$NARA

Narragansett Bancorp, Inc.

CIK:0002138186|SEC Filings

Consolidated Statements of Net Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest and dividend income:
Interest and fees on loans	$ 31,880	$ 33,162	$ 63,363	$ 65,629
Interest on debt securities	3,005	2,258	5,788	4,306
Dividend income	118	232	232	492
Interest on cash and cash equivalents	141	394	182	810
Total interest and dividend income	35,144	36,046	69,565	71,237
Interest expense:
Interest on deposits	11,175	12,915	22,576	25,921
Interest on borrowings	873	2,515	2,150	5,268
Interest on subordinated debt	1,722	1,917	3,299	3,821
Total interest expense	13,770	17,347	28,025	35,010
Net interest income	21,374	18,699	41,540	36,227
Provision for credit losses	800	2,010	2,500	3,900
Net interest income, after provision for credit losses	20,574	16,689	39,040	32,327
Other income:
Customer service fees	2,781	2,610	5,519	5,114
Net loan servicing (expense) fee income	(148)	30	(1,100)	157
Trust department fees	1,620	1,475	3,255	2,961
Insurance and brokerage commissions	3,703	3,839	7,773	7,874
Gain (loss) on securities available for sale, net	0	(20)	203	(20)
Gain (loss) on marketable equity securities	130	(36)	189	(51)
Loss on sales of portfolio loans	(323)	(300)	(776)	(827)
Mortgage banking income	4,456	4,715	9,174	8,127
Bank-owned life insurance income	1,440	969	1,320	1,005
Miscellaneous	280	1,382	686	1,591
Total other income	13,939	14,664	26,243	25,931
Operating expenses:
Salaries and employee benefits	20,797	18,886	39,862	36,100
Occupancy and equipment	3,562	3,419	7,679	7,112
Professional fees	839	779	1,668	1,551
Data processing	1,270	1,105	2,458	2,289
Advertising costs	609	540	1,217	1,179
Deposit insurance	703	659	1,400	1,386
Amortization of intangible assets	162	258	325	505
Other general and administrative	2,601	2,931	5,190	5,588
Total operating expenses	30,543	28,577	59,799	55,710
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total	3,970	2,776	5,484	2,548
Provision for income taxes	500	522	766	417
Net income	$ 3,470	$ 2,254	$ 4,718	$ 2,131

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 4,718,000	$ 2,131,000
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Net amortization of securities available for sale	(698,000)	(276,000)
(Gain) loss on securities available for sale, net	(203,000)	20,000
(Gain) loss on marketable equity securities, net	(189,000)	50,000
Loss on sales of portfolio loans	776,000	827,000
Provision for credit losses	2,500,000	3,900,000
Mortgage servicing rights capitalized	(3,807,000)	(2,663,000)
Amortization of mortgage servicing rights	2,855,000	1,590,000
Increase in valuation allowance of mortgage servicing rights	300,000
Depreciation and amortization of premises and equipment and intangible assets	2,272,000	2,335,000
Bank-owned life insurance income	(1,320,000)	(1,006,000)
Losses from equity method investments	12,000	12,000
Deferred tax benefit	(700,000)	(167,000)
Net change in:
Loans held for sale	1,226,000	(8,499,000)
Accrued interest receivable	105,000	(172,000)
Other assets and other liabilities	3,278,000	1,871,000
Net cash provided (used) by operating activities	11,125,000	(47,000)
Securities available for sale:
Proceeds from sales	26,905,000	10,914,000
Proceeds from calls/maturities and principal payment	33,564,000	13,974,000
Purchases	(80,449,000)	(50,330,000)
Purchase of FHLB stock	(18,112,000)	(592,000)
Redemption of FHLB stock	18,816,000	3,045,000
Purchase of bank-owned life insurance	(1,064,000)	(1,242,000)
Proceeds from sales of portfolio loans	81,008,000	54,206,000
Loan originations, net of amortization and payoffs	(67,776,000)	(52,851,000)
Additions to premises and equipment	(2,173,000)	(1,773,000)
Proceeds from the disposal of premises and equipment	59,000	22,000
Net change in equity method investments	(255,000)	(224,000)
Net cash used by investing activities	(9,477,000)	(24,851,000)
Cash flows from financing activities:
Net change in non-brokered deposits	25,154,000	130,240,000
Net change in brokered deposits		(22,852,000)
Net change in short term borrowings	(12,573,000)	(39,000)
Repayment of long-term debt		(80,000,000)
Proceeds from long-term debt		20,000,000
Net cash provided by financing activities	12,581,000	47,349,000
Net change in cash and cash equivalents	14,229,000	22,451,000
Cash and cash equivalents at beginning of year	38,519,000	75,957,000
Cash and cash equivalents at end of year	52,748,000	98,408,000
Supplemental cash flow information:
Interest paid on deposits	22,597,000	26,025,000
Interest paid on borrowings and subordinated debt	5,255,000	9,385,000
Income taxes paid, net	1,325,000	1,383,000
Non-cash activities
Right of use assets obtained in exchange for lease liabilities	$ 179,000	$ 2,000

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and cash equivalents	$ 52,748	$ 38,519
Securities available for sale, at fair value (cost of $366,074 and $345,192, respectively)	359,819	342,292
Marketable equity securities, at fair value	2,378	2,188
Federal Home Loan Bank stock, at cost	5,082	5,787
Loans held for sale, at fair value	20,036	21,262
Loans, net of allowance for credit losses of $30,254 at June 30, 2026 and $29,078 at December 31, 2025	2,219,766	2,236,274
Mortgage servicing rights, net	14,644	13,991
Bank-owned life insurance	43,346	40,962
Premises and equipment, net	40,869	40,701
Accrued interest receivable	9,929	10,034
Net deferred tax asset	7,460	5,841
Goodwill and other intangible assets	27,861	28,186
Equity method investments	14,439	14,196
Right of use lease asset	9,603	10,041
Other assets	46,505	48,302
Total assets	2,874,485	2,858,576
Liabilities and Retained Earnings
Non-interest bearing deposits	435,538	394,297
Interest bearing deposits	2,012,922	2,029,009
Short-term borrowings	85,000	97,533
Long-term borrowings	490	530
Subordinated debt	94,737	94,578
Lease liability	9,830	10,257
Other liabilities	46,772	45,526
Total liabilities	2,685,289	2,671,730
Retained earnings	194,113	189,395
Accumulated other comprehensive loss	(4,917)	(2,549)
Total retained earnings	189,196	186,846
Total liabilities and retained earnings	$ 2,874,485	$ 2,858,576