# EDGAR Filing Document

**Accession Number:** 0002138186
**File Stem:** 0001193125-26-269038
**Filing Date:** 2026-6
**Character Count:** 2545484
**Document Hash:** cadbe9942e722e619d931f727217dbf2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-269038.hdr.sgml**: 20260622

**ACCESSION NUMBER**: 0001193125-26-269038

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 103

**FILED AS OF DATE**: 20260612

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Narragansett Bancorp, Inc.
- **CENTRAL INDEX KEY:** 0002138186

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-296731
- **FILM NUMBER:** 261085909

**BUSINESS ADDRESS:**
- **STREET 1:** 330 SWANSEA MALL DRIVE
- **CITY:** SWANSEA
- **STATE:** MA
- **ZIP:** 02777
- **BUSINESS PHONE:** (888) 806-2872

**MAIL ADDRESS:**
- **STREET 1:** 330 SWANSEA MALL DRIVE
- **CITY:** SWANSEA
- **STATE:** MA
- **ZIP:** 02777

**As filed with the Securities and Exchange Commission on June 12, 2026** 

**Registration No. 333-________** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

## NARRAGANSETT BANCORP, INC.

## BAYCOAST BANK 401(K) PLAN
**(Exact Name of Registrant as Specified in Its Charter)** 

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| | | |
|:---|:---|:---|
| **Maryland** | **6036** | **Applied for** |
| **(State or Other Jurisdiction of**<br> **Incorporation or Organization)** | **(Primary Standard Industrial**<br> **Classification Code Number)** | **(I.R.S. Employer**<br> **Identification Number)** |

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**330 Swansea Mall Drive** 

**Swansea, Massachusetts 02777** 

**(888) 806-2872** 

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)** 

**Nicholas M. Christ** 

**Chair of the Board and Chief Executive Officer** 

**Narragansett Bancorp, Inc.** 

**330 Swansea Mall Drive** 

**Swansea, Massachusetts 02777** 

**(888) 806-2872** 

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)** 

***Copies to:***

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| | |
|:---|:---|
| **Lawrence M.F. Spaccasi, Esq.**<br> **Ned Quint, Esq.**<br> **Luse Gorman, PC**<br> **5335 Wisconsin Avenue, N.W., Suite 780**<br> **Washington, D.C. 20015**<br> **(202) 274-2007** | **Samatha Kirby, Esq.**<br> **Covington & Burling LLP**<br> **One International Place, Suite 1020**<br> **Boston, MA 02110**<br> **(617) 603-8800** |

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**Approximate date of commencement of proposed sale to the public:** As soon as practicable after this registration statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box: ☒

If this Form is filed to register additional shares for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☒ |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act: ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

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**<u>Prospectus Supplement</u>**

**Interests in** 

**BAYCOAST BANK 401(k) PLAN** 

**Offering of Participation Interests of up to 6,705,124 Shares of** 

**Narragansett Bancorp, Inc. Common Stock** 

In connection with the reorganization of BayCoast Bank from a single-tier mutual holding company form of organization, with no stockholders, into the "two-tier" public mutual holding company form of organization, Narragansett Bancorp, Inc. ("Narragansett Bancorp"), the proposed holding company for BayCoast Bank, is offering shares of its common stock for sale at $10.00 per share. Following the completion of the reorganization and stock offering, it is expected that the common stock of Narragansett Bancorp will be traded on the Nasdaq Capital Market under the symbol "[symbol]." The reorganization and stock offering is not contingent on receipt of approval to list on the Nasdaq Capital Market.

In connection with the reorganization and stock offering, BayCoast Bank is allowing participants in the BayCoast Bank 401(k) Plan (the "401(k) Plan"), to invest a portion of their account balances in Narragansett Bancorp common stock. This prospectus supplement relates to elections by 401(k) Plan participants to direct the trustee of the 401(k) Plan to invest up to 75% of their account balances in the 401(k) Plan in Narragansett Bancorp common stock in connection with the reorganization and stock offering. Based upon the value of the 401(k) Plan assets at March 31, 2026, the trustee of the 401(k) Plan could purchase up to 6,705,124 shares of Narragansett Bancorp common stock on behalf of participants, at the purchase price of $10.00 per share.

Before you consider investing, you should read the prospectus of Narragansett Bancorp, dated [date], 2026, which is enclosed with this prospectus supplement. It contains detailed information regarding the reorganization, the stock offering of Narragansett Bancorp, and the financial condition, results of operations and business of Narragansett Financial Corporation and BayCoast Bank. This prospectus supplement provides information regarding the 401(k) Plan. You should read this prospectus supplement together with the prospectus and keep both for future reference.

**For a discussion of risks that you should consider, see "Risk Factors" beginning on page [#] of the attached prospectus, and "Notice of Your Rights Concerning Employer Securities" in this prospectus supplement.** 

**The interests in the 401(k) Plan and the offering of shares of Narragansett Bancorp common stock have not been approved or disapproved by the Securities and Exchange Commission, the Board of Governors of the Federal Reserve System, the Massachusetts Division of Banks, the Federal Deposit Insurance Corporation or any state securities regulator. Any representation to the contrary is a criminal offense.** 

**The securities offered by this prospectus supplement are not deposits or savings accounts and are not insured or guaranteed by the Federal Deposit Insurance Corporation, the Depositors Insurance Fund or any other governmental agency.** 

This prospectus supplement may be used only in connection with offers and sales by Narragansett Bancorp in the stock offering of Narragansett Bancorp common stock that may be acquired within the 401(k) Plan. No one may use this prospectus supplement to reoffer or resell interests in shares of Narragansett Bancorp common stock acquired through the 401(k) Plan.

You should rely only on the information contained in this prospectus supplement and the attached prospectus. Narragansett Bancorp, Narragansett Financial Corporation, BayCoast Bank and the 401(k) Plan have not authorized anyone to provide you with different information.

This prospectus supplement does not constitute an offer to sell or solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer or solicitation in that jurisdiction. Neither the delivery of this prospectus supplement and the attached prospectus nor any sale of Narragansett Bancorp common stock shall under any circumstances imply that there has not been a change in the

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affairs of Narragansett Bancorp, Narragansett Financial Corporation, BayCoast Bank or the 401(k) Plan since the date of this prospectus supplement, or that the information contained in this prospectus supplement or incorporated by reference is correct as of any time after the date of this prospectus supplement.

**The date of this prospectus supplement is [date], 2026.** 

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**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  [RISK FACTORS](#a401k122170_1) | 1 |
|  [THE OFFERING](#a401k122170_2) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Securities Offered](#a401k122170_3) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Election to Purchase Narragansett Bancorp, Inc. Common Stock](#a401k122170_4) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Purchase Priorities](#a401k122170_5) | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Purchases in the Offering and Oversubscriptions](#a401k122170_6) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Composition of the Narragansett Bancorp, Inc. Stock Fund](#a401k122170_7) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Minimum and Maximum Investment](#a401k122170_8) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Value of the Plan Assets](#a401k122170_9) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [How to Order Stock in the Offering](#a401k122170_10) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Order Deadline](#a401k122170_11) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Irrevocability of Transfer Direction](#a401k122170_12) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Future Direction to Purchase and Sell Common Stock](#a401k122170_13) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Voting Rights of Common Stock](#a401k122170_14) | 7 |
|  [DESCRIPTION OF THE 401(k) PLAN](#a401k122170_15) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Introduction](#a401k122170_16) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Eligibility and Participation](#a401k122170_17) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Contributions Under the Plan](#a401k122170_18) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Limitations on Contributions](#a401k122170_19) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Benefits Under the 401(k) Plan](#a401k122170_20) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Investment of Contributions and Account Balances](#a401k122170_21) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Performance History](#a401k122170_22) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Description of the Investment Funds](#a401k122170_23) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Narragansett Bancorp, Inc. Stock Fund](#a401k122170_24) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Withdrawals from the 401(k) Plan](#a401k122170_25) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Administration of the 401(k) Plan](#a401k122170_26) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Amendment and Termination](#a401k122170_27) | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Merger, Consolidation or Transfer](#a401k122170_28) | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Federal Income Tax Consequences](#a401k122170_29) | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notice of Your Rights Concerning Employer Securities](#a401k122170_30) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Additional ERISA Considerations](#a401k122170_31) | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Securities and Exchange Commission Reporting and Short-Swing Profit Liability](#a401k122170_32) | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Financial Information Regarding 401(k) Plan Assets](#a401k122170_33) | 18 |
|  [LEGAL OPINION](#a401k122170_34) | 19 |

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**RISK FACTORS** 

In addition to considering the material risks disclosed under "Risk Factors" beginning on page [#] of the attached prospectus, you should also consider the following:

**If you elect to purchase Narragansett Bancorp common stock using your 401(k) Plan account balance and the stock offering is oversubscribed, you will bear the risk of price changes in the investment funds of the 401(k) Plan.** 

If you elect to purchase Narragansett Bancorp common stock using your 401(k) Plan account balance, the 401(k) Plan trustee will sell the designated amount within your 401(k) Plan account among your investment fund balances. If the stock offering is oversubscribed (<u>i.e.</u>, there are more orders for Narragansett Bancorp common stock than shares available for sale in the stock offering) and the 401(k) Plan trustee cannot use any or all of the funds you allocate to purchase Narragansett Bancorp common stock, the funds that cannot be invested in Narragansett Bancorp common stock, and any interest earned on such funds, will be reinvested in your existing investment funds of the 401(k) Plan, according to your then existing investment election (<u>i.e.</u>, in proportion to your investment direction for future contributions). During the period from when the 401(k) Plan trustee sells a portion of your investment funds until reinvestment of some or all of those funds back into your investment funds as a result of an oversubscription, you will bear the risk of price changes in the investment funds. It is possible that during this period some or all the investment funds may have increased in value more than the amount of any interest you may have earned on the reinvested funds before reinvestment. See "The Offering – Purchases in the Offering and Oversubscriptions" in this prospectus supplement.

**THE OFFERING** 

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|:---|:---|
| **Securities Offered** | BayCoast Bank is offering participants in the 401(k) Plan the opportunity to purchase participation interests in shares of Narragansett Bancorp common stock through the 401(k) Plan. A "participation interest" represents indirect ownership of a share of Narragansett Bancorp common stock that is acquired by the 401(k) Plan and is equivalent to one share of Narragansett Bancorp common stock. In this prospectus supplement, "participation interests" are referred to as shares of Narragansett Bancorp common stock. At the stock offering purchase price of $10.00 per share and allowing participants to use up to 75% of their account balances, the 401(k) Plan may acquire up to 6,705,124 shares of Narragansett Bancorp common stock in the stock offering, based on the approximate fair market value of the 401(k) Plan's assets as of March 31, 2026.<br>Only employees of BayCoast Bank and employees of participating subsidiaries of BayCoast Bank may become participants in the 401(k) Plan and only participants may purchase shares of Narragansett Bancorp common stock through the 401(k) Plan. However, your investment in shares of Narragansett Bancorp common stock in connection with the stock offering is subject to the purchase priorities listed below.<br>Information regarding the 401(k) Plan is contained in this prospectus supplement and information with respect to the consolidated financial condition and results of operations of Narragansett Financial Corporation and the business of Narragansett Bancorp and BayCoast Bank is contained in the attached prospectus. The address of the corporate/main office of Narragansett Bancorp and BayCoast Bank is 330 Swansea Mall Drive, Swansea, Massachusetts 02777. The telephone number at this address is [number].<br>***Address questions about this prospectus supplement to [name], [title], BayCoast Bank, 330 Swansea Mall Drive, Swansea, Massachusetts 02777; telephone number [number]; email: [email].*** |

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|  | ***Direct all questions about the stock offering, the prospectus, or obtaining a stock order form to purchase stock in the stock offering outside the 401(k) Plan to the Stock Information Center at [#] (toll-free)***, ***Monday through Friday, between 10:00 a.m. and 4:00 p.m., Eastern time. The Stock Information Center will be closed on bank holidays.*** |
| **Election to Purchase Narragansett Bancorp, Inc. Common Stock** | In connection with the stock offering, you may elect to designate up to 75% of your 401(k) Plan account balance to a money market fund called "Stock Purchase," which will be used to subscribe for Narragansett Bancorp common stock in the stock offering. Before making this election, you should carefully read the prospectus and this prospectus supplement and consider the information set forth on page [#] of this prospectus supplement under *"Notice of Your Rights Concerning Employer Securities — The Importance of Diversifying Your Retirement Savings."* The trustee of the Narragansett Bancorp, Inc. Stock Fund will subscribe to purchase shares of Narragansett Bancorp common stock at $10.00 per share in accordance with your election. However, your election is subject to the purchase priorities and purchase limitations, as described below. |
| **Purchase Priorities** | All 401(k) Plan participants are eligible to elect to subscribe for Narragansett Bancorp common stock in the stock offering. However, the elections are subject to the purchase priorities in the Plan of Holding Company Reorganization and Plan of Stock Offering of BayCoast Bank and Narragansett Financial Corporation, which provides for a subscription offering and, if necessary, a community offering. In the stock offering, the purchase priorities are as follows and apply in case more shares of Narragansett Bancorp common stock are ordered than are available for sale (an "oversubscription):<br>Subscription Offering:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Each person with $50 or more on deposit at BayCoast Bank as of the close of business on May 31, 2025, has first priority.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) BayCoast Bank's tax-qualified plans, including the employee stock ownership plan, have second priority.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Employees, officers, directors, trustees and corporators of BayCoast Bank and/or Narragansett Financial Corporation, who are not in the first priority, have third priority.<br>Community Offering:<br>Shares of Narragansett Bancorp common stock not purchased in the subscription offering may be offered for sale to the general public in a "community offering," with a preference given to natural persons (including trusts of natural persons) in the Local Community (as defined in the Prospectus).<br>If you fall into subscription offering categories (1) or (3) above, you have subscription rights to purchase Narragansett Bancorp common stock in the subscription offering in the highest category and you may use funds (up to 75% of your account balance) in the 401(k) Plan to pay for the Narragansett Bancorp common stock.<br>If you fall into purchase priority (1) or (3), you will separately receive offering materials in the mail, including a stock order form. You may use the stock order form to purchase shares of Narragansett Bancorp common stock outside the 401(k) Plan. |

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|  | Additionally, instead of (or in addition to) placing an order outside the 401(k) Plan using the stock order form, you may place an order for the purchase of Narragansett Bancorp common stock through the 401(k) Plan in the manner described below under "How to Order Stock in the Offering." |
| **Purchases in the Offering and Oversubscriptions** | The trustee of the 401(k) Plan will subscribe for Narragansett Bancorp common stock in the stock offering in accordance with your election. Once you make your election, the amount that you elect to transfer from your existing investment option(s) for the purchase of Narragansett Bancorp common stock will be sold from your existing investment option(s) and the proceeds will be transferred to the Stock Purchase option (which will be invested in a money market fund during the stock offering period) pending the completion of the reorganization and stock offering several weeks later. After the end of the stock offering period, we will determine whether all or any portion of your order will be filled (if the stock offering is oversubscribed you may not receive any or all of your order, depending on your purchase priority, as described above). The amount that can be used toward your order will be applied to the purchase of Narragansett Bancorp common stock. Following the closing of the reorganization and stock offering, your purchased shares of Narragansett Bancorp common stock will be transferred to the 401(k) Plan and will be reflected in your 401(k) Plan account as soon as practicable thereafter.<br>If the stock offering is oversubscribed, and the trustee of the 401(k) Plan is unable to use the full amount allocated by you to purchase Narragansett Bancorp common stock in the stock offering, the amount that cannot be invested in shares of Narragansett Bancorp common stock, and any interest earned on that amount, will be transferred from the Stock Purchase option and reinvested in the existing funds of the 401(k) Plan, in accordance with your then existing investment election (in proportion to your investment direction for future contributions). The prospectus describes the allocation procedures in the event of an oversubscription. If you choose not to elect to invest part of your account balances towards the purchase of Narragansett Bancorp common stock in connection with the stock offering, your account balances will remain in the investment funds of the 401(k) Plan as previously directed by you. |
| **Composition of the Narragansett Bancorp, Inc. Stock Fund** | Shares of Narragansett Bancorp common stock purchased by the 401(k) Plan in the stock offering will be transferred to the 401(k) Plan and held in the Narragansett Bancorp, Inc. Stock Fund. The Narragansett Bancorp, Inc. Stock Fund is neither a mutual fund nor a diversified or managed investment option. Rather, it is merely a recordkeeping mechanism established by the 401(k) Plan custodian to track the shares purchased by 401(k) Plan participants in the reorganization and stock offering through the 401(k) Plan. The Narragansett Bancorp, Inc. Stock Fund will consist solely of shares of Narragansett Bancorp common stock purchased by participants in the 401(k) Plan, which will be initially valued at $10.00 per share (i.e., the purchase price).<br>Following the closing of the reorganization and stock offering, each day the aggregate value of Narragansett Bancorp, Inc. Stock Fund will be determined by dividing the total market value of the fund at the end of the day by the total number of shares held in the fund by all participants as of the previous day's end. The change in share value reflects the day's change in stock price of Narragansett Bancorp common stock, and the value of each participation interest should be the same as one share of Narragansett Bancorp common stock. |

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|  | **Investment in Narragansett Bancorp common stock involves risks common to investments in shares of common stock. For a discussion of material risks you should consider, see the "Risk Factors" section of the attached prospectus and the section of the prospectus supplement called "Notice of Your Rights Concerning Employer Securities" (see below).**<br>The portion of your 401(k) Plan account invested in the Narragansett Bancorp, Inc. Stock Fund will be reported to you on your regular 401(k) Plan participant statements. You can also go online at any time to <u>www.principal.com</u> or call (800) 547-7754 (toll-free) to review your account balances. |
| **Minimum and Maximum Investment** | In connection with the stock offering, the 401(k) Plan will permit you to use up to 75% of your 401(k) Plan account balance for the purchase of Narragansett Bancorp common stock in the stock offering.<br>The trustee of the 401(k) Plan will subscribe for shares of Narragansett Bancorp common stock offered for sale in the stock offering, in accordance with each participant's direction. The trustee will pay $10.00 per share, which will be the same price paid by all other persons who purchase shares in the stock offering. To purchase Narragansett Bancorp common stock through the 401(k) Plan, the minimum investment is $250, which will purchase 25 shares. No individual may purchase more than $[#] ([#] shares) of Narragansett Bancorp common stock. Furthermore, no person or entity, together with associates or persons acting in concert with such person or entity, may purchase more than $[#] ([#] shares) of Narragansett Bancorp common stock in all categories of the stock offering combined. See the prospectus for further details regarding additional maximum purchase limits for investors in the stock offering. |
| **Value of the Plan Assets** | As of March 31, 2026, the market value of the assets of the 401(k) Plan attributable to active and former employees of BayCoast Bank was approximately $89,401,650. |
| **How to Order Stock in the Offering** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • You can elect to transfer up to 75% of your current 401(k) Plan account balance (in whole dollar amounts) to the Stock Purchase option, which will be used by the 401(k) Plan trustee to purchase shares of Narragansett Bancorp common stock. This is done by following the procedures described below. Note the following conditions concerning this election:<br>• Your election is subject to a minimum purchase of 25 shares of common stock, which equals $250.<br>Your election, plus any order you placed outside the 401(k) Plan, are together subject to a maximum purchase limit of no more than [#] shares of Narragansett Bancorp common stock, which equals $[#]. The prospectus describes an additional purchase limitation of [#] shares of Narragansett Bancorp common stock, which equals $[#], for an individual, together with associates or persons acting in concert with such individual.<br>• The election period for the 401(k) Plan purchases ends at [time] p.m., Eastern time, on [date], 2026 (the "Plan Purchase Period").<br>|

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Your election to purchase common stock in the stock offering through the 401(k) Plan will be accepted by Principal Financial Group, the recordkeeper of the 401(k) Plan. After your election is accepted by Principal Financial Group, it will be rounded down to the closest dollar amount divisible by $10.00 and will be used by the trustee to purchase shares of Narragansett Bancorp common stock sold in the reorganization and stock offering. This difference will remain in the Stock Purchase option until the completion of the reorganization and stock offering, which is expected to be several weeks after the Plan Purchase Period ends. At that time, the Narragansett Bancorp common stock purchased based on your election will be transferred to the 401(k) Plan and any remaining funds will be transferred out of the Stock Purchase option for investment in other funds under the 401(k) Plan, based on your election currently on file for future contributions.<br>• The amount you elect to transfer to the Stock Purchase option will be held separately until the completion of the reorganization and stock offering. Therefore, this money is not available for distributions, loans, or withdrawals until the reorganization and stock offering is completed, which is expected to be several weeks after the 401(k) Plan Purchase Period ends.<br>• Following the completion of the reorganization and stock offering, your purchased shares of Narragansett Bancorp common stock will be reflected in your 401(k) Plan account through the Narragansett Bancorp, Inc. Stock Fund. You may continue to invest in the Narragansett Bancorp, Inc. Stock Fund following the stock offering and may use up to 50% of the amounts contributed to the 401(k) Plan on your behalf to purchase shares of stock.<br>Follow the steps outlined below to make your election to use your account balance in the 401(k) Plan to purchase shares of Narragansett Bancorp, Inc. common stock in the stock offering. You are allowed only one election to transfer funds to the Stock Purchase option.<br>• Go to www.principal.com and log into your 401(k) Plan account. In Account Login, click on drop down and choose "Personal," then "GO." Enter your Username and Password. If you have not established your Username and Password, click on the link "Establish your Username and Password", and follow the prompts.<br>• On your Personal Summary Page, choose the line for the 401(k) Plan as adopted by BayCoast Bank Plan and click on "View Details" for your 401(k) Plan account.<br>• When you reach "Your Account Overview," click on "Investments" across the top navigation of the screen, and then click on "Change Investments."<br>• Select "Choose to build your own portfolio," click "Build you own investment mix."<br>• Select "Apply changes to my current account balance only. New contributions will not be affected."<br>• Click "Move one or more investments while keeping the rest as-is."<br>• Click on "Advanced Transfer Features," choose "dollars," then choose "Transfer from one investment to another."<br>

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|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Then enter the amount you would like to transfer "From" each investment. When you have completed transferring "From" each investment, click on "Continue."<br>• Enter the dollars that you will be transferring into the Stock Purchase account. The Stock Purchase account is a money market investment that will hold the funds until the reorganization and stock offering is concluded. All the funds that you transferred "From" other investments must be transferred to another investment. All the dollars must be transferred "To" another investment.<br>When you have completed the "To" portion of the transaction, click on "Continue." You will be taken to a confirmation page. Review your transaction for accuracy. If you need to make changes, click on "Cancel" or "Start Over" or "Previous" to make changes. If the information is correct, click on "Submit Request" to authorize Principal Life Insurance Company to process the request. You will receive a communication in your Message Center confirming your transaction.<br>After you completed your online election, you will also need to complete the Stock Information Form and return it either by emailing it to [name], [title], at [email]*,* by faxing it to [number] or by delivering it in person, to be received by [name], [title], BayCoast Bank, 330 Swansea Mall Drive, Swansea, Massachusetts 02777.<br>|
| **Order Deadline** | You must make your election online at *www.principal.com* and return your Stock Information Form by emailing it to [name], [title], at [email]*,* by faxing it to [number] or by delivering it in person, to be received by [name], [title], BayCoast Bank, 330 Swansea Mall Drive, Swansea, Massachusetts 02777; telephone number [number]; to be received no later than [time] p.m., Eastern time, on [date], 2026. |
| **Irrevocability of Transfer Direction** | **<u>Once you make an election to transfer amounts to the Stock Purchase option to be used by the 401(k) Plan trustee to purchase Narragansett Bancorp common stock in connection with the reorganization and stock offering, you may not change your election.</u>**<br>**<u>Your election is irrevocable. You will, however, continue to have the ability to transfer amounts not directed towards the purchase of Narragansett Bancorp common stock among all the other investment funds on a daily basis.</u>** |
| **Future Direction to Purchase and Sell Common Stock** | You will be able to purchase Narragansett Bancorp common stock after the completion of the reorganization and stock offering through the 401(k) Plan by investing your future contributions through the Narragansett Bancorp, Inc. Stock Fund, provided, that no more than 50% of your future contributions (both employer and employee) may be invested in the Narragansett Bancorp, Inc. Stock Fund. Additionally, after the completion of the reorganization and stock offering, you will be able to transfer no more than 50% of your account balance to the Narragansett Bancorp, Inc. Stock Fund.<br>After the completion of the reorganization and stock offering, to the extent that shares are available, the trustee of the 401(k) Plan will acquire shares of Narragansett Bancorp common stock at your election in open market transactions at the prevailing price, which may be less than or more than $10.00 per share. In addition, a brokerage commission of $0.01 per share of stock purchased will be charged. |

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|  | You may change your investment allocation on a daily basis. **However, your ability to buy or sell Narragansett Bancorp common stock within the 401(k) Plan largely depends upon the existence of an active market for the stock. If Narragansett Bancorp common stock is illiquid (meaning there are few buyers and sellers of the stock) on the date you elect to buy or sell Narragansett Bancorp common stock within the 401(k) Plan, your election may not be immediately processed. As a result, the prevailing price for Narragansett Bancorp, Inc. common stock may be less or more than its fair market value on the date of your election.**<br>Special restrictions may apply to purchasing shares of Narragansett Bancorp common stock by 401(k) Plan participants who are subject to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended, relating to the purchase and sale of securities by officers, directors, and principal stockholders of Narragansett Bancorp.<br>**If you are an officer of the Narragansett Bancorp who is restricted by regulation from selling shares of Narragansett Bancorp common stock acquired in the reorganization and stock offering for one year, the Narragansett Bancorp common stock that you purchased in the reorganization and stock offering through the 401(k) Plan will not be tradable until the one-year trading restriction has lapsed.** |
| **Voting Rights of Common Stock** | You may direct the 401(k) Plan trustee as to how to vote your shares of Narragansett Bancorp common stock held in the Narragansett Bancorp, Inc. Stock Fund, if permitted by BayCoast Bank. If the trustee does not receive your voting instructions, the trustee will be directed by BayCoast Bank to vote your shares in the same proportion as the voting instructions received from other participants related to their shares of Narragansett Bancorp common stock held by the 401(k) Plan, provided that such vote is made in accordance with the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). All voting instructions will be kept confidential. |

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**DESCRIPTION OF THE 401(k) PLAN** 

**Introduction** 

***General.*** BayCoast Bank originally adopted the 401(k) Plan effective as of February 1, 1991. In connection with the reorganization and stock offering, BayCoast Bank is allowing participants to purchase common stock of Narragansett Bancorp in their accounts in the 401(k) Plan and BayCoast Bank has amended the 401(k) Plan to allow investments in Narragansett Bancorp common stock. The 401(k) Plan is a tax-qualified plan with a cash or deferred compensation feature established in accordance with the requirements under Section 401(a) and Section 401(k) of the Internal Revenue Code of 1986, as amended (the "Code").

BayCoast Bank intends that the 401(k) Plan, in operation, will comply with the requirements under Section 401(a) and Section 401(k) of the Code. BayCoast Bank will adopt amendments to the 401(k) Plan that may be necessary to ensure the continuing qualified status of the 401(k) Plan under the Code and applicable Treasury Regulations.

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***ERISA.*** The 401(k) Plan is an "individual account plan" other than a "money purchase pension plan" within the meaning of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). As such, the 401(k) Plan is subject to all the provisions of Title I (Protection of Employee Benefit Rights) and Title II (Amendments to the Code Relating to Retirement Plans) of ERISA, except for the funding requirements contained in Part 3 of Title I of ERISA, which by their terms do not apply to an individual account plan (other than a money purchase plan). The 401(k) Plan is not subject to Title IV (Plan Termination Insurance) of ERISA. The funding requirements contained in Title IV of ERISA are not applicable to participants or beneficiaries under the 401(k) Plan.

***Reference to Full Text of Plan.*** This prospectus supplement summarizes certain provisions of the 401(k) Plan. These summaries are not complete and are qualified in their entirety by the full text of the 401(k) Plan. Copies of the 401(k) Plan are available to all employees by going to <u>www.Principal.com</u>.

**Eligibility and Participation** 

BayCoast Bank employees generally become eligible to enter the 401(k) Plan as participants upon their attainment of age 18 and the completion of one month of service.

As of March 31, 2026, there were approximately 688 active and former employees with account balances in the 401(k) Plan.

**Contributions Under the Plan** 

***Elective Deferrals.*** Participants are permitted to defer up to 75% of their compensation as of the date they become a participant in the 401(k) Plan but may choose a different percentage or choose not to defer at all. The amounts of deferrals are also subject to certain restrictions imposed by the Code. For 2026, participants may defer up to $24,500 and may defer an additional $8,000 if they qualify for catch-up contributions as described in the next paragraph. The compensation of each participant taken into account under the 401(k) Plan is limited by the Code, and for 2026 the limit is $360,000 (this limit may change on an annual basis). Canceling or changing a participant's contribution percentage can be accomplished by going to <u>www.Principal.com</u>.

***Catch-up Contributions*.** If a participant has made the maximum amount of elective deferrals allowed by the 401(k) Plan or other legal limits and has attained at least age 50 (or will reach age 50 before the end of the tax year, which is December 31), that participant is also eligible to make an additional catch-up contribution. For 2026, the maximum catch-up contribution is $8,000. A participant may authorize BayCoast Bank to withhold a specified dollar amount of his or her compensation for this purpose.

***Employer Contributions*.** BayCoast Bank currently makes a matching contribution tied to participant deferrals under the 401(k) Plan. BayCoast Bank reserves the right to eliminate or modify the amount of this contribution at any time and from time to time.

**Limitations on Contributions** 

***Contribution Limits.*** For the tax year beginning January 1, 2026, the amount of a participant's elective deferrals may not exceed $24,500 per calendar year, or $32,500, if the participant is eligible to make catch-up contributions. Contributions in excess of this limit are known as excess deferrals. If a participant defers amounts in excess of this limitation, his or her gross income for federal income tax purposes will include the excess in the year of the deferral. In addition, unless the excess deferral is distributed before April 15 of the following year, it will be taxed again in the year distributed. Income on the excess deferral distributed by April 15 of the immediately succeeding year will be treated, for federal income tax purposes, as earned and received by the participant in the tax year in which the contribution is made.

The total amount of contributions that a participant makes, and any contribution made by BayCoast Bank makes on a participant's behalf to the 401(k) Plan and other defined contribution tax-qualified retirement plans in one year is generally limited to the lesser of 100% of the participant's compensation or $72,000 (for 2026).

***Rollovers*.** Participants may make a rollover contribution of an eligible rollover distribution from any other qualified retirement plan or an individual retirement arrangement (IRA). These funds will be maintained in a separate rollover account in which the participant will have a nonforfeitable vested interest.

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**Benefits Under the 401(k) Plan** 

***Vesting.*** At all times, participants have a fully vested, nonforfeitable interest in the portion of their account balance attributable to elective deferrals and employer contributions under the 401(k) Plan.

***Distribution at Termination of Employment*.** Participants will be entitled to receive a distribution of the vested amounts in your account when their employment terminates for any reason. A participant's benefit will be equal to the vested balance of the participant's account. The 401(k) Plan will make involuntary cash-out distributions of vested account balances in accordance with the 401(k) Plan. If a participant is not a 5% or more owner of his or her employer, their required benefit commencement date is the April 1<sup>st</sup> following the close of the year in which the later of the following occurs: they attain age 72 <sup>1</sup>⁄<sub>2</sub> or they terminate employment.

***Distribution After Death of Participant*.** If a participant dies, the value of the participant's entire account will be payable to the participant's beneficiary in accordance with the 401(k) Plan.

**Investment of Contributions and Account Balances** 

All amounts credited to a participant's account under the 401(k) Plan are held in the 401(k) Plan trust (the "Trust"), which is administered by the trustee of the 401(k) Plan. Before the effective date of the stock offering, participants were provided the opportunity to direct the investments of their accounts into one of the investment options described below.

Vanguard 500 Index Admiral Fund

Capital Group Growth Fund of America E Separate Account-E1

Vanguard Mid-Cap Value Index Admiral Fund

Vanguard Strategic Equity Investor Fund

Vanguard Small Cap Value Index Admiral Fund

Principal Global Investors SmallCap S&P 600 Index Separate Account-Z

Capital Research and Management Company American Funds New World R6 Fund

Vanguard Developed Markets Index Admiral Fund

Capital Group EUPAC E Separate Account-E1

Vanguard Target Retirement Income Investor Fund

Vanguard Target Retirement 2020 Investor Fund

Vanguard Target Retirement 2025 Investor Fund

Vanguard Target Retirement 2030 Investor Fund

Vanguard Target Retirement 2035 Investor Fund

Vanguard Target Retirement 2040 Investor Fund

Vanguard Target Retirement 2045 Investor Fund

Vanguard Target Retirement 2050 Investor Fund

Vanguard Target Retirement 2055 Investor Fund

Vanguard Target Retirement 2060 Investor Fund

Vanguard Target Retirement 2065 Investor Fund

Vanguard Target Retirement 2070 Investor Fund

Lord Abbett Short Duration Income R6 Investor Fund

Vanguard Federal Money Market Investor Investor Fund

Capital Research and Management Company American Funds Capital World Bond R6 Fund

Vanguard Long-Term Investment-Grade Bond Admiral Fund

Dodge & Cox Income X Fund

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**Performance History** 

The following table provides performance data with respect to the investment funds in the 401(k) Plan:

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|:---|:---|:---|:---|:---|
|  | **Average Annual Total Return (%)**<br>**(as of March 31, 2026)** | **Average Annual Total Return (%)**<br>**(as of March 31, 2026)** | **Average Annual Total Return (%)**<br>**(as of March 31, 2026)** | **Average Annual Total Return (%)**<br>**(as of March 31, 2026)** |
| **Investment Option Name** | **1-Year** | **3-Year** | **5-Year** | **10-Year** |
|  Vanguard 500 Index Admiral Fund | 17.75 | 18.27 | 12.02 | 14.12 |
|  Capital Group Growth Fund of America E Separate Account-E1 | 17.69 | 20.64 | 9.63 |  |
|  Vanguard Mid-Cap Value Index Admiral Fund | 17.21 | 13.73 | 8.86 | 10.24 |
|  Vanguard Strategic Equity Investor Fund | 25.50 | 16.65 | 10.63 | 12.02 |
|  Vanguard Small Cap Value Index Admiral Fund | 18.94 | 13.37 | 7.84 | 10.11 |
|  Principal Global Investors SmallCap S&P 600 Index Separate Account-Z | 20.56 | 10.50 | 4.42 | 9.84 |
|  Capital Research and Mgmt Co American Funds New World R6 Fund | 24.59 | 13.85 | 5.13 | 9.73 |
|  Vanguard Developed Markets Index Admiral Fund | 29.60 | 15.96 | 8.80 | 9.20 |
|  Capital Group EUPAC E Separate Account-E1 | 22.24 | 11.69 | 4.09 |  |
|  Vanguard Target Retirement Income Inv Fund | 9.30 | 7.85 | 3.71 | 5.04 |
|  Vanguard Target Retirement 2020 Inv Fund | 10.37 | 8.90 | 4.41 | 6.64 |
|  Vanguard Target Retirement 2025 Inv Fund | 13.02 | 10.64 | 5.36 | 7.63 |
|  Vanguard Target Retirement 2030 Inv Fund | 14.79 | 11.80 | 6.09 | 8.40 |
|  Vanguard Target Retirement 2035 Inv Fund | 16.16 | 12.83 | 6.79 | 9.16 |
|  Vanguard Target Retirement 2040 Inv Fund | 17.57 | 13.85 | 7.50 | 9.91 |
|  Vanguard Target Retirement 2045 Inv Fund | 18.92 | 14.82 | 8.18 | 10.51 |
|  Vanguard Target Retirement 2050 Inv Fund | 20.35 | 15.63 | 8.67 | 10.78 |
|  Vanguard Target Retirement 2055 Inv Fund | 20.34 | 15.63 | 8.67 | 10.77 |
|  Vanguard Target Retirement 2060 Inv Fund | 20.35 | 15.63 | 8.67 | 10.77 |
|  Vanguard Target Retirement 2065 Inv Fund | 20.32 | 15.61 | 8.68 |  |
|  Vanguard Target Retirement 2070 Inv Fund | 20.34 | 15.63 |  |  |
|  Lord Abbett Short Duration Income R6 Fund | 4.85 | 5.20 | 2.67 | 2.97 |
|  Vanguard Federal Money Market Investor Fund | 4.05 | 4.77 | 3.38 | 2.23 |
|  Capital Research and Mgmt Co American Funds Capital World Bond R6 Fund | 3.99 | 2.53 | -1.71 | 0.81 |
|  Vanguard Long-Term Investment-Grade Bond Admiral Fund | 3.57 | 2.33 | -1.85 | 2.03 |
|  Dodge & Cox Income X Fund | 5.43 | 5.07 | 1.65 | 3.15 |

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**Description of the Investment Funds** 

**Vanguard 500 Index Admiral Fund** 

The investment seeks to track the performance of the Standard & Poor's 500 Index that measures the investment return of large-capitalization stocks. The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.

**Capital Group Growth Fund of America E Separate Account-E1** 

The investment seeks growth of capital. It invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. It may invest up to 25% of its assets in securities of issuers domiciled outside the United States. The investment adviser uses a system of multiple portfolio managers in managing the fund's assets. Under this approach, the portfolio is divided into segments managed by individual managers who decide how their respective segments will be invested.

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**Vanguard Mid-Cap Value Index Admiral Fund** 

The investment seeks to track the performance of the CRSP US Mid Cap Value Index that measures the investment return of mid-capitalization value stocks. The fund employs an indexing investment approach designed to track the performance of the CRSP US Mid Cap Value Index, a broadly diversified index of value stocks of mid-size U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

**Vanguard Strategic Equity Investor Fund** 

The investment seeks long-term capital appreciation. The fund invests in small- and mid-capitalization domestic equity securities based on the advisor's assessment of the relative return potential of the securities. The advisor selects securities that the advisor believes offer an appropriate balance between strong growth prospects and reasonable valuations relative to their industry peers. The advisor does this by using a quantitative process to evaluate all of the securities in the benchmark, the MSCI U.S. Small + Mid Cap 2200 Index, while seeking to maintain a risk profile similar to that of the index.

**Vanguard Small Cap Value Index Admiral Fund** 

The investment seeks to track the performance of the CRSP US Small Cap Value Index that measures the investment return of small-capitalization value stocks. The fund advisor employs an indexing investment approach designed to track the performance of the CRSP US Small Cap Value Index, a broadly diversified index of value stocks of small U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

**Principal Global Investors SmallCap S&P 600 Index Separate Account-Z** 

The investment seeks long-term growth of capital and normally invests the The investment seeks long-term growth of capital and normally invests the majority of assets in common stocks of companies that compose the S&P SmallCap majority of assets in common stocks of companies that compose the S&P SmallCap 600 Index. Management attempts to mirror the investment performance of the index 600 Index. Management attempts to mirror the investment performance of the index by allocating assets in approximately the same weightings as the S&P 600 Index. by allocating assets in approximately the same weightings as the S&P 600 Index. Over the long-term, management seeks a very close correlation between the performance of the Separate Account before expenses and that of the S&P 600 performance of the Separate Account before expenses and that of the S&P 600 Index. Index.

**Capital Research and Management Company American Funds New World R6 Fund** 

The investment seeks long-term capital appreciation. The fund invests primarily in common stocks of companies with significant exposure to developing countries. The securities markets of these countries may be referred to as emerging markets or frontier markets. Under normal market conditions, the fund invests at least 35% of its assets in equity and debt securities of issuers domiciled in qualified developing countries.

**Vanguard Developed Markets Index Admiral Fund** 

The investment seeks to track the performance of the FTSE Developed All Cap ex U.S. Index. The fund employs an indexing investment approach designed to track the performance of the FTSE Developed All Cap ex U.S. Index, a market-capitalization-weighted index that is made up of approximately 3,957 common stocks of large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region. The Advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

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**Capital Group EUPAC E Separate Account-E1** 

The investment seeks long-term growth of capital. It invests primarily in common stocks of issuers in Europe and the Pacific Basin that the investment adviser believes have the potential for growth. Growth stocks are stocks that the investment adviser believes have the potential for above-average capital appreciation. It normally will invest at least 80% of its net assets in securities of issuers in Europe and the Pacific Basin. The investment may invest a portion of its assets in common stocks and other securities of companies in emerging markets.

**Vanguard Target Retirement Income Investor Fund** 

The investment seeks to provide current income and some capital appreciation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors currently in retirement. Its indirect bond holdings are a diversified mix of short-, intermediate-, and long-term U.S. government, U.S. agency, and investment-grade U.S. corporate bonds; inflation-protected public obligations issued by the U.S. Treasury; mortgage-backed and asset-backed securities; and government, agency, corporate, and securitized investment-grade foreign bonds issued in currencies other than the U.S. dollar.

**Vanguard Target Retirement 2020 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2020 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

**Vanguard Target Retirement 2025 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2025 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

**Vanguard Target Retirement 2030 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2030 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

**Vanguard Target Retirement 2035 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2035 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

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**Vanguard Target Retirement 2040 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2040 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

**Vanguard Target Retirement 2045 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2045 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

**Vanguard Target Retirement 2050 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2050 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

**Vanguard Target Retirement 2055 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2055 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

**Vanguard Target Retirement 2060 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2060 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

**Vanguard Target Retirement 2065 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2065 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

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**Vanguard Target Retirement 2070 Investor Fund** 

The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in a mix of Vanguard mutual funds (underlying funds) according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2070 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

**Lord Abbett Short Duration Income R6 Fund** 

The investment seeks a high level of income consistent with preservation of capital. The fund invests in various types of short duration debt (or fixed income) securities. It invests at least 65% of its net assets in investment grade debt securities including corporate debt securities of U.S. issuers; corporate debt securities of non-U.S. (including emerging market) issuers that are denominated in U.S. dollars; mortgage backed, mortgage-related, and other asset-backed securities; and securities issued or guaranteed by the U.S. government, its agencies and instrumentalities; and inflation-linked investments.

**Vanguard Federal Money Market Investor Fund** 

The investment seeks to provide current income while maintaining liquidity and a stable share price of $1. The fund invests primarily in high-quality, short-term money market instruments. Under normal circumstances, at least 80% of the fund's assets are invested in securities issued by the U.S. government and its agencies and instrumentalities. The adviser maintains a dollar-weighted average maturity of 60 days or less and a dollar-weighted average life of 120 days or less. The fund generally invests 100% of its assets in U.S. government securities and therefore will satisfy the 99.5% requirement for designation as a government money market fund.

**Capital Research and Management Company American Funds Capital World Bond R6 Fund** 

The investment seeks to provide a high level of total return consistent with prudent investment management. The fund will invest at least 80% of its assets in bonds and other debt securities, which may be represented by derivatives. It invests primarily in debt securities, including asset-backed and mortgage-backed securities and securities of governmental, supranational and corporate issuers denominated in various currencies, including U.S. dollars.

**Vanguard Long-Term Investment-Grade Bond Admiral Fund** 

The investment seeks to provide a high and sustainable level of current income. Under normal circumstances, the fund will invest at least 80% of its assets in investment-grade securities (those of medium and high quality). It may invest in derivatives instruments, such as options, futures contracts, and other swap agreements. The fund uses multiple investment advisors. Each advisor independently selects and maintains a portfolio of securities for the fund.

**Dodge & Cox Income X Fund** 

The investment seeks a high and stable rate of current income, consistent with long-term preservation of capital; a secondary objective is capital appreciation. The fund invests in a diversified portfolio of bonds and other debt securities. The fund will invest at least 80% of its total assets in (1) investment-grade debt securities and (2) cash equivalents. "Investment grade" means securities rated Baa3 or higher by Moody's Investors Service, or BBB- or higher by Standard & Poor's Ratings Group or Fitch Ratings, or equivalently rated by any nationally recognized statistical rating organization, or, if unrated, deemed to be of similar quality by Dodge & Cox.

**An investment in any of the funds listed above is not a bank deposit or savings account and is not insured or guaranteed by the Federal Deposit Insurance Corporation, the Massachusetts Depositors Insurance Fund or any other government agency. As with any mutual fund investment, there is always a risk that you may lose money on your investment in any of the funds listed above.** 

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**Narragansett Bancorp Stock Fund** 

In connection with the reorganization and stock offering, the 401(k) Plan now offers the Narragansett Bancorp, Inc. Stock Fund as an additional choice among the investment options described above. The Narragansett Bancorp, Inc. Stock Fund invests primarily in the shares of common stock of Narragansett Bancorp. In connection with the reorganization and stock offering, you may, in the manner described earlier, elect to direct the 401(k) Plan trustee to invest up to 75% of your 401(k) Plan account in the Narragansett Bancorp, Inc. Stock Fund.

As of the date of this prospectus supplement, there is no established market for Narragansett Bancorp common stock. Accordingly, there is no record of the historical performance of the Narragansett Bancorp, Inc. Stock Fund. Performance of the Narragansett Bancorp, Inc. Stock Fund will depend on a number of factors, including the consolidated financial condition and profitability of Narragansett Bancorp and BayCoast Bank and market conditions for shares of Narragansett Bancorp common stock generally.

Investments in the Narragansett Bancorp, Inc. Stock Fund involve special risks common to investments in the shares of common stock. In deciding to invest a part of your account balance in the Narragansett Bancorp, Inc. Stock Fund, you should carefully consider the information set forth on page [#] of this prospectus supplement under *"Notice of Your Rights Concerning Employer Securities – The Importance of Diversifying Your Retirement Savings."*

*For a discussion of material risks you should consider, see "Risk Factors" beginning on page [#] of the attached prospectus and the section of this prospectus supplement entitled "Notice of Your Rights Concerning Employer Securities" below.* 

**Withdrawals from the 401(k) Plan** 

Applicable federal law requires the 401(k) Plan to impose substantial restrictions on the right of a 401(k) Plan participant to withdraw amounts held for his or her benefit under the 401(k) Plan before the participant's termination of employment with BayCoast Bank. A substantial federal tax penalty may also be imposed on withdrawals made before the participant's attainment of age 59 <sup>1</sup>⁄<sub>2</sub>, regardless of whether the withdrawal occurs during his or her employment with BayCoast Bank or after termination of employment.

***Withdrawal from Your Account Before Retirement.*** Once you have attained age 59 <sup>1</sup>⁄<sub>2</sub>, you may request distribution of all, or part of the amounts credited to your account attributable to elective deferrals and employer contributions.

***Hardship Withdrawals*.** If you incur a financial hardship, you may request a withdrawal from the portion of your account attributable to your pre-tax (i.e., non-Roth) elective deferrals.

***Rollover Contributions*.** You may withdraw amounts you contributed to the 401(k) Plan as a rollover contribution.

**Administration of the 401(k) Plan** 

***401(k) Plan Trustee*.** The trustee of the 401(k) Plan is Principal Trust Company. Principal Trust Company serves as trustee for all the investments funds under the 401(k) Plan, except that [name] will serve as trustee of the Narragansett Bancorp, Inc. Stock Fund only during the stock offering period.

***Plan Administrator*.** Pursuant to the terms of the 401(k) Plan, the 401(k) Plan is administered by the 401(k) Plan administrator. The name and address of the 401(k) Plan administrator is BayCoast Bank, 330 Swansea Mall Drive, Swansea, Massachusetts 02777. The 401(k) Plan administrator is responsible for the administration of the 401(k) Plan, interpretation of the provisions of the 401(k) Plan, prescribing procedures for filing applications for benefits, preparation and distribution of information explaining the 401(k) Plan, maintenance of plan records, books of account and all other data necessary for the proper administration of the 401(k) Plan, preparation and filing of all returns and reports relating to the 401(k) Plan which are required to be filed with the U.S. Department of Labor and the Internal Revenue Service, and for all disclosures required to be made to participants, beneficiaries and others under Sections 104 and 105 of ERISA.

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***Reports to Plan Participants*.** The 401(k) Plan administrator will furnish you with a statement at least quarterly showing the balance in your account as of the end of the statement period, the amount of contributions allocated to your account for that period, and any adjustments to your account to reflect earnings or losses (if any). In addition, you can go online at www.principal.com or call (800) 547-7754 at any time to review your account balances.

**Amendment and Termination** 

BayCoast Bank intends to continue the 401(k) Plan indefinitely. Nevertheless, BayCoast Bank may terminate the 401(k) Plan at any time. If the 401(k) Plan is terminated in whole or in part, then regardless of other provisions in the 401(k) Plan, you will have a fully vested interest in your account. BayCoast Bank reserves the right to make any amendment or amendments to the 401(k) Plan which do not cause any part of the trust to be used for, or diverted to, any purpose other than the exclusive benefit of participants or their beneficiaries; provided, however, that BayCoast Bank may make any amendment it determines necessary or desirable, with or without retroactive effect, to comply with ERISA.

**Merger, Consolidation or Transfer** 

In the event of the merger or consolidation of the 401(k) Plan with another plan, or the transfer of the trust assets to another plan, the 401(k) Plan requires that you receive a benefit immediately after the merger, consolidation or transfer which is equal to or greater than the benefit you would have been entitled to receive immediately before the merger, consolidation, or transfer.

**Federal Income Tax Consequences** 

The following is a brief summary of the material federal income tax aspects of the 401(k) Plan. You should not rely on this summary as a complete or definitive description of the material federal income tax aspects of the 401(k) Plan. Statutory provisions change, as do their interpretations, and their application may vary in individual circumstances. Finally, the consequences under applicable state and local income tax laws may not be the same as under the federal income tax laws. Consult your tax advisor with respect to any distribution from the 401(k) Plan and transactions involving the 401(k) Plan.

As a "tax-qualified retirement plan," the Code affords the 401(k) Plan special tax treatment, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the sponsoring employer is allowed an immediate tax deduction for the amount contributed to the 401(k) Plan each year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) participants pay no current income tax on amounts contributed by the employer on their behalf; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) earnings of the 401(k) Plan are tax-deferred, thereby permitting the tax-free accumulation of income and gains on investments.

BayCoast Bank will administer the 401(k) Plan to comply with the requirements of the Code as of the applicable effective date of any change in the law.

***Lump-Sum Distribution*.** A distribution from the 401(k) Plan to a participant or the beneficiary of a participant will qualify as a lump-sum distribution if it is made within one taxable year, on account of the participant's death, disability or separation from service, or after the participant attains age 59 <sup>1</sup>⁄<sub>2</sub>, and consists of the balance credited to the participant under the 401(k) Plan and all other profit sharing plans (and in some cases all other stock bonus plans), if any, maintained by BayCoast Bank. The portion of any lump-sum distribution required to be included in a participant's taxable income for federal income tax purposes consists of the entire amount of the lump-sum distribution, less the amount of after-tax contributions, if any, the participant has made to the 401(k) Plan and any other profit sharing plans maintained by BayCoast Bank, which is included in the distribution.

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***Narragansett Bancorp, Inc. Common Stock Included in Lump-Sum Distribution*.** If a lump-sum distribution includes Narragansett Bancorp common stock, the distribution generally will be taxed in the manner described above, except that the total taxable amount may be reduced by the amount of any net unrealized appreciation with respect to Narragansett Bancorp common stock, that is, the excess of the value of Narragansett Bancorp common stock at the time of the distribution over its cost or other basis of the securities to the trust. The tax basis of Narragansett Bancorp common stock, for purposes of computing gain or loss on its subsequent sale, equals the value of Narragansett Bancorp common stock at the time of distribution, less the amount of any net unrealized appreciation. Any gain on a subsequent sale or other taxable disposition of Narragansett Bancorp common stock, to the extent of the amount of net unrealized appreciation at the time of distribution, will constitute long-term capital gain, regardless of the holding period of Narragansett Bancorp common stock. Any gain on a subsequent sale or other taxable disposition of Narragansett Bancorp common stock, in excess of the amount of net unrealized appreciation at the time of distribution, will be considered long-term capital gain. The recipient of a distribution may elect to include the amount of any net unrealized appreciation in the total taxable amount of the distribution, to the extent allowed by regulations to be issued by the Internal Revenue Service.

***Distributions: Rollovers and Direct Transfers to Another Qualified Plan or to an IRA*.** You may roll over virtually all distributions from the 401(k) Plan to another qualified plan or to an individual retirement account (IRA) in accordance with the terms of the other plan or the IRA.

**Notice of Your Rights Concerning Employer Securities** 

Federal law provides specific rights concerning investments in employer securities, such as Narragansett Bancorp common stock. Because you may in the future have investments in Narragansett Bancorp, Inc. Stock Fund under the Plan, you should take the time to read the following information carefully.

***Your Rights Concerning Employer Securities*.** The 401(k) Plan must allow you to elect to move any portion of your account that is invested in the Narragansett Bancorp, Inc. Stock Fund from that investment into other investment alternatives under the 401(k) Plan. You may contact the 401(k) Plan Administrator disclosed above for specific information regarding this new right, including how to make this election. In deciding whether to exercise this right, you will want to give careful consideration to the information below that describes the importance of diversification. All the investment options under the 401(k) Plan are available to you if you decide to diversify out of the Narragansett Bancorp, Inc. Stock Fund.

***The Importance of Diversifying Your Retirement Savings*.** To help achieve long-term retirement security, you should give careful consideration to the benefits of a well-balanced and diversified investment portfolio. Spreading your assets among different types of investments can help you achieve a favorable rate of return, while minimizing your overall risk of losing money. This is because market or other economic conditions that cause one category of assets, or one particular security, to perform well often cause another asset category, or another particular security, to perform poorly. If you invest more than 20% of your retirement savings in any one company or industry, your savings may not be properly diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help you manage investment risk.

In deciding how to invest your retirement savings, you should take into account all your assets, including any retirement savings outside of the 401(k) Plan. No single approach is right for everyone because, among other factors, individuals have different financial goals, different time horizons for meeting their goals, and different tolerance for risk. Therefore, you should carefully consider the rights described here and how these rights affect the amount of money that you invest in Narragansett Bancorp common stock through the 401(k) Plan.

It is also important to periodically review your investment portfolio, your investment objectives, and the investment options under the 401(k) Plan to help ensure that your retirement savings will meet your retirement goals.

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**Additional ERISA Considerations** 

As noted above, the 401(k) Plan is subject to certain provisions of ERISA, including special provisions relating to control over the 401(k) Plan's assets by participants and beneficiaries. The 401(k) Plan's feature that allows you to direct the investment of your account balances is intended to satisfy the requirements of Section 404(c) of ERISA relating to control over plan assets by a participant or beneficiary. The effect of this is two-fold. First, you will not be deemed a "fiduciary" because of your exercise of investment discretion. Second, no person who otherwise is a fiduciary, such as BayCoast Bank, the 401(k) Plan Administrator, or the 401(k) Plan's trustee, is liable under the fiduciary responsibility provision of ERISA for any loss which results from your exercise of control over the assets in your Plan account.

Because you will be entitled to invest all or a portion of your account balance in the Plan in Narragansett Bancorp common stock, the regulations under Section 404(c) of ERISA require that the 401(k) Plan establish procedures that ensure the confidentiality of your decision to purchase, hold, or sell employer securities, except to the extent that disclosure of such information is necessary to comply with federal or state laws not preempted by ERISA. These regulations also require that your exercise of voting and similar rights with respect to the common stock be conducted in a way that ensures the confidentiality of your exercise of these rights.

**Securities and Exchange Commission Reporting and Short-Swing Profit Liability** 

Section 16 of the Securities Exchange Act of 1934, as amended, imposes reporting requirements and liability provisions on officers, directors, and persons beneficially owning more than 10% of public companies such as Narragansett Bancorp. Section 16(a) of the Securities Exchange Act of 1934 requires the filing of reports of beneficial ownership. Within 10 days of becoming an officer, director or person beneficially owning more than 10% of the shares of Narragansett Bancorp, the individual must file a Form 3 reporting initial beneficial ownership with the Securities and Exchange Commission. Changes in beneficial ownership, such as purchases, sales, and gifts, generally must be reported periodically, either on a Form 4 within two business days after the change occurs, or in limited circumstances, annually on a Form 5 within 45 days after the close of Narragansett Bancorp's fiscal year. Discretionary transactions in and beneficial ownership of the common stock through the Narragansett Bancorp, Inc. Stock Fund of the Plan by officers and persons beneficially owning more than 10% of the common stock of Narragansett Bancorp generally must be reported to the Securities and Exchange Commission by such individuals.

In addition to the reporting requirements described above, Section 16(b) of the Securities Exchange Act of 1934, as amended, provides for the recovery by Narragansett Bancorp of profits realized by an officer, director or any person beneficially owning more than 10% of Narragansett Bancorp common stock resulting from non-exempt purchases and sales of Narragansett Bancorp common stock within any six-month period.

The Securities and Exchange Commission has adopted rules that provide exemptions from the profit recovery provisions of Section 16(b) for all transactions in employer securities within an employee benefit plan, provided certain requirements are met. These requirements generally involve restrictions upon the timing of elections to acquire or dispose of employer securities for the accounts of Section 16(b) persons.

Except for distributions of Narragansett Bancorp common stock due to death, disability, retirement, termination of employment or under a qualified domestic relations order, persons subject to Section 16(b) are required to hold shares of Narragansett Bancorp common stock distributed from the 401(k) Plan for six months following such distribution and are prohibited from directing additional purchases within the Narragansett Bancorp, Inc. Stock Fund for six months after receiving such a distribution.

**Financial Information Regarding 401(k) Plan Assets** 

Financial information regarding the net assets available for 401(k) Plan benefits and the change in net assets available for 401(k) Plan benefits is available upon written request to the 401(k) Plan Administrator at the address shown above.

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**LEGAL OPINION** 

The validity of the issuance of the Narragansett Bancorp common stock has been passed upon by Luse Gorman, PC, Washington, D.C., which firm acted as special counsel to Narragansett Bancorp in connection with Narragansett Bancorp's stock offering.

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**PROSPECTUS**![LOGO](g122170dsp283.jpg)

**(Proposed Holding Company for BayCoast Bank)** 

**Up to 7,912,000 Shares of Common Stock** 

**(Subject to increase to up to 9,098,800 shares)** 

Narragansett Bancorp, Inc., a newly formed Maryland corporation, is offering up to 7,912,000 shares of its common stock for sale at $10.00 per share on a best efforts basis. The shares are being offered as part of the reorganization of BayCoast Bank and Narragansett Financial Corporation into a two-tier holding company structure, with Narragansett Bancorp, Inc. to be a mid-tier stock holding company whose stock will be partially owned by public stockholders.

The shares being offered represent 43% of the shares of common stock of Narragansett Bancorp, Inc. that will be outstanding following the offering. We will also contribute 2% of our outstanding shares of common stock and $600,000 in cash to a charitable foundation that we are forming in connection with the reorganization and offering. The remaining 55% of our outstanding common stock will be owned by Narragansett Financial Corporation, the existing Massachusetts-chartered mutual holding company for BayCoast Bank. These percentages will not be affected by the number of shares we sell in the offering.

We must sell a minimum of 5,848,000 shares to complete the offering. We may sell up to 9,098,800 shares to reflect demand for the shares or changes in market conditions following the commencement of the offering, without resoliciting subscribers.

There is no established market for our common stock. We expect that our common stock will be traded on the Nasdaq Capital Market under the symbol "NARA" upon conclusion of the offering. We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act. In addition, we will qualify as a "controlled company" within the meaning of the Nasdaq Stock Market corporate governance guidelines.

We are offering the shares of common stock in a "subscription offering" to eligible depositors of BayCoast Bank and to BayCoast Bank's employee stock ownership plan. Depositors who had accounts with aggregate balances of at least $50 at the close of business on May 31, 2025 will have first priority to purchase shares of common stock of Narragansett Bancorp, Inc. Employees, officers, directors, trustees and corporators of BayCoast Bank and Narragansett Financial Corporation also have rights to purchase shares in the subscription offering, subject to the priority rights of depositors and the employee stock ownership plan. Shares of common stock not purchased in the subscription offering may be offered for sale to the general public in a community offering, with a preference given to residents of the communities served by BayCoast Bank. To the extent any shares offered for sale are not purchased in the subscription or community offerings, they may be offered for sale through a syndicate of broker dealers, referred to as a "syndicated offering" in this prospectus.

The minimum number of shares of common stock you may order is 25 shares. The maximum number of shares of common stock that can be ordered by any person in the offering, or persons exercising subscription rights through a single deposit account, is 30,000 shares ($300,000), and no person together with associates or a group of persons acting in concert may purchase more than 50,000 shares ($500,000).

The offering is scheduled to expire at 12:00 noon, Eastern Time, on [expiration date]. We may extend the expiration date without notice to you, until [extension date]. The offering must be completed by [final extension date], unless we receive regulatory approval for a further extension. Once submitted, orders are irrevocable unless the offering is terminated or extended beyond [extension date], or the number of shares of common stock to be sold is increased to more than 9,098,800 shares or decreased to less than 5,848,000 shares. If the offering is extended beyond [extension date], all subscribers will be notified and given an opportunity to confirm, cancel or change their orders. If you do not respond to this notice, we will promptly return your funds with interest or cancel your deposit account withdrawal authorization. If the number of shares to be sold in the offering is increased to more than 9,098,800 shares or decreased to less than 5,848,000 shares, we will resolicit subscribers, and all funds delivered to us to purchase shares of common stock in the subscription and community offerings will be returned promptly with interest. Funds submitted for the purchase of shares in the offering will be held in a segregated account at BayCoast Bank and will earn interest at 0.10% until completion or termination of the offering.

Piper Sandler & Co. will use its best efforts to assist us in selling our common stock, but is not obligated to purchase any of the common stock that is being offered for sale. In addition, our officers, directors, trustees and employees may participate in the solicitation of offers to purchase common stock in reliance upon Rule 3a4-1 under the Securities Exchange Act of 1934, as amended. Subscribers will not pay any commissions to purchase shares of common stock in the offering.

**OFFERING SUMMARY** 

**Price: $10.00 per share** 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Minimum** | **Midpoint** | **Maximum** | **Adjusted<br>Maximum** |
|  Number of shares | 5848000 | 6880000 | 7912000 | 9098800 |
|  Gross offering proceeds | $58480000 | $68800000 | $79120000 | $90988000 |
|  Estimated offering expenses, excluding selling agent fees and expenses | $2050000 | $2050000 | $2050000 | $2050000 |
|  Selling agent fees and expenses (1)(2) | $951134 | $1078790 | $1206446 | $1353250 |
|  Estimated net proceeds | $55478866 | $65671210 | $75863554 | $87584750 |
|  Estimated net proceeds per share | $9.49 | $9.55 | $9.59 | $9.63 |

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(1) See "The Reorganization and Offering—Plan of Distribution; Selling Agent Compensation" for a
discussion of Piper Sandler & Co.'s compensation for this offering and the compensation to be received by Piper Sandler & Co. and the other broker-dealers who may participate in a syndicated offering.

(2) Excludes record agent fees and expenses paid to Piper Sandler & Co. See "The Reorganization and
Offering—Plan of Distribution; Selling Agent Compensation."

**THIS INVESTMENT INVOLVES A DEGREE OF RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.** 

**PLEASE READ "[RISK FACTORS](#tx122170_2)" BEGINNING ON PAGE 19.** 

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**THESE SECURITIES ARE NOT DEPOSITS OR SAVINGS ACCOUNTS AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, ANY OTHER GOVERNMENTAL AGENCY OR THE DEPOSITORS INSURANCE FUND. NONE OF THE SECURITIES AND EXCHANGE COMMISSION, THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, THE MASSACHUSETTS COMMISSIONER OF BANKS, THE FEDERAL DEPOSIT INSURANCE CORPORATION NOR ANY STATE SECURITIES REGULATOR HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.**![LOGO](g122170piper_med.jpg)

For assistance, please contact the Stock Information Center at [stock center number].

The date of this prospectus is [prospectus date].

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![LOGO](g122170dsp285.jpg)

93 95 MASSACHUSETTS 495 95 BOSTON bank. 90 90 95 495 FOXBOROUGH 295 NORTH DIGHTON PROVIDENCE • • BERKLEY • SEEKONK 495 195 CRANSTON SWANSEA SOMERSET 195 FALL RIVER • NEW BEDFORD BBRISTOL TIVERTON\* • FAIRHAVEN DARTMOUTH PORTSMOUTH • WESTPORT RHODE ISLAND LITTLE COMPTON ^ NEWPORT BERKLEY,MA FAIRHAVEN,MA FOXBOROUGH,MA PORTSMOUTH,RI SWANSEA, MA 2 Locust St. 75 Alden Rd. 8 Foxborough Blvd. 1430 E Main Rd. BayCoast Place Berkley, MA Fairhaven, MA Foxborough, MA Portsmouth, RI 330 Swansea Mall Dr. Swansea, MA BRISTOL, RI FALLRIVER,MA LITTLECOMPTON, RI PROVIDENCE, RI 554 Wilb A 601HopeSt. 310 Airport Rd. 2 Meeting house Ln. 78 Dorrance St. Bristol, RI Fall River, MA Little Compton, RI Providence, RI 1485PleasantSt. WESTPORT,MA CRANSTON,RI rlln. NEWBEDFORD,MA SEEKONK,MA .' FallRiver,MA 787 MainRd. 85 Sockanosset Cross Rd. 1000Ashley Blvd. 110TauntonAve. m Westport,MA Cranston, RI River's Edge New Bedford, MA Seekonk, MA 20TurnerSt. 23ElmSt. TIVERTON,RI DARTMOUTH,MA FallRiver, MA SOMERSET,MA NewBedford,MA 1 Crandall Rd. 714DartmouthSt. Somerset Plaza 490 RobesonSt. Tiverton, RI Dartmouth, MA 921 G.A.R. Highway , Fall River, MA NEWPORT, RI 299 State Rd. 137 Broadway Route 6 335 Stafford Rd. Somerset, MA Dartmouth, MA Newport, RI Fall River, MA H 81 Troy St. NORTH DIGHTON, MA Fall River, MA 438 Spring St. North Dighton, MA

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**TABLE OF CONTENTS** 

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| | |
|:---|:---|
|  **[SUMMARY](#tx122170_1)** | **1** |
|  **[RISK FACTORS](#tx122170_2)** | **19** |
|  **[SELECTED FINANCIAL AND OTHER DATA](#tx122170_3)** | **46** |
|  **[CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#tx122170_4)** | **48** |
|  **[HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING](#tx122170_5)** | **50** |
|  **[OUR POLICY REGARDING DIVIDENDS](#tx122170_6)** | **52** |
|  **[MARKET FOR THE COMMON STOCK](#tx122170_7)** | **53** |
|  **[HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE OF BAYCOAST BANK](#tx122170_8)** | **54** |
|  **[CAPITALIZATION](#tx122170_9)** | **55** |
|  **[PRO FORMA DATA](#tx122170_10)** | **56** |
|  **[COMPARISON OF VALUATION AND PRO FORMA INFORMATION WITH AND WITHOUT THE CHARITABLE FOUNDATION](#tx122170_11)** | **61** |
|  **[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#tx122170_12)** | **62** |
|  **[BUSINESS OF NARRAGANSETT FINANCIAL CORPORATION](#tx122170_13)** | **78** |
|  **[BUSINESS OF NARRAGANSETT BANCORP, INC.](#tx122170_14)** | **78** |
|  **[BUSINESS OF BAYCOAST BANK](#tx122170_15)** | **79** |
|  **[TAXATION](#tx122170_16)** | **99** |
|  **[SUPERVISION AND REGULATION](#tx122170_17)** | **100** |
|  **[MANAGEMENT](#tx122170_18)** | **112** |
|  **[SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS](#tx122170_19)** | **123** |
|  **[THE REORGANIZATION AND OFFERING](#tx122170_20)** | **124** |
|  **[THE CHARITABLE FOUNDATION](#tx122170_21)** | **143** |
|  **[RESTRICTIONS ON THE ACQUISITION OF NARRAGANSETT BANCORP, INC. AND BAYCOAST BANK](#tx122170_22)** | **146** |
|  **[DESCRIPTION OF CAPITAL STOCK OF NARRAGANSETT BANCORP, INC.](#tx122170_23)** | **152** |
|  **[TRANSFER AGENT AND REGISTRAR](#tx122170_24)** | **153** |
|  **[LEGAL AND TAX MATTERS](#tx122170_25)** | **154** |
|  **[EXPERTS](#tx122170_26)** | **154** |
|  **[WHERE YOU CAN FIND MORE INFORMATION](#tx122170_27)** | **154** |
|  **[REGISTRATION REQUIREMENTS](#tx122170_28)** | **154** |
|  **[INDEX TO CONSOLIDATED FINANCIAL STATEMENTS OF NARRAGANSETT FINANCIAL CORPORATION](#tx122170_29)** | **F-1** |

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i

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**SUMMARY** 

The following summary provides material information regarding the offering of common stock by Narragansett Bancorp, Inc. and the business of BayCoast Bank. The summary may not contain all the information that is important to you. For additional information, you should read this entire prospectus carefully, including the consolidated financial statements and the notes to the financial statements of BayCoast Bank, and the section entitled "Risk Factors." In certain circumstances, where appropriate, the terms "we, "us" and "our" refer collectively to Narragansett Financial Corporation, Narragansett Bancorp, Inc., BayCoast Bank or to any of those entities, depending on the context.

**The Companies** 

**Narragansett Financial Corporation** 

Narragansett Financial Corporation has been the Massachusetts-chartered mutual holding company of BayCoast Bank since 1998. Upon completion of the reorganization and offering, Narragansett Financial Corporation will own 55% of Narragansett Bancorp, Inc.'s common stock. Narragansett Financial Corporation is a non-stock company that will be required by law to own a majority of the outstanding voting stock of Narragansett Bancorp, Inc. for so long as Narragansett Financial Corporation remains in existence. Narragansett Financial Corporation, through its board of trustees, will be able to exercise voting control over virtually all matters put to a vote of stockholders of Narragansett Bancorp, Inc.

Narragansett Financial Corporation is subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks and the Board of Governors of the Federal Reserve System (the "Federal Reserve Board").

At March 31, 2026, on a consolidated basis, Narragansett Financial Corporation had total assets of $2.90 billion, total deposits of $2.47 billion and total retained earnings of $186.6 million. We had net income of $1.2 million, $6.0 million and $5.3 million for the three months ended March 31, 2026 and the years ended December 31, 2025 and 2024, respectively.

**Narragansett Bancorp, Inc.** 

This offering is being made by Narragansett Bancorp, Inc., a Maryland corporation that was incorporated in June 2026 as part of the reorganization and offering.

Upon completion of the reorganization and offering, Narragansett Bancorp, Inc. will become the bank holding company for BayCoast Bank and will own all the outstanding shares of capital stock of BayCoast Bank. To date, Narragansett Bancorp, Inc. has engaged in organizational activities only. Narragansett Bancorp, Inc.'s primary business activity will be to own all the outstanding shares of capital stock of BayCoast Bank. Narragansett Bancorp, Inc. will be authorized to engage in any other business activities that are permissible for bank holding companies under Massachusetts and federal law.

Upon completion of the reorganization and offering, Narragansett Financial Corporation will own 55% and public stockholders will own 43% of Narragansett Bancorp, Inc.'s common stock. Public stockholders will not be able to exercise voting control over most matters put to a vote of stockholders.

Narragansett Bancorp, Inc. will be subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks and the Federal Reserve Board.

Narragansett Bancorp, Inc.'s website address will be https://baycoast.bank. Information on our website is not and should not be considered a part of this prospectus.

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**BayCoast Bank** 

BayCoast Bank is a Massachusetts-chartered savings bank headquartered in Swansea, Massachusetts. BayCoast Bank was originally chartered in 1851, and operates from its main office and 25 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 business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in commercial real estate loans, multi-family residential real estate loans, one- to four-family residential real estate loans, home equity loans and lines of credit, commercial business loans, construction loans and consumer loans, as well as in investment securities.

BayCoast Bank has a number of non-interest income business lines operated through subsidiaries of BayCoast Bank that also expand our customer relationships. BayCoast Mortgage Company, LLC ("BayCoast Mortgage"), which originates and sells conforming and jumbo residential mortgages; Plimoth Trust Company, LLC, d/b/a Plimoth Investment Advisors ("Plimoth Investment Advisors"), which provides investment management and trust services; BayCoast Insurance, LLC ("BayCoast Insurance"), an indirect subsidiary of BayCoast Bank, which provides insurance products to consumers and businesses; Priority Funding, LLC ("Priority Funding"), which originates and sells manufactured home loans; and Teamwork Funding, LLC ("Teamwork Funding"), a wholly owned subsidiary of Priority Funding, which provides broker lender services for manufactured home loans and primarily conducts business in Arizona; and Stack Ally, LLC ("Stack Ally"), which has been established to provide data integration and automation solutions to organizations.

We consider the South Coast of Massachusetts and the State of Rhode Island as BayCoast Bank's primary market area for lending and gathering deposits. As of March 31, 2026, BayCoast Mortgage operated in 11 states and Priority Funding operated in 21 states.

BayCoast Bank is subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks and the Federal Deposit Insurance Corporation (the "FDIC").

BayCoast Bank's main office is located at 330 Swansea Mall Drive, Swansea, Massachusetts 02777, and our telephone number is (888) 806-2872. BayCoast Bank's website address is https://baycoast.bank. Information on our website is not and should not be considered a part of this prospectus.

**Our Reorganization and Offering** 

Currently, BayCoast Bank is wholly owned by Narragansett Financial Corporation, a mutual holding company with no stockholders. We will establish Narragansett Bancorp, Inc. as part of the reorganization of BayCoast Bank and Narragansett Financial Corporation into a two-tier mutual holding company structure, whereby Narragansett Financial Corporation will contribute all of BayCoast Bank's stock held by Narragansett Financial Corporation to Narragansett Bancorp, Inc. Following the reorganization, BayCoast Bank will become a wholly-owned subsidiary of Narragansett Bancorp, Inc., and Narragansett Bancorp, Inc. will be a majority-owned subsidiary of Narragansett Financial Corporation. Corporators' voting rights in Narragansett Financial Corporation will remain the same after the reorganization.

We are conducting the reorganization and offering under the terms of a plan of holding company reorganization and plan of stock issuance (the "plan of reorganization"), which is subject to approval by Narragansett Financial Corporation's corporators. In addition, the reorganization and offering is subject to the approval of the Massachusetts Commissioner of Banks and the Board of Governors of the Federal Reserve System, or the "Federal Reserve Board."

In connection with the reorganization, we are offering for sale shares of common stock of Narragansett Bancorp, Inc. at a price of $10.00 per share. All investors will pay the same price per share in the offering. See "—Terms of the Offering."

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In a mutual holding company reorganization and offering, only a minority interest in the stock of a mutual holding company subsidiary is sold to the public. Under Federal and Massachusetts law and regulation, our mutual holding company, Narragansett Financial Corporation, must own a majority of our outstanding common stock for as long as Narragansett Financial Corporation remains in existence. Consequently, the shares that we are permitted to sell in the offering represent a minority of the shares of Narragansett Bancorp, Inc. that will be outstanding when the offering is completed. Based on an evaluation of our capital needs, our board of directors has decided that 43% of our outstanding shares of common stock will be offered for sale in the offering, 2% of our outstanding shares will be contributed to a charitable foundation to be formed in connection with the reorganization and offering, and 55% of our shares will be retained by Narragansett Financial Corporation. Our board of directors has determined that offering a minority of our outstanding shares of common stock for sale in the offering will better enable management to effectively reinvest the capital raised in the offering.

**Our Organizational Structure** 

The following diagram shows our proposed organizational structure following the completion of the reorganization and offering.

![LOGO](g122170dsp289.jpg)

**Business Strategy** 

As one of the oldest community banks in New England and the United States, we believe that our reputation for providing personalized customer service is our strongest asset and our most effective strategy to continue to grow and be a profitable bank.

Subject to market conditions, we will continue our focus on growing our balance sheet and improving profitability by continuing to originate one- to four-family residential mortgage loans and increasing the origination of multi-family and commercial real estate loans. Additionally, we intend to supplement revenue growth through our non-interest income business lines, which are operated through direct and indirect subsidiaries of BayCoast Bank: mortgage lending (BayCoast Mortgage), wealth management services (Plimoth Investment Advisors), manufactured home financing (Priority Funding), and insurance (BayCoast Insurance).

These businesses help deepen customer relationships, broaden engagement, and support our long-term stability.

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The proceeds from the stock offering will enable us to continue to implement our prudent growth strategy, and we plan to employ the following strategies to enhance profitability and deepen our relationships with our clients:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Operational Discipline and Scalability.** We will continue to diversify our commercial and industrial loan
portfolio by targeting new industries and expanding our reach across broader commercial client segments while improving operational productivity by deploying upgraded systems and automating core workflows. We believe that streamlining our processes
will reduce our cost-to-serve while maintaining asset quality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenue Diversification and Earnings Resilience.** We continue to focus on growing our fee-based businesses in order to generate consistent, non-cyclical earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Relationship Depth and Deposit Strength.** We want to serve as the central financial hub for our clients. By
delivering comprehensive, personalized solutions—ranging from advanced treasury management for commercial clients to tailored advisory services for retail clients—we deepen our relationship with existing clients and can capture a larger
share of wallet and transition single-product users into primary banking relationships. This approach directly improves our core deposit strength, generating the stable, low-cost funding necessary for our
lending initiatives, optimizes our capital structure, and strengthens long-term liquidity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Customer and Community Impact.** We are committed to delivering exceptional customer experiences alongside
robust financial inclusion initiatives. By expanding access to tailored banking solutions and launching targeted financial education programs, we empower underserved populations and local businesses to achieve their financial goals. This proactive
community engagement not only fosters long-term client loyalty, but also ensures that our institutional growth remains aligned with the economic well-being and prosperity of the communities we serve.

Our vision is to be the preferred financial partner and workplace in our market, deepening customer relationships to expand financial engagement, drive sustainable growth, and deliver exceptional value for our shareholders, customers, employees, and the communities we serve.

Reflecting our focus on our community, in connection with the offering, we intend to establish a charitable foundation called BayCoast Charitable Foundation, Inc., and to fund it with $600,000 in cash and a number of shares of our common stock equal to 2% of the shares that will be outstanding following the completion of the offering. The purpose of this foundation will be to make contributions to support various charitable organizations operating in our community now and in the future.

A full description of our products and services can be found under "Business of BayCoast Bank."

**Reasons for the Reorganization and Offering** 

The primary reasons for our decision to conduct the reorganization and the offering are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• facilitate our ability to repay subordinated debt currently held by Narragansett Financial Corporation, which
totaled $95.0 million at March 31, 2026; and which will be transferred to Narragansett Bancorp, Inc. upon or shortly following the completion of the reorganization and offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhance our capital base;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• offer our depositors, employees, management, directors, trustees and corporators an opportunity to purchase an
equity ownership interest in BayCoast Bank and, thereby, an economic interest in our future success;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• support our local communities through a contribution to a new charitable foundation that we will organize in
connection with the reorganization and offering, which should enable the communities that we serve to share in our long-term growth; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase our flexibility to structure and finance the expansion of our operations.

Providing local customers and other residents with an opportunity to become indirect equity owners of BayCoast Bank, and thereby participate in possible stock price appreciation, is consistent with our objective of being a locally-owned financial institution serving local financial needs. The board of directors and senior management believe that, through local stock ownership, current customers and non-customers who purchase common stock will seek to enhance the financial success of BayCoast Bank by providing their banking business and increasing referrals to BayCoast Bank.

Subject to stockholder approval following the completion of the offering, we believe we would also be better able to retain and attract qualified personnel by establishing stock-based benefit plans for management and employees.

The capital raised in the offering is expected to provide us with additional capital to support the origination of new loans and higher lending limits, support the growth of our banking franchise, provide an additional cushion against unforeseen risks and expand our asset and deposit base.

The two-tier mutual holding company structure allows Narragansett Financial Corporation to continue to borrow funds, on a secured and unsecured basis and/or to issue debt. In addition, Narragansett Bancorp, Inc. may also borrow funds and/or issue debt or capital stock to the public or in a private placement, although any issuance of capital stock would require regulatory approval. The proceeds of any such borrowings, debt issuance or capital stock issuance may be contributed to BayCoast Bank as core capital for regulatory capital purposes. We have not made a determination to borrow funds or issue debt or additional capital stock at the present time. However, at March 31, 2026, Narragansett Financial Corporation had outstanding $95.0 million of subordinated debt, which will be transferred to Narragansett Bancorp, Inc. at or shortly following the completion of the reorganization.

**Terms of the Offering** 

We are offering between 5,848,000 and 7,912,000 shares of common stock of Narragansett Bancorp, Inc. to eligible depositors of BayCoast Bank, our employee stock ownership plan and employees, officers, directors, trustees and corporators of BayCoast Bank and Narragansett Financial Corporation, and we may offer shares to the public to the extent shares remain available, with a preference given first to natural persons (including trusts of natural persons) residing in the communities where our branch offices are located. We may increase the maximum number of shares that we sell in the offering by up to 15%, to 9,098,800 shares, as a result of demand for the shares of common stock in the offering or changes in market conditions, including those for financial institution stocks. Subscription priorities have been established for the allocation of common stock to the extent the subscription offering is oversubscribed. See "The Reorganization and Offering—Subscription Offering and Subscription Rights" for a description of allocation procedures in the event of an oversubscription.

If the offering is extended beyond [extension date], all subscribers will be notified and given an opportunity to confirm, cancel or change their orders. If you do not respond to this notice, we will promptly return your funds with interest or cancel your deposit account withdrawal authorization. If the number of shares to be sold in the offering is increased to more than 9,098,800 shares or decreased to less than 5,848,000 shares, we will resolicit subscribers, and all funds delivered to us to purchase shares of common stock in the subscription and community offerings will be returned promptly with interest.

All investors will pay the same $10.00 purchase price per share, regardless of whether the shares are purchased in the subscription offering, the community offering or a syndicated offering. Investors will not be charged a commission to purchase shares of common stock. Piper Sandler & Co., our marketing agent in connection with the offering ("Piper Sandler"), will use its best efforts to assist us in selling our shares of common stock, but Piper Sandler is not obligated to purchase any shares in the offering.

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**How We Determined the Offering Range and the $10.00 Price Per Share** 

The amount of common stock we are offering for sale is based on an independent appraisal of our pro forma market value prepared by RP Financial, LC. ("RP Financial"), a firm experienced in appraisals of financial institutions. RP Financial is of the opinion that as of May 4, 2026, and assuming we sell a minority of our shares in the offering, the estimated pro forma market value of the common stock of Narragansett Bancorp, Inc., including the shares to be contributed to the charitable foundation, was $160.0 million. Based on applicable regulations, this market value forms the midpoint of a valuation range with a minimum of $136.0 million and a maximum of $184.0 million.

Our board of directors determined that the common stock should be sold at $10.00 per share and that 43% of the outstanding shares of Narragansett Bancorp, Inc. common stock should be offered for sale in the offering and 55% of the outstanding shares should be held by Narragansett Financial Corporation, with 2% of the outstanding shares being held by the charitable foundation. Therefore, based on the valuation range, the number of shares of Narragansett Bancorp, Inc. common stock that will be sold in the offering will range from 5,848,000 shares to 7,912,000 shares. If demand for the shares or market conditions warrant, our appraised value can be increased by up to 15%, which would result in an appraised value of $211.6 million and an offering of 9,098,800 shares of common stock. The $10.00 per share price was selected primarily because it is the price most commonly used in mutual holding company reorganizations and offerings and mutual-to-stock conversions.

The appraisal is based in part on our financial condition and results of operations, the pro forma effect of the additional capital raised by the sale of shares of common stock in the offering, and an analysis of a peer group of ten publicly traded bank holding companies, savings and loan holding companies and savings banks that RP Financial considers comparable to Narragansett Bancorp, Inc. on a pro forma basis. See "The Reorganization and Offering—How We Determined the Stock Pricing and the Number of Shares to be Issued." The appraisal peer group consists of the following companies, all of which are traded on the Nasdaq Stock Market. Unless otherwise indicated, total assets are as of March 31, 2026.

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| | | | |
|:---|:---|:---|:---|
| **Company Name** | **Ticker**<br>**Symbol** | **Headquarters** | **Total Assets** |
|  |  |  | (In millions) |
|  ECB Bancorp, Inc. | ECBK | Everett, MA | $1650 |
|  FS Bancorp, Inc. | FSBW | Mountlake Terrace, WA | 3204 |
|  Hingham Institution for Savings | HIFS | Hingham, MA | 4548 |
|  Kearny Financial Corp. | KRNY | Fairfield, NJ | 7608 |
|  Northeast Community Bancorp, Inc. | NECB | White Plains, NJ | 2205 |
|  Riverview Bancorp, Inc. | RVSB | Vancouver, WA | 1464 |
|  Timberland Bancorp, Inc. | TSBK | Hoquiam, WA | 2046 |
|  TrustCo Bank Corp NY | TRST | Glenville, NY | 6508 |
|  Waterstone Financial, Inc. | WSBF | Wauwatosa, WI | 2251 |
|  Western New England Bancorp, Inc. | WNEB | Westfield, MA | 2765 |

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In applying each of the valuation methods, RP Financial considered adjustments to the pro forma market value based on a comparison of Narragansett Bancorp, Inc. with the peer group. RP Financial advised the board of directors that the valuation conclusion included the following adjustments relative to the peer group. RP Financial made a moderate downward adjustment for profitability, growth and viability of earnings and slight downward adjustments for financial condition, asset growth and dividends. RP Financial made no adjustments for liquidity of the shares, marketing of the issue, management, primary market area, and effect of government regulations and regulatory reform. The downward adjustment for profitability, growth and viability of earnings took into consideration Narragansett Bancorp, Inc.'s less favorable efficiency ratio and lower pro forma returns as a percent of assets and equity relative to the comparable peer group measures. The downward adjustment for financial condition took into consideration Narragansett Bancorp, Inc.'s lower pro forma tangible equity-to-assets ratio and less favorable credit quality measures. The downward adjustment for dividends took into consideration the mutual

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holding company ownership structure and dividend waiver regulations in place for mutual holding companies that impact minority ownership ratios, in comparison to the fully-converted peer group companies, as well Narragansett Bancorp, Inc.'s lower pro forma return as a percent of assets and lower pro forma equity-to-assets ratio. The downward adjustment for asset growth took into consideration Narragansett Bancorp, Inc.'s lower historical asset growth and lower pro forma leverage capacity based on its lower pro forma equity-to-assets ratio.

The independent valuation appraisal considered the pro forma impact of the offering. Consistent with federal appraisal guidelines, the appraisal considers three primary methodologies: (i) the pro forma price-to-book value approach applied to both reported book value and tangible book value; (ii) the pro forma price-to-earnings approach applied to reported and core earnings; and (iii) the pro forma price-to-assets approach. The market value ratios applied in the utilized methodologies were based upon the current market valuations of the peer group companies identified by RP Financial, subject to valuation adjustments applied by RP Financial to account for differences between us and our peer group. RP Financial placed the greatest emphasis on the price-to-book value and price-to earnings approaches in estimating pro forma market value. RP Financial did not consider a pro forma price-to-assets approach to be as meaningful in preparing the appraisal, as this approach is more meaningful when a company has low equity or earnings. The price-to-assets approach is less meaningful for a company like us, as we have equity in excess of regulatory capital requirements.

To account for the unique characteristics of publicly-traded shares of a mutual holding company, RP Financial included in its appraisal the pricing ratios of Narragansett Bancorp, Inc. on both a non-fully converted basis and a fully converted basis and compared each to non-fully converted and fully converted pricing ratios of the peer group. The decision to also provide Narragansett Bancorp, Inc.'s and the peer group's pricing ratios on a fully converted basis is meant to establish the pro forma market value range of 100% of the shares of Narragansett Bancorp, Inc., which forms the basis for determining the offering range. Tables presenting select pricing ratios of Narragansett Bancorp, Inc. on both a non-fully converted basis and a fully converted basis and comparing such ratios to similar ratios for the peer group are set forth below.

The following table presents a summary of selected pricing ratios for the peer group companies and for us on a non-fully converted basis (i.e. the table assumes that 43% of our outstanding shares of common stock are issued in the offering, as opposed to 100% of our outstanding shares of common stock). Price-to-earnings multiples are calculated on a trailing twelve-month basis for the twelve months ended March 31, 2026, such that information with respect to Narragansett Bancorp, Inc. will be different than information presented in "Pro Forma Data." These figures are from the RP Financial appraisal report.

Compared to the average pricing ratios of the peer group, and based upon the information in the following table, our pro forma pricing ratios at the midpoint of the offering range indicated a premium of 77.6% on a non-fully converted price-to-earnings multiple, a discount of 33.8% on a non-fully converted price-to-book value basis and a discount of 28.6% on a non-fully converted price-to-tangible book value basis.

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| | | | |
|:---|:---|:---|:---|
|  | **Non-Fully Converted<br>Pro Forma<br>Price-to-Earnings Multiple** | **Non-Fully Converted<br>Pro Forma<br>Price-to-Book Value Ratio** | **Non-Fully Converted<br>Pro Forma<br>Price-to-Tangible Book<br>Value Ratio** |
|  **Narragansett Bancorp, Inc.** |  |  |  |
|  Adjusted Maximum | 31.39 x | 80.45% | 90.01% |
|  Maximum | 27.63 | 72.89 | 81.97 |
|  Midpoint | 24.28 | 65.70 | 74.24 |
|  Minimum | 20.86 | 58.00 | 65.88 |
|  **Valuation of peer group companies as of May 4, 2026** |  |  |  |
|  Averages | 13.67 x | 99.21% | 104.02% |
|  Medians | 14.11 | 94.80 | 97.43 |

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Compared to the average pricing ratios of the peer group, and based upon the information in the following table, our pro forma pricing ratios at the midpoint of the offering range indicated a premium of 60.4% on a fully converted price-to-earnings multiple, a discount of 49.7% on a fully converted price-to-book basis and a discount of 47.4% on a fully converted price-to-tangible book value basis.

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| | | | |
|:---|:---|:---|:---|
|  | **Fully Converted<br>Pro Forma<br>Price-to-Earnings Multiple** | **Fully Converted<br>Pro Forma<br>Price-to-Book<br>Value Ratio** | **Fully Converted<br>Pro Forma<br>Price-to-Tangible Book<br>Value Ratio** |
|  **Narragansett Bancorp, Inc.** |  |  |  |
|  Adjusted Maximum | 27.64 x | 58.14% | 62.97% |
|  Maximum | 24.65 | 54.00 | 58.82 |
|  Midpoint | 21.92 | 49.90 | 54.67 |
|  Minimum | 19.06 | 45.25 | 49.90 |
|  **Valuation of peer group companies as of May 4, 2026** |  |  |  |
|  Averages | 13.67 x | 99.21% | 104.02% |
|  Medians | 14.11 | 94.80 | 97.43 |

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The fully converted pro forma calculations for Narragansett Bancorp, Inc. are based on the following assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A number of shares equal to 8% of the aggregate of the shares sold in a full conversion and contributed to the
charitable foundation are purchased by the employee stock ownership plan, with the expense to be amortized over 20 years; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A number of restricted stock awards equal to 4% of the aggregate of the shares sold in a full conversion and
contributed to the charitable foundation are purchased by a stock-based benefit plan, with the expense to be amortized over five years.

**The independent appraisal does not indicate market value. Our common stock may not trade at or above the $10.00 purchase price after the offering. Furthermore, the pricing ratios presented in the appraisal were used by RP Financial to estimate our pro forma appraised value for regulatory purposes and not to compare the relative value of shares of our common stock with the value of the capital stock of the peer group. The value of the capital stock of a particular company may be affected by a number of factors such as financial performance, asset size and market location.** 

For a more complete discussion of the amount of common stock we are offering for sale and the independent appraisal, see "The Reorganization and Offering—How We Determined the Stock Pricing and the Number of Shares to be Issued."

**How We Intend to Use the Proceeds from the Offering** 

We intend to invest at least 50% of the net proceeds from the offering in BayCoast Bank, fund a loan to our employee stock ownership plan to finance its purchase of shares of common stock in the offering, contribute $600,000 to the charitable foundation and retain the remainder of the net proceeds from the offering. Therefore, assuming we sell 7,912,000 shares of common stock at the maximum of the offering range, and we have net proceeds of $79.1 million, we intend to invest $37.9 million in BayCoast Bank, loan $6.6 million to our employee stock ownership plan to fund its purchase of shares in the offering, contribute $600,000 to the charitable foundation and retain the remaining $30.7 million of the net proceeds at Narragansett Bancorp, Inc. Narragansett Bancorp, Inc. primarily will use the proceeds it retains to repay subordinated debt currently held by Narragansett Financial Corporation, which totaled $95.0 million at March 31, 2026, and will initially deposit a portion of the net proceeds of the offering at BayCoast Bank.

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Narragansett Bancorp, Inc. will be permitted to repurchase shares of our common stock in the future, although it generally may not do so during the first year following the offering, and such repurchases may be limited due to the subordinated debt as of March 31, 2026 that will be held at Narragansett Bancorp, Inc. following the completion of the reorganization and offering.

BayCoast Bank expects to use the net proceeds it receives to originate loans, purchase securities as permitted under its investment policy, to expand its banking franchise organically through *de novo* branching or through acquisitions or liftout transactions from financial services businesses, or to enhance existing, or support the growth and development of, new products and services. BayCoast Bank may also use the proceeds it receives to support new loan, deposit or other financial products and services, and for general corporate purposes.

BayCoast Bank does not have any plans or agreements for any specific acquisition or liftout transactions at this time. See "How We Intend to Use the Proceeds from the Offering."

**Persons Who May Order Stock in the Offering** 

We are offering the shares of common stock of Narragansett Bancorp, Inc. in a "subscription offering" in the following descending order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) depositors who had accounts at BayCoast Bank with aggregate balances of at least $50 (a "Qualifying
Deposit") at the close of business on May 31, 2025 (an "Eligible Account Holder");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) BayCoast Bank's tax-qualified employee benefit plans
(specifically our employee stock ownership plan and 401(k) plan); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) employees, officers, directors, trustees and corporators of BayCoast Bank or Narragansett Financial Corporation
who are not eligible under category (1).

Any shares of our common stock that remain unsold in the subscription offering may be offered for sale in a community offering that may commence concurrently with, during or promptly after the subscription offering. Natural persons residing (including trusts of natural persons and business entities with its principal place of business or headquarters) in the Massachusetts cities and towns of Acushnet, Attleboro, Avon, Bellingham, Berkley, Braintree, Brookline, Canton, Cohasset, Dartmouth, Dedham, Dighton, Dover, Easton, Fairhaven, Fall River, Foxborough, Franklin, Freetown, Holbrook, Mansfield, Medfield, Medway, Millis, Milton, Needham, New Bedford, Norfolk, North Attleboro, Norton, Norwood, Plainville, Quincy, Randolph, Raynham, Rehoboth, Seekonk, Sharon, Somerset, Stoughton, Swansea, Taunton, Walpole, Wellesley, Westport, Westwood, Weymouth and Wrentham, and the Rhode Island cities and towns of Barrington, Bristol, Burrillville, Central Falls, Cranston, Cumberland, East Providence, Foster, Glocester, Jamestown, Johnston, Lincoln, Little Compton, Middletown, Newport, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Scituate, Smithfield, Tiverton, Warren and Woonsocket will have a purchase preference in any community offering. We also may offer shares of common stock not purchased in the subscription offering or the community offering through a syndicate of brokers, in what is referred to as a "syndicated offering," managed by Piper Sandler. We have the right to accept or reject, in our sole discretion, any orders received in the community offering or the syndicated offering. Any determination to accept or reject stock orders in the community offering or syndicated offering will be based on the facts and circumstances available to management at the determination.

To ensure proper allocation of stock, each Eligible Account Holder must list on his or her stock order form all deposit accounts in which he or she had an ownership interest at May 31, 2025. Failure to list an account or providing incorrect information could result in the loss of all or part of a subscriber's stock allocation. We will attempt to identify your ownership in all accounts, but cannot guarantee we will identify all accounts in which you had an ownership interest. Our interpretations of the terms and conditions of the plan of reorganization and of the acceptability of the order forms will be final.

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If we receive orders for more shares than we are offering, we may not be able to fully or partially fill your order. Shares of common stock will be allocated first to categories in the subscription offering in accordance with our plan of reorganization. A detailed description of share allocation procedures can be found in the section entitled "The Reorganization and Offering—Offering of Common Stock."

**Limits on the Amount of Common Stock You May Purchase** 

The minimum purchase is 25 shares of common stock. Generally, no individual, or individuals through a single qualifying account held jointly, may purchase more than $300,000 of common stock.

If any of the following persons purchase shares of common stock, their purchases when combined with your purchases cannot exceed $500,000 of common stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• most companies, trusts or other entities in which you are a senior officer, partner, trustee or have a
substantial beneficial interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• your spouse or relatives of you or your spouse living in your house or who is a director, trustee or senior
officer of BayCoast Bank, Narragansett Bancorp, Inc. or Narragansett Financial Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other persons or entities who may be your associates or acting in concert with you.

Unless we determine otherwise, persons having the same address and persons exercising subscription rights through qualifying accounts registered to the same address will be subject to this overall purchase limitation.

The following relatives of trustees, directors and officers will be considered "associates" of these individuals regardless of whether they share a household with the trustee, director or officer: any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law. This also includes adoptive relationships.

Subject to regulatory approval, we may increase or decrease the purchase limitations in the offering at any time. A detailed discussion of the limitations on purchases of common stock by an individual and persons acting in concert is set forth under the caption "The Reorganization and Offering—Additional Limitations on Common Stock Purchases."

**How You May Purchase Shares of Common Stock in the Subscription and Community Offering** 

In the subscription offering and the community offering you may pay for your shares only by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• personal check, bank check or money order payable to Narragansett Bancorp, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• authorizing us to withdraw available funds (without any early withdrawal penalty) from the types of deposit
account(s) maintained with BayCoast Bank designated on the stock order form; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cash.

Cash will only be accepted at our main office, located at 330 Swansea Mall Drive, Swansea, Massachusetts, and will be converted to a bank check. **Please do not submit cash by mail.** 

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BayCoast Bank is not permitted to lend funds to anyone to purchase shares of common stock in the offering. Additionally, you may not use a BayCoast Bank credit check or any type of third-party check to pay for shares of common stock. We may accept wire transfers at our sole discretion; no wire transfer will be accepted without our prior approval. You may not designate withdrawal from our accounts with check-writing privileges; instead, please submit a check. If you request a direct withdrawal, we reserve the right to interpret this as your authorization to treat those funds as if we had received a check for the designated amount and will immediately withdraw the amount from your checking account(s). You may not authorize direct withdrawal from an individual retirement account, or IRA, held at BayCoast Bank. See "—Using Retirement Account Funds to Purchase Shares of Common Stock."

You may subscribe for shares of common stock in the offering by delivering a signed and completed original stock order form, together with full payment, *received* before 12:00 noon, Eastern Time, on [expiration date], which is the expiration date for the offering. You may submit your stock order form and payment by mail using the stock order reply envelope provided, by paying for overnight delivery to our Stock Information Center at the address noted on the stock order form, or by hand-delivery to the drop box at BayCoast Bank's main office, located at 330 Swansea Mall Drive, Swansea, Massachusetts. Hand-delivered stock order forms will only be accepted at this location. **Do not mail stock order forms to BayCoast Bank's offices.**

**Using Retirement Account Funds to Purchase Shares of Common Stock** 

You may be able to subscribe for shares of common stock using funds in your IRA or other retirement account. If you wish to use some or all of the funds in your IRA or other retirement account held at BayCoast Bank, the applicable funds must be transferred to a self-directed account maintained by an independent custodian or trustee, such as a brokerage firm, *before* you place your stock order. If you do not have such an account, you will need to establish one. A one-time and/or annual administrative fee may be payable to the independent custodian or trustee. Because individual circumstances differ and the processing of retirement fund orders takes additional time, we recommend that you contact our Stock Information Center promptly, preferably at least two weeks before the [expiration date] offering deadline, for assistance with purchases using funds in your IRA or other retirement account held at BayCoast Bank or elsewhere. Whether you may use such funds for the purchase of shares in the offering may depend on timing constraints and, possibly, limitations imposed by the institution where the funds are held.

For a complete description of how to use IRA funds to purchase shares in the offering, see "The Reorganization and Offering—Procedure for Purchasing Shares in the Subscription and Community Offerings—Using Retirement Account Funds."

**Deadline for Orders of Common Stock** 

The deadline for submitting orders to purchase shares of the common stock in the subscription and, if held, the community offering, is 12:00 noon, Eastern Time, on [expiration date], unless we extend this deadline. If you wish to purchase shares of common stock, your properly completed and signed original stock order form, together with full payment for the shares, must be received (not postmarked) by this time. **Orders received after 12:00 noon, Eastern Time, on [expiration date] will be rejected unless the offering is extended.**

Although we will make reasonable attempts to provide a prospectus and offering materials to holders of subscription rights, the subscription offering and all subscription rights will expire at 12:00 noon, Eastern Time, on [expiration date], whether or not we have been able to locate each person entitled to subscription rights and provide them such materials.

See "The Reorganization and Offering—Procedure for Purchasing Shares in the Subscription and Community Offerings—Expiration Date" for a complete description of the deadline for purchasing shares in the offering.

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**Once Submitted, Your Stock Purchase Order May Not Be Revoked Except Under Limited Circumstances** 

Funds that you submit to purchase shares of our common stock in the offering will be held in a segregated account until the termination or completion of the offering, including any extension of the expiration date. Because completion of the offering is subject to the receipt of all required regulatory approvals, including an update of the independent appraisal, among other factors, there may be one or more delays in the completion of the offering. Any orders that you submit to purchase shares of our common stock in the offering are irrevocable. You will not have access to subscription funds unless the offering is terminated, extended beyond [extension date], or the number of shares to be sold in the offering is increased to more than 9,098,800 shares or decreased to fewer than 5,848,000 shares.

**Termination of the Offering** 

We may terminate the offering at any time with applicable regulatory approval. If we terminate the offering, we will promptly return your funds with interest at 0.10% per annum, and we will cancel deposit account withdrawal authorizations.

**Steps We May Take If We Do Not Receive Orders for the Minimum Number of Shares** 

If we do not receive orders for at least 5,848,000 shares of common stock, we may take one or more steps to complete the offering. Specifically, we may (1) increase the purchase limitations, (2) seek regulatory approval to extend the offering beyond the [extension date] expiration date, and/or (3) reduce the valuation and offering range. If one or more purchase limitations are increased, subscribers in the subscription offering who ordered the maximum amount and who indicated a desire to be resolicited on the stock order form will be given the opportunity to increase their subscriptions up to the then-applicable limit. If the offering is extended beyond [extension date], subscribers will have the right to confirm, cancel or change their orders. If you do not respond to the notice of extension, we will cancel your stock order and promptly return your funds with interest for funds received in the subscription offering and, if held, the community offering or cancel your deposit account withdrawal authorization. If the number of shares to be sold in the offering is increased to more than 9,098,800 shares or decreased to less than 5,848,000 shares, we will resolicit subscribers, and all funds delivered to us to purchase shares of common stock in the subscription and community offerings will be returned promptly with interest.

**You May Not Sell or Transfer Your Subscription Rights** 

Applicable regulations prohibit you from transferring your subscription rights. If you order shares of common stock in the subscription offering, you will be required to certify that you are purchasing the common stock for yourself and that you have no agreement or understanding to sell or transfer your subscription rights or the shares that you are purchasing. We intend to take legal action, including reporting persons to federal or state agencies, against anyone who we believe has sold or transferred his or her subscription rights. We will not accept your order if we have reason to believe you have sold or transferred your subscription rights. On the order form, you cannot add the names of others for joint stock registration unless they are also named on the qualifying deposit account, and you cannot delete names of others except in the case of certain order placed through an IRA, Keogh, 401(k) or similar plan, and except in the event of the death of a named eligible depositor. Doing so may jeopardize your subscription rights. In addition, the stock order form requires that you list all deposit accounts you held at your date of eligibility, giving all names on each account and the account number at the applicable eligibility date. Failure to provide this information, or providing incomplete or incorrect information, may result in a loss of part or all of your share allocation.

**Eligible depositors who enter into agreements to allow ineligible investors to participate in the subscription offering may be violating federal and state law and may be subject to civil enforcement actions or criminal prosecution.** 

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**Proposed Stock Purchases by Management** 

Our directors and executive officers and their associates are expected to subscribe for [insider purchases] shares of common stock in the offering, which represents ________% of the shares to be offered for sale to the public, and _______% of the total shares to be outstanding after the offering (including shares sold to the public and owned by the charitable foundation and Narragansett Financial Corporation), each at the minimum of the offering range, respectively. The purchase price paid by them will be the same $10.00 per share purchase price paid by all other persons who purchase common stock in the offering. Like all of our eligible depositor purchasers, our directors and executive officers and their associates have subscription rights based on their deposits and, in the event of an oversubscription, their orders will be subject to the allocation provisions set forth in our plan of reorganization.

See "Subscriptions by Directors and Executive Officers" for more information on the proposed purchases of shares of common stock by our directors and executive officers.

**Possible Change in the Offering Range** 

RP Financial will update its appraisal before we complete the offering. If, as a result of demand for the shares or changes in market conditions, RP Financial determines that our pro forma market value has increased, we may sell up to 9,098,800 shares in the offering without further notice to you. If our pro forma market value at that time is either below $136.0 million or above $211.6 million, then, after consulting with the Federal Reserve Board and the Massachusetts Commissioner of Banks, we may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• terminate the offering, cancel deposit account withdrawal authorizations and promptly return all funds received
in the offering with interest at 0.10%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• set a new offering range; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• take such other actions as may be permitted by the Federal Reserve Board, the Massachusetts Commissioner of
Banks, the Financial Industry Regulatory Authority ("FINRA") and the Securities and Exchange Commission.

If we set a new offering range, we will promptly return funds, with interest at 0.10% for funds received in the offering, cancel deposit account withdrawal authorizations and commence a resolicitation. In connection with the resolicitation, we will notify subscribers of their right to place a new stock order for a specified period of time.

**Conditions to Completing the Reorganization and Offering** 

We cannot complete the reorganization and offering unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we sell at least 5,848,000 shares, which is the minimum of the offering range; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we receive final regulatory approvals or non-objections from the
Massachusetts Commissioner of Banks and the Federal Reserve Board to complete the reorganization and offering.

**Market for the Common Stock** 

We have never issued capital stock and there is no established market for our common stock. We expect that our common stock will be traded on the Nasdaq Capital Market under the symbol "NARA" upon conclusion of the offering. See "Market for the Common Stock."

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**Our Dividend Policy** 

Following completion of the offering, our board of directors will have the authority to declare dividends on our common stock, subject to our capital requirements, our financial condition and results of operations, tax considerations, statutory and regulatory limitations, and general economic conditions. However, due to regulatory restrictions described below, we do not currently anticipate paying cash dividends on our common stock.

If Narragansett Bancorp, Inc. pays dividends to its stockholders, it also will be required to pay dividends to Narragansett Financial Corporation, unless Narragansett Financial Corporation is permitted by the Federal Reserve Board to waive the receipt of dividends. The Federal Reserve Board's current position is to not permit a mutual holding company that is regulated as a bank holding company (as opposed to a savings and loan holding company) to waive dividends declared by its subsidiary. In addition, Massachusetts banking regulations prohibit Narragansett Financial Corporation from waiving dividends declared and paid by Narragansett Bancorp, Inc. unless the Massachusetts Commissioner of Banks does not object to the waiver and provided the waiver is not detrimental to the safe and sound operation of BayCoast Bank. Accordingly, because dividends will be required to be paid to Narragansett Financial Corporation along with all other stockholders, the amount of dividends available for all other stockholders will be less than if Narragansett Financial Corporation were permitted to waive the receipt of dividends.

Furthermore, our ability to pay dividends may be limited due to the $95.0 million of subordinated debt as of March 31, 2026 currently held by Narragansett Financial Corporation that will be transferred to Narragansett Bancorp, Inc. following the completion of the reorganization and offering.

**Our Contribution to the Charitable Foundation** 

To further our commitment to our local communities, we intend to establish and fund a new charitable foundation, BayCoast Charitable Foundation, Inc., as part of the reorganization and offering. The charitable foundation will be dedicated exclusively to supporting charitable causes and community development activities in the communities in which we operate.

We intend to contribute to the charitable foundation shares of our common stock equal to 2% of the shares to be outstanding following the offering and $600,000 in cash. At the minimum, midpoint, maximum and adjusted maximum of the offering range, we would contribute to the charitable foundation 272,000, 320,000, 368,000 and 423,200 shares of common stock, respectively. As a result of the contribution, we expect to record an after-tax expense of approximately $3.6 million during the quarter in which the offering is completed, assuming we sell 9,098,800 shares of common stock in the stock offering at the adjusted maximum of the offering range.

The contribution of shares of common stock and cash to the charitable foundation will dilute the voting interests of purchasers of shares of our common stock in the offering. In addition, the amount of common stock that we would offer for sale would be greater if the offering were to be completed without the establishment and funding of the charitable foundation.

See "Risk Factors—Risks Related to Our Contribution to the Charitable Foundation—Our contribution to the charitable foundation may not be tax deductible, which could reduce our profits.", "—Our contribution to the charitable foundation will dilute your ownership interest.", "—Our contribution to the charitable foundation will adversely affect net income.", "The Charitable Foundation" and "Comparison of Valuation and Pro Forma Information With and Without the Charitable Foundation."

**Our Officers, Directors and Employees Will Receive Additional Benefits and Compensation After the Offering** 

In connection with the offering, we are establishing an employee stock ownership plan, and, subject to stockholder approval, which will not occur until at least six months following the completion of the reorganization and offering, we intend to implement a stock-based benefit plan that will provide for grants of stock options and restricted stock.

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***Employee Stock Ownership Plan*.** The board of directors of BayCoast Bank has adopted an employee stock ownership plan, which will award shares of our common stock to eligible employees based on their compensation. It is expected that our employee stock ownership plan will purchase 8% of the aggregate of the number of shares sold in the offering and contributed to the charitable foundation with the proceeds of a loan to be made by Narragansett Bancorp, Inc. to the plan. If market conditions warrant, in the judgement of its trustees, the employee stock ownership plan may elect to purchase shares in the open market following the completion of the offering, subject to the prior approval of the Federal Reserve Board and the Massachusetts Commissioner of Banks.

***Stock-Based Benefit Plan*.** We also intend to adopt a stock-based benefit plan. The plan will be designed to attract, motivate and retain qualified personnel in key positions and provide directors, officers and key employees with an ownership interest in Narragansett Bancorp, Inc., which will be an incentive to contribute to our success, and will reward key employees for their performance. In accordance with applicable regulations, we anticipate the plan will authorize a number of stock options and shares of restricted common stock equal to 10% and 4%, respectively, of the aggregate number of shares of common stock sold in the offering and contributed to the charitable foundation. These limitations will not apply if the plan is implemented more than one year after the completion of the offering.

A stock-based benefit plan will not be established sooner than six months after the completion of the reorganization and offering, and if adopted within one year after the completion of the reorganization and offering, the plan must be approved by a majority of the votes eligible to be cast by our stockholders, as well as a majority of the votes eligible to be cast by our stockholders other than Narragansett Financial Corporation. If a stock-based benefit plan is established more than one year after the reorganization and offering, it must be approved by a majority of votes cast by our stockholders, as well as a majority of votes cast by our stockholders other than Narragansett Financial Corporation. We have not determined when we will present a stock-based benefit plan for stockholder approval.

The following table summarizes the stock benefits that our officers, directors and employees may receive following the reorganization and offering, at the adjusted maximum of the offering range and assuming that our employee stock ownership plan purchases 8% of the aggregate number of shares of common stock sold in the offering and contributed to the charitable foundation and that we implement a stock-based benefit plan granting options to purchase 10% of the aggregate number of shares of common stock of Narragansett Bancorp, Inc. sold in the offering and contributed to the charitable foundation and awarding shares of restricted common stock equal to 4% of the aggregate number of shares of common stock sold in the offering and contributed to the charitable foundation.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Individuals Eligible**<br>**to Receive Awards** | **Number of Shares**<br>**to be Granted or**<br>**Purchased** | **Percentage of**<br>**Common Stock to**<br>**be Outstanding<br>Following the<br>Offering** | **Dilution Resulting<br>From Issuance of<br>Shares for Stock-<br>Based Benefit<br>Plans** |  | **Value of Grants<br>(In Thousands)<br>(1)** |
|  Employee stock ownership plan | All employees | 761760 | 3.60% | N/A | (2) | $7618 |
|  Restricted stock awards | Directors, officers<br>and employees | 380880 | 1.80 | 1.77 | % | 3809 |
|  Stock options | Directors, officers<br>and employees | 952200 | 4.50 | 4.31 | % | 4418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | 2094840 | 9.90% | 5.93 | % (2) | $15845 |

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(1) The fair value of stock options has been estimated at $4.64 per option using the Black-Scholes option pricing
model with the following assumptions: a grant-date share price and option exercise price of $10.00; no dividend yield; expected option life of five years; risk free interest rate of 4.30%; and a volatility rate of 25.20%.

(2) No dilution is reflected for the employee stock ownership plan because such shares are assumed to be purchased
in the offering.

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**Restrictions on the Acquisition of Narragansett Bancorp, Inc. and BayCoast Bank** 

Federal and state regulations, as well as provisions contained in the articles of incorporation and bylaws of Narragansett Bancorp, Inc., restrict the ability of any person, firm or entity to acquire Narragansett Bancorp, Inc., BayCoast Bank, or their respective capital stock. These restrictions include the requirement that a potential acquirer of common stock obtain prior regulatory approval before acquiring in excess of 10% of the voting stock of Narragansett Bancorp, Inc. or BayCoast Bank, as well as a provision in Narragansett Bancorp, Inc.'s articles of incorporation that generally provides that, no person, other than Narragansett Financial Corporation, may directly or indirectly offer to acquire or acquire the beneficial ownership of more than 10% of any class of equity security of Narragansett Bancorp, Inc., and that any shares acquired in excess of this limit would not be entitled to be voted and would not be counted as voting stock in connection with any matters submitted to the stockholders for a vote.

Because a majority of the shares of outstanding common stock of Narragansett Bancorp, Inc. must be owned by Narragansett Financial Corporation, any acquisition of Narragansett Bancorp, Inc. must be approved by Narragansett Financial Corporation. Furthermore, Narragansett Financial Corporation would not be required to pursue or approve a sale of Narragansett Bancorp, Inc. even if such sale were favored by a majority of Narragansett Bancorp, Inc.'s public stockholders.

Finally, although a mutual holding company may be acquired by a mutual institution or another mutual holding company in what is known as a "remutualization" transaction, current regulatory policy may make such transactions less likely because of the heightened regulatory scrutiny given to the structure and pricing of such transactions. Specifically, current regulatory policy views remutualization transactions as raising significant issues concerning disparate treatment of minority stockholders and mutual members of the target entity, and raising issues concerning the effect on the mutual members of the acquiring entity. As a result, a remutualization transaction for Narragansett Bancorp, Inc. is less likely unless the applicant can clearly demonstrate that the regulatory concerns are not warranted in the particular case.

See "Restrictions on the Acquisition of Narragansett Bancorp, Inc. and BayCoast Bank" for more information.

**Possible Conversion of Narragansett Financial Corporation to Stock Form** 

In the future, Narragansett Financial Corporation may convert from the mutual to stock form of ownership, in a transaction commonly referred to as a "second-step conversion." However, our board of directors has no current plans to undertake a second-step conversion transaction. Any second-step conversion transaction would require the approval of holders of a majority of the outstanding shares of Narragansett Bancorp, Inc. common stock (excluding shares held by Narragansett Financial Corporation) and the approval of the corporators of Narragansett Financial Corporation. **Public stockholders will not be able to force a second-step conversion transaction of Narragansett Financial Corporation without the consent of Narragansett Financial Corporation since such transactions would require the approval of a majority of the outstanding shares of Narragansett Bancorp, Inc.'s common stock.** 

**Delivery of Prospectus** 

**To ensure that each person receives a prospectus at least 48 hours before the deadline for orders for common stock, we may not mail prospectuses any later than five days prior to such date or hand-deliver prospectuses later than two days prior to that date. Stock order forms may only be delivered if accompanied or preceded by a prospectus. We are not obligated to deliver a prospectus or stock order form by means other than U.S. mail.** 

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**Delivery of Shares of Common Stock** 

All shares of common stock sold will be issued in book entry form. Stock certificates will not be issued. A statement reflecting ownership of shares of common stock issued in the subscription and community offerings will be mailed by our transfer agent to the persons entitled thereto at the registration address noted by them on their stock order forms as soon as practicable following consummation of the offering. Shares of common stock sold in a syndicated offering may be delivered electronically through the services of The Depository Trust Company, subject to any necessary regulatory approval. We expect trading in the stock to begin on the business day following the completion of the offering. **Until a statement reflecting ownership of shares of common stock is available and delivered to purchasers, purchasers might not be able to sell the shares of common stock that they purchased, even though the common stock will have begun trading.** Your ability to sell your shares of common stock before receiving your statement will depend on arrangements you may make with a brokerage firm.

**Tax Consequences** 

BayCoast Bank and Narragansett Bancorp, Inc. have received an opinion of counsel, Luse Gorman, PC, regarding the material federal income tax consequences of the reorganization and offering, and have also received an opinion of Wolf & Company, P.C. regarding the material Massachusetts tax consequences of the reorganization and offering. As a general matter, the offering will not be a taxable transaction for purposes of federal or state income taxes to BayCoast Bank, Narragansett Bancorp, Inc. or persons eligible to subscribe in the subscription offering. See "The Reorganization and Offering—Material Income Tax Consequences."

**Emerging Growth Company Status** 

We qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act (the "JOBS Act"). For as long as we are an emerging growth company, we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to emerging growth companies. See "Risk Factors—Risks Related to Laws and Regulations—We are an emerging growth company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to emerging growth companies could make our common stock less attractive to investors" and "Supervision and Regulation—Emerging Growth Company Status."

An emerging growth company may elect to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies, but must make such election when the company is first required to file a registration statement. Such an election is irrevocable during the period a company is an emerging growth company. We have elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.

**Important Risks in Owning Narragansett Bancorp, Inc.'s Common Stock** 

An investment in our common stock involves substantial risks and uncertainties. Investors should carefully consider all information in this prospectus, including the detailed discussion of these and other risks under "Risk Factors" beginning on page 20, before investing in our common stock.

Specific areas of risk related to our business include those related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our lending activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competitive matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws and regulations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mortgage banking;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investment advisory services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• operational matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accounting matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• environmental matters.

Specific risks related to this offering include those related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the future trading price of the common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our mutual holding company structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• use of the net offering proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the trading market for the common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our return on equity after the completion of the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• intended new stock-based benefit plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anti-takeover factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a forum selection provision for certain litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the irrevocability of your investment decision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential adverse tax consequences related to subscription rights.

Specific risks related to our contribution to the charitable foundation include the effects on our net income, the tax deductibility of the contribution and the dilution to stockholder ownership interests.

**How You May Obtain Additional Information Regarding the Offering** 

Our banking personnel may not, by law, assist with investment-related questions about the offering. If you have any questions regarding the reorganization and offering, please call the Stock Information Center at [stock center number]. The Stock Information Center will be open Monday through Friday between 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed on bank holidays.

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**RISK FACTORS** 

**You should consider carefully the following risk factors, in addition to all other information in this prospectus, in evaluating an investment in our common stock.** 

**<u>Risks Related to our Business</u>**

**<u>Risks Related to our Lending Activities</u>**

**Our portfolios of commercial real estate and multi-family real estate loans represent a significant portion of our loan portfolio, and we intend to continue originating these types of loans. These loans involve credit risks that could adversely affect our financial condition and results of operations.** 

At March 31, 2026, commercial real estate and multi-family loans totaled $1.09 billion, or 47.9% of our total loan portfolio. Given their larger balances and the complexity of the underlying collateral, commercial real estate loans and multi-family real estate loans generally have more risk than the owner-occupied one- to four-family residential real estate loans we originate. Because the repayment of these loans depends on the successful management and operation of the borrower's properties, and/or related businesses with respect to commercial real estate loans, repayment of such loans can be affected by adverse conditions in the local real estate market or economy. Also, many of our commercial borrowers have more than one loan outstanding with us. Further, the offering will allow us to increase our loans-to-one borrower limit, which may result in our originating larger loans. Consequently, an adverse development with respect to one loan or one credit relationship can expose us to a significantly greater risk loss compared to an adverse development with respect to a one- to four-family residential real estate loan. If we foreclose on these loans, our holding period for the collateral typically is longer than for a one- to four-family residential property because there are fewer potential purchasers of the collateral. In addition, commercial real estate loans and multifamily real estate loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential loans. Accordingly, charge-offs on these types of loans may be larger than those incurred with our one- to four-family residential or consumer loan portfolios.

As our commercial real estate and multi-family real estate loan portfolios increase, the corresponding risks and potential for losses from these loans may also increase, which could adversely affect our business, financial condition and results of operations.

**Our commercial business loans involve credit risks that could adversely affect our financial condition and results of operations.** 

At March 31, 2026, we had $200.8 million in commercial business loans, or 8.8% of our total loan portfolio. Unlike residential real estate loans, which generally are made on the basis of the borrower's ability to make repayment from his or her employment or other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial business loans are of higher risk and typically are made on the basis of the borrower's ability to make repayment from the cash flow of the borrower's business and the collateral securing these loans may fluctuate in value. Our commercial business loans are originated primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. Most often, this collateral consists of real estate, accounts receivable, inventory or equipment and an all-business assets lien. Credit support provided by the borrower for most of these loans is based on the liquidation of the pledged collateral and enforcement of a personal guarantee, if any. Further, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value. As a result, the availability of funds for the repayment of commercial business loans may depend substantially on the success of the business itself.

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**Our construction loans involve credit risks that could adversely affect our financial condition and results of operations.** 

At March 31, 2026, we had $184.2 million in construction loans, or 8.1% of our total loan portfolio, $117.9 million, or 64.0%, of which consisted of commercial construction loans. Construction lending involves additional risks when compared with permanent finance lending because funds are advanced upon the security of the project, which is of uncertain value before its completion. Because of the uncertainties inherent in estimating construction costs, as well as the market value of the completed project and the effects of governmental regulation of real property, it can be difficult to accurately evaluate the total funds required to complete a project and the related loan-to-value ratio. In addition, generally during the term of a construction loan, interest may be funded by the borrower or disbursed from an interest reserve set aside from the construction loan budget. These loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project and the ability of the borrower to sell or lease the property or obtain permanent take-out financing, rather than the ability of the borrower or guarantor to repay principal and interest. If the appraised value of a completed project proves to be overstated, we may have inadequate security for the repayment of the loan upon completion of construction of the project and may incur a loss. As our construction loan portfolio increases, the corresponding risks and potential for losses from these loans may also increase, which could adversely affect our business, financial condition and results of operations.

**Our emphasis on real estate loans exposes us to lending risks*.*** 

At March 31, 2026, the significant majority of our loan portfolio was secured by real estate, most of which is located in our primary lending market area in the South Coast of Massachusetts and the State of Rhode Island. Future declines in the real estate values in our primary lending market and surrounding markets could significantly impair the value of the real estate collateral securing our loans and our ability to sell the collateral upon foreclosure for an amount necessary to satisfy the borrower's obligations to us. This could require increasing our allowance for credit losses to address the decrease in the value of the real estate securing our loans, which could have a material adverse effect on our business, financial condition, results of operations and growth prospects.

**The geographic concentration of our loan portfolio and lending activities makes us vulnerable to a downturn in our local market area*.*** 

Unlike larger financial institutions that are more geographically diversified, our profitability depends significantly on the general economic conditions in our primary market area. Local economic conditions have a significant impact on our lending, including the ability of borrowers to repay these loans and the value of the collateral securing these loans.

A deterioration in economic conditions in our primary market area could result in the following consequences, any of which could have a material adverse effect on our business, financial condition, liquidity and results of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• demand for our products and services may decrease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loan delinquencies, problem assets and foreclosures may increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collateral for loans, especially real estate, may decline in value, thereby reducing customers'
future borrowing power, and reducing the value of assets and collateral associated with existing loans; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the net worth and liquidity of loan guarantors may decrease, thereby impairing their ability to honor commitments
made to us.

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Moreover, a significant decline in general economic conditions caused by inflation, recession, acts of terrorism, an outbreak of hostilities or other international or domestic calamities, or other factors beyond our control could further impact these local economic conditions and could further negatively affect our financial performance. In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing loans, which could negatively affect our financial performance.

**If our allowance for credit losses is not sufficient to cover actual loan losses, our earnings could decrease.** 

We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of many of our loans. In determining the amount of the allowance for credit losses, we review our loans and our loss and delinquency experience, and we evaluate economic conditions. If our assumptions or the results of our analyses are incorrect, our allowance for credit losses may not be sufficient to cover expected credit losses in our loan portfolio, resulting in additions to our allowance. In addition, our emphasis on loan growth and on increasing our portfolio of commercial real estate and multi-family real estate loans, as well as any future credit deterioration, could require us to increase our allowance for credit losses in the future. At March 31, 2026, our allowance for credit losses was 1.31% of total loans and 66.15% of nonperforming loans. Material additions to our allowance would materially decrease our net income.

In addition, bank regulators periodically review our allowance for credit losses and, as a result of such reviews, we may be required to increase our provision for credit losses or recognize further loan charge-offs. Any increase in our allowance for credit losses or loan charge-offs as a result of such review or otherwise may have a material adverse effect on our financial condition and results of operations.

**Uncertainties associated with increased originations of commercial real estate and multi-family loans may result in errors in judging collectability, which may lead to additional provisions for credit losses or charge-offs, which would negatively affect our operations.** 

Our intended increases in the level of our commercial real estate and multi-family real estate originations would likely require us to lend to borrowers with which we have limited or no experience. Newly originated loans do not have a significant payment history pattern with which to judge future collectability. Further, newly originated loans have not been subjected to unfavorable economic conditions. As a result, it may be difficult to predict the future performance of newly originated loans. These loans may have delinquency or charge-off levels above our recent historical experience, which could adversely affect our future performance. Further, commercial real estate and multi-family loans generally have larger balances and involve a greater risk than one- to four-family residential mortgage loans. Accordingly, if we make any errors in judgment in the collectability of these loans, any resulting charge-offs may be larger on a per loan basis than those incurred historically with our single-family residential mortgage loans.

**The level of our commercial real estate loan portfolio may subject us to additional regulatory scrutiny.** 

The FDIC and the other federal bank regulatory agencies have promulgated joint guidance on sound risk management practices for financial institutions with concentrations in commercial real estate lending. Under the guidance, a financial institution that, like us, is actively involved in commercial real estate lending should perform a risk assessment to identify concentrations. A financial institution may have a concentration in commercial real estate lending if, among other factors, (i) total reported loans for construction, land acquisition and development, and other land represent 100% or more of total capital, or (ii) total reported loans secured by multi-family and non-farm residential properties, loans for construction, land acquisition and development and other land, and loans otherwise sensitive to the general commercial real estate market, including loans to commercial real estate related entities, represent 300% or more of total capital and the outstanding balance of a financial institution's commercial real estate loan portfolio has increased 50% or more during the prior 36 months. Multi-family and commercial real estate lending represented 382% of total capital as of March 31, 2026. The guidance focuses on exposure to commercial real estate loans that are dependent on the cash flow from the real estate held as collateral and that are likely to be at greater risk to conditions in the commercial real estate market (as opposed to real estate collateral held as a secondary source of repayment or in an abundance of caution). The purpose of the guidance is to guide banks in

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developing risk management practices and determining capital levels commensurate with the level and nature of real estate concentrations. The guidance states that management should employ heightened risk management practices including board and management oversight and strategic planning, development of underwriting standards, risk assessment and monitoring through market analysis and stress testing. While we believe we have implemented policies and procedures with respect to our commercial real estate loan portfolio consistent with this guidance, bank regulators could require us to implement additional policies and procedures consistent with their interpretation of the guidance that may result in additional costs to us or that may result in the curtailment of our commercial real estate and multi-family lending that would adversely affect our loan originations and profitability.

**The foreclosure process may adversely impact our recoveries on non-performing loans.** 

The judicial foreclosure process is protracted, which delays our ability to resolve non-performing loans through the sale of the underlying collateral. The longer timelines have been the result of many factors, including additional consumer protection initiatives related to the foreclosure process, increased documentary requirements and judicial scrutiny, and, both voluntary and mandatory programs under which lenders may consider loan modifications or other alternatives to foreclosure. These reasons and the legal and regulatory responses have impacted the foreclosure process and completion time of foreclosures for residential mortgage lenders. This may result in a material adverse effect on collateral values and our ability to minimize its losses.

**We are subject to a variety of risks in connection with any sale of loans we may conduct, which could adversely affect our results of operations and financial condition.** 

We routinely sell newly originated mortgage loans and manufactured home loans, and may also sell other loans or loan portfolios. When mortgage loans are sold, we are required to make customary representations and warranties to purchasers, guarantors and insurers, including government-sponsored entities, about the mortgage loans and the manner in which they were originated. Whole loan sale agreements require us to repurchase or substitute mortgage loans, or indemnify buyers against losses, in the event we breach these representations or warranties. In addition, we may be required to repurchase mortgage loans as a result of early payment default of the borrower on a mortgage loan. If repurchase and indemnity demands increase and such demands are valid claims and are in excess of our provision for potential losses, our results of operations and financial condition may be adversely affected.

**We are subject to environmental liability risk associated with lending activities or properties we own.** 

A significant portion of our loan portfolio is secured by real estate, and we could become subject to environmental liabilities with respect to one or more of these properties, or with respect to properties that we own in operating our business. During the ordinary course of business, we may foreclose on and take title to properties securing defaulted loans. In doing so, there is a risk that hazardous or toxic substances could be found on these properties. If hazardous conditions or toxic substances are found on these properties, we may be liable for remediation costs, as well as for personal injury and property damage, civil fines and criminal penalties regardless of when the hazardous conditions or toxic substances first affected any particular property. Environmental laws may require us to incur substantial expenses to address liabilities and may materially reduce the affected property's value or limit our ability to use or sell the affected property. In addition, future laws or more stringent interpretations or enforcement policies with respect to existing laws may increase our exposure to environmental liability. Our policies, which require us to perform an environmental review before initiating any foreclosure action on non-residential real property, may not be sufficient to detect all potential environmental hazards. The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on us.

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**<u>Risks Related to Market Interest Rates</u>**

**Future changes in interest rates could negatively affect our operating results and asset values.** 

Net income is the amount by which net interest income and noninterest income exceed operating expenses and the provision for credit losses. Net interest income makes up a majority of our income and is based on the difference between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the interest income we earn on interest-earning assets, such as loans and securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the interest expense we pay on interest-bearing liabilities, such as deposits and borrowings.

The rates we earn on our assets and the rates we pay on our liabilities are generally fixed for a contractual period of time. Like many savings institutions, our liabilities generally have shorter contractual maturities than our assets. This imbalance can create earnings volatility because market interest rates change over time. In a period of rising interest rates, the interest income we earn on our assets may not increase as rapidly as the interest we pay on our liabilities. Furthermore, increases in interest rates may adversely affect the ability of our borrowers to make loan repayments on adjustable-rate loans, as the interest owed on such loans would increase as interest rates increase.

In addition, changes in interest rates can affect the average life of loans and mortgage-backed and related securities. A decline in interest rates generally results in increased prepayments of loans and mortgage-backed and related securities as borrowers refinance their debt to reduce their borrowing costs. This creates reinvestment risk, which is the risk that we may not be able to reinvest prepayments at rates that are comparable to the rates we earned on the prepaid loans or securities. Furthermore, an inverted interest rate yield curve, where short-term interest rates (which are usually the rates at which financial institutions borrow funds) are higher than long-term interest rates (which are usually the rates at which financial institutions lend funds for fixed-rate loans) can reduce a financial institution's net interest margin and create financial risk for financial institutions that originate primarily longer-term, fixed-rate mortgage loans.

Any increase in market interest rates may reduce our mortgage banking income. We generate revenues primarily from gains on the sale of mortgage loans to investors, and from the amortization of deferred mortgage servicing rights. We also earn interest on loans held for sale while awaiting delivery to our investors. In addition, our results of operations are affected by the amount of noninterest expense associated with mortgage banking activities, such as salaries and employee benefits, occupancy, equipment, data processing and other operating costs. During periods of reduced loan demand, our results of operations may continue to be adversely affected to the extent that we are unable to reduce expenses commensurate with the decline in mortgage loan origination activity.

We monitor interest rate risk through the use of simulation models, including estimates of the amounts by which our net interest income would change in the event of a range of assumed changes in market interest rates. As of April 30, 2026, in the event of an instantaneous 200 basis point increase in interest rates, we estimate that we would experience a 3.2% decrease in net interest income.

At April 30, 2026, all estimated changes described above with respect to net interest income with respect to potential changes in market interest rates were in compliance with the current policy limits established by management and approved by the board of directors.

Any substantial, unexpected, prolonged change in market interest rates could have a material adverse effect on our financial condition, liquidity and results of operations. Changes in the level of interest rates also may negatively affect the value of our assets and ultimately affect our earnings.

For further discussion of how changes in interest rates could impact us, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Management of Market Risk."

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**<u>Risks Related to our Business Strategy</u>**

**Our business strategy includes loan growth, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively. Growing our operations could also cause our expenses to increase faster than our revenues.** 

Our business strategy includes loan growth, primarily funded by deposits. Achieving such growth may require us to attract customers that currently bank at other financial institutions in our market area. Our ability to successfully grow will depend on a variety of factors, including the continued availability of desirable business opportunities, the level of competition from other financial institutions in our market area, general economic conditions in our primary market area, our ability to attract and retain experienced lenders and possibly increase our support staff and our ability to manage our growth. Growth opportunities may not be available or we may not be able to manage our growth successfully. Any such business expansion can be expected to negatively impact our earnings until certain economies of scale are reached. Furthermore, there can be considerable costs involved in opening branches and expanding lending capacity, and generally a period of time is required to generate the necessary revenues to offset these costs. If we do not manage our growth effectively, our financial condition and operating results could be negatively affected.

**Potential growth may require us to raise additional capital in the future, but that capital may not be available when it is needed.** 

We are required by banking regulatory authorities to maintain adequate levels of capital to support our operations. We may at some point need to raise additional capital to support potential growth or if required by regulatory agencies. If we raise capital through the issuance of additional shares of our common stock or other securities, it would dilute the ownership interests of stockholders and may dilute the per share book value of our common stock. New investors may also have rights, preferences and privileges senior to our current stockholders, which may adversely impact our then current stockholders. Also, the need to raise additional capital may force our management to spend more time in managerial and financing-related activities than in operational activities.

Our ability to raise additional capital, if needed, will depend on conditions in the capital markets at that time, which are outside of our control, and on our financial performance. In addition, our ability to raise capital may be limited by our mutual holding company structure, as Narragansett Financial Corporation is required to own a majority of our outstanding shares of common stock for as long as it is in existence. Accordingly, we may not be able to raise additional capital, if needed, with favorable terms. If we cannot raise additional capital when needed, our ability to further expand our operations through internal growth and acquisitions could be materially impaired.

**Our inability to tailor our retail delivery model to respond to consumer preferences in banking may negatively affect earnings.** 

Our branch network continues to be a very significant source of new business generation, however, consumers continue to migrate much of their routine banking to self-service channels. In recognition of this shift in consumer patterns, we regularly review our branch network, which can result in branch consolidation accompanied by the enhancement of our capabilities to serve its customers through alternate delivery channels. In that regard, we expect to continue to devote substantial time and resources to improving our digital products and services. The success of these initiatives will depend on, among other things, whether our upgraded technology and digital solutions are received favorably by our customers and employees and improves their experiences and interactions with us. If we are unable to fully implement the digital offerings or successfully achieve these objectives with customers, the anticipated benefits of these initiatives may not be realized fully, or at all, or may take longer to realize than expected or we may experience significant customer attrition.

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**We depend on our management team and other key personnel to implement our business strategy and execute successful operations, and we could be harmed by the loss of their services or the inability to hire additional personnel.** 

We depend on the services of the members of our senior management team who direct our strategy and operations. Our executive officers and lending personnel possess substantial expertise as well as extensive knowledge of our markets and key business relationships. Any one of them could be difficult to replace. Our loss of these persons, or our inability to hire additional qualified personnel, could impact our ability to implement our business strategy and could have a material adverse effect on our results of operations and our ability to compete in our markets. Specifically, our Chief Executive Officer and our Chief Lending Officer are expected to retire in 2027. See "Management."

**<u>Risks Related to Competitive Matters</u>**

**We face significant competition in the financial services industry.** 

We operate in a highly competitive environment that includes financial and non-financial services firms, including traditional banks, online banks, financial technology companies, and investment management and wealth advisory firms, including commercial banks and trust companies, investment advisory firms, mutual fund companies, and stock brokerage firms. These companies compete on the basis of, among other factors, size, location, quality and type of products and services offered, price, technology, brand recognition, and reputation. Emerging technologies, such as artificial intelligence (including machine learning and generative artificial intelligence) and quantum computing, have the potential to further intensify competition and accelerate disruption in the financial services industry. In recent years, non-financial services firms, such as financial technology companies, have begun to offer services traditionally provided by financial institutions. These firms attempt to use technology and mobile platforms to enhance the ability of companies and individuals to borrow, save and invest money. We may also experience the emerging competition for deposits from tokenized deposits and stablecoins, and from financial technology companies that have obtained bank charters. Many of these non-financial services competitors have fewer regulatory constraints and may have lower cost structures than we do. Our long-term success depends on our ability to develop and execute strategic plans and initiatives; to develop competitive products and technologies; and to attract, retain and develop a highly skilled employee workforce. We may not be as timely or successful in assessing the evolving competitive landscape and developing or introducing new products and services as our competitors. Our business may be negatively impacted if we, or our third-party providers, do not timely develop and apply emerging technologies, or if our initiatives in these areas are deficient or fail. Our, or our third-party providers', inability, or resistance to timely innovate or adapt operations, products and services to evolving regulatory and market environments, industry standards and consumer preferences could result in service disruptions, harm our business, and adversely affect our results of operations and reputation. For additional information see "Business of BayCoast Bank—Market Area" and "—Competition."

**Our smaller size may make it more difficult for us to compete.** 

Our smaller size may make it more difficult to compete with other financial institutions that are larger and can more easily afford to invest in the marketing and technologies needed to attract and retain customers. Because a majority of our income is the net interest income we earn on our loans and investments after deducting interest paid on deposits and other sources of funds, our ability to generate the revenues needed to cover our expenses and finance such investments may be limited by the size of our loan and investment portfolios. Accordingly, we may not always be able to offer new products and services as quickly as our competitors. Our lower earnings may also make it more difficult to offer competitive salaries and benefits. Furthermore, as a smaller institution, we are disproportionately affected by the continually increasing costs of compliance with new banking and other regulations.

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**We have a continuing need for technological change, and we may not have the resources to implement new technology effectively, or we may experience operational challenges when implementing new technology or technology needed to compete effectively with larger institutions may not be available to us on a cost-effective basis.** 

The financial services industry undergoes rapid technological changes with frequent introductions of new technology-driven products and services, including developments in artificial intelligence and machine learning. In addition to serving clients better, the effective use of technology increases efficiency and enables financial institutions to reduce costs. Our future success will depend, at least in part, upon our ability to address the needs of our clients by using technology to provide products and services that will satisfy client demands for convenience, as well as to create additional efficiencies in our operations as we continue to grow and expand our products and service offerings. We offer electronic banking services for consumer and business customers via our website, including Internet banking and electronic bill payment, as well as mobile banking. We also offer debit cards, ATM cards, and automatic and ACH transfers. We may experience operational challenges as we implement these new technology enhancements or products, which could impair our ability to realize the anticipated benefits from such new technology or require us to incur significant costs to remedy any such challenges in a timely manner.

Many of our larger competitors have substantially greater resources to invest in technological improvements. We may not be as timely or successful in assessing the competitive landscape and developing or introducing new products and services as these larger competitors. Our business may be negatively impacted if we, or our third-party providers, do not timely develop and apply emerging technologies, like artificial intelligence and quantum computing, or if our initiatives in these areas are deficient or fail. Our, or our third-party providers', inability or resistance to timely innovate or adapt operations, products and services to evolving regulatory and market environments, industry standards and consumer preferences could result in service disruptions, harm our business and adversely affect our results of operations and reputation. Third parties upon which we rely for our technology needs may not be able to develop on a cost-effective basis the systems that will enable us to keep pace with such developments. As a result, competitors may be able to offer additional or superior products compared to those that we will be able to provide, which would put us at a competitive disadvantage. We may lose clients seeking new technology-driven products and services to the extent we are unable to provide such products and services. Accordingly, the ability to keep pace with technological change is important and the failure to do so could adversely affect our business, financial condition and results of operations.

**<u>Risks Related to Laws and Regulations</u>**

**Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations.** 

BayCoast Bank is subject to extensive regulation, supervision and examination by the Massachusetts Commissioner of Banks and the FDIC, and Narragansett Bancorp, Inc. will be subject to extensive regulation, supervision and examination by the Federal Reserve Board. Such regulation and supervision govern the activities in which an insured depository institution and its holding company may engage, and are intended primarily for the protection of the federal deposit insurance fund and the depositors and borrowers of BayCoast Bank, rather than for our stockholders.

Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of our assets and determination of the level of our allowance for credit losses. These regulations, along with existing tax, accounting, securities, insurance and monetary laws, rules, standards, policies, and interpretations, control the methods by which financial institutions conduct business, implement strategic initiatives and tax compliance, and govern financial reporting and disclosures. Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations. Further, changes in accounting standards can be both difficult to predict and involve judgment and discretion in their interpretation by us and our independent registered public accounting firm. These changes could materially impact, potentially even retroactively, how we report our financial condition and results of operations.

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**Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.** 

The USA PATRIOT and Bank Secrecy Acts require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury's Office of Financial Crimes Enforcement Network (FinCEN). These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Failure to comply with these regulations could result in fines or sanctions, including restrictions on pursuing acquisitions or establishing new branches. The policies and procedures we have adopted that are designed to assist in compliance with these laws and regulations may not be effective in preventing violations of these laws and regulations. We have not been subject to any fines or other penalties, nor have suffered business or reputational harm, as a result of money laundering activities in recent years.

**We provide banking services to customers who do business in the cannabis industry and the strict enforcement of federal laws regarding cannabis would likely result in our inability to continue to provide banking services to these customers and we could have legal action taken against us by the federal government.** 

We have deposit and loan customers that are licensed in various states to do business in the cannabis industry as growers, processors, and dispensaries. While cannabis is legal in each of these states, it remains classified as a Schedule I controlled substance under the Federal Controlled Substances Act, or CSA. As such, the cultivation, use, distribution, and possession of cannabis is a violation of federal law that is punishable by imprisonment and fines. Moreover, the U.S. Supreme Court ruled in *USA v. Oakland Cannabis Buyers' Coop.* that the federal government has the authority to regulate and criminalize cannabis, including medical marijuana.

In 2018, the U.S. Department of Justice ("DOJ") rescinded the "Cole Memo" and related memoranda which characterized the enforcement of the CSA against persons and entities complying with state regulatory systems permitting the use, manufacture and sale of medical marijuana as an inefficient use of their prosecutorial resources and discretion. The impact of the DOJ's rescission of the Cole Memo and related memoranda is unclear, but may result in the DOJ increasing its enforcement actions against the regulated cannabis industry generally.

In 2025, the U.S. Congress did not re-enact a spending bill provision prohibiting the DOJ and the U.S. Drug Enforcement Administration from using funds appropriated by that bill to prevent states from implementing their medical-use cannabis laws. As a result, the ability of medical cannabis businesses to act in this area, and our ability to provide banking products and services to such businesses, may be impeded.

Federal prosecutors have significant discretion and there can be no assurance that a federal prosecutor in any of the federal districts in which we operate will not choose to strictly enforce the federal laws governing cannabis, including medical-use cannabis. Any change in the federal government's enforcement position, could cause us to immediately cease providing banking services to the medical-use cannabis industry in the states where we operate.

Additionally, as the possession and use of cannabis remains illegal under the CSA, we may be deemed to be aiding and abetting illegal activities through the services that we provide to these customers and could have legal action taken against us by the Federal government, including imprisonment and fines. Any change in position or potential action taken against us could result in significant financial damage to us and our stockholders.

FinCEN published guidelines in 2014 for financial institutions servicing state legal cannabis business. These guidelines were issued for the explicit purpose so "that financial institutions can provide services to marijuana-related businesses in a manner consistent with their obligations to know their customers and to report possible criminal activity." Any adverse change in this FinCEN guidance, any new regulations or legislation, any change in existing regulations or oversight, whether a change in regulatory policy or a change in a regulator's interpretation of a law or regulation, could have a negative impact on our interest income and noninterest income, as well as the cost of our operations, increasing our cost of regulatory compliance and of doing business, and/or otherwise affect us, which may materially affect our profitability.

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In 2025, an executive order was executed directing the Department of Justice to move cannabis from a Schedule I to a Schedule III substance, a category for substances with accepted medical use and lower abuse potential. While not full legalization, the change is designed to ease financial and tax burdens on the cannabis industry, including, to some extent, banking access. Schedule III classification allows state-legal cannabis businesses to deduct ordinary business expenses under the Internal Revenue Code, which is expected to boost cash flow and profitability and it aims to encourage banks and financial institutions to work with the cannabis industry, as the risk of violating federal anti-money laundering laws is reduced.

**We are subject to stringent capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or limit our ability to pay dividends or repurchase shares.** 

Federal regulations establish minimum capital requirements for insured depository institutions, including minimum risk-based capital and leverage ratios, and define "capital" for calculating these ratios. The regulations establish a "capital conservation buffer" of 2.5%, which, when added to the minimum capital ratios, result in the following minimum ratios: (1) a common equity Tier 1 capital ratio of 7.0%, (2) a Tier 1 to risk-based assets capital ratio of 8.5%, and (3) a total capital ratio of 10.5%. The application of these capital requirements could, among other things, result in lower returns on equity, and result in regulatory actions if we are unable to comply with such requirements. An institution will be subject to limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses if its capital level falls below the capital conservation buffer amount. See "Supervision and Regulation—Federal Banking Regulation—Capital Requirements."

At March 31, 2026, BayCoast Bank exceeded all applicable regulatory capital requirements and was considered "well capitalized." See "Historical and Pro Forma Regulatory Capital Compliance of BayCoast Bank."

**The Federal Reserve Board may require us to commit capital resources to support BayCoast Bank, and we may not have sufficient access to such capital resources.** 

Federal law requires that a holding company act as a source of financial and managerial strength to its subsidiary bank and to commit resources to support such subsidiary bank. Under the "source of strength" doctrine, the Federal Reserve Board may require a holding company to make capital injections into a troubled subsidiary bank and may charge the holding company with engaging in unsafe and unsound practices for failure to commit resources to a subsidiary bank. A capital injection may be required at times when the holding company may not have the resources to provide it and therefore may be required to attempt to borrow the funds or raise capital. Thus, any borrowing that must be done by Narragansett Bancorp, Inc. to make a required capital injection becomes more difficult and expensive and could have an adverse effect on our business, financial condition and results of operations. Moreover, it is possible that we will be unable to borrow funds or otherwise raise capital when we need to do so.

**Monetary policies and regulations of the Federal Reserve Board could adversely affect our business, financial condition and results of operations.** 

In addition to being affected by general economic conditions, our earnings and growth are affected by the policies of the Federal Reserve Board. An important function of the Federal Reserve Board is to regulate the money supply and credit conditions. Among the instruments used by the Federal Reserve Board to implement these objectives are open market purchases and sales of U.S. government securities, adjustments of the discount rate and changes in banks' reserve requirements against bank deposits. These instruments are used in varying combinations to influence overall economic growth and the distribution of credit, bank loans, investments and deposits. Their use also affects interest rates charged on loans or paid on deposits. The monetary policies and regulations of the Federal Reserve Board have had a significant effect on the operating results of financial institutions in the past and are expected to continue to do so in the future.

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Changes in policies and regulations generally are beyond our control, and we are unable to predict what changes may occur or the manner in which any future changes may affect our business, financial condition and results of operations.

**We may become subject to enforcement actions even though noncompliance was inadvertent or unintentional.** 

The financial services industry is subject to intense scrutiny from bank supervisors in the examination process and aggressive enforcement of federal and state regulations, particularly with respect to mortgage-related practices and other consumer compliance matters, and compliance with anti-money laundering, Bank Secrecy Act and Office of Foreign Assets Control regulations, and economic sanctions against certain foreign countries and nationals. Enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices. We maintain systems and procedures designed to ensure that we comply with applicable laws and regulations; however, some legal/regulatory frameworks provide for the imposition of fines or penalties for noncompliance even though the noncompliance was inadvertent or unintentional and even though there was in place at the time systems and procedures designed to ensure compliance. Failure to comply with these and other regulations, and supervisory expectations related thereto, may result in fines, penalties, lawsuits, regulatory sanctions, reputation damage, or restrictions on our business.

**We face significant legal risks, both from regulatory investigations and proceedings and from private actions brought against us.** 

As a participant in the financial services industry, many aspects of our business involve substantial risk of legal liability. From time to time, customers and others make claims and take legal action pertaining to the performance of our responsibilities. Whether customer claims and legal action related to the performance of our responsibilities are founded or unfounded, if such claims and legal actions are not resolved in a manner favorable to us, they may result in significant expenses, attention from management and financial liability. Any financial liability or reputational damage could have a material adverse effect on our business, which, in turn, could have a material adverse effect on our financial condition and results of operations. There is no assurance that litigation with private parties will not increase in the future. Actions currently pending against us may result in judgments, settlements, fines, penalties or other results adverse to us, which could materially adversely affect our business, financial condition and results of operations.

**We are an emerging growth company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to emerging growth companies could make our common stock less attractive to investors.** 

We are an emerging growth company, and, for as long as we continue to be an emerging growth company, we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to "emerging growth companies," including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. As an emerging growth company, we also will not be subject to Section 404(b) of the Sarbanes-Oxley Act, which would require that our independent auditors review and attest as to the effectiveness of our internal control over financial reporting. We have also elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.

We could remain an "emerging growth company" for up to five years, or until the earliest of (a) the last day of the first fiscal year in which our annual gross revenues exceed $1.235 billion, (b) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (c) the date on which we have issued more than $1.0 billion in non-convertible debt during the preceding three-year period.

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As a result, our stockholders may not have access to certain information they may deem important, and investors may find our common stock less attractive if we choose to rely on these exemptions. This could result in a less active trading market for our common stock and the price of our common stock may be more volatile.

**We qualify as a smaller reporting company, and any decision on our part to comply only with certain reduced reporting and disclosure requirements applicable to smaller reporting companies could make our common stock less attractive to investors.** 

We are a smaller reporting company, and, for as long as we continue to qualify as a smaller reporting company, we may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to smaller reporting companies, including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and two years of audited financial statements in our annual report instead of three years. As long as we are a smaller reporting company that is also not an accelerated filer, we will not be subject to Section 404(b) of the Sarbanes-Oxley Act, which requires that our independent registered public accounting firm review and attest as to the effectiveness of our internal control over financial reporting. In addition, as a non-accelerated filer, we will have longer deadlines to file our periodic reports with the Securities and Exchange Commission.

We would remain a smaller reporting company and a non-accelerated filer for so long as our voting and non-voting equity held by non-affiliates ("public float") is less than $250 million or our annual revenues are less than $100 million and our public float is less than $700 million. Public float is determined each year as of the end of a company's second fiscal quarter applicable at the end of the fiscal year involved.

As a result of our smaller reporting company status and non-accelerated filer status, our stockholders may not have access to certain information they may deem important, and investors may find our common stock less attractive if we choose to rely on these exemptions. This could result in a less active trading market for our common stock and the price of our common stock may be more volatile.

**<u>Risks Related to Economic Conditions</u>**

**Inflation can have an adverse impact on our business and on our customers.** 

Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. After rising sharply at the end of 2021, inflation remained elevated through the first half of calendar 2024, before beginning to moderate in the latter half of 2024 and into 2025. However, inflation continues to exceed the Federal Reserve Board's long-term target inflation rate of 2.0%. As inflation increases, the value of our investment securities, particularly those with longer maturities, would decrease, although this effect can be less pronounced for floating rate instruments. In addition, inflation increases the cost of goods and services we use in our business operations, such as electricity and other utilities, which increases our operating expenses. Furthermore, our customers are also affected by inflation and the rising costs of goods and services used in their households and businesses, which could have a negative impact on their ability to repay their loans with us.

**We have a high concentration of loans secured by real estate in our market area. Adverse economic conditions, both generally and in our market area, could adversely affect our financial condition and results of operations.** 

We have relatively few loans outside of our market area. Consequently, we have a greater risk of loan defaults and losses in the event of a further economic downturn in our market area, as adverse economic conditions may have a negative effect on the ability of our borrowers to make timely payments of their loans. A return of recessionary conditions and/or negative developments in the domestic and international credit markets may

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significantly affect the markets in which we do business, the value of our loans, investments, and collateral securing our loans, and our ongoing operations, costs and profitability. Any of these negative events may result in higher-than expected loan delinquencies, increase our levels of non-performing and classified assets, and reduce demand for our products and services, which may cause us to incur losses and may adversely affect our capital, liquidity and financial condition. According to published data, our market area has not experienced any material declines in real estate values during the last year or any material increase in the number of foreclosure proceedings.

**A worsening of economic conditions could reduce demand for our products and services and/or increase our level of non-performing loans, which could adversely affect our financial condition and results of operations.** 

Unlike larger financial institutions that are more geographically diversified, our profitability depends primarily on the general economic conditions in our primary market area. We believe the current general economic conditions in our primary market area are healthy and stable.

In addition to local economic conditions, which could have a significant impact on the ability of our borrowers to repay their loans and on the value of the collateral securing their loans, deterioration in general economic conditions, including due to changes in laws and regulations. could result in the following consequences, any of which could have a material adverse effect on our business, financial condition, liquidity and results of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• demand for our products and services may decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loan delinquencies, problem assets and foreclosures may increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collateral for loans, especially real estate, may decline in value, reducing customers' future borrowing
power and the value of assets and collateral associated with existing loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.

Moreover, a significant decline in general economic conditions, caused by inflation, recession, tariffs and international trade disputes, acts of terrorism, an outbreak of hostilities or other international or domestic calamities, unemployment or other factors beyond our control could further impact these local economic conditions and could further negatively affect the financial results of our banking operations. In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing loans, which could negatively affect our financial performance.

**Significant changes to the size, structure, powers and operations of the federal government, changes to U.S. economic policies, and uncertainties regarding the potential for these changes may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition.** 

The current U.S. administration has implemented significant changes in federal priorities and has taken steps to change the operations, structure, and policy focus of various federal agencies, as well as regulatory priorities, policy approaches and interpretations of existing laws by those federal agencies. For example, recent executive actions and proposed legislation has changed agency mandates, modified or reduced federal program funding, altered regulatory frameworks, or adjusted the size and composition of the federal workforce. Moreover, leadership transitions at key federal agencies have impacted or may impact rulemaking, supervision, enforcement, and examination priorities across the financial regulatory landscape. These developments in the federal government may have varying effects on the banking and financial services industry that are difficult to predict, which makes it difficult for us to anticipate and mitigate attendant risks. Compliance with changing federal and regulatory priorities could, among other things, increase the costs of operating our business, reduce the demand for our products and services, impact our ability to achieve our business goals, and increase our legal, operational and reputational risks, any or all of which could materially adversely affect our results of operations.

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The current U.S. administration also has implemented rapid shifts in macroeconomic policies, such as those relating to trade restrictions and tariffs, which have created significant uncertainties regarding U.S. economic growth, the potential for recession, and concerns over an increase in inflation. Slow economic growth, economic contraction or recession, or shifts in broader consumer and business trends would significantly impact our ability to originate loans, the ability of borrowers to repay loans, and the value of the collateral securing loans.

Other political and economic events within the United States, including a contentious domestic political environment, changes in or disagreements over U.S. monetary policy and actions of the Federal Reserve Board, disagreements over long-term federal budget and deficit reduction plans, disagreements over, or threats not to increase, the U.S. government's borrowing limit (or "debt ceiling"), and risk of further downgrade of the ratings of U.S. government debt obligations, also may negatively impact financial markets and the U.S. economy.

Regional business and economic conditions are a major driver of our results of operations. Difficult conditions in the regional business and economic environment, including those caused by the lack of stability and predictability of U.S. policymaking, may materially adversely affect our operating expenses, the quality of our assets, credit losses, and the demand for our products and services.

**<u>Risks Related to Mortgage Banking Operations</u>**

**Secondary mortgage market conditions could have a material impact on our financial condition and results of operations.** 

Our mortgage banking operations provide a significant portion of our non-interest income. In addition to being affected by interest rates, the secondary mortgage markets are also subject to investor demand for residential mortgage loans and increased investor yield requirements for these loans. These conditions may fluctuate or worsen in the future. A prolonged period of secondary market illiquidity may reduce our loan production volumes and could have a material adverse effect on our financial condition and results of operations.

**Changes in the programs offered by secondary market purchasers or our ability to qualify for their programs may reduce our mortgage banking revenues, which would negatively impact our non-interest income.** 

We generate mortgage revenues primarily from gains on the sale of single-family mortgage loans pursuant to programs currently offered by Fannie Mae, Freddie Mac, Ginnie Mae and non-government-sponsored enterprise investors. These entities account for a substantial portion of the secondary market in residential mortgage loans. Any future changes in these programs, our eligibility to participate in such programs, the criteria for loans to be accepted or laws that significantly affect the activity of such entities could, in turn, materially adversely affect our results of operations.

**If we are required to repurchase mortgage loans that we have previously sold, it could negatively affect our earnings.** 

Our mortgage banking activities involve originating residential mortgage loans for sale in the secondary market under agreements that contain representations and warranties related to, among other things, the origination and characteristics of the mortgage loans. We may be required to repurchase mortgage loans that we have sold in cases of borrower default or breaches of these representations and warranties. If we are required to repurchase mortgage loans or provide indemnification or other recourse, this could increase our costs and thereby affect our future earnings.

**Changes in the fair value of our mortgage banking derivatives could adversely affect our financial condition and results of operations.** 

Mortgage loan commitments qualify as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Forward loan sale commitments mitigate the risk of potential decreases in the values of loans that would result from the exercise of mortgage loan commitments. These derivatives, if material, are recognized at fair value on the consolidated balance sheets in other assets and other liabilities with changes in their fair values recorded in other income.

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We enter into commitments to fund residential mortgage loans at specified times in the future, with the intention that these loans will subsequently be sold in the secondary market. A mortgage loan commitment binds us to lend funds to a potential borrower at a specified interest rate and within a specified period. Outstanding interest rate lock commitments expose us to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. The notional amount of rate-locked mortgage loan commitments at March 31, 2026 was $45.9 million, with a fair value asset of $375,000.

We also utilize best efforts and mandatory delivery forward loan sale commitments to mitigate the risk of potential decreases in the values of loans held for sale and loan commitments that would result from the exercise of the derivative loan commitments. With a mandatory delivery contract, we commit to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If we fail to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, we are obligated to pay a "pair-off" fee, based on then-current market prices, to the investor to compensate the investor for the shortfall. With best efforts commitments, we commit to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the underlying loan closes. Generally, the price the investor will pay is specified prior to the loan being funded. The notional amount of forward loan sale commitments at March 31, 2026 was $21.2 million, with a fair value liability of $223,000.

**<u>Risks Related to Our Investment Management Business</u>**

**Our investment management business is subject to risks associated with the industry and strong competition for clients.** 

At March 31, 2026, our investment management subsidiary, Plimoth Investment Advisors, had approximately $1.07 billion in assets under management. Plimoth Investment Advisors' operations may present risks not borne by institutions that focus exclusively on other traditional retail and commercial banking products. For example, the investment advisory industry and Plimoth Investment Advisors' results of operations are subject to fluctuations in the stock market that may have a significant adverse effect on investment management fees which are directly tied to asset values, client activity and client investment portfolio gains and losses. Significant fluctuations in interest rates and securities prices may affect the value of the assets managed by Plimoth Investment Advisors and may also influence investor decisions regarding whether to invest in, or maintain an investment in, one or more of our wealth management solutions. The clients of Plimoth Investment Advisors are generally free to change financial advisors or withdraw the funds they have invested at any time. Significant changes in investing patterns or large-scale withdrawal of investment funds could have an adverse effect on this line of business. In addition, new or modified regulations may adversely affect our wealth management services.

Due to strong competition, our investment management business may not be able to retain existing clients or attract new clients. Competition is strong because there are numerous well-established and successful investment management and wealth advisory firms including commercial banks and trust companies, investment advisory firms, mutual fund companies, stock brokerage firms, and other financial companies. Many of our competitors have greater resources than we have. Our ability to successfully attract and retain investment management clients depends upon our ability to compete with competitors' investment products, level of investment performance, client services, and marketing and distribution capabilities. If we are not successful, our results of operations and financial condition may be

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**<u>Risks Related to Operations and Operational Matters</u>**

**Our cost of operations is high relative to our earnings. Our failure to maintain or reduce our operating expenses may reduce our profits.** 

Our non-interest expenses totaled $29.4 million, $113.9 million and $98.9 million for the three months ended March 31, 2026 and the years ended December 31, 2025 and 2024, respectively. Although we have achieved certain efficiencies, our efficiency ratio, comparative to peers, remains high. Our efficiency ratio, which is calculated as operating expense divided by the sum of net interest income and other income, totaled 90.58%, 89.61% and 87.58% for the three months ended March 31, 2026 the years ended December 31, 2025 and 2024, respectively. Our business strategy includes growth, expansion of our market area, and improvements in technology and product offerings, which are intended to produce efficiencies, reduce manual work and create long-term cost savings but may increase our expenses in the short-term. Failure to control or maintain our expenses may reduce future profits.

**Our funding sources may prove insufficient to replace deposits at maturity and support potential growth. A lack of liquidity could adversely affect our financial condition and results of operations and result in regulatory limits being placed on us.** 

We must maintain sufficient funds to respond to the needs of depositors and borrowers. As a part of our liquidity management, we use a number of funding sources in addition to core deposit growth and repayments and maturities of loans and investments. As we grow, we are likely to depend more on these sources, which may include Federal Home Loan Bank of Boston advances, federal funds purchased and brokered certificates of deposit. While we emphasize the generation of low-cost core deposits as a source of funding, there is strong competition for such deposits in our market area. Additionally, deposit balances can decrease if customers perceive alternative investments as providing a better risk/return tradeoff. Adverse operating results or changes in industry conditions could lead to difficulty or an inability to access these additional funding sources. Our financial flexibility will be severely constrained if we are unable to maintain our access to funding or if adequate financing is not available to accommodate future growth at acceptable interest rates.

Further, if we are required to rely more heavily on more expensive funding sources to support liquidity and future growth, our revenues may not increase proportionately to cover our increased costs. In this case, our operating margins and profitability would be adversely affected. Alternatively, we may need to sell a portion of our investment and/or loan portfolio to raise funds, which, depending upon market conditions, could result in us realizing a loss on the sale of such assets.

A lack of liquidity could also attract increased regulatory scrutiny and potential restraints imposed on us by regulators. Depending on the capitalization status and regulatory treatment of depository institutions, including whether an institution is subject to a supervisory prompt corrective action directive, certain additional regulatory restrictions and prohibitions may apply, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions on payment of dividends and restrictions on the acceptance of brokered deposits.

At March 31, 2026, we had $95.5 million outstanding in advances from the Federal Home Loan Bank of Boston. At March 31, 2026, we had the ability to borrow $498.2 million in additional Federal Home Loan Bank of Boston advances. At March 31, 2026, we also had a $7.0 million line of credit with the Federal Home Loan Bank of Boston, none of which was drawn at that date. Additionally, at March 31, 2026, we had a $162.7 million secured line of credit through the Federal Reserve Borrower in Custody program. We also have available unsecured lines of credit with correspondent banks at interest rates that adjust daily, with borrowing capacity of $25.0 million at March 31, 2026. In addition, we have an agreement with the American Financial Exchange, LLC ("AFX") that provides us access to unsecured overnight borrowings with various counterparties. At March 31, 2026, we had a credit limit of $400.0 million. At March 31, 2026, no advances were outstanding under these lines of credit of the agreement with AFX. Lastly, as of March 31, 2026, we can access $288.5 million in funding through Intrafi One-Way-Buy, which enables banks to purchase wholesale funding at fixed or floating rates without collateralization requirements.

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We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

For further information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources."

**The development of new products and services may impose additional costs on us and may expose us to increased operational risk.** 

The introduction of new products and services can entail significant investments in time and resources, financial or otherwise, including regulatory approvals. Substantial risks and uncertainties are associated with the introduction of new products and services, including technical and control requirements that may need to be developed and implemented, rapid technological change in the industry, our ability to access technical and other information from its clients, the significant and ongoing investments required to bring new products and services to market in a timely manner at competitive prices and the preparation of marketing, sales and other materials that fully and accurately describe the product or service and its underlying risks. Our failure to manage these risks and uncertainties also exposes us to enhanced risk of operational lapses which may result in the recognition of financial statement liabilities. Regulatory and internal control requirements, capital requirements, competitive alternatives, vendor relationships and shifting market preferences may also determine if such initiatives can be brought to market in a manner that is timely and attractive to our clients. Products and services relying on internet and mobile technologies may expose us to fraud and cybersecurity risks. Failure to successfully manage these risks in the development and implementation of new products or services could have a material adverse effect on our business and reputation, as well as on its consolidated results of operations and financial condition.

**We face significant operational risks because of our reliance on technology. Our information technology systems may be subject to failure, interruption or security breaches.** 

Information technology systems are critical to our business. Our business requires us to collect, process, transmit and store significant amounts of confidential information regarding our customers, employees and our own business, operations, plans and business strategies. We use various technology systems to manage our customer relationships, general ledger, securities investments, deposits, and loans. Our computer systems, data management and internal processes, as well as those of third parties, are integral to our performance. Our operational risks include the risk of malfeasance by employees or persons outside our company, errors relating to transaction processing and technology, systems failures or interruptions, breaches of our internal control systems and compliance requirements, and business continuation and disaster recovery. There have been increasing efforts by third parties to breach data security at financial institutions. Such attacks include computer viruses, malicious or destructive code, phishing attacks, denial of service or information or other security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of confidential, proprietary and other information, damages to systems, or other material disruptions to network access or business operations. Although we take protective measures and believe that we have not experienced any of the types of data breaches described above, the security of our computer systems, software, and networks may be vulnerable to breaches, unauthorized access, misuse, computer viruses, or other malicious code and cyber-attacks that could have an impact on information security. Because the techniques used to cause security breaches change frequently, we may be unable to proactively address these techniques or to implement adequate preventative measures.

In the event of a breakdown in our internal control systems, improper operation of our systems or improper employee actions, or a breach of our security systems, including if confidential or proprietary information were to be mishandled, misused or lost, we could suffer financial loss, loss of customers and damage to our reputation, and face regulatory action or civil litigation. Any of these events could have a material adverse effect on our financial condition and results of operations. Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits.

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**We rely on third-party vendors, which could expose us to additional cybersecurity risks.** 

Third-party vendors provide key components of our business infrastructure, including certain data processing and information services. Accordingly, our operations are exposed to risk that these vendors will not perform in accordance with our contractual agreements with them, or we also could be adversely affected if such an agreement is not renewed by the third-party vendor or is renewed on terms less favorable to us. If our third-party providers encounter difficulties, or if we have difficulty communicating with those service providers, our ability to adequately process and account for transactions could be affected, and our business operations could be adversely affected, which could have a material adverse effect on our financial condition and results of operations. Threats to information security also exist in the processing of customer information through various other vendors and their personnel. To our knowledge, the services and programs provided to us by third parties have not experienced any material security breaches. However, the existence of cyber-attacks or security breaches at third parties with access to our data, such as vendors, may not be disclosed to us in a timely manner.

**We may be subject to risks and losses resulting from fraudulent activities that could adversely impact our financial performance and results of operations.** 

As a bank, we are susceptible to fraudulent activity that may be committed against us or our clients, which may result in financial losses or increased costs to us or our clients, disclosure or misuse of our information or our client information, misappropriation of assets, privacy breaches against our clients, litigation or damage to our reputation. We are most subject to compliance and fraud risk in connection with ACH and wire transactions, the origination of loans, checking transactions, and debit cards that we have issued to our customers, and ATM/ITM transactions.

We maintain a system of internal controls and insurance coverage to mitigate against such risks, including data processing system failures and errors, and customer fraud. If our internal controls fail to prevent or detect any such occurrence, or if any resulting loss is not insured or exceeds applicable insurance limits, it could have a material adverse effect on our business, financial condition and results of operations.

**Fraud by merchants or others could have a material adverse effect on our business and financial condition.** 

We may be liable for fraudulent transactions initiated by merchants or others. Examples of fraud include when a merchant or other party knowingly uses a stolen or counterfeit card to make a transaction, or if a merchant intentionally fails to deliver the merchandise or services sold in an otherwise valid transaction. Criminals are using increasingly sophisticated methods to engage in illegal activities such as counterfeiting and fraud. It is possible that incidents of fraud could increase in the future. Failure to effectively manage risk and prevent fraud would increase our chargeback liability or other liability. Increases in chargebacks or other liability could have a material adverse effect on our business, financial condition, and results of operations.

**We face funds transfer and payments-related risks.** 

As a financial institution, we bear funds transfer risks of different types, which result from large transaction volumes and large dollar amounts of incoming and outgoing money transfers. Loss exposure may result if money is transferred before it is received, or legal rights to reclaim monies transferred are asserted, including payments made to merchants for payment clearing, while customers have statutory periods to reverse their payments. Exposure also results from payments made prior to the collection of funds, which is performed as accommodations to customers. We are subject to unique settlement risks as our transfers may be larger than typical financial institutions of our size. Transfers could also be made in error or as a result of fraud. Additionally, as with other financial institutions, we may incur legal liability or reputational risk, if we unknowingly process payments for companies in violation of money laundering laws or other regulations or immoral activities.

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**Future potential reliance on and integration of artificial intelligence (AI) and machine learning (ML) technologies could expose us to various risks, including operational, data, regulatory, and reputational risks, which could materially affect our business and financial results.**

The enhanced use of AI and ML by financial institutions can lead to a variety of risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operational & Model Risk: AI/ML models that can be used for credit scoring, fraud detection,
customer service, and investment decisions can rely on complex algorithms and vast datasets. Errors, biases, or "hallucinations" (generating false information) in these models, or unexpected system failures, could lead to flawed
decisions, financial losses, compliance failures, or degraded customer experiences, impacting profitability and client retention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Data Security & Privacy: AI systems process sensitive customer data. Security breaches or
unauthorized access to these systems could result in data theft, loss of intellectual property, and significant penalties, damaging customer trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Regulatory & Compliance Risk: The regulatory landscape for AI is rapidly evolving. New laws could
impose costly compliance burdens, restrict AI use, or introduce liabilities, particularly concerning algorithmic bias and fair lending practices (e.g., "digital redlining"), potentially increasing operational costs and limiting service
offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Talent & Third-Party Risk: Attracting and retaining skilled AI professionals is crucial and
competitive. Financial institutions may also have greater dependence on third-party AI vendors, creating dependency risks and potential issues with data handling, model reliability, and licensing, all of which could disrupt operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reputational & Ethical Risk: Misuse of AI, biased outcomes, or privacy violations can harm a
financial institution's brand, erode customer confidence, and attract negative public attention, potentially affecting demand for services.

If we cannot effectively manage these challenges, including adapting to rapid technological change and ensuring responsible AI governance, our reputation, competitive position, and financial performance could be significantly harmed.

**We maintain a defined pension benefit plan for the benefit of our employees. We may determine to terminate this plan in the future. We could incur an expense in connection with the termination, which could negatively affect our income during the year of the termination.** 

We maintain a defined pension benefit plan for the benefit of employees of BayCoast Bank. We may choose to terminate this plan in the future. The cost to terminate the plan primarily depends on the value of the plan's assets and applicable interest rates at the time of such termination. We cannot estimate the actual costs associated with potential termination from the plan until the date of the termination, but if these costs were material, it would negatively impact future earnings in the year of termination.

**The cost of additional finance and accounting systems, procedures and controls in order to satisfy our new public company reporting requirements will increase our expenses.** 

As a result of the completion of this offering, we will become a public reporting company. We expect that the obligations of being a public company, including the substantial public reporting obligations, will require significant expenditures and place additional demands on our management team. We have made, and will continue to make, changes to our internal controls and procedures for financial reporting and accounting systems to meet our reporting obligations as a stand-alone public company. However, the measures we take may not be sufficient to satisfy our obligations as a public company. Section 404 of the Sarbanes-Oxley Act requires annual management

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assessments of the effectiveness of our internal control over financial reporting, starting with the second Annual Report on Form 10-K that we would expect to file with the Securities and Exchange Commission. Any failure to achieve and maintain an effective internal control environment could have a material adverse effect on our business and stock price. In addition, we may need to hire additional compliance, accounting and financial staff with appropriate public company experience and technical knowledge, and we may not be able to do so in a timely fashion. As a result, we may need to rely on outside consultants to provide these services for us until qualified personnel are hired. These obligations will increase our operating expenses and could divert our management's attention from our operations.

**We are a holding company and will depend on BayCoast Bank for dividends, distributions, and other payments.** 

Narragansett Bancorp, Inc. is a legal entity separate and distinct from BayCoast Bank. Revenues and cash flows of Narragansett Bancorp, Inc. (on a non-consolidated basis) will be derived primarily from dividends paid to it by BayCoast Bank. The right of Narragansett Bancorp, Inc., and consequently the right of our stockholders, to participate in any distribution of the assets or earnings of BayCoast Bank, through the payment of such dividends or otherwise, is necessarily subject to the prior claims of creditors of BayCoast Bank (including depositors), except to the extent that certain claims of Narragansett Bancorp, Inc. in a creditor capacity may be recognized. See "Our Policy Regarding Dividends" for a discussion of our expected dividend policy following the completion of the offering.

**<u>Risks Related to Accounting Matters</u>**

**Changes in accounting standards could affect reported earnings.** 

The bodies responsible for establishing accounting standards, including the Financial Accounting Standards Board ("FASB"), the Securities and Exchange Commission and other regulatory bodies, periodically change the financial accounting and reporting guidance that governs the preparation of our financial statements. These changes can be hard to predict and can materially impact how we record and report our financial condition and results of operations. In some cases, we could be required to apply new or revised guidance retroactively.

