NB Bancorp reported net income of $23.13 million for the three months ended Sep 30, 2026.

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For the quarterly period ended June September 30, 2026

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(Title of each class) to be registered)

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each class is to be registered)

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As of July October 31, 2026, 43,818,490 shares of the Registrant's common stock, par value $0.01 per share, were issued and outstanding.

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Financial statements 182 changes

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June September 30, 2026 (Unaudited) and December 31, 2025

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Common stock, $ 0.01 par value, 120,000,000 shares authorized; 43,818,490 and 45,770,128 shares issued and outstanding at June September 30, 2026 and December 31, 2025, respectively

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For the Six Nine Months Ended

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Provision for (Release of) provision for credit losses - unfunded commitments ( 1,083 145 )

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NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

PROVISION FOR CREDIT LOSSES

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(Loss) gain on sale of loans, net

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Core deposit intangible amortization expense

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For the Six Nine Months Ended

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Balance, March 31, 2025

Balance, June 30, 2025

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Restricted stock awards issued

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Balance, March 31, 2026

ESOP shares committed to be released ( 42,589 43,057 shares)

Balance, September 30, 2025

Balance, June 30, 2025 2026

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Repurchase of common shares under share repurchase plan

Restricted stock awards cancelled (1)

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Balance, June 30, 2026

ESOP shares committed to be released ( 42,589 43,057 shares)

Balance, September 30, 2026

For the Six Nine Months Ended

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Balance, June 30, 2025

ESOP shares committed to be released ( 84,709 127,766 shares)

Balance, September 30, 2025

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Balance, June 30, 2026

ESOP shares committed to be released ( 84,709 127,766 shares)

Balance, September 30, 2026

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For the Six Months Ended June 30,

For the Nine Months Ended September 30,

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Deferred income tax expense benefit

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Decrease increase in FHLB borrowings, net

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Unrealized holding (losses) gains on cash flow hedge

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Correction of an immaterial error - Goodwill

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In connection with the Conversion, liquidation accounts are were established by the Company and the Bank in an aggregate amount equal to (i) the MHC's ownership interest in the shareholders' equity of NB Financial, Inc. as of the date of the latest statement of financial condition included in the Company's definitive prospectus dated October 12, 2023, plus (ii) the value of the net assets of the MHC as of the date of the MHC's latest statement of financial condition before the consummation of the Conversion (excluding the MHC's ownership interest in NB Financial, Inc.). Each eligible account holder and supplemental eligible account holder is entitled to a proportionate share of the liquidation accounts in the event of a liquidation of (i) the Company and the Bank or (ii) the Bank, and only in such events. This share will be reduced if the eligible account holder's or supplemental account holder's deposit balance falls below the amounts on the date of record and will cease to exist if the account is closed. The liquidation account will never be increased despite any increase after the Conversion in the related deposit balance. The Bank may not pay a dividend on its capital stock if the effect thereof would cause retained earnings to be reduced below the liquidation account amount or regulatory capital requirements.

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The accompanying Consolidated Balance Sheet as of June September 30, 2026, and the Consolidated Statements of Income, of Comprehensive Income, of Changes in Shareholders' Equity and of Cash Flows for the six three and nine months ended June September 30, 2026 and 2025 are unaudited. The Consolidated Balance Sheet as of December 31, 2025 was derived from the Audited Consolidated Financial Statements as of that date. The interim Consolidated Financial Statements and the accompanying notes should be read in conjunction with the annual Consolidated Financial Statements and the accompanying notes contained within the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC. In the opinion of management, the Company's Consolidated Financial Statements reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The results for the three and six nine months ended June September 30, 2026 are not necessarily indicative of results to be expected for the year ending December 31, 2026, any other interim period, or any future year or period.

