Ballston Spa Bancorp Reports Net Loss of $711,000 Following NBC Bancorp Merger

Ballston Spa Bancorp, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2026, primarily driven by its recent merger with NBC Bancorp, Inc. The company recorded a net loss of $711,000 for the second quarter, a stark contrast to the net income of $1.2 million reported in the same period last year. For the first half of 2026, the net loss was $467,000, down from a profit of $2.5 million in the first half of 2025. This decline in profitability was attributed to a substantial increase in non-interest expenses, which rose by $7.9 million, largely due to merger-related costs and higher compensation expenses.

Total assets surged by 46.95% to $1.36 billion as of June 30, 2026, compared to $928.5 million at the end of 2025, primarily due to the acquisition of NBC, which added approximately $508 million in assets. The loan portfolio also saw a significant increase, with net loans rising by 38.07% to $1.097 billion, driven by the addition of $340.6 million in loans from NBC. Deposits increased by 56.81% to $1.2 billion, reflecting the $456.9 million in deposits acquired through the merger.

In terms of operational metrics, the company reported a notable increase in interest income, which rose by 64.76% to $17.3 million for the second quarter, largely due to the expanded loan portfolio. However, interest expenses also increased by 57.14% to $6.6 million, driven by higher costs associated with deposits and newly issued subordinated debt. The net interest income for the quarter was $10.7 million, up 69.84% from the previous year, indicating a strong performance in interest-earning activities despite the overall net loss.

The merger with NBC also resulted in the establishment of a core deposit intangible asset valued at $7.1 million and an increase in the allowance for credit losses to $13.1 million, reflecting the company's proactive approach to managing potential loan defaults. The company’s total shareholders’ equity increased by 33.47% to $94.9 million, bolstered by the issuance of common stock for the acquisition.

Looking ahead, Ballston Spa Bancorp anticipates that the integration of NBC will enhance its market position and operational efficiency. The company aims to leverage the expanded asset base and customer relationships to drive future growth, although it remains cautious about potential economic challenges and their impact on loan performance and interest rates.