Eastern Bankshares, Inc.
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
EBC$22.84+0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001628280-25-039203
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001628280-25-050194
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 301 previous paragraphs and 289 current paragraphs.
202 unchanged; 78 reworded; 9 added; 14 removed; 7 previous and 0 current paragraphs rearranged.
Tables are not compared: 31 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
HarborOne Acquisition
Current report
Effective November 1, 2025, we completed our previously announced merger with HarborOne and HarborOne Bank, a wholly owned subsidiary of HarborOne. For further information regarding the merger refer to Note 17, “Subsequent Events”within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q.
Current report
During the nine months ended September 30, 2025, interest expense decreased by $10.7 million to $236.9 million from $247.6 million during the nine months ended September 30, 2024. This decreases was primarily due to deposit interest expense which decreased during the nine months ended September 30, 2025 by $11.2 million to $235.1 million from $246.3 million during the nine months ended September 30, 2024. This decrease was due to an decrease in rates paid on deposits.
Current report
Noninterest income increased by $7.7 million, or 23.0%, to $41.3 million during the three months ended September 30, 2025 from $33.5 million during the three months ended September 30, 2024. This increase was primarily due to a $4.5 million increase in other non-operating income and a $2.6 million increase in investment advisory fees.
Current report
•Other non-operating income increased primarily as a result of as a result of write-offs of certain property and equipment during the three months ended September 30, 2024 which was associated with our merger with Cambridge and which did not recur during the three months ended September 30, 2025. Also contributing to the increase was a gain on sale on of an other equity investment during the three months ended September 30, 2025.
Current report
•Other non-operating income increased primarily as a result of write-offs of certain property and equipment during the nine months ended September 30, 2024 which was associated with our merger with Cambridge. Also contributing to the increase was a gain on sale on of an other equity investment during the nine months ended September 30, 2025.
Current report
Noninterest expense decreased by $19.3 million, or 12.1%, to $140.4 million during the three months ended September 30, 2025 from $159.8 million during the three months ended September 30, 2024. The decrease was primarily due to $24.4 million decrease in non-operating expenses and was partially offset by a $3.4 million increase in salaries and employee benefits expense.
Current report
•Non-operating expenses, which are comprised entirely of merger and acquisitions expenses, decreased primarily as a result of the timing and extent of merger and acquisition costs incurred in association with our merger with Cambridge during the three months ended September 30, 2024 in comparison to the costs incurred related to our merger with HarborOne incurred during the three months ended September 30, 2025.
Current report
•Non-operating expenses, which are made up entirely of merger and acquisitions expenses, decreased primarily as a result of the timing and extent of merger and acquisition costs incurred in association with our merger with Cambridge during the nine months ended September 30, 2024 in comparison to the costs related to our merger with HarborOne incurred during the nine months ended September 30, 2025.
Removed paragraphs (14)
Previous report
Acquisitions
Previous report
Proposed Acquisition
Previous report
On April 24, 2025, Eastern Bankshares, Inc. and our wholly owned subsidiary, Eastern Bank, HarborOne Bancorp, Inc. (“HarborOne”) and HarborOne Bank, a wholly owned subsidiary of HarborOne Bancorp, Inc. (“HarborOne”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, we will acquire HarborOne and HarborOne Bank through the merger of HarborOne with and into the Eastern Bankshares, Inc., with Eastern Bankshares, Inc. as the surviving entity (the “Merger”). The Merger Agreement further provides that following the Merger, HarborOne Bank will merge with and into Eastern Bank, with Eastern Bank as the surviving entity.
Previous report
Prior to the effective time of the Merger (the “Effective Time”), shareholders of HarborOne will elect to receive for each share of HarborOne common stock (“HarborOne Common Stock”) either (i) 0.765 shares of Eastern Bankshares, Inc. common stock (the “Stock Consideration” or the “Exchange Ratio”) or (ii) $12.00 in cash (the “Cash Consideration”). Subject to proration, HarborOne shareholders will have the right to elect the Stock Consideration or Cash Consideration so long as the total number of shares of HarborOne Common Stock that receive the Stock Consideration represents between 75% and 85% of the total number of shares of HarborOne Common Stock outstanding immediately prior to the Effective Time.
Previous report
Subject to the fulfillment or, if permissible, waiver of the closing conditions under the Merger, we anticipate that the Merger will close during the fourth quarter of 2025, although we have the right under the Merger Agreement to defer the closing until February 20, 2026 if the closing conditions are satisfied after October 31, 2025 but before February 20, 2026.
Previous report
HarborOne, a Massachusetts corporation, is a federally registered bank holding company headquartered in Brockton, Massachusetts. HarborOne Bank, a state-chartered trust company that was originally established in 1917, is a wholly-owned subsidiary of HarborOne that operates through a network of 30 full-service branches in Massachusetts and Rhode Island with $5.6 billion in total assets and $4.5 billion in total deposits as of June 30, 2025. HarborOne’s core services also include its mortgage company, HarborOne Mortgage, which is a wholly-owned subsidiary of HarborOne Bank. HarborOne Mortgage is a residential mortgage company headquartered in New Hampshire that maintains offices in Massachusetts, New Hampshire, Rhode Island, Maine, New Jersey, and Florida, and is licensed to lend in five additional states.
Previous report
(2)For the six-month period ended June 30, 2025, which ended in a net loss, common stock equivalents are excluded from the calculation of diluted earnings per share for GAAP purposes as inclusion would have had an anti-dilutive effect. Common stock equivalents were included for purposes of computing diluted operating earnings per share.
Previous report
During the six months ended June 30, 2025, interest expense increased by $2.7 million to $154.1 million from $151.4 million during the six months ended June 30, 2024. This increase was primarily due to deposit interest expense which increased during the six months ended June 30, 2025 by $1.8 million to $152.7 million from $150.9 million during the six months ended June 30, 2024. This increase was due to an increase in the average balance of interest-bearing deposits. During the six months ended June 30, 2025, average-interest bearing deposits increased by $2.4 billion, or 18.6%, to $15.1 billion from $12.8 billion during the six months ended June 30, 2024, primarily as a result of our merger with Cambridge which added approximately $2.9 billion in interest-bearing deposits.
