NB Bancorp, Inc. (NBBK) SEC Filings & Earnings Calls

Credit quality deterioration: net charge-offs increased to 0.31% from 0.07% due to a $4.0M PCD loan charge-off; NPL ratio rose to 0.53%

“Net charge-offs (annualized) as a percent of average loans increased to 0.31% from 0.07% ... from the charge off of a previously reserved for PCD C&I loan of $4.0 million”

Net interest margin compression of 3 bps QoQ due to loan growth outpacing deposit growth and deposit cost pressure

“Net interest margin declined by 3 basis points to 3.97% from 4.00% as gross loans increased 5.3% while total deposits increased 3.2%”

Cannabis Loan Concentration

“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.” · word for word

Elevated Charge-offs in C&I Portfolio

“The charge-offs in the commercial and industrial portfolio during the six months ended June 30, 2026 were primarily driven by two large charge-offs of PCD loans, in amounts of $10.6 million and $1.8 million.” · word for word

Brokered Deposit Reliance

“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.” · word for word

Interest Rate Risk from AFS Portfolio

“Accumulated other comprehensive loss increased $4.8 million, or 153.9%, as a result of the interest rate environment negatively impacting the value of our AFS securities portfolio and our balance sheet hedges.”

Credit trends from BankProv acquisition improved but still a risk

“Credit trends from the BankProv acquisition improved during the quarter, where net charge-offs to average loans decreased to 0.07% from 0.91%” · word for word

Merger Integration Risk

“Merger and acquisition expense increased $17.3 million due to expenses incurred as a result of the Provident acquisition.” · word for word

Credit Risk from Loan Growth

“The filing does not provide specific credit quality metrics, but rapid loan growth can sometimes lead to credit deterioration.”

Cannabis deposit concentration risk

“our cannabis-related business includes approximately $367.9 million of direct cannabis deposits...if we were forced to terminate this business line, we could lose many or most of these deposits, all of which are core deposits.” · word for word

Regulatory scrutiny of BaaS and fintech partnerships

“Federal bank regulators have increasingly focused on the risks related to bank and fintech partnerships...We could be subject to additional regulatory scrutiny with respect to that portion of our business” · word for word

Loss of excess deposit insurance (DIF exit)

“Effective April 25, 2025, the Bank exited the DIF, which results in excess deposits no longer being insured above FDIC-limits...Losing excess deposit insurance could result in deposit run off” · word for word

Interest rate hedging risk

“Hedging against interest rate exposure may adversely affect our earnings.” · word for word

Concentration in real estate loans in market area

“We have a high concentration of loans secured by real estate in our market area.” · word for word

Merger integration risk largely resolved; one-time charges of $15.7M M&A costs and $2.1M BOLI penalty impacted GAAP net income.

“merger and acquisition costs of $15.7 million (pre-tax) related to the Company’s completed acquisition of Provident ... $2.1 million of tax expense and modified endowment contract penalty related to the surrender of bank-owned life insurance” · word for word

Key executive departure post-merger; consulting arrangement ensures transition continuity.

“Mr. Reilly's employment terminated; he will provide consulting services for 18 months.”

Regulatory capital requirements

“Company is subject to regulatory capital requirements; currently well capitalized.”

Derivative counterparty risk

“Company has derivative agreements with provisions that could trigger termination.”