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On November 15, 2025, the Company completed its acquisition of Provident Bancorp, Inc. and BankProv (together, "Provident"). The total consideration paid in the acquisition of Provident was $ 111.8 million in cash and the issuance of 5,943,682 shares of common stock valued at $ 114.7 million. The acquisition added $ 1.40 billion of total assets, $ 1.23 billion of total loans and $ 1.14 billion in total deposits, each at fair value, as of the date of closing.

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The calculation of goodwill is subject to change for up to one year after the closing date of the transaction as additional information relative to closing date estimates and uncertainties become available. The Company made no adjustments to Goodwill During the three and six nine months ended June September 30, 2026, the Company corrected an immaterial error related to the acquisition-date accounting for an FHLB advance assumed in the acquisition as a correction of an error under ASC 250, Accounting Changes and Error Corrections ("ASC 250"). Refer to Note 5 – Goodwill and Other Intangibles for disclosure of the adjustment.

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Relevant standards that were recently issued but not yet adopted as of June September 30, 2026:

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The Company's available-for-sale ("AFS") securities are carried at fair value. For available-for-sale AFS securities in an unrealized loss position, management will first evaluate whether there is intent to sell, or if it is more likely than not that the Company will be required to sell a security prior to anticipated recovery of its amortized cost basis. If either of these criteria are met, the Company will record a write-down of the security's amortized cost basis to fair value through income. For those available-for-sale AFS securities which do not meet the intent or requirement to sell criteria, management will evaluate whether the decline in fair value is a result of credit related matters or other factors. In performing this assessment, management considers the creditworthiness of the issuer including whether the security is guaranteed by the U.S. Federal Government or other government agency, the extent to which fair value is less than amortized cost, and changes in credit rating during the period, among other factors.

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The Company did not record a provision for estimated credit losses on any available-for-sale AFS securities for during the three and six nine months ended June September 30, 2026 and 2025. Excluded from the table above is accrued interest on available-for-sale AFS securities of $ 2.0 million and $ 1.8 million at June September 30, 2026 and December 31, 2025, respectively, which is included within accrued interest receivable on the consolidated balance sheets. Additionally, the Company did no t record any write-offs of accrued interest income on available-for-sale AFS securities for the three and six nine months ended June September 30, 2026 and 2025. No securities held by the Company were delinquent on contractual payments at June September 30, 2026 or December 31, 2025, no r were any securities placed on non-accrual status for the three and six nine months ended June September 30, 2026 and 2025.

The following is a summary of actual maturities of certain available-for-sale AFS securities as of June September 30, 2026. The amortized cost and fair values are based on the contractual maturity dates. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty. Agency mortgage-backed securities and collateralized mortgage obligations are presented as separate lines as paydowns are expected to occur before contractual maturity dates.

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When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. There were no sales of available-for-sale AFS securities during the three and six nine months ended June September 30, 2026 and 2025.

The carrying value of available-for-sale AFS securities pledged to secure advances from the FHLB were $ 210.4 221.9 million and $ 111.5 million as of June September 30, 2026 and December 31, 2025, respectively.

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At June September 30, 2026, AFS debt securities had unrealized losses with aggregate depreciation of 2.6 3.9 % from the Company's amortized cost basis. These unrealized losses relate to changes in market interest rates since acquiring the securities. As management has the intent and ability to hold available-for-sale AFS debt securities until maturity or cost recovery, no allowance for credit losses on securities is deemed necessary as of June September 30, 2026 and December 31, 2025.

