INDEPENDENT BANK CORP

Noninterest Expense The following table sets forth information regarding noninterest expense for the periods shown:

Table 20 - Noninterest Expense

The primary reasons for significant variances in the noninterest expense categories shown in the preceding tables are noted below:

•Salaries and employee benefits increased year-over-year primarily attributable to increases in general salaries of $7.6 million, medical plan insurance of $2.0 million, payroll taxes of $1.9 million and incentive programs of approximately $860,000. These increases were partially offset by the impact of outsized interest rate-driven valuation fluctuations on the Company’s split-dollar bank-owned life insurance policies, which resulted in a $1.0 million decrease in expense for 2024 as compared to 2023.

•Occupancy and equipment expense increased year-over-year, driven primarily by lease termination costs related to the exit of an inactive branch location associated with a previous acquisition, as well as increased cleaning costs and depreciation expense.

•Software and subscriptions increased primarily due to the Company’s continued investment in its technology infrastructure.

•FDIC assessment expense decreased in comparison to the prior year, primarily attributable to an estimated $1.1 million special assessment imposed by the FDIC and recognized by the Company in the fourth quarter of 2023 to recover losses incurred by the DIF during the year.

•Debit card expenses decreased year-over-year, driven primarily by a one-time credit of $1.1 million recognized during the third quarter of 2024, as well as reduced processing costs.

•Consulting expense decreased year-over-year due primarily to the timing of strategic initiatives.

•During the fourth quarter of 2024, the Company recognized $1.9 million of merger and acquisition expenses related to the pending merger with Enterprise. No such costs were incurred during 2023.

•Other noninterest expenses increased year-over year, driven primarily by increases in internet banking expense of $1.1 million, telecommunications costs of $762,000, card issuance costs of $599,000, unrealized losses on equity securities of $543,000, examinations and audits of $323,000, along with other miscellaneous expenses. These increases were partially offset by decreases in recruitment and legal costs.