Previous report
Noninterest income increased by $17.5 million, or 69.1%, to $42.9 million during the three months ended June 30, 2025 from $25.3 million during the three months ended June 30, 2024. This increase was primarily due to an $10.6 million increase in investment advisory fees, a $7.6 million decrease in losses on sales of securities available for sale, and an $4.0 million increase in income from investments held in rabbi trusts. These items were partially offset by a $6.3 million decrease in miscellaneous income and fees.
Previous report
•Losses on sales of securities available for sale were $7.6 million during the three months ended June 30, 2024. In May 2024 an early withdrawal of an omnibus deposit contract occurred which had a balance of $100.0 million at the time of contract termination. Management made the decision to sell certain available for sale securities following the early termination in order to recoup liquidity. There were no sales of securities during the three months ended June 30, 2025.
Previous report
•Income from investments held in rabbi trusts increased primarily as a result of a more favorable mark-to-market adjustment on equity securities held in those accounts for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Previous report
Noninterest expense increased by $27.1 million, or 24.7%, to $137.0 million during the three months ended June 30, 2025 from $109.9 million during the three months ended June 30, 2024. The increase was primarily due to a $15.9 million increase in salaries and employee benefits expense and a $7.3 million increase in amortization of intangible assets.
Previous report
•Salaries and employee benefits increased primarily due to an increase in salaries and wages expense, an increase in incentive compensation, and an increase in benefit expense related to our defined contribution supplemental executive retirement plan (“DC SERP”).
Previous report
◦DC SERP increased $1.4 million primarily due to an increase in investment performance related to investments held in rabbi trusts during the three months ended June 30, 2025. Participant benefits are adjusted based upon deemed investment performance. Accordingly, such investments experienced an increase in value during the three months ended June 30, 2025, resulting in a corresponding increase in the related benefit expense.
Reworded paragraphs (78)
Previous wording
This section is intended to assist in the understanding of the financial performance of the Company and its subsidiaries through a discussion of our financial condition at June 30, 2025, and our results of operations for the three and six months ended June 30, 2025 and 2024. This section should be read in conjunction with the unaudited interim condensed consolidated financial statements and notes thereto of the Company appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q and the Company’s 2024 Form 10-K.
Current wording
This section is intended to assist in the understanding of the financial performance of the Company and its subsidiaries through a discussion of our financial condition at September 30, 2025, and our results of operations for the three and nine months ended September 30, 2025 and 2024. This section should be read in conjunction with the unaudited interim condensed consolidated financial statements and notes thereto of the Company appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q and the Company’s 2024 Form 10-K.
Previous wording
•changes in regional, national or international macroeconomic conditions, including changes in inflation, recessionary pressures or interest rates in the United States;
Current wording
•changes in regional, national or international macroeconomic conditions, including tariffs, governmental shutdowns or changes in inflation, recessionary pressures or interest rates in the United States;
Previous wording
•a regulatory reform agenda implemented by the Trump administration that is significantly different from that of the Biden administration, impacting the rulemaking, supervision, examination and enforcement priorities of the federal banking agencies;
Current wording
•a regulatory reform agenda implemented by the Trump administration that is significantly different from that of the Biden administration, impacting the rulemaking, supervision, examination and enforcement priorities of the federal banking agencies, including risks related to the Trump administration’s increased focus on widespread implementation of stablecoins and other digital assets;
Previous wording
•risks related to the implementation of acquisitions, dispositions, and restructurings, including our 2024 merger with Cambridge Bancorp and Cambridge Trust Company, which is further described in Part I, Item 1 of our 2024 Annual Report on Form 10-K under “Recent Acquisitions – Bank Acquisitions” and pending merger with HarborOne Bancorp and HarborOne Bank which we announced on April 24, 2025, including the risk that acquisitions may not be timely completed or at all and may not produce results at levels or within time frames originally anticipated, including due to delays in obtaining regulatory approvals or to the conditions associated with such approvals;
Current wording
•risks related to the implementation of acquisitions, dispositions, and restructurings, including our 2024 merger with Cambridge Bancorp and Cambridge Trust Company, which is further described in Part I, Item 1 of our 2024 Annual Report on Form 10-K under “Recent Acquisitions – Bank Acquisitions” and merger with HarborOne Bancorp and HarborOne Bank, including that revenue and expense synergies or other expected benefits may not materialize or in the time frame originally anticipated or may be more costly to achieve than anticipated and that the combined businesses may not perform as expected;
Previous wording
•potential risks related to the integration of our completed or pending acquisitions, including that revenue and expense synergies or other expected benefits may not materialize or may be more costly to achieve than anticipated and that the combined businesses may not perform as expected;
Current wording
•potential risks related to the integration of our completed or pending acquisitions may not materialize or may be more costly to achieve than anticipated and that the combined businesses may not perform as expected;
Previous wording
There have been no other material changes in critical accounting policies during the three and six months ended June 30, 2025.
Current wording
There have been no other material changes in critical accounting policies during the three and nine months ended September 30, 2025.
Previous wording
Net income and net loss for the three and six months ended June 30, 2025, respectively, computed in accordance with GAAP was $100.2 million and $117.4 million, respectively, as compared to net income of $26.3 million and $65.0 million for the three and six months ended June 30, 2024, respectively. The increase in net income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to increased net interest income and increased noninterest income during the three months ended June 30, 2025. Refer to the later sections titled“Results of Operations”within this Item 2 for additional discussion. The decrease in net income from the six months ended June 30, 2024 to a net loss for six months ended June 30, 2025 was primarily due to losses on sales of securities during the six months ended June 30, 2025. Refer to the later sections titled“Results of Operations”within this Item 2 for additional discussion
Current wording
Net income and net loss for the three and nine months ended September 30, 2025, respectively, computed in accordance with GAAP was $106.1 million and $11.3 million, respectively, as compared to net loss and net income of $6.2 million and $58.8 million, respectively, for the three and nine months ended September 30, 2024, respectively. The increase in net income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to increased net interest income and noninterest income during the three months ended September 30, 2025. The decrease in net income from the nine months ended September 30, 2024 to a net loss for nine months ended September 30, 2025 was primarily due to losses on sales of securities during the nine months ended September 30, 2025. Refer to the later sections titled“Results of Operations”within this Item 2 for additional discussion
Previous wording
Net income and loss for the three and six months ended June 30, 2025, respectively, and net income for the three and six months ended June 30, 2024 included items that our management considers non-core, which management excludes for purposes of assessing our operating net income, a non-GAAP financial measure. Operating net income for the three and six months ended June 30, 2025 was $81.7 million and $149.2 million, respectively, compared to operating net income for the three and six months ended June 30, 2024 of $37.1 million and $77.1 million, respectively, representing increases of 120.1% and 93.5%, respectively. These increases were primarily due to higher net interest income for both the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 partially offset by higher noninterest expense on an operating basis for both the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024. See“Non-GAAP Financial Measures”and“Results of Operations” within this Item 2 for a reconciliation of operating net income to net income on a GAAP basis and further discussion of noninterest income and noninterest expense.