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Loans held for sale to the secondary market are carried at the lower of cost or estimated market value on an individual loan basis. Changes in the fair value of loans held for sale are recognized in the consolidated statements of income when there is a change in the balance of loans being sold at a discount. Interest income is recognized on loans held for sale between the time the loan is funded and the loan is sold. Direct loan origination costs and fees are deferred upon origination and are recognized in the consolidated statements of income on the date of sale. As of June September 30, 2026 and December 31, 2025, the Company had $ 59.9 55.9 million and $ 66.4 million of consumer loans held for sale, respectively. The sale of the loans held for sale at June September 30, 2026 has been delayed due to liquidity needs of the purchaser but is expected to close in the third fourth quarter of 2026.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported as held for investment at their outstanding principal balance adjusted for any charge-offs and net of any deferred fees (including purchase accounting adjustments) and origination costs (collectively referred to as "amortized cost"). Loan origination fees and certain direct origination costs are deferred and amortized as an adjustment of yield using the payment terms required by the loan contract. When loans are sold or repaid, any unamortized fees and costs are recorded to interest income on loans. Interest income on loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans with no signs of credit deterioration at acquisition, interest income is also accrued based upon the daily principal amount outstanding, adjusted further by the accretion of any discount or amortization of any premium associated with the loan. .

Loan origination fees and certain direct origination costs are deferred and amortized as an adjustment of yield using the payment terms required by the loan contract. When loans are sold or repaid, any unamortized fees and costs are recorded to interest income on loans. Interest income on loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans with no signs of credit deterioration at acquisition, interest income is also accrued based upon the daily principal amount outstanding, adjusted further by the accretion of any discount or amortization of any premium associated with the loan.

Loans are generally placed into nonaccrual status when they are past due 90 days or more as to either principal or interest or when, in the opinion of management, the collection of principal and/or interest is in doubt. A loan remains in nonaccrual status until the loan is current as to payment of both principal and interest or past due less than 90 days and the borrower demonstrates the ability to pay and remain current. When cash payments are received, they are applied to principal first, then to accrued interest. It is the Company's policy not to record interest income on nonaccrual loans until principal has become current.

When cash payments are received, they are applied to principal first, then to accrued interest. It is the Company's policy not to record interest income on nonaccrual loans until principal has become current.

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Management's determination of the adequacy of the ACL under FASB ASC 326 is based on an evaluation of the composition of the loan portfolio, current economic conditions, historical loan loss experience, reasonable and supportable forecasts, and other risk factors. The Company uses a third-party Current Expected Credit Loass Loss ("CECL") model as part of its estimation of the ACL on a quarterly basis. Loans with similar risk characteristics are collectively assessed within pools (or segments). Loss estimates within the collectively assessed population are based on a combination of pooled assumptions and loan-level characteristics. The Company has determined that using federal call report codes is an appropriate loan segmentation methodology, as it is generally based on risk characteristics of a loan's underlying collateral.

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Management continually assesses the peer group and related data used to inform the ACL calculation.

Management also considers qualitative adjustments when estimating credit losses to take into account the model's quantitative limitations.

The Company made no significant change to loss factors, assumptions or qualitative factors within the CECL model during the three and six months ended June 30, 2026 and 2025.

Additionally, interest rate forecasts sourced from CME Group's "FedWatch," Wells Fargo's "U.S. Economic Outlook," and FHN Financial's "Economic Forecast" publications are used for consideration of rate sensitivity in the model's loan prepayment speed estimation. Historical loss rates used in the quantitative model are primarily derived using both the Bank's data and peer bank data obtained from publicly available sources (i.e., federal call reports). The Bank's peer group is comprised of financial institutions of relatively similar size and in similar markets (i.e., $ 10 billion or less of total assets and headquartered in New England). The peer group used for certain loan segments is a national peer group of financial institutions of relatively similar size (i.e., $ 10 billion or less of total assets), where appropriate. Management continually assesses the peer group and related data used to inform the ACL calculation.

Management also considers qualitative adjustments when estimating credit losses to take into account the model's quantitative limitations. Qualitative adjustments to quantitative loss factors, either negative or positive, may include considerations of economic conditions including economic forecasts as detailed above, volume and severity of past due loans, value of underlying collateral, experience, depth, and ability of management, and concentrations of credit.

