NB Bancorp, Inc. Debt Disclosure
Note 9 – Borrowings
Federal Home Loan Bank – Borrowings from the FHLB are secured by a blanket lien on qualified collateral, defined principally by pledging a specified percentage of the carrying value of owner and non-owner occupied first mortgage loans secured by one-to-four-family properties and commercial real estate loans, including multifamily loans. The amount of loans pledged was $1.56 billion as of December 31, 2025. Total additional borrowing capacity with the FHLB based upon collateral pledged approximates $913.7 million at December 31, 2025. Additionally, in order to further secure these borrowings with the FHLB, the Company is also required to invest in the stock of the FHLB.
Maturities on outstanding borrowings from the FHLB are summarized as follows:
| December 31, 2025 |
| December 31, 2024 | |||||||
(Dollars in thousands) | ||||||||||
Weighted | Weighted | |||||||||
Average | Average | |||||||||
Amount | Rate | Amount | Rate | |||||||
Advances maturing within: | ||||||||||
Within one year | $ | 168,977 | 3.92% | $ | 100,000 | 4.89% | ||||
Over 1 year to 2 years | 20,000 | 3.94% | — | 0.00% | ||||||
Over 2 years to 3 years | 560 | 0.00% | 20,000 | 3.94% | ||||||
Over 3 years to 4 years | 80 | 0.00% | 560 | 0.00% | ||||||
Over 4 years to 5 years | 538 | 0.00% | — | 0.00% | ||||||
Over 5 years | 6,080 | 1.24% | 275 | 0.00% | ||||||
$ | 196,235 | 3.83% | $ | 120,835 | 4.70% | |||||
The Company also has a line of credit from the FHLB Ideal Way in the amount of $6.1 million at December 31, 2025 and 2024. The Company had no borrowings outstanding under this line of credit at December 31, 2025 or 2024. Interest expense on FHLB borrowings approximated $5.4 million, $4.4 million and $14.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The Federal Reserve Bank – The Company has a line of credit agreement with the FRB of Boston for usage of the discount window. The terms of the agreement call for the pledging of certain assets for any and all obligations of the Company under the agreement. At December 31, 2025 and 2024, there were no borrowings outstanding under this agreement.
During the year ended December 31, 2025, the Company pledged commercial real estate and multifamily loans to the FRB under its BIC program totaling $1.53 billion, which provides the Company with additional borrowing capacity of $939.5 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 3, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 28, 2024 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.