Current wording
Net income and loss for the three and nine months ended September 30, 2025, respectively, and net loss and income for the three and nine months ended September 30, 2024, respectively, included items that our management considers non-core, which management excludes for purposes of assessing our operating net income, a non-GAAP financial measure. Operating net income for the three and nine months ended September 30, 2025 was $74.1 million and $223.3 million, respectively, compared to operating net income for the three and nine months ended September 30, 2024 of $51.3 million and $128.4 million, respectively, representing increases of 44.3% and 73.8%, respectively. These increases were primarily due to higher net interest income for both the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, partially offset by higher noninterest expense on an operating basis for both the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024. See“Non-GAAP Financial Measures”and“Results of Operations” within this Item 2 for a reconciliation of operating net income to net income/(loss) on a GAAP basis and further discussion of noninterest income/(loss) and noninterest expense.
Previous wording
•Commercial and industrial: Loans in this category consist of revolving and term loans extended to businesses and corporate enterprises for the purpose of financing working capital, facilitating equipment purchases and facilitating acquisitions. As of June 30, 2025 and December 31, 2024, we had total commercial and industrial loans of $3.6 billion and $3.3 billion, respectively, representing 19.8% and 18.4%, respectively, of our total loans. The primary risk associated with commercial and industrial loans is the ability of borrowers to achieve business results consistent with those projected at origination. Our primary focus for commercial and industrial loans is middle-market companies located in the markets we serve. In addition, we participate in the syndicated loan market and the SNC Program. Our commercial and industrial portfolio also includes our Asset Based Lending Portfolio (“ABL Portfolio”) and industrial revenue bonds (“IRBs”) which are municipal bonds issued to finance major capital projects. The majority of our IRB portfolio is in educational and other non-profit sectors.
Current wording
•Commercial and industrial: Loans in this category consist of revolving and term loans extended to businesses and corporate enterprises for the purpose of financing working capital, facilitating equipment purchases and facilitating acquisitions. As of September 30, 2025 and December 31, 2024, we had total commercial and industrial loans of $3.7 billion and $3.3 billion, respectively, representing 20.2% and 18.4%, respectively, of our total loans. The primary risk associated with commercial and industrial loans is the ability of borrowers to achieve business results consistent with those projected at origination. Our primary focus for commercial and industrial loans is middle-market companies located in the markets we serve. In addition, we participate in the syndicated loan market and the SNC Program. Our commercial and industrial portfolio also includes our Asset Based Lending Portfolio (“ABL Portfolio”) and industrial revenue bonds (“IRBs”) which are municipal bonds issued to finance major capital projects. The majority of our IRB portfolio is in educational and other non-profit sectors.
Previous wording
39.6%, respectively, of our total loans as of each period end. As of June 30, 2025 and December 31, 2024, owner occupied loans totaled $948.5 million and $947.2 million, respectively, representing 13.1% and 13.4%, respectively, of our commercial real estate loans. Collateral values are established by independent third-party appraisals and evaluations. The primary repayment sources include operating income generated by the real estate, permanent debt refinancing and/or the sale of the real estate. Our commercial real estate loan portfolio also includes loans included in our SNC Program portfolio described above and IRB loans.
Current wording
•Commercial real estate: Loans in this category include mortgage loans and lines of credit on commercial real estate, both investment and owner occupied. Property types financed include office, industrial, multi-family, affordable housing, retail, hotel, and other type properties. As of September 30, 2025 and December 31, 2024, we had total commercial real estate loans of $7.4 billion and $7.0 billion, respectively, representing 39.7% and 39.6%, respectively, of our total loans as of each period end. As of September 30, 2025 and December 31, 2024, owner occupied loans totaled $982.8 million and $947.2 million, respectively, representing 13.3% and 13.4%, respectively, of our commercial real estate loans. Collateral values are established by independent third-party appraisals and evaluations. The primary repayment sources include operating income generated by the real estate, permanent debt refinancing and/or the sale of the real estate. Our commercial real estate loan portfolio also includes loans included in our SNC Program portfolio described above and IRB loans.
Previous wording
•Commercial construction: Loans in this category include construction project financing and are comprised of commercial real estate, business banking and residential loans for the purpose of constructing and developing real estate. As of June 30, 2025 and December 31, 2024, we had total commercial construction loans of $470.5 million and $491.6 million, respectively, representing 2.6% and 2.8%, respectively, of our total loans. Our commercial construction loan portfolio also includes loans included in our SNC Program portfolio described above and IRB loans.
Current wording
•Commercial construction: Loans in this category include construction project financing and are comprised of commercial real estate, business banking and residential loans for the purpose of constructing and developing real estate. As of September 30, 2025 and December 31, 2024, we had total commercial construction loans of $462.5 million and $491.6 million, respectively, representing 2.5% and 2.8%, respectively, of our total loans. Our commercial construction loan portfolio also includes loans included in our SNC Program portfolio described above and IRB loans.
Previous wording
•Business banking: Loans in this category are comprised of loans to small businesses with exposures of under $1.0 million and small investment real estate projects with exposures of under $3.0 million. These loans are separate and distinct from our commercial and industrial and commercial real estate portfolios described above due to the size of the loans. As of both June 30, 2025 and December 31, 2024, we had total business banking loans of $1.4 billion, representing 7.7% and 8.1%, respectively, of our total loans for each period end. In this category, commercial and industrial loans and commercial real estate loans totaled $236.0 million and $1.2 billion, respectively, as of June 30, 2025, and $244.4 million and $1.2 billion, respectively, as of December 31, 2024.
