Eastern Bankshares, Inc.

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 March 31, 2026, and our results of operations for the three months ended March 31, 2026 and 2025. 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 2025 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 June 30, 2026, and our results of operations for the three and six months ended June 30, 2026 and 2025. 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 2025 Form 10-K.

Previous wording

•operational risks including, but not limited to, cybersecurity incidents, fraud, new technological integration including AI, natural disasters and future pandemics, including COVID-19;

Current wording

•operational risks including, but not limited to, cybersecurity incidents, fraud, new technological integration including AI, natural disasters and future pandemics or other public health emergencies;

Previous wording

•changes in regulation, regulatory policy, legislation, accounting standards and practices, and fiscal monetary policy, particularly in light of the shift in presidential administrations and the potential for related shifts in agency policy and leadership;

Current wording

•changes in regulation, regulatory policy, legislation, accounting standards and practices, and fiscal and monetary policy, particularly in light of the shift in presidential administrations and the potential for related shifts in agency policy and leadership;

Previous wording

•risks related to the implementation of acquisitions, dispositions, and restructurings, including our 2025 merger with HarborOne Bancorp and HarborOne Bank, which is further described in Part I, Item 1 of our 2025 Annual Report on Form 10-K under “Recent Acquisitions – Bank Acquisitions”, 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;

Current wording

•risks related to the implementation of acquisitions, dispositions, and restructurings, including our 2025 merger with HarborOne Bancorp and HarborOne Bank, which is further described in Part I, Item 1 of our 2025 Annual Report on Form 10-K under “Recent Acquisitions – Bank Acquisitions”, including that revenue and expense synergies or other expected benefits may not materialize or may not be realized 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 may not materialize or may be more costly to achieve than anticipated and that the combined businesses may not perform as expected;

Current wording

•the risk that the integration of our completed or pending acquisitions may be more difficult, time-consuming or costly than anticipated and that the anticipated benefit may not be fully realized;

Previous wording

There have been no other material changes in critical accounting policies during the three months ended March 31, 2026.

Current wording

There have been no other material changes in critical accounting policies during the three and six months ended June 30, 2026.

Previous wording

We are a bank holding company, and our principal subsidiary, Eastern Bank, is a Massachusetts-chartered bank that has served the banking needs of our customers since 1818. Our business philosophy is to operate as a diversified financial services enterprise providing a broad array of banking and other financial services primarily to retail, commercial and small business customers. We had total assets of $30.6 billion at both March 31, 2026 and December 31, 2025. We are subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks, the New Hampshire Banking Department, the FDIC, the Federal Reserve Board and the Consumer Financial Protection Bureau. Our business consists of a full range of banking, lending (commercial, residential and consumer), savings and small business offerings, including our wealth management and trust operations that we conduct under our “Cambridge Trust Wealth Management, a division of Eastern Bank” brand name (“Cambridge Trust Wealth Management division”).

Current wording

We are a bank holding company, and our principal subsidiary, Eastern Bank, is a Massachusetts-chartered bank that has served the banking needs of our customers since 1818. Our business philosophy is to operate as a diversified financial services enterprise providing a broad array of banking and other financial services primarily to retail, commercial and small business customers. We had total assets of $31.1 billion and $30.6 billion at June 30, 2026 and December 31, 2025, respectively. We are subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks, the New Hampshire Banking Department, the FDIC, the Federal Reserve Board and the Consumer Financial Protection Bureau. Our business consists of a full range of banking, lending (commercial, residential and consumer), savings and small business offerings, including our wealth management and trust operations that we conduct under our “Cambridge Trust Wealth Management, a division of Eastern Bank” brand name (“Cambridge Trust Wealth Management division”).

Previous wording

Net income for the three months ended March 31, 2026 computed in accordance with GAAP was $65.3 million, as compared to a net loss of $217.7 million for the three months ended March 31, 2025. The increase in net income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily due to losses on sales of available for sale securities during the three months ended March 31, 2025, which did not recur during the three months ended March 31, 2026. Refer to the later sections titled“Results of Operations”within this Item 2 for additional discussion.