The Company made no significant changes to loss factors, assumptions or qualitative factors within the CECL model during the three and nine months ended September 30, 2026. During the three and nine months ended September 30, 2025, as part of management's annual analysis of prepayment speeds, the historical prepayment speed analysis of the purchased consumer loans portfolio used in the ACL calculation was enhanced, transitioning from a lifetime analysis to a month-over-month analysis. The resulting Other Consumer loans prepayment speed forecast dropped from 16.8 % to 10.1 % and resulted in a $ 1.3 million increase in the quantitative value of the Other Consumer Loans ACL.

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Measurement of credit loss is based on the expected future cash flows of an individually evaluated loan, discounted at the loan's effective interest rate, or measured on an observable market value, if one exists, or the estimated market value of the collateral underlying the loan, discounted to consider estimated costs to sell the collateral for collateral-dependent loans. For enterprise value loans within the commercial and industrial loan portfolio, management relies on a standardized set of valuation methodologies that take into account future projected cash flows, market-based multiples, as well as, asset values. Valuations involve both quantitative and qualitative considerations and professional judgements concerning differences in financial and operating characteristics in addition to other factors that may impact value over time. If the net value is less than the loan's amortized cost, a specific reserve in the ACL is recorded, which is charged-off in the period when management believes the loan balance is no longer collectible.

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● Commercial and industrial loans may be secured by non-real estate collateral such as accounts receivable, inventory, equipment, or other similar assets. Enterprise value is defined as imputed value for the entire underlying business. To determine an appropriate range of enterprise value, management relies on a standardized set of valuation methodologies that take into account future projected cash flows, market-based multiples, as well as and asset values. Valuations involve both quantitative and qualitative considerations and professional judgments concerning differences in financial and operating characteristics in addition to other factors that may impact values over time.

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● Consumer loans are generally secured by boat boats and recreational vehicles, automobiles, solar panels and other personal property. Some consumer loans are unsecured, have no underlying collateral, and would not be considered collateral-dependent.

● Warehouse loans are primarily facility lines to non-bank mortgage origination companies. The underlying collateral of these loans are consist of residential real estate loans.

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During the three and six months ended June 30, 2026, the Company purchased approximately $ 15.5 million and $ 30.2 million of consumer loan pools, respectively. During the three months ended June 30, 2025, the Company did no t purchase any consumer loan pools. During the six months ended June 30, 2025, the Company purchased approximately $ 14.4 million of consumer loan pools. The loans purchased during the three and six months ended June 30, 2026 and the six months ended June 30, 2025 included loan pools collateralized by automobiles.

Included in the above are approximately $ 542.4 576.3 million and $ 404.8 million in loans to borrowers in the cannabis industry at June September 30, 2026 and December 31, 2025, respectively. Of those totals, $ 374.2 401.3 million and $ 228.8 million were direct loans to cannabis companies and were collateralized by real estate at June September 30, 2026 and December 31, 2025, respectively.

During the three and nine months ended September 30, 2026, the Company purchased approximately $ 15.0 million and $ 45.2 million of consumer automobile loan pools, respectively.

During the three and nine months ended September 30, 2025, the Company purchased approximately $ 20.3 million and $ 34.7 million of consumer automobile loan pools, respectively.

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The carrying value of loans pledged to secure advances from the FHLB were $ 1.16 1.03 billion and $ 1.56 billion as of June September 30, 2026 and December 31, 2025, respectively.

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During the three and six nine months ended June September 30, 2026, the Company reversed $ 120,000 295,000 and $ 604,000 890,000 of interest income for loans that were placed on non-accrual, respectively. During the three and six nine months ended June September 30, 2025, the Company reversed $ 457,000 82,000 and $ 494,000 288,000 of interest income for loans that were placed on non-accrual, respectively.

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The following table presents the amortized cost of loans receivable by internal risk grade by year of origination as of June September 30, 2026. Also presented are current period gross charge-offs by loan type and vintage year for the three months ended June September 30, 2026:

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(1) Consumer loans are not formally risk rated and included $ 1.7 1.0 million of loans on non-accrual as of June September 30, 2026.