Current wording
•Business banking: Loans in this category are comprised of loans to small businesses with exposures of under $1.0 million and small investment real estate projects with exposures of under $3.0 million. These loans are separate and distinct from our commercial and industrial and commercial real estate portfolios described above due to the size of the loans. As of both September 30, 2025 and December 31, 2024, we had total business banking loans of $1.4 billion, representing 7.5% and 8.1%, respectively, of our total loans for each period end. In this category, commercial and industrial loans and commercial real estate loans totaled $241.2 million and $1.2 billion, respectively, as of September 30, 2025, and $244.4 million and $1.2 billion, respectively, as of December 31, 2024.
Previous wording
•Residential real estate: Loans in this category consist of mortgage loans on residential real estate. As of both June 30, 2025 and December 31, 2024, we had total residential real estate loans of $3.9 billion, representing 21.2% and 22.1%, respectively, of our total loans. Underwriting considerations include, among others, income sources and their reliability, willingness to repay as evidenced by credit repayment history, financial resources including cash reserves and the value of the collateral. We maintain policy standards for minimum credit scores and cash reserves and maximum loan-to-value consistent with a “prime” portfolio. Collateral consists of mortgage liens on residential dwellings. We do not originate or purchase sub-prime or other high-risk loans. Residential real estate loans are originated either for sale to investors or to retain in our loan portfolio. Decisions about whether to sell or retain residential real estate loans are made based on the interest rate characteristics, pricing for loans in the secondary mortgage market, competitive factors and our capital needs. During the three and six months ended June 30, 2025, residential real estate mortgage loan originations were $128.0 million and $183.5 million, respectively, of which $9.7 million and $22.8 million, respectively, were sold on the secondary markets. Comparatively, during the three and six months ended June 30, 2024, residential real estate mortgage loan originations were $89.3 million and $127.6 million, respectively, of which $14.8 million and $34.7 million, respectively, were sold on the secondary markets.
Current wording
•Residential real estate: Loans in this category consist of mortgage loans on residential real estate. As of both September 30, 2025 and December 31, 2024, we had total residential real estate loans of $3.9 billion, representing 20.9% and 22.1%, respectively, of our total loans. Underwriting considerations include, among others, income sources and their reliability, willingness to repay as evidenced by credit repayment history, financial resources including cash reserves and the value of the collateral. We maintain policy standards for minimum credit scores and cash reserves and maximum loan-to-value consistent with a “prime” portfolio. Collateral consists of mortgage liens on residential dwellings. We do not originate or purchase sub-prime or other high-risk loans. Residential real estate loans are originated either for sale to investors or to retain in our loan portfolio. Decisions about whether to sell or retain residential real estate loans are made based on the interest rate characteristics, pricing for loans in the secondary mortgage market, competitive factors and our capital needs. During the three and nine months ended September 30, 2025, residential real estate mortgage loan originations were $128.1 million and $311.6 million, respectively, of which $8.9 million and $31.8 million, respectively, were sold on the secondary markets. Comparatively, during the three and nine months ended September 30, 2024, residential real estate mortgage loan originations were $117.3 million and $244.9 million, respectively, of which $30.9 million and $65.7 million, respectively, were sold on the secondary markets.
Previous wording
•Consumer home equity: Loans in this category consist of home equity lines of credit and home equity loans. As of June 30, 2025 and December 31, 2024, we had total consumer home equity loans of $1.5 billion and $1.4 billion, respectively, representing 8.0% and 7.8%, respectively, of our total loans. Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. Full principal repayment is required at the end of the ten-year draw period. Home equity lines of credit can be converted to term loans that are fully amortized. Underwriting considerations are materially consistent with those utilized in the residential real estate category. Collateral consists of a senior or subordinate lien on owner-occupied residential property.
Current wording
•Consumer home equity: Loans in this category consist of home equity lines of credit and home equity loans. As of September 30, 2025 and December 31, 2024, we had total consumer home equity loans of $1.5 billion and $1.4 billion, respectively, representing 8.1% and 7.8%, respectively, of our total loans. Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. Full principal repayment is required at the end of the ten-year draw period. Home equity lines of credit can be converted to term loans that are fully amortized. Underwriting considerations are materially consistent with those utilized in the residential real estate category. Collateral consists of a senior or subordinate lien on owner-occupied residential property.
Previous wording
•Other consumer: Loans in this category consist of unsecured personal lines of credit, overdraft protection, automobile and aircraft loans, home improvement loans and other personal loans. As of June 30, 2025 and December 31, 2024, we had total other consumer loans of $222.6 million and $227.2 million, respectively, representing 1.2% and 1.3%, respectively, of our total loans. Our policy and underwriting in this category include the following factors, among others: income sources and reliability, credit histories, term of repayment and collateral value, as applicable.
Current wording
•Other consumer: Loans in this category consist of unsecured personal lines of credit, overdraft protection, automobile and aircraft loans, home improvement loans and other personal loans. As of September 30, 2025 and December 31, 2024, we had total other consumer loans of $220.1 million and $227.2 million, respectively, representing 1.2% and 1.3%, respectively, of our total loans. Our policy and underwriting in this category include the following factors, among others: income sources and reliability, credit histories, term of repayment and collateral value, as applicable.
Previous wording
•Through our Cambridge Trust Wealth Management division, we provide a wide range of trust services, including (i) managing customer investments, (ii) serving as custodian for customer assets, and (iii) providing other fiduciary services, including serving as the trustee and personal representative of estates. As of June 30, 2025 and December 31, 2024, we held $9.2 billion and $8.7 billion, respectively, of assets in a fiduciary, custodial or agency capacity for customers, which are not our assets and therefore not included on the Consolidated Balance Sheets included in this Quarterly Report on Form 10-Q. For the three and six months ended June 30, 2025, we had noninterest income of $17.3 million and $33.7 million, respectively, from providing these services compared to $6.7 million and $13.3 million for the three and six months ended June 30, 2024, respectively.