Current wording

Net income for the three and six months ended June 30, 2026, respectively, computed in accordance with GAAP was $105.2 million and $170.5 million, respectively, as compared to net income and net loss of $100.2 million and $117.4 million, respectively, for the three and six months ended June 30, 2025, respectively. The increase in net income for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily due to increased net interest income and noninterest income during the three months ended June 30, 2026. The increase from a net loss for the six months ended June 30, 2025 to net income for the six months ended June 30, 2026 was primarily due to losses on sales of securities recorded during the six months ended June 30, 2025, of which there were none during the six months ended June 30, 2026. Refer to the later sections titled“Results of Operations”within this Item 2 for additional discussion

Previous wording

Net income for the three months ended March 31, 2026, and net loss for the three months ended March 31, 2025 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 months ended March 31, 2026 was $88.6 million, compared to $67.5 million for the three months ended March 31, 2025, representing an increase of $21.1 million, or 31.3%. This increase was primarily due to higher net interest income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, partially offset by higher noninterest expense on an operating basis for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. 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.

Current wording

Net income for the three and six months ended June 30, 2026, respectively, and net income and net loss for the three and six months ended June 30, 2025, 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 six months ended June 30, 2026 was $106.5 million and $195.2 million, respectively, compared to operating net income for the three and six months ended June 30, 2025 of $81.7 million and $149.2 million, respectively, representing increases of 30.4% and 30.8%, respectively. These increases were primarily due to higher net interest income for both the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, partially offset by higher noninterest expense on an operating basis for both the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025. 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 both March 31, 2026 and December 31, 2025, we had total commercial and industrial loans of $4.3 billion, representing 19.0% and 18.6%, respectively, of our total loans as of each period end. 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 June 30, 2026 and December 31, 2025, we had total commercial and industrial loans of $4.7 billion and $4.3 billion, respectively, representing 20.1% and 18.6%, 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

•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 both March 31, 2026 and December 31, 2025, we had total commercial real estate loans of $9.4 billion, representing 40.9% and 40.8%, respectively, of our total loans as of each period end. As of both March 31, 2026 and December 31, 2025, owner occupied loans totaled $1.2 billion, representing 12.8% and 12.9%, respectively, of our commercial real estate loans as of each period end. 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 June 30, 2026 and December 31, 2025, we had total commercial real estate loans of $9.3 billion and $9.4 billion, respectively, representing 39.9% and 40.8%, respectively, of our total loans as of each period end. As of both June 30, 2026 and December 31, 2025, owner occupied loans totaled $1.2 billion, representing 12.9% 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 March 31, 2026 and December 31, 2025, we had total commercial construction loans of $502.0 million and $563.5 million, respectively, representing 2.2% and 2.4%, 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 June 30, 2026 and December 31, 2025, we had total commercial construction loans of $543.6 million and $563.5 million, respectively, representing 2.3% and 2.4%, 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 March 31, 2026 and December 31, 2025, we had total business banking loans of $1.5 billion and $1.6 billion, respectively, representing 6.7% and 6.9%, respectively, of our total loans for each period end. In this category, commercial and industrial loans and commercial real estate loans totaled $316.9 million and $1.2 billion, respectively, as of March 31, 2026, and $307.6 million and $1.3 billion, respectively, as of December 31, 2025.

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 June 30, 2026 and December 31, 2025, we had total business banking loans of $1.6 billion, representing 6.7% and 6.9%, respectively, of our total loans for each period end. In this category, commercial and industrial loans and commercial real estate loans totaled $326.0 million and $1.2 billion, respectively, as of June 30, 2026, and $307.6 million and $1.3 billion, respectively, as of December 31, 2025.

Previous wording

•Residential real estate: Loans in this category consist of mortgage loans on residential real estate. As of both March 31, 2026 and December 31, 2025, we had total residential real estate loans of $5.2 billion, representing 22.6% and 22.7%, respectively, of our total loans as of each period end. 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. Following our merger with HarborOne, which included the acquisition of HarborOne’s mortgage company, a portion of our loans sold on the secondary markets are sold with servicing retained. During the three months ended March 31, 2026, residential real estate mortgage loan originations for secondary market sale and sales on secondary market were $101.6 million and $98.8 million, respectively. Comparatively, during the three months ended March 31, 2025, residential real estate mortgage loan originations for secondary market sale and sales on secondary market were $13.2 million and $12.8 million, respectively.

Current wording

•Residential real estate: Loans in this category consist of mortgage loans on residential real estate. As of both June 30, 2026 and December 31, 2025, we had total residential real estate loans of $5.2 billion, representing 22.2% and 22.7%, 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. Following our merger with HarborOne, which included the acquisition of HarborOne’s mortgage company, a portion of our loans sold on the secondary markets are sold with servicing retained. During the three and six months ended June 30, 2026, residential real estate mortgage loan originations for secondary market sale were $103.0 million and $204.6 million, respectively, compared to $1.7 million and $14.9 million during the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2026, residential real estate mortgage loan sales on secondary market were $104.3 million and $203.1 million, respectively, compared to $11.0 million and $23.8 million during the three and six months ended June 30, 2025, respectively.

Previous wording

•Consumer home equity: Loans in this category consist of home equity lines of credit and home equity loans. As of both March 31, 2026 and December 31, 2025, we had total consumer home equity loans of $1.8 billion, representing 7.7% and 7.6%, respectively, of our total loans as of each period end. 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 both June 30, 2026 and December 31, 2025, we had total consumer home equity loans of $1.8 billion, representing 7.8% and 7.6%, 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 March 31, 2026 and December 31, 2025, we had total other consumer loans of $215.5 million and $232.0 million, respectively, representing 0.9% and 1.0%, 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 June 30, 2026 and December 31, 2025, we had total other consumer loans of $218.0 million and $232.0 million, respectively, representing 0.9% and 1.0%, 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

•We offer a variety of deposit, treasury management, electronic banking, interest rate protection and foreign exchange products to our customers. In addition, we offer cash management services to our corporate and municipal clients. Deposit products include checking products, both interest-bearing and noninterest-bearing, as well as money market deposits, savings deposits and certificates of deposit. Our treasury management products include a variety of cash management and payment products. Our interest rate protection and foreign exchange products include interest rate swaps and currency related transactions.

Current wording

•We offer a variety of deposit, treasury management, electronic banking, interest rate protection and foreign exchange products to our customers. In addition, we offer cash management services to our corporate and municipal clients. Deposit products include checking products, both interest-bearing and noninterest-bearing, as well as money market deposits, savings deposits and certificates of deposits. Our treasury management products include a variety of cash management and payment products. Our interest rate protection and foreign exchange products include interest rate swaps and currency related transactions.

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 March 31, 2026 and December 31, 2025, we held $10.3 billion and $10.1 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 months ended March 31, 2026, we had noninterest income of $18.3 million from providing these services compared to $16.4 million for the three months ended March 31, 2025.

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 June 30, 2026 and December 31, 2025, we held $11.3 billion and $10.1 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, 2026, we had noninterest income of $19.7 million and $38.0 million, respectively, from providing these services compared to $17.3 million and $33.7 million for the three and six months ended June 30, 2025, respectively.

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%. The FOMC further decided to lower the target range for the federal funds rate at each of its meetings held on November 7, 2024, December 18, 2024, September 17, 2025, October 29, 2025, December 10, 2025, and January 28, 2026 with the most recent change reducing the target range for the federal funds rate to a range of 3.50% to 3.75%. At its most recent meeting on April 29, 2026, the FOMC decided to maintain the target range for the federal funds rate at the range set at its January 28, 2026 meeting 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.

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 further decided to lower the target range for the federal funds rate at each of its meetings held on November 7, 2024, December 18, 2024, September 17, 2025, October 29, 2025, December 10, 2025, and January 28, 2026 with the most recent change reducing the target range for the federal funds rate to a range of 3.50% to 3.75%. At its most recent meeting on July 29, 2026, the FOMC decided to maintain the target range for the federal funds rate at the range set at its January 28, 2026 meeting and indicated, that they are continuing their policy of maintaining ample reserves in the banking system.. The FOMC indicated economic activity is expanding at a solid pace despite elevated uncertainty that is owed, in part, to the conflict in the Middle East. Productivity growth and capital investment were strong while job gains have kept pace with the workforce, and the unemployment rate has changed little. The FOMC reiterated its commitment to achieving inflation of 2 percent and indicated inflation still remains elevated, in part reflecting supply shocks that have driven price increases in certain sectors.

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 March 31, 2026 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 $1.6 billion on March 31, 2026, representing approximately 7.0% 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

36% of the outstanding principal balance of our loans, gross of outstanding interest rate swaps as described further below, as of June 30, 2026 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 $1.3 billion on June 30, 2026, representing approximately 5.6% 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

There are items in our financial statements that impact our results but which we believe are unrelated to our core business. Accordingly, we present operating net income, noninterest income on an operating basis, noninterest expense on an operating basis, total operating revenue, operating earnings per share, tangible net income to average tangible shareholders’ equity, tangible operating net income to average tangible shareholders’ equity, tangible book value per share, and the operating efficiency ratio, each of which excludes the impact of such items because we believe such exclusion can provide greater visibility into our core business and underlying trends. Such items that we do not consider to be core to our business include (i) gains and losses on sales of securities available for sale, net, (ii) gains and losses on the sale of other equity investments, (iii) gains and losses on the sale of other assets, (iv) impairment charges on tax credit investments and associated tax credit benefits, (v) OREO gains and losses, (vi) merger and acquisition expenses, (vii) non-recurring expenses associated with a staffing reorganization, and (viii) certain discrete tax items. There were no expenses indirectly associated with gains and losses on the sale of other equity investments, OREO gains or losses, or impairment charges on tax credit investments and associated tax credit benefits during the periods presented in this Quarterly Report on Form 10-Q.

Current wording

There are items in our financial statements that impact our results but which we believe are unrelated to our core business. Accordingly, we present operating net income, noninterest income on an operating basis, noninterest expense on an operating basis, total operating revenue, operating earnings per share, tangible net income to average tangible shareholders’ equity, tangible operating net income to average tangible shareholders’ equity, tangible book value per share, and the operating efficiency ratio, each of which excludes the impact of such items because we believe such exclusion can provide greater visibility into our core business and underlying trends. Such items that we do not consider to be core to our business include (i) gains and losses on sales of securities available for sale, net, (ii) gains and losses on the sale of other equity investments, (iii) gains and losses on the sale of other assets, (iv) impairment charges on tax credit investments and associated tax credit benefits, (v) OREO gains and losses, (vi) merger and acquisition expenses, (vii) nonrecurring expenses associated with a staffing reorganization, and (viii) certain discrete tax items. There were no expenses indirectly associated with OREO gains or losses, or impairment charges on tax credit investments and associated tax credit benefits during the periods presented in this Quarterly Report on Form 10-Q.

Previous wording

(3)The tax effect of amortization of intangible assets was calculated for the three months ended March 31, 2026 and 2025 using our combined statutory tax rate of 27.6% and 27.7%, respectively.

Current wording

(3)The tax effect of amortization of intangible assets was calculated for the three and six months ended June 30, 2026 and 2025 using our combined statutory tax rate of 27.6% and 27.7%, respectively.

Previous wording

Total cash and cash equivalents increased by $14.7 million, or 4.6%, to $331.6 million at March 31, 2026 from $316.9 million at December 31, 2025. This increase was primarily due to an increase in FHLB advances of $502.3 million and AFS and HTM maturities and principal paydowns of $118.6 million, partially offset by a decrease in total deposits of $365.5 million and a decrease in gross loans of $186.5 million. For further discussion of the change in deposits and loans, refer to the later“Loans”and “Deposits”sections in this Item 2.

Current wording

Total cash and cash equivalents decreased by $60.7 million, or 19.2%, to $256.2 million at June 30, 2026 from $316.9 million at December 31, 2025. This consistency in the balance of our cash and cash equivalents at June 30, 2026, compared to December 31, 2025, was due to the offsetting effect of security purchases, loan originations, a net increase in total deposits and borrowings, and AFS and HTM maturities and principal paydowns. Refer to the Statement of Cash Flows for additional information. For further discussion of the change in deposits and loans, refer to the later“Loans”and “Deposits” sections in this Item 2.

Previous wording

U.S. government securities: As of both March 31, 2026 and December 31, 2025, our U.S. government securities consisted of U.S. Treasury securities. We maintain these investments, to the extent appropriate, for liquidity purposes, at zero risk weighting for capital purposes, and as collateral for interest rate derivative positions.

Current wording

U.S. government securities: As of June 30, 2026 and December 31, 2025 our U.S. government securities consisted of U.S. Treasury securities. We maintain these investments, to the extent appropriate, for liquidity purposes, at zero risk weighting for capital purposes, and as collateral for interest rate derivative positions.

Previous wording

State and municipal securities: We invest in fixed rate investment grade bonds issued primarily by municipalities in our local communities within Massachusetts and by the Commonwealth of Massachusetts. The market value of these securities may be affected by call options, long dated maturities, general market liquidity and credit factors.

Current wording

State and municipal securities: We invest in fixed rate investment grade bonds issued by select states and municipalities for portfolio diversification and beneficial tax treatment. The market value of these securities may be affected by call options, long dated maturities, general market liquidity and credit factors.

Previous wording

Our securities portfolio increased $147.7 million, or 3.3%, to $4.6 billion at March 31, 2026 from $4.4 billion at December 31, 2025. This increase was primarily due to purchases of AFS and HTM securities of $288.0 million partially offset by AFS and HTM maturities and principal paydowns of $118.6 million.

Current wording

Our securities portfolio increased $0.4 billion, or 8.7%, to $4.8 billion at June 30, 2026 from $4.4 billion at December 31, 2025. This increase was primarily due to purchases of AFS and HTM securities of $0.6 billion, partially offset by by AFS and HTM maturities and principal paydowns of $0.2 billion.

Previous wording

A portion of our securities portfolio continues to be tax-exempt. Investments in federally tax-exempt securities totaled $454.9 million at March 31, 2026 compared to $348.8 million at December 31, 2025.

Current wording

A portion of our securities portfolio continues to be tax-exempt. Investments in federally tax-exempt securities totaled $513.5 million at June 30, 2026 compared to $348.8 million at December 31, 2025.

Previous wording

We consider our loan portfolio to be relatively diversified by borrower and industry. Our gross loans decreased $186.5 million, or 0.8%, to $23.4 billion at March 31, 2026 from $23.6 billion at December 31, 2025. The decrease was primarily due to paydowns of non-performing loans and net loan payoffs in the commercial real estate, commercial construction and business banking portfolios, partially offset by net originations of commercial and industrial loans.

Current wording

We consider our loan portfolio to be relatively diversified by borrower and industry. Our gross loans increased $0.1 billion, or 0.6%, to $23.7 billion at June 30, 2026 from $23.6 billion at December 31, 2025. The increase was primarily due to continued investment in resources targeted to grow our commercial and industrial loan portfolio and ongoing promotion of our consumer home equity products, partially offset by net paydowns in our other portfolios.

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 79.3% of our commercial loans in Massachusetts, New Hampshire, or Rhode Island as of March 31, 2026.

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 85.5% of our commercial loans in Massachusetts, New Hampshire, or Rhode Island as of June 30, 2026.

Previous wording

Special mention, substandard and doubtful loans totaled 5.1% and 5.0% of total commercial loans outstanding at March 31, 2026 and December 31, 2025, respectively.

Current wording

Special mention, substandard and doubtful loans totaled 4.9% and 5.0% of total commercial loans outstanding at June 30, 2026 and December 31, 2025, respectively.

Previous wording

The delinquency rate of our total loan portfolio increased to 0.60% at March 31, 2026, compared to 0.56% at December 31, 2025.

Current wording

The delinquency rate of our total loan portfolio decreased to 0.51% at June 30, 2026, compared to 0.56% at December 31, 2025.

Previous wording

NPLs decreased $34.7 million, or 20.1%, to $137.7 million at March 31, 2026 from $172.3 million at December 31, 2025. NPLs as a percentage of total loans decreased to 0.60% at March 31, 2026 from 0.75% at December 31, 2025. The decrease was primarily due to commercial loan payoffs during the three months ended March 31, 2026. Also driving this decline is continued efforts to work with borrowers to either exit certain relationships through sale of the loan or to otherwise alleviate non-performance through regular payoffs.

