SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

The Company is a regional bank holding company organized under Delaware law and headquartered in Providence, Rhode Island. The Company provides a broad range of retail and commercial banking products and services and wealth management solutions to individuals, small businesses, middle-market companies, large corporations, and institutions. The Company’s retail branch footprint is predominantly in the New England, Mid-Atlantic, and Midwest regions, and its Private Bank footprint includes offices in California, Florida, New York, and Massachusetts. Certain lines of our business also serve national markets.

Basis of Presentation

The Consolidated Financial Statements include the accounts of the Parent Company and its consolidated subsidiaries, including VIEs in which the Company is a primary beneficiary, and are prepared in accordance with GAAP. Investments in VIEs in which the Company does not have the ability to exercise significant influence are not consolidated. All intercompany transactions and balances have been eliminated in consolidation.

During the fourth quarter of 2025, the Company’s Non-Core operating segment no longer met the criteria to be considered a reportable segment and, therefore, it is now reported as part of the Company’s Other non-segment operations. As a result of this change the Company now has two reportable segments: Consumer Banking and Commercial Banking. In addition, certain activities within Other non-segment operations were transferred to the Consumer and Commercial Banking segments due to organizational changes. Prior period results were recast to conform to the new segment presentation. See Note 24 for additional information.

During the fourth quarter of 2025, the Company also modified the presentation of its year-end Consolidated Balance Sheet to include Derivative assets and Derivative liabilities in Other assets and Other liabilities, respectively. Prior period results have been revised to conform to the new presentation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL, fair value measurements, and the evaluation and measurement of goodwill impairment.

Cash and Cash Equivalents

For the purpose of reporting cash flows, cash and cash equivalents have original maturities of three months or less and include Cash and due from banks and Interest-bearing cash and due from banks. The Company had no material restrictions on the use or availability of its cash as of December 31, 2025 or 2024.

Significant Accounting Policies

The following table identifies the Company’s significant accounting policies and the Note and Page where a detailed description of each policy can be found:


	Note	Page
Securities	2	91
Loans and Leases	3	95
Allowance for Credit Losses and FDMs	4	97
Premises, Equipment and Software	5	111
Mortgage Servicing Rights	6	112
Leases	7	114
Goodwill and Intangible Assets	8	115
Variable Interest Entities	9	117
Derivative Instruments	12	123
Employee Benefits	13	126
Treasury Stock	15	129
Employee Share-Based Compensation	16	131
Fair Value Measurement	18	134
Revenue Recognition	19	140
Income Taxes	21	143
Earnings Per Share	22	146
Business Segments	24	148

Accounting Pronouncements Adopted in 2025


Pronouncement	Summary of Guidance	Effects on Financial Statements
Improvements to Income Tax Disclosures Issued December 2023	•Requires a tabular income tax rate reconciliation that includes specific categories and other significant categories, disaggregated by nature, that exceed 5% of income tax expense at the statutory tax rate •Requires disclosure of income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes, and further disaggregated by individual jurisdictions that exceed 5% of total income taxes paid, net of refunds received •Requires disclosure of pre-tax income disaggregated between domestic and foreign, and income tax expense disaggregated by federal, state, and foreign	•The Company adopted the new ASU on January 1, 2025 on a retrospective basis, effective for annual financial statements for the year ended December 31, 2025 •Required disclosures for income taxes are included in Note 21