**Changes in management's estimates and assumptions may have a material impact on our consolidated financial statements and our financial condition or operating results.** 

In preparing this prospectus as well as periodic reports we will be required to file under the Securities Exchange Act of 1934, including our consolidated financial statements, our management is and will be required under applicable rules and regulations to make estimates and assumptions as of a specified date. These estimates and assumptions are based on management's best estimates and experience as of that date and are subject to substantial risk and uncertainty. Materially different results may occur as circumstances change and additional information becomes known. Areas requiring significant estimates and assumptions by management include our evaluation of the adequacy of our allowance for credit losses, the calculation of our deferred tax assets and our determinations with respect to the fair values of financial instruments.

**<u>Other Risks Related to Our Business</u>**

**Legal and regulatory proceedings and related matters could adversely affect us.** 

We have been and may in the future become involved in legal and regulatory proceedings. We consider most of the proceedings to be in the normal course of our business or typical for the industry; however, it is inherently difficult to assess the outcome of these matters, and we may not prevail in any proceedings or litigation. There could be substantial costs and management diversion in such litigation and proceedings, and any adverse determination could have a materially adverse effect on our business, brand or image, or our financial condition and results of our operations.

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**We are a community bank and our ability to maintain our reputation is critical to the success of our business, and the failure to do so may materially adversely affect our performance.** 

We are a community bank, and our reputation is one of the most valuable components of our business. A key component of our business strategy is to rely on our reputation for customer service and knowledge of local markets to expand our presence by capturing new business opportunities from existing and prospective customers in our market area and contiguous areas. As such, we strive to conduct our business in a manner that enhances our reputation. This is done, in part, by recruiting, hiring and retaining employees and by retaining, appointing or electing directors who share our core values of being an integral part of the communities we serve, delivering superior service to our customers and caring about our customers and employees. Threats to our reputation can come from many sources, including adverse sentiment about financial institutions generally, unethical practices, employee misconduct, failure to deliver minimum standards of service or quality, compliance deficiencies, cybersecurity incidents and questionable or fraudulent activities of our customers. Negative publicity regarding our business, employees, or customers, with or without merit, may result in the loss of customers and employees, costly litigation and increased governmental regulation, any or all of which could adversely affect our business and operating results.

**Severe weather, natural disasters and other external events could significantly affect our operations and results.** 

Severe weather or natural disasters, such as tornados, drought and other adverse external events, could have a significant effect on our ability to conduct business. Such events could affect the stability of our deposit base, impair the ability of borrowers to repay outstanding loans, impair the value of collateral securing loans, cause significant property damage, result in loss of revenue and/or cause us to incur additional expenses. Severe weather, natural disasters, environmental changes (such as coastal erosion) and changes in related regulations could also have direct negative effects on tourist and vacation spending in the area, the condition of waterfront properties, rental income from and value of beachfront and coastal properties and numerous industries within our coastal market areas, including the fishing and seafood processing industries. Accordingly, the occurrence of any such events could have a material adverse effect on our business, which, in turn, could adversely affect our financial condition and results of operations.

**If our deposits grow too large, we may lose the benefits of excess deposit insurance provided by the Depositors Insurance Fund.** 

BayCoast Bank's deposits are insured in full beyond federal deposit insurance coverage limits by the Depositors Insurance Fund, or the DIF, a private excess deposit insurer created under Massachusetts law. We believe offering full deposit insurance in excess of FDIC insurance limits gives us a competitive advantage for individual, corporate and municipal depositors having deposit balances. However, the DIF may require member institutions that pose greater than normal loss exposure risk to the DIF, including based on larger asset size, to take certain risk-mitigating measures or withdraw from the DIF. In such an event, an institution may be required to reduce its level of excess deposits, pay for the reinsurance of excess deposits, make an additional capital contribution to the DIF, provide collateral or take other risk-mitigating measures that the DIF may require, which may include entering into reciprocal deposit programs with other financial institutions or reciprocal deposit services. Any of the above measures may reduce our overall level of deposits and increase our reliance on other, more expensive or less stable sources for funding, including Federal Home Loan Bank advances, which would reduce net income.

**<u>Risks Related to the Offering</u>**

**The future price of our common stock may be less than the purchase price in the offering.** 

If you purchase shares of common stock in the offering, you may not be able to sell them at or above the purchase price in the offering. In many cases, shares of common stock issued by newly converted savings institutions or mutual holding companies have traded below the initial offering price. After the shares of our

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common stock begin trading, the trading price of the common stock will be determined by the marketplace, and will be influenced by many factors outside of our control, including prevailing interest rates, investor perceptions, securities analyst research reports and general industry, geopolitical and economic conditions. Publicly traded stocks, including stocks of financial institutions, often experience substantial market price volatility. Price fluctuations in our common stock may be unrelated to our operating performance.

**Persons who purchase stock in the offering will own a minority of Narragansett Bancorp, Inc.'s common stock and will not be able to exercise voting control over most matters put to a vote of stockholders.** 

Public stockholders will own a minority of the outstanding shares of Narragansett Bancorp, Inc.'s common stock. As a result, stockholders other than Narragansett Financial Corporation will not be able to exercise voting control over most matters put to a vote of stockholders. Narragansett Financial Corporation will own a majority of Narragansett Bancorp, Inc.'s common stock after the offering and, through its board of trustees, will be able to exercise voting control over most matters put to a vote of stockholders. Narragansett Financial Corporation may take action that the public stockholders believe to be contrary to their interests. For example, Narragansett Financial Corporation may exercise its voting control to defeat a stockholder nominee for election to the board of directors of Narragansett Bancorp, Inc.

In addition, stockholders will not be able to force a merger or second-step conversion transaction without the consent of Narragansett Financial Corporation since such a transaction requires the approval of the holders of a majority of the outstanding voting stock of Narragansett Bancorp, Inc., which can only be achieved if Narragansett Financial Corporation votes to approve such transactions. Some stockholders may desire a sale or merger transaction, since stockholders typically receive a premium for their shares, or a second-step conversion transaction, since, on a fully converted basis, most full stock institutions tend to trade at higher multiples than mutual holding companies. Stockholders could, however, prevent a second-step conversion or the implementation of equity incentive plans because under current regulations and policies, such matters also require the separate approval of the stockholders other than Narragansett Financial Corporation.

**We have broad discretion in using the proceeds of the offering. Our failure to effectively deploy the net proceeds of the offering may have an adverse effect on our financial performance and the value of our common stock.** 

We intend to invest between $27.7 million and $37.9 million of the net proceeds of the offering (or $43.8 million at the adjusted maximum of the offering range) in BayCoast Bank. We also expect to use a portion of the net proceeds we retain to make a cash contribution to the charitable foundation and fund a loan for the purchase of shares of common stock in the offering by our employee stock ownership plan. We may use the remaining net proceeds to invest in short-term and other investments and for other general corporate purposes, including the repurchase of shares of our common stock. BayCoast Bank intends to use the net proceeds it receives to fund new loans, enhance existing products and services, invest in securities, expand its banking franchise by establishing or acquiring new branches or acquiring other financial institutions as opportunities arise, or for other general corporate purposes. With the exception of the loan to the employee stock ownership plan and the contribution to the charitable foundation, we have not allocated specific amounts of the net proceeds for any of these purposes, and we will have significant flexibility in determining the amount of the net proceeds we apply to different uses and the timing thereof. Also, certain of these uses, such as acquiring other financial institutions, may require the approval of the Massachusetts Commissioner of Banks, the FDIC or the Federal Reserve Board. We have not established a timetable for investing the net proceeds, and, accordingly, we may not invest the net proceeds at a time that is most beneficial to Narragansett Bancorp, Inc., BayCoast Bank or our stockholders.

**There may be a limited trading market in our common stock, which would hinder your ability to sell our common stock and may lower the market price of the stock.** 

We have never issued capital stock and there is no established market for our common stock. We expect that our common stock will be traded on the Nasdaq Capital Market, subject to completion of the offering and compliance with certain conditions. Piper Sandler has advised us that it intends to make a market in our common

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stock following the offering, but it is under no obligation to do so or to continue to do so once trading begins. The development of an active trading market depends on the existence of willing buyers and sellers, the presence of which is not within our control, or that of any market maker. The number of active buyers and sellers of the shares of common stock at any particular time may be limited. Under such circumstances, you could have difficulty selling your shares of common stock on short notice, and, therefore, you should not view the shares of common stock as a short-term investment. In addition, our public "float," which is the number of our outstanding shares less the shares held by Narragansett Financial Corporation, our employee stock ownership plan and our directors and executive officers, may be limited. As a result, an active trading market for the common stock may not develop or, if it develops, it may not continue. If you purchase shares of common stock, you may not be able to sell them at or above $10.00 per share. Purchasers of common stock in this offering should have long-term investment intent and should recognize that there may be a limited trading market in the common stock. This may make it difficult to sell the common stock after the offering and may have an adverse impact on the price at which the common stock can be sold.

**The capital we raise in the offering may negatively impact our return on equity until we can fully deploy the proceeds. This could negatively affect the trading price of our shares of common stock.** 

Net income divided by average equity, known as "return on equity," is a ratio many investors use to compare the performance of a financial institution to its peers. Our return on equity may be relatively low until we are able to leverage the additional capital we receive from the offering. Although we anticipate increasing net interest income using proceeds of the offering, our return on equity will be reduced by the capital raised in the offering, higher expenses from the costs of being a public company, and added expenses associated with our employee stock ownership plan and the stock-based benefit plan we intend to adopt. Until we can increase our net interest income through investment of the proceeds of the offering, our return on equity may remain relatively low compared to our peer group, which may reduce the value of our shares.

**If we declare dividends on our common stock, Narragansett Financial Corporation will be prohibited from waiving the receipt of dividends.** 

Narragansett Bancorp, Inc.'s board of directors will have the authority to declare dividends on our common stock, subject to statutory and regulatory requirements. If Narragansett Bancorp, Inc. pays dividends to its stockholders, it also will be required to pay dividends to Narragansett Financial Corporation, unless Narragansett Financial Corporation is permitted by the Federal Reserve Board to waive the receipt of dividends. The Federal Reserve Board's current position is to not permit a bank holding company to waive dividends declared by its subsidiary. In addition, Massachusetts banking regulations prohibit Narragansett Financial Corporation from waiving dividends declared and paid by Narragansett Bancorp, Inc. unless the Massachusetts Commissioner of Banks does not object to the waiver and provided the waiver is not detrimental to the safe and sound operation of BayCoast Bank. Accordingly, because dividends will be required to be paid to Narragansett Financial Corporation along with all other stockholders, the amount of dividends available for all other stockholders will be less than if Narragansett Financial Corporation were permitted to waive the receipt of dividends.

**Our stock-based benefit plans will increase our expenses, which will reduce our net income.** 

We intend to implement a stock-based benefit plan after the offering, subject to stockholder approval, which would increase our annual compensation and benefit expenses related to stock options and stock awards granted to participants under the stock-based benefit plan. The amount of these stock-related compensation and benefit expenses would depend on the number of options and stock awards granted, the fair value of the options and our stock on the date of grant, the vesting period, and other factors that we cannot predict at this time. If we implement a stock-based benefit plan within one year following the completion of the reorganization and offering, the total shares of common stock reserved for issuance pursuant to awards of restricted stock and grants of options under such plan would be limited to 4% and 10%, respectively, of the aggregate amount of shares of common stock of Narragansett Bancorp, Inc. sold in the offering and contributed to the charitable foundation. If we award restricted shares of common stock or grant options in excess of these amounts under a stock-based benefit plan implemented more than one year after the completion of the offering, our expenses would increase further.

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We anticipate that our employee stock ownership plan will purchase 8% of the total number of shares of common stock sold in the offering and contributed to the charitable foundation. The cost of acquiring the shares of common stock for the employee stock ownership plan is estimated to be between $2.2 million at the minimum of the offering range and $3.4 million at the adjusted maximum of the offering range (assuming we are able to purchase all of such shares in the offering). We will record annual employee stock ownership plan expenses in an amount equal to the fair value of shares of common stock committed to be released to employees. If shares of common stock appreciate in value over time, compensation expense relating to the employee stock ownership plan will increase.

The estimated expense in the first year following the offering for shares purchased in the offering (or, if determined by our board of directors, in the after-market) by our employee stock ownership plan and for a stock-based benefit plan implemented within one year after the offering, subject to receipt of stockholder approval, is approximately $2.0 million ($1.7 million after tax) at the adjusted maximum of the offering range as set forth in the pro forma financial information under "Pro Forma Data," assuming the $10.00 per share offering price as fair market value. Actual expense may be higher if the price of our common stock at the time the shares are allocated or awarded is greater than $10.00 per share. For further discussion of our proposed stock-based plans, see "Management—Benefits to be Considered Following Completion of the Offering."

**The implementation of a stock-based benefit plan is likely to dilute your ownership interest.** 

We intend to adopt a stock-based benefit plan, which will allow participants to be awarded shares of common stock (at no cost to them) and/or options to purchase shares of our common stock, following the offering. If this stock-based benefit plan is funded solely from the issuance of authorized but unissued shares of common stock in the amounts discussed above, stockholders would experience dilution in their ownership interest totaling 5.93%. Although the implementation of a stock-based benefit plan will be subject to stockholder approval, historically, the overwhelming majority of stock-based benefit plans adopted by savings institutions and their holding companies following mutual-to-stock conversions or mutual holding company stock offerings have been approved by stockholders.

**We have not determined the timing of the adoption of a stock-based benefit plan following the offering. Stock-based benefit plans adopted more than one year following the completion of the offering may exceed regulatory restrictions on the size of stock-based benefit plans adopted within one year, which would increase our expenses and the dilution to other stockholders.** 

If we adopt a stock-based benefit plan within one year following the completion of the offering, then we may grant shares of common stock or stock options under our stock-based benefit plan for up to 4% and 10%, respectively, of the aggregate number of shares of common stock sold in the offering and contributed to the charitable foundation. The amount of stock awards and stock options available for grant under the stock-based benefit plan may exceed these amounts, provided the stock-based benefit plan is adopted more than one year following the offering. Although the implementation of a stock-based benefit plan will be subject to stockholder approval, the determination as to the timing of the implementation of such plan will be at the discretion of our board of directors. A stock-based benefit plan that provides for awards in excess of these amounts would increase our expenses beyond the amounts estimated in "—Our stock-based benefit plans will increase our expenses, which will reduce our net income." A stock-based benefit plan that provides for awards in excess of these amounts could also result in dilution to stockholders in excess of that described in "—The implementation of a stock-based benefit plan is likely to dilute your ownership interest."

**Various factors may make takeover attempts more difficult to achieve.** 

Stock banks or their holding companies, as well as individuals, may not acquire control of a company organized in the mutual holding company structure, such as Narragansett Bancorp, Inc. As a result, the only persons that may acquire control of a mutual holding company are other mutual savings institutions or mutual holding companies. Accordingly, it is very unlikely that Narragansett Bancorp, Inc. would be subject to any takeover attempt by activist stockholders or other financial institutions.

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Under applicable regulations, for a period of three years following completion of the reorganization, no person may acquire beneficial ownership of more than 10% of our common stock without prior approval of the Federal Reserve Board and the Massachusetts Commissioner of Banks. Under federal law, subject to certain exemptions, a person, entity or group must notify the Federal Reserve Board before acquiring control of a bank holding company. Also, a bank holding company must obtain the prior approval of the Federal Reserve Board before, among other things, acquiring direct or indirect ownership or control of more than 5% of any class of voting shares of any bank, including BayCoast Bank.

There also are provisions in our articles of incorporation that may be used to delay or block a takeover attempt, including a provision that prohibits any person from voting more than 10% of the shares of common stock outstanding. Furthermore, shares of restricted stock and stock options that we may grant to employees and directors, stock ownership by our management and directors, employment and change in control agreements that we have entered into with our executive officers and other factors may make it more difficult for companies or persons to acquire control of Narragansett Bancorp, Inc. without the consent of our board of directors. Taken as a whole, these statutory provisions and provisions in our articles of incorporation could result in our being less attractive to a potential acquirer and thus could adversely affect the market price of our common stock.

For additional information, see "Restrictions on the Acquisition of Narragansett Bancorp, Inc. and BayCoast Bank," "Management—Executive Compensation" and "—Benefits to be Considered Following Completion of the Offering."

**Our stock value may be negatively affected by applicable regulations that restrict stock repurchases.** 

Under current federal regulations, we may not repurchase shares of our common stock during the first year following the completion of the reorganization and offering, except when extraordinary circumstances exist and with prior regulatory approval, or except to fund management recognition plans (which would require notification to the Federal Reserve Board) or tax-qualified employee stock benefit plans. In addition, under state regulations, we may not repurchase shares of our common stock during the first three years following the completion of the offering except to fund tax-qualified or nontax-qualified employee stock benefit plans, or except in amounts not greater than 5% of our outstanding shares of common stock where compelling and valid business reasons are established to the satisfaction of the Massachusetts Commissioner of Banks. Stock repurchases are a capital management tool that can enhance the value of a company's stock, and our inability to repurchase our shares of common stock following the offering may negatively affect our stock price.

**Our articles of incorporation provide that, subject to limited exceptions, state and federal courts in the State of Maryland are the sole and exclusive forum for certain stockholder litigation matters, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, and other employees.** 

The articles of incorporation of Narragansett Bancorp, Inc. provide that, unless Narragansett Bancorp, Inc. consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of Narragansett Bancorp, Inc., (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of Narragansett Bancorp, Inc. to Narragansett Bancorp, Inc. or its stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Maryland General Corporation Law, or (iv) any action asserting a claim governed by the internal affairs doctrine will be conducted in a state or federal court located within the State of Maryland, in all cases subject to the court's having personal jurisdiction over the indispensable parties named as defendants. This exclusive forum provision does not apply to claims arising under the federal securities laws. This exclusive forum provision may limit a stockholder's ability to bring a claim in a judicial forum it finds favorable for disputes with Narragansett Bancorp, Inc. and its directors, officers, and other employees, or may cause a stockholder to incur additional expense by having to bring a claim in a judicial forum that is distant from where the stockholder resides, or both. In addition, if a court were to find this exclusive forum provision to be inapplicable or unenforceable in a particular action, we may incur additional costs associated with resolving the action in another jurisdiction, which could have a material adverse effect on our financial condition and results of operations.

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**You may not revoke your decision to purchase Narragansett Bancorp, Inc. common stock in the subscription or community offerings after you send us your order.** 

Funds submitted or automatic withdrawals authorized in connection with the purchase of shares of common stock in the subscription and community offerings will be held by us until the completion or termination of the offering, including any extension of the expiration date and consummation of a syndicated offering. Because completion of the offering will be subject to regulatory approvals and an update of the independent appraisal prepared by RP Financial, among other factors, there may be one or more delays in completing the offering. Orders submitted in the subscription and community offerings are irrevocable, and purchasers will have no access to their funds unless the offering is terminated, or extended beyond [extension date], or the number of shares to be sold in the offering is increased to more than 9,098,800 shares or decreased to fewer than 5,848,000 shares.

**The distribution of subscription rights could have adverse income tax consequences.** 

If the subscription rights granted to certain current or former depositors of BayCoast Bank employees, officers, directors, trustees and corporators are deemed to have an ascertainable value, receipt of such rights may be taxable in an amount equal to such value. Whether subscription rights are considered to have ascertainable value is an inherently factual determination. We have received an opinion of counsel, Luse Gorman, PC, that it is more likely than not that such rights have no value; however, such opinion is not binding on the Internal Revenue Service.

**<u>Risks Related to Our Contribution to the Charitable Foundation</u>**

**Our contribution to the charitable foundation will adversely affect net income.** 

In connection with the reorganization and offering, we intend to contribute to a new charitable foundation 272,000, 320,000, 368,000 and 423,200 shares of common stock at the minimum, midpoint, maximum and adjusted maximum of the offering range, respectively, and $600,000 in cash. The contribution will have an adverse effect on our net income for the quarter and year in which we make the issuance and contribution to the charitable foundation. At the adjusted maximum of the offering range, the after-tax expense of the contribution will reduce net income by approximately $3.6 million during the quarter in which the contribution is made. We had net income of $1.2 million for the three months ended March 31, 2026 and net income of $6.0 million for the year ended December 31, 2025.

**Our contribution to the charitable foundation may not be tax deductible, which could reduce our profits.** 

The Internal Revenue Service may not grant tax-exempt status to the charitable foundation. If the contribution is not deductible, we would not receive any tax benefit from the contribution. The total value of the contribution would be $4.8 million at the adjusted maximum of the offering range, which would result in after-tax expense of approximately $3.6 million. In the event that the Internal Revenue Service does not grant tax-exempt status to the charitable foundation or the contribution to the charitable foundation is otherwise not tax deductible, we would recognize after-tax expense up to the total value of the entire contribution.

In addition, even if the contribution is tax deductible, we may not have sufficient taxable income to be able to fully use the tax deduction from our contribution to the charitable foundation. Pursuant to the Internal Revenue Code, an entity is permitted to deduct up to 10% of its taxable income (income before federal income taxes and charitable contributions) in any one year for charitable contributions. Any contribution in excess of the 10% limit during the year in which the charitable contribution is made may be deducted for federal income tax purposes over each of the five years following the year in which the charitable contribution is made. Accordingly, a charitable contribution could, if necessary, be deducted over a six-year period (including the year in which the charitable contribution is made).

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**Our contribution to the charitable foundation will dilute your ownership interest.** 

Persons purchasing shares in the offering will have their ownership and voting interests in Narragansett Bancorp, Inc. (excluding the shares held by Narragansett Financial Corporation) diluted by 4.44% due to the contribution of shares of common stock to the charitable foundation.

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**SELECTED FINANCIAL AND OTHER DATA** 

The following tables set forth selected historical financial and other data for Narragansett Financial Corporation and BayCoast Bank at the dates and for the periods indicated. It is only a summary and it should be read in conjunction with the business and financial information contained elsewhere in this prospectus, including the consolidated financial statements beginning on page F-1. The information at December 31, 2025 and 2024, and for the years ended December 31, 2025 and 2024 is derived in part from the audited consolidated financial statements appearing elsewhere in this prospectus. The information at March 31, 2026, and for the three months ended March 31, 2026 and 2025 is unaudited and reflects only normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results to be achieved for the full year ending December 31, 2026 or for any other period.

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| | | | |
|:---|:---|:---|:---|
|  | **At**<br>**March 31,<br>2026** | **At December 31,** | **At December 31,** |
|  | **At**<br>**March 31,<br>2026** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  **Selected Financial Condition Data:** |  |  |  |
|  Total assets | $2896855 | $2858576 | $2934403 |
|  Cash and cash equivalents | 79147 | 38519 | 75957 |
|  Securities available for sale | 345667 | 342292 | 287373 |
|  Marketable equity securities | 2248 | 2188 | 2039 |
|  Loans, net of allowance for credit losses on loans | 2239623 | 2236274 | 2333986 |
|  Loans held for sale | 14854 | 21262 | 8945 |
|  Bank owned life insurance | 41530 | 40962 | 37597 |
|  Goodwill and other intangible assets | 28024 | 28186 | 29097 |
|  Deposits | 2466761 | 2423306 | 2325880 |
|  Borrowings | 95510 | 98063 | 270608 |
|  Subordinated debt (net of issuance costs) | 94674 | 94578 | 109193 |
|  Total retained earnings | 186644 | 186846 | 170611 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the**<br>**Three Months Ended**<br>**March 31,** | **For the**<br>**Three Months Ended**<br>**March 31,** | **For the**<br>**Years Ended**<br>**December 31,** | **For the**<br>**Years Ended**<br>**December 31,** |
|  | **2026** | **2025** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  **Selected Operating Data:** |  |  |  |  |
|  Interest and dividend income | $34421 | $35192 | $143310 | $141759 |
|  Interest expense | (14255) | (17663) | (67186) | (76400) |
|  Net interest income before provision for credit losses | 20166 | 17529 | 76124 | 65359 |
|  Provision for credit losses | (1700) | (1890) | 7360 | (7520) |
|  Net interest income after provision for credit losses | 18466 | 15639 | 68764 | 57839 |
|  Other income | 12303 | 11267 | 50302 | 47535 |
|  Operating expenses | (29255) | (27134) | (113898) | (98916) |
|  Income (loss) before income taxes | 1514 | (228) | 5168 | 6458 |
|  Income tax (expense) benefit | (266) | 105 | 831 | (1149) |
|  Net income (loss) | $1248 | $(123) | $5999 | $5309 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **At or For the**<br>**Three Months Ended**<br>**March 31,** | **At or For the**<br>**Three Months Ended**<br>**March 31,** | **At or For the**<br>**Years Ended**<br>**December 31,** | **At or For the**<br>**Years Ended**<br>**December 31,** |
|  | **2026** | **2025** | **2025** | **2024** |
|  **Performance Ratios:** |  |  |  |  |
|  Return (loss) on average assets (1) | 0.18% | (0.02)% | 0.21% | 0.18% |
|  Return (loss) on average equity (1) | 2.71% | (0.29)% | 3.39% | 3.25% |
|  Interest rate spread (2) | 2.59% | 2.12% | 2.37% | 1.94% |
|  Net interest margin (1)(3) | 3.01% | 2.56% | 2.08% | 2.38% |
|  Noninterest expense to average assets (1) | 4.12% | 3.83% | 4.00% | 3.46% |
|  Efficiency ratio (4) | 90.58% | 93.48% | 89.61% | 87.58% |
|  Average interest-earning assets to average interest-bearing liabilities | 119.45% | 117.21% | 118.95% | 117.74% |
|  Loans to deposits ratio | 92.15% | 95.89% | 93.65% | 100.35% |
|  **Capital Ratios:** |  |  |  |  |
|  Tier 1 capital to average assets (BayCoast Bank only) | 8.22% | 8.11% | 8.18% | 8.14% |
|  Tier 1 capital to risk-weighted assets (BayCoast Bank only) | 10.69% | 10.73% | 10.59% | 10.62% |
|  Common equity tier 1 capital to risk-weighted assets (BayCoast Bank only) | 10.69% | 10.73% | 10.59% | 10.62% |
|  Total capital to risk-weighted assets (BayCoast Bank only) | 11.94% | 11.94% | 11.92% | 11.76% |
|  Average equity to average assets | 6.51% | 5.83% | 6.04% | 5.56% |
|  **Asset Quality Ratios:** |  |  |  |  |
|  Allowance for credit losses on loans as a percentage of total loans | 1.31% | 1.20% | 1.28% | 1.11% |
|  Allowance for credit losses on loans as a percentage of non-performing loans | 66.15% | 467.64% | 77.69% | 481.69% |
|  Net (charge-offs) recoveries to average outstanding loans during the period (1) | (0.19)% | (0.03)% | (0.18)% | (0.02)% |
|  Non-performing loans as a percentage of total loans | 1.97% | 0.26% | 1.65% | 0.23% |
|  Non-performing loans as a percentage of total assets | 1.55% | 0.20% | 1.31% | 0.19% |
|  Total non-performing assets as a percentage of total assets | 1.55% | 0.20% | 1.31% | 0.19% |
|  **Other:** |  |  |  |  |
|  Number of offices | 25 | 25 | 25 | 25 |
|  Number of full-time equivalent employees | 532 | 523 | 523 | 519 |

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(1) Annualized for the three-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 expense divided by the sum of net interest income and other income.

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**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This prospectus contains forward-looking statements, which can be identified by the use of words such as "anticipate," "assume," "believe," "contemplate," "continue," "estimate," "expect," "indicate," "intend," "may," "plan," "project," "seek," "should," "target," "will," "would" and words of similar meaning. These forward-looking statements include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• statements of our goals, intentions and expectations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• statements regarding our business plans, prospects, growth and operating strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• statements regarding the quality of our loan and investment portfolios; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• estimates of our risks and future costs and benefits.

These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this prospectus.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic conditions, including any recessionary conditions and/or increases in unemployment, either
nationally or in our market areas, that are worse than expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy
of the allowance for credit losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to access cost-effective funding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in real estate values and both residential and commercial real estate market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• demand for loans, deposits and non-banking services in our market area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to implement our business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition among depository and other financial institutions, including with respect to our ability to charge
overdraft fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of
financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse changes in the securities or secondary mortgage markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in laws or government regulations or policies affecting financial institutions and/or their holding
companies, including changes in regulatory fees, capital requirements and insurance premiums;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal
Reserve Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the quality or composition of our loan or investment portfolios;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technological changes that may be more difficult or expensive than expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability of third-party providers to perform as expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a failure or breach of our operational or security systems or infrastructure, including cyberattacks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to manage market risk, credit risk and operational risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to enter new markets successfully and capitalize on growth opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully integrate into our operations any assets, liabilities, customers, systems and
management personnel we may acquire and our ability to realize related revenue synergies and cost savings within expected time frames, and any goodwill charges related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in consumer spending, borrowing and savings habits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, FASB, the
Securities and Exchange Commission or the Public Company Accounting Oversight Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting and/or tax estimates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to retain key employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of any national or global conflict, war or act of terrorism;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of the U.S. Government to remain open, function properly and manage federal debt limits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of a pandemic on our operations and financial results and those of our customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our compensation expense associated with equity allocated or awarded to our employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the financial condition, results of operations or future prospects of issuers of securities that we
own.

**Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Please see "Risk Factors."** 

------

**HOW WE INTEND TO USE THE PROCEEDS FROM THE OFFERING** 

Although we will not be able to determine the amount of actual net proceeds we will receive from the sale of shares of common stock until the offering is completed, we anticipate that the net proceeds will be between $55.5 million and $75.9 million, or $87.6 million if the offering is increased by 15%.

Narragansett Bancorp, Inc. intends to distribute the net proceeds from the offering as follows:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Based Upon the Sale at $10.00 Per Share of:** | **Based Upon the Sale at $10.00 Per Share of:** | **Based Upon the Sale at $10.00 Per Share of:** | **Based Upon the Sale at $10.00 Per Share of:** | **Based Upon the Sale at $10.00 Per Share of:** | **Based Upon the Sale at $10.00 Per Share of:** | **Based Upon the Sale at $10.00 Per Share of:** | **Based Upon the Sale at $10.00 Per Share of:** |
|  | **5,848,000 Shares** | **5,848,000 Shares** | **6,880,000 Shares** | **6,880,000 Shares** | **7,912,000 Shares** | **7,912,000 Shares** | **9,098,800 Shares (1)** | **9,098,800 Shares (1)** |
|  | **Amount** | **Percent of<br>Net<br>Proceeds** | **Amount** | **Percent of<br>Net<br>Proceeds** | **Amount** | **Percent of<br>Net<br>Proceeds** | **Amount** | **Percent of<br>Net<br>Proceeds** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Gross offering proceeds | $58480 |  | $68800 |  | $79120 |  | $90988 |  |
|  Less: offering expenses | (3001) |  | (3129) |  | (3256) |  | (3403) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net offering proceeds | $55479 | 100.0% | $65671 | 100.0% | $75864 | 100.0% | $87585 | 100.0% |
|  Distribution of net proceeds: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To BayCoast Bank | $27740 | 50.0% | $32836 | 50.0% | $37932 | 50.0% | $43793 | 50.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the charitable foundation | $600 | 1.1% | $600 | 0.9% | $600 | 0.8% | $600 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funding loan to employee stock ownership plan (2) | $4896 | 8.8% | $5760 | 8.8% | $6624 | 8.7% | $7618 | 8.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained by Narragansett Bancorp, Inc. | $22243 | 40.1% | $26475 | 40.3% | $30708 | 40.5% | $35574 | 40.6% |

---

(1) As adjusted to give effect to an increase in the number of shares, which could occur due to a 15% increase in
the offering range to reflect demand for the shares or changes in market conditions following the commencement of the offering.

(2) The employee stock ownership plan will purchase 8% of the aggregate number of shares sold in the offering and
contributed to the charitable foundation with funds from a loan by Narragansett Bancorp, Inc. The loan will be repaid principally through BayCoast Bank's contribution to the employee stock ownership plan over the anticipated 20-year term of the loan. The interest rate for the employee stock ownership plan loan is expected to be equal to the prime rate, as published in *The Wall Street Journal*, on the closing date of the offering.

The net proceeds may vary because total expenses relating to the offering may be more or less than our estimates. For example, our expenses would increase if a syndicated offering were used to sell shares of common stock not purchased in the subscription and community offerings. See "The Reorganization and Offering—Plan of Distribution; Selling Agent Compensation" for a discussion of fees to be paid in the event that shares are sold in a syndicated offering. Payments for shares made through withdrawals from existing deposit accounts will not result in the receipt of new funds for investment but will result in a reduction of BayCoast Bank's deposits. BayCoast Bank will receive at least 50% of the net proceeds of the offering.

Narragansett Bancorp, Inc. may use the proceeds it retains from the offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to repay a portion of the subordinated debt currently held by Narragansett Financial Corporation, which will be
held at Narragansett Bancorp, Inc. following the completion of the reorganization and offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to invest in securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to repurchase shares of its common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to pay cash dividends to stockholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for other general corporate purposes.

------

As of March 31, 2026, Narragansett Financial Corporation held $95.0 million of subordinated debt. Immediately following the reorganization and offering, Narragansett Financial Corporation will transfer the subordinated debt to Narragansett Bancorp, Inc. The outstanding subordinated debt consists of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **2022 Debt.** On December 1, 2022, Narragansett Financial Corporation issued subordinated debt (the
"2022 Debt") in a private placement offering in the principal amount of $40,000,000. The 2022 Debt accrues interest at 8.5% per annum for the first five years. Beginning December 1, 2027, the interest rate resets quarterly to an
interest rate per annum equal to the then-current three-month SOFR plus 481 basis points. The 2022 Debt matures on December 1, 2032, but may be redeemed on any scheduled interest payment date on or after December 1, 2027, in whole or in
part, at a redemption price equal to 100% of the principal amount of the 2022 Debt to be redeemed plus accrued and unpaid interest. As of March 31, 2026, there was $40.0 million of principal amount remaining outstanding on the 2022 Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **2021 Debt.** On April 30, 2021, Narragansett Financial Corporation issued subordinated debt (the
"2021 Debt") in a private placement offering in the principal amount of $45,000,000. The 2021 Debt accrued interest at 3.875% per annum for the first five years. Beginning May 15, 2026, the interest rate resets quarterly to an
interest rate per annum equal to the then-current three-month SOFR plus 319 basis points. The interest rate reset to 6.84107% on May 31, 2026. The 2021 Debt matures on May 15, 2031, but may be redeemed on any scheduled interest payment
date on or after May 15, 2026, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2021 Debt to be redeemed plus accrued and unpaid interest. As of March 31, 2026, there was $45.0 million of
principal amount remaining outstanding on the 2021 Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **2017 Debt.** On November 28, 2017, Narragansett Financial Corporation issued subordinated debt (the
"2017 Debt") in a private placement offering in the principal amount of $25,000,000. During the year ended December 31, 2025, we redeemed $15,000,000 of the 2017 Debt. Beginning December 15, 2023, the interest rate resets
quarterly to an interest rate per annum equal to the then-current three-month SOFR plus 401.161 basis points. The interest rate was 7.69% at March 31, 2026. The 2017 Debt matures on December 15, 2027, but may be redeemed on any scheduled
interest payment date on or after December 15, 2023, and thereafter, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2017 Debt to be redeemed plus accrued and unpaid interest. As of March 31, 2026,
there was $10.0 million of principal amount remaining outstanding on the 2017 Debt.

See "Our Policy Regarding Dividends" for a discussion of our expected dividend policy following the completion of the offering. Under current federal regulations, we may not repurchase shares of our common stock during the first year following the completion of the offering, except when extraordinary circumstances exist and with prior regulatory approval, or except to fund management recognition plans (which would require notification to the Federal Reserve Board) or tax-qualified employee stock benefit plans. In addition, under state regulations, we may not repurchase shares of our common stock during the first three years following the completion of the offering except to fund tax-qualified or nontax-qualified employee stock benefit plans, or except in amounts not greater than 5% of our outstanding shares of common stock where compelling and valid business reasons are established to the satisfaction of the Massachusetts Commissioner of Banks. Furthermore, our ability to pay dividends and repurchase our shares of common stock may be limited due to the $95.0 million of subordinated debt as of March 31, 2026 that will be held at Narragansett Bancorp, Inc. following the completion of the reorganization and offering.

BayCoast Bank may use the proceeds it retains from the offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to fund new loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to purchase securities as permitted under its investment policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to enhance existing, or support the growth and development of, new products and services;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to expand its banking franchise organically through *de novo* branching or through acquisitions of or
liftout transactions from financial services businesses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for other general corporate purposes.

Initially, a substantial portion of the net proceeds will be invested in short-term investments, investment-grade debt obligations and mortgage-backed securities. We have not determined specific amounts of the net proceeds that would be used for the purposes described above. The use of the proceeds outlined above may change based on many factors, including, but not limited to, changes in interest rates, equity markets, laws and regulations affecting the financial services industry, the attractiveness of potential acquisitions to expand our operations, and overall market conditions. The use of the proceeds may also change depending on our ability to receive regulatory approval to establish new branches or acquire other financial institutions.

Our return on equity may be low until we are able to reinvest effectively the additional capital raised in the offering, which may negatively affect the value of our common stock. See "Risk Factors—Risks Related to the Offering—We have broad discretion in using the proceeds of the offering. Our failure to effectively deploy the net proceeds may have an adverse effect on our financial performance and the value of our common stock."

**OUR POLICY REGARDING DIVIDENDS** 

Following completion of the offering, our board of directors will have the authority to declare dividends on our common stock, subject to our capital requirements, our financial condition and results of operations, tax considerations, statutory and regulatory limitations, and general economic conditions. However, due to the regulatory restrictions described below, we do not currently anticipate paying cash dividends on our common stock. The payment and amount of any dividend payments will depend upon a number of factors. We cannot assure you that we will pay dividends in the future, or that any such dividends will not be reduced or eliminated in the future.

Narragansett Bancorp, Inc. will not be permitted to pay dividends on its common stock if its stockholders' equity would be reduced below the amount of the liquidation account established by Narragansett Bancorp, Inc. in connection with the offering. The source of dividends will depend on the net proceeds retained by Narragansett Bancorp, Inc. and earnings thereon, and dividends from BayCoast Bank. In addition, Narragansett Bancorp, Inc. will be subject to state law limitations and federal bank regulatory policy on the payment of dividends.

If Narragansett Bancorp, Inc. pays dividends to its stockholders, it will be required to pay dividends to Narragansett Financial Corporation. The Federal Reserve Board's current policy prohibits the waiver of dividends by mutual holding companies that are regulated as bank holding companies (as opposed to savings and loan holding companies). Any such payment would dilute our minority stockholders. In addition, Massachusetts banking regulations prohibit Narragansett Financial Corporation from waiving dividends declared and paid by Narragansett Bancorp, Inc. unless the Massachusetts Commissioner of Banks does not object to the waiver and provided the waiver is not detrimental to the safe and sound operation of BayCoast Bank. Accordingly, we do not currently anticipate that Narragansett Financial Corporation will be permitted to waive dividends paid by Narragansett Bancorp, Inc. See "Risk Factors—If we declare dividends on our common stock, Narragansett Financial Corporation will be prohibited from waiving the receipt of dividends."

Furthermore, our ability to pay dividends may be limited due to the $95.0 million of subordinated debt as of March 31, 2026 that will be held at Narragansett Bancorp, Inc. following the completion of the reorganization and offering.

After the completion of the offering, BayCoast Bank will not be permitted to make a capital distribution if, after making such distribution, it would be undercapitalized. In addition, Massachusetts banking law imposes limitations on capital distributions by savings institutions. See "Supervision and Regulation—Massachusetts Banking Laws and Supervision—Dividends."

------

Narragansett Bancorp, Inc. will file a consolidated federal tax return with BayCoast Bank. Accordingly, it is anticipated that any cash distributions made by us to our stockholders would be treated as cash dividends and not as a non-taxable return of capital for federal tax purposes. Additionally, during the three-year period following the offering, we will not be permitted to make any capital distribution to stockholders that would be treated by recipients as a tax-free return of capital for federal income tax purposes.

**MARKET FOR THE COMMON STOCK** 

Narragansett Bancorp, Inc. has never issued capital stock. Accordingly, there is no established market for our common stock. Narragansett Bancorp, Inc. expects that its common stock will be quoted on the Nasdaq Capital Market under the symbol "NARA" upon completion of the reorganization and offering, including the presence of at least three registered and active market makers. Piper Sandler has advised us that it intends to make a market in shares of our common stock following the offering, but it is not obligated to do so or to continue to do so once it begins. While we will attempt before completion of the offering to obtain commitments from at least two other broker-dealers to make a market in shares of our common stock, there can be no assurance that we will be successful in obtaining such commitments.

The development of an active trading market depends on the existence of willing buyers and sellers, the presence of which is not within our control, or that of any market maker. The number of active buyers and sellers of the shares of common stock at any particular time may be limited. There can be no assurance that, if you purchase shares of common stock in the offering, you will be able to sell them at or above $10.00 per share. Purchasers of common stock in this offering should have long-term investment intent and should recognize that there may be a limited trading market in the common stock.

------

**HISTORICAL AND PRO FORMA REGULATORY CAPITAL COMPLIANCE OF BAYCOAST BANK** 

At March 31, 2026, BayCoast Bank exceeded all applicable regulatory capital requirements and was considered "well-capitalized." The table below sets forth, at March 31, 2026, the historical equity capital and regulatory capital and the pro forma equity capital and regulatory capital of BayCoast Bank after giving effect to the sale of shares of common stock at $10.00 per share. The tabular data assumes the receipt by BayCoast Bank of 50% of the net offering proceeds. See "How We Intend to Use the Proceeds from the Offering."

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **BayCoast Bank<br>Historical at**<br>**March 31, 2026** | **BayCoast Bank<br>Historical at**<br>**March 31, 2026** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** |
|  | **BayCoast Bank<br>Historical at**<br>**March 31, 2026** | **BayCoast Bank<br>Historical at**<br>**March 31, 2026** | **5,848,000 Shares** | **5,848,000 Shares** | **6,880,000 Shares** | **6,880,000 Shares** | **7,912,000 Shares** | **7,912,000 Shares** | **9,098,800 Shares (2)** | **9,098,800 Shares (2)** |
|  | **Amount** | **Percent of<br>Assets** | **Amount** | **Percent of<br>Assets** | **Amount** | **Percent of<br>Assets** | **Amount** | **Percent of<br>Assets** | **Amount** | **Percent of<br>Assets** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Equity capital | $258226 | 8.95% | $278622 | 9.56% | $282422 | 9.68% | $286222 | 9.79% | $290592 | 9.92% |
|  Tier 1 leverage capital (3)(4) | $234201 | 8.22% | $254597 | 8.85% | $258397 | 8.97% | $262197 | 9.09% | $266567 | 9.22% |
|  Tier 1 leverage requirement | 142406 | 5.00 | 143792 | 5.00 | 144047 | 5.00 | 144302 | 5.00 | 144595 | 5.00 |
|  Excess | $91796 | 3.22% | $110805 | 3.85% | $114350 | 3.97% | $117895 | 4.09% | $121972 | 4.22% |
|  Tier 1 risk-based capital (3)(4) | $234201 | 10.69% | $254597 | 11.59% | $258397 | 11.76% | $262197 | 11.92% | $266567 | 12.12% |
|  Tier 1 risk-based requirement | 175303 | 8.00 | 175747 | 8.00 | 175828 | 8.00 | 175910 | 8.00 | 176004 | 8.00 |
|  Excess | $58898 | 2.69% | $78850 | 3.59% | $82569 | 3.76% | $86287 | 3.92% | $90563 | 4.12% |
|  Total risk-based capital (3)(4) | $261594 | 11.94% | $281990 | 12.84% | $285790 | 13.00% | $289590 | 13.17% | $293960 | 13.36% |
|  Total risk-based requirement | 219129 | 10.00 | 219683 | 10.00 | 219785 | 10.00 | 219887 | 10.00 | 220005 | 10.00 |
|  Excess | $42465 | 1.94% | $62307 | 2.84% | $66005 | 3.00% | $69703 | 3.17% | $73955 | 3.36% |
|  Common equity tier 1 risk-based capital (3)(4) | $234201 | 10.69% | $254597 | 11.59% | $258397 | 11.76% | $262197 | 11.92% | $266567 | 12.12% |
|  Common equity tier 1 risk-based requirement | 142434 | 6.50 | 142794 | 6.50 | 142861 | 6.50 | 142927 | 6.50 | 143003 | 6.50 |
|  Excess | $91767 | 4.19% | $111803 | 5.09% | $115536 | 5.26% | $119270 | 5.42% | $123564 | 5.62% |
|  Reconciliation: | Reconciliation: | Reconciliation: |  |  |  |  |  |  |  |  |
|  Net proceeds infused into BayCoast Bank | Net proceeds infused into BayCoast Bank | Net proceeds infused into BayCoast Bank | $27740 |  | $32836 |  | $37932 |  | $43793 |  |
|  Less: Common stock acquired by employee stock ownership plan | Less: Common stock acquired by employee stock ownership plan | Less: Common stock acquired by employee stock ownership plan | (4896) |  | (5760) |  | (6624) |  | (7618) |  |
|  Less: Common stock acquired by stock-based benefit plan | Less: Common stock acquired by stock-based benefit plan | Less: Common stock acquired by stock-based benefit plan | (2448) |  | (2880) |  | (3312) |  | (3809) |  |
|  Pro forma increase in leverage capital | Pro forma increase in leverage capital | Pro forma increase in leverage capital | $20396 |  | $24196 |  | $27996 |  | $32366 |  |

---

(1) Pro forma capital levels assume that the employee stock ownership plan purchases 8% of the aggregate number of
shares of common stock of Narragansett Bancorp, Inc. sold in the offering and contributed to the charitable foundation with funds we lend and that our stock-based benefit plan issues a number of shares equal to 4% of the aggregate number of shares
of common stock sold in the offering and contributed to the charitable foundation for restricted stock awards. Pro forma capital calculated under U.S. generally accepted accounting principles ("GAAP") and regulatory capital have been
reduced by the amount required to fund these plans. See "Management" for a discussion of the employee stock ownership plan.

(2) As adjusted to give effect to an increase in the number of shares, which increase could occur due to a 15%
increase in the offering range to reflect demand for the shares or changes in market conditions following the commencement of the offering.

(3) Leverage capital levels are shown as a percentage of total average assets.

(4) Pro forma dollar amounts and percentages assume net proceeds are invested in assets with a 20% risk weighting.

------

**CAPITALIZATION** 

The following table presents, at March 31, 2026, the historical consolidated capitalization of Narragansett Financial Corporation and the pro forma consolidated capitalization of Narragansett Bancorp, Inc. after giving effect to the offering based upon the assumptions set forth under "Pro Forma Data."

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Narragansett<br>Financial<br>Corporation<br>Historical at<br>March 31, 2026** | **Narragansett Bancorp, Inc. Pro Forma at March 31, 2026**<br>**Based upon the Sale in the Offering at $10.00 per Share of:** | **Narragansett Bancorp, Inc. Pro Forma at March 31, 2026**<br>**Based upon the Sale in the Offering at $10.00 per Share of:** | **Narragansett Bancorp, Inc. Pro Forma at March 31, 2026**<br>**Based upon the Sale in the Offering at $10.00 per Share of:** | **Narragansett Bancorp, Inc. Pro Forma at March 31, 2026**<br>**Based upon the Sale in the Offering at $10.00 per Share of:** |
|  | **Narragansett<br>Financial<br>Corporation<br>Historical at<br>March 31, 2026** | **5,848,000<br>Shares** | **6,880,000**<br>**Shares** | **7,912,000<br>Shares** | **9,098,800**<br>**Shares (1)** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Deposits (2) | $2466761 | $2466761 | $2466761 | $2466761 | $2466761 |
|  Borrowings | 190184 | 190184 | 190184 | 190184 | 190184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits and borrowed funds | $2656945 | $2656945 | $2656945 | $2656945 | $2656945 |
|  **Stockholders' equity:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock, par value $0.01 per share, 5,000,000 shares authorized; none issued | $— | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, par value $0.01 per share, 60,000,000 shares authorized; shares to be issued as reflected (3) |  | 136 | 160 | 184 | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital |  | 58063 | 68711 | 79360 | 91605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings (4) | 190643 | 190643 | 190643 | 190643 | 190643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (3999) | (3999) | (3999) | (3999) | (3999) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax benefit of contribution to charitable foundation |  | 830 | 950 | 1070 | 1208 |
|  **Less:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense of stock contribution to charitable foundation |  | (2720) | (3200) | (3680) | (4232) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense of cash contribution to charitable foundation |  | (600) | (600) | (600) | (600) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital retained by Narragansett Financial Corporation |  | (500) | (500) | (500) | (500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock to be acquired by employee stock ownership plan (5) |  | (4896) | (5760) | (6624) | (7618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock to be acquired by stock-based benefit plan (6) |  | (2448) | (2880) | (3312) | (3809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | $186644 | $234509 | $243525 | $252542 | $262910 |
|  <u>Pro Forma Shares Outstanding</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares sold in the offering |  | 5848000 | 6880000 | 7912000 | 9098800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares contributed to the charitable foundation |  | 272000 | 320000 | 368000 | 423200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares issued to Narragansett Financial Corporation |  | 7480000 | 8800000 | 10120000 | 11638000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shares issued |  | 13600000 | 16000000 | 18400000 | 21160000 |
|  Total stockholders' equity as a percentage of total assets | 6.44% | 7.96% | 8.24% | 8.52% | 8.84% |
|  Tangible equity as a percentage of tangible assets | 5.53% | 7.08% | 7.37% | 7.65% | 7.98% |

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(1) As adjusted to give effect to an increase in the number of shares, which increase could occur due to a 15%
increase in the offering range to reflect demand for the shares or changes in market conditions following the commencement of the offering.

(2) Does not reflect withdrawals from deposit accounts at BayCoast Bank for the purchase of shares of common stock.
These withdrawals would reduce pro forma deposits and assets by the amount of the withdrawals.

(3) No effect has been given to the issuance of additional shares of common stock pursuant to the exercise of
options under a stock-based benefit plan. If the plan is implemented within the first year after the closing of the offering, an amount up to 10% of shares of common stock of Narragansett Bancorp, Inc. sold in the offering will be reserved for
issuance upon the exercise of options under the plans. See "Management."

(4) The retained earnings of BayCoast Bank will be substantially restricted after the offering. See "Our
Policy Regarding Dividends" and "Supervision and Regulation—Federal Bank Regulation—Capital Distributions."

(5) Assumes that 8% of the aggregate number of shares of common stock of Narragansett Bancorp, Inc. sold in the
offering and contributed to the charitable foundation will be acquired by the employee stock ownership plan financed by a loan from Narragansett Bancorp, Inc. The loan will be repaid principally from BayCoast Bank's contributions to the
employee stock ownership plan. Since Narragansett Bancorp, Inc. will finance the employee stock ownership plan debt, this debt will be eliminated through consolidation and no liability will be reflected on Narragansett Bancorp, Inc.'s
consolidated balance sheet. Accordingly, the number of shares of common stock acquired by the employee stock ownership plan is shown in this table as a reduction of total stockholders' equity.

(6) Assumes a number of shares of common stock equal to 4% of the aggregate number of shares of common stock to be
sold in the offering and contributed to the charitable foundation will be issued under a stock-based benefit plan. The funds to be used by such plan to purchase shares will be provided by Narragansett Bancorp, Inc. The dollar amount of common stock
to be purchased is based on the $10.00 per share offering price and represents unearned compensation. This amount does not reflect possible increases or decreases in the value of common stock relative to the subscription price in the offering. We
will record compensation expense to reflect the vesting of shares granted pursuant to such stock-based benefit plan and will credit capital in an amount equal to the charge to operations. Implementation of such plan will require stockholder
approval.

------

**PRO FORMA DATA** 

The following tables summarize historical data for Narragansett Financial Corporation and pro forma data for Narragansett Bancorp, Inc. at and for the three months ended March 31, 2026 and at and for the year ended December 31, 2025. This information is based on assumptions set forth below and in the tables and related footnotes, and should not be used as a basis for projections of market value of the shares of common stock following the offering.

We calculated the pro forma consolidated net income of Narragansett Bancorp, Inc. for each period as if the shares of common stock had been sold at the beginning of the period and the net proceeds had been invested at 3.92% (2.94% on an after-tax basis), which is equal to the yield on the five-year U.S. Treasury Note as of March 31, 2026. In light of current interest rates, we consider this rate to more accurately reflect the pro forma reinvestment rate than the arithmetic average method, which assumes reinvestment of the net proceeds at a rate equal to the average of the yield on interest-earning assets and the cost of deposits for those periods.

We further believe that the reinvestment rate is factually supportable because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the yield on the U.S. Treasury Note can be determined and/or estimated from third-party sources; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we believe that U.S. Treasury securities are not subject to credit losses due to a U.S. Government guarantee of
payment of principal and interest.

We calculated historical and pro forma per share amounts by dividing historical and pro forma amounts of net income and stockholders' equity by the indicated number of shares of common stock. For pro forma calculations, we adjusted these figures to give effect to the shares of common stock purchased by the employee stock ownership plan. We computed per share amounts for each period as if the common stock was outstanding at the beginning of the periods, but we did not adjust per share historical or pro forma stockholders' equity to reflect the earnings on the estimated net proceeds.

The pro forma tables give effect to the implementation of a stock-based benefit plan. We have assumed that the stock-based benefit plan will acquire an amount of common stock equal to 4% of the aggregate number of shares of common stock sold in the offering and contributed to the charitable foundation at the same price for which the shares of common stock were sold in the offering. We assume that shares of common stock are granted under the plan in awards that vest over a five-year period.

We have also assumed that the stock-based benefit plan will grant options to acquire common stock equal to 10% of the aggregate number of shares of common stock sold in the offering and contributed to the charitable foundation. In preparing the following table, we also assumed that stockholder approval was obtained, that the exercise price of the stock options and the market price of the stock at the date of grant were $10.00 per share and that the stock options had a term of ten years and vested over five years. We applied the Black-Scholes option pricing model to estimate a grant-date fair value of $4.64 for each option. In addition to the terms of the options described above, the Black-Scholes option pricing model incorporated an estimated volatility rate of 25.20% for the common stock based on an index of publicly traded financial institutions and financial institution holding companies, no dividend yield, an expected option life of 10 years and a risk-free interest rate of 4.30%. The plan of reorganization provides that we may grant awards of stock or options under one or more stock benefit plans in an amount up to 25% of the shares of common stock held by persons other than Narragansett Financial Corporation.

As disclosed under "How We Intend to Use the Proceeds from the Offering," Narragansett Bancorp, Inc. intends to contribute 50% of the net proceeds from the offering to BayCoast Bank. Narragansett Bancorp, Inc. will use a portion of the proceeds it retains to make a loan to the employee stock ownership plan and retain the rest of the proceeds for future use.

------

The pro forma tables do not give effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• withdrawals from deposit accounts for the purpose of purchasing shares of common stock in the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Narragansett Bancorp, Inc.'s results of operations after the offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the market price of the shares of common stock after the offering.

The following pro forma information may not represent the financial effects of the offering at the date on which the offering actually occurs and you should not use the tables to indicate future results of operations. Pro forma stockholders' equity represents the difference between the stated amounts of assets and liabilities of Narragansett Bancorp, Inc., computed in accordance with GAAP. We did not increase or decrease stockholders' equity to reflect the difference between the carrying value of loans and other assets and their market value. Pro forma stockholders' equity is not intended to represent the fair market value of the common stock, and may be different than the amounts that would be available for distribution to stockholders if we were liquidated.

------

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **At or for the Three Months Ended March 31, 2026**<br>**Based upon the Sale at $10.00 Per Share of:** | **At or for the Three Months Ended March 31, 2026**<br>**Based upon the Sale at $10.00 Per Share of:** | **At or for the Three Months Ended March 31, 2026**<br>**Based upon the Sale at $10.00 Per Share of:** | **At or for the Three Months Ended March 31, 2026**<br>**Based upon the Sale at $10.00 Per Share of:** |
|  | **5,848,000**<br>**Shares** | **6,880,000**<br>**Shares** | **7,912,000**<br>**Shares** | **9,098,800**<br>**Shares (1)** |
|  | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** |
|  Gross proceeds of offering | $58480 | $68800 | $79120 | $90988 |
|  Expenses | (3001) | (3129) | (3256) | (3403) |
| &nbsp;&nbsp;&nbsp;&nbsp; Estimated net proceeds | 55479 | 65671 | 75864 | 87585 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash contribution to charitable foundation | (600) | (600) | (600) | (600) |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock purchased by employee stock ownership plan | (4896) | (5760) | (6624) | (7618) |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock purchased by stock-based benefit plan | (2448) | (2880) | (3312) | (3809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net proceeds, as adjusted | $47535 | $56431 | $65328 | $75558 |
| **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** |
|  Net income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical | $1248 | $1248 | $1248 | $1248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income on net proceeds | 350 | 415 | 480 | 555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income on capitalization retained by mutual holding company | (4) | (4) | (4) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee stock ownership plan adjustment (2) | (46) | (54) | (62) | (72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock award adjustment (3) | (92) | (108) | (124) | (143) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock option plan adjustment (4) | (133) | (157) | (180) | (207) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net income (5)(6) | $1323 | $1341 | $1358 | $1378 |
|  Per share net income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical | $0.10 | $0.08 | $0.07 | $0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income on net proceeds | 0.03 | 0.03 | 0.03 | 0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income on capitalization retained by mutual holding company | (0.00) | (0.00) | (0.00) | (0.00) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee stock ownership plan adjustment (2) | (0.00) | (0.00) | (0.00) | (0.00) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock award adjustment (3) | (0.01) | (0.01) | (0.01) | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock option plan adjustment (4) | (0.01) | (0.01) | (0.01) | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net income per share (5) | $0.11 | $0.09 | $0.08 | $0.07 |
|  Stock price as a multiple of pro forma earnings per share | 22.73 | 27.78 | 31.25 | 35.71 |
|  Shares used for calculating pro forma earnings per share | 13116520 | 15431200 | 17745880 | 20407762 |
| **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** |
|  Stockholders' equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical | $186644 | $186644 | $186644 | $186644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net proceeds | 55479 | 65671 | 75864 | 87585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalization retained by mutual holding company | (500) | (500) | (500) | (500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock contribution to charitable foundation | 2720 | 3200 | 3680 | 4232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense of stock contribution to charitable foundation | (2720) | (3200) | (3680) | (4232) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash contribution to charitable foundation | (600) | (600) | (600) | (600) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax benefit of contribution to charitable foundation | 830 | 950 | 1070 | 1208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock acquired by employee stock ownership plan (2) | (4896) | (5760) | (6624) | (7618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock acquired by stock-based benefit plan (3) | (2448) | (2880) | (3312) | (3809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma stockholders' equity (6) | $234509 | $243525 | $252542 | $262910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | $(28024) | $(28024) | $(28024) | $(28024) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma tangible stockholders' equity (6) | $206485 | $214501 | $224518 | $234886 |
|  Stockholders' equity per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical | $13.72 | $11.67 | $10.14 | $8.82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net proceeds | 4.08 | 4.10 | 4.12 | 4.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalization retained by mutual holding company | (0.04) | (0.03) | (0.03) | (0.02) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock contribution to charitable foundation | 0.20 | 0.20 | 0.20 | 0.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense of stock contribution to charitable foundation | (0.20) | (0.20) | (0.20) | (0.20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash contribution to charitable foundation | (0.04) | (0.04) | (0.03) | (0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax benefit of contribution to charitable foundation | 0.06 | 0.06 | 0.06 | 0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock acquired by employee stock ownership plan (2) | (0.36) | (0.36) | (0.36) | (0.36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock acquired by stock-based benefit plan (3) | (0.18) | (0.18) | (0.18) | (0.18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma stockholders' equity per share (6) | $17.24 | $15.22 | $13.72 | $12.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | $(2.06) | $(1.75) | $(1.52) | $(1.32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma tangible stockholders' equity per share (6) | $15.18 | $13.47 | $12.20 | $11.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Offering price to pro forma stockholders' equity per share | 58.00 | 65.70 | 72.89 | 80.45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Offering price to pro forma tangible stockholders' equity per share | 65.88 | 74.24 | 81.97 | 90.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding for pro forma equity per share calculations | 13600000 | 16000000 | 18400000 | 21160000 |

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*(footnotes begin on second following page)* 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **At or for the Year Ended December 31, 2025**<br>**Based upon the Sale at $10.00 Per Share of:** | **At or for the Year Ended December 31, 2025**<br>**Based upon the Sale at $10.00 Per Share of:** | **At or for the Year Ended December 31, 2025**<br>**Based upon the Sale at $10.00 Per Share of:** | **At or for the Year Ended December 31, 2025**<br>**Based upon the Sale at $10.00 Per Share of:** |
|  | **5,848,000**<br>**Shares** | **6,880,000**<br>**Shares** | **7,912,000**<br>**Shares** | **9,098,800**<br>**Shares (1)** |
|  | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** |
|  Gross proceeds of offering | $58480 | $68800 | $79120 | $90988 |
|  Expenses | (3001) | (3129) | (3256) | (3403) |
| &nbsp;&nbsp;&nbsp;&nbsp; Estimated net proceeds | 55479 | 65671 | 75864 | 87585 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash contribution to charitable foundation | (600) | (600) | (600) | (600) |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock purchased by employee stock ownership plan | (4896) | (5760) | (6624) | (7618) |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock purchased by stock-based benefit plan | (2448) | (2880) | (3312) | (3809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net proceeds, as adjusted | $47535 | $56431 | $65328 | $75559 |
| **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
|  Net income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical | $5999 | $5999 | $5999 | $5999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income on net proceeds | 1398 | 1659 | 1921 | 2221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income on capitalization retained by mutual holding company | (15) | (15) | (15) | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee stock ownership plan adjustment (2) | (184) | (216) | (248) | (286) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock award adjustment (3) | (367) | (432) | (497) | (571) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock option plan adjustment (4) | (532) | (626) | (720) | (828) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net income (5) | $6299 | $6369 | $6440 | $6520 |
|  Per share net income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical | $0.46 | $0.39 | $0.34 | $0.29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income on net proceeds | 0.11 | 0.11 | 0.11 | 0.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income on capitalization retained by mutual holding company | (0.00) | (0.00) | (0.00) | (0.00) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee stock ownership plan adjustment (2) | (0.01) | (0.01) | (0.01) | (0.01) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock award adjustment (3) | (0.03) | (0.03) | (0.03) | (0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock option plan adjustment (4) | (0.04) | (0.04) | (0.04) | (0.04) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma net income per share (5) | $0.49 | $0.42 | $0.37 | $0.32 |
|  Stock price as a multiple of pro forma earnings per share | 20.41 | 23.81 | 27.03 | 31.25 |
|  Shares used for calculating pro forma earnings per share | 13134880 | 15452800 | 17770720 | 20436328 |
| **At December 31, 2025** | **At December 31, 2025** | **At December 31, 2025** | **At December 31, 2025** | **At December 31, 2025** |
|  Stockholders' equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical | $186846 | $186846 | $186846 | $186846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net proceeds | 55479 | 65671 | 75864 | 87585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalization retained by mutual holding company | (500) | (500) | (500) | (500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock contribution to charitable foundation | 2720 | 3200 | 3680 | 4232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense of stock contribution to charitable foundation | (2720) | (3200) | (3680) | (4232) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash contribution to charitable foundation | (600) | (600) | (600) | (600) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax benefit of contribution to charitable foundation | 830 | 950 | 1070 | 1208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock acquired by employee stock ownership plan (2) | (4896) | (5760) | (6624) | (7618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock acquired by stock-based benefit plan (3) | (2448) | (2880) | (3312) | (3809) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma stockholders' equity (6) | $234711 | $243727 | $252744 | $263113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | $(28186) | $(28186) | $(28186) | $(28186) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma tangible stockholders' equity (6) | $206525 | $215541 | $224558 | $234927 |
|  Stockholders' equity per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Historical | $13.74 | $11.68 | $10.15 | $8.83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net proceeds | 4.08 | 4.10 | 4.12 | 4.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalization retained by mutual holding company | (0.04) | (0.03) | (0.03) | (0.02) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock contribution to charitable foundation | 0.20 | 0.20 | 0.20 | 0.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense of stock contribution to charitable foundation | (0.20) | (0.20) | (0.20) | (0.20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash contribution to charitable foundation | (0.04) | (0.04) | (0.03) | (0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax benefit of contribution to charitable foundation | 0.06 | 0.06 | 0.06 | 0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock acquired by employee stock ownership plan (2) | (0.36) | (0.36) | (0.36) | (0.36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock acquired by stock-based benefit plan (3) | (0.18) | (0.18) | (0.18) | (0.18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma stockholders' equity per share (6) | $17.26 | $15.23 | $13.73 | $12.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets | $(2.07) | $(1.76) | $(1.53) | $(1.33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pro forma tangible stockholders' equity per share (6) | $15.19 | $13.47 | $12.20 | $11.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Offering price to pro forma stockholders' equity per share | 57.94 | 65.66 | 72.83 | 80.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Offering price to pro forma tangible stockholders' equity per share | 65.93 | 74.24 | 81.97 | 90.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares outstanding for pro forma equity value per share calculations | 13600000 | 16000000 | 18400000 | 21160000 |

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*(footnotes begin on following page)* 

------

*(footnotes from previous two pages)* 

(1) As adjusted to give effect to an increase in the number of shares, which increase could occur due to a 15%
increase in the offering range to reflect demand for the shares or changes in market conditions following the commencement of the offering.

(2) Assumes that 8% of the aggregate number of shares of common stock of Narragansett Bancorp, Inc. sold in the
offering and contributed to the charitable foundation will be purchased by the employee stock ownership plan financed by a loan from Narragansett Bancorp, Inc. BayCoast Bank intends to make annual contributions to the employee stock ownership plan
in an amount at least equal to the required principal and interest payments on the debt. BayCoast Bank's annual payments on the employee stock ownership plan debt are based upon 20 equal annual installments of principal and interest. FASB
Accounting Standards Codification ("ASC") 718-40, "Compensation—Stock Compensation—Employee Stock Ownership Plans" ("ASC 718-40") requires that an employer record compensation expense in an amount equal to the fair value of the shares committed to be released to employees. The pro forma adjustments assume that the employee
stock ownership plan shares are allocated in equal annual installments based on the number of loan repayment installments assumed to be paid, the fair value of the common stock remains equal to the offering price and the employee stock ownership
plan expense reflects an effective combined federal and state tax rate of 25.0%. The unallocated employee stock ownership plan shares are reflected as a reduction of stockholders' equity. No reinvestment is assumed on proceeds contributed to
fund the employee stock ownership plan. The pro forma net income further assumes that 6,120, 7,200, 8,280 and 9,522 shares were committed to be released during the three months ended March 31, 2026 at the minimum, midpoint, maximum, and
adjusted maximum of the offering range, respectively, 24,480, 28,800, 33,120 and 38,088 shares were committed to be released during the year ended December 31, 2025 at the minimum, midpoint, maximum, and adjusted maximum of the offering range,
respectively, and according to ASC 718-40, only the employee stock ownership plan shares committed to be released during the period were considered outstanding for purposes of net income per share
calculations.

(3) Assumes that shares of common stock are issued under a stock-based benefit plan in an amount equal to 4% of the
aggregate number of shares of common stock of Narragansett Bancorp, Inc. sold in the offering and contributed to the charitable foundation. Stockholder approval of the plan and issuances under the plan may not occur earlier than six months after the
completion of the offering. The shares may be issued from authorized but unissued shares or may be funded by stock repurchases. Shares issued under the stock-based benefit plan are assumed to vest over a period of five years. The table assumes that
(i) stock-based benefit plan share issuances are at $10.00 per share, (ii) 5% of the expense for the plan is amortized as an expense during the three months ended March 31, 2026, (iii) 20% of the expense for the plan is amortized as an
expense during the year ended December 31, 2025, and (iv) the plan's expense reflects an effective combined federal and state tax rate of 25.0%. The issuance of authorized but unissued shares of common stock to fund these awards
would dilute stockholders' ownership and voting interests by approximately 1.77%.

(4) Assumes that options are granted under a stock-based benefit plan to acquire an aggregate number of shares of
common stock equal to 10% of the aggregate number of shares of common stock of Narragansett Bancorp, Inc. sold in the offering and contributed to the charitable foundation. Stockholder approval of the plan may not occur earlier than six months after
the completion of the offering. In calculating the pro forma effect of the stock-based benefit plan, it is assumed that the exercise price of the stock options and the trading price of the common stock at the date of grant were $10.00 per share, the
estimated grant-date fair value determined using the Black-Scholes option pricing model was $4.64 for each option, the aggregate grant-date fair value of the stock options was amortized to expense on a straight-line basis over a five-year vesting
period of the options, and that 25% of the amortization expense (or the assumed portion relating to options granted to directors) resulted in a tax benefit using an assumed combined federal and state tax rate of 25.0%. The actual expense will be
determined by the grant-date fair value of the options, which will depend on a number of factors, including the valuation assumptions used and the option pricing model ultimately adopted. Under the above assumptions, the implementation of the
stock-based benefit plan will result in no additional shares under the treasury stock method for purposes of calculating earnings per share. There can be no assurance that the actual exercise price of the stock options will be equal to the $10.00
price per share. If a portion of the shares used to satisfy the exercise of options comes from authorized but unissued shares, our net income per share and stockholders' equity per share would decrease. The issuance of authorized but unissued
shares of common stock pursuant to the exercise of options under such plan would dilute stockholders' ownership and voting interests by approximately 4.31%.

(5) Net income per share computations are determined by taking the number of shares assumed to be outstanding
following the completion of the offering and, according to ASC 718-40, subtracting the employee stock ownership plan shares that have not been committed for release during the year. See footnote 2 above. The
number of outstanding shares may be more or less than the assumed amounts.

(6) The retained earnings of BayCoast Bank will be substantially restricted after the offering. See "Our
Policy Regarding Dividends," and "Supervision and Regulation—Federal Bank Regulations—Capital Requirements."

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**COMPARISON OF VALUATION AND PRO FORMA INFORMATION** 

**WITH AND WITHOUT THE CHARITABLE FOUNDATION** 

As reflected in the table below, if the charitable foundation is not established and funded in connection with the reorganization and offering, RP Financial estimates that our pro forma valuation would be greater and, as a result, a greater number of shares of common stock would be issued in the offering. At the minimum, midpoint, maximum and adjusted maximum of the valuation range, our pro forma valuation is $136.0 million, $160.0 million, $184.0 million and $211.6 million with the charitable foundation, as compared to $138.6 million, $163.0 million, $187.5 million and $215.6 million, respectively, without the charitable foundation. There is no assurance that in the event the charitable foundation were not formed, the appraisal prepared at that time would conclude that our pro forma market value would be the same as that estimated in the table below. Any appraisal prepared at that time would be based on the facts and circumstances existing at that time, including, among other things, market and economic conditions.

For comparative purposes only, set forth below are certain pricing ratios and financial data and ratios at and for the three months ended March 31, 2026 at the minimum, midpoint, maximum and adjusted maximum of the offering range, assuming the offering was completed at the beginning of the period, with and without the charitable foundation.

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| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** | **At and For the Three Months Ended March 31, 2026** |  |
|  | **Minimum of Offering Range** | **Minimum of Offering Range** | **Minimum of Offering Range** |  | **Midpoint of Offering Range** | **Midpoint of Offering Range** | **Midpoint of Offering Range** |  | **Maximum of Offering Range** | **Maximum of Offering Range** | **Maximum of Offering Range** |  | **Adjusted Maximum of<br>Offering Range** | **Adjusted Maximum of<br>Offering Range** | **Adjusted Maximum of<br>Offering Range** |  |
|  | **With<br>Foundation** |  | **Without<br>Foundation** |  | **With<br>Foundation** |  | **Without<br>Foundation** |  | **With<br>Foundation** |  | **Without<br>Foundation** |  | **With<br>Foundation** |  | **Without<br>Foundation** |  |
|  | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** | **(Dollars in thousands, except per share amounts)** |  |
|  Estimated stock offering amount | $58480 |  | $62348 |  | $68800 |  | $73350 |  | $79120 |  | $84353 |  | $90988 |  | $97005 |  |
|  Estimated full value | 136000 |  | 138550 |  | 160000 |  | 163000 |  | 184000 |  | 187450 |  | 211600 |  | 215568 |  |
|  Total assets | 2944720 |  | 2948169 |  | 2953736 |  | 2957714 |  | 2962753 |  | 2967261 |  | 2973122 |  | 2978236 |  |
|  Total liabilities | 2710211 |  | 2710211 |  | 2710211 |  | 2710211 |  | 2710211 |  | 2710211 |  | 2710211 |  | 2710211 |  |
|  Pro forma stockholders' equity | 234509 |  | 237958 |  | 243525 |  | 247503 |  | 252542 |  | 257050 |  | 262910 |  | 268026 |  |
|  Pro forma net income | 1323 |  | 1349 |  | 1341 |  | 1371 |  | 1358 |  | 1392 |  | 1378 |  | 1417 |  |
|  Pro forma stockholders' equity per share | 17.24 |  | 17.17 |  | 15.22 |  | 15.18 |  | 13.72 |  | 13.71 |  | 12.43 |  | 12.44 |  |
|  Pro forma net income per share | 0.11 |  | 0.10 |  | 0.09 |  | 0.09 |  | 0.08 |  | 0.08 |  | 0.07 |  | 0.07 |  |
|  **Pro forma pricing ratios:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Offering price as a percentage of pro forma stockholders' equity per share | 58.00 | % | 58.24 | % | 65.70 | % | 65.99 | % | 72.89 | % | 72.94 | % | 80.45 | % | 80.39 | % |
|  Offering price to pro forma net income per share (1) | 22.73 | x | 25.00 | x | 27.78 | x | 27.78 | x | 31.25 | x | 31.25 | x | 35.71 | x | 35.71 | x |
|  **Pro forma financial ratios:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Return on assets (1) | 0.18 | % | 0.18 | % | 0.18 | % | 0.19 | % | 0.18 | % | 0.19 | % | 0.19 | % | 0.19 | % |
|  Return on equity (1) | 2.26 |  | 2.27 |  | 2.20 |  | 2.22 |  | 2.15 |  | 2.17 |  | 2.10 |  | 2.11 |  |
|  Equity to assets | 7.96 |  | 8.07 |  | 8.24 |  | 8.37 |  | 8.52 |  | 8.66 |  | 8.84 |  | 9.00 |  |

---

(1) Annualized.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION** 

**AND RESULTS OF OPERATIONS** 

This discussion and analysis reflects our consolidated financial statements and other relevant statistical data, and is intended to enhance your understanding of our financial condition and results of operations. The information in this section has been derived from the consolidated financial statements, which appear beginning on page F-1 of this prospectus. You should read the information in this section in conjunction with the business and financial information regarding BayCoast Bank provided in this prospectus.

**Overview** 

Total assets increased $38.3 million, or 1.3%, to $2.90 billion at March 31, 2026, from $2.86 billion at December 31, 2025. The increase was due to an increase in cash and cash equivalents, which increased $40.6 million, or 105.5%, to $79.1 million at March 31, 2026 from $38.5 million at December 31, 2025. The increase in cash and cash equivalents was due to two residential real estate loan portfolio sales totaling $45.4 million during the quarter. Total assets decreased $75.8 million, or 2.6%, to $2.86 billion at December 31, 2025, from $2.93 billion at December 31, 2024. The decrease was primarily due to decreases in cash and cash equivalents and Federal Home Loan Bank stock. Cash and cash equivalents decreased $37.4 million, or 49.3%, to $38.5 million at December 31, 2025 compared to $76.0 million at December 31, 2024. The decrease in cash and cash equivalents was due to U.S. Treasury purchases as well as our prepaying Federal Home Loan Bank borrowings to reduce interest expense and improve our net interest margin.

We recorded net income of $1.2 million for the three months ended March 31, 2026 compared to net loss of $123,000 for the three months ended March 31, 2025. The increase in net income was due primarily to a decrease in interest expense, partially offset by an increase in operating expense and a decrease in interest and dividend income. Total interest expense decreased $3.4 million, or 19.3%, to $14.3 million for the three months ended March 31, 2026, compared to $17.7 million for the three months ended March 31, 2025. Interest expense on deposits decreased $1.6 million, or 12.3%, to $11.4 million for the three months ended March 31, 2026, from $13.0 million for the three months ended March 31, 2025. We recognized decreases in all categories of deposit interest expense. Our average cost of deposits decreased 40 basis points to 2.28% for the three months ended March 31, 2026, from 2.68% for the three months ended March 31, 2025. Net income for the year ended December 31, 2025 was $6.0 million, an increase of $690,000, or 13.0%, compared to net income of $5.3 million for the year ended December 31, 2024. The increase was due to increases in net interest income and other income and a decrease in income tax expense, partially offset by an increase in operating expenses. Net interest income increased $10.8 million, or 16.5%, to $76.1 million for the year ended December 31, 2025 compared to $65.4 million for the year ended December 31, 2024, as we experienced both an increase in interest and dividend income and a decrease in interest expense.

**Business Strategy** 

As one of the oldest community banks in New England and the United States, we believe that our reputation for providing personalized customer service is our strongest asset and our most effective strategy to continue to grow and be a profitable bank.

Subject to market conditions, we will continue our focus on growing our balance sheet and improving profitability by continuing to originate one- to four-family residential mortgage loans and increasing the origination of multi-family and commercial real estate loans. Additionally, we intend to supplement revenue growth through our non-interest income business lines, which are operated through direct and indirect subsidiaries of BayCoast Bank: mortgage lending (BayCoast Mortgage), wealth management services (Plimoth Investment Advisors), manufactured home financing (Priority Funding), and insurance (BayCoast Insurance).

These businesses help deepen customer relationships, broaden engagement, and support our long-term stability.

------

The proceeds from the stock offering will enable us to continue to implement our prudent growth strategy, and we plan to employ the following strategies to enhance profitability and deepen our relationships with our clients:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Operational Discipline and Scalability.** We will continue to diversify our commercial and industrial loan
portfolio by targeting new industries and expanding our reach across broader commercial client segments while improving operational productivity by deploying upgraded systems and automating core workflows. We believe that streamlining our processes
will reduce our cost-to-serve while maintaining asset quality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenue Diversification and Earnings Resilience.** We continue to focus on growing our fee-based businesses in order to generate consistent, non-cyclical earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Relationship Depth and Deposit Strength.** We want to serve as the central financial hub for our clients. By
delivering comprehensive, personalized solutions—ranging from advanced treasury management for commercial clients to tailored advisory services for retail clients—we deepen our relationship with existing clients and can capture a larger
share of wallet and transition single-product users into primary banking relationships. This approach directly improves our core deposit strength, generating the stable, low-cost funding necessary for our
lending initiatives, optimizes our capital structure, and strengthens long-term liquidity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Customer and Community Impact.** We are committed to delivering exceptional customer experiences alongside
robust financial inclusion initiatives. By expanding access to tailored banking solutions and launching targeted financial education programs, we empower underserved populations and local businesses to achieve their financial goals. This proactive
community engagement not only fosters long-term client loyalty, but also ensures that our institutional growth remains aligned with the economic well-being and prosperity of the communities we serve.

Our vision is to be the preferred financial partner and workplace in our market, deepening customer relationships to expand financial engagement, drive sustainable growth, and deliver exceptional value for our shareholders, customers, employees, and the communities we serve.

Reflecting our focus on our community, in connection with the offering, we intend to establish a charitable foundation called BayCoast Charitable Foundation, Inc., and to fund it with $600,000 in cash and a number of shares of our common stock equal to 2% of the shares that will be outstanding following the completion of the offering. The purpose of this foundation will be to make contributions to support various charitable organizations operating in our community now and in the future.

These strategies are intended to guide our investment of the net proceeds of the offering. We intend to continue to pursue our business strategy after the offering, subject to changes necessitated by future market conditions, regulatory restrictions and other factors.

**Anticipated Increase in Non-Interest Expense** 

Following the completion of the reorganization and offering, our non-interest expense is expected to increase, in part due to the increased compensation expense associated with the purchase of shares of common stock by our employee stock ownership plan and the possible implementation of a stock-based benefit plan, if approved by our stockholders, no earlier than six months after the completion of the reorganization and offering. For further information, see "Summary—Our Officers, Directors and Employees Will Receive Additional Benefits and Compensation After the Offering," "Risk Factors—Risks Related to the Offering—Our stock-based benefit plans will increase our expenses, which will reduce our net income" and "Management—Benefit Plans and Agreements."

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**Critical Accounting Policies** 

The discussion and analysis of the financial condition and results of operations are based on our financial statements, which are prepared in conformity with GAAP. The preparation of these financial statements requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of income and expenses. We consider the accounting policies discussed below to be critical accounting policies. The estimates and assumptions that we use are based on historical experience and various other factors and are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions, resulting in a change that could have a material impact on the carrying value of our assets and liabilities and our results of operations.

The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an "emerging growth company," we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our financial statements may not be comparable to companies that comply with such new or revised accounting standards.

The following represents our critical accounting policy.

***Allowance for Credit Losses.*** The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Such allowance is based on the credit losses expected to arise over the life of the asset (contractual term). The allowance for credit losses on loans is established through a provision for credit losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed.

The allowance for credit losses on loans is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

Management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. For example, an increase of 25 basis points as our adjustment to our lifetime loss rate for qualitative factors for all loan categories at March 31, 2026 would have increased our allowance for credit losses on loans at that date to $30.8 million from $29.7 million.

Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider all of the following: peer losses, changes in lending policy and procedures, changes in nature and volume of the loan portfolio and in the terms of loans, changes in experience, ability and depth of lending management and staff, changes in the quality of the loan review system, changes in the value of underlying collateral for collateral-dependent loans, existence and effect of any concentration of credit and changes in the level of such concentrations, effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio, and the current and forecasted direction of the economic and business environment. Such forecasted information includes: gross domestic product ("GDP") growth, unemployment rates, inflation, interest rates and house price indexes amongst others.

Although we believe that we use the best information available to establish the allowance for credit losses on loans, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluation. In addition, the Massachusetts Commissioner of Banks and the FDIC, as an integral part of their examination process, periodically review our allowance for credit losses on loans, and as a result of such reviews, we may have to adjust our allowance for credit losses on loans. A large loss could deplete the allowance and require increased provisions to replenish the allowance, which would adversely affect earnings.

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For more information on our critical accounting policies, see Note 1 of the notes to our consolidated financial statements.

**Comparison of Financial Condition at March 31, 2026 and December 31, 2025** 

***Total Assets***. Total assets increased $38.3 million, or 1.3%, to $2.90 billion at March 31, 2026, from $2.86 billion at December 31, 2025. The increase was due to an increase in cash and cash equivalents.

***Cash and Cash Equivalents***. Cash and cash equivalents increased $40.6 million, or 105.5%, to $79.1 million at March 31, 2026 from $38.5 million at December 31, 2025. The increase was due to two residential real estate loan portfolio sales totaling $45.4 million during the quarter.

***Gross Loans***. Loans increased $3.8 million and was $2.27 billion at each of March 31, 2026 and December 31, 2025. We experienced small increases in most loan categories, partially offset by a decrease of $18.9 million, or 3.9%, in residential mortgage loans, due to two residential real estate loan portfolio sales totaling $45.4 million during the quarter.

***Deposits***. Deposits increased $43.5 million, or 1.8%, to $2.47 billion at March 31, 2026 from $2.42 billion at December 31, 2025. We experienced an increase primarily in money market deposits ($56.6 million, or 7.0%). The increase in money market deposits was due to our onboarding larger municipalities as well as customers wanting more liquid deposit products. This was partially offset by a decrease in certificates of deposit, which decreased $32.4 million, or 6.2%, to $490.2 million at March 31, 2026 from $522.7 million at December 31, 2025, due to the competitive interest rate environment. All of our deposits are fully insured due to the additional insurance provided under the DIF.

***Borrowings***. Borrowings, which consisted solely of Federal Home Loan Bank of Boston advances, decreased to $95.5 million at March 31, 2026, compared to $98.1 million from December 31, 2025. The decrease was due to our improved liquidity position and less reliance on overnight borrowings.

***Total Retained Earnings***. Total retained earnings decreased $204,000 to $186.6 million at March 31, 2026 compared to $186.8 million at December 31, 2025. The decrease was due to a $1.5 million increase in accumulated other comprehensive loss to $4.0 million at March 31, 2026, partially offset by net income of $1.2 million for the three months ended March 31, 2026.

**Comparison of Financial Condition at December 31, 2025 and December 31, 2024** 

***Total Assets***. Total assets decreased $75.8 million, or 2.6%, to $2.86 billion at December 31, 2025, from $2.93 billion at December 31, 2024. The decrease was primarily due to decreases in cash and cash equivalents and Federal Home Loan Bank stock.

***Cash and Cash Equivalents***. Cash and cash equivalents decreased $37.4 million, or 49.3%, to $38.5 million at December 31, 2025 compared to $76.0 million at December 31, 2024. The decrease was due to U.S. Treasury purchases as well as our prepaying Federal Home Loan Bank borrowings to reduce interest expense and improve our net interest margin.

***Securities Available for Sale***. Securities available for sale, reported at fair value, increased $54.9 million, or 19.1%, to $342.3 million at December 31, 2025 from $287.4 million at December 31, 2024. The increase was due primarily to our using excess cash provided by loan repayments and increased borrowings to invest in investment securities.

***Gross Loans***. Loans decreased $94.3 million, or 4.0%, to $2.27 billion at December 31, 2025 compared to $2.36 billion at December 31, 2024. The decrease was primarily due to a decrease in one- to four-family residential real estate loans of $111.3 million, or 18.7%, as we sold $589.3 million of this type of loan during 2025 to agencies and private investors. Of such sales, $191.3 million was sold to private investors and the remaining sales were traditional mortgage banking operations.

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***Deposits***. Deposits increased $97.4 million, or 4.2%, to $2.42 billion at December 31, 2025 from $2.33 billion at December 31, 2024. We experienced increases primarily in money market deposits ($107.7 million, or 15.3%) and NOW accounts ($21.7 million, or 5.7%). The increase in money market deposits was due to our onboarding larger municipalities as well as customers wanting more liquid deposit products. These increases were partially offset by a decrease in certificates of deposit, which decreased $33.5 million, or 6.0%, to $522.7 million at December 31, 2025 from $556.2 million at December 31, 2024, due to the competitive interest rate environment and customers transferring their funds to money market deposits. All of our deposits are fully insured due to the additional insurance provided under the DIF.

***Borrowings***. Borrowings, which consisted solely of Federal Home Loan Bank of Boston advances, decreased $172.5 million, or 63.8%, to $98.1 million at December 31, 2025, compared to $270.6 million at December 31, 2024. The decrease was due to our prepaying $120.0 million in Federal Home Loan Bank advances to use excess liquidity to reduce interest expense and improve our net interest margin.

***Subordinated Debt****.* Subordinated debt, net of issuance costs, decreased $14.6 million, or 13.4%, to $94.6 million at December 31, 2025 compared to $109.2 million, net of issuance costs, at December 31, 2024, due to our redeeming $15.0 million of our 2017 Debt during the fourth quarter of 2025, partially offset by the amortization of subordinate debt issuance costs.

***Total Retained Earnings***. Total retained earnings increased $16.2 million, or 9.5%, to $186.8 million at December 31, 2025 compared to $170.6 million at December 31, 2024. The increase was due to a $10.2 million decrease in accumulated other comprehensive loss to $2.5 million at December 31, 2025, combined with net income of $6.0 million for the year ended December 31, 2025. The change in accumulated other comprehensive loss was due to $6.2 million of other comprehensive income in unrealized holding gains on securities available for sale, net of tax, and $4.0 million of other comprehensive income on defined benefit pension plan gains, net of tax.

**Comparison of Operating Results for the Three Months Ended March 31, 2026 and 2025** 

***General****.* We recorded net income of $1.2 million for the three months ended March 31, 2026 compared to net loss of $123,000 for the three months ended March 31, 2025. The increase in net income was due to a decrease in interest expense and an increase in other income, partially offset by a decrease in interest and dividend income and an increase in income tax expense.

***Interest and Dividend Income****.* Interest and dividend income decreased $771,000, or 2.2%, to $34.4 million for the three months ended March 31, 2026, from $35.2 million for the three months ended March 31, 2025. Interest and fees on loans, which is our primary source of interest income, decreased 984,000, or 3.0%, to $31.5 million for the three months ended March 31, 2026, from $32.5 million for the three months ended March 31, 2025.

The average balance of loans decreased by $56.2 million, or 2.4%, to $2.31 billion for the three months ended March 31, 2026, compared to $2.37 billion for the three months ended March 31, 2025. In addition, the average yield on loans decreased by four basis points to 5.45% for the three months ended March 31, 2026, from 5.49% for the three months ended March 31, 2025. The decrease in average balance of loans was primarily due to private investor residential loan sales.

***Interest Expense****.* Total interest expense decreased $3.4 million, or 19.3%, to $14.3 million for the three months ended March 31, 2026, compared to $17.7 million for the three months ended March 31, 2025. Interest expense on deposits decreased $1.6 million, or 12.3%, to $11.4 million for the three months ended March 31, 2026, from $13.0 million for the three months ended March 31, 2025. We recognized decreases in all categories of deposit interest expense. Our average cost of deposits decreased 40 basis points to 2.28% for the three months ended March 31, 2026, from 2.68% for the three months ended March 31, 2025. The decrease in the average cost of deposits was due to a decrease in money market and term certificate rates and a change in our mix of deposits, reflecting a decrease in certificate of deposit accounts and an increase in money market deposits.

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Interest expense on Federal Home Loan Bank advances decreased $1.5 million, or 53.6%, to $1.3 million for the three months ended March 31, 2026, from $2.8 million for the three months ended March 31, 2025. The decrease was primarily due to a decrease in the average balance of Federal Home Loan Bank advances ($137.3 million, or 53.0%) for the three months ended March 31, 2026. The decrease in average balance was due to our prepaying $120.0 million of Federal Home Loan Bank advances during the third quarter of 2025.

Interest on subordinated debt was $1.6 million and $1.9 million for the three months ended March 31, 2026 and 2025, respectively, due to our redeeming $15.0 million of our 2017 Debt during the fourth quarter of 2025.

***Net Interest Income***. Net interest income increased $2.6 million, or 15.1%, to $20.2 million for the three months ended March 31, 2026, compared to $17.5 million for the three months ended March 31, 2025, as our interest expense decreased faster than our interest income. Our interest rate spread increased 47 basis points to 2.59% for the three months ended March 31, 2026 from 2.12% for the three months ended March 31, 2025, while our net interest margin increased 45 basis points to 3.01% for the three months ended March 31, 2026 from 2.56% for the three months ended March 31, 2025.

***Provision for Credit Losses****.* Based on an analysis of the factors described in "—Critical Accounting Policies—Allowance for Credit Losses," we recorded provisions for credit losses on loans of $1.7 million and $1.9 million for the three months ended March 31, 2026 and 2025, respectively. There was no provision recorded for off balance sheet credit exposures for the three months ended March 31, 2026 compared to a provision of $60,000 for the three months ended March 31, 2025. The allowance for credit losses on loans was $29.7 million at March 31, 2026 and $28.0 million at March 31, 2025 and represented 1.31% and 1.20% of total loans at March 31, 2026 and 2025, respectively. The allowance for credit losses for off balance sheet commitments was $782,000 at March 31, 2026 and $387,000 at March 31, 2025.

Total non-accrual loans were $44.9 million at March 31, 2026, compared to $6.0 million at March 31, 2025. The increase reflected four commercial real estate loans and one commercial loan, with total balances of $36.5 million, being placed on non-accrual status. Total loans past due 30 days or greater were $14.8 million at March 31, 2026 compared to $10.1 million at March 31, 2025. As a percentage of nonperforming loans, the allowance for credit losses on loans was 66.15% at March 31, 2026 compared to 467.65% at March 31, 2025.

Our estimates and assumptions used in the determination of the adequacy of the allowance could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions. Any such increase in future provisions that may be required may adversely impact our financial condition and results of operations.

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***Other Income****.* Other income information is as follows.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br>**March 31,** | **Three Months Ended**<br>**March 31,** | **Change** | **Change** |
|  | **2026** | **2025** | **Amount** | **Percent** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Customer service fees | $2738 | $2504 | $234 | 9.3% |
|  Net loan servicing fees | (952) | 127 | (1079) | (849.6)% |
|  Trust department fees | 1635 | 1487 | 148 | 10.0% |
|  Insurance and brokerage commissions | 4070 | 4035 | 35 | 0.9% |
|  Gain on securities available for sale, net | 203 |  | 203 | NM |
|  Gain (loss) on marketable equity securities | 59 | (15) | 74 | 493.3% |
|  Loss on sales of portfolio loans | (453) | (527) | 74 | 14.0% |
|  Mortgage banking income | 4718 | 3411 | 1307 | 38.3% |
|  Bank owned life insurance | (120) | 37 | (157) | (424.3)% |
|  Miscellaneous | 405 | 208 | 197 | 94.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income | $12303 | $11267 | $1036 | 9.2% |

---

The increase in mortgage banking income was due to an increase in residential mortgage sales volume due to a more favorable interest rate environment, as we sold $178.6 million of residential mortgage loans during the three months ended March 31, 2026 compared to $99.8 million of such sales during the three months ended March 31, 2025. The decrease in net loan servicing fees was due to an increase in loan prepayment speeds resulting in accelerated mortgage servicing asset amortization as well as an increase in the mortgage servicing asset valuation reserve.

***Operating Expense.*** Operating expense information is as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br>**March 31,** | **Three Months Ended**<br>**March 31,** | **Change** | **Change** |
|  | **2026** | **2025** | **Amount** | **Percent** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Salaries and employee benefits | $19065 | $17214 | $1851 | 10.8% |
|  Occupancy and equipment, net | 4117 | 3693 | 424 | 11.5% |
|  Professional fees | 829 | 771 | 58 | 7.5% |
|  Data processing | 1187 | 1184 | 3 | 0.3% |
|  Advertising | 607 | 638 | (31) | (4.9)% |
|  Deposit insurance | 698 | 727 | (29) | (4.0)% |
|  Amortization of intangible assets | 162 | 248 | (86) | (34.7)% |
|  Other | 2590 | 2659 | (69) | (2.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expense | $29255 | $27134 | $2121 | 7.8% |

---

The increase in salaries and employee benefits expense was due to cost-of-living adjustments and incentive compensation tied to higher loan volume. The increase in occupancy and equipment expense was due to higher snow removal costs.

***Income Taxes.*** Income taxes increased by $371,000 to expense of $266,000 for the three months ended March 31, 2026, compared to a benefit of $105,000 for the three months ended March 31, 2025. The increase in the income tax provision was due to higher operating income and a decrease in tax exempt income. The effective tax rates were 17.6% and 46.1% for the three months ended March 31, 2026 and 2025, respectively. Our effective tax rate for the 2026 period was below the statutory rate due to tax exempt income.

**Comparison of Operating Results for the Years Ended December 31, 2025 and 2024** 

***General****.* Net income for the year ended December 31, 2025 was $6.0 million, an increase of $690,000, or 13.0%, compared to net income of $5.3 million for the year ended December 31, 2024. The increase was due to increases in other income and dividend and interest income and decreases in interest expense and income tax expense, partially offset by an increase in operating expenses.

------

***Interest and Dividend Income****.* Interest and dividend income increased $1.6 million, or 1.9%, to $143.3 million for the year ended December 31, 2025 from $141.8 million for the year ended December 31, 2024. The increase was due to an increase in income on debt securities of $2.9 million, or 43.8%, to $9.5 million for the year ended December 31, 2025 compared to $6.6 million for the year ended December 31, 2024. Interest and fees on loans, which is our primary source of interest income, decreased $936,000, or 0.7%, to $131.3 million for the year ended December 31, 2025 from $132.2 million for the year ended December 31, 2024.

The average yield on debt securities increased 54 basis points to 2.93% for the year ended December 31, 2025 compared to 2.39% for the year ended December 31, 2024, reflecting changes in market interest rates. In addition, the average balance of debt securities increased by $47.9 million, or 17.4%, to $322.8 million for the year ended December 31, 2025 compared to $274.9 million for the year ended December 31, 2024, due to our increasing our U.S. Treasury portfolio.

The average yield on loans increased by 14 basis points to 5.62% for the year ended December 31, 2025 from 5.48% for the year ended December 31, 2024, reflecting increases in market interest rates. The increase in average yield was partially offset by a decrease in the average balance of loans of $73.5 million, or 3.1%, to $2.34 billion for the year ended December 31, 2025 compared to $2.41 billion for the year ended December 31, 2024. The decrease in average balance of loans was primarily due to private investor residential loan sales.

***Interest Expense****.* Total interest expense decreased $9.2 million, or 12.1%, to $67.2 million for the year ended December 31, 2025, compared to $76.4 million for the year ended December 31, 2024, reflecting decreases in all categories of interest expense.

Interest expense on deposits decreased $6.1 million, or 10.6%, to $51.3 million for the year ended December 31, 2025, from $57.4 million for the year ended December 31, 2024. The decrease in interest expense deposits was due to a decrease in money market and term certificate rates and a change in our mix of deposits, reflecting a decrease in certificate of deposit accounts and an increase in money market deposits. However, our average cost of interest-bearing deposits increased 12 basis points to 2.58% for the year ended December 31, 2025 from 2.46% for the year ended December 31, 2024.

Interest expense on Federal Home Loan Bank advances decreased $2.8 million, or 25.4%, to $8.3 million for the year ended December 31, 2025 from $11.2 million for the year ended December 31, 2024. The decrease was primarily due to a decrease in our average balance of Federal Home Loan Bank advances of $65.5 million, or 25.5%, to $191.2 million for the year ended December 31, 2025 compared to $256.7 million for the year ended December 31, 2024, due to our prepaying $120.0 million of Federal Home Loan Bank advances during the third quarter of 2025.

Interest on subordinated debt was $7.6 million and $7.9 million for the years ended December 31, 2025 and 2024, respectively.

***Net Interest Income***. Net interest income increased $10.8 million, or 16.5%, to $76.1 million for the year ended December 31, 2025 compared to $65.4 million for the year ended December 31, 2024, as we experienced both an increase in interest and dividend income and a decrease in interest expense. Our interest rate spread increased to 2.37% for the year ended December 31, 2025 from 1.94% for the year ended December 31, 2024, while our net interest margin increased to 2.80% for the year ended December 31, 2025 from 2.38% for the year ended December 31, 2024.

***Provision for Credit Losses****.* Based on an analysis of the factors described in "—Critical Accounting Policies—Allowance for Credit Losses," we recorded provisions for credit losses on loans of $7.4 million and $7.5 million for the years ended December 31, 2025 and 2024, respectively. A provision of $335,000 was recorded for off balance sheet credit exposures for the year ended December 31, 2025 compared to a credit of $130,000 for the year ended December 31, 2024. The allowance for credit losses on loans was $29.1 million at December 31, 2025 and $26.2 million at December 31, 2024, and represented 1.28% and 1.11% of total loans at December 31, 2025 and 2024, respectively. The allowance for credit losses for off balance sheet credit exposures was $782,000 and $447,000 at December 31, 2025 and 2024, respectively. The increase in the allowance for credit losses on loans during the year ended December 31, 2025, was primarily due to increases in delinquent and watch list loans during the year.

------

Total non-accrual loans were $37.4 million at December 31, 2025, compared to $5.4 million at December 31, 2024. Non-accrual commercial real estate and multi-family loans increased to $30.7 million at December 31, 2025 compared to $332,000 at December 31, 2024. The increase reflected three commercial real estate loans, with total balances of $29.4 million, being placed on non-accrual status. Total loans past due 30 days or greater were $14.8 million and $11.0 million at December 31, 2025 and 2024, respectively. As a percentage of nonperforming loans, the allowance for credit losses on loans was 77.69% at December 31, 2025, compared to 481.69% at December 31, 2024.

Our estimates and assumptions used in the determination of the adequacy of the allowance could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions. Any such increase in future provisions that may be required may adversely impact our financial condition and results of operations.

***Other Income****.* Other income information is as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended**<br>**December 31,** | **Years Ended**<br>**December 31,** | **Change** | **Change** |
|  | **2025** | **2024** | **Amount** | **Percent** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Customer service fees | $10613 | $10218 | $395 | 3.9% |
|  Net loan servicing fees | (2231) | (774) | (1457) | (188.2)% |
|  Trust department fees | 6156 | 5761 | 395 | 6.9% |
|  Insurance and brokerage commissions | 14468 | 12526 | 1942 | 15.5% |
| (Loss) gain on securities available for sale, net | (46) | 195 | (241) | (123.6)% |
|  Gain on marketable equity securities | 149 | 385 | (236) | (61.3)% |
|  Loss on sales of portfolio loans | (2052) | (430) | (1622) | 377.2% |
|  Mortgage banking income | 18540 | 17046 | 1494 | 8.8% |
|  Bank owned life insurance | 2122 | 1661 | 461 | 27.8% |
|  Miscellaneous | 2583 | 947 | 1636 | 172.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income | $50302 | $47535 | $2767 | 5.8% |

---

The increase in insurance and brokerage commissions was due to an increase in sales volume, new business, and policy retention. The increase in mortgage banking income was due to an increase in sales volume due to a more favorable interest rate environment, as we sold $589.3 million loans during the year ended December 31, 2025 compared to $433.4 million of such sales during the year ended December 31, 2024. The increase in loss on sales of portfolio loans was due to private investor sales of $191.3 million of residential real estate mortgage loans during the year ended December 31, 2025 that were sold at a loss as part of our strategy to reorganize our balance sheet. We sold $29.1 million of such loans during the year ended December 31, 2024. The decrease in net loan servicing fees was due to an increase in loan prepayment speeds resulting in accelerated mortgage servicing asset amortization as well as an increase in the mortgage servicing asset valuation reserve.

------

***Operating Expense.*** Operating expense information is as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended**<br>**December 31,** | **Years Ended**<br>**December 31,** | **Change** | **Change** |
|  | **2025** | **2024** | **Amount** | **Percent** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Salaries and employee benefits | $77022 | $64573 | $12449 | 19.3% |
|  Occupancy and equipment, net | 14347 | 14142 | 205 | 1.5% |
|  Professional fees | 2699 | 3319 | (620) | (18.7)% |
|  Data processing | 4605 | 4418 | 187 | 4.2% |
|  Advertising | 2127 | 1931 | 196 | 10.2% |
|  Deposit insurance | 2721 | 2534 | 187 | 7.4% |
|  Amortization of intangible assets | 1021 | 889 | 132 | 14.9% |
|  Other | 9356 | 7110 | 2246 | 31.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expense | $113898 | $98916 | $14982 | 15.2% |

---

The increase in salaries and employee benefits expense was due to an employee retention tax credit that offset payroll tax expense in 2024. Additionally, incentive compensation increased in 2025 due to an increase in loan volume. The increase in other expenses was due to prepayment penalties incurred with respect to Federal Home Loan Bank advance prepayments.

***Income Taxes.*** Income taxes decreased by $2.0 million to a benefit of $831,000 for the year ended December 31, 2025, compared to a provision of $1.1 million the year ended December 31, 2024. The decrease in the income tax provision was due primarily to tax credits of $2.1 million, net of partnership basis adjustment, for the year ended December 31, 2025 related to a low-income affordable housing project. The tax credits were from Federal Historical Rehabilitation Tax Credit investments. The effective tax rates were (16.1)% and 17.8% for the years ended December 31, 2025 and 2024, respectively. Our effective tax rate for the year ended December 31, 2024 was below the statutory rate due to tax exempt income related to the tax credits.

------

**Average Balance Sheets** 

The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. All average balances are daily average balances, and the average balance of loans includes non-accrual loans. The yields set forth below include the effect of deferred fees/costs, discounts, and premiums that are amortized or accreted to interest income. Deferred loan fees for the three months ended March 31, 2026 and 2025 and the years ended December 31, 2025 and 2024 were $3.9 million, $3.6 million, $4.0 million and $3.5 million.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** |
|  | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** |
|  | **Average<br>Outstanding<br>Balance** | **Interest** | **Average<br>Yield/Rate (1)** | **Average<br>Outstanding<br>Balance** | **Interest** | **Average<br>Yield/Rate (1)** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  **Interest-earning assets:** |  |  |  |  |  |  |
|  Loans | $2310011 | $31483 | 5.45% | $2366246 | $32467 | 5.49% |
|  Debt securities | 346502 | 2783 | 3.21% | 302056 | 2048 | 2.71% |
|  Equity securities and mutual funds | 7899 | 114 | 5.79% | 13549 | 260 | 7.67% |
|  Cash equivalents | 18859 | 41 | 0.87% | 54484 | 417 | 3.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-earning assets | 2683271 | 34421 | 5.13% | 2736335 | 35192 | 5.14% |
|  Noninterest-earning assets | 202839 |  |  | 204609 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $2886110 |  |  | $2940944 |  |  |
|  **Interest-bearing liabilities:** |  |  |  |  |  |  |
|  NOW accounts | $394247 | 1186 | 1.22% | $389283 | 1309 | 1.36% |
|  Savings accounts | 288456 | 144 | 0.20% | 294988 | 157 | 0.22% |
|  Money market accounts | 837356 | 5988 | 2.90% | 732841 | 6294 | 3.48% |
|  Certificates of deposit | 509878 | 4082 | 3.25% | 549206 | 5246 | 3.87% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing deposits | 2029937 | 11401 | 2.28% | 1966318 | 13006 | 2.68% |
|  Borrowings: |  |  |  |  |  |  |
|  Other Borrowings | 121797 | 1277 | 4.19% | 259096 | 2753 | 4.25% |
|  Subordinated debt | 94611 | 1577 | 6.67% | 109226 | 1905 | 6.97% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing liabilities | 2246345 | 14256 | 2.54% | 2334640 | 17664 | 3.03% |
|  Noninterest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits | 405741 |  |  | 389999 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 46177 |  |  | 44749 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 2698263 |  |  | 2769388 |  |  |
|  Retained earnings | 187847 |  |  | 171555 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and retained earnings | $2886110 |  |  | $2940943 |  |  |
|  Net interest income |  | $20166 |  |  | $17529 |  |
|  Net interest rate spread (2) |  |  | 2.59% |  |  | 2.12% |
|  Net interest-earning assets (3) | $436926 |  |  | $401695 |  |  |
|  Net interest margin (4) |  |  | 3.01% |  |  | 2.56% |
|  Average interest-earning assets to interest-bearing liabilities |  |  | 119.45% |  |  | 117.21% |

---

(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.

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Average<br>Outstanding<br>Balance** | **Interest** | **Average<br>Yield/Rate** | **Average<br>Outstanding<br>Balance** | **Interest** | **Average<br>Yield/Rate** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  **Interest-earning assets:** |  |  |  |  |  |  |
|  Loans | $2338433 | $131315 | 5.62% | $2411917 | $132250 | 5.48% |
|  Debt securities | 322804 | 9464 | 2.93% | 274927 | 6580 | 2.39% |
|  Equity securities and mutual funds | 10817 | 885 | 8.18% | 13634 | 1024 | 7.51% |
|  Cash equivalents | 49809 | 1647 | 3.26% | 50129 | 1905 | 3.74% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-earning assets | 2721863 | 143311 | 5.27% | 2750607 | 141759 | 5.15% |
|  Noninterest-earning assets | 200220 |  |  | 179229 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $2922083 |  |  | $2929936 |  |  |
|  **Interest-bearing liabilities:** |  |  |  |  |  |  |
|  NOW accounts | $384745 | 5224 | 1.36% | $380465 | 4980 | 1.31% |
|  Savings accounts | 292109 | 626 | 0.21% | 301763 | 632 | 0.21% |
|  Money market accounts | 772148 | 25648 | 3.32% | 648475 | 24012 | 3.70% |
|  Certificates of deposit | 539399 | 19788 | 3.67% | 639720 | 27750 | 4.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing deposits | 1988402 | 51285 | 2.58% | 1970423 | 57374 | 2.91% |
|  Borrowings | 191235 | 8322 | 4.29% | 256713 | 11155 | 4.27% |
|  Subordinated debt | 108673 | 7579 | 6.88% | 108987 | 7870 | 7.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing liabilities | 2288309 | 67186 | 2.90% | 2336123 | 76400 | 3.22% |
|  Noninterest-bearing liabilities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits | 410579 |  |  | 398769 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 46796 |  |  | 31958 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 2745684 |  |  | 2766849 |  |  |
|  Retained earnings | 176399 |  |  | 162987 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and retained earnings | $2922083 |  |  | $2929836 |  |  |
|  Net interest income |  | $76125 |  |  | $65359 |  |
|  Net interest rate spread (1) |  |  | 2.37% |  |  | 1.94% |
|  Net interest-earning assets (2) | $433554 |  |  | $414484 |  |  |
|  Net interest margin (3) |  |  | 2.80% |  |  | 2.38% |
|  Average interest-earning assets to interest-bearing liabilities | 118.95% |  |  | 117.74% |  |  |

---

(1) 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.

(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average total interest-earning assets.

------

**Rate/Volume Analysis** 

The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the table below.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br>**March 31, 2026 vs. 2025** | **Three Months Ended**<br>**March 31, 2026 vs. 2025** | **Three Months Ended**<br>**March 31, 2026 vs. 2025** | **Years Ended**<br>**December 31, 2025 vs. 2024** | **Years Ended**<br>**December 31, 2025 vs. 2024** | **Years Ended**<br>**December 31, 2025 vs. 2024** |
|  | **Increase (Decrease) Due to** | **Increase (Decrease) Due to** | **Total**<br>**Increase<br>(Decrease)** | **Increase (Decrease) Due to** | **Increase (Decrease) Due to** | **Total<br>Increase<br>(Decrease)** |
|  | **Volume** | **Rate** | **Total**<br>**Increase<br>(Decrease)** | **Volume** | **Rate** | **Total<br>Increase<br>(Decrease)** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  **Interest-earning assets:** | | | |  |  |  |
|  Loans | $(768) | $(217) | $(984) | $(4084) | $3148 | $(935) |
|  Debt securities | 326 | 409 | 735 | 1258 | 1626 | 2884 |
|  Equity securities and mutual funds | (92) | (54) | (145) | (225) | 85 | (140) |
|  Cash equivalents | (179) | (197) | (376) | (12) | (245) | (258) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-earning assets | (712) | (58) | (771) | (3062) | 4614 | 1552 |
|  **Interest-bearing liabilities:** |  |  |  |  |  |  |
|  NOW accounts | 17 | (140) | (123) | 57 | 187 | 243 |
|  Savings accounts | (3) | (9) | (13) | (20) | 14 | (7) |
|  Money market accounts | 842 | (1148) | (306) | 4273 | (2637) | 1636 |
|  Certificates of deposit | (356) | (807) | (1164) | (4013) | (3949) | (7962) |
|  Borrowings | (1440) | (35) | (1476) | (2878) | 45 | (2833) |
|  Subordinated debt | (246) | (81) | (327) | (24) | (267) | (291) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing liabilities | (1188) | (2220) | (3408) | (2606) | (6608) | (9214) |
|  Change in net interest income | $475 | $2162 | $2637 | $(456) | $11222 | $10766 |

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**Management of Market Risk** 

***General***. The majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage the impact of changes in market interest rates on net interest income and capital. We have an Asset/Liability Committee that is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate, given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the board of directors. The Committee establishes and monitors the volume, maturities, pricing and mix of assets and funding sources with the objective of managing assets and funding sources to provide results that are consistent with liquidity, growth, risk limits and profitability goals. We generally seek to pursue interest rate risk mitigation strategies that result in the least amount of reported earnings volatility under generally accepted accounting principles while still meeting strategic objectives.

As part of our ongoing asset-liability management, we use the following strategies to manage our interest rate risk:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• growing our non-interest-bearing demand, money market, savings and demand
accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining loan and deposit pricing discipline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fixing interest income on loans and other floating-rate assets;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• growing our sources of non-interest income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investing in short- to medium-term repricing and/or maturing investment securities whenever the market allows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining capital levels that exceed those required for well-capitalized status under federal banking
regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining prudent levels of liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• using derivative instruments such as mortgage banking derivatives and, to a lesser extent, loan level hedging and
interest rate swaps;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• managing our utilization of wholesale funding with borrowings and brokered deposits; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continuing to diversify our loan portfolio.

***Net Interest Income.*** We primarily analyze our sensitivity to changes in interest rates through a net interest income model. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings. We estimate what our net interest income would be for 12-month and 24-month periods. We then calculate what the net interest income would be for the same periods under the assumptions that the U.S. Treasury yield curve increases or decreases instantaneously by 200 basis points, with changes in interest rates representing immediate and permanent, parallel shifts in the yield curve. A basis point equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in interest rates from 2% to 3% would mean, for example, a 100 basis point increase in the "Change in Interest Rates" column below.

The tables below set forth, as of April 30, 2026 and January 31, 2026 the calculation of the estimated changes in our net interest income that would result from the designated instantaneous changes in the U.S. Treasury yield curve.

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| | | | | |
|:---|:---|:---|:---|:---|
| **At April 30, 2026** | **At April 30, 2026** | **At April 30, 2026** | **At April 30, 2026** | **At April 30, 2026** |
| **Change in Interest**<br> **Rates (Basis Points) (1)** | **Net Interest Income**<br>**Year 1 Forecast** | **Year 1 Change**<br>**From Level** | **Net Interest Income**<br>**Year 2 Forecast** | **Year 2 Change**<br>**From Level** |
|  | **(Dollars in thousands)** | | | |
|  +200 | $92775 | (3.2)% | $105800 | 10.3% |
|  Level | 95883 |  | 101954 | 6.3% |
| -200 | 96813 | 1.0% | 95070 | (0.8)% |

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(1) Assumes an instantaneous uniform change in interest rates at all maturities.

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| | | | | |
|:---|:---|:---|:---|:---|
| **At January 31, 2026** | **At January 31, 2026** | **At January 31, 2026** | **At January 31, 2026** | **At January 31, 2026** |
| **Change in Interest**<br> **Rates (Basis Points) (1)** | **Net Interest Income**<br>**Year 1 Forecast** | **Year 1 Change**<br>**From Level** | **Net Interest Income**<br>**Year 2 Forecast** | **Year 2 Change**<br>**From Level** |
|  | **(Dollars in thousands)** | | | |
|  +200 | $88159 | (3.9)% | $94066 | 2.6% |
|  Level | 91711 |  | 96827 | 5.6% |
| -200 | 94454 | 3.0% | 98034 | 6.9% |

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(1) Assumes an instantaneous uniform change in interest rates at all maturities.

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The tables above indicate that at April 30, 2026, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 3.2% year-one decrease in net interest income, and in the event of an instantaneous parallel 200 basis point decrease in interest rates, we would have experienced a 1.0% year-one increase in net interest income and at January 31, 2026, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 3.9% year-one decrease in net interest income, and in the event of an instantaneous parallel 200 basis point decrease in interest rates, we would have experienced a 3.0% year-one increase in net interest income. At January 31, 2025, in the event of an instantaneous parallel 200 basis point increase in interest rates, we would have experienced a 2.4% year-one decrease in net interest income, and in the event of an instantaneous parallel 200 basis point decrease in interest rates, we would have experienced a 1.3% year-one increase in net interest income.

At April 30, 2026, all estimated changes described above with respect to net interest income with respect to potential changes in market interest rates were in compliance with the current policy limits established by management and approved by the board of directors.

Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements. Modeling changes require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the changes in net interest income tables presented assume that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the tables provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates, and actual results may differ. Furthermore, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates. Additionally, certain assets, such as adjustable-rate loans, have features that restrict changes in interest rates both on a short-term basis and over the life of the asset. In the event of changes in interest rates, prepayment and early withdrawal levels would likely deviate significantly from those assumed in calculating the tables.

Interest rate risk calculations also may not reflect the fair values of financial instruments. For example, decreases in market interest rates can increase the fair values of our loans, deposits and borrowings.

**Liquidity and Capital Resources** 

Liquidity is our ability to meet current and future financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities and proceeds from maturities and calls of securities. We also have the ability to borrow from the Federal Home Loan Bank of Boston. At March 31, 2026, we had $95.5 million outstanding in advances from the Federal Home Loan Bank of Boston. At March 31, 2026, we had the ability to borrow $498.2 million in additional Federal Home Loan Bank of Boston advances. At March 31, 2026, we also had a $7.0 million line of credit with the Federal Home Loan Bank of Boston, none of which was drawn at that date. Additionally, at March 31, 2026, we had a $162.7 million secured line of credit through the Federal Reserve Borrower in Custody program. We also have available unsecured lines of credit with correspondent banks at interest rates that adjust daily, with borrowing capacity of $25.0 million at March 31, 2026. In addition, we have an agreement with AFX that provides us access to unsecured overnight borrowings with various counterparties. At March 31, 2026, we had a credit limit of $400.0 million. At March 31, 2026, no advances were outstanding under these lines of credit of the agreement with AFX. Lastly, as of March 31, 2026, we can access $288.5 million in funding through Intrafi One-Way-Buy, which enables banks to purchase wholesale funding at fixed or floating rates without collateralization requirements.

While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. Our most liquid assets are cash and cash equivalents. The levels of these assets depend on our operating, financing, lending, and investing activities during any given period.

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We monitor and review liquidity on a daily basis. We monitor deposit flows and cash management activities using cash management reporting. Additionally, we also review and analyze 30-, 60-, and 90-day cash flow projections on a periodic basis. On a weekly basis our Asset/Liability Committee's Deposit Pricing Subcommittee reviews deposit cash flows and customer activity and trends. We stress test our liquidity position quarterly. This includes testing the documented sources of liquidity. Liquidity contingency planning is also monitored and presented to the Asset/Liability Committee on a quarterly basis.

We test all outstanding lines of credit from other financial institutions annually to ensure they are readily available if needed. The results of the testing are presented to the Asset/Liability Committee annually.

We target a Tier 1 basic surplus (calculated as (A) liquid assets (generally overnight funds, short-term investments and unpledged securities) minus (B) a percentage of short-term/potentially volatile liabilities (generally maturing short-term liabilities and a percentage of certificates of deposit and other deposits) divided by (C) total assets), of 5%. As of March 31, 2026, our Tier 1 basic surplus was 5.3%.

Our cash flows are comprised of three primary classifications: cash flows from operating activities, investing activities, and financing activities. Net cash provided by (used in) operating activities was $11.6 million, $3.9 million, $8.1 million and $8.6 million for the three months ended March 31, 2026 and 2025 and the years ended December 31, 2025 and 2024, respectively. Net cash provided by (used in) investing activities, which consists primarily of disbursements for loan originations and the purchase of investment securities, offset by principal collections on loans and proceeds from maturing securities and pay downs on securities, was $(11.9) million, $17.4 million, $44.5 million and $14.4 million for the three months ended March 31, 2026 and 2025 and the years ended December 31, 2025 and 2024, respectively. Net cash provided by (used in) financing activities was $40.9 million, $37.6 million, $(90.1) million and $18.7 million for the three months ended March 31, 2026 and 2025 and the years ended December 31, 2025 and 2024, respectively.

We are committed to maintaining a strong liquidity position. We monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments based on our current strategy to increase loans with an increase in core deposits and the continued use of Federal Home Loan Bank of Boston advances and other borrowings, as needed.

At March 31, 2026, BayCoast Bank exceeded its applicable regulatory capital requirement, and was considered "well capitalized" under regulatory guidelines. See "Historical and Pro Forma Regulatory Capital Compliance of BayCoast Bank."

The net proceeds from the offering will significantly increase our liquidity and capital resources. Over time, the initial level of liquidity will be reduced as net offering proceeds are used for general corporate purposes, including funding loans. Our financial condition and results of operations will be enhanced by the net proceeds from the offering, which will increase our net interest-earning assets and net interest income. However, due to the increase in equity resulting from the net proceeds, as well as other factors associated with the offering, our return on equity will be lower immediately following the offering. See "Risk Factors—Risks Related to the Offering—The capital we raise in the offering may negatively impact our return on equity until we can fully implement our business plan. This could negatively affect the trading price of our shares of common stock."

**Recent Accounting Pronouncements** 

For a discussion of the impact of recent accounting pronouncements, see note 1 of the notes to our consolidated financial statements beginning on page F-1 of this prospectus. As an emerging growth company, we have elected to use the extended transition period to delay the adoption of new or re-issued accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies.

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**Impact of Inflation and Changing Prices** 

The financial statements and related data presented herein have been prepared in accordance with GAAP, which requires the measurement of financial position and operating results in terms of historical dollars without considering changes in the relative purchasing power of money over time due to inflation. The primary impact of inflation on our operations is reflected in increased operating costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, interest rates, generally, have a more significant impact on a financial institution's performance than does inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.

**BUSINESS OF NARRAGANSETT FINANCIAL CORPORATION** 

Narragansett Financial Corporation was formed as the Massachusetts-chartered mutual holding company of BayCoast Bank in connection with the reorganization of BayCoast Bank into the mutual holding company form of organization in 1998. Upon completion of the reorganization and offering, Narragansett Financial Corporation will own 55% of Narragansett Bancorp, Inc.'s common stock. As a mutual holding company, Narragansett Financial Corporation is a non-stock company that that will be required by law to own a majority of the outstanding voting stock of Narragansett Bancorp, Inc. for so long as Narragansett Financial Corporation remains in existence.

At March 31, 2026, on a consolidated basis, Narragansett Financial Corporation had total assets of $2.90 billion, total deposits of $2.47 billion and total retained earnings of $186.6 million. We had net income of $1.2 million, $6.0 million and $5.3 million for the three months ended March 31, 2026 and the years ended December 31, 2025 and 2024, respectively.

**BUSINESS OF NARRAGANSETT BANCORP, INC.** 

Narragansett Bancorp, Inc. is a Maryland corporation that was incorporated in June 2026. The offering of common stock by means of this prospectus is being made by Narragansett Bancorp, Inc. in connection with the reorganization of BayCoast Bank and Narragansett Financial Corporation into the two-tier mutual holding company form of organization.

Narragansett Bancorp, Inc. will become the bank holding company for BayCoast Bank by owning all the outstanding shares of capital stock of BayCoast Bank. To date, Narragansett Bancorp, Inc. has engaged in organizational activities only. Following the reorganization and offering, Narragansett Bancorp, Inc.'s primary business activity will be to own all the outstanding shares of capital stock of BayCoast Bank, and Narragansett Bancorp, Inc. will be authorized to engage in any other business activities that are permissible for bank holding companies under Massachusetts and federal law.

Upon completion of the reorganization and offering, Narragansett Financial Corporation will own 55% and public stockholders will own 43% of Narragansett Bancorp, Inc.'s common stock. In addition, the charitable foundation will own 2% of Narragansett Bancorp, Inc.'s common stock.

Following the reorganization and offering, our cash flows will depend on earnings from the investment of the net offering proceeds and from any dividends we receive from BayCoast Bank. Initially, Narragansett Bancorp, Inc. will not own or lease any property, but instead will pay a fee to BayCoast Bank for the use of its premises, furniture and equipment. We intend to employ as officers of Narragansett Bancorp, Inc. only persons who are officers of BayCoast Bank; however, we will use the support staff of BayCoast Bank from time to time. We will pay a fee to BayCoast Bank for the time devoted to Narragansett Bancorp, Inc. by employees of BayCoast Bank; however, these individuals will not be separately compensated by Narragansett Bancorp, Inc. Narragansett Bancorp, Inc. may hire additional employees, as appropriate, to the extent it expands its business in the future.

Narragansett Bancorp, Inc.'s website address will be baycoast.bank/en/. Information on our website is not and should not be considered a part of this prospectus.

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**BUSINESS OF BAYCOAST BANK** 

**General** 

BayCoast Bank is a Massachusetts-chartered savings bank headquartered in Swansea, Massachusetts. BayCoast Bank was originally chartered in 1851, and operates from its main office and 25 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 is subject to comprehensive regulation and examination by the Massachusetts Commissioner of Banks and the FDIC.

BayCoast Bank's main office is located at 330 Swansea Mall Drive, Swansea, Massachusetts 02777, and our telephone number is (888) 806-2872. BayCoast Bank's website address is baycoast.bank/en/. Information on our website is not and should not be considered a part of this prospectus.

**Market Area** 

BayCoast Bank operates from its main office in Swansea, Massachusetts and 25 full-service branch offices in the South Coast of Massachusetts and the State of Rhode Island. In Massachusetts we have 18 branch office in Bristol County and one branch office Norfolk County. In Rhode Island we have three branch offices in Newport County, two branch offices in Providence County and one branch office in Bristol County. We consider the South Coast of Massachusetts and the State of Rhode Island as BayCoast Bank's primary market area for lending and gathering deposits. As of March 31, 2026, BayCoast Mortgage operated in 11 states and Priority Funding operated in 21 states.

The following presents information with respect to BayCoast Bank's market areas, as well as the Commonwealth of Massachusetts, the State of Rhode Island and the United States as a whole.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Unemployment Rate<br>(as of February 2026)** | **Median Household<br>Income (2026<br>estimated)** | **Population**<br>**(2026<br>estimated)** | **Square<br>Miles** | **Population<br>Density (per<br>Square Mile)** | **Projected<br>Population Growth<br>2026 to 2031** |
|  Bristol County, MA | 6.20% | $88044 | 590800 | 553 | 1068.1 | 1.42% |
|  Norfolk County, MA | 4.50% | $137903 | 746390 | 396 | 1884.3 | 2.22% |
|  Massachusetts | 4.70% | $109065 | 7179961 | 7801 | 920.4 | 1.78% |
|  Newport County, RI | 5.50% | $112192 | 82264 | 102 | 803.1 | (3.14)% |
|  Providence County, RI | 6.20% | $85029 | 682408 | 409 | 1666.5 | 2.75% |
|  Bristol County, RI | 4.90% | $125630 | 49679 | 24 | 2058.6 | (1.81)% |
|  Rhode Island | 4.70% | $93626 | 1116646 | 1034 | 1080.0 | 1.46% |
|  United States | 4.40% | $86867 | 342965686 | 3533038 | 97.1 | 2.58% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total Businesses** | **Total Sales (millions)** | **Square Miles** | **Businesses Per**<br>**Square Mile** |
|  Bristol County, MA | 27627 | $45339 | 553 | 49.9 |
|  Norfolk County, MA | 41650 | $66260 | 396 | 105.1 |
|  Massachusetts | 418859 | $682127 | 7801 | 53.7 |
|  Newport County, RI | 5635 | $7168 | 102 | 55.0 |
|  Providence County, RI | 36822 | $50961 | 409 | 89.9 |
|  Bristol County, RI | 2122 | $1986 | 24 | 87.9 |
|  Rhode Island | 62212 | $86156 | 1034 | 60.2 |
|  United States | 17119633 | $27476123 | 3533038 | 4.8 |

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According to the Federal Reserve Bank of Boston's Beige Book Report dated April 15, 2026, which covers the New England region of the United States, and is published eight times per year, commercial real estate contacts reported flat leasing and sales activity on average. Nonresidential construction slowed further slightly, and activity in the sector was largely limited to data centers and government projects. The outlook turned more pessimistic, as contacts expected higher longer-term interest rates to deter borrowing and construction activity going forward and said that rising oil prices presented additional downside risks.

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Sales of single-family homes and condominiums slowed modestly in February compared with January and were down sharply from the previous February. Single-family home prices rose slightly throughout the region, but condominium prices fell moderately in most New England states. Multifamily leasing activity pulled back slightly, attributed to reduced inflows of international students.

**Competition** 

We face significant competition within our market both in making loans and attracting deposits. Our market area has a high concentration of financial institutions, including large money center and regional banks, community banks and credit unions. Some of our competitors offer products and services that we currently do not offer, such as online account opening and automated wire transfers. Our competition for loans and deposits comes principally from commercial banks, savings institutions, mortgage banking firms, consumer finance companies and credit unions. We face additional competition for deposits from short-term money market funds, brokerage firms, mutual funds and insurance companies. Our ability to compete in our primary market area does not depend on any existing customer relationships.

As of June 30, 2025 (the latest date for which information is available), BayCoast Bank's market share was 12.85% of total deposits in Bristol County, Massachusetts, making us the 3rd largest financial institution by deposits out of 36 financial institutions operating in Bristol County. As of June 30, 2025, our market share was 6.20% of total deposits in Newport County, Rhode Island, making us the 5th largest financial institution by deposits out of 11 financial institutions operating in Newport County. As of that date, we also had a market share of 1.20% in Bristol County, Rhode Island, 0.18% in Norfolk County, Massachusetts and a market share of 0.32% in Providence County, Rhode Island.

**Lending Activities** 

Our loan portfolio consists primarily of commercial real estate loans, one- to four-family residential real estate loans, multi-family residential real estate loans, home equity loans and lines of credit, commercial business loans, construction loans and consumer loans.

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***Loan Portfolio Composition.*** The following table sets forth the composition of our loan portfolio by type of loan at the dates indicated. The amounts exclude loans held for sale, which totaled $14.9 million, $21.3 million and $48.9 million at the dates indicated, respectively. Information in the table below includes loans in process, which totaled $4.5 million at March 31, 2026.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **At March 31,**<br>**2026** | **At March 31,**<br>**2026** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** |
|  | **At March 31,**<br>**2026** | **At March 31,**<br>**2026** | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **Percent** | **Amount** | **Percent** | **Amount** | **Percent** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Mortgage loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate | $465313 | 20.5% | $484198 | 21.3% | $595532 | 25.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate (1) | 1089361 | 47.9 | 1080739 | 47.6 | 1088052 | 46.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction | 184236 | 8.1 | 179266 | 7.9 | 171595 | 7.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit | 213706 | 9.4 | 209874 | 9.3 | 178962 | 7.6 |
|  Commercial | 200807 | 8.8 | 194649 | 8.6 | 201392 | 8.5 |
|  Consumer | 119730 | 5.3 | 120586 | 5.3 | 127026 | 5.4 |
|  Other |  |  | 5 | 0.0 | 1106 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gross loans | 2273153 | 100.0% | 2269316 | 100.0% | 236366 | 100.0% |
|  Net deferred loan fees | (3850) |  | (3964) |  | (3455) |  |
|  Allowance for credit losses | (29680) |  | (29078) |  | (26223) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net | $2239623 |  | $2236274 |  | $2333986 |  |

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(1) Includes $291.9 million, $293.5 million and $286.0 million of multi-family residential real
estate loans at March 31, 2026, December 31, 2025 and 2024, respectively.

***Contractual Maturities.*** The following tables set forth the contractual maturities of our total loan portfolio at March 31, 2026. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. The tables present contractual maturities and do not reflect repricing or the effect of prepayments. Actual maturities may differ.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Residential Real<br>Estate** | **Commercial<br>and Multi-<br>Family Real<br>Estate** | **Construction** | **Home Equity<br>Loans and<br>Lines of Credit** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  Amounts due in: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One year or less | $134 | $80584 | $46889 | $14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After one through five years | 6533 | 163250 | 14872 | 1916 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After five through 15 years | 19188 | 224280 | 130 | 56254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; More than 15 years | 439458 | 621247 | 122345 | 155522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $465313 | $1089361 | $184236 | $213706 |

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| | | | |
|:---|:---|:---|:---|
|  | **Commercial** | **Consumer** | **Total** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  Amounts due in: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One year or less | $1955 | $16069 | $145645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After one through five years | 74650 | 24641 | 285862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After five through 15 years | 51564 | 41246 | 392662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; More than 15 years | 72638 | 37774 | 1448981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $200807 | $119730 | $2273153 |

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The following table sets forth our fixed and adjustable-rate loans at March 31, 2026 that are contractually due after March 31, 2027.

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| | | | |
|:---|:---|:---|:---|
|  | **Due After March 31, 2027** | **Due After March 31, 2027** | **Due After March 31, 2027** |
|  | **Fixed** | **Adjustable** | **Total** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  Mortgage loans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate | $189589 | $275590 | $465179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate | 113852 | 894925 | 1008777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction | 31075 | 106272 | 137347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit | 28984 | 184708 | 213692 |
|  Commercial | 61287 | 137565 | 198852 |
|  Consumer | 100996 | 2666 | 103661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total loans | $525784 | $1601724 | $2127508 |

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***Commercial Real Estate Lending*.** At March 31, 2026, we had $797.5 million in commercial real estate loans, representing 35.1% of our total loan portfolio.

We originate commercial real estate loans with rates that adjust after an initial fixed-rate period of generally five to seven years. We currently originate these loans with the rate tied to the applicable Federal Home Loan Bank classic advance rate plus a margin. Our commercial real estate loans generally have amortization terms of 25 years. The maximum loan-to-value ratio of our commercial real estate loans is generally 75%. Our commercial real estate loans also include loans that were originated as construction loans and have since converted to permanent financing. The majority of our commercial real estate loans are owner-occupied. We generally target commercial real estate loans with balances up to $5 million. At March 31, 2026, the average principal loan balance of our outstanding commercial real estate loans was $1.0 million, and the largest of such loans was a $15.2 million loan secured by a building used for laboratory and office space. This loan was performing in accordance with its original terms at March 31, 2026.

Set forth below is information regarding our commercial real estate loans at March 31, 2026.

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| | | |
|:---|:---|:---|
| **Type of Loan** | **Number of Loans** | **Balance** |
|  | | **(In thousands)** |
|  Leisure and hospitality | 127 | $234203 |
|  Office | 176 | 153775 |
|  Retail | 95 | 71504 |
|  Industrial | 67 | 71271 |
|  Cannabis facilities | 11 | 48877 |
|  Other trade, transportation and utilities | 58 | 38159 |
|  Manufacturing | 48 | 33102 |
|  Education and health services | 47 | 29396 |
|  Gasoline station | 23 | 27073 |
|  Other automotive | 13 | 16286 |
|  Other services | 42 | 13564 |
|  Professional and business services | 21 | 8328 |
|  Religious organizations | 15 | 6930 |
|  Other commercial real estate | 95 | 45015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 838 | $797484 |

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We consider a number of factors in originating commercial real estate loans. We evaluate the qualifications and financial condition of the borrower, including project-level and global cash flows, credit history, and management expertise, as well as the value and condition of the property securing the loan. When evaluating the qualifications of the borrower, we consider the financial resources of the borrower, the borrower's experience in owning or managing similar property and the borrower's payment history with us and other financial institutions. In evaluating the property securing the loan, the factors we consider include the net operating income of the mortgaged property before debt service and depreciation, the ratio of the loan amount to the appraised value of the mortgaged

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property and the debt service coverage ratio (the ratio of net operating income to debt service). We generally seek a debt service ratio of at least 1.20x. Generally, commercial real estate loans are appraised by outside independent appraisers; however, if the principal balance of the loan is less than $500,000, we may utilize third-party evaluations in lieu of formal appraisals, which are subsequently reviewed by our appraisal department.

Personal guarantees are generally obtained from the principals of commercial real estate loan borrowers, although this requirement may be waived in limited circumstances depending upon the loan-to-value ratio and the debt service ratio associated with the loan. We require property, casualty and title insurance and flood insurance if the property is in a flood zone area.

***One- to Four-Family Residential Real Estate Lending*.** At March 31, 2026, one- to four-family residential real estate loans totaled $465.3 million, or 20.8% of our total loan portfolio. The majority of these loans are secured by properties located in our market area. The average principal loan balance of our one- to four-family residential real estate loans was $374,000 at March 31, 2026.

We currently offer one- to four-family residential real estate loans with terms of up to 30 years. Historically, we have sold most of the one- to four-family residential real estate loans we have originated. We originate fixed-rate and adjustable-rate one- to four-family residential real estate loans. One- to four-family residential real estate loans often remain outstanding for shorter periods than their contractual terms because borrowers have the right to refinance or prepay their loans. We generally limit the loan-to-value ratios of our mortgage loans without private mortgage insurance to 80% of market value. Loans where the borrower obtains private mortgage insurance may be made with loan-to-value ratios of up to 97%, while loans for affordable and first-time homebuyer programs may be made with loan-to-value ratios of up to 97%.

Our adjustable-rate one- to four-family residential real estate loans carry terms to maturity of 30 years and generally have fixed rates for initial terms of three, five, seven or ten years, and adjust thereafter for periods of between one and five years, plus a margin, which in recent years has been tied to the one-year U.S. Treasury rate. The maximum amount by which the interest rate may be increased or decreased is generally 2.75% to 3.00% for the first adjustment period and 2% per adjustment period thereafter, with a lifetime interest rate cap of generally 6% over the initial interest rate of the loan and a floor of 2.75% to 3.00%.

We have not offered but may offer "interest only" mortgage loans on permanent one- to four-family residential real estate loans (where the borrower only pays interest for an initial period, after which the loan converts to a fully amortizing loan). We also have not offered and will not offer loans that provide for negative amortization of principal, such as "Option ARM" loans, where the borrower can pay less than the interest owed on the loan, resulting in an increased principal balance during the life of the loan. We have not offered "Alt-A" loans (i.e., loans that generally target borrowers with better credit scores who borrow with alternative documentation such as little or no verification of income).

We generally require title insurance on all of our one- to four-family residential real estate mortgage loans, and we also require that borrowers maintain fire and extended coverage casualty insurance (and, if appropriate, flood insurance) in an amount at least equal to the lesser of the loan balance or the replacement cost of the improvements. We do not conduct environmental testing on residential real estate mortgage loans unless specific concerns for hazards are identified by the appraiser used in connection with the origination of the loan. If we identify an environmental problem on land that will secure a loan, the environmental hazard must be remediated before the closing of the loan.

When underwriting residential real estate loans, we review and verify each loan applicant's employment, income and credit history and, if applicable, our experience with the borrower. Our policy is to obtain credit reports and financial statements on all borrowers and guarantors. We require independent appraisals and/or an Automated Value Model (AVM) for all one- to four-family residential real estate loans. We use a third party for appraisal review. All appraisals, whether for loans sold on the secondary market or retained, are input into Fannie Mae's Desktop Underwriter for reasonableness prior to origination. In addition, subsequent to loan origination, our loan quality control process may utilize an independent third party to conduct appraisal reviews.

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***Multi-family Residential Real Estate Lending*.** At March 31, 2026, we had $291.9 million in multi-family residential real estate loans, representing 12.8% of our total loan portfolio. Our multi-family loans are secured primarily by five-or-more unit residential buildings. The terms of and underwriting guidelines for our multi-family residential real estate loans are generally the same as for our commercial real estate loans, described above, including the use of personal guarantees. We generally target multi-family residential real estate loans with balances of up to $5.0 million. At March 31, 2026, the average principal loan balance of our outstanding multi-family residential real estate loans was $1.1 million, and the largest of such loans was a $28.5 million loan secured by a 179-unit apartment complex. At March 31, 2026, this loan was performing according to its original terms.

***Home Equity Loans and Lines of Credit.*** In addition to traditional one- to four-family residential mortgage loans, we offer home equity loans and home equity lines of credit that are secured by the borrower's primary residence. Home equity lines of credit have a maximum term of 20 years. The borrower is permitted to draw against the line during the first 10 years. Our home equity loans are originated with fixed rates of interest and with terms of up 15 years. Home equity loans and lines of credit are generally underwritten with the same criteria that we use to underwrite one- to four-family residential mortgage loans. Home equity loans may be underwritten with a loan-to-value ratio of 80% on owner occupied homes, 70% on second homes and condominiums, and 60% on investments properties when combined with the principal balance of the existing mortgage loan, while lines of credit for owner-occupied properties and second homes may be underwritten with loan-to-value ratios of 80% and 70% respectively, when combined with the principal balance of the existing mortgage loan. At the time we close a home equity loan or line of credit, we record a mortgage to perfect our security interest in the underlying collateral. At March 31, 2026, the outstanding balance of home equity loans totaled $29.1 million, or 1.3% of our total loan portfolio, and the outstanding balance of home equity lines of credit totaled $184.6 million, or 8.1% of our total loan portfolio.

***Commercial Business Loans.*** At March 31, 2026, commercial business loans were $200.8 million, or 9.0% of total loans. Commercial business loans include both term loans and lines of credit. Loan terms vary depending on the type of collateral (such as five years for a loan secured by machinery and equipment, with a maximum loan-to-value ratio of up to 100%). Generally, the maximum loan-to-value ratio for commercial business loans is up to 90%.

When making commercial business loans, we consider the financial statements of the borrower, our lending history with the borrower, the debt service capabilities and global cash flows of the borrower and other guarantors, the projected cash flows of the business and the value of the collateral, accounts receivable, inventory and equipment.

We generally target commercial business loans with balances up to $5.0 million. At March 31, 2026, the average principal loan balance of our outstanding commercial business loans was $487,000. At March 31, 2026, our largest commercial business loan totaled $15.0 million and was secured by a solar farm. At March 31, 2026, this loan was performing according to its original payment terms; however, it has been granted debt service coverage covenant waivers.

***Construction Loans.*** At March 31, 2026, we had $184.2 million in construction loans, representing 8.2% of our total loan portfolio, nearly all of which consisted of commercial construction loans. Our construction loans are structured as straight construction or construction/permanent loans where after the initial construction period the loan converts to a permanent commercial mortgage loan. Our commercial construction loans are underwritten to the same guidelines for commercial mortgage loans, including the use of personal guarantees as well as corporate guarantees.

Commercial construction loans generally can be made with a maximum loan-to-value ratio of 75% of the estimated appraised market value upon completion of the project. Before making a commitment to fund a construction loan, we require an appraisal of the property by an independent licensed appraiser. We also require inspections of the property before disbursements of funds during the term of the construction loan.

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Our construction loans are based upon estimates of costs and values associated with the completed project. Underwriting is focused on the borrowers' financial strength, credit history and demonstrated ability to produce a quality product and effectively market and manage their operations.

At March 31, 2026, the average principal loan balance of our outstanding construction loans was $884,000. At March 31, 2026, our largest construction loan totaled $22.5 million and was secured by an industrial building. At March 31, 2026, this loan was performing according to its original payment terms.

***Consumer Loans.*** We offer a limited range of consumer loans. At March 31, 2026, consumer and other loans were $119.7 million, or 5.3% of total loans. Our consumer loans generally consist of manufactured home loans, which are originated nationwide through Priority Funding and Teamwork Funding, and personal loans which are generally originated to customers residing in our primary market area, with manufactured home loans totaling $72.3 million at March 31, 2026. Manufactured home loans are generally originated with maximum loan-to-value ratios of 80%, although we will originate these loans with maximum loan-to-value ratios of 90% for certain borrowers. At March 31, 2026, the average principal loan balance of our outstanding manufactured home loans was $47,000.

***Cannabis Lending.*** As of March 31, 2026, we had $84.2 million in loans to borrowers in the cannabis industry, 93% of which was collateralized by real estate and included in commercial real loans, described above. We have established a Cannabis-Related Business Policy and Procedures governing the origination of these loans, and our policies for these loans also follow applicable rules, regulations, interpretations, and guidance issued by FinCEN titled "BSA Expectations Regarding Marijuana-Related Businesses," issued in 2014. We do not intend to increase our cannabis industry lending in the future.

Our largest cannabis lending relationship consists of two commercial real estate loans totaling $25.7 million as of March 31, 2026, secured by a cannabis cultivation facility. Both loans are also secured by a lien on all business assets. The loans were under-secured and had an individual reserve of $2.5 million as of March 31, 2026. The loans were modified in 2025, and no principal and interest payments were required. The loans were placed on non-accrual status as of December 31, 2025. The loans have since resumed principal and interest payments and were current as of March 31, 2026.

**Loan Underwriting Risks** 

***Commercial Real Estate Loans and Multi-Family Real Estate Loans.*** Loans secured by commercial real estate and multi-family real estate generally have larger balances and involve a greater degree of risk than one- to four-family residential real estate loans. The primary concern with these types of lending is the borrower's creditworthiness and the feasibility and cash flow potential of the underlying business. Payments on loans secured by income producing properties often depend on the successful operation and management of the properties. As a result, repayment of such loans may be subject, to a greater extent than residential real estate loans, to adverse conditions in the real estate market or the economy. To monitor cash flows on income properties, we require borrowers and loan guarantors to provide annual financial statements. In reaching a decision on whether to make a commercial real estate loan or a multi-family real estate loan, we consider and review a global cash flow analysis of the borrower and consider the net operating income of the property, the borrower's expertise, credit history and profitability and the value of the underlying property. An environmental phase one report is obtained when the possibility exists that hazardous materials may have existed on the site, or the site may have been impacted by adjoining properties that handled hazardous materials.

If we foreclose on a commercial real estate loan or a multi-family real estate loan, the marketing and liquidation period to convert the real estate asset to cash can be lengthy with substantial holding costs. In addition, vacancies, deferred maintenance, repairs and market stigma can result in prospective buyers expecting sale price concessions to offset their real or perceived economic losses for the time it takes them to return the property to profitability. Changes in economic conditions that are not in the control of the borrower or lender could also affect the value of the collateral for the loan or the future cash flow of the property. Additionally, any decline in real estate

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values may be more pronounced for commercial or multi-family real estate than single-family residential properties, and we may require additional paydowns to enhance the loan-to-value position. Depending on the individual circumstances, initial charge-offs and subsequent losses on these types of loans can be unpredictable and substantial.

***Commercial Business Loans.*** Unlike residential real estate loans, which generally are made on the basis of the borrower's ability to make repayment from his or her employment or other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial and industrial loans are of higher risk and typically are made on the basis of the borrower's ability to make repayment from the cash flow of the borrower's business and the collateral securing these loans may fluctuate in value. Our commercial and industrial loans are originated primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. Most often, this collateral consists of real estate, accounts receivable, inventory or equipment. Credit support provided by the borrower for most of these loans is based on the liquidation of the pledged collateral and enforcement of a personal guarantee, if any. Further, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value. As a result, the availability of funds for the repayment of commercial and industrial loans may depend substantially on the success of the business itself.

***Construction Loans.*** Construction lending involves additional risks when compared with permanent lending because funds are advanced upon the security of the project, which is of uncertain value before its completion. Because of the uncertainties inherent in estimating construction costs, as well as the market value of the completed project and the effects of governmental regulation of real property, it is relatively difficult to evaluate accurately the total funds required to complete a project and the related loan-to-value ratio. In addition, generally during the term of a construction loan, interest may be funded by the borrower or disbursed from an interest reserve set aside from the construction loan budget. These loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project and the ability of the borrower to sell or lease the property or obtain permanent take-out financing, rather than the ability of the borrower or guarantor to repay principal and interest. If the appraised value of a completed project proves to be overstated, we may have inadequate security for the repayment of the loan upon completion of construction of the project and may incur a loss. Land loans have substantially similar risks.

***Consumer Loans.*** Consumer loans may entail greater risk than residential real estate loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower's continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans.

***Adjustable-Rate One- to Four-Family Residential Real Estate Loans.*** Although adjustable-rate mortgage loans may reduce, to an extent, our vulnerability to changes in market interest rates because they periodically re-price, as interest rates increase the required payments due from the borrower also increase (subject to rate caps), increasing the potential for default by the borrower. At the same time, the ability of the borrower to repay the loan and the marketability of the underlying collateral may be adversely affected by higher interest rates. Upward adjustments of the contractual interest rate are also limited by our maximum periodic and lifetime rate adjustments. Moreover, the interest rates on most of our adjustable-rate loans do not adjust for up to five years after origination. As a result, the effectiveness of adjustable-rate mortgage loans in compensating for changes in market interest rates may be limited.

**Originations, Sales, Participations and Purchases of Loans** 

Most of our loan originations are generated by our loan personnel and from referrals from existing customers, real estate brokers, accountants and other professionals. All loans we originate are underwritten pursuant to our policies and procedures. While we originate both fixed-rate and adjustable-rate loans, our ability to generate each type of loan depends upon relative borrower demand and pricing levels established by competing banks, thrifts, credit unions, mortgage banking companies and other lenders. Our volume of loan originations is influenced significantly by market interest rates, and, accordingly, the volume of our loan originations can vary from period to period.

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At March 31, 2026, the outstanding balances of our loan participations where we are not the lead lender totaled $54.7 million, or 2.4% of our loan portfolio, and consisted of 11 borrower relationships secured by commercial property, equipment and assignments. We did not purchase loan participations for the three months ended March 31, 2026, and the years ended December 31, 2025 and 2024. We occasionally sell participations to remain within our loans-to-one-borrower limits. For the three months ended March 31, 2026, and the years ended December 31, 2025 and 2024, we did not sell any loan participations. Additionally, we did not purchase any whole loans during these periods.

Through BayCoast Mortgage Company, we originate and sell conforming and jumbo residential mortgages in different states. The majority of loans originated by BayCoast Mortgage Company are sold into the secondary market or to investors, with all loans that conform to secondary market sale requirements sold into the secondary market. For the three months ended March 31, 2026 and the years ended December 31, 2025 and 2024, BayCoast Mortgage Company sold $181.5 million, $556.9 million and $499.1 million of loans, respectively. Priority Funding, which originates and sells manufactured home loans; and Teamwork Funding, a wholly owned subsidiary of Priority Funding, provides broker lender services for manufactured home loans and primarily conducts business in Arizona. For the three months ended March 31, 2026 and the years ended December 31, 2025 and 2024, Priority Funding and Teamwork Funding sold $22.2 million, $122.8 million and $121.0 million of loans, respectively.

In addition to loan sales through our subsidiaries, we sell loans from time to time directly from BayCoast Bank. For the three months ended March 31, 2026, and the years ended December 31, 2025 and 2024, BayCoast Bank sold $45.4 million, $191.3 million and $29.1 million of loans. These were all sales to private investors, which were conducted to provide liquidity and increase regulatory capital.

**Loan Approval Procedures and Authority** 

The maximum amount that BayCoast Bank may lend to one borrower and the borrower's related entities is generally limited, by statute, to 20% of capital, which is defined under Massachusetts law as the sum of capital stock, surplus account and undivided profits. At March 31, 2026, this regulatory limit on loans-to-one borrower was $52.4 million. We generally establish our internal loans-to-one borrower limit on a quarterly basis as 50% of our regulatory limit, which was $26.0 million at March 31, 2026, with loans in excess of this amount requiring approval of our executive committee or full board of directors. At March 31, 2026, we had 11 loan relationships outstanding with a principal balance in excess of this internal amount. At March 31, 2026, BayCoast Bank's largest loan relationship with one borrower was for $41.8 million and was collateralized by real estate and business assets. This loan was performing in accordance with its original terms on that date. Our regulatory loans-to-one borrower limit would increase as a result of the capital raised in the offering, and we may increase our internal loans-to-one borrower limit as a result. Specifically, our regulatory limit would increase to between $57.9 million at the minimum of the offering range and $61.1 million at the adjusted maximum of the offering range, which, based on our internal policies, would allow us to increase in our internal loans-to-one borrower limit to between approximately $29.0 million and $30.5 million, with loans in excess of the increased amount requiring approval of our executive committee or full board of directors.

BayCoast Bank's lending is subject to uniform written underwriting standards and origination procedures. Decisions on loan applications are made on the basis of detailed information submitted by the prospective borrower, credit histories that we obtain, and property valuations (consistent with our appraisal policy) prepared by outside independent licensed appraisers or internal evaluations, where permitted by regulations.

All loan approval amounts are based on the proposed loan to the individual borrower. Certain of our officers can approve unsecured commercial loans in amounts up to $500,000, and secured commercial loans up to $750,000, while our management loan review committee, consisting of designated executive officers, can approve unsecured commercial loans in amounts up to $750,000, and secured commercial loans up to $10.0 million. With

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respect to residential mortgage loan authority, certain of our officers can approve loans in amounts up to $2.0 million, while our management loan review committee can approve such loans in amounts up to $3.0 million. Loans in excess of these amounts require approval of the executive committee or our full board of directors.

**Delinquencies and Non-Performing Assets** 

***Delinquency Procedures.*** With respect to commercial loans, once a loan becomes 15 days delinquent, a workout officer will notify the loan officer and may assist with collection efforts if needed. Collection activities range from attempting to contact the borrower by phone, email or letter in early delinquency stages, to bringing legal action in cases of advanced delinquency. With respect to residential mortgage loans and consumer loans, when the loan becomes 16 days delinquent, we will attempt verbal contact with the borrower and attempt to immediately assess the customer's situation and, if a hardship situation exists, we will discuss remedies with the customer, payment plans, forbearance agreements up to and including a modification of the account. If we are unable to contact the borrower, we will send an initial collection letter. Prior to 45 days delinquency, a home ownership counseling notice is remitted. Once a loan becomes 31 days delinquent, collections efforts including telephone contact, form letters, and personalized letters at appropriate intervals. At the end of a 30-day cure period, a decision will be made whether to begin foreclosure proceedings.

***Loans Past Due and Nonperforming Assets****.* Loans are reviewed on a regular basis. Management determines that a loan is non-performing when it is probable at least a portion of the loan will not be collected in accordance with the original terms due to a deterioration in the financial condition of the borrower or the value of the underlying collateral if the loan is collateral dependent. Non-accrual loans are loans for which collectability is questionable and, therefore, interest on such loans will no longer be recognized on an accrual basis. All loans that become 90 days or more delinquent are placed on non-accrual status unless the loan is well secured and is in the process of collection. When loans are placed on non-accrual status, unpaid accrued interest is fully reversed, and further income is recognized only to the extent received on a cash basis or cost recovery method. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (at least six consecutive months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

When we acquire real estate as a result of foreclosure, the real estate is classified as real estate owned. The real estate owned is recorded at fair value, less estimated costs to sell. Soon after acquisition, we order a new appraisal, or evaluation when acceptable, to determine the current market value of the property. Any excess of the recorded value of the loan satisfied over the market value of the property is charged against the allowance for credit losses, or, if the existing allowance is inadequate, charged to expense, in either case during the applicable period of such determination. After acquisition, all costs incurred in maintaining the property are expensed. Costs relating to the development and improvement of the property, however, are capitalized to the extent of estimated fair value less estimated costs to sell.

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***Delinquent Loans***. The following table sets forth our loan delinquencies by type and amount at the dates indicated.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** |
|  | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **30-59**<br>**Days**<br>**Past Due** | **60-89**<br>**Days**<br>**Past Due** | **90 Days**<br>**or More<br>Past Due** | **30-59**<br>**Days**<br>**Past Due** | **60-89**<br>**Days**<br>**Past Due** | **90 Days**<br>**or More<br>Past Due** | **30-59**<br>**Days**<br>**Past Due** | **60-89**<br>**Days**<br>**Past Due** | **90 Days**<br>**or More<br>Past Due** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  Mortgage loans: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate | $640 | $502 | $1084 | $1011 | $— | $1084 | $1953 | $1673 | $1058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate | 396 | 329 | 7093 | 63 | 6464 | 1073 | 1672 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit | 1506 | 45 | 173 | 389 | 71 | 401 | 1296 | 563 | 377 |
|  Commercial |  |  | 1725 |  | 1933 | 292 |  |  | 478 |
|  Consumer | 583 | 438 | 247 | 1309 | 246 | 475 | 985 | 324 | 620 |
|  Other |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $3125 | $1314 | $10322 | $2772 | $8714 | $3325 | $5906 | $2560 | $2533 |

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***Non-Performing Assets.*** The following table sets forth information regarding our non-performing assets at the dates indicated.

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| | | | |
|:---|:---|:---|:---|
|  | **At March 31,**<br>**2026** | **At December 31,** | **At December 31,** |
|  | **At March 31,**<br>**2026** | **2025** | **2024** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Non-accrual loans: |  |  |  |
|  Mortgage loans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate | $3919 | $3750 | $2518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate | 37180 | 30780 | 332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction |  |  | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit | 871 | 1150 | 812 |
|  Commercial | 1725 | 292 | 478 |
|  Consumer | 1170 | 1456 | 1257 |
|  Other |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-accrual loans | 44865 | 37428 | 5444 |
|  Accruing loans past due 90 days or more |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-performing loans | $44865 | $37428 | $5444 |
|  Foreclosed and repossessed assets | $20 | $142 | $222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-performing assets | $44885 | $37570 | $5466 |
|  Total non-performing loans to total loans | 1.97% | 1.65% | 0.23% |
|  Total non-accrual loans to total loans | 1.97% | 1.65% | 0.23% |
|  Total non-performing assets to total assets | 1.55% | 1.31% | 0.19% |

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Our recent increase in non-accrual loans reflects four commercial real estate loans and one commercial loan (totaling three relationships), with total balances of $36.5 million as of March 31, 2026, being placed on non-accrual status, as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our largest criticized asset consists of two commercial real estate loans totaling $25.7 million as of
March 31, 2026, secured by a cannabis cultivation facility. Both loans are also secured by a lien on all business assets. The loans were under-secured and has an individual reserve of $2.5 million as of March 31, 2026. The loans were
modified in 2025, and no principal and interest payments were required. The loans were placed on non-accrual status as of December 31, 2025. The loans have since resumed principal and interest payments
and were current as of March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A commercial relationship consisting of two loans totaling $7.5 million as of March 31, 2026, was
placed on non-accrual status because it reached 90 days past due. The collateral is an owner-occupied property occupied by a manufacturing company of personal care and pharmaceutical products. There is a
current potential buyer who is in negotiations with the borrower. The loans are individually evaluated for impairment using the collateral method. The collateral value was considered sufficient and no reserve has been required. The loans are current
as of March 31, 2026.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A commercial real estate loan, totaling $3.4 million, was modified in 2025 and placed on non-accrual status. This is a participation loan where we own 44.44%. The loan is under-secured and had an individual reserve of $2.1 million as of March 31, 2026. The loan is current as of March 31,
2026. ***Classified Assets***. Federal regulations provide for the classification of loans and other assets, such as debt and equity securities considered by applicable regulations to be of lesser quality, as "substandard," "doubtful" or "loss." An asset is considered "substandard" if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. "Substandard" assets include those characterized by the "distinct possibility" that the insured institution will sustain "some loss" if the deficiencies are not corrected. Assets classified as "doubtful" have all of the weaknesses inherent in those classified "substandard," with the added characteristic that the weaknesses present make "collection or liquidation in full," on the basis of currently existing facts, conditions, and values, "highly questionable and improbable." Assets classified as "loss" are those considered "uncollectible" and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Assets that do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are designated as "special mention" by our management.

We may evaluate individually any credits that exhibit any of these weaknesses. A loan is individually evaluated when it does not share similar risk characteristics with a pool of loans and is assessed on an individual basis for expected credit losses, typically because the borrower is experiencing financial difficulty or the loan is collateral-dependent.

In accordance with our loan policies, we regularly review the problem loans in our portfolio to determine whether any loans require classification in accordance with applicable regulations. Loans are listed on the "watch list" initially because of emerging financial weaknesses even though the loan is currently performing as agreed, or if the loan possesses weaknesses although currently performing. If a loan deteriorates in asset quality, the classification is changed to "special mention," "substandard," "doubtful" or "loss" depending on the circumstances and the evaluation. Generally, loans 90 days or more past due are placed on non-accrual status and classified "substandard." Management reviews the status of each loan on our watch list on a monthly basis.

On the basis of this review of our assets, our classified loans and special mention loans at the dates indicated were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **At March 31,**<br>**2026** | **At December 31,** | **At December 31,** |
|  | **At March 31,**<br>**2026** | **2025** | **2024** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  Substandard loans | $50288 | $51445 | $28886 |
|  Doubtful loans |  |  |  |
|  Loss loans |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total classified loans | $50288 | $51445 | $28886 |
|  Special mention loans | $43245 | $10089 | $23454 |

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**Allowance for Credit Losses for Loans** 

The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Such allowance is based on the credit losses expected to arise over the life of the asset (contractual term). The allowance for credit losses on loans is established through a provision for credit losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed.

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The allowance for credit losses on loans is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

Management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses.

Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider all of the following: peer losses, changes in lending policy and procedures, changes in nature and volume of the loan portfolio and in the terms of loans, changes in experience, ability and depth of lending management and staff, changes in the quality of the loan review system, changes in the value of underlying collateral for collateral-dependent loans, existence and effect of any concentration of credit and changes in the level of such concentrations, effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio, and the current and forecasted direction of the economic and business environment. Such forecasted information includes: gross domestic product growth, unemployment rates, inflation, interest rates and house price indexes amongst others.

No assurances can be given that the level of allowance for credit losses will cover all of the losses on the loans or that future adjustments to the allowance for credit losses will not be necessary if economic and other conditions differ substantially from the economic and other conditions used by management to determine the current level of the allowance for credit losses. A large loss could deplete the allowance and require increased provisions to replenish the allowance, which would adversely affect earnings.

As an integral part of their examination process, the Massachusetts Commissioner of Banks and the FDIC periodically review our allowance for credit losses, and as a result of such reviews, we may have to adjust our allowances for credit losses.

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The following table sets forth activity in our allowance for credit losses for the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **At or For the**<br>**Three Months Ended**<br>**March 31,** | **At or For the**<br>**Three Months Ended**<br>**March 31,** | **At or For the**<br>**Years Ended**<br>**December 31,** | **At or For the**<br>**Years Ended**<br>**December 31,** |
|  | **2026** | **2025** | **2025** | **2024** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Allowance for credit losses at beginning of period | $29078 | $26223 | $26223 | $19000 |
|  Provision for credit losses | 1700 | 1950 | 7025 | 7650 |
|  Charge-offs: |  |  |  |  |
|  Mortgage loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate |  |  | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate |  |  | (3141) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit |  |  |  |  |
|  Commercial |  | (82) | (478) |  |
|  Consumer | (1179) | (104) | (935) | (506) |
|  Other |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total charge-offs | (1179) | (186) | (4555) | (506) |
|  Total recoveries | 81 | 20 | 385 | 79 |
|  Net (charge-offs) recoveries | (1098) | (166) | (4170) | (427) |
|  Allowance at end of period | $29680 | $28007 | $29078 | $26223 |
|  Allowance to non-performing loans | 84.99% | 467.65% | 105.94% | 481.69% |
|  Allowance to total loans outstanding at the end of the period | 1.31% | 1.20% | 1.28% | 1.11% |
|  Net (charge-offs) recoveries to average loans outstanding during the period (1) | (0.19)% | (0.03)% | (0.18)% | (0.02)% |

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(1) Annualized for the three-month periods.

The decrease in the allowance for credit losses to non-performing loans was due to our increase in non-accrual commercial real estate loans, described above, which has not resulted in an increase in our allowance for credit losses.

The following table sets forth additional information with respect to charge-offs by category for the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended**<br>**March 31, (1)** | **For the Three Months Ended**<br>**March 31, (1)** | **For the Years Ended**<br>**December 31,** | **For the Years Ended**<br>**December 31,** |
|  | **2026** | **2025** | **2025** | **2024** |
|  Net (charge-offs) recoveries to average loans outstanding during the period: |  |  |  |  |
|  Mortgage loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate | —% | —% | —% | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate | —% | —% | (0.27)% | 0.01% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction | —% | —% | —% | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit | —% | —% | —% | —% |
|  Commercial | —% | (0.17)% | (0.11)% | —% |
|  Consumer | (3.70)% | (0.32)% | (0.71)% | (0.39)% |
|  Other | —% | —% | —% | —% |

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(1) Annualized.

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The increase in charge-offs by percentage for consumer loans was due to our selling our student loan portfolio in the first quarter of 2026, recognizing a charge-off of $1.1 million with no impact to our income statement due to our having fully reserved for these loans.

***Allocation of Allowance for Credit Losses.*** The following table sets forth the allowance for credit losses allocated by loan category and the percent of the allowance in each category to the total allocated allowance at the dates indicated. The allowance for credit losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** |
|  | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Allowance<br>for Credit<br>Losses on<br>Loans** | **Percent of<br>Allowance<br>in Each<br>Category<br>to Total<br>Allocated<br>Allowance** | **Percent<br>of Loans<br>in Each<br>Category<br>to Total<br>Loans** | **Allowance<br>for Credit<br>Losses on<br>Loans** | **Percent of<br>Allowance<br>in Each<br>Category<br>to Total<br>Allocated<br>Allowance** | **Percent<br>of Loans<br>in Each<br>Category<br>to Total<br>Loans** | **Allowance<br>for Credit<br>Losses on<br>Loans** | **Percent of<br>Allowance<br>in Each<br>Category<br>to Total<br>Allocated<br>Allowance** | **Percent<br>of Loans<br>in Each<br>Category<br>to Total<br>Loans** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Mortgage loans: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate | $784 | 3.1% | 20.5% | $768 | 2.8% | 21.3% | $1304 | 5.4% | 25.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate | 15939 | 63.3 | 47.9 | 16690 | 61.4 | 47.6 | 13326 | 55.3 | 46.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction | 719 | 2.9 | 8.1 | 699 | 2.6 | 7.9 | 583 | 2.4 | 7.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit | 426 | 1.7 | 9.4 | 417 | 1.5 | 9.3 | 568 | 2.4 | 7.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial | 3188 | 12.7 | 8.8 | 3013 | 11.1 | 8.6 | 2741 | 11.4 | 8.5 |
|  Consumer | 4107 | 16.3 | 5.3 | 5598 | 20.6 | 5.3 | 5594 | 23.2 | 5.4 |
|  Other |  |  |  |  |  | 0.0 |  |  | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total allocated allowance | 25163 | 100.0% | 100.0% | 27185 | 100.0% | 100.0% | 24116 | 100.0% | 100.0% |
|  Unallocated | 4517 |  |  | 1893 |  |  | 2107 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $29680 |  |  | $29087 |  |  | $26223 |  |  |

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**Investment Activities** 

***General.*** BayCoast Bank has established an investment policy that governs our investment activities. The objectives of our investment policy are: (1) to provide liquidity adequate to meet reasonable deposit outflows and anticipated loan needs; (2) to provide safety of principal and interest; (3) to provide a stable source of income; (4) to assist with asset/liability management; and (5) to assist in reducing our tax liability. All purchase and sale transactions are reviewed and ratified by the executive committee of our board of directors. The board of directors has delegated to our Chief Executive Officer, our President and our Chief Financial Officer the authority to engage in single investment transactions of up to $10.0 million in certain securities without prior approval of the board of directors or a committee of the board.

Our current investment policy authorizes us to invest in various types of investment grade investment securities and liquid assets, including U.S. treasury securities, federal agency securities, corporate bonds and notes, bank deposits and certificates of deposit, municipal bonds and notes, residential and commercial mortgage-backed securities, collateralized mortgage obligations, asset-backed securities, overnight and term federal funds, common stock, preferred stock, mutual funds, structured debt, financial institution subordinated debt, and other bonds and obligations. We do not engage in any investment hedging activities or trading activities, nor do we purchase any high-risk mortgage derivative products, corporate junk bonds, or certain types of structured notes.

GAAP requires that, at the time of purchase, we designate a debt security as held-to-maturity, available-for-sale, or trading, depending on our ability and intent to hold such security. Debt securities designated as available for sale are reported at fair value, while debt securities designated as held to maturity are reported at amortized cost.

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At March 31, 2026, we had allocated no portion of the allowance for credit losses with respect to investment securities.

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***Portfolio Maturities and Yields.*** The composition and maturities of the investment securities portfolio at March 31, 2026 are summarized in the following table. The table excludes equity securities, which totaled $2.2 million at March 31, 2026. We held no held-to-maturity securities as of March 31, 2026. Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur. The weighted average yield is calculated based on the yield to maturity weighted for the size of each debt security over the entire portfolio of debt securities. No tax-equivalent yield adjustments have been made, as the effects would be immaterial.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **One Year or Less** | **One Year or Less** | **More than One Year**<br>**through Five Years** | **More than One Year**<br>**through Five Years** | **More than Five Years**<br>**through Ten Years** | **More than Five Years**<br>**through Ten Years** | **More than Ten Years** | **More than Ten Years** | **Total** | **Total** | **Total** |
|  | **Amortized**<br>**Cost** | **Weighted**<br>**Average**<br>**Yield** | **Amortized**<br>**Cost** | **Weighted**<br>**Average**<br>**Yield** | **Amortized**<br>**Cost** | **Weighted**<br>**Average**<br>**Yield** | **Amortized**<br>**Cost** | **Weighted**<br>**Average**<br>**Yield** | **Amortized**<br>**Cost** | **Fair**<br>**Value** | **Weighted**<br>**Average**<br>**Yield** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. government bonds | $33880 | 3.74% | $142370 | 3.87% | $58915 | 4.06% | $— | —% | $235165 | $234374 | 3.90% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. government-sponsored enterprise securities | 15180 | 3.82% | 32240 | 3.90% |  | —% |  | —% | 47420 | 45309 | 3.89% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and municipal bonds | 924 | 2.98% | 7181 | 3.76% | 7573 | 3.39% | 17939 | 4.00% | 33617 | 33252 | 3.79% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 12285 | 5.25% | 4744 | 4.82% | 5400 | 4.75% |  | —% | 22429 | 21351 | 5.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated debt and collateralized debt obligations |  | —% | 3000 | 14.44% | 9000 | 6.29% |  | —% | 12000 | 11381 | 8.52% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $62269 | 4.04% | $189535 | 4.08% | $80888 | 4.30% | $17393 | 4.00% | $350631 | $345667 | 4.12% |

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**Sources of Funds** 

***General.*** Deposits have traditionally been our primary source of funds for use in lending and investment activities. We also use borrowings, primarily Federal Home Loan Bank of Boston advances, to supplement cash flow needs, lengthen the maturities of liabilities for interest rate risk purposes and to manage the cost of funds. In addition, we receive funds from scheduled loan payments, loan prepayments, maturities, pre-payments and calls of securities, retained earnings and income on earning assets. While scheduled loan payments and income on earning assets are relatively stable sources of funds, deposit inflows and outflows can vary widely and are influenced by prevailing interest rates, market conditions and levels of competition.

***Deposits.*** Our deposits are generated primarily from residents within our primary market area. We offer a selection of deposit accounts, including non-interest-bearing checking accounts, interest-bearing checking accounts, money market accounts, savings accounts and certificates of deposit. Deposit account terms vary, with the principal differences being the minimum balance required, the amount of time the funds must remain on deposit and the interest rate. At March 31, 2026, our core deposits, which are deposits other than certificates of deposit, were $1.98 billion, representing 81.1% of total deposits at that date.

Interest rates, maturity terms, service fees and withdrawal penalties are established on a periodic basis. Deposit rates and terms are based primarily on current operating strategies and market rates, liquidity requirements, rates paid by competitors and growth goals. Our ability to gather deposits is impacted by the competitive market in which we operate, which includes numerous financial institutions of varying sizes offering a wide range of products. We believe that deposits are a stable source of funds, but our ability to attract and maintain deposits at favorable rates will be affected by market conditions, including competition and prevailing interest rates.

The following table sets forth the distribution of total deposits by account type at the dates indicated.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** |
|  | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Amount** | **Percent** | **Average<br>Rate** | **Amount** | **Percent** | **Average<br>Rate** | **Amount** | **Percent** | **Average<br>Rate** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Noninterest-bearing demand | $410188 | 16.6% | —% | $394297 | 16.3% | —% | $389186 | 16.7% | —% |
|  NOW accounts | 405801 | 16.5 | 0.01% | 404615 | 16.7 | 0.01% | 382877 | 16.5 | 1.27% |
|  Savings accounts | 291353 | 11.8 | 0.20% | 289179 | 11.9 | 0.21% | 292858 | 12.6 | 0.22% |
|  Money market accounts | 869170 | 35.2 | 2.88% | 812532 | 33.5 | 3.00% | 704796 | 30.3 | 3.46% |
|  Certificates of deposit | 490249 | 19.9 | 3.08% | 522683 | 21.6 | 3.37% | 556163 | 23.9 | 3.90% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $2466761 | 100.0% | 1.88% | $2423306 | 100.0% | 2.01% | $2325880 | 100.0% | 2.25% |

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As of March 31, 2026, December 31, 2025 and December 31, 2024, the aggregate amount of deposits we had in excess of $250,000, which is the maximum amount for federal deposit insurance, was $828.0 million, $828.3 million and $781.0 million, respectively. In addition, as of March 31, 2026, the aggregate amount of all our certificates of deposit in excess of $250,000 was $197.2 million. As described below, all of our deposits are fully insured under the DIF.

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The following table sets forth the maturity of our certificates of deposit in excess of $250,000 as of March 31, 2026

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| | |
|:---|:---|
| | **At**<br>**March 31, 2026** |
| | **(In thousands)** |
|  **Maturity Period:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Three months or less | $65933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Over three through six months | 77502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Over six through twelve months | 34049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Over twelve months | 19675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $197159 |

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All of our deposits are fully insured due to the additional insurance provided to a Massachusetts savings bank, such as BayCoast Bank, under the DIF, a private industry-sponsored insurance fund in Massachusetts that insures all deposits at BayCoast Bank above FDIC limits. DIF insurance applies to all traditional deposit accounts at member banks, including savings accounts, checking accounts, certificates of deposit, and money market accounts held by individuals, businesses and trusts, as well as government accounts. Coverage is not affected by where a depositor resides. The maximum amount of excess deposits the DIF insures for a financial institution is calculated annually based on the DIF's capital position. We expect that coverage under the DIF will continue after consummation of the reorganization and offering.

***Borrowed Funds.*** At March 31, 2026, we had $95.5 million outstanding in advances from the Federal Home Loan Bank of Boston. At March 31, 2026, we had the ability to borrow $498.2 million in additional Federal Home Loan Bank of Boston advances. At March 31, 2026, we also had a $7.0 million line of credit with the Federal Home Loan Bank of Boston, none of which was drawn at that date. Additionally, at March 31, 2026, we had a $162.7 million secured line of credit through the Federal Reserve Borrower in Custody program. We also have available unsecured lines of credit with correspondent banks at interest rates that adjust daily, with borrowing capacity of $25.0 million at March 31, 2026. In addition, we have an agreement with the AFX that provides us access to unsecured overnight borrowings with various counterparties. At March 31, 2026, we had a credit limit of $400.0 million. At March 31, 2026, no advances were outstanding under these lines of credit of the agreement with AFX.

***Subordinated Debt.*** At March 31, 2026, we had the following subordinated debt outstanding:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Issued Principal** | **Interest Rate** | **Maturity Date** | **Outstanding Principal** |
|  2022 Debt | $40000000 | 8.5% per annum until December 1, 2027, then current three-month SOFR plus 481 basis points | December 1, 2032 | $40000000 |
|  2021 Debt | $45000000 | The current three-month SOFR plus 319 basis points (reset to ___% on May 31, 2026) | May 15, 2031 | $45000000 |
|  2017 Debt | $25000000 | The current three-month SOFR plus 401.161 basis points (7.69% at March 31, 2026) | December 15, 2027 | $10000000 |

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**Properties** 

BayCoast Bank operates from its main office in Swansea, Massachusetts and 25 full-service branch banking offices in the South Coast of Massachusetts and the State of Rhode Island. Our subsidiary office locations are: BayCoast Insurance (seven offices in Massachusetts and Rhode Island), BayCoast Mortgage (four offices in Massachusetts), Stack Ally (one office in Massachusetts) Plimoth Investment Advisors (two offices in Massachusetts and one office in Connecticut), Priority Funding (one office in Massachusetts and one office in New York) and Teamwork Funding (one office in Arizona). As of March 31, 2026, the net book value of our real properties, including land, buildings and building improvements, was $40.8 million.

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**Subsidiary Activities** 

BayCoast Bank's active subsidiaries are BayCoast Mortgage, which originates and sells conforming and jumbo residential mortgages; Plimoth Investment Advisors, which provides investment management and trust services; BayCoast Insurance, an indirect subsidiary of BayCoast Bank, which provides insurance products to consumers and businesses; Priority Funding, which originates and sells manufactured home loans; and Teamwork Funding, a wholly owned subsidiary of Priority Funding, which provides broker lender services for manufactured home loans and primarily conducts business in Arizona; Troy Security Corporation and B.F.R. Corp., which buy, hold, and sell securities on their own behalf; Stack Ally, which has been established to provide data integration and automation solutions to organizations; BCBOZ Investments, LLC, which holds real estate property; and 1851 Corporation, which is authorized to hold investments and real estate property.

BayCoast Mortgage, a Massachusetts limited liability company, is a wholly owned subsidiary of BayCoast Bank. BayCoast Mortgage Company originates and sells conforming and jumbo residential mortgage loans, and operates in 11 states. For the three months ended March 31, 2026 and the year ended December 31, 2025, BayCoast Mortgage Company sold $181.5 million and $556.9 million of mortgage loans, respectively, generating $4.0 million and $12.7 million of mortgage banking revenue for those periods. For the three months ended March 31, 2026 and the year ended December 31, 2025, BayCoast Mortgage Company had net income of $1.1 million and $2.2 million, respectively.

Plimoth Investment Advisors, a Maine limited liability company, is a wholly owned subsidiary of BayCoast Bank. Its sole activity is to provide investment management and trust services to customers and businesses. At March 31, 2026, Plimoth Investment Advisors had approximately $1.07 billion in assets under management. For the three months ended March 31, 2026 and the year ended December 31, 2025, Plimoth Investment Advisors had net income of $317,000 and $1.1 million, respectively.

BayCoast Insurance, a Delaware limited liability company, is an indirect subsidiary of BayCoast Bank. It provides insurance products to consumers and businesses. For the three months ended March 31, 2026 and the year ended December 31, 2025, BayCoast Insurance generated $2.7 million and $10.8 million of insurance commissions, and had net income of $1.1 million and $2.2 million, respectively.

Priority Funding, a Massachusetts limited liability company, is a wholly owned subsidiary of BayCoast Bank, and Teamwork Funding, an Arizona corporation, is a wholly owned subsidiary of Priority Funding. Priority Funding originates and sells manufactured home loans, primarily with respect to homes located in manufactured housing communities and other leased-land settings, in 21 states, and Teamwork Funding provides broker lender services for manufactured home loans and primarily conducts business in Arizona. For the three months ended March 31, 2026 and the year ended December 31, 2025, on a combined basis, Priority Funding and Teamwork Funding had loan sales of $23.7 million and $129.6 million, generating $1.6 million and $9.0 million of gains on loan sales, revenue, respectively. For the three months ended March 31, 2026 and the year ended December 31, 2025, on a combined basis, Priority Funding and Teamwork Funding had loan fees of $170,000 and $1.0 million, and had net income of $219,000 and $4.3 million, respectively.

Troy Security Corporation and B.F.R. Corp. are Massachusetts securities corporations, which buy, hold, and sell securities on their own behalf. At March 31, 2026, on a combined basis, Troy Security Corporation and B.F.R. Corp. had assets of $75.0 million.

Stack Ally, a Delaware limited liability company, is a wholly owned subsidiary of BayCoast Bank. Stack Ally was formed in 2025, and has been established to provide data integration and automation solutions to organizations. Its platform enables system integration across multiple platforms supports workflow orchestration and automation, and incorporates embedded analytics and artificial intelligence capabilities. Because Stack Ally's products are deployed within client environments, the customer maintains control over data, infrastructure, and security, including with respect to regulatory and compliance requirements. For the three months ended March 31, 2026, Stack Ally had a net loss of $27,000. There was no activity as of December 31, 2025.

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BCBOZ Investments, LLC, a Massachusetts limited liability company, is a wholly owned subsidiary of BayCoast Bank. BCBOZ Investments, LLC was organized as an Opportunity Zone Fund and owns a building as an investment and has invested in improvements to the building. At March 31, 2026, BCBOZ Investments, LLC had assets of $5.9 million.

1851 Corporation, a Massachusetts corporation, is a wholly owned subsidiary of BayCoast Bank. 1851 Corporation is authorized to hold investments and real estate property, but at March 31, 2026, its only asset was $11.0 million in cash.

**Legal Proceedings** 

We are not involved in any pending legal proceedings as a plaintiff or defendant other than routine legal proceedings occurring in the ordinary course of business, and at March 31, 2026, we were not involved in any legal proceedings, the outcome of which would be material to our financial condition or results of operations.

**Personnel** 

As of March 31, 2026, we had 512 full-time and 34 part-time employees. Our employees are not represented by any collective bargaining group. Management believes that we have a good working relationship with our employees.

**TAXATION** 

We are subject to federal and state income taxation in the same general manner as other corporations, with some exceptions discussed below. The following discussion of federal and state taxation is intended only to summarize material income tax matters and is not a comprehensive description of the tax rules applicable to Narragansett Financial Corporation, Narragansett Bancorp, Inc. and BayCoast Bank.

Our federal and state tax returns have not been audited for the past five years.

**Federal Taxation** 

***Method of Accounting.*** For federal income tax purposes, Narragansett Bancorp, Inc. and BayCoast Bank will file a consolidated federal income tax return, and will report income and expenses on the accrual method of accounting and use a tax year ending December 31 for filing their federal income tax returns. We currently utilize the specific charge-off method under Section 166(a) of the Internal Revenue Code.

***Net Operating Loss Carryovers.*** Effective with the passage of the Tax Cuts and Jobs Act, net operating loss carrybacks are no longer permitted, and net operating losses are allowed to be carried forward indefinitely. Net operating loss carryforwards arising from tax years beginning after January 1, 2018 are limited to offset a maximum of 80% of a future year's taxable income.

***Capital Loss Carryovers.*** Generally, a financial institution may carry back capital losses to the preceding three taxable years and forward to the succeeding five taxable years. Any capital loss carryback or carryover is treated as a short-term capital loss for the year to which it is carried. As such, it is grouped with any other capital losses for the year to which carried and is used to offset any capital gains. Any loss remaining after the five-year carryover period that has not been deducted is no longer deductible. At March 31, 2026, BayCoast Bank had no capital loss carryovers.

***Corporate Dividends.*** Narragansett Bancorp, Inc. may generally exclude from its income 100% of dividends received from BayCoast Bank as a member of the same affiliated group of corporations.

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**State Taxation** 

Financial institutions in Massachusetts are required to file combined income tax returns. The Massachusetts excise tax rate for savings banks is currently 9.0% of federal taxable income, adjusted for certain items. Taxable income includes gross income as defined under the Internal Revenue Code, plus interest from bonds, notes and evidences of indebtedness of any state, including Massachusetts, less deductions, but not the credits, allowable under the provisions of the Internal Revenue Code, except for those deductions relating to dividends received and income or franchise taxes imposed by a state or political subdivision. Carryforwards and carrybacks of net operating losses and capital losses are not allowed.

A financial institution or business corporation is generally entitled to special tax treatment as a "security corporation" under Massachusetts law provided that: (a) its activities are limited to buying, selling, dealing in or holding securities on its own behalf and not as a broker; and (b) it has applied for, and received, classification as a "security corporation" by the Commissioner of the Massachusetts Department of Revenue. A security corporation that is also a bank holding company under the Internal Revenue Code must pay a tax equal to 0.33% of its gross income. A security corporation that is not a bank holding company under the Internal Revenue Code must pay a tax equal to 1.32% of its gross income. Our subsidiaries that engage in securities transactions on their own behalf, are qualified as security corporations. As such, each has received security corporation classification by the Massachusetts Department of Revenue; and does not conduct any activities deemed impermissible under the governing statutes and the various regulations, directives, letter rulings and administrative pronouncements issued by the Massachusetts Department of Revenue.

As a Maryland business corporation, Narragansett Bancorp, Inc. is required to file an annual report with and pay franchise taxes to the state of Maryland.

**SUPERVISION AND REGULATION** 

**General** 

BayCoast Bank is a Massachusetts-chartered savings bank. Our deposits are insured up to applicable limits by the FDIC and by the Depositors Insurance Fund for amounts in excess of the FDIC insurance limits. We are subject to extensive regulation by the Massachusetts Commissioner of Banks, as our chartering agency, and by the FDIC, as our primary federal regulator and primary deposit insurer. We are required to file reports with, and are periodically examined by, the FDIC and the Massachusetts Commissioner of Banks concerning our activities and financial condition and must obtain regulatory approvals prior to entering into certain transactions, including, but not limited to, mergers with or acquisitions of other financial institutions. BayCoast Bank is a member of the Federal Home Loan Bank of Boston.

The regulation and supervision of BayCoast Bank establish a comprehensive framework of activities in which an institution can engage and is intended primarily for the protection of depositors and borrowers and, for purposes of the FDIC, the protection of the insurance fund and not for the protection of investors. The regulatory structure also gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities and examination policies, including policies with respect to the classification of assets and the establishment of adequate loan loss reserves for regulatory purposes.

As bank holding companies, Narragansett Bancorp, Inc. and Narragansett Financial Corporation will be required to comply with the rules and regulations of the Federal Reserve Board. Each will be required to file certain reports with the Federal Reserve Board and will be subject to examination by and the enforcement authority of the Federal Reserve Board. Narragansett Bancorp, Inc. will also be subject to the rules and regulations of the Securities and Exchange Commission under the federal securities laws.

Any change in applicable laws or regulations, whether by the Massachusetts Commissioner of Banks, the FDIC, the Federal Reserve Board, the Commonwealth of Massachusetts or Congress, could have a material adverse impact on the operations and financial performance of Narragansett Bancorp, Inc. and BayCoast Bank. In addition,

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BayCoast Bank is affected by the monetary and fiscal policies of various agencies of the U.S. Government, including the Federal Reserve Board. In view of changing conditions in the national economy and in the money markets, it is impossible for management to accurately predict future changes in monetary policy or the effect of such changes on the business or financial condition of Narragansett Bancorp, Inc. and BayCoast Bank.

Set forth below is a brief description of material regulatory requirements that are or will be applicable to BayCoast Bank, Narragansett Bancorp, Inc. and Narragansett Financial Corporation. The description is limited to certain material aspects of the statutes and regulations addressed, and is not intended to be a complete description of such statutes and regulations and their effects on BayCoast Bank, Narragansett Bancorp, Inc. and Narragansett Financial Corporation.

**Massachusetts Banking Laws and Supervision** 

BayCoast Bank is regulated and supervised by the Massachusetts Commissioner of Banks. The Massachusetts Commissioner of Banks is required to regularly examine each state-chartered financial institution. The approval of the Massachusetts Commissioner of Banks is required to establish or close branches, to merge with another bank, to issue stock and to undertake many other activities. Any Massachusetts financial institution that does not operate in accordance with the regulations, policies and directives of the Massachusetts Commissioner of Banks may be sanctioned. The Massachusetts Commissioner of Banks may suspend or remove directors or officers of a financial institution who have violated the law, conducted a financial institution's business in a manner that is unsafe, unsound or contrary to the depositors' interests, or been negligent in the performance of their duties. In addition, the Massachusetts Commissioner of Banks has the authority to appoint a receiver or conservator if it is determined that the financial institution is conducting its business in an unsafe or unauthorized manner, and under certain other circumstances.

The powers that Massachusetts-chartered savings banks can exercise under these laws include, but are not limited to, the following.

***Lending Activities***. A Massachusetts-chartered savings bank may make a wide variety of mortgage loans including fixed-rate loans, adjustable-rate loans, variable-rate loans, participation loans, graduated payment loans, construction and development loans, condominium and co-operative loans, second mortgage loans and other types of loans that may be made in accordance with applicable regulations. Commercial loans may be made to corporations and other commercial enterprises with or without security. Consumer and personal loans may also be made with or without security.

***Insurance Sales***. Massachusetts savings banks may engage in insurance sales activities if the Massachusetts Commissioner of Banks has approved a plan of operation for insurance activities and the bank obtains a license from the Massachusetts Division of Insurance. A savings bank may be licensed directly or indirectly through an affiliate or a subsidiary corporation established for this purpose. BayCoast Bank does not offer insurance products.

***Investment Activities***. In general, as a matter of state law, Massachusetts-chartered savings banks may invest in preferred and common stock of any corporation organized under the laws of the United States or any state provided such investments do not involve control of any corporation and do not, in the aggregate, exceed 4.0% of the bank's deposits. Massachusetts-chartered savings banks may in addition, under state law, invest an amount equal to 1.0% of their deposits in stocks of Massachusetts corporations or companies with substantial employment in the Commonwealth which have pledged to the Massachusetts Commissioner of Banks that such monies will be used for further development within the Commonwealth. At the present time, BayCoast Bank has the authority under state law to invest in equity securities. However, such investment authority is constrained by federal law. See "—Federal Bank Regulation—Investment Activities" for such federal restrictions.

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***Dividends***. A Massachusetts stock bank may declare from net profits cash dividends not more frequently than quarterly and non-cash dividends at any time. No dividends may be declared, credited or paid if the bank's capital stock is impaired. A Massachusetts savings bank with outstanding preferred stock may not, without the prior approval of the Commissioner of Banks, declare dividends on the common stock without also declaring dividends on the preferred stock. The approval of the Massachusetts Commissioner of Banks is required if the total of all dividends declared in any calendar year exceeds the total of its net profits for that year combined with its retained net profits from the preceding two years, less any required transfer to surplus or a fund for the retirement of any preferred stock. For this purpose, net profits means the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets after deducting current operating expenses, actual losses, accrued dividends on preferred stock, if any, and all federal and state taxes.

***Protection of Personal Information***. Massachusetts has adopted regulatory requirements intended to protect personal information. The requirements are similar to existing federal laws such as the Gramm-Leach-Bliley Act, discussed below under "—Federal Bank Regulation—Privacy Regulations." They require organizations to establish written information security programs to prevent identity theft. The Massachusetts regulations also contain technology system requirements, especially for the encryption of personal information sent over wireless or public networks or stored on portable devices.

***Parity Approval***. A Massachusetts savings bank may, in accordance with Massachusetts law, exercise any power and engage in any activity that has been authorized for national banks, federal thrifts or state banks in a state other than Massachusetts, provided that the activity is permissible under applicable federal law and not specifically prohibited by Massachusetts law. Such powers and activities must be subject to the same limitations and restrictions imposed on the national bank, federal thrift or out-of-state bank that exercised the power or activity. A Massachusetts savings bank may exercise such powers and engage in such activities by providing 30 days' advanced written notice to the Massachusetts Commissioner of Banks.

***Loans to One Borrower Limitations***. Massachusetts banking law grants broad lending authority. However, with certain limited exceptions, total obligations of one borrower to a savings bank may not exceed 20% of the bank's total capital, which is defined under Massachusetts law as the sum of capital stock, surplus account and undivided profits.

***Loans to a Bank's Insiders***. Massachusetts law provides that a Massachusetts financial institution shall comply with Regulation O of the Federal Reserve Board, which generally requires that extensions of credit to insiders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less
stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not exceed certain limitations on the amount of credit extended to such persons, individually and in the
aggregate, which limits are based, in part, on the amount of the Massachusetts financial institution's capital.

***Regulatory Enforcement Authority***. Any Massachusetts bank that does not operate in accordance with the regulations, policies and directives of the Massachusetts Commissioner of Banks may be subject to sanctions for non-compliance, including seizure of the property and business of the bank and suspension or revocation of its charter. The Massachusetts Commissioner of Banks may, under certain circumstances, suspend or remove officers or directors who have violated the law, conducted the bank's business in a manner which is unsafe, unsound or contrary to the depositors' interests or been negligent in the performance of their duties. In addition, upon finding that a bank has engaged in an unfair or deceptive act or practice, the Massachusetts Commissioner of Banks may issue an order to cease and desist and impose a fine on the bank concerned. Massachusetts consumer protection and civil rights statutes applicable to Massachusetts savings banks permit private individual and class action lawsuits and provide for the rescission of consumer transactions, including loans, and the recovery of statutory and punitive damage and attorney's fees in the case of certain violations of those statutes.

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***Depositors Insurance Fund***. BayCoast Bank is a member of the Depositors Insurance Fund, a corporation that insures Massachusetts savings bank and cooperative bank deposits in excess of federal deposit insurance coverage. The Depositors Insurance Fund is authorized to charge savings banks a risk-based assessment on deposit balances in excess of the amounts insured by the FDIC.

Massachusetts has other statutes and regulations that are similar to the federal provisions discussed below.

**Federal Bank Regulation** 

***Capital Requirements.*** Federal regulations require FDIC-insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, a total capital to risk-based assets ratio of 8%, and a Tier 1 capital to average assets leverage ratio of 4%.

For purposes of the regulatory capital requirements, common equity Tier 1 capital is generally defined as common stockholders' equity and retained earnings. Tier 1 capital is generally defined as common equity Tier 1 and additional Tier 1 capital. Additional Tier 1 capital includes certain noncumulative perpetual preferred stock and related surplus and minority interests in equity accounts of consolidated subsidiaries. Total capital includes Tier 1 capital (common equity Tier 1 capital plus additional Tier 1 capital) and Tier 2 capital. Tier 2 capital is comprised of capital instruments and related surplus, meeting specified requirements, and may include cumulative preferred stock and long-term perpetual preferred stock, mandatory convertible securities, intermediate preferred stock and subordinated debt. Also included in Tier 2 capital is the allowance for credit losses limited to a maximum of 1.25% of risk-weighted assets and, for institutions that made such an election regarding the treatment of Accumulated Other Comprehensive Income ("AOCI"), up to 45% of net unrealized gains on available-for-sale equity securities with readily determinable fair market values. Institutions that have not exercised the AOCI opt-out have AOCI incorporated into common equity Tier 1 capital (including unrealized gains and losses on available-for-sale-securities). BayCoast Bank has exercised the opt-out and therefore does not include AOCI in its regulatory capital determinations. Calculation of all types of regulatory capital is subject to deductions and adjustments specified in the regulations.

In determining the amount of risk-weighted assets for purposes of calculating risk-based capital ratios, all assets, including certain off-balance sheet assets (<u>e.g.</u>, recourse obligations, direct credit substitutes, residual interests) are multiplied by a risk weight factor assigned by the regulations based on the risks believed inherent in the type of asset. Higher levels of capital are required for asset categories believed to present greater risk. For example, a risk weight of 0% is assigned to cash and U.S. government securities, a risk weight of 50% is generally assigned to prudently underwritten first lien one- to four-family residential mortgages, a risk weight of 100% is assigned to commercial and consumer loans, a risk weight of 150% is assigned to certain past due loans and a risk weight of between 0% to 600% is assigned to permissible equity interests, depending on certain specified factors.

In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a "capital conservation buffer" consisting of 2.5% of common equity Tier 1 capital to risk-weighted asset above the amount necessary to meet its minimum risk-based capital requirements. However, the capital conservation buffer does not apply to institutions who have opted into the community bank leverage ratio, described below.

The federal banking agencies, including the FDIC, are required to establish a "community bank leverage ratio" ("CBLR") of between 8% to 10% of average total consolidated assets for qualifying institutions with assets of less than $10 billion. Institutions with capital meeting the specified requirements and electing to follow the alternative framework are deemed to comply with the applicable regulatory capital requirements, including the risk-based requirements. A qualifying institution may opt in and out of the community bank leverage ratio on its quarterly call report. The current optional community bank leverage ratio has been established at 9%, and will decrease to 8% as of July 1, 2026. As of March 31, 2026, BayCoast Bank had not opted into the CBLR framework.

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The FDIC, along with the other federal banking agencies, adopted a policy statement providing that the agencies will take into account the exposure of a bank's capital and economic value to changes in interest rate risk in assessing a bank's capital adequacy. The FDIC also has authority to establish individual minimum capital requirements in appropriate cases upon determination that an institution's capital level is, or is likely to become, inadequate in light of the particular circumstances.

As of March 31, 2026, BayCoast Bank was a "well capitalized" institution under the FDIC regulations.

***Standards for Safety and Soundness.*** As required by statute, the federal banking agencies have adopted final regulations and guidelines to implement safety and soundness standards. The guidelines set forth the safety and soundness standards that the federal banking agencies use to identify and address problems at insured depository institutions before capital becomes impaired. The guidelines address internal controls and information systems, internal audit system, credit underwriting, loan documentation, interest rate exposure, asset growth, asset quality, earnings and compensation, fees and benefits. The agencies have also established standards for safeguarding customer information. If the appropriate federal banking agency determines that an institution fails to meet any standard prescribed by the guidelines, the agency may require the institution to submit to the agency an acceptable plan to achieve compliance with the standard. Failure to implement such a plan can result in further enforcement action, including the issuance of a cease and desist order and/or the imposition of civil money penalties.

***Investment Activities****.* All state-chartered FDIC insured banks, including savings banks, are generally limited in their activities as principal and equity investments to activities and equity investments of the type and in the amount authorized for national banks, notwithstanding state law, subject to certain exceptions. The FDIC is authorized to permit a state-chartered bank to engage in state-authorized activities or investments not permissible for national banks (other than non-subsidiary equity investments) if it meets all applicable capital requirements and it is determined that such activities or investments do not pose a significant risk to the insurance fund. For example, state-chartered banks may, with FDIC approval, continue to exercise state authority to invest in common or preferred stocks listed on a national securities exchange and in shares of an investment company registered under applicable regulations, or the maximum amount permitted by Massachusetts law, whichever is less. The FDIC has adopted procedures for institutions seeking approval to engage in such activities or investments. In addition, a state nonmember bank may control a subsidiary that engages in activities as principal that would only be permitted for a national bank to conduct in a "financial subsidiary" if the bank meets specified conditions and deducts its investment in the subsidiary for regulatory capital purposes.

***Interstate Banking and Branching.*** Federal law permits well capitalized and well managed bank holding companies to acquire banks in any state, subject to Federal Reserve Board approval, certain concentration limits and other specified conditions. Interstate mergers of banks are also authorized, subject to regulatory approval and other specified conditions. In addition, banks may establish *de novo* branches on an interstate basis to the extent that branching is authorized by the law of the host state for the banks chartered by that state.

***Prompt Corrective Regulatory Action.*** Federal law requires, among other things, that federal bank regulatory authorities take "prompt corrective action" with respect to banks that do not meet minimum capital requirements. For these purposes, the law establishes five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized.

The FDIC has adopted regulations to implement the prompt corrective action legislation. An institution is deemed to be "well capitalized" if it has a CBLR leverage ratio of 9.0% or greater (decreasing to 8.0% as of July 1, 2026), or a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, a leverage ratio of 5.0% or greater and a common equity Tier 1 ratio of 6.5% or greater. An institution is "adequately capitalized" if it has a total risk-based capital ratio of 8.0% or greater, a Tier 1 risk-based capital ratio of 6.0% or greater, a leverage ratio of 4.0% or greater and a common equity Tier 1 ratio of 4.5% or greater. An institution is "undercapitalized" if it has a total risk-based capital ratio of less than 8.0%, a Tier 1 risk-based capital ratio of less than 6.0%, a leverage ratio of less than 4.0% or a common equity Tier 1 ratio of less than 4.5%. An institution is deemed to be "significantly undercapitalized" if it has a total risk-based capital ratio of less than 6.0%, a Tier 1 risk-based capital ratio of less than 4.0%, a leverage ratio of less than 3.0% or a common equity Tier 1 ratio of less than 3.0%. An institution is considered to be "critically undercapitalized" if it has a ratio of tangible equity (as defined in the regulations) to total assets that is equal to or less than 2.0%. As of March 31, 2026, BayCoast Bank was a "well capitalized" institution under the FDIC regulations.

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At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions on payment of dividends, and restrictions on the acceptance of brokered deposits. Furthermore, if an insured depository institution is classified in one of the undercapitalized categories, it is required to submit a capital restoration plan to the appropriate federal banking agency, and the holding company must guarantee the performance of that plan in an amount equal to the lesser of 5.0% of the institution's total assets when deemed undercapitalized or the amount necessary to achieve the status of adequately capitalized. Based upon its capital levels, a bank that is classified as well-capitalized, adequately capitalized, or undercapitalized may be treated as though it were in the next lower capital category if the appropriate federal banking agency, after notice and opportunity for hearing, determines that an unsafe or unsound condition, or an unsafe or unsound practice, warrants such treatment. If an "undercapitalized" bank fails to submit an acceptable plan, it is treated as if it is "significantly undercapitalized." "Significantly undercapitalized" banks must comply with one or more of a number of additional restrictions, including but not limited to an order by the FDIC to sell sufficient voting stock to become adequately capitalized, requirements to reduce total assets, cease receipt of deposits from correspondent banks or dismiss directors or officers, and restrictions on interest rates paid on deposits, compensation of executive officers and capital distributions by the parent holding company. "Critically undercapitalized" institutions are subject to additional measures including, subject to a narrow exception, the appointment of a receiver or conservator within 270 days after it obtains such status.

***Transaction with Affiliates and Regulation W of the Federal Reserve Regulations.*** Transactions between banks and their affiliates are governed by federal law. An affiliate of a bank is any company or entity that controls, is controlled by or is under common control with the bank. In a holding company context, the parent bank holding company and any companies which are controlled by such parent holding company are affiliates of the bank (although subsidiaries of the bank itself, except financial subsidiaries, are generally not considered affiliates). Generally, Section 23A of the Federal Reserve Act and the Federal Reserve Board's Regulation W limit the extent to which the bank or its subsidiaries may engage in "covered transactions" with any one affiliate to an amount equal to 10% of such institution's capital stock and surplus, and with all such transactions with all affiliates to an amount equal to 20% of such institution's capital stock and surplus. Section 23B applies to "covered transactions" as well as to certain other transactions and requires that all such transactions be on terms substantially the same, or at least as favorable, to the institution or subsidiary as those provided to a non-affiliate. The term "covered transaction" includes the making of loans to, purchase of assets from, and issuance of a guarantee to an affiliate, and other similar transactions. Section 23B transactions also include the provision of services and the sale of assets by a bank to an affiliate. In addition, loans or other extensions of credit by the financial institution to the affiliate are required to be collateralized in accordance with the requirements set forth in Section 23A of the Federal Reserve Act.

Sections 22(h) and (g) of the Federal Reserve Act place restrictions on loans to a bank's insiders, i.e., executive officers, directors and principal stockholders. Under Section 22(h) of the Federal Reserve Act, loans to a director, an executive officer and to a greater-than-10% stockholder of a financial institution, and certain affiliated interests of these, together with all other outstanding loans to such person and affiliated interests, may not exceed specified limits. Section 22(h) of the Federal Reserve Act also requires that loans to directors, executive officers and principal stockholders be made on terms and conditions substantially the same as offered in comparable transactions to persons who are not insiders and also requires prior board approval for certain loans. In addition, the aggregate amount of extensions of credit by a financial institution to insiders cannot exceed the institution's unimpaired capital and surplus. Section 22(g) of the Federal Reserve Act places additional restrictions on loans to executive officers.

***Enforcement.*** The FDIC has extensive enforcement authority over insured state savings banks. The enforcement authority includes, among other things, the ability to assess civil money penalties, issue cease and desist orders and remove directors and officers. In general, these enforcement actions may be initiated in response to violations of laws and regulations, breaches of fiduciary duty and unsafe or unsound practices. The FDIC is required, with certain exceptions, to appoint a receiver or conservator for an insured state savings bank if that bank

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was "critically undercapitalized" on average during the calendar quarter beginning 270 days after the date on which the institution became "critically undercapitalized." The FDIC may also appoint itself as conservator or receiver for an insured state savings bank under specified circumstances, including: (1) insolvency; (2) substantial dissipation of assets or earnings through violations of law or unsafe or unsound practices; (3) existence of an unsafe or unsound condition to transact business; (4) insufficient capital; or (5) the incurrence of losses that will deplete substantially all of the institution's capital with no reasonable prospect of replenishment without federal assistance.

***Federal Insurance of Deposit Accounts.*** BayCoast Bank is a member of the Deposit Insurance Fund, which is administered by the FDIC. Deposit accounts in BayCoast Bank are insured up to a maximum of $250,000 for each separately insured depositor.

The FDIC imposes an assessment for deposit insurance on all depository institutions. Under the FDIC's risk-based assessment system, insured institutions deemed less risky of failure pay lower assessments.

Assessment rates (inclusive of possible adjustments) for most banks with less than $10 billion of assets are based on a formula using financial data and supervisory ratings, and currently range from 2.5 to 32 basis points of each institution's total assets less tangible capital.

The FDIC has authority to increase insurance assessments. A significant increase in insurance premiums would likely have an adverse effect on the operating expenses and results of operations of BayCoast Bank. Future insurance assessment rates cannot be predicted.

Insurance of deposits may be terminated by the FDIC upon a finding that the institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, rule order or regulatory condition imposed in writing. We do not know of any practice, condition or violation that might lead to termination of deposit insurance.

***Privacy Regulations.*** FDIC regulations generally require that we disclose our privacy policy, including identifying with whom we share a customer's "non-public personal information," to customers at the time of establishing the customer relationship and annually thereafter. In addition, we are required to provide our customers with the ability to "opt-out" of having their personal information shared with unaffiliated third parties and not to disclose account numbers or access codes to non-affiliated third parties for marketing purposes. We currently have privacy protection policies in place and believe that such policies are in compliance with the regulations.

***Cyber Security*.** The federal banking agencies have adopted rules providing for notification requirements for banking organizations and their service providers for significant cybersecurity incidents. A banking organization is required to notify its primary federal regulator as soon as possible, and no later than 36 hours after the banking organization determines that a "computer-security incident" rising to the level of a "notification incident" has occurred. Notification is required for incidents that have materially disrupted or degraded, or are reasonably likely to materially disrupt or degrade, the banking organization's ability to carry out banking operations, activities, or processes or to deliver banking products and services in the ordinary course, or operations the failure of which would threaten the stability of the financial sector. Service providers are required under the rule to notify affected banking organization customers as soon as possible when the provider determines that it has experienced a computer-security incident that has materially affected or is reasonably likely to materially affect the banking organization's customers for four or more hours.

***Community Reinvestment Act.*** Under the Community Reinvestment Act, or CRA, as implemented by FDIC regulations, a savings bank has a continuing and affirmative obligation, consistent with its safe and sound operation, to help meet the credit needs of its entire community, including low- and moderate-income neighborhoods. The CRA does not establish specific lending requirements or programs for financial institutions nor does it limit an institution's discretion to develop the types of products and services that it believes are best suited to its particular community, consistent with the CRA. The CRA does require the FDIC, in connection with its examination of a bank it regulates, to assess the institution's record of meeting the credit needs of its community and to take such record into account in its evaluation of certain applications by such institution, including applications to acquire branches and other financial institutions. The CRA requires the FDIC to provide a written evaluation of an institution's CRA performance utilizing a four-tiered descriptive rating system. BayCoast Bank's latest FDIC CRA rating was "Satisfactory."

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Massachusetts has its own statutory counterpart to the CRA which is also applicable to BayCoast Bank. The Massachusetts version is generally similar to the CRA but utilizes a five-tiered descriptive rating system. Massachusetts law requires the Massachusetts Commissioner of Banks to consider, but not be limited to, a bank's record of performance under Massachusetts law in considering any application by the bank to establish a branch or other deposit-taking facility, to relocate an office or to merge or consolidate with or acquire the assets and assume the liabilities of any other banking institution. BayCoast Bank's most recent rating under Massachusetts law was "Satisfactory."

***Consumer Protection and Fair Lending Regulations.*** Massachusetts financial institutions are subject to a variety of federal and Massachusetts statutes and regulations that are intended to protect consumers and prohibit discrimination in the granting of credit. These statutes and regulations provide for a range of sanctions for non-compliance with their terms, including imposition of administrative fines and remedial orders, and referral to the Attorney General for prosecution of a civil action for actual and punitive damages and injunctive relief. Certain of these statutes authorize private individual and class action lawsuits and the award of actual, statutory and punitive damages and attorneys' fees for certain types of violations.

***Bank Secrecy Act, USA PATRIOT Act and Anti-Money Laundering Regulations.*** BayCoast Bank is subject to federal anti-money laundering and anti-terrorist financing laws, including the Bank Secrecy Act ("BSA") and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the "USA PATRIOT Act") and those laws' implementing regulations issued by FinCEN. The USA PATRIOT Act provides federal agencies the power to address money laundering and terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing, and broadened anti-money laundering requirements. The USA PATRIOT Act has also implemented measures intended to encourage information sharing among bank regulatory agencies and law enforcement bodies. Together, the BSA and USA PATRIOT Act impose affirmative obligations on a broad range of financial institutions, including banks, thrifts, brokers, dealers, credit unions, money transfer agents and parties registered under the Commodity Exchange Act. The BSA and the USA PATRIOT Act, and their implementing regulations also require banks to: establish anti-money laundering compliance programs that include policies, procedures and internal controls, the appointment of an anti-money laundering compliance officer, a training program, independent testing, and customer due diligence; file certain reports with FinCEN and law enforcement that are designed to assist in the direction and prevention of money laundering and terrorist financing activities; establish programs specifying procedures for obtaining and maintaining certain records from customers seeking to open new accounts, including verifying the identity of customers; in certain circumstances, comply with enhanced due diligence policies, procedures and controls designed to detect and review for certain high risk customers or accounts. The USA PATRIOT Act also includes prohibitions on correspondent accounts for foreign shell banks and requires compliance with record keeping obligations with respect to correspondent accounts of foreign banks.

**Other Laws and Regulations** 

Interest and other charges collected or contracted for by financial institutions are subject to state usury laws and federal laws concerning interest rates. Loan operations are also subject to state and federal laws applicable to credit transactions, such as the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and
public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Real Estate Settlement Procedures Act, requiring that borrowers for mortgage loans for one- to four-family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that
increase the cost of settlement services;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors
in extending credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fair Debt Collection Practices Act, governing the manner in which consumer debts may be collected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Massachusetts Debt Collection Regulations, establishing standards, by defining unfair or deceptive acts or
practices, for the collection of debts from persons within the Commonwealth of Massachusetts and the General Laws of Massachusetts, Chapter 167E, which governs our lending powers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rules and regulations of the various federal and state agencies charged with the responsibility of implementing
such federal and state laws.

Our deposit operations also are subject to, among others, the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records
and prescribes procedures for complying with administrative subpoenas of financial records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Check Clearing for the 21st Century Act (also known as "Check 21"), which gives "substitute
checks," such as digital check images and copies made from that image, the same legal standing as the original paper check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and
withdrawals from deposit accounts and customers' rights and liabilities arising from the use of automated teller machines and other electronic banking services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• General Laws of Massachusetts, Chapter 167D, which governs deposit powers.

**Federal Home Loan Bank System** 

BayCoast Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks. Each Federal Home Loan Bank provides a central credit facility primarily for member institutions. Members of the Federal Home Loan Bank are required to acquire and hold shares of capital stock in the Federal Home Loan Bank. We were in compliance with this requirement at March 31, 2026. Based on redemption provisions of the Federal Home Loan Bank of Boston, the stock has no quoted market value and is carried at cost. We review our Federal Home Loan Bank stock for impairment based on the ultimate recoverability of its cost basis. As of March 31, 2026, no impairment has been recognized.

At its discretion, the Federal Home Loan Bank of Boston may declare dividends on their stock. The Federal Home Loan Banks are required to provide funds for certain purposes including, for example, contributing funds for affordable housing programs. These requirements could reduce the amount of dividends that the Federal Home Loan Banks pay to their members and result in the Federal Home Loan Banks imposing a higher rate of interest on advances to their members. In 2025, the Federal Home Loan Bank of Boston paid dividends equal to an annual yield of 7.47%. There can be no assurance that such dividends will continue in the future.

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**Holding Company Regulation** 

***General*.** Upon completion of the reorganization, Narragansett Bancorp, Inc. will be subject to examination, regulation, and periodic reporting under the Bank Holding Company Act, as administered by the Federal Reserve Board. Narragansett Bancorp, Inc. will be required to obtain the prior approval of the Federal Reserve Board to acquire all, or substantially all, of the assets of any bank or bank holding company. Prior Federal Reserve Board approval would be required for Narragansett Bancorp, Inc. to acquire direct or indirect ownership or control of any voting securities of any bank or bank holding company if, after such acquisition, it would, directly or indirectly, own or control more than 5% of any class of voting shares of the bank or bank holding company. In addition to the approval of the Federal Reserve Board, prior approval may also be necessary from other agencies having supervisory jurisdiction over the bank to be acquired before any bank acquisition can be completed.

***Permissible Activities.*** A bank holding company is generally prohibited from engaging in non-banking activities, or acquiring direct or indirect control of more than 5% of the voting securities of any company engaged in non-banking activities. One of the principal exceptions to this prohibition is for activities found by the Federal Reserve Board to be so closely related to banking or managing or controlling banks as to be a proper incident thereto. Some of the principal activities that the Federal Reserve Board has determined by regulation to be so closely related to banking are: (i) making or servicing loans; (ii) performing certain data processing services; (iii) providing discount brokerage services; (iv) acting as fiduciary, investment or financial advisor; (v) leasing personal or real property; (vi) making investments in corporations or projects designed primarily to promote community welfare; and (vii) acquiring a savings and loan association whose direct and indirect activities are limited to those permitted for bank holding companies.

The Gramm-Leach-Bliley Act authorized a bank holding company that meets specified conditions, including being "well capitalized" and "well managed," to opt to become a "financial holding company" and thereby engage in a broader array of financial activities than previously permitted. Such activities can include insurance underwriting and investment banking. We do not expect to opt into financial holding company status.

***Stock Repurchases.*** A bank holding company is generally required to give the Federal Reserve Board prior written notice of any purchase or redemption of then outstanding equity securities if the gross consideration for the purchase or redemption, when combined with the net consideration paid for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of the company's consolidated net worth. The Federal Reserve Board may disapprove such a purchase or redemption if it determines that the proposal would constitute an unsafe and unsound practice, or would violate any law, regulation, Federal Reserve Board order or directive, or any condition imposed by, or written agreement with, the Federal Reserve Board. There is an exception to this approval requirement for well-capitalized bank holding companies that meet certain other conditions.

***Capital Distributions.*** The Federal Reserve Board has issued a policy statement regarding capital distributions, including dividends, by bank holding companies. In general, the Federal Reserve Board's policies provide that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the bank holding company appears consistent with the organization's capital needs, asset quality and overall financial condition. The Federal Reserve Board's policies also require that a bank holding company serve as a source of financial strength to its subsidiary bank by standing ready to use available resources to provide adequate capital funds to the bank during periods of financial stress or adversity and by maintaining the financial flexibility and capital-raising capacity to obtain additional resources for assisting its subsidiary bank where necessary. The Dodd-Frank Act codified the source of strength doctrine. Under the prompt corrective action laws, the ability of a bank holding company to pay dividends may be restricted if a subsidiary bank becomes undercapitalized. In addition, the Federal Reserve Board has issued guidance that requires consultation with the agency prior to a bank holding company's payment of dividends or repurchase of stock under certain circumstances. These regulatory policies could affect the ability of Narragansett Bancorp, Inc. to pay dividends, repurchase its stock or otherwise engage in capital distributions.

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***Massachusetts Holding Company Regulation.*** Under Massachusetts banking laws, a company owning or controlling two or more banking institutions, including a savings bank, is regulated as a bank holding company. The term "company" is defined by the Massachusetts banking laws similarly to the definition of "company" under the Bank Holding Company Act. Each Massachusetts bank holding company: (i) must obtain the approval of the Massachusetts Board of Bank Incorporation before engaging in certain transactions, such as the acquisition of more than 5% of the voting stock of another banking institution; (ii) must register, and file reports, with the Massachusetts Commissioner of Banks; and (iii) is subject to examination by the Massachusetts Commissioner of Banks. Narragansett Bancorp, Inc. will only be regulated as a bank holding company for purposes of Massachusetts law if it acquires and controls one or more banking institutions in addition to BayCoast Bank.

***Capital.*** Consolidated regulatory capital requirements identical to those applicable to the subsidiary banks generally apply to bank holding companies. However, the Federal Reserve Board has provided a "small bank holding company" exception to its consolidated capital requirements, and subsequent legislation and the related issuance of regulations by the Federal Reserve Board have increased the threshold for the exception to $3.0 billion of consolidated assets. Consequently, certain bank holding companies with less than $3.0 billion of consolidated assets are not subject to the consolidated holding company regulatory capital requirements unless otherwise directed by the Federal Reserve Board. As a result, as of March 31, 2026, Narragansett Bancorp, Inc. was not subject to the capital requirements.

***Source of Strength.*** The Federal Reserve Board has issued regulations requiring that all bank holding companies serve as a source of financial and managerial strength to their subsidiary depository institutions.

***Waivers of Dividends by Narragansett Financial Corporation.*** Narragansett Bancorp, Inc. may pay dividends on its common stock to public stockholders. If it does, it is also required to pay dividends to Narragansett Financial Corporation, unless Narragansett Financial Corporation elects to waive the receipt of dividends. Current Federal Reserve Board policy restricts a mutual holding company that is regulated as a bank holding company from waiving the receipt of dividends paid by its subsidiary holding company. Accordingly, it is unlikely that Narragansett Financial Corporation would be able to waive the receipt of dividends paid by Narragansett Bancorp, Inc.

**Change in Control Regulations** 

Under the Change in Bank Control Act, no person, or group of persons acting in concert, may acquire control of a bank holding company such as Narragansett Bancorp, Inc. unless the Federal Reserve Board has been given 60 days' prior written notice and not disapproved the proposed acquisition. The Federal Reserve Board considers several factors in evaluating a notice, including the financial and managerial resources of the acquirer and competitive effects. Control, as defined under the applicable regulations, means the power, directly or indirectly, to direct the management or policies of the company or to vote 25% or more of any class of voting securities of the company. Acquisition of 10% or more of any class of a bank holding company's voting securities constitutes a rebuttable presumption of control under certain circumstances, including where, as will be the case with Narragansett Bancorp, Inc., the issuer has registered securities under Section 12 of the Securities Exchange Act of 1934.

In addition, federal regulations provide that no company may acquire control of a bank holding company without the prior approval of the Federal Reserve Board. Control, as defined under the Bank Holding Company Act and Federal Reserve Board regulations, means ownership, control or power to vote 25% or more of any class of voting stock, control in any manner over the election of a majority of the company's directors, or a determination by the Federal Reserve Board that the acquiror has the power to exercise, directly or indirectly, a controlling influence over the management or policies of the company. Any company that acquires such control becomes a "bank holding company" subject to registration, examination and regulation by the Federal Reserve Board. Relevant factors concerning when a company exercises a controlling influence over a bank or bank holding company include the company's voting and nonvoting equity investment in the bank or bank holding company, director, officer and employee overlap and the scope of business relationships between the company and bank or bank holding company. In addition, a bank holding company must obtain Federal Reserve Board approval before acquiring ownership or control of 5% or more of any class of voting stock of a bank or another bank holding company.

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**Federal Securities Laws** 

Narragansett Bancorp, Inc. common stock will be registered with the Securities and Exchange Commission after the offering. Narragansett Bancorp, Inc. will be subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934.

The registration under the Securities Act of 1933 of shares of common stock issued in the offering does not cover the resale of those shares. Shares of common stock purchased by persons who are not affiliates of Narragansett Bancorp, Inc. may be resold without registration. Shares purchased by an affiliate of Narragansett Bancorp, Inc. will be subject to the resale restrictions of Rule 144 under the Securities Act of 1933. If Narragansett Bancorp, Inc. meets the current public information requirements of Rule 144 under the Securities Act of 1933, each affiliate of Narragansett Bancorp, Inc. that complies with the other conditions of Rule 144, including those that require the affiliate's sale to be aggregated with those of other persons, would be able to sell in the public market, without registration, a number of shares not to exceed, in any three-month period, the greater of 1% of the outstanding shares of Narragansett Bancorp, Inc., or the average weekly volume of trading in the shares during the preceding four calendar weeks.

**Sarbanes-Oxley Act** 

The Sarbanes-Oxley Act is intended to improve corporate responsibility, to provide for enhanced penalties for accounting and auditing improprieties at publicly traded companies and to protect investors by improving the accuracy and reliability of corporate disclosures pursuant to the securities laws. Upon completion of the reorganization, Narragansett Bancorp, Inc. will adopt policies, procedures and systems that are designed to comply with these regulations.

**Emerging Growth Company Status** 

Narragansett Bancorp, Inc. is an "emerging growth company." For as long as it continues to be an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to emerging growth companies, including, but not limited to, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. As an emerging growth company, Narragansett Bancorp, Inc. also will not be subject to Section 404(b) of the Sarbanes-Oxley Act, which would require that its independent auditors review and attest as to the effectiveness of its internal control over financial reporting. Narragansett Bancorp, Inc. has also elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Such an election is irrevocable during the period a company is an emerging growth company. Accordingly, its financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.

A company loses emerging growth company status on the earlier of: (1) the last day of the fiscal year of the company during which it had total annual gross revenues of $1.235 billion or more; (2) the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the company pursuant to an effective registration statement under the Securities Act of 1933; (3) the date on which such company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (4) the date on which such company is deemed to be a "large accelerated filer" under Securities and Exchange Commission regulations (generally, at least $700 million of voting and non-voting equity held by non-affiliates).

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**MANAGEMENT** 

**Our Directors** 

The board of directors of Narragansett Bancorp, Inc. consists of 13 members. Directors serve three-year staggered terms so that approximately one-third of the directors will be elected at each annual meeting of stockholders. Because Narragansett Financial Corporation will own a majority of our outstanding common stock, we will be a "controlled company" within the meaning of the Nasdaq Stock Market corporate governance guidelines. As a "controlled company," we will be exempt from certain requirements, including that a majority of our board of directors be independent under those standards, and that executive compensation and director nominations be overseen by independent directors.

The following sets forth certain information regarding the members of our board of directors, and executive officers who are not directors, including the terms of office of board members. Except as indicated herein, there are no arrangements or understandings between any director and any other person pursuant to which the director was selected. Age information is as of December 31, 2025.

With respect to directors, the biographies contain information regarding the person's business experience and the experiences, qualifications, attributes or skills that caused the board of directors to determine that the person should serve as a director.

All of our directors are long-time residents of the communities we serve and many of such individuals have operated, or currently operate, businesses located in such communities. As a result, each of our directors has significant knowledge of the businesses that operate in our market area, an understanding of the general real estate market, values and trends in such communities and an understanding of the overall demographics of such communities. As the holding company for community banking institutions, we believe that the local knowledge and experience of our directors assists us in assessing the credit and banking needs of our customers, in developing products and services to better serve our customers and in assessing the risks inherent in our lending operations. As local residents, our directors are also exposed to the advertising, product offerings and community development efforts of competing institutions which, in turn, assists us in structuring our marketing efforts and community outreach programs.

***Directors with terms ending following the year ending December 31, 2026:***

***Gail M. Fortes*** is the Executive Director of the YWCA of Southeastern MA, where she has worked for 31 years. Her experience, including senior leadership in an organization with over 20 employees, provides valuable insight into non-profit leadership, finance, governance, marketing, human resources and strategic planning. Director since 2021. Age 54.

***Steven W. Kenyon*** is a Certified Public Accountant and the Vice President of Administration & Finance at Bristol Community College, where he has worked since 1994. In this position, he serves as the Chief Financial Officer where he is responsible for the overall financial health, sustainability, and strategic financial planning of the institution. His responsibilities further include campus police, facilities, capital projects, risk and compliance, finance and other administrative responsibilities. With over 39 years of experience in finance and accounting, he provides the board of directors with valuable knowledge of the financial aspects of BayCoast Bank's business. Director since 2004. Age 60.

***Brian R. LeComte*** has served as the President and Chief Operating Officer of Gold Medal Bakery, Inc. since July 2022. In this position, he is responsible for all day-to-day operations. He previously served as Treasurer at Gold Medal Bakery, Inc. from 2004 to July 2022, where he was responsible for finance, accounting, human resources and information technology functions. His experience, including senior leadership in an organization with over 500 employees, gives him extensive insight into the customers who live in our market areas as well as both the economic developments affecting the communities in which we operate. Director since 2024. Age 45.

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***Eric B. Mack*** is an attorney and shareholder of Littler Mendleson P.C., where he has worked since October 2013. Mr. Mack's practice focuses on assisting private employers, especially financial institutions and hospitals, in a variety of employment disputes. His legal experience provides the board of directors with extensive expertise in employment matters. Director since 2021. Age 44.

***Directors with terms ending following the year ending December 31, 2027:***

***Maria L. Aguiar*** is a Certified Public Accountant and was in practice for nearly 40 years prior to her retirement in 2022. Ms. Aguiar has extensive experience with the audit, review and/or preparation of financial statements of non-public commercial businesses, non-profit organizations, and pension plans, as well as preparation of corporate, individual, pension and non-profit tax returns. This experience provides the board of directors with extensive insight into accounting and tax matters. Director since 2005. Age 61.

***Paul M. Joncas*** has served as the President of Meganet Communications, an internet service provider serving corporate and residential customers in Massachusetts, New Hampshire, Rhode Island and Vermont, since 1995, the President of Megaclear, a Competitive Local Exchange Carrier company, since 2000, and a Managing Partner of Madison FR Properties, LLC, a Commercial Real Estate Development and Leasing company, since 2018. Mr. Joncas has also served as a partner of Riggar Leasing LLC, a Commercial Real Estate Development and Leasing company, since 2022. Through his extensive experience in the technology industry and as an owner of multiple companies, he brings valuable insight to the board across a range of sectors, including technology and commercial real estate management. Director since 2019. Age 55.

***Mary Louise Nunes*** is a Certified Public Accountant and the Managing Member of Nunes & Charrier, LLC, an accounting firm. She has worked as a CPA for 38 years and is a Chartered Global Management Accountant, Certified Financial Forensics, and holds a Master's of Science in Taxation. Her experience provides the board of directors with extensive insight into accounting and tax matters. Director since 2019. Age 65.

***Carl W. Taber*** has served as our Chief Lending Officer for 21 years and has over 50 years' experience in the financial institutions industry, including as Chief Real Estate Lending Officer at another financial institution. Mr. Taber's extensive experience in community banking provides a broad perspective on our lending operations and the challenges facing our organization and our business strategies. Director since 2025. Age 72.

***Lawrence R. Walsh*** had over 41 years' work experience, including as a Chief Financial Officer for major manufacturing companies with 600 to 1200 employees, and as Chief Operating Officer and Chief Marketing Manager for a mid-sized manufacturer, prior to his retirement in 2018. His operational and executive experience as well as his financial acumen provides the board of directors with invaluable knowledge and strategic insight into all aspects of BayCoast Bank's business. Director since 1999. Age 73.

***Directors with terms ending following the year ending December 31, 2028:***

***Nicholas M. Christ*** currently serves as our Chair of the Board and Chief Executive Officer, having served as our President and Chief Executive Officer beginning in January 2006. Mr. Christ has over 45 years' experience in the financial institutions industry, having been employed by BayCoast Bank since 1986. His positions as Chair of the Board and Chief Executive Officer foster clear accountability, effective decision-making, a clear and direct channel of communication from senior management to the full board of directors, and alignment on corporate strategy. Mr. Christ is the father of Executive Vice President and Chief Operating Officer Nicholas L. Christ. Director since 1987. Age 74.

***Kenneth D. Furtado*** has served as President and Chief Executive Officer of OCI Software, a software design and development company that he founded, for over 45 years. His experience as a business owner gives him extensive insight into the customers who live in our market areas as well as both the economic developments affecting the communities in which we operate and also provides us with particular expertise in the area of information technology. Director since 2013. Age 68.

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***Margaret (Margarita) Patricio*** is Assistant Treasurer and Director at Boston Consulting Group (BCG), a global strategy consulting firm with more than $14 billion in annual revenues, where she has worked since 1995. She overseas BCG's global cash operations and liquidity strategy, including oversight of the firm's cash pools and In-House Bank operations. Her responsibilities also include cash forecasting, treasury accounting oversight, Treasury policy governance, and Treasury leadership across the Americas. Her experience and expertise in global Treasury operations, financial governance, risk management, and accounting within a large multinational organization, provides the board of directors with valuable financial and operational insight. Director since 2026. Age 55.

***Marie Pellegrino*** has served as our President since December 2025, and has been employed by BayCoast Bank since 2013, including as Executive Vice President and Chief Operating Officer, and Chief Financial Officer. Ms. Pellegrino has over 25 years' experience in the financial institutions industry. Her position as President fosters clear accountability, effective decision-making, a clear and direct channel of communication from senior management to the full board of directors, and alignment on corporate strategy. Director since 2025. Age 58.

**Executive Officers Who Are Not Directors** 

The following sets forth information regarding our executive officers who are not directors. Age information is as of December 31, 2025. Our executive officers are elected annually.

***Nicholas L. Christ*** has served as our Executive Vice President and Chief Operating Officer since January 2026, having worked at BayCoast Mortgage since 2015, where he served as President and Chief Executive Officer beginning in January 2024. Mr. Christ worked as a loan officer for ten years before joining BayCoast Bank. Mr. Christ is the son of Chair and Chief Executive Officer Nicholas M. Christ. Age 43.

***Daniel J. DeCosta*** has served as our Executive Vice President and Chief Information Officer since January 2024 and has worked at BayCoast Bank for 25 years. His responsibilities include overseeing operational support and all aspects of information technology. He holds a Bachelor's degree in Business Information Systems. Age 42.

***Diana Taxiera*** has served as our Senior Vice President and Chief Financial Officer since January 2025, and has been employed by BayCoast Bank since 2019, including as Vice President and Controller. Ms. Taxiera is a Certified Public Accountant and was previously an Accounting Manager at Digital Federal Credit Union, where she was employed from 2014 until 2019, and a Senior Auditor at Wolf & Company, where she was employed from 2009 to 2014. Age 39.

**Board Independence** 

The board of directors has determined that all of our directors, except for Nicholas M. Christ, Marie Pellegrino and Carl W. Taber, each of whom serves as an executive officer of BayCoast Bank, are considered independent under the Nasdaq Stock Market corporate governance listing standards. In determining the independence of our directors, the board of directors considered relationships between BayCoast Bank and our directors that are not required to be reported under " —Transactions With Certain Related Persons," below, consisting of loans and deposit accounts that our directors maintain at BayCoast Bank, insurance products purchased from BayCoast Insurance, and investment accounts held at Plimoth Investment Advisors. In addition, Director Kenyon's son is a non-executive employee of BayCoast Bank.

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**Transactions With Certain Related Persons** 

Federal law generally prohibits publicly traded companies from making loans to their executive officers and directors, but it contains a specific exemption from the prohibition for loans made by federally insured financial institutions, such as BayCoast Bank, to their executive officers and directors in compliance with federal banking regulations. At December 31, 2025, all of our loans to directors and executive officers were made in the ordinary course of business, were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to BayCoast Bank and did not involve more than the normal risk of collectability or present other unfavorable features. These loans were performing according to their original repayment terms at December 31, 2025, and were made in compliance with federal banking regulations.

Director Paul Joncas is the President and majority owner of MegaNet Communications, an internet, voice and data provider. For the year ended December 31, 2025, BayCoast Bank paid MegaNet Communications $447,097 for communication and network services.

Our Executive Vice President and Chief Operating Officer, Nicholas L. Christ, is the son of our Chair and Chief Executive Officer, Nicholas M. Christ. For the years ended December 31, 2025 and 2024, Nicholas L. Christ earned $312,000 and $300,000 in base salary, respectively, and $50,000 and $30,000 in bonus, respectively. For the year ended December 31, 2023, Nicholas L. Christ earned $77,250 in base salary and $173,976 in mortgage commissions.

Other than as described above, BayCoast Bank has not entered into any transactions since January 1, 2023 in which the amount involved exceeded $120,000 and in which any related persons had or will have a direct or indirect material interest.

**Committees of the Board of Directors** 

We conduct business through meetings of our board of directors and its committees. The board of directors of Narragansett Bancorp, Inc. has established standing committees, including an Audit Committee, a Nominating and Governance Committee and a Compensation Committee. Each of these committees will operate under a written charter, which will govern its composition, responsibilities and operations. BayCoast Bank also has standing committees of its board of directors.

Our Audit Committee will initially consist of Directors LeComte, Nunes (Chair) and Patricio, each of whom is considered an independent director under Nasdaq Stock Market and Securities and Exchange Commission rules with respect to service on the Audit Committee. The board of directors has determined that each member of the Audit Committee will qualify as an "audit committee financial expert" as such term is defined by the rules and regulations of the Securities and Exchange Commission. Our Nominating and Governance Committee will initially consist of Directors Aguiar, Fortes, Kenyon (Chair), Mack and Walsh, and our Compensation Committee will initially consist of Directors Aguiar, Fortes, Mack (Chair) and Walsh.

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**Executive Compensation** 

***Summary Compensation Table.*** The following information is furnished for our principal executive officer and the two most highly compensated executive officers (other than the principal executive officer) whose total compensation exceeded $100,000 for the fiscal year ended December 31, 2025. These individuals are sometimes referred to in this prospectus as the "named executive officers."

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary ($)** | **Bonus**<br>**($)(3)** | **Non-equity<br>Incentive Plan<br>Compensation ($)** | **Nonqualified<br>Deferred<br>Compensation<br>Earnings ($)** | **All Other<br>Compensation ($)<br>(4)** | **Total ($)** |
|  Nicholas M. Christ (1) | 2025 | 908654 |  | 224532 |  | 44541 | 1177727 |
|  *Chief Executive Officer and Chair of the Board of Directors* |  |  |  |  |  |  |  |
|  Marie Pellegrino | 2025 | 394616 |  | 72833 |  | 61381 | 528830 |
|  *President* |  |  |  |  |  |  |  |
|  Carl W. Taber (2) | 2025 | 405315 | 1311 | 84103 |  | 34067 | 524796 |
|  *Chief Lending Officer* |  |  |  |  |  |  |  |

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(1) Mr. Christ's current intention is to retire in June 2027.

(2) Mr. Taber's current intention is to retire in February 2027.

(3) Represents 20-year service award.

(4) The compensation set forth in the "All Other Compensation" column is as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **401(k) Plan<br>Employer<br>Contributions<br>($)** | **Company<br>Vehicle<br>($)** | **Deferred<br>Compensation<br>Plan ($)(a)** | **Life Insurance<br>Imputed<br>Income ($)** | **HSA<br>Contributions<br>($)** | **Total All Other<br>Compensation<br>($)** |
|  Nicholas M. Christ | 10500 | 26618 |  | 4423 | 3000 | 40118 |
|  Marie Pellegrino | 10500 | 17500 | 30000 | 381 | 3000 | 61000 |
|  Carl W. Taber | 10500 | 17332 |  | 3235 | 3000 | 30832 |

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(a) Represents contributions by BayCoast Bank to the Deferred Compensation Plan for Ms. Pellegrino.

***Employment Agreement.*** BayCoast Bank has entered into an employment agreement with certain executive officers, including Ms. Pellegrino. BayCoast Bank has not entered into employment agreements with Messrs. Christ and Taber since it is currently expected that they intend to retire in June 2027 and February 2027, respectively.

The employment agreement with Ms. Pellegrino becomes effective as of the effective date of the reorganization and stock offering. The initial term of the employment agreement will begin as of the effective date of the reorganization and stock offering and end on the third anniversary of that date. Commencing on the first anniversary of the effective date of the agreement and on each anniversary date thereafter, the term of the agreement will extend automatically for one additional year, so that the remaining term is again three years, unless either BayCoast Bank or Ms. Pellegrino gives notice to the other party of non-renewal. If either party provides a notice of non-renewal, the term will become fixed at that time and expire at the end of the then current term. Notwithstanding the foregoing, if Narragansett Bancorp, Inc. or BayCoast Bank enters a transaction that would constitute a change in control, as defined under the employment agreement, the term of the agreement would automatically extend so that it would expire no less than two years following the effective date of the change in control.

The employment agreement specifies Ms. Pellegrino's base salary, which initially will be $425,000. BayCoast Bank's board of directors or its Compensation Committee will review Ms. Pellegrino's base salary at least annually and may increase, but not decrease, her base salary. In addition to base salary, the agreement provides that Ms. Pellegrino will participate in any bonus plan or arrangement of BayCoast Bank in which senior management is eligible to participate and/or may receive a bonus on a discretionary basis, as determined by the board of directors. BayCoast Bank will provide a short-term target cash bonus opportunity for Ms. Pellegrino of at least 45% of base salary. She is also entitled to participate in all employee benefit plans, arrangements and perquisites offered to employees and officers of BayCoast Bank and the reimbursement of reasonable travel and other business expenses incurred in the performance of her duties for BayCoast Bank. BayCoast Bank will also provide Ms. Pellegrino with a stipend for use of an automobile.

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BayCoast Bank may terminate Ms. Pellegrino's employment, or she may resign from employment, at any time with or without good reason. Under the employment agreement, if BayCoast Bank terminates her employment without cause or she resigns for "good reason" (i.e., a "qualifying termination event"), BayCoast Bank will pay her a severance payment equal to the greater of (i) the remaining base salary and total annual bonus opportunity (based on the highest annual bonus earned during the three most recent calendar years before her date of termination) she would have received during the remaining term of the employment agreement or (ii) two times the sum of her base salary and the average annual incentive bonus for the three most recently completed calendar years before the date of termination. In addition, Ms. Pellegrino will be reimbursed for her monthly COBRA premium payments for the greater of the term of the agreement or up to18 months.

If a qualifying termination event occurs during the term of the agreement or within two years following a change in control of Narragansett Bancorp, Inc. or BayCoast Bank, Ms. Pellegrino would be entitled to (in lieu of the payments and benefits described in the previous paragraph) a severance payment equal to three times the sum of (i) her base salary in effect as of the date of termination (or during the three preceding years, if higher) and (ii) and average annual total incentive bonus earned by her for the three most recently completed calendar years before the change in control (or, if greater, the annual total incentive bonus that would have been earned in the year of the change in control at target bonus opportunity). In addition, she would receive a lump sum payment equal to the value of 36 months' health care cost (based on the cost of COBRA premium payments).

For purposes of the employment agreement, the term "good reason" includes (i) a material reduction in base salary and/or aggregate incentive compensation opportunities (unless the reduction is part of a non-discriminatory reduction applicable to all executive officers), (ii) a material reduction in authority, duties or responsibilities, (iii) the failure to re-appoint Ms. Pellegrino to her executive position or the failure to nominate and recommend her election to Narragansett Bancorp, Inc.'s board of directors or to appoint or nominate and elect her to BayCoast Bank's board of directors, (iv) a relocation of Ms. Pellegrino's principal place of employment that increases her daily one-way commute by more than 60 miles, or (v) a material breach of the employment agreement by BayCoast Bank.

The employment agreement terminates upon Ms. Pellegrino's death or disability. Upon termination of employment (other than a termination in connection with a change in control), Ms. Pellegrino will be required to adhere to six-month non-competition and one-year non-solicitation restrictions set forth in the employment agreement.

The non-competition and non-solicitation covenants apply following a change in control for a period mutually to be agreed to by the parties, which will be no less than six months nor exceed one year. If payments and benefits provided to Ms. Pellegrino become subject to Sections 280G and 4999 of the Internal Revenue Code, and after considering the value of the non-competition and non-solicitation covenants, the payments will be reduced if the reduction would leave her financially better off on an after-tax basis than if she received the entire payment and was obligated to pay the excise tax under Section 4999 of the Internal Revenue Code.

***Annual Incentive Plan.*** BayCoast Bank maintains an Annual Incentive Compensation Plan for all permanent employees, including the named executive officers. For awards to be paid under the plan, BayCoast Bank must achieve certain thresholds levels based on certain performance metrics, including capital performance goals, return on average assets, net revenue, core deposit growth and individual and/or department performance goals. Management presents the Annual Incentive Compensation Plan to the HR & Compensation Committee then to the board of directors for review and subsequent approval on an annual basis. Employees must generally be employed on the payment date to receive payment of an award. Mr. Christ and Ms. Pellegrino have a target bonus opportunity of up to 45% of their respective base salaries and Mr. Taber has a target bonus opportunity of up to 37.5% of his base salary.

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***Non-Qualified Deferred Compensation Plan.*** BayCoast Bank sponsors the BayCoast Bank Deferred Compensation Plan (the "Deferred Compensation Plan") for the benefit of certain employees, including the named executive officers. Under the Deferred Compensation Plan, a participant may elect to defer up to 25% of their salary and commissions and up to 100% of their bonus and performance-based compensation. BayCoast Bank may make discretionary contributions to the Deferred Compensation Plan on behalf of any participant in an amount determined solely by BayCoast Bank. A participant is always 100% vesting in his or her elective deferrals and vests in employer contributions after five years of service (at the rate of 25% after two years of service and 25% after each of the next three years of service). Participants also become fully vested upon their disability, death, retirement on or after attaining age 65 or a change in control of BayCoast Bank.

***Supplemental Executive Retirement Agreement with Mr. Christ.*** BayCoast Bank is a party to an Amended and Restated Supplemental Executive Retirement Agreement (the "SERP") with Mr. Christ. Under the SERP, Mr. Christ is entitled to a retirement benefit upon his separation from service (other than for cause) equal to 70% of his average compensation offset by his retirement benefit under the Pension Plan, described below. For purposes of the SERP, Mr. Christ's "annual compensation" includes the total compensation paid to him for the three calendar years (whether or not consecutive) in which his total compensation was the highest. Mr. Christ is 100% vested in his benefit under the SERP. BayCoast Bank will pay the retirement benefit to Mr. Christ in monthly installments until his death beginning the first day of the month following his separation from service. If Mr. Christ dies while actively employed with BayCoast Bank, the retirement benefit will be paid to Mr. Christ's spouse for her life. If Mr. Christ's spouse predeceases Mr. Christ or if she dies before receiving 180 monthly payments, the monthly retirement benefit will be paid to her beneficiary until a total of 180 monthly payments have been made under the SERP. If Mr. Christ dies following his separation from service, the monthly retirement benefit will be paid to his spouse for her life. If Mr. Christ and his spouse die before receiving a total of 180 monthly payments, the beneficiary of the last to die will receive monthly payments of the retirement benefit until a total of 180 monthly payments have been made under the SERP.

***Executive Salary Continuation Agreement for Mr. Taber.*** BayCoast Bank is a party to an Executive Salary Continuation Agreement (the "SCA") with Mr. Taber. Under the SCA, Mr. Taber is entitled to an annual benefit of $100,000 upon his separation from service (other than for cause). BayCoast Bank will pay the annual benefit for 15 years. Mr. Taber is 100% vested in his benefit under the SCA. If Mr. Taber dies while actively employed with BayCoast Bank, the amount that has been accrued toward the benefit under the SCA will be paid to his beneficiary in one lump sum. If Mr. Taber dies following his separation from service, BayCoast Bank will pay the remaining accrued amount to his beneficiary in a lump sum.

***Split Dollar Life Insurance.*** BayCoast Bank has entered into split dollar life insurance agreements with each of the named executive officers. Under the agreements, if the executive dies while an employee of BayCoast Bank, the executive's beneficiary will receive a death benefit equal to the lesser of (i) the executive's final base salary or (ii) the net-at-risk insurance portion of the underlying bank-owned life insurance policy (i.e., the total proceeds less the cash surrender value of the policy). An agreement terminates upon the executive's termination of employment with BayCoast Bank.

***401(k) Plan.*** BayCoast Bank maintains a tax-qualified defined contribution plan under which eligible employees may elect to defer a portion of their compensation and receive certain employer contributions (the "401(k) Plan"). The named executive officers are eligible to participate in the 401(k) Plan on the same terms as other eligible employees of BayCoast Bank and its subsidiaries. Eligible employees who are at least 21 years of age and have completed three months of service are eligible to make elective deferrals under the 401(k) Plan. Eligible employees who are at least 21 years of age and have completed one year of service are eligible to receive employer contributions under the 401(k) Plan.

Under the 401(k) Plan, a participant may elect to defer a portion of their eligible compensation. For 2026, the salary deferral contribution limit is $24,500, provided, however, that a participant over age 50 may contribute an additional amount to the 401(k) Plan. In addition to salary deferral contributions, BayCoast Bank makes safe harbor contributions on behalf of participants who make elective deferrals under the 401(k) Plan. A participant is immediately 100% vested in his or her salary deferral contributions and employer contributions.

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BayCoast Bank intends to allow participants in the 401(k) plan to use up to 75% of their account balances in the 401(k) Plan to subscribe for stock in the stock offering. The expense recognized in connection with the 401(k) Plan totaled approximately $1.7 million for the year ended December 31, 2025.

***Pension Plan.*** BayCoast Bank sponsors the BayCoast Bank Pension Plan (the "Pension Plan") for the benefit of eligible employees of BayCoast Bank and its participating subsidiaries. Eligible employees who attain age 21 and complete one year of service participate in the Pension Plan. The named executive officers are eligible to participate in the Pension Plan on the same terms as other eligible employees of BayCoast Bank and its subsidiaries. The normal annual retirement benefit under the Pension Plan equals 1.25% of the participant's average annual compensation (as defined in the Pension Plan) up to the Integration Level and 0.6% of average annual compensation in excess of the "Integration Level"), multiplied by the participant's years of credit service (up to a maximum of 35 years). For purposes of the Pension Plan, the term "Integration Level" means the amount of a participant's covered compensation (i.e., the amount of compensation that may be taxed each year for social security purposes). Participants hired prior to November 1, 2023, vest in their pension benefit after three years of service (with no vesting prior to completing three years of service). Participants hired on or after November 1, 2023, vest in their pension benefit after five years of service (with no vesting prior to completing five years of service). The expense recognized in connection with the Pension Plan totaled approximately $923,000 for the year ended December 31, 2025.

***Employee Stock Ownership Plan.*** In connection with the reorganization and stock offering, BayCoast Bank intends to adopt an employee stock ownership plan (the "ESOP") for eligible employees of BayCoast Bank and its subsidiaries. The named executive officers will be eligible to participate in the ESOP on the same terms as other eligible employees. Eligible employees will begin participation in the ESOP on the later of the effective date of the reorganization and stock offering (if they otherwise meet the eligibility age and service requirements) or upon the first entry date commencing on or after the eligible employee's completion of one year of service and attainment of age 21.

The ESOP trustee is expected to purchase, on behalf of the employee stock ownership plan, 8% of the sum of the number of shares of Narragansett Bancorp, Inc. common stock sold in the stock offering and contributed to the charitable foundation. We anticipate the ESOP will fund its stock purchase with a loan from Narragansett Bancorp equal to the aggregate purchase price of the common stock. The trustee will repay the loan principally through contributions to the ESOP by BayCoast Bank and dividends, if any, paid on common stock held by the ESOP over the anticipated 20-year term of the loan. The interest rate for the loan is expected to equal the prime rate, as published in *The Wall Street Journal*, on the closing date of the reorganization and stock offering. See "Pro Forma Data."

The ESOP trustee will hold the shares purchased by the ESOP in an unallocated suspense account, and shares will be released from the suspense account on a pro-rata basis as the trustee repays the loan. The trustee will allocate the shares released among participants' accounts based on each participant's proportional share of compensation relative to all participants. A participant will become fully vested in his or her account balance after completing five years of service with BayCoast Bank (vesting at the rate of 20% per each year of service). Participants who are employed by BayCoast Bank immediately before the completion of the reorganization and stock offering will receive credit for vesting purposes for years of service before adoption of the ESOP. Participants also will automatically become fully vested upon attaining their normal retirement age (age 65), death or disability, a change in control, or termination of the ESOP. Generally, participants will receive distributions from the ESOP upon terminating employment according to the terms of the plan document. The ESOP reallocates any unvested shares forfeited upon a participant's termination of employment among the remaining participants.

The ESOP will permit participants to direct the trustee as to how to vote the shares of common stock allocated to their accounts. The ESOP trustee will vote unallocated shares and allocated shares for which participants do not provide timely instructions on any matter in the same ratio as those shares for which participants provide timely instructions, subject to fulfillment of the trustee's fiduciary responsibilities.

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Under applicable accounting requirements, BayCoast Bank will record compensation expense for the ESOP at the fair market value of the shares as they are committed to being released from the unallocated suspense account, which may be more or less than the original purchase price. The compensation expense resulting from the release of the common stock from the suspense account and allocation to the accounts of plan participants will result in a corresponding reduction in the earnings of Narragansett Bancorp, Inc.

**Directors' Compensation** 

The following table sets forth for the year ended December 31, 2025, certain information as to the total remuneration we paid to our non-employee directors. Mr. Christ, Ms. Pellegrino and Mr. Taber do not receive separate fees for service as a director.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Fees Earned or Paid**<br>**in Cash ($)** | **All Other**<br>**Compensation ($)(1)** | **Total ($)** |
|  Maria L. Aguiar | 56850 | 6795 | 63811 |
|  Gail M. Fortes | 38150 |  | 38150 |
|  Kenneth D. Furtado | 61900 | 9792 | 71500 |
|  Richard K. Gunther (2) | 71340 | 11267 | 80940 |
|  Paul M. Joncas | 54800 | 4296 | 59096 |
|  Steven W. Kenyon | 68300 | 9286 | 77484 |
|  Brian Lecomte | 34550 |  | 34550 |
|  Ronald J. Lowenstein (2)  | 44200 | 8000 | 52200 |
|  Eric B. Mack | 43600 | 9600 | 53200 |
|  Mary Louise Nunes | 52200 | 4744 | 56944 |
|  Christopher J. Rezendes (3) | 38700 | 40233 | 78854 |
|  James F. Wallace (3) | 24300 | 6400 | 30700 |
|  Lawrence R. Walsh | 71350 | 9391 | 80394 |

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(1) Represents reimbursements for costs of health and dental insurance premiums paid by the directors for them and
their spouse (up to a maximum of $9,600). Also includes imputed income related to split dollar life insurance arrangements as follows: Ms. Aguiar, $104; Mr. Furtado, $192; Mr. Gunther, $1,667; Mr. Kenyon, $102; Mr. Rezendes,
$79; and Mr. Walsh, $347. Also includes $33,454 paid to Mr. Rezendes for consulting and professional services provided in connection with the development of our environmental sustainability strategy and related initiatives.

(2) Mr. Lowenstein retired from the board of directors on October 22, 2025, and Mr. Gunther retired
from the board of directors on December 23, 2025.

(3) Each of Messrs. Rezendez and Wallace will continue to serve as directors of BayCoast Bank (but not Narragansett
Bancorp, Inc.) following the completion of the reorganization and stock offering.

***Director Fees.*** Each director of BayCoast Bank (other than members of the Executive Committee) receives $1,300 per meeting. The Chair of the Executive Committee receives $3,260 per month and other members of the Executive receive $3,000 per month. The Chair of the Audit Committee receives $1,400 per meeting and other members of the Audit Committee receive $1,200 per meeting. Compensation Committee and Governance Committee members receive $1,000 per meeting. Members of other committees receive $900 per meeting. Some of our directors also service on the board of our subsidiary, Plimoth Investment Advisors, and receive fees for those services, as well.

***Supplemental Directors Retirement Agreements.*** BayCoast Bank has entered into Supplemental Director Retirement Agreements with each of its non-employee directors, except Mr. LeComte and Mr. Wallace. Mr. Wallace is a party to a Supplemental Executive Retirement Agreement as described below. Under the agreements, a director who remains in service on the board of directors until the normal retirement age specified in the agreement (age 72) will be entitled to receive an annual retirement benefit equal to 45% of the average annual director fee amount as of the director's separation from service. The "average annual director fee amount" means the average annual director fees over any three calendar years during the final ten calendar years in which the fees were the highest. The payments will be made to the director upon his or her separation from service in annual installments for ten years. If a director separates from service before age 72, he or she is entitled to the accrued liability balance under the agreement, paid in a lump sum within 30 days of the director's separation from service. Upon a change in control, directors would receive the present value of the normal retirement benefit within 30 days of the change in control. Upon a director's death while in service, the director's beneficiary would receive 50% of the director's accrued liability balance, paid in a lump sum within 30 days following the director's death. If a director dies while receiving installments under the plan, the director's beneficiary will receive the same annual installments the director would have received had he or she survived.

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***Supplemental Executive Retirement Agreement.*** BayCoast Bank has entered into a Supplemental Executive Retirement Agreement with Mr. Wallace. BayCoast Bank and Mr. Wallace entered into the agreement when Mr. Wallace was an employee of BayCoast Bank. Under the agreement, since Mr. Wallace has separated from service as an employee of BayCoast Bank, Mr. Wallace receives an annual payment of $100,000. The annual payment is made to Mr. Wallace for 15 years. If Mr. Wallace dies prior to receiving all 15 annual payments, his beneficiary will receive a lump sum payment equal to the remaining payments that would have been paid to Mr. Wallace had he survived.

***Split Dollar Life Insurance.*** BayCoast Bank has entered into Endorsement Method Split Dollar Plan Agreements with Messrs. Furtado, Kenyon, Rezendes and Walsh and Ms. Aguiar. Under the agreements, if the director dies while in service with BayCoast Bank, his or her beneficiary will receive a benefit equal to the lesser of (i) $75,000 or (ii) the net at risk insurance portion of the policy underlying the agreement. The "net at risk insurance portion" is the total proceeds of the policy less the cash value of the policy. If the director is not in service with BayCoast Bank at the time of his or her death, the beneficiary will receive the death benefit only if the director has five or more years of service with the bank. The agreement will also terminate upon the surrender, lapse or termination of the life insurance policy underlying the agreement.

**Benefits to be Considered Following Completion of the Offering** 

***Stock-Based Benefit Plan.*** Following the offering, we intend to adopt a stock-based benefit plan that will provide for grants of stock options, restricted stock awards and restricted stock units. In accordance with applicable regulations, we anticipate that the plan will authorize a number of stock options and a number of shares of restricted stock awards (and/or restricted stock units), not to exceed 10% and 4%, respectively, of the aggregate number of shares sold in the offering and contributed to the charitable foundation. These limitations may not apply if the plan is implemented more than one year after the completion of the reorganization and offering, subject to any applicable regulatory approvals.

The stock-based benefit plan will not be established sooner than six months after the reorganization and offering and, if adopted within one year after the reorganization and offering, the plan must be approved by a majority of the votes eligible to be cast by our stockholders, as well as a majority of the votes eligible to be cast by our stockholders other than Narragansett Financial Corporation. If the stock-based benefit plan is established more than one year after the reorganization and offering, the plan must be approved by a majority of votes cast by our stockholders, as well as a majority of votes cast by our stockholders other than Narragansett Financial Corporation.

Certain additional restrictions would apply to our stock-based benefit plan if adopted within one year after the reorganization and offering, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• non-employee directors in the aggregate may not receive more than 30% of
the options and shares of restricted common stock authorized under the plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no individual non-employee director may receive more than 5% of the
options and restricted stock awards authorized under the plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any individual (other than a non-employee director) may not receive more
than 25% of the options and restricted stock awards authorized under the plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the options and shares of restricted common stock may not vest more rapidly than 20% per year, beginning on the
first anniversary of stockholder approval of the plan; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accelerated vesting is not permitted except for death, disability or upon a change in control of Narragansett
Financial Corporation, Narragansett Bancorp, Inc. or BayCoast Bank.

We have not yet determined whether we will present a stock-based benefit plan for stockholder approval within one year following the completion of the reorganization and offering or whether we will present a plan for stockholder approval more than one year after the completion of the reorganization and offering. In the event of changes in applicable regulations or policies regarding stock-based benefit plan, including any regulations or policies restricting the size of awards and vesting of benefits as described above, the restrictions described above may not be applicable.

We may obtain the shares needed for our stock-based benefit plan by issuing additional shares of common stock from authorized but unissued shares or through stock repurchases.

The actual value of the shares of restricted common stock awarded under the stock-based benefit plan would be based on the price of our common stock at the time the shares are awarded. The following table presents the total value of all shares of restricted common stock to be available for award and issuance under the stock-based benefit plan, assuming the shares are awarded in a range of market prices for our common stock from $8.00 per share to $14.00 per share.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Share Price** | **244,800 Shares**<br>**Awarded at Minimum**<br>**of Offering Range** | **288,000 Shares**<br>**Awarded at Midpoint**<br>**of Offering Range** | **331,200 Shares**<br>**Awarded at Maximum**<br>**of Offering Range** | **380,880 Shares**<br>**Awarded at Adjusted**<br>**Maximum**<br>**of Offering Range** |
| **(In thousands, except share price information)** | **(In thousands, except share price information)** | **(In thousands, except share price information)** | **(In thousands, except share price information)** | **(In thousands, except share price information)** |
| $8.00 | $1958 | $2304 | $2650 | $3047 |
| $10.00 | $2448 | $2880 | $3312 | $3809 |
| $12.00 | $2938 | $3456 | $3974 | $4571 |
| $14.00 | $3427 | $4032 | $4637 | $5332 |

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The grant-date fair value of the options granted under the stock-based benefit plan will be based in part on the price of shares of our common stock at the time the options are granted. The value will also depend on the various assumptions utilized in the option pricing model ultimately adopted. The following table presents the total estimated value of the options to be available for grant under the stock-based benefit plan, using a Black-Scholes option pricing model, and assuming the market price and exercise price for the stock options are equal and the range of market prices for the shares is $8.00 per share to $14.00 per share. The Black-Scholes option pricing model provides an estimate only of the fair value of the options, and the actual value of the options may differ significantly from the value set forth in this table.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Market/Exercise** <br>**Price** | **Grant-Date Fair**<br>**Value Per Option** | **612,000 Options at**<br>**Minimum of**<br>**Offering Range** | **720,000 Options at**<br>**Midpoint of**<br>**Offering Range** | **828,000 Options at**<br>**Maximum of**<br>**Offering Range** | **952,200 Options at**<br>**Adjusted**<br>**Maximum of**<br>**Offering Range** |
| **(Dollars in thousands, except market/exercise price and fair value information)** | **(Dollars in thousands, except market/exercise price and fair value information)** | **(Dollars in thousands, except market/exercise price and fair value information)** | **(Dollars in thousands, except market/exercise price and fair value information)** | **(Dollars in thousands, except market/exercise price and fair value information)** | **(Dollars in thousands, except market/exercise price and fair value information)** |
| $8.00 | $3.71 | $2271 | $2671 | $3072 | $3533 |
| $10.00 | $4.64 | $2840 | $3341 | $3842 | $4418 |
| $12.00 | $5.57 | $3409 | $4010 | $4612 | $5304 |
| $14.00 | $6.50 | $3978 | $4680 | $5382 | $6189 |

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**The tables presented above are provided for informational purposes only. There can be no assurance that our stock price will not trade below $10.00 per share. Before you make an investment decision, we urge you to read this prospectus carefully, including, but not limited to, the section entitled "Risk Factors."** 

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**SUBSCRIPTIONS BY DIRECTORS AND EXECUTIVE OFFICERS** 

The following table sets forth information regarding intended common stock subscriptions by each of our directors and executive officers and their associates, and by all directors, executive officers and their associates as a group. There can be no assurance that any such person or group will purchase any specific number of shares of our common stock. In the event the individual maximum purchase limitation is increased, persons subscribing for the maximum amount may increase their purchase order. Directors and executive officers will purchase shares of common stock at the same $10.00 purchase price per share and on the same terms as other purchasers in the offering. Purchases by directors, executive officers and their associates will be included in determining whether the required minimum number of shares has been subscribed for in the offering. The shares being acquired by the directors, executive officers and their associates are being acquired for investment purposes, and not with a view towards resale. Our directors and executive officers will be subject to the same minimum purchase requirements and purchase limitations as other participants in the offering.

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| | | |
|:---|:---|:---|
| **Name** | **Number of**<br>**Shares** | **Percent of**<br>**Outstanding**<br>**Shares at**<br>**Minimum of**<br>**Offering Range (1)** |
|  Maria L. Aguiar |  | $nan% |
|  Nicholas M. Christ |  |  |
|  Gail M. Fortes |  |  |
|  Kenneth D. Furtado |  |  |
|  Paul M. Joncas |  |  |
|  Steven W. Kenyon |  |  |
|  Brian LeComte |  |  |
|  Eric B. Mack |  |  |
|  Margaret Patricio |  |  |
|  Marie Pellegrino |  |  |
|  Mary Louise Nunes |  |  |
|  Carl W. Taber |  |  |
|  Lawrence R. Walsh |  |  |
|  Nicholas L. Christ |  |  |
|  Daniel DeCosta |  |  |
|  Diana Taxiera |  |  |
|  All directors and executive officers as a group (16 persons) | [insider<br>purchases] | $nan% |

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\* Less than 1.0%. 

(1) Includes shares to be sold to the public and owned by Narragansett Financial Corporation.

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**THE REORGANIZATION AND OFFERING** 

On June 8, 2026, BayCoast Bank's board of directors and Narragansett Financial Corporation's board of trustees unanimously adopted the plan of holding company reorganization and plan of stock issuance (the "plan of reorganization"). We have filed applications and notices with respect to the reorganization and offering with the Federal Reserve Board and the Massachusetts Commissioner of Banks. The final approvals and non-objections of the Federal Reserve Board and the Massachusetts Commissioner of Banks are required before we can consummate the offering. Any approval by the Federal Reserve Board or the Massachusetts Commissioner of Banks does not constitute a recommendation or endorsement of the plan of reorganization.

**General** 

Pursuant to the plan of reorganization, BayCoast Bank will reorganize into the "two-tier" mutual holding company form of organization whereby Narragansett Bancorp, Inc. will become the mid-tier stock holding company of BayCoast Bank and Narragansett Financial Corporation will become the top-tier mutual holding company. After the reorganization and offering, purchasers in the offering will own 43% of the outstanding shares of common stock of Narragansett Bancorp, Inc. and Narragansett Financial Corporation will own 55% of the outstanding shares of common stock of Narragansett Bancorp, Inc. We will also contribute 2% of our outstanding shares of common stock and cash to a charitable foundation that we are forming in connection with the reorganization and offering.

Pursuant to the plan of reorganization, we will offer shares of common stock for sale in the subscription offering to our Eligible Account Holders, our tax-qualified employee benefit plans (specifically, our employee stock ownership plan that we are establishing in connection with the reorganization), and our employees, officers, directors, trustees and corporators. In addition, we may offer common stock for sale in a community offering to members of the general public, with a preference given to natural persons residing (including trusts of natural persons and business entities with its principal place of business or headquarters) in the Massachusetts cities and towns of Acushnet, Attleboro, Avon, Bellingham, Berkley, Braintree, Brookline, Canton, Cohasset, Dartmouth, Dedham, Dighton, Dover, Easton, Fairhaven, Fall River, Foxborough, Franklin, Freetown, Holbrook, Mansfield, Medfield, Medway, Millis, Milton, Needham, New Bedford, Norfolk, North Attleboro, Norton, Norwood, Plainville, Quincy, Randolph, Raynham, Rehoboth, Seekonk, Sharon, Somerset, Stoughton, Swansea, Taunton, Walpole, Wellesley, Westport, Westwood, Weymouth and Wrentham, and the Rhode Island cities and towns of Barrington, Bristol, Burrillville, Central Falls, Cranston, Cumberland, East Providence, Foster, Glocester, Jamestown, Johnston, Lincoln, Little Compton, Middletown, Newport, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Scituate, Smithfield, Tiverton, Warren and Woonsocket.

We have the right to accept or reject, in whole or in part, any orders to purchase shares of the common stock received in the community offering. The community offering may begin concurrently with, during, or promptly after the subscription offering and must be completed within 45 days after the completion of the subscription offering unless otherwise extended with any required approval of the Federal Reserve Board and the Massachusetts Commissioner of Banks. See "—Community Offering."

We also may offer for sale shares of common stock not purchased in the subscription or community offerings through a syndicated offering in which Piper Sandler will be sole manager. See "—Syndicated Offering" herein.

The offering will be consummated only upon the issuance of at least the minimum number of shares of our common stock offered pursuant to the plan of reorganization.

We intend to retain between $22.2 million and $30.7 million of the net proceeds of the offering (or $35.6 million at the adjusted maximum of the offering range) and to invest between $27.7 million and $37.9 million of the net proceeds in BayCoast Bank (or $43.8 million at the adjusted maximum of the offering range).

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We determined the number of shares of common stock to be offered in the offering based upon an independent valuation appraisal of the estimated pro forma market value of Narragansett Bancorp, Inc. All shares of common stock to be sold in the offering will be sold at $10.00 per share. Investors will not be charged a commission to purchase shares of common stock. The independent valuation will be updated and the final number of the shares of common stock to be issued in the offering will be determined at the completion of the offering. See "—How We Determined the Stock Pricing and Number of Shares to be Issued" for more information as to the determination of the estimated pro forma market value of the common stock.

The following is a brief summary of the reorganization and offering and is qualified in its entirety by reference to the provisions of the plan of reorganization. A copy of the plan of reorganization is available for inspection at each branch office of BayCoast Bank. The plan of reorganization is also filed as an exhibit to our applications and notices filed with respect to the reorganization and offering, of which this prospectus is a part, copies of which may be obtained from the Federal Reserve Board, or inspected at the Massachusetts Division of Banks. The plan of reorganization is also filed as an exhibit to the registration statement we have filed with the Securities and Exchange Commission, of which this prospectus is a part. Copies of the registration statement may be obtained from the Securities and Exchange Commission or online at the Securities and Exchange Commission's website, <u>www.sec.gov</u>. See "Where You Can Find More Information."

**Reasons for the Reorganization and Offering** 

The primary purpose of the reorganization is to compete and grow more effectively in the financial services marketplace. The reorganization will permit us to issue and sell capital stock, which is a source of capital not available to mutual savings institutions. This will enable customers, employees, management, directors and trustees an opportunity to purchase an equity ownership interest in our company. Management believes that this will enhance the long-term growth and performance of BayCoast Bank and Narragansett Bancorp, Inc. by enabling us to attract and retain qualified employees who have a direct interest in our financial success. It may also generate greater customer interest in the performance of BayCoast Bank. The reorganization will facilitate our ability to repay subordinated debt currently held by Narragansett Financial Corporation, which totaled $95.0 million at March 31, 2026. The reorganization also will give us greater flexibility to structure and finance the expansion of our operations and increase our capital to support future growth and profitability, including the potential acquisition of other financial service businesses, financial institutions and branch offices, and to diversify into other financial services. The reorganization and the capital raised in the offering are expected to increase our lending capacity by providing us with additional capital to support the origination and purchase of new loans and higher lending limits, support the growth of our banking franchise, provide an additional cushion against unforeseen risk and increase our asset base. Lastly, the reorganization will enable us to better manage our capital by providing broader investment opportunities through the holding company structure. Although the reorganization and offering will create a stock savings bank and stock holding company, only a minority of our common stock will be offered for sale in the offering. As a result, our mutual form of ownership and our ability to provide community-oriented financial services will be preserved through the mutual holding company structure.

Subject to stockholder approval following the completion of the offering, we believe we would also be better able to retain and attract qualified personnel by establishing stock-based benefit plans for management and employees.

Our board of directors believes that the advantages of the mutual holding company structure outweigh the potential disadvantages of the mutual holding company structure to minority stockholders, including the inability of stockholders other than Narragansett Financial Corporation to own a majority of the common stock of Narragansett Bancorp, Inc. A majority of our voting stock will be owned by Narragansett Financial Corporation, which will be controlled by its board of trustees and corporators. Narragansett Financial Corporation will be able to elect all the members of Narragansett Bancorp, Inc.'s board of directors, and will be able to control the outcome of nearly all matters presented to our stockholders for resolution by vote. No assurance can be given that Narragansett Financial Corporation will not take action adverse to the interests of stockholders other than Narragansett Financial Corporation. For example, Narragansett Financial Corporation could prevent the sale of control of Narragansett Bancorp, Inc., or defeat a candidate for the board of directors of Narragansett Bancorp, Inc. or other proposals put forth by stockholders.

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Since we will not be offering all of our common stock for sale in the offering, the reorganization will result in less capital being raised in comparison to a standard mutual-to-stock conversion. We are not undertaking a standard mutual-to-stock conversion at this time because we do not believe we could effectively deploy in the near term the additional capital that would be raised in a standard conversion. The reorganization, however, will allow us to raise additional capital in the future because a majority of our common stock will be available for sale in the event of a conversion of Narragansett Financial Corporation to stock form. Our board of directors has determined that offering a minority of our outstanding shares of common stock for sale in the offering will allow us to reinvest the net proceeds over the next several years.

The reorganization does not preclude the future conversion of Narragansett Financial Corporation from the mutual to stock form of organization. We cannot assure you when, if ever, Narragansett Financial Corporation would convert to stock form or what conditions the Federal Reserve Board, the Massachusetts Commissioner of Banks or other regulatory agencies may impose on such a transaction. See "Summary—Possible Conversion of Narragansett Financial Corporation to Stock Form."

**Effects of Reorganization on Depositors and Borrowers** 

***Continuity.*** While the reorganization is being accomplished, our normal business of accepting deposits and making loans will continue without interruption. BayCoast Bank will continue to be subject to regulation by the Massachusetts Commissioner of Banks and the FDIC. After the reorganization, we will continue to offer existing services to depositors, borrowers and other customers. The directors serving BayCoast Bank after the reorganization will only consist of individuals who serve as directors of BayCoast Bank prior to the completion of the reorganization. The officers of BayCoast Bank at the time of the reorganization will retain their positions after the reorganization.

***Effect on Deposit Accounts.*** Pursuant to the plan of reorganization, each depositor of BayCoast Bank at the time of the reorganization will automatically continue as a depositor after the reorganization, and the deposit balance, interest rate and other terms of such deposit accounts will not change as a result of the reorganization. Each such account will be insured by the FDIC and the DIF, without interruption, to the same extent as before the reorganization. Depositors will continue to hold their existing certificates, passbooks and other evidences of their accounts.

***Effect on Loans.*** No loan outstanding from BayCoast Bank will be affected by the reorganization, and the amount, interest rate, maturity and security for each loan will remain as it was contractually fixed before the reorganization.

***Effect on Voting Rights of Directors and Corporators.*** BayCoast Bank is currently under the direction of its board of directors, who are elected by Narragansett Financial Corporation as the sole stockholder of BayCoast Bank, and which has the authority to vote on all matters of BayCoast Bank requiring stockholder approval. After the reorganization, BayCoast Bank's directors will be elected by Narragansett Bancorp, Inc., as the sole stockholder of BayCoast Bank, which will have the authority to vote on all matters of BayCoast Bank requiring stockholder approval. The common stockholders of Narragansett Bancorp, Inc., including Narragansett Financial Corporation, will have exclusive voting rights with respect to Narragansett Bancorp, Inc. After the reorganization, the voting rights of corporators of Narragansett Financial Corporation will remain unchanged.

***Tax Effects.*** We have received opinions of counsel and our tax advisors with regard to the federal and state income tax consequences of the reorganization to the effect that the reorganization will not be taxable for federal or state income tax purposes to BayCoast Bank or its depositors. See "—Material Income Tax Consequences."

***Effect on Liquidation Rights.*** Each depositor of BayCoast Bank, in its present form, has a deposit account in BayCoast Bank and a pro rata ownership interest in the net worth of Narragansett Financial Corporation based upon the deposit balance of his or her account. This interest is tied to the depositor's account and has no tangible market value separate from the deposit account. This interest may only be realized in the unlikely event of a

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complete liquidation of Narragansett Financial Corporation. Any depositor who opens a deposit account obtains a pro rata ownership interest in Narragansett Financial Corporation without any additional payment beyond the amount of the deposit. A depositor who reduces or closes his or her account receives a portion or all, respectively, of the balance in the deposit account but nothing for his or her ownership interest in the net worth of Narragansett Financial Corporation, which is lost to the extent that the balance in the account is reduced or closed. Consequently, depositors in a mutual savings bank in the mutual holding company structure normally have no way of realizing the value of their ownership interest, which has realizable value only in the unlikely event that the mutual holding company is completely liquidated. If this occurs, the depositors of record at that time would share pro rata in any residual surplus and reserves of Narragansett Financial Corporation after all other claims of creditors, including claims of depositors to the amounts of their deposits, are paid, subject to the right to garnish such assets under Massachusetts law.

Following the reorganization, these liquidation rights will remain unchanged, subject to the rights of Eligible Account Holders in the liquidation account established as part of the reorganization and offering, described below. In each case, no person who ceases to be the holder of a deposit account with BayCoast Bank will have any liquidation rights with respect to Narragansett Financial Corporation.

As part of the reorganization, a liquidation account in Narragansett Bancorp, Inc. will be established for the benefit of the Eligible Account Holders. In the unlikely event of a complete liquidation of (i) BayCoast Bank or (ii) BayCoast Bank and Narragansett Bancorp, Inc., each Eligible Account Holder, who continues to maintain a deposit account at BayCoast Bank, would have a claim to a pro-rata interest in the liquidation account after payment of all creditors but prior to any payment to Narragansett Bancorp, Inc., as the sole stockholder of BayCoast Bank's capital stock. See "—Liquidation Account."

**How We Determined the Stock Pricing and the Number of Shares to be Issued** 

The plan of reorganization and applicable regulations require that the aggregate purchase price of the common stock sold in the offering be based on the appraised pro forma market value of the common stock, as determined by an independent valuation. We have retained RP Financial to prepare an independent valuation appraisal. For its services in preparing the initial valuation, RP Financial will receive a fee of $125,000. RP Financial will receive $10,000 for each appraisal update, and will be reimbursed for its expenses up to $10,000. We previously paid RP Financial $10,000 for the preparation of a preliminary appraisal report. We have otherwise paid RP Financial no other fees during the previous three years. We have agreed to indemnify RP Financial and its employees and affiliates against specified losses, including any losses in connection with claims under the federal securities laws, arising out of its services as independent appraiser, except where such liability results from its negligence, bad faith or willful misconduct.

The independent valuation was prepared by RP Financial in reliance upon the information contained in this prospectus, including our consolidated financial statements. RP Financial also considered the following factors, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our present results and financial condition and our projected results and financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the economic and demographic conditions in our existing market area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a comparative evaluation of our operating and financial characteristics with those of other publicly traded
savings institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of the offering on our stockholders' equity and earnings potential;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our proposed dividend policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the trading market for securities of comparable institutions and general conditions in the market for such
securities.

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The independent valuation is also based on an analysis of a peer group of publicly traded bank holding companies and savings and loan holding companies that RP Financial considered comparable to us under regulatory guidelines applicable to the independent valuation. Under these guidelines, a minimum of ten peer group companies are selected from the universe of all publicly traded financial institutions and financial institution holding companies with relatively comparable resources, strategies and financial and other operating characteristics. Such companies must also be traded on an exchange (such as the Nasdaq Stock Market or the New York Stock Exchange). The peer group companies selected also consisted of fully converted stock institutions that were not subject to an actual or rumored acquisition and that had been in fully converted form for at least one year. In addition, RP Financial limited the peer group to fully converted thrift institutions and their holding companies with assets between $1.5 billion and $8.0 billion and positive reported and/or core earnings.

In applying each of the valuation methods, RP Financial considered adjustments to the pro forma market value based on a comparison of Narragansett Bancorp, Inc. with the peer group. RP Financial advised the board of directors that the valuation conclusion included the following adjustments relative to the peer group. In applying each of the valuation methods, RP Financial considered adjustments to the pro forma market value based on a comparison of Narragansett Bancorp, Inc. with the peer group. RP Financial advised the board of directors that the valuation conclusion included the following adjustments relative to the peer group. RP Financial made a moderate downward adjustment for profitability, growth and viability of earnings and slight downward adjustments for financial condition, asset growth and dividends. RP Financial made no adjustments for liquidity of the shares, marketing of the issue, management, primary market area, and effect of government regulations and regulatory reform. The downward adjustment for profitability, growth and viability of earnings took into consideration Narragansett Bancorp, Inc.'s less favorable efficiency ratio and lower pro forma returns as a percent of assets and equity relative to the comparable peer group measures. The downward adjustment for financial condition took into consideration Narragansett Bancorp, Inc.'s lower pro forma tangible equity-to-assets ratio and less favorable credit quality measures. The downward adjustment for dividends took into consideration the mutual holding company ownership structure and dividend waiver regulations in place for mutual holding companies that impact minority ownership ratios, in comparison to the fully-converted peer group companies, as well Narragansett Bancorp, Inc.'s lower pro forma return as a percent of assets and lower pro forma equity-to-assets ratio. The downward adjustment for asset growth took into consideration Narragansett Bancorp, Inc.'s lower historical asset growth and lower pro forma leverage capacity based on its lower pro forma equity-to-assets ratio.

Included in RP Financial's independent valuation were certain assumptions as to the pro forma earnings of Narragansett Bancorp, Inc. after the offering that were used in determining the appraised value. These assumptions included estimated offering expenses, an assumed after-tax rate of return of 2.94% (the tax-adjusted yield on the one-year U.S. Treasury as of March 31, 2026) on the net offering proceeds and purchases in the open market of common stock by the stock-based benefit plan at the $10.00 per share purchase price in the offering. See "Pro Forma Data" for additional information concerning the assumptions included in the independent valuation and used in preparing the pro forma data. The use of different assumptions may yield different results.

The independent valuation indicates that as of May 4, 2026, the estimated pro forma market value of the common stock, assuming we were selling a minority of our shares in the offering, was $160.0 million. Based on applicable regulations, this forms a midpoint of a valuation range with a minimum of $136.0 million and a maximum of $184.0 million. Our board of directors determined to offer the shares of common stock in the offering at the purchase price of $10.00 per share and that 43% of our outstanding shares should be held by purchasers in the offering, 55% of our outstanding shares should be held by Narragansett Financial Corporation and 2% of our outstanding shares should be contributed to the charitable foundation. Based on the estimated valuation range and the purchase price of $10.00 per share, the total number of shares of common stock that Narragansett Bancorp, Inc. will issue will range from 13,600,000 to 18,400,000 shares, with a midpoint of 16,000,000 shares (including in each case shares issued to Narragansett Financial Corporation), and the number of shares sold in the offering will range from 5,848,000 shares to 7,912,000 shares, with a midpoint of 6,880,000 shares.

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Following commencement of the subscription offering, the maximum of the estimated valuation range may be increased by up to 15%, to up to $211.6 million and the maximum number of shares that will be outstanding immediately following the offering may be increased up to 15% to up to 21,160,000 shares. Under such circumstances the number of shares sold in the offering will be increased to up to 9,098,800 shares and the number of shares held by Narragansett Financial Corporation will be increased to up to 11,638,000 shares. The increase in the valuation range may occur to reflect demand for the shares or changes in market conditions, without the resolicitation of subscribers.

Our board of directors reviewed the independent valuation and considered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a comparison of financial performance ratios to other financial institutions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• stock market conditions generally and, in particular, for financial institutions.

All of these factors are set forth in the independent valuation. Our board of directors also reviewed the methodology and the assumptions used by RP Financial in preparing the independent valuation. The estimated valuation range may be amended with the approval of the Massachusetts Commissioner of Banks and the Federal Reserve Board, if required, as a result of subsequent developments in our financial condition or market conditions generally. In the event the independent valuation is updated to amend our pro forma market value to less than $136.0 million or more than $211.6 million, the updated appraisal will be filed with the Securities and Exchange Commission by means of a post-effective amendment to our registration statement.

**The independent valuation is not intended, and must not be construed, as a recommendation of any kind as to the advisability of purchasing our shares of common stock. RP Financial did not independently verify the financial statements and other information we provided, nor did RP Financial independently value our assets or liabilities. The independent valuation considers Narragansett Bancorp, Inc. as a going concern and should not be considered as an indication of its liquidation value. Moreover, because the valuation is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons purchasing shares in the offering will thereafter be able to sell such shares at prices at or above the $10.00 per share purchase price.** 

The independent valuation will be updated at the time of the completion of the offering. If the update to the independent valuation at the conclusion of the offering results in an increase in the pro forma market value of the common stock to more than $211.6 million or a decrease in the pro forma market value to less than $136.0 million, then we will return all funds promptly, with interest at 0.10% per annum on all funds previously delivered to us to purchase shares of common stock in the subscription and community offerings and cancel deposit account withdrawal authorizations and, after consulting with the Massachusetts Commissioner of Banks and the Federal Reserve Board, we may terminate the offering. Alternatively, we may establish a new offering range, extend the offering period and commence a resolicitation of purchasers or take such other actions as may be permitted by the Federal Reserve Board, the Massachusetts Commissioner of Banks and FINRA to complete the offering. In the event that a resolicitation is commenced due to a change in the independent valuation, purchasers will be given the opportunity to place a new order for a specified period of time. A resolicitation, if any, following the conclusion of the subscription and community offerings, would not extend beyond [final extension date], unless an extension is granted by the Federal Reserve Board and the Massachusetts Commissioner of Banks.

An increase in the number of shares to be issued in the offering would decrease both a subscriber's ownership interest and Narragansett Bancorp, Inc.'s pro forma earnings and stockholders' equity on a per share basis while decreasing pro forma earnings and increasing stockholders' equity on an aggregate basis. A decrease in the number of shares of common stock to be issued in the offering would increase both a subscriber's ownership interest and Narragansett Bancorp, Inc.'s pro forma earnings and stockholders' equity on a per share basis while increasing pro forma net income and decreasing stockholders' equity on an aggregate basis.

Copies of the independent valuation appraisal report of RP Financial and the detailed memorandum setting forth the method and assumptions used in the appraisal report are filed as exhibits to the documents specified under "Where You Can Find Additional Information."

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**Subscription Offering and Subscription Rights** 

In accordance with the plan of reorganization, rights to subscribe for shares of common stock in the subscription offering have been granted in the following descending order of priority. The filling of all subscriptions that we receive will depend on the availability of common stock after satisfaction of all subscriptions of all persons having prior rights in the subscription offering and on the purchase and ownership limitations set forth in the plan of reorganization and as described below under "—Additional Limitations on Common Stock Purchases."

***Priority 1: Eligible Account Holders*.** Subject to the maximum purchase limitations, each Eligible Account Holder (depositor with aggregate deposit balances of $50 or more at BayCoast Bank as of the close of business on May 31, 2025) will receive non-transferable subscription rights to subscribe for up to the greater of $300,000 of common stock, 0.10% of the total number of shares of common stock offered in the offering, or 15 times the product (rounded down to the nearest whole number) of the total number of shares of common stock to be offered in the offering multiplied by a fraction, the numerator of which is the amount of the Qualifying Deposit of the Eligible Account Holder and the denominator is the total amount of Qualifying Deposits of all Eligible Account Holders.

If there are insufficient shares available to satisfy all subscriptions, shares will first be allocated so as to permit each Eligible Account Holder to purchase a number of shares sufficient to make his or her total allocation equal to the lesser of 100 shares or the number of shares for which he or she subscribed. Thereafter, any remaining unallocated shares will be allocated to each remaining Eligible Account Holder whose subscription remains unfilled in the same proportion that the amount of his or her Qualifying Deposit bears to the total amount of Qualifying Deposits of all subscribing Eligible Account Holders whose subscriptions remain unfilled. If an amount so allocated exceeds the amount subscribed for by any one or more Eligible Account Holders, the excess shall be reallocated among those Eligible Account Holders whose subscriptions are not fully satisfied until all available shares have been allocated.

To ensure proper allocation of stock, each Eligible Account Holder must list on his or her stock order form all deposit accounts in which he or she had an ownership interest on May 31, 2025. Failure to list an account, or providing incorrect information, could result in fewer shares being allocated than if all accounts had been properly disclosed. In the event of an oversubscription, the subscription rights of Eligible Account Holders who are also our directors, trustees, corporators or officers, or who are associates of such persons, will be subordinated to the subscription rights of other Eligible Account Holders to the extent attributable to their increased deposits in the one year preceding May 31, 2025.

***Priority 2: Tax-Qualified Employee Plans*.** Our tax-qualified employee plans, such as our employee stock ownership plan, will receive non-transferable subscription rights to purchase up to 10% of the aggregate number of shares of common stock sold in the offering and contributed to the charitable foundation. The employee stock ownership plan intends to purchase 8% of the aggregate number of shares sold in the offering and contributed to the charitable foundation. In the event the number of shares offered in the offering is increased above the maximum of the valuation range, tax-qualified employee plans will have a priority right to purchase any shares exceeding that amount up to 10% of the shares of common stock issued to persons other than Narragansett Financial Corporation in the offering. If market conditions warrant, in the judgement of its trustees, the employee stock ownership plan may elect to purchase shares in the open market following the completion of the offering, subject to the prior approval of the Federal Reserve Board and the Massachusetts Commissioner of Banks.

***Priority 3: Employees, Officers, Directors, Trustees and Corporators.*** To the extent that there are sufficient shares of common stock remaining after satisfaction of subscriptions by Eligible Account Holders and tax-qualified plans, each employee, officer, director, trustee and corporator of BayCoast Bank or Narragansett Financial Corporation at the time of the offering who is not eligible in the first priority category will receive, without payment therefor, subject to the overall purchase limitations, non-transferable subscription rights to purchase up to $300,000 of common stock; provided, however, that the aggregate number of shares of common stock that may be purchased by employees, officers, directors, trustees and corporators and their associates in the offering shall be limited to 25% of the total number of shares of common stock issued in the offering (including

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shares purchased by employees, officers, directors, trustees and corporators under this priority and under the preceding priority categories, but not including shares purchased by the employee stock ownership plan). In the event that persons in this category subscribe for more shares of stock than are available for purchase by them, shares will be allocated among such subscribing persons on an equitable basis, such as by giving weight to order size, period of service, compensation and position of the individual subscriber.

***Expiration Date.*** The subscription offering will expire at 12:00 noon, Eastern Time, on [expiration date], unless extended by us for up to 45 days following the expiration of the subscription offering or such additional periods with any required approval of the Massachusetts Commissioner of Banks and the Federal Reserve Board. We may decide to extend the expiration date of the subscription offering for any reason, whether or not subscriptions have been received for shares at the minimum, midpoint, maximum or adjusted maximum of the offering range. Subscription rights which have not been exercised prior to the expiration date will become void.

We will not execute orders until at least the minimum number of shares of common stock has been sold in the offering. If at least the minimum number of shares has not been sold in the offering by [extension date] and we have not received any required approval of the Massachusetts Commissioner of Banks and the Federal Reserve Board with respect to an extension, all funds delivered to us to purchase shares of common stock in the offering will be returned promptly, with interest at 0.10% per annum for funds received in the subscription and community offerings, and all deposit account withdrawal authorizations will be canceled. If we receive any required regulatory approval of the Massachusetts Commissioner of Banks and the Federal Reserve Board for an extension beyond [extension date], we will resolicit purchasers in the offering as described under "—Procedure for Purchasing Shares in Subscription and Community Offerings—Expiration Date."

**Community Offering** 

To the extent that shares of common stock remain available for purchase after satisfaction of all subscriptions of Eligible Account Holders, our tax-qualified employee stock benefit plans and employees, officers trustees and corporators, we will offer shares pursuant to the plan of reorganization to members of the general public in a community offering. Shares will be offered in the community offering with the following preferences:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• natural persons residing (including trusts of natural persons and business entities with its principal place of
business or headquarters) in the Massachusetts cities and towns of Acushnet, Attleboro, Avon, Bellingham, Berkley, Braintree, Brookline, Canton, Cohasset, Dartmouth, Dedham, Dighton, Dover, Easton, Fairhaven, Fall River, Foxborough, Franklin,
Freetown, Holbrook, Mansfield, Medfield, Medway, Millis, Milton, Needham, New Bedford, Norfolk, North Attleboro, Norton, Norwood, Plainville, Quincy, Randolph, Raynham, Rehoboth, Seekonk, Sharon, Somerset, Stoughton, Swansea, Taunton, Walpole,
Wellesley, Westport, Westwood, Weymouth and Wrentham, and the Rhode Island cities and towns of Barrington, Bristol, Burrillville, Central Falls, Cranston, Cumberland, East Providence, Foster, Glocester, Jamestown, Johnston, Lincoln, Little Compton,
Middletown, Newport, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Scituate, Smithfield, Tiverton, Warren and Woonsocket; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other members of the general public.

Subject to the maximum purchase limitations, these persons may purchase up to $300,000 of common stock. See "—Additional Limitations on Common Stock Purchases." **The opportunity to order shares of common stock in the community offering category is subject to our right, in our sole discretion, to accept or reject any such orders in whole or in part, either at the time of receipt of an order or as soon as practicable thereafter.**

If we do not have sufficient shares of common stock available to fill the orders of natural persons residing (including trusts of natural persons and business entities with its principal place of business or headquarters) in the Massachusetts cities and towns of Acushnet, Attleboro, Avon, Bellingham, Berkley, Braintree, Brookline, Canton, Cohasset, Dartmouth, Dedham, Dighton, Dover, Easton, Fairhaven, Fall River, Foxborough, Franklin, Freetown,

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Holbrook, Mansfield, Medfield, Medway, Millis, Milton, Needham, New Bedford, Norfolk, North Attleboro, Norton, Norwood, Plainville, Quincy, Randolph, Raynham, Rehoboth, Seekonk, Sharon, Somerset, Stoughton, Swansea, Taunton, Walpole, Wellesley, Westport, Westwood, Weymouth and Wrentham, and the Rhode Island cities and towns of Barrington, Bristol, Burrillville, Central Falls, Cranston, Cumberland, East Providence, Foster, Glocester, Jamestown, Johnston, Lincoln, Little Compton, Middletown, Newport, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Scituate, Smithfield, Tiverton, Warren and Woonsocket, whose orders are accepted, we will allocate the available shares among those persons in a manner that permits each of them, to the extent possible, to purchase the lesser of 100 shares, or the number of shares ordered by such person. Thereafter, unallocated shares will be allocated among natural persons living in those cities and towns whose orders remain unsatisfied on an equal number of shares basis per order. If an oversubscription occurs due to the orders of members of the general public, the allocation procedures described above will apply to the stock orders of such persons. In connection with the allocation process, orders received for shares of common stock in the community offering will first be filled up to a maximum of 2% of the shares offered in the offering, and thereafter any remaining shares will be allocated on an equal number of shares basis per order until all shares have been allocated.

The term "residing" or "resident" as used in this prospectus with respect to the community means any person who occupies a dwelling within the local community, has an intent to remain within the local community for a period of time, and manifests the genuineness of that intent by establishing an ongoing physical presence within the local community together with an indication that such presence within the local community is not merely transitory in nature. We may utilize deposit or loan records or other evidence provided to us to determine whether a person is a resident. In all cases, however, the determination shall be in our sole discretion.

***Expiration Date.*** A community offering may begin concurrently with, during or promptly after the subscription offering, and must terminate no more than 45 days following the subscription offering, unless extended with any required approval of the Massachusetts Commissioner of Banks and the Federal Reserve Board. We may decide to extend the community offering for any reason. We are not required to give purchasers notice of any such extension unless such period extends beyond [extension date], in which event we will resolicit purchasers.

**Syndicated Offering** 

If feasible, our board of directors may decide to offer for sale shares of common stock not sold in the subscription and community offerings in a syndicated offering, subject to such terms, conditions and procedures as we may determine, in a manner that will achieve a wide distribution of our shares of common stock.

If a syndicated offering is held, Piper Sandler will act as sole manager. In such capacity, Piper Sandler may form a syndicate of other brokers-dealers who are member firms of FINRA. Neither Piper Sandler nor any registered broker-dealer will have any obligation to take or purchase any shares of the common stock in the syndicated offering; however, Piper Sandler has agreed to use its best efforts in the sale of shares in any syndicated offering. We have not selected any particular broker-dealers to participate in a potential syndicated offering and will not do so until prior to the commencement of a syndicated offering. The shares of common stock will be sold at the same price per share ($10.00 per share) that the shares are sold in the subscription offering and the community offering.

In the event of a syndicated offering, it is currently expected that investors would follow the same general procedures applicable to purchasing shares in the subscription and community offerings (the use of stock order forms and the submission of funds directly to Narragansett Bancorp, Inc. for the payment of the purchase price of the shares ordered) except that payment must be in immediately available funds (bank checks, money orders, deposit account withdrawals from accounts at BayCoast Bank or wire transfers). See "—Procedure for Purchasing Shares in the Subscription and Community Offerings."

A syndicated offering must terminate by [extension date], unless extended by us, with any required approval of the Massachusetts Commissioner of Banks and the Federal Reserve Board.

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If for any reason we cannot effect a syndicated offering of shares of common stock not purchased in the subscription and community offerings, or if there are an insignificant number of shares remaining unsold after such offerings, we will try to make other arrangements for the sale of unsubscribed shares. The Federal Reserve Board, the Massachusetts Commissioner of Banks and FINRA must approve any such arrangements.

**Additional Limitations on Common Stock Purchases** 

The plan of reorganization includes the following additional limitations on number of shares of common stock that may be purchased in the offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No individual, or individuals exercising subscription rights through a single Qualifying Deposit account held
jointly, may purchase more than $300,000 (30,000 shares) in the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Except for the employee stock ownership plan, as described above, no person or entity, together with associates
or persons acting in concert with such person or entity, may purchase more than $500,000 (50,000 shares) of common stock in all categories of the offering combined;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tax qualified employee benefit plans, including our employee stock ownership plan, may purchase in the aggregate
up to 10% of the shares of common stock sold in the offering and contributed to the charitable foundation, including shares issued in the event of an increase in the offering range of up to 15%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No person may purchase fewer than 25 shares of common stock, to the extent those shares are available for
purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The aggregate number of shares of common stock that may be purchased in all categories of the offering by
officers, directors, trustees and corporators of BayCoast Bank or Narragansett Financial Corporation and their associates may not exceed 25% of the total shares sold in the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The aggregate amount of outstanding common stock owned or controlled by persons other than Narragansett Financial
Corporation at the close of the offering must be less than 49% of Narragansett Bancorp, Inc.'s total outstanding common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The aggregate amount of common stock acquired in the offering by any nontax-qualified employee plan or any
insider and his or her associates, exclusive of any stock acquired by such plan or insider and his or her associates in the secondary market, must not exceed 10% of the outstanding shares of common stock, or 10% of the stockholders' equity of
Narragansett Bancorp, Inc., held by persons other than Narragansett Financial Corporation at the close of the offering. In calculating the number of shares held by any insider or associate, shares held by any tax-qualified employee plan or nontax-qualified employee plan that are attributable to such person shall not be counted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The aggregate amount of common stock acquired in the offering by any one or more tax-qualified employee plans, exclusive of any stock acquired by such plans in the secondary market, must not exceed 10% of the outstanding shares of common stock held by persons other than Narragansett
Financial Corporation at the close of the offering and must not exceed 4.9% of the outstanding shares of common stock at the close of the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The aggregate amount of stock, whether common or preferred, acquired in the offering by any one or more tax-qualified employee plans, exclusive of any stock acquired by such plans in the secondary market, must not exceed 10% of the stockholders' equity of Narragansett Bancorp, Inc. held by persons other than
Narragansett Financial Corporation at the close of the offering and must not exceed 4.9% of the stockholders' equity of Narragansett Bancorp, Inc. at the close of the offering;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The aggregate amount of common stock acquired in the offering by all nontax-qualified employee plans, insiders
and associates of insiders, exclusive of any stock acquired by such plans, insiders, and associates in the secondary market, must not exceed 25% of the outstanding shares of common stock held by persons other than Narragansett Financial Corporation
at the close of the offering. In calculating the number of shares held by insiders and their associates, shares held by any tax-qualified employee plan or nontax-qualified employee plan that are attributable
to such persons shall not be counted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The aggregate amount of stock, whether common or preferred, acquired in the offering by all nontax-qualified
employee plans, insiders and associates of insiders, exclusive of any stock acquired by such plans, insiders and associates in the secondary market, shall not exceed 25% of the stockholders' equity of Narragansett Bancorp, Inc. held by persons
other than Narragansett Financial Corporation at the close of the offering. In calculating the number of shares held by insiders and their associates, shares held by any tax-qualified employee plan or
nontax-qualified employee plan that are attributable to such persons shall not be counted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The aggregate amount of common stock acquired by all stock benefit plans of Narragansett Bancorp, Inc. and
BayCoast Bank, other than employee stock ownership plans, shall not exceed 25% of the outstanding common stock held by persons other than Narragansett Financial Corporation at the close of the offering.

Depending on market or financial conditions, our board of directors, with regulatory approval, may increase or decrease the purchase limitations. If a purchase limitation is increased, subscribers in the subscription offering who ordered the maximum amount will be given the opportunity to increase their orders up to the then applicable limit. The effect of this type of resolicitation will be an increase in the number of shares of common stock owned by persons who choose to increase their orders. In the event that the maximum purchase limitation is increased to 5% of the shares sold in the offering, such limitation may be further increased to 9.99%, provided that orders for shares of common stock exceeding 5% of the shares sold in the offering shall not exceed in the aggregate 10% of the total shares sold in the offering.

The term "associate" of a person (which includes an entity) means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any corporation or organization (other than BayCoast Bank, Narragansett Bancorp, Inc. or Narragansett Financial
Corporation or a majority-owned subsidiary of any of those entities) of which the person is a senior officer, partner or, directly or indirectly, the beneficial owner of 10% or more of any class of equity securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any trust or other estate in which the person has a substantial beneficial interest or serves as a trustee or in
a similar fiduciary capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any relative or spouse of such person, or any relative of such spouse, who either has the same home as the person
or who is a director, trustee or senior officer of BayCoast Bank, Narragansett Bancorp, Inc. or Narragansett Financial Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any person deemed "acting in concert" with the persons listed above.

The following relatives of directors, trustees and officers will be considered "associates" of these individuals regardless of whether they share a household with the director, trustee or officer: any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law. This also includes adoptive relationships.

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The term "acting in concert" means persons seeking to combine or pool their voting or other interests in the securities of an issuer for a common purpose, pursuant to any contract, understanding, relationship, agreement or other arrangement, whether written or otherwise. When persons act together for such purpose, their group is deemed to have acquired their stock. The determination of whether a group is acting in concert shall be made solely by us and may be based on any evidence upon which we choose to rely, including, without limitation, joint account relationships or the fact that such persons have filed joint Schedules 13D with the Securities and Exchange Commission with respect to other companies; provided, however, that the determination of whether a group is acting in concert remains subject to review by the Massachusetts Commissioner of Banks. Persons who have the same address, whether or not related, will be deemed to be acting in concert unless we determine otherwise. Our directors and trustees are not treated as associates of each other solely because of their membership on the board of directors or trustees.

Shares of common stock purchased in the offering will be freely transferable except for shares of common stock purchased by directors and certain officers of BayCoast Bank or Narragansett Bancorp, Inc. and except as described below. Any purchases made by any associate of BayCoast Bank or Narragansett Bancorp, Inc. for the explicit purpose of meeting the minimum number of shares of common stock required to be sold in order to complete the offering shall be made for investment purposes only and not with a view toward redistribution. In addition, under FINRA guidelines, members of FINRA and their associates are subject to certain restrictions on transfer of securities purchased in accordance with subscription rights and to certain reporting requirements upon purchase of these securities. For a further discussion of limitations on purchases of our shares of common stock at the time of offering and thereafter, see "—Restrictions on Purchase or Transfer of Our Shares after the Offering" and "Restrictions on Acquisition of Narragansett Bancorp, Inc. and BayCoast Bank."

**Plan of Distribution; Selling Agent Compensation** 

***Subscription and Community Offerings*.** To assist in the marketing of our shares of common stock in the subscription and community offerings, we have retained Piper Sandler, which is a broker-dealer registered with FINRA. In its role as marketing agent, Piper Sandler will assist us on a best efforts basis in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consulting as to the marketing implications of the plan of reorganization, including the percentage of our common
stock to be offered in the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and discussing the securities market implications and the financial impact of the offering, based upon
the independent appraiser's appraisal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing all offering documents, including the prospectus, stock order forms and related offering materials (we
are responsible for the preparation and filing of such documents);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting in the design and implementation of a marketing strategy for the offering, and the drafting and
distribution of press releases as required or appropriate in connection with the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting management in scheduling and preparing for meetings with potential investors and/or other
broker-dealers in connection with the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting us in analyzing proposals from outside vendors retained in connection with the offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing such other general advice and assistance as may be reasonably necessary and agreed upon to promote the
successful completion of the offering.

For these services, Piper Sandler will receive a fee of (a) 1.35% of the aggregate dollar amount of shares sold in the subscription offering, *plus* (b) 3.00% of the aggregate dollar amount of shares sold in the community offering, excluding shares purchased by or on behalf of (i) any employee benefit plan or trust of our's established for the benefit of our directors, trustees, officers and employees, (ii) any director, officer or employee of our's or members of their immediate families (whether directly or through a personal trust), and (iii) one or more charitable foundations controlled by us.

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***Syndicated Offering.*** In the event shares of common stock are sold in a syndicated offering, we will pay fees of 5.00% of the aggregate dollar amount of shares of common stock sold in the syndicated offering to Piper Sandler and any other broker-dealers included in the syndicated offering. All fees payable with respect to a syndicated offering will be in addition to fees payable with respect to the subscription and community offerings.

***Expenses.*** Piper Sandler also will be reimbursed for reasonable out-of-pocket accountable expenses not to exceed $140,000, including fees and expenses of its counsel. Regardless of whether the offering is consummated, Piper Sandler will receive reimbursement for its reasonable out-of-pocket expenses.

**Records Management Agent Services** 

We have also engaged Piper Sandler to provide records management agent services in connection with the offering. In this role, Piper Sandler will assist us in the offering in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consolidating deposit accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• designing and preparing stock order forms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• organizing and supervising the Stock Information Center; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other subscription services.

Piper Sandler will receive a fee of $75,000 for these services, $10,000 of which has been paid as of the date of this prospectus. Piper Sandler also will be reimbursed for reasonable out-of-pocket accountable expenses not to exceed $35,000 without our prior approval. Regardless of whether the offering is consummated, Piper Sandler will receive reimbursement for its reasonable out-of-pocket expenses.

**Indemnification** 

We will indemnify Piper Sandler against liabilities and expenses (including legal fees) incurred in connection with certain claims or litigation arising out of or based upon untrue statements or omissions contained in the offering materials for the common stock, including liabilities under the Securities Act of 1933, as well as certain other claims and litigation arising out of Piper Sandler's engagement with respect to the reorganization and offering.

**Solicitations of Offers by Officers and Directors** 

Our directors and executive officers may participate in the solicitation of offers to purchase shares of common stock in the offering. These persons will be reimbursed for their reasonable out-of-pocket expenses incurred in connection with the solicitation. Other regular employees may participate in the offering, but only in ministerial capacities, and may provide clerical work in effecting a sales transaction. Investment-related questions of prospective purchasers will be directed to executive officers or registered representatives of Piper Sandler. No offers or sales may be made by tellers or at teller stations. Our other employees have been instructed not to solicit offers to purchase shares of common stock or provide advice regarding the purchase of common stock. We will rely on Rule 3a4-1 of the Securities Exchange Act of 1934, and sales of common stock will be conducted within the requirements of such rule, so as to permit officers, directors and employees to participate in the sale of shares of common stock. No officer, director or employee will be compensated in connection with their participation in the offering.

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**Procedure for Purchasing Shares in the Subscription and Community Offerings** 

***Expiration Date.*** The subscription and community offerings will expire at 12:00 noon, Eastern Time, on [expiration date], unless we extend one or both for up to 45 days, with any required approval of the Massachusetts Commissioner of Banks and the Federal Reserve Board. This extension may be approved by us, in our sole discretion, without notice to purchasers in the offering. Any extension of the subscription and/or community offering beyond [extension date] would require regulatory approval. If the offering is so extended, all subscribers will be notified and given an opportunity to confirm, change or cancel their orders. If you do not respond to this notice, we will promptly return your funds with interest at 0.10% and/or cancel your deposit account withdrawal authorization. The offering must be completed by [final extension date], unless an extension is granted by the Federal Reserve Board and the Massachusetts Commissioner of Banks.

Subject to the receipt of applicable regulatory approvals, we reserve the right in our sole discretion to terminate the offering at any time and for any reason, in which case we will cancel any deposit account withdrawal authorizations and promptly return all funds submitted, with interest at 0.10% from the date of processing as described above.

***Prospectus Delivery***. To ensure that each purchaser in the subscription and community offerings receives a prospectus at least 48 hours before the expiration of the offering in accordance with Rule 15c2-8 of the Securities Exchange Act of 1934, we may not mail a prospectus any later than five days prior to the expiration date or hand deliver a prospectus any later than two days prior to that date. We are not obligated to deliver a prospectus or order form by means other than U.S. Mail. Execution of an order form will confirm receipt of delivery of a prospectus in accordance with Rule 15c2-8. Stock order forms will be distributed only if preceded or accompanied by a prospectus.

In a syndicated offering, a prospectus and order form in electronic format may be made available on Internet sites or through other online services maintained by Piper Sandler or one or more other members of the syndicate, or by their respective affiliates. In those cases, prospective investors may view offering terms online and, depending upon the syndicate member, prospective investors may be allowed to place orders online. The members of the syndicate may agree with us to allocate a specific number of shares for sale to online brokerage account holders. Any such allocation for online distributions will be made on the same basis as other allocations.

Other than the prospectus in electronic format, the information on the Internet sites referenced in the preceding paragraph and any information contained in any other Internet site maintained by any member of the syndicate is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or by Piper Sandler or any other member of the syndicate in its capacity as selling agent or syndicate member and should not be relied upon by investors.

***Use of Stock Order Forms in the Subscription and Community Offerings.*** In order to purchase shares of common stock, you must properly complete an original stock order form and remit full payment. We are not required to accept incomplete stock order forms, unsigned stock order forms, or orders submitted on photocopied or facsimiled stock order forms. All stock order forms must be *received*, not postmarked, prior to 12:00 noon, Eastern Time, [expiration date]. We are not required to accept stock order forms that are not received by that time, are executed defectively or are received without full payment or without appropriate deposit account withdrawal instructions. We are not required to notify subscribers of incomplete or improperly executed stock order forms. We have the right (but are not required) to waive or permit the correction of incomplete or improperly executed stock order forms. We do not represent, however, that we will do so, and we have no affirmative duty to notify any prospective purchaser of any such defect.

You may subscribe for shares of common stock in the offering by delivering a signed and completed original stock order form, together with full payment, *received* before 12:00 noon, Eastern Time, on [expiration date], which is the expiration date for the offering. You may submit your stock order form and payment by mail using the stock order reply envelope provided, by paying for overnight delivery to our Stock Information Center at the address noted on the stock order form, or by hand-delivery to the drop box at BayCoast Bank's main office, located at 330 Swansea Mall Drive, Swansea, Massachusetts. Hand-delivered stock order forms will only be accepted at this locations. **Do not mail stock order forms to BayCoast Bank's offices.**

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Once tendered, an order form cannot be modified or revoked without our consent unless the offering is terminated or is extended beyond [extension date], or the number of shares of common stock to be sold is increased to more than 9,098,800 shares or decreased to less than 5,848,000 shares. We reserve the absolute right, in our sole discretion, to reject orders received in the community offering, in whole or in part, at the time of receipt or at any time prior to completion of the offering. If you are ordering shares in the subscription offering, you must represent that you are purchasing shares for your own account and that you have no agreement or understanding with any person for the sale or transfer of the shares. We have the right to reject any order submitted in the offering by a person who we believe is making false representations or who we otherwise believe, either alone or acting in concert with others, is violating, evading, circumventing, or intends to violate, evade or circumvent the terms and conditions of the plan of reorganization. Our interpretation of the terms and conditions of the plan of reorganization and of the acceptability of the order forms will be final.

By signing the order form, you will be acknowledging that the common stock is not a deposit or savings account and is not federally insured or otherwise guaranteed by BayCoast Bank, the FDIC, the federal government or the DIF, and that you received a copy of this prospectus. However, signing the order form will not result in you waiving your rights under the Securities Act of 1933 or the Securities Exchange Act of 1934.

***Payment for Shares.*** Payment for all shares of common stock will be required to accompany all completed stock order forms for the purchase to be valid. Payment for shares in the subscription and community offerings may be made by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• personal check, bank check or money order, payable to Narragansett Bancorp, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• authorization of withdrawal from the types of BayCoast Bank deposit account(s) designated on the stock order
form; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cash.

Cash will only be accepted at our main office, located at 330 Swansea Mall Drive, Swansea, Massachusetts, and will be converted to a bank check. **Please do not submit cash by mail.**

Appropriate means for designating withdrawals from deposit accounts at BayCoast Bank are provided on the stock order form. The funds designated must be available in the account(s) at the time the stock order form is received. A hold will be placed on these funds, making them unavailable to the depositor. Funds authorized for withdrawal will continue to earn interest within the account at the applicable deposit account rate until the offering is completed, at which time the designated withdrawal will be made. Interest penalties for early withdrawal applicable to certificates of deposit will not apply to withdrawals authorized for the purchase of shares of common stock; however, if a withdrawal results in a certificate of deposit account with a balance less than the applicable minimum balance requirement, the certificate of deposit will be cancelled at the time of withdrawal without penalty, and the remaining balance will earn interest at the rate of 0.10% subsequent to the withdrawal. In the case of payments made by personal check, these funds must be available in the account(s). Checks and money orders will be immediately cashed and placed in a segregated account at BayCoast Bank and will earn interest at a rate of 0.10% from the date payment is processed until the offering is completed.

You may not use a check drawn on a BayCoast Bank line of credit or any type of third-party check (a check written by someone other than you, including a check payable to you and endorsed over to Narragansett Bancorp, Inc.). You may not designate on your stock order form a direct withdrawal from a BayCoast Bank retirement account. See "—Using Retirement Account Funds" for information on using such funds. If permitted by the Massachusetts Commissioner of Banks and the Federal Reserve Board, in the event we resolicit large purchasers, as described above in "—Additional Limitations on Common Stock Purchases," such purchasers who wish to increase their purchases will not be able to use personal checks to pay for the additional shares, but instead must pay for the additional shares using immediately available funds. We may accept wire transfers at our sole discretion; no wire transfer will be accepted without our prior approval.

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Once we receive your executed stock order form, it may not be modified, amended or rescinded without our consent, unless the offering is not completed by the expiration date, in which event purchasers may be given the opportunity to increase, decrease or rescind their orders. If you do not respond to this notice, we will promptly return your funds with interest at 0.10% per annum or cancel your deposit account withdrawal authorization. We may resolicit purchasers for a specified period of time.

Regulations prohibit BayCoast Bank from lending funds or extending credit to any person to purchase shares of common stock in the offering.

We have the right, in our sole discretion, to permit institutional investors to submit irrevocable orders together with the legally binding commitment for payment and to thereafter pay for the shares of common stock for which they subscribe in the community offering at any time prior to 48 hours before the completion of the offering. This payment may be made by wire transfer.

Our employee stock ownership plan will not be required to pay for any shares purchased in the offering until completion of the offering, provided there is a loan commitment from either an unrelated financial institution or Narragansett Bancorp, Inc. to lend to the employee stock ownership plan the necessary amount to fund the purchase at the time of the expiration of the subscription offering. In addition, our 401(k) plan will not be required to pay for any shares purchased in the offering until completion of the offering.

***Using Retirement Account Funds.*** If you are interested in using funds in your individual retirement account ("IRA") or other retirement account to purchase shares of common stock in the offering, you must do so through an account offered by a custodian that can hold common stock. By regulation, BayCoast Bank retirement accounts are not capable of holding common stock. Therefore, if you wish to use funds that are currently in a retirement account held at BayCoast Bank, you may not designate on the order form that you wish funds to be withdrawn from the account for the purchase of common stock. The funds you wish to use for the purchase of common stock will instead have to be transferred to an independent trustee or custodian, such as a brokerage firm, which offers the type of retirement accounts that can hold common stock. The purchase must be made through that account. If you do not have such an account, you will need to establish one before placing a stock order. A one-time and/or annual administrative fee may be payable to the independent trustee or custodian. There will be no early withdrawal or Internal Revenue Service interest penalties for these transfers. Individuals interested in using funds in an individual retirement account or any other retirement account, whether held at BayCoast Bank or elsewhere, to purchase shares of common stock should contact our Stock Information Center for guidance as soon as possible, preferably at least two weeks before the [expiration date] offering deadline. You may select the independent trustee or custodian of your choice. However, processing such transactions takes additional time, and whether such funds can be used may depend on limitations imposed by the institutions where such funds are currently held. We cannot guarantee that you will be able to use such funds.

***Delivery of Shares of Common Stock*.** All shares of common stock sold will be issued in book entry form. Stock certificates will not be issued. A statement reflecting ownership of shares of common stock issued in the subscription and community offerings will be mailed by our transfer agent to the persons entitled thereto at the registration address noted by them on their stock order forms as soon as practicable following consummation of the offering. We expect trading in the stock to begin on the business day following the completion of the offering. **Until a statement reflecting ownership of shares of common stock is available and delivered to purchasers, purchasers might not be able to sell the shares of common stock that they purchased, even though the common stock will have begun trading.** Your ability to sell your shares of common stock before receiving your statement will depend on arrangements you may make with a brokerage firm.

***Other Restrictions*.** Notwithstanding any other provision of the plan of reorganization, no person is entitled to purchase any shares of common stock to the extent the purchase would be illegal under any federal or state law or regulation, including state "blue sky" regulations, or would violate regulations or policies of FINRA, particularly those regarding free riding and withholding. We may ask for an acceptable legal opinion from any purchaser as to the legality of his or her purchase and we may refuse to honor any stock order if an opinion is not timely furnished.

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In addition, we are not required to offer shares of common stock to any person who resides in a foreign country or in a state of the United States with respect to which any of the following apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a small number of persons otherwise eligible to subscribe for shares under the plan of reorganization reside in
such state;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the offer or sale of shares of common stock to such persons would require us or our employees to register, under
the securities laws of such state, as a broker, dealer, salesman or agent or to register or otherwise qualify our securities for sale in the state; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• such registration or qualification would be impracticable for reasons of cost or otherwise.

**Restrictions on Transfer of Subscription Rights and Shares** 

**Federal and state regulations prohibit any person with subscription rights, specifically the Eligible Account Holders and employees, officers, directors, trustees and corporators, from transferring or entering into any agreement or understanding to transfer the legal or beneficial ownership of the subscription rights issued under the plan of reorganization or the shares of common stock to be issued upon their exercise. These rights may be exercised only by the person to whom they are granted and only for his or her account. On the order form, you cannot add the names of others for joint stock registration unless they are also named on the qualifying deposit account, and you cannot delete names of others except in the case of certain orders placed through an IRA, Keogh, 401(k) or similar plan, and except in the event of the death of a named eligible depositor. Doing so may jeopardize your subscription rights. Each person exercising subscription rights will be required to certify that he or she is purchasing shares solely for his or her own account and that he or she has no agreement or understanding regarding the sale or transfer of such shares. The regulations also prohibit any person from offering or making an announcement of an offer or intent to make an offer to purchase subscription rights or shares of common stock to be issued upon their exercise prior to completion of the offering.** 

**We intend to pursue any and all legal and equitable remedies in the event we become aware of the transfer of subscription rights, and we will not honor orders that we believe involve the transfer of subscription rights. In addition, eligible subscribers who enter into agreements to allow ineligible investors to participate in the subscription offering may be violating federal and state law and may be subject to civil enforcement actions or criminal prosecution.** 

**How You Can Obtain Additional Information—Stock Information Center** 

Our banking personnel may not, by law, assist with investment-related questions about the offering. If you have questions regarding the offering, please call our Stock Information Center at [stock center number]. The Stock Information Center is open Monday through Friday, between 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed on bank holidays.

**Establishment of Liquidation Account** 

The plan of reorganization provides for the establishment, upon the completion of the offering, of a liquidation account by Narragansett Bancorp, Inc. for the benefit of Eligible Account Holders in an amount equal to the percentage of the shares of common stock issued in the offering to persons other than Narragansett Financial Corporation multiplied by the net worth of BayCoast Bank as of the date of the latest consolidated statement of financial condition contained in this prospectus.

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In the unlikely event of a complete liquidation of (i) BayCoast Bank or (ii) BayCoast Bank and Narragansett Bancorp, Inc., all claims of creditors, including those of depositors, would be paid first. However, except with respect to the liquidation account to be established, a depositor's claim would be solely for the principal amount of his or her deposit accounts plus accrued interest. Depositors generally would not have an interest in the value of the assets of BayCoast Bank or Narragansett Bancorp, Inc. above that amount.

Pursuant to the plan of reorganization, after two years from the date of the offering and upon the written request of the Federal Reserve Board and, if necessary, the Massachusetts Commissioner of Banks, Narragansett Bancorp, Inc. will transfer the liquidation account and the depositors' interests in such account to BayCoast Bank.

Each Eligible Account Holder would have an initial pro-rata interest in the liquidation account for each deposit account, including savings accounts, transaction accounts such as negotiable order of withdrawal accounts, money market deposit accounts, and certificates of deposit, with a balance of $50 or more held in BayCoast Bank as of the close of business on May 31, 2025 equal to the proportion that the balance of such account holder's deposit account as of the close of business on May 31, 2025 bears to the balance of all deposit accounts of all Eligible Account Holders in BayCoast Bank on such dates.

If, however, on any December 31 annual closing date commencing after the effective date of the offering, the amount in any such deposit account is less than the amount in the deposit account as of the close of business on May 31, 2025, or any other annual closing date, then the liquidation account as well as the interest in the liquidation account relating to such deposit account would be reduced from time to time by the proportion of any such reduction, and such interest will cease to exist if such deposit account is closed. In addition, no interest in the liquidation account would ever be increased despite any subsequent increase in the related deposit account. Payment pursuant to liquidation rights of Eligible Account Holders would be separate and apart from the payment of any insured deposit accounts to such depositor. Any assets remaining after the above liquidation rights of Eligible Account Holders are satisfied would be available for distribution to stockholders.

**Material Income Tax Consequences** 

Completion of the reorganization is subject to the prior receipt of an opinion of counsel or tax advisor with respect to the federal and state income tax consequences of the offering to BayCoast Bank, Narragansett Bancorp, Inc., Narragansett Financial Corporation, Eligible Account Holders, employees, officers, directors, trustees and corporators. Unlike private letter rulings, an opinion of counsel or a tax advisor is not binding on the Internal Revenue Service or any state taxing authority, and those authorities may disagree with the opinion. In the event of such disagreement, there can be no assurance that BayCoast Bank, Narragansett Bancorp, Inc. or Narragansett Financial Corporation would prevail in a judicial proceeding.

BayCoast Bank, Narragansett Bancorp, Inc. and Narragansett Financial Corporation have received an opinion of counsel, Luse Gorman, PC, regarding the material federal income tax consequences of the reorganization, which includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Narragansett Financial Corporation will recognize no gain or loss upon the transfer of BayCoast Bank's
stock to Narragansett Bancorp, Inc. in exchange for stock of Narragansett Bancorp, Inc. Narragansett Financial Corporation's basis in the stock of Narragansett Bancorp, Inc. will be the same as its basis in the transferred stock of BayCoast
Bank and the holding period will include the period during which it held the stock of BayCoast Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Narragansett Bancorp, Inc. will recognize no gain or loss upon its receipt of property from Narragansett
Financial Corporation in exchange for common stock of Narragansett Bancorp, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Narragansett Bancorp, Inc.'s basis in the stock of BayCoast Bank received from Narragansett Financial
Corporation will be the same as the basis of the stock in the hands of Narragansett Financial Corporation and the holding period will include the period during which the stock was held by Narragansett Financial Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. It is more likely than not that the fair market value of the interest in the liquidation account will be zero.
Accordingly, it is more likely than not that Eligible Account Holders will not recognize taxable income in connection with the receipt of an inchoate interest in the liquidation account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. It is more likely than not that the fair market value of the subscription rights to purchase shares of common
stock is zero. Accordingly, no gain or loss will be recognized by Eligible Account Holders or employees, officers, directors, trustees and corporators upon the distribution to them of the nontransferable subscription rights to purchase shares of
common stock. Gain realized, if any, by the Eligible Account Holders, and employees, officers, directors, trustees and corporators on the distribution to them of nontransferable subscription rights to purchase shares of common stock will be
recognized but only in an amount not in excess of the fair market value of such subscription rights. Eligible Account Holders, and employees, officers, directors, trustees and corporators will not realize any taxable income as a result of the
exercise by them of the nontransferable subscription rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. It is more likely than not that the basis of the common stock to its stockholders will be the purchase price
thereof. The holding period of the common stock purchased pursuant to the exercise of subscription rights shall commence on the date on which the right to acquire the stock was exercised.

We believe that the tax opinions summarized above address all material federal income tax consequences that are generally applicable to BayCoast Bank, Narragansett Bancorp, Inc., Narragansett Financial Corporation and persons receiving subscription rights. With respect to Item 5, above, Luse Gorman noted that the subscription rights will be granted at no cost to the recipients, are legally non-transferable and of short duration, and will provide the recipient with the right only to purchase shares of common stock at the same price to be paid by members of the general public in any community offering. The firm also noted that the Internal Revenue Service has not in the past concluded that subscription rights have value. Luse Gorman further noted that RP Financial has issued a letter indicating that the subscription rights have no ascertainable value. Based on the foregoing, Luse Gorman, PC believes that it is more likely than not that the non-transferable subscription rights to purchase shares of common stock have no value. However, the issue of whether or not the non-transferable subscription rights have value is based on all the facts and circumstances. If the subscription rights granted are deemed to have an ascertainable value, receipt of these rights could result in taxable gain to those Eligible Account Holders, employees, officers, directors, trustees and corporators who exercise the subscription rights in an amount equal to the ascertainable value, and we could recognize gain on the distribution of such rights. Eligible Account Holders, employees, officers, directors, trustees and corporators are encouraged to consult with their own tax advisors as to the tax consequences if subscription rights are deemed to have an ascertainable value.

The opinion as to the basis in the liquidation account set forth in Item 4 above is based on the position that: (i) no holder of an interest in a liquidation account has ever received any payment attributable to a liquidation of a solvent bank (other than as set forth below); (ii) the interests in the liquidation account are not transferable; (iii) the amounts due under the liquidation account with respect to each Eligible Account Holder will be reduced as their deposits in BayCoast Bank are reduced as of December 31 of every year following the completion of the reorganization; and (iv) holders of an interest in a liquidation account have received payments of their interests in very few instances (out of hundreds of transactions involving mergers, acquisitions and the purchase of assets and assumption of liabilities of holding companies and subsidiary banks) and these instances involved the purchase and assumption of a converted bank's assets and liabilities by a credit union. If such rights are subsequently found to have an economic value as of the effective time of the reorganization, income may be recognized by each Eligible Account Holder in the amount of such fair market value as of the date of the reorganization.

The opinion of Luse Gorman, PC, unlike a letter ruling issued by the Internal Revenue Service, is not binding on the Internal Revenue Service and the conclusions expressed therein may be challenged at a future date. The Internal Revenue Service has issued favorable rulings for transactions substantially similar to the proposed reorganization and offering, but any such ruling may not be cited as precedent by any taxpayer other than the taxpayer to whom the ruling is addressed. We do not plan to apply for a letter ruling concerning the transactions described herein.

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We have also received an opinion from Wolf & Company, P.C. that the Massachusetts income tax consequences are consistent with the federal income tax consequences.

The federal and state tax opinions have been filed with the Securities and Exchange Commission as exhibits to Narragansett Bancorp, Inc.'s registration statement.

**Restrictions on Purchase or Transfer of Our Shares After the Offering** 

All shares of common stock purchased in the offering by a director, trustee, corporator or certain officers of Narragansett Financial Corporation, Narragansett Bancorp, Inc. or BayCoast Bank, or their associates, generally may not be sold for a period of one year following the closing of the offering, except in the event of the death or substantial disability of the individual as determined by the Massachusetts Commissioner of Banks. Each statement of ownership for restricted shares will bear a legend giving notice of this restriction on transfer, and instructions will be issued to the effect that any transfer within this time period of any record or ownership of the shares other than as provided above is a violation of the restriction. Any shares of common stock issued at a later date as a stock dividend, stock split or otherwise with respect to the restricted stock will be similarly restricted. The directors and executive officers of Narragansett Bancorp, Inc. also will be restricted by the insider trading rules under the Securities Exchange Act of 1934.

Purchases of shares of our common stock by any of our directors, trustees, corporators, certain officers and their associates during the three-year period following the closing of the offering may be made only through a broker or dealer registered with the Securities and Exchange Commission, except with the prior written approval of the Federal Reserve Board and the Massachusetts Commissioner of Banks. This restriction does not apply, however, to negotiated transactions involving more than 1% of our outstanding common stock, or to purchases of our common stock by one or more tax-qualified employee stock benefit plans or nontax-qualified employee stock benefit plans, including any stock-based benefit plans.

Federal regulations prohibit Narragansett Bancorp, Inc. from repurchasing its shares of common stock during the first year following the offering unless compelling business reasons exist for such repurchases, or to fund management recognition plans that have been approved by stockholders (with regulatory approval) or tax-qualified employee stock benefit plans. In addition, the repurchase of shares of common stock is subject to Federal Reserve Board policy related to repurchases of shares by financial institution holding companies. Massachusetts regulations prohibit Narragansett Bancorp, Inc. from repurchasing shares of our common stock during the first three years following the completion of the offering except to fund tax-qualified or nontax-qualified employee stock benefit plans, or except in amounts not greater than 5% of our outstanding shares of common stock where compelling and valid business reasons are established to the satisfaction of the Massachusetts Commissioner of Banks.

**THE CHARITABLE FOUNDATION** 

**General** 

In furtherance of our commitment to the communities in our market area, the plan of reorganization provides that we will contribute shares of common stock and a portion of the net proceeds to BayCoast Charitable Foundation, Inc., a charitable foundation we are organizing as part of the reorganization and offering. By further enhancing our visibility and reputation in the communities within our market area, we believe that the charitable foundation will enhance the long-term value of our community banking franchise. The reorganization and offering present us with a unique opportunity to provide an additional benefit to our communities through BayCoast Charitable Foundation, Inc.

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**Purpose of the Charitable Foundation** 

In connection with the closing of the reorganization and offering, we intend to contribute $600,000 in cash and we intend to contribute a number of shares up to 2% of our outstanding shares of common stock (including shares issued to Narragansett Financial Corporation) to the charitable foundation.

The purpose of the charitable foundation is to provide financial support to charitable organizations in our market area. The charitable foundation will be dedicated completely to community activities and the promotion of charitable causes. The charitable foundation will also support our ongoing obligations to the community under the Community Reinvestment Act.

Funding the charitable foundation with shares of common stock will enable the communities that we serve to share in our potential growth and success following the offering, because the charitable foundation will benefit directly from any increases in the value of our shares of common stock. In addition, the charitable foundation will maintain close ties with BayCoast Bank, thereby forming a partnership within the communities in which we operate.

**Structure of the Charitable Foundation** 

The charitable foundation will be incorporated under Delaware law as a non-stock, nonprofit corporation. The certificate of incorporation of the foundation will provide that the corporation is organized exclusively for charitable purposes as set forth in Section 501(c)(3) of the Internal Revenue Code. The certificate of incorporation of the foundation will further provide that no part of the net earnings of the charitable foundation will inure to the benefit of, or be distributable to, its members, directors or officers or to private individuals.

BayCoast Charitable Foundation, Inc.'s board of directors will consist of Nicholas M. Christ, Marie Pellegrino, Diana Taxiera and one other individual who, as required by applicable regulations, is not one of our officers or directors and who has experience with local charitable organizations and grant making. As of the date of this prospectus, we have not selected the individual who satisfies these requirements. For five years after the offering, one seat on each charitable foundation's board of directors will be reserved for a person from our local community who has experience with local community charitable organizations and grant making and who is not one of our officers, directors or employees, and at least one seat on the charitable foundation's board of directors will be reserved for one of our directors.

The board of directors of the charitable foundation will be responsible for establishing grant and donation policies, consistent with the purposes for which the foundation was established. As directors of a nonprofit corporation, directors of the charitable foundation will at all times be bound by their fiduciary duty to advance the charitable foundation's charitable goals, to protect its assets and to act in a manner consistent with the charitable purposes for which the charitable foundation is established. The directors are also responsible for directing the activities of the charitable foundation. However, as required by applicable regulations, all shares of our common stock held by the charitable foundation must be voted in the same ratio as all other shares of our common stock on all proposals considered by our stockholders.

To the extent applicable, we comply with the affiliates restrictions set forth in Sections 23A and 23B of the Federal Reserve Act and Massachusetts banking regulations governing transactions between BayCoast Bank and the charitable foundation.

As a private foundation under Section 501(c)(3) of the Internal Revenue Code, the charitable foundation will be required to distribute annually in grants or donations a minimum of 5% of the average fair market value of its net investment assets.

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**Tax Considerations** 

We believe that the charitable foundation will qualify as a Section 501(c)(3) exempt organization under the Internal Revenue Code and should be classified as a private foundation. We believe that our contribution of shares of common stock and cash to the charitable foundation should not constitute an act of self-dealing and that we should be entitled to a deduction in the amount of the contribution. We are permitted to deduct for charitable purposes only an amount equal to 10% of our annual taxable income in any one year. We are permitted under the Internal Revenue Code to carry the excess contribution over the five-year period following the contribution to the charitable foundation. We estimate that all of the contribution should be deductible over the six-year period (i.e., the year in which the contribution is made and the succeeding five-year period), although we may not have sufficient earnings to be able to use the deduction in full. Any such decision to continue to make additional contributions to the charitable foundation in the future would be based on an assessment of, among other factors, our financial condition at that time, the interests of our stockholders and depositors, and the financial condition and operations of the foundation.

As a private foundation, earnings and gains, if any, from the sale of assets are exempt from federal and state income taxation. However, investment income, such as interest, dividends and capital gains, is generally taxed at a rate of 1.39%. Our charitable foundation will be required to file an annual return with the Internal Revenue Service within four and one-half months after the close of its fiscal year, and will be required to make these annual returns available for public inspection. The annual return for a private foundation includes, among other things, an itemized list of all grants made or approved, showing the amount of each grant, the recipient, any relationship between a grant recipient and the foundation's managers and a concise statement of the purpose of each grant.

**Regulatory Requirements Imposed on the Charitable Foundation** 

Applicable regulations require that, before our board of directors adopted the plan of reorganization, the board of directors had to identify its members that will serve on the charitable foundation's board, and these trustees could not participate in our board's discussions concerning contributions to the charitable foundation, and could not vote on the matter. Our board of directors complied with this regulation in adopting the plan of reorganization.

Applicable regulations further provide that the Federal Reserve Board will generally not object if a well-capitalized financial institution contributes to a charitable foundation an aggregate amount of 8% or less of the shares or proceeds issued in a stock offering. BayCoast Bank qualifies as a well-capitalized financial institution for purposes of this limitation, and the contribution to the charitable foundation will not exceed this limitation.

Federal Reserve Board and Massachusetts Commissioner of Banks regulations impose the following additional requirements on the funding of the charitable foundation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the charitable foundation's primary purpose must be to serve and make grants in our local community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our banking regulators may examine the charitable foundation at the foundation's expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the charitable foundation must comply with all supervisory directives imposed by our banking regulators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the charitable foundation must provide annually to our banking regulators a copy of the annual report that the
charitable foundation submits to the Internal Revenue Service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the charitable foundation must operate according to written policies adopted by its board of directors, including
a conflict of interest policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the charitable foundation may not engage in self-dealing and must comply with all laws necessary to maintain its tax-exempt status under the Internal Revenue Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the charitable foundation must vote its shares of our common stock in the same ratio as all of the other shares
voted on each proposal considered by our stockholders.

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**RESTRICTIONS ON THE ACQUISITION OF NARRAGANSETT BANCORP, INC. AND BAYCOAST BANK** 

The following discussion is a general summary of the material provisions of federal and Massachusetts law and regulations, Narragansett Bancorp, Inc.'s articles of incorporation and bylaws and certain other provisions that may be deemed to have an "anti-takeover" effect. The following description is necessarily general and is not intended to be a complete description of the document or regulatory provision in question. Narragansett Bancorp, Inc.'s articles of incorporation and bylaws are included as part of BayCoast Bank's applications filed with the Massachusetts Commissioner of Banks, Narragansett Bancorp, Inc.'s bank holding company application filed with the Federal Reserve Board and its registration statement filed with the Securities and Exchange Commission. See "Where You Can Find More Information."

**Mutual Holding Company Structure** 

Narragansett Financial Corporation will own a majority of the outstanding common stock of Narragansett Bancorp, Inc. after the offering and, through its board of trustees, will be able to exercise voting control over virtually all matters put to a vote of stockholders. For example, Narragansett Financial Corporation may exercise its voting control to prevent a sale or merger transaction or to defeat a stockholder nominee for election to the board of directors of Narragansett Bancorp, Inc. It will not be possible for another entity to acquire Narragansett Bancorp, Inc. without the consent of Narragansett Financial Corporation. Narragansett Financial Corporation, as long as it remains in the mutual form of organization, will control a majority of the voting stock of Narragansett Bancorp, Inc.

**Articles of Incorporation and Bylaws of Narragansett Bancorp, Inc.** 

Narragansett Bancorp, Inc.'s articles of incorporation and bylaws contain a number of provisions relating to corporate governance and rights of stockholders that might discourage future takeover attempts. As a result, stockholders who might desire to participate in such transactions may not have an opportunity to do so. In addition, these provisions will also render the removal of the board of directors or management of Narragansett Bancorp, Inc. more difficult.

***Directors.*** The board of directors will be divided into three classes. The members of each class will be elected for a term of three years and only one class of directors will be elected annually. Thus, it would take at least two annual elections to replace a majority of the board of directors. The bylaws establish qualifications for board members, including restrictions on affiliations with competitors of BayCoast Bank, restrictions based upon prior legal or regulatory violations and a residency requirement. The bylaws also impose notice and information requirements in connection with the nomination by stockholders of candidates for election to the board of directors or the submission of proposals by stockholders of business to be acted upon at an annual meeting of stockholders. Such notice and information requirements are applicable to all stockholder business proposals and nominations, and are in addition to any requirements under the federal securities laws.

***Evaluation of Offers.*** The articles of incorporation of Narragansett Bancorp, Inc. provide that its board of directors, when evaluating a transaction that would or may involve a change in control of Narragansett Bancorp, Inc. (whether by purchases of its securities, merger, consolidation, share exchange, dissolution, liquidation, sale of all or substantially all of its assets, proxy solicitation or otherwise), may, in connection with the exercise of its business judgment in determining what is in the best interests of Narragansett Bancorp, Inc. and its stockholders and in making any recommendation to the stockholders, give due consideration to all relevant factors, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the economic effect, both immediate and long-term, upon Narragansett Bancorp, Inc.'s stockholders,
including stockholders, if any, who do not participate in the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the social and economic effect on the present and future employees, creditors and customers of, and others
dealing with, Narragansett Bancorp, Inc. and its subsidiaries and on the communities in which it and its subsidiaries operate or are located;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether the proposal is acceptable based on the historical, current or projected future operating results or
financial condition of Narragansett Bancorp, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether a more favorable price could be obtained for Narragansett Bancorp, Inc.'s stock or other securities
in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the reputation and business practices of the other entity to be involved in the transaction and its management
and affiliates as they would affect the employees of Narragansett Bancorp, Inc. and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the future value of the stock or any other securities of Narragansett Bancorp, Inc. or the other entity to be
involved in the proposed transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any antitrust or other legal and regulatory issues that are raised by the proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the business and historical, current or expected future financial condition or operating results of the other
entity to be involved in the transaction, including, but not limited to, debt service and other existing financial obligations, financial obligations to be incurred in connection with the proposed transaction, and other likely financial obligations
of the other entity to be involved in the proposed transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of Narragansett Bancorp, Inc. to fulfill its objectives as a financial institution holding company
and on the ability of its subsidiary financial institution(s) to fulfill the objectives of a federally-insured financial institution(s) under applicable statutes and regulations.

If the board of directors determines that any proposed transaction should be rejected, it may take any lawful action to defeat such transaction.

***Restrictions on Calling Special Meetings.*** The bylaws provide that special meetings of stockholders can be called only by the President, the Chief Executive Officer, the Chairperson of the board of directors, a majority of the total number of directors that Narragansett Bancorp, Inc. would have if there were no vacancies on the board of directors, or the Secretary upon the written request of stockholders entitled to cast at least a majority of all votes entitled to vote at the meeting.

***Prohibition of Cumulative Voting.*** The articles of incorporation prohibit cumulative voting for the election of directors.

***Limitation of Voting Rights.*** The articles of incorporation provide that in no event will any person, other than Narragansett Financial Corporation, who beneficially owns more than 10% of the then-outstanding shares of common stock, be entitled or permitted to vote any of the shares of common stock held in excess of the 10% limit. The 10% limit shall not apply if, before the stockholder acquires shares in excess of the 10% limit, the acquisition is approved by a majority of the directors who are not affiliated with the holder and who were members of the board of directors before the time of the acquisition (or who were chosen to fill any vacancy of an otherwise unaffiliated director by a majority of the unaffiliated directors). This provision has been included in the articles of incorporation in reliance on Section 2-507(a) of the Maryland General Corporation Law, which entitles stockholders to one vote for each share of stock unless the articles of incorporation provide for a greater or lesser number of votes per share or limit or deny voting rights.

***Restrictions on Removing Directors from Office.*** The articles of incorporation provide that directors may be removed only for cause, and only by the affirmative vote of the holders of at least two-thirds of the voting power of all of our then-outstanding capital stock entitled to vote generally in the election of directors (after giving effect to the limitation on voting rights discussed above in "—Limitation of Voting Rights"), voting together as a single class.

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***Stockholder Nominations and Proposals.*** The bylaws provide that any stockholder desiring to make a nomination for the election of directors or a proposal for new business at an annual meeting of stockholders must submit written notice to Narragansett Bancorp, Inc. at least 90 days before and not earlier than 100 days before the anniversary date of the proxy statement relating to the previous year's annual meeting. However, if less than 90 days' prior public disclosure of the date of the meeting is given to stockholders and the date of the annual meeting is advanced by more than 30 days from the anniversary date of the preceding year's annual meeting then stockholders must submit written notice to us no later than 10 days following the day on which public disclosure of the date of the meeting is first made. These requirements are in addition to any requirements under the federal securities laws.

***Authorized but Unissued Shares*.** After the reorganization and offering, we will have authorized but unissued shares of common and preferred stock. See "Description of Capital Stock of Narragansett Bancorp, Inc." The articles of incorporation authorize 60,000,000 shares of common stock and 5,000,000 shares of serial preferred stock. Narragansett Bancorp, Inc. is authorized to issue preferred stock from time to time in one or more series subject to applicable provisions of law, and the board of directors is authorized to fix the preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications and terms and conditions of redemption of such shares. In addition, the articles of incorporation provide that a majority of the total number of directors that Narragansett Bancorp, Inc. would have if there were no vacancies on the board of directors may, without action by the stockholders, amend the articles of incorporation to increase or decrease the aggregate number of shares of stock of any class or series that Narragansett Bancorp, Inc. has the authority to issue. In the event of a proposed merger, tender offer or other attempt to gain control of Narragansett Bancorp, Inc. that the board of directors does not approve, it would be possible for the board of directors to authorize the issuance of a series of preferred stock with rights and preferences that would impede the completion of the transaction. An effect of the possible issuance of preferred stock therefore may be to deter a future attempt to gain control of Narragansett Bancorp, Inc. The board of directors has no present plan or understanding to issue any preferred stock.

***Amendments to Articles of Incorporation and Bylaws.*** Except as provided under "—Authorized but Unissued Shares," above, regarding the amendment of the articles of incorporation by the board of directors to increase or decrease the number of shares authorized for issuance, or as otherwise allowed by law, any amendment to the articles of incorporation must be approved by our board of directors and also by two-thirds of the outstanding shares of our voting stock (or a majority of the outstanding shares of our voting stock if the amendment is approved by two-thirds of our board of directors); provided, however, that approval by at least 80% of the outstanding voting stock is generally required to amend the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the limitation on voting rights of persons who directly or indirectly beneficially own more than 10% of the
outstanding shares of common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the division of the board of directors into three staggered classes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the ability of the board of directors to fill vacancies on the board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the requirement that at least two-thirds of the voting power of the
stockholders must vote to remove directors, and can only remove directors for cause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the ability of the board of directors to amend and repeal the bylaws and the required stockholder vote to amend
or repeal the bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the ability of the board of directors to evaluate a variety of factors in evaluating offers to purchase or
otherwise acquire Narragansett Bancorp, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the authority of the board of directors to provide for the issuance of preferred stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the validity and effectiveness of any action lawfully authorized by the affirmative vote of the holders of a
majority of the total number of outstanding shares of common stock;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the number of stockholders constituting a quorum or required for stockholder consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the advance notice requirements for stockholder proposals and nominations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the indemnification of current and former directors and officers, as well as employees and other agents, by
Narragansett Bancorp, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the limitation of liability of officers and directors to Narragansett Bancorp, Inc. for money damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) the inability of stockholders to cumulate their votes in the election of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) the requirement that the forum for certain actions or disputes will be a state or federal court located within
the State of Maryland; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) the provision of the articles of incorporation requiring approval of at least 80% of the outstanding voting
stock to amend the provisions of the articles of incorporation set forth in (i) through (xiv) of this list and the provisions related to amendment of the articles of incorporation.

The articles of incorporation also provide that the bylaws may be amended by the affirmative vote of a majority of the total number of directors that Narragansett Bancorp, Inc. would have if there were no vacancies on the board of directors or by the stockholders by the affirmative vote of at least 80% of the votes entitled to be cast in the election of directors (after giving effect to the limitation on voting rights discussed above in "—Limitation of Voting Rights").

***Purpose and Anti-Takeover Effects of Narragansett Bancorp, Inc.'s Articles of Incorporation and Bylaws.*** Our board of directors believes that the provisions described above are prudent and will reduce our vulnerability to takeover attempts and certain other transactions that have not been negotiated with and approved by our board of directors. These provisions also will assist us in the orderly deployment of the offering proceeds into productive assets during the initial period after the conversion. We believe these provisions are in the best interests of Narragansett Bancorp, Inc. and its stockholders. Our board of directors believes that it will be in the best position to determine the true value of Narragansett Bancorp and to negotiate more effectively for what may be in the best interests of all our stockholders. Accordingly, our board of directors believes that it is in the best interests of Narragansett Bancorp, Inc. and all of our stockholders to encourage potential acquirers to negotiate directly with the board of directors and that these provisions will encourage such negotiations and discourage hostile takeover attempts. It is also the view of our board of directors that these provisions should not discourage persons from proposing a merger or other transaction at a price reflective of the true value of Narragansett Bancorp, Inc. and that is in the best interests of all our stockholders.

Takeover attempts that have not been negotiated with and approved by our board of directors present the risk of a takeover on terms that may be less favorable than might otherwise be available. A transaction that is negotiated and approved by our board of directors, on the other hand, can be carefully planned and undertaken at an opportune time in order to obtain maximum value for our stockholders, with due consideration given to matters such as the management and business of the acquiring corporation.

Although a tender offer or other takeover attempt may be made at a price substantially above the current market price, such offers are sometimes made for less than all of the outstanding shares of a target company. As a result, stockholders may be presented with the alternative of partially liquidating their investment at a time that may be disadvantageous, or retaining their investment in an enterprise that is under different management and whose objectives may not be similar to those of the remaining stockholders.

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Despite our belief as to the benefits to stockholders of these provisions of Narragansett Bancorp, Inc.'s articles of incorporation and bylaws, these provisions also may have the effect of discouraging a future takeover attempt that would not be approved by our board of directors, but pursuant to which stockholders may receive a substantial premium for their shares over then current market prices. As a result, stockholders who might desire to participate in such a transaction may not have any opportunity to do so. Such provisions will also make it more difficult to remove our board of directors and management. Our board of directors, however, has concluded that the potential benefits outweigh the possible disadvantages.

**Maryland Corporate Law** 

Under Maryland law, "business combinations" between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, statutory share exchange or, in circumstances specified in the statute, certain transfers of assets, certain stock issuances and transfers, liquidation plans and reclassifications involving interested stockholders and their affiliates or issuance or reclassification of equity securities. Maryland law defines an interested stockholder as: (i) any person who beneficially owns 10% or more of the voting power of a corporation's voting stock after the date on which the corporation had 100 or more beneficial owners of its stock; or (ii) an affiliate or associate of the corporation at any time after the date on which the corporation had 100 or more beneficial owners of its stock who, within the two-year period before the date in question, was the beneficial owner of 10% or more of the voting power of the then-outstanding voting stock of the corporation. A person is not an interested stockholder under the statute if the board of directors approved in advance the transaction by which the person otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board of directors.

After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least: (i) 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and (ii) two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder. These super-majority vote requirements do not apply if the corporation's common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.

**Federal Regulations** 

Federal Reserve Board regulations prohibit any person from making an offer, announcing an intent to make an offer or participating in any other arrangement to purchase stock or acquire stock or subscription rights in a converting institution or its holding company from another person prior to completion of its stock offering. Further, without the prior written approval of the Federal Reserve Board, no person may make an offer or announcement of an offer to purchase shares, or actually acquire shares, of BayCoast Bank or Narragansett Bancorp, Inc. for a period of three years from the date of the completion of the reorganization if, upon the completion of such offer, announcement or acquisition, the person would become the beneficial owner of more than 10% of the outstanding stock of the institution or its holding company. The Federal Reserve Board has defined "person" to include any individual, group acting in concert, corporation, partnership, association, joint stock company, trust, unincorporated organization or similar company, a syndicate or any other group formed for the purpose of acquiring, holding or disposing of securities of an insured institution or its holding company. However, offers made exclusively to a bank or its holding company, or to an underwriter or member of a selling group acting on the converting institution's or its holding company's behalf for resale to the general public, are excepted. The regulation also provides civil penalties for willful violation or assistance in any such violation of the regulation by any person connected with the management of the converting institution or its holding company or who controls more than 10% of the outstanding shares or voting rights of a converted institution or its holding company.

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**Massachusetts Regulations** 

Massachusetts regulations provide that, without prior written notice to us and the prior written approval of the Massachusetts Commissioner of Banks, no person may directly or indirectly offer to acquire the beneficial ownership of more than 10% of any class of our equity securities for a period of three years from the date of the completion of the reorganization. Where a person, directly or indirectly, acquires beneficial ownership of more than 10% of any class of our equity securities, without prior written notice to us and the prior written approval of the Massachusetts Commissioner of Banks, the securities beneficially owned by such person in excess of 10% shall not be counted as shares entitled to vote, shall not be voted by any person or counted as voting shares in connection with any matter submitted to the stockholders for a vote, and shall not be counted as outstanding for purposes of determining the affirmative vote necessary to approve any matter submitted to stockholders for a vote, and the Massachusetts Commissioner of Banks may take any further action he may deem appropriate. The regulation provides for civil penalties for a violation of this regulation.

**Change in Control Law and Regulations** 

Under the Change in Bank Control Act, no person, or group of persons acting in concert, may acquire control of a bank holding company such as Narragansett Bancorp, Inc. unless the Federal Reserve Board has been given 60 days' prior written notice and not disapproved the proposed acquisition. The Federal Reserve Board considers several factors in evaluating a notice, including the financial and managerial resources of the acquirer and competitive effects. Control, as defined under the Change in Bank Control Act and applicable regulations, means the power, directly or indirectly, to direct the management or policies of the company or to vote 25% or more of any class of voting securities of the company. Acquisition of more than 10% of any class of a bank holding company's voting securities constitutes a rebuttable presumption of control under certain circumstances, including where, as will be the case with Narragansett Bancorp, Inc., the issuer has registered securities under Section 12 of the Securities Exchange Act of 1934.

In addition, federal regulations provide that no company may acquire control of a bank holding company without the prior approval of the Federal Reserve Board. Control, as defined under the Bank Holding Company Act and Federal Reserve Board regulations, means ownership, control or power to vote 25% or more of any class of voting stock, control in any manner over the election of a majority of the company's directors, or a determination by the Federal Reserve Board that the acquiror has the power to exercise, directly or indirectly, a controlling influence over the management or policies of the company. Any company that acquires such control becomes a "bank holding company" subject to registration, examination and regulation by the Federal Reserve Board. Relevant factors concerning when a company exercises a controlling influence over a bank or bank holding company include the company's voting and nonvoting equity investment in the bank or bank holding company, director, officer and employee overlap and the scope of business relationships between the company and bank or bank holding company. In addition, a bank holding company must obtain Federal Reserve Board approval before acquiring ownership or control of 5% or more of any class of voting stock of a bank or another bank holding company.

**Benefit Plans** 

In addition to the provisions of Narragansett Bancorp, Inc.'s articles of incorporation and bylaws described above, benefit plans of Narragansett Bancorp, Inc. and BayCoast Bank that may authorize the issuance of equity to its board of directors, officers and employees adopted in connection with or following the offering contain or may contain provisions which also may discourage hostile takeover attempts which the board of directors of Narragansett Bancorp, Inc. might conclude are not in the best interests of Narragansett Bancorp, Inc., BayCoast Bank or Narragansett Bancorp, Inc.'s stockholders.

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**DESCRIPTION OF CAPITAL STOCK OF NARRAGANSETT BANCORP, INC.** 

**General** 

Narragansett Bancorp, Inc. is authorized to issue 60,000,000 shares of common stock, par value $0.01 per share and 5,000,000 shares of serial preferred stock, par value $0.01 per share. Each share of Narragansett Bancorp, Inc.'s common stock will have the same relative rights as, and will be identical in all respects with, each other share of common stock. Upon payment of the purchase price for the common stock in accordance with the plan of reorganization, all of the stock will be duly authorized, fully paid and nonassessable. Presented below is a description of the features of Narragansett Bancorp, Inc.'s capital stock that are deemed material to an investment decision with respect to the offering.

The common stock of Narragansett Bancorp, Inc. will represent non-withdrawable capital, will not be an account of an insurable type, and will not be insured by the FDIC, the DIF or any other government agency.

Narragansett Bancorp, Inc. currently expects that it will have a maximum of up to 21,160,000 shares of common stock outstanding after the completion of the offering, of which up to 9,098,800 shares will be held by persons other than Narragansett Financial Corporation. Our board of directors can, without stockholder approval, issue additional shares of common stock, although Narragansett Financial Corporation, so long as it is in existence, must own a majority of Narragansett Bancorp, Inc.'s outstanding shares of common stock. Narragansett Bancorp, Inc.'s issuance of additional shares of common stock could dilute the voting strength of the holders of the common stock and may assist management in impeding an unfriendly takeover or attempted change in control. Narragansett Bancorp, Inc. has no present plans to issue additional shares of common stock other than pursuant to the stock benefit plans previously discussed.

