged sentences

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

The risk of prepayment tends to increase when

interest rates fall.

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

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

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

Given the volatility associated with market rates, and the uncertainty surrounding future rate movements, management continues 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.

10 unchanged sentences

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.

The most significant market factors affecting the Company’s net interest income during the three months ended June 30, 2026 were the shape of the U.S.

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

15 unchanged sentences

The continued effectiveness of colleagues and operational infrastructure are integral to mitigating operational risk, and any shortcomings subject the Company to risks that vary in size, scale and scope.

Reputation Risk Reputation risk is the risk arising from negative public opinion of the Company and the Bank.

Management seeks to mitigate reputational risk through actions that include a structured process of customer complaint resolution and ongoing reputational monitoring.

Regulatory and Compliance Risk Regulatory and Compliance risk is the risk arising from violations of laws or regulations, non-conformance with prescribed practices, internal bank policies and procedures, or ethical standards.

6 unchanged sentences

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.

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

Contractual Obligations, Commitments, and Contingencies There were no material changes in contractual obligations, commitments, or contingencies during the three months ended June 30, 2026.

Quantitative and Qualitative Disclosures About Market Risk

2 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis