NB Bancorp, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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, 2026 · Filed Nov 4, 2026
NBBK$22.09+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001104659-26-092573
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001104659-26-122645
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 87 previous paragraphs and 86 current paragraphs.
35 unchanged; 44 reworded; 7 added; 7 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 74 previous and 77 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 (7)
Current report
Collateral dependent loans increased $126.9 million, or 301.8%, to $168.9 million as of September 30, 2026, from $42.0 million as of December 31, 2025, primarily attributable to one commercial and industrial relationship totaling $71.5 million and one non-owner occupied commercial real estate relationship totaling $38.1 million. Both relationships are actively being managed through workout strategies. Based on management’s evaluation as of September 30, 2026, only one commercial and industrial PCD loan required a specific reserve of $1.6 million, with no additional losses expected on the three relationships.
Current report
Non-Public Investments. Non-public investments increased $15.4 million, or 45.7%, to $49.2 million as of September 30, 2026 compared to $33.7 million as of December 31, 2025, primarily as a result of the Company’s continued investment in income tax credit entities.
Current report
Deferred Income Tax Assets. Deferred income tax assets increased $13.5 million, or 27.7%, to $62.4 million as of September 30, 2026 compared to $48.8 million as of December 31, 2025, primarily as a result of the purchase of low-income housing tax credits during the three months ended September 30, 2026.
Current report
Accrued Expenses and Other Liabilities. Accrued expenses and other liabilities increased $56.7 million, or 80.2%, to $127.4 million as of September 30, 2026 from $70.7 million as of December 31, 2025, primarily as a result of the Company calling $21.4 million in collateral on our derivatives and a $16.5 million increase in our derivative liabilities driven by market rate changes, and $8.5 million increase in accrued federal taxes, a $6.3 million increase in lease liabilities as a result of the opening of three new branches and a $4.8 million increase in deferred solar investments for two new solar tax credit investment commitments.
Current report
Interest expense on FHLB and FRB borrowings decreased $420,000, or 18.8%, to $1.8 million for the quarter ended September 30, 2026 from $2.2 million for the quarter ended September 30, 2025, primarily from a decrease in the average balance of FHLB borrowings of $121.2 million, or 60.6%, to $78.7 million during the quarter ended September 30, 2026 from $199.9 million for the quarter ended September 30, 2025, partially offset by an increase in the average balance of FRB borrowings of $100.5 million, or 100%, to $100.5 million during the quarter ended September 30, 2026 from $0 during the quarter ended September 30, 2025.
Current report
The material one-time charges for the nine months ended September 30, 2026 were:
Current report
The material one-time charges for the nine months ended September 30, 2025 were:
Removed paragraphs (7)
Previous report
Collateral dependent loans increased $42.0 million, or 99.9%, to $84.1 million as of June 30, 2026, from $42.0 million as of December 31, 2025, primarily driven by one CRE relationship that is well collateralized, paying as expected and with no required specific reserve.
Previous report
Interest Expense. Total interest expense increased $9.8 million, or 29.9%, to $42.6 million for the quarter ended June 30, 2026 from $32.8 million for the quarter ended June 30, 2025.
Previous report
Interest expense on borrowings increased $810,000, or 70.4%, to $2.0 million for the quarter ended June 30, 2026 from $1.2 million for the quarter ended June 30, 2025, primarily from the increase in the average balance of FHLB borrowings of $105.6 million, or 102.1%, to $209.0 million during the quarter ended June 30, 2026 from $103.4 million for the quarter ended June 30, 2025.
Previous report
The material one-time charges for the six months ended June 30, 2026 were:
Previous report
The material one-time charges for the six months ended June 30, 2025 were:
Previous report
General and administrative expenses increased $4.8 million, or 136.9%, primarily driven by our acquisition of Provident resulting in $1.7 million in additional core deposit intangible amortization expense. Also contributing to the increase in general and administrative expenses were $672,000 in increased tax credit amortization expense, $299,000 in increased trailing Provident acquisition expenses and $224,000 in increased education and training expenses, $148,000 in increased travel expenses, $165,000 in increased utilities expenses, $124,000 in armored courier expenses, $124,000 in loan workout expenses and $123,000 in increased bank supplies expense, all of which were driven by our acquisition of Provident. Data processing expenses increased $4.1 million, or 77.6%, during the six months ended June 30, 2026, primarily the result of our significant investment in technology and systems, as well as two full quarters of increased transactional volume from the Provident acquisition.
Previous report
Occupancy and equipment expenses increased $2.8 million, or 54.5%, primarily driven by our acquisition of Provident, as well as, the opening of two new branches. Marketing and charitable contribution expenses increased $1.9 million, or 62.8%, primarily driven by our continued community investment, our acquisition of Provident and the opening of two new branches. FDIC and state assessment expenses increased $1.0 million, or 61.3%, primarily driven by our acquisition of Provident driving up our average balances and related assessments.
Reworded paragraphs (44)
Previous wording
Management’s discussion and analysis of the financial condition and results of operations at and for the three and six months ended June 30, 2026 and 2025 is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto, appearing on Part I, Item 1 of this quarterly report on Form 10-Q.
Current wording
Management’s discussion and analysis of the financial condition and results of operations at and for the three and nine months ended September 30, 2026 and 2025 is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto, appearing on Part I, Item 1 of this quarterly report on Form 10-Q.
Previous wording
Total Assets. Total assets increased $440.5 million, or 6.3%, to $7.45 billion as of June 30, 2026 from $7.01 billion as of December 31, 2025. The increase was primarily driven by increases in net loans and non-public investments, offset partially by decreases in cash and cash equivalents and BOLI.
Current wording
Total Assets. Total assets increased $677.6 million, or 9.7%, to $7.68 billion as of September 30, 2026 from $7.01 billion as of December 31, 2025. The increase was primarily driven by increases in net loans, non-public investments and deferred tax assets, offset partially by decreases in cash and cash equivalents.
Previous wording
Cash and Cash Equivalents. Cash and cash equivalents decreased $7.7 million, or 1.9%, to $400.2 million as of June 30, 2026 from $407.9 million as of December 31, 2025. The decrease in cash and cash equivalents was primarily a result of the repurchase of 2,207,236 shares during the six months ended June 30, 2026.
Current wording
Cash and Cash Equivalents. Cash and cash equivalents decreased $141.8 million, or 34.8%, to $266.1 million as of September 30, 2026 from $407.9 million as of December 31, 2025. The decrease in cash and cash equivalents was primarily a result of gross loan growth of $779.7 million outpacing deposit growth of $667.6 million and the repurchase of 2,207,236 shares during the nine months ended September 30, 2026.
Previous wording
Available-for-Sale Securities. Available-for-sale securities increased $3.7 million, or 1.4%, to $272.6 million as of June 30, 2026 from $269.0 million as of December 31, 2025, primarily as a result of purchases of U.S. Treasuries, Government Agency debt securities and mortgage-backed securities.
Current wording
Available-for-Sale Securities. Available-for-sale securities increased $10.6 million, or 3.9%, to $279.5 million as of September 30, 2026 from $269.0 million as of December 31, 2025, primarily as a result of purchases of mortgage-backed securities.
Previous wording
Loans. Net loans increased $442.1 million, or 7.5%, to $6.34 billion as of June 30, 2026 from $5.90 billion as of December 31, 2025. The increase resulted primarily from increases in: commercial real estate loans, which increased $197.5 million, or 10.3%; commercial and industrial loans, which increased $140.1 million, or 13.9%; residential real estate loans, including home equity loans, of $56.5 million, or 4.3%; multi-family loans of $50.2 million, or 9.7%; construction and land development loans of $35.1 million, or 4.8%; and consumer loans of $23.3 million, or 11.4%, partially offset by a decrease in mortgage warehouse loans of $63.3 million, or 22.5%. The increase in our loan portfolio reflects our strategy to prudently grow the balance sheet by continuing to diversify into higher-yielding loans to improve net margins and manage interest rate risk.
Current wording
Loans. Net loans increased $788.8 million, or 13.4%, to $6.69 billion as of September 30, 2026 from $5.90 billion as of December 31, 2025. The increase resulted primarily from increases in: commercial real estate loans, which increased $380.7 million, or 19.8%; commercial and industrial loans, which increased $129.7 million, or 12.9%; construction and land development loans, which increased $115.9 million, or 15.9%; residential real estate loans, including home equity loans, which increased $100.0 million, or 7.5%; multi-family loans, which increased $67.4 million, or 13.0%; and consumer loans, which increased $32.3 million, or 15.9%, partially offset by a decrease in mortgage warehouse loans of $42.9 million, or 15.3%. The increase in our loan portfolio reflects our strategy to prudently grow the balance sheet by continuing to diversify into higher-yielding loans to improve net margins while managing interest rate risk.
Previous wording
Loans to borrowers in the cannabis loan industry increased $137.6 million, or 34.0%, to $542.4 million as of June 30, 2026 from $404.8 million as of December 31, 2025. Of those totals, $374.2 million and $228.8 million at June 30, 2026 and December 31, 2025, respectively, were direct loans to cannabis companies and were collateralized by real estate
Current wording
Loans to borrowers in the cannabis industry increased $171.5 million, or 42.4%, to $576.3 million as of September 30, 2026 from $404.8 million as of December 31, 2025. Of those totals, $401.3 million and $228.8 million at September 30, 2026 and December 31, 2025, respectively, were direct loans to cannabis companies and were collateralized by real estate.
Previous wording
Deposits. Deposits increased $466.3 million, or 8.0%, to $6.32 billion as of June 30, 2026 from $5.85 billion as of December 31, 2025. Core deposits (which we define as all deposits including certificates of deposit, other than brokered deposits) increased $282.1 million, or 5.3%, to $5.60 billion as of June 30, 2026 from $5.32 billion as of December 31, 2025. The increase in deposits was the result of growth in customer deposits, which primarily included the following: noninterest-bearing demand deposits, which increased $125.4 million, or 15.2%; NOW accounts, which increased $92.1 million, or 13.9%; and customer certificates of deposit, which increased $59.0 million, or 4.9%. Brokered deposits increased $184.2 million, or 34.4%, to $719.9 million as of June 30, 2026 from $535.7 million as of December 31, 2025.
Current wording
Deposits. Deposits increased $667.6 million, or 11.4%, to $6.52 billion as of September 30, 2026 from $5.85 billion as of December 31, 2025. Core deposits (which we define as all deposits including certificates of deposit, other than brokered deposits) increased $510.6 million, or 9.6%, to $5.83 billion as of September 30, 2026 from $5.32 billion as of December 31, 2025. The increase in deposits was the result of growth in customer deposits, which primarily included the following: noninterest-bearing demand deposits, which increased $170.2 million, or 20.6%; money market accounts, which increased $126.8 million, or 7.7%; NOW accounts, which increased $107.2 million, or 16.2%; and customer certificates of deposit, which increased $94.3 million, or 4.8%. Brokered deposits increased $156.9 million, or 29.3%, to $692.6 million as of September 30, 2026 from $535.7 million as of December 31, 2025.
Previous wording
Deposits from customers in the cannabis industry increased $69.1 million, or 15.2%, to $522.1 million as of June 30, 2026 from $453.0 million as of December 31, 2025.
Current wording
Deposits from customers in the cannabis industry increased $122.1 million, or 26.9%, to $575.1 million as of September 30, 2026 from $453.0 million as of December 31, 2025.
Previous wording
FHLB Borrowings. FHLB borrowings decreased $15.0 million, or 7.6%, to $181.2 million as of June 30, 2026 from $196.2 million as of December 31, 2025, primarily driven by deposit growth outpacing loan growth.
Current wording
FHLB Borrowings. FHLB borrowings decreased $45.9 million, or 23.4%, to $150.3 million as of September 30, 2026 from $196.2 million as of December 31, 2025, primarily driven by paydowns of FHLB borrowings and increased usage of brokered deposits.
Previous wording
Shareholders’ Equity. Total shareholders’ equity decreased $16.9 million, or 2.0%, to $842.0 million as of June 30, 2026 from $858.9 million as of December 31, 2025, due to the $43.0 million decrease in additional paid-in capital resulting from the completion of our share repurchase program in which we repurchased a total of 2,207,236 shares during the six months ended June 30, 2026 at an all-in weighted average cost of $20.96 per share totaling $46.3 million, together with a $4.8 million, or 153.9%, increase in other comprehensive loss as a result of the interest rate environment negatively impacting the value of our AFS securities portfolio and our balance sheet hedges, partially offset by net income of $36.1 million during the six months ended June 30, 2026.
Current wording
Shareholders’ Equity. Total shareholders’ equity decreased $1.5 million, or 0.2%, to $857.4 million as of September 30, 2026 from $858.9 million as of December 31, 2025, due to the $40.9 million decrease in additional paid-in capital resulting from the completion of our share repurchase program in which we repurchased a total of 2,207,236 shares during the nine months ended September 30, 2026 at an all-in weighted average cost of $20.96 per share totaling $46.3 million, together with a $12.2 million, or 390.1%, increase in other comprehensive loss as a result of the interest rate environment negatively impacting the value of our AFS securities portfolio and our balance sheet hedges and dividends paid of $9.4 million, partially offset by net income of $59.2 million during the nine months ended September 30, 2026.
Previous wording
Net Income. Net income increased $6.5 million, or 44.9%, to $21.1 million, or $0.53 per diluted common share, for the quarter ended June 30, 2026, compared to net income of $14.6 million, or $0.39 per diluted common share, for the quarter ended June 30, 2025. Net interest income increased $22.1 million, or 47.1%, and noninterest income increased $1.3 million, or 29.9%, partially offset by increased noninterest expense of $14.6 million, or 49.7%, and increased income tax expense of $2.2 million, or 53.9%.
Current wording
Net Income. Net income increased $7.8 million, or 50.6%, to $23.1 million, or $0.58 per diluted common share, for the quarter ended September 30, 2026, compared to net income of $15.4 million, or $0.43 per diluted common share, for the quarter ended September 30, 2025. Net interest income increased $23.3 million, or 48.3%, and noninterest income increased $1.4 million, or 38.6%, partially offset by increased noninterest expense of $15.8 million, or 51.7%, and increased income tax expense of $1.3 million, or 27.9%.
Previous wording
Operating net income, excluding one-time charges, amounted to $21.9 million, or $0.55 per basic and diluted share for the quarter ended June 30, 2026 compared to operating net income, excluding one-time charges, of $15.0 million, or $0.40 per basic and diluted share, for the quarter ended June 30, 2025, which represents an increase of $6.8 million, or 45.4%.
Current wording
Operating net income, excluding one-time charges, amounted to $23.8 million, or $0.60 per basic and diluted common share for the quarter ended September 30, 2026 compared to operating net income, excluding one-time charges, of $16.0 million, or $0.45 per basic and diluted common share, for the quarter ended September 30, 2025, which represents an increase of $7.8 million, or 48.9%.
Previous wording
Interest and Dividend Income. Interest and dividend income increased $31.9 million, or 40.0%, to $111.8 million for the quarter ended June 30, 2026 from $79.8 million for the quarter ended June 30, 2025, primarily due to increased interest and fees on loans of $31.9 million, or 42.6%. The increase in interest and fees on loans was primarily due to an increase of $1.90 billion, or 42.4%, in the average balance of the loan portfolio to $6.38 billion for the quarter ended June 30, 2026 from $4.48 billion for the quarter ended June 30, 2025, reflecting the Provident acquisition, which was completed on November 14, 2025 and the growth of our commercial and construction loan portfolios.
Current wording
Interest and Dividend Income. Interest and dividend income increased $34.5 million, or 42.2%, to $116.2 million for the quarter ended September 30, 2026 from $81.7 million for the quarter ended September 30, 2025, primarily due to increased interest and fees on loans of $33.4 million, or 43.1%. The increase in interest and fees on loans was primarily due to an increase of $1.99 billion, or 43.1%, in the average balance of the loan portfolio to $6.60 billion for the quarter ended September 30, 2026 from $4.61 billion for the quarter ended September 30, 2025, reflecting both the Provident acquisition, which was completed on November 15, 2025, and the growth of our commercial and construction loan portfolios.
Previous wording
Average interest-earning assets increased $1.99 billion, or 40.2%, to $6.93 billion for the quarter ended June 30, 2026 from $4.94 billion for the quarter ended June 30, 2025. The yield on interest-earning assets decreased 1 basis point to 6.47% for the quarter ended June 30, 2026 from 6.48% for the quarter ended June 30, 2025.
Current wording
Average interest-earning assets increased $2.09 billion, or 41.2%, to $7.15 billion for the quarter ended September 30, 2026 from $5.06 billion for the quarter ended September 30, 2025. The yield on interest-earning assets increased 4 basis points to 6.45% for the quarter ended September 30, 2026 from 6.41% for the quarter ended September 30, 2025.
Previous wording
Interest and dividend income included $2.0 million of fair value mark accretion related to the acquisition of Provident, representing 1.8% or 5 basis points of net interest margin, during the three months ended June 30, 2026. The Company recorded no fair value mark accretion during the three months ended June 30, 2025.
Current wording
Interest and dividend income included $2.6 million of fair value mark accretion related to the acquisition of Provident, representing 3.8%, or 15 basis points, of net interest margin, during the three months ended September 30, 2026. The Company recorded no fair value mark accretion during the three months ended September 30, 2025, as the acquisition of Provident closed on November 15, 2025.
Previous wording
Interest expense on deposits increased $9.0 million, or 28.4%, to $40.7 million for the quarter ended June 30, 2026 from $31.7 million for the quarter ended June 30, 2025. The increase in interest expense on deposits was primarily driven by an increase in the average balance of certificates of deposit and individual retirement accounts of $629.6 million, or 32.0%, to $2.59 billion for the quarter ended June 30, 2026 from $1.96 billion for the quarter ended June 30, 2025 and an increase in the average balance of money market accounts of $610.2 million, or 56.0%, to $1.70 billion for the quarter ended June 30, 2026 from $1.09 billion for the quarter ended June 30, 2025, partially offset by a decrease in the weighted average rate on certificates of deposit and individual retirement accounts of 42 basis points to 3.91% for the quarter ended June 30, 2026 from 4.34% for the quarter ended June 30, 2025.
Current wording
Interest Expense. Total interest expense increased $11.2 million, or 33.4%, to $44.7 million for the quarter ended September 30, 2026 from $33.5 million for the quarter ended September 30, 2025. Interest expense on deposits increased $11.6 million, or 37.2%, to $42.9 million for the quarter ended September 30, 2026 from $31.3 million for the quarter ended September 30, 2025. The increase in interest expense on deposits was primarily driven by an increase in the average balance of certificates of deposit and individual retirement accounts of $749.2 million, or 38.7%, to $2.68 billion for the quarter ended September 30, 2026 from $1.93 billion for the quarter ended September 30, 2025; an increase in the average balance of money market accounts of $616.3 million, or 55.1%, to $1.74 billion for the quarter ended September 30, 2026 from $1.12 billion for the quarter ended September 30, 2025; and an increase in the average balance of NOW accounts of $302.6 million, or 64.7%, to $770.4 million for the quarter ended September 30, 2026 from $467.8 million for the quarter ended September 30, 2025, partially offset by a decrease in the weighted average rate on certificates of deposit and individual retirement accounts of 28 basis points to 3.89% for the quarter ended September 30, 2026 from 4.18% for the quarter ended September 30, 2025.
Previous wording
Net Interest Income. Net interest income increased $22.1 million, or 47.1%, to $69.1 million for the quarter ended June 30, 2026 from $47.0 million for the quarter ended June 30, 2025, primarily due to a $1.99 billion, or 40.2%, increase in the average balance of interest-earning assets to $6.93 billion for the quarter ended June 30, 2026 from $4.94 billion for the quarter ended June 30, 2025 and a decrease in the weighted average rate on interest-bearing liabilities of 36 basis points to 3.16% for the quarter ended June 30, 2026 from 3.52% for the quarter ended June 30, 2025. These increases were partially offset by an increase in the average balance of interest-bearing liabilities of $1.67 billion, or 44.5%, to $5.42 billion at June 30, 2026 from $3.75 billion at June 30, 2025.
Current wording
Net Interest Income. Net interest income increased $23.3 million, or 48.3%, to $71.4 million for the quarter ended September 30, 2026 from $48.2 million for the quarter ended September 30, 2025, primarily due to a $2.09 billion, or 41.2%, increase in the average balance of interest-earning assets to $7.15 billion for the quarter ended September 30, 2026 from $5.06 billion for the quarter ended September 30, 2025 and a decrease in the weighted average rate on interest-bearing liabilities of 28 basis points to 3.18% for the quarter ended September 30, 2026 from 3.46% for the quarter ended September 30, 2025. These increases were partially offset by an increase in the average balance of interest-bearing liabilities of $1.74 billion, or 45.4%, to $5.59 billion at September 30, 2026 from $3.84 billion at September 30, 2025.
Previous wording
Provision for Credit Losses. Based on management’s analysis of the adequacy of the ACL, a provision of $3.2 million was recorded for the quarter ended June 30, 2026, of which $3.0 million related to the provision for credit losses on loans, compared to a provision of $3.2 million for the quarter ended June 30, 2025, which included a $4.2 million provision for credit losses on loans. The decrease in the provision for credit losses on loans was primarily driven by prior quarter reserve increases from updated peer proxies to better reflect geographic composition and construction to permanent amortization adjustments, partially offset by current quarter other consumer charge-off replenishment and higher C&I impaired reserves. The provision for credit losses on unfunded commitments increased $1.2 million during the three months ended June 30, 2026 as a result of an increase in unfunded commitments during the quarter ended June 30, 2026.
Current wording
Provision for Credit Losses. Based on management’s analysis of the adequacy of the ACL, a provision of $1.2 million was recorded for the quarter ended September 30, 2026, of which $1.4 million related to the provision for credit losses on loans, compared to a provision of $1.4 million for the quarter ended September 30, 2025, which included a $1.0 million provision for credit losses on loans. The increase in the provision for credit losses on loans was primarily driven by loan growth, charge-off replenishment and lower prepayment speed forecasts updated with rising interest rates. The provision for credit losses on unfunded commitments decreased $500,000 during the three months ended September 30, 2026 as a result of commercial and industrial drawdowns and credit line reductions.
Previous wording
Noninterest Income. Noninterest income increased $1.3 million, or 29.9%, to $5.6 million for the quarter ended June 30, 2026 from $4.3 million for the quarter ended June 30, 2025. The increase resulted primarily from increased customer service fees of $1.1 million, or 44.1%, due to higher cash management, loan and debit card fees.
Current wording
Noninterest Income. Noninterest income increased $1.4 million, or 38.6%, to $5.1 million for the quarter ended September 30, 2026 from $3.7 million for the quarter ended September 30, 2025. The increase resulted primarily from increased customer service fees of $1.0 million, or 40.3%, due to higher cash management, loan and debit card fees.
Previous wording
The table below sets forth our noninterest income for the quarters ended June 30, 2026 and 2025:
Current wording
The table below sets forth our noninterest income for the three months ended September 30, 2026 and 2025:
Previous wording
Noninterest Expense. Noninterest expense increased $14.6 million, or 49.7%, to $44.0 million for the quarter ended June 30, 2026 from $29.4 million for the quarter ended June 30, 2025. Salaries and employee benefit expenses increased $7.0 million, or 37.6%, resulting primarily from a $4.1 million increase in employee compensation, a $1.1 million increase in medical and dental benefits and a $541,000 increase in employee bonus expense, all due to headcount increases related to the Provident acquisition and the Company’s continued organic growth, and a $525,000 increase in stock-based compensation as a result of the grants made during the current year.
Current wording
Noninterest Expense. Noninterest expense increased $15.8 million, or 51.7%, to $46.3 million for the quarter ended September 30, 2026 from $30.5 million for the quarter ended September 30, 2025. Salaries and employee benefit expenses increased $8.9 million, or 47.5%, resulting primarily from a $4.8 million increase in employee compensation, a $980,000 increase in medical and dental benefits, a $964,000 increase in employee bonus expense, a $335,000 increase in federal employer taxes and a $308,000 increase in 401(k) match expenses, all due to headcount increases related to the Provident acquisition and the Company’s continued organic growth; a $739,000 increase in pension expense resulting from a liquidation refund for the same amount during the quarter ended September 30, 2025; and a $434,000 increase in stock-based compensation as a result of the grants made during the current year. Data processing expenses increased $2.4 million, or 83.8%, primarily driven by our continued investment in technology and related systems in support of upcoming revenue initiatives, requiring the operation of systems in parallel for a period of time while new systems are implemented. Occupancy and equipment expenses increased $1.5 million, or 95.4%, primarily driven by the Provident acquisition, as well as the opening of three new branches and contract settlement fees. Director and professional service fees increased $1.2 million, or 42.4%, primarily driven by increased legal expenses resulting from contract settlement fees of $651,000. Core deposit intangible amortization expense increased $855,000, or 2,310.8%, primarily driven by amortization of the core deposit intangible acquired with Provident.
Previous wording
The table below sets forth our noninterest expense for the six months ended June 30, 2026 and 2025:
Current wording
The table below sets forth our noninterest expense for the three months ended September 30, 2026 and 2025:
Previous wording
Income Tax Expense. Income tax expense increased $2.2 million, or 53.9%, to $6.4 million for the quarter ended June 30, 2026 from $4.1 million for the quarter ended June 30, 2025. The effective tax rate was 23.2% and 22.1% for the quarters ended June 30, 2026 and 2025, respectively. The increase in tax expense was from higher pre-tax income during the quarter ended June 30, 2026 compared to June 30, 2025.
Current wording
Income Tax Expense. Income tax expense increased $1.3 million, or 27.9%, to $5.9 million for the quarter ended September 30, 2026 from $4.6 million for the quarter ended September 30, 2025. The increase in tax expense was from higher pre-tax income during the quarter ended September 30, 2026 compared to September 30, 2025. The effective tax rate was 20.3% and 23.0% for the quarters ended September 30, 2026 and 2025, respectively. The decrease in the effective tax rate was driven by investment in two income tax credit entities, as well as the purchase of low-income housing tax credits during the quarter ended September 30, 2026.
Previous wording
Comparison of Operating Results for the Six Months Ended June 30, 2026 and 2025
Current wording
Comparison of Operating Results for the Nine Months Ended September 30, 2026 and 2025
Previous wording
Net Income. Net income increased approximately $8.9 million, or 32.6%, to $36.1 million, or $0.90 per diluted common share, for the six months ended June 30, 2026, compared to net income of $27.2 million, or $0.72 per diluted common share, for the six months ended June 30, 2025. The increase was primarily due to increased net interest income of $43.5 million, or 48.0%, partially offset by increased noninterest expense of $28.6 million, or 49.3%, and increased provision for credit losses of $5.2 million, or 120.4%.
Current wording
Net Income. Net income increased approximately $16.6 million, or 39.1%, to $59.2 million, or $1.47 per diluted common share, for the nine months ended September 30, 2026, compared to net income of $42.6 million, or $1.14 per diluted common share, for the nine months ended September 30, 2025. The increase was primarily due to increased net interest income of $66.7 million, or 48.1%, partially offset by increased noninterest expense of $44.1 million, or 49.6%, and increased provision for credit losses of $5.1 million, or 88.4%.
Previous wording
Operating net income, excluding one-time charges, amounted to $37.7 million, or $0.94 per diluted share, for the six months ended June 30, 2026 compared to operating net income, excluding one-time charges, of $28.7 million, or $0.76 per diluted share, for the six months ended June 30, 2025, an increase of $8.9 million, or 31.1%.