**Common Stock** 

***Dividends.*** Narragansett Bancorp, Inc. can generally pay dividends on its common stock if, after giving effect to such distribution, (i) it would be able to pay its indebtedness as the indebtedness comes due in the usual course of business and (ii) its total assets exceed the sum of its liabilities and the amount needed, if it were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of any holders of capital stock who have a preference in the event of dissolution. The holders of common stock of Narragansett Bancorp, Inc. will be entitled to receive and share equally in dividends as may be declared by the board of directors out of funds legally available therefor. If Narragansett Bancorp, Inc. issues shares of preferred stock, the holders of preferred stock may have a priority over the holders of the common stock with respect to dividends.

***Voting Rights.*** Upon consummation of the reorganization and offering, the holders of common stock of Narragansett Bancorp, Inc. will have exclusive voting rights in Narragansett Bancorp, Inc. They will elect its board of directors and act on other matters as are required to be presented to them under Maryland law or as are otherwise presented to them by the board of directors. Generally, each holder of common stock will be entitled to one vote per share and will not have any right to cumulate votes in the election of directors. Any person other than Narragansett Financial Corporation who beneficially owns more than 10% of the then-outstanding shares of Narragansett Bancorp, Inc.'s common stock, however, will not be entitled or permitted to vote any shares of common stock held in excess of the 10% limit. If Narragansett Bancorp, Inc. issues shares of preferred stock, holders of the preferred stock may also possess voting rights. Amendments to the articles of incorporation generally require a two-thirds vote, and certain amendments require an 80% stockholder vote.

Corporate powers and control of BayCoast Bank in stock form will be vested in its board of directors, who will elect officers and fill any vacancies on the board of directors. Voting rights of BayCoast Bank will be vested exclusively in the owners of the shares of capital stock of BayCoast Bank, which is Narragansett Bancorp, Inc., and voted at the direction of Narragansett Bancorp, Inc.'s board of directors. Consequently, the holders of the common stock of Narragansett Bancorp, Inc. will not have direct control of BayCoast Bank.

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***Liquidation.*** In the event of any liquidation, dissolution or winding up of BayCoast Bank, Narragansett Bancorp, Inc., as the holder of all of BayCoast Bank's capital stock, would be entitled to receive all assets of BayCoast Bank available for distribution, after payment or provision for payment of all debts and liabilities of BayCoast Bank, including all deposit accounts and accrued interest thereon, and after distribution of the balance in the liquidation account to Eligible Account Holders. In the event of liquidation, dissolution or winding up of Narragansett Bancorp, Inc., the holders of its common stock would be entitled to receive, after payment or provision for payment of all its debts and liabilities, all of the assets of Narragansett Bancorp, Inc. available for distribution, after distribution of the balance in the liquidation account to Eligible Account Holders. If preferred stock is issued by Narragansett Bancorp, Inc., the holders thereof may have a priority over the holders of the common stock in the event of liquidation or dissolution.

***Preemptive Rights; Redemption.*** Holders of the common stock of Narragansett Bancorp, Inc. will not be entitled to preemptive rights with respect to any shares that may be issued, unless such preemptive rights are approved by the board of directors. The common stock is not subject to redemption.

**Preferred Stock** 

No shares of Narragansett Bancorp, Inc.'s authorized preferred stock will be issued as part of the reorganization and offering. Preferred stock may be issued with preferences and designations as our board of directors may from time to time determine. Our board of directors may, without stockholder approval, issue shares of preferred stock with voting, dividend, liquidation and conversion rights that could dilute the voting strength of the holders of the common stock and may assist management in impeding an unfriendly takeover or attempted change in control.

**Forum Selection for Certain Stockholder Lawsuits** 

The articles of incorporation of Narragansett Bancorp, Inc. provide that, unless Narragansett Bancorp, Inc. consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of Narragansett Bancorp, Inc., (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of Narragansett Bancorp, Inc. to Narragansett Bancorp, Inc. or Narragansett Bancorp, Inc.'s stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Maryland General Corporation Law, or (iv) any action asserting a claim governed by the internal affairs doctrine shall be a state or federal court located within the State of Maryland, in all cases subject to the court's having personal jurisdiction over the indispensible parties named as defendants. This exclusive forum provision does not apply to claims arising under the federal securities laws. Under the articles of incorporation, any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of Narragansett Bancorp, Inc. shall be deemed to have notice of and consented to the exclusive forum provision of the articles of incorporation. This exclusive forum provision may limit a stockholder's ability to bring a claim in a judicial forum it finds favorable for disputes with Narragansett Bancorp, Inc. and its directors, officers, and other employees or may cause a stockholder to incur additional expense by having to bring a claim in a judicial forum that is distant from where the stockholder resides, or both. See "Risk Factors—Risks Related to the Offering—Our articles of incorporation provide that, subject to limited exception, state and federal courts in the State of Maryland are the sole and exclusive forum for certain stockholders litigation matters, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, and other employees."

**TRANSFER AGENT AND REGISTRAR** 

Continental Stock Transfer & Trust Company, New York, New York, will act as the transfer agent and registrar for the common stock.

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**LEGAL AND TAX MATTERS** 

The legality of the common stock and the federal income tax consequences of the reorganization and offering have been passed upon for BayCoast Bank and Narragansett Bancorp, Inc. by the firm of Luse Gorman, PC, Washington, DC. The Massachusetts income tax consequences of the reorganization and offering have been passed upon for BayCoast Bank and Narragansett Bancorp, Inc. by Wolf & Company, P.C., Boston, Massachusetts. Luse Gorman, PC and Wolf & Company, P.C. have consented to the references in this prospectus to their opinions. Certain legal matters will be passed upon for Piper Sandler by Covington & Burling LLP, Boston, Massachusetts.

**EXPERTS** 

The financial statements of BayCoast Bank as of December 31, 2025 and 2024 and for each of the years in the two-year period ended December 31, 2025, have been audited by Wolf & Company, P.C., an independent registered public accounting firm, as stated in its report thereon and included in this prospectus and registration statement in reliance upon such report of such firm as experts in accounting and auditing.

RP Financial has consented to the publication in this prospectus of the summary of its report to Narragansett Bancorp, Inc. setting forth its opinion as to the estimated pro forma market value of the common stock upon the completion of the offering and its letter with respect to subscription rights.

**WHERE YOU CAN FIND MORE INFORMATION** 

Narragansett Bancorp, Inc. has filed a registration statement with the Securities and Exchange Commission under the Securities Act of 1933, with respect to the common stock offered hereby. As permitted by the rules and regulations of the Securities and Exchange Commission, this prospectus does not contain all the information set forth in the registration statement. The registration statement also is available through the Securities and Exchange Commission's website on the internet at http://www.sec.gov. The statements contained in this prospectus as to the contents of any contract or other document filed as an exhibit to the registration statement are, of necessity, brief descriptions thereof and are not necessarily complete but do contain all material information regarding the documents; each statement is qualified by reference to the contract or document.

BayCoast Bank has filed applications for approval of the reorganization and the offering with the Massachusetts Commissioner of Banks. Narragansett Bancorp, Inc. has filed a bank holding company application with the Federal Reserve Board. The applications filed with the Massachusetts Commissioner of Banks may be inspected, without charge, at the offices of the Massachusetts Division of Banks, One Federal Street Suite 710, Boston, Massachusetts. To obtain a copy of the application filed with the Federal Reserve Board, you may contact Prabal Chakrabarti, Executive Vice President and Community Affairs Officer of the Federal Reserve Bank of Boston, at (617) 973-3959.

The plan of reorganization is available, upon request, at each office of BayCoast Bank. A copy of the articles of incorporation and bylaws of Narragansett Bancorp, Inc. is available without charge from Narragansett Bancorp, Inc.

**REGISTRATION REQUIREMENTS** 

In connection with the offering, Narragansett Bancorp, Inc. will register its common stock with the Securities and Exchange Commission under Section 12(b) of the Securities Exchange Act of 1934. Upon this registration, Narragansett Bancorp, Inc. and the holders of its shares of common stock will become subject to the proxy solicitation rules, reporting requirements and restrictions on stock purchases and sales by directors, officers and greater than 10% stockholders, the annual and periodic reporting and certain other requirements of the Securities Exchange Act of 1934. Under the plan of reorganization, Narragansett Bancorp, Inc. has undertaken that it will not terminate this registration for a period of at least three years following the offering.

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**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS** 

**OF** 

**NARRAGANSETT FINANCIAL CORPORATION AND SUBSIDIARY** 

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| | |
|:---|:---|
|  **Unaudited Consolidated Financial Statements as of March 31, 2026 and for the three months ended March 31, 2026 and 2025.** |  |
|  [Unaudited Consolidated Balance Sheets at March 31, 2026 and December 31, 2025](#fin122170_1) | F-2 |
|  [Unaudited Consolidated Statements of Net Income (Loss) for the Three Months Ended March 31, 2026 and 2025](#fin122170_2) | F-3 |
|  [Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2026 and 2025](#fin122170_3) | F-4 |
|  [Unaudited Consolidated Statements of Changes in Surplus for the Three Months Ended March 31, 2026 and 2025](#fin122170_4) | F-5 |
|  [Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025](#fin122170_5) | F-6 |
|  [Unaudited Notes to Consolidated Financial Statements](#fin122170_6) | F-8 |
|  **Audited Consolidated Financial Statements as of and for the years ended December 31, 2025 and 2024** |  |
|  [Report of Independent Registered Public Accounting Firm (Wolf & Company, P.C., Boston, Massachusetts (PCAOB ID: 392))](#fin122170_8) | F-32 |
|  [Consolidated Balance Sheets at December 31, 2025 and 2024](#fin122170_9) | F-35 |
|  [Consolidated Statements of Net income (Loss) for the years ended December 31, 2025 and 2024](#fin122170_10) | F-36 |
|  [Consolidated Statements of Comprehensive income (Loss) for the years ended December 31, 2025 and 2024](#fin122170_11) | F-37 |
|  [Consolidated Statements of Changes in Retained Earnings for the years ended December 31, 2025 and 2024](#fin122170_12) | F-38 |
|  [Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024](#fin122170_13) | F-39 |
|  [Notes to Consolidated Financial Statements](#fin122170_14) | F-41 |
|  [Supplementary Information: Consolidating Balance Sheet at December 31, 2025](#fin122170_15) | F-101 |
|  [Supplementary Information: Consolidating Statement of Net Income for the years ended December 31, 2025](#fin122170_16) | F-102 |

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Narragansett Financial Corporation and Subsidiary

Consolidated Balance Sheets (Unaudited)

---

| | | |
|:---|:---|:---|
|  | March 31,<br>2026 | December 31,<br>2025 |
|  | (In thousands) | (In thousands) |
|  Assets |  |  |
|  Cash and cash equivalents | $79147 | $38519 |
|  Securities available for sale, at fair value (cost of $350,631 and $345,192, respectively) | 345667 | 342292 |
|  Marketable equity securities, at fair value | 2248 | 2188 |
|  Federal Home Loan Bank stock, at cost | 5469 | 5787 |
|  Loans held for sale, at fair value | 14854 | 21262 |
|  Loans, net of allowance for credit losses of $29,680 at March 31, 2026 and $29,078 at December 31, 2025 | 2239623 | 2236274 |
|  Mortgage servicing rights, net | 14464 | 13991 |
|  Bank-owned life insurance | 41530 | 40962 |
|  Premises and equipment, net | 40846 | 40701 |
|  Accrued interest receivable | 9661 | 10034 |
|  Net deferred tax asset | 5814 | 5841 |
|  Goodwill and other intangible assets | 28024 | 28186 |
|  Equity method investments | 14204 | 14196 |
|  Right of use lease asset | 9816 | 10041 |
|  Other assets | 45488 | 48302 |
|  | $2896855 | $2858576 |
|  Liabilities and Retained Earnings |  |  |
|  Non-interest bearing deposits | $410188 | $394297 |
|  Interest bearing deposits | 2056573 | 2029009 |
|  Short-term borrowings | 50013 | 97533 |
|  Long-term borrowings | 45497 | 530 |
|  Subordinated debt | 94674 | 94578 |
|  Lease liability | 10035 | 10257 |
|  Other liabilities | 43231 | 45526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 2710211 | 2671730 |
|  Retained earnings | 190643 | 189395 |
|  Accumulated other comprehensive loss | (3999) | (2549) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total retained earnings | 186644 | 186846 |
|  | $2896855 | $2858576 |

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The accompanying notes are an integral part of these consolidated financial statements.

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Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Net Income (Loss) (Unaudited)

Three Months Ended March 31, 2026 and 2025

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
|  | 2026 | 2025 |
|  | (In thousands) | (In thousands) |
|  Interest and dividend income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and fees on loans | $31483 | $32467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt securities | 2783 | 2048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income | 114 | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on cash equivalents | 41 | 417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest and dividend income | 34421 | 35192 |
|  Interest expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on deposits | 11401 | 13006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on borrowings | 1277 | 2753 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on subordinated debt | 1577 | 1904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest expense | 14255 | 17663 |
|  Net interest income | 20166 | 17529 |
|  Provision for credit losses | 1700 | 1890 |
|  Net interest income, after provision for credit losses | 18466 | 15639 |
|  Other income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer service fees | 2738 | 2504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loan servicing fee (expense) income | (952) | 127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust department fees | 1635 | 1487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance and brokerage commissions | 4070 | 4035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on securities available for sale, net | 203 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on marketable equity securities | 59 | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sales of portfolio loans | (453) | (527) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage banking income | 4718 | 3411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank-owned life insurance (expense) income | (120) | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 405 | 208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income | 12303 | 11267 |
|  Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits | 19065 | 17214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and equipment | 4117 | 3693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 829 | 771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Data processing | 1187 | 1184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising costs | 607 | 638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit insurance | 698 | 727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 162 | 248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other general and administrative | 2590 | 2659 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 29255 | 27134 |
|  Income (loss) before income taxes | 1514 | (228) |
|  Provision (benefit) for income taxes | 266 | (105) |
|  Net income (loss) | $1248 | $(123) |

---

The accompanying notes are an integral part of these consolidated financial statements.

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Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Comprehensive (Loss) Income (Unaudited)

Three Months Ended March 31, 2026 and 2025

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
|  | 2026 | 2025 |
|  | (In thousands) | (In thousands) |
|  Net income (loss) | $1248 | $(123) |
|  Other comprehensive (loss) income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized holding (losses) gains | (1861) | 3168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustment for amounts realized in income <sup>(1)</sup>  | (203) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (losses) gains | (2064) | 3168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related tax effects | 564 | (877) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net-of-tax amount | (1500) | 2291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative instruments used for cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains (losses) | 69 | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related tax effects | (19) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net-of-tax amount | 50 | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other comprehensive (loss) income | (1450) | 2266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive (loss) income | $(202) | $2143 |

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<sup>(1)</sup> Amounts are reclassified out of accumulated other comprehensive income and are included in gain on securities available for sale, net on the consolidated statements of net income. Income tax expense associated with these gains for the three months ended March 31, 2026 was $57,000. 

The accompanying notes are an integral part of these consolidated financial statements.

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Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Changes in Retained Earnings (Unaudited)

Three Months Ended March 31, 2026 and 2025

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| | | | |
|:---|:---|:---|:---|
|  | Retained<br>Earnings | Accumulated<br>Other<br>Comprehensive<br>Income (Loss) | Total<br>Retained<br>Earnings |
|  | | (In thousands) | |
|  Balance at December 31, 2024 | $183396 | $(12785) | $170611 |
|  Comprehensive (loss) income | (123) | 2266 | 2143 |
|  Balance at March 31, 2025 | $183273 | $(10519) | $172754 |
|  Balance at December 31, 2025 | $189395 | $(2549) | $186846 |
|  Comprehensive income (loss) | 1248 | (1450) | (202) |
|  Balance at March 31, 2026 | $190643 | $(3999) | $186644 |

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The accompanying notes are an integral part of these consolidated financial statements.

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Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended March 31, 2026 and 2025

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
|  | 2026 | 2025 |
|  | (In thousands) | (In thousands) |
|  Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $1248 | $(123) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amortization of securities available for sale | (332) | (140) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on securities available for sale, net | (203) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on marketable equity securities, net | (59) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sales of portfolio loans | 453 | 527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses | 1700 | 1890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage servicing rights capitalized | (2435) | (1310) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of mortgage servicing rights | 1662 | 743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in valuation allowance of mortgage servicing rights | 300 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization of premises and equipment and intangible assets | 1142 | 1235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank-owned life insurance expense (income) | 120 | (37) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses from equity method investments | 6 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax benefit | 573 | 1166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans held for sale | 6408 | 3718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest receivable | 373 | 1147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets and other liabilities | 684 | (4945) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 11640 | 3892 |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales | 26948 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from calls/maturities and principal payment | 24127 | 5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases | (55978) | (19252) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of FHLB stock | (12076) | (498) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of FHLB stock | 12394 | 2269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of bank-owned life insurance | (688) | (784) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of portfolio loans | 45428 | 35148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan originations, net of amortization and payoffs | (50930) | (3446) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions to premises and equipment | (1125) | (916) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the disposal of premises and equipment |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in equity method investments | (14) | (170) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used) provided by investing activities | (11914) | 17354 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended March 31, 2026 and 2025

---

| | | |
|:---|:---|:---|
|  | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
|  | 2026 | 2025 |
|  | (In thousands) | (In thousands) |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in non-brokered deposits | 43455 | 95476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in brokered deposits |  | (22852) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in short term borrowings | (2553) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of long-term debt |  | (55000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from long-term debt |  | 19979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 40902 | 37603 |
|  Net change in cash and cash equivalents | 40628 | 58849 |
|  Cash and cash equivalents at beginning of year | 38519 | 75957 |
|  Cash and cash equivalents at end of year | $79147 | $134806 |
|  Supplemental cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid on deposits | $11486 | $13075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid on borrowings and subordinated debt | 1521 | 3450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid, net | (505) | 300 |
|  Non-cash activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right of use assets obtained in exchange for lease liabilities | $67 | $2 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

**1.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principle generally accepted in the United States of America (U.S. GAAP) for interim financial information. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included.

For additional information and disclosures required under U.S. GAAP, refer to the Company's consolidated financial statements for the year ended December 31, 2025.

Certain previously reported amounts have been reclassified to conform to the current period's presentation.

***Basis of presentation and consolidation***

The consolidated financial statements include the accounts of Narragansett Financial Corporation (collectively, the "Company") and its wholly owned subsidiary, BayCoast Bank (the "Bank"), and the Bank's subsidiaries. Throughout the consolidated financial statements, the Company and the Bank are collectively referred to as the Company.

***Business***

The Company provides a variety of financial services to individuals and businesses through its offices on the Southcoast of Massachusetts and Rhode Island. Its primary deposit products are checking, savings, money market and term certificates, and its primary lending products are residential, commercial, and multi-family mortgages and commercial loans.

The Bank's wholly-owned subsidiaries include BCBOZ Investment, LLC, which holds real estate property; BayCoast Financial Services ("BFS"), which sells non-deposit investment products to individuals and entities; Troy Security Corporation and B.F.R. Corp., which buy, hold, and sell securities on their own behalf; 1851 Corporation, which holds investments and real estate property; BayCoast Insurance, LLC ("BCI"), a wholly-owned subsidiary of BFS, which provides insurance products to consumers and businesses; BayCoast Mortgage Company, LLC ("BCMC"), which originates and sells conforming and jumbo residential mortgages; Stack Ally, LLC ("Stack Ally"), which was established to provide data integration and automation solutions to organizations; Priority Funding, LLC ("Priority Funding") which originates and sells manufactured home loans; and Teamwork Funding, LLC ("Teamwork Funding") a wholly owned subsidiary of Priority Funding, which provides broker lender services for manufactured home loans and primarily conducts business in Arizona; Plimoth Trust Company, LLC, d/b/a Plimoth Investment Advisors ("Plimoth") provides investment management and trust services. Plimoth acts as a fiduciary and provides portfolio and/or trust services to its clients.

All significant intercompany accounts and transactions have been eliminated in consolidation.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

***Reorganization and Stock Offering***

On June 8, 2026, the Board of Trustees of the Company and the Board of Directors of the Bank adopted a Plan of Holding Company Reorganization and Plan of Stock Issuance (the "Plan"). The Plan is subject to the approval of the Massachusetts Division of Banks, and the reorganization must also be approved by the Board of Governors of the Federal Reserve System. The Plan must also be approved by corporators of the Company at a special meeting. Pursuant to the Plan, the Bank will issue all of its outstanding stock to a new mid-tier stock holding company, which will be named Narragansett Bancorp, Inc. Pursuant to the Plan, the new holding company will sell stock to the public, with the total offering value and number of shares of common stock based on an independent appraiser's valuation. Narragansett Bancorp, Inc. will be organized as a corporation under the laws of the State of Maryland and will offer 45% of its common stock to be outstanding to the Bank's eligible depositors, the Bank's employee stock ownership plan being formed in connection with the reorganization, a charitable foundation and certain other persons. The Company will own 55% of the common stock of Narragansett Bancorp, Inc. to be outstanding upon completion of the reorganization and stock issuance.

A liquidation account will be established by Narragansett Bancorp, Inc. for the benefit of eligible account holders equal to the percentage of the shares of common stock issued in the offering to persons other than the Company multiplied by the net worth of the Company as of March 31, 2026.

The costs of the reorganization and the stock issuance will be deferred and deducted from the sales proceeds of the offering. If the reorganization is unsuccessful, all deferred costs will be charged to operations. As of June 8, 2026, $469,000 of reorganization costs had been incurred.

***Use of estimates***

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, deferred taxes, and post-retirement benefit obligations.

***Fair value hierarchy***

The Company groups its assets and liabilities that are measured at fair value in three levels, based on the markets in which they are traded and the reliability of the assumptions used to determine fair value.

Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Valuations are obtained from readily available pricing sources.

Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads, and new issue data for substantially the full term of the assets and liabilities.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include those whose value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar techniques, as well as those for which the determination of fair value requires significant management judgment or estimation.

***Segment Reporting***

The Company adopted FASB ASC 280, Segment Reporting, as amended by the FASB ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This accounting update requires additional reportable segment disclosures on an annual and interim basis, among other requirements. This update does not change how operating segments are identified or aggregated, or how quantitative thresholds are applied to determine the reportable segments.

The Company is engaged in a single line of business as a community bank, which is primarily comprised of providing a variety of financial services to individuals and businesses through its offices on the Southcoast of Massachusetts and Rhode Island. Its primary deposit products are checking, savings, money market and term certificates, and its primary lending products are residential, commercial, and multi-family mortgages and commercial loans. The Company also offers other financial services products including wealth management, and insurance services. The Company has identified its President as the chief operating decision maker ("CODM") who uses net income to evaluate the results of business, predominantly in the forecasting process, and to manage the Company. Additionally, the CODM uses monthly financial reporting, which typically includes consolidated balance sheet and consolidated income statement, net interest margin analysis, loan and deposit balances, asset quality metrics, capital, and liquidity ratios to make business decisions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies.

***Allowance for Credit Losses – Loans***

The Company adopted the current expected credit loss ("CECL") model using the Weighted Average Remaining Maturity method ("WARM") for all financial assets measured at amortized cost and off-balance sheet exposures. Prior periods have not been restated and continue to be presented in accordance with previously applicable GAAP.

The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Such allowance is based on the credit losses expected to arise over the life of the asset (contractual term). The allowance for credit losses on loans is established through a provision for credit losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed.

The allowance for credit losses on loans is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

Management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses.

Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider all of the following: peer losses, changes in lending policy and procedures, changes in nature and volume of the loan portfolio and in the terms of loans, changes in experience, ability and depth of lending management and staff, changes in the quality of the loan review system, changes in the value of underlying collateral for collateral-dependent loans, existence and effect of any concentration of credit and changes in the level of such concentrations, effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio, and the current and forecasted direction of the economic and business environment. Such forecasted information includes: gross domestic product ("GDP") growth, unemployment rates, inflation, interest rates and house price indexes amongst others.

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent without private mortgage insurance and does not generally grant loans that would be classified as sub-prime upon origination. All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Commercial and multi-family real estate – Loans in this segment include owner-occupied and non-owner occupied multi-family and income-producing properties throughout New England. The underlying cash flows generated by the properties would be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, would have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans.

Construction – Loans in this segment include pre-sold and speculative real estate development loans for which payment is derived from sale of the property. The Company also originates construction loans which generally provide 12-month construction periods followed by a permanent mortgage loan, and follow the Bank's normal mortgage underwriting guidelines. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.

Home equity lines of credit ("HELOC") and second mortgages – Loans in this segment are collateralized by residential real estate and payment is dependent on the credit quality of the individual borrower. The Company has first and second liens on property securing these loans.

Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will affect credit quality in this segment.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

Consumer – Loans in this segment include loans secured with collateral and unsecured loans with repayment dependent on the credit quality of the individual borrower.

The Company measures the allowance for credit losses using the WARM method.

The credit loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments. The Company determined segmentation by grouping financial asset types which ensures loans with similar risk characteristics, terms, collateral, loss history, and prepayment speeds are pooled together. For each of these pools, the Company collects historical loss data, dating back to January 2016 and applies the annual historical loss rate over the estimated remaining average life of the loan portfolio segment. The Company incorporates peer data as part of the lookback period for a full economic cycle. The average remaining life of a loan portfolio segment is determined based on asset specific decay rates. The qualitative adjustments to historical loss information are tied to macroeconomic data (GDP, house price index, inflation and unemployment) and peer data. The one-year economic forecast will determine how peer data is incorporated into the model. For periods beyond one year, the Bank will revert to historical loss information.

Although the primary qualitative factor is linked to economic forecasts and peer data, the Bank will consider the following and apply or revise a qualitative factor if deemed necessary, on a periodic basis: 1) Levels of and trends in delinquencies and individually evaluated loans, 2) Levels of and trends in charge-offs and recoveries, 3) Trends in volume and terms of loans, 4) Effects of any changes in risk selection and underwriting, 5) Experience, ability and depth of lending management and other relevant staff, and 6) Effects of changes in credit concentrations, 7) Industry concentrations. The Bank will also review the reasonableness of decay rates used in WARM calculation and apply a qualitative factor if necessary. There were no changes to the Company's accounting policy or methodology during 2025 or through March 31, 2026.

*Individually Evaluated Loans* 

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. For loans that are collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. When the discounted cash flow method is used to determine the allowance for credit losses, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments.

*Accrued Interest Receivable* 

The Company elected not to measure an allowance for credit losses for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectable interest. As of March 31, 2026 and December 31, 2025, accrued interest receivable of $9,661,000 and $10,034,000 respectively, is on the consolidated balance sheets.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

*Allowance for Credit Losses – Off-Balance Sheet Credit Exposures* 

The Company has off-balance sheet financial instruments, which include commitments to extend credit and the unfunded portion of construction loans. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The Company's allowance for credit losses on off-balance sheet credit exposures is recognized as a liability in other liabilities on the consolidated balance sheets, with adjustments to the reserve recognized in the provision for credit losses in the consolidated statements of net income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

***Recent accounting pronouncements***

In March 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-02, *Investments-Equity Method and Joint Ventures* (Topic 323): *Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method,* that introduced the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense (benefit). The amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The Company did not elect to apply the proportional amortization method for any of its investments in tax credit structures.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes—Improvements to Income Tax Disclosures* (Topic 740), which requires entities to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. On an annual basis, entities must disclose: (1) the amount of income taxes paid, net of refunds, disaggregated by federal, state, and foreign; and (2) the amount of income taxes paid, net of refunds, disaggregated by individual jurisdictions in which income taxes paid, net of refunds received, for amounts equal to or greater than 5% of total income taxes paid. Further, the amendments also require entities to disclose: (1) income or loss from continued operations before income tax expense (or benefit) disaggregated between domestic and foreign sources; and (2) income or loss from continued operations disaggregated by federal, state, and foreign sources. This ASU, as amended, is effective for the Company in fiscal years beginning after December 15, 2025, and is not expected to have a material impact on the Company's consolidated financial statements.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

**2.** **SECURITIES** 

***Available for Sale***

The amortized cost and fair value of securities available for sale with gross unrealized gains and losses, follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Amortized<br>Cost | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair<br>Value |
|  | | (In thousands) | (In thousands) | |
|  <u>March 31, 2026</u> |  |  |  |  |
|  U.S. Government bonds | $235166 | $540 | $(1331) | $234375 |
|  Government sponsored enterprises | 47420 |  | (2111) | 45309 |
|  State and municipal bonds | 33616 |  | (365) | 33251 |
|  Corporate bonds | 22429 | 18 | (1096) | 21351 |
|  Subordinated debt and collateralized debt obligations | 12000 |  | (619) | 11381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale | $350631 | $558 | $(5522) | $345667 |
|  | Amortized<br>Cost | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair<br>Value |
|  |  | (In thousands) | (In thousands) |  |
|  <u>December 31, 2025</u> |  |  |  |  |
|  U.S. Government bonds | $228300 | $1641 | $(629) | $229312 |
|  Government sponsored enterprises | 47431 |  | (2221) | 45210 |
|  State and municipal bonds | 33030 |  | (339) | 32691 |
|  Corporate bonds | 22431 | 18 | (900) | 21549 |
|  Subordinated debt and collateralized debt obligations | 14000 |  | (470) | 13530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale | $345192 | $1659 | $(4559) | $342292 |

---

As of both March 31, 2026 and December 31, 2025, securities with an amortized cost of $27,839,000, and an estimated fair value of $25,250,000 and $25,485,000, were pledged to secure public funds and other such purposes as required by law.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

The amortized cost and fair value of debt securities by contractual maturity at March 31, 2026, is as follows. Expected maturities will differ from contractual maturities on certain securities because of call or prepayment provisions.

---

| | | |
|:---|:---|:---|
|  | Amortized<br>Cost | Fair<br>Value |
|  | (In thousands) | (In thousands) |
|  Within 1 year | $62269 | $61819 |
|  After 1 year through 5 years | 189535 | 186798 |
|  After 5 years through 10 years | 80888 | 79111 |
|  Over 10 years | 17939 | 17939 |
|  | $350631 | $345667 |

---

For the three months ended March 31, 2026, proceeds from sales of securities available for sale amounted to $26,948,000. For the three months ended March 31, 2026, gross realized gains on available for sale securities were $203,000. There were no proceeds from sales of securities available for sale or realized gains or losses on available for sale securities for the three months ended March 31, 2025.

<u>Allowance for Credit Losses – Available for Sale Securities</u> 

Available for sale securities which are guaranteed by government agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. In assessing the Company's investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise; Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Federal Farm Credit Bank ("FFCB"), or Federal Home Loan Bank ("FHLB"). Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company's investments. The Company will evaluate this position no less than annually, however, certain items which may cause the Company to change this methodology include legislative changes that remove a government-sponsored enterprise's ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government's implicit guarantee on such securities. As of March 31, 2026 and December 31, 2025, there was no allowance on available for sale securities.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

Information pertaining to securities with gross unrealized losses at March 31, 2026, and as of December 31, 2025 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Less Than Twelve Months | Less Than Twelve Months | Over Twelve Months | Over Twelve Months |
|  | Gross<br>Unrealized<br>Losses | Fair<br>Value | Gross<br>Unrealized<br>Losses | Fair<br>Value |
|  | | (In thousands) | (In thousands) | |
|  <u>March 31, 2026</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US Government bonds | $958 | $112134 | $373 | $32598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government sponsored enterprises |  |  | 2111 | 45309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and municipal bonds |  |  | 365 | 8070 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 21 | 2979 | 1075 | 16354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated debt and collateralized debt obligations |  |  | 619 | 9381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale | $979 | $115113 | $4543 | $111712 |
|  | Less Than Twelve Months | Less Than Twelve Months | Over Twelve Months | Over Twelve Months |
|  | Gross<br>Unrealized<br>Losses | Fair<br>Value | Gross<br>Unrealized<br>Losses | Fair<br>Value |
|  |  | (In thousands) | (In thousands) |  |
|  <u>December 31, 2025</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US Government bonds | $159 | $41150 | $470 | $58440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government sponsored enterprises |  |  | 2221 | 45210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and municipal bonds |  | 4825 | 339 | 8103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 12 | 987 | 888 | 16543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated debt and collateralized debt obligations |  |  | 470 | 10530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale | $171 | $46962 | $4388 | $138826 |

---

As of March 31, 2026, 75 debt securities have unrealized losses with aggregate depreciation of 2.38% from the Company's amortized cost basis, all of which is deemed to be unrelated to credit losses.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

The unrealized losses on the Company's investment in U.S. Government, government-sponsored enterprises and state and municipal bonds were primarily caused by interest rate risk. Many of these investments are guaranteed by the U.S. Government or an agency thereof. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the decline in market value is attributable to changes in interest rates and not to credit quality, and because the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to require a credit loss reserve at March 31, 2026 or December 31, 2025.

The Company's unrealized losses on investments in corporate bonds and subordinated debt relate to investments in companies within the financial services sector. The unrealized losses are primarily caused by (a) recent decreases in profitability and near-term profit forecasts by industry analysts resulting from the sub-prime mortgage market and (b) recent downgrades by several industry analysts. The contractual terms of these investments do not permit the companies to settle the security at a price less than the par value of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that the bonds would not be settled at a price less than the par value of the investment. Because the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, it does not consider these investments to require a credit loss reserve at March 31, 2026 or December 31, 2025.

***Marketable Equity Securities***

Marketable equity securities consist of common stocks, preferred stocks and money market mutual funds. As of March 31, 2026, and December 31, 2025, the Company held marketable equity securities with an aggregate fair value of $2,248,000 and $2,188,000, respectively. Net realized and unrealized gains (losses) recognized in earnings during the three months ended March 31, 2026, and 2025 were $59,000 and ($15,000), respectively. As of March 31, 2026, and December 31, 2025, net unrealized gains recognized on marketable equity securities still held at the reporting date amounted to $18,000 and $114,000, respectively.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

**3.** **LOANS** 

A summary of the balances of loans follows:

---

| | | |
|:---|:---|:---|
|  | March 31, | December 31, |
|  | 2026 | 2025 |
|  | (In thousands) | (In thousands) |
|  Mortgage loans on real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $465313 | $484198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 1089361 | 1080739 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction | 184236 | 179266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HELOC and second mortgages | 213706 | 209874 |
|  | 1952616 | 1954077 |
|  Commercial loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial | 200807 | 194649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SBA PPP |  | 5 |
|  | 200807 | 194654 |
|  Consumer loans | 119730 | 120586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total loans | 2273153 | 2269317 |
|  Allowance for credit losses | (29680) | (29078) |
|  Net deferred loan fees | (3850) | (3965) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net | $2239623 | $2236274 |

---

The Bank has sold mortgage loans in the secondary mortgage market and has retained the servicing responsibility and receives fees for the services provided. Total loans serviced for others at March 31, 2026, and December 31, 2025, amounted to $1,678,920,000 and $1,570,207,000, respectively, and are not included on the accompanying consolidated balance sheets.

The following represents the composition of the Company's provision for credit loss expense for the years ended March 31, 2026, and 2025 (in thousands):

---

| | | |
|:---|:---|:---|
|  | Three Months Ended<br>March 31, | Three Months Ended<br>March 31, |
|  | 2026 | 2025 |
|  | (In thousands) | (In thousands) |
|  Loans | $1700 | $1950 |
|  Off-balance sheet credit exposures |  | (60) |
|  | $1700 | $1890 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

Activity in the allowance for credit losses for the three months ended March 31, 2026:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Residential<br>Real Estate | Commercial<br>& Multi-family<br>Real Estate | Construction | HELOC<br>& Second<br>Mortgages | Commercial | Consumer | Unallocated | Total |
|  | | | | (In thousands) | (In thousands) | | | |
|  **Allowance for credit losses—loans** |  |  |  |  |  |  |  |  |
|  Balance at December 31, 2025 | $768 | $16690 | $699 | $417 | $3013 | $5598 | $1893 | $29078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (credit) for credit losses | 12 | (766) | 20 | 9 | 175 | (374) | 2624 | 1700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans charged-off |  |  |  |  |  | (1179) |  | (1179) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recoveries | 4 | 15 |  |  |  | 62 |  | 81 |
|  Balance at March 31, 2026 | 784 | 15939 | 719 | 426 | 3188 | 4107 | 4517 | $29680 |
|  **Allowance for off-balance sheet credit exposures** |  |  |  |  |  |  |  |  |
|  Balance at December 31, 2025 | $— | $475 | $851 | $224 | $920 | $157 | $(1845) | $782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (credit) for credit losses |  |  |  |  |  |  |  |  |
|  Balance at March 31, 2026 |  | 475 | 851 | 224 | 920 | 157 | (1845) | 782 |

---

Activity in the allowance for credit losses for the three months ended March 31, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Residential<br>Real Estate | Commercial<br>& Multi-family<br>Real Estate | Construction | HELOC<br>& Second<br>Mortgages | Commercial | Consumer | Unallocated | Total |
|  | | | | (In thousands) | (In thousands) | | | |
|  **Allowance for credit losses—loans** |  |  |  |  |  |  |  |  |
|  Balance at December 31, 2024 | $1304 | $13326 | $583 | $568 | $2741 | $5594 | $2107 | $26223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (credit) for credit losses | (107) | 2137 | 32 | (72) | 118 | 2 | (160) | 1950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans charged-off |  |  |  |  | (82) | (104) |  | (186) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recoveries | 4 | 15 |  |  |  | 1 |  | 20 |
|  Balance at March 31, 2025 | 1201 | 15478 | 615 | 496 | 2777 | 5493 | 1947 | $28007 |
|  **Allowance for off-balance sheet credit exposures** |  |  |  |  |  |  |  |  |
|  Balance at December 31, 2024 | $— | $475 | $851 | $224 | $920 | $157 | $(2180) | $447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit for credit losses |  |  |  |  |  |  | (60) | (60) |
|  Balance at March 31, 2025 |  | 475 | 851 | 224 | 920 | 157 | (2240) | 387 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

The following is a summary of past due and non-accrual loans at March 31, 2026, and December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | March 31, 2026 | March 31, 2026 | March 31, 2026 | March 31, 2026 | March 31, 2026 | March 31, 2026 |
|  | 30-59 Days<br>Past Due | 60-89 Days<br>Past Due | Past Due<br>90 Days or More | Total<br>Past Due | Past Due<br>90 Days or More<br>and Still Accruing | Loans on<br>Non-accrual |
|  | | | (In thousands) | (In thousands) | | |
|  Mortgage loans on real estate: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $640 | $501 | $1084 | $2225 | $— | $3919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 396 |  | 7422 | 7818 |  | 37180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HELOC and second mortgages | 1506 | 45 | 173 | 1724 |  | 871 |
|  Commercial |  |  | 1725 | 1725 |  | 1725 |
|  Consumer | 582 | 438 | 247 | 1267 |  | 1170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $3124 | $984 | $10651 | $14759 | $— | $44865 |
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | 30-59 Days<br>Past Due | 60-89 Days<br>Past Due | Past Due<br>90 Days or More | Total<br>Past Due | Past Due<br>90 Days or More<br>and Still Accruing | Loans on<br>Non-accrual |
|  |  |  | (In thousands) | (In thousands) |  |  |
|  Mortgage loans on real estate: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $1011 | $— | $1084 | $2095 | $— | $3750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 63 | 6464 | 1073 | 7600 |  | 30780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HELOC and second mortgages | 389 | 71 | 401 | 861 |  | 1150 |
|  Commercial |  | 1933 | 292 | 2225 |  | 292 |
|  Consumer | 1309 | 246 | 475 | 2030 |  | 1456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $2772 | $8714 | $3325 | $14811 | $— | $37428 |

---

There are no loans greater than 90 days past due and still accruing at March 31, 2026, and December 31, 2025. There was no accrued interest reversed on non-accrual loans during the three months ended March 31, 2026, and March 31, 2025.

No additional funds are committed to be advanced in connection with individually evaluated loans. There were no loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2026. The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the three months ended March 31, 2025, by class and by type of modification.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | March 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 |
|  | Combination Payment<br>Delay and Term<br>Extension | Payment Delay | Combination Term<br>Extension, Payment<br>Delay and Interest<br>Rate Reduction | % of Total Class of<br>Financing Receivables |
|  | (In thousands) | (In thousands) | (In thousands) | (In thousands) |
|  Mortgage loans on real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $— | $486 | $— | 0.08% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 13396 |  | 13137 | 2.47% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $13396 | $486 | $13137 | 1.64% |

---

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025:

---

| | |
|:---|:---|
| **March 31, 2025** | **March 31, 2025** |
| **Combination Payment Delay and Term Extension** | **Combination Payment Delay and Term Extension** |
| **Loan Type** | **Financial Effect** |
|  Mortgage loans on real estate: |  |
|  Commercial and multi-family | Added 5 years weighted average maturity to the life of the loan |
| **Payment Delay** | **Payment Delay** |
| **Loan Type** | **Financial Effect** |
|  Mortgage loans on real estate: |  |
|  Residential | Provided three-month payment deferral. The three monthly payments were added to the end of the original loan term. |
| **Combination Term Extension, Payment Delay and Interest Rate Reduction** | **Combination Term Extension, Payment Delay and Interest Rate Reduction** |
| **Loan Type** | **Financial Effect** |
|  Mortgage loans on real estate: |  |
|  Commercial and multi-family | Reduced weighted average contractual interest rate from 10.0% to 7.5% and added a weighted average 6.4 years to the life of the loan |

---

The following table provides the amortized cost basis of financing receivables that had a payment default during the three months ended March 31, 2025, and were modified in the 12 months prior to that default to borrowers experiencing financial difficulty:

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | March 31, 2025 | March 31, 2025 | March 31, 2025 |
|  | Combination Payment<br>Delay and Term<br>Extension | Payment Delay | Combination Term<br>Term |
|  | | (In thousands) | |
|  Mortgage loans on real estate: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $— | $486 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $— | $486 | $— |

---

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

<u>Credit Quality Information</u> 

The Company utilizes a ten-grade internal loan rating system for commercial and multi-family real estate, construction and commercial loans as follows:

Loans rated 1 – 6 are considered "pass" rated loans with low to average risk.

Loans rated 7 are considered "special mention." These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 8 are considered "substandard" and are inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

Loans rated 9 are considered "doubtful" and have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 10 are considered uncollectable and of such little value that their continuance as a loan is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on substantially all commercial and multi-family real estate, construction and commercial loans. Annually, the Company engages an independent third party to review a significant portion of loans within these segments. The Company uses the results of these reviews as part of its annual review process.

On a monthly basis, the Company reviews the residential real estate, HELOC and second mortgage, and consumer portfolios for credit quality primarily through the use of delinquency reports.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

The following tables presents our loans by year of origination, loan segmentation and risk indicator as of March 31, 2026 and December 31, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As of March 31, 2026 | As of March 31, 2026 | As of March 31, 2026 | As of March 31, 2026 | As of March 31, 2026 | As of March 31, 2026 | As of March 31, 2026 |
|  | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year |
|  | 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Total |
|  | | | | (In thousands) | | | |
|  **Residential** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $33501 | $37041 | $16213 | $16188 | $190771 | $167385 | $461099 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  | 283 | 296 |  | 1612 | 2023 | 4214 |
|  | $33501 | $37324 | $16509 | $16188 | $192383 | $169408 | $465313 |
|  Current Period Gross Charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $33501 | $37040 | $16509 | $16188 | $190771 | $167385 | $461394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  | 284 |  |  | 1612 | 2023 | 3919 |
|  **Commercial Real Estate:** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $28580 | $74821 | $26598 | $53681 | $251006 | $577020 | $1011706 |
|  Loans rated 7 |  |  | 2231 | 1626 | 329 | 32849 | 37035 |
|  Loans rated 8 |  |  |  | 6025 | 18608 | 15987 | 40620 |
|  | $28580 | $74821 | $28829 | $61332 | $269943 | $625856 | $1089361 |
|  Current Period Gross Charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $28580 | $74821 | $28829 | $55307 | $254049 | $610595 | $1052181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  | 6025 | 15894 | 15261 | 37180 |
|  **Construction:** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $8437 | $71334 | $28313 | $13750 | $53976 | $8426 | $184236 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  |  |  |  |  |  |  |
|  | $8437 | $71334 | $28313 | $13750 | $53976 | $8426 | $184236 |
|  Current Period Gross Charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $8437 | $71334 | $28313 | $13750 | $53976 | $8426 | $184236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  |  |  |  |  |
|  **Home Equity:** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $8715 | $60321 | $31226 | $26784 | $50206 | $35583 | $212835 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  |  |  | 173 | 507 | 191 | 871 |
|  | $8715 | $60321 | $31226 | $26957 | $50713 | $35774 | $213706 |
|  Current Period Gross Charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $8715 | $60321 | $31226 | $26784 | $50206 | $35583 | $212835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  | 173 | 507 | 191 | 871 |
|  **Commercial:** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $3107 | $23662 | $4858 | $14174 | $38903 | $106445 | $191149 |
|  Loans rated 7 |  | 2000 | 2653 |  | 309 | 1248 | 6210 |
|  Loans rated 8 |  | 498 |  | 1433 |  | 1517 | 3448 |
|  | $3107 | $26160 | $7511 | $15607 | $39212 | $109210 | $200807 |
|  Current Period Gross Charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $3107 | $26160 | $7511 | $14174 | $39212 | $108918 | $199082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  | 1433 |  | 292 | 1725 |
|  **Consumer** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $2237 | $12895 | $13110 | $15416 | $29487 | $45450 | $118595 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  | 270 |  |  | 404 | 461 | 1135 |
|  | $2237 | $13165 | $13110 | $15416 | $29891 | $45911 | $119730 |
|  Current Period Gross Charge offs | $— | $— | $— | $27 | $— | $1152 | $1179 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $2237 | $12895 | $13106 | $15387 | $29485 | $45450 | $118560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  | 270 | 4 | 29 | 406 | 461 | 1170 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 |
|  | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year |
|  | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total |
|  | | | | (In thousands) | | | |
|  <u>December 31, 2025</u> |  |  |  |  |  |  |  |
|  **Residential** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $57771 | $18642 | $21474 | $209192 | $111225 | $61847 | $480151 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 | 290 | 296 |  | 1621 | 480 | 1360 | 4047 |
|  | $58061 | $18938 | $21474 | $210813 | $111705 | $63207 | $484198 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $1 | $1 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $57772 | $18938 | $21474 | $209192 | $111225 | $61847 | $480448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual | 289 |  |  | 1621 | 480 | 1360 | 3750 |
|  **Commercial Real Estate:** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $73653 | $28022 | $57591 | $254441 | $174379 | $441475 | $1029561 |
|  Loans rated 7 |  |  |  |  | 8870 | 1220 | 10090 |
|  Loans rated 8 |  |  | 6025 | 18657 | 14778 | 1628 | 41088 |
|  | $73653 | $28022 | $63616 | $273098 | $198027 | $444323 | $1080739 |
|  Current period gross charge offs | $— | $— | $— | $3141 | $— | $— | $3141 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $73653 | $28022 | $63616 | $257408 | $183439 | $443821 | $1049959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  | 15690 | 14588 | 502 | 30780 |
|  **Construction:** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $69575 | $31254 | $14414 | $54926 | $6041 | $3056 | $179266 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  |  |  |  |  |  |  |
|  | $69575 | $31254 | $14414 | $54926 | $6041 | $3056 | $179266 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $69575 | $31254 | $14414 | $54926 | $6041 | $3056 | $179266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  |  |  |  |  |
|  **Home equity:** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $59844 | $33205 | $27671 | $51013 | $16297 | $20694 | $208724 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  |  | 174 | 800 |  | 176 | 1150 |
|  | $59844 | $33205 | $27845 | $51813 | $16297 | $20870 | $209874 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $59844 | $33205 | $27671 | $51013 | $16297 | $20694 | $208724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  | 174 | 800 |  | 176 | 1150 |
|  **Commercial:** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $9116 | $8063 | $16224 | $37629 | $38414 | $81255 | $190701 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 | 498 |  |  | 1933 | 292 | 1230 | 3953 |
|  | $9614 | $8063 | $16224 | $39562 | $38706 | $82485 | $194654 |
|  Current period gross charge offs | $— | $— | $478 | $— | $— | $— | 478 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $9614 | $8063 | $16224 | $39562 | $38414 | $82485 | $194362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  |  | 292 |  | 292 |
|  **Consumer** |  |  |  |  |  |  |  |
|  Loans rated 1–6 | $23605 | $13844 | $16190 | $30618 | $17025 | $18097 | $119379 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 | 274 |  | 53 | 540 | 42 | 298 | 1207 |
|  | $23879 | $13844 | $16243 | $31158 | $17067 | $18395 | $120586 |
|  Current period gross charge offs | $13 | $59 | $106 | $210 | $30 | $517 | $935 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $23604 | $13836 | $16160 | $30616 | $17025 | $17889 | $119130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual | 275 | 8 | 83 | 542 | 42 | 506 | 1456 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

**4.** **MINIMUM REGULATORY CAPITAL REQUIREMENTS** 

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's and Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

The regulations require a minimum ratio of total capital to risk-weighted assets of 8%, common equity Tier 1 capital to risk-weighted assets of 4.5%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6% and a minimum leverage ratio of 4% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses.

As of March 31, 2026, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.

To be categorized as well capitalized, an institution must maintain minimum capital ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank's category.

Management believes, as of March 31, 2026, and December 31, 2025, that the Company and the Bank meet all capital adequacy requirements to which they are subject.

The Company's and the Bank's actual capital amounts and ratios as of March 31, 2026, and December 31, 2025, are also presented in the following table.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Actual | Actual | Minimum Capital<br>Requirements | Minimum Capital<br>Requirements | Minimum<br>To Be Well<br>Capitalized Under<br>Prompt Corrective<br>Action Provisions | Minimum<br>To Be Well<br>Capitalized Under<br>Prompt Corrective<br>Action Provisions |
|  | Amount | Ratio | Amount | Ratio | Amount | Ratio |
|  | | | (Dollars in thousands) | (Dollars in thousands) | | |
|  **<u>March 31, 2026:</u>** |  |  |  |  |  |  |
|  Total capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | $284924 | 12.9% | $176607 | 8.0% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 261594 | 11.9 | 175303 | 8.0 | $219129 | 10.0% |
|  Common equity tier 1 capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 162619 | 7.4 | 99341 | 4.5 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 234201 | 10.7 | 98608 | 4.5 | 142434 | 6.5 |
|  Tier 1 capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 162619 | 7.4 | 132455 | 6.0 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 234201 | 10.7 | 131477 | 6.0 | 175303 | 8.0 |
|  Tier 1 capital to average assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 162619 | 5.7 | 114395 | 4.0 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 234201 | 8.2 | 113924 | 4.0 | 142406 | 5.0 |
|  **<u>December 31, 2025:</u>** |  |  |  |  |  |  |
|  Total capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | $281648 | 12.8% | $176132 | 8.0% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 258704 | 11.8 | 174937 | 8.0 | $218671 | 10.0% |
|  Common equity tier 1 capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 159520 | 7.2 | 99074 | 4.5 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 231544 | 10.6 | 98402 | 4.5 | 142136 | 6.5 |
|  Tier 1 capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 159520 | 7.2 | 132099 | 6.0 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 231544 | 10.6 | 131203 | 6.0 | 174937 | 8.0 |
|  Tier 1 capital to average assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 159520 | 5.6 | 114411 | 4.0 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 231544 | 8.1 | 114000 | 4.0 | 142500 | 5.0 |

---

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

**5.** **FAIR VALUE OF ASSETS AND LIABILITIES** 

***Determination of fair value***

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The following methods and assumptions were used by the Company in estimating fair value.

<u>Cash and cash equivalents</u>—For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the consolidated balance sheets approximate fair value.

<u>Marketable equity securities and securities available for sale</u> – Fair value measurements are obtained from a third-party pricing service and are not adjusted by management. The securities measured at fair value in Level 1 are based on quoted market prices in an active exchange market. Securities measured at fair value in Level 2 are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. These Level 2 prices were not adjusted by management. There were no securities measured at fair value in Level 3.

<u>FHLB Stock</u> – The fair value of FHLB stock approximates the carrying amount based on the redemption provisions of the FHLB. These assets were classified as Level 2.

<u>Loans held for sale</u> – Fair values are based on commitments in effect from investors or prevailing market prices.

<u>Loans</u> – The fair value of loans is measured on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Loans were classified as Level 3 since the valuation methodology utilizes significant unobservable inputs.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

<u>Individually evaluated loans</u> – Fair values for collateral dependent loans are based on the appraised value of the underlying collateral considering discounting factors, if deemed appropriate, and adjusted for selling costs. Current appraisals are obtained when it is determined that the Company is considering foreclosure. In instances where a current appraisal is not obtained, the most recent appraisal may be discounted based on management's historical knowledge, expertise or changes in market conditions from time of valuation. Given the significance of management's judgement in discounting the appraisals, these are considered Level 3 fair value measurements.

<u>Mortgage servicing rights—</u>The Company accounts for mortgage servicing rights at cost, subject to impairment testing. When the carrying value of a tranche exceeds fair value, a valuation allowance is established to reduce the carrying cost to fair value. Fair value is based on a valuation model that calculates the present value of estimated net servicing income. The Company obtains a third-party valuation based upon loan level data including note rate, type and term of the underlying loans. The model utilizes two significant unobservable inputs, namely loan prepayment assumptions and the discount rate used, to calculate the fair value of each tranche, and, as such, the Company has classified the model within Level 3 of the fair value hierarchy.

<u>Accrued Interest Receivable</u> – For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the consolidated balance sheets approximate fair value. These assets were classified as Level 2.

<u>Interest rate swap agreements</u> – The fair values of interest rate swap agreements are based on a valuation model that uses primarily observable inputs, such as benchmark yield curves and interest rates and also include the value associated with counterparty credit risk.

<u>Deposits</u> – The fair value of deposits is valued using a replacement cost of funds approach and discounted to the market rates and based on weighted remaining maturity for maturing deposits. Deposits were classified as Level 3 since the valuation methodology utilizes significant unobservable inputs.

<u>FHLB Advances</u> – The fair value of the FHLB Advances approximates fair value amount of these liabilities and are classified as Level 2.

<u>Mortgage banking derivatives</u>—The fair values of interest rate lock commitments and forward loan sale commitments are based on fair values of the underlying mortgage loans, including servicing values, and the probability of such commitments being exercised.

<u>Accrued Interest Payable and Mortgagor's escrow accounts</u> – For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the consolidated balance sheets approximate fair value. These liabilities were classified as Level 2

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

***Assets and liabilities measured at fair value on a recurring basis***

Assets and liabilities measured at fair value on a recurring basis are summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1 | Level 2 | Level 3 | Total<br>Fair Value |
|  | | (In thousands) | (In thousands) | |
|  <u>March 31, 2026</u> |  |  |  |  |
|  Assets: |  |  |  |  |
|  Securities available for sale | $— | $345667 | $— | $345667 |
|  Marketable equity securities | 2248 |  |  | 2248 |
|  Loans held for sale |  | 14854 |  | 14854 |
|  Interest rate lock agreements |  | 375 |  | 375 |
|  Forward loan sale commitments |  | 223 |  | 223 |
|  Interest rate swap agreements |  | 3283 |  | 3283 |
|  | $2248 | $364402 | $— | $366650 |
|  Liabilities: |  |  |  |  |
|  Interest rate swap agreements | $— | $3466 | $— | $3466 |
|  | $— | $3466 | $— | $3466 |
|  | Level 1 | Level 2 | Level 3 | Total<br>Fair Value |
|  |  | (In thousands) | (In thousands) |  |
|  <u>December 31, 2025</u> |  |  |  |  |
|  Assets: |  |  |  |  |
|  Securities available for sale | $— | $342292 | $— | 342292 |
|  Marketable equity securities | 2188 |  |  | 2188 |
|  Loans held for sale |  | 21262 |  | 21262 |
|  Interest rate lock agreements |  | 667 |  | 667 |
|  Interest rate swap agreements |  | 3270 |  | 3270 |
|  | $2188 | $367491 |  | $369679 |
|  Liabilities: |  |  |  |  |
|  Forward loan sale commitments | $— | $100 | $— | $100 |
|  Interest rate swap agreements |  | 3338 |  | 3338 |
|  | $— | $3438 | $— | $3438 |

---

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

The Company may also be required, from time to time, to measure certain other assets and liabilities at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets.

***Assets and liabilities measured at fair value on a nonrecurring basis***

Certain individually evaluated collateral dependent loans were adjusted to the fair value, less costs to sell, of the underlying collateral securing these loans resulting in losses. The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for credit losses. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties.

Assets measured at fair value on a nonrecurring basis are summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | March 31, 2026 | March 31, 2026 | March 31, 2026 | Year Ended<br>March 31, 2026 |
|  | Level 1 | Level 2 | Level 3 | Total Losses (Gains) |
|  | | (In thousands) | (In thousands) | |
|  Collateral dependent individually evaluated loans | $— | $— | $28964 | $(1016) |
|  | $— | $— | $28964 | $(1016) |
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | Year Ended<br>December 31, 2025 |
|  | Level 1 | Level 2 | Level 3 | Total Losses |
|  |  | (In thousands) | (In thousands) |  |
|  Collateral dependent individually evaluated loans | $— |  | $28232 | $6547 |
|  | $— |  | $28232 | $6547 |

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***Summary of Estimated Fair Values of Financial Instruments***

The estimated fair values, and related carrying amounts, of our financial instruments are included in the table below. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements (Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Fair Value** | **Fair Value** | **Fair Value** |
|  |<br>**Carrying Amount** | **Level 1** | **Level 2** | **Level 3** |
|  | | | **(in thousands)** | |
|  **<u>March 31, 2026</u>** |  |  |  |  |
|  Financial Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $79147 | $79147 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale | 345667 |  | 345667 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketable equity securities | 2248 | 2248 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Bank stock | 5469 |  |  | 5469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans held for sale | 14854 |  | 14854 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net | 2239623 |  |  | 2169453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage servicing rights, net | 14464 |  |  | 16590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest receivable | 9661 |  |  | 9661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 3881 |  | 3881 |  |
|  Financial Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 2466761 |  |  | 2467012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 95510 |  |  | 95717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated Debt | 94674 |  |  | 93828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgagors' escrow accounts | 3572 |  | 3572 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest payable | 2605 |  |  | 2605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 3466 |  | 3466 |  |
|  **<u>December 31, 2025</u>** |  |  |  |  |
|  Financial Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $38519 | $38519 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale | 342292 |  | 342292 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketable equity securities | 2188 | 2188 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Bank stock | 5787 |  |  | 5787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans held for sale | 21262 |  | 21262 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net | 2236274 |  |  | 2162145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage servicing rights, net | 13991 |  |  | 15788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest receivable | 10034 |  |  | 10034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 3937 |  | 3937 |  |
|  Financial Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 2423306 |  |  | 2426881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 98063 |  |  | 98270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated Debt | 94578 |  |  | 92783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgagors' escrow accounts | 3804 |  | 3804 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest payable | 1187 |  |  | 1187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 3438 |  | 3438 |  |

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![LOGO](g122170cm191a.jpg)

Report of Independent Registered Public Accounting Firm

To the Audit Committee of Narragansett Financial Corporation:

**Opinion on the Consolidated Financial Statements** 

We have audited the accompanying consolidated balance sheets of Narragansett Financial Corporation and Subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of net income, comprehensive income, changes in retained earnings, and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes to the consolidated financial statements (collectively, "the financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

![LOGO](g122170cm191b.jpg)

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As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter** 

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

**Allowance for Credit Losses – Qualitative Factors** 

As described in Note 4 to the financial statements, the Company has recorded an allowance for credit losses on loans (ACL) in the amount of $29.1 million as of December 31, 2025, representing management's estimate of credit losses over the remaining expected life of the Company's loan portfolio as of that date pursuant to the application of Accounting Standards Codification (ASC) 326.

The Company's methodology to determine its allowance for credit losses on loans incorporates qualitative assessments of its historical losses, current loan portfolio and economic conditions, the application of forecasted economic conditions, and model limitations. We determined that performing procedures relating to these components of the Company's methodology is a critical audit matter.

The principal considerations for our determination are (i) the application of significant judgment and estimation on the part of management, which in turn led to a high degree of auditor judgment and subjectivity in performing procedures and evaluating audit evidence obtained, and (ii) significant audit effort was necessary in evaluating management's methodology, significant assumptions and calculations.

**How the Critical Audit Matter was addressed in the Audit** 

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included, among others, testing management's process for determining the qualitative reserve component, evaluating the appropriateness of management's methodology relating to the qualitative reserve component and testing the completeness and accuracy of data utilized by management.

------

**Supplementary Information** 

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information, including the consolidating balance sheets and consolidating statement of net income, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The supplemental information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with the standards of the PCAOB. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

We have served as the Company's auditor since 2005.

![LOGO](g122170g0611024123783.jpg)

Boston, Massachusetts

June 8, 2026

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Narragansett Financial Corporation and Subsidiary

Consolidated Balance Sheets

December 31, 2025 and 2024

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Assets |  |  |
|  Cash and cash equivalents | $38519 | $75957 |
|  Securities available for sale, at fair value (cost of $345,192 and $298,850, respectively) | 342292 | 287373 |
|  Marketable equity securities, at fair value | 2188 | 2039 |
|  Federal Home Loan Bank stock, at cost | 5787 | 12634 |
|  Loans held for sale, at fair value | 21262 | 8945 |
|  Loans, net of allowance for credit losses of $29,078 in 2025 and $26,223 in 2024 | 2236274 | 2333986 |
|  Mortgage servicing rights, net | 13991 | 12770 |
|  Bank-owned life insurance | 40962 | 37597 |
|  Premises and equipment, net | 40701 | 41516 |
|  Accrued interest receivable | 10034 | 10165 |
|  Net deferred tax asset | 5841 | 9363 |
|  Goodwill and other intangible assets | 28186 | 29097 |
|  Equity method investments | 14196 | 13637 |
|  Right of use lease asset | 10041 | 11038 |
|  Other assets | 48302 | 48286 |
|  | $2858576 | $2934403 |
|  Liabilities and Retained Earnings |  |  |
|  Non-interest bearing deposits | $394297 | $389186 |
|  Interest bearing deposits | 2029009 | 1936694 |
|  Short-term borrowings | 97533 | 265000 |
|  Long-term borrowings | 530 | 5608 |
|  Subordinated debt | 94578 | 109193 |
|  Lease liability | 10257 | 11211 |
|  Other liabilities | 45526 | 46900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 2671730 | 2763792 |
|  Commitments and contingencies (Notes 5, 6 and 14) |  |  |
|  Retained earnings | 189395 | 183396 |
|  Accumulated other comprehensive loss | (2549) | (12785) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total retained earnings | 186846 | 170611 |
|  | $2858576 | $2934403 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Net Income

Years Ended December 31, 2025 and 2024

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Interest and dividend income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and fees on loans | $131314 | $132250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt securities | 9464 | 6580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income | 885 | 1024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on cash equivalents | 1647 | 1905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest and dividend income | 143310 | 141759 |
|  Interest expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on deposits | 51284 | 57374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on borrowings | 8322 | 11155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on subordinated debt | 7580 | 7871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest expense | 67186 | 76400 |
|  Net interest income | 76124 | 65359 |
|  Provision for credit losses | 7360 | 7520 |
|  Net interest income, after provision for credit losses | 68764 | 57839 |
|  Other income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer service fees | 10613 | 10218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loan servicing fee expense | (2231) | (774) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust department fees | 6156 | 5761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance and brokerage commissions | 14468 | 12526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain on securities available for sale, net | (46) | 195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on marketable equity securities | 149 | 385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sales of portfolio loans | (2052) | (430) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage banking income | 18540 | 17046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank-owned life insurance income | 2122 | 1661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 2583 | 947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income | 50302 | 47535 |
|  Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits | 77022 | 64573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and equipment | 14347 | 14142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 2699 | 3319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Data processing | 4605 | 4418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising costs | 2127 | 1931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit insurance | 2721 | 2534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 1021 | 889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other general and administrative | 9356 | 7110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 113898 | 98916 |
|  Income before income taxes | 5168 | 6458 |
| (Benefit) Provision for income taxes | (831) | 1149 |
|  Net income | $5999 | $5309 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2025 and 2024

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Net income | $5999 | $5309 |
|  Other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized holding gains | 8531 | 7149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustment for amounts realized in income <sup>(1)</sup> | 46 | (195) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains | 8577 | 6954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related tax effects | (2360) | (1888) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net-of-tax amount | 6217 | 5066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative instruments used for cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gains | 80 | 253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related tax effects | (23) | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net-of-tax amount | 57 | 183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit pension plans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains arising during the year | 5486 | 4854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustment for losses recognized in net periodic benefit cost <sup>(2)</sup> | 26 | 180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit pension plan gains | 5512 | 5034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related tax effects | (1550) | (1415) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net-of-tax amount | 3962 | 3619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other comprehensive income | 10236 | 8868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income | $16235 | $14177 |

---

<sup>(1)</sup> Amounts are reclassified out of accumulated other comprehensive loss and are included in (loss) gain on securities available for sale, net on the consolidated statements of net income. Income tax benefit (expense) associated with these (losses) gains for the years ended December 31, 2025 and 2024 was $13,000 and $(55000), respectively. 

<sup>(2)</sup> Amounts are reclassified out of accumulated other comprehensive loss and are included in other general and administrative expense on the consolidated statements of net income. Income tax benefit associated with these expenses for the years ended December 31, 2025 and 2024 was $7,000 and $51,000, respectively. 

The accompanying notes are an integral part of these consolidated financial statements.

------

Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Changes in Retained Earnings

Years Ended December 31, 2025 and 2024

---

| | | | |
|:---|:---|:---|:---|
|  | Retained<br>Earnings | Accumulated<br>Other<br>Comprehensive<br>Income (Loss) | Total<br>Retained<br>Earnings |
|  | | (In thousands) | |
|  Balance at December 31, 2023 | $178087 | $(21653) | $156434 |
|  Comprehensive income | 5309 | 8868 | 14177 |
|  Balance at December 31, 2024 | 183396 | (12785) | 170611 |
|  Comprehensive income | 5999 | 10236 | 16235 |
|  Balance at December 31, 2025 | $189395 | $(2549) | $186846 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Cash Flows

Years Ended December 31, 2025 and 2024

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $5999 | $5309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amortization of securities available for sale | (679) | (177) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on securities available for sale, net | 46 | (195) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on marketable equity securities, net | (149) | (385) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sales of portfolio loans | 2052 | 430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses | 7360 | 7520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage servicing rights capitalized | (7143) | (5881) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of mortgage servicing rights | 4399 | 3052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in valuation allowance of mortgage servicing rights | 1523 | 901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization of premises and equipment and intangible assets | 4912 | 5302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank-owned life insurance income | (2122) | (1661) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses from equity method investments | 24 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax benefit  | (411) | (2696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans held for sale | (12317) | 702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest receivable | 131 | (396) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets and other liabilities | 4520 | (3253) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 8145 | 8596 |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales | 11387 | 16024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from calls/maturities and principal payment | 55919 | 15882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases | (113015) | (63002) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketable equity securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales |  | 685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases |  | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of mortgage servicing rights |  | 187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of FHLB stock | (1104) | (6224) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of FHLB stock | 7951 | 4135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of bank-owned life insurance | (1243) | (1122) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of portfolio loans | 191274 | 29090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan originations, net of amortization and payoffs | (102974) | 19000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions to premises and equipment | (3099) | (3680) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the disposal of premises and equipment | 23 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in equity method investments | (583) | 3399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by investing activities | 44536 | 14441 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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Narragansett Financial Corporation and Subsidiary

Consolidated Statements of Cash Flows

Years Ended December 31, 2025 and 2024

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in non-brokered deposits | 120278 | 98403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in brokered deposits | (22852) | (125282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in borrowings with maturities of three months or less | 2455 | (4457) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of borrowings with maturities in excess of three months | (195000) | (165000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings with maturities in excess of three months | 20000 | 215000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of subordinated debt | (15000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) provided by financing activities | (90119) | 18664 |
|  Net change in cash and cash equivalents | (37438) | 41701 |
|  Cash and cash equivalents at beginning of year | 75957 | 34256 |
|  Cash and cash equivalents at end of year | $38519 | $75957 |
|  Supplemental cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid on deposits | $51435 | $59006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid on borrowings and subordinated debt | 16630 | 18823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid, net (excluding Employee Retention Credit "ERC") | 1513 | 3442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid for ERC amended returns |  | 1902 |
|  Non-cash activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right of use assets obtained in exchange for lease liabilities | $553 | $341 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

Years Ended December 31, 2025 and 2024

**1.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

***Basis of presentation and consolidation***

The consolidated financial statements include the accounts of Narragansett Financial Corporation (collectively, the "Company") and its wholly owned subsidiary, BayCoast Bank (the "Bank"), and the Bank's subsidiaries. Throughout the consolidated financial statements, the Company and the Bank are collectively referred to as the Company. The Bank provides a variety of financial services to individuals and businesses through its offices on the Southcoast of Massachusetts and Rhode Island. Its primary deposit products are checking, savings, money market and term certificates, and its primary lending products are residential, commercial, and multi-family mortgages and commercial loans.

The Bank's wholly-owned subsidiaries include BCBOZ Investment, LLC, which holds real estate property; BayCoast Financial Services ("BFS"), which sells non-deposit investment products to individuals and entities; Troy Security Corporation and B.F.R. Corp., which buy, hold, and sell securities on their own behalf; 1851 Corporation, which holds investments and real estate property; BayCoast Insurance, LLC ("BCI"), a wholly-owned subsidiary of BFS, which provides insurance products to consumers and businesses; BayCoast Mortgage Company, LLC ("BCMC"), which originates and sells conforming and jumbo residential mortgages; Stack Ally, LLC ("Stack Ally"), which has been established to provide data integration and automation solutions to organizations; Priority Funding, LLC ("Priority Funding") which originates and sells manufactured home loans; and Teamwork Funding, LLC ("Teamwork Funding") a wholly owned subsidiary of Priority Funding, which provides broker lender services for manufactured home loans and primarily conducts business in Arizona; Plimoth Trust Company, LLC, d/b/a Plimoth Investment Advisors ("Plimoth") provides investment management and trust services. Plimoth acts as a fiduciary and provides portfolio and/or trust services to its clients.

All significant intercompany accounts and transactions have been eliminated in consolidation.

***Reorganization and Stock Offering***

On June 8, 2026, the Board of Trustees of the Company and the Board of Directors of the Bank adopted a Plan of Holding Company Reorganization and Plan of Stock Issuance (the "Plan"). The Plan is subject to the approval of the Massachusetts Division of Banks, and the reorganization must also be approved by the Board of Governors of the Federal Reserve System.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The Plan must also be approved by corporators of the Company at a special meeting. Pursuant to the Plan, the Bank will issue all of its outstanding stock to a new mid-tier stock holding company, which will be named Narragansett Bancorp, Inc. Pursuant to the Plan, the new holding company will sell stock to the public, with the total offering value and number of shares of common stock based on an independent appraiser's valuation. Narragansett Bancorp, Inc. will be organized as a corporation under the laws of the State of Maryland and will offer 45% of its common stock to be outstanding to the Bank's eligible depositors, the Bank's employee stock ownership plan being formed in connection with the reorganization, a charitable foundation and certain other persons. The Company will own 55% of the common stock of Narragansett Bancorp, Inc. to be outstanding upon completion of the reorganization and stock issuance.

A liquidation account will be established by Narragansett Bancorp, Inc. for the benefit of eligible account holders equal to the percentage of the shares of common stock issued in the offering to persons other than the Company multiplied by the net worth of the Company as of March 31, 2026.

The costs of the reorganization and the stock issuance will be deferred and deducted from the sales proceeds of the offering. If the reorganization is unsuccessful, all deferred costs will be charged to operations. As of June 8, 2026, $469,000 of reorganization costs had been incurred.

***Use of estimates***

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, deferred taxes, and post-retirement benefit obligations.

***Fair value hierarchy***

The Company groups its assets and liabilities that are measured at fair value in three levels, based on the markets in which they are traded and the reliability of the assumptions used to determine fair value.

Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Valuations are obtained from readily available pricing sources.

Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads, and new issue data for substantially the full term of the assets and liabilities.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include those whose value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar techniques, as well as those for which the determination of fair value requires significant management judgment or estimation.

***Reclassifications***

Certain amounts in the 2024 consolidated financial statements have been reclassified to conform to the 2025 presentation.

***Significant group concentrations of credit and other risks***

Most of the Company's activities are with customers located in Southcoast Massachusetts and Rhode Island. Note 4 includes the types of lending in which the Company engages. The Company does not have any significant concentrations to any one industry or customer.

***Segment Reporting***

The Company adopted FASB ASC 280, Segment Reporting, as amended by the FASB ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This accounting update requires additional reportable segment disclosures on an annual and interim basis, among other requirements. This update does not change how operating segments are identified or aggregated, or how quantitative thresholds are applied to determine the reportable segments.

The Company is engaged in a single line of business as a community bank, which is primarily comprised of providing a variety of financial services to individuals and businesses through its offices on the Southcoast of Massachusetts and Rhode Island. Its primary deposit products are checking, savings, money market and term certificates, and its primary lending products are residential, commercial, and multi-family mortgages and commercial loans. The Company also offers other financial services products including wealth management, and insurance services. The Company has identified its President as the chief operating decision maker ("CODM") who uses net income to evaluate the results of business, predominantly in the forecasting process, and to manage the Company. Additionally, the CODM uses monthly financial reporting, which typically includes consolidated balance sheet and consolidated income statement, net interest margin analysis, loan and deposit balances, asset quality metrics, capital, and liquidity ratios to make business decisions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Cash and cash equivalents***

Cash and cash equivalents include balances due from banks and short-term investments, which consist of interest-bearing deposits and federal funds sold, which mature overnight on demand or with original maturities of three months or less and are carried at cost. Cash and cash equivalents are held at major institutions and are subject to credit risk to the extent those balances exceed applicable Federal Deposit Insurance Corporation or Securities Investor Protection Corporation limitations. At times, the Company has excess cash held at a community bank which is subject to additional insurance provided through the Deposit Insurance Fund.

Restricted cash represents collateral amounts pledged by the Company with certain interest rate swap derivative counterparties. See Note 2.

***Securities***

Marketable equity securities are measured at fair value with changes in fair value reported on the Company's consolidated statements of net income as a component of other income, regardless of whether such gains and losses are realized.

Securities not classified as marketable equity securities or trading are classified as "available for sale" and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss).

Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Premiums on callable bonds are amortized through the earliest call date. Gains and losses on the sale of securities available for sale are recorded on the trade date and determined using the specific identification method.

Each reporting period, the Company evaluates all securities classified as available for sale with a decline in fair value below the amortized cost of the investment to determine whether or not an allowance for credit losses should be recorded. The Company first assesses if there is intent to sell, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through a provision for credit losses charged to earnings. For debt securities available for sale that the Company intends to hold, management evaluates whether the decline in fair value has resulted from credit losses or other factors. The Company considers both quantitative and qualitative factors in making this assessment. Credit loss is measured based on discounted cash flow analysis, when appropriate, and recorded in a valuation allowance. The allowance is limited by the amount that the fair value is less than the amortized cost basis. Impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income (loss), net of applicable taxes. Changes in the allowance shall be recorded in the period of the change as credit loss expense (or reversal of credit loss expense).

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

Company measures expected credit losses on held to maturity securities on a collective basis by major security type in accordance with the Current Expected Credit Loss ("CECL") methodology using discounted cash flow analysis and credit losses are recognized as part of the allowance for credit losses. The Bank did not hold any held to maturity securities as of December 31, 2025 and 2024.

Debt securities are placed on non-accrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual is reversed against interest income.

***Federal Home Loan Bank stock***

The Company, as a member of the Federal Home Loan Bank ("FHLB") system, is required to maintain an investment in capital stock of the FHLB of Boston. Based on the redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLB may declare dividends on the stock. The Company reviews for impairment based on the ultimate recoverability of the cost basis in the stock. As of December 31, 2025 and 2024, no impairment has been recognized.

***Loans held for sale***

The Company utilizes the fair value option for its loans being held for sale in the secondary market. Fair value is determined based on either commitments in effect from investors or prevailing market prices and includes the value of mortgage servicing rights. The Company elected the fair value option to better match the accounting method with management's strategies for managing the risks of loans held for sale. Changes in fair value are recorded on the consolidated statements of net income.

***Loans***

The Company's loan portfolio includes residential real estate, commercial real estate, construction, commercial and consumer segments. Residential real estate loans include classes for 1-4 family owner occupied, second mortgages and equity lines of credit. Consumer loans include classes for personal loans, credit card loans, student loans and manufactured loans.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for credit losses, any deferred fees or costs on originated loans and premiums on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination costs, net of certain direct origination fees, are deferred and recognized as an adjustment of the related loan yield using the interest method.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The accrual of interest on all loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

***Allowance for Credit Losses – Loans***

The Company adopted the current expected credit loss ("CECL") model using the Weighted Average Remaining Maturity method ("WARM") for all financial assets measured at amortized cost and off balance sheet exposures. Prior periods have not been restated and continue to be presented in accordance with previously applicable GAAP.

The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Such allowance is based on the credit losses expected to arise over the life of the asset (contractual term). The allowance for credit losses on loans is established through a provision for credit losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed.

The allowance for credit losses on loans is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

Management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses.

Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider all of the following: peer losses, changes in lending policy and procedures, changes in nature and volume of the loan portfolio and in the terms of loans, changes in experience, ability and depth of lending management and staff, changes in the quality of the loan review system, changes in the value of underlying collateral for collateral-dependent loans, existence and effect of any concentration of credit and changes in the level of such concentrations, effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio, and the current and forecasted direction of the economic and business environment. Such forecasted information includes: gross domestic product ("GDP") growth, unemployment rates, inflation, interest rates and house price indexes amongst others.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate – The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent without private mortgage insurance and does not generally grant loans that would be classified as sub-prime upon origination. All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Commercial and multi-family real estate – Loans in this segment include owner-occupied and non-owner occupied multi-family and income-producing properties throughout New England. The underlying cash flows generated by the properties would be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, would have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans.

Construction – Loans in this segment include pre-sold and speculative real estate development loans for which payment is derived from sale of the property. The Company also originates construction loans which generally provide 12-month construction periods followed by a permanent mortgage loan, and follow the Bank's normal mortgage underwriting guidelines. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.

Home equity lines of credit ("HELOC") and second mortgages – Loans in this segment are collateralized by residential real estate and payment is dependent on the credit quality of the individual borrower. The Company has first and second liens on property securing these loans.

Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will affect credit quality in this segment.

Consumer – Loans in this segment include loans secured with collateral and unsecured loans with repayment dependent on the credit quality of the individual borrower.

The Company measures the allowance for credit losses using the WARM method.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The loan loss estimation process involves procedures to appropriately consider the unique characteristics of loan portfolio segments. The Company determined segmentation by grouping financial asset types which ensures loans with similar risk characteristics, terms, collateral, loss history, and prepayment speeds are pooled together. For each of these pools, the Company collects historical loss data, dating back to January 2016 and applies the annual historical loss rate over the estimated remaining average life of the loan portfolio segment. The Company incorporates peer data as part of the lookback period for a full economic cycle. The average remaining life of a loan portfolio segment is determined based on asset specific decay rates. The qualitative adjustments to historical loss information are tied to macroeconomic data (GDP, house price index, inflation and unemployment) and peer data. The one-year economic forecast will determine how peer data is incorporated into the model. For periods beyond one year, the Bank will revert to historical loss information.

Although the primary qualitative factor is linked to economic forecasts and peer data, the Bank will consider the following and apply or revise a qualitative factor if deemed necessary, on a periodic basis: 1) Levels of and trends in delinquencies and individually evaluated loans, 2) Levels of and trends in charge-offs and recoveries, 3) Trends in volume and terms of loans, 4) Effects of any changes in risk selection and underwriting, 5) Experience, ability and depth of lending management and other relevant staff, and 6) Effects of changes in credit concentrations, 7) Industry concentrations. The Bank will also review the reasonableness of decay rates used in WARM calculation and apply a qualitative factor if necessary. There were no changes to the Company's accounting policy or methodology during 2025.

*Individually Evaluated Loans* 

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. For loans that are collateral dependent, that is, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. When the discounted cash flow method is used to determine the allowance for credit losses, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments.

*Accrued Interest Receivable* 

The Company elected not to measure an allowance for credit losses for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectable interest. As of December 31, 2025 and 2024, Accrued interest receivable of $10,034,000 and $10,165,000, respectively, is on the consolidated balance sheets.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

*Allowance for Credit Losses – Off-Balance Sheet Credit Exposures* 

The Company has off-balance sheet financial instruments, which include commitments to extend credit and the unfunded portion of construction loans. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The Company's allowance for credit losses on off-balance sheet credit exposures is recognized as a liability in other liabilities on the consolidated balance sheets, with adjustments to the reserve recognized in the provision for credit losses in the consolidated statements of net income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

***Employee Retention Credit***

The Employee Retention Credit (ERC) program was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, in March 2020 to help businesses retain employees. Eligible businesses could receive a quarterly refundable payroll tax credit.

ERCs are claimed primarily on federal payroll tax forms. During 2024, the Company determined that it qualified for the Employee Retention Credit and has filed for a credit against payroll taxes previously paid of approximately $6.9 million, or $5.0 million, net of taxes. Currently, there is no change in open tax years. The Company is accounting for this under Accounting Standards Update ("ASU") 2025-10 *Government Grants: Accounting for Government Grants Received by Business Entities*. As there is reasonable assurance that the Company has complied with all conditions attached to the program, a receivable has been recorded in other assets with an offsetting credit to payroll tax expense, included in salaries and employee benefits expense. As of December 31, 2025 and 2024, ERC receivable of $567,000 and $6.9 million, respectively is on the consolidated balance sheets. During 2025, the Company received $6.3 million related to the ERC and $1.2 million of interest on the ERC.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Loan servicing***

Capitalized mortgage servicing rights are reported on the consolidated balance sheets and are amortized into net loan servicing fee expense, in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Mortgage servicing rights are evaluated for impairment based upon the fair value of the rights compared to amortized cost. Impairment is determined by stratifying rights by predominate risk characteristics, such as interest rates and terms. Impairment, if material, is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the carrying amount of the stratum. Changes in the valuation allowance are reported in net loan servicing fee expense. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income, using certain prepayment assumptions that may not be observable in the market place.

***Foreclosed real estate***

Real estate acquired through, or in lieu of, loan foreclosure is held for sale and is initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Initial write down is recorded through the allowance for credit losses. Subsequent to foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations, changes in the valuation allowance and any direct write-downs are included in other general and administrative expense. Gains and losses on sales are included in miscellaneous income. There were no foreclosed real estate assets recorded as of December 31, 2025 or 2024.

***Premises and equipment***

Land is carried at cost. Buildings, equipment and leasehold improvements are carried at cost, less accumulated depreciation and amortization computed on the straight-line method over the expected terms of the leases or estimated useful lives of the assets if shorter. Estimated useful life for buildings is 35-40 years, leasehold improvements is 5-10 years and equipment is 3-5 years. Expected terms include lease option periods to the extent that the exercise of such option is reasonably assured.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Leases***

The Company determines if an arrangement is a lease at inception. The Company does not have any finance leases.

Right of use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, an incremental borrowing rate is used, which is generally the Federal Home Loan Bank classic advance rate, based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset is net of lease incentives. The Company's lease terms may include options to extend or terminate the lease when there is reasonable certainty that the option will be exercised. For operating leases, lease expense is recognized on a straight-line basis over the lease term.

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. The Company has not elected the practical expedient to account for lease and non-lease components as one lease component.

***Bank-owned life insurance***

Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received in excess of cash surrender value, are reflected in bank-owned life insurance income on the consolidated statements of net income and are not subject to income taxes.

***Transfers of financial assets***

Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets.

During the normal course of business, the Company may transfer a portion of a loan. In order to be eligible for sales treatment, the transferred portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. To meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Derivative financial instruments***

Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheets, measured at fair value and recorded in other assets and other liabilities.

*<u>Interest Rate Swap Agreements</u>*

The Company enters into interest rate swap agreements to provide for the needs of its customers or to manage the interest rate risk of its consolidated balance sheets. An interest rate swap is an agreement whereby one party agrees to pay a fixed rate of interest on a notional principal amount in exchange for receiving a floating rate of interest on the same notional amount for a predetermined period of time from the second party. In the case of customer-based transactions, derivatives are offset with matching derivatives with other correspondent bank counterparties to minimize interest rate risk to the Company.

The customer-based interest rate derivative instruments are recorded on the consolidated balance sheets as either an asset or liability measured at fair value. These derivatives do not qualify for hedge accounting. As such, all changes in fair value of these derivative instruments are included in other miscellaneous income.

The Company also uses interest rate swap agreements to hedge various exposures or to modify interest rate characteristics of various balance sheet accounts. Derivatives that are used as part of the asset/liability management process are linked to specific assets or liabilities and have a high correlation between the contract and the underlying item being hedged, both at inception and throughout the hedge period. Most interest rate swaps involve the exchange of fixed and floating interest payments. The Company uses interest rate swaps to convert a portion of its short-term, variable interest funding sources to long-term, fixed-rate funding sources (cash flow hedge).

Interest rate swaps are recognized as assets and liabilities on the consolidated balance sheets and measured at fair value. The gain or loss on a derivative designated and qualifying as a cash flow hedging instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.

*<u>Mortgage Banking Derivatives</u>*

Mortgage loan commitments qualify as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Forward loan sale commitments mitigate the risk of potential decreases in the values of loans that would result from the exercise of mortgage loan commitments. These derivatives, if material, are recognized at fair value on the consolidated balance sheets in other assets and other liabilities with changes in their fair values recorded in other income.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Goodwill and other intangible assets***

The assets (including identifiable intangible assets) and liabilities acquired in a business combination are recorded at fair value at the date of acquisition. Goodwill is recognized for the excess of the acquisition cost (or the fair value of the entity acquired) over the fair value of the net assets acquired and is not subsequently amortized. Management assesses goodwill for impairment at least on an annual basis to determine if events or changes in circumstances indicate that the carrying value may be less than the fair value of the reporting entity. If the carrying amount exceeds fair value, an impairment charge is recorded through operations. See Note 7.

Other intangible assets represent the long-term value of customer relationships acquired and are being amortized over their estimated lives on a straight-line basis. The Company evaluates the realizability of other intangible assets based on the value of the underlying customer relationships whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If that value is less than the carrying amount of the intangible assets and is considered permanent, the Company would recognize an impairment loss. See Note 7.

***Equity method investments***

The Company accounts for its investment in limited liability companies using the equity method and are not consolidated. The Company has significant influence but does not have a controlling financial interest in these limited liability companies. Priority distributions received from the equity investments reduce the Company's recorded investment and the investments are evaluated for impairment. The Company's share of equity losses are included in other general and administrative expenses in the consolidated statements of net income.

***Insurance commissions***

The Company's insurance revenue, which represents commissions earned for performing agency–related services, is earned at the point in time when the agent has satisfied its performance obligations of placement services. In addition, the Company may receive additional performance commissions based on achieving certain sales and loss experience measures. Such commissions are recognized when determinable, which is generally when such commissions are received or when the Company receives data from the insurance companies that allows the reasonable estimation of these amounts.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Retirement Plans***

The Company provides defined benefit pension benefits to eligible employees. The Company also provides deferred compensation and supplemental executive retirement plans for select current and former employees, officers, and directors.

The compensation cost of an employee's pension benefit is recognized on the projected unit credit method over the employee's approximate service period. The aggregate cost method is utilized for funding purposes. The Company accounts for its defined benefit pension plan using an actuarial model that allocates pension costs over the service period of employees in the plan. The Company accounts for the over-funded or under-funded status of its defined benefit plan as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income or loss.

The service cost component of net periodic pension cost is reported in salaries and employee benefit expense. The other components of net periodic pension benefit/cost are reported in other general and administrative expenses. See Note 17.

***Income taxes***

Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws in the period of enactment. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company does not have any uncertain tax positions at December 31, 2025 and 2024 which require accrual or disclosure.

The Company records interest and penalties as part of income tax expense. No penalties were recorded for the years ended December 31, 2025, and 2024. As of December 31, 2025 and 2024, there was $160,000 for accrued interest expense related to the ERC. There was no other interest recorded for the year ended December 31, 2025 and 2024.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Trust assets***

Trust assets held in a fiduciary or agency capacity are not included in the Company's consolidated financial statements. Trust department fees are primarily comprised of fees earned from trust administration services. The Company's performance obligation is generally satisfied over time, and the resulting fees are recognized monthly, based on the daily accrual of the market value of the investment accounts and the applicable fee rate. Minimum Tier 1 Capital requirements based on trust assets under administration were $800,000 as of December 31, 2025 and 2024.

***Advertising costs***

Advertising costs are expensed as incurred.

***Comprehensive income/loss***

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the retained earnings section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income/loss. The components of accumulated other comprehensive loss, included in retained earnings, are as follows:

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Securities available for sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized loss | $(2900) | $(11477) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect | 782 | 3142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net-of-tax amount | (2118) | (8335) |
|  Derivative instruments used for cash flow hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized loss | (68) | (148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect | 19 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net-of-tax amount | (49) | (106) |
|  Defined benefit pension plan: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrecognized actuarial loss | (531) | (6043) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax effect | 149 | 1699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net-of-tax amount | (382) | (4344) |
|  | $(2549) | $(12785) |

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There is no actuarial loss included in accumulated other comprehensive loss at December 31, 2025, which will be recognized as a component of net periodic pension cost for the year ending December 31, 2026.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Recent accounting pronouncements***

In March 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-02, *Investments-Equity Method and Joint Ventures* (Topic 323): *Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method,* that introduced the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense (benefit). The amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The Company did not elect to apply the proportional amortization method for any of its investments in tax credit structures.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes—Improvements to Income Tax Disclosures* (Topic 740), which requires entities to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. On an annual basis, entities must disclose: (1) the amount of income taxes paid, net of refunds, disaggregated by federal, state, and foreign; and (2) the amount of income taxes paid, net of refunds, disaggregated by individual jurisdictions in which income taxes paid, net of refunds received, for amounts equal to or greater than 5% of total income taxes paid. Further, the amendments also require entities to disclose: (1) income or loss from continued operations before income tax expense (or benefit) disaggregated between domestic and foreign sources; and (2) income or loss from continued operations disaggregated by federal, state, and foreign sources. This ASU, as amended, is effective for the Company in fiscal years beginning after December 15, 2025, and is not expected to have a material impact on the Company's consolidated financial statements.

**2.** **RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS** 

The Company is periodically required to maintain average balances on hand or with the Federal Reserve Bank. At December 31, 2025 and 2024, there was no reserve requirement.

At both December 31, 2025 and 2024, the Company pledged $500,000 in cash held at a correspondent bank to the state of Maine to establish the Plimoth Trust Company, LLC.

The Company has minimum collateral posting thresholds with certain of its interest rate swap derivative counterparties. At December 31, 2025 and 2024, collateral of $3,140,000 and $6,219,000 respectively, was pledged by the Company to its counterparties.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**3.** **SECURITIES** 

***Available for Sale***

The amortized cost and fair value of securities available for sale with gross unrealized gains and losses, follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Amortized<br>Cost | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair Value |
|  | | (In thousands) | (In thousands) | |
|  <u>December 31, 2025</u> |  |  |  |  |
|  U.S. Government bonds | $228300 | $1641 | $(629) | $229312 |
|  Government sponsored enterprises | 47431 |  | (2221) | 45210 |
|  State and municipal bonds | 33030 |  | (339) | 32691 |
|  Corporate bonds | 22431 | 18 | (900) | 21549 |
|  Subordinated debt and collateralized debt obligations | 14000 |  | (470) | 13530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale | $345192 | $1659 | $(4559) | $342292 |
|  | Amortized<br>Cost | Gross<br>Unrealized<br>Gains | Gross<br>Unrealized<br>Losses | Fair Value |
|  |  | (In thousands) | (In thousands) |  |
|  <u>December 31, 2024</u> |  |  |  |  |
|  U.S. Government bonds | $145744 | $100 | $(2678) | $143166 |
|  Government sponsored enterprises | 68698 |  | (4797) | 63901 |
|  State and municipal bonds | 37467 |  | (681) | 36786 |
|  Corporate bonds | 24691 | 13 | (2182) | 22522 |
|  Subordinated debt and collateralized debt obligations | 22250 |  | (1252) | 20998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale | $298850 | $113 | $(11590) | $287373 |

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As of December 31, 2025, securities with an amortized cost of $27,839,000 and a fair value of $25,485,000, were pledged to secure public funds and other such purposes as required by law. As of December 31, 2024, there were no securities pledged.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The amortized cost and fair value of debt securities by contractual maturity at December 31, 2025 is as follows. Expected maturities will differ from contractual maturities on certain securities because of call or prepayment provisions.

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| | | |
|:---|:---|:---|
|  | Amortized<br>Cost | Fair<br>Value |
|  | (In thousands) | (In thousands) |
|  Within 1 year | $76268 | $75572 |
|  After 1 year through 5 years | 199550 | 198499 |
|  After 5 years through 10 years | 52424 | 51271 |
|  Over 10 years | 16950 | 16950 |
|  | $345192 | $342292 |

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For the years ended December 31, 2025 and 2024, proceeds from sales of securities available for sale amounted to $11,387,000 and $16,024,000, respectively. For the year ended December 31, 2025 and 2024, gross realized losses amounted to $46,000 and gains of $195,000, respectively.

Information pertaining to securities with gross unrealized losses at December 31, 2025 and as of December 31, 2024 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Less Than Twelve Months | Less Than Twelve Months | Over Twelve Months | Over Twelve Months |
|  | Gross<br>Unrealized<br>Losses | Fair<br>Value | Gross<br>Unrealized<br>Losses | Fair<br>Value |
|  | (In thousands) | (In thousands) | (In thousands) | (In thousands) |
|  <u>December 31, 2025</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US Government bonds | $159 | $41150 | $470 | $58440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government sponsored enterprises |  |  | 2221 | 45210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and municipal bonds |  | 4825 | 339 | 8103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 12 | 987 | 888 | 16543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated debt and collateralized debt obligations |  |  | 470 | 10530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale | $171 | $46962 | $4388 | $138826 |

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Less Than Twelve Months | Less Than Twelve Months | Over Twelve Months | Over Twelve Months |
|  | Gross<br>Unrealized<br>Losses | Fair<br>Value | Gross<br>Unrealized<br>Losses | Fair<br>Value |
|  | (In thousands) | (In thousands) | (In thousands) | (In thousands) |
|  <u>December 31, 2024</u> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US Government bonds | $233 | $42106 | $2445 | $76177 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Government sponsored enterprises |  |  | 4797 | 63902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and municipal bonds |  |  | 681 | 10721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds |  |  | 2182 | 19509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated debt and collateralized debt obligations |  |  | 1252 | 17998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total securities available for sale | $233 | $42106 | $11357 | $188307 |

---

At December 31, 2025, 66 debt securities have unrealized losses with aggregate depreciation of 2.40% from the Company's amortized cost basis, all of which is deemed to be unrelated to credit losses.

The unrealized losses on the Company's investment in U.S. Government, government-sponsored enterprises and state and municipal bonds were primarily caused by interest rate risk. Many of these investments are guaranteed by the U.S. Government or an agency thereof. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the decline in market value is attributable to changes in interest rates and not to credit quality, and because the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to require a credit loss reserve at December 31, 2025.

The Company's unrealized losses on investments in corporate bonds and subordinated debt relate to investments in companies within the financial services sector. The unrealized losses are primarily caused by the current interest rate environment. The contractual terms of these investments do not permit the companies to settle the security at a price less than the par value of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that the bonds would not be settled at a price less than the par value of the investment. Because the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, it does not consider these investments to require a credit loss reserve at December 31, 2025.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

<u>Allowance for Credit Losses – Available for Sale Securities</u> 

Available for sale securities which are guaranteed by government agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. In assessing the Company's investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise; Federal Home Loan Mortgage Corporation ("FHLMC"), Federal National Mortgage Association ("FNMA"), Federal Farm Credit Bank ("FFCB"), or Federal Home Loan Bank ("FHLB"). Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company's investments. The Company will evaluate this position no less than annually, however, certain items which may cause the Company to change this methodology include legislative changes that remove a government-sponsored enterprise's ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government's implicit guarantee on such securities. As of December 31, 2025, there was no allowance on available for sale securities.

***Marketable Equity Securities***

Marketable equity securities consist of common stocks, preferred stocks and money market mutual funds. For the years ended December 31, 2025 and 2024, the Company held marketable equity securities with an aggregate fair value of $2,188,000 and $2,039,000, respectively. As of December 31, 2025 and 2024, net unrealized gains recognized on marketable equity securities still held at the reporting date amounted to $114,000 and $214,000, respectively.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**4.** **LOANS** 

A summary of the balances of loans follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Mortgage loans on real estate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $484198 | $595532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 1080739 | 1088052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction | 179266 | 171595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HELOC and second mortgages | 209874 | 178962 |
|  | 1954077 | 2034141 |
|  Commercial loans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial | 194649 | 201392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SBA PPP | 5 | 1105 |
|  | 194654 | 202497 |
|  Consumer loans | 120586 | 127026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total loans | 2269317 | 2363664 |
|  Allowance for credit losses | (29078) | (26223) |
|  Net deferred loan fees | (3965) | (3455) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net | $2236274 | $2333986 |

---

Residential, commercial and multi-family, HELOC and second mortgage loans are subject to a blanket lien securing FHLB borrowings. See Note 11.

The following represents the composition of the Company's provision for credit loss expense for the years ended December 31, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  Loans | $7025 | $7650 |
|  Off-balance sheet credit exposures | 335 | (130) |
|  | $7360 | $7520 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

Activity in the allowance for credit losses for the years ended December 31, 2025 and 2024, and allocation of the allowance to loan segments at December 31, 2025 and 2024, follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Residential<br>Real Estate | Commercial<br>& Multi-family<br>Real Estate | Construction | HELOC<br>& Second<br>Mortgages | Commercial | Consumer | Unallocated | Total |
|  | | | | (In thousands) | (In thousands) | | | |
|  **Allowance for credit losses - loans** |  |  |  |  |  |  |  |  |
|  Balance at December 31, 2023 | $1479 | $7628 | $812 | $466 | $2280 | $4981 | $1354 | $19000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (credit) for credit losses | (185) | 5638 | (229) | 97 | 461 | 1115 | 753 | 7650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans charged-off |  |  |  |  |  | (506) |  | (506) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recoveries | 10 | 60 |  | 5 |  | 4 |  | 79 |
|  Balance at December 31, 2024 | 1304 | 13326 | 583 | 568 | 2741 | 5594 | 2107 | $26223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (credit) for credit losses | (556) | 6445 | 116 | (151) | 496 | 889 | (214) | 7025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans charged-off | (1) | (3141) |  |  | (478) | (935) |  | (4555) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recoveries | 21 | 60 |  |  | 254 | 50 |  | 385 |
|  Balance at December 31, 2025 | $768 | $16690 | $699 | $417 | $3013 | $5598 | $1893 | $29078 |
|  **Allowance for off-balance sheet credit exposures** |  |  |  |  |  |  |  |  |
|  Balance at December 31, 2023 | $— | $425 | $851 | $224 | $920 | $157 | $(2000) | $577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (credit) for credit losses |  | 50 |  |  |  |  | (180) | (130) |
|  Balance at December 31, 2024 |  | 475 | 851 | 224 | 920 | 157 | (2180) | 447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses |  |  |  |  |  |  | 335 | 335 |
|  Balance at December 31, 2025 | $— | $475 | $851 | $224 | $920 | $157 | $(1845) | $782 |

---

The increase in the allowance for credit losses in 2025 is due to an increase in delinquency and watch list loans which required additional provision.

The following is a summary of past due and non-accrual loans at December 31, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | 30-59 Days<br>Past Due | 60-89 Days<br>Past Due | Past Due 90<br>Days or More | Total Past<br>Due | Past Due 90<br>Days or More<br>and Still Accruing | Loans on<br>Non-accrual |
|  | | | (In thousands) | (In thousands) | | |
|  Mortgage loans on real estate: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $1011 | $— | $1084 | $2095 | $— | $3750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 63 | 6464 | 1073 | 7600 |  | 30780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HELOC and second mortgages | 389 | 71 | 401 | 861 |  | 1150 |
|  Commercial |  | 1933 | 292 | 2225 |  | 292 |
|  Consumer | 1309 | 246 | 475 | 2030 |  | 1456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $2772 | $8714 | $3325 | $14811 | $— | $37428 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
|  | 30-59 Days<br>Past Due | 60-89 Days<br>Past Due | Past Due 90<br>Days or More | Total Past<br>Due | Past Due 90<br>Days or More<br>and Still Accruing | Loans on<br>Non-accrual |
|  | | | (In thousands) | (In thousands) | | |
|  Mortgage loans on real estate: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $1953 | $1673 | $1058 | $4684 | $— | $2518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 1672 |  |  | 1672 |  | 332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction |  |  |  |  |  | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HELOC and second mortgages | 1296 | 563 | 377 | 2236 |  | 812 |
|  Commercial |  |  | 478 | 478 |  | 478 |
|  Consumer | 985 | 324 | 620 | 1929 |  | 1257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $5906 | $2560 | $2533 | $10999 | $— | $5444 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The following table presents information regarding non-accrual loans:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | Non-accrual loans<br>with Allowance for<br>Credit Loss | Non-accrual loans<br>without Allowance<br>for Credit Loss | Loans on<br>Non-accrual | Amortized cost of loans<br>Past Due 90 and<br>Still Accruing |
|  | | (In thousands) | (In thousands) | |
|  Mortgage loans on real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $— | $3750 | $3750 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 18039 | 12741 | 30780 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HELOC and second mortgages |  | 1150 | 1150 |  |
|  Commercial | 292 |  | 292 |  |
|  Consumer | 197 | 1259 | 1456 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $18528 | $18900 | $37428 | $— |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
|  | Non-accrual loans<br>with Allowance for<br>Credit Loss | Non-accrual loans<br>without Allowance for<br>Credit Loss | Loans on<br>Non-accrual | Amortized cost of loans<br>Past Due 90 and<br>Still Accruing |
|  | | (In thousands) | (In thousands) | |
|  Mortgage loans on real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $— | $2518 | $2518 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family |  | 332 | 332 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction |  | 47 | 47 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HELOC and second mortgages |  | 812 | 812 |  |
|  Commercial | 395 | 83 | 478 |  |
|  Consumer |  | 1257 | 1257 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $395 | $5049 | $5444 | $— |

---

For the years ended December 31, 2025 and 2024, there was no interest recognized on non-accrual loans.

***Individually Evaluated Loans***

All substandard loans are considered individually evaluated. At December 31, 2025 and 2024, the Company had $3,953,000 and $1,669,000, respectively, in individually evaluated commercial loans, collateralized by business assets, and $47,492,000 and $32,159,000, respectively, in individually evaluated residential real estate and commercial real estate loans, collateralized by real estate property.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Modified Loans***

Occasionally, the Company will modify the contractual terms of loans to a borrower experiencing financial difficulties to mitigate loss, proactively work with borrowers in financial difficulty, or to comply with regulations regarding the treatment of certain bankruptcy filing and discharge situations. Loans are designated as modified when, as part of an agreement to modify the original contractual terms of the loan as a result of financial difficulties of the borrower, the Company grants the borrower a concession on the terms that would not otherwise be considered. Typically, such concessions may consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, extension of additional credit based on receipt of adequate collateral, or a deferment or reduction of payments (principal or interest) which materially alters the Company's position or significantly extends the note's maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan's origination. When principal forgiveness is provided, the amount forgiven is charged-off against the allowance for credit losses on loans.

The following table shows the amortized cost basis at December 31, 2025 and 2024, of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | Extension of<br>Maturity | Payment Delay | Combination Term<br>Extension and Interest<br>Rate Reduction | % of Total Class of<br>Financing<br>Receivables |
|  | | (In thousands) | | |
|  Mortgage loans on real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $— | $457 | $— | 0.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 3043 | 3452 | 25944 | 3.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $3043 | $3909 | $25944 | 1.45% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
|  | Extension of<br>Maturity | Payment Delay | Combination Term<br>Extension and Interest<br>Rate Reduction | % of Total Class of<br>Financing<br>Receivables |
|  | | (In thousands) | | |
|  Mortgage loans on real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | $— | $12500 | $— | 1.15% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $— | $12500 | $— | 0.53% |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the year ended December 31, 2025 and 2024:

---

| | |
|:---|:---|
| December 31, 2025 | December 31, 2025 |
| Extension of Maturity | Extension of Maturity |
| Loan Type | Financial Effect |
| Mortgage loans on real estate: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | Added 1 year weighted average maturity to the life of the loan |

---

---

| | |
|:---|:---|
| Payment Delay | Payment Delay |
| Loan Type | Financial Effect |
| Mortgage loans on real estate: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | Provided three-month payment deferral. The three monthly payments were added to the end of the original loan term. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | Provided deferral of principal payments |

---

---

| | |
|:---|:---|
| Combination Term Extension and Interest Rate Reduction | Combination Term Extension and Interest Rate Reduction |
| Loan Type | Financial Effect |
| Mortgage loans on real estate: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | Reduced weighted average contractual interest rate from 8.4% to 4.5% and added a weighted average 5.6 years to the life of the loans |

---

---

| | |
|:---|:---|
| December 31, 2024 | December 31, 2024 |
| Payment Delay | Payment Delay |
| Loan Type | Financial Effect |
| Mortgage loans on real estate: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | Provided deferral of principal payments to the end of the original loan term |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The following table provides the amortized cost basis of financing receivables that had a payment default during the year ended December 31, 2025 and 2024, and were modified in the 12 months prior to that default to borrowers experiencing financial difficulty:

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | Extension of<br>Maturity | Payment Delay | Combination Term<br>Extension and Interest<br>Rate Reduction |
|  | (In thousands) | (In thousands) | |
|  Mortgage loans on real estate: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential | $— | $457 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | 3043 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $3043 | $457 | $— |

---

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 |
|  | Extension of<br>Maturity | Payment Delay | Combination Term<br>Extension and Interest<br>Rate Reduction |
|  | (In thousands) | (In thousands) | |
|  Mortgage loans on real estate: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family | $— | $12500 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $— | $12500 | $— |

---

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. As of December 31, 2025, none of the loans that were modified to borrowers experiencing financial difficulty were delinquent.

As of December 31, 2025, the Company has not committed to lend additional funds to borrowers experiencing financial difficulty for which the Company has modified the terms of the receivables in the current reporting period.

<u>Credit Quality Information</u>

The Company utilizes a ten-grade internal loan rating system for commercial and multi-family real estate, construction and commercial loans as follows:

Loans rated 1 – 6 are considered "pass" rated loans with low to average risk.

Loans rated 7 are considered "special mention." These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 8 are considered "substandard" and are inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

Loans rated 9 are considered "doubtful" and have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 10 are considered uncollectable and of such little value that their continuance as a loan is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on substantially all commercial and multi-family real estate, construction and commercial loans. Annually, the Company engages an independent third party to review a significant portion of loans within these segments. The Company uses the results of these reviews as part of its annual review process.

On a monthly basis, the Company reviews the residential real estate, HELOC and second mortgage, and consumer portfolios for credit quality primarily through the use of delinquency reports.

The following tables presents our loans by year of origination, loan segmentation and risk indicator as of December 31, 2025 and 2024:

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 |
|  | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year |
|  | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total |
|  | | | | (In thousands) | | | |
|  <u>December 31, 2025</u> |  |  |  |  |  |  |  |
|  **Residential** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $57771 | $18642 | $21474 | $209192 | $111225 | $61847 | $480151 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 | 290 | 296 |  | 1621 | 480 | 1360 | 4047 |
|  | $58061 | $18938 | $21474 | $210813 | $111705 | $63207 | $484198 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $1 | $1 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $57772 | $18938 | $21474 | $209192 | $111225 | $61847 | $480448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual | 289 |  |  | 1621 | 480 | 1360 | 3750 |
|  **Commercial Real Estate:** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $73653 | $28022 | $57591 | $254441 | $174379 | $441475 | $1029561 |
|  Loans rated 7 |  |  |  |  | 8870 | 1220 | 10090 |
|  Loans rated 8 |  |  | 6025 | 18657 | 14778 | 1628 | 41088 |
|  | $73653 | $28022 | $63616 | $273098 | $198027 | $444323 | $1080739 |
|  Current period gross charge offs | $— | $— | $— | $3141 | $— | $— | $3141 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $73653 | $28022 | $63616 | $257408 | $183439 | $443821 | $1049959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  | 15690 | 14588 | 502 | 30780 |
|  **Construction:** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $69575 | $31254 | $14414 | $54926 | $6041 | $3056 | $179266 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  |  |  |  |  |  |  |
|  | $69575 | $31254 | $14414 | $54926 | $6041 | $3056 | $179266 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $69575 | $31254 | $14414 | $54926 | $6041 | $3056 | $179266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  |  |  |  |  |
|  **Home equity:** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $59844 | $33205 | $27671 | $51013 | $16297 | $20694 | $208724 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  |  | 174 | 800 |  | 176 | 1150 |
|  | $59844 | $33205 | $27845 | $51813 | $16297 | $20870 | $209874 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $59844 | $33205 | $27671 | $51013 | $16297 | $20694 | $208724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  | 174 | 800 |  | 176 | 1150 |
|  **Commercial:** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $9116 | $8063 | $16224 | $37629 | $38414 | $81255 | $190701 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 | 498 |  |  | 1933 | 292 | 1230 | 3953 |
|  | $9614 | $8063 | $16224 | $39562 | $38706 | $82485 | $194654 |
|  Current period gross charge offs | $— | $— | $478 | $— | $— | $— | 478 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $9614 | $8063 | $16224 | $39562 | $38414 | $82485 | $194362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  |  | 292 |  | 292 |
|  **Consumer** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $23605 | $13844 | $16190 | $30618 | $17025 | $18097 | $119379 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 | 274 |  | 53 | 540 | 42 | 298 | 1207 |
|  | $23879 | $13844 | $16243 | $31158 | $17067 | $18395 | $120586 |
|  Current period gross charge offs | $13 | $59 | $106 | $210 | $30 | $517 | $935 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $23604 | $13836 | $16160 | $30616 | $17025 | $17889 | $119130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual | 275 | 8 | 83 | 542 | 42 | 506 | 1456 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 |
|  | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year | Loans amortized cost basis by origination year |
|  | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total |
|  | | | | (In thousands) | | | |
|  **Residential** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $44631 | $66250 | $292551 | $119354 | $31725 | $38503 | 593014 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  |  | 1366 | 704 |  | 448 | 2518 |
|  Loans rated 9 |  |  |  |  |  |  |  |
|  | $44631 | $66250 | $293917 | $120058 | $31725 | $38951 | $595532 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $44631 | $66250 | $292551 | $119890 | $31189 | $38503 | $593014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  | 1366 | 168 | 536 | 448 | 2518 |
|  **Commercial Real Estate** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $21743 | $61596 | $264561 | $192174 | $136635 | $363148 | $1039857 |
|  Loans rated 7 |  | 6090 | 9056 | 4723 | 1146 | 9 | 21024 |
|  Loans rated 8 |  |  | 12500 | 12838 |  | 1833 | 27171 |
|  Loans rated 9 |  |  |  |  |  |  |  |
|  | $21743 | $67686 | $286117 | $209735 | $137781 | $364990 | $1088052 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $21743 | $67686 | $286117 | $209735 | $137781 | $364658 | $1087720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  |  |  |  | 332 | 332 |
|  **Construction** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $45612 | 27183 | 79679 | 12371 | 2195 | $4508 | $171548 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  |  | 47 |  |  |  | 47 |
|  Loans rated 9 |  |  |  |  |  |  |  |
|  | $45612 | $27183 | $79726 | $12371 | $2195 | $4508 | $171595 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $45612 | $27183 | $79679 | $12371 | $2195 | $4508 | $171548 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  |  | 47 |  |  |  | 47 |
|  **Home equity** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $38849 | $32387 | $63165 | $17713 | $6117 | $19419 | 177650 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  | 175 | 810 |  |  | 327 | 1312 |
|  Loans rated 9 |  |  |  |  |  |  |  |
|  | $38849 | $32562 | $63975 | $17713 | $6117 | $19746 | $178962 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $38849 | $32387 | $63665 | $17713 | $6117 | $19419 | $178150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  | 175 | 310 |  |  | 327 | 812 |
|  **Commercial:** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $9335 | $15922 | $40128 | 43682 | 12190 | 76036 | $197293 |
|  Loans rated 7 |  | 1873 |  |  |  | 557 | 2430 |
|  Loans rated 8 |  | 477 |  |  |  | 1192 | 1669 |
|  Loans rated 9 |  |  |  |  |  |  |  |
|  | $9335 | $18272 | $40128 | $43682 | $12190 | $77785 | $201392 |
|  Current period gross charge offs | $— | $— | $— | $— | $— | $— | $— |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $9335 | $18190 | $40128 | $43682 | $12190 | $77391 | $200916 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual |  | 82 |  |  |  | 394 | 476 |
|  **Consumer** |  |  |  |  |  |  |  |
|  Loans rated 1 - 6 | $26028 | $20847 | $36485 | $21493 | $12484 | $8577 | 125914 |
|  Loans rated 7 |  |  |  |  |  |  |  |
|  Loans rated 8 |  | 199 | 388 | 196 | 98 | 231 | $1112 |
|  Loans rated 9 |  |  |  |  |  |  |  |
|  | $26028 | $21046 | $36873 | $21689 | $12582 | $8808 | $127026 |
|  Current period gross charge offs | $23 | $62 | $22 | $— | $— | $399 | $506 |
|  Payment Performance |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performing | $26021 | $20799 | $36508 | $21488 | $12426 | $8527 | $125769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonaccrual | 7 | 247 | 365 | 201 | 156 | 281 | 1257 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**5.** **LOAN SALES AND SERVICING** 

The Company has transferred a portion of its originated commercial loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company's accompanying consolidated balance sheets. The Company and participating lenders share ratably in any gains or losses that may result from a borrower's lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, and remits payments to participating lenders. At December 31, 2025 and 2024, the Company was servicing loans for participants aggregating $20,886,000 and $21,722,000, respectively.

Additionally, the Company continues to transfer a portion of its originated manufactured home loans to participating lenders. At December 31, 2025 and 2024, the Company was servicing loans for participants aggregating $18,286,000 and $21,637,000, respectively. These loans are not included in the accompanying consolidated balance sheets.

Residential mortgage loans sold and serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of residential mortgage loans serviced for others totaled $1,570,207,000 and $1,330,299,000 at December 31, 2025 and 2024, respectively. Some of these loans were sold with recourse provisions. At both December 31, 2025 and 2024, the related maximum contingent recourse liability was insignificant.

The risks inherent in servicing rights relate primarily to changes in prepayments that result from shifts in interest rates. The fair value of servicing rights was determined using discount rates ranging from 9.5% to 12.5% at December 31, 2025 and 10.0% to 13.0% as of December 31, 2024. Annual prepayment speeds ranging from 4.9% CPR to 26.3% CPR were utilized as of December 31, 2025, and from 6.2% CPR to 27.3% CPR as of December 31, 2024. The following summarizes mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances:

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Mortgage servicing rights: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | $15511 | $12869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions | 7143 | 5881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization | (4399) | (3052) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sale of servicing rights |  | (187) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of year | 18255 | 15511 |
|  Valuation allowances: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at beginning of year | (2741) | (1840) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write down | (1523) | (901) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at end of year | (4264) | (2741) |
|  Mortgage servicing assets, net | $13991 | $12770 |
|  Fair value of mortgage servicing assets | $15788 | $14040 |

---

For the years ended December 31, 2025 and 2024, contractually specified servicing fees included in net loan servicing fee expense, amounted to $3,696,000 and $3,184,000, respectively.

For the years ended December 31, 2025 and 2024, gains on sales of loans amounted to $16,488,000 and $16,311,000, respectively, which is included in mortgage banking income.

**6.** **PREMISES AND EQUIPMENT** 

A summary of the cost and accumulated depreciation and amortization of premises and equipment follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Premises: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | $7314 | $7314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings | 42669 | 41822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold improvements | 14664 | 14595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction in progress | 1049 | 619 |
|  Equipment | 18397 | 18120 |
|  | 84093 | 82470 |
|  Less accumulated depreciation and amortization | (43392) | (40954) |
|  | $40701 | $41516 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

Depreciation and amortization expense for the years ended December 31, 2025, and 2024 amounted to $3,891,000, and $4,413,000, respectively.

As of December 31, 2025, and 2024, construction in progress represented costs incurred for the building of a branch location and solar panel projects, respectively. The outstanding commitment related to these projects for the years ended December 31, 2025, and 2024, amount to $1,440,000 and $72,000, respectively.

**7.** **GOODWILL AND OTHER INTANGIBLE ASSETS** 

***Goodwill***

Goodwill and other intangible assets include previously acquired businesses.

On May 2, 2023, BayCoast Insurance acquired E.P. Tremblay and Sons Insurance Agency, Inc. for $191,000. Intangible assets of $191,000 were recorded as part of this acquisition.

On December 29, 2022, BayCoast Insurance acquired Hadley Insurit Group Insurance Agency, Inc. for $7,632,000. Goodwill of $2,671,000 and intangible assets of $4,961,000 were recorded as part of this acquisition.

On June 6, 2021, Priority Funding acquired Team Work Mortgage LLC for $1,500,000. Goodwill of $1,500,000 was recorded as part of this acquisition.

On February 1, 2021, BayCoast Insurance acquired Interstate Insurance Agency for $1,100,000. Goodwill of $377,000 and intangible assets of $700,000 were recorded as part of this acquisition.

There were no changes in the carrying value of goodwill for the years ended December 31, 2025 and 2024. As of December 31, 2025 and 2024, the carrying value was $24,125,000.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Intangible assets***

Information pertaining to intangible assets is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Gross<br>Carrying<br>Amount | Accumulated<br>Amortization | Net<br>Carrying<br>Amount | Average<br>Amortization<br>Period |
|  | | (In thousands) | | |
|  <u>December 31, 2025</u>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer lists | $645 | $553 | $92 | 10 years |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance agency customer lists | 6462 | 2493 | 3969 | 10 years |
|  | $7107 | $3046 | $4061 |  |
|  <u>December 31, 2024</u>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer lists | $645 | $489 | $156 | 10 years |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance agency customer lists | 6352 | 1536 | 4816 | 10 years |
|  | $6997 | $2025 | $4972 |  |

---

At December 31, 2025, estimated amortization expense for identifiable intangible assets for the next five years and thereafter is as follows:

---

| | | |
|:---|:---|:---|
| Year Ending<br> December 31, | Customer<br>Lists | Insurance<br>Agencies |
|  | (In thousands) | (In thousands) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | $64 | $585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2027 | 28 | 585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2028 |  | 585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2029 |  | 585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2030 |  | 585 |
|  Thereafter |  | 1044 |
|  | $92 | $3969 |

---

For the years ended December 31, 2025, and 2024, amortization expense was $1,021,000 and $889,000, respectively.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**8.** **EQUITY METHOD INVESTMENTS** 

The Bank has a 45% ownership interest in JNK Realty, LLC, which was formed to convert a Fall River, Massachusetts, property into 4 separate residential lots and a 34-unit apartment complex. As of December 31, 2025, all the units are leased and the residential lots have been sold. As of December 31, 2025 and 2024, the Bank's total investment was $5,878,000 and $5,676,000, respectively. The Bank was able to reduce its investment by $3,203,000 during 2024 by applying tax credits and the proceeds from closing a bank account. The Bank invested $202,000 in December 2025. There were no equity losses recorded for the year ending December 31, 2025 and 2024.

The Bank has a 45% ownership interest in BCBBK, LLC, which was formed to construct The Residences at River's Edge in Fall River, Massachusetts, that consists of 49 residential units and a BayCoast Bank branch. As of December 31, 2025, the building is complete, and all units are leased. As of December 31, 2025, and 2024, the Bank's total investment was $3,716,000. The Bank was able to reduce its investment by $1,349,000 during 2024 by applying tax credits and the proceeds from closing a bank account. There were no investments made, and no equity losses recorded for the year ending December 31, 2025, and 2024.

The Bank has a 45% ownership interest in Oakwood BayCoast WWTF, LLC, which was formed to construct a private wastewater treatment facility on a shared site with the Bank. With a capacity of 24,000 gallons per day, this company provides wastewater treatment services to the Bank. The Bank's total investment was $1,235,000 and $1,216,000 as of December 31, 2025, and 2024, respectively. Oakwood BayCoast WWTF, LLC has experienced losses over the past eight years. Total losses of $24,000 were recorded in 2025 and 2024, respectively.

The Bank has a 30% ownership interest in the National Downtown Club, LLC for development of market-rate and affordable housing with some retail and commercial space in downtown New Bedford. The project has twenty-eight apartments, five affordable units and twenty-three market rate units and two retail units. As of December 31, 2025, the project is complete and close to full occupancy. As of December 31, 2025, and 2024, the Bank's total investment was $3,367,000 and $3,029,000 respectively. The Bank invested $338,000 and $1,127,000 in 2025 and 2024, respectively.

One of the Company's key management personnel is a managing member of these investments; therefore, these investments are considered related parties.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**9.** **LEASES** 

The Company has operating leases for the operations center, branch locations, loan production offices and stand-alone ATMs. These leases have remaining lease terms of two years to fifteen years and certain of these leases have options to extend the lease for up to thirty years. The renewal period was included if there is reasonable certainty the option will be exercised. The Company has elected the short-term practical expedient for short term leases.

The components of lease expense for the years ended December 31, 2025 and 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Operating lease cost | $1458 | $1533 |

---

Supplemental cash flow and other information related to leases as of and for the year ended

December 31, 2025 and 2024 is as follows (dollars in thousands):

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating cash flows from operating leases | $1422 | $1474 |
|  Weighted Average Remaining Lease Term (in years) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 9.5 | 10.3 |
|  Weighted Average Discount Rate |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 2.89% | 2.90% |

---

Future lease payments as of December 31, 2025 are as follows (in thousands):

---

| | |
|:---|:---|
| Year Ending<br> December 31, | Amount |
|  | (In thousands) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | $1397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2027 | 1381 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2028 | 1312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2029 | 1282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2030 | 1114 |
|  Thereafter | 5220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease payments | 11706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less imputed interest | (1449) |
|  | $10257 |

---

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**10.** **DEPOSITS** 

A summary of deposit balances, by type, is as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Demand deposits | $394297 | $389186 |
|  NOW | 404615 | 382877 |
|  Regular and other savings | 289179 | 292858 |
|  Money market deposits | 812532 | 704796 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-certificate accounts | 1900623 | 1769717 |
|  Term certificates less than $250,000 | 308943 | 334273 |
|  Term certificates of $250,000 or more | 213740 | 221890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total certificate accounts | 522683 | 556163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits | $2423306 | $2325880 |

---

Brokered deposits included in term certificates at December 31, 2024 amounted to $22,848,000. There were no brokered deposits at December 31, 2025.

A summary of term certificate accounts by maturity is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
|  | Amount | Weighted<br>Average<br>Rate | Amount | Weighted<br>Average<br>Rate |
|  | | (Dollars in thousands) | (Dollars in thousands) | |
|  Within 1 year | $452571 | 3.41% | $538000 | 3.93% |
|  Over 1 year to 2 years | 68264 | 3.07 | 16523 | 2.98 |
|  Over 2 years to 3 years | 710 | 1.99 | 1068 | 1.36 |
|  Over 3 years to 4 years | 653 | 3.22 | 17 | 0.54 |
|  Over 4 years to 5 years | 485 | 3.19 | 555 | 3.59 |
|  | $522683 | 3.37% | $556163 | 3.90% |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**11.** **BORROWINGS** 

***Federal Home Loan Bank***

Fixed-rate advances from the FHLB of Boston are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Amount | Amount | Weighted Average<br>Rate | Weighted Average<br>Rate |
| Maturing | 2025 | 2024 | 2025 | 2024 |
|  | (In thousands) | (In thousands) |  |  |
|  Within 1 year | $97533 | $265000 | 3.88% | 4.25% |
|  Over 5 years |  | 5000 | —% | 4.11% |
|  Amortizing advances maturing 2026-2033 | 530 | 608 | 3.38% | 3.41% |
|  | $98063 | $270608 | 3.88% | 4.24% |

---

At December 31, 2025, amortizing advances require monthly principal and interest payments of $8,000.

The Company has an available line of credit with the FHLB at an interest rate that adjusts daily. At December 31, 2025 and 2024, borrowings under the line were limited to $6,996,000. There were no advances outstanding on the line as of December 31, 2025 and 2024. Borrowings from the FHLB are secured by a blanket lien on first mortgage loans on owner-occupied residential property, defined principally as 75% of the carrying value of first mortgage loans on owner-occupied residential property amounting to $343,059,000 as well as $188,784,000 in commercial and multifamily loans and $80,579,000 in HELOC and second mortgage loans as of December 31, 2025.

***Federal Reserve Bank discount window***

At December 31, 2025 and 2024, the Company has pledged certain qualifying investments and commercial, construction, and consumer loans amounting to $162,768,000 and $151,350,000, respectively, for access to the discount window advances through the Borrower-In-Custody Program. At December 31, 2025 and 2024, there were no outstanding advances under this program.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Other***

The Company also has available unsecured lines of credit with correspondent banks at interest rates that adjust daily. At December 31, 2025 and 2024, the Company has borrowing capacity of $25,000,000 and $35,000,000, respectively. No advances were outstanding under these lines of credit.

The Company has an agreement with the American Financial Exchange, LLC (AFX) that enables the Company access to unsecured overnight borrowings with various counterparties. At December 31, 2025 and 2024, the Company has a credit limit of $400,000,000. There were no borrowings outstanding at December 31, 2025 and 2024.

**12.** **SUBORDINATED DEBT** 

On December 1, 2022, the Company issued subordinated debt (the "2022 Debt") in a private placement offering in the principal amount of $40,000,000. In connection with the issuance of the 2022 Debt, the Company incurred $928,000 in issuance costs that were recorded as a discount on the 2022 Debt and are amortized, using the straight-line method, over the life of the 2022 Debt.

The 2022 Debt accrues interest at 8.5% per annum for the first five years. From and including December 1, 2027, to the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 481 basis points. Interest on the 2022 Debt will be payable semi-annually on June 1 and December 1 of each year through December 1, 2027, and quarterly thereafter on March 1, June 1, September 1 and December 1 of each year through the maturity date or early redemption date. The 2022 Debt matures on December 1, 2032, but may be redeemed on any scheduled interest payment date beginning December 1, 2027, and thereafter by the Company, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2022 Debt to be redeemed plus accrued and unpaid interest.

On April 30, 2021, the Company issued subordinated debt (the "2021 Debt") in a private placement offering in the principal amount of $45,000,000. In connection with the issuance of the 2021 Debt, the Company incurred $995,000 in issuance costs that were recorded as a discount to the 2021 Debt and are amortized, using the straight-line method, over the life of the 2021 Debt.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The 2021 Debt accrues interest at 3.875% per annum for the first five years. From and including May 15, 2026, to the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 319 basis points. Interest on the 2021 Debt will be payable semi-annually on May 15 and November 15 of each year through May 15, 2026, and quarterly thereafter on February 15, May 15, August 15 and November 15 of each year through the maturity date or early redemption date. The 2021 Debt matures on May 15, 2031, but may be redeemed on any scheduled interest payment date beginning on May 15, 2026, and thereafter by the Company, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2021 Debt to be redeemed plus accrued and unpaid interest.

On November 28, 2017, the Company issued subordinated debt (the "2017 Debt") in a private placement offering in the principal amount of $25,000,000. In connection with the issuance of the 2017 Debt, the Company incurred $734,000 in issuance costs that were recorded as a discount to the 2017 Debt and are amortized, using the straight-line method, over the life of the 2017 Debt.

During the year ended December 31, 2025, the Company redeemed $15,000,000 of the 2017 Debt. There were no redemptions during the year ended December 31, 2024.

The 2017 Debt accrues interest at 5.875% per annum for the first five years. From and including December 15, 2023, to the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 401.161 basis points. Interest on the 2017 Debt will be payable semi-annually on June 15 and December 15 of each year through December 15, 2023, and quarterly thereafter on March 15, June 15, September 15 and December 15 of each year through the maturity date or early redemption date. The 2017 Debt matures on December 15, 2027, but may be redeemed on any scheduled interest payment date beginning on December 15, 2023, and thereafter by the Company, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2017 Debt to be redeemed plus accrued and unpaid interest.

During both years ended December 31, 2025 and 2024, interest expense for all subordinated debt instruments included $385,000 in amortization of issuance costs.

Under the applicable capital rules of the Federal Reserve Bank, the 2022 Debt, the 2021 Debt and 2017 Debt qualify as Tier 2 capital for the Bank subject to certain restrictions.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**13.** **INCOME TAXES** 

Allocation of the federal and state income taxes between current and deferred portions is as follows:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Current tax (benefit) provision: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $(1245) | $2565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 825 | 1280 |
|  | (420) | 3845 |
|  Deferred tax benefit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | (279) | (1786) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | (132) | (910) |
|  | (411) | (2696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total tax (benefit) provision | $(831) | $1149 |

---

The reasons for the differences between the statutory federal income tax provision at the statutory rate of 21% and the provision for income taxes are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Statutory federal income tax rate | $1085 | $1356 |
|  Increase (decrease) resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State taxes, net of federal tax benefit | 548 | 293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax exempt income | (649) | (546) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax credits, net of basis adjustments | (2124) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 309 | 46 |
| (Benefit) Provision for income taxes | $(831) | $1149 |

---

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The components of the net deferred tax asset are as follows:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | $8174 | $7371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit losses on securities available for sale |  | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit pension plan - deferred actuarial losses | 149 | 1699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized loss on securities available for sale | 782 | 3142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 1589 | 1539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leases | 2883 | 3151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer relationship intangible | 60 | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives | 19 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 473 | 605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net deferred loan fees | 1108 | 972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 869 | 298 |
|  | 16106 | 19051 |
|  Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee benefit plans | (397) | (1870) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on marketable equity securities | (195) | (163) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leases | (2823) | (3103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in limited partnerships | (2244) | (289) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred gain | (673) | (673) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage servicing rights | (3933) | (3590) |
|  | (10265) | (9688) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net deferred tax asset | $5841 | $9363 |

---

A summary of the change in the net deferred tax asset is as follows:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Balance at beginning of year | $9363 | $10040 |
|  Deferred tax benefit | 411 | 2696 |
|  Changes reflected in other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Defined benefit pension plan | (1550) | (1415) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives | (23) | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale | (2360) | (1888) |
|  Balance at end of year | $5841 | $9363 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The federal income tax reserve for credit losses at the Company's base year amounted to $2,924,000. If any portion of the reserve is used for purposes other than to absorb credit losses, approximately 150% of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve only to absorb loan losses, a deferred tax liability of $822,000 has not been provided.

The Company's income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2021, through December 31, 2025. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2022 are open.

**14.** **OTHER COMMITMENTS AND CONTINGENCIES** 

In the normal course of business, there are outstanding commitments which are not reflected in the accompanying consolidated financial statements.

***Loan commitments***

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and advance funds on outstanding lines of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Company's exposure to credit loss is represented by the contractual amount of the commitments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments.

At December 31, 2025 and 2024, the following financial instruments were outstanding whose contract amounts represent credit risk:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Commitments to grant loans | $53202 | $44960 |
|  Unadvanced funds on construction loans | 80792 | 62097 |
|  Unadvanced funds on home equity lines of credit | 212681 | 192791 |
|  Unadvanced funds on commercial loans and lines of credit | 168615 | 181390 |
|  Standby letters of credit | 3813 | 5126 |
|  Consumer lines of credit | 9115 | 4723 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis. Funds disbursed under commitments to grant loans, construction loans and home equity lines of credit are primarily secured by real estate, and commercial loans and lines of credit are generally secured by business assets.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These letters of credit are primarily issued to support borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Standby letters of credit are generally collateralized by real estate and business assets.

***Employment agreements***

The Company has entered into employment agreements with several employees of Priority Funding and BayCoast Insurance that generally provide for a specified minimum annual compensation and the continuation of benefits from the date of execution of the agreements. The agreements also include a non-compete clause that prevents these employees from competing for a period of five years after separation of service. The Priority Funding agreements expired in September 2024 and were not renewed. The BayCoast Insurance agreements associated with the Interstate Insurance and Hadley Insurit Group Insurance Agency acquisition expire in February 2026 and December 2025, respectively.

***Other contingencies***

Various legal claims also arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company's consolidated financial statements.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**15.** **DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES** 

***Interest Rate Risk Management - Cash Flow Hedging Instruments***

The Company uses short-term funding sources, such as FHLB advances and brokered deposits, to fund the Company's lending and investment activities and other general business purposes. These instruments expose the Company to variability in interest payments due to changes in interest rates when the short-term funding rolls over. If interest rates increase, interest expense increases. Conversely, if interest rates decrease, interest expense decreases. Management believes it is prudent to limit the variability of a portion of its interest payments and, generally hedges a portion of its variable interest payments. To meet this objective, management enters into interest rate swap agreements whereby the Company receives variable interest rate payments and makes fixed interest rate payments. Management intends on rolling over the short-term funding sources through the term of the interest rate swap agreements.

Information pertaining to outstanding interest rate swap agreements designated as cash flow hedges is as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
|  | (Dollars in thousands) | (Dollars in thousands) |
|  Notional amount | $50000 | $50000 |
|  Weighted average pay rate | 4.32% | 4.32% |
|  Weighted average receive rate | 4.24% | 5.15% |
|  Weighted average remaining term in years | 0.2 | 1.2 |
|  Unrealized loss relating to interest rate swap | $(68) | $(148) |

---

These agreements provide for the Company to receive payments at a variable rate determined by a specified index (overnight SOFR) in exchange for making payments at a fixed rate plus a set spread.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Interest Rate Risk Management – Non-Hedging Derivatives***

The Company manages a matched book with respect to its interest rate derivative instruments provided to customers in order to minimize its net risk exposure from such transactions.

The Company executes interest rate swaps with certain commercial banking customers to facilitate their respective risk management strategies. These interest rate swaps are simultaneously offset with interest rate swaps that the Company executes with a third party, thereby minimizing its net risk exposure resulting from such transactions. These derivatives are not designated as hedges. Changes in the fair value of both the customer swaps and the offsetting interest rate swaps are recognized directly in earnings. During the years ended December 31, 2025 and 2024, the Company recognized no net holding gain or loss related to such derivatives.

The Company has agreements with its interest rate swap derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

If the Company had breached any of these provisions, it would have been required to settle its obligations under the agreements at the termination value. In addition, the Company had cross-default provisions with its commercial customer loan agreements which provide cross-collateralization with the customer loan collateral.

At December 31, 2025 and 2024, the following interest rate swaps were outstanding:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2024 | 2024 |
|  | With commercial<br>loan borrowers | With third-party<br>financial institutions | With commercial<br>loan borrowers | With third-party<br>financial institutions |
|  | | (Dollars in thousands) | (Dollars in thousands) | |
|  Notional amount | $51643 | $51643 | $59821 | $59821 |
|  Weighted average rate | 3.9% | (3.9%) | 3.7% | (3.7%) |
|  Weighted average remaining term | 4 Years | 4 Years | 4 Years | 4 Years |
|  Unrealized fair value gain (loss) | $(3270) | $3270 | $(6100) | $6100 |

---

The variable rate component of these agreements is set at a variable rate plus the prevailing one-month CME Term SOFR rate.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Risk Participation Agreements***

The Company entered into risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which the Company is a participant. The risk participation agreements provide credit protection to the financial institution should the borrower fail to perform on its interest rate derivative contract with the financial institution.

The notional amount of risk participation agreements was $5,265,000 at December 31, 2025 and 2024, respectively. There were no fair value adjustments from risk participation agreements at December 31, 2025 or 2024.

***Mortgage Banking Derivatives-Interest rate lock commitments***

The Company enters into commitments to fund residential mortgage loans at specified times in the future, with the intention that these loans will subsequently be sold in the secondary market. A mortgage loan commitment binds the Company to lend funds to a potential borrower at a specified interest rate and within a specified period.

Outstanding interest rate lock commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. The notional amount of rate-locked mortgage loan commitments at December 31, 2025 and 2024 was $38,391,000 and $32,426,000, respectively, with a fair value asset of $667,000 and $265,000, respectively.

***Mortgage Banking Derivatives* - *Forward loan sale commitments*** 

The Company utilizes best efforts and mandatory delivery forward loan sale commitments to mitigate the risk of potential decreases in the values of loans held for sale and loan commitments that would result from the exercise of the derivative loan commitments. With a mandatory delivery contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a "pair-off" fee, based on then-current market prices, to the investor to compensate the investor for the shortfall. With best efforts commitments, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the underlying loan closes. Generally, the price the investor will pay is specified prior to the loan being funded. The notional amount of forward loan sale commitments at December 31, 2025 and 2024, was $23,062,000 and $9,834,000, respectively, with a fair value liability of $100,000 and $9,000, respectively.

**16.** **MINIMUM REGULATORY CAPITAL REQUIREMENTS** 

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's and Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

The regulations require a minimum ratio of total capital to risk-weighted assets of 8%, common equity Tier 1 capital to risk-weighted assets of 4.5%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6% and a minimum leverage ratio of 4% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses.

As of December 31, 2025, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

To be categorized as well capitalized, an institution must maintain minimum capital ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank's category.

Management believes, as of December 31, 2025 and 2024, that the Company and the Bank meet all capital adequacy requirements to which they are subject.

The Company's and the Bank's actual capital amounts and ratios as of December 31, 2025 and 2024 are also presented in the following table.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Actual | Actual | Minimum Capital<br>Requirements | Minimum Capital<br>Requirements | Minimum<br>To Be Well<br>Capitalized Under<br>Prompt Corrective<br>Action Provisions | Minimum<br>To Be Well<br>Capitalized Under<br>Prompt Corrective<br>Action Provisions |
|  | Amount | Ratio | Amount | Ratio | Amount | Ratio |
|  | | | (Dollars in thousands) | (Dollars in thousands) | | |
| **<u>December 31, 2025:</u>** |  |  |  |  |  |  |
|  Total capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | $281648 | 12.8% | $176132 | 8.0% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 258704 | 11.8 | 174937 | 8.0 | $218671 | 10.0% |
|  Common equity tier 1 capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 159520 | 7.2 | 99074 | 4.5 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 231544 | 10.6 | 98402 | 4.5 | 142136 | 6.5 |
|  Tier 1 capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 159520 | 7.2 | 132099 | 6.0 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 231544 | 10.6 | 131203 | 6.0 | 174937 | 8.0 |
|  Tier 1 capital to average assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 159520 | 5.6 | 114411 | 4.0 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 231544 | 8.1 | 114000 | 4.0 | 142500 | 5.0 |
| **<u>December 31, 2024:</u>** |  |  |  |  |  |  |
|  Total capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | $289971 | 13.0% | $178893 | 8.0% | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 261270 | 11.8 | 177726 | 8.0 | $222158 | 10.0% |
|  Common equity tier 1 capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 154299 | 6.9 | 100628 | 4.5 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 235950 | 10.6 | 99971 | 4.5 | 144403 | 6.5 |
|  Tier 1 capital to risk-weighted assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 154299 | 6.9 | 134170 | 6.0 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 235950 | 10.6 | 133295 | 6.0 | 177726 | 8.0 |
|  Tier 1 capital to average assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 154299 | 5.3 | 116615 | 4.0 | N/A | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank | 235950 | 8.1 | 115980 | 4.0 | 144975 | 5.0 |

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**17.** **EMPLOYEE BENEFIT PLANS** 

***Defined benefit pension plan***

The Company provides basic and supplemental pension benefits for eligible employees through a defined benefit pension plan. Each employee reaching the age of 21 and having completed at least 1,000 hours of service in one twelve-month period beginning with such employee's date of employment, or any anniversary thereof, automatically becomes a participant in the retirement plan. All eligible participants hired before November 1, 2023, are fully vested after three years of service. Eligible participants hired after November 1, 2023, are fully vested after five years of service. Information pertaining to the activity in the plan is as follows:

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| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Change in benefit obligation: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefit obligation at beginning of year | $69883 | $65872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service cost | 4375 | 4237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest cost | 3436 | 3233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial loss (1) | 961 | 373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefits paid | (6557) | (3832) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefit obligation at end of year | 72098 | 69883 |
|  Change in plan assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value of plan assets at beginning of year | 91881 | 84397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actual return on plan assets | 13682 | 11316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefits paid | (6557) | (3832) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value of plan assets at end of year | 99006 | 91881 |
|  Funded status and pension asset at end of year | $26908 | $21998 |
|  Accumulated benefit obligation at end of year | $55662 | $55570 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The actuarial loss for the years ended December 31, 2025 and 2024, was due to demographic changes
partially offset by assumption changes.

Actuarial assumptions used to determine the projected benefit obligation are as follows:

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
|  Discount rate | 5.50% | 5.25% |
|  Rate of compensation increase | 4.25 | 4.25 |

---

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The components of net periodic pension cost are as follows:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
|  | (In thousands) | (In thousands) |
|  Service cost | $4375 | $4237 |
|  Interest cost | 3437 | 3233 |
|  Expected return on plan assets | (6999) | (6411) |
|  Amortization of prior service cost | 110 | 324 |
|  Recognized net actuarial loss |  | 134 |
|  | $923 | $1517 |

---

The service cost component of pension cost is included in salaries and employee benefits expense and the remaining components are included in other general and administrative expense on the consolidated statements of net income.

Actuarial assumptions used to determine net periodic pension cost are as follows:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
|  Discount rate | 5.25% | 5.25% |
|  Expected long-term rate of return on plan assets | 8.00 | 8.00 |
|  Annual salary increase | 4.25 | 4.25 |

---

The discount rate was selected to reflect the expected long-term rate of return based on prevailing yields on high quality fixed income investments. The expected long-term rate of return on plan assets is based on prevailing yields on high quality fixed income investments increased by a premium of 3% to 5% for equity securities.

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The Company, through its Investment Committee, selected Plimoth Investment Advisors as the defined benefit plan's investment manager and custodian. An Investment Policy Statement was approved which is consistent with the provisions of the Employee Retirement Income Security Act (ERISA). The policy is also consistent with Modern Portfolio Theory practices, which requires sufficient levels of diversification to promote maximum investment return per unit of risk taken. The policy is not only designed to diversify market and security risk, but also inflation risk which can deteriorate the value of capital over time. The policy sets a strategic asset allocation mix between stocks, bonds and other diversifying assets, along with allowable ranges within each asset class. The policy also includes permitted and prohibited asset classes and security types, along with setting minimum asset quality parameters. The target allocation mix for the portfolio calls for an equity-based investment deployment range of 45% to 75% of total portfolio assets, fixed income investments from 20% to 40%, short-term from 0-10% and other investments (preferred stock, real estate investment trusts (REITs), master limited partnerships (MLPs)) from 0% to 40%.

In establishing the above referenced Investment Policy, Plimoth has worked with the Company to create a level of expectation on behalf of the Company as to the prudent management of plan assets, monitoring of plan assets/holdings, evaluating management of the plan and communicating plan activity.

Plimoth Investment Advisors, in its role as Investment Manager, provides input as to the appropriate asset allocation, time horizon, and risk profile. Utilizing their investment discipline and security selection processes, Plimoth shall manage the assets in accordance with the Investment Policy Statement and shall report on investment performance and other matters impacting the effective management of plan assets. The overall investment return objective should emphasize both a total return in excess of established benchmarks and lower aggregate portfolio volatility. This shall be conducted in a manner consistent with all parameters of the Investment Policy Statement.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The fair value of the Company's pension plan assets are summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1 | Level 2 | Level 3 | Total<br>Fair Value |
|  | | (In thousands) | (In thousands) | |
|  <u>December 31, 2025</u> |  |  |  |  |
|  Corporate bonds | $— | $26082 | $— | $26082 |
|  Equity securities | 56403 |  |  | 56403 |
|  Mutual funds | 12552 |  |  | 12552 |
|  Other | 3969 |  |  | 3969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total plan assets | $72924 | $26082 | $— | $99006 |
|  <u>December 31, 2024</u> |  |  |  |  |
|  Corporate bonds | $— | $25370 | $— | $25370 |
|  Equity securities | 50469 |  |  | 50469 |
|  Mutual funds | 9848 |  |  | 9848 |
|  Other | 6194 |  |  | 6194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total plan assets | $66511 | $25370 | $— | $91881 |

---

The plan assets measured at fair value in Level 1 are based on quoted market prices in an active exchange market. Plan assets measured at fair value in Level 2 are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data.

Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows:

---

| | |
|:---|:---|
| Year Ending<br> December 31, | Amount |
|  | (In thousands) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | $8886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2027 | 4795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2028 | 3979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2029 | 5063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2030 | 4915 |
| 2031-2035 | 27613 |

---

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Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**EMPLOYEE BENEFIT PLANS** 

***401(k) plan***

The Company has a 401(k) savings plan, which provides for voluntary contributions by participating employees as allowed by federal tax laws. Under the terms of the plan, an employee is eligible for the Company's Safe Harbor contribution of 3% of the employee's compensation after one year of service and a minimum of 1,000 hours. Total 401(k) plan expense for the years ended December 31, 2025 and 2024 amounted to $1,664,000 and $1,522,000, respectively.

***Nonqualified deferred compensation plan***

The Company has a nonqualified executive deferred compensation plan, which provides for a select group of management or highly compensated employees to participate in the plan and make voluntary pre-tax contributions, which are 100% vested. Under the terms of the plan, the Company can make discretionary contributions, which vest ratably over 5 years. The corresponding invested assets are held in Rabbi Trusts which are included in other assets on the consolidated balance sheets. The company had an expense of $2,600,000 and $1,900,000 for the years ended December 31, 2025, and 2024, respectively.

***Supplemental executive retirement plan***

The Company has a Supplemental Executive Retirement Plan which provides for certain of the Company's executives to receive monthly benefits upon retirement, subject to certain limitations as set forth in the Plan. The present value of these future benefits is accrued over the executives' terms of employment. The company had an expense of $490,000 for the year ended December 31, 2025, and income of $172,000 for the year ended December 31, 2024, respectively.

***Supplemental director retirement plan***

The Company has adopted an unfunded Supplemental Director Retirement Plan which provides for all the Company's Directors to receive annual benefits upon retirement, subject to certain limitations set forth in the Plan.

At December 31, 2025 and 2024, the projected benefit obligation and accumulated benefit obligation amounted to $2,127,000 and $1,783,000, respectively.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

The discount rates used in determining the projected benefit obligation at December 31, 2025 and 2024 were 5.00% and 5.40%, respectively. The fee inflation assumption used to determine the projected benefit obligation at December 31, 2025 and 2024 was 2.00%.

For the years ended December 31, 2025, and 2024, both the Company contributions and benefits paid amounted to $169,000 and $130,000, respectively, and net periodic retirement costs amounted to $191,000 and $180,000, respectively. The discount rate used in determining net periodic pension cost for the years ended December 31, 2025, and 2024 was 5.40% and 4.90%, respectively.

Projected benefit payments, which reflect expected future service, as appropriate, are as follows:

---

| | |
|:---|:---|
| Year Ending<br> December 31, | Amount |
|  | (In thousands) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | $254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2027 | 254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2028 | 229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2029 | 262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2030 | 262 |
| 2031-2035 | 1069 |

---

***Split-dollar life insurance agreements***

In connection with the supplemental retirement plans, the Company has purchased life insurance policies applicable to certain executive officers and directors included in the aforementioned plans. The policies are reflected on the consolidated balance sheets at cash surrender value. Increases in cash surrender value are reflected in other income in the consolidated statements of net income. The Company is the sole owner of these life insurance policies. The Company has entered into agreements with these executives and directors whereby the Company will pay to the executives and directors' estates or beneficiaries a portion of the death benefit that the Company will receive as beneficiary of such policies. The cost of these agreements is being accrued over the respective service periods.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**18.** **FAIR VALUE OF ASSETS AND LIABILITIES** 

***Determination of fair value***

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The following methods and assumptions were used by the Company in estimating fair value.

<u>Cash and cash equivalents</u> - For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the Consolidated Balance Sheets approximate fair value.

<u>Marketable equity securities and securities available for sale</u> – Fair value measurements are obtained from a third-party pricing service and are not adjusted by management. The securities measured at fair value in Level 1 are based on quoted market prices in an active exchange market. Securities measured at fair value in Level 2 are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. These Level 2 prices were not adjusted by management. There were no securities measured at fair value in Level 3.

<u>FHLB Stock</u> – The fair value of FHLB stock approximates the carrying amount based on the redemption provisions of the FHLB. These assets were classified as Level 2.

<u>Loans</u> – The fair value of loans is measured on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Loans were classified as Level 3 since the valuation methodology utilizes significant unobservable inputs.

<u>Loans held for sale</u> – Fair values are based on commitments in effect from investors or prevailing market prices.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

<u>Individually evaluated loans</u> – Fair values for collateral dependent loans are based on the appraised value of the underlying collateral considering discounting factors, if deemed appropriate, and adjusted for selling costs. Current appraisals are obtained when it is determined that the Company is considering foreclosure. In instances where a current appraisal is not obtained, the most recent appraisal may be discounted based on management's historical knowledge, expertise or changes in market conditions from time of valuation. Given the significance of management's judgement in discounting the appraisals, these are considered Level 3 fair value measurements.

<u>Mortgage servicing rights</u> - The Company accounts for mortgage servicing rights at cost, subject to impairment testing. When the carrying value of a tranche exceeds fair value, a valuation allowance is established to reduce the carrying cost to fair value. Fair value is based on a valuation model that calculates the present value of estimated net servicing income. The Company obtains a third-party valuation based upon loan level data including note rate, type and term of the underlying loans. The model utilizes two significant unobservable inputs, namely loan prepayment assumptions and the discount rate used, to calculate the fair value of each tranche, and, as such, the Company has classified the model within Level 3 of the fair value hierarchy.

<u>Accrued Interest Receivable</u> – For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the Consolidated Balance Sheets approximate fair value. These assets were classified as Level 2.

<u>Interest rate swap agreements</u> – The fair values of interest rate swap agreements are based on a valuation model that uses primarily observable inputs, such as benchmark yield curves and interest rates and also include the value associated with counterparty credit risk.

<u>Deposits</u> – The fair value of deposits is valued using a replacement cost of funds approach and discounted to the market rates and based on weighted remaining maturity for maturing deposits. Deposits were classified as Level 3 since the valuation methodology utilizes significant unobservable inputs.

<u>FHLB Advances</u> – The fair value of the FHLB Advances approximates the fair value of these liabilities and are classified as Level 2.

<u>Mortgage banking derivatives</u> – The fair values of interest rate lock commitments and forward loan sale commitments are based on fair values of the underlying mortgage loans, including servicing values, and the probability of such commitments being exercised.

<u>Accrued Interest Payable and Mortgagor's escrow accounts</u> – For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the Consolidated Balance Sheets approximate fair value. These liabilities were classified as Level 2

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Assets and liabilities measured at fair value on a recurring basis***

Assets and liabilities measured at fair value on a recurring basis are summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1 | Level 2 | Level 3 | Total<br>Fair Value |
| <u>December 31, 2025</u> |  | (In thousands) | (In thousands) |  |
|  Assets: |  |  |  |  |
|  Securities available for sale | $— | $342292 | $— | $342292 |
|  Marketable equity securities | 2188 |  |  | 2188 |
|  Loans held for sale |  | 21262 |  | 21262 |
|  Interest rate lock agreements |  | 667 |  | 667 |
|  Interest rate swap agreements |  | 3270 |  | 3270 |
|  | $2188 | $367491 | $— | $369679 |
|  Liabilities: |  |  |  |  |
|  Forward loan sale commitments | $— | $100 | $— | $100 |
|  Interest rate swap agreements |  | 3338 |  | 3338 |
|  | $— | $3438 | $— | $3438 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1 | Level 2 | Level 3 | Total<br>Fair Value |
| <u>December 31, 2024</u> |  | (In thousands) | (In thousands) |  |
|  Assets: |  |  |  |  |
|  Securities available for sale | $— | $287373 | $— | $287373 |
|  Marketable equity securities | 2039 |  |  | 2039 |
|  Loans held for sale |  | 8945 |  | 8945 |
|  Interest rate lock agreements |  | 265 |  | 265 |
|  Interest rate swap agreements |  | 6100 |  | 6100 |
|  | $2039 | $302683 | $— | $304722 |
|  Liabilities: |  |  |  |  |
|  Forward loan sale commitments | $— | $9 | $— | $9 |
|  Interest rate swap agreements |  | 6248 |  | $6248 |
|  | $— | $6257 | $— | $6257 |

---

The Company may also be required, from time to time, to measure certain other assets and liabilities at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets.

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Assets and liabilities measured at fair value on a nonrecurring basis***

Certain individually evaluated collateral dependent loans were adjusted to the fair value, less costs to sell, of the underlying collateral securing these loans resulting in losses. The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for credit losses. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties.

Assets measured at fair value on a nonrecurring basis are summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | Year Ended<br>December 31, 2025 |
|  | Level 1 | Level 2 | Level 3 | Total Losses |
|  | | (In thousands) | (In thousands) | |
|  Collateral dependent individually evaluated loans | $— | $— | $28232 | $6547 |
|  | $— | $— | $28232 | $6547 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 | Year Ended<br>December 31, 2024 |
|  | Level 1 | Level 2 | Level 3 | Total Losses |
|  | | (In thousands) | (In thousands) | |
|  Collateral dependent individually evaluated loans | $— | $— | $22744 | $3571 |
|  | $— | $— | $22744 | $3571 |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

***Summary of Estimated Fair Values of Financial Instruments***

The estimated fair values, and related carrying amounts, of our financial instruments are included in the table below. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Fair Value** | **Fair Value** | **Fair Value** |
|  | **Carrying Amount** | **Level 1** | **Level 2** | **Level 3** |
|  | | (in thousands) | (in thousands) | (in thousands) |
|  **<u>December 31, 2025</u>** |  |  |  |  |
|  Financial Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $38519 | $38519 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale | 342292 |  | 342292 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketable equity securities | 2188 | 2188 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Bank stock | 5787 |  |  | 5787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans held for sale | 21262 |  | 21262 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net | 2236274 |  |  | 2162145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage servicing rights, net | 13991 |  |  | 15788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest receivable | 10034 |  |  | 10034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 3937 |  | 3937 |  |
|  Financial Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 2423306 |  |  | 2426881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 98063 |  |  | 98270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated Debt | 94578 |  |  | 92783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgagors' escrow accounts | 3804 |  | 3804 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accured interest payable | 1187 |  |  | 1187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 3438 |  | 3438 |  |
|  **<u>December 31, 2024</u>** |  |  |  |  |
|  Financial Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $75957 | $75957 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities available for sale | 287373 |  | 287373 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketable equity securities | 2039 | 2039 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal Home Loan Bank stock | 12634 |  |  | $12634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans held for sale | 8945 |  | 8945 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net | 2333986 |  |  | 2184576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage servicing rights, net | 12770 |  |  | 14040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest receivable | 10165 |  |  | 10165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | 6365 |  | 6365 |  |
|  Financial Liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits | 2325880 |  |  | 2329574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | 270608 |  |  | 271311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated Debt | 109193 |  |  | 99459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgagors' escrow accounts | 3681 |  | 3681 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accured interest payable | 2066 |  |  | 2066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | 6257 |  | 6257 |  |

---

------

Narragansett Financial Corporation and Subsidiary

Notes to Consolidated Financial Statements

**19.** **SUBSEQUENT EVENTS** 

Management has evaluated subsequent events through June 8, 2026, which is the date the financial statements were available to be issued.

In January 2026, the Bank sold its student loan portfolio, which was previously included in the Consumer Loan segment (see Note 4) for $1,231,000. Other than the business reorganization and stock offering disclosed (see Note 1) and the sale of the student loan portfolio there were no other subsequent events that require adjustment to or disclosure in the consolidated financial statements.

------

Narragansett Financial Corporation and Subsidiary

Consolidating Balance Sheet

December 31, 2025

(in thousands)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Assets | BayCoast<br>Mortgage | Priority<br>Funding & Sub | BayCoast<br>Bank | Other<br>Subsidiaries | Eliminating<br>Entries | Consolidated<br>BayCoast<br>Bank | Narragansett<br>Financial | Eliminating<br>Entries | Consolidated<br>Narragansett<br>Financial |
|  Cash and cash equivalents | $25899 | $27480 | $33449 | $50676 | $(98985) | $38519 | $4357 | $(4357) | $38519 |
|  Securities available for sale, at fair value |  |  | 294432 | 47860 |  | 342292 |  |  | 342292 |
|  Marketable equity securities, at fair value |  |  | 2188 |  |  | 2188 |  |  | 2188 |
|  FHLB stock, at cost |  |  | 5787 |  |  | 5787 |  |  | 5787 |
|  Loans held for sale, at fair value |  |  | 21262 |  |  | 21262 |  |  | 21262 |
|  Loans, net | 21417 | 578 | 2218258 |  | (11201) | 2229052 | 7205 | 17 | 2236274 |
|  Mortgage servicing rights |  |  | 13991 |  |  | 13991 |  |  | 13991 |
|  Bank-owned life insurance |  |  | 40962 |  |  | 40962 |  |  | 40962 |
|  Premises and equipment, net | 142 | 31 | 34899 | 5629 |  | 40701 |  |  | 40701 |
|  Accrued interest receivable |  |  | 9773 | 259 |  | 10032 | 2 |  | 10034 |
|  Net deferred tax asset |  |  | 5720 | 121 |  | 5841 |  |  | 5841 |
|  Goodwill and other intangible assets |  | 1583 | 19093 | 15210 | (7700) | 28186 |  |  | 28186 |
|  Equity method investments |  |  | 14196 |  |  | 14196 |  |  | 14196 |
|  Right of use lease asset | 164 | 165 | 9337 | 375 |  | 10041 |  |  | 10041 |
|  Other assets | 1896 | 79 | 47554 | 1783 | (7466) | 43846 | 1531 | 2925 | 48302 |
|  Investment in subsidiaries |  |  | 173737 |  | (173737) |  | 261418 | (261418) |  |
|  | $49518 | $29916 | $2944638 | $121913 | $(299089) | $2846896 | $274513 | $(262833) | $2858576 |
|  Liabilities and Retained Earnings |  |  |  |  |  |  |  |  |  |
|  Deposits |  |  | 2526768 |  | (99105) | 2427663 |  | (4357) | 2423306 |
|  Borrowings |  |  | 98063 |  |  | 98063 |  |  | 98063 |
|  Subordinated debt |  |  |  |  |  |  | 94578 |  | 94578 |
|  Warehouse line of credit | 11201 |  |  |  | (11201) |  |  |  |  |
|  Lease Liability | 186 | 167 | 9531 | 373 |  | 10257 |  |  | 10257 |
|  Other liabilities | 12184 | 496 | 50963 | 3447 | (15046) | 52044 | (9443) | 2925 | 45526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 23571 | 663 | 2685325 | 3820 | (125352) | 2588027 | 85135 | (1432) | 2671730 |
|  Commitments and contingencies (Notes 5,6, 14) |  |  |  |  |  |  |  |  |  |
|  Retained earnings | 25947 | 29253 | 261434 | 118521 | (173737) | 261418 | 189378 | (261401) | 189395 |
|  Accumulated other comprehensive loss |  |  | (2121) | (428) |  | (2549) |  |  | (2549) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total retained earnings | 25947 | 29253 | 259313 | 118093 | (173737) | 258869 | 189378 | (261401) | 186846 |
|  | $49518 | $29916 | $2944638 | $121913 | $(299089) | $2846896 | $274513 | $(262833) | $2858576 |

---

------

Narragansett Financial Corporation and Subsidiary

Consolidating Statement of Net Income

Year Ended December 31, 2025

(in thousands)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | BayCoast<br>Mortgage | Priority<br>Funding & Sub | BayCoast<br>Bank | Other<br>Subsidiaries | Eliminating<br>Entries | Consolidated<br>BayCoast<br>Bank | Narragansett<br>Financial | Eliminating<br>Entries | Consolidated<br>Narragansett<br>Financial |
|  Interest and dividend income: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and fees on loans | $642 | $52 | $130095 | $— | $(41) | $130748 | $566 | $— | $131314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt securities |  |  | 7811 | 1653 |  | 9464 |  |  | 9464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income |  |  | 885 |  |  | 885 | 17000 | (17000) | 885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on cash equivalents | 35 | 27 | 1630 | 103 | (148) | 1647 |  |  | 1647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest and dividend income | 677 | 79 | 140421 | 1756 | (189) | 142744 | 17566 | (17000) | 143310 |
|  Interest expense: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on deposits |  |  | 51462 |  | (148) | 51314 |  | (30) | 51284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on borrowings | 41 |  | 8322 |  | (41) | 8322 |  |  | 8322 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on subordinated debt |  |  |  |  |  |  | 7580 |  | 7580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest expense | 41 |  | 59784 |  | (189) | 59636 | 7580 | (30) | 67186 |
|  Net interest income | 636 | 79 | 80637 | 1756 |  | 83108 | 9986 | (16970) | 76124 |
|  Provision for credit losses |  |  | 6010 |  |  | 6010 | 1350 |  | 7360 |
|  Net interest income, after provision for credit losses | 636 | 79 | 74627 | 1756 |  | 77098 | 8636 | (16970) | 68764 |
|  Other income: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customer service fees |  |  | 10613 |  |  | 10613 |  |  | 10613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loan servicing fee income (expense) |  |  | (2231) |  |  | (2231) |  |  | (2231) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trust department fees |  |  |  | 6156 |  | 6156 |  |  | 6156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance and brokerage commissions |  | 63 | 2007 | 12398 |  | 14468 |  |  | 14468 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on securities available for sale, net |  |  | (41) | (5) |  | (46) |  |  | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on marketable equity securities, net |  |  | 149 |  |  | 149 |  |  | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sales of portfolio loans |  |  | 257 |  |  | 257 |  |  | 257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgage banking income | 11182 | 9044 | (3995) |  |  | 16231 |  |  | 16231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank-owned life insurance income |  |  | 2122 |  |  | 2122 |  |  | 2122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous | 470 | 1065 | 1072 |  |  | 2607 | (24) |  | 2583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income | 11652 | 10172 | 9953 | 18549 |  | 50326 | (24) |  | 50302 |
|  Operating expenses: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries and employee benefits | 7627 | 4752 | 52792 | 11758 |  | 76929 | 93 |  | 77022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and equipment | 564 | 192 | 12310 | 1281 |  | 14347 |  |  | 14347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 97 | 128 | 2226 | 217 |  | 2668 | 31 |  | 2699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Data processing | 608 | 9 | 3903 | 85 |  | 4605 |  |  | 4605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising costs | 209 | 156 | 1717 | 45 |  | 2127 |  |  | 2127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposit insurance |  |  | 2721 |  |  | 2721 |  |  | 2721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets |  |  |  | 1021 |  | 1021 |  |  | 1021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other general and administrative | 978 | 736 | 4910 | 1132 |  | 7756 | 1600 |  | 9356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 10083 | 5973 | 80579 | 15539 |  | 112174 | 1724 |  | 113898 |
|  Income (loss) before income taxes | 2205 | 4278 | 4001 | 4766 |  | 15250 | 6888 | (16970) | 5168 |
|  Provision (benefit) for income taxes |  |  | 1688 | 190 |  | 1878 | (2709) |  | (831) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | 2205 | 4278 | 2313 | 4576 |  | 13372 | 9597 | (16970) | 5999 |

---

------

**No person has been authorized to give any information or to make any representation other than as contained in this prospectus and, if given or made, such other information or representation must not be relied upon as having been authorized by Narragansett Bancorp, Inc. or BayCoast Bank. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby to any person in any jurisdiction in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so, or to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. Neither the delivery of this prospectus nor any sale hereunder shall under any circumstances create any implication that there has been no change in the affairs of Narragansett Bancorp, Inc. or BayCoast Bank since any of the dates as of which information is furnished herein or since the date hereof.** 

**Up to 7,912,000 shares** 

**(Subject to Increase to up to 9,098,800 shares)**![LOGO](g122170dsp441.jpg)

**(Proposed Holding Company for BayCoast Bank)** 

**COMMON STOCK** 

**par value $0.01 per share** 

**PROSPECTUS**![LOGO](g122170piper_med.jpg)

**[prospectus date]** 

**These securities are not deposits or accounts and are not federally insured or guaranteed.** 

**Until [expiration date], all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.** 

------

**PART II** 

**INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13.** **Other Expenses of Issuance and Distribution** <br>

---

| | |
|:---|:---|
|  | Estimated Amount |
|  Registrant's Legal Fees and Expenses | $875000 |
|  Registrant's Accounting Fees and Expenses (Including State Tax opinion) | 235000 |
|  Marketing Agent's Fees and Expenses | 1213250 |
|  Records Management Agent's Fees and Expenses | 140000 |
|  Independent Appraiser's Fees and Expenses | 142500 |
|  Printing, Postage, Mailing and EDGAR Fees and Expenses | 500000 |
|  Filing Fees (FINRA, SEC, Nasdaq) | 126500 |
|  Transfer Agent's Fees and Expenses | 25000 |
|  Business Plan Consultant's Fees and Expenses | 78000 |
|  Other | 68000 |
|  Total | $3403250 |

---

(1) Assumes 100% of the shares are sold in the subscription offering.

**Item 14.** **Indemnification of Directors and Officers** <br>

Article 10 of the Articles of Incorporation of Narragansett Bancorp, Inc. (the "Corporation") sets forth the circumstances under which directors, officers, employees and agents of the Corporation may be insured or indemnified against liability which they may incur in their capacities as such:

**<u>ARTICLE 10. Indemnification, etc. of Directors and Officers.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Indemnification.** The Corporation shall indemnify (1) its current and former directors and officers, whether serving the Corporation or at its request any other entity, to the fullest extent required or permitted by the MGCL now or hereafter in force, including the advancement of expenses under the procedures and to the fullest extent permitted by law, and (2) other employees and agents to such extent as shall be authorized by the Board of Directors and permitted by law; provided, however, that, except as provided in Section B of this Article 10 with respect to proceedings to enforce rights to indemnification, the Corporation shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board of Directors of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Procedure.** If a claim under Section A of this Article 10 is not paid in full by the Corporation within sixty (60) days after a written claim has been received by the Corporation, except in the case of a claim for an advancement of expenses, in which case the applicable period shall be twenty (20) days, the indemnitee may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the indemnitee shall also be entitled to be reimbursed the expense of prosecuting or defending such suit. It shall be a defense to any action for advancement of expenses that the Corporation has not received both (i) an undertaking as required by law to repay such advances if it shall ultimately be determined that the standard of conduct has not been met and (ii) a written affirmation by the indemnitee of his good faith belief that the standard of conduct necessary for indemnification by the Corporation has been met. In (i) any suit brought by the indemnitee to enforce a right to indemnification hereunder (but not in a suit brought by the indemnitee to enforce a right to an advancement of expenses) it shall be a defense that, and (ii) any suit by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking the Corporation shall be entitled to recover such expenses upon a final adjudication that, the indemnitee has not met the applicable standard for indemnification set forth in the MGCL. Neither the failure of the Corporation (including its Board of Directors, independent legal counsel, or its stockholders) to have made a determination before the commencement of such suit that indemnification of the indemnitee is proper in the circumstances because the indemnitee has met the applicable

------

standard of conduct set forth in the MGCL, nor an actual determination by the Corporation (including its Board of Directors, independent legal counsel, or its stockholders) that the indemnitee has not met such applicable standard of conduct, shall create a presumption that the indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by the indemnitee, be a defense to such suit. In any suit brought by the indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this Article 10 or otherwise shall be on the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Non-Exclusivity.** The rights to indemnification and to the advancement of expenses conferred in this Article 10 shall not be exclusive of any other right that any Person may have or hereafter acquire under any statute, these Articles, the Corporation's Bylaws, any agreement, any vote of stockholders or the Board of Directors, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Insurance.** The Corporation may maintain insurance, at its expense, to insure itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such Person against such expense, liability or loss under the MGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Miscellaneous.** The Corporation shall not be liable for any payment under this Article 10 in connection with a claim made by any indemnitee to the extent such indemnitee has otherwise actually received payment under any insurance policy, agreement, or otherwise, of the amounts otherwise indemnifiable hereunder. The rights to indemnification and to the advancement of expenses conferred in Sections A and B of this Article 10 shall be contract rights and such rights shall continue as to an indemnitee who has ceased to be a director or officer and shall inure to the benefit of the indemnitee's heirs, executors and administrators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Limitations Imposed by Federal Law.** Notwithstanding any other provision set forth in this Article 10, in no event shall any payments made by the Corporation pursuant to this Article 10 exceed the amount permissible under applicable federal law, including, without limitation, Section 18(k) of the Federal Deposit Insurance Act and the regulations promulgated thereunder.

Any repeal or modification of this Article 10 shall not in any way diminish any rights to indemnification or advancement of expenses of such director or officer or the obligations of the Corporation arising hereunder with respect to events occurring, or claims made, while this Article 10 is in force.

**Item 15.** **Recent Sales of Unregistered Securities** <br>

Not Applicable.

**Item 16.** **Exhibits and Financial Statement Schedules** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) List of Exhibits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 [Engagement Letters between Narraganset Financial Corporation, BayCoast Bank and Piper Sandler & Co.](d122170dex11.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Form of Agency Agreement Among BayCoast Bank, Narragansett Bancorp, Inc., Narragansett Financial Corporation
and Piper Sandler & Co.\*

2 [Plan of Holding Company Reorganization and Plan of Stock Issuance](d122170dex2.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 [Articles of Incorporation of Narragansett Bancorp, Inc.](d122170dex31.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 [Bylaws of Narragansett Bancorp, Inc.](d122170dex32.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 [Form of Global Note for 5.875% Fixed to Floating Rate Subordinated Notes due December 15, 2027](d122170dex33.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 [Form of Global Note for 3.875% Fixed to Floating Rate Subordinated Notes due 2031](d122170dex34.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 [Form of Global Note for 8.50% Fixed to Floating Rate Subordinated Notes due 2032](d122170dex35.htm)

4 [Form of Common Stock Certificate of Narragansett Bancorp, Inc.](d122170dex4.htm)

5 [Opinion of Luse Gorman, PC regarding legality of securities being registered](d122170dex5.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 [Federal Income Tax Opinion of Luse Gorman, PC](d122170dex81.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 [State Income Tax Opinion of Wolf & Company, P.C.](d122170dex82.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 [Employment Agreement between BayCoast Bank and Marie Pellegrino†](d122170dex101.htm)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 [Annual Incentive Compensation Plan†](d122170dex102.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 [BayCoast Bank Deferred Compensation Plan†](d122170dex103.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 [Supplemental Executive Retirement Agreement with Nicholas M. Christ, as amended†](d122170dex104.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 [Executive Salary Continuation Agreement with Carl Taber, as amended†](d122170dex105.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 [Form of Supplemental Director Retirement Agreement†](d122170dex106.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 [Supplemental Executive Retirement Agreement with James F. Wallace†](d122170dex107.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 [Endorsement Method Split Dollar Plan Agreement†](d122170dex108.htm)

21 [Subsidiaries of Narragansett Bancorp, Inc.](d122170dex21.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1 Consent of Luse Gorman, PC (contained in Opinions included as [Exhibits 5](d122170dex5.htm) and [8.1](d122170dex81.htm))

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2 [Consent of RP Financial, LC.](d122170dex232.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.3 [Consent of Wolf & Company, P.C.](d122170dex233.htm)

---

| | |
|:---|:---|
| 24 | [Power of Attorney (set forth on signature page)](#sig)  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1 [Engagement letter between BayCoast Bank and RP Financial, LC. with respect to independent appraisal services](d122170dex991.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.2 [Letter of RP Financial, LC. with respect to value of subscription rights](d122170dex992.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.3 [Appraisal Report of RP Financial, LC.](d122170dex993.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.4 [Marketing Materials](d122170dex994.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.5 [Stock Order and Certification Form](d122170dex995.htm)

107 [Filing Fees Exhibit](d122170dexfilingfees.htm)

\* To be filed by amendment.

† Management contract or compensation plan or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Financial Statement Schedules

Financial statement schedules are not filed because the required information is inapplicable or is included in the consolidated financial statements and related notes.

**Item 17.** **Undertakings** <br>

The undersigned Registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:

The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (§230.424 of this chapter);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) That, for purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) That, for the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

------

**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the Town of Swansea, Commonwealth of Massachusetts, on June 12, 2026.

---

| | |
|:---|:---|
|  | **NARRAGANSETT BANCORP, INC.** |
| By: | /s/ Nicholas M. Christ |
|  | Nicholas M. Christ |
|  | Chair of the Board and Chief Executive Officer |
|  | (Duly Authorized Representative) |

---

**POWER OF ATTORNEY** 

We, the undersigned directors and officers of Narragansett Bancorp, Inc. (the "Corporation") hereby severally constitute and appoint Nicholas M. Christ as our true and lawful attorney and agent, to do any and all things in our names in the capacities indicated below which said individual may deem necessary or advisable to enable the Corporation to comply with the Securities Act of 1933, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission, in connection with the registration statement on Form S-1 relating to the offering of the Corporation's common stock, including specifically, but not limited to, power and authority to sign for us in our names in the capacities indicated below the registration statement and any and all amendments (including post-effective amendments) thereto; and we hereby approve, ratify and confirm all that said individual shall do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| /s/ Nicholas M. Christ<br> Nicholas M. Christ | Chair of the Board and Chief Executive Officer<br> (Principal Executive Officer) | June 12, 2026 |
| /s/ Diana Taxiera<br> Diana Taxiera | Senior Vice President, Chief Financial Officer and Treasurer<br> (Principal Financial and Accounting Officer) | June 12, 2026 |
| /s/ Maria L. Aguiar | Director | June 12, 2026 |
| Maria L. Aguiar |  |  |
| /s/ Gail M. Fortes | Director | June 12, 2026 |
| Gail M. Fortes |  |  |
| /s/ Kenneth D. Furtado | Director | June 12, 2026 |
| Kenneth D. Furtado |  |  |
| /s/ Paul M. Joncas | Director | June 12, 2026 |
| Paul M. Joncas |  |  |
| /s/ Steven W. Kenyon | Director | June 12, 2026 |
| Steven W. Kenyon |  |  |

---

------

---

| | | |
|:---|:---|:---|
| /s/ Brian R. LeComte | Director | June 12, 2026 |
| Brian R. LeComte |  |  |
| /s/ Eric B. Mack | Director | June 12, 2026 |
| Eric B. Mack |  |  |
| /s/ Mary Louise Nunes | Director | June 12, 2026 |
| Mary Louise Nunes |  |  |
| /s/ Margarita Patricio | Director | June 12, 2026 |
| Margarita Patricio |  |  |
| /s/ Marie Pellegrino | President and Director | June 12, 2026 |
| Marie Pellegrino |  |  |
| /s/ Carl W. Taber | Director | June 12, 2026 |
| Carl W. Taber |  |  |
| /s/ Lawrence R. Walsh | Director | June 12, 2026 |
| Lawrence R. Walsh |  |  |

---

## Exhibit 1.1

**Exhibit 1.1**![LOGO](g122170page001.jpg)

February 18, 2026

Board of Trustees

Narragansett Financial Corporation

Board of Directors

BayCoast Bank

330 Swansea Mall Drive

Swansea, MA 02777

Attention: Mr. Nicholas M. Christ

<u>President and Chief Executive Officer</u>

Ladies and Gentlemen:

Reference is made to Narragansett Financial Corporation (the "Parent") and BayCoast Bank (the "Bank" and together with the Parent, collectively, the "Company"). Piper Sandler & Co. ("Piper Sandler") understands that the boards of trustees/directors of the Parent and the Bank (collectively, the "Boards") have tentatively determined that the Parent shall adopt a Plan of Stock Issuance (the "Plan") that will provide for the minority stock issuance by the Parent of shares of common stock (the "Common Stock") to be offered and sold to the Bank's eligible depositors and certain tax-qualified employee benefit plans of the Company in a subscription offering and, under certain circumstances, in a community or syndicated offering (collectively, the "Offering"). Piper Sandler is pleased to assist the Company with the Offering and this letter is to confirm the terms and conditions of our engagement.

<u>SERVICES</u>

Piper Sandler will work with the Company and its management, counsel, accountants and other advisors in preparing for and completing the Offering and anticipates that its services will include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Consulting as to the marketing implications of any aspect of the Plan, including the percentage of the
Parent's Common Stock to be offered in the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Reviewing and discussing with the Boards the securities market implications and the financial impact of the
Offering on the Company, based upon the independent appraiser's appraisal of the Parent's Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Reviewing all offering documents, including the prospectus, stock order forms and related offering materials
(it being understood that preparation and filing of such documents will be the responsibility of the Company and its counsel);

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Assisting in the design and implementation of a marketing strategy for the Offering, and the drafting and
distribution of press releases as required or appropriate in connection with the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Assisting the Company management in scheduling and preparing for meetings with potential investors and/or other
broker-dealers in connection with the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Assisting the Company in analyzing proposals from outside vendors retained in connection with the Offering,
including printers, transfer agents and appraisal firms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Providing such other general advice and assistance as may be reasonably necessary and agreed upon to promote
the successful completion of the Offering.

Piper Sandler will act as exclusive marketing agent for the Company in the subscription offering and will serve as sole manager of any syndicated offering. Piper Sandler may also seek to form a syndicate of registered broker-dealers to assist in any syndicated offering (all such registered broker-dealers participating in the syndicated offering, including Piper Sandler, the "Syndicate Member Firms"). Piper Sandler will consult with the Company in selecting the Syndicate Member Firms and the extent of their participation in the Offering. Pursuant to the terms of the Plan, Piper Sandler will endeavor to distribute the Common Stock among dealers in a fashion that best meets the distribution objectives of the Company and the requirements of the Plan, which may result in limiting the allocation of stock to certain Syndicate Member Firms. It is understood that in no event shall any Syndicate Member Firm be obligated to take or purchase any Common Stock in the Offering.

<u>FEES</u>

If the Offering is consummated, the Company agrees to pay Piper Sandler for its marketing agent services a fee of (a) 1.35% of the aggregate Actual Purchase Price of all Common Stock sold in the subscription offering, *plus* (b) 3.00% of the aggregate Actual Purchase Price of all Common Stock sold in the community offering excluding Common Stock purchased by or on behalf of (i) any employee benefit plan or trust of the Company established for the benefit of its directors, trustees, officers and employees, (ii) any director, officer or employee of the Company or members of their immediate families (whether directly or through a personal trust), and (iii) one or more charitable foundations controlled by the Company, whether or not any such foundation is established in connection with the Offering.

With respect to any Common Stock sold in a syndicated offering, the Company agrees to pay an aggregate fee of 5.00% of the aggregate Actual Purchase Price of all Common Stock sold in any syndicated offering.

------

For purposes of this letter, the term "Actual Purchase Price" shall mean the price at which the Common Stock is sold in the Offering. All fees payable hereunder shall be payable in immediately available funds by wire transfer at the time of the closing of the Offering. If the Offering is terminated by the Company, no marketing agent services fees shall be payable by the Company to Piper Sandler hereunder.

<u>COSTS AND EXPENSES</u> 

In addition to any fees that may be payable to Piper Sandler hereunder and the expenses to be borne by the Company pursuant to the following paragraph, the Company agrees to reimburse Piper Sandler, upon request made from time to time, for its reasonable out-of-pocket expenses incurred in connection with its engagement hereunder, regardless of whether the Offering is consummated, including, without limitation, legal fees and expenses, travel and syndication expenses, up to a maximum of $140,000; *provided, however,* that Piper Sandler shall document such expenses to the reasonable satisfaction of the Company. The provisions of this paragraph are not intended to apply to or in any way impair the provisions contained under the heading "Indemnification and Contribution" of this letter.

As is customary, the Company will bear all other expenses incurred in connection with the Offering, including, without limitation, (i) the cost of obtaining all securities and bank regulatory approvals, including any required FINRA filing fees; (ii) the cost of printing and distributing the offering materials; (iii) the costs of blue sky qualification (including fees and expenses of blue sky counsel) of the Common Stock in the various states; (iv) listing fees; (v) all fees and disbursements of the Company's counsel, accountants, transfer agent and other advisors; and (vi) the establishment and operational expenses for the Stock Information Center (e.g., postage, telephones, supplies, temporary employees, etc.). In the event Piper Sandler incurs any such fees and expenses on behalf of the Company, the Company will reimburse Piper Sandler for such fees and expenses whether or not the Offering is consummated.

<u>DUE DILIGENCE REVIEW</u> 

Piper Sandler's obligation to perform the services contemplated by this letter shall be subject to the satisfactory completion of such investigations and inquiries relating to the Company and its directors, officers, agents and employees as Piper Sandler and its counsel in their sole discretion may deem appropriate under the circumstances. In this regard, the Company agrees that, at its expense, it will make available to Piper Sandler all information, whether or not publicly available, that Piper Sandler reasonably requests (the "Information"), and will allow Piper Sandler the opportunity to discuss with the management of the Company the financial condition, business and operations of the Company. The Company acknowledges that Piper Sandler will rely upon the accuracy and completeness of all information received from the Company and its directors, officers, employees, agents, independent accountants and counsel. The Company recognizes and confirms that Piper Sandler (a) will use and rely on and assume the accuracy and completeness of the Information in performing the services contemplated by this agreement without having independently verified or analyzed the accuracy or completeness of the same, and (b) does not assume responsibility or liability for the accuracy or completeness of the Information or to conduct any independent verification or any appraisal or physical inspection of properties or assets. The

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Company acknowledges and agrees that Piper Sandler will rely upon Company management as to the reasonableness and achievability of any financial or operating forecasts and projects provided to Piper Sandler or which Piper Sandler is directed to use, and Piper Sandler will assume, at the Company's direction, that all financial forecasts and projections have been reasonably prepared by Company management on a basis reflecting the best then currently available estimates and judgments of management as to the expected future financial performance of the Company, and that such forecasts and projections will be realized in the amounts and in the time periods currently estimated.

To help the United States government fight the funding of terrorism and money laundering activities, the federal law of the United States requires all financial institutions to obtain, verify and record information that identifies each person with whom they do business. This means Piper Sandler may ask the Company and its significant shareholders or equityholders, if any, for certain identifying information and documents, including a government-issued identification number (e.g., a U.S. taxpayer identification number) and copies of documents containing personal identifying information, and such other information or documents that Piper Sandler and its counsel consider appropriate to verify the bona fide existence of the Company (e.g., certified articles of incorporation, a government-issued business license, a partnership agreement or a trust instrument) and the identities of its significant shareholders or equityholders, if any.

<u>BLUE SKY MATTERS</u> 

Piper Sandler and the Company agree that the Company's counsel shall serve as counsel with respect to blue sky matters in connection with the Offering. The Company will cause such counsel to prepare a Blue Sky Memorandum related to the subscription offering and, if applicable, the syndicated offering, including Piper Sandler's participation therein, and shall furnish Piper Sandler a copy thereof addressed to Piper Sandler or upon which such counsel shall state Piper Sandler may rely.

<u>CONFIDENTIALITY</u> 

Except as contemplated in connection with the performance of its services under this agreement, as authorized by the Company or as required by law, regulation, legal process or order of any court or governmental or regulatory authority, Piper Sandler agrees that it will treat as confidential all material, non-public information relating to the Company obtained in connection with its engagement hereunder (the "Confidential Information"); *provided, however,* that Piper Sandler may disclose such information to its affiliates, partners, directors, employees, agents and advisors who are assisting or advising Piper Sandler in performing its services hereunder and who have been directed to comply with the terms and conditions of this paragraph. As used in this paragraph, the term "Confidential Information" shall not include information which (a) is or becomes generally available to the public other than as a result of a disclosure by Piper Sandler in breach of the confidentiality obligations contained herein, (b) was available to Piper Sandler on a non-confidential basis prior to its disclosure to Piper Sandler by the Company, (c) becomes available to Piper Sandler on a non-confidential basis from a person other than the Company who is not otherwise known to Piper Sandler to be bound not to disclose such information pursuant to a contractual, legal or fiduciary obligation owed to the Company, or (d) is independently developed by Piper Sandler without use of or reference to the Confidential Information disclosed hereunder.

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The Company hereby acknowledges and agrees that the financial models and presentations used by Piper Sandler in performing its services hereunder have been developed by and are proprietary to Piper Sandler and are protected under applicable copyright laws. The Company agrees that it will not reproduce or distribute all or any portion of such models or presentations without the prior written consent of Piper Sandler.

<u>LIMITATIONS</u> 

The Company acknowledges that all opinions and advice (written or oral) given by Piper Sandler to the Company in connection with Piper Sandler's engagement are intended solely of the benefit and use of the Company for the purposes of its evaluation of the proposed Offering. Unless otherwise expressly stated in an opinion letter issued by Piper Sandler or otherwise expressly agreed, no one other than the Company is authorized to rely upon this engagement of Piper Sandler or any statements or conduct by Piper Sandler. The Company agrees that any such opinion or advice, as well as his agreement (including any of the terms hereof) shall not be used, reproduced, disseminated, quoted or referred to at any time, in any manner, or for any purposes, nor shall any public reference to Piper Sandler be made by the Company or any of its representatives, without the prior written consent of Piper Sandler.

It is expressly understood and agreed that Piper Sandler is not undertaking to provide any advice relating to legal, regulatory, accounting or tax matters. In furtherance thereof, the Company acknowledges and agrees that (a) its and its affiliates have relied and will continue to rely on the advice of its own legal, tax and accounting advisors for all matters relating to the Offering and all other matters, and (b) neither it, nor any of its affiliates, has received, or has relied upon, the advice of Piper Sandler or any of its affiliates regarding matters of law, regulation, taxation or accounting.

The Company acknowledges and agrees that Piper Sandler has been retained to act solely as financial advisor to the Company and not as an advisor to or agent of any other person, and the Company's engagement of Piper Sandler is not intended to confer rights upon any person not a party to this agreement (including shareholders, employees or creditors of the Company) as against Piper Sandler or its affiliates, or their respective directors, officers, employees or agents. In such capacity, Piper Sandler shall act as an independent contractor, and any duties arising out of its engagement shall be owed solely to the Company. It is understood that Piper Sandler's responsibility to the Company is solely contractual in nature and Piper Sandler does not owe the Company, or any other party, any fiduciary duty as a result of this agreement.

The Company acknowledges that Piper Sandler is a securities firm engaged in securities trading and brokerage activities and providing investment banking and financial advisory services. In the ordinary course of business, Piper Sandler and its affiliates may at any time hold long or short positions, and may trade or otherwise effect transactions, for its own account or the accounts

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of customers, in the Company's debt or equity securities, or the debt or equity securities of the Company's affiliates or other entities that may be involved in the transactions contemplated by this agreement. In addition, Piper Sandler and its affiliates may from time to time perform various investment banking and financial advisory services for other clients and customers who may have conflicting interests with respect to the Company. The Company acknowledges that Piper Sandler and its affiliates have no obligation to use in connection with this engagement or to furnish to the Company confidential information obtained from other companies.

<u>REPRESENTATIONS</u> 

Each of the Parent and the Bank represents and warrants that it has all requisite power and authority to enter into and carry out the terms and provisions of this agreement, the execution, delivery and performance of this agreement does not breach or conflict with any agreement, document or instrument to which it is a party or bound and this agreement has been duly authorized, executed and delivered by it.

<u>INDEMNIFICATION AND CONTRIBUTION</u> 

Annex A is hereby incorporated into this agreement by reference and made part of this agreement.

<u>DEFINITIVE AGREEMENT</u> 

Piper Sandler and the Company agree that (a) except as set forth in clause (b) below, the foregoing represents the general intention of the Company and Piper Sandler with respect to the services to be provided by Piper Sandler in connection with the Offering, which will serve as a basis for Piper Sandler commencing activities, and (b) the only legal and binding obligations of the Company and Piper Sandler with respect to the Offering (such obligations to survive any termination of this agreement) shall be (1) the Company's obligation to reimburse costs and expenses pursuant to the section captioned "Costs and Expenses," (2) those set forth under the captions "Representations" and "Indemnification and Contribution," and (3) as set forth in a duly negotiated and executed definitive Agency Agreement to be entered into prior to the commencement of the subscription offering. Such Agency Agreement shall be in form and content satisfactory to Piper Sandler and the Company and their respective counsel and shall contain standard indemnification and contribution provisions consistent herewith.

Piper Sandler's execution of such Agency Agreement shall also be subject to (i) Piper Sandler's satisfaction with its investigation of the Company's business, financial condition and results of operations, (ii) preparation of Offering materials that are satisfactory to Piper Sandler and its counsel, (iii) compliance with all relevant legal and regulatory requirements to the reasonable satisfaction of Piper Sandler and its counsel, (iv) Piper Sandler's agreement that the price established by the independent appraiser is reasonable, and (v) market conditions at the time of the proposed Offering. Each of the Company and Piper Sandler may terminate this agreement if such Agency Agreement is not entered into prior to June 30, 2027.

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<u>MISCELLANEOUS</u> 

This agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and can be altered only by written consent signed by the parties. This agreement shall be construed and enforced in accordance with the laws of the State of New York, without regard to the conflicts of laws principles thereof.

[*Signature page to follow.*] 

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Please confirm that the foregoing correctly sets forth our agreement by signing and returning to Piper Sandler the duplicate copy of this letter enclosed herewith.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **PIPER SANDLER & CO.** | **PIPER SANDLER & CO.** |
| By: | /s/ Derek Szot |
|  | Derek Szot |
|  | Managing Director |

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Accepted and agreed to as of

the date first above written:

![LOGO](g122170dsp008.jpg)

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**<u>ANNEX A</u>**

Each of the Parent and the Bank agrees that it shall, jointly and severally, indemnify and hold Piper Sandler and its affiliates and their respective partners, directors, officers, employees, agents and controlling persons within the meaning of Section 15 of the Securities Act of 1933 or Section 20 of the Securities Exchange Act of 1934 (Piper Sandler and each such person being an "Indemnified Party") harmless from and against any and all losses, claims, damages and liabilities, joint or several, to which such Indemnified Party may become subject under applicable federal or state law, or otherwise, (i) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the offering documents, including documents described or incorporated by reference therein, or in any other written or oral communication provided by or on behalf of the Company to any actual or prospective purchaser of the Common Stock or arising out of or based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, (ii) arising out of or based in whole or in part on any inaccuracy in the representations or warranties of the Company contained in any agency agreement, or any failure of the Company to perform its obligations thereunder or (iii) arising in any manner out of or in connection with Piper Sandler's engagement under, or any matter referred to in, this agreement, and will reimburse any Indemnified Party for all expenses (including reasonable legal fees and expenses) as they are incurred, including expenses incurred in connection with the investigation of, preparation for or defense of any pending or threatened claim or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party; *provided, however,* that the Company shall only be obligated to pay for one separate counsel (in addition to any required local counsel) in any one action or proceeding or group of related actions or proceedings for all Indemnified Parties collectively, *and provided, further,* that the Company will not be liable to Piper Sandler (a) to the extent that any such loss, claim, damage, liability or expense arises out of or is based upon any untrue statement of a material fact or the omission of a material fact required to be stated therein or necessary to make not misleading any statements contained in any final prospectus, or any amendment or supplement thereto, made in reliance on and in conformity with written information furnished to the Company by Piper Sandler expressly for use therein, or (b) under clause (iii) of this paragraph to the extent that it is finally judicially determined that any such loss, claim, damage, liability or expense is primarily attributable to the gross negligence, willful misconduct or bad faith of Piper Sandler. If the foregoing indemnification is unavailable for any reason other than for the reasons stated in subparagraph (a) or (b) above, the Company agrees to contribute to such losses, claims, damages, liabilities and expenses in the proportion that its financial interest in the Offering bears to that of Piper Sandler. Each of the Parent and Bank further agrees that neither Piper Sandler nor any of its controlling persons, affiliates, partners, directors, officers, employees or consultants shall have any liability to the Parent or the Bank or any person asserting claims on behalf of or in right of the Parent or the Bank for any losses, claims, damages, liabilities or expenses arising out of or relating to this agreement or the services to be rendered by Piper Sandler hereunder, unless it is finally judicially determined that such losses, claims, damages, liabilities or expenses resulted directly from the gross negligence, willful misconduct or bad faith of Piper Sandler.

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Notwithstanding any other provision set forth in this Annex A, in no event shall any payment made by the Company pursuant to this Annex A exceed the amount permissible under applicable federal law, including, without limitation, Section 18(k) of the Federal Deposit Insurance Act and the regulations promulgated thereunder.

Each of the Parent and Bank agrees that it shall notify Piper Sandler promptly of the assertion against it or any other person of any claim or the commencement of any action or proceeding relating to any transaction contemplated by this agreement. Each of the Parent and Bank agrees that it will not, without Piper Sandler's prior written consent, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any claim, action or proceeding in respect of which indemnity may be sought hereunder, whether or not any Indemnified Party is an actual or potential party thereto, unless such settlement, compromise, consent or termination (i) includes an explicit and unconditional release of each Indemnified Party from any liabilities arising out of such claim, action or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party. If the Parent or Bank enters into any agreement or arrangement with respect to, or effects, any proposed sale, exchange, dividend or other distribution or liquidation of all or substantially all of its assets in one or a series of transactions, each of the Parent and Bank shall provide for the assumption of its obligations under this section by the purchaser or transferee of such assets or another party reasonably satisfactory to Piper Sandler.

Piper Sandler agrees that it will not, without the prior written consent of the Company, which consent may not be unreasonably withheld, conditioned or delayed, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder; *provided however that,* notwithstanding the foregoing, if at any time Piper Sandler shall have requested the Company to reimburse Piper Sandler for fees and expenses payable in accordance with the Company's obligations under this agreement, the Company agrees that it shall be liable for any settlement or compromise or consent to the entry of judgment by Piper Sandler of any claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder, which settlement, compromise or consent to entry of judgment is effected without the Company's prior written consent if (i) such settlement, compromise or consent to entry of judgment is entered into more than 45 calendar days after receipt by the Company of the aforesaid request, (ii) the Company shall have received notice of the terms of such settlement, compromise or consent to entry of judgment at least 30 calendar days prior to such settlement, compromise or consent to entry of judgment being entered into and (iii) the Company shall not have reimbursed Piper Sandler in accordance with such request prior to the date of such settlement, compromise or consent to entry of judgment.

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![LOGO](g122170page001.jpg)

February 18, 2026

Board of Trustees

Narragansett Financial Corporation

Board of Directors

BayCoast Bank

330 Swansea Mall Drive

Swansea, MA 02777

Attention: Mr. Nicholas M. Christ

<u>President and Chief Executive Officer</u>

Ladies and Gentlemen:

Reference is made to Narragansett Financial Corporation (the "Parent") and BayCoast Bank (the "Bank" and together with the Parent, collectively, the "Company"). Piper Sandler & Co. ("Piper Sandler") understands that the boards of trustees/directors of the Parent and the Bank (collectively, the "Boards") have tentatively determined that the Parent shall adopt a Plan of Stock Issuance (the "Plan") that will provide for the minority stock issuance by the Parent of shares of common stock (the "Common Stock") to be offered and sold to the Bank's eligible depositors and certain tax-qualified employee benefit plans of the Company in a subscription offering and, under certain circumstances, in a community or syndicated offering (collectively, the "Offering"). Piper Sandler is pleased to act as records management agent ("Records Management Agent") for the Company in connection with the offer and sale of shares of the Common Stock in the Offering. This letter agreement (this "agreement") is to confirm the terms and conditions of Piper Sandler's engagement as Records Management Agent.

<u>SERVICES AND FEES</u> 

In its role as Records Management Agent, Piper Sandler anticipates that its services will include the services outlined below, each as may be necessary and as the Company may reasonably request:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Consolidation of Deposit Accounts for Offering

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Design and Preparation of Stock Order Forms for the Offering

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Organization and Supervision of the Stock Information Center

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. Subscription Services

Each of these services is further described in <u>Appendix A</u> to this agreement.

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For its services hereunder, the Company agrees to pay Piper Sandler a fee of $75,000. This fee is based upon the requirements of current regulations and the Plan as currently contemplated. The Company will inform Piper Sandler within a reasonable period of time of any changes in the Plan or regulations that require changes in Piper Sandler's services.

All fees under this agreement shall be due and payable in cash, as follows: (a) $10,000 due and payable upon execution of this agreement; and (b) the balance due and payable on the day of closing of the Offering.

<u>COSTS AND EXPENSES</u> 

It is understood that all expenses associated with the operation of the Stock Information Center will be borne by the Company. In addition to any fees that may be payable to Piper Sandler hereunder, the Company also agrees to reimburse Piper Sandler, upon request made from time to time, for its reasonable out-of-pocket expenses incurred in connection with its engagement hereunder, regardless of whether the Offering is consummated, including, without limitation, travel, lodging, food, telephone, postage, communications and other similar expenses; *provided, however,* that such expenses shall not exceed $35,000 without the Company's prior approval; *provided, further,* that Piper Sandler shall document such expenses to the reasonable satisfaction of the Company. The provisions of this paragraph are not intended to apply to or in any way impair the provisions contained under the heading "Indemnification and Contribution" of this letter.

<u>RELIANCE ON INFORMATION PROVIDED; CONFIDENTIALITY</u> 

The Company will furnish Piper Sandler with such information as Piper Sandler reasonably believes appropriate to its assignment (all such information so furnished being the "Records"). The Company recognizes and confirms that Piper Sandler (a) will use and rely primarily on the Records without having independently verified the same, and (b) does not assume responsibility for the accuracy or completeness of the Records.

To help the United States government fight the funding of terrorism and money laundering activities, the federal law of the United States requires all financial institutions to obtain, verify and record information that identifies each person with whom they do business. This means Piper Sandler may ask the Company and its significant shareholders or equityholders, if any, for certain identifying information and documents, including a government-issued identification number (e.g., a U.S. taxpayer identification number) and copies of documents containing personal identifying information, and such other information or documents that Piper Sandler and its counsel consider appropriate to verify the bona fide existence of the Company (e.g., certified articles of incorporation, a government-issued business license, a partnership agreement or a trust instrument) and the identities of its significant shareholders or equityholders, if any.

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Except as contemplated in connection with the performance of its services under this agreement, as authorized by the Company or as required by law, regulation, legal process or order of any court or governmental or regulatory authority, Piper Sandler agrees that it will treat as confidential all material, non-public information relating to the Company obtained in connection with its engagement hereunder (the "Confidential Information"); *provided, however,* that Piper Sandler may disclose such information to its affiliates, partners, directors, employees, agents and advisors who are assisting or advising Piper Sandler in performing its services hereunder and who have been directed to comply with the terms and conditions of this paragraph. As used in this paragraph, the term "Confidential Information" shall not include information which (a) is or becomes generally available to the public other than as a result of a disclosure by Piper Sandler in breach of the confidentiality obligations contained herein, (b) was available to Piper Sandler on a non-confidential basis prior to its disclosure to Piper Sandler by the Company, (c) becomes available to Piper Sandler on a non-confidential basis from a person other than the Company who is not otherwise known to Piper Sandler to be bound not to disclose such information pursuant to a contractual, legal or fiduciary obligation owed to the Company, or (d) is independently developed by Piper Sandler without use of or reference to the Confidential Information disclosed hereunder.

<u>LIMITATIONS</u> 

Piper Sandler, as Records Management Agent hereunder, (a) shall have no duties or obligations other than those specifically set forth herein; (b) will be regarded as making no representations and having no responsibilities as to the validity, sufficiency, value or genuineness of any order form or any stock certificates or the shares represented thereby, and will not be required to and will make no representations as to the validity, value or genuineness of the offer; (c) shall not be liable to any person, firm or corporation including the Company by reason of any error of judgment or for any act done by it in good faith, or for any mistake of law or fact in connection with this agreement and the performance hereof unless caused by or arising out of its own willful misconduct, bad faith or gross negligence, as determined in a final judgment by a court of competent jurisdiction; (d) will not be obliged to take any legal action hereunder which might in its reasonable judgment involve any expense or liability, unless it shall have been furnished with reasonable indemnity satisfactory to it; and (e) may rely on and shall be protected in acting in reliance upon any certificate, instrument, opinion, notice, letter, telex, telegram, or other document or security delivered to it and in good faith believed by it to be genuine and to have been signed by the proper party or parties. Anything in this agreement to the contrary notwithstanding, in no event shall Piper Sandler be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if Piper Sandler has been advised of the likelihood of such loss or damage and regardless of the form of action.

<u>INDEMNIFICATION AND CONTRIBUTION</u> 

Annex A is hereby incorporated into this agreement by reference and made part of this agreement.

<u>REPRESENTATIONS</u> 

Each of the Parent and Bank represents and warrants that it has all requisite power and authority to enter into and carry out the terms and provisions of this agreement, the execution, delivery and performance of this agreement does not breach or conflict with any agreement, document or instrument to which it is a party or bound and this agreement has been duly authorized, executed and delivered by it.

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<u>MISCELLANEOUS</u> 

The following addresses shall be sufficient for written notices to each other:

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| |
|:---|
| If to the Company: |
| If to Piper Sandler: Piper Sandler & Co.<br> 1251 Avenue of the Americas, 6<sup>th</sup> Floor<br> New York, New York 10020<br> Attention: General Counsel |

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The agreement and the appendix hereto constitute the entire agreement between the parties with respect to the subject matter hereof and can be altered only by written consent signed by the parties. This agreement is governed by the laws of the State of New York.

It is understood that the provisions relating to the payment of fees and expenses and those contained under the captions "Limitations", "Indemnification and Contribution" and "Representations" will survive any termination of this agreement.

[*Signature page to follow.*] 

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Please confirm that the foregoing correctly sets forth our agreement by signing and returning to Piper Sandler the duplicate copy of this letter enclosed herewith.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **PIPER SANDLER & CO.** | **PIPER SANDLER & CO.** |
| By: | /s/ Derek Szot |
|  | Derek Szot |
|  | Managing Director |

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Accepted and agreed to as of

the date first above written:

![LOGO](g122170dsp0015.jpg)

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**<u>ANNEX A</u>**

Each of the Parent and Bank agrees that it shall, jointly and severally, indemnify and hold Piper Sandler and its affiliates and their respective partners, directors, officers, employees, agents and controlling persons within the meaning of Section 15 of the Securities Act of 1933 or Section 20 of the Securities Exchange Act of 1934 (Piper Sandler and each such person being an "Indemnified Party") harmless from and against any and all losses, claims, damages and liabilities, joint or several, to which such Indemnified Party may become subject under applicable federal or state law, or otherwise related to or arising out of Piper Sandler's engagement under, or any matter referred to in, this agreement, and will reimburse any Indemnified Party for all expenses (including reasonable legal fees and expenses) as they are incurred, including expenses incurred in connection with the investigation of, preparation for or defense of any pending or threatened claim or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party; *provided, however,* that the Company shall only be obligated to pay for one separate counsel (in addition to any required local counsel) in any one action or proceeding or group of related actions or proceedings for all Indemnified Parties collectively, *and provided, further,* that the Company will not be liable to Piper Sandler under this paragraph to the extent that it is finally judicially determined that any such loss, claim, damage, liability or expense is primarily attributable to the gross negligence, willful misconduct or bad faith of Piper Sandler. If the foregoing indemnification is unavailable for any reason other than for the reason stated above, the Company agrees to contribute to such losses, claims, damages, liabilities and expenses in the proportion that its financial interest in the Offering bears to that of Piper Sandler. Each of the Parent and Bank further agrees that neither Piper Sandler nor any of its controlling persons, affiliates, partners, directors, officers, employees or consultants shall have any liability to the Company or any person asserting claims on behalf of or in right of the Company for any losses, claims, damages, liabilities or expenses arising out of or relating to this agreement or the services to be rendered by Piper Sandler hereunder, unless it is finally judicially determined that such losses, claims, damages, liabilities or expenses resulted directly from the gross negligence, willful misconduct or bad faith of Piper Sandler.

Notwithstanding any other provision set forth in this Annex A, in no event shall any payment made by the Company pursuant to this Annex A exceed the amount permissible under applicable federal law, including, without limitation, Section 18(k) of the Federal Deposit Insurance Act and the regulations promulgated thereunder.

Each of the Parent and Bank agrees that it shall notify Piper Sandler promptly of the assertion against it or any other person of any claim or the commencement of any action or proceeding relating to any transaction contemplated by this agreement. Each of the Parent and Bank agrees that it will not, without Piper Sandler's prior written consent, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any claim, action or proceeding in respect of which indemnity may be sought hereunder, whether or not any Indemnified Party is an actual or potential party thereto, unless such settlement, compromise, consent or termination (i) includes an explicit and unconditional release of each Indemnified Party from any liabilities arising out of such claim, action or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party. If the Parent or Bank enters into any agreement or arrangement with respect to, or effects, any proposed sale, exchange, dividend or other distribution or liquidation of all or substantially all of its assets in one or a series of transactions, each of the Parent and Bank shall provide for the assumption of its obligations under this section by the purchaser or transferee of such assets or another party reasonably satisfactory to Piper Sandler.

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Piper Sandler agrees that it will not, without the prior written consent of the Company, which consent may not be unreasonably withheld, conditioned or delayed, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder; provided however that, notwithstanding the foregoing, if at any time Piper Sandler shall have requested the Company to reimburse Piper Sandler for fees and expenses payable in accordance with the Company's obligations under this agreement, the Company agrees that it shall be liable for any settlement or compromise or consent to the entry of judgment by Piper Sandler of any claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder, which settlement, compromise or consent to entry of judgment is effected without the Company's prior written consent if (i) such settlement, compromise or consent to entry of judgment is entered into more than 45 calendar days after receipt by the Company of the aforesaid request, (ii) the Company shall have received notice of the terms of such settlement, compromise or consent to entry of judgment at least 30 calendar days prior to such settlement, compromise or consent to entry of judgment being entered into and (iii) the Company shall not have reimbursed Piper Sandler in accordance with such request prior to the date of such settlement, compromise or consent to entry of judgment.

A - 1

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**<u>APPENDIX A</u>**

<u>OUTLINE OF RECORDS MANAGEMENT AGENT SERVICES</u> 

I. Consolidation of Deposit Accounts for Voting and Offering

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Consolidate files in accordance with regulatory guidelines and create central file.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Our EDP format will be provided to your IT representatives.

II. Design and Preparation of Stock Order Forms for the Offering

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Assist in designing stock order forms for ordering stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Prepare deposit account holder data for stock order forms.

III. Organization and Supervision of Stock Information Center

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Advising on the physical organization of the Stock Information Center, including materials requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Assist in the training of all Bank personnel and temporary employees who will be staffing the Stock Information
Center.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Establish reporting procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. On-site supervision of the Stock Information Center during the offering
period.

IV. Subscription Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Produce list of depositors by state (Blue Sky report).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Production of subscription rights and research books.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Stock order form processing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Acknowledgment letter to confirm receipt of stock order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Daily reports and analysis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Proration calculation and share allocation in the event of an oversubscription.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Produce charter shareholder list.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Interface with Transfer Agent for DRS Statement issuance to shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Refund and interest calculations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Confirmation letter to confirm purchase of stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Notification of full/partial rejection of orders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Production of 1099/Debit tape.

A - 2

## Ex-2

**Exhibit 2** 

**BAYCOAST BANK** 

**NARRAGANSETT FINANCIAL CORPORATION** 

**PLAN OF HOLDING COMPANY REORGANIZATION** 

**AND** 

**PLAN OF STOCK ISSUANCE** 

**DATED JUNE 8, 2026** 

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**BAYCOAST BANK** 

**NARRAGANSETT FINANCIAL CORPORATION** 

**PLAN OF HOLDING COMPANY REORGANIZATION** 

**AND** 

**PLAN OF STOCK ISSUANCE** 

**ARTICLE I.** 

**INTRODUCTION - BUSINESS PURPOSE** 

The Board of Directors of BayCoast Bank (the "Bank") and the Board of Trustees of Narragansett Financial Corporation (the "MHC") have adopted this Plan of Holding Company Reorganization and Plan of Stock Issuance (the "Plan") pursuant to which the MHC and the Bank propose to form a mid-tier stock holding company pursuant to the laws of the Commonwealth of Massachusetts, the regulations of the Commissioner, the regulations of the FRB and other applicable federal laws and regulations. Following the Reorganization, the MHC and the Bank will be in a structure comprised of the following three entities: (i) the Bank, a Massachusetts-chartered stock savings bank; (ii) a Maryland mid-tier stock holding company (the "Mid-Tier Holding Company"); and (iii) the MHC, a Massachusetts-chartered mutual holding company. The Mid-Tier Holding Company will be a majority-owned subsidiary of the MHC for as long as the MHC remains in existence, and the Bank will be a wholly-owned subsidiary of the Mid-Tier Holding Company. Capitalized terms used but not defined in this Article I shall have the respective meanings set forth in Article II hereof.

The Plan further provides for the minority stock issuance by the Mid-Tier Holding Company, whereby the Mid-Tier Holding Company will offer for sale up to 49.0% of its Common Stock upon the terms and conditions set forth herein to Eligible Account Holders, Supplemental Eligible Account Holders, the Employee Plans established by the Bank or the Mid-Tier Holding Company, and Employees, Officers, directors, trustees and Corporators of the Bank, the Mid-Tier Holding Company and the MHC according to the respective priorities set forth in this Plan. Any shares not subscribed for by the foregoing classes of Persons may be offered for sale to certain members of the public directly by the Mid-Tier Holding Company through a Direct Community Offering, a Syndicated Community Offering and/or through a Firm Commitment Underwritten Offering. Upon completion of the Reorganization, the MHC will continue to own at least a majority of the outstanding common stock of the Mid-Tier Holding Company. Upon completion of the Reorganization, Eligible Account Holders and Supplemental Eligible Account Holders will be granted interests in the liquidation account to be established by the Mid-Tier Holding Company pursuant to Section 10.7 hereof.

In furtherance of the Bank's commitment to its communities, this Plan provides for the contribution of Common Stock and/or cash, subject to regulatory limitations, to the Foundation as part of the Reorganization. The funding to the Foundation will complement the Bank's community reinvestment activities in a manner that will allow the Bank's local communities to share in the growth and profitability of the Mid-Tier Holding Company and the Bank over the long term.

The Plan is subject to the approval of various regulatory agencies. The Plan must also be approved by a majority of the total votes of the Corporators and a majority of the Independent Corporators (who shall constitute not less than 60% of all Corporators) eligible to be cast at the annual meeting or at a special meeting called for such purpose. By approving this Plan, the Corporators will also be approving all steps necessary or incidental to effect the Reorganization and the Stock Issuance, and shall have approved and adopted the Articles of Incorporation and Bylaws of the Mid-Tier Holding Company. In addition, the contribution to the Foundation must be approved by a majority of the total votes of the Corporators and a majority of the Independent Corporators (who shall constitute not less than 60% of all Corporators) eligible to be cast at the annual meeting or at a special meeting called for such purpose.

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The primary purposes of the Reorganization and Stock Issuance are to: (1) facilitate the Bank's ability to repay subordinated debt currently held by the MHC; (2) enhance our capital base; (3) offer our depositors, Employees, Officers, directors, trustees and Corporators an equity ownership interest in the Bank; (4) support our local communities through the establishment and funding of a charitable foundation; and (5) increase our flexibility to structure and finance the expansion of our operations, including potential acquisitions of other financial institutions or branches thereof, or establishing *de novo* branches. In addition, the Board of Directors and senior management believe that the Stock Issuance will be beneficial to the population within the Bank's market areas. The Offering will provide local customers and other residents with an opportunity to become indirect equity owners of the Bank, and thereby participate in possible stock price appreciation, which is consistent with the objective of being locally-owned financial institutions serving local financial needs. The Board of Directors and senior management believe that, through local stock ownership, current customers and non-customers who purchase Common Stock will seek to enhance the financial success of the Bank by providing their banking business and increasing referrals to the Bank.

The mutual holding company structure also will allow the MHC or the Mid-Tier Holding Company to borrow funds, on a secured and unsecured basis and/or to issue debt or capital stock to the public or in a private placement. The proceeds of any such borrowings, debt issuance or capital stock issuance may be contributed to the Bank as core capital for regulatory capital purposes. The Bank has not made a determination to borrow funds or issue debt or preferred stock at the present time.

**ARTICLE II.** 

**DEFINITIONS** 

As used in this Plan, the terms set forth below have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1. ACTING IN CONCERT.** The term "ACTING IN CONCERT" means Persons seeking to combine or pool their voting or other interests in the securities of an issuer for a common purpose, pursuant to any contract, understanding, relationship, agreement or other arrangement, whether written or otherwise. When Persons act together for such purpose, their group is deemed to have acquired their stock. The determination of whether a group is Acting in Concert shall be made solely by the Board of Directors of the Bank or the Board of Directors of the Mid-Tier Holding Company (such Boards of Directors, being referred to herein as the "Board or Board(s)"), or the Officers as delegated by either such board and may be based on any evidence upon which such Board(s) or such delegate(s) chooses to rely, including, without limitation, joint account relationships or that such Persons have filed joint Schedules 13D with the SEC with respect to other companies; *provided*, however, that the determination of whether a group is Acting in Concert remains subject to review by the Division. Persons having the same address, whether or not related, will be deemed to be Acting in Concert unless otherwise determined by the Board(s) or such delegate(s). Trustees of the MHC, directors of the Mid-Tier Holding Company or directors of the Bank shall not be deemed to be Acting in Concert solely as a result of their membership on any such board or boards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2. AFFILIATE.** An "AFFILIATE" of, or a Person "AFFILIATED" with, a specified Person, is a Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the Person specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3. APPLICATION.** The application, including a copy of this Plan, submitted by the Bank and/or Mid-Tier Holding Company to the Commissioner for approval of the Reorganization and Stock Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4. ASSOCIATE.** The term "ASSOCIATE," when used to indicate a relationship with any Person, means: (i) any corporation or organization (other than the Bank, the Mid-Tier Holding Company, the MHC or a majority-owned subsidiary of any thereof) of which such Person is an Officer or partner or is, directly or indirectly, the beneficial owner of 10% or more of any class of equity securities; (ii) any trust or other estate in which such Person has a substantial beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity; (iii) any relative or spouse of such Person or any relative of such spouse, who has the same home as such Person or who is a trustee, director or Officer of the Bank, the Mid-Tier Holding Company or the MHC and (iv) any Person Acting in Concert with any of the Persons or entities specified in clauses (i) through (iii), above; provided, however, that (A) any Tax-Qualified Employee Plan shall not be deemed to be an Associate of any director or Officer of the Bank for the purposes of Section 9.4 hereof, and (B) any Tax-Qualified or Nontax-Qualified Employee Plan shall not be deemed to be an Associate of any trustee, director or Officer of the MHC, the Mid-Tier Holding Company or the Bank for any other purpose to the extent provided in this Plan. When used to refer to a

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Person other than a director or trustee or Officer of the Bank, the Mid-Tier Holding Company or the MHC, the Mid-Tier Holding Company may determine in its sole discretion the Persons that are Associates of other Persons; provided, however, that the determination of whether Persons are Associates remains subject to review by the Division. Trustees of the MHC and directors of the Bank and Mid-Tier Holding Company shall not be deemed to be Associates solely as a result of their membership on such board or boards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5. BANK.** BayCoast Bank, a Massachusetts-chartered stock savings bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6. BANK REGULATORS.** The Commissioner, the FDIC, the FRB and other bank regulatory agencies, if any, responsible for reviewing and approving this Plan and the Stock Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7. BENEFICIARY.** A Person who controls or directs the investment authority with respect to an Eligible Deposit Account or subaccount maintained by a tax-qualified plan as trustee for or for the benefit of the Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8. BROKER-DEALER.** The term "Broker-Dealer" means any Person who engages directly or indirectly as agent, broker, or principal in the business of offering, buying, selling or otherwise dealing or trading in securities issued by another Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9. COMMISSIONER.** The Commissioner of Banks of the Commonwealth of Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10. COMMON STOCK.** The common stock, par value $0.01 per share, authorized to be issued from time to time by the Mid-Tier Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11. COMMUNITY OFFERING.** A Direct Community Offering and/or a Syndicated Community Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.12. CONTROL (INCLUDING THE TERMS "CONTROLLING," "CONTROLLED BY" AND "UNDER COMMON CONTROL WITH").** The possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13. CORPORATOR.** A Corporator of the MHC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.14. CORPORATOR MEETING.** The Annual or Special Meeting of Corporators called for the purpose of voting on this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.15. DEPOSIT ACCOUNT.** Any withdrawable deposit account offered by the Bank including, without limitation, savings accounts, NOW account deposits, certificates of deposit, demand deposits, Keogh Plans, SEPs and IRA accounts for which the Bank acts as custodian or trustee, and such other types of deposit accounts as may then have been authorized by Massachusetts or federal law and regulations, but not including repurchase agreements, savings bank life insurance policies or certain escrow accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.16. DIRECT COMMUNITY OFFERING.** The offering of Common Stock for sale directly by the Mid-Tier Holding Company as provided in Section 8.6 of this Plan, (i) with preference given to natural persons residing in the Local Community, including trusts of natural persons, and then (ii) to the public at large. The Direct Community Offering may be conducted simultaneously with the Subscription Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.17. DIVISION.** The Division of Banks of the Commonwealth of Massachusetts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.18. EFFECTIVE DATE.** The date upon which all necessary approvals have been obtained to consummate the Reorganization, and the transfer of the common stock of the Bank to the Mid-Tier Holding Company is completed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.19. ELIGIBLE ACCOUNT HOLDER.** Any Person holding a Qualifying Deposit on the Eligibility Record Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.20. ELIGIBILITY RECORD DATE.** May 31, 2025, the date for determining who qualifies as an Eligible Account Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.21. EMPLOYEE.** All natural persons who are employed by the Bank, the Mid-Tier Holding Company or the MHC. The term "Employee" does not include a trustee, director or Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.22. EMPLOYEE PLAN.** Any Tax-Qualified Employee Plan or Nontax-Qualified Employee Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.23. ESOP.** The employee stock ownership plan to be established by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.24. ESTIMATED VALUATION RANGE.** The dollar range of the proposed Offering, as determined by the Independent Appraiser before the Offering and as it may be amended from time to time thereafter. The Estimated Valuation Range may vary within 15% above or 15% below the midpoint of such range, with a possible adjustment by up to 15% above the Range Maximum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.25. EXCHANGE ACT.** The Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.26. FDIC.** The Federal Deposit Insurance Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.27. FIRM COMMITMENT UNDERWRITTEN OFFERING.** The offering of Common Stock, at the sole discretion of the Mid-Tier Holding Company, not subscribed for in the Subscription Offering and any Direct Community Offering, to members of the general public through one or more underwriters. A Firm Commitment Underwritten Offering would commence following the Subscription Offering and the Direct Community Offering, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.28. FOUNDATION.** Any new or existing charitable foundation qualified as an exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and that will receive Common Stock and/or cash in connection with the Stock Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.29. FRB.** The Board of Governors of the Federal Reserve System.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.30. FRB APPLICATION.** The application, including a copy of this Plan, submitted by the Mid-Tier Holding Company and MHC to the FRB for approval of the Reorganization and the Stock Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.31. GROUP MAXIMUM PURCHASE LIMIT.** The limitation on the purchase of shares of Common Stock established by Section 9.3, as such limit may be increased pursuant to said Section 9.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.32. INDEPENDENT APPRAISER.** The appraiser retained by the Mid-Tier Holding Company to prepare an appraisal of the pro forma market value of the Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.33. INDEPENDENT CORPORATOR**. A Corporator who is not an Employee, Officer or trustee of the MHC or an Employee, Officer, director or "significant borrower" of the Bank, as determined by the Commissioner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.34. INDEPENDENT VALUATION.** The estimated pro forma market value of the Common Stock as determined by the Independent Appraiser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.35. INDIVIDUAL MAXIMUM PURCHASE LIMIT.** The limitation on the purchase of shares of Common Stock established by Section 9.2, as such limit may be increased pursuant to said Section 9.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.36. INFORMATION STATEMENT.** The information statement required to be sent to the Corporators in connection with the Corporator Meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.37. INSIDER.** An Officer, trustee, director or Corporator of the Bank, the Mid-Tier Holding Company or the MHC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.38. LIQUIDATION ACCOUNT.** The liquidation account established pursuant to Section 10.7 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.39. LOCAL COMMUNITY.** The Massachusetts cities and towns of Acushnet, Attleboro, Avon, Bellingham, Berkley, Braintree, Brookline, Canton, Cohasset, Dartmouth, Dedham, Dighton, Dover, Easton, Fairhaven, Fall River, Foxborough, Franklin, Freetown, Holbrook, Mansfield, Medfield, Medway, Millis, Milton, Needham, New Bedford, Norfolk, North Attleboro, Norton, Norwood, Plainville, Quincy, Randolph, Raynham, Rehoboth, Seekonk, Sharon, Somerset, Stoughton, Swansea, Taunton, Walpole, Wellesley, Westport, Westwood, Weymouth and Wrentham, and the Rhode Island cities and towns of Barrington, Bristol, Burrillville, Central Falls, Cranston, Cumberland, East Providence, Foster, Glocester, Jamestown, Johnston, Lincoln, Little Compton, Middletown, Newport, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Scituate, Smithfield, Tiverton, Warren and Woonsocket.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.40. MARKETING AGENT.** The Broker-Dealer responsible for organizing and managing the Offering and assisting with the sale of the Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.41. MARKET MAKER.** A Broker-Dealer who, with respect to a particular security, (A) (x) regularly publishes bona fide competitive bids and offers quotations in a recognized inter-dealer quotation system or (y) furnishes bona fide competitive bids and offers quotations on request, and (B) is ready, willing and able to effect transactions in reasonable quantities at the Broker-Dealer's quoted prices with other brokers or dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.42. MHC.** Narragansett Financial Corporation, a Massachusetts-chartered mutual holding company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.43. MID-TIER HOLDING COMPANY.** The Maryland corporation that will serve as the direct holding company for the Bank and that will be formed in the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.44. NONTAX-QUALIFIED EMPLOYEE PLAN.** Any defined benefit plan or defined contribution plan of the Bank, the Mid-Tier Holding Company, the MHC or any of their respective Affiliates that is not qualified under Section 401 of the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.45. OFFERING.** The Subscription Offering, the Direct Community Offering and the Syndicated Community Offering and/or the Firm Commitment Underwritten Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.46. OFFICER.** The Chairman of the Board, the Chief Executive Officer, the President, any officer of the level of vice president or above, the Secretary, Clerk and the Treasurer of the Bank, the Mid-Tier Holding Company or MHC, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.47. PERSON.** An individual, a corporation, a partnership, an association, a joint-stock company, a trust, any unincorporated organization or similar association, a government or political subdivision or a group Acting in Concert.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.48. PLAN.** This Plan of Holding Company Reorganization and Plan of Stock Issuance, as it exists on the date hereof and as it may hereafter be amended in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.49. PLAN PARTICIPANT.** Any individual participant in a Tax-Qualified Employee Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.50. QUALIFYING DEPOSIT.** The aggregate balances of all Deposit Accounts of an Eligible Account Holder as of the close of business on the Eligibility Record Date or of a Supplemental Eligible Account Holder as of the close of business on the Supplemental Eligibility Record Date, as the case may be, provided that, in either case, such aggregate balance is not less than $50.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.51. RANGE MAXIMUM.** The valuation which is 15% above the midpoint of the Estimated Valuation Range.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.52. RANGE MINIMUM.** The valuation which is 15% below the midpoint of the Estimated Valuation Range.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.53. REORGANIZATION.** The reorganization of the Bank as a subsidiary of the Mid-Tier Holding Company pursuant to this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.54. REGULATIONS.** The regulations of the Division, the FDIC, SEC and the FRB regarding mutual holding company reorganizations and issuances of stock by subsidiaries of mutual holding companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.55. SEC.** The Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.56. STOCKHOLDER.** Any holder of stock of the Mid-Tier Holding Company following the Stock Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.57. STOCK ISSUANCE.** The sale of shares of Common Stock in the Offering, the issuance of shares of Common Stock to the MHC and the issuance of shares of Common Stock to the Foundation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.58. SUBSCRIPTION OFFERING.** The offering of Common Stock to Persons holding non-transferrable subscription rights pursuant to this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.59. SUBSCRIPTION PRICE.** The price per share, as provided in Section 6.2 of this Plan, at which the Common Stock will be sold in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.60. SUBSIDIARY.** A company that is controlled by another company, either directly or indirectly through one or more intermediaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.61. SUPPLEMENTAL ELIGIBLE ACCOUNT HOLDER.** Any Person (other than Insiders and their respective Associates) holding a Qualifying Deposit on the Supplemental Eligibility Record Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.62. SUPPLEMENTAL ELIGIBILITY RECORD DATE.** If the Eligibility Record Date is more than 15 months prior to the date of the latest amendment to the Application filed prior to approval of the Application by the Commissioner, a Supplemental Eligibility Record Date shall be established for determining who qualifies as a Supplemental Eligible Account Holder. If required, the Supplemental Eligibility Record Date shall be June 1, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.63. SYNDICATED COMMUNITY OFFERING.** At the discretion of the Mid-Tier Holding Company, the offering of Common Stock through a syndicate of broker-dealers following or contemporaneously with the Direct Community Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.64. TAX-QUALIFIED EMPLOYEE PLAN.** Any defined benefit plan or defined contribution plan (including the ESOP, any stock bonus plan, profit-sharing plan, 401(k) plan or other plan) of the Bank, the Mid-Tier Holding Company, the MHC or any of their respective Affiliates, which, with its related trusts, meets the requirements to be qualified under Section 401 of the Internal Revenue Code of 1986, as amended.

**ARTICLE III.** 

**THE REORGANIZATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1. ORGANIZATION OF THE MID-TIER HOLDING COMPANY.** As part of the Reorganization, the MHC will establish the Mid-Tier Holding Company as a Maryland, or other state, corporation. The Reorganization will be effected as follows, or in any other manner approved by the Commissioner that is consistent with the purposes of this Plan and applicable laws and regulations:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The MHC will organize the Mid-Tier Holding Company as a separate
wholly-owned subsidiary of the MHC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The MHC will contribute all of the shares of common stock of the Bank to the Mid-Tier Holding Company, which will result in the Holding Company owning 100% of the common stock of the Bank. On the Effective Date, the Bank will be the wholly-owned subsidiary of the Mid-Tier Holding Company, and the Mid-Tier Holding Company will be a majority owned subsidiary of the MHC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Mid-Tier Holding Company will offer to sell up to 49.0% of its
Common Stock in the Offering.

The Mid-Tier Holding Company expects to retain up to 50% of the net proceeds of the Offering. The Bank may distribute additional capital to the Mid-Tier Holding Company following the Reorganization, subject to applicable FDIC regulations and/or Massachusetts law and regulations governing capital distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2. OPERATION OF THE MID-TIER HOLDING COMPANY.** The Mid-Tier Holding Company will be incorporated as a Maryland corporation and will be authorized to exercise any and all powers, rights and privileges, and will be subject to all limitations applicable to bank holding companies under applicable Federal and state laws and regulations. The initial members of the Board of Directors of the Mid-Tier Holding Company will be members of the existing Board of Directors of the Bank. Thereafter, the voting stockholders of the Mid-Tier Holding Company will elect annually approximately one-third of the Mid-Tier Holding Company's directors. Copies of the Articles of Incorporation and Bylaws of the Mid-Tier Holding Company are attached as **<u>Exhibits A and B</u>**, respectively, and are made part of this Plan.

The Mid-Tier Holding Company will have the power to issue shares of capital stock to persons other than the MHC of up to 49.0% in the aggregate of the total outstanding Common Stock of the Mid-Tier Holding Company, and the Mid-Tier Holding Company intends to offer for sale up to 49.0% of its Common Stock in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 LIQUIDATION RIGHTS.** Following the Reorganization, each depositor who had liquidation rights with respect to the MHC as of the date of the Reorganization will continue to have such rights with respect to the MHC for as long as such depositor remains a depositor of the Bank. In addition, all persons who become depositors of the Bank subsequent to the Reorganization also will have liquidation rights with respect to the MHC. In each case, no person who ceases to be the holder of a Deposit Account with the Bank shall have any liquidation rights with respect to the MHC. The MHC shall liquidate under M.G.L. c.167H, Section 2 upon the sale or acquisition of the Mid-Tier Holding Company or the Bank to a bank holding company or savings and loan holding company that is not a mutual holding company, or upon the sale of the Bank to a banking or thrift institution that is not a subsidiary of a mutual holding company.

**ARTICLE IV.** 

**GENERAL PROCEDURE FOR REORGANIZATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1. PRECONDITIONS TO REORGANIZATION.** The Reorganization is expressly conditioned upon prior occurrence of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.1.1*** Approval of this Plan by the affirmative vote of a majority of the total votes of the Corporators and a majority of the Independent Corporators (who shall constitute not less than 60% of all Corporators) eligible to be cast at the Corporator Meeting in accordance with the Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.1.2*** Approval by the Commissioner of the Application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.1.3*** Approval by the FRB of the FRB Application.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.1.4*** Approval by such other state and federal regulatory authorities as may be required to effect consummation of the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.1.5*** The receipt of private letter rulings from the Internal Revenue Service and the Massachusetts Department of Revenue or opinions of its counsel as to the federal income tax consequences of the Reorganization and of its tax accountants as to the Massachusetts income tax consequences of the Reorganization, in either case substantially to the effect that the Reorganization will not result in a taxable reorganization of the MHC, the Mid-Tier Holding Company or the Bank under the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2. SUBMISSION OF PLAN TO COMMISSIONER AND FRB.** The Plan will be submitted to the Commissioner as part of the Application and to the FRB as part of the FRB Application, together with a copy of the proposed Information Statement and all other material required by the Regulations, for approval or non-objection by the Commissioner and the FRB. Upon a determination by the Commissioner that the Application is complete, the Bank will publish and post public announcements and notices of the Application as required by the Commissioner and the Regulations. The Stock Issuance will be conducted in compliance with the forms required by the Commissioner and the FRB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3. MEETING OF CORPORATORS TO APPROVE THE PLAN.** Following approval of this Plan by the Commissioner, the Corporator Meeting shall be scheduled in accordance with the Bylaws of the MHC, and this Plan and any additional information required pursuant to the Regulations, will be submitted to the Corporators for their consideration and approval at the Corporator Meeting. The MHC will mail to its Corporators a copy of the Information Statement not less than seven (7) days before the Corporator Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4. THE MID-TIER HOLDING COMPANY.** The Board of Directors of the Mid-Tier Holding Company will take all necessary steps to complete the Stock Issuance, including the timely filing of all necessary applications to appropriate regulatory authorities and the filing of a registration statement to register the sale of the Common Stock with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5. OFFER AND SALE OF COMMON STOCK.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.5.1*** If the Corporators approve this Plan, and upon receipt of all required regulatory approvals, the Common Stock will be offered for sale in a Subscription Offering simultaneously to Eligible Account Holders, Supplemental Eligible Account Holders, any Tax-Qualified Employee Plan, and Employees, officers, directors, trustees and Corporators in the manner set forth in Article VIII hereof. The Subscription Offering period will run for no less than twenty (20) but no more than forty-five (45) days from the date of distribution of the Subscription Offering materials, unless extended by the Mid-Tier Holding Company with the approval of the Commissioner and the FRB, if required. If feasible, any Common Stock remaining after the Subscription Offering may then be sold to the general public through a Direct Community Offering as provided in Article VIII hereof, which may be held either subsequent to or concurrently with the Subscription Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.5.2*** If feasible, shares of Common Stock remaining unsold after completion of the Subscription Offering and any Direct Community Offering may, in the sole discretion of the Mid-Tier Holding Company, be sold in a Syndicated Community Offering (which may commence following or contemporaneously with the Direct Community Offering) or a Firm Commitment Underwritten Offering, or in any manner receiving the required approval of the Bank Regulators and other applicable regulatory agencies that will achieve a widespread distribution of the Common Stock. The issuance of Common Stock in the Subscription Offering and any Direct Community Offering will be consummated simultaneously on the date the sale of Common Stock is consummated in any Syndicated Community Offering or Firm Commitment Underwritten Offering, and only if the required minimum number of shares of Common Stock has been issued. The sale of all shares of Common Stock to be sold pursuant to this Plan must be completed within forty-five (45) days after the last day of the Subscription Offering period, subject to the extension of such forty-five (45) day period by the Mid-Tier Holding Company with the approval of the Commissioner and the FRB, if required. The Mid-Tier Holding Company may seek one or more extensions of such forty-five (45) day period if necessary to complete the sale of shares of Common Stock. If sufficient shares of Common Stock are sold in the Subscription Offering and any Direct Community Offering, there will be no Syndicated Community Offering or Firm Commitment Underwritten Offering and the Stock Issuance will be consummated upon completion of the Subscription Offering or the Direct Community Offering, as the case may be.

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**ARTICLE V.** 

**ESTABLISHMENT AND FUNDING OF CHARITABLE FOUNDATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1. ESTABLISHMENT OF AND CONTRIBUTION TO THE FOUNDATION.** As part of the Reorganization, the Mid-Tier Holding Company and the Bank intend to establish the Foundation, which will qualify as an exempt organization under Section 501(c)(3) of the Internal Revenue Code, and to donate to the Foundation cash and/or shares of Common Stock, (i) up to 2% of the number of shares of Common Stock to be outstanding upon completion of the Reorganization, and/or (ii) cash, provided that the total contribution to the Foundation does not exceed 8% of the gross proceeds from the sale of Common Stock in the Offering. The Foundation will distribute grants to assist charitable organizations or to fund projects within the Bank's local communities now and in the future of not less than 5% of the average fair value of the Foundation's assets each year, less certain expenses. In order to serve the purposes for which it was formed and maintain its Section 501(c)(3) qualification, the Foundation may sell, on an annual basis, a limited portion of the Common Stock contributed to it by the Mid-Tier Holding Company. The completion of the Reorganization and the Offering is not conditioned on approval of the contribution to the Foundation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2. PURPOSES OF THE FOUNDATION.** The Foundation will complement the Bank's community reinvestment activities and share with the Bank's communities a part of the Bank's financial success as locally headquartered, community-minded, financial services institutions. The funding of the Foundation furthers this goal as it enables the communities to share in the success of the Offering. The Foundation will be dedicated to the promotion of charitable purposes within the Bank's communities now and in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3. OPERATIONS OF THE FOUNDATION.** The Foundation will operate in accordance with any conditions imposed by the Bank Regulators. The board of directors of the Foundation will include persons who are Officers or directors of the Mid-Tier Holding Company or the Bank. For at least five (5) years after the organization of the Mid-Tier Holding Company, except for temporary periods resulting from death, resignation, removal or disqualification, at least (i) one director of the Foundation will be an independent director who is unaffiliated with the Bank or the Mid-Tier Holding Company, who is from the Bank's local community and who has experience with local community charitable organizations and grant making, and (ii) at least one director will be a person who is also a member of the Board of Directors of the Bank.

**ARTICLE VI.** 

**SHARES TO BE OFFERED** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1. COMMON STOCK.** The Common Stock to be issued in the Reorganization shall be fully paid and nonassessable. The total number of shares of Common Stock authorized under the Mid-Tier Holding Company's Charter will exceed the number of shares of Common Stock to be issued in the Reorganization. COMMON STOCK WILL NOT BE COVERED BY DEPOSIT INSURANCE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2. INDEPENDENT VALUATION, PURCHASE PRICE AND NUMBER OF SHARES.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.2.1 INDEPENDENT VALUATION.*** The Independent Appraiser shall be employed by the Bank to provide it with an Independent Valuation as required by the Regulations, which value shall be included in the prospectus (as described in Section 7.1 of this Plan) filed with the Commissioner, the FRB and the SEC. The directors of the Bank shall thoroughly review and analyze the methodology and fairness of the Independent Valuation. The Independent Valuation will be made by a written report to the Bank, contain the factors upon which the Independent Valuation was made and conform to procedures adopted by the Commissioner and the FRB. The Independent Valuation provided by the Independent Appraiser to the Bank before the commencement of the Subscription Offering will contain an Estimated Valuation Range of the Common Stock to be sold in the Offering, which range shall be based on the anticipated pro forma market value of the Common Stock. Such Estimated Valuation Range will establish a midpoint and will vary within 15% above (the "Range Maximum") to 15% below (the "Range Minimum") such midpoint. The Independent Appraiser shall also present to the Bank at the close of the Subscription Offering an updated valuation of the pro forma market value of the Common Stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.2.2 SUBSCRIPTION PRICE.*** All shares sold in the Offering will be sold at a uniform price per share (the "Subscription Price"), which is expected to be determined before the commencement of the Offering. In the absence of such a determination, the Subscription Price shall be $10.00 per share. If there is a Syndicated Community Offering or Firm Commitment Underwritten Offering, the price per share at which the Common Stock is sold in such Syndicated Community Offering or Firm Commitment Underwritten Offering shall be equal to the per share purchase price of the shares sold in the Subscription Offering and the Direct Community Offering. The aggregate value for all shares of Common Stock issued in the Offering valued for such purpose at the Subscription Price will be within the Estimated Valuation Range, as determined for such purpose by the Independent Appraiser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.2.3 NUMBER OF SHARES.*** The total number of shares (and a range thereof) of Common Stock to be issued and offered for sale will be determined by the Mid-Tier Holding Company immediately before the commencement of the Subscription Offering based on the Independent Valuation, the Estimated Valuation Range and the Subscription Price. The Independent Valuation, and such number of shares, shall be subject to adjustment thereafter if necessitated by market or financial conditions, with the approval of the Commissioner and the FRB, if necessary. The total number of shares may be increased by up to 15% above the Range Maximum if the Independent Valuation is increased subsequent to the commencement of the Subscription Offering to reflect changes in market and financial conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.2.4 INCREASE OR DECREASE IN NUMBER OF SHARES.*** The number of shares of Common Stock to be sold in the Offering may be increased or decreased by the Mid-Tier Holding Company, subject to the following provisions. If the aggregate purchase price of the number of shares of Common Stock ordered is below the minimum of the Estimated Valuation Range, or materially above the Range Maximum, resolicitation of purchasers may be required; provided, however, that a resolicitation will not be required if the number of shares increases by up to 15% above the Range Maximum. Any such resolicitation shall be effected in such manner and within such time as the Mid-Tier Holding Company shall establish, with the approval of the Commissioner and the FRB, if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.2.5 CONFIRMATION OF VALUATION.*** Notwithstanding the foregoing, no sale of Common Stock may be consummated unless, before such consummation, the Independent Appraiser confirms to the Mid-Tier Holding Company and to the Commissioner and to the FRB, if required, that, to the best knowledge of the Independent Appraiser, nothing of a material nature has occurred that, taking into account all relevant factors, would cause the Independent Appraiser to conclude that the aggregate value of all shares of Common Stock ordered, at the Subscription Price, is incompatible with its estimate of the aggregate consolidated pro forma market value of the Common Stock. An increase in the aggregate value of the Common Stock by up to 15% above the Range Maximum would not be deemed to be material. If such confirmation is not received, the Mid-Tier Holding Company may cancel the Offering, resolicit and extend the Offering, establish a new Subscription Price and/or Estimated Valuation Range, hold a new Offering or take such other action as the Commissioner and the FRB may permit.

**ARTICLE VII.** 

**SUBSCRIPTION RIGHTS AND ORDERS FOR COMMON STOCK** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1. DISTRIBUTION OF PROSPECTUS.** The Offering shall be conducted in compliance with the Regulations and applicable SEC regulations. As soon as practicable after the prospectus prepared by the Mid-Tier Holding Company has been declared effective and/or approved for use by the Commissioner, the FRB, if required, and the SEC, copies of the prospectus and order forms will be distributed to all Eligible Account Holders, to all Supplemental Eligible Account Holders, to any Tax-Qualified Employee Plan and to Employees, Officers, directors, trustees and Corporators at their last known addresses appearing on the records of the Bank to allow for the subscription of shares of Common Stock in the Subscription Offering and will be made available (if and when a Community Offering is held) for use by Persons in the Community Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2. ORDER FORMS.** Each order form will be preceded or accompanied by the prospectus describing the Mid-Tier Holding Company, the Bank, the Common Stock and the Offering. Each order form will contain, among other things, the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.2.1*** A specified date by which all order forms must be received by the Mid-Tier Holding Company, which date shall be not less than twenty (20) nor more than forty-five (45) days following the date on which the order forms are mailed by the Mid-Tier Holding Company, and which date will constitute the expiration of the Subscription Offering, unless extended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.2.2*** The Subscription Price per share for the shares of Common Stock to be sold in the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.2.3*** A description of the minimum and maximum number of shares of Common Stock that may be subscribed for pursuant to the exercise of subscription rights or otherwise purchased in the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.2.4*** Instructions as to how the recipient of the order form is to indicate thereon the number of shares of Common Stock for which such Person elects to subscribe and the available alternative methods of payment therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.2.5*** An acknowledgment that the recipient of the order form has received a copy of the prospectus before execution of the order form;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.2.6*** A statement indicating the consequences of failing to properly complete and return the order form, including a statement to the effect that all subscription rights are nontransferable, will be void at the end of the Subscription Offering, and can only be exercised by delivering to the Mid-Tier Holding Company within the Subscription Offering period such properly completed and executed order form, together with a check, bank draft or money order in the full amount of the purchase price as specified in the order form for the shares of Common Stock for which the recipient elects to subscribe in the Subscription Offering (or by authorizing on the order form that the Bank withdraw said amount from a Deposit Account at the Bank maintained by such Person, but only if the Bank elects to permit such withdrawals from the type of such Deposit Account); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.2.7*** A statement to the effect that the executed order form, once received by the Mid-Tier Holding Company, may not be modified or amended by the subscriber without the consent of the Mid-Tier Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3. UNDELIVERED, DEFECTIVE OR LATE ORDER FORM; INSUFFICIENT PAYMENT.** If order forms (a) are not delivered for any reason or are returned undelivered to the Mid-Tier Holding Company by the United States Postal Service, (b) are not received by the Mid-Tier Holding Company or are received by the Mid-Tier Holding Company after the expiration date specified thereon, (c) are defectively filled out or executed, (d) are not accompanied by the full required payment for the shares of Common Stock subscribed for (including cases in which Deposit Accounts from which withdrawals are authorized are insufficient to cover the amount of the required payment), or (e) are not mailed pursuant to a "no mail" order placed in effect by the account holder, the subscription rights of the Person to whom such rights have been granted will lapse as though such Person failed to return the contemplated order form within the time period specified thereon; provided, however, that the Mid-Tier Holding Company may, but will not be required to, waive any immaterial irregularity on any order form or permit the submission of corrected order forms or the remittance of full payment for subscribed shares by such date as the Mid-Tier Holding Company may specify. All interpretations by the Bank and/or the Mid-Tier Holding Company, as applicable, of terms and conditions of this Plan and of the order forms will be final. The Mid-Tier Holding Company reserves the right in its sole discretion to accept or reject orders received on photocopied or faxed order forms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4. PAYMENT FOR COMMON STOCK.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.4.1*** All payments for Common Stock subscribed for or ordered in the Offering must be delivered in full to the Mid-Tier Holding Company, together with a properly completed and executed order form, except in the case of the Syndicated Community Offering or Firm Commitment Underwritten Offering, on or before the expiration date specified on the order form, unless such date is extended by the Mid-Tier Holding Company; provided, however, that if any Employee Plan subscribes for shares during the Subscription Offering, such plans will not be required to pay for the shares at the time they subscribe but rather may pay for such shares of Common Stock subscribed for by such plans at the Subscription Price upon consummation of the Offering; provided, further, that, in the case of the

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ESOP there is in force from the time of its subscription until the consummation of the Offering, a loan commitment to lend to the ESOP, at such time, the aggregated Subscription Price of the shares of Common Stock for which it subscribed. The Mid-Tier Holding Company or the Bank may make scheduled discretionary contributions to an Employee Plan provided such contributions from the Bank, if any, do not cause the Bank to fail to meet its regulatory capital requirement. Payment for Common Stock may also be made by a participant in an Employee Plan causing funds held for such participant's benefit by an Employee Plan to be paid for such purchase to the extent that such plan allows participants or any related trust established for the benefit of such participants to direct that some or all of their individual accounts or sub-accounts be invested in Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.4.2*** Payment for Common Stock shall be made either by cash, check, bank draft or money order, or if a purchaser has a Deposit Account in the Bank (and if the Bank has elected to permit such withdrawals from the type of Deposit Account maintained by such Person), such purchaser may pay for the shares subscribed for by authorizing the Bank to make a withdrawal from the purchaser's Deposit Account at the Bank in an amount equal to the aggregate purchase price of such shares. Wire transfers may be accepted at the sole discretion of the Mid-Tier Holding Company. Any authorized withdrawal, whether from a savings, passbook or certificate account, shall be without penalty as to premature withdrawal. If the authorized withdrawal is from a certificate account, and the remaining balance does not meet the applicable minimum balance requirements, the certificate shall be canceled at the time of withdrawal, without penalty, and the remaining balance will earn interest at the passbook savings rate. Funds for which a withdrawal is authorized will remain in the purchaser's Deposit Account but may not be used by the purchaser pending consummation of the Offering or expiration of the 45-day period (or such longer period as may be approved by the Commissioner and the FRB, if required) following termination of the Subscription Offering, whichever occurs first. After consummation of the Offering, the withdrawal will be given effect only to the extent necessary to satisfy the subscription (to the extent it can be filled) at the Subscription Price. Interest will continue to be earned on any amounts authorized for withdrawal until such withdrawal is given effect. Interest on checks and money orders will be paid at the passbook savings rate of the Bank. Such interest will be paid from the date payment is received by the Mid-Tier Holding Company until consummation or termination of the Offering. If for any reason the Offering is not consummated, all payments made by subscribers in the Offering will be refunded to them with interest. In case of amounts authorized for withdrawal from Deposit Accounts, refunds will be made by canceling the authorization for withdrawal.

**ARTICLE VIII.** 

**STOCK PURCHASE PRIORITIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1. PRIORITIES FOR OFFERING.** All purchase priorities established by this Article VIII shall be subject to the purchase limitations set forth in, and shall be subject to adjustment as provided in, Article IX of this Plan. In addition to the priorities set forth in this Article VIII, the Bank may establish other priorities for the purchase of Common Stock, subject to the approval of the Commissioner and the FRB, if required. The priorities for the purchase of shares in the Offering are set forth in the following Sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2. CERTAIN DETERMINATIONS.** All interpretations or determinations of whether prospective purchasers are "Residents," "Associates," or "Acting in Concert" and any other interpretations of any and all other provisions of this Plan shall be made by and at the sole discretion of the Bank or the Mid-Tier Holding Company, as applicable, and may be based on whatever evidence the Bank or the Mid-Tier Holding Company may choose to use in making any such determination; provided, however, that the determination of whether Persons are Associates or a group is Acting in Concert remains subject to review by the Division. Such determination shall be conclusive, final and binding on all Persons and the Bank and the Mid-Tier Holding Company may take any remedial action, including without limitation rejecting the purchase or referring the matter to the Commissioner for action, as in its sole discretion the Bank or the Mid-Tier Holding Company may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3. MINIMUM PURCHASE; NO FRACTIONAL SHARES.** The minimum purchase by any Person shall be 25 shares (to the extent that shares of Common Stock are available for purchase), provided, however, that the aggregate purchase price for any minimum share purchase shall not exceed $500. No fractional shares will be allocated or issued.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4. OVERVIEW OF PRIORITIES.** In descending order of priority, the opportunity to purchase Common Stock shall be given in the Subscription Offering to: (1) Eligible Account Holders; (2) Supplemental Eligible Account Holders; (3) Tax-Qualified Employee Plans; and (4) Employees, Officers, directors, trustees and Corporators of the Bank, the Mid-Tier Holding Company and the MHC. Any shares of Common Stock that are not subscribed for in the Subscription Offering at the discretion of the Mid-Tier Holding Company may be offered for sale in a Direct Community Offering and/or a Syndicated Community Offering or a Firm Commitment Underwritten Offering on terms and conditions and procedures satisfactory to the Mid-Tier Holding Company, subject to any approvals required from the Commissioner or the FRB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5. PRIORITIES FOR SUBSCRIPTION OFFERING.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.5.1 FIRST PRIORITY: ELIGIBLE ACCOUNT HOLDERS.*** Upon approval of this Plan by the Corporators and the receipt of permission from the Commissioner, the FRB, if required, and the SEC to offer the Common Stock for sale, each Eligible Account Holder shall receive, without payment therefor, nontransferable subscription rights on a first priority basis to subscribe for a number of shares of Common Stock equal to the greater of (x) a number determined by dividing the Individual Maximum Purchase Limit (as such term is defined in Section 9.2) by the per share Subscription Price, (y) one-tenth of one percent (0.10%) of the shares offered in the Offering, or (z) 15 times the product (rounded down to the nearest whole number) obtained by multiplying (1) the total number of shares of Common Stock to be offered in the Offering by (2) a fraction, of which the numerator is the Qualifying Deposit of the Eligible Account Holder and the denominator is the total amount of Qualifying Deposits of all Eligible Account Holders. If there are insufficient shares available to satisfy all subscriptions of Eligible Account Holders, shares will be allocated to Eligible Account Holders so as to permit each such subscribing Eligible Account Holder to purchase a number of shares of Common Stock sufficient to make his or her total allocation equal to the lesser of 100 shares or the number of shares subscribed for. Thereafter, unallocated shares of Common Stock will be allocated pro rata to remaining subscribing Eligible Account Holders whose subscriptions remain unfilled in the same proportion that each such subscriber's Qualifying Deposit bears to the total amount of Qualifying Deposits of all subscribing Eligible Account Holders whose subscriptions remain unfilled. Subscription rights to purchase Common Stock received by Insiders (and their Associates) based on their increased deposits in the Bank in the one year preceding the Eligibility Record Date shall be subordinated to the subscription rights of other Eligible Account Holders. To ensure proper allocation of stock, each Eligible Account Holder must list on his or her subscription order form all Deposit Accounts in which he or she had an ownership interest as of the Eligibility Record Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.5.2 SECOND PRIORITY: SUPPLEMENTAL ELIGIBLE ACCOUNT HOLDERS.*** To the extent there are shares remaining after satisfaction of subscriptions by Eligible Account Holders, each Supplemental Eligible Account Holder shall receive non-transferable subscription rights to subscribe for a number of shares of Common Stock equal to the greater of (x) a number determined by dividing the Individual Maximum Purchase Limit by the per share Subscription Price, (y) one-tenth of one percent (0.10%) of the shares offered in the Offering, or (z) 15 times the product (rounded down to the nearest whole number) obtained by multiplying (1) the total number of shares of Common Stock to be offered in the Offering by (2) a fraction, of which the numerator is the Qualifying Deposit of the Supplemental Eligible Account Holder and the denominator is the total amount of Qualifying Deposits of all Supplemental Eligible Account Holders. If Supplemental Eligible Account Holders subscribe for a number of shares of Common Stock that, when added to the shares subscribed for by Eligible Account Holders, exceeds available shares, the available shares of Common Stock will be allocated among subscribing Supplemental Eligible Account Holders so as to permit each subscribing Supplemental Eligible Account Holder to purchase a number of shares of Common Stock sufficient to make his or her total allocation equal to the lesser of 100 shares or the number of shares subscribed for. Thereafter, unallocated shares will be allocated to each subscribing Supplemental Eligible Account Holder whose subscription remains unfilled in the same proportion that such subscriber's Qualifying Deposit on the Supplemental Eligibility Record Date bears to the total amount of Qualifying Deposits of all subscribing Supplemental Eligible Account Holders whose subscriptions remain unfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.5.3 THIRD PRIORITY: TAX-QUALIFIED EMPLOYEE PLANS.*** To the extent there are shares remaining after satisfaction of subscriptions by Eligible Account Holders and Supplemental Eligible Account Holders, the Tax-Qualified Employee Plans shall be given the opportunity to purchase in the aggregate up to 10% of the Common Stock to be sold in the Stock Issuance to Persons other than the MHC. In the event that the total number of shares of Common Stock offered in the Offering is increased due to an increase in the Estimated

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Valuation Range above the Range Maximum, the Tax-Qualified Employee Plans shall have a priority right to purchase any such additional shares offered (up to an aggregate of 10% of the Common Stock to be issued in the Stock Issuance to Persons other than the MHC). The Employee Plans shall not be deemed to be Associates or Affiliates of or Persons Acting in Concert with any trustee, director, Officer or Corporator of the MHC, the Mid-Tier Holding Company or the Bank. If the Tax-Qualified Employee Plans are not able to fill their orders in the Offering, then the Tax-Qualified Employee Plans may purchase shares in the open market or utilize authorized but unissued shares only with prior Commissioner and FRB approval (if required).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.5.4 FOURTH PRIORITY: EMPLOYEES, OFFICERS, DIRECTORS, TRUSTEES AND CORPORATORS.*** To the extent there are shares remaining after satisfaction of subscriptions by Eligible Account Holders, Supplemental Eligible Account Holders, and any Tax-Qualified Employee Plans, each Employee, Officer, director, trustee and Corporator of the Bank, the Mid-Tier Holding Company or the MHC who is not an Eligible Account Holder or a Supplemental Eligible Account Holder shall receive non-transferable subscription rights to subscribe for shares of Common Stock offered in the Offering in an amount equal to the Individual Maximum Purchase Limit; provided, however, that the aggregate number of shares of Common Stock that may be purchased by Employees, Officers, directors, trustees and Corporators and their Associates in the Offering shall be limited to 25% of the total number of shares of Common Stock issued in the Offering (including shares purchased by Employees, Officers, directors, trustees and Corporators under this Section 8.5.4 and under the preceding priority categories, but not including shares purchased by the ESOP). In the event that Employees, Officers, directors, trustees and Corporators subscribe under this Section 8.5.4 for more shares of Common Stock than are available for purchase by them, the shares of Common Stock available for purchase will be allocated by the Mid-Tier Holding Company among such subscribing Persons on an equitable basis, such as by giving weight to the order size, period of service, compensation and position of the individual subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6. PRIORITIES FOR DIRECT COMMUNITY OFFERING.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.6.1*** Any shares of Common Stock not subscribed for in the Subscription Offering may be offered for sale in a Direct Community Offering. This will involve an offering of all unsubscribed shares of Common Stock directly to the general public. The Direct Community Offering, if any, shall commence concurrently with, during or promptly after the Subscription Offering. The Direct Community Offering shall be completed within forty-five (45) days after the termination of the Subscription Offering, unless such period is extended as provided herein. The Mid-Tier Holding Company may use a broker, dealer or investment banking firm or firms on a best efforts basis to sell the unsubscribed shares in the Subscription and Direct Community Offering. The Mid-Tier Holding Company may pay a commission or other fee to such entity or entities as to the shares sold by such entity or entities in the Subscription and Direct Community Offering and may also reimburse such entity or entities for reasonable expenses incurred in connection with the sale. The Common Stock will be offered and sold in the Direct Community Offering, in accordance with the Regulations, so as to achieve the widest distribution of the Common Stock. In making the Direct Community Offering, the Mid-Tier Holding Company will give preference to natural persons residing in the Local Community. Orders accepted in the Direct Community Offering shall be filled up to a maximum not to exceed 2% of the Common Stock offered in the Offering, and thereafter remaining shares shall be allocated on an equal number of shares basis per order until all orders have been filled. No Person may subscribe for or purchase more than the Individual Maximum Purchase Limit of Common Stock in the Direct Community Offering. The Mid-Tier Holding Company, in its sole discretion, may reject subscriptions, in whole or in part, received from any Person under this Section 8.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.6.2*** In the event of an oversubscription for shares in the Direct Community Offering, available shares will be allocated (to the extent shares remain available) first to cover orders of natural persons residing in the Local Community (including trusts of natural persons), so that each such Person may receive 100 shares, and thereafter, on a pro rata basis to such Persons based on the amount of their respective subscriptions or on such other reasonable basis as may be determined by the Mid-Tier Holding Company. If oversubscription does not occur among natural persons residing in the Local Community, the allocation process to cover orders of other Persons subscribing for shares in the Direct Community Offering shall be as described above for natural persons.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.6.3*** The terms "Resident," "Residence," "Reside," or "Residing" as used herein with respect to any Person shall mean any Person who occupies a dwelling within the Local Community, has an intent to remain within the Local Community for a period of time, and manifests the genuineness of that intent by establishing an ongoing physical presence within the Local Community together with an indication that such presence within the Local Community is not merely transitory in nature. To the extent the Person is a corporation or other business entity, the principal place of business or headquarters must be in the Local Community. To the extent a Person is a personal benefit plan, the circumstances of the beneficiary shall apply with respect to this definition. In the case of all other benefit plans, circumstances of the trustee shall be examined for purposes of this definition. The Bank and the Mid-Tier Holding Company may use deposit or loan records or such other evidence provided to them to determine whether a Person is a resident. In all cases, however, such a determination shall be in the sole discretion of the Bank or the Mid-Tier Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.7. SYNDICATED COMMUNITY OFFERING OR FIRM COMMITMENT UNDERWRITTEN OFFERING.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.7.1*** Any shares of Common Stock not sold in the Subscription Offering or in the Direct Community Offering, if any, may be offered for sale to the general public by a selling group of Broker-Dealers in a Syndicated Community Offering, subject to terms, conditions and procedures as may be determined by the Mid-Tier Holding Company in a manner that is intended to achieve the widest distribution of the Common Stock subject to the rights of the Mid-Tier Holding Company to accept or reject in whole or in part all orders in the Syndicated Community Offering. No Person may purchase in the Syndicated Community Offering more than the Individual Maximum Purchase Limit of Common Stock. It is expected that the Syndicated Community Offering will commence as soon as practicable after termination of the Direct Community Offering, if any. The Syndicated Community Offering shall be completed within forty-five (45) days after the termination of the Subscription Offering, unless such period is extended as provided herein. The commission in the Syndicated Community Offering shall be determined by a marketing agreement between the Mid-Tier Holding Company and the Marketing Agent. Such agreement shall be filed with the Division and the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.7.2*** Alternatively, if feasible, shares of Common Stock not sold in the Subscription Offering or the Community Offering, if any, may be offered for sale in a Firm Commitment Underwritten Offering subject to such terms, conditions and procedures as may be determined by the Mid-Tier Holding Company, subject to the right of the Mid-Tier Holding Company to accept or reject in whole or in part any orders in the Firm Commitment Underwritten Offering. Provided the Subscription Offering has begun, the Mid-Tier Holding Company may begin the Firm Commitment Underwritten Offering at any time. The Mid-Tier Holding Company may seek to make other arrangements for the sale of the remaining shares to meet the Range Minimum. Such other arrangements will be subject to any applicable approvals of the Bank Regulators and to compliance with applicable state and federal securities laws.

**ARTICLE IX.** 

**ADDITIONAL LIMITATIONS ON PURCHASES OF COMMON STOCK** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1. GENERAL.** Purchases of Common Stock in the Offering will be subject to the purchase limitations set forth in this Article IX.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2. INDIVIDUAL MAXIMUM PURCHASE LIMIT.** This Section 9.2 sets forth the "INDIVIDUAL MAXIMUM PURCHASE LIMIT." No Person (or Persons exercising subscription rights through a single Qualifying Deposit held jointly) may purchase in the Offering (including the Subscription Offering, Direct Community Offering and Syndicated Community Offering or Firm Commitment Underwritten Offering) more than $300,000 of Common Stock sold in the Offering, except that: (a) the Bank may, in its sole discretion and without further notice to or solicitation of subscribers or other prospective purchasers, (i) increase such Individual Maximum Purchase Limit to up to 5% of the number of shares of Common Stock offered in the Offering or (ii) decrease such Individual Maximum Purchase Limit to no less than one-tenth of one percent (0.10%) of the number of shares of Common Stock sold in the Offering; and (b) Tax-Qualified Employee Plans may purchase up to 10% of the Common Stock sold in the Offering (including shares sold in the event of an increase in the Range Maximum of 15%). If the Bank increases the Individual Maximum Purchase Limit (as permitted by this Section 9.2), subscribers in the Subscription Offering who ordered the previously-effective maximum amount will be given the opportunity to increase their subscriptions up to the then applicable limit. Requests to purchase additional shares of Common Stock

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under this provision will be determined by the Mid-Tier Holding Company, in its sole discretion. If the Individual Maximum Purchase Limit is increased to 5% of the number of shares of Common Stock sold in the Offering, such limitation may be further increased to 9.99% of the number of shares of Common Stock sold in the Offering; provided that orders for Common Stock exceeding 5% of the Offering shall not exceed in the aggregate 10% of the Common Stock sold in the Offering. Requests to purchase additional shares of Common Stock if the purchase limitation is so increased will be determined by the Mid-Tier Holding Company, in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3. GROUP MAXIMUM PURCHASE LIMIT.** This Section 9.3 sets forth the "GROUP MAXIMUM PURCHASE LIMIT." No Person and his or her Associates or group of Persons Acting in Concert, may purchase in Offering more than $500,000 of Common Stock, except that: (a) the Bank may, in its sole discretion and without further notice to or solicitation of subscribers or other prospective purchasers, (i) increase such Group Maximum Purchase Limit to up to 5% of the number of shares of Common Stock sold in the Offering or (ii) decrease such Group Maximum Purchase Limit to no less than one-tenth of one percent (0.10%) of the number of shares of Common Stock sold in the Offering; and (b) Tax-Qualified Employee Plans may purchase up to 10% of the shares of Common Stock sold in the Offering. Notwithstanding the foregoing, if the Bank increases the Individual Maximum Purchase Limit (as permitted by Section 9.2) to a number that is in excess of the Group Maximum Purchase Limit established by this Section 9.3, the Group Maximum Purchase Limit shall automatically be increased so as to be equal to the Individual Maximum Purchase Limit, as adjusted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4. PURCHASES BY INSIDERS.** The aggregate number of shares of Common Stock that may be purchased in the Offering by Insiders and their Associates (but excluding shares held by any Employee Plan that are attributable to such persons and shares purchased in the open market after the Offering) shall not exceed 25% of the outstanding shares of Common Stock of the Mid-Tier Holding Company held by persons other than the MHC at the close of the Stock Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5. SPECIAL RULE FOR TAX-QUALIFIED EMPLOYEE PLANS.** Shares of Common Stock purchased by any individual participant ("Plan Participant") in a Tax-Qualified Employee Plan using funds therein pursuant to the exercise of subscription rights granted to such Plan Participant in his individual capacity as an Eligible Account Holder or Supplemental Eligible Account Holder shall not be deemed to be purchases by a Tax-Qualified Employee Plan for purposes of calculating the maximum amount of Common Stock that Tax-Qualified Employee Plans may purchase pursuant to this Plan, if the Plan Participant controls or directs the investment authority with respect to such account or subaccount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6. INCREASE IN THE TOTAL NUMBER OF SHARES OFFERED.** If the total number of shares of Common Stock offered in the Offering is increased to an amount greater than the Range Maximum, any additional shares will be issued to fill unfulfilled subscriptions of other subscribers according to their respective priorities set forth in this Plan, including the preference given to Tax-Qualified Employee Plans under Section 8.5.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7. ILLEGAL PURCHASES.** Notwithstanding any other provision of this Plan, no Person shall be entitled to purchase any Common Stock to the extent such purchase would be illegal under any federal law or state law or regulation or would violate regulations or policies of the Financial Industry Regulatory Authority, particularly those regarding free riding and withholding. The Bank, the Mid-Tier Holding Company and/or their agents may ask for an acceptable legal opinion from any purchaser as to the legality of such purchase and may refuse to honor any purchase order if such opinion is not timely furnished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8. REJECTION OF ORDERS.** The Mid-Tier Holding Company has the right in its sole discretion to reject any order submitted by a Person whose representations the Mid-Tier Holding Company believes to be false or who it otherwise believes, either alone or Acting in Concert with others, is violating, circumventing, or intends to violate, evade or circumvent the terms and conditions of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9. SUBSCRIBERS IN NON-QUALIFIED STATES OR IN FOREIGN COUNTRIES.** The Mid-Tier Holding Company, in its sole discretion, may make reasonable efforts to comply with the securities laws of any state in the United States in which its depositors reside, and will only offer and sell the Common Stock in states in which the offers and sales comply with such states' securities laws. However, no Person will be offered or allowed to purchase any Common Stock under this Plan if he or she resides in a foreign country or in a state of the United States with respect to which any of the following apply: (i) the offer or sale of shares of Common Stock to such Persons would require the Mid-Tier Holding Company or its Employees to register, under the securities laws of such state, as a broker or dealer or to register or otherwise qualify its securities for sale in such state; or (ii) such registration or qualification would be impracticable for reasons of cost or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10. NO OFFER TO TRANSFER SHARES.** Before the consummation of the Offering, no Person shall offer to transfer, or enter into any agreement or understanding to transfer, the legal or beneficial ownership of any subscription rights or shares of Common Stock, except pursuant to this Plan. In addition, before the consummation of the Offering, no person shall make any offer, or any announcement of any offer, to purchase the Common Stock to be issued, or knowingly acquire any Common Stock in the Offering in excess of the maximum purchase limitations established in this Plan. The following shall not constitute impermissible transfers under this Plan. Any Person having subscription rights in his or her individual capacity as an Eligible Account Holder or Supplemental Eligible Account Holder may exercise such subscription rights by causing a tax-qualified plan to make such purchase using funds allocated to such Person in such tax-qualified plan if such individual plan participant controls or directs the investment authority with respect to such account or subaccount. A tax-qualified plan that maintains an Eligible Deposit Account in the Bank as trustee for or for the benefit of a Person who controls or directs the investment authority with respect to such account or subaccount ("Beneficiary") may, in exercising its subscription rights, direct that the Common Stock be issued in the name of such individual Beneficiary in his or her individual capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.11. CONFIRMATION BY PURCHASERS.** Each Person ordering Common Stock in the Offering will be deemed to confirm that such purchase does not conflict with the purchase limitations in this Plan. All questions concerning whether any Persons are Associates or a Group Acting in Concert or whether any purchase conflicts with the purchase limitations in this Plan or otherwise violates any provision of this Plan shall be determined by the Bank or the Mid-Tier Holding Company, in their sole discretion. Such determination shall be conclusive, final and binding on all Persons and the Mid-Tier Holding Company and the Bank may take any remedial action, including without limitation rejecting the purchase or referring the matter to the Commissioner, as in their sole discretion the Mid-Tier Holding Company or the Bank may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12. MINORITY STOCK ISSUANCE LIMITATIONS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12.1** The aggregate amount of outstanding Common Stock owned or controlled by persons other than the MHC at the close of the Offering shall be no more than 49.0% of the Mid-Tier Holding Company's total outstanding Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12.2** The aggregate amount of Common Stock acquired in the Offering by any Nontax-Qualified Employee Plan or any Insider and his or her Associates, exclusive of any stock acquired by such plan or Insider and his or her Associates in the secondary market, shall not exceed 10% of the outstanding shares of Common Stock held by persons other than the MHC at the close of the Offering. In calculating the number of shares held by any Insider or Associate under this provision, shares held by any Tax-Qualified Employee Plan or Nontax-Qualified Employee Plan that are attributable to such person shall not be counted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12.3** The aggregate amount of stock of the Mid-Tier Holding Company, whether common or preferred, acquired in the Offering by any Nontax-Qualified Employee Plan or any Insider and his or her Associates, exclusive of any stock acquired by such plan in the secondary market, shall not exceed 10% of the stockholders' equity of the Mid-Tier Holding Company held by persons other than the MHC at the close of the Offering. In calculating the number of shares held by any Insider or Associate under this provision, shares held by any Tax-Qualified Employee Plan or Nontax-Qualified Employee Plan that are attributable to such person shall not be counted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12.4** The aggregate amount of Common Stock acquired in the Offering by any one or more Tax-Qualified Employee Plans, exclusive of any stock acquired by such plans in the secondary market, shall not exceed 10% of the outstanding shares of Common Stock held by persons other than the MHC at the close of the Offering, and shall not exceed 4.9% of the outstanding shares of Common Stock at the conclusion of the Offering.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12.5** The aggregate amount of stock, whether common or preferred, acquired in the Offering by any one or more Tax-Qualified Employee Plans, exclusive of any stock acquired by such plans in the secondary market, shall not exceed 10% of the stockholders' equity of the Mid-Tier Holding Company held by persons other than the MHC at the close of the Offering, and shall not exceed 4.9% of the stockholders' equity of the Mid-Tier Holding Company at the conclusion of the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12.6** The aggregate amount of Common Stock acquired in the Offering by all Nontax-Qualified Employee Plans, Insiders and their Associates, exclusive of any stock acquired by such plans, Insiders and their Associates in the secondary market, shall not exceed 25% of the outstanding shares of Common Stock held by persons other than the MHC at the close of the Offering. In calculating the number of shares held by Insiders and their Associates under this provision, shares held by any Tax-Qualified Employee Plan or Nontax-Qualified Employee Plan that are attributable to such persons shall not be counted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12.7** The aggregate amount of Common Stock, whether common or preferred, acquired in the Offering by all Nontax-Qualified Employee Plans, Insiders and their Associates of Insiders, exclusive of any stock acquired by such plans, Insiders and Associates in the secondary market, shall not exceed 25% of the stockholders' equity of the Mid-Tier Holding Company held by persons other than the MHC at the close of the Offering. In calculating the number of shares held by Insiders and their Associates under this provision, shares held by any Tax-Qualified Employee Plan or Nontax-Qualified Employee Plan that are attributable to such persons shall not be counted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12.8** The aggregate amount of Common Stock acquired by all stock benefit plans of the Mid-Tier Holding Company or the Bank, other than employee stock ownership plans, shall not exceed 25% of the outstanding Common Stock held by persons other than the MHC at the closing of the Offering.

**ARTICLE X.** 

**POST REORGANIZATION MATTERS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1. STOCK PURCHASES AFTER THE REORGANIZATION.** For a period of three (3) years after the Reorganization, no Insider, or his or her Associates, may purchase, without the prior written approval of the Commissioner and the FRB, any stock of the Mid-Tier Holding Company except from a broker-dealer registered with the SEC; provided that the foregoing shall not apply to (i) negotiated transactions involving more than 1% of the outstanding stock in the class of stock, or (ii) purchases of stock made by and held by or other made pursuant to any Tax-Qualified or Nontax-Qualified Employee Plan even if such stock is attributable to Insiders or their Associates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2. RESALES OF STOCK BY INSIDERS.** Common Stock purchased in the Offering by Insiders and their Associates may not be resold for a period of at least one year following the date of purchase, except in the case of death or substantial disability, as determined by the Commissioner, of such Insider or Associate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3. BOOK-ENTRY.** Shares of the Common Stock will be issued in book-entry form. Stock certificates will not be issued. Appropriate instructions shall be issued to the Mid-Tier Holding Company's transfer agent with respect to applicable restrictions on transfers of such stock set forth in Section 10.2. Any shares of stock issued as a stock dividend, stock split or otherwise with respect to such restricted stock, shall be subject to the same restrictions as apply to the restricted stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4. RESTRICTION ON FINANCING STOCK PURCHASES.** The Mid-Tier Holding Company and the Bank are prohibited from making any loans or otherwise extending credit for the purpose of purchasing Common Stock in the Offering; provided, however*,* that the Mid-Tier Holding Company, or a subsidiary thereof, may loan funds to the ESOP for the purchase of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5. STOCK BENEFIT PLANS.** The Board of Directors of the Bank and/or the Board of Directors of the Mid-Tier Holding Company are permitted under the Regulations, and may decide, to adopt one or more stock benefit plans for the benefit of the Employees, Officers, directors, trustees and directors of the Bank and Mid-Tier Holding Company, including an ESOP, an employer stock fund option in a 401(k) plan, stock award plans and stock

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option plans, which will be authorized to purchase Common Stock and grant options for Common Stock. However, only the Tax-Qualified Employee Plans will be permitted to purchase Common Stock in the Offering subject to the purchase priorities set forth in this Plan. Pursuant to the Regulations, the Bank may authorize the ESOP and any other Tax-Qualified Employee Plans to purchase in the aggregate up to 10% of the Common Stock to be sold in the Stock Issuance to Persons other than the MHC. No Recognition Plans (as defined below) or stock option plans have yet been adopted by the Board of Directors of the Bank or the Board of Directors of the Mid-Tier Holding Company, no such plans will be adopted prior to the closing of the Offering, and no such plans will be submitted for the approval of the Mid-Tier Holding Company's Stockholders at a meeting held earlier than six months after completion of the Offering. The Bank or the Mid-Tier Holding Company may make scheduled discretionary contributions to one or more Tax-Qualified Employee Plans to purchase Common Stock or to purchase issued and outstanding shares of Common Stock or authorized but unissued shares of Common Stock subsequent to the completion of the Offering; provided, however, that such contributions do not cause the Bank to fail to meet any of its regulatory capital requirements. This Plan specifically authorizes the grant and issuance by the Mid-Tier Holding Company of (i) awards of Common Stock after the Offering pursuant to one or more stock recognition and award plans (the "Recognition Plans") in an amount equal to up to 4% of the number of shares of Common Stock sold in the Offering and issued to the Foundation, (ii) options to purchase a number of shares of Common Stock in an amount equal to up to 10% of the number of shares of Common Stock sold in the Offering and issued to the Foundation, and shares of Common Stock issuable upon exercise of such options, (iii) to the ESOP, at the closing of the Offering or at any time thereafter, Common Stock in an amount equal to 8% of the number of shares of Common Stock sold in the Offering and issued to the Foundation; and (iv) to the Bank's 401(k) plan, at the closing of the Offering, an amount equal to up to 2% of the number of shares of Common Stock sold in the Offering and issued to the Foundation. Shares awarded under the Tax-Qualified Employee Plans or the Recognition Plans, and shares issued upon exercise of options may be authorized but unissued shares of the Common Stock or in subsections (i) and (ii) above purchased by the Mid-Tier Holding Company or such plans in the open market. Such limitations shall not apply if (x) the Recognition Plans or stock option plans are adopted no earlier than one year following the completion of the Offering, (y) all Common Stock awarded in excess of such limitations must be acquired in the secondary market and (z) such secondary market acquisitions must be no earlier than when such limitations can be exceeded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.6. MARKET FOR COMMON STOCK.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***10.6.1*** The Mid-Tier Holding Company shall use its best efforts to: (i) encourage and assist a Market Maker to establish and maintain a market for the Common Stock; and (ii) list the Common Stock on a national or regional securities exchange, or on the Nasdaq system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***10.6.2*** The Mid-Tier Holding Company shall promptly register the Common Stock with the SEC pursuant to the Exchange Act, and undertake not to deregister such Common Stock for a period of three years thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.7. LIQUIDATION ACCOUNT.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***10.7.1*** The Mid-Tier Holding Company shall, at the time of the close of the Reorganization, establish a Liquidation Account in an amount equal to the product of (i) the percentage of the Common Stock issued in the Stock Issuance to Persons other than the MHC and (ii) the net worth of the Bank as of the date of the latest consolidated statement of financial condition contained in the final Prospectus distributed in connection with the Offering. The function of the Liquidation Account is to establish a priority on liquidation for Eligible Account Holders and Supplemental Eligible Account Holders (if any) and, except as otherwise provided in this Section 10.7, the existence of the Liquidation Account shall not operate to restrict the use or application of any of the net worth accounts of the Mid-Tier Holding Company. The Liquidation Account will be maintained by the Mid-Tier Holding Company for the benefit of the Eligible Account Holders and Supplemental Eligible Account Holders who continue to maintain Deposit Accounts with the Bank following the Reorganization. Each Eligible Account Holder and Supplemental Eligible Account Holder shall, with respect to each Deposit Account, hold a related inchoate interest in a portion of the Liquidation Account balance, in relation to each Deposit Account balance at the Eligibility Record Date or Supplemental Eligibility Record Date, as the case may be, or to such balance as it may be subsequently reduced, as hereinafter provided. The initial Liquidation Account balance shall not be increased, and shall be subject to downward adjustment to the extent of any downward adjustment of any subaccount balance of any Eligible Account Holder or Supplemental Eligible Account Holder in accordance with 209 CMR 33.05(12).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***10.7.2*** In the unlikely event of a complete liquidation of (i) the Bank or (ii) the Bank and the Mid-Tier Holding Company (and only in such event), following all liquidation payments to creditors (including those to depositors to the extent of their Deposit Accounts), each Eligible Account Holder and Supplemental Eligible Account Holder (if any) shall be entitled to receive a liquidating distribution from the Liquidation Account, in the amount of the then-adjusted subaccount balances for his or her deposit accounts then held, before any liquidating distribution may be made to any holder of the Mid-Tier Holding Company's capital stock. No merger, consolidation, reorganization, or purchase of bulk assets with assumption of deposit accounts and other liabilities, or similar transactions with an FDIC-insured institution, in which the Mid-Tier Holding Company and/or the Bank is not the surviving entity, shall be deemed to be a complete liquidation for this purpose. In such transactions, the Liquidation Account shall be assumed by the surviving institution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***10.7.3*** The initial subaccount balance for a Deposit Account held by an Eligible Account Holder and/or Supplemental Eligible Account Holder (if any) shall be determined by multiplying the opening balance in the Liquidation Account by a fraction, the numerator of which is the amount of such Eligible Account Holder's or Supplemental Eligible Account Holder's Qualifying Deposit and the denominator of which is the total amount of all Qualifying Deposits of all Eligible Account Holders and Supplemental Eligible Account Holders in the Bank. For Deposit Accounts in existence on both dates, separate subaccounts shall be determined on the basis of the Qualifying Deposits in such Deposit Accounts on such record dates. Such initial subaccount balance shall not be increased by additional Deposits, but shall be subject to downward adjustment as described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***10.7.4*** If, at the close of business on the last day of any period for which the Mid-Tier Holding Company has prepared audited financial statements subsequent to the effective date of the Reorganization, the deposit balance in the Deposit Account of an Eligible Account Holder or Supplemental Eligible Account Holder (if any) is less than the lesser of: (i) the balance in the Deposit Account at the close of business on the last day of any period for which the Mid-Tier Holding Company has prepared audited financial statements subsequent to the Eligibility Record Date or Supplemental Eligibility Record Date (if established); or (ii) the amount in such Deposit Account as of the Eligibility Record Date or Supplemental Eligibility Record Date (if established), then the subaccount balance for such Deposit Account shall be adjusted by reducing such subaccount balance in an amount proportionate to the reduction in the balance of such Deposit Account. In the event of such downward adjustment, the subaccount balance shall not be subsequently increased, notwithstanding any subsequent increase in the deposit balance of the related Deposit Account. If any such Deposit Account is closed, the related subaccount shall be reduced to zero. For purposes of this Section 10.7, a time account shall be deemed to be closed upon its maturity date regardless of any renewal thereof. A distribution of each subaccount balance may be made only in the event of a complete liquidation of the Mid-Tier Holding Company subsequent to the Reorganization and only out of funds available for such purpose after payment of all creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***10.7.5*** The creation and maintenance of the Liquidation Account shall not operate to restrict the use or application of any of the equity accounts of the Mid-Tier Holding Company or the Bank, except that the Mid-Tier Holding Company shall not declare or pay a cash dividend on, or repurchase any of, its capital stock if the effect thereof would cause its net worth to be reduced below the amount required for the Liquidation Account or the regulatory capital requirements of the Mid-Tier Holding Company (to the extent applicable). Neither the Mid-Tier Holding Company nor the Bank shall be required to set aside funds in connection with its obligations hereunder relating to the Liquidation Account. Eligible Account Holders and Supplemental Eligible Account Holders (if any) do not retain any voting rights in either the Mid-Tier Holding Company or the Bank based on their liquidation subaccounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***10.7.6*** For the three-year period following the completion of the Reorganization, the Mid-Tier Holding Company will not without prior approval of the Commissioner and the FRB: (i) sell or liquidate the Mid-Tier Holding Company, or (ii) cause the Bank to be sold or liquidated. Upon the written request of the FRB and, if necessary, the Commissioner, the Mid-Tier Holding Company shall, or upon the prior written approval of the FRB and, if necessary, the Commissioner, the Mid-Tier Holding Company may, at any time after two years from the completion of the Reorganization, transfer the Liquidation Account to the Bank, at which time the Liquidation

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Account shall be assumed by the Bank and the interests of Eligible Account Holders and Supplemental Eligible Account Holders (if any) will be solely and exclusively established in a liquidation account established by the Bank. In the event such transfer occurs, the Mid-Tier Holding Company shall be deemed to have transferred the Liquidation Account to the Bank and such Liquidation Account shall be subsumed into the liquidation account established by the Bank and shall not be subject in any manner or amount to the claims of the Mid-Tier Holding Company's creditors. Approval of this Plan by the Corporators shall constitute approval of the transactions described herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.9. REORGANIZATION AND STOCK ISSUANCE EXPENSES.** The Bank may retain and pay for the services of financial and other advisors and investment bankers to assist in connection with any or all aspects of the Reorganization and the Stock Issuance, including the payment of fees to brokers for assisting Persons in completing and/or submitting Order Forms. The Regulations require that the expenses of the Reorganization and Stock Issuance must be reasonable. The Bank will use its best efforts to assure that the expenses incurred by the Bank in effecting the Reorganization and the Stock Issuance will be reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.10. PUBLIC INSPECTION OF APPLICATION.** The Bank will maintain a copy of the Application in the Bank's main banking office and such copy will be available for public inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.11. ENFORCEMENT OF TERMS AND CONDITIONS.** Each of the Bank and the Mid-Tier Holding Company shall have the right to take all such action as they, in their sole discretion, may deem necessary, appropriate or advisable in order to monitor and enforce the terms, conditions, limitations and restrictions contained in this Plan and the terms, conditions and representations contained in the Order Forms, including, but not limited to, the right to require any subscriber or purchaser to provide evidence, in a form satisfactory to the Bank or the Mid-Tier Holding Company, of such Person's eligibility to subscribe for or purchase shares of the Common Stock under the terms of this Plan and the absolute right (subject only to any necessary regulatory approvals or concurrence) to reject, limit or revoke acceptance of any subscription or order and to delay, terminate or refuse to consummate any sale of Common Stock that it believes might violate, or is designed to, or is any part of a plan to, evade or circumvent such terms, conditions, limitations, restrictions and representations. Any such action shall be final, conclusive and binding on all Persons, and the Bank, the Mid-Tier Holding Company, and their Boards of Directors, Officers, Employees and agents shall be free from any liability to any Person on account of any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.12. VOTING RIGHTS FOLLOWING REORGANIZATION.** Following the Reorganization, the holders of the capital stock of the Mid-Tier Holding Company shall have exclusive voting rights in the Mid-Tier Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.13. PROCEEDS OF FUTURE STOCK ISSUANCES.** The proceeds of any Mid-Tier Holding Company stock issuance plan that entails an offer to the general public shall be payable in cash to the Mid-Tier Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.14. WAIVERS OF DIVIDENDS.** Any waiver by the MHC of a dividend payment from the Mid-Tier Holding Company shall require the prior approval of the Commissioner, the FDIC and the FRB.

**ARTICLE XI.** 

**MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1. INTERPRETATION OF PLAN.** All interpretations of this Plan and application of its provisions to particular circumstances by the Bank or the Mid-Tier Holding Company shall be final, subject to the authority of the Commissioner and the FRB. When a reference is made in this Agreement to Sections or Exhibits, such reference shall be to a Section of or Exhibit to this Plan unless otherwise indicated. The recitals hereto constitute an integral part of this Plan. References to Sections include subsections, which are part of the related Section (e.g., a section numbered "Section 5.5.1" would be part of "Section 5.5" and references to "Section 5.5" would also refer to material contained in the subsection described as "Section 5.5.1"). The headings contained in this Plan are for reference purposes only and shall not affect in any way the meaning or interpretation of this Plan. Whenever the words "include," "includes" or "including" are used in this Plan, they shall be deemed to be followed by the words "without limitation."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2. AMENDMENT OR TERMINATION OF THE PLAN.** If deemed necessary or desirable, the terms of this Plan may be substantively amended by the Board of Directors and the Board of Trustees as a result of comments from regulatory authorities or otherwise at any time prior to approval of this Plan by the Commissioner and the FRB and at any time thereafter with the concurrence of the Commissioner, and, if required, the FRB. If amendments to this Plan are made after the Corporator Meeting, no further approval of the Corporators will be necessary unless otherwise required by the Commissioner or the FRB. The Plan may be terminated by the Board of Directors and the Board of Trustees in their sole discretion, at any time prior to the Corporator Meeting and at any time thereafter with the concurrence of the Commissioner and the FRB. The Plan will terminate if the sale of all shares of Common Stock is not completed within twenty four (24) months from the date of approval of this Plan by the Board of Directors and the Board of Trustees.

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**Exhibit A** 

**ARTICLES OF INCORPORATION** 

**NARRAGANSETT BANCORP, INC.** 

The undersigned, Edward A. Quint, whose address is 5335 Wisconsin Avenue, N.W., Suite 780, Washington, D.C. 20015, being at least eighteen years of age, acting as incorporator, does hereby form a corporation under the general laws of the State of Maryland, having the following Articles of Incorporation (the "Articles"):

**ARTICLE 1. Name.** The name of the corporation is Narragansett Bancorp, Inc. (herein, the "Corporation").

**ARTICLE 2. Principal Office.** The address of the principal office of the Corporation in the State of Maryland is c/o CSC-Lawyers Incorporating Service Company, 7 St. Paul Street, Suite 820, Baltimore, Maryland 21202.

**ARTICLE 3. Purpose.** The purpose for which the Corporation is formed is to engage in any lawful act or activity for which corporations may be organized under the general laws of the State of Maryland as now or hereafter in force.

**ARTICLE 4. Resident Agent.** The name and address of the registered agent of the Corporation in the State of Maryland is CSC-Lawyers Incorporating Service Company, 7 St. Paul Street, Suite 820, Baltimore, Maryland 21202. Said resident agent is a Maryland corporation.

**ARTICLE 5. Capital Stock** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Authorized Stock.** The total number of shares of capital stock of all classes that the Corporation has authority to issue is sixty-five million (65,000,000) shares, consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Sixty million (60,000,000) shares of common stock, par value one cent ($0.01) per share (the "Common Stock"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Five million (5,000,000) shares of preferred stock, par value one cent ($0.01) per share (the "Preferred Stock").

The aggregate par value of all the authorized shares of capital stock is six hundred fifty thousand dollars ($650,000.00). Except to the extent required by governing law, rule or regulation, the shares of capital stock may be issued from time to time by the Board of Directors without further approval of the stockholders of the Corporation. The Corporation shall have the authority to purchase its capital stock out of funds lawfully available therefor, which funds shall include, without limitation, the Corporation's unreserved and unrestricted capital surplus. The Board of Directors, pursuant to a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number), and without action by the stockholders, may amend these Articles to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Corporation has authority to issue. For the purposes of these Articles, the term "Whole Board" shall mean the total number of directors that the

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Corporation would have if there were no vacancies on the Board of Directors at the time any such resolution is presented to the Board of Directors for adoption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Common Stock.** Except as provided under the terms of any series of Preferred Stock and as limited by Section D of this Article 5, the exclusive voting power shall be vested in the Common Stock. Except as otherwise provided in these Articles, each holder of the Common Stock shall be entitled to one vote for each share of Common Stock standing in the holder's name on the books of the Corporation. Subject to any rights and preferences of any series of Preferred Stock, holders of Common Stock shall be entitled to such dividends as may be declared by the Board of Directors out of funds lawfully available therefor. Upon the liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or involuntary, holders of Common Stock shall be entitled to receive all the remaining assets of the Corporation available for distribution to its stockholders ratably in proportion to the number of shares held by them, respectively, after: (i) payment or provision for payment of the Corporation's debts and liabilities; (ii) distributions or provisions for distributions to holders of any class or series of stock having a preference over the Common Stock in the liquidation, dissolution or winding up of the Corporation; and (iii) distributions or provision for distributions in settlement of the Liquidation Account established by the Corporation as described in Section G of this Article 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Preferred Stock.** The Board of Directors is hereby expressly authorized, subject to any limitations prescribed by law, to provide for the issuance of the shares of Preferred Stock in series, to establish from time to time the number of shares to be included in each such series, and to fix the preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications and terms and conditions of redemption of the shares of each such series. The number of authorized shares of the Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the Common Stock, without a vote of the holders of the Preferred Stock, or of any series thereof, unless a vote of any such holders is required by law or pursuant to the terms of such Preferred Stock. The power of the stockholders to increase or decrease the authorized shares of the Preferred Stock shall not limit any of the powers of the Board of Directors provided under these Articles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Restrictions on Voting Rights of the Corporation's Equity Securities.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Notwithstanding any other provision of these Articles, in no event shall the record owner (or if more than one record owner, all such record owners taken as a group) of any outstanding Common Stock that is beneficially owned, directly or indirectly, by a Person who, as of any record date for the determination of stockholders entitled to vote on any matter, beneficially owns in excess of 10% of the then-outstanding shares of Common Stock (the "Limit"), be entitled, or permitted to any vote in respect of the shares held in excess of the Limit. The number of votes that may be cast by any particular record owner by virtue of the provisions hereof in respect of Common Stock beneficially owned by such Person owning shares in excess of the Limit (a "Holder in Excess") shall be a number equal to the total number of votes that a single record owner of all Common Stock owned by such Holder in Excess would be entitled to cast after giving effect to the provisions hereof, multiplied by a fraction, the numerator of which is the number of shares of such class or series that are both (i) beneficially owned by such Holder in Excess and (ii) owned of record by such particular record owner, and the denominator of

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which is the total number of shares of Common Stock beneficially owned by such Holder in Excess. The provisions of this Section D of this Article 5 shall not be applicable to any mutual holding company parent of the Corporation. The provisions of this Section D of this Article 5 shall also not be applicable if, before the Holder in Excess acquired beneficial ownership of such shares in excess of the Limit, such acquisition was approved by a majority of the "Unaffiliated Directors." For this purpose, the term "Unaffiliated Director" means any member of the Board of Directors who is unaffiliated with the Holder in Excess and was a member of the Board of Directors before the time that the Holder in Excess became such, and any director who is thereafter chosen to fill any vacancy on the Board of Directors and who is elected and who, in either event, is unaffiliated with the Holder in Excess and in connection with his or her initial assumption of office is recommended for appointment or election by a majority of the Unaffiliated Directors then serving on the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The following definitions shall apply to this Section D of this Article 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An "affiliate" of a specified Person shall mean a Person that directly, or indirectly through one
or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Beneficial ownership" shall be determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Securities Exchange Act of 1934 (or any successor rule or statutory provision), or, if said Rule 13d-3 shall be
rescinded and there shall be no successor rule or statutory provision thereto, pursuant to said Rule 13d-3 as in effect on December 31, 2023; provided, however, that a Person shall, in any event, also be
deemed the "beneficial owner" of any Common Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) that such Person or any of its affiliates beneficially owns, directly or indirectly; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) that such Person or any of its affiliates has (i) the right to acquire (whether such right is exercisable
immediately or only after the passage of time), pursuant to any agreement, arrangement or understanding (but shall not be deemed to be the beneficial owner of any voting shares solely by reason of an agreement, contract, or other arrangement with
the Corporation to effect any transaction of the type described in clause (i) or (ii) of the first sentence of Article 9 hereof) or upon the exercise of conversion rights, exchange rights, warrants, or options or otherwise, or (ii) sole or
shared voting or investment power with respect thereto pursuant to any agreement, arrangement, understanding, relationship or otherwise (but shall not be deemed to be the beneficial owner of any voting shares solely by reason of a revocable proxy
granted for a particular meeting of stockholders, pursuant to a public solicitation of proxies for such meeting, with respect to shares of which neither such Person nor any such affiliate is otherwise deemed the beneficial owner); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) that are beneficially owned, directly or indirectly, by any other Person with which such first mentioned Person
or any of its affiliates acts as a partnership, limited partnership, syndicate or other group pursuant to any agreement, arrangement or understanding for the purpose of acquiring, holding, voting or disposing of any shares of capital stock of the
Corporation; and provided further, however, that (i) no director or officer of the Corporation (or any affiliate of any such director or officer) shall, solely by reason of any or all of such directors or officers acting in their capacities as
such, be deemed, for any purposes hereof, to beneficially own any Common Stock beneficially owned by any other such director or officer (or any affiliate thereof), and (ii) neither any employee stock ownership or similar plan of the Corporation
or any subsidiary of the Corporation nor any trustee with respect thereto (or any affiliate of such trustee) shall, solely by reason of such capacity of such trustee, be deemed, for any purposes hereof, to beneficially own any Common Stock held
under any such plan. For purposes of computing the percentage of beneficial ownership of Common Stock of a Person, the outstanding Common Stock shall include shares deemed owned by such Person through application of this subsection but shall not
include any other shares of Common Stock that may be issuable by the Corporation pursuant to any agreement, or upon exercise of conversion rights, warrants or options, or otherwise. For all other purposes, the outstanding Common Stock shall include
only Common Stock then outstanding and shall not include any Common Stock that may be issuable by the Corporation pursuant to any agreement, or upon the exercise of conversion rights, warrants or options, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A "Person" shall mean any individual, firm, corporation, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Board of Directors shall have the power to construe and apply the provisions of this Section D and to make
all determinations necessary or desirable to implement such provisions including, but not limited to, matters with respect to (i) the number of shares of Common Stock beneficially owned by any Person, (ii) whether a Person is an affiliate
of another, (iii) whether a Person has an agreement, arrangement, or understanding with another as to the matters referred to in the definition of beneficial ownership, (iv) the application of any other definition or operative provision of
this Section D to the given facts, or (v) any other matter relating to the applicability or effect of this Section D.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Board of Directors shall have the right to demand that any Person reasonably believed by the Board of Directors to be a Holder in Excess (or holder of record of Common Stock beneficially owned by any Holder in Excess) supply the Corporation with complete information as to (i) the record owner(s) of all shares beneficially owned by such Holder in

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Excess, and (ii) any other factual matter relating to the applicability or effect of this section as may reasonably be requested of such Holder in Excess. The Board of Directors shall further have the right to receive from any Holder in Excess reimbursement for all expenses incurred by the Board in connection with its investigation of any matters relating to the applicability or effect of this section on such Holder in Excess, to the extent such investigation is deemed appropriate by the Board of Directors as a result of the Holder in Excess refusing to supply the Corporation with the information described in the previous sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Any constructions, applications, or determinations made by the Board of Directors pursuant to this Section D in good faith and on the basis of such information and assistance as was then reasonably available for such purpose, shall be conclusive and binding upon the Corporation and its stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If any provision (or portion thereof) of this Section D shall be found to be invalid, prohibited or unenforceable for any reason, the remaining provisions (or portions thereof) of this Section D shall remain in full force and effect, and shall be construed as if such invalid, prohibited or unenforceable provision had been stricken herefrom or otherwise rendered inapplicable, it being the intent of the Corporation and its stockholders that each such remaining provision (or portion thereof) of this Section D remain, to the fullest extent permitted by law, applicable and enforceable as to all stockholders, including Holders in Excess, notwithstanding any such finding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Majority Vote for Certain Actions.** With respect to those actions as to which any provision of the Maryland General Corporation Law (the "MGCL") requires stockholder authorization by a greater proportion than a majority of the total number of shares of all classes of capital stock or of the total number of shares of any class of capital stock, any such action shall be valid and effective if authorized by the affirmative vote of the holders of a majority of the total number of shares of all classes outstanding and entitled to vote thereon, except as otherwise provided in these Articles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Quorum.** Except as otherwise provided by law or expressly provided in these Articles, the presence, in person or by proxy, of the holders of record of shares of capital stock of the Corporation entitling the holders thereof to cast a majority of the votes (after giving effect, if required, to the provisions of Article 5, Section D) entitled to be cast by the holders of shares of capital stock of the Corporation entitled to vote shall constitute a quorum at all meetings of the stockholders, and every reference in these Articles to a majority or other proportion of capital stock (or the holders thereof) for purposes of determining any quorum requirement or any requirement for stockholder consent or approval shall be deemed to refer to such majority or other proportion of the votes (or the holders thereof) then entitled to be cast in respect of such capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Liquidation Account.** Under the Code of Massachusetts Regulations, the Corporation must establish and maintain a liquidation account (the "Liquidation Account") for the benefit of certain Eligible Account Holders and Supplemental Eligible Account Holders (if applicable) as defined in the Plan of Holding Company Reorganization and Plan of Stock Issuance of BayCoast Bank and Narragansett Financial Corporation, as may be amended from time to time (the "Plan of Reorganization"). In the event of a complete liquidation involving (i)

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the Corporation or (ii) BayCoast Bank, a Massachusetts-chartered savings bank that is a wholly-owned subsidiary of the Corporation, the Corporation must comply with the Code of Massachusetts Regulations and the provisions of the Plan of Reorganization with respect to the amount and priorities of each Eligible Account Holder's and Supplemental Eligible Account Holder's interests in the Liquidation Account. The interest of an Eligible Account Holder or Supplemental Eligible Account Holder in the Liquidation Account does not entitle such account holders to voting rights.

**ARTICLE 6. Preemptive Rights and Appraisal Rights.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Preemptive Rights.** Except for preemptive rights approved by the Board of Directors pursuant to a resolution approved by a majority of the directors then in office, no holder of the capital stock of the Corporation or series of stock or of options, warrants or other rights to purchase shares of any class or series of stock or of other securities of the Corporation shall have any preemptive right to purchase or subscribe for any unissued capital stock of any class or series, or any unissued bonds, certificates of indebtedness, debentures or other securities convertible into or exchangeable for capital stock of any class or series or carrying any right to purchase stock of any class or series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Appraisal Rights.** Holders of shares of stock shall not be entitled to exercise any rights of an objecting stockholder provided for under Title 3, Subtitle 2 of the MGCL or any successor statute unless the Board of Directors, pursuant to a resolution approved by a majority of the directors then in office, shall determine that such rights apply with respect to all or any classes or series of stock, to one or more transactions occurring after the date of such determination in connection with which holders of such shares would otherwise be entitled to exercise such rights.

**ARTICLE 7. Directors.** The following provisions are made a part of these Articles for the management of the business and the conduct of the affairs of the Corporation, and for further definition, limitation and regulation of the powers of the Corporation and of its directors and stockholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Management of the Corporation.** The business and affairs of the Corporation shall be managed under the direction of the Board of Directors. All powers of the Corporation may be exercised by or under the authority of the Board of Directors, except as conferred on or as reserved to the stockholders by law or by these Articles or the Bylaws of the Corporation; provided, however, that any limitations on the Board of Directors' management or direction of the affairs of the Corporation shall reserve the directors' full power to discharge their fiduciary duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Number, Class and Terms of Directors; No Cumulative Voting.** The number of directors constituting the Board of Directors of the Corporation shall initially be thirteen (13), which number may be increased or decreased in the manner provided in the Bylaws of the Corporation; provided, however, that such number shall never be less than the minimum number of directors required by the MGCL now or hereafter in force. The directors, other than those who may be elected by the holders of any series of Preferred Stock, shall be divided into three classes, with the term of office of the first class ("Class I") to expire at the conclusion of the first

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annual meeting of stockholders, the term of office of the second class ("Class II") to expire at the conclusion of the annual meeting of stockholders one year thereafter and the term of office of the third class ("Class III") to expire at the conclusion of the annual meeting of stockholders two years thereafter, with each director to hold office until his or her successor shall have been duly elected and qualified. At each annual meeting of stockholders, directors elected to succeed those directors whose terms expire shall be elected for a term of office to expire at the third succeeding annual meeting of stockholders after their election or for such shorter period of time as the Board of Directors may determine, with each director to hold office until his or her term expires and until his or her successor shall have been duly elected and qualified.

The names of the individuals who will serve as the initial directors of the Corporation until their successors are elected and qualify are as follows:

**Term to Expire in 2027**:

Gail M. Fortes

Steven W. Kenyon

Brian R. LeComte

Eric B. Mack

**Term to Expire in 2028**:

Maria L. Aguiar

Paul M. Joncas

Mary Louise Nunes

Carl W. Taber

Lawrence R. Walsh

**Term to Expire in 2029:** 

Nicholas M. Christ

Kenneth D. Furtado

Margarita Patricio

Marie Pellegrino

Stockholders shall not be permitted to cumulate their votes in the election of directors. A plurality of all the votes cast at a meeting at which a quorum is present is sufficient to elect a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Vacancies.** Any vacancies in the Board of Directors may be filled in the manner provided in the Bylaws of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Removal.** Subject to the rights of the holders of any series of Preferred Stock then outstanding, any director, or the entire Board of Directors, may be removed from office at any time, but only for cause and only by the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all of the then-outstanding shares of capital stock of the Corporation

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entitled to vote generally in the election of directors (after giving effect to the provisions of Article 5 hereof) voting together as a single class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Stockholder Proposals and Nominations of Directors.** Advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before any meeting of the stockholders of the Corporation shall be given in the manner provided in the Bylaws of the Corporation. Stockholder proposals to be presented in connection with a special meeting of stockholders shall be presented by the Corporation only to the extent required by Section 2-502 of the MGCL and the Bylaws of the Corporation.

**ARTICLE 8. Bylaws.** The Board of Directors is expressly empowered to adopt, amend or repeal the Bylaws of the Corporation. Any adoption, amendment or repeal of the Bylaws of the Corporation by the Board of Directors shall require the approval of a majority of the Whole Board. The stockholders shall also have power to adopt, amend or repeal the Bylaws of the Corporation. In addition to any vote of the holders of any class or series of stock of the Corporation required by law or by these Articles, the affirmative vote of the holders of at least 80% of the voting power of all of the then-outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors (after giving effect to the provisions of Article 5 hereof), voting together as a single class, shall be required for the adoption, amendment or repeal of any provisions of the Bylaws of the Corporation by the stockholders.

**ARTICLE 9. Evaluation of Certain Offers.** The Board of Directors, when evaluating (i) any offer of another Person (as defined below) to (A) make a tender or exchange offer for any equity security of the Corporation, (B) merge or consolidate the Corporation with another corporation or entity, or (C) purchase or otherwise acquire all or substantially all of the properties and assets of the Corporation or (ii) any other actual or proposed transaction that would or may involve a change in control of the Corporation (whether by purchases of shares of stock or any other securities of the Corporation in the open market or otherwise, tender offer, merger, consolidation, share exchange, dissolution, liquidation, sale of all or substantially all of the assets of the Corporation, proxy solicitation or otherwise), may, in connection with the exercise of its business judgment in determining what is in the best interests of the Corporation and its stockholders and in making any recommendation to the Corporation's stockholders, give due consideration to all relevant factors, including, but not limited to: (A) the economic effect, both immediate and long-term, upon the Corporation's stockholders, including stockholders, if any, who do not participate in the transaction; (B) the social and economic effect on the present and future employees, creditors and customers of, and others dealing with, the Corporation and its subsidiaries and on the communities in which the Corporation and its subsidiaries operate or are located; (C) whether the proposal is acceptable based on the historical, current or projected future operating results or financial condition of the Corporation; (D) whether a more favorable price could be obtained for the Corporation's stock or other securities in the future; (E) the reputation and business practices of the other entity to be involved in the transaction and its management and affiliates as they would affect the employees of the Corporation and its subsidiaries; (F) the future value of the stock or any other securities of the Corporation or the other entity to be involved in the proposed transaction; (G) any antitrust or other legal and regulatory issues that are raised by the proposal; (H) the business and historical, current or expected future financial condition or operating results of the other entity to be involved in the

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transaction, including, but not limited to, debt service and other existing financial obligations, financial obligations to be incurred in connection with the proposed transaction, and other likely financial obligations of the other entity to be involved in the proposed transaction; and (I) the ability of the Corporation to fulfill its objectives as a financial institution holding company and on the ability of its subsidiary financial institution(s) to fulfill the objectives of a federally insured financial institution under applicable statutes and regulations. If the Board of Directors determines that any proposed transaction of the type described in clause (i) or (ii) of the immediately preceding sentence should be rejected, it may take any lawful action to defeat such transaction, including, but not limited to, any or all of the following: advising stockholders not to accept the proposal; instituting litigation against the party making the proposal; filing complaints with governmental and regulatory authorities; acquiring the stock or any of the securities of the Corporation; selling or otherwise issuing authorized but unissued stock or other securities or granting options or rights with respect thereto; and obtaining a more favorable offer from another individual or entity. This Article 9 sets forth certain factors that may be considered by the Board of Directors, but does not create any implication concerning the factors that must be considered, or any other factors that may or may not be considered, by the Board of Directors regarding any proposed transaction of the type described in clause (i) or (ii) of the first sentence of this Article 9.

For purposes of this Article 9, a "Person" shall include an individual, a group acting in concert, a corporation, a partnership, an association, a joint venture, a pool, a joint stock company, a trust, an unincorporated organization or similar company, a syndicate or any other group or entity formed for the purpose of acquiring, holding or disposing of securities.

**ARTICLE 10. Indemnification, etc. of Directors and Officers.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Indemnification.** The Corporation shall indemnify (1) its current and former directors and officers, whether serving the Corporation or at its request any other entity, to the fullest extent required or permitted by the MGCL now or hereafter in force, including the advancement of expenses under the procedures and to the fullest extent permitted by law, and (2) other employees and agents to such extent as shall be authorized by the Board of Directors and permitted by law; provided, however, that, except as provided in Section B of this Article 10 with respect to proceedings to enforce rights to indemnification, the Corporation shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board of Directors of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Procedure.** If a claim under Section A of this Article 10 is not paid in full by the Corporation within sixty (60) days after a written claim has been received by the Corporation, except in the case of a claim for an advancement of expenses, in which case the applicable period shall be twenty (20) days, the indemnitee may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the indemnitee shall also be entitled to be reimbursed the expense of prosecuting or defending such suit. It shall be a defense to any action for advancement of expenses that the Corporation has not received both (i) an undertaking as required by law to repay such advances if it shall ultimately be determined that the standard of

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conduct has not been met and (ii) a written affirmation by the indemnitee of his good faith belief that the standard of conduct necessary for indemnification by the Corporation has been met. In (i) any suit brought by the indemnitee to enforce a right to indemnification hereunder (but not in a suit brought by the indemnitee to enforce a right to an advancement of expenses) it shall be a defense that, and (ii) any suit by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking the Corporation shall be entitled to recover such expenses upon a final adjudication that, the indemnitee has not met the applicable standard for indemnification set forth in the MGCL. Neither the failure of the Corporation (including its Board of Directors, independent legal counsel, or its stockholders) to have made a determination before the commencement of such suit that indemnification of the indemnitee is proper in the circumstances because the indemnitee has met the applicable standard of conduct set forth in the MGCL, nor an actual determination by the Corporation (including its Board of Directors, independent legal counsel, or its stockholders) that the indemnitee has not met such applicable standard of conduct, shall create a presumption that the indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by the indemnitee, be a defense to such suit. In any suit brought by the indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this Article 10 or otherwise shall be on the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Non-Exclusivity.** The rights to indemnification and to the advancement of expenses conferred in this Article 10 shall not be exclusive of any other right that any Person may have or hereafter acquire under any statute, these Articles, the Corporation's Bylaws, any agreement, any vote of stockholders or the Board of Directors, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Insurance.** The Corporation may maintain insurance, at its expense, to insure itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such Person against such expense, liability or loss under the MGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Miscellaneous.** The Corporation shall not be liable for any payment under this Article 10 in connection with a claim made by any indemnitee to the extent such indemnitee has otherwise actually received payment under any insurance policy, agreement, or otherwise, of the amounts otherwise indemnifiable hereunder. The rights to indemnification and to the advancement of expenses conferred in Sections A and B of this Article 10 shall be contract rights and such rights shall continue as to an indemnitee who has ceased to be a director or officer and shall inure to the benefit of the indemnitee's heirs, executors and administrators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Limitations Imposed by Federal Law.** Notwithstanding any other provision set forth in this Article 10, in no event shall any payments made by the Corporation pursuant to this Article 10 exceed the amount permissible under applicable federal law, including, without limitation, Section 18(k) of the Federal Deposit Insurance Act and the regulations promulgated thereunder.

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Any repeal or modification of this Article 10 shall not in any way diminish any rights to indemnification or advancement of expenses of such director or officer or the obligations of the Corporation arising hereunder with respect to events occurring, or claims made, while this Article 10 is in force.

**ARTICLE 11. Limitation of Liability.** An officer or director of the Corporation, as such, shall not be liable to the Corporation or its stockholders for money damages, except (A) to the extent that it is proved that the Person actually received an improper benefit or profit in money, property or services, for the amount of the benefit or profit in money, property or services actually received; or (B) to the extent that a judgment or other final adjudication adverse to the Person is entered in a proceeding based on a finding in the proceeding that the Person's action, or failure to act, was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding; or (C) to the extent otherwise provided by the MGCL. If the MGCL is amended to further eliminate or limit the personal liability of officers and directors, then the liability of officers and directors of the Corporation shall be eliminated or limited to the fullest extent permitted by the MGCL, as so amended.

Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation shall not adversely affect any right or protection of a director or officer of the Corporation existing at the time of such repeal or modification.

**ARTICLE 12**: **Selection of Forum.** Unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the MGCL, or (iv) any action asserting a claim governed by the internal affairs doctrine shall be a state or federal court located within the State of Maryland, in all cases subject to the court's having personal jurisdiction over the indispensible parties named as defendants. The provisions of this Article 12 shall not apply to claims arising under the federal securities laws. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article 12.

**ARTICLE 13. Amendment of the Articles of Incorporation.** The Corporation reserves the right to amend or repeal any provision contained in these Articles in the manner prescribed by the MGCL, including any amendment altering the terms or contract rights, as expressly set forth in these Articles, of any of the Corporation's outstanding stock by classification, reclassification or otherwise, and no stockholder approval shall be required if the approval of stockholders is not required for the proposed amendment or repeal by the MGCL, and all rights conferred upon stockholders are granted subject to this reservation.

The Board of Directors, pursuant to a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number), and without action by the stockholders, may amend these Articles to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Corporation has authority to issue.

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No proposed amendment or repeal of any provision of these Articles shall be submitted to a stockholder vote unless the Board of Directors shall have (1) approved the proposed amendment or repeal, (2) determined that it is advisable, and (3) directed that it be submitted for consideration at either an annual or special meeting of the stockholders pursuant to a resolution approved by the Board of Directors. Any proposed amendment or repeal of any provision of these Articles may be abandoned by the Board of Directors at any time before its effective time upon the adoption of a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number).

The amendment or repeal of any provision of these Articles shall be approved by at least two-thirds (2/3) of all votes entitled to be cast by the holders of shares of capital stock of the Corporation entitled to vote on the matter (after giving due effect to the provisions of Article 5 of these Articles), except that the proposed amendment or repeal of any provision of these Articles need only be approved by the vote of a majority of all the votes entitled to be cast by the holders of shares of capital stock of the Corporation entitled to vote on the matter (after giving due effect to the provisions of Article 5 of these Articles) if the amendment or repeal of such provision is approved by the Board of Directors pursuant to a resolution approved by at least two-thirds (2/3) of the Whole Board (rounded up to the nearest whole number).

Notwithstanding any other provision of these Articles or any provision of law that might otherwise permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the stock of the Corporation required by law or by these Articles, the affirmative vote of the holders of at least 80% of the voting power of all of the then-outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors (after giving effect to the provisions of Article 5), voting together as a single class, shall be required to amend or repeal this Article 13, Section C, D, E or F of Article 5, Article 7 (other than the removal of the list of initial directors), Article 8, Article 9, Article 10, Article 11 or Article 12.

**ARTICLE 14. Name and Address of Incorporator.** The name and mailing address of the sole incorporator are as follows:

Edward A. Quint

5335 Wisconsin Ave., N.W., Suite 780

Washington, D.C. 20015

*[Signature Page Immediately Follows]* 

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I, THE UNDERSIGNED, being the incorporator, for the purpose of forming a corporation under the laws of the State of Maryland, do make, file and record these Articles of Incorporation, do certify that the facts herein stated are true, and, accordingly, have hereto set my hand this 8th day of June, 2026.

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|:---|
| /s/ Edward A. Quint |
| Edward A. Quint<br> Incorporator |

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**Exhibit B** 

**NARRAGANSETT BANCORP, INC.** 

**BYLAWS** 

**ARTICLE I** 

**STOCKHOLDERS** 

**Section 1. Annual Meeting.** 

The Corporation shall hold an annual meeting of its stockholders to elect directors and to transact any other business within its powers, at such place, on such date and at such time as the Board of Directors shall fix. Failure to hold an annual meeting does not invalidate the Corporation's existence or affect any otherwise valid corporate act.

**Section 2. Special Meetings.** 

Special meetings of stockholders of the Corporation may be called by the President, the Chief Executive Officer or the Chairperson of the Board or by the Board of Directors pursuant to a resolution adopted by a majority of the total number of directors that the Corporation would have if there were no vacancies on the Board of Directors (hereinafter the "Whole Board"). Special meetings of the stockholders shall be called by the Secretary at the request of stockholders only on the written request of stockholders entitled to cast at least a majority of all the votes entitled to be cast at the meeting. Such written request shall state the purpose or purposes of the meeting and the matters proposed to be acted upon at the meeting, and shall be delivered at the principal office of the Corporation addressed to the President or the Secretary. The Secretary shall inform the stockholders who make the request of the reasonably estimated cost of preparing and mailing a notice of the meeting and, upon payment of these costs to the Corporation, notify each stockholder entitled to notice of the meeting. The Board of Directors shall have the sole power to fix (i) the record date for determining stockholders entitled to request a special meeting of stockholders and the record date for determining stockholders entitled to notice of and to vote at the special meeting and (ii) the date, time and place of the special meeting and the means of remote communication, if any, by which stockholders and proxy holders may be considered present in person and may vote at the special meeting.

**Section 3. Notice of Meetings; Adjournment or Postponement.** 

Not less than ten (10) nor more than ninety (90) days before each stockholders' meeting, the Secretary shall give notice of the meeting in writing or by electronic transmission to each stockholder entitled to vote at the meeting and to each other stockholder entitled to notice of the meeting. The notice shall state the time and place of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and may vote at the meeting, and, if the meeting is a special meeting, or notice of the purpose is required by statute, the purpose of the meeting. Notice is given to a stockholder when it is personally delivered to the stockholder, left at the stockholder's residence or usual place of business, mailed to the stockholder at the stockholder's address as it appears on the records of the Corporation, or transmitted to the stockholder by an electronic transmission to any address or number of the stockholder at which the stockholder receives electronic transmissions. If the

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Corporation has received a request from a stockholder that notice not be sent by electronic transmission, the Corporation may not provide notice to the stockholder by electronic transmission. Notwithstanding the foregoing provisions, each person who is entitled to notice waives notice if such person, before or after the meeting, delivers a written waiver or waiver by electronic transmission which is filed with the records of the stockholders' meetings, or if such person is present at the meeting in person or by proxy.

A meeting of stockholders convened on the date for which it was called may be adjourned from time to time without further notice to a date not more than one hundred twenty (120) days after the original record date. A meeting may be adjourned by a resolution adopted by a majority of the Whole Board or by the vote of a majority of the stockholders present at the meeting, whether or not a quorum is present at such meeting. At any adjourned meeting, any business may be transacted that might have been transacted at the original meeting.

A meeting of stockholders may be postponed to a date not more than one hundred twenty (120) days after the original record date. A meeting may be postponed by a resolution adopted by a majority of the Whole Board. Notice of the date, time and place to which the meeting is postponed shall be given not less than ten (10) days before such date and otherwise in the manner set forth in this Section 3. At any postponed meeting, any business may be transacted that might have been transacted at the meeting as originally scheduled.

If a meeting shall be adjourned or postponed to a date not more than one hundred twenty (120) days after the original record date, a new record date need not be established, and the original record date may be used for the purpose of determining which stockholders are entitled to notice of, and to vote at, the adjourned or postponed meeting. Any writing authorizing another person to act as proxy at a meeting of stockholders shall remain valid for use at any adjournment or postponement of such meeting unless such proxy is revoked or a later dated proxy is provided by such stockholder.

As used in these Bylaws, the term "electronic transmission" shall have the meaning given to such term by Section 1-101 of the Maryland General Corporation Law (the "MGCL") or any successor provision.

**Section 4. Quorum.** 

Unless the Articles of Incorporation provide otherwise, where a separate vote by a class or classes is required, a majority of the shares of such class or classes, present in person or represented by proxy, shall constitute a quorum entitled to take action with respect to that vote on that matter.

If a quorum shall fail to attend any meeting, the chairperson of the meeting or the holders of a majority of the shares of stock who are present at the meeting, in person or by proxy, may, in accordance with Section 3 of this Article I, adjourn the meeting to another place, date or time.

**Section 5. Organization and Conduct of Business.** 

The Chairperson of the Board of Directors or the Vice Chairperson of the Board, if any, or in their absence, the Chief Executive Officer, or in his or her absence, the President, or in their

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absence, such other person as may be designated by a majority of the Whole Board, shall call to order any meeting of the stockholders and act as chairperson of the meeting. In the absence of the Secretary, the secretary of the meeting shall be such person as the chairperson of the meeting appoints. The chairperson of any meeting of stockholders shall determine the order of business and the procedure at the meeting, including such regulation of the manner of voting and the conduct of discussion as seem to him or her to be in order.

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|:---|:---|
| **Section 6.** | **Advance Notice Provisions for Business to be Transacted at Annual Meetings and Elections of Directors.**  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At any annual meeting of the stockholders, unless otherwise required by law, only such business shall be conducted as shall have been brought before the meeting: (i) as specified in the Corporation's notice of the meeting; (ii) by or at the direction of the Board of Directors; or (iii) by any stockholder of the Corporation who (1) is a stockholder of record on the date such stockholder gives the notice provided for in this Section 6(a) and on the record date for the determination of stockholders entitled to vote at such annual meeting, and (2) complies with the notice procedures set forth in this Section 6(a). For business to be properly brought before an annual meeting by a stockholder pursuant to clause (iii) of the immediately preceding sentence, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation and such business must otherwise be a proper matter for action by stockholders.

To be timely, a stockholder's notice must be delivered or mailed to and received by the Secretary at the principal executive office of the Corporation not less than ninety (90) days nor more than one hundred (100) days before the anniversary of the prior year's annual meeting of stockholders; *provided*, *however,* that if the date of the annual meeting is advanced more than thirty (30) days before the anniversary of the prior year's annual meeting of stockholders, such written notice shall be timely only if delivered or mailed to and received by the Secretary of the Corporation at the principal executive office of the Corporation no earlier than the day on which public disclosure of the date of such annual meeting is first made and not later than the 10<sup>th</sup> day following the earlier of the day notice of the meeting was mailed to stockholders or such public disclosure was made.

The advance notice periods provided in this Section 6(a), once established by the initial notice or public disclosure of a date for the annual meeting of stockholders, shall remain in effect regardless of whether a subsequent notice or public disclosure shall provide that the meeting shall have been adjourned or that the date of the meeting shall have been postponed or otherwise changed from the date provided in the initial notice or public disclosure.

A stockholder's notice to the Secretary must set forth as to each matter such stockholder proposes to bring before the annual meeting: (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting; (ii) the name and address of such stockholder as they appear on the Corporation's books and of the beneficial owner, if any, on whose behalf the proposal is made; (iii) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such stockholder and such beneficial owner; (iv) a description of all arrangements or understandings between such stockholder and any other person or persons (including their names) in connection with the proposal of such business by such stockholder and any material

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interest of such stockholder in such business; and (v) a representation that such stockholder intends to appear in person or by proxy at the annual meeting to bring such business before the meeting.

Notwithstanding anything in these Bylaws to the contrary, no business shall be brought before or conducted at an annual meeting except in accordance with the provisions of this Section 6(a). The chairperson of the meeting shall, if the facts so warrant, determine and declare to the meeting that business was not properly brought before the meeting in accordance with the provisions of this Section 6(a) and, if he or she should so determine, he or she shall so declare to the meeting and any such business so determined to be not properly brought before the meeting shall not be transacted.

At any special meeting of the stockholders, only such business shall be conducted as shall have been brought before the meeting pursuant to the Corporation's notice of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Only persons who are nominated in accordance with the following procedures shall be eligible for election as directors of the Corporation. Nominations of persons for election to the Board of Directors of the Corporation may be made at a meeting of stockholders at which directors are to be elected only: (i) by or at the direction of the Board of Directors or (ii) by any stockholder of the Corporation who (1) is a stockholder of record on the date such stockholder gives the notice provided for in this Section 6(b) and on the record date for the determination of stockholders entitled to vote at such meeting and (2) complies with the notice procedures set forth in this Section 6(b) and the requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the rules and regulations promulgated thereunder. Such nominations, other than those made by or at the direction of the Board of Directors, shall be made by timely notice in writing to the Secretary of the Corporation.

To be timely, a stockholder's notice must be delivered or mailed to and received by the Secretary at the principal executive office of the Corporation not less than ninety (90) days nor more than one hundred (100) days before the anniversary of the prior year's annual meeting of stockholders; *provided*, *however,* that if the date of the annual meeting is advanced more than thirty (30) days before the anniversary of the prior year's annual meeting of stockholders, such written notice shall be timely only if delivered or mailed to and received by the Secretary of the Corporation at the principal executive office of the Corporation no earlier than the day on which public disclosure of the date of such annual meeting is first made and not later than the tenth (10<sup>th</sup>) day following the earlier of the day notice of the meeting was mailed to stockholders or such public disclosure was made.

The advance notice periods provided in this Section 6(b), once established by the initial notice or public disclosure of a date for the annual meeting of stockholders, shall remain in effect regardless of whether a subsequent notice or public disclosure shall provide that the meeting shall have been adjourned or that the date of the meeting shall have been postponed or otherwise changed from the date provided in the initial notice or public disclosure.

A stockholder's notice must be in writing and set forth (i) as to each person whom the stockholder proposes to nominate for election as a director, (a) all information relating to such person that would indicate such person's qualification to serve on the Board of Directors of the

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Corporation; (b) an affidavit that such person would not be disqualified under the provisions of Article II, Section 12 of these Bylaws; (c) such information relating to such person that is required to be disclosed in connection with solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act, or any successor rule or regulation; and (d) a written consent of each proposed nominee to be named as a nominee, including in proxy materials relating to the meeting to nominate the nominee(s), and to serve as a director if elected; and (ii) as to the stockholder giving the notice: (a) the name and address of such stockholder as they appear on the Corporation's books and of the beneficial owner, if any, on whose behalf the nomination is made; (b) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such stockholder and such beneficial owner; (c) a description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made by such stockholder; (d) a representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the persons named in its notice; (e) whether such stockholder intends to solicit proxies in support of director nominees other than the Corporation's nominees in accordance with the Exchange Act and the rules and regulations promulgated thereunder; and (f) any other information relating to such stockholder that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Regulation 14A under the Exchange Act or any successor rule or regulation. Upon request by the Corporation, if a stockholder provides notice of its intent to solicit proxies in support of director nominees other than the Corporation's nominees in accordance with the Exchange Act and the rules and regulations promulgated thereunder, the stockholder shall deliver to the Corporation, no later than five (5) business days prior to the applicable meeting of stockholders, reasonable evidence that it has met the requirements of the Exchange Act and the rules and regulations promulgated thereunder. No person shall be eligible for election as a director of the Corporation unless nominated in accordance with the provisions of this Section 6(b). The chairperson of the meeting shall, if the facts so warrant, determine that a nomination was not made in accordance with such provisions and, if he or she should so determine, he or she shall so declare to the meeting and the defective nomination shall be disregarded. Furthermore, unless otherwise required by law, if any stockholder (i) provides notice pursuant to Rule 14a-19(b) under the Exchange Act and (ii) subsequently fails to comply with any requirements of Rule 14a-19 under the Exchange Act or any other rules or regulations thereunder, then the Corporation shall disregard any proxies or votes solicited for such nominees and such nomination shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of subsections (a) and (b) of this Section 6, the term "public disclosure" shall mean disclosure (i) in a press release issued through a nationally-recognized news service, (ii) in a document publicly filed or furnished by the Corporation with the United States Securities and Exchange Commission or (iii) on a website maintained by the Corporation. The timely notice requirements provided in subsections (a) and (b) of this Section 6 shall apply to all stockholder nominations for election as a director and all stockholder proposals for business to be conducted at an annual meeting regardless of whether such proposal is submitted for inclusion in the Corporation's proxy materials pursuant to Rule 14a-8 of Regulation 14A under the Exchange Act or whether such nomination is submitted for inclusion in the Corporation's proxy materials pursuant to Rule 14a-19 of Regulation 14A under the Exchange Act.

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**Section 7. Proxies and Voting.** 

Unless the Articles of Incorporation provide for a greater or lesser number of votes per share or limits or denies voting rights, each outstanding share of capital stock, regardless of class, is entitled to one vote on each matter submitted to a vote at a meeting of stockholders; however, a share is not entitled to be voted if any installment payable on it is overdue and unpaid. In all elections for directors, directors shall be determined by a plurality of the votes cast, and except as otherwise required by law or as provided in the Articles of Incorporation, all other matters voted on by stockholders shall be determined by a majority of the votes cast on the matter.

A stockholder may vote the capital stock the stockholder owns of record either in person or by proxy. A stockholder may sign a writing authorizing another person to act as proxy. Signing may be accomplished by the stockholder or the stockholder's authorized agent signing the writing or causing the stockholder's signature to be affixed to the writing by any reasonable means, including facsimile signature. A stockholder may authorize another person to act as proxy by transmitting, or authorizing the transmission of, an authorization for the person to act as the proxy to the person authorized to act as proxy or to any other person authorized to receive the proxy authorization on behalf of the person authorized to act as the proxy, including a proxy solicitation firm or proxy support service organization. The authorization may be transmitted by a telegram, cablegram, datagram, electronic mail or any other electronic or telephonic means. Unless a proxy provides otherwise, a proxy is not valid more than 11 months after its date. A proxy is revocable by a stockholder at any time without condition or qualification unless the proxy states that it is irrevocable and the proxy is coupled with an interest. A proxy may be made irrevocable for as long as it is coupled with an interest. The interest with which a proxy may be coupled includes an interest in the capital stock to be voted under the proxy or another general interest in the Corporation or its assets or liabilities.

**Section 8. Conduct of Voting** 

The Board of Directors shall, in advance of any meeting of stockholders, appoint one or more persons as inspectors of election, to act at the meeting or any adjournment thereof and make a written report thereof, in accordance with applicable law. If one or more inspectors are not so elected, the chairperson of the meeting shall make such appointment at the meeting of stockholders. At all meetings of stockholders, the proxies and ballots shall be received, and all questions relating to the qualification of voters and the validity of proxies and the acceptance or rejection of votes shall be decided or determined by the inspector of election. All voting, including on the election of directors but excepting where otherwise required by law, may be by a voice vote; provided, however, that upon demand therefor by a stockholder entitled to vote or his or her proxy or the chairperson of the meeting, a written vote shall be taken. Every written vote shall be taken by ballot, each of which shall state the name of the stockholder or proxy voting and such other information as may be required under the procedure established for the meeting. No candidate for election as a director at a meeting shall serve as an inspector at such meeting.

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**Section 9. Control Share Acquisition Act.** 

Notwithstanding any other provision of the Articles of Incorporation or these Bylaws, Title 3, Subtitle 7 of the MGCL (or any successor statute) shall not apply to any acquisition by any person of shares of capital stock of the Corporation. This Section 9 may be repealed by a majority of the Whole Board, in whole or in part, at any time, whether before or after an acquisition of Control Shares (as defined in Section 3-701(d) of the MGCL, or any successor provision) and, upon such repeal, may, to the extent provided by any successor bylaw, apply to any prior or subsequent Control Share Acquisition (as defined in Section 3-701(d) of the MGCL, or any successor provision).

**ARTICLE II** 

**BOARD OF DIRECTORS** 

**Section 1. General Powers, Number and Term of Office.** 

The business and affairs of the Corporation shall be managed under the direction of the Board of Directors. The number of directors of the Corporation shall, by virtue of the Corporation's election made hereby to be governed by Section 3-804(b) of the MGCL, be fixed from time to time exclusively by vote of the Board of Directors; provided, however, that such number shall never be less than the minimum number of directors required by the MGCL now or hereafter in force. The Board of Directors shall annually elect a Chairperson of the Board from among its members and shall designate the Chairperson of the Board or his or her designee to preside at its meetings. The Board of Directors may also annually elect a Vice Chairperson. In the absence of the Chairperson of the Board, the Vice Chairperson of the Board shall preside at the meetings of the Board of Directors. In the absence of the Vice Chairperson of the Board, the Chief Executive Officer shall preside at the meetings of the Board of Directors. In the absence of the Chief Executive Officer, the President shall preside at the meetings of the Board of Directors, and in his or her absence such other person as may be designated by a majority of the Whole Board shall preside at the meetings of the Board of Directors.

The directors, other than those who may be elected by the holders of any series of preferred stock of the Corporation, shall be divided into three classes, as nearly equal in number as reasonably possible, with the term of office of the first class to expire at the first annual meeting of stockholders, the term of office of the second class to expire at the annual meeting of stockholders one year thereafter and the term of office of the third class to expire at the annual meeting of stockholders two years thereafter, with each director to hold office until his or her successor shall have been duly elected and qualified. At each annual meeting of stockholders, commencing with the first annual meeting, directors elected to succeed those directors whose terms expire shall be elected for a term of office to expire at the third succeeding annual meeting of stockholders after their election or for such shorter period of time as the Board of Directors may determine, with each director to hold office until his or her successor shall have been duly elected and qualified.

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**Section 2. Vacancies and Newly Created Directorships.** 

By virtue of the Corporation's election made hereby to be subject to Section 3-804(c) of the MGCL, any vacancies in the Board of Directors resulting from an increase in the size of the Board of Directors or the death, resignation or removal of a director may be filled only by the affirmative vote of two-thirds (2/3) of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy shall hold office for the remainder of the full term of the class of directors in which the vacancy occurred and until a successor is elected and qualifies. No decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

**Section 3. Regular Meetings.** 

Regular meetings of the Board of Directors shall be held at such place or places or by means of remote communication, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. A notice of each regular meeting shall not be required. Any regular meeting of the Board of Directors may adjourn from time to time to reconvene at the same or some other place, and no notice need be given of any such adjourned meeting other than by announcement.

**Section 4. Special Meetings.** 

Special meetings of the Board of Directors may be called by one-third (1/3) of the directors then in office (rounded up to the nearest whole number), by the Chairperson of the Board, by the Vice Chairperson of the Board or by the Chief Executive Officer, and shall be held at such place or by means of remote communication, on such date, and at such time as they or he or she shall fix. Notice of the place, date, and time of each such special meeting shall be given to each director who has not waived notice by mailing and post-marking written notice not less than five (5) days before the meeting, or by facsimile or other electronic transmission of the same not less than twenty-four (24) hours before the meeting. Any director may waive notice of any special meeting, either before or after such meeting, by delivering a written waiver or a waiver by electronic transmission that is filed with the records of the meeting. Attendance of a director at a special meeting shall constitute a waiver of notice of such meeting, except where the director attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted nor the purpose of any special meeting of the Board of Directors need be specified in the notice of such meeting. Any special meeting of the Board of Directors may adjourn from time to time to reconvene at the same or some other place, and no notice need be given of any such adjourned meeting other than by announcement.

**Section 5. Quorum.** 

At any meeting of the Board of Directors, a majority of the Whole Board shall constitute a quorum for all purposes. If a quorum shall fail to attend any meeting, a majority of those present may adjourn the meeting to another place, date, or time, without further notice or waiver thereof.

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**Section 6. Participation in Meetings By Conference Telephone or by Other Electronic Communications Equipment.** 

Members of the Board of Directors, or of any committee thereof, may participate in a meeting of such Board or committee by means of a conference telephone or by means of other electronic communications equipment if all persons participating in the meeting can hear each other at the same time. Such participation shall constitute presence in person at such meeting.

**Section 7. Conduct of Business.** 

At any meeting of the Board of Directors, business shall be transacted in such order and manner as the Board may from time to time determine, and all matters shall be determined by the vote of a majority of the directors present, except as otherwise provided in these Bylaws or the Articles of Incorporation or required by law. Action may be taken by the Board of Directors without a meeting if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each member of the Board of Directors and filed in paper or electronic form with the minutes of proceedings of the Board of Directors.

**Section 8. Powers.** 

All powers of the Corporation may be exercised by or under the authority of the Board of Directors except as provided by the Articles of Incorporation. Consistent with the foregoing, the Board of Directors shall have, among other powers, the unqualified power:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To declare dividends from time to time in accordance with law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To purchase or otherwise acquire any property, rights or privileges on such terms as it shall determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To authorize the creation, making and issuance, in such form as it may determine, of written obligations of
every kind, negotiable or non-negotiable, secured or unsecured, and to do all things necessary in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To remove any officer of the Corporation with or without cause, and from time to time to devolve the powers and
duties of any officer upon any other person for the time being;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) To confer upon any officer of the Corporation the power to appoint, remove and suspend subordinate officers,
employees and agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To adopt from time to time such stock, option, stock purchase, bonus or other compensation plans for directors,
officers, employees and agents of the Corporation and its subsidiaries as it may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) To adopt from time to time such insurance, retirement, and other benefit plans for directors, officers,
employees and agents of the Corporation and its subsidiaries as it may determine; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) To adopt from time to time regulations, not inconsistent with these Bylaws, for the management of the
Corporation's business and affairs.

**Section 9. Compensation of Directors.** 

Directors, as such, may receive, pursuant to resolution of the Board of Directors, fixed fees and other compensation for their services as directors, including, without limitation, their services as members of committees of the Board of Directors.

**Section 10. Resignation.** 

Any director may resign at any time by giving written notice of such resignation to the Chairperson, the President or the Secretary at the principal office of the Corporation. Unless otherwise specified therein, such resignation shall take effect upon receipt thereof.

**Section 11. Presumption of Assent.** 

A director of the Corporation who is present at a meeting of the Board of Directors at which action on any corporate matter is taken shall be presumed to have assented to such action unless such director announces his or her dissent at the meeting and (a) such director's dissent is entered in the minutes of the meeting, (b) such director files his or her written dissent to such action with the secretary of the meeting before the adjournment thereof, or (c) such director forwards his or her written dissent within twenty-four (24) hours after the meeting is adjourned, by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the secretary of the meeting or the Secretary of the Corporation. Such right to dissent shall not apply to a director who voted in favor of such action or failed to make his or her dissent known at the meeting.

**Section 12. Director Qualifications.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No person shall be eligible for election or appointment to the Board of Directors: (i) if a financial or securities regulatory agency has, within the past ten years, issued a cease and desist, consent or other formal order, other than a civil money penalty, against such person, which order is subject to public disclosure by such agency; (ii) if such person has been convicted of a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under state or federal law; (iii) if such person is currently charged in any information, indictment, or other complaint with the commission of or participation in such a crime; or (iv) other than the persons appointed as initial directors in connection with the formation of the Corporation and other than persons who are also executive officers of the Corporation or of the Corporation's banking subsidiary, BayCoast Bank, if such person did not, at the time of his or her first election or appointment to the Board of Directors, maintain his or her principal residence (as determined by reference to such person's most recent tax returns, copies of which shall be provided to the Corporation for the sole purpose of determining compliance with this clause (iv)) in the Commonwealth of Massachusetts or in a county where BayCoast Bank maintains a banking office for a period of at least one (1) year before the date of his or her purported nomination, election or appointment to the Board of Directors. No person may serve on the Board of Directors if such person is: (w) at the same time, a director, officer, employee or 10% or more stockholder of a bank, savings institution, credit union, mortgage

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banking company, consumer loan company or similar organization, other than a subsidiary of the Corporation, that engages in financial services related business activities or solicits customers, whether through a physical presence or electronically, in the same market area as the Corporation or any of its subsidiaries; (x) does not agree in writing to comply with all of the Corporation's policies applicable to directors including but not limited to its confidentiality policy and confirm in writing his or her qualifications hereunder; (y) is a party to any agreement, understanding or arrangement with a party other than the Corporation or a subsidiary that (1) provides him or her with material benefits which are tied to or contingent on the Corporation entering into a merger, sale of control or similar transaction in which it is not the surviving institution, (2) materially limits his or her voting discretion as a member of the Board of Directors of the Corporation, or (3) materially impairs his or her ability to discharge his or her fiduciary duties with respect to the fundamental strategic direction of the Corporation; or (z) has lost more than one election for service as a director of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors shall have the power to construe and apply the provisions of this Section 12 and to make all determinations necessary or desirable to implement such provisions.

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|:---|:---|
| **Section** | **13. Attendance at Board Meetings.**  |

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The Board of Directors shall have the right to remove any director from the board upon a director's unexcused absence from (i) three consecutive regularly scheduled meetings of the Board of Directors, or (ii) three regularly scheduled meetings of the Board of Directors in any fiscal year of the Corporation.

**ARTICLE III** 

**COMMITTEES** 

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|:---|:---|
| **Section** | **1. Committees of the Board of Directors.**  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General Provisions.* The Board of Directors may appoint from among its members an audit committee, a compensation committee, a nominating and corporate governance committee, and such other committees as the Board of Directors deems necessary or desirable. The Board of Directors may delegate to any committee so appointed any of the powers and authorities of the Board of Directors to the fullest extent permitted by the MGCL and any other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Composition.* Each committee shall be composed of one or more directors or any other number of members specified in these Bylaws or required by applicable regulations or stock exchange rules. The Chairperson of the Board may recommend committees, committee memberships, and committee chairs to the Board of Directors. The Board of Directors shall have the power at any time to appoint the chairperson and the members of any committee, change the membership of any committee, to fill all vacancies on committees, to designate alternate members to replace or act in the place of any absent or disqualified member of a committee, or to dissolve any committee. A member of a committee may resign from that committee at any time by giving written notice of such resignation to the Chairperson of the Board. Unless otherwise specified therein, such resignation from the committee shall take effect upon receipt thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Issuance of Capital Stock.* If the Board of Directors has given general authorization for the issuance of capital stock providing for or establishing a method or procedure for determining the maximum number of shares to be issued, a committee of the Board of Directors, in accordance with that general authorization or any stock option or other plan or program adopted by the Board of Directors, may authorize or fix the terms of stock subject to classification or reclassification and the terms on which any capital stock may be issued, including all terms and conditions required or permitted to be established or authorized by the Board of Directors. Any committee so designated may exercise the power and authority of the Board of Directors if the resolution that designated the committee or a supplemental resolution of the Board of Directors shall so provide.

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|:---|:---|
| **Section** | **2. Conduct of Business.**  |

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Each committee may determine the procedural rules for meeting and conducting its business and shall act in accordance therewith, except as otherwise provided herein or required by law. Adequate provision shall be made for notice to members of all meetings; one-third (1/3) of the members shall constitute a quorum unless the committee shall consist of one or two members, in which event one member shall constitute a quorum; and all matters shall be determined by a majority vote of the members present. Action may be taken by any committee without a meeting if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each member of the committee and filed in paper or electronic form with the minutes of the proceedings of such committee. The members of any committee may conduct any meeting thereof by conference telephone or other communications equipment in accordance with the provisions of Section 6 of Article II.

**ARTICLE IV** 

**OFFICERS** 

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|:---|:---|
| **Section** | **1. Generally.**  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors as soon as may be practicable after the annual meeting of stockholders shall choose a Chairperson of the Board, a Chief Executive Officer, a President, one or more Vice Presidents, a Secretary and a Chief Financial Officer/Treasurer and from time to time may choose such other officers as it may deem proper. Any number of offices may be held by the same person, except that no person may concurrently serve as both President and Vice President of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term of office of all officers shall be until the next annual election of officers and until their respective successors are chosen, but any officer may be removed from office at any time by the affirmative vote of a majority of the Whole Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All officers chosen by the Board of Directors shall each have such powers and duties as generally pertain to their respective offices, subject to the specific provisions of this Article IV. Such officers shall also have such powers and duties as from time to time may be conferred by the Board of Directors or by any committee thereof.

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|:---|:---|
| **Section** | **2. Chairperson of the Board of Directors.**  |

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The Chairperson of the Board of Directors of the Corporation shall perform all duties and have all powers which are commonly incident to the office of Chairperson of the Board or which are delegated to him or her by the Board of Directors. He or she shall have power to sign all stock certificates, contracts and other instruments of the Corporation that are authorized.

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|:---|:---|
| **Section** | **3. Vice Chairperson of the Board of Directors.**  |

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If appointed, the Vice Chairperson of the Board of Directors of the Corporation shall perform all duties and have all powers which are commonly incident to the office of Chairperson of the Board, with such duties to be performed and powers to be held in the absence of the Chairperson of the Board, or which are delegated to him or her by the Board of Directors.

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|:---|:---|
| **Section** | **4. Chief Executive Officer.**  |

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The Chief Executive Officer, subject to the control of the Board of Directors, shall serve in general executive capacity and have general power over the management and oversight of the administration and operation of the Corporation's business and general supervisory power and authority over its policies and affairs. The Chief Executive Officer shall see that all orders and resolutions of the Board of Directors and of any committee thereof are carried into effect.

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|:---|:---|
| **Section** | **5. President.**  |

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The President shall perform the duties of the Chief Executive Officer in the Chief Executive Officer's absence or during his or her disability to act. In addition, the President shall perform the duties and exercise the powers usually incident to their respective office and/or such other duties and powers as may be properly assigned to the President from time to time by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer.

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|:---|:---|
| **Section** | **6. Vice President.**  |

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The Vice President or Vice Presidents (including Executive Vice Presidents or other levels of Vice President designated by the Board of Directors), if any, shall perform the duties of the Chief Executive Officer in the absence of both the Chief Executive Officer and the President, or during their disability to act. In addition, the Vice Presidents shall perform the duties and exercise the powers usually incident to their respective office and/or such other duties and powers as may be properly assigned to the Vice Presidents from time to time by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer.

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|:---|:---|
| **Section** | **7. Secretary.**  |

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The Secretary or an Assistant Secretary shall issue notices of meetings, shall keep the minutes of meetings, shall have charge of the seal and the corporate books, shall perform such other duties and exercise such other powers as are usually incident to such offices and/or such other duties and powers as are properly assigned thereto by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer.

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|:---|:---|
| **Section** | **8. Chief Financial Officer/Treasurer.**  |

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The Chief Financial Officer/Treasurer shall have charge of all monies and securities of the Corporation, other than monies and securities of any division of the Corporation that has a treasurer or financial officer appointed by the Board of Directors, and shall keep regular books of account. The funds of the Corporation shall be deposited in the name of the Corporation by the Chief Financial Officer/Treasurer with such banks or trust companies or other entities as the Board of Directors from time to time shall designate. The Chief Financial Officer/Treasurer shall sign or countersign such instruments as require his or her signature, shall perform all such duties and have all such powers as are usually incident to such office and/or such other duties and powers as are properly assigned to him or her by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer, and may be required to give bond for the faithful performance of his or her duties in such sum and with such surety as may be required by the Board of Directors.

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|:---|:---|
| **Section** | **9. Other Officers.**  |

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The Board of Directors may designate and fill such other offices in its discretion and the persons holding such other offices shall have such powers and shall perform such duties as the Board of Directors or Chief Executive Officer may from time to time assign.

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|:---|:---|
| **Section** | **10. Action with Respect to Securities of Other Corporations.**  |

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Securities of other corporations or associations, registered in the name of the Corporation, may be voted by the Chief Executive Officer, the President, a Vice President, or a proxy appointed by either of them. The Board of Directors, however, may by resolution appoint some other person to vote such shares, in which case such person shall be entitled to vote such shares upon the production of a certified copy of such resolution.

**ARTICLE V** 

**STOCK** 

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|:---|:---|
| **Section** | **1. Certificates of Stock.**  |

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The Board of Directors may determine to issue certificated or uncertificated shares of capital stock and other securities of the Corporation. For certificated stock, each stockholder is entitled to certificates which represent and certify the shares of stock the stockholder holds in the Corporation. Each stock certificate shall include on its face the name of the Corporation, the name of the stockholder or other person to whom it is issued, and the class of stock and number of shares it represents. It shall also include on its face or back (a) a statement of any restrictions on transferability and a statement of the designations and any preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption of the stock of each class which the Corporation is authorized to issue, of the differences in the relative rights and preferences between the shares of each series of preferred stock which the Corporation is authorized to issue, to the extent they have been set, and of the authority of the Board of Directors to set the relative rights and preferences of subsequent series of preferred stock or (b) a statement which provides in substance that the Corporation will furnish a full statement of such information to any stockholder on request and without charge.

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Such request may be made to the Secretary or to the Corporation's transfer agent. Upon the issuance of uncertificated shares of capital stock, the Corporation shall send the stockholder a written statement of the same information required above with respect to stock certificates. Each stock certificate shall be in such form, not inconsistent with law or with the Articles of Incorporation, as shall be approved by the Board of Directors or any officer or officers designated for such purpose by resolution of the Board of Directors. Each stock certificate shall be signed by the Chairperson of the Board, the President, or a Vice-President, and countersigned by the Secretary, an Assistant Secretary, the Treasurer, or an Assistant Treasurer. Each certificate may be sealed with the actual corporate seal or a facsimile of it or in any other form and the signatures may be either manual or facsimile signatures. A certificate is valid and may be issued whether or not an officer who signed it is still an officer when it is issued. A certificate may not be issued until the stock represented by it is fully paid.

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|:---|:---|
| **Section** | **2. Transfers of Stock.**  |

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Transfers of capital stock shall be made only upon the transfer books of the Corporation kept at an office of the Corporation or by transfer agents designated to transfer shares of the capital stock of the Corporation. Except where a certificate is issued in accordance with Section 4 of Article V of these Bylaws, an outstanding certificate for the number of shares involved shall be surrendered for cancellation before a new certificate is issued therefor.

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|:---|:---|
| **Section** | **3. Record Dates or Closing of Transfer Books.**  |

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The Board of Directors may, and shall have the power to, set a record date or direct that the stock transfer books be closed for a stated period for the purpose of making any proper determination with respect to stockholders, including which stockholders are entitled to notice of a meeting, vote at a meeting, receive a dividend, or be allotted other rights. The record date may not be before the close of business on the day the record date is fixed nor, subject to Section 3 of Article I of these Bylaws, more than ninety (90) days before the date on which the action requiring the determination will be taken; the transfer books may not be closed for a period longer than twenty (20) days; and, in the case of a meeting of stockholders, the record date or the closing of the transfer books shall be at least ten (10) days before the date of the meeting. Any shares of the Corporation's own stock acquired by the Corporation between the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders and the time of the meeting may be voted at the meeting by the holder of record as of the record date and shall be counted in determining the total number of outstanding shares entitled to be voted at the meeting.

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|:---|:---|
| **Section** | **4. Lost, Stolen or Destroyed Certificates.**  |

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The Board of Directors of the Corporation may determine the conditions for issuing a new stock certificate in place of one which is alleged to have been lost, stolen, or destroyed, or the Board of Directors may delegate such power to any officer or officers of the Corporation or to the transfer agent designated to transfer shares of the stock of the Corporation. In their discretion, the Board of Directors or such officer or officers may require the owner of the certificate to give a bond, with sufficient surety, to indemnify the Corporation against any loss or claim arising as a result of the issuance of a new certificate. In their discretion, the Board of

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Directors or such officer or officers may refuse to issue such new certificate without the order of a court having jurisdiction over the matter.

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|:---|:---|
| **Section** | **5. Stock Ledger.**  |

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The Corporation shall maintain a stock ledger which contains the name and address of each stockholder and the number of shares of stock of each class which the stockholder holds. The stock ledger may be in written form or in any other form which can be converted within a reasonable time into written form for visual inspection. The original or a duplicate of the stock ledger shall be kept at the offices of a transfer agent for the particular class of stock or, if none, at the principal executive office of the Corporation.

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|:---|:---|
| **Section** | **6. Regulations.**  |

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The issue, transfer, conversion and registration of certificates of stock shall be governed by such other regulations as the Board of Directors may establish.

**ARTICLE VI** 

**MISCELLANEOUS** 

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|:---|:---|
| **Section** | **1. Facsimile Signatures.**  |

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In addition to the provisions for use of facsimile signatures elsewhere specifically authorized in these Bylaws, facsimile signatures of any officer or officers of the Corporation may be used whenever and as authorized by the Board of Directors or a committee thereof.

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|:---|:---|
| **Section** | **2. Corporate Seal.**  |

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The Board of Directors may provide a suitable seal, bearing the name of the Corporation, which shall be in the charge of the Secretary. The Board of Directors may authorize one or more duplicate seals and provide for the custody thereof. If the Corporation is required to place its corporate seal to a document, it is sufficient to meet the requirement of any law, rule, or regulation relating to a corporate seal to place the word "(seal)" adjacent to the signature of the person authorized to sign the document on behalf of the Corporation.

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|:---|:---|
| **Section** | **3. Books and Records.**  |

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The Corporation shall keep correct and complete books and records of its accounts and transactions and minutes of the proceedings of its stockholders and Board of Directors and of any committee when exercising any of the powers of the Board of Directors. The books and records of the Corporation may be in written form or in any other form which can be converted within a reasonable time into written form for visual inspection. Minutes shall be recorded in written form but may be maintained in the form of a reproduction. The original or a certified copy of these Bylaws shall be kept at the principal office of the Corporation.

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|:---|:---|
| **Section** | **4. Reliance Upon Books, Reports and Records.**  |

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Each director, each member of any committee designated by the Board of Directors, and each officer and agent of the Corporation shall, in the performance of his or her duties, in addition to any protections conferred upon him or her by law, be fully protected in relying in good faith upon the books of account or other records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of its officers or employees, or committees of the Board of Directors so designated, or by any other person as to matters which such director, committee member, officer or agent reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.

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|:---|:---|
| **Section** | **5. Fiscal Year.**  |

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The fiscal year of the Corporation shall commence on the first day of January and end on the last day of December in each year.

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|:---|:---|
| **Section** | **6. Time Periods.**  |

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In applying any provision of these Bylaws that requires that an act be done or not be done a specified number of days before an event or that an act be done during a period of a specified number of days before an event, calendar days shall be used, the day of the doing of the act shall be excluded and the day of the event shall be included.

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|:---|:---|
| **Section** | **7. Checks, Drafts, Etc.**  |

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All checks, drafts and orders for the payment of money, notes and other evidences of indebtedness, issued in the name of the Corporation, shall be signed by any officer, employee or agent of the Corporation that is authorized by the Board of Directors.

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|:---|:---|
| **Section** | **8. Mail.**  |

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Any notice or other document that is required by these Bylaws to be mailed shall be deposited in the United States mail, postage prepaid.

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|:---|:---|
| **Section** | **9. Contracts and Agreements.**  |

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To the extent permitted by applicable law, and except as otherwise prescribed by the Articles of Incorporation or these Bylaws, the Board of Directors may authorize any officer, employee or agent of the Corporation to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation. Such authority may be general or confined to specific instances. A person who holds more than one office in the Corporation may not act in more than one capacity to execute, acknowledge, or verify an instrument required by law to be executed, acknowledged, or verified by more than one officer.

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**ARTICLE VII** 

**AMENDMENTS** 

These Bylaws may be adopted, amended or repealed as provided in the Articles of Incorporation.

## Exhibit 3.1

**Exhibit 3.1** 

**ARTICLES OF INCORPORATION** 

**NARRAGANSETT BANCORP, INC.** 

The undersigned, Edward A. Quint, whose address is 5335 Wisconsin Avenue, N.W., Suite 780, Washington, D.C. 20015, being at least eighteen years of age, acting as incorporator, does hereby form a corporation under the general laws of the State of Maryland, having the following Articles of Incorporation (the "Articles"):

**ARTICLE 1. Name.** The name of the corporation is Narragansett Bancorp, Inc. (herein, the "Corporation").

**ARTICLE 2. Principal Office.** The address of the principal office of the Corporation in the State of Maryland is c/o CSC-Lawyers Incorporating Service Company, 7 St. Paul Street, Suite 820, Baltimore, Maryland 21202.

**ARTICLE 3. Purpose.** The purpose for which the Corporation is formed is to engage in any lawful act or activity for which corporations may be organized under the general laws of the State of Maryland as now or hereafter in force.

**ARTICLE 4. Resident Agent.** The name and address of the registered agent of the Corporation in the State of Maryland is CSC-Lawyers Incorporating Service Company, 7 St. Paul Street, Suite 820, Baltimore, Maryland 21202. Said resident agent is a Maryland corporation.

**ARTICLE 5. Capital Stock** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Authorized Stock.** The total number of shares of capital stock of all classes that the Corporation has authority to issue is sixty-five million (65,000,000) shares, consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Sixty million (60,000,000) shares of common stock, par value one cent ($0.01) per share (the "Common Stock"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Five million (5,000,000) shares of preferred stock, par value one cent ($0.01) per share (the "Preferred Stock").

The aggregate par value of all the authorized shares of capital stock is six hundred fifty thousand dollars ($650,000.00). Except to the extent required by governing law, rule or regulation, the shares of capital stock may be issued from time to time by the Board of Directors without further approval of the stockholders of the Corporation. The Corporation shall have the authority to purchase its capital stock out of funds lawfully available therefor, which funds shall include, without limitation, the Corporation's unreserved and unrestricted capital surplus. The Board of Directors, pursuant to a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number), and without action by the stockholders, may amend these Articles to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Corporation has authority to issue. For the purposes of these Articles, the term "Whole Board" shall mean the total number of directors that the

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Corporation would have if there were no vacancies on the Board of Directors at the time any such resolution is presented to the Board of Directors for adoption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Common Stock.** Except as provided under the terms of any series of Preferred Stock and as limited by Section D of this Article 5, the exclusive voting power shall be vested in the Common Stock. Except as otherwise provided in these Articles, each holder of the Common Stock shall be entitled to one vote for each share of Common Stock standing in the holder's name on the books of the Corporation. Subject to any rights and preferences of any series of Preferred Stock, holders of Common Stock shall be entitled to such dividends as may be declared by the Board of Directors out of funds lawfully available therefor. Upon the liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or involuntary, holders of Common Stock shall be entitled to receive all the remaining assets of the Corporation available for distribution to its stockholders ratably in proportion to the number of shares held by them, respectively, after: (i) payment or provision for payment of the Corporation's debts and liabilities; (ii) distributions or provisions for distributions to holders of any class or series of stock having a preference over the Common Stock in the liquidation, dissolution or winding up of the Corporation; and (iii) distributions or provision for distributions in settlement of the Liquidation Account established by the Corporation as described in Section G of this Article 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Preferred Stock.** The Board of Directors is hereby expressly authorized, subject to any limitations prescribed by law, to provide for the issuance of the shares of Preferred Stock in series, to establish from time to time the number of shares to be included in each such series, and to fix the preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications and terms and conditions of redemption of the shares of each such series. The number of authorized shares of the Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the Common Stock, without a vote of the holders of the Preferred Stock, or of any series thereof, unless a vote of any such holders is required by law or pursuant to the terms of such Preferred Stock. The power of the stockholders to increase or decrease the authorized shares of the Preferred Stock shall not limit any of the powers of the Board of Directors provided under these Articles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Restrictions on Voting Rights of the Corporation's Equity Securities.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Notwithstanding any other provision of these Articles, in no event shall the record owner (or if more than one record owner, all such record owners taken as a group) of any outstanding Common Stock that is beneficially owned, directly or indirectly, by a Person who, as of any record date for the determination of stockholders entitled to vote on any matter, beneficially owns in excess of 10% of the then-outstanding shares of Common Stock (the "Limit"), be entitled, or permitted to any vote in respect of the shares held in excess of the Limit. The number of votes that may be cast by any particular record owner by virtue of the provisions hereof in respect of Common Stock beneficially owned by such Person owning shares in excess of the Limit (a "Holder in Excess") shall be a number equal to the total number of votes that a single record owner of all Common Stock owned by such Holder in Excess would be entitled to cast after giving effect to the provisions hereof, multiplied by a fraction, the numerator of which is the number of shares of such class or series that are both (i) beneficially owned by such Holder in Excess and (ii) owned of record by such particular record owner, and the denominator of

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which is the total number of shares of Common Stock beneficially owned by such Holder in Excess. The provisions of this Section D of this Article 5 shall not be applicable to any mutual holding company parent of the Corporation. The provisions of this Section D of this Article 5 shall also not be applicable if, before the Holder in Excess acquired beneficial ownership of such shares in excess of the Limit, such acquisition was approved by a majority of the "Unaffiliated Directors." For this purpose, the term "Unaffiliated Director" means any member of the Board of Directors who is unaffiliated with the Holder in Excess and was a member of the Board of Directors before the time that the Holder in Excess became such, and any director who is thereafter chosen to fill any vacancy on the Board of Directors and who is elected and who, in either event, is unaffiliated with the Holder in Excess and in connection with his or her initial assumption of office is recommended for appointment or election by a majority of the Unaffiliated Directors then serving on the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The following definitions shall apply to this Section D of this Article 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An "affiliate" of a specified Person shall mean a Person that directly, or indirectly through one
or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Beneficial ownership" shall be determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Securities Exchange Act of 1934 (or any successor rule or statutory provision), or, if said Rule 13d-3 shall be
rescinded and there shall be no successor rule or statutory provision thereto, pursuant to said Rule 13d-3 as in effect on December 31, 2023; provided, however, that a Person shall, in any event, also be
deemed the "beneficial owner" of any Common Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) that such Person or any of its affiliates beneficially owns, directly or indirectly; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) that such Person or any of its affiliates has (i) the right to acquire (whether such right is exercisable
immediately or only after the passage of time), pursuant to any agreement, arrangement or understanding (but shall not be deemed to be the beneficial owner of any voting shares solely by reason of an agreement, contract, or other arrangement with
the Corporation to effect any transaction of the type described in clause (i) or (ii) of the first sentence of Article 9 hereof) or upon the exercise of conversion rights, exchange rights, warrants, or options or otherwise, or (ii) sole or
shared voting or investment power with respect thereto pursuant to any agreement, arrangement, understanding, relationship or otherwise (but shall not be deemed to be the beneficial owner of any voting shares solely by reason of a revocable proxy
granted for a particular meeting of stockholders, pursuant to a public solicitation of proxies for such meeting, with respect to shares of which neither such Person nor any such affiliate is otherwise deemed the beneficial owner); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) that are beneficially owned, directly or indirectly, by any other Person with which such first mentioned Person
or any of its affiliates acts as a partnership, limited partnership, syndicate or other group pursuant to any agreement, arrangement or understanding for the purpose of acquiring, holding, voting or disposing of any shares of capital stock of the
Corporation; and provided further, however, that (i) no director or officer of the Corporation (or any affiliate of any such director or officer) shall, solely by reason of any or all of such directors or officers acting in their capacities as
such, be deemed, for any purposes hereof, to beneficially own any Common Stock beneficially owned by any other such director or officer (or any affiliate thereof), and (ii) neither any employee stock ownership or similar plan of the Corporation
or any subsidiary of the Corporation nor any trustee with respect thereto (or any affiliate of such trustee) shall, solely by reason of such capacity of such trustee, be deemed, for any purposes hereof, to beneficially own any Common Stock held
under any such plan. For purposes of computing the percentage of beneficial ownership of Common Stock of a Person, the outstanding Common Stock shall include shares deemed owned by such Person through application of this subsection but shall not
include any other shares of Common Stock that may be issuable by the Corporation pursuant to any agreement, or upon exercise of conversion rights, warrants or options, or otherwise. For all other purposes, the outstanding Common Stock shall include
only Common Stock then outstanding and shall not include any Common Stock that may be issuable by the Corporation pursuant to any agreement, or upon the exercise of conversion rights, warrants or options, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A "Person" shall mean any individual, firm, corporation, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Board of Directors shall have the power to construe and apply the provisions of this Section D and to make
all determinations necessary or desirable to implement such provisions including, but not limited to, matters with respect to (i) the number of shares of Common Stock beneficially owned by any Person, (ii) whether a Person is an affiliate
of another, (iii) whether a Person has an agreement, arrangement, or understanding with another as to the matters referred to in the definition of beneficial ownership, (iv) the application of any other definition or operative provision of
this Section D to the given facts, or (v) any other matter relating to the applicability or effect of this Section D.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Board of Directors shall have the right to demand that any Person reasonably believed by the Board of Directors to be a Holder in Excess (or holder of record of Common Stock beneficially owned by any Holder in Excess) supply the Corporation with complete information as to (i) the record owner(s) of all shares beneficially owned by such Holder in

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Excess, and (ii) any other factual matter relating to the applicability or effect of this section as may reasonably be requested of such Holder in Excess. The Board of Directors shall further have the right to receive from any Holder in Excess reimbursement for all expenses incurred by the Board in connection with its investigation of any matters relating to the applicability or effect of this section on such Holder in Excess, to the extent such investigation is deemed appropriate by the Board of Directors as a result of the Holder in Excess refusing to supply the Corporation with the information described in the previous sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Any constructions, applications, or determinations made by the Board of Directors pursuant to this Section D in good faith and on the basis of such information and assistance as was then reasonably available for such purpose, shall be conclusive and binding upon the Corporation and its stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If any provision (or portion thereof) of this Section D shall be found to be invalid, prohibited or unenforceable for any reason, the remaining provisions (or portions thereof) of this Section D shall remain in full force and effect, and shall be construed as if such invalid, prohibited or unenforceable provision had been stricken herefrom or otherwise rendered inapplicable, it being the intent of the Corporation and its stockholders that each such remaining provision (or portion thereof) of this Section D remain, to the fullest extent permitted by law, applicable and enforceable as to all stockholders, including Holders in Excess, notwithstanding any such finding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Majority Vote for Certain Actions.** With respect to those actions as to which any provision of the Maryland General Corporation Law (the "MGCL") requires stockholder authorization by a greater proportion than a majority of the total number of shares of all classes of capital stock or of the total number of shares of any class of capital stock, any such action shall be valid and effective if authorized by the affirmative vote of the holders of a majority of the total number of shares of all classes outstanding and entitled to vote thereon, except as otherwise provided in these Articles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Quorum.** Except as otherwise provided by law or expressly provided in these Articles, the presence, in person or by proxy, of the holders of record of shares of capital stock of the Corporation entitling the holders thereof to cast a majority of the votes (after giving effect, if required, to the provisions of Article 5, Section D) entitled to be cast by the holders of shares of capital stock of the Corporation entitled to vote shall constitute a quorum at all meetings of the stockholders, and every reference in these Articles to a majority or other proportion of capital stock (or the holders thereof) for purposes of determining any quorum requirement or any requirement for stockholder consent or approval shall be deemed to refer to such majority or other proportion of the votes (or the holders thereof) then entitled to be cast in respect of such capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Liquidation Account.** Under the Code of Massachusetts Regulations, the Corporation must establish and maintain a liquidation account (the "Liquidation Account") for the benefit of certain Eligible Account Holders and Supplemental Eligible Account Holders (if applicable) as defined in the Plan of Holding Company Reorganization and Plan of Stock Issuance of BayCoast Bank and Narragansett Financial Corporation, as may be amended from time to time (the "Plan of Reorganization"). In the event of a complete liquidation involving (i)

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the Corporation or (ii) BayCoast Bank, a Massachusetts-chartered savings bank that is a wholly-owned subsidiary of the Corporation, the Corporation must comply with the Code of Massachusetts Regulations and the provisions of the Plan of Reorganization with respect to the amount and priorities of each Eligible Account Holder's and Supplemental Eligible Account Holder's interests in the Liquidation Account. The interest of an Eligible Account Holder or Supplemental Eligible Account Holder in the Liquidation Account does not entitle such account holders to voting rights.

**ARTICLE 6. Preemptive Rights and Appraisal Rights.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Preemptive Rights.** Except for preemptive rights approved by the Board of Directors pursuant to a resolution approved by a majority of the directors then in office, no holder of the capital stock of the Corporation or series of stock or of options, warrants or other rights to purchase shares of any class or series of stock or of other securities of the Corporation shall have any preemptive right to purchase or subscribe for any unissued capital stock of any class or series, or any unissued bonds, certificates of indebtedness, debentures or other securities convertible into or exchangeable for capital stock of any class or series or carrying any right to purchase stock of any class or series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Appraisal Rights.** Holders of shares of stock shall not be entitled to exercise any rights of an objecting stockholder provided for under Title 3, Subtitle 2 of the MGCL or any successor statute unless the Board of Directors, pursuant to a resolution approved by a majority of the directors then in office, shall determine that such rights apply with respect to all or any classes or series of stock, to one or more transactions occurring after the date of such determination in connection with which holders of such shares would otherwise be entitled to exercise such rights.

**ARTICLE 7. Directors.** The following provisions are made a part of these Articles for the management of the business and the conduct of the affairs of the Corporation, and for further definition, limitation and regulation of the powers of the Corporation and of its directors and stockholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Management of the Corporation.** The business and affairs of the Corporation shall be managed under the direction of the Board of Directors. All powers of the Corporation may be exercised by or under the authority of the Board of Directors, except as conferred on or as reserved to the stockholders by law or by these Articles or the Bylaws of the Corporation; provided, however, that any limitations on the Board of Directors' management or direction of the affairs of the Corporation shall reserve the directors' full power to discharge their fiduciary duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Number, Class and Terms of Directors; No Cumulative Voting.** The number of directors constituting the Board of Directors of the Corporation shall initially be thirteen (13), which number may be increased or decreased in the manner provided in the Bylaws of the Corporation; provided, however, that such number shall never be less than the minimum number of directors required by the MGCL now or hereafter in force. The directors, other than those who may be elected by the holders of any series of Preferred Stock, shall be divided into three classes, with the term of office of the first class ("Class I") to expire at the conclusion of the first

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annual meeting of stockholders, the term of office of the second class ("Class II") to expire at the conclusion of the annual meeting of stockholders one year thereafter and the term of office of the third class ("Class III") to expire at the conclusion of the annual meeting of stockholders two years thereafter, with each director to hold office until his or her successor shall have been duly elected and qualified. At each annual meeting of stockholders, directors elected to succeed those directors whose terms expire shall be elected for a term of office to expire at the third succeeding annual meeting of stockholders after their election or for such shorter period of time as the Board of Directors may determine, with each director to hold office until his or her term expires and until his or her successor shall have been duly elected and qualified.

The names of the individuals who will serve as the initial directors of the Corporation until their successors are elected and qualify are as follows:

**Term to Expire in 2027**:

Gail M. Fortes

Steven W. Kenyon

Brian R. LeComte

Eric B. Mack

**Term to Expire in 2028**:

Maria L. Aguiar

Paul M. Joncas

Mary Louise Nunes

Carl W. Taber

Lawrence R. Walsh

**Term to Expire in 2029:** 

Nicholas M. Christ

Kenneth D. Furtado

Margarita Patricio

Marie Pellegrino

Stockholders shall not be permitted to cumulate their votes in the election of directors. A plurality of all the votes cast at a meeting at which a quorum is present is sufficient to elect a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Vacancies.** Any vacancies in the Board of Directors may be filled in the manner provided in the Bylaws of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Removal.** Subject to the rights of the holders of any series of Preferred Stock then outstanding, any director, or the entire Board of Directors, may be removed from office at any time, but only for cause and only by the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all of the then-outstanding shares of capital stock of the Corporation

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entitled to vote generally in the election of directors (after giving effect to the provisions of Article 5 hereof) voting together as a single class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Stockholder Proposals and Nominations of Directors.** Advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before any meeting of the stockholders of the Corporation shall be given in the manner provided in the Bylaws of the Corporation. Stockholder proposals to be presented in connection with a special meeting of stockholders shall be presented by the Corporation only to the extent required by Section 2-502 of the MGCL and the Bylaws of the Corporation.

**ARTICLE 8. Bylaws.** The Board of Directors is expressly empowered to adopt, amend or repeal the Bylaws of the Corporation. Any adoption, amendment or repeal of the Bylaws of the Corporation by the Board of Directors shall require the approval of a majority of the Whole Board. The stockholders shall also have power to adopt, amend or repeal the Bylaws of the Corporation. In addition to any vote of the holders of any class or series of stock of the Corporation required by law or by these Articles, the affirmative vote of the holders of at least 80% of the voting power of all of the then-outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors (after giving effect to the provisions of Article 5 hereof), voting together as a single class, shall be required for the adoption, amendment or repeal of any provisions of the Bylaws of the Corporation by the stockholders.

**ARTICLE 9. Evaluation of Certain Offers.** The Board of Directors, when evaluating (i) any offer of another Person (as defined below) to (A) make a tender or exchange offer for any equity security of the Corporation, (B) merge or consolidate the Corporation with another corporation or entity, or (C) purchase or otherwise acquire all or substantially all of the properties and assets of the Corporation or (ii) any other actual or proposed transaction that would or may involve a change in control of the Corporation (whether by purchases of shares of stock or any other securities of the Corporation in the open market or otherwise, tender offer, merger, consolidation, share exchange, dissolution, liquidation, sale of all or substantially all of the assets of the Corporation, proxy solicitation or otherwise), may, in connection with the exercise of its business judgment in determining what is in the best interests of the Corporation and its stockholders and in making any recommendation to the Corporation's stockholders, give due consideration to all relevant factors, including, but not limited to: (A) the economic effect, both immediate and long-term, upon the Corporation's stockholders, including stockholders, if any, who do not participate in the transaction; (B) the social and economic effect on the present and future employees, creditors and customers of, and others dealing with, the Corporation and its subsidiaries and on the communities in which the Corporation and its subsidiaries operate or are located; (C) whether the proposal is acceptable based on the historical, current or projected future operating results or financial condition of the Corporation; (D) whether a more favorable price could be obtained for the Corporation's stock or other securities in the future; (E) the reputation and business practices of the other entity to be involved in the transaction and its management and affiliates as they would affect the employees of the Corporation and its subsidiaries; (F) the future value of the stock or any other securities of the Corporation or the other entity to be involved in the proposed transaction; (G) any antitrust or other legal and regulatory issues that are raised by the proposal; (H) the business and historical, current or expected future financial condition or operating results of the other entity to be involved in the

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transaction, including, but not limited to, debt service and other existing financial obligations, financial obligations to be incurred in connection with the proposed transaction, and other likely financial obligations of the other entity to be involved in the proposed transaction; and (I) the ability of the Corporation to fulfill its objectives as a financial institution holding company and on the ability of its subsidiary financial institution(s) to fulfill the objectives of a federally insured financial institution under applicable statutes and regulations. If the Board of Directors determines that any proposed transaction of the type described in clause (i) or (ii) of the immediately preceding sentence should be rejected, it may take any lawful action to defeat such transaction, including, but not limited to, any or all of the following: advising stockholders not to accept the proposal; instituting litigation against the party making the proposal; filing complaints with governmental and regulatory authorities; acquiring the stock or any of the securities of the Corporation; selling or otherwise issuing authorized but unissued stock or other securities or granting options or rights with respect thereto; and obtaining a more favorable offer from another individual or entity. This Article 9 sets forth certain factors that may be considered by the Board of Directors, but does not create any implication concerning the factors that must be considered, or any other factors that may or may not be considered, by the Board of Directors regarding any proposed transaction of the type described in clause (i) or (ii) of the first sentence of this Article 9.

For purposes of this Article 9, a "Person" shall include an individual, a group acting in concert, a corporation, a partnership, an association, a joint venture, a pool, a joint stock company, a trust, an unincorporated organization or similar company, a syndicate or any other group or entity formed for the purpose of acquiring, holding or disposing of securities.

**ARTICLE 10. Indemnification, etc. of Directors and Officers.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Indemnification.** The Corporation shall indemnify (1) its current and former directors and officers, whether serving the Corporation or at its request any other entity, to the fullest extent required or permitted by the MGCL now or hereafter in force, including the advancement of expenses under the procedures and to the fullest extent permitted by law, and (2) other employees and agents to such extent as shall be authorized by the Board of Directors and permitted by law; provided, however, that, except as provided in Section B of this Article 10 with respect to proceedings to enforce rights to indemnification, the Corporation shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board of Directors of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Procedure.** If a claim under Section A of this Article 10 is not paid in full by the Corporation within sixty (60) days after a written claim has been received by the Corporation, except in the case of a claim for an advancement of expenses, in which case the applicable period shall be twenty (20) days, the indemnitee may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the indemnitee shall also be entitled to be reimbursed the expense of prosecuting or defending such suit. It shall be a defense to any action for advancement of expenses that the Corporation has not received both (i) an undertaking as required by law to repay such advances if it shall ultimately be determined that the standard of

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conduct has not been met and (ii) a written affirmation by the indemnitee of his good faith belief that the standard of conduct necessary for indemnification by the Corporation has been met. In (i) any suit brought by the indemnitee to enforce a right to indemnification hereunder (but not in a suit brought by the indemnitee to enforce a right to an advancement of expenses) it shall be a defense that, and (ii) any suit by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking the Corporation shall be entitled to recover such expenses upon a final adjudication that, the indemnitee has not met the applicable standard for indemnification set forth in the MGCL. Neither the failure of the Corporation (including its Board of Directors, independent legal counsel, or its stockholders) to have made a determination before the commencement of such suit that indemnification of the indemnitee is proper in the circumstances because the indemnitee has met the applicable standard of conduct set forth in the MGCL, nor an actual determination by the Corporation (including its Board of Directors, independent legal counsel, or its stockholders) that the indemnitee has not met such applicable standard of conduct, shall create a presumption that the indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by the indemnitee, be a defense to such suit. In any suit brought by the indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this Article 10 or otherwise shall be on the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Non-Exclusivity.** The rights to indemnification and to the advancement of expenses conferred in this Article 10 shall not be exclusive of any other right that any Person may have or hereafter acquire under any statute, these Articles, the Corporation's Bylaws, any agreement, any vote of stockholders or the Board of Directors, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Insurance.** The Corporation may maintain insurance, at its expense, to insure itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such Person against such expense, liability or loss under the MGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Miscellaneous.** The Corporation shall not be liable for any payment under this Article 10 in connection with a claim made by any indemnitee to the extent such indemnitee has otherwise actually received payment under any insurance policy, agreement, or otherwise, of the amounts otherwise indemnifiable hereunder. The rights to indemnification and to the advancement of expenses conferred in Sections A and B of this Article 10 shall be contract rights and such rights shall continue as to an indemnitee who has ceased to be a director or officer and shall inure to the benefit of the indemnitee's heirs, executors and administrators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Limitations Imposed by Federal Law.** Notwithstanding any other provision set forth in this Article 10, in no event shall any payments made by the Corporation pursuant to this Article 10 exceed the amount permissible under applicable federal law, including, without limitation, Section 18(k) of the Federal Deposit Insurance Act and the regulations promulgated thereunder.

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Any repeal or modification of this Article 10 shall not in any way diminish any rights to indemnification or advancement of expenses of such director or officer or the obligations of the Corporation arising hereunder with respect to events occurring, or claims made, while this Article 10 is in force.

**ARTICLE 11. Limitation of Liability.** An officer or director of the Corporation, as such, shall not be liable to the Corporation or its stockholders for money damages, except (A) to the extent that it is proved that the Person actually received an improper benefit or profit in money, property or services, for the amount of the benefit or profit in money, property or services actually received; or (B) to the extent that a judgment or other final adjudication adverse to the Person is entered in a proceeding based on a finding in the proceeding that the Person's action, or failure to act, was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding; or (C) to the extent otherwise provided by the MGCL. If the MGCL is amended to further eliminate or limit the personal liability of officers and directors, then the liability of officers and directors of the Corporation shall be eliminated or limited to the fullest extent permitted by the MGCL, as so amended.

Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation shall not adversely affect any right or protection of a director or officer of the Corporation existing at the time of such repeal or modification.

**ARTICLE 12**: **Selection of Forum.** Unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the MGCL, or (iv) any action asserting a claim governed by the internal affairs doctrine shall be a state or federal court located within the State of Maryland, in all cases subject to the court's having personal jurisdiction over the indispensible parties named as defendants. The provisions of this Article 12 shall not apply to claims arising under the federal securities laws. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article 12.

**ARTICLE 13. Amendment of the Articles of Incorporation.** The Corporation reserves the right to amend or repeal any provision contained in these Articles in the manner prescribed by the MGCL, including any amendment altering the terms or contract rights, as expressly set forth in these Articles, of any of the Corporation's outstanding stock by classification, reclassification or otherwise, and no stockholder approval shall be required if the approval of stockholders is not required for the proposed amendment or repeal by the MGCL, and all rights conferred upon stockholders are granted subject to this reservation.

The Board of Directors, pursuant to a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number), and without action by the stockholders, may amend these Articles to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Corporation has authority to issue.

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No proposed amendment or repeal of any provision of these Articles shall be submitted to a stockholder vote unless the Board of Directors shall have (1) approved the proposed amendment or repeal, (2) determined that it is advisable, and (3) directed that it be submitted for consideration at either an annual or special meeting of the stockholders pursuant to a resolution approved by the Board of Directors. Any proposed amendment or repeal of any provision of these Articles may be abandoned by the Board of Directors at any time before its effective time upon the adoption of a resolution approved by a majority of the Whole Board (rounded up to the nearest whole number).

The amendment or repeal of any provision of these Articles shall be approved by at least two-thirds (2/3) of all votes entitled to be cast by the holders of shares of capital stock of the Corporation entitled to vote on the matter (after giving due effect to the provisions of Article 5 of these Articles), except that the proposed amendment or repeal of any provision of these Articles need only be approved by the vote of a majority of all the votes entitled to be cast by the holders of shares of capital stock of the Corporation entitled to vote on the matter (after giving due effect to the provisions of Article 5 of these Articles) if the amendment or repeal of such provision is approved by the Board of Directors pursuant to a resolution approved by at least two-thirds (2/3) of the Whole Board (rounded up to the nearest whole number).

Notwithstanding any other provision of these Articles or any provision of law that might otherwise permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the stock of the Corporation required by law or by these Articles, the affirmative vote of the holders of at least 80% of the voting power of all of the then-outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors (after giving effect to the provisions of Article 5), voting together as a single class, shall be required to amend or repeal this Article 13, Section C, D, E or F of Article 5, Article 7 (other than the removal of the list of initial directors), Article 8, Article 9, Article 10, Article 11 or Article 12.

**ARTICLE 14. Name and Address of Incorporator.** The name and mailing address of the sole incorporator are as follows:

Edward A. Quint

5335 Wisconsin Ave., N.W., Suite 780

Washington, D.C. 20015

*[Signature Page Immediately Follows]* 

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I, THE UNDERSIGNED, being the incorporator, for the purpose of forming a corporation under the laws of the State of Maryland, do make, file and record these Articles of Incorporation, do certify that the facts herein stated are true, and, accordingly, have hereto set my hand this 8th day of June, 2026.

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| ![LOGO](g122170g0609073557190.jpg) <br>|
| Edward A. Quint<br> Incorporator |

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## Exhibit 3.2

**Exhibit 3.2** 

**NARRAGANSETT BANCORP, INC.** 

**BYLAWS** 

**ARTICLE I** 

**STOCKHOLDERS** 

**Section 1. Annual Meeting.** 

The Corporation shall hold an annual meeting of its stockholders to elect directors and to transact any other business within its powers, at such place, on such date and at such time as the Board of Directors shall fix. Failure to hold an annual meeting does not invalidate the Corporation's existence or affect any otherwise valid corporate act.

**Section 2. Special Meetings.** 

Special meetings of stockholders of the Corporation may be called by the President, the Chief Executive Officer or the Chairperson of the Board or by the Board of Directors pursuant to a resolution adopted by a majority of the total number of directors that the Corporation would have if there were no vacancies on the Board of Directors (hereinafter the "Whole Board"). Special meetings of the stockholders shall be called by the Secretary at the request of stockholders only on the written request of stockholders entitled to cast at least a majority of all the votes entitled to be cast at the meeting. Such written request shall state the purpose or purposes of the meeting and the matters proposed to be acted upon at the meeting, and shall be delivered at the principal office of the Corporation addressed to the President or the Secretary. The Secretary shall inform the stockholders who make the request of the reasonably estimated cost of preparing and mailing a notice of the meeting and, upon payment of these costs to the Corporation, notify each stockholder entitled to notice of the meeting. The Board of Directors shall have the sole power to fix (i) the record date for determining stockholders entitled to request a special meeting of stockholders and the record date for determining stockholders entitled to notice of and to vote at the special meeting and (ii) the date, time and place of the special meeting and the means of remote communication, if any, by which stockholders and proxy holders may be considered present in person and may vote at the special meeting.

**Section 3. Notice of Meetings; Adjournment or Postponement.** 

Not less than ten (10) nor more than ninety (90) days before each stockholders' meeting, the Secretary shall give notice of the meeting in writing or by electronic transmission to each stockholder entitled to vote at the meeting and to each other stockholder entitled to notice of the meeting. The notice shall state the time and place of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and may vote at the meeting, and, if the meeting is a special meeting, or notice of the purpose is required by statute, the purpose of the meeting. Notice is given to a stockholder when it is personally delivered to the stockholder, left at the stockholder's residence or usual place of business, mailed to the stockholder at the stockholder's address as it appears on the records of the Corporation, or transmitted to the stockholder by an electronic transmission to any address or number of the stockholder at which the stockholder receives electronic transmissions. If the

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Corporation has received a request from a stockholder that notice not be sent by electronic transmission, the Corporation may not provide notice to the stockholder by electronic transmission. Notwithstanding the foregoing provisions, each person who is entitled to notice waives notice if such person, before or after the meeting, delivers a written waiver or waiver by electronic transmission which is filed with the records of the stockholders' meetings, or if such person is present at the meeting in person or by proxy.

A meeting of stockholders convened on the date for which it was called may be adjourned from time to time without further notice to a date not more than one hundred twenty (120) days after the original record date. A meeting may be adjourned by a resolution adopted by a majority of the Whole Board or by the vote of a majority of the stockholders present at the meeting, whether or not a quorum is present at such meeting. At any adjourned meeting, any business may be transacted that might have been transacted at the original meeting.

A meeting of stockholders may be postponed to a date not more than one hundred twenty (120) days after the original record date. A meeting may be postponed by a resolution adopted by a majority of the Whole Board. Notice of the date, time and place to which the meeting is postponed shall be given not less than ten (10) days before such date and otherwise in the manner set forth in this Section 3. At any postponed meeting, any business may be transacted that might have been transacted at the meeting as originally scheduled.

If a meeting shall be adjourned or postponed to a date not more than one hundred twenty (120) days after the original record date, a new record date need not be established, and the original record date may be used for the purpose of determining which stockholders are entitled to notice of, and to vote at, the adjourned or postponed meeting. Any writing authorizing another person to act as proxy at a meeting of stockholders shall remain valid for use at any adjournment or postponement of such meeting unless such proxy is revoked or a later dated proxy is provided by such stockholder.

As used in these Bylaws, the term "electronic transmission" shall have the meaning given to such term by Section 1-101 of the Maryland General Corporation Law (the "MGCL") or any successor provision.

**Section 4. Quorum.** 

Unless the Articles of Incorporation provide otherwise, where a separate vote by a class or classes is required, a majority of the shares of such class or classes, present in person or represented by proxy, shall constitute a quorum entitled to take action with respect to that vote on that matter.

If a quorum shall fail to attend any meeting, the chairperson of the meeting or the holders of a majority of the shares of stock who are present at the meeting, in person or by proxy, may, in accordance with Section 3 of this Article I, adjourn the meeting to another place, date or time.

**Section 5. Organization and Conduct of Business.** 

The Chairperson of the Board of Directors or the Vice Chairperson of the Board, if any, or in their absence, the Chief Executive Officer, or in his or her absence, the President, or in their

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absence, such other person as may be designated by a majority of the Whole Board, shall call to order any meeting of the stockholders and act as chairperson of the meeting. In the absence of the Secretary, the secretary of the meeting shall be such person as the chairperson of the meeting appoints. The chairperson of any meeting of stockholders shall determine the order of business and the procedure at the meeting, including such regulation of the manner of voting and the conduct of discussion as seem to him or her to be in order.

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|:---|:---|
| **Section 6.** | **Advance Notice Provisions for Business to be Transacted at Annual Meetings and Elections of Directors.**  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At any annual meeting of the stockholders, unless otherwise required by law, only such business shall be conducted as shall have been brought before the meeting: (i) as specified in the Corporation's notice of the meeting; (ii) by or at the direction of the Board of Directors; or (iii) by any stockholder of the Corporation who (1) is a stockholder of record on the date such stockholder gives the notice provided for in this Section 6(a) and on the record date for the determination of stockholders entitled to vote at such annual meeting, and (2) complies with the notice procedures set forth in this Section 6(a). For business to be properly brought before an annual meeting by a stockholder pursuant to clause (iii) of the immediately preceding sentence, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation and such business must otherwise be a proper matter for action by stockholders.

To be timely, a stockholder's notice must be delivered or mailed to and received by the Secretary at the principal executive office of the Corporation not less than ninety (90) days nor more than one hundred (100) days before the anniversary of the prior year's annual meeting of stockholders; *provided*, *however,* that if the date of the annual meeting is advanced more than thirty (30) days before the anniversary of the prior year's annual meeting of stockholders, such written notice shall be timely only if delivered or mailed to and received by the Secretary of the Corporation at the principal executive office of the Corporation no earlier than the day on which public disclosure of the date of such annual meeting is first made and not later than the 10<sup>th</sup> day following the earlier of the day notice of the meeting was mailed to stockholders or such public disclosure was made.

The advance notice periods provided in this Section 6(a), once established by the initial notice or public disclosure of a date for the annual meeting of stockholders, shall remain in effect regardless of whether a subsequent notice or public disclosure shall provide that the meeting shall have been adjourned or that the date of the meeting shall have been postponed or otherwise changed from the date provided in the initial notice or public disclosure.

A stockholder's notice to the Secretary must set forth as to each matter such stockholder proposes to bring before the annual meeting: (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting; (ii) the name and address of such stockholder as they appear on the Corporation's books and of the beneficial owner, if any, on whose behalf the proposal is made; (iii) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such stockholder and such beneficial owner; (iv) a description of all arrangements or understandings between such stockholder and any other person or persons (including their names) in connection with the proposal of such business by such stockholder and any material

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interest of such stockholder in such business; and (v) a representation that such stockholder intends to appear in person or by proxy at the annual meeting to bring such business before the meeting.

Notwithstanding anything in these Bylaws to the contrary, no business shall be brought before or conducted at an annual meeting except in accordance with the provisions of this Section 6(a). The chairperson of the meeting shall, if the facts so warrant, determine and declare to the meeting that business was not properly brought before the meeting in accordance with the provisions of this Section 6(a) and, if he or she should so determine, he or she shall so declare to the meeting and any such business so determined to be not properly brought before the meeting shall not be transacted.

At any special meeting of the stockholders, only such business shall be conducted as shall have been brought before the meeting pursuant to the Corporation's notice of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Only persons who are nominated in accordance with the following procedures shall be eligible for election as directors of the Corporation. Nominations of persons for election to the Board of Directors of the Corporation may be made at a meeting of stockholders at which directors are to be elected only: (i) by or at the direction of the Board of Directors or (ii) by any stockholder of the Corporation who (1) is a stockholder of record on the date such stockholder gives the notice provided for in this Section 6(b) and on the record date for the determination of stockholders entitled to vote at such meeting and (2) complies with the notice procedures set forth in this Section 6(b) and the requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the rules and regulations promulgated thereunder. Such nominations, other than those made by or at the direction of the Board of Directors, shall be made by timely notice in writing to the Secretary of the Corporation.

To be timely, a stockholder's notice must be delivered or mailed to and received by the Secretary at the principal executive office of the Corporation not less than ninety (90) days nor more than one hundred (100) days before the anniversary of the prior year's annual meeting of stockholders; *provided*, *however,* that if the date of the annual meeting is advanced more than thirty (30) days before the anniversary of the prior year's annual meeting of stockholders, such written notice shall be timely only if delivered or mailed to and received by the Secretary of the Corporation at the principal executive office of the Corporation no earlier than the day on which public disclosure of the date of such annual meeting is first made and not later than the tenth (10<sup>th</sup>) day following the earlier of the day notice of the meeting was mailed to stockholders or such public disclosure was made.

The advance notice periods provided in this Section 6(b), once established by the initial notice or public disclosure of a date for the annual meeting of stockholders, shall remain in effect regardless of whether a subsequent notice or public disclosure shall provide that the meeting shall have been adjourned or that the date of the meeting shall have been postponed or otherwise changed from the date provided in the initial notice or public disclosure.

A stockholder's notice must be in writing and set forth (i) as to each person whom the stockholder proposes to nominate for election as a director, (a) all information relating to such person that would indicate such person's qualification to serve on the Board of Directors of the

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Corporation; (b) an affidavit that such person would not be disqualified under the provisions of Article II, Section 12 of these Bylaws; (c) such information relating to such person that is required to be disclosed in connection with solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act, or any successor rule or regulation; and (d) a written consent of each proposed nominee to be named as a nominee, including in proxy materials relating to the meeting to nominate the nominee(s), and to serve as a director if elected; and (ii) as to the stockholder giving the notice: (a) the name and address of such stockholder as they appear on the Corporation's books and of the beneficial owner, if any, on whose behalf the nomination is made; (b) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such stockholder and such beneficial owner; (c) a description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made by such stockholder; (d) a representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the persons named in its notice; (e) whether such stockholder intends to solicit proxies in support of director nominees other than the Corporation's nominees in accordance with the Exchange Act and the rules and regulations promulgated thereunder; and (f) any other information relating to such stockholder that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Regulation 14A under the Exchange Act or any successor rule or regulation. Upon request by the Corporation, if a stockholder provides notice of its intent to solicit proxies in support of director nominees other than the Corporation's nominees in accordance with the Exchange Act and the rules and regulations promulgated thereunder, the stockholder shall deliver to the Corporation, no later than five (5) business days prior to the applicable meeting of stockholders, reasonable evidence that it has met the requirements of the Exchange Act and the rules and regulations promulgated thereunder. No person shall be eligible for election as a director of the Corporation unless nominated in accordance with the provisions of this Section 6(b). The chairperson of the meeting shall, if the facts so warrant, determine that a nomination was not made in accordance with such provisions and, if he or she should so determine, he or she shall so declare to the meeting and the defective nomination shall be disregarded. Furthermore, unless otherwise required by law, if any stockholder (i) provides notice pursuant to Rule 14a-19(b) under the Exchange Act and (ii) subsequently fails to comply with any requirements of Rule 14a-19 under the Exchange Act or any other rules or regulations thereunder, then the Corporation shall disregard any proxies or votes solicited for such nominees and such nomination shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of subsections (a) and (b) of this Section 6, the term "public disclosure" shall mean disclosure (i) in a press release issued through a nationally-recognized news service, (ii) in a document publicly filed or furnished by the Corporation with the United States Securities and Exchange Commission or (iii) on a website maintained by the Corporation. The timely notice requirements provided in subsections (a) and (b) of this Section 6 shall apply to all stockholder nominations for election as a director and all stockholder proposals for business to be conducted at an annual meeting regardless of whether such proposal is submitted for inclusion in the Corporation's proxy materials pursuant to Rule 14a-8 of Regulation 14A under the Exchange Act or whether such nomination is submitted for inclusion in the Corporation's proxy materials pursuant to Rule 14a-19 of Regulation 14A under the Exchange Act.

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**Section 7. Proxies and Voting.** 

Unless the Articles of Incorporation provide for a greater or lesser number of votes per share or limits or denies voting rights, each outstanding share of capital stock, regardless of class, is entitled to one vote on each matter submitted to a vote at a meeting of stockholders; however, a share is not entitled to be voted if any installment payable on it is overdue and unpaid. In all elections for directors, directors shall be determined by a plurality of the votes cast, and except as otherwise required by law or as provided in the Articles of Incorporation, all other matters voted on by stockholders shall be determined by a majority of the votes cast on the matter.

A stockholder may vote the capital stock the stockholder owns of record either in person or by proxy. A stockholder may sign a writing authorizing another person to act as proxy. Signing may be accomplished by the stockholder or the stockholder's authorized agent signing the writing or causing the stockholder's signature to be affixed to the writing by any reasonable means, including facsimile signature. A stockholder may authorize another person to act as proxy by transmitting, or authorizing the transmission of, an authorization for the person to act as the proxy to the person authorized to act as proxy or to any other person authorized to receive the proxy authorization on behalf of the person authorized to act as the proxy, including a proxy solicitation firm or proxy support service organization. The authorization may be transmitted by a telegram, cablegram, datagram, electronic mail or any other electronic or telephonic means. Unless a proxy provides otherwise, a proxy is not valid more than 11 months after its date. A proxy is revocable by a stockholder at any time without condition or qualification unless the proxy states that it is irrevocable and the proxy is coupled with an interest. A proxy may be made irrevocable for as long as it is coupled with an interest. The interest with which a proxy may be coupled includes an interest in the capital stock to be voted under the proxy or another general interest in the Corporation or its assets or liabilities.

**Section 8. Conduct of Voting** 

The Board of Directors shall, in advance of any meeting of stockholders, appoint one or more persons as inspectors of election, to act at the meeting or any adjournment thereof and make a written report thereof, in accordance with applicable law. If one or more inspectors are not so elected, the chairperson of the meeting shall make such appointment at the meeting of stockholders. At all meetings of stockholders, the proxies and ballots shall be received, and all questions relating to the qualification of voters and the validity of proxies and the acceptance or rejection of votes shall be decided or determined by the inspector of election. All voting, including on the election of directors but excepting where otherwise required by law, may be by a voice vote; provided, however, that upon demand therefor by a stockholder entitled to vote or his or her proxy or the chairperson of the meeting, a written vote shall be taken. Every written vote shall be taken by ballot, each of which shall state the name of the stockholder or proxy voting and such other information as may be required under the procedure established for the meeting. No candidate for election as a director at a meeting shall serve as an inspector at such meeting.

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**Section 9. Control Share Acquisition Act.** 

Notwithstanding any other provision of the Articles of Incorporation or these Bylaws, Title 3, Subtitle 7 of the MGCL (or any successor statute) shall not apply to any acquisition by any person of shares of capital stock of the Corporation. This Section 9 may be repealed by a majority of the Whole Board, in whole or in part, at any time, whether before or after an acquisition of Control Shares (as defined in Section 3-701(d) of the MGCL, or any successor provision) and, upon such repeal, may, to the extent provided by any successor bylaw, apply to any prior or subsequent Control Share Acquisition (as defined in Section 3-701(d) of the MGCL, or any successor provision).

**ARTICLE II** 

**BOARD OF DIRECTORS** 

**Section 1. General Powers, Number and Term of Office.** 

The business and affairs of the Corporation shall be managed under the direction of the Board of Directors. The number of directors of the Corporation shall, by virtue of the Corporation's election made hereby to be governed by Section 3-804(b) of the MGCL, be fixed from time to time exclusively by vote of the Board of Directors; provided, however, that such number shall never be less than the minimum number of directors required by the MGCL now or hereafter in force. The Board of Directors shall annually elect a Chairperson of the Board from among its members and shall designate the Chairperson of the Board or his or her designee to preside at its meetings. The Board of Directors may also annually elect a Vice Chairperson. In the absence of the Chairperson of the Board, the Vice Chairperson of the Board shall preside at the meetings of the Board of Directors. In the absence of the Vice Chairperson of the Board, the Chief Executive Officer shall preside at the meetings of the Board of Directors. In the absence of the Chief Executive Officer, the President shall preside at the meetings of the Board of Directors, and in his or her absence such other person as may be designated by a majority of the Whole Board shall preside at the meetings of the Board of Directors.

The directors, other than those who may be elected by the holders of any series of preferred stock of the Corporation, shall be divided into three classes, as nearly equal in number as reasonably possible, with the term of office of the first class to expire at the first annual meeting of stockholders, the term of office of the second class to expire at the annual meeting of stockholders one year thereafter and the term of office of the third class to expire at the annual meeting of stockholders two years thereafter, with each director to hold office until his or her successor shall have been duly elected and qualified. At each annual meeting of stockholders, commencing with the first annual meeting, directors elected to succeed those directors whose terms expire shall be elected for a term of office to expire at the third succeeding annual meeting of stockholders after their election or for such shorter period of time as the Board of Directors may determine, with each director to hold office until his or her successor shall have been duly elected and qualified.

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**Section 2. Vacancies and Newly Created Directorships.** 

By virtue of the Corporation's election made hereby to be subject to Section 3-804(c) of the MGCL, any vacancies in the Board of Directors resulting from an increase in the size of the Board of Directors or the death, resignation or removal of a director may be filled only by the affirmative vote of two-thirds (2/3) of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy shall hold office for the remainder of the full term of the class of directors in which the vacancy occurred and until a successor is elected and qualifies. No decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

**Section 3. Regular Meetings.** 

Regular meetings of the Board of Directors shall be held at such place or places or by means of remote communication, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. A notice of each regular meeting shall not be required. Any regular meeting of the Board of Directors may adjourn from time to time to reconvene at the same or some other place, and no notice need be given of any such adjourned meeting other than by announcement.

**Section 4. Special Meetings.** 

Special meetings of the Board of Directors may be called by one-third (1/3) of the directors then in office (rounded up to the nearest whole number), by the Chairperson of the Board, by the Vice Chairperson of the Board or by the Chief Executive Officer, and shall be held at such place or by means of remote communication, on such date, and at such time as they or he or she shall fix. Notice of the place, date, and time of each such special meeting shall be given to each director who has not waived notice by mailing and post-marking written notice not less than five (5) days before the meeting, or by facsimile or other electronic transmission of the same not less than twenty-four (24) hours before the meeting. Any director may waive notice of any special meeting, either before or after such meeting, by delivering a written waiver or a waiver by electronic transmission that is filed with the records of the meeting. Attendance of a director at a special meeting shall constitute a waiver of notice of such meeting, except where the director attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted nor the purpose of any special meeting of the Board of Directors need be specified in the notice of such meeting. Any special meeting of the Board of Directors may adjourn from time to time to reconvene at the same or some other place, and no notice need be given of any such adjourned meeting other than by announcement.

**Section 5. Quorum.** 

At any meeting of the Board of Directors, a majority of the Whole Board shall constitute a quorum for all purposes. If a quorum shall fail to attend any meeting, a majority of those present may adjourn the meeting to another place, date, or time, without further notice or waiver thereof.

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**Section 6. Participation in Meetings By Conference Telephone or by Other Electronic Communications Equipment.** 

Members of the Board of Directors, or of any committee thereof, may participate in a meeting of such Board or committee by means of a conference telephone or by means of other electronic communications equipment if all persons participating in the meeting can hear each other at the same time. Such participation shall constitute presence in person at such meeting.

**Section 7. Conduct of Business.** 

At any meeting of the Board of Directors, business shall be transacted in such order and manner as the Board may from time to time determine, and all matters shall be determined by the vote of a majority of the directors present, except as otherwise provided in these Bylaws or the Articles of Incorporation or required by law. Action may be taken by the Board of Directors without a meeting if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each member of the Board of Directors and filed in paper or electronic form with the minutes of proceedings of the Board of Directors.

**Section 8. Powers.** 

All powers of the Corporation may be exercised by or under the authority of the Board of Directors except as provided by the Articles of Incorporation. Consistent with the foregoing, the Board of Directors shall have, among other powers, the unqualified power:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To declare dividends from time to time in accordance with law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To purchase or otherwise acquire any property, rights or privileges on such terms as it shall determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To authorize the creation, making and issuance, in such form as it may determine, of written obligations of
every kind, negotiable or non-negotiable, secured or unsecured, and to do all things necessary in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To remove any officer of the Corporation with or without cause, and from time to time to devolve the powers and
duties of any officer upon any other person for the time being;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) To confer upon any officer of the Corporation the power to appoint, remove and suspend subordinate officers,
employees and agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To adopt from time to time such stock, option, stock purchase, bonus or other compensation plans for directors,
officers, employees and agents of the Corporation and its subsidiaries as it may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) To adopt from time to time such insurance, retirement, and other benefit plans for directors, officers,
employees and agents of the Corporation and its subsidiaries as it may determine; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) To adopt from time to time regulations, not inconsistent with these Bylaws, for the management of the
Corporation's business and affairs.

**Section 9. Compensation of Directors.** 

Directors, as such, may receive, pursuant to resolution of the Board of Directors, fixed fees and other compensation for their services as directors, including, without limitation, their services as members of committees of the Board of Directors.

**Section 10. Resignation.** 

Any director may resign at any time by giving written notice of such resignation to the Chairperson, the President or the Secretary at the principal office of the Corporation. Unless otherwise specified therein, such resignation shall take effect upon receipt thereof.

**Section 11. Presumption of Assent.** 

A director of the Corporation who is present at a meeting of the Board of Directors at which action on any corporate matter is taken shall be presumed to have assented to such action unless such director announces his or her dissent at the meeting and (a) such director's dissent is entered in the minutes of the meeting, (b) such director files his or her written dissent to such action with the secretary of the meeting before the adjournment thereof, or (c) such director forwards his or her written dissent within twenty-four (24) hours after the meeting is adjourned, by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the secretary of the meeting or the Secretary of the Corporation. Such right to dissent shall not apply to a director who voted in favor of such action or failed to make his or her dissent known at the meeting.

**Section 12. Director Qualifications.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No person shall be eligible for election or appointment to the Board of Directors: (i) if a financial or securities regulatory agency has, within the past ten years, issued a cease and desist, consent or other formal order, other than a civil money penalty, against such person, which order is subject to public disclosure by such agency; (ii) if such person has been convicted of a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under state or federal law; (iii) if such person is currently charged in any information, indictment, or other complaint with the commission of or participation in such a crime; or (iv) other than the persons appointed as initial directors in connection with the formation of the Corporation and other than persons who are also executive officers of the Corporation or of the Corporation's banking subsidiary, BayCoast Bank, if such person did not, at the time of his or her first election or appointment to the Board of Directors, maintain his or her principal residence (as determined by reference to such person's most recent tax returns, copies of which shall be provided to the Corporation for the sole purpose of determining compliance with this clause (iv)) in the Commonwealth of Massachusetts or in a county where BayCoast Bank maintains a banking office for a period of at least one (1) year before the date of his or her purported nomination, election or appointment to the Board of Directors. No person may serve on the Board of Directors if such person is: (w) at the same time, a director, officer, employee or 10% or more stockholder of a bank, savings institution, credit union, mortgage

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banking company, consumer loan company or similar organization, other than a subsidiary of the Corporation, that engages in financial services related business activities or solicits customers, whether through a physical presence or electronically, in the same market area as the Corporation or any of its subsidiaries; (x) does not agree in writing to comply with all of the Corporation's policies applicable to directors including but not limited to its confidentiality policy and confirm in writing his or her qualifications hereunder; (y) is a party to any agreement, understanding or arrangement with a party other than the Corporation or a subsidiary that (1) provides him or her with material benefits which are tied to or contingent on the Corporation entering into a merger, sale of control or similar transaction in which it is not the surviving institution, (2) materially limits his or her voting discretion as a member of the Board of Directors of the Corporation, or (3) materially impairs his or her ability to discharge his or her fiduciary duties with respect to the fundamental strategic direction of the Corporation; or (z) has lost more than one election for service as a director of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors shall have the power to construe and apply the provisions of this Section 12 and to make all determinations necessary or desirable to implement such provisions.

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| **Section** | **13. Attendance at Board Meetings.**  |

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The Board of Directors shall have the right to remove any director from the board upon a director's unexcused absence from (i) three consecutive regularly scheduled meetings of the Board of Directors, or (ii) three regularly scheduled meetings of the Board of Directors in any fiscal year of the Corporation.

**ARTICLE III** 

**COMMITTEES** 

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| **Section** | **1. Committees of the Board of Directors.**  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *General Provisions.* The Board of Directors may appoint from among its members an audit committee, a compensation committee, a nominating and corporate governance committee, and such other committees as the Board of Directors deems necessary or desirable. The Board of Directors may delegate to any committee so appointed any of the powers and authorities of the Board of Directors to the fullest extent permitted by the MGCL and any other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Composition.* Each committee shall be composed of one or more directors or any other number of members specified in these Bylaws or required by applicable regulations or stock exchange rules. The Chairperson of the Board may recommend committees, committee memberships, and committee chairs to the Board of Directors. The Board of Directors shall have the power at any time to appoint the chairperson and the members of any committee, change the membership of any committee, to fill all vacancies on committees, to designate alternate members to replace or act in the place of any absent or disqualified member of a committee, or to dissolve any committee. A member of a committee may resign from that committee at any time by giving written notice of such resignation to the Chairperson of the Board. Unless otherwise specified therein, such resignation from the committee shall take effect upon receipt thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Issuance of Capital Stock.* If the Board of Directors has given general authorization for the issuance of capital stock providing for or establishing a method or procedure for determining the maximum number of shares to be issued, a committee of the Board of Directors, in accordance with that general authorization or any stock option or other plan or program adopted by the Board of Directors, may authorize or fix the terms of stock subject to classification or reclassification and the terms on which any capital stock may be issued, including all terms and conditions required or permitted to be established or authorized by the Board of Directors. Any committee so designated may exercise the power and authority of the Board of Directors if the resolution that designated the committee or a supplemental resolution of the Board of Directors shall so provide.

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| **Section** | **2. Conduct of Business.**  |

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Each committee may determine the procedural rules for meeting and conducting its business and shall act in accordance therewith, except as otherwise provided herein or required by law. Adequate provision shall be made for notice to members of all meetings; one-third (1/3) of the members shall constitute a quorum unless the committee shall consist of one or two members, in which event one member shall constitute a quorum; and all matters shall be determined by a majority vote of the members present. Action may be taken by any committee without a meeting if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each member of the committee and filed in paper or electronic form with the minutes of the proceedings of such committee. The members of any committee may conduct any meeting thereof by conference telephone or other communications equipment in accordance with the provisions of Section 6 of Article II.

**ARTICLE IV** 

**OFFICERS** 

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|:---|:---|
| **Section** | **1. Generally.**  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors as soon as may be practicable after the annual meeting of stockholders shall choose a Chairperson of the Board, a Chief Executive Officer, a President, one or more Vice Presidents, a Secretary and a Chief Financial Officer/Treasurer and from time to time may choose such other officers as it may deem proper. Any number of offices may be held by the same person, except that no person may concurrently serve as both President and Vice President of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term of office of all officers shall be until the next annual election of officers and until their respective successors are chosen, but any officer may be removed from office at any time by the affirmative vote of a majority of the Whole Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All officers chosen by the Board of Directors shall each have such powers and duties as generally pertain to their respective offices, subject to the specific provisions of this Article IV. Such officers shall also have such powers and duties as from time to time may be conferred by the Board of Directors or by any committee thereof.

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|:---|:---|
| **Section** | **2. Chairperson of the Board of Directors.**  |

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The Chairperson of the Board of Directors of the Corporation shall perform all duties and have all powers which are commonly incident to the office of Chairperson of the Board or which are delegated to him or her by the Board of Directors. He or she shall have power to sign all stock certificates, contracts and other instruments of the Corporation that are authorized.

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|:---|:---|
| **Section** | **3. Vice Chairperson of the Board of Directors.**  |

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If appointed, the Vice Chairperson of the Board of Directors of the Corporation shall perform all duties and have all powers which are commonly incident to the office of Chairperson of the Board, with such duties to be performed and powers to be held in the absence of the Chairperson of the Board, or which are delegated to him or her by the Board of Directors.

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|:---|:---|
| **Section** | **4. Chief Executive Officer.**  |

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The Chief Executive Officer, subject to the control of the Board of Directors, shall serve in general executive capacity and have general power over the management and oversight of the administration and operation of the Corporation's business and general supervisory power and authority over its policies and affairs. The Chief Executive Officer shall see that all orders and resolutions of the Board of Directors and of any committee thereof are carried into effect.

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|:---|:---|
| **Section** | **5. President.**  |

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The President shall perform the duties of the Chief Executive Officer in the Chief Executive Officer's absence or during his or her disability to act. In addition, the President shall perform the duties and exercise the powers usually incident to their respective office and/or such other duties and powers as may be properly assigned to the President from time to time by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer.

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|:---|:---|
| **Section** | **6. Vice President.**  |

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The Vice President or Vice Presidents (including Executive Vice Presidents or other levels of Vice President designated by the Board of Directors), if any, shall perform the duties of the Chief Executive Officer in the absence of both the Chief Executive Officer and the President, or during their disability to act. In addition, the Vice Presidents shall perform the duties and exercise the powers usually incident to their respective office and/or such other duties and powers as may be properly assigned to the Vice Presidents from time to time by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer.

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|:---|:---|
| **Section** | **7. Secretary.**  |

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The Secretary or an Assistant Secretary shall issue notices of meetings, shall keep the minutes of meetings, shall have charge of the seal and the corporate books, shall perform such other duties and exercise such other powers as are usually incident to such offices and/or such other duties and powers as are properly assigned thereto by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer.

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| | |
|:---|:---|
| **Section** | **8. Chief Financial Officer/Treasurer.**  |

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The Chief Financial Officer/Treasurer shall have charge of all monies and securities of the Corporation, other than monies and securities of any division of the Corporation that has a treasurer or financial officer appointed by the Board of Directors, and shall keep regular books of account. The funds of the Corporation shall be deposited in the name of the Corporation by the Chief Financial Officer/Treasurer with such banks or trust companies or other entities as the Board of Directors from time to time shall designate. The Chief Financial Officer/Treasurer shall sign or countersign such instruments as require his or her signature, shall perform all such duties and have all such powers as are usually incident to such office and/or such other duties and powers as are properly assigned to him or her by the Board of Directors, the Chairperson of the Board or the Chief Executive Officer, and may be required to give bond for the faithful performance of his or her duties in such sum and with such surety as may be required by the Board of Directors.

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| | |
|:---|:---|
| **Section** | **9. Other Officers.**  |

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The Board of Directors may designate and fill such other offices in its discretion and the persons holding such other offices shall have such powers and shall perform such duties as the Board of Directors or Chief Executive Officer may from time to time assign.

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| | |
|:---|:---|
| **Section** | **10. Action with Respect to Securities of Other Corporations.**  |

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Securities of other corporations or associations, registered in the name of the Corporation, may be voted by the Chief Executive Officer, the President, a Vice President, or a proxy appointed by either of them. The Board of Directors, however, may by resolution appoint some other person to vote such shares, in which case such person shall be entitled to vote such shares upon the production of a certified copy of such resolution.

**ARTICLE V** 

**STOCK** 

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| | |
|:---|:---|
| **Section** | **1. Certificates of Stock.**  |

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The Board of Directors may determine to issue certificated or uncertificated shares of capital stock and other securities of the Corporation. For certificated stock, each stockholder is entitled to certificates which represent and certify the shares of stock the stockholder holds in the Corporation. Each stock certificate shall include on its face the name of the Corporation, the name of the stockholder or other person to whom it is issued, and the class of stock and number of shares it represents. It shall also include on its face or back (a) a statement of any restrictions on transferability and a statement of the designations and any preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption of the stock of each class which the Corporation is authorized to issue, of the differences in the relative rights and preferences between the shares of each series of preferred stock which the Corporation is authorized to issue, to the extent they have been set, and of the authority of the Board of Directors to set the relative rights and preferences of subsequent series of preferred stock or (b) a statement which provides in substance that the Corporation will furnish a full statement of such information to any stockholder on request and without charge.

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Such request may be made to the Secretary or to the Corporation's transfer agent. Upon the issuance of uncertificated shares of capital stock, the Corporation shall send the stockholder a written statement of the same information required above with respect to stock certificates. Each stock certificate shall be in such form, not inconsistent with law or with the Articles of Incorporation, as shall be approved by the Board of Directors or any officer or officers designated for such purpose by resolution of the Board of Directors. Each stock certificate shall be signed by the Chairperson of the Board, the President, or a Vice-President, and countersigned by the Secretary, an Assistant Secretary, the Treasurer, or an Assistant Treasurer. Each certificate may be sealed with the actual corporate seal or a facsimile of it or in any other form and the signatures may be either manual or facsimile signatures. A certificate is valid and may be issued whether or not an officer who signed it is still an officer when it is issued. A certificate may not be issued until the stock represented by it is fully paid.

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| | |
|:---|:---|
| **Section** | **2. Transfers of Stock.**  |

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Transfers of capital stock shall be made only upon the transfer books of the Corporation kept at an office of the Corporation or by transfer agents designated to transfer shares of the capital stock of the Corporation. Except where a certificate is issued in accordance with Section 4 of Article V of these Bylaws, an outstanding certificate for the number of shares involved shall be surrendered for cancellation before a new certificate is issued therefor.

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| | |
|:---|:---|
| **Section** | **3. Record Dates or Closing of Transfer Books.**  |

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The Board of Directors may, and shall have the power to, set a record date or direct that the stock transfer books be closed for a stated period for the purpose of making any proper determination with respect to stockholders, including which stockholders are entitled to notice of a meeting, vote at a meeting, receive a dividend, or be allotted other rights. The record date may not be before the close of business on the day the record date is fixed nor, subject to Section 3 of Article I of these Bylaws, more than ninety (90) days before the date on which the action requiring the determination will be taken; the transfer books may not be closed for a period longer than twenty (20) days; and, in the case of a meeting of stockholders, the record date or the closing of the transfer books shall be at least ten (10) days before the date of the meeting. Any shares of the Corporation's own stock acquired by the Corporation between the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders and the time of the meeting may be voted at the meeting by the holder of record as of the record date and shall be counted in determining the total number of outstanding shares entitled to be voted at the meeting.

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| | |
|:---|:---|
| **Section** | **4. Lost, Stolen or Destroyed Certificates.**  |

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The Board of Directors of the Corporation may determine the conditions for issuing a new stock certificate in place of one which is alleged to have been lost, stolen, or destroyed, or the Board of Directors may delegate such power to any officer or officers of the Corporation or to the transfer agent designated to transfer shares of the stock of the Corporation. In their discretion, the Board of Directors or such officer or officers may require the owner of the certificate to give a bond, with sufficient surety, to indemnify the Corporation against any loss or claim arising as a result of the issuance of a new certificate. In their discretion, the Board of

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Directors or such officer or officers may refuse to issue such new certificate without the order of a court having jurisdiction over the matter.

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| | |
|:---|:---|
| **Section** | **5. Stock Ledger.**  |

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The Corporation shall maintain a stock ledger which contains the name and address of each stockholder and the number of shares of stock of each class which the stockholder holds. The stock ledger may be in written form or in any other form which can be converted within a reasonable time into written form for visual inspection. The original or a duplicate of the stock ledger shall be kept at the offices of a transfer agent for the particular class of stock or, if none, at the principal executive office of the Corporation.

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| | |
|:---|:---|
| **Section** | **6. Regulations.**  |

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The issue, transfer, conversion and registration of certificates of stock shall be governed by such other regulations as the Board of Directors may establish.

**ARTICLE VI** 

**MISCELLANEOUS** 

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| | |
|:---|:---|
| **Section** | **1. Facsimile Signatures.**  |

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In addition to the provisions for use of facsimile signatures elsewhere specifically authorized in these Bylaws, facsimile signatures of any officer or officers of the Corporation may be used whenever and as authorized by the Board of Directors or a committee thereof.

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| | |
|:---|:---|
| **Section** | **2. Corporate Seal.**  |

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The Board of Directors may provide a suitable seal, bearing the name of the Corporation, which shall be in the charge of the Secretary. The Board of Directors may authorize one or more duplicate seals and provide for the custody thereof. If the Corporation is required to place its corporate seal to a document, it is sufficient to meet the requirement of any law, rule, or regulation relating to a corporate seal to place the word "(seal)" adjacent to the signature of the person authorized to sign the document on behalf of the Corporation.

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| | |
|:---|:---|
| **Section** | **3. Books and Records.**  |

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The Corporation shall keep correct and complete books and records of its accounts and transactions and minutes of the proceedings of its stockholders and Board of Directors and of any committee when exercising any of the powers of the Board of Directors. The books and records of the Corporation may be in written form or in any other form which can be converted within a reasonable time into written form for visual inspection. Minutes shall be recorded in written form but may be maintained in the form of a reproduction. The original or a certified copy of these Bylaws shall be kept at the principal office of the Corporation.

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| | |
|:---|:---|
| **Section** | **4. Reliance Upon Books, Reports and Records.**  |

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Each director, each member of any committee designated by the Board of Directors, and each officer and agent of the Corporation shall, in the performance of his or her duties, in addition to any protections conferred upon him or her by law, be fully protected in relying in good faith upon the books of account or other records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of its officers or employees, or committees of the Board of Directors so designated, or by any other person as to matters which such director, committee member, officer or agent reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.

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| | |
|:---|:---|
| **Section** | **5. Fiscal Year.**  |

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The fiscal year of the Corporation shall commence on the first day of January and end on the last day of December in each year.

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| | |
|:---|:---|
| **Section** | **6. Time Periods.**  |

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In applying any provision of these Bylaws that requires that an act be done or not be done a specified number of days before an event or that an act be done during a period of a specified number of days before an event, calendar days shall be used, the day of the doing of the act shall be excluded and the day of the event shall be included.

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| | |
|:---|:---|
| **Section** | **7. Checks, Drafts, Etc.**  |

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All checks, drafts and orders for the payment of money, notes and other evidences of indebtedness, issued in the name of the Corporation, shall be signed by any officer, employee or agent of the Corporation that is authorized by the Board of Directors.

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| | |
|:---|:---|
| **Section** | **8. Mail.**  |

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Any notice or other document that is required by these Bylaws to be mailed shall be deposited in the United States mail, postage prepaid.

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| | |
|:---|:---|
| **Section** | **9. Contracts and Agreements.**  |

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To the extent permitted by applicable law, and except as otherwise prescribed by the Articles of Incorporation or these Bylaws, the Board of Directors may authorize any officer, employee or agent of the Corporation to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation. Such authority may be general or confined to specific instances. A person who holds more than one office in the Corporation may not act in more than one capacity to execute, acknowledge, or verify an instrument required by law to be executed, acknowledged, or verified by more than one officer.

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**ARTICLE VII** 

**AMENDMENTS** 

These Bylaws may be adopted, amended or repealed as provided in the Articles of Incorporation.

## Exhibit 3.3

**Exhibit 3.3** 

**NARRAGANSETT FINANCIAL CORP.** 

**5.875% FIXED TO FLOATING RATE SUBORDINATED NOTE** 

**DUE DECEMBER 15, 2027** 

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS SUBORDINATED AND JUNIOR IN RIGHT OF PAYMENT TO SENIOR INDEBTEDNESS (AS DEFINED IN SECTION 3 OF THIS SUBORDINATED NOTE) OF NARRAGANSETT FINANCIAL CORP. (THE <u>"COMPANY"</u><u>)</u> INCLUDING OBLIGATIONS OF THE COMPANY TO ITS GENERAL AND SECURED CREDITORS AND IS UNSECURED. IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY THE COMPANY OR ANY OF ITS SUBSIDIARIES. IN THE EVENT OF LIQUIDATION, ALL HOLDERS OF SENIOR INDEBTEDNESS OF THE COMPANY SHALL BE ENTITLED TO BE PAID IN FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT SHALL BE MADE ON ACCOUNT OF PRINCIPAL OF OR INTEREST ON THIS SUBORDINATED NOTE. AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH HOLDERS OF SENIOR INDEBTEDNESS, THE HOLDER OF THIS SUBORDINATED NOTE, TOGETHER WITH THE HOLDERS OF ANY OBLIGATIONS OF THE COMPANY RANKING ON A PARITY WITH THE SUBORDINATED NOTES, SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF THE COMPANY THE UNPAID PRINCIPAL AMOUNT OF THIS SUBORDINATED NOTE PLUS ACCRUED AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION, WHETHER IN CASH, PROPERTY OR OTHERWISE, SHALL BE MADE (I) WITH RESPECT TO ANY OBLIGATION THAT BY ITS TERMS EXPRESSLY IS JUNIOR TO IN THE RIGHT OF PAYMENT TO THE SUBORDINATED NOTES, (II) 'ANY INDEBTEDNESS BETWEEN THE COMPANY AND ANY OF ITS SUBSIDIARIES OR AFFILIATES OR (III) ON ACCOUNT OF ANY SHARES OF CAPITAL STOCK OF THE COMPANY.

THIS SUBORDINATED NOTE IS A GLOBAL SUBORDINATED NOTE WITHIN THE MEANING OF SECTION 9 OF THIS SUBORDINATED NOTE AND IS REGISTERED IN THE NAME OF CEDE & CO AS NOMINEE OF THE DEPOSITORY TRUST COMPANY <u>("DTC")</u> OR A NOMINEE OF DTC. THIS SUBORDINATED NOTE IS EXCHANGEABLE FOR SUBORDINATED NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN SECTION 9 OF THIS SUBORDINATED NOTE, AND NO TRANSFER OF THIS SUBORDINATED NOTE (OTHER THAN A TRANSFER OF THIS SUBORDINATED NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES SPECIFIED IN THIS SUBORDINATED NOTE.

UNLESS THIS SUBORDINATED NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SUBORDINATED NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO, OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

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THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (THE <u>"FDIC")</u> OR ANY OTHER GOVERNMENT AGENCY OR FUND.

THIS SUBORDINATED NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $1,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SUBORDINATED NOTE IN A DENOMINATION OF LESS THAN $1,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SUBORDINATED NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON THIS SUBORDINATED NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SUBORDINATED NOTE.

THIS SUBORDINATED NOTE MAY BE SOLD ONLY IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE <u>"SECURITIES ACT")</u>, OR ANY APPLICABLE STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SUBORDINATED NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

**CERTAIN ERISA CONSIDERATIONS:** 

THE HOLDER OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED <u>("ERISA")</u>, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE <u>"CODE")</u> (EACH A <u>"PLAN")</u>, OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE AND HOLDING. ANY PURCHASER OR HOLDER OF

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THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER: (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLANS, OR ANY OTHER PERSON OR ENTITY USING THE "PLAN ASSETS" OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLANS TO FINANCE SUCH PURCHASE OR (ii) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

**ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING THE ACQUISITION OF TIDS SUBORDINATED NOTE OR ANY INTEREST HEREIN SHOULD CONSULT WITH ms OR HER LEGAL COUNSEL PRIOR TO ACQUIRING TIDS SUBORDINATED NOTE OR ANY INTEREST HEREIN.** 

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No. CUSIP 631004 AC2

**NARRAGANSETT FINANCIAL CORP.** 

**5.875% FIXED TO FLOATING RATE SUBORDINATED NOTE** 

**DUE DECEMBER 15, 2027** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Subordinated Notes</u><u>.</u> This Subordinated Note is one of an issue of notes of Narragansett Financial Corp., a Massachusetts-chartered mutual holding company (the <u>"Company")</u> designated as the "5.875% Fixed to Floating Rate Subordinated Notes due December 15, 2027" (the <u>"Subordinated Notes")</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment</u><u>.</u> The Company, for value received, promises to pay to U.S. Bank, NA for the benefit of Cede & Co., or its registered assigns, the principal sum of ________________________ (U.S.) ($_____________), plus accrued but unpaid interest on December 15, 2027 <u>("Stated Maturity")</u> and to pay interest thereon (i) from and including the original issue date of the Subordinated Notes to but excluding December 15, 2022 or the earlier redemption date contemplated by <u>Section 4</u> of this Subordinated Note, at the rate of 5.875% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months and payable semi-annually in arrears on June 15 and December 15 of each year (each, a <u>"Fixed Interest Payment Date")</u>, beginning June 15, 2018, and (ii) from and including December 15, 2022 to but excluding the Stated Maturity or the earlier redemption date contemplated by <u>Section 4</u> of this Subordinated Note, at the rate per annum, reset quarterly, equal to LIBOR determined on the determination date of the applicable interest period plus 375.0 basis points, computed on the basis of a 360-day year and the actual number of days elapsed and payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year (each, a <u>"Floating Interest Payment Date")</u>. An "Interest Payment Date" is either a Fixed Interest Payment Date or a Floating Interest Payment Date, as applicable. "LIBOR" means the 3-month USD LIBOR, which will be the offered rate for 3-month deposits in U.S. dollars, as that rate appears on the Reuters Screen LIBOR01 Page (or any successor page thereto) as of 11 :00 a.m., London time, as observed two London banking days prior to the first day of the applicable floating rate interest period (the <u>"Determination Date")</u>; provided, however, that if the three-month USD LIBOR is less than zero then the three-month USD LIBOR shall be deemed to be zero. If at any time while any Subordinated Notes are outstanding LIBOR ceases to exist or be reported on the Reuters Screen, the Company shall select (with notice to each Noteholder as defined herein) an alternative rate, including any spread adjustments thereto (the "Alternative Rate"). Company shall use its commercially reasonable judgment in determining the Alternative Rate based on that rate determined by the U.K Financial Conduct Authority (the "FCA") and generally being used as the successor to 3-month USD LIBOR; if no such successor rate has been determined by the FCA, Company shall use its commercially reasonable judgment in determining the Alternative Rate generally being used as the successor to 3-month USD LIBOR; provided, however, that, in either case, if the Company is notified by Noteholders of a majority of the Subordinated Notes within five (5) business days after the receipt by all Noteholders of notice of such Alternative Rate selection that such Noteholders reasonably believe that such Alternative Rate is not consistent with the successor for LIBOR, including any spread adjustments, generally used in quarterly pay floating rate obligations, then the Alternative Rate shall be the rate selected by the Company and consented to by the Noteholders of majority of the Subordinated Notes. All references herein to "LIBOR" will include such Alternative Rate selected by the Company.

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Any payment of principal of or interest on this Subordinated Note that would otherwise become due and payable on a day which is not a Business Day shall become due and payable on the next succeeding Business Day, with the same force and effect as if made on the date for payment of such principal or interest, and no interest will accrue in respect of such payment for the period after such day. The term <u>"Business Day"</u> means any day that is not a Saturday or Sunday and that is not a day on which banks in the Commonwealth of Massachusetts are generally authorized or required by law or executive order to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Subordination</u><u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The indebtedness of the Company evidenced by this Subordinated Note, including the principal and interest on this Subordinated Note, shall be subordinate and junior in right of payment to the prior payment in full of all existing claims of creditors of the Company and depositors of any bank subsidiary of the Company, including BayCoast Bank (collectively, the "Bank"), the Bank, whether now outstanding or subsequently created, assumed, guaranteed or incurred (collectively, <u>"Senior Indebtedness")</u>, which shall consist of principal of (and premium, if any) and interest, if any, on: (i) all indebtedness and obligations of, or guaranteed or assumed by, the Company for money borrowed, whether or not evidenced by bonds, debentures, securities, notes or other similar instruments, and including, but not limited to, deposits of the Bank, and all obligations to the Company's general and secured creditors; (ii) any deferred obligations of the Company for the payment of the purchase price of property or assets acquired other than in the ordinary course of business; (iii) all obligations, contingent or otherwise, of the Company in respect of any letters of credit, bankers' acceptances, security purchase facilities and similar direct credit substitutes; (iv) any capital lease obligations of the Company; (v) all obligations of the Company in respect of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and other similar arrangements or derivative products; (vi) any obligation of the Company to its general creditors, as defined for purposes of the capital adequacy regulations of the Board of Governors of the Federal Reserve System (the <u>"Federal Reserve")</u> applicable to the Company, as the same may be amended or modified from time to time; (vii) all obligations that are similar to those in clauses (i) through (vi) of other persons for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise arising from an off-balance sheet guarantee; (viii) all obligations of the types referred to in clauses (i) through (vii) of other persons secured by a lien on any property or asset of the Company; and (ix) in the case of (i) through (viii) above, all amendments, renewals, extensions, modifications and refunding's of such indebtedness and obligations; *except* "Senior Indebtedness" does not include (A) the Subordinated Notes, (B) any obligation that by its terms expressly is junior to, or ranks equally in right of payment with, the Subordinated Notes, or (C) any indebtedness between the Company and any of its subsidiaries or Affiliates. This Subordinated Note is not secured by any assets of the Company. The term <u>"Affiliate(s)"</u> means, with respect to any Person, such Person's immediate family members, partners, members or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of liquidation of the Company, all holders of Senior Indebtedness of the Company shall be entitled to be paid in full with such interest as may be provided by law before any payment shall be made on account of principal of or interest on this Subordinated Note. Additionally, in the event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of or relating to the Company, whether voluntary or involuntary, holders of Senior Indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal of or interest on the Subordinated Notes, including this Subordinated Note. In the event of any such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, the registered holders of the Subordinated Notes from time to time (each a <u>"Noteholder"</u> and, collectively, the <u>"Noteholders")</u>, together with the holders of any obligations of the Company ranking on a parity with the Subordinated Notes, shall be entitled to be paid from the remaining assets of the Company the unpaid principal thereof, and the unpaid interest thereon before any payment or other distribution, whether in cash, property or otherwise, shall be made (i) with respect to any obligation that by its terms expressly is junior to in the right of payment to the Subordinated Notes, (ii) any indebtedness between the Company and any of its subsidiaries or affiliates or (iii) on account of any capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If there shall have occurred and be continuing (i) a default in any payment with respect to any Senior Indebtedness or (ii) an event of default with respect to any Senior Indebtedness as a result of which the maturity thereof is accelerated, unless and until such payment default or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Company with respect to the Subordinated Notes. The provisions of this paragraph shall not apply to any payment with respect to which the immediately preceding paragraph of this <u>Section 3</u> would be applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing herein shall act to prohibit, limit or impede the Company from issuing additional debt of the Company having the same rank as the Subordinated Notes or which may be junior or senior in rank to the Subordinated Notes. Each Noteholder, by its acceptance hereof, agrees to and shall be bound by the provisions of this Section 3. Each Noteholder, by its acceptance hereof, further acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration for each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of the Subordinated Notes, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold or in continuing to hold such Senior Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Redemption</u><u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Redemption Prior to Fifth Anniversary</u><u>.</u> This Subordinated Note shall riot be redeemable by the Company in whole or in part prior to the fifth anniversary of the date upon which this Subordinated Note was originally issued (the <u>"Issue Date")</u>, except in the event of a: (i) Tier 2 Capital Event (as defined below); (ii) Tax Event (as defined below); or (iii) Investment Company Event (as defined below). Upon the occurrence of a Tier 2 Capital Event, a Tax Event or an Investment Company Event, the Company may redeem this Subordinated Note in whole or in part at any time, upon giving not less than 10 days' notice to the holder of this Subordinated

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Note at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date. <u>"Tier 2 Capital Event"</u> means the receipt by the Company of an opinion of counsel to the Company to the effect that there is a material risk that this Subordinated Note no longer qualifies as "Tier 2" Capital (as defined by the Federal Reserve) (or its then equivalent) as a result of a change in law or regulation, or interpretation or application thereof by any judicial, legislative or regulatory authority that becomes effective after the date of issuance of this Subordinated Note. <u>"Tax Event"</u> meaps the receipt by the Company of an opinion of counsel to the Company that as a result of any amendment to, or change (including any final and adopted (or enacted) prospective change) in, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, there exists a material risk that interest pay-able by the Company on the Subordinated Notes is not, or within 120 days after the receipt of such opinion will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes. <u>"Investment Company Event"</u> means the receipt by the Company of an opinion of counsel to the Company to the effect that there is a material risk that the Company is or, within 120 days after the receipt of such opinion will be, required to register as an investment company pursuant to the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Redemption on or after Fifth Anniversary</u><u>.</u> On or after the fifth anniversary of the Issue Date, subject to Section 4(f), this Subordinated Note shall be redeemable at the option of and by the Company, in whole or in part at any time and from time to time upon any Interest Payment Date, at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date, but in all cases in a principal amount with integral multiples of $1,000. In addition, the Company may redeem all or a portion of the Subordinated Notes, at any time upon the occurrence of a Tier 2 Capital Event, Tax Event or an Investment Company Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Partial Redemption</u><u>.</u> If less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new Subordinated Note shall be issued representing the unredeemed portion without charge to the holder thereof and (ii) such redemption shall be effected on a pro rata basis as to the Noteholders. For purposes of clarity, upon a partial redemption, a like percentage of the principal amount of every Subordinated Note held by every Noteholder shall be redeemed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Redemption at Option of Noteholder</u><u>.</u> This Subordinated Note is not subject to redemption at the option of the holder of this Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Effectiveness of Redemption</u><u>.</u> If notice of redemption has been duly given and notwithstanding that this Subordinated Note has been called for redemption but has not yet been surrendered for cancellation, on and after the date fixed for redemption interest shall cease to accrue on the portion of this Subordinated Note called for redemption, this Subordinated Note shall no longer be deemed outstanding with respect to the portion called for redemption and all rights with respect to the portion of this Subordinated Note called for redemption shall forthwith on such date fixed for redemption cease and terminate unless the Company shall default in the payment of the redemption price, except only the right of the holder hereof to receive the amount payable on such redemption, without interest.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Regulatory Approvals</u><u>.</u> Any such redemption shall be subject to receipt of any and all required federal and state regulatory approvals, including, but not limited to, the consent of the Federal Reserve. In the case of any redemption of this Subordinated Note pursuant to paragraphs (b) and (c) of this Section 4, the Company will give the holder hereof notice of redemption, which notice shall indicate the aggregate principal amount of Subordinated Notes to be redeemed, not less than 30 nor more than 45 calendar days prior to the redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Purchase and Resale of the Subordinated Notes</u><u>.</u> Subject to any required federal and state regulatory approvals and the provisions of this Subordinated Note, the Company shall have the right to purchase any of the Subordinated Notes at any time in the open market, private transactions or otherwise. If the Company purchases any Subordinated Notes, it may, in its discretion, hold, resell or cancel any of the purchased Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*5.* <u>Events of Default; Acceleration; Compliance Certificate</u><u>.</u> Each of the following events shall constitute an <u>"Event of Default"</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case or proceeding under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, and such decree or order will have continued unstayed and in effect for a period of 60 consecutive days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, or the consent by the Company to the entry of a decree or order for relief in an involuntary case or proceeding under any such law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Company (i) becomes insolvent or is unable to pay its debts as they mature, (ii) makes an assignment for the benefit of creditors, (iii) admits in writing its inability to pay its debts as they mature, or (iv) ceases to be a bank holding company or financial holding company under the Bank Holding Company Act of 1956, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the failure of the Company to pay any installment of interest on any of the Subordinated Notes as and when the same will become due and payable, and the continuation of such failure for a period of 30 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the failure of the Company to pay all or any part of the principal of any of the Subordinated Notes as and when the same will become due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the liquidation of the Company (for the avoidance of doubt, "liquidation" does not include any merger, consolidation, sale of equity or assets or reorganization (exclusive of a reorganization in bankruptcy) of the Company or any of its subsidiaries);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the failure of the Company to perform any other covenant or agreement on the part of the Company contained in the Subordinated Notes, and the continuation of such failure for a period of 60 days after the date on which notice specifying such failure, stating that such notice is a "Notice of Default" hereunder and demanding that the Company remedy the same, will have been given, in the manner set forth in <u>Section 21</u>, to the Company by the Noteholders of at least 25% in aggregate principal amount of the Subordinated Notes at the time outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the default by the Company under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company having an aggregate principal amount outstanding of at least $15,000,000, whether such indebtedness now exists or is created or incurred in the future, which default (i) constitutes a failure to pay any portion of the principal of such indebtedness when due and payable after the expiration of any applicable grace period or (ii) results in such indebtedness becoming due or being declared due and payable prior to the date on which it otherwise would have become due and payable without, in the case of clause (i), such indebtedness having been discharged or, in the case of clause (ii), without such indebtedness having been discharged or such acceleration having been rescinded or annulled.

Unless the principal of this Subordinated Note already shall have become due and payable, if an Event of Default described in <u>Section 5(a)</u> or <u>Section 5(b</u><u>)</u> shall have occurred and be continuing, the holder of this Subordinated Note, by notice in writing to Company, may declare the principal amount of this Subordinated Note to be due and payable immediately and, upon any such declaration, the same shall become and shall be immediately due and payable. The Company waives demand, presentment for payment, notice of nonpayment, notice of protest, and all other notices. Notwithstanding the foregoing, because the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than an Event of Default described in <u>Section 5(a)</u> or <u>Section 5(b)</u>, no Noteholder may accelerate the Stated Maturity of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes, immediately due and payable. The Company, within 45 calendar days after the receipt of written notice from any Noteholder of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all Noteholders, at their addresses shown on the Security Register (as defined in <u>Section 14</u> below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by the Company in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Failure to Make Payments</u><u>.</u> In the event of failure by the Company to make any required payment of principal or interest on this Subordinated Note (and in the case of payment of interest, such failure to pay shall have continued for 30 calendar days), the Company will, upon demand of the holder of this Subordinated Note, pay to the holder of this Subordinated Note the amount then due and payable on this Subordinated Note for principal and interest (without acceleration of the Note in any manner), with interest on the overdue principal and interest at the rate borne by this Subordinated Note, to the extent permitted by applicable law. If the Company fails to pay such amount upon such demand, the holder of this Subordinated Note may, among other things, institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property of the Company.

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Upon the occurrence of a failure by the Company to make any required payment of principal or interest on this Subordinated Note, or an Event of Default until such Event of Default is cured by the Company, the Company shall not: (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's capital stock; (b) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Company that rank equal with or junior to the Subordinated Notes; or (c) make any payments under any guarantee that ranks equal with or junior to the Subordinated Notes, other than (i) any dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Company's common stock; (ii) any declaration of a non-cash dividend in connection with the implementation of a shareholders' rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of the Company's capital stock or the exchange or conversion of one class or series of the Company's capital stock for another class or series of the Company's capital stock; (iv) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or (v) purchases of any class of the Company's common stock related to the issuance of common stock or rights under any benefit plans for the Company's directors, officers or employees or any of the Company's dividend reinvestment plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Affirmative Covenants of the Company</u><u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice of Certain Events</u><u>.</u> To the extent permitted by applicable statute, rule or regulation, the Company shall provide written notice to the Noteholder of the occurrence of any of the following events as soon as practicable, but in no event later than fifteen (15) Business Days following the Company becoming aware of the occurrence of such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The total risk-based capital ratio, Tier 1 risk-based capital ratio, common equity Tier 1 risk-based capital ratio or leverage ratio of the Company or any of the Company's banking subsidiaries becomes less than ten percent (10.0%), eight percent (8.0%), six and one-half percent (6.50%) or five percent (5.0%), respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company, or any officer of the Company, becomes subject to any formal, written regulatory enforcement action (as defined by any federal or state agency charged with the supervision or regulation of depositary institutions or holding companies of depositary institutions, or engaged in the insurance of depositary institution deposits, or any court, administrative agency or commission or other authority, body or agency having supervisory or regulatory authority with respect to the Company or any of its subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The appointment, resignation, removal or termination of the chief executive officer, president, chief operating officer, chief financial officer, chief credit officer, chief lending officer or any director of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If the Company converts to a stock holding company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Subsequent to the conversion referenced in <u>Section 7(a)(iv)</u>, there is a change in ownership of 25% or more of the outstanding securities of the Company entitled to vote for the election of directors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Principal and Interest</u>. The Company covenants and agrees for the benefit of the holder of this Subordinated Note that it will duly and punctually pay the principal of, and interest on, this Subordinated Note, in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Maintenance of Office</u>. The Company will maintain an office or agency in the city of Swansea, Massachusetts where Subordinated Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Subordinated Notes may be served. The Company may also from time to time designate one or more other offices or agencies where the Subordinated Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided that no such designation or rescission will in any manner relieve the Company of its obligation to maintain an office or agency in the city of Swansea, Massachusetts. The Company will give prompt written notice to the Noteholders of any such designation or rescission and of any change in the location of any such other office or agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Corporate Existence</u>. The Company will do or cause to be done all things necessary to preserve and keep in full force and effect: (i) the corporate existence of the Company; (ii) the existence (corporate.or other) of each subsidiary; and (iii) the rights (charter and statutory), licenses and franchises of the Company and each of its subsidiaries; provided, however, that the Company will not be required to preserve the existence (corporate or other) of any of its subsidiaries or any such right, license or franchise of the Company or any of its subsidiaries if the Board of Directors of the Company determines that the preservation thereof is no longer desirable in the conduct of the business of the Company and its subsidiaries taken as a whole and that the loss thereof will not be disadvantageous in any material respect to the Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Maintenance of Properties</u>. The Company will, and will cause each subsidiary to, cause all properties used or useful in the conduct of its business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this Section will prevent the Company or any subsidiary from discontinuing the operation and maintenance of any of their respective properties if such discontinuance is, in the judgment of the Board of Directors of the Company or of any subsidiary, as the case may be desirable in the conduct of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Waiver of Certain Covenants</u>. The Company may omit in any particular instance to comply with any term, provision or condition set forth in <u>Section 7(b), Section 7(c), Section 7(d) or Section 7(e)</u> above, with respect to this Subordinated Note if before the time for such compliance the Noteholders of at least a majority in principal amount of the outstanding Subordinated Notes, by act of such Noteholders, either will waive such compliance in such instance or generally will have waived compliance with such term, provision or condition, but no such waiver will extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver will become effective, the obligations of the Company in respect of any such term, provision or condition will remain in full force and effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Company Statement as to Compliance</u>. The Company will deliver to the Noteholders, within 120 days after the end of each fiscal year, an Officer's Certificate covering the preceding calendar year, stating whether or not, to the best of his or her knowledge, the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Subordinated Note (without regard to notice requirements or periods of grace) and if the Company will be in default, specifying all such defaults and the nature and status thereof of which he or she may have knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Tier 2 Capital</u>. If all or any portion of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to the limitation imposed on the capital treatment of subordinated debt during the five years immediately preceding the Stated Maturity of the Subordinated Notes, the Company will immediately notify the Noteholders and thereafter the Company and the Noteholders will work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; *provided, however,* that nothing contained in this <u>Section 7(h)</u> shall limit the Company's right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event pursuant to <u>Section 4(a)</u> or <u>Section 4(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Compliance with Laws</u>. The Company shall comply with the requirements of all laws, regulations, orders and decrees applicable to it or its properties, except for such noncompliance that would not reasonably be expected to result in a material adverse effect (i) in the condition (financial or otherwise), or in the earnings of the Company and its subsiqiaries taken as a whole, whether or not arising in the ordinary course of business, or (ii) on the ability of the Company to perform its obligations under this Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G) <u>Taxes and Assessments</u>. The Company shall punctually pay and discharge all material taxes, assessments, and other governmental charges or levies imposed upon it or upon its income or upon any of its properties; provided, that no such taxes, assessments or other governmental charges need be paid if the amount or validity of which is being contested in good faith by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Negative Covenants of the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Limitation on Dividends</u>. The Company shall not declare or pay any dividend or make any distribution on capital stock or other equity securities of any kind of the Company if the Company is not "well capitalized" under Section 225.2(r) of Regulation Y, as the same may be amended or modified from time to time, immediately prior to the declaration of such dividend or distribution, except for dividends payable solely in shares of common stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Merger or Sale of Assets</u>. The Company shall not merge into another entity or convey, transfer or lease substantially all of its properties and assets to any person, unless:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the continuing entity into which the Company is merged or the person which acquires by conveyance or transfer or which leases substantially all of the properties and assets of the Company shall be a corporation, association or other legal entity organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and expressly assumes the due and punctual payment of the principal of and any premium and interest on the Subordinated Notes according to their terms, and the due and punctual performance of all covenants and conditions hereof on the part of the Company to be performed or observed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have happened and be continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Global Subordinated Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Provided that applicable depository eligibility requirements are met, upon the written election of any Noteholder that is a Qualified Institutional Buyer, as defined in Rule 144A under the Securities Act, the Company shall use its commercially reasonable efforts to provide that the Subordinated Notes owned by Noteholders that are Qualified Institutional Buyers shall be issued in the form of one or more Global <u>Subordinated Notes</u> (each a "Global Subordinated Note") registered in the name of The Depository Trust Company or another organization registered as a clearing agency under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), and designated as Depositary by the Company or any successor thereto (the "<u>Depositary</u>") or a nominee thereof and delivered to such Depositary or a nominee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision herein, no Global Subordinated Note may be exchanged in whole or in part for Subordinated Notes registered, and no transfer of a Global Subordinated Note in whole or in part may be registered, in the name of any person other than the Depositary for such Global Subordinated Note or a nominee thereof unless (i) such Depositary advises the Company in writing that such Depositary is no longer willing or able to properly discharge its responsibilities as Depositary with respect to such Global Subordinated Note, and no qualified successor is appointed by the Company within 90 days of receipt by the Company of such notice, (ii) such Depositary ceases to be a clearing agency registered under the Exchange Act and no successor is appointed by the Company within 90 days after obtaining knowledge of such event, (iii) the Company elects to terminate the book-entry system through the Depositary or (iv) an Event of Default shall have occurred and be continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of this Section 9(b) above, the Company or its agent shall notify the Depositary and instruct the Depositary to notify all owners of beneficial interests in such Global Subordinated Note of the occurrence of such event and of the availability of Subordinated Notes to such owners of beneficial interests requesting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Global Subordinated Note is to be exchanged for other Subordinated Notes or canceled in part, or if another Subordinated Note is to be exchanged in whole or in part for a beneficial interest in any Global Subordinated Note, then either (i) such Global Subordinated Note shall be so surrendered for exchange or cancellation as provided in this <u>Section 9</u> or (ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such other Subordinated Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Company or, if applicable, the Company's registrar and transfer agent ("<u>Registrar</u>"), whereupon the Company or, if applicable, the

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Registrar, in accordance with the applicable rules and procedures of the Depositary ("<u>Applicable Depositary Procedures")</u>, shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of a Global Subordinated Note by the Depositary, accompanied by registration instructions, the Company · shall execute and deliver any Subordinated Notes issuable in exchange for such Global Subordinated Note (or any portion thereof) in accordance with the instructions of the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Every Subordinated Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Subordinated Note or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Subordinated Note, unless such Subordinated Note is registered in the name of a person other than the Depositary for such Global Subordinated Note or a nominee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Depositary or its nominee, as the registered owner of a Global Subordinated Note, shall be the holder of such Global Subordinated Note for all purposes under this Subordinated Note, and owners of beneficial interests in a Global Subordinated Note shall hold such interests pursuant to Applicable Depositary Procedures. Accordingly, any such owner's beneficial interest in a Global Subordinated Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Depositary participants. If applicable, the Registrar shall be entitled to deal with the Depositary for all purposes relating to a Global Subordinated Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole holder of the Subordinated Note and shall have no obligations to the owners of beneficial interests therein. The Registrar shall have no liability in respect of any transfers affected by the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The rights of owners of beneficial interests in a Global Subordinated Note shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such owners and the Depositary and/or its participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No holder of any beneficial interest in any Global Subordinated Note held on its behalf by a Depositary shall have any rights with respect to such Global Subordinated Note, and such Depositary may be treated by the Company and any agent of the Company as the owner of such Global Subordinated Note for all purposes whatsoever. Neither the Company nor any agent of the Company will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Subordinated Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by a Depositary or impair, as between a Depositary and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of the Depositary (or its nominee) as holder of any Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Company, within 30 calendar days after the receipt of written notice from the Noteholder or any other holder of the Subordinated Notes of the occurrence of an Event of Default with respect to this Note, shall mail to all the Noteholders, at their addresses shown on the Security Register (as defined in <u>Section 14</u> below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by Company in writing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Denominations</u>. The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations of $1,000 and integral multiples of $1,000 in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Charges and Transfer Taxes</u>. No service charge will be made for any registration of transfer or exchange of this Subordinated Note, or any redemption or repayment of this Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of securities or property, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or exchange of this Subordinated Note from the Noteholder requesting such transfer or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Payment Procedures</u>. Payment of the principal and interest payable on the Stated Maturity will be made by check, or by wire transfer in immediately available funds to a bank account in the United States designated by the Noteholder of this Subordinated Note if such Noteholder shall have previously provided wire instructions to the Company, upon presentation and surrender of this Subordinated Note at the Payment Office (as defined in <u>Section 21</u> below) or at such other place or places as the Company shall designate by notice to the Noteholders as the Payment Office, provided that this Subordinated Note is presented to the Company in time for the Company to make such payments in such funds in accordance with its normal procedures. Payments of interest (other than interest payable on the Stated Maturity) shall be made by wire transfer in immediately available funds or check mailed to the registered Noteholder of this Subordinated Note, as such person's address appears on the Security Register (as defined below). Interest payable on any Interest Payment Date shall be payable to the Noteholder in whose name this Subordinated Note is registered at the close of business on the fifteenth calendar day prior to the applicable Interest Payment Date, without regard to whether such date is a Business Day (such date being referred to herein as the "<u>Regular Record Date</u>"), except that interest not paid on the Interest Payment Date, if any, will be paid to the Noteholder in whose name this Subordinated Note is registered at the close of business on a special record date fixed by the Company (a "<u>Special Record Date</u>"), notice of which shall be given to the Noteholder of this Subordinated Note not less than 10 calendar days prior to such Special Record Date. (The Regular Record Date and Special Record Date are referred to herein collectively as the "Record Dates"). To the extent permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Subordinated Note, on any amount of principal or interest on this Subordinated Note not paid when due. All payments on this Subordinated Note shall be applied first against interest due hereunder; and then against principal due hereunder. The Noteholder of this Subordinated Note acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Subordinated Note and all interest hereon shall be *pari passu* in right of payment and in all other respects to the other Subordinated Notes. In the event that the Noteholder of this Subordinated Note receives payments in excess of its pro rata share of the Company's payments to the Noteholders of all of the Subordinated Notes, then the Noteholder of this Subordinated Note shall hold in trust all such excess payments for the benefit of the Noteholders of the other Subordinated Notes and shall pay such amounts held in trust to such other Noteholders upon demand by such Noteholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Form of Payment</u>. Payments of principal and interest on this Subordinated Note shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Registration of Transfer, Security Register</u>. Except as otherwise provided herein, this Subordinated Note is transferable in whole or in part, and may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the holder of this Subordinated Note in person, or by his attorney duly authorized in writing, at the Payment Office. The Company shall maintain a register providing for the registration of the Subordinated Notes and any exchange or transfer thereof (the "<u>Security Register</u>"). Upon surrender or presentation of this Subordinated Note for exchange or registration of transfer, the Company shall execute and deliver in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $1,000 or any amount in excess thereof which is an integral multiple of $1,000 (and, in the absence of an opinion of counsel satisfactory to the Company to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name or names requested by the Noteholder. Any Subordinated Note presented or surrendered for registration of transfer or for exchange shall be duly endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly executed by the holder of this Subordinated Note or his attorney duly authorized in writing, with such tax identification number or other information for each person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive legend(s) appearing on such Subordinated Note or Subordinated Notes as the Company may reasonably request to comply with applicable law. No exchange or registration of transfer of this Subordinated Note shall be made on or after (i) the fifteenth day immediately preceding the Stated Maturity or (ii) the due delivery of notice of redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Priority</u>. The Subordinated Notes rank *pari passu* among themselves and *pari passu,* in the event of any insolvency proceeding, dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities or similar proceeding or any liquidation or winding up of the Company, with all other present or future unsecured subordinated debt obligations of the Company, except any unsecured subordinated debt that, pursuant to its express terms, is senior or subordinate in right of payment to the Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Ownership</u>. Prior to due presentment of this Subordinated Note for registration of transfer, the Company may treat the Noteholder in whose name this Subordinated Note is registered in the Security Register as the absolute owner of this Subordinated Note for receiving payments of principal and interest on this Subordinated Note and for all other purposes whatsoever, whether or not this Subordinated Note be overdue, and the Company shall not be affected by any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Waiver and Consent</u>. Any consent or waiver given by the Noteholder of this Subordinated Note shall be conclusive and binding upon such Noteholder and upon all future Noteholders of this Subordinated Note and of any Subordinated Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note. This Subordinated Note may also be

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amended or waived pursuant to, and in accordance with, the provisions of Section 8.3 of the Purchase Agreement. No delay or omission of the holder of this Subordinated Note to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Any insured depository institution which shall be a holder of this Subordinated Note or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Subordinated Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the indebtedness evidenced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Absolute and Unconditional Obligation of the Company</u>. No provisions of this Subordinated Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal and interest on this Subordinated Note at the times, places and rate, and in the coin or currency, herein prescribed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Successors and Assigns</u>. This Note shall be binding upon the Company and inure to the benefit of the Noteholder and its respective successors and permitted assigns. The Noteholder may assign all, or any part of, or any interest in, the Noteholder's rights and benefits hereunder. To the extent of any such assignment, such assignee shall have the same rights and benefits against the Company and shall agree to be bound by and to comply with the terms and conditions of the Purchase Agreement as it would have had if it were the Noteholder hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>No Sinking Fund; Convertibility</u>. This Subordinated Note is not entitled to the benefit of any sinking fund. This Subordinated Note is not convertible into or exchangeable for any of the equity securities, other securities or assets of the Company or any subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>No Recourse Against Others</u>. No recourse under or upon any obligation, covenant or agreement contained in this Subordinated Note, or for any claim based thereon or otherwise in respect thereof, will be had against any past, present or future shareholder, employee, officer, or director, as such, of the Company or of any predecessor or successor, either directly or through the Company or any predecessor or successor, under any rate of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Subordinated Note by the holder of this Subordinated Note and as part of the consideration for the issuance of this Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Notices</u>. All notices to the Company under this Subordinated Note shall be in writing and addressed to the Company at Narragansett Financial Corp., 330 Swansea Mall Drive, Swansea, MA 02777, Attention: Nicholas M. Christ, or to such other address as the Company may notify to the Noteholder (the "<u>Payment Office</u>"). All notices to the Noteholders shall be in writing and sent by first-class mail to each Noteholder at his or its address as set forth in the Security Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Further Issues</u>. The Company may, without the consent of the Noteholders of the Subordinated Notes, create and issue additional notes having the same terms and conditions of the Subordinated Notes (except for the Issue Date) so that such further notes shall be consolidated and form a single series with the Subordinated Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Governing Law; Interpretation</u>. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF. THIS SUBORDINATED NOTE IS INTENDED TO MEET THE CRITERIA FOR QUALIFICATION OF THE OUTSTANDING PRINCIPAL AS TIER 2 CAPITAL UNDER THE REGULATORY GUIDELINES OF THE FEDERAL RESERVE, AND THE TERMS HEREOF SHALL BE INTERPRETED IN A MANNER TO SATISFY SUCH INTENT.

***[Signature Page Follows]***

## Exhibit 3.4

**Exhibit 3.4** 

**NARRAGANSETT FINANCIAL CORP.** 

**3.875% FIXED TO FLOATING RATE SUBORDINATED NOTE DUE MAY 15, 2031** 

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY OR FUND.

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS SUBORDINATED AND JUNIOR IN RIGHT OF PAYMENT TO SENIOR INDEBTEDNESS (AS DEFINED IN <u>SECTION 3</u> (SUBORDINATION) OF THIS SUBORDINATED NOTE) OF NARRAGANSETT FINANCIAL CORP. (THE "<u>COMPANY</u>"), INCLUDING OBLIGATIONS OF THE COMPANY TO ITS GENERAL AND SECURED CREDITORS AND IS UNSECURED. IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY THE COMPANY OR ANY OF ITS SUBSIDIARIES.

THIS SUBORDINATED NOTE IS A GLOBAL SUBORDINATED NOTE WITHIN THE MEANING OF <u>SECTION 5</u> OF THIS SUBORDINATED NOTE AND IS REGISTERED IN THE NAME OF CEDE & CO AS NOMINEE OF THE DEPOSITORY TRUST COMPANY ("<u>DTC</u>") OR A NOMINEE OF DTC. THIS SUBORDINATED NOTE IS EXCHANGEABLE FOR SUBORDINATED NOTES <u>REGISTERED</u> IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN <u>SECTION 5</u> OF THIS SUBORDINATED NOTE, AND NO TRANSFER OF THIS SUBORDINATED NOTE (OTHER THAN A TRANSFER OF THIS SUBORDINATED NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES SPECIFIED IN THIS SUBORDINATED NOTE.

UNLESS THIS SUBORDINATED NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SUBORDINATED NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO, OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE *&* CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN <u>SECTION 5</u> OF THIS SUBORDINATED NOTE.

IN THE EVENT OF LIQUIDATION ALL HOLDERS OF SENIOR INDEBTEDNESS OF THE COMPANY SHALL BE ENTITLED TO BE PAID IN FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT SHALL BE MADE ON ACCOUNT OF

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PRINCIPAL OF OR INTEREST ON THIS SUBORDINATED NOTE. AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH HOLDERS OF SENIOR INDEBTEDNESS, THE HOLDER OF THIS SUBORDINATED NOTE, TOGETHER WITH THE HOLDERS OF ANY OBLIGATIONS OF THE COMPANY RANKING ON A PARITY WITH THE SUBORDINATED NOTES, SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF THE COMPANY THE UNPAID PRINCIPAL AMOUNT OF THIS SUBORDINATED NOTE PLUS ACCRUED AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION, WHETHER IN CASH, PROPERTY OR OTHERWISE, SHALL BE MADE (I) WITH RESPECT TO ANY OBLIGATION THAT BY ITS TERMS EXPRESSLY IS JUNIOR IN THE RIGHT OF PAYMENT TO THE SUBORDINATED NOTES, (II) WITH RESPECT TO ANY INDEBTEDNESS BETWEEN THE COMPANY AND ANY OF ITS SUBSIDIARIES OR AFFILIATES OR (III) ON ACCOUNT OF ANY SHARES OF CAPITAL STOCK OF THE COMPANY.

THIS SUBORDINATED NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SUBORDINATED NOTE IN A DENOMINATION OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SUBORDINATED NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON THIS SUBORDINATED NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SUBORDINATED NOTE.

THIS SUBORDINATED NOTE MAY BE SOLD ONLY IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS, OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SUBORDINATED NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

**CERTAIN ERISA CONSIDERATIONS:** 

THE HOLDER OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH, A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-

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60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE AND HOLDING. ANY PURCHASER OR HOLDER OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER: (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE BENEFIT PLAN OR OTHER PLAN, OR ANY OTHER PERSON OR ENTITY USING THE "PLAN ASSETS" OF ANY SUCH PLAN OR OTHER PLAN TO FINANCE SUCH PURCHASE OR (II) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

**ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING THE ACQUISITION OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN SHOULD CONSULT WITH HIS OR HER LEGAL COUNSEL PRIOR TO ACQUIRING THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN.** 

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No. CUSIP: 631004AE8

**NARRAGANSETT FINANCIAL CORP.** 

3.875% FIXED TO FLOATING RATE SUBORDINATED NOTE DUE MAY 15, 2031

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Subordinated Notes</u>**. This Subordinated note is one of an issue of notes of Narragansett Financial Corp., a Massachusetts-chartered mutual holding company (the "Company"), designated as the "3.875% Fixed to Floating Rate Subordinated Notes due 2031" (the "<u>Subordinated Notes</u>") issued pursuant to that Subordinated Note Purchase Agreement dated as of the date upon which this Subordinated Note was originally issued (the "<u>Issue Date</u>") between the Company and the several purchasers of the Subordinated Notes identified in the signature pages thereto (the "<u>Purchase Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Payment</u>**. The Company, for value received, promises to pay to Cede & Co., or its registered assigns, as nominee of The Depository Trust Company, or its registered assigns, the principal sum of _____________ Dollars (U.S.) ($________), plus accrued but unpaid interest on May 15, 2031 (the "<u>Maturity Date</u>") and to pay interest thereon (i) from and including the original issue date of the Subordinated Notes to but excluding May 15, 2026 or the earlier redemption date contemplated by <u>Section 4</u> (Redemption) of this Subordinated Note (the "<u>Fixed Rate Period</u>"), at the rate of 3.875% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months and payable semi-annually in arrears on May 15 and November 15 of each year (each payment date, a "<u>Fixed Interest Payment Date</u>"), beginning November 15, 2021, and (ii) from and including May 15, 2026 to but excluding the Maturity Date or earlier redemption date contemplated by <u>Section 4</u> (Redemption) of this Subordinated Note (the "<u>Floating Rate Period</u>"), at the rate per annum, reset quarterly, equal to the Floating Interest Rate (as defined below) determined on the Floating Interest Determination Date (as defined below) of the applicable interest period plus 319 basis points, computed on the basis of a 360-day year and the actual number of days elapsed and payable quarterly in arrears (each quarterly period a "<u>Floating Interest Period</u>") on February 15, May 15, August 15 and November 15 of each year (each payment date, a "<u>Floating Interest Payment Date</u>"). Dollar amounts resulting from this calculation shall be rounded to the nearest cent, with one-half cent being rounded up. The term "<u>Floating Interest Determination Date</u>" means the date upon which the Floating Interest Rate is determined by the Calculation Agent pursuant to the Three-Month Term SOFR Conventions. Notwithstanding anything to the contrary, (i) in the event the Three-Month Term SOFR (as defined below) is less than zero, the Three-Month Term SOFR shall be deemed to be zero, and (ii) if a Benchmark Transition Event (as defined below) and its related Benchmark Replacement Date (as defined below) have occurred and the Benchmark Replacement (as defined below) is less than zero, then the Benchmark Replacement shall be deemed to be zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An "<u>Interest Payment Date</u>" is either a Fixed Interest Payment Date or a Floating Interest Payment Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The "<u>Floating Interest Rate</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) initially Three-Month Term SOFR (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing <u>clause (i)</u> of this <u>Section 2(b)</u>:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If the Calculation Agent, determines prior to the relevant Floating Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date (each of such terms as defined below) have occurred with respect to Three-Month Term SOFR, then the Company shall promptly provide notice of such determination to the Noteholders and <u>Section 2(c)</u> (Effect of Benchmark Transition Event) will thereafter apply to all determinations, calculations and quotations made or obtained for the purposes of calculating the Floating Interest Rate payable on the Subordinated Notes during a relevant Floating Interest Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) However, if the Calculation Agent, determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR, but for any reason the Benchmark Replacement has not been determined as of the relevant Floating Interest Determination Date, the Floating Interest Rate for the applicable Floating Interest Period will be equal to the Floating Interest Rate on the last Floating Interest Determination Date for the Subordinated Notes, as determined by the Calculation Agent (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the then-current Benchmark is Three-Month Term SOFR and any of the foregoing provisions concerning the calculation of the interest rate and the payment of interest during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR Conventions (as defined below) determined by the Company, then the relevant Three-Month Term SOFR Conventions will apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Effect of Benchmark Transition Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time (as defined below) in respect of any determination of the Benchmark (as defined below) on any date, the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Subordinated Notes during the relevant Floating Interest Period in respect of such determination on such date and all determinations on all subsequent dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In connection with the implementation of a Benchmark Replacement, the Company will have the right to make Benchmark Replacement Conforming Changes from time to time, and such changes shall become effective without consent from the relevant Noteholders (as defined below) or any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any determination, decision or election that may be made by the Company or by the Calculation Agent pursuant to the benchmark transition provisions set forth herein, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take or refrain from taking any action or any selection:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) will be conclusive and binding absent manifest error;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if made by the Company, will be made in the Company's sole discretion;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if made by the Calculation Agent, will be made after consultation with the Company, and the Calculation Agent will not make any such determination, decision or election to which the Company reasonably objects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) notwithstanding anything to the contrary in this Subordinated Note or the Purchase Agreement, shall become effective without consent from the relevant Noteholders (as defined below) or any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For the avoidance of doubt, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, interest payable on this Subordinated Note for the Floating Rate Period will be an annual rate equal to the sum of the applicable Benchmark Replacement and the spread specified on the face hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) As used in this Subordinated Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "<u>Benchmark</u>" means, initially, Three-Month Term SOFR; provided that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark, then "<u>Benchmark</u>" means the applicable Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) "<u>Benchmark Replacement</u>" means the Interpolated Benchmark with respect to the then-current Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark as of the Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated Benchmark with respect to Three-Month Term SOFR shall be determined), then "Benchmark Replacement" means the first alternative set forth in the order below that can be determined by the Calculation Agent, as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The sum of (i) Compounded SOFR and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the sum of: (i) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the sum of: (i) the ISDA Fallback Rate and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the sum of: (i) the alternate rate of interest that has been selected by the Company as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (ii) the Benchmark Replacement Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) "<u>Benchmark Replacement Adjustment</u>" means the first alternative set forth in the order below that can be determined by the Calculation Agent, as of the Benchmark Replacement Date:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Company giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) "<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "<u>Floating Interest Period</u>," timing and frequency of determining rates with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors and other administrative matters) that the Company decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Company decides that adoption of any portion of such market practice is not administratively feasible or if the Company determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Company determines is reasonably necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) "<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. in the case of clause (a) of the definition of "<u>Benchmark Transition Event</u>," the relevant Reference Time in respect of any determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. in the case of <u>clause (b)</u> or <u>(c)</u> of the definition of "<u>Benchmark Transition Event</u>," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. in the case of <u>clause (d)</u> of the definition of "<u>Benchmark Transition Event</u>," the date of such public statement or publication of information referenced therein.

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for purposes of such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) "<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. if the Benchmark is Three-Month Term SOFR, (i) the Relevant Governmental Body has not selected or recommended a forward-looking term rate for a tenor of three months based on SOFR, (ii) the development of a forward-looking term rate for a tenor of three months based on SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (iii) the Company determines that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) "<u>Calculation Agent</u>" means such bank or other entity (which may be the Company or an affiliate of the Company) as may be appointed by the Company to act as Calculation Agent for the Subordinated Notes during the Floating Rate Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) "<u>Compounded SOFR</u>" means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and conventions for this rate being established by the Company or its designee in accordance with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental Body for determining compounded SOFR; *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. if, and to the extent that, the Company or its designee determines that Compounded SOFR cannot be determined in accordance with <u>clause (a)</u> above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Company or its designee giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes at such time.

For the avoidance of doubt, the calculation of Compounded SOFR will exclude the Benchmark Replacement Adjustment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) "<u>Corresponding Tenor</u>" with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding Business Day adjustment) as the applicable tenor for the then-current Benchmark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) "<u>FRBNY</u>" means the Federal Reserve Bank of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) "<u>FRBNY</u>'s Website" means the website of the FRBNY at http://www.newyorkfed.org, or any successor source.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) "<u>Interpolated Benchmark</u>" with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding Tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) "<u>ISDA</u>" means the International Swaps and Derivatives Association, Inc. or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) "<u>ISDA Definitions</u>" means the 2006 ISDA Definitions published by the ISDA or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) "<u>ISDA Fallback Adjustment</u>" means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) "<u>ISDA Fallback Rate</u>" means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) "<u>Reference Time</u>" with respect to any determination of a Benchmark means (1) if the Benchmark is Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (2) if the Benchmark is not Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming Changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) "<u>Relevant Governmental Body</u>" means the Board of Governors of the Federal Reserve System (the "<u>Federal Reserve</u>") and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve and/or the FRBNY or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) "<u>SOFR</u>" means the daily Secured Overnight Financing Rate provided by the FRBNY, as the administrator of the benchmark (or a successor administrator), on the FRBNY's Website.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) "<u>Term SOFR</u>" means the forward-looking term rate for the Corresponding Tenor based on SOFR that has been selected or recommended by the Relevant Governmental Body.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) "<u>Term SOFR Administrator</u>" means any entity designated by the Relevant Governmental Body as the administrator of Term SOFR (or a successor administrator).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) "<u>Three-Month Term SOFR</u>" means the rate for Term SOFR for a tenor of three months that is published by the Term SOFR Administrator at the Reference Time for any Floating Interest Period, as determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) "<u>Three-Month Term SOFR Conventions</u>" means any determination, decision or election with respect to any technical, administrative or operational matter (including with respect to the manner and timing of the publication of Three-Month Term SOFR, or changes to the definition of "Floating Interest Period", timing and frequency of determining Three-Month Term SOFR with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors, and other administrative matters) that the Company decides may be appropriate to reflect the use of Three-Month Term SOFR as the Benchmark in a manner substantially consistent with market practice (or, if the Company decides that adoption of any portion of such market practice is not administratively feasible or if the Company determines that no market practice for the use of Three-Month Term SOFR exists, in such other manner as the Company determines is reasonably necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) "<u>Unadjusted Benchmark Replacement</u>" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that any Fixed Interest Payment Date during the Fixed Rate Period falls on a day that is not a Business Day (as defined below), the interest payment due on that date shall be postponed to the next day that is a Business Day and no additional interest shall accrue as a result of that postponement. In the event that any Floating Interest Payment Date during the Floating Rate Period falls on a day that is not a Business Day (as defined below), the interest payment due on that date shall be postponed to the next day that is a Business Day and interest shall accrue to but excluding the date interest is paid. However, if the postponement would cause the day to fall in the next calendar month during the Floating Interest Period, the Floating Interest Payment Date shall instead be brought forward to the immediately preceding Business Day. The term "Business Day" means any day other than a Saturday or Sunday or any other day on which banking institutions in the Commonwealth of Massachusetts are generally authorized or required by law or executive order to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Subordination</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The indebtedness of the Company evidenced by this Subordinated Note, including the principal and interest on this Subordinated Note, shall be subordinate and junior in right of payment to the prior payment in full of all existing claims of creditors of the Company and depositors of any bank subsidiary of the Company, including BayCoast Bank (the "Bank") whether now outstanding or subsequently created, assumed, guaranteed or incurred (collectively, "<u>Senior Indebtedness</u>"), which shall consist of principal of (and premium, if any) and interest, if any, on: (i) all indebtedness and obligations of, or guaranteed or assumed by, the Company for money borrowed, whether or not evidenced by bonds, debentures, securities, notes or other similar instruments, and including, but not limited to all deposits of the Bank, and all obligations to the Company's general and secured creditors; (ii) any deferred obligations of the Company for the

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payment of the purchase price of property or assets acquired other than in the ordinary course of business; (iii) all obligations, contingent or otherwise, of the Company in respect of any letters of credit, bankers' acceptances, security purchase facilities and similar direct credit substitutes; (iv) any capital lease obligations of the Company; (v) all obligations of the Company in respect of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and other similar arrangements or derivative products; (vi) all obligations that are similar to those in clauses (i) through (v) of other persons for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise arising from an off-balance sheet guarantee; (vii) all obligations of the types referred to in clauses (i) through (vi) of other persons secured by a lien on any property or asset of the Company; and (viii) in the case of (i) through (vii) above, all amendments, renewals, extensions, modifications and refundings of such indebtedness and obligations; *except* "Senior Indebtedness" does not include (A) the Subordinated Notes, (B) any obligation that by its terms expressly is junior to, or ranks equally in right of payment with, the Subordinated Notes, including the Company's existing 5.875% fixed-to-floating rate subordinated notes due 2027 and the Company's existing 6.50% fixed-to-floating rate subordinated notes due 2026 or (C) any indebtedness between the Company and any of its subsidiaries or Affiliates. This Subordinated Note is not secured by any assets of the Company or any of its subsidiaries or Affiliates. The term "<u>Affiliate(s)</u>" means, with respect to any Person (as such term is defined in the Purchase Agreement), such Person's immediate family members, partners, members or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of liquidation of the Company, holders of Senior Indebtedness of the Company shall be entitled to be paid in full with such interest as may be provided by law before any payment shall be made on account of principal of or interest on this Subordinated Note. Additionally, in the event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of or relating to the Company, whether voluntary or involuntary, holders of Senior Indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal of or interest on the Subordinated Notes, including this Subordinated Note. In the event of any such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, the registered holders of the Subordinated Notes from time to time (each a "<u>Noteholder</u>" and, collectively, the "<u>Noteholders</u>"), together with the holders of any obligations of the Company ranking on parity with the Subordinated Notes, shall be entitled to be paid from the remaining assets of the Company the unpaid principal thereof, and the unpaid interest thereon before any payment or other distribution, whether in cash, property or otherwise, shall be made (i) with respect to any obligation that by its terms expressly is junior to in the right of payment to the Subordinated Notes, (ii) with respect to any indebtedness between the Company and any of its subsidiaries or Affiliates or (iii) on account of any capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If there shall have occurred and be continuing (i) a default in any payment with respect to any Senior Indebtedness or (ii) an event of default with respect to any Senior Indebtedness as a result of which the maturity thereof is accelerated, unless and until such payment default or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Company with respect to the Subordinated Notes. The provisions of this paragraph shall not apply to any payment with respect to which the immediately preceding paragraph of this <u>Section 3</u> (Subordination) would be applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing herein shall act to prohibit, limit or impede the Company from issuing additional debt of the Company having the same rank as the Subordinated Notes or which may be junior or senior in rank to the Subordinated Notes. Each Noteholder, by its acceptance hereof, further acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration for each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of the Subordinated Notes, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold or in continuing to hold such Senior Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Redemption</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Redemption Prior to Fifth Anniversary</u>. This Subordinated Note shall not be redeemable by the Company in whole or in part prior to May 15, 2026, except in the event of a: (i) Tier 2 Capital Event (as defined below); (ii) Tax Event (as defined below); or (iii) Investment Company Event (as defined below). Upon the occurrence of a Tier 2 Capital Event, a Tax Event or an Investment Company Event, the Company may redeem this Subordinated Note, subject to <u>Section 4(f)</u> (Regulatory Approvals) hereof, in whole or in part at any time, upon giving not less than 10 days' notice to the holder of this Subordinated Note at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date. "<u>Tier 2 Capital Event</u>" means the receipt by the Company of an opinion of counsel to the Company to the effect that there is a material risk that this Subordinated Note no longer qualifies as "<u>Tier 2</u>" Capital (as defined by the Federal Reserve) (or its then equivalent) as a result of a change in law or regulation, or interpretation or application thereof, by any judicial, legislative or regulatory authority that becomes effective after the date of issuance of this Subordinated Note. "<u>Tax Event</u>" means the receipt by the Company of an opinion of counsel to the Company that as a result of any amendment to, or change (including any final and adopted (or enacted) prospective change) in, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, there exists a material risk that interest payable by the Company on the Subordinated Notes is not, or within 120 days after the receipt of such opinion will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes. "<u>Investment Company Event</u>" means the receipt by the Company of an opinion of counsel to the Company to the effect that there is a material risk that the Company is or, within one hundred twenty (120) days after the receipt of such opinion will be, required to register as an investment company pursuant to the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Redemption on or after Fifth Anniversary</u>. On or after May 15, 2026, subject to the provisions of <u>Section 4(f)</u> (Regulatory Approvals) hereof, this Subordinated Note shall be redeemable at the option of and by the Company, in whole or in part from time to time upon any Interest Payment Date, at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date, but in all cases in a principal amount with integral multiples of $1,000. In addition, the Company may redeem all or a portion of the Subordinated Notes, at any time upon the occurrence of a Tier 2 Capital Event, Tax Event or an Investment Company Event. The redemption referenced in this <u>Section 4(b)</u> (Redemption on or after Fifth Anniversary) shall be subject to the receipt of any required regulatory approval.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Partial Redemption</u>. If less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new Subordinated Note shall be issued representing the unredeemed portion without charge to the holder thereof and (ii) such redemption shall be effected on a pro rata basis as to the Noteholders. For purposes of clarity, upon a partial redemption, a like percentage of the principal amount of every Subordinated Note held by every Noteholder shall be redeemed. Partial redemptions will be processed through the Depository Trust Issuer Corporation, in accordance with its rules and regulations, as a pro rata pass-through of principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Redemption at Option of Noteholder</u>. This Subordinated Note is not subject to redemption at the option of the holder of this Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Effectiveness of Redemption</u>. If notice of redemption has been duly given and notwithstanding that this Subordinated Note has been called for redemption but has not yet been surrendered for cancellation, on and after the date fixed for redemption interest shall cease to accrue on the portion of this Subordinated Note called for redemption, this Subordinated Note shall no longer be deemed outstanding with respect to the portion called for redemption and all rights with respect to the portion of this Subordinated Note called for redemption shall forthwith on such date fixed for redemption cease and terminate unless the Company shall default in the payment of the redemption price, except only the right of the holder hereof to receive the amount payable on such redemption, without interest. For purposes of clarity, any redemption made pursuant to the terms of this Subordinated Note shall be made on a pro rata basis, and, for purposes of a redemption processed through DTC, on a "Pro Rata Pass-Through Distribution of Principal" basis, among all of the Subordinated Notes outstanding at the time thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Regulatory Approvals</u>. Any such redemption shall be subject to receipt of any and all required federal and state regulatory approvals or non-objections, including, but not limited to, the consent of the Federal Reserve. In the case of any redemption of this Subordinated Note pursuant to paragraph (b) of this <u>Section 4</u> (Redemption), the Company will give the holder hereof notice of redemption, which notice shall indicate the aggregate principal amount of Subordinated Notes to be redeemed, not less than thirty (30) nor more than forty-five (45) calendar days prior to the redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Purchase and Resale of the Subordinated Notes</u>. Subject to any required federal and state regulatory approvals and the provisions of this Subordinated Note, the Company shall have the right to purchase any of the Subordinated Notes at any time in the open market, private transactions or otherwise. If the Company purchases any Subordinated Notes, it may, in its discretion, hold, resell or cancel any of the purchased Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Global Subordinated Notes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Provided that applicable depository eligibility requirements are met, upon the written election of any Noteholder that is either (i) a Qualified Institutional Buyer, as defined in Rule 144A under the Securities Act, or (ii) an institutional "accredited investor," as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, the Company shall use its commercially reasonable efforts to cause the Subordinated Notes owned by such Noteholders to be issued in the form of one or more Global Subordinated Notes (each a "<u>Global Subordinated Note</u>") registered in the name of The Depository Trust Company or another organization registered as a clearing agency under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), and designated as Depositary by the Company or any successor thereto (the "<u>Depositary</u>") or a nominee thereof and delivered to such Depositary or a nominee thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision herein, no Global Subordinated Note may be exchanged in whole or in part for Subordinated Notes registered, and no transfer of a Global Subordinated Note in whole or in part may be registered, in the name of any person other than the Depositary for such Global Subordinated Note or a nominee thereof unless (i) such Depositary advises the Company in writing that such Depositary is no longer willing or able to properly discharge its responsibilities as Depositary with respect to such Global Subordinated Note, and no qualified successor is appointed by the Company within ninety (90) days of receipt by the Company of such notice, (ii) such Depositary ceases to be a clearing agency registered under the Exchange Act and no successor is appointed by the Company within ninety (90) days after obtaining knowledge of such event, (iii) the Company elects to terminate the book-entry system through the Depositary or (iv) an Event of Default (as defined in <u>Section 6</u> (Events of Default; Acceleration)) shall have occurred and be continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of this <u>Section 5(b)</u>, the Company or its agent shall notify the Depositary and instruct the Depositary to notify all owners of beneficial interests in such Global Subordinated Note of the occurrence of such event and of the availability of Subordinated Notes to such owners of beneficial interests requesting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Global Subordinated Note is to be exchanged for other Subordinated Notes or canceled in part, or if another Subordinated Note is to be exchanged in whole or in part for a beneficial interest in any Global Subordinated Note, then either (i) such Global Subordinated Note shall be so surrendered for exchange or cancellation as provided in this <u>Section 5</u> or (ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such other Subordinated Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Company or, if applicable, the Company's registrar and transfer agent ("<u>Registrar</u>"), whereupon the Company or, if applicable, the Registrar, in accordance with the applicable rules and procedures of the Depositary ("<u>Applicable Depositary Procedures</u>"), shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of a Global Subordinated Note by the Depositary, accompanied by registration instructions, the Company shall execute and deliver any Subordinated Notes issuable in exchange for such Global Subordinated Note (or any portion thereof) in accordance with the instructions of the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Every Subordinated Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Subordinated Note or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Subordinated Note, unless such Subordinated Note is registered in the name of a person other than the Depositary for such Global Subordinated Note or a nominee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Depositary or its nominee, as the registered owner of a Global Subordinated Note, shall be the holder of such Global Subordinated Note for all purposes under this Subordinated Note, and owners of beneficial interests in a Global Subordinated Note shall hold such interests pursuant to Applicable Depositary Procedures. Accordingly, any such owner's beneficial interest in a Global Subordinated Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Depositary participants. If applicable, the Registrar shall be entitled to deal with the Depositary

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for all purposes relating to a Global Subordinated Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole holder of the Subordinated Note and shall have no obligations to the owners of beneficial interests therein. The Registrar shall have no liability in respect of any transfers undertaken by the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The rights of owners of beneficial interests in a Global Subordinated Note shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such owners and the Depositary and/or its participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No holder of any beneficial interest in any Global Subordinated Note held on its behalf by a Depositary shall have any rights with respect to such Global Subordinated Note, and such Depositary may be treated by the Company and any agent of the Company as the owner of such Global Subordinated Note for all purposes whatsoever. Neither the Company nor any agent of the Company will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Subordinated Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by a Depositary or impair, as between a Depositary and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of the Depositary (or its nominee) as holder of any Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company, within thirty (30) calendar days after the receipt of written notice from the Noteholder or any other holder of the Subordinated Notes of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all the Noteholders, at their addresses shown on the Security Register (as defined in <u>Section 14</u> (Registration of Transfer, Security Register) below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by Company in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Events of Default; Acceleration</u>**.

Each of the following events shall constitute an "<u>Event of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case or proceeding under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, and such decree or order will have continued unstayed and in effect for a period of sixty (60) consecutive days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, or the consent by the Company to the entry of a decree or order for relief in an involuntary case or proceeding under any such law;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Company (i) becomes insolvent or is unable to pay its debts as they mature, (ii) makes an assignment for the benefit of creditors, (iii) admits in writing its inability to pay its debts as they mature or (iv) ceases to be a bank holding company or financial holding company under the Bank Holding Company Act of 1956, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the failure of the Company to pay any installment of interest on any of the Subordinated Notes as and when the same will become due and payable, and the continuation of such failure for a period of fifteen (15) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the failure of the Company to pay all or any part of the principal of any of the Subordinated Notes as and when the same will become due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the liquidation of the Company (for avoidance of doubt, "liquidation" does not include any merger, consolidation, sale of equity or assets or reorganization (exclusive of a reorganization in bankruptcy) of the Company or any of its subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the failure of the Company to perform any other covenant or agreement on the part of the Company contained in the Subordinated Notes, and the continuation of such failure for a period of thirty (30) days after the date on which notice specifying such failure, stating that such notice is a "Notice of Default" hereunder and demanding that the Company remedy the same, will have been given, in the manner set forth in <u>Section 22</u> (Notices), to the Company by a Noteholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the default by the Company under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company having an aggregate principal amount outstanding of at least $25,000,000, whether such indebtedness now exists or is created or incurred in the future, which default (i) constitutes a failure to pay any portion of the principal of such indebtedness when due and payable after the expiration of any applicable grace period or (ii) results in such indebtedness becoming due or being declared due and payable prior to the date on which it otherwise would have become due and payable without, in the case of clause (i), such indebtedness having been discharged or, in the case of clause (ii), without such indebtedness having been discharged or such acceleration having been rescinded or annulled.

Unless the principal amount of this Subordinated Note already shall have become due and payable, if an Event of Default set forth in <u>Section 6(a)</u> or <u>Section 6(b)</u> above shall have occurred and be continuing, the Noteholder, by notice in writing to the Company, may declare the principal amount, and any accrued and unpaid interest thereon, of this Subordinated Note to be due and payable immediately and, upon any such declaration, the same shall become and shall be immediately due and payable, and the Company waives demand, presentment for payment, notice of nonpayment, notice of protest, and all other notices. Notwithstanding the foregoing, because the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than an Event of Default described in <u>Section 6(a)</u> or <u>Section 6(b)</u>, no Noteholder may accelerate the Stated Maturity of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes, immediately due and payable. The Company, within forty-five (45) calendar days after the receipt of written notice from any Noteholder of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all Noteholders, at their addresses shown on the Security Register (as defined in Section 14 (Registration of Transfer, Security Register) below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by the Company in writing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Failure to Make Payments</u>**. In the event of an Event of Default under <u>Section 6(c)</u>, <u>Section 6(d)</u> or <u>Section 6(e)</u> above, the Company will, upon demand of the Noteholder, pay to the Noteholder the amount then due and payable on this Subordinated Note for principal and interest (without acceleration of the Subordinated Note in any manner), with interest on the overdue principal and interest at the per annum rate borne by this Subordinated Note, to the extent permitted by applicable law. If the Company fails to pay such amount upon such demand, the holder of this Subordinated Note may, among other things, institute a judicial proceeding for the collection of the sums so due and unpaid and such amount as shall be sufficient to cover the reasonable costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of such Noteholder, its agents and counsel, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property of the Company.

Upon the occurrence of a failure by the Company to make any required payment of principal or interest on this Subordinated Note or an Event of Default, until such Event of Default is cured by the Company or waived by the Noteholders in accordance with <u>Section 18</u> (Waiver and Consent) hereof, except as may be required by any federal or state bank regulatory agency, the Company shall not: (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's capital stock; (b) make any payment of principal or interest or premium, if any, on or repay, repurchase or redeem any indebtedness of the Company that ranks equal with or junior to the Subordinated Notes; or (c) make any payments under any guarantee that ranks equal with or junior to the Subordinated Notes, other than: (i) any dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Company's common stock; (ii) any declaration of a non-cash dividend in connection with the implementation of a shareholders' rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of the Company's capital stock or the exchange or conversion of one class or series of the Company's capital stock for another class or series of the Company's capital stock; (iv) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or (v) purchases of any class of the Company's common stock related to the issuance of common stock or rights under any benefit plans for the Company's directors, officers or employees or any of the Company's dividend reinvestment plans (the foregoing clauses (i) through (v) are collectively referred to as the "<u>Permitted Dividends</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Affirmative Covenants of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice of Certain Events</u>. To the extent permitted by applicable statute, rule or regulation, the Company shall provide written notice to the Noteholder of the occurrence of any of the following events as soon as practicable, but in no event later than fifteen (15) Business Days following the Company becoming aware of the occurrence of such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company or any of its banking subsidiaries become less than "well-capitalized" as defined under the then applicable regulatory capital standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company, or any of the Company's subsidiaries, or any officer of the Company (in such capacity), becomes subject to any formal, written regulatory enforcement action (as defined by the applicable state or federal bank regulatory authority);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The dollar amount of any nonperforming assets of the Company on a consolidated basis as of the end of a given fiscal quarter as a percentage of the Company's total loan portfolio exceeds 5%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The appointment, resignation, removal or termination of the chief executive officer, president, chief operating officer, chief financial officer, chief credit officer, chief lending officer or any director of the Company or the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company converts from mutual to stock form, including any "partial conversion" transaction, in which the Company continues to hold, directly or indirectly, a majority ownership interest in the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Principal and Interest</u>. The Company covenants and agrees for the benefit of the Noteholder that it will duly and punctually pay the principal of, and interest on, this Subordinated Note, in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Maintenance of Office</u>. The Company will maintain an office or agency in the Commonwealth of Massachusetts where Subordinated Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Subordinated Notes may be served.

The Company may also from time to time designate one or more other offices or agencies where the Subordinated Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided that no such designation or rescission will in any manner relieve the Company of its obligation to maintain an office or agency in the Commonwealth of Massachusetts. The Company will give prompt written notice to the Noteholders of any such designation or rescission and of any change in the location of any such other office or agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Corporate Existence</u>. The Company will do or cause to be done all things necessary to preserve and keep in full force and effect: (i) the corporate existence of the Company; (ii) the existence (corporate or other) of each subsidiary; and (iii) the rights (constituent governing documents and statutory), licenses and franchises of the Company and each of its subsidiaries; *provided, however*, that the Company will not be required to preserve the existence (corporate or other) of any of its subsidiaries or any such right, license or franchise of the Company or any of its subsidiaries if the Board of Directors of the Company determines that the preservation thereof is no longer desirable in the conduct of the business of the Company and its subsidiaries taken as a whole and that the loss thereof will not be disadvantageous in any material respect to the Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Maintenance of Properties</u>. The Company will, and will cause each subsidiary to, cause all its properties used or useful in the conduct of its business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this <u>Section 8(e)</u> will prevent the Company or any subsidiary from discontinuing the operation and maintenance of any of their respective properties if such discontinuance is, in the reasonable judgment of the Board of Directors of the Company or of any subsidiary, as the case may be, desirable in the conduct of its business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Transfer of Voting Stock</u>. The Company will not, nor will it permit the Bank to, directly or indirectly, sell, assign, transfer or otherwise dispose of any shares of, securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock (as defined below) of the Bank or any successor thereof or any subsidiary of the Company that is a depository institution and that has consolidated assets equal to 30% or more of the Company's consolidated assets ("<u>Material Subsidiary</u>"), nor will the Company permit the Material Subsidiary to issue any shares of, or securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock of the Material Subsidiary if, in each case, after giving effect to any such transaction and to the issuance of the maximum number of shares of Voting Stock of the Material Subsidiary issuable upon the exercise of all such convertible securities, options, warrants or rights, the Company would cease to own, directly or indirectly, at least 80% of the issued and outstanding Voting Stock of the Material Subsidiary. "<u>Voting Stock</u>" means outstanding shares of capital stock having voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power because of default in dividends or other default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Waiver of Certain Covenants</u>. The Company may omit in any particular instance to comply with any term, provision or condition set forth in <u>Section 8(c)</u> (Maintenance of Office), <u>Section 8(d)</u> (Corporate Existence), <u>Section 8(e)</u> (Maintenance of Properties), or <u>Section 8(f)</u> (Transfer of Voting Stock) above, with respect to this Subordinated Note if before the time for such compliance the Noteholders of at least a majority in aggregate principal amount of the outstanding Subordinated Notes, by act of such Noteholders, either will waive such compliance in such instance or generally will have waived compliance with such term, provision or condition, but no such waiver will extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver will become effective, the obligations of the Company in respect of any such term, provision or condition will remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Tier 2 Capital</u>. Whether or not the Company is subject to consolidated capital requirements under applicable regulations of the Federal Reserve, if all or any portion of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to the limitation imposed on the capital treatment of subordinated debt during the five (5) years immediately preceding the Stated Maturity of the Subordinated Notes, the Company will promptly notify the Noteholders and thereafter, the Company and the Noteholders will work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; *provided*, *however*, that nothing contained in this <u>Section 8(i)</u> (Tier 2 Capital) shall limit the Company's right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event pursuant to <u>Section 4(a)</u> (Redemption Prior to Fifth Anniversary) or <u>Section 4(b)</u> (Redemption on or after Fifth Anniversary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Compliance with Laws</u>. The Company and each Subsidiary shall comply with the requirements of all laws, regulations, orders and decrees applicable to it or its properties, except for such noncompliance that would not reasonably be expected to have a Material Adverse Effect (as such term is defined in the Purchase Agreement) on the Company and its subsidiaries taken as a whole.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Taxes and Assessments</u>. The Company shall punctually pay and discharge all material taxes, assessments, and other governmental charges or levies imposed upon it or upon its income or upon any of its properties; provided, that no such taxes, assessments or other governmental charges need be paid if they are being contested in good faith by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Financial Statements; Access to Records</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not later than forty-five (45) days following the end of each semi-annual or quarterly period, as applicable, for which the Company has not submitted a Consolidated Financial Statements for Holding Companies Reporting Form FR Y-9C to the Federal Reserve, upon request, the Company shall provide the Noteholder with a copy of the Company's unaudited parent company only balance sheet and statement of income (loss) for and as of the end of such immediately preceding fiscal quarter, prepared in accordance with past practice. Quarterly financial statements, if required herein, shall be unaudited and need not comply with the generally accepted accounting principles in effect from time to time in the United States of America ("<u>GAAP</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Not later than ninety (90) days from the end of each fiscal year, upon request the Company shall provide the Noteholder with copies of the Company's audited financial statements consisting of the consolidated balance sheet of the Company as of the fiscal year end and the related statements of income (loss) and retained earnings, stockholders' equity and cash flows for the fiscal year then ended. Such financial statements shall be prepared in accordance with GAAP applied on a consistent basis throughout the period involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In addition to the foregoing <u>Sections 8(k)</u><u>(i)</u> and <u>(ii)</u>, if a Noteholder holds at least twenty five percent (25%) in aggregate principal amount (excluding any Subordinated Notes held by Company or any of its Affiliates) of the Subordinated Notes at the time outstanding, the Company agrees to furnish to such Noteholder, upon request, with such financial and business information of the Company and the Bank as such Noteholder may reasonably request as may be reasonably necessary or advisable to allow such Noteholder to confirm compliance by the Company with this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Company Statement as to Compliance</u>. The Company will deliver to the Noteholders, within one hundred twenty (120) days after the end of each fiscal year, an Officer's Certificate covering the preceding fiscal year, stating whether or not, to the best of his or her knowledge, the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Subordinated Note (without regard to notice requirements or periods of grace) and if the Company will be in default, specifying all such defaults and the nature and status thereof of which he or she may have knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Negative Covenants of the Company</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Limitation on Dividends</u>. The Company shall not declare or pay any dividend or make any distribution on capital stock or other equity securities of any kind of the Company if the Company is not "well capitalized" for regulatory purposes immediately prior to the declaration of such dividend or distribution, except for Permitted Dividends.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Merger or Sale of Assets</u>. The Company shall not merge into another entity, effect a Change in Bank Control (as defined below) or convey, transfer or lease substantially all of its properties and assets to any person, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the continuing entity into which the Company is merged or the person which acquires by conveyance or transfer or which leases substantially all of the properties and assets of the Company shall be a corporation, association or other legal entity organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and expressly assumes the due and punctual payment of the principal of and any premium and interest on the Subordinated Notes according to their terms, and the due and punctual performance of all covenants and conditions hereof on the part of the Company to be performed or observed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately after giving effect to such transaction, no Event of Default (as defined above), and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing.

"<u>Change in Bank Control</u>" means the sale, transfer, lease or conveyance by the Company, or an issuance of equity securities by the Bank other than to the Company, in either case resulting in ownership by the Company of less than 50% of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Denominations</u>**. The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>Charges and Transfer Taxes</u>**. No service charge will be made for any registration of transfer or exchange of this Subordinated Note, or any redemption or repayment of this Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of securities or property, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or exchange of this Subordinated Note from the Noteholder requesting such transfer or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>Payment Procedures</u>**. Payment of the principal and interest payable on the Maturity Date will be made by check, by wire transfer or by Automated Clearing House (ACH) transfer in immediately available funds to a bank account in the United States designated by the registered Noteholder if such Noteholder shall have previously provided wire instructions to the Company, upon presentation and surrender of this Subordinated Note at the Payment Office (as defined in <u>Section 22</u> (Notices) below) or at such other place or places as the Company shall designate by notice to the registered Noteholders as the Payment Office, provided that this Subordinated Note is presented to the Company in time for the Company to make such payments in such funds in accordance with its normal procedures. Payments of interest (other than interest payable on the Maturity Date) shall be made on each Interest Payment Date by wire transfer in immediately available funds or check mailed to the registered Noteholder, as such person's address appears on the Security Register. Interest payable on any Interest Payment Date shall be payable to the Noteholder in whose name this Subordinated Note is registered at the close of business on the fifteenth (15<sup>th</sup>) calendar day prior to the applicable Interest Payment Date, without regard to whether such date is a Business Day, except that interest not paid on the Interest Payment Date, if any, will be paid to the holder in whose name this Subordinated Note is registered at the close of business on a special record date fixed by the Company (a "<u>Special Record Date</u>"), notice of which

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shall be given to the Noteholder not less than ten (10) calendar days prior to such Special Record Date. To the extent permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Subordinated Note, on any amount of principal or interest on this Subordinated Note not paid when due. All payments on this Subordinated Note shall be applied first against costs and expenses of the Noteholder, if any, for which the Company is liable under this Subordinated Note; then against interest due hereunder; and then against principal due hereunder. The Noteholder acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Subordinated Note and all interest hereon shall be *pari passu* in right of payment and in all other respects to the other Subordinated Notes. In the event that the Noteholder receives payments in excess of its pro rata share of the Company's payments to the holders of all of the Subordinated Notes, then the Noteholder shall hold in trust all such excess payments for the benefit of the other Noteholders and shall pay such amounts held in trust to such other holders upon demand by such holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>Form of Payment</u>**. Payments of principal of and interest on this Subordinated Note shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. <u>Registration of Transfer, Security Register</u>**. Except as otherwise provided herein, this Subordinated Note is transferable in whole or in part, and may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the Noteholder in person, or by its attorney duly authorized in writing, at the Payment Office or the offices of the Registrar. The Company or its agent (the "<u>Registrar</u>") shall maintain a register providing for the registration of the Subordinated Notes and any exchange or transfer thereof (the "<u>Security Register</u>"). Upon surrender or presentation of this Subordinated Note for exchange or registration of transfer, the Company or the Registrar shall execute and deliver in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $100,000 or any amount in excess thereof which is an integral multiple of $1,000 (and, in the absence of an opinion of counsel satisfactory to the Company to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name or names requested by the Noteholder. Any Subordinated Note presented or surrendered for registration of transfer or for exchange shall be duly endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly executed by the Noteholder or its attorney duly authorized in writing, with such tax identification number or other information for each person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive legend(s) appearing on such Subordinated Note or Subordinated Notes as the Company may reasonably request to comply with applicable law. No exchange or registration of transfer of this Subordinated Note shall be made on or after (i) the fifteenth (15<sup>th</sup>) day immediately preceding the Maturity Date or (ii) the due delivery of notice of redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. <u>Successors and Assigns</u>**. This Subordinated Note shall be binding upon the Company and inure to the benefit of the Noteholder and its respective successors and permitted assigns. The Noteholder may assign all, or any part of, or any interest in, the Noteholder's rights and benefits hereunder only to the extent and in the manner permitted by the terms of this Note. To the extent of any such assignment, such assignee shall have the same rights and benefits against the Company and shall agree to be bound by and to comply with the terms and conditions of the Purchase Agreement as it would have had if it were the Noteholder hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. <u>Priority</u>**. The Subordinated Notes rank *pari passu* among themselves and *pari passu*, in the event of any insolvency proceeding, dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities or similar proceeding or any liquidation or winding up of the Company, with all other present or future unsecured subordinated debt obligations of the Company, except any unsecured subordinated debt that, pursuant to its express terms, is senior or subordinate in right of payment to the Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. <u>Ownership</u>**. Prior to due presentment of this Subordinated Note for registration of transfer, the Company may treat the holder in whose name this Subordinated Note is registered in the Security Register as the absolute owner of this Subordinated Note for receiving payments of principal and interest on this Subordinated Note and for all other purposes whatsoever, whether or not this Subordinated Note be overdue, and the Company shall not be affected by any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. <u>Waiver and Consent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Subordinated Note may be amended or waived pursuant to, and in accordance with, the provisions set forth herein and as set forth in Section 7.3 of the Purchase Agreement. Any such consent or waiver given by the Noteholder shall be conclusive and binding upon such Noteholder and upon all subsequent holders of this Subordinated Note and of any Subordinated Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note. No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Any insured depository institution which shall be a Noteholder or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Subordinated Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the indebtedness evidenced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No waiver or amendment of any term, provision, condition, covenant or agreement in the Subordinated Notes shall be effective except with the consent of the Company and Noteholders holding more than fifty percent (50%) in aggregate principal amount (excluding any Subordinated Notes held by the Company or any of its Affiliates) of the Subordinated Notes at the time outstanding; *provided*, *however*, that without the consent of each Noteholder of an affected Subordinated Note, no such amendment or waiver may: (i) reduce the principal amount of any Subordinated Note; (ii) reduce the rate of or change the time for payment of interest on any Subordinated Note; (iii) extend the maturity of any Subordinated Note; (iv) change the currency in which payment of the obligations of the Company under the Subordinated Notes are to be made; (v) lower the percentage of aggregate principal amount of outstanding Subordinated Notes required to approve any amendment of the Subordinated Notes; (vi) make any changes to Section 4(c) (Partial Redemption), Section 6 (Events of Default; Acceleration), Section 7 (Failure to Make Payments), Section 16 (Priority), or Section 18 (Waiver and Consent) of the Subordinated Notes that adversely affects the rights of any Noteholder; or (vii) disproportionately affect the rights of any of the holders of the then outstanding Subordinated Notes. Notwithstanding the foregoing, the Company may amend or supplement the Subordinated Notes without the consent of the Noteholders to cure any ambiguity, defect or inconsistency or to provide for uncertificated Subordinated Notes in addition to or in place of certificated Subordinated Notes, or to make any change that does not adversely affect the rights of any Noteholder of any of the Subordinated

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Notes. No failure to exercise or delay in exercising, by any Noteholder of the Subordinated Notes, of any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof, or the exercise of any other right or remedy provided by law, except as restricted hereby. The rights and remedies provided in this Subordinated Note are cumulative and not exclusive of any right or remedy provided by law or equity. No notice or demand on the Company in any case shall, in itself, entitle the Company to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Noteholders to any other or further action in any circumstances without notice or demand. No consent or waiver, expressed or implied, by the Noteholders to or of any breach or default by the Company in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of the same or any other obligations of the Company hereunder. Failure on the part of the Noteholders to complain of any acts or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Noteholders of their rights hereunder or impair any rights, powers or remedies on account of any breach or default by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. <u>Absolute and Unconditional Obligation of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No provisions of this Subordinated Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal and interest on this Subordinated Note at the times, places and rate, and in the coin or currency, herein prescribed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any insured depository institution which shall be a Noteholder or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the indebtedness evidenced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. <u>No Sinking Fund; Convertibility</u>**. This Subordinated Note is not entitled to the benefit of any sinking fund. This Subordinated Note is not convertible into or exchangeable for any of the equity securities, other securities or assets of the Company or any subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21. <u>No Recourse Against Others</u>**. No recourse under or upon any obligation, covenant or agreement contained in this Subordinated Note, or for any claim based thereon or otherwise in respect thereof, will be had against any past, present or future shareholder, employee, officer, or director, as such, of the Company or of any predecessor or successor, either directly or through the Company or any predecessor or successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Subordinated Note by the Noteholder and as part of the consideration for the issuance of this Subordinated Note.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22. <u>Notices</u>**. All notices to the Company under this Subordinated Note shall be in writing and addressed to the Company at Narragansett Financial Corp., 330 Swansea Mall Drive, Swansea, Massachusetts 02777, Attention: Nicholas M. Christ, President and Chief Executive Officer, or to such other address as the Company may notify to the Noteholder (the "<u>Payment Office</u>"). All notices to the Noteholders shall be in writing and sent by first-class mail to each Noteholder at his or its address as set forth in the Security Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23. <u>Further Issues</u>**. The Company may, without the consent of the Noteholders, create and issue additional notes having the same terms and conditions of the Subordinated Notes (except for the Issue Date and issue price) so that such further notes shall be consolidated and form a single series with the Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24. <u>Governing Law; Interpretation</u>**. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF. THIS SUBORDINATED NOTE IS INTENDED TO MEET THE CRITERIA FOR QUALIFICATION OF THE OUTSTANDING PRINCIPAL AS TIER 2 CAPITAL UNDER THE REGULATORY GUIDELINES OF THE FEDERAL RESERVE, AND THE TERMS HEREOF SHALL BE INTERPRETED IN A MANNER TO SATISFY SUCH INTENT.

*[Signature Page Follows]*

## Exhibit 3.5

**Exhibit 3.5** 

**NARRAGANSETT FINANCIAL CORPORATION** 

**8.50% FIXED TO FLOATING RATE SUBORDINATED NOTE DUE DECEMBER 1, 2032** 

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY OR FUND.

THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE IS SUBORDINATED AND JUNIOR IN RIGHT OF PAYMENT TO SENIOR INDEBTEDNESS (AS DEFINED IN <u>SECTION 3</u> (SUBORDINATION) OF THIS SUBORDINATED NOTE) OF NARRAGANSETT FINANCIAL CORPORATION (THE "<u>COMPANY</u>"), INCLUDING OBLIGATIONS OF THE COMPANY TO ITS GENERAL AND SECURED CREDITORS AND IS UNSECURED. IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT BY THE COMPANY OR ANY OF ITS SUBSIDIARIES.

THIS SUBORDINATED NOTE IS A GLOBAL SUBORDINATED NOTE WITHIN THE MEANING OF <u>SECTION 5</u> OF THIS SUBORDINATED NOTE AND IS REGISTERED IN THE NAME OF CEDE & CO AS NOMINEE OF THE DEPOSITORY TRUST COMPANY ("DTC") OR A NOMINEE OF DTC. THIS SUBORDINATED NOTE IS EXCHANGEABLE FOR SUBORDINATED NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN <u>SECTION 5</u> OF THIS SUBORDINATED NOTE, AND NO TRANSFER OF THIS SUBORDINATED NOTE (OTHER THAN A TRANSFER OF THIS SUBORDINATED NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES SPECIFIED IN THIS SUBORDINATED NOTE.

UNLESS THIS SUBORDINATED NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SUBORDINATED NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO, OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN <u>SECTION 5</u> OF THIS SUBORDINATED NOTE.

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IN THE EVENT OF LIQUIDATION ALL HOLDERS OF SENIOR INDEBTEDNESS OF THE COMPANY SHALL BE ENTITLED TO BE PAID IN FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT SHALL BE MADE ON ACCOUNT OF PRINCIPAL OF OR INTEREST ON THIS SUBORDINATED NOTE. AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH HOLDERS OF SENIOR INDEBTEDNESS, THE HOLDER OF THIS SUBORDINATED NOTE, TOGETHER WITH THE HOLDERS OF ANY OBLIGATIONS OF THE COMPANY RANKING ON A PARITY WITH THE SUBORDINATED NOTES, SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF THE COMPANY THE UNPAID PRINCIPAL AMOUNT OF THIS SUBORDINATED NOTE PLUS ACCRUED AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION, WHETHER IN CASH, PROPERTY OR OTHERWISE, SHALL BE MADE (I) WITH RESPECT TO ANY OBLIGATION THAT BY ITS TERMS EXPRESSLY IS JUNIOR IN THE RIGHT OF PAYMENT TO THE SUBORDINATED NOTES, (II) WITH RESPECT TO ANY INDEBTEDNESS BETWEEN THE COMPANY AND ANY OF ITS SUBSIDIARIES OR AFFILIATES OR (III) ON ACCOUNT OF ANY SHARES OF CAPITAL STOCK OF THE COMPANY.

THIS SUBORDINATED NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SUBORDINATED NOTE IN A DENOMINATION OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS SUBORDINATED NOTE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON THIS SUBORDINATED NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SUBORDINATED NOTE.

THIS SUBORDINATED NOTE MAY BE SOLD ONLY IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THIS SUBORDINATED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS, OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SUBORDINATED NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

**CERTAIN ERISA CONSIDERATIONS:** 

THE HOLDER OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH, A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-

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60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SUBORDINATED NOTE, OR ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE AND HOLDING. ANY PURCHASER OR HOLDER OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER: (I) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE BENEFIT PLAN OR OTHER PLAN, OR ANY OTHER PERSON OR ENTITY USING THE "PLAN ASSETS" OF ANY SUCH PLAN OR OTHER PLAN TO FINANCE SUCH PURCHASE OR (II) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

**ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING THE ACQUISITION OF THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN SHOULD CONSULT WITH HIS OR HER LEGAL COUNSEL PRIOR TO ACQUIRING THIS SUBORDINATED NOTE OR ANY INTEREST HEREIN.** 

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No. <br> CUSIP: 631004AG3

**NARRAGANSETT FINANCIAL CORPORATION** 

8.50% FIXED TO FLOATING RATE SUBORDINATED NOTE DUE 2032

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Subordinated Notes</u>**. This Subordinated note is one of an issue of notes of Narragansett Financial Corporation, a Massachusetts-chartered mutual holding company (the "Company"), designated as the "8.50% Fixed to Floating Rate Subordinated Notes due 2032" (the "<u>Subordinated Notes</u>") issued pursuant to that Subordinated Note Purchase Agreement dated as of the date upon which this Subordinated Note was originally issued (the "<u>Issue Date</u>") between the Company and the several purchasers of the Subordinated Notes identified in the signature pages thereto (the "<u>Purchase Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Payment</u>**. The Company, for value received, promises to pay to Cede & Co., or its registered assigns, as nominee of The Depository Trust Company, or its registered assigns, the principal sum of _____________________________________ (U.S.) ($__________), plus accrued but unpaid interest on December 1, 2032 (the "<u>Maturity Date</u>") and to pay interest thereon (i) from and including the original issue date of the Subordinated Notes to but excluding December 1, 2027 or the earlier redemption date contemplated by <u>Section 4</u> (Redemption) of this Subordinated Note (the "<u>Fixed Rate Period</u>"), at the rate of 8.50% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months and payable semi-annually in arrears on June 1 and December 1 of each year (each payment date, a "<u>Fixed Interest Payment Date</u>"), beginning June 1, 2023, and (ii) from and including December 1, 2027 to but excluding the Maturity Date or earlier redemption date contemplated by Section 4 (Redemption) of this Subordinated Note (the "<u>Floating Rate Period</u>"), at the rate per annum, reset quarterly, equal to the Floating Interest Rate (as defined below) determined on the Floating Interest Determination Date (as defined below) of the applicable interest period plus 481 basis points, computed on the basis of a 360-day year and the actual number of days elapsed and payable quarterly in arrears (each quarterly period a "<u>Floating Interest Period</u>") on March 1, June 1, September 1 and December 1 of each year (each payment date, a "<u>Floating Interest Payment Date</u>"). Dollar amounts resulting from this calculation shall be rounded to the nearest cent, with one-half cent being rounded up. The term "<u>Floating Interest Determination Date</u>" means the date upon which the Floating Interest Rate is determined by the Calculation Agent (as defined below) pursuant to the Three-Month Term SOFR Conventions. Notwithstanding anything to the contrary, (i) in the event the Three-Month Term SOFR (as defined below) is less than zero, the Three-Month Term SOFR shall be deemed to be zero, and (ii) if a Benchmark Transition Event (as defined below) and its related Benchmark Replacement Date (as defined below) have occurred and the Benchmark Replacement (as defined below) is less than zero, then the Benchmark Replacement shall be deemed to be zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An "<u>Interest Payment Date</u>" is either a Fixed Interest Payment Date or a Floating Interest Payment Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The "<u>Floating Interest Rate</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) initially Three-Month Term SOFR (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing <u>clause (i)</u> of this <u>Section 2(b)</u>:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If the Calculation Agent, determines prior to the relevant Floating Interest Determination Date that a Benchmark Transition Event and its related Benchmark Replacement Date (each of such terms as defined below) have occurred with respect to Three-Month Term SOFR, then the Company shall promptly provide notice of such determination to the Noteholders and <u>Section 2(c)</u> (Effect of Benchmark Transition Event) will thereafter apply to all determinations, calculations and quotations made or obtained for the purposes of calculating the Floating Interest Rate payable on the Subordinated Notes during a relevant Floating Interest Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) However, if the Calculation Agent, determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR, but for any reason the Benchmark Replacement has not been determined as of the relevant Floating Interest Determination Date, the Floating Interest Rate for the applicable Floating Interest Period will be equal to the Floating Interest Rate on the last Floating Interest Determination Date for the Subordinated Notes, as determined by the Calculation Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the then-current Benchmark is Three-Month Term SOFR and any of the foregoing provisions concerning the calculation of the interest rate and the payment of interest during the Floating Rate Period are inconsistent with any of the Three-Month Term SOFR Conventions (as defined below) determined by the Company, then the relevant Three-Month Term SOFR Conventions will apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Effect of Benchmark Transition Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time (as defined below) in respect of any determination of the Benchmark (as defined below) on any date, the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Subordinated Notes during the relevant Floating Interest Period in respect of such determination on such date and all determinations on all subsequent dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In connection with the implementation of a Benchmark Replacement, the Company will have the right to make Benchmark Replacement Conforming Changes from time to time, and such changes shall become effective without consent from the relevant Noteholders (as defined below) or any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any determination, decision or election that may be made by the Company or by the Calculation Agent pursuant to the benchmark transition provisions set forth herein, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date, and any decision to take or refrain from taking any action or any selection:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) will be conclusive and binding absent manifest error;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if made by the Company, will be made in the Company's sole discretion;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if made by the Calculation Agent, will be made after consultation with the Company, and the Calculation Agent will not make any such determination, decision or election to which the Company reasonably objects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) notwithstanding anything to the contrary in this Subordinated Note or the Purchase Agreement, shall become effective without consent from the relevant Noteholders (as defined below) or any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For the avoidance of doubt, after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred, interest payable on this Subordinated Note for the Floating Rate Period will be an annual rate equal to the sum of the applicable Benchmark Replacement and the spread specified on the face hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) As used in this Subordinated Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "<u>Benchmark</u>" means, initially, Three-Month Term SOFR; provided that if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR or the then-current Benchmark, then "<u>Benchmark</u>" means the applicable Benchmark Replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) "<u>Benchmark Replacement</u>" means the Interpolated Benchmark with respect to the then-current Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark as of the Benchmark Replacement Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated Benchmark with respect to Three-Month Term SOFR shall be determined), then "<u>Benchmark Replacement</u>" means the first alternative set forth in the order below that can be determined by the Calculation Agent, as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The sum of (i) Compounded SOFR and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the sum of: (i) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current Benchmark for the applicable Corresponding Tenor and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the sum of: (i) the ISDA Fallback Rate and (ii) the Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the sum of: (i) the alternate rate of interest that has been selected by the Company as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar denominated floating rate notes at such time and (ii) the Benchmark Replacement Adjustment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) "<u>Benchmark Replacement Adjustment</u>" means the first alternative set forth in the order below that can be determined by the Calculation Agent, as of the Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the spread adjustment (which may be a positive or negative value or zero) that has been selected by the Company giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar denominated floating rate notes at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) "<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "<u>Floating Interest Period</u>," timing and frequency of determining rates with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors and other administrative matters) that the Company decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Company decides that adoption of any portion of such market practice is not administratively feasible or if the Company determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Company determines is reasonably necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) "<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. in the case of <u>clause a</u> of the definition of "<u>Benchmark Transition Event</u>," the relevant Reference Time in respect of any determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. in the case of <u>clause b</u> or c of the definition of "<u>Benchmark Transition Event</u>," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. in the case of <u>clause d</u> of the definition of "<u>Benchmark Transition Event</u>," the date of such public statement or publication of information referenced therein.

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for purposes of such determination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) "<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. if the Benchmark is Three-Month Term SOFR, (i) the Relevant Governmental Body has not selected or recommended a forward-looking term rate for a tenor of three months based on SOFR, (ii) the development of a forward-looking term rate for a tenor of three months based on SOFR that has been recommended or selected by the Relevant Governmental Body is not complete or (iii) the Company determines that the use of a forward-looking rate for a tenor of three months based on SOFR is not administratively feasible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. a public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) "<u>Calculation Agent</u>" means such bank or other entity (which may be the Company or an affiliate of the Company) as may be appointed by the Company to act as Calculation Agent for the Subordinated Notes during the Floating Rate Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) "<u>Compounded SOFR</u>" means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this rate, and conventions for this rate being established by the Company or its designee in accordance with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental Body for determining compounded SOFR; *provided* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. if, and to the extent that, the Company or its designee determines that Compounded SOFR cannot be determined in accordance with <u>clause a</u> above, then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Company or its designee giving due consideration to any industry-accepted market practice for U.S. dollar denominated floating rate notes at such time.

For the avoidance of doubt, the calculation of Compounded SOFR will exclude the Benchmark Replacement Adjustment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) "<u>Corresponding Tenor</u>" with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding Business Day adjustment) as the applicable tenor for the then-current Benchmark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) "<u>FRBNY</u>" means the Federal Reserve Bank of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) "<u>FRBNY</u>'s Website" means the website of the FRBNY at http://www.newyorkfed.org, or any successor source.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) "<u>Interpolated Benchmark</u>" with respect to the Benchmark means the rate determined for the Corresponding Tenor by interpolating on a linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter than the Corresponding Tenor and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than the Corresponding Tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) "<u>ISDA</u>" means the International Swaps and Derivatives Association, Inc. or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) "<u>ISDA Definitions</u>" means the 2006 ISDA Definitions published by the ISDA or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) "<u>ISDA Fallback Adjustment</u>" means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) "<u>ISDA Fallback Rate</u>" means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) "<u>Reference Time</u>" with respect to any determination of a Benchmark means (1) if the Benchmark is Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (2) if the Benchmark is not Three-Month Term SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming Changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) "<u>Relevant Governmental Body</u>" means the Board of Governors of the Federal Reserve System (the "<u>Federal Reserve</u>") and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve and/or the FRBNY or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) "<u>SOFR</u>" means the daily Secured Overnight Financing Rate provided by the FRBNY, as the administrator of the benchmark (or a successor administrator), on the FRBNY's Website.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) "<u>Term SOFR</u>" means the forward-looking term rate for the Corresponding Tenor based on SOFR that has been selected or recommended by the Relevant Governmental Body.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) "<u>Term SOFR Administrator</u>" means any entity designated by the Relevant Governmental Body as the administrator of Term SOFR (or a successor administrator).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) "<u>Three-Month Term SOFR</u>" means the rate for Term SOFR for a tenor of three months that is published by the Term SOFR Administrator at the Reference Time for any Floating Interest Period, as determined by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) "<u>Three-Month Term SOFR Conventions</u>" means any determination, decision or election with respect to any technical, administrative or operational matter (including with respect to the manner and timing of the publication of Three-Month Term SOFR, or changes to the definition of "Floating Interest Period", timing and frequency of determining Three-Month Term SOFR with respect to each Floating Interest Period and making payments of interest, rounding of amounts or tenors, and other administrative matters) that the Company decides may be appropriate to reflect the use of Three-Month Term SOFR as the Benchmark in a manner substantially consistent with market practice (or, if the Company decides that adoption of any portion of such market practice is not administratively feasible or if the Company determines that no market practice for the use of Three-Month Term SOFR exists, in such other manner as the Company determines is reasonably necessary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) "<u>Unadjusted Benchmark Replacement</u>" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that any Fixed Interest Payment Date during the Fixed Rate Period falls on a day that is not a Business Day (as defined below), the interest payment due on that date shall be postponed to the next day that is a Business Day and no additional interest shall accrue as a result of that postponement. In the event that any Floating Interest Payment Date during the Floating Rate Period falls on a day that is not a Business Day (as defined below), the interest payment due on that date shall be postponed to the next day that is a Business Day and interest shall accrue to but excluding the date interest is paid. However, if the postponement would cause the day to fall in the next calendar month during the Floating Interest Period, the Floating Interest Payment Date shall instead be brought forward to the immediately preceding Business Day. The term "Business Day" means any day other than a Saturday or Sunday or any other day on which banking institutions in the Commonwealth of Massachusetts are generally authorized or required by law or executive order to be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Subordination</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The indebtedness of the Company evidenced by this Subordinated Note, including the principal and interest on this Subordinated Note, shall be subordinate and junior in right of payment to the prior payment in full of all existing claims of creditors of the Company and depositors of any bank subsidiary of the Company, including BayCoast Bank (the "<u>Bank</u>") whether now outstanding or subsequently created, assumed, guaranteed or incurred (collectively, "<u>Senior Indebtedness</u>"), which shall consist of principal of (and premium, if any) and interest, if any, on: (i) all indebtedness and obligations of, or guaranteed or assumed by, the Company for money borrowed, whether or not evidenced by bonds, debentures, securities, notes or other similar instruments, and including, but not limited to all deposits of the Bank, and all obligations to the Company's general and secured creditors; (ii) any deferred obligations of the Company for the

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payment of the purchase price of property or assets acquired other than in the ordinary course of business; (iii) all obligations, contingent or otherwise, of the Company in respect of any letters of credit, bankers' acceptances, security purchase facilities and similar direct credit substitutes; (iv) any capital lease obligations of the Company; (v) all obligations of the Company in respect of interest rate swap, cap or other agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts, commodity contracts and other similar arrangements or derivative products; (vi) all obligations that are similar to those in clauses (i) through (v) of other persons for the payment of which the Company is responsible or liable as obligor, guarantor or otherwise arising from an off-balance sheet guarantee; (vii) all obligations of the types referred to in clauses (i) through (vi) of other persons secured by a lien on any property or asset of the Company; and (viii) in the case of (i) through (vii) above, all amendments, renewals, extensions, modifications and refundings of such indebtedness and obligations; except "Senior Indebtedness" does not include (A) the Subordinated Notes, (B) any obligation that by its terms expressly is junior to, or ranks equally in right of payment with, the Subordinated Notes, including the Company's existing 3.875% fixed-to-floating rate subordinated notes due 2031 and the Company's existing 5.875% fixed-to-floating rate subordinated notes due 2027, or (C) any indebtedness between the Company and any of its subsidiaries or Affiliates. This Subordinated Note is not secured by any assets of the Company or any of its subsidiaries or Affiliates. The term "<u>Affiliate(s)</u>" means, with respect to any Person (as such term is defined in the Purchase Agreement), such Person's immediate family members, partners, members or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of liquidation of the Company, holders of Senior Indebtedness of the Company shall be entitled to be paid in full with such interest as may be provided by law before any payment shall be made on account of principal of or interest on this Subordinated Note. Additionally, in the event of any insolvency, dissolution, assignment for the benefit of creditors or any liquidation or winding up of or relating to the Company, whether voluntary or involuntary, holders of Senior Indebtedness shall be entitled to be paid in full before any payment shall be made on account of the principal of or interest on the Subordinated Notes, including this Subordinated Note. In the event of any such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, the registered holders of the Subordinated Notes from time to time (each a "<u>Noteholder</u>" and, collectively, the "<u>Noteholders</u>"), together with the holders of any obligations of the Company ranking on parity with the Subordinated Notes, shall be entitled to be paid from the remaining assets of the Company the unpaid principal thereof, and the unpaid interest thereon before any payment or other distribution, whether in cash, property or otherwise, shall be made (i) with respect to any obligation that by its terms expressly is junior to in the right of payment to the Subordinated Notes, (ii) with respect to any indebtedness between the Company and any of its subsidiaries or Affiliates or (iii) on account of any capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If there shall have occurred and be continuing (i) a default in any payment with respect to any Senior Indebtedness or (ii) an event of default with respect to any Senior Indebtedness as a result of which the maturity thereof is accelerated, unless and until such payment default or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Company with respect to the Subordinated Notes. The provisions of this paragraph shall not apply to any payment with respect to which the immediately preceding paragraph of this <u>Section 3</u> (Subordination) would be applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing herein shall act to prohibit, limit or impede the Company from issuing additional debt of the Company having the same rank as the Subordinated Notes or which may be junior or senior in rank to the Subordinated Notes. Each Noteholder, by its acceptance hereof, further acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration for each holder of any Senior Indebtedness, whether such Senior Indebtedness was created or acquired before or after the issuance of the Subordinated Notes, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold or in continuing to hold such Senior Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Redemption</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Redemption Prior to Fifth Anniversary</u>. This Subordinated Note shall not be redeemable by the Company in whole or in part prior to December 1, 2027, except in the event of a: (i) Tier 2 Capital Event (as defined below); (ii) Tax Event (as defined below); or (iii) Investment Company Event (as defined below). Upon the occurrence of a Tier 2 Capital Event, a Tax Event or an Investment Company Event, the Company may redeem this Subordinated Note, subject to <u>Section 4(f)</u> (Regulatory Approvals) hereof, in whole or in part at any time, upon giving not less than ten (10) days' notice to the holder of this Subordinated Note at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date. "<u>Tier 2 Capital Event</u>" means the receipt by the Company of an opinion of counsel to the Company to the effect that there is a material risk that this Subordinated Note no longer qualifies as "Tier 2" Capital (as defined by the Federal Reserve) (or its then equivalent) as a result of a change in law or regulation, or interpretation or application thereof, by any judicial, legislative or regulatory authority that becomes effective after the date of issuance of this Subordinated Note. "<u>Tax Event</u>" means the receipt by the Company of an opinion of counsel to the Company that as a result of any amendment to, or change (including any final and adopted (or enacted) prospective change) in, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, there exists a material risk that interest payable by the Company on the Subordinated Notes is not, or within one hundred and twenty (120) days after the receipt of such opinion will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes. "<u>Investment Company Event</u>" means the receipt by the Company of an opinion of counsel to the Company to the effect that there is a material risk that the Company is or, within one hundred twenty (120) days after the receipt of such opinion will be, required to register as an investment company pursuant to the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Redemption on or after Fifth Anniversary</u>. On or after December 1, 2027, subject to the provisions of <u>Section 4(f)</u> (Regulatory Approvals) hereof, this Subordinated Note shall be redeemable at the option of and by the Company, in whole or in part from time to time upon any Interest Payment Date, at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued but unpaid interest, to but excluding the redemption date, but in all cases in a principal amount with integral multiples of $1,000. In addition, the Company may redeem all or a portion of the Subordinated Notes, at any time upon the occurrence of a Tier 2 Capital Event, Tax Event or an Investment Company Event. The redemption referenced in this <u>Section 4(b)</u> (Redemption on or after Fifth Anniversary) shall be subject to the receipt of any required regulatory approval.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Partial Redemption</u>. If less than the then outstanding principal amount of this Subordinated Note is redeemed, (i) a new Subordinated Note shall be issued representing the unredeemed portion without charge to the holder thereof and (ii) such redemption shall be effected on a pro rata basis as to the Noteholders. For purposes of clarity, upon a partial redemption, a like percentage of the principal amount of every Subordinated Note held by every Noteholder shall be redeemed. Partial redemptions will be processed through the Depository Trust Issuer Corporation, in accordance with its rules and regulations, as a pro rata pass-through of principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Redemption at Option of Noteholder</u>. This Subordinated Note is not subject to redemption at the option of the holder of this Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Effectiveness of Redemption</u>. If notice of redemption has been duly given and notwithstanding that this Subordinated Note has been called for redemption but has not yet been surrendered for cancellation, on and after the date fixed for redemption interest shall cease to accrue on the portion of this Subordinated Note called for redemption, this Subordinated Note shall no longer be deemed outstanding with respect to the portion called for redemption and all rights with respect to the portion of this Subordinated Note called for redemption shall forthwith on such date fixed for redemption cease and terminate unless the Company shall default in the payment of the redemption price, except only the right of the holder hereof to receive the amount payable on such redemption, without interest. For purposes of clarity, any redemption made pursuant to the terms of this Subordinated Note shall be made on a pro rata basis, and, for purposes of a redemption processed through DTC, on a "Pro Rata Pass-Through Distribution of Principal" basis, among all of the Subordinated Notes outstanding at the time thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Regulatory Approvals</u>. Any such redemption shall be subject to receipt of any and all required federal and state regulatory approvals or non-objections, including, but not limited to, the consent of the Federal Reserve. In the case of any redemption of this Subordinated Note pursuant to paragraph (b) of this <u>Section 4</u> (Redemption), the Company will give the holder hereof notice of redemption, which notice shall indicate the aggregate principal amount of Subordinated Notes to be redeemed, not less than thirty (30) nor more than forty-five (45) calendar days prior to the redemption date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Purchase and Resale of the Subordinated Notes</u>. Subject to any required federal and state regulatory approvals and the provisions of this Subordinated Note, the Company shall have the right to purchase any of the Subordinated Notes at any time in the open market, private transactions or otherwise. If the Company purchases any Subordinated Notes, it may, in its discretion, hold, resell or cancel any of the purchased Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Global Subordinated Notes</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Provided that applicable depository eligibility requirements are met, upon the written election of any Noteholder that is either (i) a Qualified Institutional Buyer, as defined in Rule 144A under the Securities Act, or (ii) an institutional "accredited investor," as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act, the Company shall use its commercially reasonable efforts to cause the Subordinated Notes owned by such Noteholders to be issued in the form of one or more Global Subordinated Notes (each a "<u>Global Subordinated Note</u>") registered in the name of The Depository Trust Company or another organization registered as a clearing agency under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), and designated as Depositary by the Company or any successor thereto (the "<u>Depositary</u>") or a nominee thereof and delivered to such Depositary or a nominee thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision herein, no Global Subordinated Note may be exchanged in whole or in part for Subordinated Notes registered, and no transfer of a Global Subordinated Note in whole or in part may be registered, in the name of any person other than the Depositary for such Global Subordinated Note or a nominee thereof unless (i) such Depositary advises the Company in writing that such Depositary is no longer willing or able to properly discharge its responsibilities as Depositary with respect to such Global Subordinated Note, and no qualified successor is appointed by the Company within ninety (90) days of receipt by the Company of such notice, (ii) such Depositary ceases to be a clearing agency registered under the Exchange Act and no successor is appointed by the Company within ninety (90) days after obtaining knowledge of such event, (iii) the Company elects to terminate the book-entry system through the Depositary or (iv) an Event of Default (as defined in <u>Section 6</u> (Events of Default; Acceleration)) shall have occurred and be continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) of this <u>Section 5(b)</u>, the Company or its agent shall notify the Depositary and instruct the Depositary to notify all owners of beneficial interests in such Global Subordinated Note of the occurrence of such event and of the availability of Subordinated Notes to such owners of beneficial interests requesting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Global Subordinated Note is to be exchanged for other Subordinated Notes or canceled in part, or if another Subordinated Note is to be exchanged in whole or in part for a beneficial interest in any Global Subordinated Note, then either (i) such Global Subordinated Note shall be so surrendered for exchange or cancellation as provided in this <u>Section 5</u> or (ii) the principal amount thereof shall be reduced or increased by an amount equal to the portion thereof to be so exchanged or canceled, or equal to the principal amount of such other Subordinated Note to be so exchanged for a beneficial interest therein, as the case may be, by means of an appropriate adjustment made on the records of the Company or, if applicable, the Company's registrar and transfer agent ("<u>Registrar</u>"), whereupon the Company or, if applicable, the Registrar, in accordance with the applicable rules and procedures of the Depositary ("<u>Applicable Depositary Procedures</u>"), shall instruct the Depositary or its authorized representative to make a corresponding adjustment to its records. Upon any such surrender or adjustment of a Global Subordinated Note by the Depositary, accompanied by registration instructions, the Company shall execute and deliver any Subordinated Notes issuable in exchange for such Global Subordinated Note (or any portion thereof) in accordance with the instructions of the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Every Subordinated Note executed and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Subordinated Note or any portion thereof shall be executed and delivered in the form of, and shall be, a Global Subordinated Note, unless such Subordinated Note is registered in the name of a person other than the Depositary for such Global Subordinated Note or a nominee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Depositary or its nominee, as the registered owner of a Global Subordinated Note, shall be the holder of such Global Subordinated Note for all purposes under this Subordinated Note, and owners of beneficial interests in a Global Subordinated Note shall hold such interests pursuant to Applicable Depositary Procedures. Accordingly, any such owner's beneficial interest in a Global Subordinated Note shall be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee or its Depositary participants. If applicable, the Registrar shall be entitled to deal with the Depositary

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for all purposes relating to a Global Subordinated Note (including the payment of principal and interest thereon and the giving of instructions or directions by owners of beneficial interests therein and the giving of notices) as the sole holder of the Subordinated Note and shall have no obligations to the owners of beneficial interests therein. The Registrar shall have no liability in respect of any transfers undertaken by the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The rights of owners of beneficial interests in a Global Subordinated Note shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such owners and the Depositary and/or its participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No holder of any beneficial interest in any Global Subordinated Note held on its behalf by a Depositary shall have any rights with respect to such Global Subordinated Note, and such Depositary may be treated by the Company and any agent of the Company as the owner of such Global Subordinated Note for all purposes whatsoever. Neither the Company nor any agent of the Company will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Subordinated Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. Notwithstanding the foregoing, nothing herein shall prevent the Company or any agent of the Company from giving effect to any written certification, proxy or other authorization furnished by a Depositary or impair, as between a Depositary and such holders of beneficial interests, the operation of customary practices governing the exercise of the rights of the Depositary (or its nominee) as holder of any Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company, within thirty (30) calendar days after the receipt of written notice from the Noteholder or any other holder of the Subordinated Notes of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all the Noteholders, at their addresses shown on the Security Register (as defined in Section 14 (Registration of Transfer, Security Register) below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by Company in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. <u>Events of Default; Acceleration</u>**.

Each of the following events shall constitute an "<u>Event of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the entry of a decree or order for relief in respect of the Company by a court having jurisdiction in the premises in an involuntary case or proceeding under any applicable bankruptcy, insolvency, or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, and such decree or order will have continued unstayed and in effect for a period of sixty (60) consecutive days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency or reorganization law, now or hereafter in effect of the United States or any political subdivision thereof, or the consent by the Company to the entry of a decree or order for relief in an involuntary case or proceeding under any such law;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Company (i) becomes insolvent or is unable to pay its debts as they mature, (ii) makes an assignment for the benefit of creditors, (iii) admits in writing its inability to pay its debts as they mature, or (iv) ceases to be a bank holding company or financial holding company under the Bank Holding Company Act of 1956, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the failure of the Company to pay any installment of interest on any of the Subordinated Notes as and when the same will become due and payable, and the continuation of such failure for a period of fifteen (15) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the failure of the Company to pay all or any part of the principal of any of the Subordinated Notes as and when the same will become due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the liquidation of the Company (for avoidance of doubt, "liquidation" does not include any merger, consolidation, sale of equity or assets or reorganization (exclusive of a reorganization in bankruptcy) of the Company or any of its subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the failure of the Company to perform any other covenant or agreement on the part of the Company contained in the Subordinated Notes, and the continuation of such failure for a period of thirty (30) days after the date on which notice specifying such failure, stating that such notice is a "Notice of Default" hereunder and demanding that the Company remedy the same, will have been given, in the manner set forth in <u>Section 22</u> (Notices), to the Company by a Noteholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the default by the Company under any bond, debenture, note or other evidence of indebtedness for money borrowed by the Company having an aggregate principal amount outstanding of at least $25,000,000, whether such indebtedness now exists or is created or incurred in the future, which default (i) constitutes a failure to pay any portion of the principal of such indebtedness when due and payable after the expiration of any applicable grace period or (ii) results in such indebtedness becoming due or being declared due and payable prior to the date on which it otherwise would have become due and payable without, in the case of clause (i), such indebtedness having been discharged or, in the case of clause (ii), without such indebtedness having been discharged or such acceleration having been rescinded or annulled.

Unless the principal amount of this Subordinated Note already shall have become due and payable, if an Event of Default set forth in <u>Section 6(a)</u> or <u>Section 6(b)</u> above shall have occurred and be continuing, the Noteholder, by notice in writing to the Company, may declare the principal amount, and any accrued and unpaid interest thereon, of this Subordinated Note to be due and payable immediately and, upon any such declaration, the same shall become and shall be immediately due and payable, and the Company waives demand, presentment for payment, notice of nonpayment, notice of protest, and all other notices. Notwithstanding the foregoing, because the Company will treat the Subordinated Notes as Tier 2 Capital, upon the occurrence of an Event of Default other than an Event of Default described in <u>Section 6(a)</u> or <u>Section 6(b)</u>, no Noteholder may accelerate the Stated Maturity of the Subordinated Notes and make the principal of, and any accrued and unpaid interest on, the Subordinated Notes, immediately due and payable. The Company, within forty-five (45) calendar days after the receipt of written notice from any Noteholder of the occurrence of an Event of Default with respect to this Subordinated Note, shall mail to all Noteholders, at their addresses shown on the Security Register (as defined in <u>Section 14</u> (Registration of Transfer, Security Register) below), such written notice of Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice as certified by the Company in writing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. <u>Failure to Make Payments</u>**. In the event of an Event of Default under <u>Section 6(c)</u>, <u>Section 6(d)</u> or <u>Section 6(e)</u> above, the Company will, upon demand of the Noteholder, pay to the Noteholder the amount then due and payable on this Subordinated Note for principal and interest (without acceleration of the Subordinated Note in any manner), with interest on the overdue principal and interest at the per annum rate borne by this Subordinated Note, to the extent permitted by applicable law. If the Company fails to pay such amount upon such demand, the holder of this Subordinated Note may, among other things, institute a judicial proceeding for the collection of the sums so due and unpaid and such amount as shall be sufficient to cover the reasonable costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of such Noteholder, its agents and counsel, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property of the Company.

Upon the occurrence of a failure by the Company to make any required payment of principal or interest on this Subordinated Note or an Event of Default, until such Event of Default is cured by the Company or waived by the Noteholders in accordance with <u>Section 18</u> (Waiver and Consent) hereof, except as may be required by any federal or state bank regulatory agency, the Company shall not: (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Company's capital stock; (b) make any payment of principal or interest or premium, if any, on or repay, repurchase or redeem any indebtedness of the Company that ranks equal with or junior to the Subordinated Notes; or (c) make any payments under any guarantee that ranks equal with or junior to the Subordinated Notes, other than: (i) any dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Company's common stock; (ii) any declaration of a non-cash dividend in connection with the implementation of a shareholders' rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of the Company's capital stock or the exchange or conversion of one class or series of the Company's capital stock for another class or series of the Company's capital stock; (iv) the purchase of fractional interests in shares of the Company's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or (v) purchases of any class of the Company's common stock related to the issuance of common stock or rights under any benefit plans for the Company's directors, officers or employees or any of the Company's dividend reinvestment plans (the foregoing clauses (i) through (v) are collectively referred to as the "<u>Permitted Dividends</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. <u>Affirmative Covenants of the Company</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice of Certain Events</u>. To the extent permitted by applicable statute, rule or regulation, the Company shall provide written notice to the Noteholder of the occurrence of any of the following events as soon as practicable, but in no event later than fifteen (15) Business Days following the Company becoming aware of the occurrence of such event:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company or any of its banking subsidiaries become less than "well-capitalized" as defined under the then applicable regulatory capital standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company, or any of the Company's subsidiaries, or any officer of the Company (in such capacity), becomes subject to any formal, written regulatory enforcement action (as defined by the applicable state or federal bank regulatory authority);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The dollar amount of any nonperforming assets of the Company on a consolidated basis as of the end of a given fiscal quarter as a percentage of the Company's total loan portfolio exceeds 5%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The appointment, resignation, removal or termination of the chief executive officer, president, chief operating officer, chief financial officer, chief credit officer, chief lending officer or any director of the Company or the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company converts from mutual to stock form, including any "partial conversion" transaction, in which the Company continues to hold, directly or indirectly, a majority ownership interest in the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Principal and Interest</u>. The Company covenants and agrees for the benefit of the Noteholder that it will duly and punctually pay the principal of, and interest on, this Subordinated Note, in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Maintenance of Office</u>. The Company will maintain an office or agency in the Commonwealth of Massachusetts where Subordinated Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of the Subordinated Notes may be served.

The Company may also from time to time designate one or more other offices or agencies where the Subordinated Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; *provided* that no such designation or rescission will in any manner relieve the Company of its obligation to maintain an office or agency in the Commonwealth of Massachusetts. The Company will give prompt written notice to the Noteholders of any such designation or rescission and of any change in the location of any such other office or agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Corporate Existence</u>. The Company will do or cause to be done all things necessary to preserve and keep in full force and effect: (i) the corporate existence of the Company; (ii) the existence (corporate or other) of each subsidiary; and (iii) the rights (constituent governing documents and statutory), licenses and franchises of the Company and each of its subsidiaries; provided, however, that the Company will not be required to preserve the existence (corporate or other) of any of its subsidiaries or any such right, license or franchise of the Company or any of its subsidiaries if the Board of Directors of the Company determines that the preservation thereof is no longer desirable in the conduct of the business of the Company and its subsidiaries taken as a whole and that the loss thereof will not be disadvantageous in any material respect to the Noteholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Maintenance of Properties</u>. The Company will, and will cause each subsidiary to, cause all its properties used or useful in the conduct of its business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; *provided, however*, that nothing in this <u>Section 8(e)</u> will prevent the Company or any subsidiary from discontinuing the operation and maintenance of any of their respective properties if such discontinuance is, in the reasonable judgment of the Board of Directors of the Company or of any subsidiary, as the case may be, desirable in the conduct of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Transfer of Voting Stock</u>. The Company will not, nor will it permit the Bank to, directly or indirectly, sell, assign, transfer or otherwise dispose of any shares of, securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock (as defined below) of the Bank or any successor thereof or any subsidiary of the Company that is a depository institution and that has consolidated assets equal to 30% or more of the Company's consolidated assets ("<u>Material Subsidiary</u>"), nor will the Company permit the Material Subsidiary to issue any shares of, or securities convertible into, or options, warrants or rights to subscribe for or purchase shares of, Voting Stock of the Material Subsidiary if, in each case, after giving effect to any such transaction and to the issuance of the maximum number of shares of Voting Stock of the Material Subsidiary issuable upon the exercise of all such convertible securities, options, warrants or rights, the Company would cease to own, directly or indirectly, at least 80% of the issued and outstanding Voting Stock of the Material Subsidiary. "<u>Voting Stock</u>" means outstanding shares of capital stock having voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power because of default in dividends or other default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Waiver of Certain Covenants</u>. The Company may omit in any particular instance to comply with any term, provision or condition set forth in <u>Section 8(c)</u> (Maintenance of Office), <u>Section 8(d)</u> (Corporate Existence), <u>Section 8(e)</u> (Maintenance of Properties), or <u>Section 8(f)</u> (Transfer of Voting Stock) above, with respect to this Subordinated Note if before the time for such compliance the Noteholders of at least a majority in aggregate principal amount of the outstanding Subordinated Notes, by act of such Noteholders, either will waive such compliance in such instance or generally will have waived compliance with such term, provision or condition, but no such waiver will extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver will become effective, the obligations of the Company in respect of any such term, provision or condition will remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Tier 2 Capital</u>. Whether or not the Company is subject to consolidated capital requirements under applicable regulations of the Federal Reserve, if all or any portion of the Subordinated Notes ceases to be deemed to be Tier 2 Capital, other than due to the limitation imposed on the capital treatment of subordinated debt during the five (5) years immediately preceding the Stated Maturity of the Subordinated Notes, the Company will promptly notify the Noteholders and thereafter, the Company and the Noteholders will work together in good faith to execute and deliver all agreements as reasonably necessary in order to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to qualify as Tier 2 Capital; *provided, however*, that nothing contained in this <u>Section 8(h)</u> (Tier 2 Capital) shall limit the Company's right to redeem the Subordinated Notes upon the occurrence of a Tier 2 Capital Event pursuant to <u>Section 4(a)</u> (Redemption Prior to Fifth Anniversary) or <u>Section 4(b)</u> (Redemption on or after Fifth Anniversary).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Compliance with Laws</u>. The Company and each Subsidiary shall comply with the requirements of all laws, regulations, orders and decrees applicable to it or its properties, except for such noncompliance that would not reasonably be expected to have a Material Adverse Effect (as such term is defined in the Purchase Agreement) on the Company and its subsidiaries taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Taxes and Assessments</u>. The Company shall punctually pay and discharge all material taxes, assessments, and other governmental charges or levies imposed upon it or upon its income or upon any of its properties; provided, that no such taxes, assessments or other governmental charges need be paid if they are being contested in good faith by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Financial Statements; Access to Records</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not later than forty-five (45) days following the end of each semi-annual or quarterly period, as applicable, for which the Company has not submitted a Consolidated Financial Statements for Holding Companies Reporting Form FR Y-9C to the Federal Reserve, upon request, the Company shall provide the Noteholder with a copy of the Company's unaudited parent company only balance sheet and statement of income (loss) for and as of the end of such immediately preceding fiscal quarter, prepared in accordance with past practice. Quarterly financial statements, if required herein, shall be unaudited and need not comply with the generally accepted accounting principles in effect from time to time in the United States of America ("<u>GAAP</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Not later than ninety (90) days from the end of each fiscal year, upon request the Company shall provide the Noteholder with copies of the Company's audited financial statements consisting of the consolidated balance sheet of the Company as of the fiscal year end and the related statements of income (loss) and retained earnings, stockholders' equity and cash flows for the fiscal year then ended. Such financial statements shall be prepared in accordance with GAAP applied on a consistent basis throughout the period involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In addition to the foregoing <u>Sections 8(k)(i)</u> and <u>(ii)</u>, if a Noteholder holds at least twenty five percent (25%) in aggregate principal amount (excluding any Subordinated Notes held by Company or any of its Affiliates) of the Subordinated Notes at the time outstanding, the Company agrees to furnish to such Noteholder, upon request, with such financial and business information of the Company and the Bank as such Noteholder may reasonably request as may be reasonably necessary or advisable to allow such Noteholder to confirm compliance by the Company with this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Company Statement as to Compliance</u>. The Company will deliver to the Noteholders, within one hundred twenty (120) days after the end of each fiscal year, an Officer's Certificate covering the preceding fiscal year, stating whether or not, to the best of his or her knowledge, the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Subordinated Note (without regard to notice requirements or periods of grace) and if the Company will be in default, specifying all such defaults and the nature and status thereof of which he or she may have knowledge.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Negative Covenants of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Limitation on Dividends</u>. The Company shall not declare or pay any dividend or make any distribution on capital stock or other equity securities of any kind of the Company if the Company is not "well capitalized" for regulatory purposes immediately prior to the declaration of such dividend or distribution, except for Permitted Dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Merger or Sale of Assets</u>. The Company shall not merge into another entity, effect a Change in Bank Control (as defined below) or convey, transfer or lease substantially all of its properties and assets to any person, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the continuing entity into which the Company is merged or the person which acquires by conveyance or transfer or which leases substantially all of the properties and assets of the Company shall be a corporation, association or other legal entity organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and expressly assumes the due and punctual payment of the principal of and any premium and interest on the Subordinated Notes according to their terms, and the due and punctual performance of all covenants and conditions hereof on the part of the Company to be performed or observed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately after giving effect to such transaction, no Event of Default (as defined above), and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing.

"<u>Change in Bank Control</u>" means the sale, transfer, lease or conveyance by the Company, or an issuance of equity securities by the Bank other than to the Company, in either case resulting in ownership by the Company of less than 50% of the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. <u>Denominations</u>**. The Subordinated Notes are issuable only in registered form without interest coupons in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. <u>Charges and Transfer Taxes</u>**. No service charge will be made for any registration of transfer or exchange of this Subordinated Note, or any redemption or repayment of this Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of securities or property, but the Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may be imposed in connection with the transfer or exchange of this Subordinated Note from the Noteholder requesting such transfer or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. <u>Payment Procedures</u>**. Payment of the principal and interest payable on the Maturity Date will be made by check, by wire transfer or by Automated Clearing House (ACH) transfer in immediately available funds to a bank account in the United States designated by the registered Noteholder if such Noteholder shall have previously provided wire instructions to the Company, upon presentation and surrender of this Subordinated Note at the Payment Office (as defined in <u>Section 22</u> (Notices) below) or at such other place or places as the Company shall designate by notice to the registered Noteholders as the Payment Office, provided that this Subordinated Note is presented to the Company in time for the Company to make such payments

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in such funds in accordance with its normal procedures. Payments of interest (other than interest payable on the Maturity Date) shall be made on each Interest Payment Date by wire transfer in immediately available funds or check mailed to the registered Noteholder, as such person's address appears on the Security Register. Interest payable on any Interest Payment Date shall be payable to the Noteholder in whose name this Subordinated Note is registered at the close of business on the fifteenth (15th) calendar day prior to the applicable Interest Payment Date, without regard to whether such date is a Business Day, except that interest not paid on the Interest Payment Date, if any, will be paid to the holder in whose name this Subordinated Note is registered at the close of business on a special record date fixed by the Company (a "<u>Special Record Date</u>"), notice of which shall be given to the Noteholder not less than ten (10) calendar days prior to such Special Record Date. To the extent permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Subordinated Note, on any amount of principal or interest on this Subordinated Note not paid when due. All payments on this Subordinated Note shall be applied first against costs and expenses of the Noteholder, if any, for which the Company is liable under this Subordinated Note; then against interest due hereunder; and then against principal due hereunder. The Noteholder acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Subordinated Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Subordinated Notes. In the event that the Noteholder receives payments in excess of its pro rata share of the Company's payments to the holders of all of the Subordinated Notes, then the Noteholder shall hold in trust all such excess payments for the benefit of the other Noteholders and shall pay such amounts held in trust to such other holders upon demand by such holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. <u>Form of Payment</u>**. Payments of principal of and interest on this Subordinated Note shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. <u>Registration of Transfer, Security Register</u>**. Except as otherwise provided herein, this Subordinated Note is transferable in whole or in part, and may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the Noteholder in person, or by its attorney duly authorized in writing, at the Payment Office or the offices of the Registrar. The Company or the Registrar shall maintain a register providing for the registration of the Subordinated Notes and any exchange or transfer thereof (the "Security Register"). Upon surrender or presentation of this Subordinated Note for exchange or registration of transfer, the Company or the Registrar shall execute and deliver in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $100,000 or any amount in excess thereof which is an integral multiple of $1,000 (and, in the absence of an opinion of counsel satisfactory to the Company to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name or names requested by the Noteholder. Any Subordinated Note presented or surrendered for registration of transfer or for exchange shall be duly endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly executed by the Noteholder or its attorney duly authorized in writing, with such tax identification number or other information for each person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive legend(s) appearing on such Subordinated Note or Subordinated Notes as the Company may reasonably request to comply with applicable law. No exchange or registration of transfer of this Subordinated Note shall be made on or after (i) the fifteenth (15<sup>th</sup>) day immediately preceding the Maturity Date or (ii) the due delivery of notice of redemption.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. <u>Successors and Assigns</u>**. This Subordinated Note shall be binding upon the Company and inure to the benefit of the Noteholder and its respective successors and permitted assigns. The Noteholder may assign all, or any part of, or any interest in, the Noteholder's rights and benefits hereunder only to the extent and in the manner permitted by the terms of this Note. To the extent of any such assignment, such assignee shall have the same rights and benefits against the Company and shall agree to be bound by and to comply with the terms and conditions of the Purchase Agreement as it would have had if it were the Noteholder hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. <u>Priority</u>**. The Subordinated Notes rank pari passu among themselves and pari passu, in the event of any insolvency proceeding, dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities or similar proceeding or any liquidation or winding up of the Company, with all other present or future unsecured subordinated debt obligations of the Company, except any unsecured subordinated debt that, pursuant to its express terms, is senior or subordinate in right of payment to the Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. <u>Ownership</u>**. Prior to due presentment of this Subordinated Note for registration of transfer, the Company may treat the holder in whose name this Subordinated Note is registered in the Security Register as the absolute owner of this Subordinated Note for receiving payments of principal and interest on this Subordinated Note and for all other purposes whatsoever, whether or not this Subordinated Note be overdue, and the Company shall not be affected by any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. <u>Waiver and Consent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Subordinated Note may be amended or waived pursuant to, and in accordance with, the provisions set forth herein and as set forth in Section 7.3 of the Purchase Agreement. Any such consent or waiver given by the Noteholder shall be conclusive and binding upon such Noteholder and upon all subsequent holders of this Subordinated Note and of any Subordinated Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated Note. No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Any insured depository institution which shall be a Noteholder or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Subordinated Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the indebtedness evidenced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No waiver or amendment of any term, provision, condition, covenant or agreement in the Subordinated Notes shall be effective except with the consent of the Company and Noteholders holding more than fifty percent (50%) in aggregate principal amount (excluding any Subordinated Notes held by the Company or any of its Affiliates) of the Subordinated Notes at the time outstanding; provided, however, that without the consent of each Noteholder of an affected Subordinated Note, no such amendment or waiver may: (i) reduce the principal amount of any Subordinated Note; (ii) reduce the rate of or change the time for payment of interest on any Subordinated Note; (iii) extend the maturity of any Subordinated Note; (iv) change the currency

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in which payment of the obligations of the Company under the Subordinated Notes are to be made; (v) lower the percentage of aggregate principal amount of outstanding Subordinated Notes required to approve any amendment of the Subordinated Notes; (vi) make any changes to Section 4(c) (Partial Redemption), Section 6 (Events of Default; Acceleration), Section 7 (Failure to Make Payments), Section 16 (Priority), or Section 18 (Waiver and Consent) of the Subordinated Notes that adversely affects the rights of any Noteholder; or (vii) disproportionately affect the rights of any of the holders of the then outstanding Subordinated Notes. Notwithstanding the foregoing, the Company may amend or supplement the Subordinated Notes without the consent of the Noteholders to cure any ambiguity, defect or inconsistency or to provide for uncertificated Subordinated Notes in addition to or in place of certificated Subordinated Notes, or to make any change that does not adversely affect the rights of any Noteholder of any of the Subordinated Notes. No failure to exercise or delay in exercising, by any Noteholder of the Subordinated Notes, of any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof, or the exercise of any other right or remedy provided by law, except as restricted hereby. The rights and remedies provided in this Subordinated Note are cumulative and not exclusive of any right or remedy provided by law or equity. No notice or demand on the Company in any case shall, in itself, entitle the Company to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of the Noteholders to any other or further action in any circumstances without notice or demand. No consent or waiver, expressed or implied, by the Noteholders to or of any breach or default by the Company in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of the same or any other obligations of the Company hereunder. Failure on the part of the Noteholders to complain of any acts or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Noteholders of their rights hereunder or impair any rights, powers or remedies on account of any breach or default by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. <u>Absolute and Unconditional Obligation of the Company</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No provisions of this Subordinated Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal and interest on this Subordinated Note at the times, places and rate, and in the coin or currency, herein prescribed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No delay or omission of the Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any insured depository institution which shall be a Noteholder or which otherwise shall have any beneficial ownership interest in this Subordinated Note shall, by its acceptance of such Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the indebtedness evidenced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. <u>No Sinking Fund; Convertibility</u>**. This Subordinated Note is not entitled to the benefit of any sinking fund. This Subordinated Note is not convertible into or exchangeable for any of the equity securities, other securities or assets of the Company or any subsidiary of the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21. <u>No Recourse Against Others</u>**. No recourse under or upon any obligation, covenant or agreement contained in this Subordinated Note, or for any claim based thereon or otherwise in respect thereof, will be had against any past, present or future shareholder, employee, officer, or director, as such, of the Company or of any predecessor or successor, either directly or through the Company or any predecessor or successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Subordinated Note by the Noteholder and as part of the consideration for the issuance of this Subordinated Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22. <u>Notices</u>**. All notices to the Company under this Subordinated Note shall be in writing and addressed to the Company at Narragansett Financial Corporation, 330 Swansea Mall Drive, Swansea, Massachusetts 02777, Attention: Nicholas M. Christ, President and Chief Executive Officer, or to such other address as the Company may notify to the Noteholder (the "<u>Payment Office</u>"). All notices to the Noteholders shall be in writing and sent by first-class mail to each Noteholder at his or its address as set forth in the Security Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23. <u>Further Issues</u>**. The Company may, without the consent of the Noteholders, create and issue additional notes having the same terms and conditions of the Subordinated Notes (except for the Issue Date and issue price) so that such further notes shall be consolidated and form a single series with the Subordinated Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24. <u>Governing Law; Interpretation</u>**. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF. THIS SUBORDINATED NOTE IS INTENDED TO MEET THE CRITERIA FOR QUALIFICATION OF THE OUTSTANDING PRINCIPAL AS TIER 2 CAPITAL UNDER THE REGULATORY GUIDELINES OF THE FEDERAL RESERVE, AND THE TERMS HEREOF SHALL BE INTERPRETED IN A MANNER TO SATISFY SUCH INTENT.

*[Signature Page Follows]*

## Ex-4

**Exhibit 4** 

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| | | |
|:---|:---|:---|
| ![LOGO](g122170g44d86.jpg)  | <br> **NARRAGANSETT BANCORP, INC.**<br>**INCORPORATED UNDER THE LAWS OF THE STATE OF MARYLAND** | ![LOGO](g122170g14r28.jpg) |

---

**CUSIP:** 

THE SHARES REPRESENTED BY THIS

CERTIFICATE ARE SUBJECT TO

RESTRICTIONS, SEE REVERSE SIDE

THIS CERTIFIES that is the owner of

**FULLY-PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK, PAR VALUE $0.01 PER SHARE** 

The shares evidenced by this certificate are transferable only on the books of Narragansett Bancorp, Inc. by the holder hereof, in person or by attorney, upon surrender of this certificate properly endorsed. **THE CAPITAL STOCK EVIDENCED HEREBY IS NOT AN ACCOUNT OF AN INSURABLE TYPE AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER FEDERAL OR STATE GOVERNMENTAL AGENCY.**

IN WITNESS WHEREOF, Narragansett Bancorp, Inc. has caused this certificate to be executed by the facsimile signatures of its duly authorized officers and has caused a facsimile of its seal to be hereunto affixed.

Dated: ________________, 2026

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| | | | |
|:---|:---|:---|:---|
| By: |  | [SEAL] |  |
|  | Steven W. Kenyon |  | Nicholas M. Christ |
|  | Corporate Secretary |  | Chair of the Board and Chief Executive Officer |

---

------

The Board of Directors of Narragansett Bancorp, Inc. (the "Company") is authorized by resolution or resolutions, from time to time adopted, to provide for the issuance of more than one class of stock, including preferred stock in series, and to fix and state the voting powers, designations, preferences, limitations and restrictions thereof. The Company will furnish to any stockholder upon request and without charge a full description of each class of stock and any series thereof.

The shares evidenced by this certificate are subject to a limitation contained in the Articles of Incorporation to the effect that in no event shall any record owner of any outstanding common stock which is beneficially owned, directly or indirectly, by a person who beneficially owns in excess of 10% of the outstanding shares of common stock (the "Limit") be entitled or permitted to any vote in respect of shares held in excess of the Limit.

The shares represented by this certificate may not be cumulatively voted on any matter. The Articles of Incorporation requires that, with limited exceptions, no amendment, addition, alteration, change or repeal of the Articles of Incorporation shall be made, unless such is first approved by the Board of Directors of the Company and approved by the stockholders by a majority of the total shares entitled to vote, or in certain circumstances approved by the affirmative vote of up to 80% of the shares entitled to vote.

The following abbreviations when used in the inscription on the face of this certificate shall be construed as though they were written out in full according to applicable laws or regulations.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TEN COM | - as tenants in common | UNIF GIFT MIN ACT | - _________ | Custodian | __________ |
|  |  |  | *(Cust)* |  | *(Minor)* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TEN ENT | - as tenants by the entireties |  | | | |
|  |  |  | Under Uniform Gifts to Minors Act | Under Uniform Gifts to Minors Act | Under Uniform Gifts to Minors Act |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JT TEN | - as joint tenants with right<br> &nbsp;&nbsp;&nbsp;&nbsp;of survivorship and not as tenants in common |  |  |  |  |
|  | - as joint tenants with right<br> &nbsp;&nbsp;&nbsp;&nbsp;of survivorship and not as tenants in common |  |  | *(State)* |  |

---

Additional abbreviations may also be used though not in the above list

For value received,<u> </u><u> </u>hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER IDENTIFYING NUMBER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

*(please print or typewrite name and address including postal zip code of assignee)*![LOGO](g122170g0609082005378.jpg) Shares of the Common Stock represented by the within Certificate, and do hereby irrevocably constitute and appoint ________________________________________________________________________ Attorney to transfer the said shares on the books of the within named corporation with full power of substitution in the premises.

Dated,<u> </u>

In the presence of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Signature: <br>

NOTE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME OF THE STOCKHOLDER(S) AS WRITTEN UPON THE FACE OF THE CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE WHATSOEVER.

## Ex-5

**Exhibit 5** 

**LUSE GORMAN, PC** 

**5335 WISCONSIN AVENUE, N.W., SUITE 780** 

**WASHINGTON, D.C. 20015** 

**TELEPHONE (202) 274-2000** 

**www.luselaw.com** 

June 12, 2026

The Board of Directors

Narragansett Bancorp, Inc.

330 Swansea Mall Drive

Swansea, Massachusetts 02777

---

| | |
|:---|:---|
| **Re:** | **Narragansett Bancorp, Inc.**  |

---

**Common Stock, Par Value $0.01 Per Share** 

To the Board of Directors:

You have requested the opinion of this firm as to certain matters in connection with the registration of the shares of common stock, par value $0.01 per share (the "Common Stock"), of Narragansett Bancorp, Inc. (the "Company") , as well as the registration of participation interests in the Common Stock (the "Participation Interests") to be purchased by the BayCoast Bank 401(k) Plan. We have reviewed the Company's Articles of Incorporation, the Company's Registration Statement on Form S-1 (the "Form S-1"), the BayCoast Bank and Narragansett Financial Corporation Plan of Holding Company Reorganization and Plan of Stock Issuance (the "Plan"), as well as applicable statutes and regulations governing the Company, the offer and sale of the shares of Common Stock, the contribution of the shares of Common Stock to BayCoast Charitable Foundation, Inc. (the "Foundation"), and the registration of the Participation Interests. The opinions expressed below are limited to the laws of the State of Maryland (which includes applicable provisions of the Maryland General Corporation Law, the Maryland Constitution, and reported judicial decisions interpreting the Maryland General Corporation Law and the Maryland Constitution).

We are of the opinion that, upon the declaration of effectiveness of the Form S-1: (i) the shares of Common Stock, when issued and sold according to the Plan, will be legally issued, fully paid and non-assessable, (ii) the shares of Common Stock, when contributed to the Foundation according to the Plan, will be legally issued, fully paid and non-assessable, and (iii) the Participation Interests, when validly offered in the manner described in the Form S-1, will be binding obligations of the Company.

We hereby consent to our firm being referenced under the caption "Legal Matters" in the Prospectus contained in the Form S-1 and to the filing of this opinion as an exhibit to the Form S-1. By giving such consent, we do not hereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended.

Sincerely,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Luse Gorman, PC

## Exhibit 8.1

**Exhibit 8.1** 

**LUSE GORMAN, PC** 

**5335 WISCONSIN AVENUE, N.W., SUITE 780** 

**WASHINGTON, D.C. 20015** 

**TELEPHONE (202) 274-2000** 

**<u>www.luselaw.com</u>**

June 12, 2026

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

330 Swansea Mall Drive

Swansea, Massachusetts 02777

Boards of Directors/Trustees:

As counsel to BayCoast Bank, a Massachusetts-chartered stock savings bank, (the "Bank"), Narragansett Financial Corporation, a Massachusetts-chartered mutual holding company (the "Mutual Holding Company"), and Narragansett Bancorp, Inc., a Maryland corporation (the "Mid-Tier Holding Company"), you have requested this firm's opinion regarding the material federal income tax consequences that will result from the reorganization of the Bank from the single-tier mutual holding company form of organization, with no stockholders, into the "two-tier" mutual holding company form of organization with public stockholders (the "Reorganization"), pursuant to the BayCoast Bank and Narragansett Financial Corporation Plan of Holding Company Reorganization and Plan of Stock Issuance, dated June 8, 2026 (the "Plan"), and the integrated transactions described below.

In connection with our opinion, we have made certain investigations we have deemed relevant. In our investigations, we have assumed the authenticity of original documents, the accuracy of copies and the genuineness of signatures. We have further assumed the absence of adverse facts not apparent from the face of the instruments and documents we examined and we have relied upon the accuracy of the factual matters set forth in: (1) the Plan; (2) the Registration Statement filed by the Mid-Tier Holding Company, with the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended; (3) the letter application filed by the Bank and Mutual Holding Company with the Massachusetts Commissioner of Banks; and (4) the Application on Form FRY-3, as filed with the Board of Governors of the Federal Reserve System. In addition, we are relying on letters from RP Financial, LC., addressed to you and dated June 12, 2026, stating its belief as to certain valuation matters described below. Capitalized terms used but not defined herein shall have the same meaning as set forth in the Plan. Furthermore, we assume that each of the parties to the Reorganization will comply with all reporting obligations with respect to the Reorganization required under the Internal Revenue Code of 1986, as amended (the "Code"), and the regulations thereunder (the "Treasury Regulations").

Our opinion is based upon the existing provisions of the Code, the Treasury Regulations, and upon current Internal Revenue Service (the "IRS") published rulings and existing court decisions, any of which could change at any time. Any such change may be retroactive and could significantly modify the statements and opinions expressed herein. Similarly, any changes in the facts and assumptions stated herein, upon which this opinion is based, could modify the conclusions herein. This opinion is as of the date hereof, and we disclaim any obligation to advise you of any change in any matter considered herein after the date hereof.

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

We opine only as to the matters we expressly set forth herein, and no opinion should be inferred as to any other matters or as to the tax treatment of the Reorganization and the integrated transactions described below that we do not specifically address. We express no opinion as to other federal laws and regulations, or as to laws and regulations of other jurisdictions, or as to factual or legal matters other than as set forth herein.

For purposes of this opinion, we are relying on the representations as to factual matters provided to us by the Mutual Holding Company and the Bank, as set forth in the certificates for the aforementioned entities, which are signed by an authorized officer of each of the aforementioned entities and are incorporated herein by reference.

**<u>Description of Proposed Transactions</u>**

The Bank and the Mutual Holding Company are currently in the mutual holding company form of ownership, without public stockholders. The Mid-Tier Holding Company will be established as part of the two-tier mutual holding company formation in the Reorganization. The Reorganization will be conducted pursuant to the Plan. Following the Reorganization, the Bank will become a wholly-owned subsidiary of the Mid-Tier Holding Company, and the Mid-Tier Holding Company will be a majority-owned subsidiary of the Mutual Holding Company. The corporators' voting rights in the Mutual Holding Company will remain the same after the Reorganization.

In connection with the Reorganization, the Mid-Tier Holding Company will offer for sale shares of Common Stock of the Mid-Tier Holding Company. All investors will pay the same price per share in the Offering. Only a minority interest in the Common Stock of the Mid-Tier Holding Company will be sold to the public. Federal and Massachusetts laws and regulations require that the Mutual Holding Company own a majority of the outstanding common stock of the Mid-Tier Holding Company for so long as the Mutual Holding Company is in existence. The Mid-Tier Holding Company will offer for sale 43% of the outstanding shares of Common Stock of the Mid-Tier Holding Company in the offering, 2% of the outstanding shares of Common Stock of the Mid-Tier Holding Company will be contributed to a charitable foundation to be formed in connection with the Reorganization and offering, and 55% of the shares of Common Stock of the Mid-Tier Holding Company will be retained by the Mutual Holding Company.

Pursuant to the Plan, the Reorganization will be effected as follows and in such order as is necessary to consummate the Reorganization:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Mutual Holding Company will organize the Mid-Tier Holding Company
as a separate wholly-owned subsidiary of the Mutual Holding Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Mutual Holding Company will contribute all of the shares of common stock of the Bank to the Mid-Tier Holding Company, which will result in the Mid-Tier Holding Company owning 100% of the common stock of the Bank (the "351 Transaction"). On the Effective
Date, the Bank will be the wholly-owned subsidiary of the Mid-Tier Holding Company and the Mid-Tier Holding Company will be a majority owned subsidiary of the Mutual
Holding Company; and

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Mid-Tier Holding Company will offer to sell up to 49% of its Common
Stock in the Offering and issue additional shares of Common Stock to the Mutual Holding Company such that the Mutual Holding Company will own at least 51% of the Mid-Tier Holding Company's outstanding
Common Stock at the completion of the Reorganization and Offering.

At the time of the Reorganization, the Mid-Tier Holding Company will establish a Liquidation Account in an amount equal to the product of (i) the percentage of the Common Stock issued in the Stock Issuance to Persons other than the Mutual Holding Company, and (ii) the net worth of the Bank as of the date of the latest consolidated statement of financial condition contained in the final Prospectus distributed in connection with the Offering. The Liquidation Account will be maintained for the benefit of Eligible Account Holders who continue to maintain their Deposit Accounts at the Bank following the Reorganization. Each Eligible Account Holder shall, with respect to his or her Deposit Account, hold a related inchoate interest in a portion of the Liquidation Account balance in relation to his or her Deposit Account balance at the Eligibility Record Date, or to such balance as it may subsequently be reduced, as provided in the Plan.

**<u>Opinions</u>**

Based on the facts, representations and assumptions set forth herein, we are of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Mutual Holding Company and the persons who purchase Common Stock of the Mid-Tier Holding Company in the Offering will recognize no gain or loss upon the transfer of Bank common stock to the Mid-Tier Holding Company in exchange for Common Stock of the Mid-Tier Holding Company (Code Section 351(a) and Rev. Rul. 2003-48; 2003-19 I.R.B 863).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Mid-Tier Holding Company will recognize no gain or loss on its receipt of Bank common stock in exchange for Mid-Tier Holding Company Common Stock (Code Section 1032(a)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Mutual Holding Company's basis in the Mid-Tier Holding Company Common Stock received in the 351 Transaction will be the same as its basis in the Bank common stock transferred (Code Section 358(a)(1)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Mutual Holding Company's holding period in the Mid-Tier Holding Company Common Stock received will include the period during which it held the Bank common stock, provided that the property was a capital asset on the date of the exchange (Code Section 1223(1)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Mid-Tier Holding Company's basis in the Bank common stock received from the Mutual Holding Company will be the same as the basis of such property in the hands of the Mutual Holding Company (Code Section 362(a)).

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Mid-Tier Holding Company's holding period for the Bank common stock received from the Mutual Holding Company will include the period during which the property was held by the Mutual Holding Company (Code Section 1223(2)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. It is more likely than not that the basis of the Mid-Tier Holding Company Common Stock purchased by stockholders in the Offering will be the purchase price thereof (Code Section 1012). The holding period of the Common Stock purchased pursuant to the exercise of subscription rights will commence on the date on which the right to acquire the stock was exercised (Code Section 1223(5)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. It is more likely than not that the fair market value of the subscription rights to purchase Common Stock is zero. Accordingly, no gain or loss will be recognized by Eligible Account Holders upon the distribution to them of the nontransferable subscription rights to purchase shares of Common Stock of the Mid-Tier Holding Company. Gain realized, if any, by Eligible Account Holders on the distribution to them of nontransferable subscription rights to purchase shares of Common Stock will be recognized but only to the extent of the fair market value of such subscription rights. (Code Section 356(a)). Eligible Account Holders will not realize any taxable income as a result of their exercise of the nontransferable subscription rights (Rev. Rul. 56-572, 1956-2 C.B. 182).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. No gain or loss will be recognized by the Mid-Tier Holding Company on the receipt of money in exchange for shares of Common Stock sold in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. It is more likely than not that the fair market value of the interest in the Liquidation Account will be zero. Accordingly, it is more likely than not that Eligible Account Holders will not recognize taxable income in connection with the receipt of an inchoate interest in the Liquidation Account. Cf. *Paulsen v. Commissioner*, 469 U.S. 131 (1985); *Society for Savings v. Bowers*, 349 U.S. 143 (1955).

The opinions set forth above represent our conclusions as to the application of existing federal income tax law to the facts of the Reorganization and Offering as described above, and we can give no assurance that changes in such law, or in the interpretation thereof, will not affect the opinions expressed by us. Moreover, no assurance can be given that the IRS will not take contrary positions, or that a court considering the issues would not hold contrary to such opinions.

Opinion 8 above is predicated on the representation that no person will receive any payment, whether in money or property, in lieu of the issuance of nontransferable subscription rights. Opinions 7 and 8 above are based on the position that the subscription rights to purchase shares of Holding Company Common Stock received by Eligible Account Holders have a fair market value of zero. We understand that the subscription rights will be granted at no cost to the recipients, will be legally nontransferable and of short duration, and will provide the recipient with the right only to purchase shares of the Mid-Tier Holding Company Common Stock at the same price to be paid by members of the general public in any Community Offering or Syndicated Community Offering. We also note that the IRS has not in the past concluded that subscription rights have value. In addition, we are relying on a letter from RP Financial, LC. to you stating its belief that subscription rights do not have any economic value at the time of distribution or at the time the rights are exercised in the Offering. Based on the foregoing, we believe it is more likely than not that the nontransferable subscription rights to purchase Mid-Tier Holding Company Common Stock have no value.

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

If the subscription rights are subsequently found to have economic value, income may be recognized by various recipients of the subscription rights (in certain cases, whether or not the rights are exercised) and the Mid-Tier Holding Company and/or the Bank may be subject to tax on the distribution of the subscription rights.

Opinion 10 above is based on the premise that the benefit provided by the Liquidation Account in the Mutual Holding Company has a fair market value of zero at the time of the Reorganization. The Liquidation Account payment obligation arises only in a liquidation of the Bank, including if the Bank enters into a transaction to transfer its assets and liabilities to a credit union. We understand that: (i) no holder of an interest in a liquidation account has ever received payment of an interest in a liquidation account attributable to the liquidation of a solvent bank (other than as set forth below); (ii) the interests in the Liquidation Account are not transferable by an Eligible Account Holder; (iii) the amounts due under the Liquidation Account with respect to each Eligible Account Holder will be reduced as their deposits in the Bank are reduced, as described in the Plan; and (iv) holders of an interest in a liquidation account have received payments of their interest in only a limited number of instances (out of hundreds of transactions involving mergers, acquisitions and the purchase of assets and assumptions of liabilities of holding companies and subsidiary banks). These instances involved the purchase of a bank's assets and the assumption of its liabilities by a credit union. However, not all states permit the sale of a bank's assets to a credit union, further limiting the opportunity for this type of transaction. We also note that the U.S. Supreme Court in *Paulsen v. Commissioner*, 469 U.S. 131 (1985), stated the following:

The right to participate in the net proceeds of a solvent liquidation is also not a significant part of the value of the shares. Referring to the possibility of a solvent liquidation of a mutual savings association, this Court observed: "It stretches the imagination very far to attribute any real value to such a remote contingency, and when coupled with the fact that it represents nothing which the depositor can readily transfer, any theoretical value reduces almost to the vanishing point." *Society for Savings v. Bowers*, 349 U.S. 143, 150 (1955).

In the present case, we believe that the same analysis as was applied in *Paulsen* and *Society for Savings* can be applied to the extremely remote contingency that a depositor will, at some undetermined time in the future, realize value from the sale of a bank's assets to a credit union. First, some states prohibit a credit union from acquiring a bank's assets through a purchase and assumption transaction. Second, although others do, as noted above, there have been only a limited number of instances where a credit union has acquired the assets of a bank where an amount representing the then-value of a liquidation account has been (or will be) paid to the bank's eligible depositors. These instances all involved former mutual banks that were required to establish liquidation accounts in a conversion to a stock bank and that later engaged in a purchase and assumption transaction with a credit union. We are

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

aware of less than ten instances out of hundreds of converted former mutual banks since 1816 (the date the first mutual bank was chartered, in Massachusetts) that have engaged in purchase and assumption transactions with credit unions and have been required to distribute to their depositors the remains of any liquidation accounts. Under these circumstances, we agree with the statement by the Supreme Court in Society for Savings that "any theoretical value reduces almost to the vanishing point."

In addition, we note that RP Financial, LC. has issued a letter, dated June 12, 2026, to you stating its belief that the benefit provided by the Liquidation Account does not have any economic value at the time of the Reorganization. Based on the foregoing, we believe it is more likely than not that liquidation rights in the Liquidation Account have no value.

If the Internal Revenue Service were to subsequently find that the Liquidation Account had economic value as of the time of the Reorganization, each Eligible Account Holder may need to recognize income in the amount of the fair market value of their interest in the Liquidation Account as of the effective date of the Reorganization. However, we are not aware of any situation where rights in a bank liquidation account have been found to have an economic value at the time of a mutual-to-stock conversion or a second-step conversion of a mutual holding company.

We do not express any opinion as to the availability of any equitable or specific remedy upon any breach of any of the covenants, warranties or other provisions contained in any agreement. We have not examined, and we express no opinion with respect to the applicability of, or liability under, any federal, state or local law, ordinance, or regulation other than as expressed above.

It is expressly understood that the opinions set forth above represent our conclusions based upon the documents reviewed by us and the facts presented to us. Any material amendments to such documents or changes in any significant fact would affect the opinions expressed herein.

We have not been asked to, and we do not, render any opinion with respect to any matters other than those expressly set forth above.

[Signature Page Follows]

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Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

**<u>CONSENT</u>**

We hereby consent to the filing of this opinion as an exhibit to the Mutual Holding Company's and the Bank's letter application as filed with the Massachusetts Commissioner of Banks and as an exhibit to the Mid-Tier Holding Company's Registration Statement on Form S-1 as filed with the SEC. We also consent to the references to our firm in the Prospectus contained in such filings under the captions "The Reorganization and Offering—Material Income Tax Consequences" and "Legal Matters," and to the summary of our opinion in such Prospectus.

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| |
|:---|
| Very truly yours, |
| ![LOGO](g122170dsp107.jpg) |
| Luse Gorman, PC |

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## Exhibit 8.2

**Exhibit 8.2**![LOGO](g122170dsp108.jpg)

June 12, 2026

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

330 Swansea Mall Drive

Swansea, Massachusetts 02777

Boards of Directors/Trustees:

You have requested this firm's opinion regarding the material Massachusetts income tax consequences relating to the reorganization of the BayCoast Bank, a Massachusetts-chartered stock savings bank, (the "**Bank**"), Narragansett Financial Corporation, a Massachusetts-chartered mutual holding company (the "**Mutual Holding Company**"), and Narragansett Bancorp, Inc., a Maryland corporation (the "**Mid-Tier Holding Company**") from the single-tier mutual holding company form of organization, with no stockholders, into the "two-tier" mutual holding company form of organization with public stockholders (the "**Reorganization**"), pursuant to the BayCoast Bank and Narragansett Financial Corporation Plan of Holding Company Reorganization and Plan of Stock Issuance, dated June 8, 2026 (the "**Plan**"), and the integrated transactions described below.

In connection with the Reorganization, the Mid-Tier Holding Company will offer for sale shares of Common Stock of the Mid-Tier Holding Company. All investors will pay the same price per share in the Offering. Only a minority interest in the Common Stock of the Mid-Tier Holding Company will be sold to the public. The Mid-Tier Holding Company will offer for sale 43% of the outstanding shares of Common Stock of the Mid-Tier Holding Company in the offering, 2% of the outstanding shares of Common Stock of the Mid-Tier Holding Company will be contributed to a charitable foundation to be formed in connection with the Reorganization and offering, and 55% of the shares of Common Stock of the Mid-Tier Holding Company will be retained by the Mutual Holding Company. Unless otherwise defined, all terms used herein have the meanings given to those terms in the Plan.

In connection with our opinion, we have relied upon the accuracy of the factual matters set forth in the Plan.

In rendering the opinion set forth below, we have relied on the opinion of Luse Gorman, PC related to the Federal tax consequences of the proposed Reorganization (the "Federal Tax Opinion"), without undertaking to verify the same by independent investigation.

We are also relying on certain representations as to factual matters provided to Luse Gorman, PC by the parties, as set forth in the certificate signed by an authorized officer of the Bank. We have made such investigations as we have deemed relevant or necessary for the purpose of this opinion. In connection therewith, we have examined the Plan and certain other documents of or relating to the Reorganization, some of which are described or referred to in the Plan and which we deemed necessary to examine in order to issue the opinions set forth below.

![LOGO](g122170dsp108a.jpg)

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

In issuing our opinions, we have assumed that the Plan has been duly and validly authorized and has been approved and adopted by the Boards of Directors/Trustees of the parties at a meeting duly called and held; that the parties will comply with the terms and conditions of the Plan; and that the various representations and warranties that are provided to us are accurate, complete, true and correct. Accordingly, we express no opinion concerning the effect, if any, of variations from the foregoing. We specifically express no opinion concerning tax matters relating to the Plan except on the basis of the documents and assumptions described above.

In rendering our opinions, we have assumed that the persons and entities identified in the Plan will at all times comply with the requirements of Code Sections 368(a)(1)(A) and 368(a)(1)(F), the other applicable state and Federal laws and the representations of the Bank. In addition, we have assumed that the activities of the persons and entities identified in the Plan will be conducted strictly in accordance with the Plan. Any variations may affect the opinions we are rendering.

We emphasize that the outcome of litigation cannot be predicted with certainty and, although we have attempted in good faith to opine as to the probable outcome of the merits of each tax issue with respect to which an opinion was requested, there can be no assurance that our conclusions are correct or that they would be adopted by the Massachusetts Department of Revenue or a court.

Our opinion is based upon the existing provisions of the Massachusetts General Laws, the Code of Massachusetts Regulations and upon current Massachusetts Department of Revenue published rulings and existing court decisions, any of which could be changed at any time. Any such changes may be retroactive and could significantly modify the statements and opinions expressed herein. Similarly, any change in the facts and assumptions stated herein, upon which this opinion is based, could modify the conclusions stated herein. This opinion is as of the date hereof, and we disclaim any obligation to advise you of any change in any matter considered herein after the date hereof.

We opine only as to the matters we expressly set forth herein, and no opinions should be inferred as to any other matters or as to the tax treatment of the transactions that we do not specifically address. We express no opinion as to other federal laws and regulations, or as to laws and regulations of other jurisdictions, or as to factual or legal matters other than as set forth herein.

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

**<u>Description of Proposed Transactions</u>**

The Bank and the Mutual Holding Company are currently in the mutual holding company form of ownership, without public stockholders. The Mid-Tier Holding Company will be established as part of the two-tier mutual holding company formation in the Reorganization. The Reorganization will be conducted pursuant to the Plan. Following the Reorganization, the Bank will become a wholly-owned subsidiary of the Mid-Tier Holding Company, and the Mid-Tier Holding Company will be a majority-owned subsidiary of the Mutual Holding Company. The corporators' voting rights in the Mutual Holding Company will remain the same after the Reorganization.

In connection with the Reorganization, the Mid-Tier Holding Company will offer for sale shares of Common Stock of the Mid-Tier Holding Company. All investors will pay the same price per share in the Offering. Only a minority interest in the Common Stock of the Mid-Tier Holding Company will be sold to the public. Federal and Massachusetts laws and regulations require that the Mutual Holding Company own a majority of the outstanding common stock of the Mid-Tier Holding Company for so long as the Mutual Holding Company is in existence. The Mid-Tier Holding Company will offer for sale 43% of the outstanding shares of Common Stock of the Mid-Tier Holding Company in the offering, 2% of the outstanding shares of Common Stock of the Mid-Tier Holding Company will be contributed to a charitable foundation to be formed in connection with the Reorganization and offering, and 55% of the shares of Common Stock of the Mid-Tier Holding Company will be retained by the Mutual Holding Company.

Pursuant to the Plan, the Reorganization will be effected as follows and in such order as is necessary to consummate the Reorganization:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Mutual Holding Company will organize the Mid-Tier Holding Company
as a separate wholly-owned subsidiary of the Mutual Holding Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Mutual Holding Company will contribute all of the shares of common stock of the Bank to the Mid-Tier Holding Company, which will result in the Mid-Tier Holding Company owning 100% of the common stock of the Bank (the "351 Transaction"). On the Effective
Date, the Bank will be the wholly-owned subsidiary of the Mid-Tier Holding Company and the Mid-Tier Holding Company will be a majority owned subsidiary of the Mutual
Holding Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Mid-Tier Holding Company will offer to sell up to 49% of its Common
Stock in the Offering and issue additional shares of Common Stock to the Mutual Holding Company such that the Mutual Holding Company will own at least 51% of the Mid-Tier Holding Company's outstanding
Common Stock at the completion of the Reorganization and Offering.

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

At the time of the Reorganization, the Mid-Tier Holding Company will establish a Liquidation Account in an amount equal to the product of (i) the percentage of the Common Stock issued in the Stock Issuance to Persons other than the Mutual Holding Company, and (ii) the net worth of the Bank as of the date of the latest consolidated statement of financial condition contained in the final Prospectus distributed in connection with the Offering. The Liquidation Account will be maintained for the benefit of Eligible Account Holders who continue to maintain their Deposit Accounts at the Bank following the Reorganization. Each Eligible Account Holder shall, with respect to his or her Deposit Account, hold a related inchoate interest in a portion of the Liquidation Account balance in relation to his or her Deposit Account balance at the Eligibility Record Date, or to such balance as it may subsequently be reduced, as provided in the Plan.

**<u>Luse Gorman, P.C. Federal Tax Opinion</u>**

Luse Gorman, PC ("Counsel") has provided an opinion that addresses the material federal income tax consequences of the Reorganization. The opinion concluded, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Mutual Holding Company and the persons who purchase Common Stock of the Mid-Tier Holding Company in the Offering will recognize no gain or loss upon the transfer of Bank common stock to the Mid-Tier Holding Company in exchange for Common Stock of the Mid-Tier Holding Company (Code Section 351(a) and Rev. Rul. 2003-48; 2003-19 I.R.B 863).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Mid-Tier Holding Company will recognize no gain or loss on its receipt of Bank common stock in exchange for Mid-Tier Holding Company Common Stock (Code Section 1032(a)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Mutual Holding Company's basis in the Mid-Tier Holding Company Common Stock received in the 351 Transaction will be the same as its basis in the Bank common stock transferred (Code Section 358(a)(1)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Mutual Holding Company's holding period in the Mid-Tier Holding Company Common Stock received will include the period during which it held the Bank common stock, provided that the property was a capital asset on the date of the exchange (Code Section 1223(1)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Mid-Tier Holding Company's basis in the Bank common stock received from the Mutual Holding Company will be the same as the basis of such property in the hands of the Mutual Holding Company (Code Section 362(a)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Mid-Tier Holding Company's holding period for the Bank common stock received from the Mutual Holding Company will include the period during which the property was held by the Mutual Holding Company (Code Section 1223(2)).

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. It is more likely than not that the basis of the Mid-Tier Holding Company Common Stock purchased by stockholders in the Offering will be the purchase price thereof (Code Section 1012). The holding period of the Common Stock purchased pursuant to the exercise of subscription rights will commence on the date on which the right to acquire the stock was exercised (Code Section 1223(6)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. It is more likely than not that the fair market value of the subscription rights to purchase Common Stock is zero. Accordingly, no gain or loss will be recognized by Eligible Account Holders upon the distribution to them of the nontransferable subscription rights to purchase shares of Common Stock of the Mid-Tier Holding Company. Gain realized, if any, by Eligible Account Holders on the distribution to them of nontransferable subscription rights to purchase shares of Common Stock will be recognized but only to the extent of the fair market value of such subscription rights. (Code Section 356(a)). Eligible Account Holders will not realize any taxable income as a result of their exercise of the nontransferable subscription rights (Rev. Rul. 56-572, 1956-2 C.B. 182).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. No gain or loss will be recognized by the Mid-Tier Holding Company on the receipt of money in exchange for shares of Common Stock sold in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. It is more likely than not that the fair market value of the interest in the Liquidation Account will be zero. Accordingly, it is more likely than not that Eligible Account Holders will not recognize taxable income in connection with the receipt of an inchoate interest in the Liquidation Account. Cf. *Paulsen v. Commissioner*, 469 U.S. 131 (1985); *Society for Savings v. Bowers*, 349 U.S. 143 (1955).

The opinions set forth above represent our conclusions as to the application of existing federal income tax law to the facts of the Reorganization and Offering as described above, and we can give no assurance that changes in such law, or in the interpretation thereof, will not affect the opinions expressed by us. Moreover, no assurance can be given that the IRS will not take contrary positions, or that a court considering the issues would not hold contrary to such opinions.

Opinion 8 above is predicated on the representation that no person will receive any payment, whether in money or property, in lieu of the issuance of nontransferable subscription rights. Opinions 7 and 8 above are based on the position that the subscription rights to purchase shares of Holding Company Common Stock received by Eligible Account Holders have a fair market value of zero. We understand that the subscription rights will be granted at no cost to the recipients, will be legally nontransferable and of short duration, and will provide the recipient with the right only to purchase shares of the Mid-Tier Holding Company Common Stock at the same price to be paid by members of the general public in any Community Offering or Syndicated

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

Community Offering. We also note that the IRS has not in the past concluded that subscription rights have value. In addition, we are relying on a letter from RP Financial, LC. to you stating its belief that subscription rights do not have any economic value at the time of distribution or at the time the rights are exercised in the Offering. Based on the foregoing, we believe it is more likely than not that the nontransferable subscription rights to purchase Mid-Tier Holding Company Common Stock have no value.

If the subscription rights are subsequently found to have economic value, income may be recognized by various recipients of the subscription rights (in certain cases, whether or not the rights are exercised) and the Mid-Tier Holding Company and/or the Bank may be subject to tax on the distribution of the subscription rights.

Opinion 10 above is based on the premise that the benefit provided by the Liquidation Account in the Mutual Holding Company has a fair market value of zero at the time of the Reorganization. The Liquidation Account payment obligation arises only in a liquidation of the Bank, including if the Bank enters into a transaction to transfer its assets and liabilities to a credit union. We understand that: (i) no holder of an interest in a liquidation account has ever received payment of an interest in a liquidation account attributable to the liquidation of a solvent bank (other than as set forth below); (ii) the interests in the Liquidation Account are not transferable by an Eligible Account Holder; (iii) the amounts due under the Liquidation Account with respect to each Eligible Account Holder will be reduced as their deposits in the Bank are reduced, as described in the Plan; and (iv) holders of an interest in a liquidation account have received payments of their interest in only a limited number of instances (out of hundreds of transactions involving mergers, acquisitions and the purchase of assets and assumptions of liabilities of holding companies and subsidiary banks). These instances involved the purchase of a bank's assets and the assumption of its liabilities by a credit union. However, not all states permit the sale of a bank's assets to a credit union, further limiting the opportunity for this type of transaction. We also note that the U.S. Supreme Court in *Paulsen v. Commissioner*, 469 U.S. 131 (1985), stated the following:

The right to participate in the net proceeds of a solvent liquidation is also not a significant part of the value of the shares. Referring to the possibility of a solvent liquidation of a mutual savings association, this Court observed: "It stretches the imagination very far to attribute any real value to such a remote contingency, and when coupled with the fact that it represents nothing which the depositor can readily transfer, any theoretical value reduces almost to the vanishing point." *Society for Savings v. Bowers*, 349 U.S. 143, 150 (1955).

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

In the present case, we believe that the same analysis as was applied in *Paulsen* and *Society for Savings* can be applied to the extremely remote contingency that a depositor will, at some undetermined time in the future, realize value from the sale of a bank's assets to a credit union. First, some states prohibit a credit union from acquiring a bank's assets through a purchase and assumption transaction. Second, although others do, as noted above, there have been only a limited number of instances where a credit union has acquired the assets of a bank where an amount representing the then-value of a liquidation account has been (or will be) paid to the bank's eligible depositors. These instances all involved former mutual banks that were required to establish liquidation accounts in a conversion to a stock bank and that later engaged in a purchase and assumption transaction with a credit union. We are aware of less than ten instances out of hundreds of converted former mutual banks since 1816 (the date the first mutual bank was chartered, in Massachusetts) that have engaged in purchase and assumption transactions with credit unions and have been required to distribute to their depositors the remains of any liquidation accounts. Under these circumstances, we agree with the statement by the Supreme Court in Society for Savings that "any theoretical value reduces almost to the vanishing point."

In addition, we note that RP Financial, LC. has issued a letter, dated June 12, 2026, to you stating its belief that the benefit provided by the Liquidation Account does not have any economic value at the time of the Reorganization. Based on the foregoing, we believe it is more likely than not that liquidation rights in the Liquidation Account have no value.

If the Internal Revenue Service were to subsequently find that the Liquidation Account had economic value as of the time of the Reorganization, each Eligible Account Holder may need to recognize income in the amount of the fair market value of their interest in the Liquidation Account as of the effective date of the Reorganization. However, we are not aware of any situation where rights in a bank liquidation account have been found to have an economic value at the time of a mutual-to-stock conversion or a second-step conversion of a mutual holding company.

We do not express any opinion as to the availability of any equitable or specific remedy upon any breach of any of the covenants, warranties or other provisions contained in any agreement. We have not examined, and we express no opinion with respect to the applicability of, or liability under, any federal, state or local law, ordinance, or regulation other than as expressed above.

It is expressly understood that the opinions set forth above represent our conclusions based upon the documents reviewed by us and the facts presented to us. Any material amendments to such documents or changes in any significant fact would affect the opinions expressed herein.

We have not been asked to, and we do not, render any opinion with respect to any matters other than those expressly set forth above

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

**<u>Massachusetts Tax Opinion</u>**

In issuing the opinions set forth below, we have referred solely to existing provisions of the Internal Revenue Code of 1986, as amended (the "Code"), existing and proposed Treasury regulations ("Treasury Regulations") thereunder, and upon current Internal Revenue Service (the "Service") administrative rulings, notices and procedures and court decisions. Such laws, regulations, administrative rulings, notices and procedures and court decisions are subject to change at any time. Any such change could affect the continuing validity of the opinions set forth below. This opinion is as of the date hereof, and we disclaim any obligation to advise you of any change in any matter considered herein after the date hereof.

Our opinions are not binding on the Massachusetts Department of Revenue (the "Department") and the Department may disagree with the opinions contained herein. Although we believe our opinion will be sustained if challenged, there can be no assurances to this effect. Because the opinions expressed herein are based upon current tax law, future changes in Massachusetts tax laws, regulations, rulings or case law may affect the tax consequences relating to the Plan of Reorganization. However, we have no responsibility to update this opinion for events, transactions or circumstances occurring after the date of this letter.

The Bank is subject to the Massachusetts Financial Institution Excise Tax under MGL Chapter 63 Sections 1, 2 and 2A. At the effective time of the Reorganization, the Mutual Holding Company, the Bank, and the Mid-tier Holding Company will be subject to the same. However, the Mid-tier Holding Company may elect to be classified as a security corporation pursuant to MGL Chapter 63, Section 38B(b).

MGL Chapter 63 Section 2(a) provides that every financial institution engaged in business in the commonwealth shall pay an excise measured by its net income. Net income is defined in MGL Chapter 63 Section 1 as gross income less deductions allowed by the Internal Revenue Code, as amended and in effect for the taxable year, with enumerated modifications. Such modifications are not relevant to this Opinion. By adopting the federal Internal Revenue Code, Massachusetts has conformed its treatment of corporate reorganizations to the federal treatment.

Accordingly, based upon the facts and representations stated herein and the existing law, and the assumptions made by Luse Gorman, P.C. in the federal opinion letter, it is the opinion of Wolf & Company, P.C. regarding the Massachusetts Financial Institution Excise and tax effects of the Plan that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Mutual Holding Company and the persons who purchase Common Stock of the Mid-Tier Holding Company in the Offering will recognize no gain or loss upon the transfer of Bank common stock to the Mid-Tier Holding Company in exchange for Common Stock of the Mid-Tier Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Mid-Tier Holding Company will recognize no gain or loss on its receipt of Bank common stock in exchange for Mid-Tier Holding Company Common Stock.

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Mutual Holding Company's basis in the Mid-Tier Holding Company Common Stock received in the Transaction will be the same as its basis in the Bank common stock transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Mutual Holding Company's holding period in the Mid-Tier Holding Company Common Stock received will include the period during which it held the Bank common stock, provided that the property was a capital asset on the date of the exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Mid-Tier Holding Company's basis in the Bank common stock received from the Mutual Holding Company will be the same as the basis of such property in the hands of the Mutual Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Mid-Tier Holding Company's holding period for the Bank common stock received from the Mutual Holding Company will include the period during which the property was held by the Mutual Holding Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. It is more likely than not that the basis of the Mid-Tier Holding Company Common Stock purchased by stockholders in the Offering will be the purchase price thereof. The holding period of the Common Stock purchased pursuant to the exercise of subscription rights will commence on the date on which the right to acquire the stock was exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. It is more likely than not that the fair market value of the subscription rights to purchase Common Stock is zero. Accordingly, no gain or loss will be recognized by Eligible Account Holders upon the distribution to them of the nontransferable subscription rights to purchase shares of Common Stock of the Mid-Tier Holding Company. Gain realized, if any, by Eligible Account Holders on the distribution to them of nontransferable subscription rights to purchase shares of Common Stock will be recognized but only to the extent of the fair market value of such subscription rights. Eligible Account Holders will not realize any taxable income as a result of their exercise of the nontransferable subscription rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. No gain or loss will be recognized by the Mid-Tier Holding Company on the receipt of money in exchange for shares of Common Stock sold in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. It is more likely than not that the fair market value of the interest in the Liquidation Account will be zero. Accordingly, it is more likely than not that Eligible Account Holders will not recognize taxable income in connection with the receipt of an inchoate interest in the Liquidation Account.

Opinion 8 above is predicated on the representation that no person will receive any payment, whether in money or property, in lieu of the issuance of nontransferable subscription rights. Opinions 7 and 8 above are based on the position that the subscription rights to purchase shares of Holding Company Common Stock received by Eligible Account Holders and have a fair market value of zero. We understand that the subscription rights will be granted at no cost to

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

the recipients, will be legally nontransferable and of short duration, and will provide the recipient with the right only to purchase shares of the Mid-Tier Holding Company Common Stock at the same price to be paid by members of the general public in any Community Offering or Syndicated Community Offering. In addition, we are relying on a letter from RP Financial, LC. to you stating its belief that subscription rights do not have any economic value at the time of distribution or at the time the rights are exercised in the Offering. Based on the foregoing, we believe it is more likely than not that the nontransferable subscription rights to purchase Mid-Tier Holding Company Common Stock have no value.

If the subscription rights are subsequently found to have economic value, income may be recognized by various recipients of the subscription rights (in certain cases, whether or not the rights are exercised) and the Mid-Tier Holding Company and/or the Bank may be subject to tax on the distribution of the subscription rights.

Opinion 10 above is based on the premise that the benefit provided by the Liquidation Account in the Mutual Holding Company has a fair market value of zero at the time of the Reorganization. The Liquidation Account payment obligation arises only in a liquidation of the Bank, including if the Bank enters into a transaction to transfer its assets and liabilities to a credit union. We understand that: (i) no holder of an interest in a liquidation account has ever received payment of an interest in a liquidation account attributable to the liquidation of a solvent bank (other than as set forth below); (ii) the interests in the Liquidation Account are not transferable by an Eligible Account Holder; (iii) the amounts due under the Liquidation Account with respect to each Eligible Account Holder will be reduced as their deposits in the Bank are reduced, as described in the Plan; and (iv) holders of an interest in a liquidation account have received payments of their interest in only a limited number of instances (out of hundreds of transactions involving mergers, acquisitions and the purchase of assets and assumptions of liabilities of holding companies and subsidiary banks). These instances involved the purchase of a bank's assets and the assumption of its liabilities by a credit union. However, not all states permit the sale of a bank's assets to a credit union, further limiting the opportunity for this type of transaction.

In addition, we note that RP Financial, LC. has issued a letter, dated June 12, 2026, to you stating its belief that the benefit provided by the Liquidation Account does not have any economic value at the time of the Reorganization. Based on the foregoing, we believe it is more likely than not that liquidation rights in the Liquidation Account have no value.

**<u>Conclusion</u>**

The opinions contained herein are rendered only with respect to the specific matters discussed herein and we express *no opinion* with respect to any other legal, Federal, state, or local tax aspect of these transactions. This opinion is not binding upon any tax authority including the Massachusetts Department of Revenue or any court and no assurance can be given that a position contrary to that expressed herein will not be asserted by a tax authority.

------

Boards of Directors/Trustees

BayCoast Bank

Narragansett Bancorp, Inc.

Narragansett Financial Corporation

June 12, 2026

The opinions set forth above represent our conclusions as to the application of existing Massachusetts income tax law to the facts of the instant transaction, and we can give no assurance that changes in such law, or in the interpretation thereof, will not affect the opinions expressed by us.

It is expressly understood that the opinions set forth above represent our conclusions based upon the documents reviewed by us and the facts presented to us. Any material amendments to such documents or changes in any significant fact could affect the opinions expressed herein.

We have not been asked to, and we do not, render any opinion with respect to any matters other than those expressly set forth above. This opinion is rendered solely for the benefit of the Mutual Holding Company, the Bank, and the Mid-Tier Holding Company in connection with the proposed transactions described herein, and may not be delivered to or relied upon by any other person or entity without our express written consent, except that we hereby consent to the filing of this opinion as an exhibit to the Mutual Holding Company's and the Bank's letter application as filed with the Massachusetts Commissioner of Banks, and as an exhibit to the Mid-Tier Holding Company's Registration Statement on Form S-1 as filed with the SEC. We also consent to the references to our firm in the Prospectus contained in such filings under the captions "The Reorganization and Offering—Material Income Tax Consequences" and "Legal Matters," and to the summary of our opinion in such Prospectus.

Very truly yours,

![LOGO](g122170g0612010301345.jpg)

Wolf & Company, P.C.

## Exhibit 10.1

**Exhibit 10.1** 

**EMPLOYMENT AGREEMENT** 

This Employment Agreement (the "<u>Agreement</u>") is made and entered into as of the 28<sup>th</sup> day of May 2026, to be effective as of the Effective Date as defined in Section 19 below, by and between BayCoast Bank (the "<u>Bank</u>") and Marie Pellegrino (the "<u>Executive</u>"). Any reference to the "Company" shall mean Narragansett Bancorp, Inc., the holding company of the Bank.

**RECITALS** 

**WHEREAS,** the Executive is presently serving as the President of the Bank; and

**WHEREAS,** the BayCoast Bank and Narragansett Financial Corporation has adopted a Plan of Holding Company Reorganization (the "Reorganization"); and

**WHEREAS,** the parties desire to enter into this Agreement to induce the Executive to continue employment with the Bank, and to provide further incentive for the Executive to achieve the financial and performance objectives of the Bank and the Company.

**NOW, THEREFORE,** in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties hereby agree as follows:

**1. POSITION AND RESPONSIBILITIES.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Employment</u>.** During the Term (as defined in Section 2(a)) of this Agreement, the Executive agrees to serve as President of the Bank and the Company or any successor executive position with the Bank and the Company that is consented to, in writing, by the Executive (the "<u>Executive Position</u>"), and will perform the duties of and have all powers associated with the Executive Position as are appropriate for a person in the position of the Executive Position, as well as those as shall be assigned by the Board of Directors of the Bank (the "<u>Board of Directors</u>"). As President, the Executive will report directly to the Board of Directors. The Executive currently serves and shall continue to serve as a member of the Boards of Directors of the Bank and the Company. During the term of this Agreement, the Executive also agrees to serve, if elected, as an officer, director, or trustee of any affiliate of the Bank and the Company and in such capacity to perform the duties and responsibilities reasonably appropriate to any such position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Responsibilities</u>.** During the Executive's employment hereunder, the Executive will be employed on a full-time basis and devote the Executive's full business time and best efforts, business judgment, skill, and knowledge to the performance of the Executive's duties and responsibilities related to the Executive Position. Except as otherwise provided in Section 1(c), or as may be approved by the Board of Directors, the Executive will not engage in any other business activity during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Other Activities Service on Other Boards and Committees</u>.** During her employment hereunder, the Executive shall devote her full business time and her best efforts, business judgment, skill and knowledge to the performance of her duties and responsibilities hereunder. However, the Bank encourages participation by the Executive on community boards and committees and in activities generally considered to be in the public interest, but the Board of Directors shall have the right to approve or disapprove, in its sole discretion, the Executive's participation on those boards and committees. In addition, the Executive may manage her personal assets and invest her assets in real estate and businesses, which are not in competition with the business of the Bank (other than purchasing securities or other interests in any entity provided that such purchase shall not result in the Executive's collectively owning beneficially at any time one percent (1%) or more of the equity securities of a publicly-held corporation in competition with the Bank or five percent (5%) or more of the equity securities of any business in competition with the Bank).

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**2. TERM.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Term and Annual Renewal</u>.** The initial term of this Agreement will begin as of the Effective Date and continue for a period of three (3) years (the "<u>Term</u>"). Commencing on the first anniversary of the Effective Date and continuing on each subsequent anniversary of the Effective Date (each anniversary referred to as a "<u>Renewal Date</u>"), the Term will extend automatically for one additional year, so that the Term will be three (3) years from the applicable Renewal Date, unless either the Bank or the Executive, by written notice to the other given at least thirty (30) days prior to the Renewal Date, notifies the other of its intent not to extend the Term. In the event either party provides notice not to extend the Term, the Term will become fixed and terminate as of the last day of the then current Term. For avoidance of doubt, any extension to the Term will become the new "Term" for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Change in Control</u>.** Notwithstanding the foregoing, in the event the Bank or the Company has entered into an agreement to effect a transaction that would be considered a Change in Control, as defined in Section 5, the Term of this Agreement will automatically extend so that it expires no less than two (2) years beyond the effective date of the Change in Control, subject to extensions as set forth in Section 2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Continued Employment Following Expiration of Term</u>.** Nothing in this Agreement will mandate or prohibit a continuation of the Executive's employment following the expiration of the Term.

**3. COMPENSATION, BENEFITS AND REIMBURSEMENT.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Base Salary</u>.** In consideration of the Executive's performance of the responsibilities and duties set forth in this Agreement, the Executive will receive an annual base salary of $425,000 per year ("<u>Base Salary</u>"). The Bank will pay the Base Salary in accordance with its customary payroll practices. During the term of this Agreement, the Board of Directors (or the Compensation Committee of the Board of Directors (the "<u>Compensation Committee</u>")) will review the Executive's Base Salary at least annually and may increase, but not decrease, the Executive's Base Salary. Any increase in Base Salary will become the new "Base Salary" for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Bonus and Incentive Compensation</u>.** The Executive (1) shall be eligible to participate in any bonus plan or arrangement of the Bank in which senior management is eligible to participate, pursuant to which a bonus may be paid to the Executive in accordance with the plan or arrangement; and/or (2) may receive a bonus, if any, on a discretionary basis, as determined by the Board of Directors or the Compensation Committee. The Executive will be eligible for an annual short-term incentive cash bonus of up to 45.0% of Base Salary, less required tax withholding, subject to terms and conditions, including performance conditions, as shall be determined by the Board of Directors or the Compensation Committee. Each cash bonus shall be paid to the Executive as a single lump sum cash payment (less required withholding) as soon as practicable after the last day of the applicable bonus period, but in no event later than March 15th of the calendar year following the year in which the last day of the performance period occurs (or as soon as administratively practicable thereafter). The Executive may also be entitled to long-term bonuses pursuant to any arrangement established by the Compensation Committee and may also receive discretionary bonuses from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Benefit Plans</u>.** The Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to senior management of the Bank, on terms and conditions no less favorable than the plans, arrangements, and perquisites available to other members of senior management of the Bank. Without limiting the generality of the foregoing provisions of this Section 3(c), the Executive also will be entitled to participate in any employee benefit plans including but not limited to retirement plans, pension plans, profit-sharing plans, health-and-accident plans, or any other employee benefit plan or arrangement made available by the Bank in the future to management employees, subject to and on a basis consistent with the terms, conditions and overall administration of the plans and arrangements as applicable to other management employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Leave and Paid Time Off</u>.** The Executive will be entitled to paid time off each year (of not less than five (5) weeks) plus two (2) personal days and unlimited sick days during the term of this Agreement measured on a calendar year basis, in accordance with the Bank's customary practices and in accordance with the Bank's policies and procedures for officers, in addition to all holidays observed by the Bank. Any unused paid time off during an annual period will be treated in accordance with the Bank's personnel policies as in effect from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Expense Reimbursements</u>.** The Bank will reimburse the Executive for all reasonable travel, entertainment and other expenses incurred by the Executive in performing the Executive's obligations under this Agreement, including, without limitation, fees for memberships in organizations that the Executive and the Board of Directors or the Compensation Committee mutually agree are necessary and appropriate in connection with the performance of the Executive's duties under this Agreement. All reimbursements will be made as soon as practicable upon substantiation of the expenses by the Executive in accordance with the applicable policies and procedures of the Bank and, in any event, not later than the last day of the calendar year immediately following the calendar year in which the Executive incurred the expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Club and Automobile</u>.** In addition to the perquisites referenced in Section 3(c), the Executive shall also be entitled to a reasonable stipend by the Bank (in an amount determined by the Bank) for a vehicle and reimbursement for local golf or social club membership(s) as in effect as of the Effective Date or as mutually agreed upon following the Effective Date.

**4. TERMINATION AND TERMINATION PAY.** 

Subject to Section 5, which governs the occurrence of a Change in Control, the Executive's employment under this Agreement will terminate under the circumstances set forth in this Section 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Definition of Accrued Obligations</u>.** For purposes of this Agreement, the term "<u>Accrued Obligations</u>" means the sum of: (i) any Base Salary earned but unpaid through the Executive's Date of Termination, (ii) unpaid expense reimbursements (subject to, and in accordance with, Sections 3(e) and (f)), (iii) unused paid time off accrued through the Date of Termination (subject to an in accordance with Section 3(d)), (iv) any earned but unpaid short-term and long-term cash incentive compensation for the year immediately preceding the year of termination and (v) any vested benefits the Executive may have under any employee benefit plan of the Bank through the Date of Termination, which vested benefits will be paid and/or provided in accordance with the terms of the employee benefit plans. Unless otherwise provided by the applicable employee benefit plan, the Accrued Obligations, if any, will be paid to the Executive (or the Executive's estate or beneficiary) within thirty (30) days following the Executive's Date of Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Death</u>.** This Agreement and the Executive's employment with the Bank will terminate upon the Executive's death, in which event the Bank's obligation will be to pay or provide the Executive's estate or beneficiary any Accrued Obligations. In addition, the Bank will provide the Executive's beneficiary the equivalent of three (3) months Base Salary and continue medical benefits for her dependents for twelve (12) months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Disability</u>.** The Bank shall be entitled to terminate the Executive's employment and this Agreement due to the Executive's Disability. If the Bank terminates the Executive's employment due to the Executive's Disability, the Bank's sole obligation under this Agreement shall be to pay or provide the Executive any Accrued Obligations. For these purposes, the term "<u>Disability</u>" means the Executive is deemed disabled for purposes of the Bank's long-term disability plan or policy that covers the Executive or is determined to be disabled by the Social Security Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Termination for Cause</u>.** The Board of Directors may immediately terminate the Executive's employment and this Agreement at any time for "Cause." In the event the Executive's employment is terminated for Cause, the Bank's sole obligation will be to pay or provide to the Executive any Accrued Obligations; provided, however, that the Bank will have no obligation to pay any earned but unpaid short-term and long-term cash incentive compensation for the year immediately preceding the year of termination in the event the Executive is terminated for Cause. For purposes of this Agreement, the term "<u>Cause</u>" means termination because of, in the good faith determination of the Board of Directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conviction of the Executive of a felony or of any lesser criminal offense involving moral turpitude (other than for traffic violations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the willful commission by the Executive of a criminal or other act that, in the judgment of the Board of Directors will likely cause substantial economic damage to the Company, the Bank or any subsidiary of either or substantial injury to the business reputation of the Company, the Bank or any subsidiary;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the commission by the Executive of an act of fraud in the performance of her duties on behalf of the Company, the Bank, or any subsidiary of either;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the continuing willful failure of the Executive to perform her duties to the Company, the Bank or any subsidiary of either (other than any such failure resulting from the Executive's incapacity due to physical or mental illness or the Executive declining to perform any assigned duties to the extent such assignment or duties would constitute a violation of law) after written notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a material breach by the Executive of the Bank's or the Company's Code of Ethics (or similar policies of the Bank); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) an order of a federal or state regulatory agency or a court of competent jurisdiction requiring the termination of the Executive's employment with the Bank or the Company.

Any determination of Cause under this Agreement will be made by resolution adopted by the Board of Directors at a meeting called and held for that purpose. The Executive will be provided with reasonable notice of the meeting, and the Executive will be given an opportunity to be heard before a vote is taken by the disinterested members of the Board of Director regarding the termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Resignation by Executive without Good Reason</u>.** The Executive may resign from employment during the term of this Agreement without Good Reason upon at least thirty (30) days prior written notice to the Board of Trustees, provided, however, that the Bank may accelerate the Date of Termination upon receipt of written notice of the Executive's resignation. In the event the Executive resigns without Good Reason, the Bank's sole obligation under this Agreement will be to pay or provide any Accrued Obligations to the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Termination Without Cause or With Good Reason</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Board of Directors may immediately terminate the Executive's employment at any time for a reason
other than Cause (a termination " <u>Without Cause</u> "), and the Executive may, by written notice to the Board of Directors, terminate her employment at any time within ninety (90) days following an event constituting "Good
Reason" (a termination " <u>With Good Reason</u> "); provided, however, that the Bank will have thirty (30) days to cure the "Good Reason" condition, but the Bank may waive its right to cure. In the event of a
termination of employment described under this Section 4(f)(i) during the Term and subject to the requirements of Section 4(f)(iii), the Bank will pay or provide the Executive the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Accrued Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a cash payment equal to the greater of: (i) remaining Base Salary and total annual incentive bonus opportunity (based on the highest bonus earned by the Executive for the three most recently completed calendar years prior to the Executive's Date of Termination) that would have been paid to the Executive during the remaining Term of the Agreement; or (ii) two (2) times the sum of Base Salary and the average total annual incentive bonus paid to Executive for the three most recently completed calendar years prior to the Executive's Date of Termination; in either case payable in a lump sum within sixty (60) days of the Executive's Date of Termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) provided that the Executive has elected continued health care coverage in accordance with the Consolidated Omnibus Budget Reconciliation Act ("<u>COBRA")</u>, reimbursement of the Executive's COBRA health care costs for the greater of (i) the remaining Term of the Agreement, or (ii) eighteen (18) months or the Bank's COBRA health continuation period, whichever ends earlier (in either case commencing with the first month following the Executive's Date of Termination).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) " <u>Good Reason</u> " exists if, without the Executive's express written consent, any of the
following occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a material reduction in the Executive's Base Salary and/or aggregate incentive compensation opportunities
under the Bank's annual and long-term incentive plans or programs, as

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applicable; notwithstanding the foregoing, the Bank or Company may eliminate and/or modify existing employee benefit, retirement, or fringe benefit plans and coverage levels on a consistent and non-discriminatory basis applicable to all executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a material reduction in the Executive's authority, duties or responsibilities from the position and
attributes associated with the Executive Position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the failure to re-appoint the Executive to the Executive
Position set forth under Section 1(a), or a failure to nominate and recommend the election of the Executive to the Board of Directors of the Company or to appoint or nominate and elect the Executive to the Board of Directors of the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a relocation of the Executive's principal place of employment, which increases the Executive's
daily one-way commute by more than sixty (60) miles; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) a material breach of this Agreement by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything to the contrary in Section 4(f)(i), the Executive will not receive any payments
or benefits under Sections 4(f)(i)(B) or 4(f)(i)(C) unless and until the Executive executes a release of claims (the " <u>Release</u> ") against the Bank and any affiliate, and their officers, trustees, directors, successors and assigns,
releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship, including claims under the Age Discrimination in Employment Act, but not including claims
for benefits under tax-qualified plans or other benefit plans in which the Executive is vested, claims for benefits required by applicable law, or claims with respect to obligations set forth in this Agreement
that survive the termination of this Agreement. The Release must be executed and become irrevocable by the 60th day following the Date of Termination, provided that if the 60-day period spans two
(2) calendar years, then, to the extent necessary to comply with Section 409A of the Internal Revenue Code of 1986, as amended (" <u>Code</u> "), the payments and benefits described in this Section 4(f) will be paid, or
commence, in the second calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **<u>Effect on Status as a Director</u>.** In the event of the Executive's termination of employment under this Agreement for any reason, whether by the Bank and the Company or by the Executive, and unless otherwise agreed to by the mutual consent of the Executive and the Bank and the Company, the termination will also constitute the Executive's resignation as a director of the Bank and the Company, as well as a director of any subsidiary or affiliate thereof, to the extent the Executive is serving as a director of any of the aforementioned entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **<u>Notice; Effective Date of Termination</u>.** Any Notice of Termination of employment under this Agreement must be communicated by or to the Executive or the Bank, as applicable, in accordance with Section 17. For purposes of this Agreement, the term "<u>Date of Termination</u>" means the Executive's termination of employment pursuant to this Agreement, which will be effective on the earliest of: (i) immediately after the Bank gives notice to the Executive of the Executive's termination Without Cause, unless the parties agree to a later date, in which case, termination will be effective as of such later date; (ii) immediately upon approval by the Board of Directors of termination of the Executive's employment for Cause; (iii) immediately upon the Executive's death or Disability; (iv) thirty (30) days after the Executive gives written notice to the Bank of the Executive's resignation from employment (including With Good Reason), provided that the Bank may set an earlier termination date at any time prior to the date of termination of employment, in which case the Executive's resignation shall be effective as of that date; or (v) in the event of the Executive's termination With Good Reason due to a material reduction in Base Salary, the date on which the Executive provides Notice of Termination in accordance with Section 4(f)(i). If, within 30 days after any Notice of Termination of employment by the Bank, the Executive notifies the Bank that a dispute exists concerning the termination, the parties shall promptly proceed to arbitration, as provided in Section 14. Notwithstanding the pendency of any such dispute, the Bank may discontinue paying the Executive's compensation until the dispute is finally resolved in accordance with this Agreement. If it is determined that the Executive is entitled to compensation and benefits under this Agreement, the payment of such compensation and benefits by the Bank shall commence immediately following the date of resolution by arbitration, with interest due the Executive on the cash amount that would have been paid pending arbitration (at the prime rate as published in *The Wall Street Journal* from time to time).

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**5. CHANGE IN CONTROL.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Change in Control Defined</u>.** For purposes of this Agreement, the term "<u>Change in Control</u>" means: (i) a change in the ownership of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership of a substantial portion of the assets of the Corporation as defined in accordance with Code Section 409 A. For purposes of this Section 5(a), the term "<u>Corporation</u>" means the Bank, the Company or any of their successors, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A change in the ownership of a Corporation occurs on the date that any one person, or more than one person
acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Corporation that, together with stock held by such person or group, constitutes more
than fifty (50) percent of the total fair market value or total voting power of the stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A change in the effective control of the Corporation occurs on the date that either (A) any one person, or
more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vi)(D)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Corporation possessing thirty (30) percent or more of the total voting power of the stock of the Corporation, or (B) a majority of the
members of the board of directors of the Corporation is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the board of directors prior to the date of the
appointment or election, provided that this subsection "(B)" is inapplicable where a majority stockholder of the Corporation is another corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A change in a substantial portion of the Corporation's assets occurs on the date that any one person or
more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C)) acquires (or has acquired during the twelve (12) month period ending on the date of the most
recent acquisition by such person or persons) assets from the Corporation that have a total gross fair market value equal to or more than forty (40) percent of the total gross fair market value of (A) all of the assets of the Corporation,
or (B) the value of the assets being disposed of, either of which is determined without regard to any liabilities associated with such assets.

For all purposes hereunder, the definition of Change in Control shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5), except to the extent that such regulations are superseded by subsequent guidance.

For the avoidance of doubt and notwithstanding anything herein to the contrary, a Change in Control shall not be deemed to have occurred in connection with the Reorganization and/or minority stock offering. Additionally, a Change in Control shall not be deemed to have occurred in the event of a second-step conversion of the mutual holding company to a stock holding company with a contemporaneous stock offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Change in Control Benefits</u>.** Upon the termination of the Executive's employment by the Bank or the Company (or any successor) Without Cause or by the Executive With Good Reason during the Term on or within two years after the effective time of a Change in Control, the Bank (or any successor) will pay or provide the Executive, or the Executive's estate in the event of the Executive's death, with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Accrued Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a cash payment (the " <u>Change in Control Severance</u> ") equal to three (3) times the sum of:
(A) the Executive's Base Salary at the Date of Termination (or the Executive's Base Salary in effect during any of the prior three years, if higher); and (B) the average annual total incentive bonus earned by the Executive for
three (3) most recently completed calendar years prior to the Change Control, or if greater, the annual total incentive bonus that would have been earned in the year of the Change of Control at target bonus opportunity; which cash payment shall
be paid in a lump sum within thirty (30) days of the Executive's Date of Termination; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the value of health care costs for thirty-six (36) months (based on the COBRA cost in effect for continued insurance coverage at the Date of Termination, whether or not the Executive elects COBRA); which shall be paid in cash
in a lump sum within thirty (30) days of the Executive's Date of Termination.

Notwithstanding the foregoing, the payments and benefits provided in this Section 5(b) will be payable to the Executive in lieu of any payments or benefits that are payable under Section 4(f).

**6. COVENANTS OF EXECUTIVE.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Non-Solicitation/Non-Compete</u>.** The Executive hereby covenants and agrees that during the "<u>Restricted Period</u>," the Executive will not, without the written consent of the Bank, either directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like
circumstances would expect) to have the effect of causing any officer or employee of the Bank, or any of its respective subsidiaries or affiliates, to terminate his or her employment with the Bank and/or accept employment with another employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) become an officer, employee, consultant, director, trustee, independent contractor, agent, joint venturer,
partner or trustee of any commercial bank, savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that
competes with the business of the Bank or any of its direct or indirect subsidiaries or affiliates that: (A) has a headquarters within twenty-five (25) miles of the Bank's headquarters (the " <u>Restricted Territory</u> "),
or (B) has one or more offices, but is not headquartered, within the Restricted Territory, but in the latter case, only if the Executive would be employed, conduct business or have other responsibilities or duties within the Restricted
Territory; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solicit, provide any information, advice, or recommendation, or take any other action intended (or that a
reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank to terminate an existing business or commercial relationship with the Bank.

Except as otherwise provided for in Section 18, for purposes of this Section 6(a), the "<u>Restricted Period</u>" will be: (i) at all times during Executive's period of employment with the Bank; and (ii) except as provided above, during the period beginning on Executive's Date of Termination and ending on the one-year anniversary of the Date of Termination for purposes of Section 6(a)(i) and (iii) and six (6) months for purposes of Section 6(a)(ii). Notwithstanding the foregoing, Section 6(a)(ii) shall not apply after a termination without Cause or with Good Reason. The Executive expressly acknowledges that she is receiving the adequate and mutually agreed upon consideration in the form of compensation and potential post-termination benefits hereunder in exchange for agreeing to the post-termination obligations herein. The Executive also acknowledges that Section 6(a)(ii) will not go into effect until ten (10) business days after she signs this Agreement and that she has had an opportunity to review that provision with legal counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Confidentiality</u>.** The Executive recognizes and acknowledges that the Executive has been and will be the recipient of confidential and proprietary business information concerning the Bank, including without limitation, past, present, planned or considered business activities of the Bank, and the Executive acknowledges and agrees that the Executive will not, during or after the term of the Executive's employment, disclose such confidential and proprietary information for any purposes whatsoever, except as may be expressly permitted in a writing signed by the Bank, or as may be required by regulatory inquiry, law or court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Information/Cooperation</u>.** The Executive will, upon reasonable notice, furnish any information and assistance to the Bank as may be reasonably required by the Bank, at the expense of the Bank, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however, that the Executive shall not be required to provide information or assistance with respect to any litigation between the Executive and the Bank or any other subsidiaries or affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Reliance</u>.** Except as otherwise provided, all payments and benefits to the Executive under this Agreement will be subject to the Executive's compliance with this Section 6, to the extent applicable. The parties hereto, recognizing that irreparable injury will result to the Bank, its business and property in the event of the Executive's breach of this Section 6, agree that, in the event of any such breach by the Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by the Executive and all persons acting for or with the Executive. The Executive represents and admits that the Executive's experience and capabilities are such that the Executive can obtain employment in a business engaged in other lines of business than the Bank, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood. Nothing herein will be construed as prohibiting the Bank from pursuing any other remedies available to them for such breach or threatened breach, including the recovery of damages from the Executive.

**7. SOURCE OF PAYMENTS.** 

All payments provided in this Agreement shall be timely paid by check or direct deposit from the general funds of the Bank (or any successor of the Bank).

**8. EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.** 

This Agreement contains the entire understanding between the parties hereto and supersedes any prior employment agreement between the Bank or any predecessor of the Bank and the Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to the Executive under another plan, program or agreement (other than an employment agreement) between the Bank and the Executive.

**9. NO ATTACHMENT; BINDING ON SUCCESSORS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Bank, expressly and unconditionally to assume and agree to perform the Bank's obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment had taken place. A successor's failure to assent to this Agreement following a Change in Control shall be deemed to be a material breach of this Agreement under Section 4(f) hereof.

**10. MODIFICATION AND WAIVER.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of the term or condition for the future as to any act other than that specifically waived.

**11. CERTAIN APPLICABLE LAW.** 

Notwithstanding anything herein contained to the contrary, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Bank may terminate the Executive's employment at any time, but any termination by the Bank other than termination for Cause shall not prejudice the Executive's right to compensation or other benefits under this Agreement. The Executive shall have no right to receive compensation or other benefits under this Agreement for any period after the Executive's termination for Cause, other than the Accrued Obligations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In no event shall the Bank (nor any affiliate) be obligated to make any payment pursuant to this Agreement that is prohibited by Section 18(k) of the Federal Deposit Insurance Act (codified at 12 U.S.C. sec. 1828(k)), 12 C.F.R. Part 359, or any other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Agreement to the contrary, to the extent that a payment or benefit described in this Agreement constitutes "non-qualified deferred compensation" under Section 409A of the Code, and to the extent that the payment or benefit is payable upon the Executive's termination of employment, then the payments or benefits will be payable only upon the Executive's "Separation from Service." For purposes of this Agreement, a "<u>Separation from Service</u>" will have occurred if the Bank and the Executive reasonably anticipate that either no further services will be performed by the Executive after the Date of Termination (whether as an employee or as an independent contractor) or the level of further services performed is less than fifty (50) percent of the average level of bona fide services in the thirty-six (36) months immediately preceding the termination. For all purposes hereunder, the definition of Separation from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-l(h)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, if the Executive is a "<u>Specified Employee</u>" (i.e., a "key employee" of a publicly traded company within the meaning of Section 409A of the Code and the regulations issued thereunder) and any payment under this Agreement is triggered due to the Executive's Separation from Service, then solely to the extent necessary to avoid penalties under Section 409A of the Code, no payment will be made during the first six (6) months following the Executive's Separation from Service. Rather, any payment which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on the first day of the seventh month following the Separation from Service. All subsequent payments shall be paid in the manner specified in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent not specifically provided in this Agreement, any compensation or reimbursements payable to Executive shall be paid or provided no later than two and one-half (2.5) months after the calendar year in which such compensation is no longer subject to a substantial risk of forfeiture within the meaning of Treasury Regulation Section 1.409A-l(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes Treasury Regulation Section 1.409A-2(b)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything in this Agreement to the contrary, the Executive understands that nothing contained in this Agreement limits the Executive's ability to file a charge or complaint with the Securities and Exchange Commission or any other federal, state or local governmental agency or commission ("<u>Government Agencies</u>") about a possible securities law violation without approval of the Bank (or any affiliate). The Executive further understands that this Agreement does not limit the Executive's ability to communicate with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Bank (or any affiliate) related to the possible securities law violation. This Agreement does not limit the Executive's right to receive any resulting monetary award for information provided to any Government Agency. In addition, pursuant to the Defend Trade Secrets Act of 2016, the Executive understands that an individual may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. Further, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the employer's trade secrets to the attorney and use the trade secret information in the court proceeding if the individual (y) files any document containing the trade secret under seal; and (z) does not disclose the trade secret, except pursuant to court order.

**12. SEVERABILITY.** 

If any provision of this Agreement is determined to be void or unenforceable, then the remaining provisions of this Agreement will remain in full force and effect.

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**13. GOVERNING LAW.** 

This Agreement shall be governed by the laws of the Commonwealth of Massachusetts, but only to the extent not superseded by federal law.

**14. ARBITRATION.** 

If any dispute should arise between the parties as to the meaning, effect, performance, enforcement, or other issue in connection with this Agreement, which dispute cannot be resolved by the parties, the dispute shall be decided by final and binding arbitration of a panel of three arbitrators. Proceedings in arbitration and its conduct shall be governed by the rules of the American Arbitration Association. ("AAA") applicable to commercial arbitrations (the "Rules") except as modified by this Section 14. The Executive shall appoint one arbitrator, the Bank shall appoint one arbitrator, and the third shall be appointed by the two arbitrators appointed by the parties. The third arbitrator shall be impartial and shall serve as chair of the panel. The parties shall appoint their arbitrators within thirty (30) days after the demand for arbitration is served, failing which the AAA promptly shall appoint a defaulting party's arbitrator, and the two arbitrators shall select the third arbitrator within fifteen (15) days after their appointment, or if they cannot agree or fail to so appoint, then the AAA promptly shall appoint the third arbitrator. The arbitrators shall render their decision in writing within thirty (30) days after the close of evidence or other termination of the proceedings by the panel, and the decision of a majority of the arbitrators shall be final and binding upon the parties, non-appealable, except in accordance with the Rules and enforceable in accordance with the applicable state law. Any hearings in the arbitration shall be held in Hudson county, Massachusetts unless the parties agree upon a different venue, and shall be private and not open to the public. Each party shall bear the fees and expenses of its arbitrator, counsel, and witnesses, and the fees and expenses of the third arbitrator shall be shared equally by the parties. The other costs of the arbitration, including the fees of AAA, shall be borne as directed in the decision of the panel. If the Executive is successful on the merits of the dispute, as determined in the arbitration, all legal fees and such other expenses as reasonably incurred by the Executive as a result of or in connection with or arising out of the dispute, shall be paid by the Bank, provided that such payment or reimbursement is made by the Bank not later than two and one-half months after the end of the year in which such dispute is resolved in Executive's favor.

**15. INDEMNIFICATION.** 

The Bank will provide the Executive (including the Executive's heirs, executors and administrators) with coverage under a standard directors' and officers' liability insurance policy at its expense, and will indemnify the Executive (and the Executive's heirs, executors and administrators) in accordance with the charter and bylaws of the Bank and the Company and to the fullest extent permitted under applicable law against all expenses and liabilities reasonably incurred by the Executive in connection with or arising out of any action, suit or proceeding in which the Executive may be involved by reason of having been a trustee, director or officer of the Bank or the Company or any subsidiary or affiliate of the Bank or the Company.

**16. TAX WITHHOLDING.** 

The Bank may withhold from any amounts payable to the Executive hereunder all federal, state, local or other taxes that the Bank may reasonably determine are required to be withheld pursuant to any applicable law or regulation (it being understood that Executive is responsible for payment of all taxes in respect of the payments and benefits provided herein).

**17. NOTICE.** 

For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below or if sent by facsimile or email, on the date it is actually received.

To the Bank:

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To Executive: Most recent address on file with the Bank

**18. TAX MATTERS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Executive's employment is terminated following a Change in Control, the non-competition and non-solicitation restrictions set forth in Section 6(a) of this Agreement shall apply for the period of time mutually agreed to by the parties, and in no event shall the time period be less than six months or exceed one year. The Bank and the Executive hereby recognize that: (i) the non-solicitation restriction and non-competition restriction under Sections 6(a) have value, and (ii) the value shall be recognized in any calculations the Bank and the Executive perform with respect to determining the affect, if any, of the parachute payment provisions of Section 280G of the Code ("Section 280G"), by allocating a portion of any payments, benefits or distributions in the nature of compensation (within the meaning of Section 280G(b)(2)), including the payments under Section 5(b) of this Agreement, to the fair value of the non-solicitation and non-competition restriction under Section 6(a) of this Agreement (the "Appraised Value"). The Bank, at the Bank's expense, shall obtain an independent appraisal to determine the Appraised Value no later than forty-five (45) days after entering into an agreement, that if completed, would constitute a Change in Control as defined in Section 5(a). The Appraised Value will be considered reasonable compensation for post change in control services within the meaning of Q&A -40 of the regulations under Section 280G; and accordingly, any aggregate parachute payments, as defined in Section 280G, will be reduced by the Appraised Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After taking into account the Appraised Value, in the event the receipt of all payments, benefits or distributions in the nature of compensation (within the meaning of Section 280G(b)(2)), whether paid or payable pursuant to Section 5(b) of this Agreement or otherwise (the "Change in Control Benefits") would subject the Executive to an excise tax imposed by Code Sections 280G and 4999, then the payments and/or benefits payable under this Agreement (the "Payments") shall be reduced by the minimum amount necessary so that no portion of the Payments under this Agreement are non-deductible to the Bank pursuant to Code Section 280G and subject to the excise tax imposed under Code Section 4999 (the "Reduced Amount"). Notwithstanding the foregoing, the Payments will not be reduced if it is determined that without such reduction, the Change in Control Benefits received by the Executive on a net after-tax basis (including without limitation, any excise taxes payable under Code Section 4999) is greater than the Change in Control Benefits that the Executive would receive, on a net after-tax benefit, if the Executive is paid the Reduced Amount under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless otherwise agreed in writing by the parties, all calculations with respect to Sections 280G and 4999 of the Code required under this Section 18 shall be determined by a nationally recognized firm with appropriate expertise mutually agreeable to the Bank and the Executive (the "Firm") whose determination will be conclusive and binding on all parties. The Bank shall pay all fees charged by the Firm for this purpose. The Bank and the Executive shall provide the Firm with all information or documents it reasonably requests, and the Firm will be entitled to rely on such information and on reasonable estimates and assumptions and interpretations of the provisions of Sections 280G and 4999 of the Code. If it is determined that the Payments should be reduced as a result of the Section 280G calculations performed by the Firm, the Bank shall promptly give (or cause the Firm to give) the Executive notice to that effect (and a copy of the detailed calculations thereof) and, to the extent consistent with Section 409 A of the Code, the Executive may determine which benefits are to be reduced. All determinations made under this Section 18 shall be made as soon as reasonably practicable and in no event later than ten (10) days prior to the Date of Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. EFFECTIVE DATE.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Effective Date</u>. Notwithstanding anything to the contrary contained herein, this Agreement shall be subject to the completion of the Reorganization and shall become effective as of the effective date of the Reorganization (which for purposes of this Agreement shall be referred to as the "Effective Date"). In the event the Reorganization is terminated for any reason, or in the event the Executive fails to remain an employee of the Bank as of the Effective Date, this Agreement shall automatically terminate and become null and void.

**[Signature Page Follows]** 

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**IN WITNESS WHEREOF,** the parties have executed this Agreement as of the date first written above.

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| | |
|:---|:---|
|  **BAYCOAST BANK** | **BAYCOAST BANK** |
|  By: | ![LOGO](g122170g01a01.jpg) <br>|
|  Name: | Nicholas M. Christ |
|  Title: | Chair of the Board and CEO |

---

---

| |
|:---|
|  **EXECUTIVE** |
| ![LOGO](g122170g01a02.jpg) <br>|
|  Marie Pellegrino |

---

## Exhibit 10.2

**Exhibit 10.2** 

January 2026

BayCoast Bank

Swansea, Massachusetts

**INCENTIVE COMPENSATION PLAN** 

**2026** 

<u>Prepared By:</u> Scott P. Lopes, SVP Chief Human Resources and Talent Officer <u>Approved By:</u> HR & Compensation Committee January 26, 2026

------

January 2026

BayCoast Bank

Swansea, Massachusetts

<u>INCENTIVE COMPENSATION PLAN</u> 

**Table of Contents**

---

| | |
|:---|:---|
|  | <u>Page</u> |
|  Introduction and Highlights of Incentive Plan for 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 |
|  <u>**Incentive Plan**</u> |  |
|  Section I - Definitions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5 |
|  Section II – Eligibility to Participate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6 |
|  Section III - Activating the Plan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6 |
|  Section IV - Calculation of Awards | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6 |
|  Section V - Distribution of Awards | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 |
|  Section VI - Plan Administration | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 |
|  Section VII - Amendment, Modification, Suspension or Termination | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 |
|  Section VIII - Effective Date of the Plan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8 |
|  Section IX - Employer Relations with Participants | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8 |
|  Section X - Governing Law | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8 |
|  Section XI – Chair & CEO/President's Discretion | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8 |
|  Section XII-Clawback Provision | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9 |
|  2026 Capital Performance Goals | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appendix A |
|  2026 Bank Wide Performance Goals | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appendix B |
|  2026 Individual/Department Performance Goals | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appendix C |

---

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January 2026

BayCoast Bank

Swansea, Massachusetts

<u>Introduction and Highlights of Incentive Compensation Plan for 2026</u> 

It is important to examine the benefits to the Bank that are attributable through the operation of this Incentive Compensation Plan (the "Incentive Plan" or "Plan"), which is designed to cover all eligible employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;∎ <u>Provides Motivation</u>: The opportunity to earn incentive awards provides employees with the motivation to
"stretch" for challenging, yet attainable, goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;∎ <u>Provides Retention</u>: The opportunity to earn incentive awards enhances the Bank's competitive
compensation posture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;∎ <u>Provides Management Team Building</u>: Because the incentive award is dependent on the attainment of Bank
goals, a "team orientation" is fostered among all employees.

The highlights of the Incentive Compensation Plan included in the following pages are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Board of Directors controls all aspects of the Plan, including the sole discretion to distribute all,
partial, or none of the incentive awards based on Performance Goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All eligible employees are participants of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The criteria necessary for Plan operation consists of Capital Performance Goals, Bank-wide Financial
Performance Goals and Individual and/or Department Performance Goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Incentive award distributions may range from 0% of base salary (did not meet Bank and/or individual goals) to
45% of base salary (maximum performance under the Plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. At the sole discretion of the Board of Directors, and upon subsequent approval, award distribution would be
made during the first quarter of the current fiscal year for the prior year's end performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Plan Level categories of Incentive Plan participants are as follows:

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January 2026

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; <br> **Plan Level**<br>| **Pay Grade Code**<br>| **Range of Bonus Awards**<br>|
| &nbsp;&nbsp; A<br>| <br> Chair & CEO,<br> President<br>| 0% - 45%<br>|
| &nbsp;&nbsp;&nbsp;B | 119E\*<br>| 0% - 37.5% |
| &nbsp;&nbsp;&nbsp;B | 118E\*<br>| 0% - 37.5% |
| &nbsp;&nbsp;&nbsp;C | 117E\*<br>| 0% - 30% |
| &nbsp;&nbsp;&nbsp;C | 116E\*<br>| 0% - 30% |
| &nbsp;&nbsp;&nbsp;C | 115E\*<br>| 0% - 30% |
| &nbsp;&nbsp;&nbsp;D | 114E\*<br>| 0% - 22.5% |
| &nbsp;&nbsp;&nbsp;D | 113E\*<br>| 0% - 22.5% |
| &nbsp;&nbsp;&nbsp;D | 112E\*<br>| 0% - 22.5% |
| &nbsp;&nbsp;&nbsp;D | 112N\*<br>| 0% - 22.5% |
| &nbsp;&nbsp;&nbsp;D | 111E\*<br>| 0% - 22.5% |
| &nbsp;&nbsp;&nbsp;E | 110E\*<br>| 0% - 15% |
| &nbsp;&nbsp;&nbsp;E | 110N\*<br>| 0% - 15% |
| &nbsp;&nbsp;&nbsp;E | 109E\*<br>| 0% - 15% |
| &nbsp;&nbsp;&nbsp;E | 109N\*<br>| 0% - 15% |
| &nbsp;&nbsp;&nbsp;E | 108E\*<br>| 0% - 15% |
| &nbsp;&nbsp;&nbsp;E | 107E\*<br>| 0% - 15% |
| &nbsp;&nbsp;&nbsp;F | 108N\*<br>| 0% - 10% |
| &nbsp;&nbsp;&nbsp;F | 107N\*<br>| 0% - 10% |
| &nbsp;&nbsp;&nbsp;F | 106N\*<br>| 0% - 10% |
| &nbsp;&nbsp;&nbsp;F | 105N\*<br>| 0% - 10% |
| &nbsp;&nbsp;&nbsp;F | 104N\*<br>| 0% - 10% |
| &nbsp;&nbsp;&nbsp;F | 103N\*<br>| 0% - 10% |
| &nbsp;&nbsp;&nbsp;F | 102N\*<br>| 0% - 10% |
| &nbsp;&nbsp;&nbsp;F | 101N\*<br>| 0% - 10% |

---

• \*E = Exempt

• \*N = Non-Exempt

The Board of Directors of BayCoast Bank has established this Incentive Plan, and reserves the right, and has the sole discretion, to distribute all, part, or none of the incentive awards based on all of the Performance Goals. The purpose of the Plan is to meet and exceed financial goals and

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January 2026

to promote a superior level of performance relative to the Bank's competition in its market area. By offering the potential payment of incentive compensation beyond base salaries, the Plan provides a reward for meeting and exceeding the Performance Goals established each fiscal year. The Incentive Compensation Plan will be presented to the HR & Compensation Committee then Executive Committee for review and subsequent approval on an annual basis.

**SECTION I - <u>DEFINITIONS</u>** 

Various terms used in the Plan are defined as follows:

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| | |
|:---|:---|
| <u>Base Salary Earnings & Comm.</u>: | The base salary earnings and commissions for the Plan year ended. |
| <u>Board of Directors:</u> | The Board of Directors of BayCoast Bank. |
| <u>Chair & CEO</u>: | Board Chair and CEO of BayCoast Bank. |
| <u>President:</u> | President of BayCoast Bank |
| <u>Executive Committee:</u> | The Executive Committee of the Board of Directors of BayCoast Bank. |
| <u>HR & Compensation Committee</u>: | The HR & Compensation Committee of the Board of Directors of BayCoast Bank. |
| <u>Management Performance Goals</u>: | The pre-set objectives and goals recommended by Bank Management which determine the range of awards if the Board of Directors elects to distribute awards under the Plan for the Plan Year |
| <u>Plan Participant:</u> | An eligible employee of the Bank designated by the Chair & CEO, President and approved by the HR & Compensation Committee for participation for the Plan Year. |
| <u>Plan Year</u>: | <u>The fiscal year.</u> |

---

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January 2026

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| | |
|:---|:---|
| <u>Performance Goals</u>: | Capital Performance Goals and Bank-wide Financial Performance Goals based on financial results as reflected in the audited financial statements. Individual and/or Department Performance Goals are based on the success of individual and/or department performance. |

---

**SECTION II - <u>ELIGIBILITY TO PARTICIPATE</u>** 

To be eligible for a potential award under the Plan, a Plan Participant must be in full-time or part-time service for the Bank at the start and close of the fiscal year and be employed with the Bank when the award is distributed. The employee's job performance will also be a consideration when determining the amount of the award. If the active, full-time service with the Bank of a Plan Participant in the Plan is terminated by death, disability, retirement, or if the Plan Participant is on an approved leave of absence, the Chair & CEO or President may recommend an award to such Plan Participant based on the proportion of the plan year he/she was an active employee with less than one year's service.

**SECTION III - <u>ACTIVATING THE PLAN</u>** 

Subject to the discretion of the Board of Directors, the operation of the Plan is predicated on attaining and exceeding the Performance Goals. Capital Performance Goals are set forth in Appendix A. The Bank-wide Financial Performance Goals are set forth in Appendix B. Individual and/or Department Goals are included in Appendix C. Goals are reviewed and recommended by the HR & Compensation Committee for subsequent approval by the Executive Committee on an annual basis.

**SECTION IV - <u>CALCULATION OF AWARDS</u>** 

The HR & Compensation Committee designates a rate of distribution for the incentive awards as determined by this Plan. The actual rate of distribution for each category of employees will be based on Bank-wide Financial Performance Goal percentage attained by operating results and based on the Individual and/or Department Performance Goals percentage attained. These two percentages attained will be multiplied by the Capital Performance Goal percentage attained to

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January 2026

determine the overall percentage. The individual performance of each employee may also affect the dollar amount or percentage of the award granted to each recipient under this Plan. The full Board of Directors, in their sole discretion, will determine if both Bank and individual performance warrants approval and distribution of the final awards on an annual basis.

**SECTION V - <u>DISTRIBUTION OF AWARDS</u>** 

At the Board of Directors' discretion, distribution of awards will be made during the first quarter of the year following the end of the previous Plan Year. Distribution of the incentive award must be recommended by the Chair & CEO, President and approved by the HR & Compensation Committee. In the event of death of a Plan Participant, any approved award as outlined in Section II for distribution will become payable to the designated beneficiary of the Plan Participant as recorded under the Bank's group life insurance program, or in the absence of a valid designation, to the Plan Participant's estate.

**SECTION VI - <u>PLAN ADMINISTRATION</u>** 

The Board of Directors shall, with respect to the Plan, have the full power and authority to construe, interpret, manage, control, and administer this Plan, and to pass and decide upon cases in conformity with the objectives of the Plan.

Any decision made or action taken by the Bank or the Board of Directors, arising out of, or in connection with, the administration, interpretation, and effect of the Plan shall be at their absolute discretion and will be conclusive and binding on all parties.

No member of the Board of Directors or employee of the Bank shall be liable for any act or action hereunder, whether of omission or commission, by a Plan Participant or employee or by any agent to whom duties in connection with the administration of the Plan have been delegated in accordance with the Plan.

**SECTION VII - <u>AMENDMENT, MODIFICATION, SUSPENSION OR TERMINATION</u>** 

The Bank reserves the right, by and through its Board of Directors, to amend, modify, suspend, reinstate, or terminate all or part of the Plan at the end of any Plan Year. The Board of Directors

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January 2026

will give prompt written notice to each Plan Participant of any amendment, suspension or termination or any material modification of the Plan.

**SECTION VIII - <u>EFFECTIVE DATE OF THE PLAN</u>** 

The initial effective date of the plan shall be January 1, 2008, and then January 1 of each calendar year for succeeding Plan Years.

**SECTION IX - <u>EMPLOYER RELATION WITH PARTICIPANTS</u>** 

Neither establishment nor the maintenance of the Plan shall be construed as conferring any legal rights upon any Plan Participant or any person for a continuation of employment, nor shall it interfere with the right of an employer to discharge any Plan Participant or otherwise deal with him/her without regard to the existence of the Plan.

**SECTION X - <u>GOVERNING LAW</u>** 

Except to the extent pre-empted under federal law, the provisions of the Plan shall be construed, administered, and enforced in accordance with the laws of the Commonwealth of Massachusetts.

In the event of relevant changes in the Internal Revenue Code, related rulings and regulations, or changes imposed by other regulatory agencies affecting the continued appropriateness of the Plan and awards made there under, the Board may, at its sole discretion, accelerate or change the manner of payments of any unpaid awards or amend the provisions of the Plan.

**SECTION XI – <u>CHAIR & CEO/ PRESIDENT'S DISCRETION</u>** 

The Chair & CEO and President will review the amounts to be awarded to individual Plan Participants in accordance with the Incentive Plan. In addition to the Bank's performance, an eligible employee's job performance will also be a consideration when determining the amount of the award. The Chair & CEO and President may recommend to the Board of Directors an upward or downward adjustment to a bonus award if an employee's performance warrants. The Board of Directors, in its sole discretion, may adjust the Chair & CEO's and President's bonus

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January 2026

award upward or downward if, in their opinion, the Chair & CEO's and President's performance warrants.

**<u>SECTION XII – CLAWBACK PROVISION</u>**

In the event that BayCoast Bank is required to prepare an accounting restatement due to error, omission or fraud (as determined by the members of the Board of Directors), each Executive Officer (as defined below) shall reimburse the Bank for part, or the entire incentive award made to such Executive Officer on the basis of having met or exceeded specific targets for performance periods. For purposes of this Plan, (i) the term 'incentive awards" means awards under the Bank's Short-term Incentive Plan, the amount of which is determined in whole or in part upon specific performance targets relating to the financial results of the Bank; and (ii) the term "Executive Officer" means employees in Executive/Senior Officer roles and above who are eligible to participate in the Bank's Short-term Incentive Plan. The Bank may seek to reclaim incentives within a three-year period of the incentive payout.

## Exhibit 10.3

**Exhibit 10.3** 

**BAYCOAST BANK** 

**NONQUALIFIED DEFERRED COMPENSATION PLAN** 

*This document is drafted with the intent that it comply with Internal Revenue Code Section 409A and regulations promulgated thereunder.* 

*NFP Executive Benefits has provided you this specimen document strictly in its capacity as an employee benefits consulting firm and plan recordkeeper. NFP Executive Benefits does NOT provide legal, tax or accounting consultation or advice. It is NFP Executive Benefits' recommendation that you seek appropriately specialized professional consultation regarding the information and/or material contained herein.* 

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**BayCoast Bank** 

**Nonqualified Deferred Compensation Plan** 

**Table of Contents** 

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| | | |
|:---|:---|:---|
| Article 1 | Definitions | 1 |
| 1.1 | Account | 1 |
| 1.2 | Administrator | 1 |
| 1.3 | Board | 1 |
| 1.4 | Bonus | 1 |
| 1.5 | Change-in-Control | 1 |
| 1.6 | Code | 1 |
| 1.7 | Commissions | 2 |
| 1.8 | Compensation | 2 |
| 1.9 | Deferrals | 2 |
| 1.10 | Deferral Election | 2 |
| 1.11 | Disability | 2 |
| 1.12 | Effective Date | 2 |
| 1.13 | Eligible Employee | 2 |
| 1.14 | Employee | 2 |
| 1.15 | Employer | 2 |
| 1.16 | Employer Discretionary Contribution | 2 |
| 1.17 | ERISA | 3 |
| 1.18 | Investment Fund | 3 |
| 1.19 | Participant | 3 |
| 1.20 | Performance-based Compensation | 3 |
| 1.21 | Plan Year | 3 |
| 1.22 | Retirement | 3 |
| 1.23 | Salary | 3 |
| 1.24 | Separation from Service | 3 |
| 1.25 | Service Recipient | 3 |
| 1.26 | Specified Employee | 4 |
| 1.27 | Trust | 4 |
| 1.28 | Trustee | 4 |
| 1.29 | Years of Service | 4 |
| Article 2 | Participation | 4 |
| 2.1 | Commencement of Participation | 4 |
| 2.2 | Loss of Eligible Employee Status | 4 |
| Article 3 | Contributions | 4 |
| 3.1 | Deferral Elections - General | 4 |
| 3.2 | Time of Election | 4 |
| 3.3 | Distribution Elections | 5 |
| 3.4 | Additional Requirements | 5 |
| 3.5 | Cancellation of Deferral Election due to Disability | 5 |
| 3.6 | Employer Discretionary Contribution | 5 |
| 3.7 | Crediting of Contributions | 6 |
| Article 4 | Vesting | 6 |
| 4.1 | Vesting of Deferrals | 6 |
| 4.2 | Vesting of Employer Discretionary Contributions | 6 |
| 4.3 | Vesting due to Certain Events | 6 |
| 4.4 | Amounts Not Vested | 6 |
| 4.5 | Forfeitures | 6 |
| Article 5 | Accounts | 6 |
| 5.1 | Accounts | 6 |
| 5.2 | Investments, Gains and Losses | 7 |

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| | | |
|:---|:---|:---|
| Article 6 | Distributions | 7 |
| 6.1 | Distribution Election | 7 |
| 6.2 | Distributions upon an In-Service Account Triggering Date | 7 |
| 6.3 | Distributions upon Retirement | 7 |
| 6.4 | Substantially Equal Annual Installments | 8 |
| 6.5 | Distributions due to other Separation from Service | 8 |
| 6.6 | Distributions due to Disability | 8 |
| 6.7 | Distributions upon Death | 8 |
| 6.8 | Changes to Distribution Elections | 8 |
| 6.9 | Acceleration or Delay in Payments | 8 |
| 6.10 | Distributions to Specified Employee | 9 |
| 6.11 | Minimum Distribution | 9 |
| 6.12 | Form of Payment | 9 |
| 6.13 | Separation from Service for Cause | 9 |
| Article 7 | Beneficiaries | 9 |
| 7.1 | Beneficiaries | 9 |
| 7.2 | Lost Beneficiary | 9 |
| Article 8 | Funding | 10 |
| 8.1 | Prohibition against Funding | 10 |
| 8.2 | Deposits in Trust | 10 |
| 8.3 | Withholding of Employee Contributions | 10 |
| Article 9 | Claims Administration | 10 |
| Article 10 | General Provisions | 10 |
| 10.1 | Administrator | 10 |
| 10.2 | No Assignment | 11 |
| 10.3 | No Employment Rights | 11 |
| 10.4 | Incompetence | 11 |
| 10.5 | Identity | 11 |
| 10.6 | Other Benefits | 11 |
| 10.7 | Expenses | 12 |
| 10.8 | Insolvency | 12 |
| 10.9 | Amendment or Modification | 12 |
| 10.10 | Plan Suspension | 12 |
| 10.11 | Plan Termination | 12 |
| 10.12 | Plan Termination due to a Change-in-Control | 12 |
| 10.13 | Construction | 12 |
| 10.14 | Governing Law | 12 |
| 10.15 | Severability | 13 |
| 10.16 | Headings | 13 |
| 10.17 | Terms | 13 |
| 10.18 | Code Section 409A Fail Safe Provision | 13 |
| 10.19 | No Guarantee of Tax Consequences | 13 |
| 10.20 | Limitation on Actions | 13 |

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**BayCoast Bank** 

**Nonqualified Deferred Compensation Plan** 

BayCoast Bank hereby adopts this BayCoast Bank Nonqualified Deferred Compensation Plan (the "Plan") for the benefit of a select group of management or highly compensated employees. This Plan is an unfunded arrangement and is intended to be exempt from the participation, vesting, funding, and fiduciary requirements set forth in Title I of the Employee Retirement Income Security Act of 1974, as amended. It is intended to comply with Internal Revenue Code Section 409A.

**Article 1 Definitions** 

**1.1** **Account** 

The sum of all the bookkeeping sub-accounts as may be established for each Participant as provided in Section 5.1 hereof.

**1.2** **Administrator** 

The Compensation Committee of the Board.

**1.3** **Board** 

The Board of Directors of the Employer.

**1.4** **Bonus** 

Compensation which is designated as such by the Employer and which relates to services performed during an incentive period by an Eligible Employee in addition to his or her Salary, including any pretax elective deferrals from said Bonus to any Employer sponsored plan that includes amounts deferred under a Deferral Election or any elective deferral as defined in Code Section 402(g)(3) or any amount contributed or deferred at the election of the Eligible Employee in accordance with Code Section 125 or 132(f)(4).

**1.5** **Change-in-Control** 

Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a "Change-in-Control" of the Employer (which, for purpose of this Section 1.5 shall mean BayCoast Bank but not any of its affiliates or subsidiaries) shall mean the first to occur of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the date that any one person or persons acting as a group acquires ownership of Employer stock constituting more than fifty percent (50%) of the total fair market value or total voting power of the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the date that any one person or persons acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of the stock of the Employer possessing thirty percent (30%) or more of the total voting power of the stock of the Employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the date that any one person or persons acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Employer that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the Employer immediately prior to such acquisition; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the date that a majority of members of the Employer's Board is replaced during any 12- month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or elections.

**1.6** **Code** 

The Internal Revenue Code of 1986, as amended.

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**1.7** **Commissions** 

Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, Commissions shall mean sales commissions payable by an Employer to a Participant, under a sales commission plan designed from time to time by the Administrator, if (i) a substantial portion of the services provided by the Participant to the Employer consist of the direct sale of a product or service to an unrelated customer, (ii) the sales commissions paid by the Employer to the Participant consist of either a portion of the purchase price for the product or service or an amount substantially all of which is calculated by reference to the volume of sales, (iii) payment of the sales commissions is contingent upon the closing of the sales transaction and such other requirements as may be specified by the Employer before the closing of the sales transaction. Such term shall be interpreted in a manner consistent with the definition of "sales commission compensation" contained in Code Section 409A.

**1.8** **Compensation** 

The Participant's earned income, including Salary, Commissions, Bonus, Performance-based Compensation and other remuneration from the Employer as may be included by the Administrator.

**1.9** **Deferrals** 

The portion of Compensation that a Participant elects to defer in accordance with Section 3.1 hereof.

**1.10** **Deferral Election** 

The separate agreement, submitted to the Administrator, by which an Eligible Employee agrees to participate in the Plan and make Deferrals thereto.

**1.11** **Disability** 

Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a Participant shall be considered to have incurred a Disability if: (i) the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; (ii) the Participant is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Participant's Employer; or (iii) determined to be totally disabled by the Social Security Administration.

**1.12** **Effective Date** 

September 1, 2019

**1.13** **Eligible Employee** 

An Employee shall be considered an Eligible Employee if such Employee is a member of a "select group of management or highly compensated employees," within the meaning of Sections 201, 301 and 401 of ERISA, and is designated as an Eligible Employee by the Administrator. The Administrator may at any time, in its sole discretion, change the eligible criteria for an Eligible Employee or determine that one or more Participants will cease to be an Eligible Employee. The designation of an Employee as an Eligible Employee in any year shall not confer upon such Employee any right to be designated as an Eligible Employee in any future Plan Year.

**1.14** **Employee** 

Any person employed by the Employer.

**1.15** **Employer** 

BayCoast Bank and its subsidiaries and affiliates.

**1.16** **Employer Discretionary Contribution** 

A discretionary contribution made by the Employer that is credited to one or more Participant's Accounts in accordance with the terms of Section 3.6 hereof.

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**1.17** **ERISA** 

The Employee Retirement Income Security Act of 1974, as amended.

**1.18** **Investment Fund** 

Each investment(s) which serves as a means to measure value, increases or decreases with respect to a Participant's Accounts.

**1.19** **Participant** 

An Eligible Employee who is a Participant as provided in Article 2.

**1.20** **Performance-based Compensation** 

Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, "Performance-based Compensation" shall mean compensation that (i) meets the definition of Code Section 409A(a)(4)(B)(iii) and related guidance and regulations, and (ii) is designated as such by the Employer and relates to services performed during a performance period of at least twelve months by an Eligible Employee, including any pretax elective deferrals from said Performance-based Compensation to any Employer sponsored plan that includes amounts deferred under a Deferral Election or any elective deferral as defined in Code Section 402(g)(3) or any amount contributed or deferred at the election of the Eligible Employee in accordance with Code Section 125 or 132(f)(4).

**1.21** **Plan Year** 

For the initial Plan Year, Effective Date through December 31, 2019. For each year thereafter, January 1 through December 31.

**1.22** **Retirement** 

Retirement shall mean a Participant's Separation from Service on, or subsequent to, the applicable Participant attaining sixty-five (65) years of age.

**1.23** **Salary** 

An Eligible Employee's base salary earned during a Plan Year, including any pretax elective deferrals from said Salary to any Employer sponsored plan that includes amounts deferred under a Deferral Election or any elective deferral as defined in Code Section 402(g)(3) or any amount contributed or deferred at the election of the Eligible Employee in accordance with Code Section 125 or 132(f)(4).

**1.24** **Separation from Service** 

Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a Participant shall incur a Separation from Service with the Service Recipient due to death, retirement or other termination of employment with the Service Recipient unless the employment relationship is treated as continuing intact while the individual is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the individual retains a right to reemployment with the Service Recipient under an applicable statute or by contract. Upon a sale or other disposition of the assets of the Employer to an unrelated purchaser, the Administrator reserves the right, to the extent permitted by Code section 409A to determine whether Participants providing services to the purchaser after and in connection with the purchase transaction have experienced a Separation from Service.

**1.25** **Service Recipient** 

Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, Service Recipient shall mean the Employer or person for whom the services are performed and with respect to whom the legally binding right to compensation arises, and all persons with whom such person would be considered a single employer under Code Section 414(b) (employees of controlled group of corporations), and all persons with whom such person would be considered a single employer under Code Section 414(c) (employees of partnerships, proprietorships, etc., under common control).

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**1.26** **Specified Employee** 

Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a "Specified Employee" shall mean a participant who is considered a key employee on the Identification Date, as defined in Code Section 416(i) without regard to section 416(i)(5) and such other requirements imposed under Code Section 409A(a)(2)(B)(i) and regulations thereunder for the period beginning April 1 of the year subsequent to the Identification Date and ending March 31 of the following year. The Identification Date for this Plan is December 31 of each year. Notwithstanding anything to the contrary, a Participant is not a Specified Employee unless any stock of the Service Recipient is publicly traded on an established securities market or otherwise.

**1.27** **Trust** 

The agreement between the Employer and the Trustee under which the assets of the Plan are held, administered and managed, which shall conform to the terms of Rev. Proc. 92-64.

**1.28** **Trustee** 

The entity appointed by the Employer, or such other successor that shall become trustee pursuant to the terms of the Plan.

**1.29** **Years of Service** 

A Participant's "Years of Service" shall mean the total number of full twelve (12) month periods in which an individual has been employed by Employer beginning with Participant's date of participation in the Plan.

**Article 2 Participation** 

**2.1** **Commencement of Participation** 

Each Eligible Employee shall become a Participant at the earlier of the date on which his or her Deferral Election first becomes effective or the date on which an Employer Discretionary Contribution is first credited to his or her Account.

**2.2** **Loss of Eligible Employee Status** 

A Participant who is no longer an Eligible Employee shall not be permitted to submit a Deferral Election and ail Deferrals for such Participant shall cease as of the end of the Plan Year in which such Participant is determined to no longer be an Eligible Employee. Amounts credited to the Account of a Participant who is no longer an Eligible Employee shall continue to be held pursuant to the terms of the Plan and shall be distributed as provided in Article 6.

**Article 3 Contributions** 

**3.1** **Deferral Elections - General** 

A Participant's Deferral Election for a Plan Year is irrevocable for that applicable Plan Year; provided, however that a cessation of Deferrals shall be allowed if required by the terms of the Employer's qualified 401(k) plan in order for the Participant to obtain a hardship withdrawal from the 401 (k) plan. Such amounts deferred under the Plan shall not be made available to such Participant, except as provided in Article 6, and shall reduce such Participant's Compensation from the Employer in accordance with the provisions of the applicable Deferral Election; provided, however, that all such amounts shall be subject to the rights of the general creditors of the Employer as provided in Article 8. The Deferral Election, in addition to the requirements set forth below, must designate: (i) the amount of Compensation to be deferred, (ii) the time of the distribution, and (iii) the form of the distribution.

**3.2** **Time of Election** 

A Deferral Election shall be void if it is not made in a timely manner as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Deferral Election with respect to any Compensation must be submitted to the Administrator before the beginning of the calendar year during which the amount to be deferred will be earned. As of December 31 of each calendar year, said Deferral Election is irrevocable for the calendar year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing and in the discretion of the Employer, in a year in which an Employee is first eligible to participate, and provided that such Employee is not eligible to participate in any other similar account balance arrangement subject to Code Section 409A, such Deferral Election shall be submitted within thirty (30) days after the date on which an Employee is first eligible to participate, and such Deferral Election shall apply to Compensation to be earned during the remainder of the calendar year after such election is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing and in the discretion of the Employer, a Deferral Election with respect to any Performance-based Compensation may be submitted by the Eligible Employee or Participant provided that such Deferral Election is submitted at least six (6) months prior to the end of the performance period on which the Performance-based Compensation is based.

**3.3** **Distribution Elections** 

At the time a Participant makes a Deferral Election, he or she must also elect the time and form of the distribution by establishing one or more In-Service Account or Retirement Account(s) as provided in Sections 5.1 and 6.1. If the Participant fails to properly designate the time and form of a distribution, the Participant's Account shall be designated as a Retirement Account and shall be paid in a lump sum.

**3.4** **Additional Requirements** 

The Deferral Election, subject to the limitations set forth in Sections 3.1 and 3.2 hereof, shall comply with the following additional requirements, or as otherwise required by the Administrator in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Deferrals may be made in whole percentages or stated dollar amounts as determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The maximum amount that may be deferred each Plan Year is twenty-five percent (25%) of the Participant's Salary and Commissions, and one-hundred percent (100%) of the Participant's Bonus and Performance-based Compensation, net of applicable taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The distribution year for an In-Service Account must be at least five (5) Plan Years subsequent to the Plan Year in which the Participant first establishes the In-Service subaccount to be credited with contributions.

**3.5** **Cancellation of Deferral Election due to Disability** 

Notwithstanding anything to the contrary, if a Participant incurs a disability as defined in this Section 3.5, said Participant may file an election to stop Deferrals as of the date the election is received by the Administrator, provided that such cancellation occurs by the later of the end of the calendar year or the 15th day of the third month following the date the Participant incurs a disability. Disability for purposes of this Section 3.5 only means that a Participant incurs a medically determinable physical or mental impairment resulting in the Participant's inability to perform the duties of his or her position or any substantially similar position, where such impairment can be expected to result in death or can be expected to last for a continuous period of not less than six months, as determined by the Administrator in its sole discretion.

**3.6** **Employer Discretionary Contribution** 

The Employer may make Employer Discretionary Contributions to some or all Participants' Accounts in such amount and in such manner as may be determined by the Employer. Such Employer Discretionary Contributions, at the option of the Employer, shall be credited to such sub-account as may be elected by the Participant in accordance with Sections 3.1 and 5.1 and procedures established by the Administrator. In the event no such election is made by the Participant or if Employer desires to direct Employer Discretionary Contributions to a particular Participant sub-account, the Employer, in its sole discretion, may determine which sub-account will be credited with such Employer Discretionary Contributions. In the event the Employer does not designate which Participant sub-account shall be credited, such Employer Discretionary Contributions shall be credited to a lump-sum Retirement sub-account.

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**3.7** **Crediting of Contributions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Deferrals shall be credited to a Participant's Account, and if applicable transferred to the Trust, at such time as the Employer shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Employer Discretionary Contributions, if any, shall be credited to a Participant's Account, and if applicable transferred to the Trust, at such time as the Employer shall determine.

**Article 4 Vesting** 

**4.1** **Vesting of Deferrals** 

A Participant shall be one-hundred percent (100%) vested in his or her Account attributable to Deferrals and any earning or losses on the investment of such Deferrals.

**4.2** **Vesting of Employer Discretionary Contributions** 

A Participant shall have a vested right to the portion of his or her Account attributable to Employer Discretionary Contribution(s) and any earnings or losses on the investment of such Employer Discretionary Contribution(s) according to such vesting schedule as the Employer shall determine at the time an Employer Discretionary Contribution is made. In the event the Employer fails to provide a vesting schedule for a particular Employer Discretionary Contribution, such Employer Discretionary Contribution shall fully vest as follows

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| | |
|:---|:---|
| **Completed**<br> **Years of Service** | **Vested**<br> **Percentage** |
|  Less than 2 years | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0% |
|  2 but fewer than 3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25% |
|  3 but fewer than 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50% |
|  4 but fewer than 5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75% |
|  5 or more | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100% |

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**4.3** **Vesting due to Certain Events** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Participant who incurs a Disability shall be fully vested in the amounts credited to his or her Account as of the date of Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon a Participant's death, the Participant shall be fully vested in the amounts credited to his or her Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A Participant who incurs Retirement shall be fully vested in the amounts credited to his or her Account as of the date of Retirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon a Change-in-Control, all Participants shall be fully vested in the amounts credited to their Accounts as of the date of the Change-in-Control.

**4.4** **Amounts Not Vested** 

Any amounts credited to a Participant's Account that are not vested at the time of a distribution event shall be forfeited.

**4.5** **Forfeitures** 

At the discretion of the Employer, any forfeitures from a Participant's Account (i) may continue to be held in the Trust, may be separately invested, and may be used to reduce succeeding Deferrals and any Employer Contributions, or (ii) may be returned to the Employer as soon as administratively feasible.

**Article 5 Accounts** 

**5.1** **Accounts** 

The Administrator shall establish and maintain a bookkeeping account in the name of each Participant. The Administrator shall also establish sub-accounts as provided in subsection (a) and (b), below, as elected by the Participant pursuant to Article 3.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Participant may establish one or more Retirement Account(s) ("Retirement sub-account") by designating as such on the Participant's Deferral Election. Each Participant's Retirement sub-account shall be credited with Deferrals (as specified in the Participant's Deferral Election), any Employer Discretionary Contributions, and the Participant's allocable share of any earnings or losses on the foregoing. Each Participant's Retirement sub-account shall be reduced by any distributions made plus any federal and state tax withholding, and any social security withholding tax as may be required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A Participant may elect to establish one or more In-Service Account ("In-Service sub-account") by designating as such in the Participant's Deferral Election the year in which payment shall be made. Each Participant's in-Service sub-account shall be credited with Deferrals (as specified in the Participant's Deferral Election), any Employer Discretionary Contributions, and the Participant's allocable share of any earnings or losses on the foregoing. Each Participant's In-Service sub-account shall be reduced by any distributions made plus any federal and state tax withholding and any social security withholding tax as may be required by law.

**5.2** **Investments, Gains and Losses** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Participant may direct that his or her Retirement sub-accounts and or In-Service sub-accounts established pursuant to Section 5.1 may be valued as if they were invested in one or more Investment Funds as selected by the Employer in multiples of one percent (1 %). The Employer may from time to time, at the discretion of the Administrator, change the Investment Funds for purposes of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrator shall adjust the amounts credited to each Participant's Account to reflect Deferrals, any Employer Discretionary Contributions, investment experience, distributions and any other appropriate adjustments. Such adjustments shall be made as frequently as is administratively feasible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A Participant may change his or her selection of Investment Funds with respect to his or her Account or sub-accounts by filing a new election in accordance with procedures established by the Administrator. An election shall be effective as soon as administratively feasible following the date the change is submitted on a form prescribed by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the Participant's ability to designate the Investment Fund in which his or her deferred Compensation shall be deemed invested, the Employer shall have no obligation to invest any funds in accordance with the Participant's election. Participants' Accounts shall merely be bookkeeping entries on the Employer's books, and no Participant shall obtain any property right or interest in any Investment Fund.

**Article 6 Distributions** 

**6.1** **Distribution Election** 

Each Participant shall designate in his or her Deferral Election the form and timing of his or her distribution by indicating the type of sub-account as described under Section 5.1, and by designating the form in which payments shall be made from the choices available under Section 6.2 and 6.3 hereof. Notwithstanding anything to the contrary contained herein provided, no acceleration of the time or schedule of payments under the Plan shall occur except as permitted under both this Plan and Code Section 409A.

**6.2** **Distributions upon an In-Service Account Triggering Date** 

In-Service sub-account distributions of all vested amounts shall begin as soon as administratively feasible but no later than ninety (90) days following June 1 of the calendar year designated by the Participant on a properly submitted Deferral Election, and are payable in either a lump-sum payment or substantially equal annual installments, as described in Section 6.4 below, over a period of up to five (5) years as elected by the Participant in his or her Deferral Election. If the Participant fails to designate the form of the distribution, the sub-account shall be paid in a lump-sum payment.

**6.3** **Distributions upon Retirement** 

Upon a Participant's Retirement, all vested amounts of the Participant's Retirement sub-account(s) shall be distributed as soon as administratively feasible but no later than ninety (90) days following the Participant's Retirement, subject to Section 6.10 (Distributions to Specified Employees).

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Distribution shall be made either in a lump-sum payment or in substantially equal annual installments, as defined in Section 6.4 below, over a period of up to ten (10) years as elected by the Participant. If the Participant fails to designate the form of the distribution, the sub-account shall be paid in a lump-sum payment. If a Participant has any In-Service sub-accounts at the time of his or her Retirement, said sub-accounts shall be distributed in a lump sum as soon as administratively feasible but no later than ninety (90) days following Participant's Retirement, subject to Section 6.10 (Distributions to Specified Employees).

**6.4** **Substantially Equal Annual Installments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The amount of the substantially equal payments of all vested amounts shall be determined by multiplying the Participant's Account or sub-account by a fraction, the denominator of which in the first year of payment equals the number of years over which benefits are to be paid, and the numerator of which is one (1). The amounts of the payments for each succeeding year shall be determined by multiplying the Participant's Account or sub-account as of the applicable anniversary of the payout by a fraction, the denominator of which equals the number of remaining years over which benefits are to be paid, and the numerator of which is one (1). Installment payments made pursuant to this Section 6.4 shall be made as soon as administratively feasible but no later than ninety (90) days following the anniversary of the distribution event, subject to Section 6.10 (Distributions to Specified Employees).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of the Plan pursuant to Code Section 409A and regulations thereunder, a series of annual installments from a particular subaccount shall be considered a single payment.

**6.5** **Distributions due to other Separation from Service** 

Upon a Participant's Separation from Service for any reason other than Retirement all vested amounts credited to his or her Account shall be paid to the Participant in a lump-sum, as soon as administratively feasible, but no later than ninety (90) days, following the date of Separation from Service, subject to Section 6.10 (Distributions to Specified Employees).

**6.6** **Distributions due to Disability** 

Upon a Participant's Disability, all vested amounts credited to his or her Account shall be paid to the Participant in a lump sum as soon as administratively feasible but no later than ninety (90) days following the date of Disability.

**6.7** **Distributions upon Death** 

Upon the death of a Participant, all vested amounts credited to his or her Account shall be paid, as soon as administratively feasible but no later than ninety (90) days following Participant's date of death, to his or her beneficiary or beneficiaries, as determined under Article 7 hereof, in a lump sum.

**6.8** **Changes to Distribution Elections** 

A Participant will be permitted to elect to change the form or timing of the distribution of the balance of his or her one or more sub-accounts within his or her Account to the extent permitted and in accordance with the requirements of Code Section 409A(a)(4)(C), including the requirement that (i) a redeferral election may not take effect until at least twelve (12) months after such election is filed with the Employer, (ii) an election to further defer a distribution (other than a distribution upon death, Disability must result in the first distribution subject to the election being made at least five (5) years after the previously elected date of distribution, and (iii) any redeferral election affecting a distribution at a fixed date must be filed with the Employer at least twelve (12) months before the first scheduled payment under the previous fixed date distribution election.

**6.9** **Acceleration or Delay in Payments** 

To the extent permitted by Code Section 409A, and notwithstanding any provision of the Plan to the contrary, the Administrator, in its sole discretion, may elect to (i) accelerate the time or form of payment of all vested amounts of a benefit owed to a Participant hereunder in accordance with the terms and subject to the conditions of Treasury Regulations Section 1.409A-3(j)(4), or (ii) delay the time of payment of a benefit owed to a Participant hereunder in accordance with the terms and subject to the conditions of Treasury Regulations Section 1.409A-2(b)(7). By way of example, and at the sole discretion of the Administrator, if a Participant's entire vested Account balance is less than the applicable Code Section

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402(g) annual limit, the Employer may distribute the Participant's Account in a lump sum provided that the distribution results in the termination of the participant's entire interest in the Plan, subject to the plan aggregation rules of Code Section 409A and regulations thereunder. By way of example, the Administrator may permit such acceleration of the time or schedule of a payment of all vested amounts under the arrangement to an individual other than a Participant as may be necessary to fulfill a domestic relations order (as defined in Code Section 414(p)(1)(B)).

**6.10** **Distributions to Specified Employee** 

Notwithstanding anything herein to the contrary, if any Participant is a Specified Employee upon a Separation from Service for any reason other than death, distributions of all vested amounts to such Participant shall commence no earlier than six months following Separation from Service (or, if earlier, the date of death of the Participant) and no later than nine months following Separation from Service. If distributions are to be made in annual installments, the second installment and all those thereafter will be made on the applicable anniversaries of the date on which the Participant's initial installment was payable.

**6.11** **Minimum Distribution** 

Notwithstanding any provision to the contrary, if the vested balance of a Participant's Account or sub-account at the time of a distribution event is $10,000 or less, then the Participant shall be paid his or her Account or sub-account as a single lump sum.

**6.12** **Form of Payment** 

All distributions shall be made in the form of cash.

**6.13** **Separation from Service for Cause** 

Notwithstanding anything to the contrary contained herein, in the event the Participant has an involuntary Separation from Service for Cause, Participant shall only receive the return of his or her Deferrals including the Participant's allocable share of any earnings or losses credited on those Deferrals pursuant to Section 5.2 and subject to Section 6.10 (Distributions to Specified Employees) above. Upon a Participant's Separation from Service for Cause, all amounts credited to Participant's Account amounts relating to Employer Discretionary Contributions, including the Participant's allocable share of any earnings or losses credited on the foregoing pursuant to Section 5.2, above, shall be forfeited back to the Employer. For purposes of this Plan, "Cause" shall mean (i) engaging in willful or grossly negligent misconduct that is materially injurious to the Employer and/or affiliate, (ii) embezzlement or misappropriation of funds or property of the Employer and/or affiliate, (iii) conviction of a felony or the entrance of a plea of guilty or nolo contendere to a felony, (iv) conviction of any crime involving fraud, dishonesty or breach of trust or the entrance of a plea of guilty or nolo contendere to such a crime, or (v) failure or refusal by the Participant to devote full business time and attention to the performance of his or her duties and responsibilities if such breach has not been cured within fifteen (15) days after notice is given to the Participant.

**Article 7 Beneficiaries** 

**7.1** **Beneficiaries** 

Each Participant may from time to time designate one or more persons (who may be any one or more members of such person's family or other persons, administrators, trusts, foundations or other entities) as his or her beneficiary under the Plan. Such designation shall be made in a form prescribed by the Administrator. Each Participant may at any time and from time to time, change any previous beneficiary designation, without notice to or consent of any previously designated beneficiary, by amending his or her previous designation in a form prescribed by the Administrator. If the beneficiary does not survive the Participant (or is otherwise unavailable to receive payment), or if no beneficiary is validly designated then the amounts payable under this Plan shall be paid to the Participant's estate. If more than one person is the beneficiary of a deceased Participant, each such person shall receive a pro rata share of any death benefit payable unless otherwise designated in the applicable form. If a beneficiary who is receiving benefits dies, all benefits that were payable to such beneficiary shall then be payable to the estate of that beneficiary.

**7.2** **Lost Beneficiary** 

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All Participants and beneficiaries shall have the obligation to keep the Administrator informed of their current address until such time as all benefits due have been paid. If a Participant or beneficiary cannot be located by the Administrator exercising due diligence, then, in its sole discretion, the Administrator may presume that the Participant or beneficiary is deceased for purposes of the Plan and all unpaid amounts (net of due diligence expenses) owed to the Participant or beneficiary shall be paid accordingly or, if a beneficiary cannot be so located, then such amounts may be forfeited. Any such presumption of death shall be final, conclusive and binding on all parties.

**Article 8 Funding** 

**8.1** **Prohibition against Funding** 

Should any investment be acquired in connection with the liabilities assumed under this Plan, it is expressly understood and agreed that the Participants and beneficiaries shall not have any right with respect to, or claim against, such assets nor shall any such purchase be construed to create a trust of any kind or a fiduciary relationship between the Employer and the Participants, their beneficiaries or any other person. Any such assets shall be and remain a part of the general, unpledged, unrestricted assets of the Employer, subject to the claims of its general creditors. It is the express intention of the parties hereto that this arrangement shall be unfunded for tax purposes and for purposes of Title I of the ERISA. Each Participant and beneficiary shall be required to look to the provisions of this Plan and to the Employer itself for enforcement of any and all benefits due under this Plan, and to the extent any such person acquires a right to receive payment under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Employer. The Employer or the Trust shall be designated the owner and beneficiary of any investment acquired in connection with its obligation under this Plan.

**8.2** **Deposits in Trust** 

Notwithstanding Section 8.1, or any other provision of this Plan to the contrary, the Employer may deposit into the Trust any amounts it deems appropriate to pay the benefits under this Plan. The amounts so deposited may include all contributions made pursuant to a Deferral Election by a Participant, any Employer Discretionary Contributions.

**8.3** **Withholding of Employee Contributions** 

The Administrator is authorized to make any and all necessary arrangements with the Employer in order to withhold the Participant's Deferrals under Section 3.1 hereof from his or her Compensation. The Administrator shall determine the amount and timing of such withholding.

**Article 9 Claims Administration** 

If the Participant, Beneficiary or his or her representative is denied all or a portion of an expected benefit for any reason and the Participant, Beneficiary or his or her representative desires to dispute the decision of the Administrator, he or she must file a written notification of his or her claim with the Administrator. The Plan, being established as a "top-hat plan" within the meaning of DOL Reg. §2520.104-23, requires all claims for benefits hereunder be made pursuant to those claims procedure requirements under DOL Reg. §2560.503-1, as amended from time to time. Participant, Beneficiary or his or her representative may file with the Administrator a written claim for benefits, if the Participant, beneficiary or his or her representative disputes the Administrator's determination regarding a benefit. The Administrator under this Article 9 will provide a separate written document to Participant, Beneficiary or his or her representative explaining the Plan's claims procedures and which by this reference is incorporated into the Plan. Such documentation shall be written in manner that is in a culturally and linguistically appropriate manner to the party receiving the documentation.

**Article 10 General Provisions** 

**10.1** **Administrator** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrator is expressly empowered to limit the amount of Compensation that may be deferred; to deposit amounts into the Trust in accordance with Section 8.2 hereof; to interpret the Plan, and to determine all questions arising in the administration, interpretation and application of the Plan; to employ actuaries, accountants, counsel, and other persons it deems necessary in connection with the

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administration of the Plan; to request any information from the Employer it deems necessary to determine whether the Employer would be considered insolvent or subject to a proceeding in bankruptcy; and to take all other necessary and proper actions to fulfill its duties as Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrator shall not be liable for any actions by it hereunder, unless due to its own negligence, willful misconduct or lack of good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrator shall be indemnified and saved harmless by the Employer from and against all personal liability to which it may be subject by reason of any act done or omitted to be done in its official capacity as Administrator in good faith in the administration of the Plan and Trust, including all expenses reasonably incurred in its defense in the event the Employer fails to provide such defense upon the request of the Administrator. The Administrator is relieved of all responsibility in connection with its duties hereunder to the fullest extent permitted by law, short of breach of duty to the beneficiaries.

**10.2** **No Assignment** 

Benefits or payments under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant or the Participant's beneficiary, whether voluntary or involuntary, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish the same shall not be valid, nor shall any such benefit or payment be in any way liable for or subject to the debts, contracts, liabilities, engagement or torts of any Participant or beneficiary, or any other person entitled to such benefit or payment pursuant to the terms of this Plan, except to such extent as may be required by law. If any Participant or beneficiary or any other person entitled to a benefit or payment pursuant to the terms of this Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish any benefit or payment under this Plan, in whole or in part, or if any attempt is made to subject any such benefit or payment, in whole or in part, to the debts, contracts, liabilities, engagements or torts of the Participant or beneficiary or any other person entitled to any such benefit or payment pursuant to the terms of this Plan, then such benefit or payment, in the discretion of the Administrator, shall cease and terminate with respect to such Participant or beneficiary, or any other such person.

**10.3** **No Employment Rights** 

Participation in this Plan shall not be construed to confer upon any Participant the legal right to be retained in the employ of the Employer, or give a Participant or beneficiary, or any other person, any right to any payment whatsoever, except to the extent of the benefits provided for hereunder. Each Participant shall remain subject to discharge to the same extent as if this Plan had never been adopted.

**10.4** **Incompetence** 

If the Administrator determines that any person to whom a benefit is payable under this Plan is incompetent by reason of physical or mental disability, the Administrator shall have the power to cause the payments becoming due to such person to be made to another for his or her benefit without responsibility of the Administrator or the Employer to see to the application of such payments. Any payment made pursuant to such power shall, as to such payment, operate as a complete discharge of the Employer, the Administrator and the Trustee.

**10.5** **Identity** 

If, at any time, any doubt exists as to the identity of any person entitled to any payment hereunder or the amount or time of such payment, the Administrator shall be entitled to hold such sum until such identity or amount or time is determined or until an order of a court of competent jurisdiction is obtained. The Administrator shall also be entitled to pay such sum into court in accordance with the appropriate rules of law. Any expenses incurred by the Employer, Administrator, and Trust incident to such proceeding or litigation shall be charged against the Account of the affected Participant.

**10.6** **Other Benefits** 

The benefits of each Participant or beneficiary hereunder shall be in addition to any benefits paid or payable to or on account of the Participant or beneficiary under any other pension, disability, annuity or retirement plan or policy whatsoever.

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**10.7** **Expenses** 

All expenses incurred in the administration of the Plan, whether incurred by the Employer or the Plan, shall be paid by the Employer.

**10.8** **Insolvency** 

Should the Employer be considered insolvent (as defined by the Trust), the Employer, through its Board and chief executive officer, shall give immediate written notice of such to the Administrator of the Plan and the Trustee. Upon receipt of such notice, the Administrator or Trustee shall cease to make any payments to Participants who were Employees of the Employer or their beneficiaries and shall hold any and all assets attributable to the Employer for the benefit of the general creditors of the Employer.

**10.9** **Amendment or Modification** 

The Employer may, at any time, in its sole discretion, amend or modify the Plan in whole or in part, except that no such amendment or modification shall have any retroactive effect to reduce any amounts allocated to a Participant's Accounts, and provided that such amendment or modification complies with Code Section 409A and related regulations thereunder.

**10.10** **Plan Suspension** 

The Employer further reserves the right to suspend the Plan in whole or in part, except that no such suspension shall have any retroactive effect to reduce any amounts allocated to a Participant's Accounts, and provided that the distribution of the vested Participant Accounts shall not be accelerated but shall be paid at such time and in such manner as determined under the terms of the Plan immediately prior to suspension as if the Plan had not been suspended.

**10.11** **Plan Termination** 

The Employer further reserves the right to terminate the Plan in whole or in part, in the following manner, except that no such termination shall have any retroactive effect to reduce any amounts allocated to a Participant's Accounts, and provided that such termination complies with Code Section 409A and related regulations thereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Employer, in its sole discretion, may terminate the Plan and distribute all vested Participants' Accounts no earlier than twelve (12) calendar months from the date of the Plan termination and no later than twenty-four (24) calendar months from the date of the Plan termination, provided however that all other similar arrangements are also terminated by the Employer for any affected Participant and no other similar arrangements are adopted by the Employer for any affected Participant within a three (3) year period from the date of termination; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Employer may decide, in its sole discretion, to terminate the Plan in the event of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court, provided that the Participants vested Account balances are distributed to Participants and are included in the Participants' gross income in the latest of: (i) the calendar year in which the termination occurs; (ii) the calendar year in which the amounts deferred are no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which payment is administratively practicable.

**10.12** **Plan Termination due to a Change-in-Control** 

The Employer may decide, in its discretion, to terminate the Plan in the event of a Change-in- Control and distribute all vested Participants Account balances no earlier than thirty (30) days prior to the Change-in-Control and no later than twelve (12) months after the effective date of the Change-in-Control, provided however that the Employer terminates all other similar arrangements for any affected Participant.

**10.13** **Construction** 

All questions of interpretation, construction or application arising under or concerning the terms of this Plan shall be decided by the Administrator, in its sole and final discretion, whose decision shall be final, binding and conclusive upon all persons.

**10.14** **Governing Law** 

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This Plan shall be governed by, construed and administered in accordance with the applicable provisions of ERISA, Code Section 409A, and any other applicable federal law, provided, however, that to the extent not preempted by federal law this Plan shall be governed by, construed and administered under the laws of the State of Massachusetts, other than its laws respecting choice of law.

**10.15** **Severability** 

If any provision of this Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of this Plan and this Plan shall be construed and enforced as if such provision had not been included therein. If the inclusion of any Employee (or Employees) as a Participant under this Plan would cause the Plan to fail to comply with the requirements of sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, then the Plan shall be severed with respect to such Employee or Employees, who shall be considered to be participating in a separate arrangement.

**10.16** **Headings** 

The Article headings contained herein are inserted only as a matter of convenience and for reference and in no way define, limit, enlarge or describe the scope or intent of this Plan nor in any way shall they affect this Plan or the construction of any provision thereof.

**10.17** **Terms** 

Capitalized terms shall have meanings as defined herein. Singular nouns shall be read as plural, masculine pronouns shall be read as feminine, and vice versa, as appropriate.

**10.18** **Code Section 409A Fail Safe Provision** 

If any provision of this Plan violates Code Section 409A, the regulations promulgated thereunder, regulatory interpretations, announcements or mandatory judicial precedent construing Code Section 409A (collectively "Applicable Law"), then such provision shall be void and have no effect. At all times, this Plan shall be interpreted in such manner that it complies with Applicable Law.

**10.19** **No Guarantee of Tax Consequences** 

While the Plan is intended to provide tax deferral for Participants, the Plan is not a guarantee that the intended tax deferral will be achieved. Participants are solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with this Plan (including any taxes arising under Section 409A of the Code). Neither the Employer nor any of its directors, officers or employees shall have any obligation to indemnify or otherwise hold any Participant harmless from any such taxes.

**10.20** **Limitation on Actions** 

Any Participant or Beneficiary who disagrees with a denial of his appealed claim under Article 9 of this Plan must file any complaint in a federal District Court to dispute such determination (a) within three (3) years of the earlier of the date on which such claim for benefits first accrued or arose under the terms of the Plan, or (b) within one (1) year after the such claim was denied upon appeal, or deemed denied under Article 9 hereof.

IN WITNESS WHEREOF, BayCoast Bank has caused this instrument to be executed by its duly authorized officer, effective as of this 7th day of August, 2019.

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| | |
|:---|:---|
|  BayCoast Bank | BayCoast Bank |
|  By: | ![LOGO](g122170g01a03.jpg) <br>|
|  Title: | Executive Vice President & Chief Operating Officer |

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## Exhibit 10.4

**Exhibit 10.4** 

**AMENDED AND RESTATED SUPPLEMENTAL EXECUTIVE** 

**RETIREMENT AGREEMENT** 

**THIS AGREEMENT**, made and entered into this 15th day of October, 2008, by and between Citizens-Union Savings Bank, a bank organized and existing under the laws of the Commonwealth of Massachusetts (hereinafter referred to as the "Bank"), and Nicholas M. Christ, an Executive of the Bank (hereinafter referred to as the "Executive"), a member of a select group of management and highly compensated employees of the Bank, shall amend and restate the Supplemental Executive Retirement Plan dated as of the first day of February, 1989, and all subsequent Amendments pertaining thereto,

**WHEREAS**, the Executive has been and continues to be a valued Executive of the Bank;

**WHEREAS**, the purpose of this Agreement is to further the growth and development of the Bank by providing the Executive with supplemental retirement income, and thereby encourage the Executive's productive efforts on behalf of the Bank and the Bank's depositors, and to align the interests of the Executive and those depositors.

**WHEREAS**, it is the desire of the Bank and the Executive to enter into this Agreement under which the Bank will agree to make certain payments to the Executive at retirement or the Executive's Beneficiary in the event of the Executive's death pursuant to this Agreement;

**ACCORDINGLY**, it is intended that the Agreement be "unfunded" for purposes of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and not be construed to provide income to the participant or beneficiary under the Internal Revenue Code of 1986, as amended (the "Code"), particularly Section 409A of the Code and guidance or regulations issued thereunder, prior to actual receipt of benefits; and

**THEREFORE**, it is agreed as follows:

**I.** **EFFECTIVE DATE** 

The Effective Date of this Agreement shall be February 1, 1989.

**II.** **FRINGE BENEFITS** 

The salary continuation benefits provided by this Agreement are granted by the Bank as a fringe benefit to the Executive and are not part of any salary reduction plan or an arrangement deferring a bonus or a salary increase. The Executive has no option to take any current payment or bonus in lieu of these salary continuation benefits except as set forth hereinafter.

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**III.** **DEFINITIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Actuarial Equivalent</u>:

Actuarial equivalence shall be determined using an interest rate not to exceed six percent (6%) and the UP-1984 Unisex Mortality Tables. In no event may the Bank accelerate any payment of benefits to the Executive or his Beneficiary(ies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Average Compensation</u>:

For purposes of this Agreement, "Average Compensation" shall mean the total compensation paid to the Executive by the Bank, determined prior to any reductions for pre-tax contributions to a cash or deferred arrangement or a cafeteria plan, as shown on his W-2 or comparable federal tax form, for the three (3) calendar years (whether or not consecutive) in which his total compensation was the highest, divided by thirty-six (36).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Beneficiary</u>:

The Executive shall have the right to name a primary and secondary Beneficiary of the Death Benefit. The Executive shall have the right to name such primary and secondary Beneficiary at any time prior to the Executive's death and submit it to the Plan Administrator (or Plan Administrator's representative) on the form provided. Once received and acknowledged by the Plan Administrator, the form shall be effective. The Executive may change a primary and secondary Beneficiary designation at any time by submitting a new form to the Plan Administrator. Any such change shall follow the same rules as for the original Beneficiary designation and shall automatically supersede the existing Beneficiary form on file with the Plan Administrator.

If the Executive dies without a valid Beneficiary designation on file with the Plan Administrator, death benefits shall be paid to the Executive's estate.

If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of that person's property, the Plan Administrator may direct distribution of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any distribution of a benefit shall be a distribution for the account of the Executive and the Beneficiary, as the case may be, and shall be a complete discharge of any

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liability under the Agreement for such distribution amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Change in Control</u>:

"Change in Control" shall mean a change in ownership or control of the Bank as defined in Treasury Regulation Section 1.409A-3(i)(5) or any subsequently applicable Treasury Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Disability or Disabled</u>:

"Disability or Disabled" shall mean the Executive: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Bank. Medical determination of Disability may be made by either the Social Security Administration or by the provider of an accident or health plan covering Executives of the Bank, provided that the definition of Disability applied under such Disability insurance programs complies with the requirements of Section 409A. Upon the request of the Plan Administrator, the Executive must submit proof to the Plan Administrator of Social Security Administration's or the provider's determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Discharge For Cause</u>:

The term "For Cause" shall mean any of the following that result in an adverse effect on the Bank: (i) the commission of a felony or gross misdemeanor involving fraud or dishonesty; (ii) the willful violation of any banking law, rule, or banking regulation (other than a traffic violation or similar offense); (iii) an intentional failure to perform stated duties; or (iv) a breach of fiduciary duty involving personal profit. If a dispute arises as to discharge "For Cause," such dispute shall be resolved by arbitration as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Normal Retirement Age</u>:

"Normal Retirement Age" shall mean the date on which the Executive attains age sixty-five (65).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Plan Year</u>:

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Any reference to "Plan Year" shall mean a calendar year from January 1<sup>st</sup> to December 31<sup>st</sup>. In the year of implementation, the term "Plan Year" shall mean the period from the Effective Date to December 31<sup>st</sup> of the year of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>Restriction on Timing of Distribution</u>:

Notwithstanding any provision of this Agreement to the contrary, distributions to the Executive may not commence earlier than six (6) months after the date of a Separation from Service, as that term is used under Section 409A if, pursuant to Internal Revenue Code Section 409A, the Executive is considered a "specified employee" under Internal Revenue Code Section 416(i), of the Bank if any stock of the Bank is publicly traded on an established securities market or otherwise. In the event a distribution is delayed pursuant to this paragraph, the originally scheduled payment shall be delayed for six (6) months, and shall commence instead on the first day of the seventh month following Separation from Service. If payments are scheduled to be made in installments, the first six (6) months of installment payments shall be delayed, aggregated, and paid instead on the first day of the seventh month, after which all installment payments shall be made on their regular schedule. If payment is scheduled to be made in a lump sum, the lump payment shall be delayed for six (6) months and instead be made on the first day of the seventh month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. <u>Retirement Date</u>:

"Retirement Date" shall mean the later of the Executive's sixty-fifth (65<sup>th</sup>) birthday or Separation from Service. In any event, the Executive must Separate from Service no later than the 1<sup>st</sup> day of the February following his seventieth (70<sup>th</sup>) birthday.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. <u>Separation from Service</u>:

"Separation from Service" shall mean the Executive has experienced a termination of employment with the Bank. For purposes of this Agreement, whether a termination of employment or service has occurred is determined based on whether the facts and circumstances indicate that the Bank and Executive reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Executive would perform after such date (whether as an Executive or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an Executive or an independent contractor) over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the Executive has been

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providing services to the Bank less than 36 months). Facts and circumstances to be considered in making this determination include, but are not limited to, whether the Executive continues to be treated as an Executive for other purposes (such as continuation of salary and participation in Executive benefit programs), whether similarly situated service providers have been treated consistently, and whether the Executive is permitted, and realistically available, to perform services for other service recipients in the same line of business. An Executive will be presumed not to have separated from service where the level of bona fide services performed continues at a level that is fifty percent (50%) or more of the average level of service performed by the Executive during the immediately preceding thirty-six (36) month period.

**IV.** **RETIREMENT BENEFIT** 

Upon attainment of the Retirement Date, the Bank shall pay the Executive an annual benefit equal to seventy percent (70%) of the Average Compensation paid to the Executive offset by the SBERA Benefit, where the SBERA Benefit is equal to the Executive's annual single life annuity payable to or on behalf of the Executive from the Savings Bank's Employees' Retirement Association Pension Plan as Adopted by Citizen's Bank ("the SBERA Plan") as of the Retirement

Date, adjusted using the actuarial assumptions as most recently effective under the SBERA Plan at the Retirement Date to reflect payments on the basis of an annuity payable in full for the life of the Executive or his spouse but in any event for at least fifteen (15) years. In the event the Executive is not married at the Retirement Date, the adjustment noted above will be made to reflect payments for the life of the Executive with a fifteen (15) year certain period. Said benefit shall be paid in monthly installments (1/12<sup>th</sup> of the annual benefit) until the death of the Executive. Said payment shall be made the first day of the month following the date of the Executive's Separation from Service.

**V.** **DEATH BENEFIT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Pre-Retirement Death Benefit</u>:

In the event the Executive should die while actively employed by the Bank at any time after the Effective Date of this Agreement but prior to the Executive's Separation from Service, the Bank will pay Margaret S. Christ (the Executive's Spouse), an annual benefit equal to seventy percent (70%) of the Average Compensation paid to the Executive offset by the actual monthly benefit paid to the Executive from the Savings Bank's Employee's Retirement Association Pension Plan ("the SBERA Plan") in the form of a single-life annuity, each and every month for her life commencing upon the first day of the first month following the date of the death of the Executive. In the event the Executive's Spouse should predecease him or die prior to receipt of one hundred eighty (180) monthly

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payments, such monthly payments shall continue until a total of one hundred eighty (180) monthly payments have been made in accordance with Subparagraph V (C) hereinbelow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Post-Retirement Death Benefit</u>:

Upon the death of the Executive, the Executive's Spouse shall be entitled to receive the monthly benefit described in Subparagraph V (A) above each and every month for her lifetime commencing upon the first day of the month following the death of the Executive. In the event both the Executive and his spouse should die prior to receipt by them, in the aggregate, of one hundred eighty (180) monthly payments, such monthly payments shall be continued until a total of one hundred eighty (180) monthly payments have been made in accordance with Subparagraph V (C) hereinbelow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Secondary Beneficiary Benefit</u>:

In the event monthly payments are to be continued after the death of both the Executive and his spouse pursuant to Subparagraphs V (A) and (B) hereinabove, such continuation payments shall be made to such Beneficiary as the last to die of the Executive and his spouse (the "Last to Die") shall be designated by filing with the Bank a notice of such designation in writing. In the absence of any such designation by the Last to Die, such unpaid amounts shall be paid in a single lump sum to the estate of the last to die. For purposes of this Subparagraph V (C), if both the Executive and his spouse should die simultaneously, then the Executive shall be deemed to be the "Last to Die."

**VI.** **BENEFIT ACCOUNTING/** 

**ACCRUED LIABILITY RETIREMENT ACCOUNT** 

The Bank shall account for this benefit using the regulatory accounting principles of the Bank's primary federal regulator. The Bank shall establish an Accrued Liability Retirement Account for the Executive into which appropriate reserves shall be accrued.

**VII.** **VESTING** 

The Executive shall be one hundred percent (100%) vested in the Accrued Liability Retirement Account.

**VIII.** **TERMINATION OF EMPLOYMENT** 

Subject to Paragraph XI, in the event that the employment of the Executive shall terminate prior to the Normal Retirement Age, by the Executive's voluntary

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action, or by the Executive's discharge by the Bank without cause, the Bank shall pay to the Executive an amount of money equal to the balance of the Executive's Accrued Liability Retirement Account on the date of Separation from Service. Said balance shall be paid in one (1) lump sum thirty (30) days following Separation from Service. In the event the Executive's death should occur after such termination but prior to the payment provided for in this paragraph, the balance shall be paid, in one (1) lump sum to the Beneficiary. Said balance shall be paid within sixty (60) days of the Executive's death.

**IX.** **DISABILITY OR DISABLED** 

In the event that there is a finding of any qualified period of Disability for the Executive, the Bank will pay the Executive a reduced benefit. This reduced benefit shall be calculated by accruing interest on the existing liability balance (at the time of disability) for the benefit of the Executive at seven percent (7%) until Normal Retirement Age. At Normal Retirement Age the Bank shall pay out the liability balance (plus interest that will be accrued at seven percent (7%) after Normal Retirement Age) in fourteen (14) equal annual installments.