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Balance at March 31, 2026

Provision for (release of) credit losses

Recoveries of loans previously charged-off

For the Three Months Ended June September 30, 2026

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For the Three Months Ended June 30, 2025

Balance at March 31, 2025

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Balance at September 30, 2026

For the Three Months Ended September 30, 2025

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For the Six Months Ended June 30, 2026

Provision for (release of) credit losses

Recoveries of loans previously charged-off

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and 102 more changes in the filing

MD&A 1 change

Management's discussion and analysis of the financial condition and results of operations at and for the three and six nine months ended June 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.

Forward-looking statements 114 changes

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● changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission SEC or the Public Company Accounting Oversight Board;

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For the Six Nine Months Ended

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Contract settlement fees

Defined benefit pension termination (refund) expense

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State tax expense - voluntary disclosure agreements

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Contract settlement fees

Defined benefit pension termination expense (refund)

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Net interest income (GAAP)

Adjustments to net interest income:

Purchase accounting adjustments

Total impact of non-GAAP net interest income adjustments

Net interest income, excluding purchase accounting adjustments (non-GAAP)

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Contract settlement fees

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For the Three Months Ended

For the Nine Months Ended

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Noninterest expense on an operating basis (non-GAAP)

Operating noninterest expense (non-GAAP)

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State tax expense - voluntary disclosure agreements

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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.

● Non-recurring fees for business line expansion of $649,000 ($499,000 net of tax);

● Final merger and acquisition costs of $296,000 ($227,000 net of tax) related to the Company's acquisition of Provident; and

● Tax expense and a modified endowment contract penalty of $27,000 related to the surrender of BOLI policies acquired from BankProv.

● Income tax expense and a modified endowment contract penalty of $64,000 related to the surrender of BOLI policies.

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.

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.

Comparison of Financial Condition as of June September 30, 2026 and December 31, 2025

Total Assets. Total assets increased $440.5 $677.6 million, or 6.3%, 9.7%, to $7.45 $7.68 billion as of June September 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 and deferred tax assets, offset partially by decreases in cash and cash equivalents. and BOLI.

Cash and Cash Equivalents. Cash and cash equivalents decreased $7.7 $141.8 million, or 1.9%, 34.8%, to $400.2 $266.1 million as of June 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 six nine months ended June September 30, 2026.

Available-for-Sale Securities. Available-for-sale securities increased $3.7 $10.6 million, or 1.4%, 3.9%, to $272.6 $279.5 million as of June September 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.

Loans. Net loans increased $442.1 $788.8 million, or 7.5%, 13.4%, to $6.34 $6.69 billion as of June 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 $197.5 $380.7 million, or 10.3%; 19.8%; commercial and industrial loans, which increased $140.1 $129.7 million, or 13.9%; 12.9%; construction and land development loans, which increased $115.9 million, or 15.9%; residential real estate loans, including home equity loans, of $56.5 which increased $100.0 million, or 4.3%; 7.5%; multi-family loans, of $50.2 million, or 9.7%; construction and land development loans of $35.1 which increased $67.4 million, or 4.8%; 13.0%; and consumer loans, of $23.3 which increased $32.3 million, or 11.4%, 15.9%, partially offset by a decrease in mortgage warehouse loans of $63.3 $42.9 million, or 22.5%. 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 and manage while managing interest rate risk.

Loans to borrowers in the cannabis loan industry increased $137.6 $171.5 million, or 34.0%, 42.4%, to $542.4 $576.3 million as of June September 30, 2026 from $404.8 million as of December 31, 2025. Of those totals, $374.2 $401.3 million and $228.8 million at June September 30, 2026 and December 31, 2025, respectively, were direct loans to cannabis companies and were collateralized by real estate.

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.

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.

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.

Deposits. Deposits increased $466.3 $667.6 million, or 8.0%, 11.4%, to $6.32 $6.52 billion as of June 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 $282.1 $510.6 million, or 5.3%, 9.6%, to $5.60 $5.83 billion as of June 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 $125.4 $170.2 million, or 15.2%; 20.6%; money market accounts, which increased $126.8 million, or 7.7%; NOW accounts, which increased $92.1 $107.2 million, or 13.9%; 16.2%; and customer certificates of deposit, which increased $59.0 $94.3 million, or 4.9%. 4.8%. Brokered deposits increased $184.2 $156.9 million, or 34.4%, 29.3%, to $719.9 $692.6 million as of June September 30, 2026 from $535.7 million as of December 31, 2025.

Deposits from customers in the cannabis industry increased $69.1 $122.1 million, or 15.2%, 26.9%, to $522.1 $575.1 million as of June September 30, 2026 from $453.0 million as of December 31, 2025.

FHLB Borrowings. FHLB borrowings decreased $15.0 $45.9 million, or 7.6%, 23.4%, to $181.2 $150.3 million as of June September 30, 2026 from $196.2 million as of December 31, 2025, primarily driven by deposit growth outpacing loan growth. paydowns of FHLB borrowings and increased usage of brokered deposits.

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.

Shareholders' Equity. Total shareholders' equity decreased $16.9 $1.5 million, or 2.0%, 0.2%, to $842.0 $857.4 million as of June September 30, 2026 from $858.9 million as of December 31, 2025, due to the $43.0 $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 six nine months ended June September 30, 2026 at an all-in weighted average cost of $20.96 per share totaling $46.3 million, together with a $4.8 $12.2 million, or 153.9%, 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 $36.1 $59.2 million during the six nine months ended June September 30, 2026.

Comparison of Operating Results for the Three Months Ended June September 30, 2026 and 2025

Net Income. Net income increased $6.5 $7.8 million, or 44.9%, 50.6%, to $21.1 $23.1 million, or $0.53 $0.58 per diluted common share, for the quarter ended June September 30, 2026, compared to net income of $14.6 $15.4 million, or $0.39 $0.43 per diluted common share, for the quarter ended June September 30, 2025. Net interest income increased $22.1 $23.3 million, or 47.1%, 48.3%, and noninterest income increased $1.3 $1.4 million, or 29.9%, 38.6%, partially offset by increased noninterest expense of $14.6 $15.8 million, or 49.7%, 51.7%, and increased income tax expense of $2.2 $1.3 million, or 53.9%. 27.9%.

Operating net income, excluding one-time charges, amounted to $21.9 $23.8 million, or $0.55 $0.60 per basic and diluted common share for the quarter ended June September 30, 2026 compared to operating net income, excluding one-time charges, of $15.0 $16.0 million, or $0.40 $0.45 per basic and diluted common share, for the quarter ended June September 30, 2025, which represents an increase of $6.8 $7.8 million, or 45.4%. 48.9%.

The material one-time charges for the quarter ended June September 30, 2026 were:

● Contract settlement fees of $871,000 ($695,000 net of tax).

The material one-time charges for the quarter ended June September 30, 2025 were:

● Merger and acquisition costs of $530,000 ($400,000 $994,000 ($766,000 net of tax) related to the Company's acquisition of Provident; and

● State voluntary disclosure agreement tax expenses of $561,000 ($443,000 net of federal income tax) for new state income tax expenses; partially offset by

● Defined benefit pension termination refund of $739,000 ($569,000 net of tax).

Interest and Dividend Income. Interest and dividend income increased $31.9 $34.5 million, or 40.0%, 42.2%, to $111.8 $116.2 million for the quarter ended June September 30, 2026 from $79.8 $81.7 million for the quarter ended June September 30, 2025, primarily due to increased interest and fees on loans of $31.9 $33.4 million, or 42.6%. 43.1%. The increase in interest and fees on loans was primarily due to an increase of $1.90 $1.99 billion, or 42.4%, 43.1%, in the average balance of the loan portfolio to $6.38 $6.60 billion for the quarter ended June September 30, 2026 from $4.48 $4.61 billion for the quarter ended June September 30, 2025, reflecting both the Provident acquisition, which was completed on November 14, 15, 2025, and the growth of our commercial and construction loan portfolios.