Current wording
•Through our Cambridge Trust Wealth Management division, we provide a wide range of trust services, including (i) managing customer investments, (ii) serving as custodian for customer assets, and (iii) providing other fiduciary services, including serving as the trustee and personal representative of estates. As of September 30, 2025 and December 31, 2024, we held $9.7 billion and $8.7 billion, respectively, of assets in a fiduciary, custodial or agency capacity for customers, which are not our assets and therefore not included on the Consolidated Balance Sheets included in this Quarterly Report on Form 10-Q. For the three and nine months ended September 30, 2025, we had noninterest income of $17.6 million and $51.3 million, respectively, from providing these services compared to $14.9 million and $28.2 million for the three and nine months ended September 30, 2024, respectively.
Previous wording
During the three and six months ended June 30, 2025, we incurred and recorded merger and acquisition costs related to our proposed acquisition of HarborOne of $2.6 million. The following table presents HarborOne-related merger and acquisition costs by expense category, which are included in non-operating expenses on the Consolidated Statements of Income, for the three and six months ended June 30, 2025:
Current wording
During the three and nine months ended September 30, 2025, we incurred and recorded merger and acquisition costs related to our acquisition of HarborOne of $3.2 million and $5.8 million, respectively. The following table presents HarborOne-related merger and acquisition costs by expense category, which are included in non-operating expenses on the Consolidated Statements of Income, for the three and nine months ended September 30, 2025:
Previous wording
Beginning in March 2022, the Federal Open Market Committee (“FOMC”) voted to increase the federal funds rate multiple times from a range of 0.00% to 0.25% to a range of 5.25% to 5.50% on July 26, 2023, when the FOMC stated that it will continue to assess additional information and its implications for monetary policy. At its meeting on September 18, 2024, the FOMC decided to lower the target range for the federal funds rate by 50 basis points from the range set at its July 26, 2023 meeting to a range of 4.75% to 5.00%. At its meeting on November 7, 2024, the FOMC decided to lower the target range for the federal funds rate to a range of 4.50% to 4.75% and then again at its meeting on December 18, 2024 to a range of 4.25% to 4.50%. At its most recent meeting on July 30, 2025, the FOMC decided to maintain the target range for the federal funds rate at the range established following its December 18, 2024 meeting and indicated, in considering the extent and timing of additional adjustments to the target range for the federal funds rate, it will carefully assess incoming data, the evolving outlook, and the balance of risks. The FOMC further indicated it is strongly committed to supporting maximum employment and reducing the annual inflation rate to its 2 percent objective.
Current wording
Beginning in March 2022, the Federal Open Market Committee (“FOMC”) voted to increase the federal funds rate multiple times from a range of 0.00% to 0.25% to a range of 5.25% to 5.50% on July 26, 2023, when the FOMC stated that it will continue to assess additional information and its implications for monetary policy. At its meeting on September 18, 2024, the FOMC decided to lower the target range for the federal funds rate by 50 basis points from the range set at its July 26, 2023 meeting to a range of 4.75% to 5.00%. The FOMC decided to lower the target range for the federal funds rate at its meeting on November 7, 2024 to a range of 4.50% to 4.75%, at its meeting on December 18, 2024 to a range of 4.25% to 4.50%, and again at its meeting on September 17, 2025 to a range of 4.00% to 4.25%. At its most recent meeting on October 29, 2025, the FOMC further lowered the target range for the federal funds rate to a range of 3.75% to 4.00% and indicated, in considering additional adjustments to the target range for the federal funds rate, it will carefully assess incoming data, the evolving outlook, and the balance of risks. The FOMC further indicated it is strongly committed to supporting maximum employment and reducing the annual inflation rate to its 2 percent objective.
Previous wording
Inevitably, not all of our interest rate-sensitive assets and liabilities will re-price simultaneously and in equal volume in response to changes in the federal funds rate, and therefore the potential for interest rate exposure exists. Management believes that several factors will affect the actual impact of interest rate changes on our balance sheet and operating results, including, but not limited to, actual changes in interest rates or expectations of future changes, the degree of volatility in the securities markets, inflation rates or expectations of inflation, and the slope of the interest rate yield curve. We attempt to manage interest rate risk by identifying, quantifying, and, where appropriate, hedging our exposure. Approximately 35% of the outstanding principal balance of our loans, gross of outstanding interest rate swaps as described further below, as of June 30, 2025 was indexed to a market rate that is expected to re-price with similar magnitude and direction as the federal funds rate. A portion of these loans have been hedged using interest rate swaps to convert the floating rate interest receipts to a fixed rate. The notional amount of floating rate loans swapped totaled $2.4 billion on June 30, 2025, representing approximately 12.9% of the outstanding principal balance of our loans at that date. For more detail regarding such hedging financial instruments, refer to Note 11, “Derivative Financial Instruments”within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q. Refer to the section titled“Management of Market Risk” within this Item 2 for additional discussion including the estimated change to our net interest income under interest rate risk measurement methodologies that use a variety of hypothetical scenarios assuming immediate and parallel changes in interest rates that may not reflect the manner in which actual yields and costs respond to changes in market interest rates.
Current wording
Inevitably, not all of our interest rate-sensitive assets and liabilities will re-price simultaneously and in equal volume in response to changes in the federal funds rate, and therefore the potential for interest rate exposure exists. Management believes that several factors will affect the actual impact of interest rate changes on our balance sheet and operating results, including, but not limited to, actual changes in interest rates or expectations of future changes, the degree of volatility in the securities markets, inflation rates or expectations of inflation, and the slope of the interest rate yield curve. We attempt to manage interest rate risk by identifying, quantifying, and, where appropriate, hedging our exposure. Approximately 36% of the outstanding principal balance of our loans, gross of outstanding interest rate swaps as described further below, as of September 30, 2025 was indexed to a market rate that is expected to re-price with similar magnitude and direction as the federal funds rate. A portion of these loans have been hedged using interest rate swaps to convert the floating rate interest receipts to a fixed rate. The notional amount of floating rate loans swapped totaled $2.2 billion on September 30, 2025, representing approximately 11.9% of the outstanding principal balance of our loans at that date. For more detail regarding such hedging financial instruments, refer to Note 11, “Derivative Financial Instruments”within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q. Refer to the section titled“Management of Market Risk” within this Item 2 for additional discussion including the estimated change to our net interest income under interest rate risk measurement methodologies that use a variety of hypothetical scenarios assuming immediate and parallel changes in interest rates that may not reflect the manner in which actual yields and costs respond to changes in market interest rates.
