INDEPENDENT BANK CORP

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

Table 15 - Non-Interest Expense

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 lower for the third quarter of 2026 due to lower general salaries of $1.3 million and a $985,000 decrease in split dollar insurance valuations, partially offset by increases in medical plan insurance of $455,000, equity compensation of $437,000, and incentive compensation of $376,000. Salaries and employee benefits were higher for the nine months ended September 30, 2026, driven primarily by increases in general salaries of $21.2 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 $4.6 million, incentive compensation of $4.5 million, equity compensation of $1.1 million, and payroll taxes of $1.4 million.

•Occupancy and equipment costs were higher for the third quarter of 2026, driven primarily by increases in rent, office equipment, and utilities costs. Occupancy and equipment costs were also higher in 2026 on a year-to-date basis 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 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 increased volume attributable to the Enterprise acquisition.

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

•FDIC assessment decreased for the third quarter of 2026, reflecting the benefit of a lower assessment rate compared to the prior year period. On a year-to-date basis, FDIC assessment costs were higher in 2026 due primarily to larger assessment base following the Enterprise acquisition.

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

•Amortization of intangible assets was higher in 2026 on a year-to-date basis, driven by increased amortization attributable to the core deposit intangible, customer list, and other intangible assets established as part of the Enterprise acquisition. Intangible asset amortization was lower for the third quarter of 2026 due to a decline in the amortization rate on core deposit intangibles.

•Consulting expenses increased, driven primarily by one-time costs of $2.2 million and $5.4 million for the three and nine months ended September 30, 2026, respectively, associated with the Company’s upcoming core conversion.

•The Company incurred no merger and acquisition expenses for the three months ended September 30, 2026 and $3.0 million for the nine months ended September 30, 2026, as compared to $23.9 million and $27.3 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 nine months ended September 30, 2026, as compared to the prior year periods driven primarily by general increases associated with the Enterprise acquisition. Notable activity for the third quarter of 2026 included increases in internet banking expenses of $569,000, legal costs of $420,000, and recruitment expense of $394,000, partially offset by decreased other losses and charge-offs of $471,000. Notable activity for the first nine months of 2026 included increases in internet banking expense of $1.4 million, other losses and charge-offs of $894,000, reciprocal deposit fees of $633,000, appraisal costs of $544,000, loan work-out costs of $497,000, and postage costs of $494,000.

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. The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated: