Announces Results for the Quarter Ended September 30, 2026

Narragansett Bancorp, Inc. Announces Results for the Quarter Ended September 30, 2026 Investor Contact Marie Pellegrino President IR@baycoastbank.com 888-806-2872 SWANSEA, MA, October 27, 2026- Narragansett Financial Corporation (the "Company"), the parent company of BayCoast Bank, today announced its third quarter financial results. Following completion of the pending reorganization and related stock offering, Narragansett Bancorp, Inc. will become the consolidated reporting entity. The Company reported net income of $4.4 million, compared to net income of $3.5 million for the prior quarter, an increase of $954,000. The increase is attributed to a $1.4 million increase in net interest income, a $1.1 million decrease in provision for credit losses and a $562,000 decrease in operating expenses, partially offset by a $1.2 million decrease in non-interest income and a $929,000 increase in provision for income taxes. BALANCE SHEET • Total assets were $2.96 billion at September 30, 2026, representing an increase of $87.9 million, or 3.1%, from the prior quarter. • Total cash and cash equivalents were $98.0 million on September 30, 2026, representing an increase of $45.2 million, or 85.8%, from the prior quarter. The increase was due to proceeds from our minority stock offering that were being held in escrow pending the completion of the offering. • Investment securities totaled $390.2 million at September 30, 2026, representing an increase of $30.4 million, or 8.4%. • Gross loans were $2.3 billion on September 30, 2026, representing an increase of $21.6 million or 1.0% from the prior quarter as demand for new originations continued. The main driver of the new growth was in home equity loans and lines of credit and residential real estate loans, which increased $39.6 million and $7.0 million, respectively. This increase was partially offset by a $14.6 million decrease in consumer loans and an $11.3 million decrease in commercial and multi-family loans. • Deposits totaled $2.6 billion on September 30, 2026, representing an increase of $125.6 million, or 5.1% from the prior quarter. Demand deposits increased $105.7 million from the prior quarter due to proceeds from the minority stock offering being held in escrow. Money market accounts increased $32.7 million and interest-bearing accounts increased $9.7 million, partially offset by a $22.2 million decrease in certificates of deposit. • FHLB borrowings totaled $45.5 million on September 30, 2026, representing a decrease of $40.0 million, or 46.8% from the prior quarter, due to our improved liquidity position. • Subordinated debt was $94.8 million at September 30, 2026, representing an increase of $206,000, or 0.22%, from the prior quarter. • Retained earnings were $187.4 million on September 30, 2026, which represents a decrease of $1.8 million from the prior quarter. Net income of $4.4 million was offset by a $6.2 million increase in accumulated other comprehensive losses, primarily driven by unrealized losses in the U.S. Treasury portfolio resulting from higher market interest rates during the quarter. NET INTEREST INCOME • Net interest income was $22.8 million for the three months ended September 30, 2026, compared to $21.4 million for the prior quarter, representing an increase of $1.4 million, or 6.7%. Net interest income was $19.5 million for the same period last year, representing an increase of $3.3 million, or 16.8%. • Net interest margin was 3.42% for the three months ended September 30, 2026, which represents a 21 basis point improvement from the prior quarter. Compared to the same quarter last year, net interest margin has expanded by 55 basis points. • The increase in interest income during the three months ended September 30, 2026, was primarily attributable to increases in loan and investment securities yields, partially offset by decreases in the average balance of loans and investment securities. • Interest expense for the three months ended September 30, 2026, was consistent with the prior quarter. Total average deposits increased, as well as the yield on subordinated debt; however, this was partially offset by a decrease in the average balance of other borrowings. PROVISION FOR CREDIT LOSS & ASSET QUALITY • Provision for credit loss decreased by $1.1 million from the prior quarter due to an improvement in asset quality. A benefit of $250,000 was recorded during the third quarter of 2026 due to a decrease in the allowance on individually evaluated loans. • The allowance for credit losses to total loans was 1.31% as of September 30, 2026, compared to 1.34% as of June 30, 2026 and 1.36% as of September 30, 2025. • Non-performing loans as a percentage of total loans was 1.55% as of September 30, 2026, compared to 1.90% as of June 30, 2026. The decrease was due to a commercial real estate loan and a commercial loan in the amounts of $6.0 million and $1.1 million, respectively, that paid off during the third quarter. • Non-performing loans as a percentage of total loans was 0.28% as of September 30, 2025. The increase in non-performing loans when compared to September 30, 2025, was due to four commercial real estate loans and one commercial loan, with total balances of $35.8 million, being placed on non-accrual status. All four loans were performing as of September 30, 2026. NON-INTEREST INCOME • Non-interest income was $12.8 million for the quarter ended September 30, 2026, a decrease of $1.2 million from the prior quarter. • Bank owned life insurance income decreased $1.4 million during the quarter due to market-related changes in the value of assets associated with the non-qualified deferred compensation plan. • Mortgage banking income decreased $328,000 during the quarter due to a decrease in loan sale volume. • These decreases were partially offset by a $436,000 increase in gain (loss) on portfolio loans due to more favorable pricing on private investor sales and a $249,000 increase in net loan servicing fee (expense) income due to a decrease in mortgage servicing rights amortization. NON-INTEREST EXPENSE • Non-interest expense was $30.0 million for the quarter ended September 30, 2026, a $562,000 decrease from the prior quarter. • Salaries and employee benefits decreased $1.2 million during the quarter due to lower deferred compensation attributed to market fluctuations in the non-qualified deferred compensation plan, partially offset by an increase in bonus expense. • Other general and administrative expenses increased $665,000 during the quarter due primarily to a significant one-time charitable donation. PROVISION FOR INCOME TAX • Income tax expense increased by $929,000 for the quarter ended September 30, 2026, due to a decrease in tax- exempt income. The effective tax rates were 24.4% and 12.6% for the quarter ended September 30, 2026 and June 30, 2026, respectively. The effective tax rate for each period was below the statutory rate due to tax-exempt income. ABOUT BAYCOAST BANK. Originally chartered in 1851, BayCoast Bank is a Massachusetts-chartered stock savings bank that operates from its main office and 26 full-service branch banking offices in the South Coast of Massachusetts and the State of Rhode Island, as well as two loan production offices in Massachusetts and Rhode Island. BayCoast Bank’s deposits are insured in full beyond federal deposit insurance coverage limits by the Depositors Insurance Fund. Selected Financial Data (unaudited) At or For the Three Months Ended At or For the Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 Financial Condition Data: (Dollars in Thousands) Loans, net of allowance for credit losses $ 2,242,028 $ 2,219,766 $ 2,252,679 $ 2,242,028 $ 2,252,679 Total assets 2,962,416 2,874,485 2,874,964 2,962,416 2,874,964 Deposits 2,574,083 2,448,460 2,435,202 2,574,083 2,435,202 Total retained earnings 187,391 189,196 179,075 187,391 179,075 Performance Ratios: Return on average assets (1) 0.60 % 0.48 % 0.41 % 0.42 % 0.14 % Return on average equity (1) 9.32 % 7.41 % 2.35 % 6.52 % 2.44 % Interest rate spread (2) 3.03 % 2.80 % 2.44 % 2.79 % 2.29 % Net interest margin (1)(3) 3.42 % 3.21 % 2.87 % 3.20 % 2.72 % Noninterest expense to average assets (1) 4.08 % 4.25 % 4.01 % 4.14 % 3.88 % Efficiency ratio (4) 84.25 % 86.49 % 90.70 % 86.85 % 89.99 % Average interest-earning assets to average interest-bearing liabilities 121.57 % 121.07 % 120.02 % 121.13 % 118.47 % Loans to deposits ratio 88.40 % 92.05 % 93.94 % 88.40 % 93.94 % Capital Ratios: Average equity to average assets 6.58 % 6.56 % 6.10 % 6.55 % 5.96 % Asset Quality Ratios: Allowance