Current wording
Operating net income, excluding one-time charges, amounted to $61.5 million, or $1.52 per diluted common share, for the nine months ended September 30, 2026 compared to operating net income, excluding one-time charges, of $44.7 million, or $1.20 per diluted common share, for the nine months ended September 30, 2025, an increase of $16.8 million, or 37.5%.
Previous wording
Interest and Dividend Income. Interest and dividend income increased $60.8 million, or 38.8%, to $217.5 million for the six months ended June 30, 2026 from $156.7 million for the six months ended June 30, 2025, primarily due to a $60.5 million, or 41.4%, increase in interest and fees on loans, reflecting the Provident acquisition and the growth of our commercial and construction loan portfolios. The increase in interest and fees on loans was primarily due to an increase of $1.81 billion, or 40.9%, in the average balance of the loan portfolio to $6.23 billion for the six months ended June 30, 2026 from $4.42 billion for the six months ended June 30, 2025 reflecting the Provident acquisition, which was completed on November 14, 2025, and the growth of our commercial and construction loan portfolios.
Current wording
Interest and Dividend Income. Interest and dividend income increased $95.2 million, or 40.0%, to $333.6 million for the nine months ended September 30, 2026 from $238.4 million for the nine months ended September 30, 2025, primarily due to a $93.8 million, or 42.0%, increase in interest and fees on loans, reflecting the Provident acquisition and the growth of our commercial and construction loan portfolios. The increase in interest and fees on loans was primarily due to an increase of $1.87 billion, or 41.7%, in the average balance of the loan portfolio to $6.36 billion for the nine months ended September 30, 2026 from $4.49 billion for the nine months ended September 30, 2025 reflecting the Provident acquisition, which was completed on November 15, 2025, and the growth of our commercial and construction loan portfolios.
Previous wording
Average interest-earning assets increased $1.89 billion, or 38.5%, to $6.81 billion for the six months ended June 30, 2026 from $4.92 billion for the six months ended June 30, 2025. The yield on interest-earning assets increased 1 basis point to 6.44% for the six months ended June 30, 2026 from 6.43% for the six months ended June 30, 2025.
Current wording
Average interest-earning assets increased $1.96 billion, or 39.4%, to $6.92 billion for the nine months ended September 30, 2026 from $4.96 billion for the nine months ended September 30, 2025. The yield on interest-earning assets increased 2 basis points to 6.44% for the nine months ended September 30, 2026 from 6.42% for the nine months ended September 30, 2025.
Previous wording
Interest Expense. Total interest expense increased $17.3 million, or 26.1%, to $83.5 million for the six months ended June 30, 2026 from $66.2 million for the six months ended June 30, 2025. Interest expense on deposit accounts increased $16.3 million, or 25.6%, to $80.3 million for the six months ended June 30, 2026 from $63.9 million for the six months ended June 30,2025. The increase was primarily due to an increase in the average balance of certificate of deposit and individual retirement accounts of $574.1 million, or 29.1%, to $2.55 billion for the six months ended June 30, 2026 from $1.97 billion for the six months ended June 30, 2025, an increase in the average balance of money market accounts of $624.3 million, or 57.7% to $1.71 billion for the six months ended June 30, 2026 from $1.08 billion for the six months ended June 30, 2025 and an increase in the average balance of FHLB borrowings of $75.1 million, or 77.2%, to $172.4 million for the six months ended June 30, 2026 from $97.3 million for the six months ended June 30, 2025, partially offset by a decrease in the weighted average rate on certificate of deposit and individual retirement accounts of 51 basis points to 3.95% for the six months ended June 30, 2026 from 4.46% for the six months ended June 30, 2025.
Current wording
Interest Expense. Total interest expense increased $28.5 million, or 28.6%, to $128.2 million for the nine months ended September 30, 2026 from $99.7 million for the nine months ended September 30, 2025. Interest expense on deposit accounts increased $28.0 million, or 29.4%, to $123.2 million for the nine months ended September 30, 2026 from $95.2 million for the nine months ended September 30, 2025. The increase was primarily due to an increase in the average balance of certificate of deposit and individual retirement accounts of $633.8 million, or 32.4%, to $2.59 billion for the nine months ended September 30, 2026 from $1.96 billion for the nine months ended September 30,2025 and an increase in the average balance of money market accounts of $621.0 million, or 56.7%, to $1.72 billion for the nine months ended September 30, 2026 from $1.09 billion for the nine months ended September 30, 2025, partially offset by a decrease in the weighted average rate on certificate of deposit and individual retirement accounts of 43 basis points to 3.94% for the nine months ended September 30, 2026 from 4.37% for the nine months ended September 30, 2025.
Previous wording
Net Interest Income. Net interest income increased $43.5 million, or 48.0%, to $134.0 million for the six months ended June 30, 2026 from $90.5 million for the six months ended June 30, 2025, primarily due to a $1.89 billion, or 38.5%, increase in the average balance of interest-earning assets to $6.81 billion for the six months ended June 30, 2026 from $4.92 billion for the six months ended June 30, 2025 and a decrease in the weighted average rate on interest-bearing liabilities of 40 basis points to 3.17% for the six months ended June 30, 2026 from 3.57% for the six months ended June 30, 2025. These increases were offset partially by an increase in the average balance of interest-bearing liabilities of $1.57 billion, or 41.9%, to $5.30 billion for the six months ended June 30, 2026 from $3.74 billion for the six months ended June 30, 2025.
Current wording
Net Interest Income. Net interest income increased $66.7 million, or 48.1%, to $205.5 million for the nine months ended September 30, 2026 from $138.7 million for the nine months ended September 30, 2025, primarily due to a $1.96 billion, or 39.4%, increase in the average balance of interest-earning assets to $6.92 billion for the nine months ended September 30, 2026 from $4.96 billion for the nine months ended September 30, 2025 and a decrease in the weighted average rate on interest-bearing liabilities of 36 basis points to 3.17% for the nine months ended September 30, 2026 from 3.53% for the nine months ended September 30, 2025. These increases were partially offset by an increase in the average balance of interest-bearing liabilities of $1.63 billion, or 43.1%, to $5.40 billion for the nine months ended September 30, 2026 from $3.77 billion for the nine months ended September 30, 2025.
Previous wording
Provision for Credit Losses. Based on management’s analysis of the adequacy of the ACL, a provision of $9.5 million was recorded for the six months ended June 30, 2026, of which $9.4 million related to the provision for credit losses on loans, compared to a provision of $4.3 million for the six months ended June 30, 2025, which included a $5.2 million provision for credit losses on loans. The increase of $4.2 million, or 80.6%, in the provision for credit losses on loans was primarily driven by loan growth, additional specific reserves on PCD loans from our acquisition of Provident, larger peer commercial real estate credit losses impacting quantitative reserves, and an elevated qualitative factor risk grade for the commercial and industrial loan portfolio. The provision for credit losses on unfunded commitments increased $1.0 million, or 116.6%, during the six months ended June 30, 2026 as a result of increased unfunded commitments.
Current wording
Provision for Credit Losses. Based on management’s analysis of the adequacy of the ACL, a provision of $10.8 million was recorded for the nine months ended September 30, 2026, all of which related to the provision for credit losses on loans, compared to a provision of $5.7 million for the nine months ended September 30, 2025, which included a $6.2 million provision for credit losses on loans. The increase of $4.5 million, or 72.8%, in the provision for credit losses on loans was primarily driven by loan growth, larger peer commercial real estate credit losses impacting quantitative reserves, and an elevated qualitative factor risk grade for the commercial and industrial loan portfolio. The Company did not record a provision for credit losses on unfunded commitments during the nine months ended September 30, 2026, while recording a release of credit losses on unfunded commitments of $517,000 during the nine months ended September 30, 2025. The change was driven by an increase in unfunded commitments during the nine months ended September 30, 2026.
Previous wording
Noninterest Income. Noninterest income increased $1.9 million, or 23.4%, to $10.1 million for the six months ended June 30, 2026 from $8.2 million for the six months ended June 30, 2025. The increase resulted primarily from increased customer service fees of $1.7 million, or 33.3%, due to higher cash management, debit card and interchange fees. The table below sets forth our noninterest income for the six months ended June 30, 2026 and 2025:
Current wording
Noninterest Income. Noninterest income increased $3.0 million, or 25.1%, to $15.2 million for the nine months ended September 30, 2026 from $12.1 million for the nine months ended September 30, 2025. The increase resulted primarily from increased customer service fees of $2.7 million, or 35.6%, due to higher cash management, debit card and interchange fees. The table below sets forth our noninterest income for the nine months ended September 30, 2026 and 2025:
Previous wording
Data processing expenses increased $2.4 million, or 96.5% primarily driven by our continued investment in technology and systems in support of upcoming revenue initiatives, requiring the operation of systems in parallel for a period of time while new systems are implemented. General and administrative expenses increased $2.1 million, or 98.6%, primarily driven by our acquisition of Provident resulting in $855,000 in additional core deposit intangible amortization expense, in addition to $319,000 in increased tax credit amortization expense, $169,000 in increased education and training expenses, $144,000 in increased utilities expenses and $124,000 in increased bank supplies expense all driven by our acquisition of Provident. Occupancy and equipment expenses increased $1.0 million, or 68.5%, primarily driven by our acquisition of Provident, as well as the opening of two new branches.
Current wording
Noninterest Expense. Noninterest expense increased $44.1 million, or 49.6%, to $133.0 million for the nine months ended September 30, 2026 from $88.9 million for the nine months ended September 30, 2025. Salaries and employee benefit expenses increased $22.2 million, or 39.3%, primarily from a $13.4 million increase in employee compensation expense, a $2.9 million increase in medical and dental benefits expense, a $2.3 million increase in employee bonus expense, an $855,000 increase in 401(k) employer match expenses and an $874,000 increase in employer federal income tax withholding expenses driven by three quarters of increased headcount from the Provident acquisition and the hiring of additional employees consistent with our organic growth, as well as a $1.5 million increase in employee stock compensation expense resulting from the original grants being awarded in April 2025 driving lower expense during the nine months ended September 30, 2025, offset partially by a $778,000 decrease in LTIP expenses and a $480,000 decrease in pension expenses due to completion of the Plan liquidation during 2025. Data processing expenses increased $6.5 million, or 79.8%, primarily driven by our continued investment in technology and related systems in support of upcoming revenue initiatives, requiring the operation of systems in parallel for a period of time while new systems are implemented. Director and professional service fees increased $4.0 million, or 50.1%, primarily driven by a $1.6 million increase in director stock compensation expense, a $1.2 million increase in consulting expense from business line expansion fees and a $731,000 increase in contract settlement legal expenses. General and administrative expenses increased $3.0 million, or 48.5%, primarily driven by our acquisition of Provident resulting in $2.6 million in additional core deposit intangible amortization expenses. Also contributing to the increase in general and administrative expenses was $275,000 in utility expenses, $230,000 in courier expenses and $213,000 in loan workout expenses driven by the Provident acquisition and the opening of three new branches during 2026. Data processing expenses increased $6.5 million, or 79.8%, during the nine months ended September 30, 2026, primarily the result of our significant investment in technology and systems, as well as three full quarters of increased transactional volume from the Provident acquisition. Occupancy and equipment expenses increased $3.4 million, or 73.9%, primarily driven by our acquisition of Provident, as well as the opening of three new branches and contract settlement fees. Core deposit intangible amortization expense increased $2.6 million, or 2,288.4%, primarily driven by amortization of the core deposit intangible acquired with Provident.
Previous wording
The table below sets forth our noninterest expense for the quarters ended June 30, 2026 and 2025:
Current wording
The table below sets forth our noninterest expense for the nine months ended September 30, 2026 and 2025:
Previous wording
Income Tax Expense. Income tax expense increased $2.7 million, or 29.7%, to $11.7 million for the six months ended June 30, 2026 from $9.1 million for the six months ended June 30, 2025, mainly resulting from the increase in net income during the quarter ended June 30, 2026. The effective tax rate was 24.5% and 25.0% for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Income Tax Expense. Income tax expense increased $4.0 million, or 29.1%, to $17.6 million for the nine months ended September 30, 2026 from $13.7 million for the nine months ended September 30, 2025, mainly resulting from the increase in net income during the quarter ended September 30, 2026. The effective tax rate was 22.9% and 24.3% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in the effective tax rate was driven by continued income tax credit purchases and investments.
Previous wording
The table above indicates that as of June 30, 2026, we would have experienced a 4.1% increase in net interest income in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 2.6% decrease in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates.
Current wording
The table above indicates that as of September 30, 2026, we would have experienced a 4.8% increase in net interest income in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 4.5% decrease in net interest income in the event of an instantaneous 200 basis point decrease in market interest rates.
Previous wording
The table above indicates that as of June 30, 2026, we would have experienced a 4.7% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 0.5% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates.
Current wording
The table above indicates that as of September 30, 2026, we would have experienced a 7.0% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 1.5% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates.
Previous wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We are also able to borrow from the FHLB and the Discount Window at the FRB. As of June 30, 2026, we had outstanding advances of $181.2 million from the FHLB. As of June 30, 2026, we had unused borrowing capacity of $762.0 million with the FHLB. At June 30, 2026, the Bank had $1.12 billion available from the discount window under the Borrower in Custody (“BIC”) program at the FRB. Additionally, as of June 30, 2026, we had $719.9 million of brokered deposits and pursuant to our internal liquidity policy, which allows us to utilize brokered deposits up to 25.0% of our total assets, we had an additional capacity of up to approximately $1.14 billion of brokered deposits. Uninsured deposits were $1.78 billion and $1.66 billion as of June 30, 2026 and December 31, 2025, respectively.
Current wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We are also able to borrow from the FHLB and the Discount Window at the FRB. As of September 30, 2026, we had outstanding advances of $150.3 million from the FHLB. As of September 30, 2026, we had unused borrowing capacity of $680.3 million with the FHLB. At September 30, 2026, the Bank had $1.16 billion available from the discount window under the Borrower in Custody (“BIC”) program at the FRB. Additionally, as of September 30, 2026, we had $692.6 million of brokered deposits and pursuant to our internal liquidity policy, which allows us to utilize brokered deposits up to 25.0% of our total assets, we had an additional capacity of up to approximately $1.23 billion of brokered deposits. Uninsured deposits were $2.00 billion and $1.66 billion as of September 30, 2026 and December 31, 2025, respectively.
Previous wording
At June 30, 2026, we had $16.7 million in outstanding commitments to originate loans. In addition, we had $816.1 million in unused lines of credit to borrowers, $509.5 million in unused mortgage warehouse lines, $389.6 million in unadvanced construction loans and $7.6 million in letters of credit outstanding.
Current wording
At September 30, 2026, we had $34.7 million in outstanding commitments to originate loans. In addition, we had $796.8 million in unused lines of credit to borrowers, $475.0 million in unused mortgage warehouse lines, $440.7 million in unadvanced construction loans and $7.5 million in letters of credit outstanding.
Previous wording
Non-brokered certificates of deposit due within one year of June 30,2026 totaled $1.93 billion, or 30.5%, of total deposits. If these deposits do not remain with us, we may be required to seek other sources of funds, including brokered deposits, FHLB advances and FRB borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the non-brokered certificates of deposit due on or before June 30, 2026, or on our other interest-bearing deposit accounts. We believe, however, based on historical experience and current market interest rates that we will retain upon maturity a large portion of our certificates of deposit with maturities of one year or less as of June 30, 2026.
Current wording
Non-brokered certificates of deposit due within one year of September 30, 2026 totaled $1.83 billion, or 28.0%, of total deposits. If these deposits do not remain with us, we may be required to seek other sources of funds, including brokered deposits, FHLB advances and FRB borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the non-brokered certificates of deposit due on or before September 30, 2027, or on our other interest-bearing deposit accounts. We believe, however, based on historical experience and current market interest rates that we will retain upon maturity a large portion of our certificates of deposit with maturities of one year or less as of September 30, 2026.
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Previous report — wording carried elsewhere
Noninterest Expense. Noninterest expense increased $28.6 million, or 49.3%, to $86.7 million for the six months ended June 30, 2026 from $58.1 million for the six months ended June 30, 2025. Salaries and employee benefit expenses increased $13.3 million, or 35.3%, primarily from an $8.6 million increase in employee compensation expense, a $1.9 million increase in medical and dental benefits expense, a $1.3 million increase in employee bonus expense, a $539,000 increase in federal payroll taxes and a $577,000 increase in 401(k) match expenses driven by two quarters of increased headcount from the Provident acquisition and the hiring of additional employees consistent with our organic growth and a $1.0 million increase in employee stock compensation expense resulting from the original grants being awarded in April 2025 driving lower expense during the six months ended June 30, 2025, offset partially by a $1.2 million decrease in pension expenses due to completion of the plan liquidation during 2025.