Current wording

NPLs decreased $63.0 million, or 36.5%, to $109.4 million at June 30, 2026 from $172.3 million at December 31, 2025. NPLs as a percentage of total loans decreased to 0.47% at June 30, 2026 from 0.75% at December 31, 2025. The decrease was primarily due to commercial loan payoffs during the six months ended June 30, 2026. 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 three months ended March 31, 2026 and 2025 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 $2.1 million and $2.3 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

The total amount of interest recorded on NPLs during both the six months ended June 30, 2026 and 2025 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 $3.6 million and $2.8 million for the six months ended June 30, 2026 and 2025, 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 March 31, 2026 of loans modified during the three months ended March 31, 2026 which were determined to be modifications to borrowers experiencing financial difficulty was $34.0 million. The aggregate amortized cost balance as of March 31, 2025 of loans modified during the three months ended March 31, 2025 which were determined to be modifications to borrowers experiencing financial difficulty was $4.4 million.

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 June 30, 2026 of loans modified during the three and six months ended June 30, 2026 which were determined to be modifications to borrowers experiencing financial difficulty was $16.5 million and $36.3 million, respectively. 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.

Previous wording

As of March 31, 2026 and 2025, there were no loans that had been modified to a borrower experiencing financial difficulty during the twelve-month period then ended and which had subsequently defaulted during the three months ended March 31, 2026 and 2025, respectively.

Current wording

As of June 30, 2026 there was one loan with a balance of $0.2 million that had been modified to a borrower experiencing financial difficulty during the during the twelve-month period then ended and which had subsequently defaulted during the six months ended June 30, 2026. 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.

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 March 31, 2026 and December 31, 2025, the carrying amount of PCD loans was $619.8 million and $659.7 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 June 30, 2026 and December 31, 2025, the carrying amount of PCD loans was $548.1 million and $659.7 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, increased by $88.9 million, or 21.5%, to $502.6 million at March 31, 2026 from $413.7 million at December 31, 2025. These loans as a percentage of total loans increased to 2.2% at March 31, 2026 from 1.8% at December 31, 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, increased by $117.6 million, or 28.4%, to $531.3 million at June 30, 2026 from $413.7 million at December 31, 2025. These loans as a percentage of total loans increased to 2.3% at June 30, 2026 from 1.8% at December 31, 2025.

Previous wording

Commercial Real Estate Office Exposure. As of March 31, 2026 and December 31, 2025 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 and $1.3 billion, respectively. As of March 31, 2026, our office-related CRE loans are primarily concentrated in Massachusetts, where approximately 86.4% of the total recorded investment balance of office-related CRE loans are located, and approximately 14.3% 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 June 30, 2026 and December 31, 2025 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 $1.2 billion and $1.3 billion, respectively. As of June 30, 2026, our office-related CRE loans are primarily concentrated in Massachusetts, where approximately 87.1% of the total recorded investment balance of office-related CRE loans are located, and approximately 15.4% 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 March 31, 2026, eight of these loans, which had an aggregate recorded investment balance of $10.8 million, were on non-accrual status. As of December 31, 2025, four of these loans were on non-accrual status and had an aggregate recorded investment balance of $36.7 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 June 30, 2026, eight of these loans, which had an aggregate recorded investment balance of $7.2 million, were on non-accrual status. As of December 31, 2025, four of these loans were on non-accrual status and had an aggregate recorded investment balance of $36.7 million.

Previous wording

The allowance for loan losses decreased by $3.9 million, or 1.2%, to $327.9 million, or 1.43% of total loans, at March 31, 2026 from $331.8 million, or 1.44% of total loans at December 31, 2025. The decrease in the allowance for loan losses for the three months ended March 31, 2026, was primarily due to charge-offs of loans that were previously reserved for on a specific reserve basis.

Current wording

The allowance for loan losses decreased by $6.5 million, or 2.0%, to $325.4 million, or 1.40% of total loans, at June 30, 2026 from $331.8 million, or 1.44% of total loans at December 31, 2025. The decrease in the allowance for loan losses for the six months ended June 30, 2026 was primarily due to charge-offs of loans that were previously reserved for on a specific reserve basis.