Previous wording
(1)The net tax benefit associated with these items is generally determined by assessing whether each item is included or excluded from net taxable income and applying our combined statutory tax rate only to those items included in net taxable income. For discussion regarding the net tax expense recognized for the three and six months ended June 30, 2025, refer to Note 8, “Income Taxes” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q.
Current wording
(1)The net tax benefit associated with these items is generally determined by assessing whether each item is included or excluded from net taxable income and applying our combined statutory tax rate only to those items included in net taxable income. For discussion regarding the net tax (benefit) expense recognized for the three and nine months ended September 30, 2025, refer to Note 8, “Income Taxes” within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q.
Previous wording
Total cash and cash equivalents decreased by $453.4 million, or 45.0%, to $553.5 million at June 30, 2025 from $1.0 billion at December 31, 2024. This decrease was primarily due to an increase in gross loans of $510.7 million and a decrease in total deposits of $98.6 million. For further discussion of the change in deposits and loans, refer to the later“Deposits”and “Loans” sections in this Item 2.
Current wording
Total cash and cash equivalents decreased by $0.6 billion, or 59.2%, to $0.4 billion at September 30, 2025 from $1.0 billion at December 31, 2024. This decrease was primarily due to an increase in gross loans of $0.7 billion and a decrease in total deposits of $0.2 billion. For further discussion of the change in deposits and loans, refer to the later“Loans”and “Deposits” sections in this Item 2.
Previous wording
Our securities portfolio decreased $46.9 million, or 1.1%, to $4.4 billion at June 30, 2025 from $4.4 billion at December 31, 2024. This slight decrease was primarily due the offsetting effect of sales of AFS securities of $1.3 billion, AFS and HTM maturities and principal paydowns of $232.0 million, and purchases of AFS and HTM securities of $1.4 billion.
Current wording
Our securities portfolio decreased $0.1 billion, or 2.6%, to $4.3 billion at September 30, 2025 from $4.4 billion at December 31, 2024. This slight decrease was primarily due the offsetting effect of sales of AFS securities of $1.3 billion, AFS and HTM maturities and principal paydowns of $0.4 billion, and purchases of AFS and HTM securities of $1.4 billion.
Previous wording
A portion of our securities portfolio continues to be tax-exempt. Investments in federally tax-exempt securities totaled $237.2 million at June 30, 2025 compared to $183.1 million at December 31, 2024.
Current wording
A portion of our securities portfolio continues to be tax-exempt. Investments in federally tax-exempt securities totaled $262.6 million at September 30, 2025 compared to $183.1 million at December 31, 2024.
Previous wording
We consider our loan portfolio to be relatively diversified by borrower and industry. Our gross loans increased $0.5 billion, or 2.8%, to $18.6 billion at June 30, 2025 from $18.1 billion at December 31, 2024. The increase was primarily due to continued investment in resources targeted to grow our commercial and industrial loan portfolio and an increase in our commercial real estate investment loans driven by steady growth in our multifamily property type segment.
Current wording
We consider our loan portfolio to be relatively diversified by borrower and industry. Our gross loans increased $0.7 billion, or 4.1%, to $18.8 billion at September 30, 2025 from $18.1 billion at December 31, 2024. The increase was primarily due to continued investment in resources targeted to grow our commercial and industrial loan portfolio and an increase in our commercial real estate investment loans driven by steady growth in our multifamily property type segment.
Previous wording
We believe that our commercial loan portfolio composition is relatively diversified in terms of industry sectors, property types and various lending specialties, and it is concentrated in the New England geographical area, with 80.9% of our commercial loans in Massachusetts and New Hampshire as of June 30, 2025.
Current wording
We believe that our commercial loan portfolio composition is relatively diversified in terms of industry sectors, property types and various lending specialties, and it is concentrated in the New England geographical area, with 80.8% of our commercial loans in Massachusetts and New Hampshire as of September 30, 2025.
Previous wording
Special mention, substandard and doubtful loans totaled 3.6% and 4.9% of total commercial loans outstanding at June 30, 2025 and December 31, 2024, respectively.
Current wording
Special mention, substandard and doubtful loans totaled 3.8% and 4.9% of total commercial loans outstanding at September 30, 2025 and December 31, 2024, respectively.
Previous wording
The delinquency rate of our total loan portfolio decreased to 0.38% at June 30, 2025, compared to 0.62% at December 31, 2024.
Current wording
The delinquency rate of our total loan portfolio decreased to 0.43% at September 30, 2025, compared to 0.62% at December 31, 2024.
Previous wording
NPLs decreased $81.1 million, or 59.7%, to $54.7 million at June 30, 2025 from $135.8 million at December 31, 2024. NPLs as a percentage of total loans decreased to 0.30% at June 30, 2025 from 0.76% at December 31, 2024. The decrease was primarily due to the sales of one non-performing commercial and industrial loan and several non-performing commercial real estate loans during the six months ended June 30, 2025. Also driving this decline is continued efforts to work with borrowers to either exit certain relationships through sales or otherwise alleviate non-performance through regular payoffs.
Current wording
NPLs decreased $66.6 million, or 49.0%, to $69.2 million at September 30, 2025 from $135.8 million at December 31, 2024. NPLs as a percentage of total loans decreased to 0.37% at September 30, 2025 from 0.76% at December 31, 2024. The decrease was primarily due to the sales of certain non-performing commercial and industrial loans and commercial real estate loans during the nine months ended September 30, 2025. Also driving this decline is continued efforts to work with borrowers to either exit certain relationships through sales or otherwise alleviate non-performance through regular payoffs.
Previous wording
The total amount of interest recorded on NPLs during both the six months ended June 30, 2025 and 2024 was not significant. The gross interest income that would have been recorded under the original terms of those loans if they had been performing amounted to $2.8 million and $1.6 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
The total amount of interest recorded on NPLs during both the nine months ended September 30, 2025 and 2024 was not significant. The gross interest income that would have been recorded under the original terms of those loans if they had been performing amounted to $4.1 million and $2.9 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
In the course of resolving NPLs, we may choose to restructure the contractual terms of certain loans. We attempt to work-out alternative payment schedules with the borrowers in order to avoid foreclosure actions. The aggregate amortized cost balance as of June 30, 2025 of loans modified during the three and six months ended June 30, 2025 which were determined to be modifications to borrowers experiencing financial difficulty was $11.0 million and $14.2 million, respectively. The aggregate amortized cost balance as of June 30, 2024 of loans modified during the three and six months ended June 30, 2024 which were determined to be modifications to borrowers experiencing financial difficulty was $22.8 million and $23.7 million, respectively.