Average interest-earning assets increased $1.99 $2.09 billion, or 40.2%, 41.2%, to $6.93 $7.15 billion for the quarter ended June September 30, 2026 from $4.94 $5.06 billion for the quarter ended June September 30, 2025. The yield on interest-earning assets decreased 1 increased 4 basis point points to 6.47% 6.45% for the quarter ended June September 30, 2026 from 6.48% 6.41% for the quarter ended June September 30, 2025.

Interest and dividend income included $2.0 $2.6 million of fair value mark accretion related to the acquisition of Provident, representing 1.8% 3.8%, or 5 15 basis points, of net interest margin, during the three months ended June September 30, 2026. The Company recorded no fair value mark accretion during the three months ended June September 30, 2025, as the acquisition of Provident closed on November 15, 2025.

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 $9.0 $11.6 million, or 28.4%, 37.2%, to $40.7 $42.9 million for the quarter ended June September 30, 2026 from $31.7 $31.3 million for the quarter ended June 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 $629.6 $749.2 million, or 32.0%, 38.7%, to $2.59 $2.68 billion for the quarter ended June September 30, 2026 from $1.96 $1.93 billion for the quarter ended June September 30, 2025; and an increase in the average balance of money market accounts of $610.2 $616.3 million, or 56.0%, 55.1%, to $1.70 $1.74 billion for the quarter ended June September 30, 2026 from $1.09 $1.12 billion for the quarter ended June 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 42 28 basis points to 3.91% 3.89% for the quarter ended June September 30, 2026 from 4.34% 4.18% for the quarter ended June September 30, 2025.

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.

Net Interest Income. Net interest income increased $22.1 $23.3 million, or 47.1%, 48.3%, to $69.1 $71.4 million for the quarter ended June September 30, 2026 from $47.0 $48.2 million for the quarter ended June September 30, 2025, primarily due to a $1.99 $2.09 billion, or 40.2%, 41.2%, increase in the average balance of interest-earning assets to $6.93 $7.15 billion for the quarter ended June September 30, 2026 from $4.94 $5.06 billion for the quarter ended June September 30, 2025 and a decrease in the weighted average rate on interest-bearing liabilities of 36 28 basis points to 3.16% 3.18% for the quarter ended June September 30, 2026 from 3.52% 3.46% for the quarter ended June September 30, 2025. These increases were partially offset by an increase in the average balance of interest-bearing liabilities of $1.67 $1.74 billion, or 44.5%, 45.4%, to $5.42 $5.59 billion at June September 30, 2026 from $3.75 $3.84 billion at June September 30, 2025.

Provision for Credit Losses. Based on management's analysis of the adequacy of the ACL, a provision of $3.2 $1.2 million was recorded for the quarter ended June September 30, 2026, of which $3.0 $1.4 million related to the provision for credit losses on loans, compared to a provision of $3.2 $1.4 million for the quarter ended June September 30, 2025, which included a $4.2 $1.0 million provision for credit losses on loans. The decrease increase 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 loan growth, charge-off replenishment and higher C&I impaired reserves. lower prepayment speed forecasts updated with rising interest rates. The provision for credit losses on unfunded commitments increased $1.2 million decreased $500,000 during the three months ended June September 30, 2026 as a result of an increase in unfunded commitments during the quarter ended June 30, 2026. commercial and industrial drawdowns and credit line reductions.

Noninterest Income. Noninterest income increased $1.3 $1.4 million, or 29.9%, 38.6%, to $5.6 $5.1 million for the quarter ended June September 30, 2026 from $4.3 $3.7 million for the quarter ended June September 30, 2025. The increase resulted primarily from increased customer service fees of $1.1 $1.0 million, or 44.1%, 40.3%, due to higher cash management, loan and debit card fees.