for credit losses on loans as a percentage of total loans 1.31 % 1.34 % 1.36 % 1.31 % 1.36 % Allowance for credit losses on loans as a percentage of non-performing loans 84.85 % 70.78 % 480.80 % 84.85 % 480.80 % Net (charge-offs) recoveries to average outstanding loans during the period (1) (0.03 )% (0.16 )% (0.09 )% (0.09 )% (0.08 )% Non-performing loans as a percentage of total loans 1.55 % 1.90 % 0.28 % 1.55 % 0.28 % Non-performing loans as a percentage of total assets 1.19 % 1.49 % 0.23 % 1.19 % 0.23 % Total non-performing assets as a percentage of total assets 1.19 % 1.49 % 0.23 % 1.19 % 0.23 % (1) Annualized for the three-month and nine-month periods. (2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (3) Represents net interest income as a percentage of average interest-earning assets. (4) Represents operating expenses divided by the sum of net interest income and other income. Consolidated Balance Sheets (Unaudited) September 30, 2026 June 30, 2026 December 31, 2025 September 30, 2025 (In thousands) Assets Cash and cash equivalents $ 97,987 $ 52,748 $ 38,519 $ 55,776 Securities available for sale, at fair value 390,202 359,819 342,292 334,465 Marketable equity securities, at fair value 2,427 2,378 2,188 2,107 Federal Home Loan Bank stock, at cost 3,389 5,082 5,787 5,441 Loans held for sale, at fair value 10,559 20,036 21,262 18,210 Loans, net of allowance for credit losses of $29,843 at September 30, 2026, $30,254 at June 30, 2026, $29,078 at December 31, 2025 and $31,116 at September 30, 2025 2,242,028 2,219,766 2,236,274 2,252,679 Mortgage servicing rights, net 14,662 14,644 13,991 14,614 Bank-owned life insurance 43,402 43,346 40,962 40,583 Premises and equipment, net 40,598 40,869 40,701 40,942 Accrued interest receivable 10,266 9,929 10,034 9,839 Net deferred tax asset 9,576 7,460 5,841 8,653 Goodwill and other intangible assets 27,699 27,861 28,186 28,444 Equity method investments 14,447 14,439 14,196 13,853 Right of use lease asset 9,331 9,603 10,041 10,332 Other assets 45,843 46,505 48,302 39,026 Total assets $ 2,962,416 $ 2,874,485 $ 2,858,576 $ 2,874,964 Liabilities and Retained Earnings Non-interest bearing deposits $ 541,193 $ 435,538 $ 394,297 $ 412,970 Interest bearing deposits 2,032,890 2,012,922 2,029,009 2,022,232 Short-term borrowings 45,157 85,000 97,533 95,000 Long-term borrowings 313 490 530 550 Subordinated debt 94,784 94,737 94,578 109,482 Lease liability 9,566 9,830 10,257 10,536 Other liabilities 51,122 46,772 45,526 45,119 Total liabilities 2,775,025 2,685,289 2,671,730 2,695,889 Retained earnings 198,538 194,113 189,395 186,582 Accumulated other comprehensive loss (11,147 ) (4,917 ) (2,549 ) (7,507 ) Total retained earnings 187,391 189,196 186,846 179,075 Total liabilities and retained earnings $ 2,962,416 $ 2,874,485 $ 2,858,576 $ 2,874,964 Consolidated Statements of Net Income (Unaudited) Three Months Ended Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 (In thousands) Interest and dividend income: Interest and fees on loans $ 33,061 $ 31,880 $ 33,057 $ 96,423 $ 98,686 Interest on debt securities 3,421 3,005 2,484 9,209 6,790 Dividend income 99 118 210 331 703 Interest on cash and cash equivalents 183 141 586 365 1,397 Total interest and dividend income 36,764 35,144 36,337 106,328 107,576 Interest expense: Interest on deposits 11,480 11,175 12,852 34,057 38,773 Interest on borrowings 601 873 2,053 2,750 7,322 Interest on subordinated debt 1,886 1,722 1,917 5,185 5,738 Total interest expense 13,967 13,770 16,822 41,992 51,833 Net interest income 22,797 21,374 19,515 64,336 55,743 (Benefit) provision for credit losses (250 ) 800 1,860 2,250 5,760 Net interest income, after (benefit) provision for credit losses 23,047 20,574 17,655 62,086 49,983 Other income: Customer service fees 2,790 2,781 2,736 8,309 7,850 Net loan servicing (expense) fee income 101 (148 ) (419 ) (999 ) (262 ) Trust department fees 1,693 1,620 1,550 4,948 4,512 Insurance and brokerage commissions 3,617 3,703 3,205 11,390 11,079 Gain (loss) on securities available for sale, net 3 — — 206 (20 ) Gain on marketable equity securities 49 130 118 238 68 Gain (loss) on sales of portfolio loans 113 (323 ) (1,038 ) (663 ) (1,865 ) Mortgage banking income 4,128 4,456 5,741 13,302 13,868 Bank-owned life insurance income 55 1,440 737 1,375 