Current wording
In the course of resolving NPLs, we may choose to restructure the contractual terms of certain loans. We attempt to work-out alternative payment schedules with the borrowers in order to avoid foreclosure actions. The aggregate amortized cost balance as of September 30, 2025 of loans modified during the three and nine months ended September 30, 2025 which were determined to be modifications to borrowers experiencing financial difficulty was $54.3 million and $65.5 million, respectively. The aggregate amortized cost balance as of September 30, 2024 of loans modified during the three and nine months ended September 30, 2024 which were determined to be modifications to borrowers experiencing financial difficulty was $13.2 million and $33.4 million, respectively.
Previous wording
As of June 30, 2025, there were no loans that had been modified to borrowers experiencing financial difficulty during the during the twelve-month period then ended which had subsequently defaulted during the six months ended June 30, 2025. As of June 30, 2024, there were two loans with an aggregate balance of $0.1 million that had been modified to borrowers experiencing financial difficulty during the twelve-month period then ended which had subsequently defaulted during the six months ended June 30, 2024.
Current wording
As of September 30, 2025, there was one loan with an aggregate balance of less than $0.1 million that had been modified to borrowers experiencing financial difficulty during the during the twelve-month period then ended and which had subsequently defaulted during the nine months ended September 30, 2025. As of September 30, 2024, there were two loans with an aggregate balance of $0.3 million that had been modified to borrowers experiencing financial difficulty during the twelve-month period then ended and which had subsequently defaulted during the nine months ended September 30, 2024.
Previous wording
Purchased credit deteriorated (“PCD”) loans are loans that we acquired that have shown evidence of deterioration of credit quality since origination and, therefore, it was deemed unlikely that all contractually required payments would be collected upon the merger date. We consider factors such as payment history, collateral values and accrual status when determining whether there was evidence of deterioration at the merger date. As of June 30, 2025 and December 31, 2024, the carrying amount of PCD loans was $196.7 million and $331.4 million, respectively.
Current wording
Purchased credit deteriorated (“PCD”) loans are loans that we acquired that have shown evidence of deterioration of credit quality since origination and, therefore, it was deemed unlikely that all contractually required payments would be collected upon the merger date. We consider factors such as payment history, collateral values and accrual status when determining whether there was evidence of deterioration at the merger date. As of September 30, 2025 and December 31, 2024, the carrying amount of PCD loans was $188.7 million and $331.4 million, respectively.
Previous wording
Potential Problem Loans. In the normal course of business, we become aware of possible credit problems in which borrowers exhibit the potential to be unable to comply in the future with the contractual terms of their loans, but which currently do not yet meet the criteria for classification as NPLs. These loans are neither delinquent nor on non-accrual status. Our potential problem loans, or loans with potential weaknesses that were not included in the non-accrual loans or in the loans 90 or more past due categories, decreased by $23.1 million, or 5.6%, to $388.9 million at June 30, 2025 from $412.0 million at December 31, 2024. These loans as a percentage of total loans decreased to 2.1% at June 30, 2025 from 2.3% at December 31, 2024. The decrease in potential problem loans from December 31, 2024 to June 30, 2025 was primarily due to the payoff of a commercial real estate loan during the six months ended June 30, 2025.
Current wording
Potential Problem Loans. In the normal course of business, we become aware of possible credit problems in which borrowers exhibit the potential to be unable to comply in the future with the contractual terms of their loans, but which currently do not yet meet the criteria for classification as NPLs. These loans are neither delinquent nor on non-accrual status. Our potential problem loans, or loans with potential weaknesses that were not included in the non-accrual loans or in the loans 90 or more past due categories, decreased by $0.4 million, or 0.1%, to $411.6 million at September 30, 2025 from $412.0 million at December 31, 2024. These loans as a percentage of total loans decreased to 2.2% at September 30, 2025 from 2.3% at December 31, 2024.
Previous wording
Commercial Real Estate Office Exposure. Our total office-related commercial real estate (“CRE”) loans (which is comprised of loans within our commercial real estate and construction portfolios that are secured by office space, medical office space, mixed-use, and laboratory/life sciences office properties where rental income is primarily from office space) totaled $1.0 billion as of both June 30, 2025 and December 31, 2024. As of June 30, 2025, our office-related CRE loans are primarily concentrated in Massachusetts, where approximately 91.7% of the total recorded investment balance of office-related CRE loans are located, and approximately 20.7% of the total recorded investment balance of office-related CRE loans are located in the City of Boston.
Current wording
Commercial Real Estate Office Exposure. As of September 30, 2025 and December 31, 2024 our total office-related commercial real estate (“CRE”) loans (which is comprised of loans within our commercial real estate and construction portfolios that are secured by office space, medical office space, mixed-use, and laboratory/life sciences office properties where rental income is primarily from office space) totaled $0.9 billion and $1.0 billion, respectively. As of September 30, 2025, our office-related CRE loans are primarily concentrated in Massachusetts, where approximately 91.6% of the total recorded investment balance of office-related CRE loans are located, and approximately 20.6% of the total recorded investment balance of office-related CRE loans are located in the City of Boston.
Previous wording
Given prevailing market conditions such as reduced occupancy as a result of the increase in hybrid and fully remote work arrangements post-COVID and lower commercial real estate valuations, we are carefully monitoring these loans for signs of deterioration in credit quality. Such monitoring includes incremental risk management strategies undertaken by management including monthly internal CRE office exposure portfolio reporting, more frequent portfolio reviews, ongoing monitoring of market conditions, and additional portfolio analysis such as maturity risk analysis and rent rollover risk analysis. As of June 30, 2025, one of these loans, which had an aggregate recorded investment balance of $10.1 million, was on non-accrual status. As of December 31, 2024, twelve of these loans were on non-accrual status and had an aggregate recorded investment balance of $87.0 million.