The table below sets forth our noninterest income for the quarters three months ended June September 30, 2026 and 2025:

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(Loss) gain on sale of loans, net

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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.

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.

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.

The table below sets forth our noninterest expense for the quarters three months ended June September 30, 2026 and 2025:

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Core deposit intangible amortization expense

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Income Tax Expense. Income tax expense increased $2.2 $1.3 million, or 53.9%, 27.9%, to $6.4 $5.9 million for the quarter ended June September 30, 2026 from $4.1 $4.6 million for the quarter ended June 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 23.2% 20.3% and 22.1% 23.0% for the quarters ended June September 30, 2026 and 2025, respectively. The increase decrease in the effective tax expense rate was from higher pre-tax driven by investment in two income tax credit entities, as well as the purchase of low-income housing tax credits during the quarter ended June September 30, 2026. compared to June 30, 2025.

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Average interest-earning assets to interest-bearing liabilities (2) (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.

(3) (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) (3) Net interest margin represents net interest income divided by average total interest-earning assets.

(6) (5) Other investments are comprised of Federal Reserve Bank FRB stock, FHLB stock and swap collateral accounts. Short-term investments are comprised of cash and cash equivalents

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June September 30, 2026 vs. 2025

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Federal Home Loan Bank advances

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● Defined benefit pension termination expenses of $1.2 million ($917,000 net of tax);

Comparison of Operating Results for the Six Nine Months Ended June September 30, 2026 and 2025

Net Income. Net income increased approximately $8.9 $16.6 million, or 32.6%, 39.1%, to $36.1 $59.2 million, or $0.90 $1.47 per diluted common share, for the six nine months ended June September 30, 2026, compared to net income of $27.2 $42.6 million, or $0.72 $1.14 per diluted common share, for the six nine months ended June September 30, 2025. The increase was primarily due to increased net interest income of $43.5 $66.7 million, or 48.0%, 48.1%, partially offset by increased noninterest expense of $28.6 $44.1 million, or 49.3%, 49.6%, and increased provision for credit losses of $5.2 $5.1 million, or 120.4%. 88.4%.

Operating net income, excluding one-time charges, amounted to $37.7 $61.5 million, or $0.94 $1.52 per diluted common share, for the six nine months ended June September 30, 2026 compared to operating net income, excluding one-time charges, of $28.7 $44.7 million, or $0.76 $1.20 per diluted common share, for the six nine months ended June September 30, 2025, an increase of $8.9 $16.8 million, or 31.1%. 37.5%.

The material one-time charges for the six nine months ended June September 30, 2026 were:

● Contract settlement fees of $871,000 ($671,000 net of tax);

● Non-recurring fees for business line expansion of $1.2 million ($867,000 ($885,000 net of tax);

● Final merger and acquisition costs of $830,000 ($626,000 ($639,000 net of tax) related to the Company's completed acquisition of Provident; and

● Tax expense and a modified endowment contract penalty of $77,000 $78,000 related to the surrender of BOLI policies acquired from Provident.

The material one-time charges for the six nine months ended June September 30, 2025 were:

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and 34 more changes in the filing

Controls and procedures 2 changes

An evaluation was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of June September 30, 2026. Based on that evaluation, the Company's management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Registrant's disclosure controls and procedures were effective.

During the three months ended June September 30, 2026, there have been no changes in the Company's internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Unregistered sales of stock 10 changes

Total Number of Shares

Maximum Number of Shares

Purchased as Part of the

Share Repurchase Program

Share Repurchase Program (2)

April 1 - April 30, 2026

May 1 - May 31, 2026

June 1 - June 30, 2026

(1) Includes commissions paid and excise tax.

(2) On May 13, 2026, the Company completed this stock repurchase plan.

Exhibits 4 changes

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Date: August 7, 2026

Date: November 4, 2026

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Date: August 7, 2026

Date: November 4, 2026

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