1,743 Miscellaneous 238 280 499 924 2,088 Total other income 12,787 13,939 13,129 39,030 39,061 Operating expenses: Salaries and employee benefits 19,604 20,797 18,830 59,465 54,930 Occupancy and equipment 3,659 3,562 3,504 11,338 10,616 Professional fees 810 839 814 2,478 2,365 Data processing 1,243 1,270 1,148 3,701 3,436 Advertising costs 560 609 532 1,777 1,711 Deposit insurance 677 703 671 2,077 2,056 Amortization of intangible assets 162 162 258 487 763 Other general and administrative 3,266 2,601 3,852 8,456 9,442 Total operating expenses 29,981 30,543 29,609 89,779 85,319 Income before income taxes 5,853 3,970 1,175 11,337 3,725 Provision for income taxes 1,429 500 112 2,195 539 Net income $ 4,424 $ 3,470 $ 1,063 $ 9,142 $ 3,186 Average Balances and Yields (unaudited) Average Balances Average Yield/Rate(1) For the Three Months Ended For the Three Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 June 30, 2026 September 30, 2025 (Dollars in thousands) Interest-earning assets: Loans $ 2,266,552 $ 2,278,673 $ 2,316,795 5.83 % 5.60 % 5.71 % Debt securities 351,187 354,823 328,664 3.90 % 3.39 % 3.02 % Equity securities and mutual funds 5,488 6,669 10,564 7.21 % 7.09 % 7.99 % Cash equivalents 40,823 26,880 64,543 1.76 % 2.08 % 3.55 % Total interest-earning assets 2,664,050 2,667,045 2,720,566 5.52 % 5.27 % 5.34 % Noninterest-earning assets 236,643 201,110 198,982 Total assets $ 2,900,693 $ 2,868,155 $ 2,919,548 Interest-bearing liabilities: NOW accounts $ 378,600 $ 389,967 $ 369,531 1.16 % 1.22 % 1.33 % Savings accounts 286,841 290,338 291,606 0.19 % 0.20 % 0.22 % Money market accounts 900,355 853,484 781,411 2.93 % 2.91 % 3.36 % Certificates of deposit 470,449 485,383 532,464 3.02 % 3.03 % 3.61 % Total interest-bearing deposits 2,036,245 2,019,172 1,975,012 2.24 % 2.22 % 2.58 % Borrowings: Other Borrowings 60,423 89,024 182,368 3.89 % 3.88 % 4.41 % Subordinated debt 94,753 94,701 109,418 7.79 % 7.19 % 6.85 % Total interest-bearing liabilities 2,191,421 2,202,897 2,266,798 2.49 % 2.47 % 2.90 % Noninterest-bearing liabilities: Demand deposits 468,751 430,745 427,145 Other 49,675 46,336 47,437 Total liabilities 2,709,847 2,679,978 2,741,380 Retained earnings 190,846 188,177 178,168 Total liabilities and retained earnings $ 2,900,693 $ 2,868,155 $ 2,919,548 Net interest rate spread (2) 3.03 % 2.80 % 2.44 % Net interest-earning assets (3) $ 472,629 $ 464,148 $ 453,768 Net interest margin (4) 3.42 % 3.21 % 2.87 % (1) Annualized. (2) 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) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (4) Net interest margin represents net interest income divided by average total interest-earning assets. Average Balances and Yields (unaudited) Average Balances Average Yield/Rate(1) For the Nine Months Ended For the Nine Months Ended September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 (Dollars in thousands) Interest-earning assets: Loans $ 2,284,919 $ 2,349,954 5.63 % 5.60 % Debt securities 360,481 316,518 3.41 % 2.86 % Equity securities and mutual funds 6,677 12,104 6.61 % 7.75 % Cash equivalents 28,934 54,347 1.67 % 3.39 % Total interest-earning assets 2,681,011 2,732,923 5.29 % 5.25 % Noninterest-earning assets 204,028 201,378 Total assets $ 2,885,039 $ 2,934,301 Interest-bearing liabilities: NOW accounts $ 387,548 $ 381,692 1.20 % 1.36 % Savings accounts 288,539 293,051 0.20 % 0.22 % Money market accounts 863,962 757,147 2.91 % 3.40 % Certificates of deposit 488,426 542,397 3.10 % 3.74 % Total interest-bearing deposits 2,028,475 1,974,287 2.24 % 2.63 % Borrowings: Other Borrowings 90,190 223,249 4.02 % 4.32 % Subordinated debt 94,689 109,323 7.22 % 6.92 % Total interest-bearing liabilities 2,213,354 2,306,859 2.50 % 2.96 % Noninterest-bearing liabilities Demand deposits 435,310 406,664 Other 47,407 45,963 Total liabilities 2,696,071 2,759,486 Retained earnings 188,968 174,815 Total liabilities and retained earnings $ 2,885,039 $ 2,934,301 Net interest rate spread (2) 2.79 % 2.29 % Net interest-earning assets (3) $ 467,657 $ 426,064 Net interest margin (4) 3.20 % 2.72 % (1) Annualized. (2) 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) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (4) Net interest margin represents net interest income divided by average total interest-earning assets.