National Bank of Coxsackie Reports Balance Sheet Repositioning

The National Bank of Coxsackie (“NBC”), the wholly-owned subsidiary of NBC Bancorp, Inc. (OTCPK:NCXS), announced that in the fourth quarter of 2023, it sold $9 million in available-for-sale securities composed of US Treasury and municipal securities with a weighted average book yield of 1.71% and average remaining life of 2.68 years. NBC recognized a pre-tax loss on the sale of $592 thousand. The transaction was designed to immediately improve net interest income as the bond proceeds were used to paydown wholesale funding with an average cost exceeding 5% and also redirected into higher-yielding loans.

Upon execution, the transaction had a neutral impact on stockholders’ equity and tangible book value per share. Beginning in 2024, returns on average assets and average equity are expected to increase as a result of the transaction as well as an expected increase in net interest margin.

NBC Bancorp, Inc. is the parent company of The National Bank of Coxsackie. NBC operates eight branches in the New York State counties of Albany, Greene and Schoharie and a commercial loan production and administrative office in Latham, NY. For more information, please visit https://investors.nbcoxsackie.com.

This communication has been prepared by or on behalf of NBC Bancorp, Inc. (the “Company’) solely for the informational purposes based on information provided by the Company, as well as information from public sources. Certain information contained herein may be derived from information provided by industry sources. The Company believes such information is accurate and that the sources from which it has been obtained are reliable. However, such information has not independently been verified, and the Company cannot guarantee the accuracy of such information. This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, liquidity, results of operations, future performance, and business of NBC Bancorp, Inc. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995.

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