Current wording
Given prevailing market conditions such as reduced occupancy as a result of the increase in hybrid and fully remote work arrangements post-COVID and lower commercial real estate valuations, we are carefully monitoring these loans for signs of deterioration in credit quality. Such monitoring includes incremental risk management strategies undertaken by management including monthly internal CRE office exposure portfolio reporting, more frequent portfolio reviews, ongoing monitoring of market conditions, and additional portfolio analysis such as maturity risk analysis and rent rollover risk analysis. As of September 30, 2025, two of these loans, which had an aggregate recorded investment balance of $28.4 million, were on non-accrual status. As of December 31, 2024, twelve of these loans were on non-accrual status and had an aggregate recorded investment balance of $87.0 million.
Previous wording
(1)At June 30, 2025, we refined the presentation of CRE office risk segments resulting in the addition of the “laboratory/life science” risk segment. Loans in this risk segment were reported in other risk segments as of December 31, 2024 and were reclassified above for comparative purposes.
Current wording
(1)In the second quarter of 2025, we refined the presentation of CRE office risk segments resulting in the addition of the “laboratory/life science” risk segment. Loans in this risk segment were reported in other risk segments as of December 31, 2024 and were reclassified above for comparative purposes.
Previous wording
The allowance for loan losses increased by $3.2 million, or 1.4%, to $232.1 million, or 1.27% of total loans, at June 30, 2025 from $229.0 million, or 1.29% of total loans at December 31, 2024. The increase in the allowance for loan losses for the six months ended June 30, 2025 was primarily due to an increase in commercial and industrial reserve rates and an increase in commercial loan balances, partially offset by a reduction in specific reserves that was driven by the sales of certain non-performing commercial real estate loans and the sale of a non-performing commercial and industrial loan, which had previously been reserved for on a specific reserve basis.
Current wording
The allowance for loan losses increased by $4.1 million, or 1.8%, to $233.0 million, or 1.26% of total loans, at September 30, 2025 from $229.0 million, or 1.29% of total loans at December 31, 2024. The increase in the allowance for loan losses for the nine months ended September 30, 2025 was primarily due to an increase in commercial and industrial reserve rates and an increase in commercial loan balances, partially offset by a reduction in specific reserves that was driven by the sales of certain non-performing commercial real estate and commercial and industrial loans, which had previously been reserved for on a specific reserve basis.
Previous wording
In the ordinary course of business, we enter into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the reserving method for loans receivable previously described. The reserve for unfunded lending commitments is included in other liabilities in the Consolidated Balance Sheets. Our reserve for unfunded lending commitments remained consistent at $12.9 million at June 30, 2025 compared to $13.1 million at December 31, 2024.
Current wording
In the ordinary course of business, we enter into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the reserving method for loans receivable previously described. The reserve for unfunded lending commitments is included in other liabilities in the Consolidated Balance Sheets. Our reserve for unfunded lending commitments remained consistent at $13.7 million at September 30, 2025 compared to $13.1 million at December 31, 2024.
Previous wording
Non-accrual loans increased $14.9 million, or 37.6%, to $54.7 million at June 30, 2025 from $39.8 million at June 30, 2024, primarily due to loans acquired from Cambridge and which were already on non-accrual or were transferred to non-accrual following the completion of the merger. As of June 30, 2025, the amount of loans on non-accrual which were acquired from Cambridge was $26.5 million. This increase was partially offset by the sales of certain non-performing commercial real estate loans and the sale of a non-performing commercial and industrial loan during the six months ended June 30, 2025. For additional information regarding the credit quality of our loans, see Note 4, “Loans and Allowance for Credit Losses”within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q.
Current wording
Non-accrual loans decreased $55.3 million, or 44.4%, to $69.2 million at September 30, 2025 from $124.5 million at September 30, 2024, primarily due sales of certain non-performing commercial real estate and commercial and industrial loans during the nine months ended September 30, 2025. For additional information regarding the credit quality of our loans, see Note 4, “Loans and Allowance for Credit Losses”within the Notes to the Unaudited Consolidated Financial Statements included in Part I, Item 1 in this Quarterly Report on Form 10-Q.
Previous wording
The balance of our goodwill and core deposit intangible asset was $1.0 billion and $1.1 billion at June 30, 2025 and December 31, 2024, respectively. The decrease in goodwill and other intangible assets at June 30, 2025 from December 31, 2024 was due to regular amortization of our other intangible assets during the six months ended June 30, 2025. We did not record any impairment to our goodwill or other intangible assets during the six months ended June 30, 2025.
Current wording
The balance of our goodwill and core deposit intangible asset was $1.0 billion and $1.1 billion at September 30, 2025 and December 31, 2024, respectively. The decrease in goodwill and other intangible assets at September 30, 2025 from December 31, 2024 was due to regular amortization of our other intangible assets during the nine months ended September 30, 2025. We did not record any impairment to our goodwill or other intangible assets during the nine months ended September 30, 2025.
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Previous report — wording carried elsewhere
•risks related to the Trump administration’s increased focus on widespread implementation of stablecoins and other digital assets;
Previous report — wording carried elsewhere
•Commercial real estate: Loans in this category include mortgage loans and lines of credit on commercial real estate, both investment and owner occupied. Property types financed include office, industrial, multi-family, affordable housing, retail, hotel, and other type properties. As of June 30, 2025 and December 31, 2024, we had total commercial real estate loans of $7.2 billion and $7.0 billion, respectively, representing 39.5% and
Previous report — wording carried elsewhere
1.8%, with strong continued growth in 2026. Use of the upside scenario would have resulted in an incremental decrease in the allowance for loan losses of approximately $8.4 million as of June 30, 2025.
Previous report — wording carried elsewhere
Our periodic evaluation of the appropriate allowance for loan losses considers the risk characteristics of the loan portfolio, current economic conditions, and trends in loan delinquencies and charge-offs.
Previous report — wording carried elsewhere
•Miscellaneous income and fees decreased primarily as a result of non-recurring fee income received during the six months ended June 30, 2024 from the early withdrawal of an omnibus deposit contract described above.
Previous report — wording carried elsewhere
◦Incentives increased $6.2 million primarily due to an increase in the number employees participating in our incentive compensation plans which was primarily the result of our merger with Cambridge.
Previous report — wording carried elsewhere
•Amortization of intangible assets increased primarily as a result of an increase in intangible asset balances subject to amortization resulting from our merger with Cambridge which led to a corresponding increase in amortization expense.