If the Executive is under a period of Disability on the date the Executive reaches Normal Retirement Age, this Agreement shall automatically terminate and the Executive shall not be entitled to any further benefits under this Agreement.

If the period of Disability ends prior to Normal Retirement Age and the Executive returns to active employment with the Bank, the Bank will pay the Executive a reduced Retirement Benefit amount. The Retirement Benefit amount shall be reduced by the fourteen (14) year annual annuity that would be payable at Normal Retirement Age from the Trust assuming the trust assets earned a net rate of four percent (4%) annually starting from the date of the existence of said trust

**X.** **CHANGE IN CONTROL** 

Upon a Change in Control, the Executive shall become one hundred percent (100%) vested in the Retirement Benefit. The Executive shall receive the Retirement Benefit as if the Executive had been continuously employed by the Bank until the Executive's Normal Retirement Age. Such benefit shall be paid in accordance with Paragraph IV, commencing on the first day of the month following the Executive's Normal Retirement Age.

**XI.** **DISCHARGE FOR CAUSE** 

Notwithstanding anything to the contrary, in the event the Executive shall be Discharged For Cause at any time, this Agreement shall terminate and all benefits provided herein shall be forfeited.

**XII.** **RESTRICTIONS ON FUNDING** 

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The Bank shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Agreement. The Executive, their beneficiary(ies), or any successor in interest shall be and remain simply a general creditor of the Bank in the same manner as any other creditor having a general claim for matured and unpaid compensation.

The Bank reserves the absolute right, at its sole discretion, to either fund the obligations undertaken by this Agreement or to refrain from funding the same and to determine the extent, nature and method of such funding. Should the Bank elect to fund this Agreement, in whole or in part, through the purchase of life insurance, mutual funds, disability policies or annuities, the Bank reserves the absolute right, in its sole discretion, to terminate such funding at any time, in whole or in part. At no time shall any Executive be deemed to have any lien, right, title or interest in any specific funding investment or assets of the Bank.

If the Bank elects to invest in a life insurance, disability or annuity policy on the life of the Executive, then the Executive shall assist the Bank by freely submitting to a physical exam and supplying such additional information necessary to obtain such insurance or annuities.

**XIII.** **MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Alienability and Assignment Prohibition</u>:

Neither the Executive nor any Beneficiary under this Agreement shall have any power or right to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any of the benefits payable hereunder nor shall any of said benefits be subject to seizure for the payment of any debts, judgments, alimony or separate maintenance owed by the Executive or the Executive's Beneficiary, nor be transferable by operation of law in the event of bankruptcy, insolvency or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Amendment or Revocation</u>:

Subject to Paragraph XV, it is agreed by and between the parties hereto that, during the lifetime of the Executive, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Executive and the Bank. Any such amendment shall not be effective to decrease or restrict any Executive's accrued benefit under this Agreement, determined as of the date of amendment, unless agreed to in writing by the Executive, and provided further, no amendment shall be made, or if made, shall be effective, if such amendment would cause the Agreement to violate Internal Revenue Code Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Applicable Law</u>:

The validity and interpretation of this Agreement shall be governed by the laws of the State where the principal corporate office of the Bank is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Binding Obligation of the Bank and any Successor in Interest</u>:

The Bank shall not merge or consolidate into or with another bank or sell substantially all of its assets to another bank, firm or person until such bank, firm or person expressly agree, in writing, to assume and discharge the duties and obligations of the Bank under this Agreement. This Agreement shall be binding upon the parties hereto, their successors, beneficiaries, heirs and personal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Gender</u>:

Whenever in this Agreement words are used in the masculine or neutral gender, they shall be read and construed as in the masculine, feminine or neutral gender, whenever they should so apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Headings</u>:

Headings and subheadings in this Agreement are inserted for reference and convenience only and shall not be deemed a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Non-Compete</u>:

Hereafter, either during his full-time employment or while he is receiving any benefits under this Agreement, the Executive agrees that he will not enter into competition with the Bank, directly, or indirectly, within the City of Fall River or a thirty (30) mile radius thereof, which is engaged in a business similar to that carried on by the Bank, or which in the exclusive opinion of the Board of Directors of the Bank, is in competition with the Bank. The judgment of a majority of the Board of Directors that such competition exists shall be conclusive for the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Not a Contract of Employment</u>:

This Agreement shall not be deemed to constitute a contract of employment between the parties hereto, nor shall any provision hereof restrict the right of the Bank to discharge the Executive, or restrict the right of the Executive to terminate employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>Opportunity to Consult with Independent Advisors</u>:

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The Executive acknowledges that he has been afforded the opportunity to consult with independent advisors of his choosing including, without limitation, accountants or tax advisors and counsel regarding both the benefits granted to him under the terms of this Agreement and the: (i) terms and conditions which may affect the Executive's right to these benefits; and (ii) personal tax effects of such benefits including, without limitation, the effects of any federal or state taxes, Section 280G of the Code, Section 409A of the Code and guidance or regulations thereunder, and any other taxes, costs, expenses or liabilities whatsoever related to such benefits, which in any of the foregoing instances the Executive acknowledges and agrees shall be the sole responsibility of the Executive notwithstanding any other term or provision of this Agreement. The Executive further acknowledges and agrees that the Bank shall have no liability whatsoever related to any such personal tax effects or other personal costs, expenses, or liabilities applicable to the Executive and further specifically waives any right for himself or herself, and his or her heirs, beneficiaries, legal representative, agents, successor and assign to claim or assert liability on the part of the Bank related to the matters described above in this paragraph. The Executive further acknowledges that he has read, understands and consents to all of the terms and conditions of this Agreement, and that he enters into this Agreement with a full understanding of its terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. <u>Partial Invalidity</u>:

If any term, provision, covenant, or condition of this Agreement is determined by an arbitrator or a court, as the case may be, to be invalid, void, or unenforceable, such determination shall not render any other term, provision, covenant, or condition invalid, void, or unenforceable, and the Agreement shall remain in full force and effect notwithstanding such partial invalidity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. <u>Permissible Acceleration Provision</u>:

Under Treasury Regulation Section 1.409A-3(j)(4), a payment of deferred compensation may not be accelerated except as provided in regulations by the Internal Revenue Code. This Agreement allows all permissible payment accelerations under 1.409A-3(j)(4) that include but are not limited to payments necessary to comply with a domestic relations order, payments necessary to comply with certain conflict of interest rules, payments intended to pay employment taxes, and other permissible payments are allowed as permitted by statute or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. <u>Subsequent Changes to Time and Form of Payment</u>:

The Bank may permit subsequent changes to the time and form of

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payment. Any such change shall be considered made only when it becomes irrevocable under the terms of the Agreement. Any subsequent time and form of payment changes will be considered irrevocable not later than thirty (30) days following acceptance of the change by the Plan Administrator, subject to the following rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the subsequent change may not take effect until at least twelve (12) months after the date on which the
change is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the payment (except in the case of death, disability, or unforeseeable emergency) upon which the change is
made is deferred for a period of not less than five (5) years from the date such payment would otherwise have been paid; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. in the case of a payment made at a specified time, the change must be made not less than twelve (12)
months before the date the payment is scheduled to be paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. <u>Tax Withholding</u>:

The Bank shall withhold any taxes that are required to be withheld from the benefits provided under this Agreement. The Executive acknowledges that the Bank's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N. <u>Violation of Non-Compete</u>:

In the event that the Executive should violate the provisions of Subparagraph XIII (G) hereof, and should he continue to do so without adequate cause for a period of thirty (30) days after the Bank shall have requested him in writing to refrain from an action prohibited by said Subparagraph XIII (G), the Executive agrees that no further payments shall be due him, his spouse, or any other designated beneficiary(ies) under this Agreement and that the Bank shall have no further obligation whatsoever hereunder. The judgment of a majority of the Board of Directors of the Bank as to the validity of any claim of "adequate cause" put forward as an excuse for violation shall be conclusive.

**XIV.** **ADMINISTRATIVE AND CLAIMS PROVISIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Plan Administrator</u>:

The "Plan Administrator" of this Agreement shall be Citizens-Union Savings Bank. As Plan Administrator, the Bank shall be responsible for the management, control and administration of the Agreement. The Plan Administrator may delegate to others certain aspects of the management

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and operation responsibilities of the Agreement including the employment of advisors and the delegation of ministerial duties to qualified individuals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Claims Procedure</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Filing a Claim for Benefits</u>:

Any insured, Beneficiary, or other individual, ("Claimant") entitled to benefits under this Agreement will file a claim request with the Plan Administrator. The Plan Administrator will, upon written request of a Claimant, make available copies of all forms and instructions necessary to file a claim for benefits or advise the Claimant where such forms and instructions may be obtained. If the claim relates to disability benefits, then the Plan Administrator shall designate a sub-committee to conduct the initial review of the claim (and applicable references below to the Plan Administrator shall mean such sub-committee).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Denial of Claim</u>:

A claim for benefits under this Agreement will be denied if the Bank determines that the Claimant is not entitled to receive benefits under the Agreement. Notice of a denial shall be furnished the Claimant within a reasonable period of time after receipt of the claim for benefits by the Plan Administrator. This time period shall not exceed more than ninety (90) days after the receipt of the properly submitted claim. In the event that the claim for benefits pertains to disability, the Plan Administrator shall provide written notice within forty-five (45) days. However, if the Plan Administrator determines, in its discretion, that an extension of time for processing the claim is required, such extension shall not exceed an additional ninety (90) days. In the case of a claim for disability benefits, the forty-five (45) day review period may be extended for up to thirty (30) days if necessary due to circumstances beyond the Plan Administrator's control, and for an additional thirty (30) days, if necessary. Any extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to render the determination on review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Content of Notice</u>:

The Plan Administrator shall provide written notice to every Claimant who is denied a claim for benefits which notice shall set forth the following:

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(i.) The specific reason or reasons for the denial;

(ii.) Specific reference to pertinent Agreement provisions on which the denial is based;

(iii.) A description of any additional material or information necessary for the Claimant to perfect the claim, and any explanation of why such material or information is necessary; and

(iv.) Any other information required by applicable regulations, including with respect to disability benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Review Procedure</u>:

The purpose of the Review Procedure is to provide a method by which a Claimant may have a reasonable opportunity to appeal a denial of a claim to the Plan Administrator for a full and fair review. The Claimant, or his duly authorized representative, may:

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| | |
|:---|:---|
| (i.) | Request a review upon written application to the Plan Administrator. Application for review must be made within sixty (60) days of receipt of written notice of denial of claim. If the denial of claim pertains to disability, application for review must be made within one hundred eighty (180) days of receipt of written notice of the denial of claim;  |

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(ii.) Review and copy (free of charge) pertinent Agreement documents, records and other information relevant to the Claimant's claim for benefits;

(iii.) Submit issues and concerns in writing, as well as documents, records, and other information relating to the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Decision on Review</u>:

A decision on review of a denied claim shall be made in the following manner:

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| | |
|:---|:---|
| (i.) | The Plan Administrator may, in its sole discretion, hold a hearing on the denied claim. If the Claimant's initial claim is for disability benefits, any review of a denied claim shall be made by members of the Plan Administrator other than the original decision maker(s) and such person(s) shall not  |

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be a subordinate of the original decision maker(s). The decision on review shall be made promptly, but generally not later than sixty (60) days after receipt of the application for review. In the event that the denied claim pertains to disability, such decision shall not be made later than forty-five (45) days after receipt of the application for review. If the Plan Administrator determines that an extension of time for processing is required, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial sixty (60) day period. In no event shall the extension exceed a period of sixty (60) days from the end of the initial period. In the event the denied claim pertains to disability, written notice of such extension shall be furnished to the Claimant prior to the termination of the initial forty-five (45) day period. In no event shall the extension exceed a period of thirty (30) days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to render the determination on review. <br>

(ii.) The decision on review shall be in writing and shall include specific reasons for the decision written in an understandable manner with specific references to the pertinent Agreement provisions upon which the decision is based.

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| | |
|:---|:---|
| (iii.) | The review will take into account all comments, documents, records and other information submitted by the Claimant relating to the claim without regard to whether such information was submitted or considered in the initial benefit determination. Additional considerations shall be required in the case of a claim for disability benefits. For example, the claim will be reviewed without deference to the initial adverse benefits determination and, if the initial adverse benefit determination was based in whole or in part on a medical judgment, the Plan Administrator will consult with a health care professional with appropriate training and experience in the field of medicine involving the medical judgment. The health care professional who is consulted on appeal will not be the same individual who was consulted during the initial determination or the subordinate of such individual. If the Plan Administrator obtained the advice of medical or vocational experts in making the initial adverse benefits determination (regardless of whether the advice was relied upon), the Plan  |

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Administrator will identify such experts.

(iv.) The decision on review will include a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records or other information relevant to the Claimant's claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Exhaustion of Remedies</u>:

A Claimant must follow the claims review procedures under this Agreement and exhaust his or her administrative remedies before taking any further action with respect to a claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Arbitration</u>:

If claimants continue to dispute the benefit denial based upon completed performance of this Agreement or the meaning and effect of the terms and conditions thereof, then claimants may submit the dispute to an Arbitrator for final arbitration. The Arbitrator shall be selected by mutual agreement of the Bank and the claimants. The Arbitrator shall operate under any generally recognized set of arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such Arbitrator with respect to any controversy properly submitted to it for determination.

Where a dispute arises as to the Bank's discharge of the Executive "for cause," such dispute shall likewise be submitted to arbitration as above described and the parties hereto agree to be bound by the decision thereunder.

**XV.** **TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS** 

The Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules and regulations will continue in effect in their current form. If any said assumptions should change and said change has a detrimental effect on this Agreement, then the Bank reserves the right to terminate or modify this Agreement accordingly. Any such termination or modification shall not be effective to decrease or restrict the Executive's Accrued Liability Retirement Account under this Agreement, determined as of the date of amendment, unless agreed to in writing by the Executive, and provided further, no amendment shall be made, or if made, shall be effective, if such termination or modification would cause the Agreement to violate Internal Revenue Code Section 409A. Upon a Change in Control, this paragraph shall become null and void effective immediately upon said Change in Control.

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**IN WITNESS WHEREOF**, the parties hereto acknowledge that each has carefully read this Agreement and executed the original thereof on the first day set forth hereinabove, and that, upon execution, each has received a conforming copy.

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| | | |
|:---|:---|:---|
|  | CITIZENS-UNION SAVINGS BANK | CITIZENS-UNION SAVINGS BANK |
|  | Fall River, MA | Fall River, MA |
| ![LOGO](g122170dsp030a.jpg) <br>| By: | ![LOGO](g122170dsp030c.jpg) <br>|
| Witness | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Bank Officer other than Executive) Title | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Bank Officer other than Executive) Title |
| ![LOGO](g122170dsp030b.jpg) <br>| ![LOGO](g122170dsp030d.jpg)  | ![LOGO](g122170dsp030d.jpg)  |
| Witness | Nicholas M. Christ | Nicholas M. Christ |

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FIRST AMENDMENT TO

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

The Amended and Restated Supplemental Executive Retirement Agreement (the "Agreement") dated as of the fifteen day of October, 2008 between BayCoast Bank, f/k/a Citizens-Union Savings Bank, a bank in the Commonwealth of Massachusetts, with its principal place of business in Swansea, Massachusetts (the "Bank"), and Nicholas M. Christ of Westport, Massachusetts (the "Executive"), as amended, is hereby further amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Section III Definitions, Paragraph J of the Agreement is hereby amended by replacing the
entire paragraph with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. <u>Retirement Date:</u> 

"Retirement Date" shall mean the later of the Executive's sixty-fifth (65<sup>th</sup>) birthday or Separation from Service.

IN WITNESS WHEREOF, the parties have executed this Amendment this 12<sup>th</sup> day of May, 2020.

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| | | |
|:---|:---|:---|
| | BAYCOAST BANK | BAYCOAST BANK |
| ![LOGO](g122170dsp032a.jpg)  | By: | ![LOGO](g122170dsp032b.jpg) <br>|
| John Friar II |  | Richard Gunther |
| Clerk |  | Chairman of Executive Committee |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g122170dsp032c.jpg) <br>|
|  |  | Nicholas M. Christ |

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## Exhibit 10.5

**Exhibit 10.5** 

**EXECUTIVE SALARY CONTINUATION AGREEMENT** 

**THIS AGREEMENT,** made and entered into this 20<sup>th</sup> day of <u>Au</u><u>gust</u> 2007, by and between Citizens-Union Savings Bank, a bank organized and existing under the laws of the Commonwealth of Massachusetts (hereinafter referred to as the "Bank"), and Carl Taber, an Executive of the Bank (hereinafter referred to as the "Executive").

**WHEREAS,** the Executive has been and continues to be a valued Executive of the Bank, and is now serving the Bank;

**WHEREAS,** it is the consensus of the Executive Committee that the Executive's employment with the Bank in the past has been of exceptional merit and has constituted an invaluable contribution to the general welfare of the Bank in bringing the Bank to its present status of operating efficiency and present position in its field of activity;

**WHEREAS,** the Executive's experience, knowledge of the affairs of the Bank, reputation, and contacts in the industry are so valuable that assurance of the Executive's continued employment is essential for the future growth and profits of the Bank and it is in the best interest of the Bank to arrange terms of continued employment for the Executive so as to reasonably assure the Executive remains in the Bank's employ during the Executive's lifetime or until the age of retirement;

**WHEREAS,** it is the desire of the Bank that the Executive's employment be retained as herein provided;

**WHEREAS,** the Executive is willing to continue in the employ of the Bank provided the Bank agrees to pay the Executive or the Executive's beneficiary(ies), certain benefits in accordance with the terms and conditions hereinafter set forth;

**ACCORDINGLY,** it is the desire of the Bank and the Executive to enter into this Agreement under which the Bank will agree to make certain payments to the Executive at retirement or the Executive's beneficiary(ies) in the event of the Executive's death pursuant to this Agreement;

**FURTHERMORE,** it is the intent of the parties hereto that this Agreement be considered an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the Executive, and be considered a non-qualified benefit plan for purposes of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The Executive is fully advised of the Bank's financial status and has had substantial input in the design and operation of this benefit plan; and

**THEREFORE,** in consideration of past employment performance and employment to be performed in the future as well as the mutual promises and covenants herein contained it is agreed as follows:

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**I.** **EFFECTIVE DATE** 

The Effective Date of this Agreement shall be January 1, 2006.

**II.** **EMPLOYMENT** 

The Bank agrees to employ the Executive in such capacity as the Bank may from time to time determine. The Executive will continue in the employ of the Bank in such capacity and with such duties and responsibilities as may be assigned to him, and with such compensation as may be determined from time to time by the Executive Committee of the Bank.

**III.** **FRINGE BENEFITS** 

The salary continuation benefits provided by this Agreement are granted by the Bank as a fringe benefit to the Executive and are not part of any salary reduction plan or an arrangement deferring a bonus or a salary increase. The Executive has no option to take any current payment or bonus in lieu of these salary continuation benefits except as set forth hereinafter.

**IV.** **DEFINITIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Retirement Date:</u> 

If the Executive remains in the continuous employ of the Bank, the Executive shall retire from active employment with the Bank on the later of the Executive's sixty-fifth (65th) birthday or Separation from Service as defined in Subparagraph IV (H) hereinbelow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Normal Retirement Age:</u> 

Normal Retirement Age shall mean the date on which the Executive attains age sixty-five (65).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Plan Year</u>:

Any reference to "Plan Year" shall mean a calendar year from January 1<sup>st</sup> to December 31<sup>st</sup>. In the year of implementation, the term "Plan Year" shall mean the period from the effective date to December 31<sup>st</sup> of the year of the effective date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Termination of Employment</u>:

Termination of Employment shall mean voluntary resignation of employment by the Executive or the Bank's discharge of the Executive without cause (Subparagraph IV [E]), prior to the Normal Retirement Age

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(Subparagraph IV [B]).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Discharge for Cause</u>:

The term "for cause" shall mean any of the following that result in an adverse effect on the Bank: (i) gross negligence or gross neglect; (ii) the commission of a felony or gross misdemeanor involving fraud or dishonesty; (iii) the willful violation of any law, rule, or regulation (other than a traffic violation or similar offense); (iv) an intentional failure to perform stated duties; or (v) a breach of fiduciary duty involving personal profit. If a dispute arises as to discharge "for cause," such dispute shall be resolved by arbitration as set forth in this Agreement. In the alternative, if the Executive is permitted to resign due to inappropriate conduct as defined above, the Executive Committee may vote to deny all benefits. A majority decision by the Executive Committee is required for forfeiture of the Executive's benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Mutual to Stock Conversion or a Change of Control</u>:

"Mutual to Stock Conversion or Change of Control" shall mean a change in ownership or control of the Bank as defined in Treasury Regulation Section 1.409A-3(g)(5) or any subsequently applicable Treasury Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Restriction on Timing of Distribution</u>:

Notwithstanding any provision of this Agreement to the contrary, distributions to the Executive may not commence earlier than six (6) months after the date of a Separation from Service, as that term is used under Section 409A if, pursuant to Internal Revenue Code Section 409A, the Executive is considered a "specified employee" under Internal Revenue Code Section 416(i), of the Bank if any stock of the Bank is publicly traded on an established securities market or otherwise. In the event a distribution is delayed pursuant to this paragraph, the originally scheduled payment shall be delayed for six (6) months, and shall commence instead on the first day of the seventh month following Separation from Service. If payments are scheduled to be made in installments, the first six (6) months of installment payments shall be delayed, aggregated, and paid instead on the first day of the seventh month, after which all installment payments shall be made on their regular schedule. If payment is scheduled to be made in a lump sum, the lump payment shall be delayed for six (6) months and instead be made on the first day of the seventh month.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Separation from Service</u>:

"Separation from Service" shall mean that the Executive has experienced a Termination of Employment from the Bank. Where the Executive continues to perform services for the Bank following a Termination of Employment, however, and the facts and circumstances indicate that such services are intended by the Bank and the Executive to be more than "insignificant" services, a Separation from Service will not be deemed to have occurred and any amounts deferred under this Agreement may not be paid or made available to the Executive. The determination of whether such services are considered "insignificant" will be based upon all facts and circumstances relating to the termination and upon any applicable rules and regulations issued under Section 409A of the Code. Military leave, sick leave, or other bona fide leaves of absence are not generally considered terminations of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>Beneficiary</u>:

The Executive shall have the right to name a Beneficiary of the Death Benefit. The Executive shall have the right to name such Beneficiary at any time prior to the Executive's death and submit it to the Plan Administrator (or Plan Administrator's representative) on the form provided. Once received and acknowledged by the Plan Administrator, the form shall be effective. The Executive may change a Beneficiary designation at any time by submitting a new form to the Plan Administrator. Any such change shall follow the same rules as for the original Beneficiary designation and shall automatically supersede the existing Beneficiary form on file with the Plan Administrator.

If the Executive dies without a valid Beneficiary designation on file with the Plan Administrator, death benefits shall be paid to the Executive's estate.

If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of that person's property, the Plan Administrator may direct distribution of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any distribution of a benefit shall be a distribution for the account of the Executive and the Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such distribution amount.

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**V.** **RETIREMENT BENEFIT AND POST-RETIREMENT DEATH BENEFIT** 

The Bank, commencing with the first day of the second month following the Retirement Date (Subparagraph IV [A]), shall pay the Executive an annual benefit equal to Twenty-Five Thousand and 00/100<sup>th</sup> Dollars ($25,000.00). Said benefit shall be paid in fifteen (15) annual installments or in accordance with Restriction on Timing of Distribution as defined in Subparagraph IV (G) hereinabove. Upon the death of the Executive, if there is a balance in the accrued liability retirement account, such balance shall be paid in one (1) lump sum to the individual or individuals the Executive may have designated in writing and filed with the Bank. In the absence of any effective beneficiary designation, any such amount becoming due and payable upon the death of the Executive shall be payable to the duly qualified executor or administrator of the Executive's estate. Said payment due hereunder shall be made the first day of the second month following the decease of the Executive.

**VI.** **DEATH BENEFIT PRIOR TO RETIREMENT** 

In the event the Executive should die while actively employed by the Bank at any time after the date of this Agreement but prior to the Executive attaining the age of sixty-five (65) years (or such later date as may be agreed upon), the Bank will pay the accrued balance on the date of death, of the Executive's accrued liability retirement account in one (1) lump sum, the first day of the second month following the Executive's death, to such individual or individuals as the Executive may have designated in writing and filed with the Bank, at which time this Agreement shall terminate. In the absence of any effective beneficiary designation, any such amount becoming due and payable upon the death of the Executive shall be payable to the duly qualified executor or administrator of the Executive's estate. Said payment due hereunder shall be made by the first day of the second month following the decease of the Executive.

**VII.** **BENEFIT ACCOUNTING/ACCRUED LIABILITY RETIREMENT ACCOUNT** 

The Bank shall account for this benefit using the regulatory accounting principles of the Bank's primary federal regulator. The Bank shall establish an accrued liability retirement account for the Executive into which appropriate reserves shall be accrued.

**VIII.** **VESTING** 

The Executive shall be vested in the accrued liability retirement account in accordance with the following schedule from the Effective Date of this Agreement to a maximum of one hundred percent (100%).

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| | |
|:---|:---|
|  *Number of years*<br> *<u>Employed with the Bank</u>* | *<u>Vesting (to a maximum o f 100%)</u>* |
|  *Year 1 and under* | *0%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2* | *20%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *3* | *40%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *4* | *60%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *5* | *80%* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *6* | *100%* |

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**IX.** **TERMINATION OF EMPLOYMENT** 

Subject to Subparagraph IV (E), in the event that the employment of the Executive shall terminate prior to Normal Retirement Age, as provided in Subparagraph IV (B), by the Executive's voluntary action, or by the Executive's discharge by the Bank without cause, then this Agreement shall terminate upon the date of such termination of employment and the Bank shall pay to the Executive an amount of money equal to accrued balance of the Executive's accrued liability retirement account on the date of said termination, multiplied by the Executive's cumulative vested percentage (Paragraph VIII). This compensation shall be paid in one (1) lump sum the first day of the second month following said termination, or in accordance with Restriction on Timing of Distribution as defined in Subparagraph IV (G) hereinabove.

In the event the Executive's death should occur after such termination but prior to the payment provided for in this Paragraph IX, the balance shall be paid, in one (1) lump sum to such individual or individuals as the Executive may have designated in writing and filed with the Bank. In the absence of any effective beneficiary designation, any such amount shall be payable to the duly qualified executor or administrator of the Executive's estate. Said payment due hereunder shall be made the first day of the second month following the decease of the Executive.

In the event the Executive shall be discharged for cause at any time in accordance with Subparagraph IV (E), this Agreement shall terminate and all benefits provided herein shall be forfeited.

**X.** **MUTUAL TO STOCK CONVERSION CHANGE OF CONTROL** 

If the Executive subsequently suffers a Termination of Employment (voluntarily or involuntarily), except for cause, anytime subsequent to a Change of Control as defined in Subparagraph IV (F), then the Executive shall receive the benefits in Paragraph V herein upon attaining Normal Retirement Age (Subparagraph IV [B]), as if the Executive had been continuously employed by the Bank until the Executive's Normal Retirement Age. Said payment shall be made in accordance with Restriction on Timing of Distribution as defined in Subparagraph IV (G) hereinabove.

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The Executive will also remain eligible for all promised death benefits in this Agreement. In addition, no sale, merger, consolidation or conversion of the Bank shall take place unless the new or surviving entity expressly acknowledges the obligations under this Agreement and agrees to abide by its terms.

**XI.** **RESTRICTIONS ON FUNDING** 

The Bank shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Agreement. The Executive, their beneficiary(ies), or any successor in interest shall be and remain simply a general creditor of the Bank in the same manner as any other creditor having a general claim for matured and unpaid compensation.

The Bank reserves the absolute right, at its sole discretion, to either fund the obligations undertaken by this Agreement or to refrain from funding the same and to determine the extent, nature and method of such funding. Should the Bank elect to fund this Agreement, in whole or in part, through the purchase of life insurance, mutual funds, disability policies or annuities, the Bank reserves the absolute right, in its sole discretion, to terminate such funding at any time, in whole or in part. At no time shall any Executive be deemed to have any lien, right, title or interest in any specific funding investment or assets of the Bank.

If the Bank elects to invest in a life insurance, disability or annuity policy on the life of the Executive, then the Executive shall assist the Bank by freely submitting to a physical exam and supplying such additional information necessary to obtain such insurance or annuities.

**XII.** **MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Alienability and Assignment Prohibition:</u> 

Neither the Executive, nor the Executive's surviving spouse, nor any other beneficiary(ies) under this Agreement shall have any power or right to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any of the benefits payable hereunder nor shall any of said benefits be subject to seizure for the payment of any debts, judgments, alimony or separate maintenance owed by the Executive or the Executive's beneficiary(ies), nor be transferable by operation of law in the event of bankruptcy, insolvency or otherwise. In the event the Executive or any beneficiary attempts assignment, commutation, hypothecation, transfer or disposal of the benefits hereunder, the Bank's liabilities shall forthwith cease and terminate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Binding Obligation of the Bank and any Successor in Interest:</u> 

The Bank shall not merge or consolidate into or with another bank or sell substantially all of its assets to another bank, firm or person until such bank, firm or person expressly agree, in writing, to assume and discharge the duties and obligations of the Bank under this Agreement. This Agreement shall be binding upon the parties hereto, their successors, beneficiaries, heirs and personal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Amendment or Revocation:</u> 

It is agreed by and between the parties hereto that, during the lifetime of the Executive, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Executive and the Bank. Any such amendment shall not be effective to decrease or restrict any Executive's accrued benefit under this Agreement, determined as of the date of amendment, unless agreed to in writing by the Executive, and provided further, no amendment shall be made, or if made, shall be effective, if such amendment would cause the Agreement to violate Internal Revenue Code Section 409A. In the event this Agreement is terminated, such termination shall not cause a distribution of benefits, except under limited circumstances as permitted under Section 409A (i.e., 30 days before or 12 months after a Change of Control event, upon termination of all arrangements of the same type, or upon corporate dissolution or bankruptcy).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Gender:</u> 

Whenever in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Headings:</u> 

Headings and subheadings in this Agreement are inserted for reference and convenience only and shall not be deemed a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Applicable Law:</u> 

The laws of the State of Massachusetts shall govern the validity and interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Partial Invalidity:</u> 

If any term, provision, covenant, or condition of this Agreement is determined by an arbitrator or a court, as the case may be, to be invalid,

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void, or unenforceable, such determination shall not render any other term, provision, covenant, or condition invalid, void, or unenforceable, and the Agreement shall remain in full force and effect notwithstanding such partial invalidity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Not a Contract of Employment:</u> 

This Agreement shall not be deemed to constitute a contract of employment between the parties hereto, nor shall any provision hereof restrict the right of the Bank to discharge the Executive, or restrict the right of the Executive to terminate employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>Tax Withholding:</u> 

The Bank shall withhold any taxes that are required to be withheld, under §409A of the Code and regulations thereunder, from the benefits provided under this Agreement. The Executive acknowledges that the Bank's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. <u>Opportunity to Consult with Independent Advisors</u>:

The Executive acknowledges that he has been afforded the opportunity to consult with independent advisors of his choosing including, without limitation, accountants or tax advisors and counsel regarding both the benefits granted to him under the terms of this Agreement and the: (i) terms and conditions which may affect the Executive's right to these benefits; and (ii) personal tax effects of such benefits including, without limitation, the effects of any federal or state taxes, §280G of the Code, §409A of the Code and guidance or regulations thereunder, and any other taxes, costs, expenses or liabilities whatsoever related to such benefits, which in any of the foregoing instances the Executive acknowledges and agrees shall be the sole responsibility of the Executive notwithstanding any other term or provision of this Agreement. The Executive further acknowledges and agrees that the Bank shall have no liability whatsoever related to any such personal tax effects or other personal costs, expenses, or liabilities applicable to the Executive and further specifically waives any right for himself or herself, and his or her heirs, beneficiaries, legal representative, agents, successor and assign to claim or assert liability on the part of the Bank related to the matters described above in this paragraph. The Executive further acknowledges that he has read, understands and consents to all of the terms and conditions of this Agreement, and that he enters into this Agreement with a full understanding of its terms and conditions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. <u>Permissible Acceleration Provision</u>:

Under Section 409A(a)(3), a payment of deferred compensation may not be accelerated except as provided in regulations by the Internal Revenue Code. Certain permissible payment accelerations include payments necessary to comply with a domestic relations order, payments necessary to comply with certain conflict of interest rules, payments intended to pay employment taxes, and certain de minimis payments related to the participant's termination of the Executive's interest in the plan.

**XIII.** **ADMINISTRATIVE AND CLAIMS PROVISION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Plan Administrator:</u> 

The "Plan Administrator" of this Agreement shall be Citizens-Union Savings Bank. As Plan Administrator, the Bank shall be responsible for the management, control and administration of the Agreement. The Plan Administrator may delegate to others certain aspects of the management and operation responsibilities of the Agreement including the employment of advisors and the delegation of ministerial duties to qualified individuals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Claims Procedure</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Filing a Claim for Benefits</u>:

Any insured, beneficiary, or other individual, ("Claimant") entitled to benefits under this Agreement will file a claim request with the Plan Administrator. The Plan Administrator will, upon written request of a Claimant, make available copies of all forms and instructions necessary to file a claim for benefits or advise the Claimant where such forms and instructions may be obtained. If the claim relates to disability benefits, then the Plan Administrator shall designate a sub-committee to conduct the initial review of the claim (and applicable references below to the Plan Administrator shall mean such sub-committee).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Denial of Claim</u>:

A claim for benefits under this Agreement will be denied if the Bank determines that the Claimant is not entitled to receive benefits under the Agreement. Notice of a denial shall be furnished the Claimant within a reasonable period of time after receipt of the claim for benefits by the Plan Administrator. This time period shall not exceed more than ninety (90) days after the receipt of the properly submitted claim. In the event that the claim for benefits

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pertains to disability, the Plan Administrator shall provide written notice within forty-five (45) days. However, if the Plan Administrator determines, in its discretion, that an extension of time for processing the claim is required, such extension shall not exceed an additional ninety (90) days. In the case of a claim for disability benefits, the forty-five (45) day review period may be extended for up to thirty (30) days if necessary due to circumstances beyond the Plan Administrator's control, and for an additional thirty (30) days, if necessary. Any extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to render the determination on review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Content of Notice</u>:

The Plan Administrator shall provide written notice to every Claimant who is denied a claim for benefits which notice shall set forth the following:

(i.) The specific reason or reasons for the denial;

(ii.) Specific reference to pertinent Agreement provisions on which the denial is based;

(iii.) A description of any additional material or information necessary for the Claimant to perfect the claim, and any explanation of why such material or information is necessary; and

(iv.) Any other information required by applicable regulations, including with respect to disability benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Review Procedure</u>:

The purpose of the Review Procedure is to provide a method by which a Claimant may have a reasonable opportunity to appeal a denial of a claim to the Plan Administrator for a full and fair review. The Claimant, or his duly authorized representative, may:

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| | |
|:---|:---|
| (i.) | Request a review upon written application to the Plan Administrator. Application for review must be made within sixty (60) days of receipt of written notice of denial of claim. If the denial of claim pertains to disability, application for review must be made within one hundred eighty (180) days of receipt of written notice of the denial of claim;  |

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(ii.) Review and copy (free of charge) pertinent Agreement documents, records and other information relevant to the Claimant's claim for benefits;

(iii.) Submit issues and concerns in writing, as well as documents, records, and other information relating to the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Decision on Review</u>:

A decision on review of a denied claim shall be made in the following manner:

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| | |
|:---|:---|
| (i.) | The Plan Administrator may, in its sole discretion, hold a hearing on the denied claim. If the Claimant's initial claim is for disability benefits, any review of a denied claim shall be made by members of the Plan Administrator other than the original decision maker(s) and such person(s) shall not be a subordinate of the original decision maker(s). The decision on review shall be made promptly, but generally not later than sixty (60) days after receipt of the application for review. In the event that the denied claim pertains to disability, such decision shall not be made later than forty-five (45) days after receipt of the application for review. If the Plan Administrator determines that an extension of time for processing is required, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial sixty (60) day period. In no event shall the extension exceed a period of sixty (60) days from the end of the initial period. In the event the denied claim pertains to disability, written notice of such extension shall be furnished to the Claimant prior to the termination of the initial forty-five (45) day period. In no event shall the extension exceed a period of thirty (30) days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to render the determination on review.  |

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(ii.) The decision on review shall be in writing and shall include specific reasons for the decision written in an understandable manner with specific references to the pertinent Agreement provisions upon which the decision is based.

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---

| | |
|:---|:---|
| (iii.) | The review will take into account all comments, documents, records and other information submitted by the Claimant relating to the claim without regard to whether such information was submitted or considered in the initial benefit determination. Additional considerations shall be required in the case of a claim for disability benefits. For example, the claim will be reviewed without deference to the initial adverse benefits determination and, if the initial adverse benefit determination was based in whole or in part on a medical judgment, the Plan Administrator will consult with a health care professional with appropriate training and experience in the field of medicine involving the medical judgment. The health care professional who is consulted on appeal will not be the same individual who was consulted during the initial determination or the subordinate of such individual. If the Plan Administrator obtained the advice of medical or vocational experts in making the initial adverse benefits determination (regardless of whether the advice was relied upon), the Plan Administrator will identify such experts.  |

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(iv.) The decision on review will include a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records or other information relevant to the Claimant's claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Exhaustion of Remedies</u>:

A Claimant must follow the claims review procedures under this Agreement and exhaust his or her administrative remedies before taking any further action with respect to a claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Arbitration</u>:

If claimants continue to dispute the benefit denial based upon completed performance of this Agreement or the meaning and effect of the terms and conditions thereof, then claimants may submit the dispute to an Arbitrator for final arbitration. The Arbitrator shall be selected by mutual agreement of the Bank and the claimants. The Arbitrator shall operate under any generally recognized set of arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such Arbitrator with respect to any controversy properly submitted to it for determination.

Where a dispute arises as to the Bank's discharge of the Executive "for

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cause," such dispute shall likewise be submitted to arbitration as above described and the parties hereto agree to be bound by the decision thereunder.

**XIV.** **TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS** 

The Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules and regulations will continue in effect in their current form. If any said assumptions should change and said change has a detrimental effect on this Agreement, then the Bank reserves the right to terminate or modify this Agreement accordingly. Any such termination or modification shall not be effective to decrease or restrict any Executive's Accrued Liability Retirement Account under this Agreement, determined as of the date of amendment, unless agreed to in writing by the Executive, and provided further, no amendment shall be made, or if made, shall be effective, if such termination or modification would cause the Agreement to violate Internal Revenue Code Section 409A. In the event this Agreement is terminated, such termination shall not cause a distribution of benefits, except under limited circumstances as permitted under Section 409A (i.e., 30 days before or 12 months after a Change in Control event, upon termination of all arrangements of the same type, or upon corporate dissolution or bankruptcy). Upon a Change of Control, this paragraph shall become null and void effective immediately upon said Change of Control.

**IN WITNESS WHEREOF,** the parties hereto acknowledge that each has carefully read this Agreement and executed the original thereof on the first day set forth hereinabove, and that, upon execution, each has received a conforming copy.

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| | | |
|:---|:---|:---|
|  | **CITIZENS-UNION SAVINGS BANK**<br> Fall River, MA | **CITIZENS-UNION SAVINGS BANK**<br> Fall River, MA |
| ![LOGO](g122170g01a10.jpg) <br>| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g122170g01a11.jpg) <br>|
| Witness | (Bank Officer other than Insured)<br> Title Sr Vice President & Treasurer | (Bank Officer other than Insured)<br> Title Sr Vice President & Treasurer |
| ![LOGO](g122170g01a10.jpg) <br>| ![LOGO](g122170g01a12.jpg)  | ![LOGO](g122170g01a12.jpg)  |
| Witness | Carl Taber |  |

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**409A Amendment** 

**to the** 

**Citizens-Union Savings Bank** 

**Executive Salary Continuation Agreement for** 

**Carl Taber** 

Citizens-Union Savings Bank ("Bank") and Carl Taber ("Executive") originally entered into the Citizens-Union Savings Bank Executive Salary Continuation Agreement ("Agreement") on August 20, 2007. Pursuant to Subparagraph XII (C) of the Agreement, the Bank and the Executive hereby adopt this 409A Amendment, effective January 1, 2006.

<u>RECITALS</u> 

This Amendment is intended to bring the Agreement into compliance with the requirements of Internal Revenue Code Section 409A. Accordingly, the intent of the parties hereto is that the Agreement shall be operated and interpreted consistent with the requirements of Section 409A. Therefore, the following changes shall be made:

1. Subparagraph IV (F), "Mutual to Stock Conversion or a Change of Control", shall be deleted in
its entirety and replaced with the following Subparagraph IV (F):

<u>Change in Control</u>:

"Change in Control" shall mean a change in ownership or control of the Bank as defined in Treasury Regulation §1.409A-3(i)(5) or any subsequently applicable Treasury Regulation.

2. Subparagraph IV (H), "Separation from Service", shall be deleted in its entirety and replaced
with the following Subparagraph IV (H):

<u>Separation from Service</u>:

Separation from Service shall mean the Executive has experienced a termination of employment with the Bank. For purposes of this Agreement, whether a termination of employment or service has occurred is determined based on whether the facts and circumstances indicate that the Bank and Executive reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Executive would perform after such date (whether as an Executive or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an Executive or an independent contractor) over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the Executive has been providing services to the Bank less than 36 months). Facts and circumstances to be considered in making this determination include, but are not limited to, whether the Executive

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continues to be treated as an Executive for other purposes (such as continuation of salary and participation in Executive benefit programs), whether similarly situated service providers have been treated consistently, and whether the Executive is permitted, and realistically available, to perform services for other service recipients in the same line of business. An Executive will be presumed not to have separated from service where the level of bona fide services performed continues at a level that is fifty percent (50%) or more of the average level of service performed by the Executive during the immediately preceding thirty-six (36) month period.

3. Subparagraph VI, "Death Benefit Prior to Retirement", shall be amended to delete the words
"(or such later date as may be agreed upon)" from the first sentence, and to delete the last sentence in its entirety.

4. Section X, "Mutual to Stock Conversion or Change of Control", shall be deleted in its entirety
and replaced with the following Section X:

**CHANGE IN CONTROL** 

Upon a Change in Control as defined in Subparagraph IV (F), the Executive shall receive the benefits in Section V herein in the same form and with the same timing, except that payments shall commence upon the Executive's attaining Normal Retirement Age [Subparagraph IV (B)]. Said payment shall be made in accordance with the Restriction on Timing of Distribution as defined in Subparagraph IV (G) hereinabove. The Executive will also remain eligible for all promised death benefits in this Agreement. In addition, no sale, merger, consolidation, or conversion of the Bank shall take place unless the new or surviving entity expressly acknowledges the obligations under this Agreement and agrees to abide by its terms.

5. Subparagraph XII (C), "Amendment or Revocation", shall be amended to delete the last sentence in
its entirety.

6. Subparagraph XII (K), "Permissible Acceleration Provision", shall be deleted in its entirety and
replaced with the following Subparagraph XII (K):

<u>Certain Accelerated Payments</u>:

The Bank may make any accelerated distribution permissible under Treasury Regulation 1.409A-3(j)(4) to the Executive of deferred amounts, provided that such distribution(s) meets the requirements of Section 1.409A-3(j)(4).

7. A new Subparagraph XII (L) shall be added as follows:

<u>Subsequent Changes to Time and Form of Payment</u>:

------

The Bank may permit a subsequent change to the time and form of benefit distributions. Any such change shall be considered made only when it becomes irrevocable under the terms of the Agreement. Any change will be considered irrevocable not later than thirty (30) days following acceptance of the change by the Plan Administrator, subject to the following rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the subsequent deferral election may not take effect until at least twelve (12) months after the date
on which the election is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the payment (except in the case of death, disability, or unforeseeable emergency) upon which the subsequent
deferral election is made is deferred for a period of not less than five (5) years from the date such payment would otherwise have been paid; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a payment made at a specified time, the election must be made not less than twelve
(12) months before the date the payment is scheduled to be paid.

8. Section XIV, "Termination or Modification of Agreement by Reason of Changes in the Law, Rules or
Regulations", shall be amended to delete the next to last sentence in its entirety.

Therefore, the foregoing changes are agreed to.

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| | |
|:---|:---|
| ![LOGO](g122170g01a08.jpg) <br>| ![LOGO](g122170g01a09.jpg) <br>|
| Nicholas M. Christ<br> President & CEO<br> Citizens-Union Savings Bank | Carl Taber |
| Date <u>12/16/08</u> | Date <u>12/16/08</u> |

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------

**AMENDMENT** 

**TO THE** 

**CITIZENS-UNION SAVINGS BANK** 

**EXECUTIVE SALARY CONTINUATION AGREEMENT** 

THIS AMENDMENT, made and entered into this 13<sup>th</sup> day of June, 2014, by and between BAYCOAST BANK, a bank located in Swansea, Massachusetts and successor in interest to Citizens-Union Savings Bank ("Bank") and CARL TABER ("Executive"), shall effectively amend the Citizens-Union Savings Bank Executive Salary Continuation Agreement dated August 20, 2007 ("Agreement"), as specifically set forth herein. Pursuant to Section XII(C) of the Agreement, the Bank and the Executive hereby adopt the following amendment:

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| | |
|:---|:---|
| 1.) | Section V, <u>Retirement Benefit and Pos-Retirement Death Benefit</u>, shall be modified to delete the words "Twenty Five Thousand and 00/100<sup>th</sup> Dollars ($25,000.00)" and replace them with the following:  |

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**"Forty Thousand and 00/100<sup>th</sup> Dollars ($40,000,00)"** 

The Effective Date of this Amendment shall be January 1, 2014. To the extent that any term, provision, or paragraph of the Agreement is not specifically amended herein, or in any other amendment thereto, said term, provision, or paragraph shall remain in full force and effect as set forth in said Agreement.

IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Amendment, had the opportunity to consult with qualified legal counsel, and executed the original thereof on the first day set forth hereinabove, and that, upon execution, each has received a conforming copy.

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| | | |
|:---|:---|:---|
| **EXECUTIVE:** | **BANK:** | **BANK:** |
|  | **BayCoast Bank** | **BayCoast Bank** |
| ![LOGO](g122170g01a06.jpg) <br>| **By** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g122170g01a07.jpg) <br>|
| **Carl Taber** | <br> **Title <u>President & CEO</u>**  | <br> **Title <u>President & CEO</u>**  |

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**<u>8-K DISCLOSURE NOTICE</u>**

Institutions subject to SEC regulation may be required to disclose certain information regarding this amendment. Institutions should consult with SEC counsel as to applicability of this requirement to this amendment.

**<u>IMPORTANT NOTICE ABOUT THE PRACTICE OF LAW AND ACCOUNTING</u>** 

Nothing in this document should be construed as tax, legal, or accounting advice. NFP Executive Benefits does not practice law or accounting. The attached amendment contains recommended changes intended to facilitate discussion between you and your legal and/or tax advisor. It is strongly recommended that you seek review by outside counsel before signing this amendment.

------

**AMENDMENT** 

**TO THE** 

**CITIZENS-UNION SAVINGS BANK** 

**EXECUTIVE SALARY CONTINUATION AGREEMENT** 

THIS AMENDMENT made and entered into this 9<sup>th</sup> day of February, 2021, by and between BAYCOAST BANK, a bank located in Swansea, Massachusetts and successor in interest to Citizens-Union Savings Bank ("Bank") and CARL TABER ("Executive"), shall effectively amend the Citizens-Union Savings Bank Executive Salary Continuation Agreement dated as of 20<sup>th</sup> day of August, 2007 between BayCoast Bank, f/k/a Citizens-Union Savings Bank (the "Bank"), as amended 13<sup>th</sup> day of June, 2014 and Carl Taber (the "Executive"), as specifically set forth herein. Pursuant to Section XI 1(C) of the Agreement, the Bank and the Executive hereby adopt the following amendment:

I.) Section V, <u>Retirement Benefit and Pos-Retirement Death Benefit,</u> shall be modified to delete the words "Forty Thousand and 00/100<sup>th</sup> Dollars ($40,000.00)" and replace them with the following:

**"One Hundred Thousand and 00/100<sup>th</sup> Dollars ($100,000.00)"** 

The Effective Date of this Amendment shall be December 31, 2020. To the extent that any term, provision, or paragraph of the Agreement is not specifically amended herein , or in any other amendment thereto, said term, provision, or paragraph shall remain in full force and effect as set faith in said Agreement.

IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Amendment, had the opportunity to consult with qualified legal counsel, and executed the original thereof on the first day set forth hereinabove, and that, upon execution, each has received a conforming copy.

---

| | | |
|:---|:---|:---|
| **EXECUTIVE:** | **BANK:** | **BANK:** |
|  | **BayCoast Bank** | **BayCoast Bank** |
| ![LOGO](g122170g01a04.jpg) <br>| **By** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g122170g01a05.jpg) <br>|
| **Carl Taber** | **Name: Nicholas M. Christ** | **Name: Nicholas M. Christ** |
|  | **Title: President & CEO** | **Title: President & CEO** |

---

## Exhibit 10.6

**Exhibit 10.6** 

---

| | |
|:---|:---|
| **BayCoast Bank** | **Supplemental Directors Retirement Agreement** |

---

**BAYCOAST BANK** 

**SUPPLEMENTAL DIRECTOR RETIREMENT AGREEMENT** 

THIS SUPPLEMENTAL DIRECTOR RETIREMENT AGREEMENT ("Agreement") is entered into this<u> </u> day of , between BAYCOAST BANK ("Bank"), a bank located in Swansea, Massachusetts, and<u> </u> ("Director").

**Article 1 – Benefits Tables** 

The following tables describe the benefits available to the Director, or the Director's Beneficiary, upon the occurrence of certain events. Capitalized terms have the meanings given them in Article 3. Except for death, each benefit described is in lieu of any other benefit herein.

**Table A: Retirement Benefit** 

**Normal Retirement Age ("NRA") = 72** 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Distribution Event<br>| <br> Amount of Benefit<br>| <br> Form of Benefit<br>| <br> Timing of Benefit Distribution\*<br>|
| &nbsp;&nbsp;&nbsp;Separation of Service following Normal Retirement Age | Forty-five percent (45%) of Average Annual Director Fee Amount, as of Separation from Service | Annual installments | Payments begin: Within Thirty (30) days following Separation from Service<br> Duration: 10 years |

---

**Table B: Benefit Available Prior to Retirement** 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Distribution Event<br>| <br> Amount of Benefit<br>| <br> Form of Benefit<br>| <br> Timing of Benefit Distribution\*<br>|
| &nbsp;&nbsp;&nbsp;Voluntary Separation from Service | Accrued Liability Balance, as of Separation from Service | Lump sum | Payment: Thirty (30) days following Separation from Service |
| &nbsp;&nbsp;&nbsp;Involuntary Separation from Service | Accrued Liability Balance, as of Separation from Service | Lump sum | Payment: Thirty (30) days following Separation from Service |
| &nbsp;&nbsp;&nbsp;Change in Control | Present Value of full Table A Retirement Benefit | Lump sum | Payment: Thirty (30) days following Change in Control |
| &nbsp;&nbsp;&nbsp;Disability | Accrued Liability Balance, as of Separation from Service | Annual installments | Payment: Thirty (30) days following Separation from Service |

---

**Table C: Death Benefit** 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Distribution Event<br>| <br> Amount of Benefit<br>| <br> Form of Benefit<br>| <br> Timing of Benefit Distribution\*<br>|
| &nbsp;&nbsp;&nbsp;Death while actively serving | 50% of the Accrued Liability Balance, as of date of death | Lump sum | Payment (to Beneficiary): Thirty (30) days following Executive's death |
| &nbsp;&nbsp;&nbsp;Death during installment payout of benefit under Tables A or B | Remaining installment payments, if any, under Table A or B. | Annual installments | Payments to Beneficiary continue on same schedule as if Director had lived. |

---

------

---

| | |
|:---|:---|
| **BayCoast Bank** | **Supplemental Directors Retirement Agreement** |

---

**Article 2 - Purpose** 

The purpose of this Agreement is to further the growth and development of the Bank by providing Director with supplemental retirement income, and thereby encourage Director's productive efforts on behalf of the Bank. The Bank promises to make certain payments to the Participant, or the Participant's Beneficiary, at retirement, death, or upon some other qualifying event pursuant to the terms of this Agreement.

**Article 3 - Definitions and Construction** 

It is intended that this Agreement comply and be construed in accordance with Section 409A of the Internal Revenue Code (the "Code"). It is also intended that the Agreement be "unfunded" and maintained for a select group of management or highly compensated employees of the Bank, for purposes of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and not be construed to provide income to the Director or Beneficiary under Code prior to actual receipt of benefits.

Where the following words and phrases appear in the Agreement, they shall have the respective meanings set forth below, unless their context clearly indicates to the contrary:

3.1 <u>"Accrued Liability Balance"</u> shall mean the amount accrued by the Bank to fund the future
benefit expense associated with this Agreement. The Bank shall account for this benefit using Generally Accepted Accounting Principles, regulatory accounting guidance of the Bank's primary federal regulator, and other applicable accounting
guidance, including APB 12 and FAS I 06. Accordingly, the Bank shall establish a liability retirement account for the Director into which appropriate accruals shall be made using a reasonable discount rate, which may be adjusted from time to time.

3.2 <u>"Average Annual Director Fee Amount"</u> shall mean the average of the Annual Director Fee
Amount over any three (3) calendar years during the final ten (10) Years of Service by the Director in which the Annual Director Fee Amount was the greatest. For the purposes of this Agreement, the Annual Director Fee Amount shall include
all Bank retainer fees, Board meeting fees and all Board committee fees; provided, however, that the Annual Director Fee Amount shall not include any amounts payable as reimbursements of expenses, or any fees or compensation payable for services
other than serving as Director, such as appraisal fees, legal fees, accounting fees, or the like.

3.3 <u>"Beneficiary"</u> shall mean the person(s) designated by the Director, including the estate
of the Director, entitled to a benefit under this Agreement.

3.4 <u>"Board"</u> shall mean the Board of Directors of the Bank.

3.5 <u>"Change in Control"</u> shall mean a change in ownership or control of the Bank as defined in
Treasury Regulation§ I .409A-3(i)(5) or any subsequently applicable published authority or guidance.

3.6 <u>"Disability"</u> shall mean Director, while actively serving by the Bank: (i) is unable
to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months;
or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last

------

---

| | |
|:---|:---|
| **BayCoast Bank** | **Supplemental Directors Retirement Agreement** |

---

for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering directors of the Bank. Medical determination of Disability may be made by either the Social Security Administration or by the provider of an accident or health plan covering directors of the Bank, provided that the definition of Disability applied under such Disability insurance program complies with the requirements of Section 409A. Upon the request of the Plan Administrator, the Director must submit proof to the Plan Administrator of Social Security Administration's or the provider's determination. <br>

3.7 " <u>Effective Date"</u> shall mean January 1, 2012.

3.8 <u>"Involuntary Separation from Service"</u> shall mean that the Bank terminates
Director's service at any time before Director's Normal Retirement Age and such termination is not considered a Termination for Cause. A Separation from Service for "Good Reason" will also be treated as an Involuntary
Separation from Service, provided such Separation from Service meets the necessary "safe harbor" conditions as set forth under Section 409A of the Code.

3.9 <u>"Present Value"</u> shall mean: All lump sum distributions under this Plan shall be
discounted to present value using a reasonable discount rate.

3.10 <u>"Separation from Service"</u> shall mean that the Director has retired or otherwise has a
termination of service with the Bank. For purposes of this Agreement, whether a termination of service has occurred is determined based on whether the facts and circumstances indicate that the Bank and Director reasonably anticipated that no further
services would be performed after a certain date, or that the level of bona fide services the Director would perform after such date would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed
over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the Director has been providing services to the Bank less than 36 months). Facts and
circumstances to be considered in making this determination include, but are not limited to, whether the Director continues to be treated as an Director for other purposes (such as continuation of salary and participation in Director benefit
programs), whether similarly situated service providers have been treated consistently, and whether the Director is permitted, and realistically available, to perform services for other service recipients in the same line of business. A Director
will be presumed not to have separated from service where the level of bona fide services performed continues at a level that is fifty percent (50%) or more of the average level of service performed by the Director during the immediately preceding thirty-six (36) month period. A Separation from Service will not be deemed to have occurred while the Director is on military leave, sick leave, or other bona fide leave of absence, provided Director has the
right to continue service under an applicable statute or by contract.

3-11 <u>"Termination for Cause" shall mean a termination of service for:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Gross negligence or gross neglect of duties to the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the
Director's service with the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Fraud, disloyalty, dishonesty or willful violation of any law or significant Bank policy committed in
connection with the Director's service and resulting in a material adverse effect on the Bank.

------

---

| | |
|:---|:---|
| **BayCoast Bank** | **Supplemental Directors Retirement Agreement** |

---

3.12 <u>"Voluntary Separation from Service"</u> shall mean the Director terminates service with the
Bank prior to Normal Retirement Age for reasons other than death, Disability, Termination for Cause, or Separation from Service following a Change in Control.

3.13 <u>"Years of Service"</u> shall mean all full calendar years spent as a Director, whether or not
such time commenced before the Effective Date of this Agreement.

**Article 4 - Beneficiary** 

4.1 <u>Beneficiary</u>. Director shall have the right to name a Beneficiary of the death benefit, if any,
described in Article I herein. Director shall have the right to name such Beneficiary at any time prior to Director's death and submit it to the Plan Administrator (or Plan Administrator's representative) on the form provided. Once
received and acknowledged by the Plan Administrator, the form shall be effective. The Director may change a Beneficiary designation at any time by submitting a new form to the Plan Administrator. Any such change shall follow the same rules as for
the original Beneficiary designation and shall automatically supersede the existing Beneficiary form on file with the Plan Administrator.

4.2 <u>Failure to Designate a Beneficiary</u>. If Director dies without a valid Beneficiary designation on file
with the Plan Administrator, the Director's surviving spouse, if any, shall become the designated Beneficiary. If Director has no surviving spouse, death benefits shall be paid to the personal representative of Director's estate.

4.3 <u>Facility of Distribution</u>. If the Plan Administrator determines in its discretion that a benefit is to
be paid to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of that person's property, the Plan Administrator may direct distribution of such benefit to the guardian, legal representative or
person having the care or custody of such minor, incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any
distribution of a benefit shall be a distribution for the account of the Director and the Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such distribution amount.

**Article 5 - General Limitations** 

5.1 <u>Termination for Cause</u>. Notwithstanding any provision of this Agreement to the contrary, the Bank
shall not distribute any benefit under this Agreement if Director's service is terminated due to a Termination for Cause.

5.2 <u>Removal</u>. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not
distribute any benefit under this Agreement if the Director is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act.

**Article 6 - Administration of Agreement** 

6.1 <u>Plan Administrator</u>. The Bank shall be the Plan Administrator, unless the Bank appoints a committee to
be the Plan Administrator. The Bank may appoint a Committee ("Committee") of one or more individuals in the service of Bank for the purpose of discharging the administrative responsibilities of the Bank under the Plan. The Bank may
remove a Committee member for any reason by giving such member ten (10) days' written notice and may thereafter fill any vacancy

------

---

| | |
|:---|:---|
| **BayCoast Bank** | **Supplemental Directors Retirement Agreement** |

---

thus created. The Committee shall represent the Bank in all matters concerning the administration of this Plan; provided however, the final authority for all administrative and operational decisions relating to the Plan remains with the Bank.

6.2 <u>Authority of Plan Administrator</u>. The Plan Administrator shall have full power and authority to adopt
rules and regulations for the administration of the Plan, provided they are not inconsistent with the provisions of this Plan, and Section 409A of the Code, to interpret, alter, amend or revoke any rules and regulations so adopted, to enter
into contracts on behalf of the Bank with respect to this Agreement, to make discretionary decisions under this Plan, to demand satisfactory proof of the occurrence of any event that is a condition precedent to the commencement of any payment or
discharge of any obligation under the Plan, and to perform any and all administrative duties under this Plan.

6.3 <u>Recusal</u>. An individual serving as Plan Administrator may be eligible to participate in the Plan, but
such person shall not be entitled to participate in discretionary decisions under Article 7 relating to such person's own interests in the Plan.

6.4 <u>Agents</u>. In the administration of this Agreement, the Plan Administrator may employ agents and
delegate to them such administrative duties as it sees fit, (including acting through a duly appointed representative), and may from time to time consult with counsel who may be counsel to the Bank.

6.5 <u>Binding Effect of Decisions</u>. The decision or action of the Plan Administrator with respect to any
question arising out of or in connection with the administration, interpretation and application of the Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in
the Agreement.

6.6 <u>Indemnity of Plan Administrator</u>. The Bank shall indemnify and hold harmless the Plan Administrator
and its agents against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator.

6.7 <u>Bank Information</u>. To enable the Plan Administrator to perform its functions, the Bank shall supply
full and timely information to the Plan Administrator on all matters relating to the date and circumstances of any event triggering a benefit hereunder.

6.8 <u>Annual Statement</u>. The Plan Administrator shall provide to the Bank, on the schedule set forth in the
Administrative Services Contract, a statement setting forth the benefits to be distributed under this Agreement.

**Article 7 - Claims Procedures** 

A Director or Beneficiary ("Claimant") who has not received benefits under the Agreement that he or she believes should be distributed shall make a claim for such benefits as follows:

7.1 <u>Initiation- Written Claim</u>. The Claimant initiates a claim by submitting to the Plan Administrator a
written claim for the benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All other claims must be made within one
hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

------

---

| | |
|:---|:---|
| **BayCoast Bank** | **Supplemental Directors Retirement Agreement** |

---

7.2 <u>Timing of Plan Administrator Response</u>. The Plan Administrator shall respond to such Claimant within
ninety (90) days after receiving the claim. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional ninety
(90) days by notifying the Claimant in writing, prior to the end of the initial ninety-day (90) period, that an additional period is required. The notice of extension must set forth the special
circumstances and the date by which the Plan Administrator expects to render its decision.

7.3 <u>Notice of Decision</u>. If the Plan Administrator denies part or all of the claim, the Plan Administrator
shall notify the Claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reasons for the denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A reference to the specific provisions of the Agreement on which the denial is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A description of any additional information or material necessary for the Claimant to perfect the claim and
an explanation of why it is needed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) An explanation of the Agreement's review procedures and the time limits applicable to such procedures.

**Article 8 - Review Procedures** 

If the Plan Administrator denies part or all of the claim, the Claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial, as follows:

8.1 <u>Initiation- Written Request</u>. To initiate the review, the Claimant, within sixty (60) days after
receiving the Plan Administrator's notice of denial, must file with the Plan Administrator a written request for review.

8.2 <u>Additional Submissions - Information Access</u>. The Claimant shall then have the opportunity to submit
written comments, documents, records and other information relating to the claim. The Plan Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other
information relevant to the Claimant's claim for benefits.

8.3 <u>Considerations on Review</u>. In considering the review, the Plan Administrator shall take into account
all materials and information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

8.4 <u>Timing of Plan Administrator Response</u>. The Plan Administrator shall respond in writing to such
Claimant within sixty (60) days after receiving the request for review. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by
an additional sixty (60) days by notifying the Claimant in writing, prior to the end of the initial sixty-day (60) period, that an additional period is required. The notice of extension must set
forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

8.5 <u>Notice of Decision</u>. The Plan Administrator shall notify the Claimant in writing of its decision

------

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| | |
|:---|:---|
| **BayCoast Bank** | **Supplemental Directors Retirement Agreement** |

---

on review. The Plan Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reasons for the denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A reference to the specific provisions of the Agreement on which the denial is based; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to,
and copies of, all documents, records and other information relevant to the Claimant's claim for benefits.

**Article 9 - Amendments and Termination** 

9.1 <u>Amendment or Termination</u>. This Agreement may be amended or terminated unilaterally by the Bank,
except where an amendment or termination would materially reduce the Director's vested benefit, in which case the Director's consent shall be required.

9.2 <u>Subsequent Changes to Time and Form of Payment</u>. The Bank may permit a subsequent change to the time
and form of benefit distributions. Any such change shall be considered made only when it becomes irrevocable under the terms of the Agreement. Any change will be considered irrevocable not later than thirty (30) days following acceptance of the
change by the Plan Administrator, subject to the following rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The subsequent deferral election may not take effect until at least twelve (12) months after the date
on which the election is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The payment (except in the case of death, disability, or unforeseeable emergency) upon which the subsequent
deferral election is made is deferred for a period of not less than five (5) years from the date such payment would otherwise have been paid; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of a payment made at a specified time, the election must be made not less than twelve
(12) months before the date the payment is scheduled to be paid.

**Article 10 - Miscellaneous** 

10.1 <u>Binding Effect</u>. This Agreement shall bind the Director and the Bank, and their beneficiaries,
survivors, executors, administrators and transferees.

10.2 <u>No Guarantee of Service</u>. This Agreement is not a contract for service. It does not give the Director
the right to remain as a director of the Bank, nor does it interfere with the Bank's right to discharge the Director. It also does not require the Director to remain a director nor interfere with the Director's right to terminate service
at any time.

10.3 <u>Non-Transferability</u>. Benefits under this Agreement cannot be
sold, transferred, assigned, pledged, attached or encumbered in any manner.

10.4 <u>Tax Withholding</u>. The Bank shall withhold any taxes that are required to be withheld from the benefits
provided under this Agreement. The Director acknowledges that the Bank's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).

10.5 <u>Applicable Law</u>. The Agreement and all rights hereunder shall be governed by the laws of the state
where the Bank's primary corporate headquarters is located, except to the extent preempted

------

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| | |
|:---|:---|
| **BayCoast Bank** | **Supplemental Directors Retirement Agreement** |

---

by the laws of the United States of America.

10.6 <u>Unfunded Arrangement</u>. The Director is a general unsecured creditor of the Bank for the distribution
of benefits under this Agreement. The benefits represent the mere promise by the Bank to distribute such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors. Any insurance on the Director's life or other informal funding asset is a general asset of the Bank to which the Director has no preferred or secured claim.

10.7 <u>Reorganization.</u> The Bank shall not merge or consolidate into or with another bank, or reorganize, or
sell substantially all of its assets to another bank, firm, or person unless such succeeding or continuing bank, firm, or person agrees to assume and discharge the obligations of the Bank under this Agreement. Upon the occurrence of such event, the
term "Bank" as used in this Agreement shall be deemed to refer to the successor or survivor bank.

10.8 <u>Entire Agreement</u>. This Agreement constitutes the entire agreement between the Bank and the Director
as to the subject matter hereof. No rights are granted to the Director by virtue of this Agreement other than those specifically set forth herein.

10.9 <u>Interpretation</u>. Wherever the fulfillment of the intent and purpose of this Agreement requires, and
the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural.

10.10 <u>Alternative Action</u>. In the event it shall become impossible for the Bank or the Plan Administrator to
perform any act required by this Agreement, the Bank or Plan Administrator may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Bank.

10.11 <u>Headings</u>. Article and section headings are for convenient reference only and shall not control or
affect the meaning or construction of any of its provisions.

10.12 <u>Validity</u>. In case any provision of this Agreement shall be illegal or invalid for any reason, said
illegality or invalidity shall not affect the remaining hereof, but this Agreement shall be construed and enforced as if such illegal and invalid provision has never been inserted herein.

10.13 <u>Notice</u>. Any notice or filing required or permitted to be given to the Bank or Plan Administrator
under this Agreement shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

Any notice or filing required or permitted to be given to the Director under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Director.

------

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| | |
|:---|:---|
| **BayCoast Bank** | **Supplemental Directors Retirement Agreement** |

---

10.14 <u>Opportunity to Consult with Independent Advisors</u>. The Director acknowledges that he has been afforded
the opportunity to consult with independent advisors of his choosing including, without limitation, accountants or tax advisors and counsel regarding both the benefits granted to him under the terms of this Agreement and the (i) terms and
conditions which may affect the Director's right to these benefits, and (ii) personal tax effects of such benefits including, without limitation, the effects of any federal or state taxes, Section 280G of the Code, Section 409A
of the Code, and any other taxes, costs, expenses or liabilities whatsoever related to such benefits, which in any of the foregoing instances the Director acknowledges and agrees shall be the sole responsibility of the Director notwithstanding any
other term or provision of this Agreement. The Director further acknowledges and agrees that the Bank shall have no liability whatsoever related to any such personal tax effects or other personal costs, expenses, or liabilities applicable to the
Director and further specifically waives any right for himself or herself, and his or her heirs, beneficiaries, legal representatives, agents, successor and assign to claim or asset liability on the part of the Bank related to the matters described
above in this Section 9.14. The Director further acknowledges that he has read, understands and consents to all of the terms and conditions of this Agreement, and that he enters into this Agreement with a full understanding of its terms and
conditions.

10.15 <u>Restriction on Timing of Distribution</u>. Solely to the extent necessary to avoid penalties under
Section 409A, distributions under this Agreement may not commence earlier than six (6) months after a Separation from Service (as described under the "Separation from Service" provision herein) if, pursuant to Internal Revenue
Code Section 409A, the participant hereto is considered a "specified employee" of a publicly-traded company. In the event a distribution is delayed pursuant to this Section, the originally scheduled distribution shall be delayed for
six (6) months, and shall commence instead on the first day of the seventh month following Separation from Service. If payments are scheduled to be made in installments, the first six (6) months of installment payments shall be delayed,
aggregated, and paid instead on the first day of the seventh month, after which all installment payments shall be made on their regular schedule. If payment is scheduled to be made in a lump sum, the lump sum payment shall be delayed for six
(6) months and instead be made on the first day of the seventh month.

10.16 <u>Certain Accelerated Payments</u>. The Bank may make any accelerated distribution permissible under
Treasury Regulation 1.409A-3G)(4), provided that such distribution(s) meets the requirements of Section 1.409A-3G)(4).

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated above.

---

| | | |
|:---|:---|:---|
| **DIRECTOR:** | **BANK:** | **BANK:** |
|  | **BayCoast Bank** | **BayCoast Bank** |
|  | **By:** |  |
|  |  | **Nicholas M. Christ** |
|  |  | **President & CEO** |

---

------

**1<sup>st</sup> AMENDMENT** 

**TO THE AMENDED AND RESTATED** 

**BAYCOAST BANK** 

**SUPPLEMENTAL DIRECTOR RETIREMENT AGREEMENT** 

THIS AMENDMENT, made and entered into this<u> </u> day of<u> </u> by and between BAYCOAST BANK ("Bank"), and<u> </u>, a Director of the Bank ("Director"), shall effectively amend the Amended and Restated Supplemental Director Retirement Agreement dated , ("Agreement"), as specifically set forth herein. Pursuant to Section 9.1 of the Agreement, the Bank and the Director hereby adopt the following amendment:

**Article 1 – Benefits Tables** 

**Table B: Benefit Available Prior to Retirement** 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; Distribution Event | Amount of Benefit | Form of Benefit | Timing of Benefit Distribution\* |
| &nbsp;&nbsp;&nbsp; Voluntary Separation<br> from Service | Accrued Liability Balance, as of Separation from Service | Lump sum | Payment: Thirty (30) days<br> following Separation from Service |
| &nbsp;&nbsp;&nbsp; Involuntary Separation<br> from Service | Accrued Liability Balance, as of Separation from Service | Lump sum | Payment: Thirty (30) days<br> following Separation from Service |
| &nbsp;&nbsp;&nbsp;Change in Control | Present Value of full Table A Retirement Benefit | Lump sum | Payment: Thirty (30) days<br> following Change in Control |
| &nbsp;&nbsp;&nbsp;Disability | Accrued Liability Balance, as of Separation from Service | Lump sum | Payment: Thirty (30) days<br> following Separation from Service |

---

**Table C: Death Benefit** 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; Distribution Event | Amount of Benefit | Form of Benefit | Timing of Benefit Distribution\* |
| &nbsp;&nbsp;&nbsp;Death while actively serving | Accrued Liability Balance, as of date of death | Lump sum | Payment (to Beneficiary): Thirty (30) days following Executive's death |
| &nbsp;&nbsp;&nbsp;Death during installment payout of benefit under Tables A or B | Remaining installment payments, if any, under Table A or B. | Annual installments | Payments to Beneficiary continue on same schedule as if Director had lived. |

---

This Amendment shall be effective the 1<sup>st</sup> day of January, 2024. To the extent that any term, provision, or paragraph of the Agreement is not specifically amended herein, or in any other amendment thereto, said term, provision, or paragraph shall remain in full force and effect as set forth in said Agreement.

IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Amendment, had the opportunity to consult with qualified legal counsel, and executed the original thereof on the first day set forth hereinabove, and that, upon execution, each has received a conforming copy.

---

| | |
|:---|:---|
| **BAYCOAST BANK**<br> Fall River, Massachusetts. | **DIRECTOR** |
| By: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Bank officer other than Director) |  |
| Title: |  |

---

## Exhibit 10.7

**Exhibit 10.7** 

BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

**BAYCOAST BANK** 

**SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT** 

THIS SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT ("Agreement") is entered into this 13th day of June, 2014, between BAYCOAST BANK ("Bank"), a bank located in Swansea, Massachusetts, and JAMES F. WALLACE ("Executive").

**Article 1** 

**Benefits Tables** 

The following tables describe the benefits available to the Executive, or the Executive's Beneficiary, upon the occurrence of certain events. Capitalized terms have the meanings given them in Article 3. Except for death, each benefit described is in lieu of any other benefit herein.

**Table A: Retirement Benefit** 

**Normal Retirement Age ("NRA") = Sixty-five (65)** 

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Distribution Event<br>| <br> Amount of Benefit<br>| <br> Form of Benefit<br>|
| &nbsp;&nbsp;&nbsp;Separation from Service following Normal Retirement Age | **S25,000 per year** | Annual installments Payments begin: 1<sup>st</sup> day of the second month following Separation from Service<br>Duration: 15 years |

---

**Table B: Benefit Available Prior to Retirement** 

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Distribution Event<br>| <br> Amount of Benefit<br>| <br> Form of Benefit<br>|
| &nbsp;&nbsp;&nbsp;Voluntary or Involuntary Separation from Service | Vested Accrued Liability Balance (as defined herein), as of date of separation | Lump sum Payment: 1<sup>st</sup> day of the second month following Separation from Service |
| &nbsp;&nbsp;&nbsp;Change in Control | Full Table A Retirement Benefit | Annual<br> Installments<br> Payments begin: 1<sup>st</sup> day of the second month following Normal Retirement Age<br>Duration: 15 years |

---

**Table C: Death Benefit** 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Distribution Event<br>| <br> Amount of Benefit<br>| <br> Form of Benefit<br>| <br> Timing of Benefit Distribution<br>|
| &nbsp;&nbsp;&nbsp;Death while actively employed | Vested Accrued Liability Balance (as defined herein), as of date of death | Lump sum | Payment to Beneficiary: l<sup>sl</sup> day of the second month following death |
| &nbsp;&nbsp;&nbsp;Death prior to commencement of payments under Table B | Vested Accrued Liability Balance (as defined herein), as of date of death | Lump sum | Payment to Beneficiary: 1<sup>st</sup> day of the second month following death |
| &nbsp;&nbsp;&nbsp;Death during installment payout of benefit under Tables A or B | Remaining installment payments, if any, under Table A or B | Lump sum | Payment to Beneficiary: 1<sup>st</sup> day of the second month following death |

---

------

BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

**Article 2** 

**Purpose** 

The purpose of this Agreement is to further the growth and development of the Bank by providing Executive with supplemental retirement income, and thereby encourage Executive's productive efforts on behalf of the Bank. The Bank promises to make certain payments to the Executive, or the Executive's Beneficiary, at retirement, death, or upon some other qualifying event pursuant to the terms of this Agreement.

**Article 3** 

**Definitions and Construction** 

It is intended that this Agreement comply and be construed in accordance with Section 409A of the Internal Revenue Code (the "Code"). It is also intended that the Agreement be "unfunded" and maintained for a select group of management or highly compensated employees of the Bank, for purposes of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and not be construed to provide income to the Executive or Beneficiary under Code prior to actual receipt of benefits.

Where the following words and phrases appear in the Agreement, they shall have the respective meanings set forth below, unless their context clearly indicates to the contrary:

3.1 " <u>Accrued Liability Balance</u> " shall mean the amount accrued by the Bank to fund the future
benefit expense associated with this Agreement. The Bank shall account for this benefit using Generally Accepted Accounting Principles, regulatory accounting guidance of the Bank's primary federal regulator, and other applicable accounting
guidance. Accordingly, the Bank shall establish a liability retirement account for the Executive into which appropriate accruals shall be made using a reasonable discount rate, which may be adjusted from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1 <u>Vested Accrued Liability Balance"</u> shall mean a percentage of the Accrued Liability Balance
earned by the Executive, determined as follows:

---

| | |
|:---|:---|
| Years of Service | Vesting Percentage |
| Less than 2 | 0% |
| 2 | 20% |
| 3 | 40% |
| 4 | 60% |
| 5 | 80% |
| 6 | 100% |

---

3.1 " <u>Beneficiary</u> " shall mean the person(s) designated by the Executive, including the estate
of the Executive, entitled to a benefit under this Agreement.

3.2 " <u>Board</u> " shall mean the Board of Directors of the Bank.

3.3 " <u>Change in Control</u> " shall mean a change in ownership or control of the Bank as defined

------

BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

in Treasury Regulation §1.409A-3(i)(5) or any subsequently applicable published authority or guidance.

3.4 " <u>Effective Date</u> " shall mean **January 1, 2014**.

3.5 " <u>Involuntary Separation from Service</u> " shall mean that the Bank terminates
Executive's employment at any time before Executive's Normal Retirement Age and such termination is not considered a Termination for Cause. A Separation from Service for "Good Reason" will also be treated as an Involuntary
Separation from Service, provided such Separation from Service meets the necessary "safe harbor" conditions as set forth under Section 409A of the Code.

3.6 " <u>Separation from Service</u> " shall mean that the Executive has retired or otherwise had a
termination of employment with the Bank. For purposes of this Agreement, whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the Bank and Executive reasonably anticipated that no
further services would be performed after a certain date, or that the level of bona fide services the Executive would perform after such date would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services
performed over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the Executive has been providing services to the Bank less than 36 months). Facts and
circumstances to be considered in making this determination include, but are not limited to, whether the Executive continues to be treated as an Executive for other purposes (such as continuation of salary and participation in Executive benefit
programs), whether similarly situated service providers have been treated consistently, and whether the Executive is permitted, and realistically available, to perform services for other service recipients in the same line of business. An Executive
will be presumed not to have separated from service where the level of bona fide services performed continues at a level that is fifty percent (50%) or more of the average level of service performed by the Executive during the immediately preceding thirty-six (36) month period. A Separation from Service will not be deemed to have occurred while the Executive is on military leave, sick leave, or other bona fide leave of absence, provided Executive has the
right to continue employment under an applicable statute or by contract.

3.7 " <u>Termination for Cause</u> " shall mean a termination of employment for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Gross negligence or gross neglect of duties to the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the
Executive's employment with the Bank; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Fraud, disloyalty, dishonesty or willful violation of any law or significant Bank policy committed in
connection with the Executive's employment and resulting in a material adverse effect on the Bank.

3.8 " <u>Voluntary Separation from Service</u> " shall mean the Executive terminates employment with
the Bank prior to Normal Retirement Age for reasons other than death, disability, Termination for Cause, or anytime subsequent to a Change in Control.

------

BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

3.9 " <u>Years of Service</u> " shall mean the number of consecutive twelve (12) month periods
the Executive has been actively employed with the Bank on a full-time basis since the date of first employment.

**Article 4** 

**Beneficiary** 

4.1 <u>Beneficiary</u>. Executive shall have the right to name a Beneficiary of the death benefit, if any,
described in Article 1 herein. Executive shall have the right to name such Beneficiary at any time prior to Executive's death and submit it to the Plan Administrator (or Plan Administrator's representative) on the form provided. Once
received and acknowledged by the Plan Administrator, the form shall be effective. The Executive may change a Beneficiary designation at any time by submitting a new form to the Plan Administrator. Any such change shall follow the same rules as for
the original Beneficiary designation and shall automatically supersede the existing Beneficiary form on file with the Plan Administrator.

4.2 <u>Failure to Designate a Beneficiary</u>. If Executive dies without a valid Beneficiary designation on file
with the Plan Administrator, the Executive's surviving spouse, if any, shall become the designated Beneficiary. If Executive has no surviving spouse, death benefits shall be paid to the personal representative of Executive's estate.

4.3 <u>Facility of Distribution</u>. If the Plan Administrator determines in its discretion that a benefit is to
be paid to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of that person's property, the Plan Administrator may direct distribution of such benefit to the guardian, legal representative or
person having the care or custody of such minor, incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any
distribution of a benefit shall be a distribution for the account of the Executive and the Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such distribution amount.

**Article 5** 

**General Limitations** 

5.1 <u>Termination for Cause</u>. Notwithstanding any provision of this Agreement to the contrary, the Bank
shall not distribute any benefit under this Agreement if Executive's employment is terminated due to a Termination for Cause.

5.2 <u>Removal</u>. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not
distribute any benefit under this Agreement if the Executive is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act.

------

BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

**Article 6** 

**Administration of Agreement** 

6.1 <u>Plan Administrator</u>. The Bank shall be the Plan Administrator, unless the Bank appoints a committee to
be the Plan Administrator. The Bank may appoint a Committee ("Committee") of one or more individuals in the employment of Bank for the purpose of discharging the administrative responsibilities of the Bank under the Agreement. The Bank
may remove a Committee member for any reason by giving such member ten (10) days' written notice and may thereafter fill any vacancy thus created. The Committee shall represent the Bank in all matters concerning the administration of this
Plan; provided however, the final authority for all administrative and operational decisions relating to the Plan remains with the Bank.

6.2 <u>Authority of Plan Administrator</u>. The Plan Administrator shall have full power and authority to adopt
rules and regulations for the administration of the Plan, provided they are not inconsistent with the provisions of this Plan, and Section 409A of the Code, to interpret, alter, amend or revoke any rules and regulations so adopted, to enter
into contracts on behalf of the Bank with respect to this Agreement, to make discretionary decisions under this Plan, to demand satisfactory proof of the occurrence of any event that is a condition precedent to the commencement of any payment or
discharge of any obligation under the Plan, and to perform any and all administrative duties under this Plan.

6.3 <u>Recusal</u>. An individual serving as Plan Administrator may be eligible to participate in the Plan, but
such person shall not be entitled to participate in discretionary decisions under Article 7 relating to such person's own interests in the Plan.

6.4 <u>Agents</u>. In the administration of this Agreement, the Plan Administrator may employ agents and
delegate to them such administrative duties as it sees fit, (including acting through a duly appointed representative), and may from time to time consult with counsel who may be counsel to the Bank.

6.5 <u>Binding Effect of Decisions</u>. The decision or action of the Plan Administrator with respect to any
question arising out of or in connection with the administration, interpretation and application of the Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in
the Agreement.

6.6 <u>Indemnity of Plan Administrator</u>. The Bank shall indemnify and hold harmless the Plan Administrator
and its agents against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Agreement, except in the case of willfill misconduct by the Plan Administrator.

6.7 <u>Bank Information</u>. To enable the Plan Administrator to perform its functions, the Bank shall supply
full and timely information to the Plan Administrator on all matters relating to the date and circumstances of any event triggering a benefit hereunder.

------

BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

6.8 <u>Annual Statement</u>. The Plan Administrator shall provide to the Bank, on the schedule set forth in the
Administrative Services Contract, a statement setting forth the benefits to be distributed under this Agreement.

**Article 7** 

**Claims and Review Procedures** 

7.1 <u>Claims Procedure</u>. An Executive or Beneficiary ("Claimant") who has not received benefits
under the Agreement that he or she believes should be distributed shall make a claim for such benefits as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1 <u>Initiation – Written Claim</u>. The Claimant initiates a claim by submitting to the Plan
Administrator a written claim for the benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All other claims must be
made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2 <u>Timing of Plan Administrator Response</u>. The Plan Administrator shall respond to such Claimant within
ninety (90) days after receiving the claim. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional ninety
(90) days by notifying the Claimant in writing, prior to the end of the initial ninety-day (90) period, that an additional period is required. The notice of extension must set forth the special
circumstances and the date by which the Plan Administrator expects to render its decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3 <u>Notice of Decision</u>. If the Plan Administrator denies part or all of the claim, the Plan Administrator
shall notify the Claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reasons for the denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A reference to the specific provisions of the Agreement on which the denial is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A description of any additional information or material necessary for the Claimant to perfect the claim and
an explanation of why it is needed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) An explanation of the Agreement's review procedures and the time limits applicable to such procedures.

7.2 <u>Review Procedure</u>. If the Plan Administrator denies part or all of the claim, the Claimant shall have
the opportunity for a full and fair review by the Plan Administrator of the denial, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.1 <u>Initiation – Written Request</u>. To initiate the review, the Claimant, within sixty (60) days
after receiving the Plan Administrator's notice of denial, must file with the Plan Administrator a written request for review.

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BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.2 <u>Additional Submissions – Information Access</u>. The Claimant shall then have the opportunity to
submit written comments, documents, records and other information relating to the claim. The Plan Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other
information relevant to the Claimant's claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.3 <u>Considerations on Review</u>. In considering the review, the Plan Administrator shall take into account
all materials and information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.4 <u>Timing of Plan Administrator Response</u>. The Plan Administrator shall respond in writing to such
Claimant within sixty (60) days after receiving the request for review. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by
an additional sixty (60) days by notifying the Claimant in writing, prior to the end of the initial sixty-day (60) period, that an additional period is required. The notice of extension must set
forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.5 <u>Notice of Decision</u>. The Plan Administrator shall notify the Claimant in writing of its decision on
review. The Plan Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reasons for the denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A reference to the specific provisions of the Agreement on which the denial is based; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to,
and copies of, all documents, records and other information relevant to the Claimant's claim for benefits.

**Article 8** 

**Amendments and Termination** 

8.1 <u>Amendment or Termination</u>. This Agreement may be amended or terminated unilaterally by the Bank,
except where an amendment or termination would materially reduce the Executive's vested benefit, in which case the Executive's consent shall be required.

8.2 <u>Subsequent Changes to Time and Form of Payment</u>. The Bank may permit a subsequent change to the time
and form of benefit distributions. Any such change shall be considered made only when it becomes irrevocable under the terms of the Agreement. Any change will be considered irrevocable not later than thirty (30) days following acceptance of the
change by the Plan Administrator, subject to the following rules:

------

BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The subsequent deferral election may not take effect until at least twelve (12) months after the date
on which the election is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The payment (except in the case of death, disability, or unforeseeable emergency) upon which the subsequent
deferral election is made is deferred for a period of not less than five (5) years from the date such payment would otherwise have been paid; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of a payment made at a specified time, the election must be made not less than twelve
(12) months before the date the payment is scheduled to be paid.

**Article 9** 

**Miscellaneous** 

9.1 <u>Binding Effect</u>. This Agreement shall bind the Executive and the Bank, and their beneficiaries,
survivors, executors, administrators and transferees.

9.2 <u>No Guarantee of Employment</u>. This Agreement is not a contract for employment. It does not give the
Executive the right to remain as an executive of the Bank, nor does it interfere with the Bank's right to discharge the Executive. It also does not require the Executive to remain an executive nor interfere with the Executive's right to
terminate employment at any time.

9.3 <u>Non-Transferability</u>. Benefits under this Agreement cannot be
sold, transferred, assigned, pledged, attached or encumbered in any manner.

9.4 <u>Tax Withholding</u>. The Bank shall withhold any taxes that are required to be withheld from the benefits
provided under this Agreement. The Executive acknowledges that the Bank's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).

9.5 <u>Applicable Law</u>. The Agreement and all rights hereunder shall be governed by the laws of the state
where the Bank's primary corporate headquarters is located, except to the extent preempted by the laws of the United States of America.

9.6 <u>Unfunded Arrangement</u>. The Executive is a general unsecured creditor of the Bank for the distribution
of benefits under this Agreement. The benefits represent the mere promise by the Bank to distribute such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors. Any insurance on the Executive's life or other informal funding asset is a general asset of the Bank to which the Executive has no preferred or secured claim.

9.7 <u>Reorganization</u>. The Bank shall not merge or consolidate into or with another bank, or reorganize, or
sell substantially all of its assets to another bank, firm, or person unless such succeeding or continuing bank, firm, or person agrees to assume and discharge the obligations of the Bank under this Agreement. Upon the occurrence of such event, the
term "Bank" as used in this Agreement shall be deemed to refer to the successor or survivor bank.

------

BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

9.8 <u>Entire Agreement</u>. This Agreement constitutes the entire agreement between the Bank and the Executive
as to the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein.

9.9 <u>Interpretation</u>. Wherever the fulfillment of the intent and purpose of this Agreement requires, and
the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural.

9.10 <u>Alternative Action</u>. In the event it shall become impossible for the Bank or the Plan Administrator to
perform any act required by this Agreement, the Bank or Plan Administrator may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Bank.

9.11 <u>Headings</u>. Article and section headings are for convenient reference only and shall not control or
affect the meaning or construction of any of its provisions.

9.12 <u>Validity</u>. In case any provision of this Agreement shall be illegal or invalid for any reason, said
illegality or invalidity shall not affect the remaining parts hereof, but this Agreement shall be construed and enforced as if such illegal and invalid provision has never been inserted herein.

9.13 <u>Notice</u>. Any notice or filing required or permitted to be given to the Bank or Plan Administrator
under this Agreement shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

<u> </u>

<u> </u>

<u> </u>

<u> </u>

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

Any notice or filing required or permitted to be given to the Executive under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Executive.

9.14 <u>Opportunity to Consult with Independent Advisors</u>. The Executive acknowledges that he has been
afforded the opportunity to consult with independent advisors of his choosing including, without limitation, accountants or tax advisors and counsel regarding both the benefits granted to him under the terms of this Agreement and the (i) terms
and conditions which may affect the Executive's right to these benefits, and (ii) personal tax effects of such benefits including, without limitation, the effects of any federal or state taxes, Section 280G of the Code,
Section 409A of the Code, and any other taxes, costs, expenses or liabilities whatsoever related to such benefits, which in any of the foregoing instances the Executive acknowledges and agrees shall be the sole responsibility of the Executive
notwithstanding any other term or provision of this Agreement. The Executive

------

BAYCOAST BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

further acknowledges and agrees that the Bank shall have no liability whatsoever related to any such personal tax effects or other personal costs, expenses, or liabilities applicable to the Executive and further specifically waives any right for himself or herself, and his or her heirs, beneficiaries, legal representatives, agents, successor and assign to claim or assert liability on the part of the Bank related to the matters described above in this Section 9.14. The Executive further acknowledges that he has read, understands and consents to all of the terms and conditions of this Agreement, and that he enters into this Agreement with a full understanding of its terms and conditions. <br>

9.15 <u>Restriction on Timing of Distribution</u>. Solely to the extent necessary to avoid penalties under
Section 409A, distributions under this Agreement may not commence earlier than six (6) months after a Separation from Service (as described under the "Separation from Service" provision herein) if, pursuant to Internal Revenue
Code Section 409A, the participant hereto is considered a "specified employee" of a publicly-traded company. In the event a distribution is delayed pursuant to this Section, the originally scheduled distribution shall be delayed for
six (6) months, and shall commence instead on the first day of the seventh month following Separation from Service. If payments are scheduled to be made in installments, the first six (6) months of installment payments shall be delayed,
aggregated, and paid instead on the first day of the seventh month, after which all installment payments shall be made on their regular schedule. If payment is scheduled to be made in a lump sum, the lump sum payment shall be delayed for six
(6) months and instead be made on the first day of the seventh month.

9.16 <u>Certain Accelerated Payments</u>. The Bank may make any accelerated distribution permissible under
Treasury Regulation 1.409A-3(j)(4), provided that such distribution(s) meets the requirements of Section 1.409A-3(j)(4).

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated above.

---

| | | |
|:---|:---|:---|
| **EXECUTIVE:** | **BANK:**<br>**BayCoast Bank** | **BANK:**<br>**BayCoast Bank** |
| ![LOGO](g122170g01a20.jpg) <br>| **By** | ![LOGO](g122170g01a21.jpg) <br>|
| **James F. Wallace** |  |  |
|  | **Title** | **President & CEO** |

---

------

**<u>8-K DISCLOSURE NOTICE</u>** 

For banks subject to SEC regulation, SEC rules may require that certain disclosures be made by your bank upon implementation of this or any other executive or director compensation program. Banks should consult with SEC counsel as to applicability of SEC rules to this Agreement.

**<u>Important Notice about the Practice of Law and Accounting</u>** 

The attached document is not to be considered legal, tax, or accounting advice for any purpose. It is intended to be a sample document to facilitate discussion between you and your legal, tax, and accounting advisors. NFP Executive Benefits does not practice law or accounting. It is strongly recommended that you seek review by outside counsel before signing this Agreement.

------

**AMENDMENT** 

**TO THE** 

**BAYCOAST BANK** 

**SUPPLEMENT EXECUTIVE RETIREMENT AGREEMENT** 

THIS AMENDMENT made and entered into this 9<sup>th</sup> day of February, 2021 , by and between BAYCOAST BANK, a bank located in Swansea, Massachusetts ("Bank") and JAMES F. WALLACE ("Executive"), shall effectively amend the BayCoast Bank Supplement Executive Retirement Agreement dated as of 13<sup>th</sup> day of June, 2014 ("Agreement"), as specifically set forth herein. Pursuant to Article 1, Table A of the Agreement, the Bank and the Executive hereby adopt the following amendment:

I.) Article 1, Table A, <u>Retirement Benefit at Normal Retirement Age</u>, shall be modified to delete the words "$25,000.00 per year" and replace them with the following:

" **$100,000.00 per year** "

The Effective Date of this Amendment shall be December 31, 2020. To the extent that any term, provision, or paragraph of the Agreement is not specifically amended herein , or in any other amendment thereto, said term, provision, or paragraph shall remain in full force and effect as set faith in said Agreement.

IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Amendment , had the opportunity to consult with qualified legal counsel, and executed the original thereof on the first day set forth hereinabove, and that, upon execution, each has received a conforming copy.

---

| | | |
|:---|:---|:---|
| **EXECUTIVE:** |  | **BANK:**<br>**BayCoast Bank** |
| ![LOGO](g122170g00v01.jpg) <br>| **By** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g122170g00v02.jpg) <br>|
| **James F. Wallace** |  | **Name: Nicholas M. Christ** |
|  |  | **Title: President & CEO** |

---

## Exhibit 10.8

**Exhibit 10.8** 

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

**BAYCOAST BANK** 

**ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT** 

THIS ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT ("Agreement") is made and entered into this _____ day of ________, 20___, by and between BAYCOAST BANK ("Bank"), a bank located in Swansea, Massachusetts, and __________________ ("Executive").

The purpose of this Agreement is to retain and reward the Executive, by dividing the death proceeds of certain life insurance policies which are owned by the Bank on the life of the Executive with the designated beneficiary of the Executive. The Bank will pay the life insurance premiums from its general assets.

**Article 1** 

**Definitions** 

Whenever used in this Agreement, the following terms shall have the meanings specified:

1.1 " <u>Bank's Interest</u> " means the benefit set forth in Section 2.1.

1.2 " <u>Base Salary</u> " means the annual cash compensation relating to services performed during
any calendar year, excluding distributions from nonqualified deferred compensation plans, bonuses, commissions, overtime, fringe benefits, stock options, relocation expenses, incentive payments, non-monetary awards, director fees and other fees, and automobile and other allowances paid to an Executive for employment services rendered (whether or not such allowances are included in the Employee's gross income). Base Salary shall be calculated
before reduction for compensation voluntarily deferred or contributed by the Executive pursuant to all qualified or non-qualified plans of any Employer and shall be calculated to include amounts not otherwise
included in the Executive's gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by any Employer; provided, however, that all such amounts will be included in compensation only to the extent that had
there been no such plan, the amount would have been payable in cash to the Employee.

1.3 " <u>Beneficiary</u> " means each designated person, or the estate of the deceased Executive,
entitled to benefits, if any, upon the death of the Executive.

1.4 " <u>Beneficiary Designation Form</u> " means the form established from time to time by the Plan
Administrator that the Executive completes, signs and returns to the Plan Administrator to designate one or more Beneficiaries.

1.5 " <u>Board</u> " means the Board of Directors of the Bank as from time to time constituted.

1.6 " <u>Effective Date</u> " means ________________.

1.7 " <u>Executive's Interest</u> " means the benefit set forth in Section 2.2.

------

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

1.8 " <u>Insured</u> " means the individual Executive whose life is insured.

1.9 " <u>Insurer</u> " means the insurance company issuing the Policy on the life of the Executive.

1.10 " <u>Net Death Proceeds</u> " means the total death proceeds of the Policy minus the greater of
(i) the cash surrender value or (ii) the aggregate premiums paid by the Bank.

1.11 " <u>Policy</u> " or " <u>Policies</u> " means the individual insurance policy or
policies adopted by the Bank for purposes of insuring the Executive's life under this Agreement.

1.12 " <u>Termination of Employment</u> " means the termination of the Executive's service with
the Bank for reasons other than death.

**Article 2** 

**Policy Ownership and Interests** 

2.1 <u>Bank's Interest</u>. The Bank shall own the Policies and shall have the right to exercise all
incidents of ownership, except as limited herein. The Bank shall be the beneficiary of the remaining death proceeds of the Policies after the Executive's Interest is determined according to Section 2.2 below.

2.2 <u>Executive's Interest</u>. Upon Executive's death while employed by the Bank, the
Executive's Beneficiary shall be entitled to an amount of death proceeds equal to **the lesser of one times (1x's) the Executive's final Base Salary or one hundred percent (100%) of the Net Death Proceeds**. In no event shall
the death benefit hereunder exceed the Net Death Proceeds of the Policy. The Executive, or the Executive's assignee, shall have the right to designate the Beneficiary pursuant to the terms of this Agreement. The Executive shall also have the
right to elect and change settlement options with respect to the Executive's Interest by providing written notice to the Bank and the Insurer. Upon the Executive's Termination of Employment, this Agreement shall automatically terminate
and no death benefit shall be due hereunder.

2.3 <u>Bank has no Obligation to Pay</u>. Death proceeds payable under this Agreement shall be paid solely by
the Insurer from the proceeds of any Policy (ies) on the life of the Insured. In no event shall the Bank be obligated to pay a death benefit under this Agreement from its general funds. Should an Insurer refuse or be unable to pay death proceeds
endorsed to Insured under the express terms of this Agreement, or should the Bank cancel the Policy (ies) for any reason, Executive's Beneficiary (ies) shall not be entitled to a death benefit.

**Article 3** 

**Forfeiture of Benefit** 

3.1 <u>Forfeiture of Benefit</u>. Notwithstanding anything to the contrary herein, the Executive will forfeit
the benefit described in Section 2.2 if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any provision in Article 6 applies;

------

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Executive provides written notice to the Bank declining further participation in the Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the Executive's Termination of Employment.

**Article 4** 

**Comparable Coverage** 

4.1 <u>Offer to Purchase</u>. If the Bank for any reason terminates or cancels a Policy, this Agreement shall
automatically terminate and the Executive's Beneficiary shall not be entitled to a benefit hereunder. The Bank shall also give the Executive at least thirty (30) days to purchase such Policy. The purchase price shall be the fair market
value of the Policy, as determined under Treasury Reg. §1.61-22(g)(2) or any subsequent applicable authority. Executive agrees that this Agreement shall satisfy the written notice requirement.

**Article 5** 

**Premiums and Imputed Income** 

5.1 <u>Premium Payment</u>. The Bank shall pay all premiums due on all Policies.

5.2 <u>Economic Benefit</u>. The Bank shall determine the economic benefit attributable to the Executive based
on the life insurance premium factor for the Executive's age multiplied by the aggregate death benefit payable to the Beneficiary. The "life insurance premium factor" is the minimum factor applicable under guidance published
pursuant to Treasury Reg. § 1.61-22(d)(3)(ii) or any subsequently applicable authority.

5.3 <u>Imputed Income</u>. The Bank shall impute the economic benefit to the Executive on an annual basis, by
adding the economic benefit to the Executive's W-2.

**Article 6** 

**General Limitations** 

6.1 <u>Termination for Cause</u>. Notwithstanding any provision of this Agreement to the contrary, the Executive
shall forfeit any right to a benefit under this Agreement if the Bank terminates the Executive's employment for cause. Termination of the Executive's employment "for Cause" shall mean termination because of personal
dishonesty, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order or material breach of any provision of the Agreement. For purposes of this paragraph, no act or failure to act on the Executive's part shall be
considered "willful" unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive's action or omission was in the best interest of the Bank.

6.2 <u>Removal</u>. Notwithstanding any provision of this Agreement to the contrary, the Executive's
rights in the Agreement shall terminate if the Executive is subject to a final

------

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act ("FDIA").

6.3 <u>Suicide or Misstatement</u>. No benefits shall be payable if the Executive commits suicide during the
Policy exclusion period, or if the insurance company denies coverage (i) for material misstatements of fact made by the Executive on any application for life insurance purchased by the Bank, or (ii) for any other reason; provided, however
that the Bank shall evaluate the reason for the denial, and upon advice of legal counsel and in its sole discretion, consider judicially challenging any denial.

**Article 7** 

**Beneficiaries** 

7.1 <u>Beneficiary</u>. The Executive shall have the right, at any time, to designate a Beneficiary(ies) to
receive any benefits payable under the Agreement upon the death of the Executive. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other Agreement of the Bank in which the
Executive participates.

7.2 <u>Beneficiary Designation; Change</u>. The Executive shall designate a Beneficiary by completing and
signing the Beneficiary Designation Form, and delivering it to the Bank or its designated agent. The Executive's beneficiary designation shall be deemed automatically revoked if the Executive names a spouse as Beneficiary and the marriage is
subsequently dissolved. The Executive shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Bank's rules and procedures, as in effect from time to
time. Upon the acceptance by the Bank of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Bank shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and
accepted by the Bank prior to the Executive's death.

7.3 <u>Acknowledgment</u>. No designation or change in designation of a Beneficiary shall be effective until
received, accepted and acknowledged in writing by the Bank or its designated agent.

7.4 <u>No Beneficiary Designation</u>. If the Executive dies without a valid designation of beneficiary, or if
all designated Beneficiaries predecease the Executive, then the Executive's surviving spouse shall be the designated Beneficiary. If the Executive has no surviving spouse, the benefits shall be made payable to the personal representative of
the Executive's estate.

7.5 <u>Facility of Payment</u>. If the Bank determines in its discretion that a benefit is to be paid to a
minor, to a person declared incompetent, or to a person incapable of handling the disposition of that person's property, the Bank may direct payment of such benefit to the guardian, legal representative or person having the care or custody of
such minor, incompetent person or incapable person. The Bank may require proof of incompetence,

------

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Executive and the Executive's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Agreement for such payment amount. <br>

**Article 8** 

**Assignment** 

The Executive may irrevocably assign without consideration all of the Executive's Interest in this Agreement to any person, entity, or trust. In the event the Executive shall transfer all of the Executive's Interest, then all of the Executive's Interest in this Agreement shall be vested in the Executive's transferee, who shall be substituted as a party hereunder, and the Executive shall have no further interest in this Agreement. Notwithstanding any assignment made by the Executive under this Article 8, for the purpose of determining benefits payable under this Agreement, Executive's employment status shall continue to control the terms of any vesting and/or forfeiture of benefits.

**Article 9** 

**Insurer** 

The Insurer shall be bound only by the terms of its given Policy. The Insurer shall not be bound by or deemed to have notice of the provisions of this Agreement. The Insurer shall have the right to rely on the Bank's representations with regard to any definitions, interpretations or Policy interests as specified under this Agreement.

**Article 10** 

**Claims and Review Procedure** 

10.1 <u>Claims Procedure</u>. The Executive or Beneficiary ("Claimant") who has not received benefits
under the Agreement that he or she believes should be paid shall make a claim for such benefits as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1 <u>Initiation – Written Claim</u>. The Claimant initiates a claim by submitting to the Bank a written
claim for the benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All other claims must be made within one hundred
eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2 <u>Timing of Bank Response</u>. The Bank shall respond to such Claimant within ninety (90) days after
receiving the claim. If the Bank determines that special circumstances require additional time for processing the claim, the Bank can extend the response period by an additional ninety (90) days by notifying the Claimant in writing, prior to
the end of the initial ninety (90) day period, that an

------

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

additional period is required. The notice of extension must set forth the special circumstances and the date by which the Bank expects to render its decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3 <u>Notice of Decision</u>. If the Bank denies part or all of the claim, the Bank shall notify the Claimant
in writing of such denial. The Bank shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reasons for the denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A reference to the specific provisions of the Agreement on which the denial is based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A description of any additional information or material necessary for the Claimant to perfect the claim and
an explanation of why it is needed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) An explanation of the Agreement's review procedures and the time limits applicable to such procedures.

10.2 <u>Review Procedure</u>. If the Bank denies part or all of the claim, the Claimant shall have the
opportunity for a full and fair review by the Bank of the denial, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1 <u>Initiation – Written Request</u>. To initiate the review, the Claimant, within sixty (60) days
after receiving the Bank's notice of denial, must file with the Bank a written request for review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2 <u>Additional Submissions – Information Access</u>. The Claimant shall then have the opportunity to
submit written comments, documents, records and other information relating to the claim. The Bank shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information
relevant to the Claimant's claim for benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.3 <u>Considerations on Review</u>. In considering the review, the Bank shall take into account all materials
and information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.4 <u>Timing of Bank's Response</u>. The Bank shall respond in writing to such Claimant within sixty
(60) days after receiving the request for review. If the Bank determines that special circumstances require additional time for processing the claim, the Bank can extend the response period by an additional sixty (60) days by notifying the
Claimant in writing, prior to the end of the initial sixty (60) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Bank expects to render its decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.5 <u>Notice of Decision</u>. The Bank shall notify the Claimant in writing of its decision on review. The Bank
shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

------

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The specific reasons for the denial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A reference to the specific provisions of the Agreement on which the denial is based; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to,
and copies of, all documents, records and other information relevant to the Claimant's claim for benefits.

**Article 11** 

**Amendments and Termination** 

Notwithstanding anything to the contrary herein, the Bank may amend or terminate this Agreement only if: (i) continuation of the Agreement would cause significant financial harm to the Bank, (ii) the Executive agrees to such action, (iii) the Bank's banking regulator(s) issues a written directive to amend or terminate the Agreement; or (iv) changes in tax, accounting, regulatory or other rules and regulations governing this Agreement are detrimental to the Bank.

**Article 12** 

**Administration** 

12.1 <u>Plan Administrator</u>. This Agreement shall be administered by a Plan Administrator which shall consist
of the Board, or such committee or persons as the Board may choose. The Plan Administrator shall also have the discretion and authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of
this Agreement and (ii) decide or resolve any and all questions including interpretations of this Agreement, as may arise in connection with this Agreement.

12.2 <u>Agents</u>. In the administration of this Agreement, the Plan Administrator may employ agents and
delegate to them such administrative duties as it sees fit, (including acting through a duly appointed representative), and may from time to time consult with counsel who may be counsel to the Bank.

12.3 <u>Binding Effect of Decisions</u>. The decision or action of the Plan Administrator with respect to any
question arising out of or in connection with the administration, interpretation and application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in
this Agreement.

12.4 <u>Indemnity of Plan Administrator</u>. The Bank shall indemnify and hold harmless any party contracted for
the purposes of assisting the Plan Administrator in performing its duties under this Agreement against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Agreement, except in
the case of willful misconduct by such contracted party.

12.5 <u>Information</u>. To enable any party contracted for the purposes of assisting the Plan Administrator in
performing its duties under this Agreement to perform its functions, the Bank shall supply full and timely information to such contracted party on all matters

------

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

relating to the Base Salary of the Executive, the date and circumstances of the retirement, Disability, death or termination of the Executive, and such other pertinent information as such contracted party may reasonably require.

**Article 13** 

**Miscellaneous** 

13.1 <u>Binding Effect</u>. This Agreement shall bind the Executive and the Bank, their beneficiaries, survivors,
executors, administrators and transferees and any Beneficiary.

13.2 <u>No Guarantee of Employment</u>. This Agreement is not an employment policy or contract. It does not give
the Executive the right to remain an Executive of the Bank, nor does it interfere with the Bank's right to discharge the Executive. It also does not require the Executive to remain an Executive nor interfere with the Executive's right to
terminate employment at any time.

13.3 <u>Applicable Law</u>. The Agreement and all rights hereunder shall be governed by and construed according
to the laws of the state where the principal offices of the Bank reside, except to the extent preempted by the laws of the United States of America.

13.4 <u>Reorganization</u>. The Bank shall not merge or consolidate into or with another company, or reorganize,
or sell substantially all of its assets to another company, firm or person unless such succeeding or continuing company, firm or person agrees to assume and discharge the obligations of the Bank under this Agreement. Upon the occurrence of such
event, the term "Bank" as used in this Agreement shall be deemed to refer to the successor or survivor company.

13.5 <u>Notice</u>. Any notice or filing required or permitted to be given to the Bank under this Agreement shall
be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or the receipt for registration or certification. Any notice or filing required or permitted to be given to the Executive under this Agreement shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Executive.

13.6 <u>Entire Agreement</u>. This Agreement, along with the Executive's Beneficiary Designation Form,
constitutes the entire agreement between the Bank and the Executive as to the subject matter hereof. No rights are granted to the Executive under this Agreement other than those specifically set forth herein.

------

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated above.

---

| | |
|:---|:---|
| **EXECUTIVE:** | **BANK:** |
|  | **BayCoast Bank** |
| | **By**  |
|  | **Title <u> </u>**  |

---

------

BAYCOAST BANK

ENDORSEMENT SPLIT DOLLAR LIFE INSURANCE AGREEMENT

**Note: This agreement has been entered into with each Named Executive Officer** 

**Nicholas M. Christ, Marie Pellegrino and Carl Taber**

## Ex-21

**Exhibit 21** 

**Subsidiaries of the Registrant** 

The following is a list of the subsidiaries of Narragansett Bancorp, Inc.:

---

| | |
|:---|:---|
| Name | State of Incorporation |
| BayCoast Bank | Massachusetts |
| BayCoast Mortgage Company, LLC\* | Massachusetts |
| BayCoast Insurance LLC\* | Massachusetts |
| Plimoth Trust Company, LLC\* | Maine |
| BayCoast Insurance LLC\* | Delaware |
| Priority Funding, LLC\* | Massachusetts |
| Teamwork Funding, LLC\* | Arizona |
| Troy Security Corporation\* | Massachusetts |
| B.F.R. Corp.\* | Massachusetts |
| Stack Ally, LLC\* | Delaware |
| BCBOZ Investments, LLC\* | Massachusetts |
| 1851 Corporation\* | Massachusetts |

---

\* Subsidiary of BayCoast Bank

## Exhibit 23.2

**Exhibit 23.2**![LOGO](g122170g00v03.jpg)

June 12, 2026

Board of Trustees

Narragansett Financial Corporation

Board of Directors

Narragansett Bancorp, Inc.

BayCoast Bank

330 Swansea Mall Drive

Swansea, Massachusetts 02777

Members of the Boards of Trustees and Directors:

We hereby consent to the use of our firm's name in the Registration Statement on Form S-1, and any amendments thereto, to be filed with the Securities and Exchange Commission. We also hereby consent to the inclusion of, summary of and references to our Valuation Appraisal Report and any Valuation Appraisal Report Updates in such filings including the prospectus of Narragansett Bancorp, Inc. We also consent to the reference to our firm under the heading "Experts" in the prospectus.

---

| |
|:---|
| Sincerely, |
| RP<sup>®</sup> FINANCIAL, LC. |
| ![LOGO](g122170g00v04.jpg) |

---

---

| | |
|:---|:---|
|  **Washington Headquarters** |  |
|  1311-A Dolley Madison Boulevard | Telephone: (703) 528-1700 |
|  Suite 2A | Fax No.: (703) 528-1788 |
|  McLean, VA 22101 | Toll-Free No.: (866) 723-0594 |
|  www.rpfinancial.com | E-Mail: mail@rpfinancial.com |

---

## Exhibit 23.3

**Exhibit 23.3** 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the inclusion in this Registration Statement on Form S-1 and related Prospectus of Narragansett Bancorp, Inc. of our report dated June 8, 2026, relating to the consolidated financial statements of Narragansett Financial Corporation as of December 31, 2025 and 2024 and for the years then ended.

We also consent to the reference to our firm under the heading "Experts" in such Prospectus.

![LOGO](g122170g0610053138602.jpg)

Wolf & Company, P.C.

Boston, Massachusetts

June 12, 2026

## Exhibit 99.1

**Exhibit 99.1**![LOGO](g122170g00v05.jpg)

April 5, 2026

Ms. Marie Pellegrino

President

BayCoast Bank

330 Swansea Mall Drive

Swansea, Massachusetts 02777

Dear Ms. Pellegrino:

This letter sets forth the agreement whereby BayCoast Bank, Swansea, Massachusetts ("BayCoast" or the "Bank"), a wholly-owned subsidiary of Narragansett Financial Corporation ("Narragansett" or the "Company"), has engaged RP<sup>®</sup> Financial, LC. ("RP Financial") for independent conversion appraisal services in conjunction with the proposed minority stock offering. The specific appraisal services to be rendered, along with the timing and fee structure for these appraisal services, are described below. The undersigned will direct this engagement and will be assisted by other members of our staff, including William E. Pommerening, Managing Director, and Gregory E. Dunn, Director.

***<u>Description of Appraisal Services</u>***

RP Financial will conduct financial due diligence, including interviews of senior management and reviews of historical and pro forma financial information and other documents and records, to gain insight into the operations, financial condition, profitability, market area, risks and various internal and external factors to be considered in estimating the pro forma market value of the Company in accordance with the applicable regulatory appraisal guidelines.

RP Financial will prepare a detailed written valuation report of the Company that will be fully consistent with applicable regulatory appraisal guidelines and standard pro forma valuation practices, taking into consideration the intended minority stock offering. The appraisal report will include an analysis of the Company's financial condition and operating results, as well as an assessment of the Company's interest rate risk, credit risk and liquidity risk. The appraisal report will incorporate an evaluation of the Company's business strategies, market area, prospects for the future and the intended use of proceeds both in the short term and over the longer term. A peer group analysis relative to certain relatively comparable publicly-traded banking companies will be conducted for the purpose of determining appropriate valuation adjustments for the Company relative to the peer group's pricing ratios.

We will review pertinent sections of the applications and offering documents and conduct discussions with representatives of the Company to obtain necessary data and information for the appraisal, including the impact of key deal elements on the appraised value, such as dividend policy, use of proceeds and reinvestment rate, tax rate, offering expenses, characteristics of stock plans and charitable foundation contribution, partial repayment of holding company debt, and other key aspects.

The original appraisal report will establish a midpoint pro forma market value in accordance with the applicable regulatory requirements. The appraisal report will provide the basis for the Company to determine the size of the minority stock offering. The appraisal report may be periodically updated throughout the conversion process, and, in accordance with the conversion regulations, there

---

| | |
|:---|:---|
| **<u>Washington Headquarters</u>** | Direct: (703) 647-6543 |
| 1311-A Dolley Madison Blvd., Suite 2A | Main: (703) 528-1700 |
| McLean, VA 22101 | Cell: (703) 989-4665 |
| www.rpfinancial.com | rriggins@rpfinancial.com |

---

------

*Ms. Marie Pellegrino* 

*April 5, 2026* 

 *Page 2* 

will be at least one updated appraisal prepared at the closing of the minority stock offering to determine the number of shares to be issued.

RP Financial agrees to deliver the valuation appraisal and subsequent updates, in writing, to the Company at the above address in conjunction with the filing of the regulatory application. Subsequent updates will be filed promptly as certain events occur which would warrant the preparation and filing of such valuation updates. Further, RP Financial agrees to perform such other services as are necessary or required in connection with the regulatory review of the appraisal and respond to the regulatory comments, if any, regarding the valuation appraisal and subsequent updates. RP Financial will also prepare the pro forma presentations for inclusion in the prospectus, reflecting the original appraisal and subsequent updates, as appropriate.

RP Financial expects to formally present the appraisal report, including the appraisal methodology, peer group selection and assumptions, to the Board of Directors (the "Board") for review and consideration. If appropriate, RP Financial will present subsequent updates to the Board. It is understood that this appraisal review may be presented virtually.

***<u>Fee Structure and Payment Schedule</u>***

The Company agrees to pay RP Financial a fixed fee of $125,000 for preparation and delivery of the original appraisal report and $10,000 for each subsequent update, plus reimbursable expenses. Payment of these fees shall be made according to the following schedule:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $15,000 upon execution of this letter of agreement engaging RP Financial's appraisal services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $110,000 upon delivery of the completed original appraisal report; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $10,000 for each valuation update that may be required, provided that the transaction is not delayed for the reasons
described below. It is anticipated that there will be at least one appraisal update report, specifically the update to be prepared in conjunction with the completion of the minority stock offering.

The Company will reimburse RP Financial for reasonable out-of-pocket expenses incurred in preparation of the original appraisal and subsequent updates. Such out-of-pocket expenses will likely include data, computer, copying/printing, travel and reasonable counsel fees and will not exceed $7,500 in the aggregate, without the Company's authorization to exceed this level.

In the event the Company shall, for any reason, discontinue the minority stock offering prior to delivery of the completed documents set forth above and payment of the respective progress payment fees, the Company agrees to compensate RP Financial according to RP Financial's standard billing rates for consulting services based on accumulated and verifiable time expenses, not to exceed the respective fee caps noted above, after giving full credit to the initial retainer fee. RP Financial's standard billing rates range from $125 per hour for research associates to $600 per hour for managing directors.

If during the course of the proposed transaction, unforeseen events occur so as to materially change the nature or the work content of the services described in this contract, the terms of said contract shall be subject to renegotiation by the Company and RP Financial. Such unforeseen events shall include, but not be limited to, material changes to the structure of the transaction such as

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*Ms. Marie Pellegrino* 

*April 5, 2026* 

 *Page 3* 

inclusion of a simultaneous business combination transaction, material changes in the conversion regulations, appraisal guidelines or processing procedures as they relate to conversion appraisals, material changes in management or procedures, operating policies or philosophies, and excessive delays or suspension of processing of conversion applications by the regulators such that completion of the conversion transaction requires the preparation by RP Financial of a new appraisal.

***<u>Covenants, Representations and Warranties</u>***

The Company and RP Financial agree to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company agrees to make available or to supply to RP Financial such information with respect to its business and financial condition as RP Financial may reasonably request in order to provide the aforesaid valuation. All information provided by the Company to RP Financial shall remain strictly confidential (unless such information is otherwise made available to the public), and if the minority stock offering is not consummated, or the services of RP Financial are terminated hereunder, RP Financial shall promptly return to the Bank the original and any copies of such information, other than copies automatically generated by computer system backups.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. RP Financial represents that it will comply with any and all federal, state and local laws, regulations and ordinances governing or relating to the privacy, security, confidentiality or integrity of personal information, data, and confidential information ("Privacy Laws"). RP Financial shall implement such physical, administrative and technical safeguards as shall be necessary to ensure the security and confidentiality of any personal information, data, and confidential information it receives, including maintaining written policies and procedures detailing its compliance with any applicable Privacy Laws. Such written policies and procedures shall be made available to the Company for review upon request. The Company represents and warrants to RP Financial that any information provided to RP Financial does not and will not, to the best of the Company's knowledge, at the times it is provided to RP Financial, contain any untrue statement of a material fact or in response to informational requests by RP Financial fail to state a material fact necessary to make the statements therein not false or misleading in light of the circumstances under which they were made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. (a) The Company agrees that it will indemnify and hold harmless RP Financial, any affiliates of RP Financial, the respective members, officers, agents and employees of RP Financial or their successors and assigns who act for or on behalf of RP Financial in connection with the services called for under this agreement (hereinafter referred to as "RP Financial"), from and against any and all losses, claims, damages and liabilities (including, but not limited to, reasonable attorneys fees, and all losses and expenses in connection with claims under the federal securities laws) attributable to (i) any untrue statement of a material fact contained in the financial statements or other information furnished or otherwise provided by the Company to RP Financial, either orally or in writing; (ii) the omission of a material fact from the financial statements or other information furnished or otherwise made available by the Company to RP Financial; or (iii) any action or omission to act by the Company, or the Company's respective officers, directors, employees or agents, which action or omission is due to the bad faith, willful misconduct, or gross negligence of the Company. The Company will be under no obligation to indemnify RP Financial hereunder if a court determines that RP Financial was grossly negligent, engaged in willful misconduct, or acted in bad faith with respect to any actions or omissions of RP Financial related to a matter for which indemnification is sought hereunder. Reasonable time devoted by RP Financial to situations for which RP Financial is deemed entitled to indemnification

------

*Ms. Marie Pellegrino* 

*April 5, 2026* 

 *Page 4* 

hereunder, shall be an indemnifiable cost payable by the Company at the normal hourly professional rate chargeable by such employee.

Notwithstanding anything in this agreement to the contrary, RP Financial shall promptly notify the Company immediately via telephone, to be followed up in writing, of any actual, suspected or threatened security breach incident involving confidential information, and shall cooperate fully in investigating and responding to each successful or attempted security breach. RP Financial will defend, indemnify and hold the Company harmless from and against all third party claims, losses, damages and liabilities arising out of a security breach and shall pay for all costs associated with responding to such breach, including without limitation, all legal, forensic, public relations, consultancy and other expert fees incurred by the Company, the costs of any and all notifications that the Company sends to individuals whose information was affected by any incident, and the cost of an annual credit monitoring services subscription for all such individuals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) RP Financial shall give written notice to the Company of such claim or facts within thirty days of the assertion of any claim or discovery of material facts upon which RP Financial intends to base a claim for indemnification hereunder, including the name of counsel that RP Financial intends to engage in connection with any indemnification related matter. In the event the Company elects, within seven days of the receipt of the original notice thereof, to contest such claim by written notice to RP Financial, the Company shall not be obligated to make payments under Section 3(c), but RP Financial will be entitled to be paid any amounts payable by the Company hereunder within five days after the final non-appealable determination of such contest either by written acknowledgement of the Company or a decision of a court of competent jurisdiction or alternative adjudication forum, unless it is determined in accordance with Section 3(c) hereof that RP Financial is not entitled to indemnity hereunder. If the Company does not so elect to contest a claim for indemnification by RP Financial hereunder, RP Financial shall (subject to the Company's receipt of the written statement and undertaking under Section 3(c) hereof) be paid promptly and in any event within thirty days after receipt by the Company of detailed billing statements or invoices for which RP Financial is entitled to reimbursement under Section 3(c) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the Company's right to contest under Section 3(b) hereof, the Company shall pay for or reimburse the reasonable expenses, including reasonable attorneys' fees, incurred by RP Financial in advance of the final disposition of any proceeding within thirty days of the receipt of such request if RP Financial furnishes the Company: (1) a written statement of RP Financial's good faith belief that it is entitled to indemnification hereunder; (2) a written undertaking to repay the advance if it ultimately is determined in a final, non-appealable adjudication of such proceeding that it or he is not entitled to such indemnification; and (3) a detailed invoice of the expenses for which reimbursement is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event the Company does not pay any indemnified loss or make advance reimbursements of expenses in accordance with the terms of this agreement, RP Financial shall have all remedies available at law or in equity to enforce such obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any indemnification payments to be made by the Company hereunder are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act (12 USC 1828(k)) and the Regulations promulgated thereunder by the Federal Deposit Insurance Corporation (12 CFR Part 359).

------

*Ms. Marie Pellegrino* 

*April 5, 2026* 

 *Page 5* 

This agreement constitutes the entire understanding of the Company and RP Financial concerning the subject matter addressed herein, and such contract shall be governed and construed in accordance with the Commonwealth of Massachusetts. This agreement may not be modified, supplemented or amended except by written agreement executed by both parties.

The Company and RP Financial are not affiliated, and neither the Company nor RP Financial has an economic interest in, or is held in common with, the other and has not derived a significant portion of its gross revenues, receipts or net income for any period from transactions with the other. RP Financial represents and warrants that it is not aware of any fact or circumstance that would cause it not to be "independent" within the meaning of the conversion regulations of the federal banking agencies or otherwise prohibit or restrict in anyway RP Financial from serving in the role of independent appraiser for the Company.

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

Please acknowledge your agreement to the foregoing by signing as indicated below and returning to RP Financial a signed copy of this letter, together with the engagement fee of $15,000.

---

| |
|:---|
| Sincerely, |
| ![LOGO](g122170g00v06.jpg) |
| Ronald S. Riggins |
| Managing Director |

---

---

| | | |
|:---|:---|:---|
| Agreed to and accepted by: | Marie Pellegrin | ![LOGO](g122170g01a23.jpg) |
|  | President |  |

---

Upon authorization of the Board of Directors of: BayCoast Bank <br> Swansea, Massachusetts

 <br> Date executed:   <u>4/6/2026</u>

## Exhibit 99.2

**Exhibit 99.2**![LOGO](g122170g26g01.jpg)

June 12, 2026

Board of Trustees

Narragansett Financial Corporation

Board of Directors

Narragansett Bancorp, Inc.

BayCoast Bank

330 Swansea Mall Drive

Swansea, Massachusetts 02777

Re: Plan of Holding Company Reorganization and Plan of Stock Issuance

Narragansett Financial Corporation

Narragansett Bancorp, Inc.

<u>BayCoast Bank</u> 

Members of the Boards of Trustees and Directors:

All capitalized terms not otherwise defined in this letter have the meanings given such terms in the plan of holding company reorganization and plan of stock Issuance (the "Plan") adopted by the Board of Directors of BayCoast Bank (the "Bank") and the Board of Trustees of Narragansett Financial Corporation (the "MHC"). Pursuant to the Plan, when the stock offering is completed purchasers in the stock offering will own 43.0% of Narragansett Bancorp, Inc.'s outstanding shares of common stock, the MHC will own 55.0% of Narragansett Bancorp, Inc.'s outstanding shares of common stock and a newly established charitable foundation will own 2.0% of Narragansett Bancorp, Inc.'s outstanding shares of common stock.

We understand that in accordance with the Plan, subscription rights to purchase shares of common stock in Narragansett Bancorp, Inc. are to be issued to: (1) Eligible Account Holders; (2) Tax-Qualified Employee Plans, including the Bank's employee stock ownership plan (the "ESOP"); and (3) Employees, Officers, Directors, Trustees and Corporators. Based solely upon our observation that the subscription rights will be available to such parties without cost, will be legally non-transferable and of short duration, and will afford such parties the right only to purchase shares of common stock at the same price as will be paid by members of the general public in the community or syndicated offerings but without undertaking any independent investigation of state or federal law or the position of the Internal Revenue Service with respect to this issue, we are of the belief that, as a factual matter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the subscription rights will have no ascertainable market value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the price at which the subscription rights are exercisable will not be more or less than the pro forma market value of
the shares upon issuance.

Changes in the local and national economy, the legislative and regulatory environment, the stock market, interest rates, and other external forces (such as natural disasters or significant world events) may occur from time to time, often with great unpredictability and may materially impact the value of thrift stocks as a whole or Narragansett Bancorp, Inc.'s value alone. Accordingly, no assurance can be given that persons who subscribe to shares of common stock in the subscription offering will thereafter be able to buy or sell such shares at the same price paid in the subscription offering.

---

| |
|:---|
| Sincerely, |
| ![LOGO](g122170g26g02.jpg) |
| RP Financial, LC. |

---

---

| | |
|:---|:---|
|  Washington Headquarters<br> 1311-A Dolley Madison Boulevard | Telephone: (703) 528-1700 |
|  Suite 2A | Fax No.: (703) 528-1788 |
|  McLean, VA 22101 | Toll-Free No.: (866) 723-0594 |
|  www.rpfinancial.com | E-Mail: mail@rpfinancial.com |

---

## Exhibit 99.3

**Exhibit 99.3**![LOGO](g122170dsp1.jpg)

PRO FORMA VALUATION REPORT MUTUAL HOLDING COMPANY STOCK OFFERNG Narragansett Bancorp, Inc. Swansea, Massachusetts HOLDING COMPANY FOR: BayCoast Bank Swansea, Massachusetts 1311-A Dolley Madison Boulevard Suite 2A McLean, Virginia 22101 703.528.1700 rpfinancial.com

------

![LOGO](g122170g0610234207006.jpg)

May 4, 2026

Board of Trustees

Narragansett Financial Corporation

Boards of Directors

Narragansett Bancorp, Inc.

BayCoast Bank

330 Swansea Mall Drive

Swansea, Massachusetts 02777

Members of the Boards of Trustees and Directors:

At your request, we have completed and hereby provide an independent appraisal ("Appraisal") of the estimated pro forma market value of the common stock which is to be issued in connection with the stock issuance transaction described below.

This Appraisal is furnished pursuant to the requirements stipulated in the Code of Federal Regulations and has been prepared in accordance with the "Guidelines for Appraisal Reports for the Valuation of Savings and Loan Associations Converting from Mutual to Stock Form of Organization" (the "Valuation Guidelines") of the Office of Thrift Supervision ("OTS") and accepted by the Federal Reserve Board ("FRB"), the Office of the Comptroller of the Currency ("OCC"), the Federal Deposit Insurance Corporation ("FDIC") and the Massachusetts Commissioner of Banks (the "Commissioner"), and applicable regulatory interpretations thereof.

<u>Description of Plan of Reorganization and Stock Issuance</u> 

On June 8, 2026, the Board of Trustees Narragansett Financial Corporation, or the "MHC", and the Board of Directors BayCoast Bank, or the "Bank", adopted the plan of holding company reorganization and plan of stock Issuance (the "Plan"). Pursuant to the Plan, BayCoast Bank will reorganize into the "two-tier" mutual holding company form of organization whereby Narragansett Bancorp, Inc. ("Narragansett Bancorp" or the "Company") will become the mid-tier stock holding company of BayCoast Bank and Narragansett Financial Corporation will become the top-tier mutual holding company. Narragansett Bancorp will issue a majority of its common stock to the MHC and sell a minority of its common stock to the public. Concurrent with the completion of the public stock offering, BayCoast Bank will receive at least 50.0% of the net stock proceeds and the balance will be retained by Narragansett Bancorp. The MHC will own a controlling interest in the Company of at least 51%, and the Company will be the sole subsidiary of the MHC. The Company will own 100% of the Bank's outstanding stock. For purposes of this document, the existing consolidated entity will hereinafter be referred to as Narragansett Bancorp or the Company.

Narragansett Bancorp will offer its common stock in a subscription offering to Eligible Account Holders, Tax-Qualified Plans including BayCoast Bank's employee stock ownership plan (the "ESOP"), and Employees, Officers, Directors, Trustees and Corporators of BayCoast Bank or Narragansett Financial Corporation as terms are defined in the Plan for purposes of applicable regulatory guidelines governing stock offerings by mutual institutions. To the extent that shares remain available for purchase after satisfaction of all subscriptions received in the subscription offering, the shares may be offered for sale to members of the general public in a community offering and a syndicated offering.

---

| | |
|:---|:---|
| **Washington Headquarters** |  |
| 1311-A Dolley Madison Boulevard | Telephone: (703) 528-1700 |
| Suite 2A | Fax No.: (703) 528-1788 |
| McLean, VA 22101 | Toll-Free No.: (866) 723-0594 |
| www.rpfinancial.com | E-Mail: mail@rpfinancial.com |

---

------

*Board of Trustees* 

*Board of Directors* 

*May 4, 2026* 

*Page 2* 

At this time, no new additional activities are contemplated for the Company other than funding a loan to the newly-formed ESOP and reinvestment of the proceeds that are retained by the Company. In the future, Narragansett Bancorp may acquire or organize other operating subsidiaries, diversify into other banking-related activities, pay dividends or repurchase its stock, although there are no specific plans to undertake such activities at the present time.

The Plan provides for the establishment of a new charitable foundation, BayCoast Bank Charitable Foundation, Inc. (the "Foundation"). The Foundation's contribution will be funded with 2.0% of the outstanding shares of Narragansett Bancorp common stock at the completion of the offering, including shares issued to the MHC, and $600,000 of cash funded by the net proceeds retained by the Company. The purpose of the Foundation is to provide financial support to charitable organizations in the communities in which BayCoast Bank operates and to enable those communities to share in the Bank's long-term growth. The Foundation will be dedicated completely to community activities and the promotion of charitable causes.

<u>RP</u><u><sup>®</sup></u> <u>Financial, LC.</u>

RP<sup>®</sup> Financial, LC. ("RP Financial") is a financial consulting firm serving the financial services industry nationwide that, among other things, specializes in financial valuations and analyses of business enterprises and securities, including the pro forma valuation for savings institutions converting from mutual-to-stock form. The background and experience of RP Financial is detailed in Exhibit V-1. We believe that, except for the fee we will receive for the Appraisal, we are independent of BayCoast Bank, the Company, the MHC and the other parties engaged by BayCoast Bank, the Company or the MHC to assist in the minority stock offering process.

<u>Valuation Methodology</u> 

In preparing our Appraisal, we have reviewed the regulatory applications of the Company, the Bank and the MHC, including the prospectus as filed with the FRB, the FDIC, the Commissioner and the Securities and Exchange Commission ("SEC"). We have conducted a financial analysis of the Company, the Bank and the MHC that has included a review of audited financial information for the years ended December 31, 2021 through December 31, 2025, unaudited financial statements as of and for the three months ended March 31, 2026, a review of various unaudited information and internal financial reports through March 31, 2026. We have conducted due diligence related discussions with the Company's management; Wolf & Company, P.C., the Company's independent auditor; Luse Gorman, PC, the Company's counsel for the stock issuance and Piper Sandler & Co., the Company's marketing advisor in connection with the stock offering. All assumptions and conclusions set forth in the Appraisal were reached independently from such discussions. In addition, where appropriate, we have considered information based on other available published sources that we believe are reliable. While we believe the information and data gathered from all these sources are reliable, we cannot guarantee the accuracy and completeness of such information.

------

*Board of Trustees* 

*Board of Directors* 

*May 4, 2026* 

*Page 3* 

We have investigated the competitive environment within which Narragansett Bancorp operates and have assessed its relative strengths and weaknesses. We have kept abreast of the changing regulatory and legislative environment for financial institutions and analyzed the potential impact on Narragansett Bancorp and the industry as a whole. We have analyzed the potential effects of the stock offering on Narragansett Bancorp's operating characteristics and financial performance as they relate to the pro forma market value of the Company. We have reviewed the economic and demographic characteristics of the Company's primary market area. We have compared Narragansett Bancorp's financial performance and condition with selected publicly-traded thrifts in accordance with the Valuation Guidelines, as well as all publicly-traded thrifts and thrift holding companies. We have reviewed the current conditions in the securities markets in general and the market for thrift stocks in particular, including the market for existing thrift issues and initial public offerings by thrifts and thrift holding companies. We have excluded from such analyses thrifts subject to announced or rumored acquisition, and/or institutions that exhibit other unusual characteristics.

The Appraisal is based on Narragansett Bancorp's representation that the information contained in the regulatory applications and additional information furnished to us by Narragansett Bancorp and its independent auditor, legal counsel and other authorized agents are truthful, accurate and complete. We did not independently verify the financial statements and other information provided by Narragansett Bancorp, or its independent auditor, legal counsel and other authorized agents nor did we independently value the assets or liabilities of Narragansett Bancorpo. The valuation considers the Company only as a going concern and should not be considered as an indication of Narragansett Bancorp's liquidation value.

Our appraised value is predicated on a continuation of the current operating environment for Narragansett Bancorp and for all thrifts and their holding companies. Changes in the local, state and national economy, the legislative and regulatory environment for financial institutions and mutual holding companies, the stock market, interest rates, and other external forces (such as natural disasters or significant world events) may occur from time to time, often with great unpredictability and may materially impact the value of thrift stocks as a whole or the value of Narragansett Bancorp's stock alone. It is our understanding that there are no current plans for selling control of Narragansett Bancorp following completion of the stock offering. To the extent that such factors can be foreseen, they have been factored into our analysis.

The estimated pro forma market value is defined as the price at which Narragansett Bancorp's common stock, immediately upon completion of the stock offering, would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

<u>Valuation Conclusion</u> 

Based on the foregoing, it is our opinion that, as of May 4, 2026, the estimated aggregate pro forma market value of the shares to be issued immediately following the minority stock offering, both shares issued publicly as well as to the MHC, equaled $160,000,000 at the midpoint, equal to 16,000,000 shares offered at a per share value of $10.00. Pursuant to conversion guidelines, the 15% offering range indicates a minimum value of $136,000,000 and a maximum value of $184,000,000. Based on the $10.00 per share offering price determined by the Board, this valuation range equates to total shares outstanding of 13,600,000 at the

------

*Board of Trustees* 

*Board of Directors* 

*May 4, 2026* 

*Page 4* 

minimum and 18,400,000 at the maximum. In the event the appraised value is subject to an increase, the aggregate pro forma market value may be increased up to a super maximum value of $211,600,000 without a resolicitation. Based on the $10.00 per share offering price, the super maximum value would result in total shares outstanding of 21,160,000. The Board of Directors has established a public offering range such that the public ownership of the Company will constitute a 43.0% ownership interest prior to the issuance of shares to the Foundation. Accordingly, the offering to the public of the minority stock will equal $58,480,000 at the minimum, $68,800,000 at the midpoint, $79,120,000 at the maximum and $90,988,000 at the super maximum of the valuation range. Based on the $10.00 offering price per share, the shares offered in the public offering are 5,848,000 at the minimum, 6,880,000 at the midpoint, 7,912,000 at the maximum and 9,098,800 at the super maximum. The number of shares issued to the Foundation are 272,000 at the minimum, 320,000 at the midpoint, 368,000 at the maximum and 423,200 at the super maximum. Based on the public offering range and inclusive of the shares issued to the Foundation, equal to 2.0% of the shares issued in the stock issuance, the public ownership of shares will represent 45.0% of the shares issued throughout the valuation range.

<u>Limiting Factors and Considerations</u> 

The valuation is not intended, and must not be construed, as a recommendation of any kind as to the advisability of purchasing shares of the common stock. Moreover, because such valuation is determined in accordance with applicable regulatory guidelines and is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares of common stock in the stock offering will thereafter be able to buy or sell such shares at prices related to the foregoing valuation of the estimated pro forma market value thereof. The appraisal reflects only a valuation range as of this date for the pro forma market value of Narragansett Bancorp immediately upon issuance of the stock and does not take into account any trading activity with respect to the purchase and sale of common stock in the secondary market on the date of issuance of such securities or at anytime thereafter following the completion of the stock offering.

RP Financial's valuation was based on the financial condition and operations of Narragansett Bancorp as of March 31, 2026, the date of the financial data included in the prospectus.

RP Financial is not a seller of securities within the meaning of any federal and state securities laws and any report prepared by RP Financial shall not be used as an offer or solicitation with respect to the purchase or sale of any securities. RP Financial maintains a policy which prohibits RP Financial, its principals or employees from purchasing stock of its client institutions.

This valuation will be updated as provided for in the conversion regulations and guidelines. These updates will consider, among other things, any developments or changes in the financial performance and condition of Narragansett Bancorp, management policies, and current conditions in the equity markets for thrift shares, both existing issues and new issues. These updates may also consider changes in other external factors which impact value including, but not limited to: various changes in the legislative and regulatory environment for

------

*Board of Trustees* 

*Board of Directors* 

*May 4, 2026* 

*Page 5* 

financial institutions, the stock market and the market for thrift stocks, and interest rates. Should any such new developments or changes be material, in our opinion, to the valuation of the shares, appropriate adjustments to the estimated pro forma market value will be made. The reasons for any such adjustments will be explained in the update at the date of the release of the update. The valuation will also be updated at the completion of Narragansett Bancorp's stock offering.

---

| |
|:---|
| Respectfully submitted, |
| RP<sup>®</sup> FINANCIAL, LC. |
| ![LOGO](g122170g0610234207197.jpg) |
| Ronald S. Riggins |
| Managing Director |
| ![LOGO](g122170g0610234207376.jpg) |
|  Gregory E. Dunn |
|  Director |

---

------

---

| |
|:---|
| ***RP<sup>®</sup> Financial, LC.*** |
| ***i*** |

---

*****TABLE OF CONTENTS*****

***NARRAGANSETT BANCORP, INC.***

***BAYCOAST BANK***

***Swansea, Massachusetts***

---

| | | |
|:---|:---|:---|
| DESCRIPTION |  | PAGE<br>NUMBER |
| <u>CHAPTER ONE</u> | OVERVIEW AND FINANCIAL ANALYSIS |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Introduction | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Introduction | I.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plan of Reorganization and Stock Issuance | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plan of Reorganization and Stock Issuance | I.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic Overview | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic Overview | I.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance Sheet Trends | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance Sheet Trends | I.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income and Expense Trends | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income and Expense Trends | I.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest Rate Risk Management | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest Rate Risk Management | I.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lending Activities and Strategy | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lending Activities and Strategy | I.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset Quality | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset Quality | I.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funding Composition and Strategy | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Funding Composition and Strategy | I.15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subsidiary Activities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subsidiary Activities | 1.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal Proceedings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal Proceedings | I.18 |
| <u>CHAPTER TWO</u> | MARKET AREA |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Introduction | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Introduction | II.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Economic Factors | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Economic Factors | II.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market Area Demographics | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market Area Demographics | II.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regional Economy | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regional Economy | II.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unemployment Trends | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unemployment Trends | II.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market Area Deposit Characteristics and Competition | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market Area Deposit Characteristics and Competition | II.9 |
| <u>CHAPTER THREE</u> | PEER GROUP ANALYSIS |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Peer Group Selection | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Peer Group Selection | III.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Condition | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Condition | III.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income and Expense Components | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income and Expense Components | III.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan Composition | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan Composition | III.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest Rate Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest Rate Risk | III.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit Risk | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit Risk | III.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summary | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summary | III.16 |

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| |
|:---|
| ***RP<sup>®</sup> Financial, LC.*** |
| ***ii*** |

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*****TABLE OF CONTENTS*****

***NARRAGANSETT BANCORP, INC.***

***BAYCOAST BANK***

***Swansea, Massachusetts***

***(continued)***

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| | | |
|:---|:---|:---|
| DESCRIPTION |  | PAGE<br>NUMBER |
| <u>CHAPTER FOUR</u> | VALUATION ANALYSIS |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Introduction | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Introduction | IV.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appraisal Guidelines | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appraisal Guidelines | IV.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RP Financial Approach to the Valuation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RP Financial Approach to the Valuation | IV.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation Analysis | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation Analysis | IV.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Financial Condition | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Financial Condition | IV.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Profitability, Growth and Viability of Earnings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Profitability, Growth and Viability of Earnings | IV.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Asset Growth | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Asset Growth | IV.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Primary Market Area | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Primary Market Area | IV.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Dividends | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Dividends | IV.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Liquidity of the Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Liquidity of the Shares | IV.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Marketing of the Issue | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Marketing of the Issue | IV.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Public Market | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Public Market | IV.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The New Issue Market | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The New Issue Market | IV.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Acquisition Market | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Acquisition Market | IV.15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Management | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Management | IV.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Effect of Government Regulation and Regulatory Reform | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Effect of Government Regulation and Regulatory Reform | IV.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summary of Adjustments | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summary of Adjustments | IV.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation Approaches: Fully-Converted Basis | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation Approaches: Fully-Converted Basis | IV.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basis of Valuation- Fully-Converted and MHC Pricing Ratios | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basis of Valuation- Fully-Converted and MHC Pricing Ratios | IV.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Price-to-Earnings ("P/E") | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Price-to-Earnings ("P/E") | IV.20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Price-to-Book ("P/B") | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Price-to-Book ("P/B") | IV.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Price-to-Assets ("P/A") | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Price-to-Assets ("P/A") | IV.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comparison to Publicly-Traded MHCs | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comparison to Publicly-Traded MHCs | IV.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comparison to Recent MHC Offerings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comparison to Recent MHC Offerings | IV.29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation Conclusion – Fully-Converted Basis | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation Conclusion – Fully-Converted Basis | IV.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minority Stock Issuance Offering Range | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minority Stock Issuance Offering Range | IV.30 |

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| ***RP<sup>®</sup> Financial, LC.*** |
| ***iii*** |

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***LIST OF TABLES***

***NARRAGANSETT BANCORP, INC.***

***BAYCOAST BANK***

***Swansea, Massachusetts***

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| | | |
|:---|:---|:---|
| TABLE<br>NUMBER | DESCRIPTION | PAGE |
| 1.1 | Historical Balance Sheet Data | I.5 |
| 1.2 | Historical Income Statements | I.9 |
| 2.1 | Summary Demographic Data | II.6 |
| 2.2 | Primary Market Area Employment Sectors | II.8 |
| 2.3 | Unemployment Trends | II.9 |
| 2.4 | Deposit Summary | II.10 |
| 2.5 | Market Area Deposit Competitors | II.11 |
| 3.1 | Peer Group of Publicly-Traded Thrifts | III.3 |
| 3.2 | Balance Sheet Composition and Growth Rates | III.6 |
| 3.3 | Income as a Pct. of Avg. Assets and Yields, Costs, Spreads | III.9 |
| 3.4 | Loan Portfolio Composition and Related Information | III.12 |
| 3.5 | Interest Rate Risk Measures and Net Interest Income Volatility | III.14 |
| 3.6 | Credit Risk Measures and Related Information | III.15 |
| 4.1 | Market Area Unemployment Rates | IV.7 |
| 4.2 | Pricing Characteristics and After-Market Trends | IV.16 |
| 4.3 | Fully-Converted Market Pricing Versus Peer Group | IV.22 |
| 4.4 | MHC Market Pricing Versus Peer Group | IV.23 |
| 4.5 | Calculation of Implied Per Share Data - Incorporating MHC Second Step Conversion | IV.27 |
| 4.6 | MHC Institutions Implied Pricing Ratios, Full Conversion Basis | IV.28 |

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| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.1*** |

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**I. OVERVIEW AND FINANCIAL ANALYSIS** 

<u>Introduction</u> 

BayCoast Bank (the "Bank"), established in 1851, is a Massachusetts chartered stock savings bank headquartered in Swansea, Massachusetts. In 1998, BayCoast Bank reorganized into the mutual holding company structure, forming Narragansett Financial Corporation, a Massachusetts chartered mutual holding company (the "MHC"). Since its formation, the MHC's primary purpose has been to act as the holding company for BayCoast Bank.

BayCoast Bank serves the Southcoast of Massachusetts and the state of Rhode Island through the main office, 25 full service branch banking offices and two loan production offices. A map of BayCoast Bank's branch office locations is provided in Exhibit I-1. BayCoast Bank is a member of the Federal Home Loan Bank ("FHLB") system and its deposits are insured up to the maximum allowable amount by the Federal Deposit Insurance Corporation ("FDIC"). As of March 31, 2026, Narragansett Financial Corporation had consolidated total assets of $2.9 billion, total deposits of $2.5 billion and total equity of $186.6 million equal to 6.44% of total assets. The Company's audited financial statements are included by reference as Exhibit I-2.

<u>Plan of Reorganization and Stock Issuance</u> 

On June 8, 2026, the Board of Trustees of the MHC and the Board of Directors of BayCoast Bank adopted a plan of holding company reorganization and plan of stock issuance (the "Plan"). Pursuant to the Plan, BayCoast Bank will reorganize into the "two-tier" mutual holding company form of organization whereby Narragansett Bancorp, Inc. ("Narragansett Bancorp" or the "Company") will become the mid-tier stock holding company of BayCoast Bank and Narragansett Financial Corporation will become the top-tier mutual holding company. Narragansett Bancorp will issue a majority of its common stock to the MHC and sell a minority of its common stock to the public. Concurrent with the completion of the public stock offering, the Bank will receive at least 50.0% of the net stock proceeds and the balance will be retained by Narragansett Bancorp. The MHC will own a controlling interest in the Company of at least 51%, and the Company will be the sole subsidiary of the MHC. For purposes of this document, the existing consolidated entity will hereinafter be referred to as Narragansett Bancorp or the Company.

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|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.2*** |

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Narragansett Bancorp will offer its common stock in a subscription offering to Eligible Account Holders, Tax-Qualified Plans including BayCoast Bank's employee stock ownership plan (the "ESOP"), and Employees, Officers, Directors, Trustees and Corporators of the Bank or the MHC, as such terms are defined in the Plan for purposes of applicable federal regulatory guidelines governing stock offerings by mutual institutions. To the extent that shares remain available for purchase after satisfaction of all subscriptions received in the subscription offering, the shares may be offered for sale to members of the general public in a community offering and a syndicated offering.

At this time, no new additional activities are contemplated for the Company other than funding a loan to the newly-formed ESOP and reinvestment of the proceeds that are retained by the Company. In the future, Narragansett Bancorp may acquire or organize other operating subsidiaries, diversify into other banking-related activities, pay dividends or repurchase its stock, although there are no specific plans to undertake such activities at the present time.

The Plan provides for the establishment of a new charitable foundation, BayCoast Bank Charitable Foundation, Inc. (the "Foundation"). The Foundation contribution will be funded with 2.0% of the outstanding shares of Narragansett Bancorp common stock at the completion of the offering, including shares issued to the MHC, and $600,000 in cash. The purpose of the Foundation is to provide financial support to charitable organizations in the communities in which the Bank operates and to enable those communities to share in the Bank's long-term growth. The Foundation will be dedicated completely to community activities and the promotion of charitable causes.

<u>Strategic Overview</u> 

Narragansett Bancorp maintains a local community banking emphasis, with a primary strategic objective of meeting the borrowing and savings needs of its local customer base. In addition to offering traditional community bank products and services, the Company provides a variety of financial services to more effectively address the full range of banking needs required by its customer base. Financial products and services offered through the Bank's subsidiary activities include insurance agency services, investment services for non-deposit investment products, investment management and trust services, and the origination and sale of residential mortgage loans. The Bank's subsidiary activities also include manufactured and mobile home financing and providing data integration and automation solutions to organizations.

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|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.3*** |

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Loans constitute the major portion of the Company's composition of interest-earning assets, with commercial real estate and multi-family loans comprising the largest concentration followed by 1-4 family residential mortgage loans. Investments supplement the Company's lending activities. The investment portfolio composition is indicative of the Company's low risk investment philosophy, as U.S. Government bonds and federal agency obligations guaranteed by government sponsored enterprises ("GSEs") comprise the largest concentration of the investment portfolio.

Deposits have consistently served as the primary funding source for the Company, supplemented with borrowings as an alternative funding source for purposes of managing funding costs and interest rate risk. Additionally, the Company has conducted three private placement offerings of subordinated debt, whereby the proceeds were down streamed into the Bank for purposes of increasing regulatory capital to support continued growth and revenue diversification. Core deposits, consisting of transaction and savings account deposits, constitute the largest portion of the Company's deposit base. The Company has used FHLB advances to support its lending and investment activities and for liquidity purposes.

Narragansett Bancorp's earnings base is largely dependent upon net interest income and operating expense levels. Recent trends show that following a downward trend in the net interest margin from 2021 through 2024, the net interest margin has increased during the past one and one-quarter years. The increase in the net interest margin was facilitated by interest rate spread expansion, which was primarily realized through a decrease in the average cost of interest-bearing liabilities. Following four years of maintaining relatively stable operating expenses, the Company's operating expenses increased in 2025 and the first quarter of 2026 which provided for some de-leveraging of the operating expense ratio. The increase in operating expense was primarily due to an increase in compensation expense, which was largely related to an employee retention tax credit that offset payroll tax expense in 2024. In general, operating expense to average assets ratios have been elevated, reflecting the Company's strategic initiatives to significantly diversify revenue through an emphasis on generating non-interest income through offering fee and commission-based products and services. Over the past five and one-quarter years, credit loss provisions and non-operating gains and losses have had a varied impact on the Company's earnings.

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|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.4*** |

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The Company's post-offering business plan is expected to continue to focus on implementing strategic initiatives to develop and grow a full service community banking franchise. A key component of the Company's business plan is to raise equity through a minority stock offering while retaining its emphasis on mutuality. The equity capital will increase the Company's operating flexibility, capacity for continued growth and diversification, and risk management, and reduce the reliance on previously issued subordinated debt. Further, the stock offering proceeds will supplement the funding with deposits and borrowings and may reduce overall funding costs. The additional capital may enable market expansion through establishing or acquiring branches in the current geographic footprint and entering nearby markets that are complementary to the existing branch network. The Company will also be in a better position to pursue growth through additional acquisitions of other financial service providers following the stock offering, given its strengthened capital position. The projected uses of proceeds at the Company and Bank levels are highlighted below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Company.</u> The Company is expected to retain not more than 50% of the net offering proceeds. At present,
funds at the Company level, net of the loan to the ESOP and the cash contribution to the Foundation, are expected to be initially primarily invested initially into liquid funds held as a deposit at the Bank. A portion of the net proceeds retained by
the Company may also be invested in U.S. government bonds and U.S. government-sponsored enterprise securities. Over time, the funds may be utilized for various corporate purposes, including repayment of subordinated debt and, to a lesser extent,
acquisitions, infusing additional equity into the Bank, repurchases of common stock and the payment of cash dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Bank.</u> At least 50% of the net conversion proceeds will be infused into the Bank. Cash proceeds (i.e., net
proceeds less deposits withdrawn to fund stock purchases) infused into the Bank are anticipated to become part of general operating funds and are expected to be primarily utilized to fund loan growth over time.

Overall, it is the Company's objective to pursue controlled growth and revenue diversification that will serve to increase returns, while continuing to emphasize management of the overall risk.

<u>Balance Sheet Trends</u> 

Table 1.1 shows the Company's historical balance sheet data for the past five and one-quarter years. From yearend 2021 through March 31, 2026, Narragansett Bancorp's assets increased at a 5.81% annual rate. Asset growth was largely driven by loan growth and was funded by a combination of deposit growth and increased utilization of borrowings. A summary of Narragansett Bancorp's key operating ratios for the past two and one-quarter fiscal years is presented in Exhibit I-3.

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|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.5*** |

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Table 1.1

Narragansett Bancorp, Inc.

Historical Balance Sheet Data

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| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | | | | | | | 12/31/21-<br> 3/31/26<br> Annual<br> Growth Rate |
|  | | | | | | | | | | | | | 12/31/21-<br> 3/31/26<br> Annual<br> Growth Rate |
|  | At December 31, | At December 31, | At December 31, | At December 31, | At December 31, | At December 31, | At December 31, | At December 31, | At December 31, | At December 31, | At March 31, | At March 31, | 12/31/21-<br> 3/31/26<br> Annual<br> Growth Rate |
|  | 2021 | 2021 | 2022 | 2022 | 2023 | 2023 | 2024 | 2024 | 2025 | 2025 | 2026 | 2026 | 12/31/21-<br> 3/31/26<br> Annual<br> Growth Rate |
|  | Amount | Pct(1) | Amount | Pct(1) | Amount | Pct(1) | Amount | Pct(1) | Amount | Pct(1) | Amount | Pct(1) | Pct |
|  | ($000) | (%) | ($000) | (%) | ($000) | (%) | ($000) | (%) | ($000) | (%) | ($000) | (%) | (%) |
|  <u>Total Amount of:</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Assets | $2278252 | 100.00% | $2843730 | 100.00% | $2901161 | 100.00% | $2934403 | 100.00% | $2858576 | 100.00% | $2896855 | 100.00% | 5.81% |
|  Cash and cash equivalents | 29166 | 1.28% | 42893 | 1.51% | 34256 | 1.18% | 75957 | 2.59% | 38519 | 1.35% | 79147 | 2.73% | 26.48% |
|  Investment securities | 334129 | 14.67% | 286579 | 10.08% | 251268 | 8.66% | 289412 | 9.86% | 344480 | 12.05% | 347915 | 12.01% | 0.96% |
|  Loans held for sale | 13623 | 0.60% | 3505 | 0.12% | 9647 | 0.33% | 8945 | 0.30% | 21262 | 0.74% | 14854 | 0.51% | 11.04% |
|  Loans receivable, net | 1717998 | 75.41% | 2289193 | 80.50% | 2390025 | 82.38% | 2333986 | 79.54% | 2236274 | 78.23% | 2239623 | 77.31% | 6.44% |
|  FHLB stock | 1674 | 0.07% | 3668 | 0.13% | 10545 | 0.36% | 12634 | 0.43% | 5787 | 0.20% | 5469 | 0.19% | 32.12% |
|  Bank-owned life insurance | 30777 | 1.35% | 32823 | 1.15% | 34815 | 1.20% | 37597 | 1.28% | 40962 | 1.43% | 41530 | 1.43% | 7.31% |
|  Goodwill and other intangible assets | 22476 | 0.99% | 29936 | 1.05% | 29486 | 1.02% | 29097 | 0.99% | 28186 | 0.99% | 28024 | 0.97% | 5.47% |
|  Deposits | $2006127 | 88.06% | $2447568 | 86.07% | $2352759 | 81.10% | $2325880 | 79.26% | $2423306 | 84.77% | $2466761 | 85.15% | 4.98% |
|  Borrowings | 83751 | 3.68% | 196116 | 6.90% | 333874 | 11.51% | 379801 | 12.94% | 192641 | 6.74% | 190184 | 6.57% | 21.29% |
|  Equity | $157561 | 6.92% | $139708 | 4.91% | $156434 | 5.39% | $170611 | 5.81% | $186846 | 6.54% | $186644 | 6.44% | 4.07% |
|  Tangible equity | 135085 | 5.93% | 109772 | 3.86% | 126948 | 4.38% | 141514 | 4.82% | 158660 | 5.55% | 158620 | 5.48% | 3.86% |
|  Loans/Deposits |  | 85.64% |  | 93.53% |  | 101.58% |  | 100.35% |  | 92.28% |  | 90.79% |  |

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(1) Ratios are as a percent of ending assets.

Sources: Narragansett Bancorp's prospectus, audited financial statements, and RP Financial calculations.

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|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.6*** |

---

Narragansett Bancorp's loans receivable portfolio increased at a 6.44% annual rate from yearend 2021 through March 31, 2026, in which most of the loan growth was realized in 2022. After peaking at $2.4 billion at yearend 2023, the loans receivable balance declined to $2.2 billion as of March 31, 2026. The Company's slightly higher loan growth rate compared to its asset growth rate provided for an increase the loans-to-assets ratio from 75.41% at yearend 2021 to 77.31% at March 31, 2026.

Trends in the Company's loan portfolio composition over the past two and one-quarter years show that overall composition of the loan portfolio has reflected a decline in the concentration of 1-4 family loans and that was primarily offset by increases in the concentrations of commercial real estate loans and home equity loans and line of credit. Commercial real estate loans, including multi-family loans, comprise the largest concentration of the loan portfolio and increased from 46.03% of total loans at yearend 2024 to 47.92% of total loans at March 31, 2026. Comparatively, from yearend 2024 to March 31, 2026, 1-4 family residential mortgage loans decreased from 25.20% of total loans to 20.47% of total loans. Over the same time period, the relative concentrations of commercial business loans increased from 8.52% of total loans to 8.83% of total loans, home equity loans and lines of credit increased from 7.57% of total loans to 9.40% of total loans, construction loans increased from 7.26% of total loans to 8.10% of total loans and consumer and other loans decreased from 5.42% of total loans to 5.27% of total loans.

The intent of the Company's investment policy is to provide adequate liquidity and to generate a favorable return within the context of supporting Narragansett Bancorp's overall credit and interest rate risk objectives. It is anticipated that proceeds retained at the holding company level will initially be invested into liquid funds held as a deposit at the Bank. Since yearend 2021, the Company's level of cash and investment securities (inclusive of FHLB stock) ranged from a low of 10.21% of assets at yearend 2023 to a high of 16.02% of assets at yearend 2021. As of March 31, 2026, cash and investments equaled 14.93% of assets. U.S. Government bonds and U.S. Government sponsored agency obligations totaling $279.7 million comprised the most significant component of the Company's investment portfolio at March 31, 2026. Other investments held by the Company at March 31, 2026 consisted of municipal bonds ($33.3 million), corporate bonds and other debt securities ($32.7 million) and equity securities ($2.2 million). As of March 31, 2026, investment securities designated as available for sale totaled $345.7 million and reflected a net unrealized loss of $5.0 million. Exhibit I-4 provides historical detail of the Company's investment portfolio as of March 31, 2026. As of March 31, 2026, the Company also held $79.1 million of cash and cash equivalents and $5.5 million of FHLB stock.

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|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.7*** |

---

The Company also maintains an investment in bank-owned life insurance ("BOLI") policies, which covers the lives of certain executive officers and directors of the Company. The life insurance policies earn tax-exempt income through cash value accumulation and death proceeds. As of March 31, 2026, the cash surrender value of the Company's BOLI equaled $41.5 million or 1.43% of assets.

Since yearend 2021, Narragansett Bancorp's funding needs have been addressed through a combination of deposits, borrowings and internal cash flows. From yearend 2021 through March 31, 2026, the Company's deposits increased at a 4.98% annual rate. Following a year of strong deposit growth during 2022, the balance of deposits has remained relatively stable and equaled $2.467 billion or 85.15% of assets at March 31, 2026. Deposit growth trends since yearend 2024 reflect that deposit growth was realized through an increase transaction and savings account deposits, which provided for an increase in the concentration of transaction and savings account deposits comprising total deposits. Transaction and savings account deposits comprised 76.09% of total deposits at December 31, 2024, versus 80.13% of total deposits at March 31, 2026.

Borrowings serve as an alternative funding source for the Company to address funding needs for growth and to support management of deposit costs and interest rate risk. Additionally, the Company has had three issuances of subordinated debt, in which the net proceeds were down streamed into BayCoast Bank for purposes of increasing regulatory capital. From year end 2021 through March 31, 2026, borrowings increased from $83.8 million or 3.68% of assets to $190.2 million or 6.57% of assets. Borrowings held by the Company at March 31, 2026 consisted of $95.5 million of FHLB advances and $94.7 million of subordinated debt.

The Company's equity increased at a 4.07% annual rate from yearend 2021 through March 31, 2026. Slightly stronger asset growth relative to equity growth provided for a decrease in the Company's equity-to-assets from 6.92% at December 31, 2021 to 6.44% at March 31, 2026. Similarly, the Company's tangible equity-to-assets ratio decreased from 5.93% at December 31, 2021 to 5.48% at March 31, 2026. Goodwill and other intangibles totaled $28.0 million or 0.97% of assets at March 31, 2026. The Bank maintained capital surpluses relative to all of its regulatory capital requirements at March 31, 2026. The addition of stock proceeds will serve to strengthen the Company's capital position, as well as support growth opportunities.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.8*** |

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<u>Income and Expense Trends</u> 

Table 1.2 shows the Company's historical income statements for the past five years and for the twelve months ended March 31, 2026. The Company's reported earnings ranged from a net loss of $2.4 million or 0.08% of average assets during 2022 to net income of $22.2 million or 1.01% of average asset during 2021. For the twelve months ended March 31, 2026, the Company reported net income of $7.4 million or 0.25% of average assets. Net interest income and operating expenses represent the primary components of the Company's earnings, while non-interest operating income is also a significant contributor to the Company's earnings. Credit loss provisions and non-operating gains and losses have had a varied impact on the Company's earnings over the past five and one-quarter years.

Over the past five and one-quarter years, the Company's net interest income to average assets ratio ranged from 2.23% during 2024 to 3.10% during 2021 and equaled 2.71% during the twelve months ended March 31, 2026. The increase in the Company's net interest income ratio during the past one and one-quarter years was facilitated by higher interest rate spreads, which was primarily driven by a lower cost of interest-bearing liabilities. The Company's net interest rate spreads and yields and costs for the past two and one-quarter years are set forth in Exhibits I-3 and I-5.

Non-interest operating income has been a strong contributor to the Company's earnings over the past five and one-quarter years. Throughout the period shown in Table 1.2, non-interest operating income ranged from 1.29% of average assets for 2022 to 2.44% of average assets for 2021. The sharp decrease in non-operating income during 2022 was primarily related to a decrease in mortgage banking income. For the twelve months ended March 31, 2026, non-interest operating income totaled $52.6 million or 1.81% of average assets. Mortgage banking income accounted for the Company's largest source of non-interest operating income for the twelve months ended March 31, 2026, amounting to 37% of non-interest operating income for the twelve-month period. Other significant sources of non-interest operating income include insurance and brokerage commissions, customer service fees and trust department fees.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.9*** |

---

Table 1.2

Narragansett Bancorp, Inc.

Historical Income Statements

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the Year Ended December 31, | For the Year Ended December 31, | For the Year Ended December 31, | For the Year Ended December 31, | For the Year Ended December 31, | For the Year Ended December 31, | For the Year Ended December 31, | For the Year Ended December 31, | For the Year Ended December 31, | For the Year Ended December 31, | For the 12 Months | For the 12 Months |
|  | 2021 | 2021 | 2022 | 2022 | 2023 | 2023 | 2024 | 2024 | 2025 | 2025 | Ended 03/31/2026 | Ended 03/31/2026 |
|  | Amount | Pct(1) | Amount | Pct(1) | Amount | Pct(1) | Amount | Pct(1) | Amount | Pct(1) | Amount | Pct(1) |
|  | ($000) | (%) | ($000) | (%) | ($000) | (%) | ($000) | (%) | ($000) | (%) | ($000) | (%) |
|  Interest income | $78908 | 3.59% | $96043 | 3.34% | $130533 | 4.47% | $141759 | 4.84% | $143310 | 4.90% | $142539 | 4.90% |
|  Interest expense | (10728) | -0.49% | (18036) | -0.63% | (62483) | -2.14% | (76400) | -2.61% | (67186) | -2.30% | (63778) | -2.19% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income | $68180 | 3.10% | $78007 | 2.72% | $68050 | 2.33% | $65359 | 2.23% | $76124 | 2.61% | $78761 | 2.71% |
|  Provision for credit losses | (6200) | -0.28% | (4350) | -0.15% | (2145) | -0.07% | (7520) | -0.26% | (7360) | -0.25% | (7170) | -0.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income after provisions | $61980 | 2.82% | $73657 | 2.56% | $65905 | 2.26% | $57839 | 1.97% | $68764 | 2.35% | $71591 | 2.46% |
|  Non-interest operating income | $25807 | 1.17% | $24576 | 0.86% | $28501 | 0.98% | $30339 | 1.04% | $33711 | 1.15% | $33089 | 1.14% |
|  Mortgage banking income | 27954 | 1.27% | 12209 | 0.43% | 17517 | 0.60% | 17046 | 0.58% | 18540 | 0.63% | 19547 | 0.67% |
|  Operating expense | (102375) | -4.65% | (99908) | -3.48% | (103476) | -3.55% | (98916) | -3.38% | (113898) | -3.90% | (116019) | -3.99% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net operating income | $13366 | 0.61% | $10534 | 0.37% | $8447 | 0.29% | $6308 | 0.22% | $7117 | 0.24% | $8208 | 0.28% |
|  <u>Non-Operating Income/(Losses)</u> |  |  |  |  |  |  |  |  |  |  |  |  |
|  Gain (loss) on securities | $13288 | 0.60% | 12375) | -0.43% | 1681) | -0.06% | $580 | 0.02% | $103 | 0.00% | $380 | 0.01% |
|  Gain (loss) on sales of portfolio loans | 3012 | 0.14% | (2103) | -0.07% | (185) | -0.01% | (430) | -0.01% | (2052) | -0.07% | (1678) | -0.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net non-operating income(losses) | $16300 | 0.74% | 14478) | -0.50% | 1866) | -0.06% | $150 | 0.01% | 1949) | -0.07% | 1298) | -0.04% |
|  Net income before tax | $29666 | 1.35% | 3944) | -0.14% | $6581 | 0.23% | $6458 | 0.22% | $5168 | 0.18% | $6910 | 0.24% |
|  Income tax provision | (7424) | -0.34% | 1540 | 0.05% | (1219) | -0.04% | (1149) | -0.04% | 831 | 0.03% | 460 | 0.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $22242 | 1.01% | 2404) | -0.08% | $5362 | 0.18% | $5309 | 0.18% | $5999 | 0.21% | $7370 | 0.25% |
|  Net income attributed to non-controlling interest | $191 | 0.01% | $107 | 0.00% | $0 | 0.00% | $0 | 0.00% | $0 | 0.00% | $0 | 0.00% |
|  Net income (loss) attributed to Narragansett Fin. | $22051 | 1.00% | 2511) | -0.09% | $5362 | 0.18% | $5309 | 0.18% | $5999 | 0.21% | $7370 | 0.25% |
|  Adjusted Earnings |  |  |  |  |  |  |  |  |  |  |  |  |
|  Net income | $22051 | 1.00% | 2511) | -0.09% | $5362 | 0.18% | $5309 | 0.18% | $5999 | 0.21% | $7370 | 0.25% |
|  Add(Deduct): Non-operating income | (16300) | -0.74% | 14478 | 0.50% | 1866 | 0.06% | (150) | -0.01% | 1949 | 0.07% | 1298 | 0.04% |
|  Tax effect (2) | 4075 | 0.19% | (3620) | -0.13% | (467) | -0.02% | 38 | 0.00% | (487) | -0.02% | (325) | -0.01% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted earnings | $9826 | 0.45% | $8348 | 0.29% | $6762 | 0.23% | $5197 | 0.18% | $7461 | 0.26% | $8344 | 0.29% |
|  Expense Coverage Ratio (3) | 0.67x |  | 0.78x |  | 0.66x |  | 0.66x |  | 0.67x |  | 0.68x |  |
|  Efficiency Ratio (4) | 83.94% |  | 86.78% |  | 90.79% |  | 87.79% |  | 88.84% |  | 88.27% |  |

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(1) Ratios are as a percent of average assets.

(2) Assumes a 25.0% effective tax rate.

(3) Expense coverage ratio calculated as net interest income before provisions for loan losses divided by operating
expenses.

(4) Efficiency ratio calculated as operating expenses divided by the sum of net interest income before provisions
for loan losses plus non-interest operating income.

Sources: Narragansett Bancorp's prospectus, audited financial statements and RP Financial calculations.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.10*** |

---

Operating expenses represent the other major component of the Company's earnings, which have been maintained at a relatively high ratio as a percent of average assets. The Company's relatively high operating expense ratios have been largely attributable to the significance of operational areas that are largely off-balance sheet activities, which include the Company's mortgage banking operations, insurance activities, business and wealth management services and trust services. Notably, as the result of the significance of the Company's off-balance sheet activities, the Company maintains a relatively low ratio of assets per employee. Recent trends reflect some de-leveraging of operating expenses, which was attributable to limited asset growth and an increase in operating expenses. Most of the increase in operating expenses during 2025 was due to an increase in compensation costs, which was mostly attributable to an employee retention tax credit that offset the payroll tax expense in 2024. The increase in compensation expense during 2025 was also due to higher incentive compensation resulting from an increase in loan volume. Overall, the Company's operating expenses to average assets ratio ranged from 3.38% during 2024 to 4.65% during 2021. For the twelve months ended March 31, 2026, operating expenses totaled $116.0 million or 3.99% of average assets.

Overall, the general trends in the Company's net interest income and operating expense ratios over the past five and one-quarter fiscal years reflect relatively stable core earnings, as indicated by the Company's expense coverage ratio (net interest income divided by operating expenses). Narragansett Bancorp's expense coverage ratio equaled 0.67x for 2021 and 0.68x for the twelve months ended March 31, 2026. Comparatively, the Company's efficiency ratio (operating expenses as a percent of the sum of net interest income and other operating income) reflected a slight downward trend in core earnings since 2021, based on efficiency ratios of 83.94% for 2021 and 88.27% for the twelve months ended March 31, 2026.

During the period covered in Table 1.2, the amount of credit loss provisions recorded by the Company ranged from 0.07% of average assets during 2023 to 0.28% of average assets during 2021. For the twelve months ended March 31, 2026, credit loss provisions were $7.2 million or 0.25% of average assets. As of March 31, 2026, the Company maintained credit loss allowances of $29.7 million, equal to 1.31% of total loans and 84.99% of non-performing loans. Exhibit I-6 sets forth the Company's credit loss allowance activity during the past two and one-quarter years.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.11*** |

---

Non-operating gains and losses have had a varied impact on the Bank's earnings during the period covered in Table 1.2, consisting of gains and losses on securities and sales of portfolio loans. Over the past five and one-quarter years, non-operating gains and losses ranged from a net non-operating loss of 0.50% of average assets during 2022 to net non-operating gains of 0.74% of average assets during 2021. For the twelve months ended March 31, 2026, the Company reported a net non-operating loss of $1.3 million or 0.04% of average assets which consisted of $380,000 gains on securities and a $1.7 million loss on sales of portfolio loans.

Over the past five and one-quarter years, the Company's effective tax rate ranged from 25.03% during 2021 to a tax benefit of 39.05% during 2022. For the twelve months ended March 31, 2026, the Company's effective tax rate equaled a tax benefit of 6.66%. The tax benefit recorded for the twelve months ended March 31, 2026 was due primarily to tax credits of $2.1 million recorded during the year ended December 31, 2025, which was related to a low-income affordable housing project. As set forth in the prospectus, the Company's effective marginal tax rate is 25.0%.

<u>Interest Rate Risk Management</u> 

The Company pursues a number of strategies to manage interest rate risk, particularly with respect to seeking to limit the repricing mismatch between interest rate sensitive assets and liabilities. The Company manages interest rate risk from the asset side of the balance sheet through maintaining the investment securities portfolio as available for sale, investing in short- to medium-term repricing and/or maturing investment securities, maintaining prudent levels of liquidity, selling originations of 1-4 family fixed rate loans to the secondary market and emphasizing lending diversification which consist primarily of adjustable rate or shorter term fixed rate loans. As of March 31, 2026, of the Company's total loans due after March 31, 2027, adjustable rate loans comprised 75.29% of total loans receivable (see Exhibit I-7). On the liability side of the balance sheet, management of interest rate risk has been pursued through emphasizing growth of lower costing and less interest rate sensitive transaction and savings account deposits.

Management of the Company's interest rate risk is also facilitated by growing sources of non-interest operating income, fixing interest income on loans and other floating-rate assets and using derivative instruments such as mortgage banking derivatives and, to a lesser extent, loan level hedging and interest rate swaps.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.12*** |

---

The Company's interest rate risk analysis indicated that as of April 30, 2026, in the event of a 200 basis point immediate and parallel increase across the Treasury yield curve, the Company's net interest income would decrease by 3.2% in a 1-year period. Comparatively, as of April 30, 2026, in the event of a 200 basis point immediate and parallel decrease across the Treasury yield curve, the Company's net interest income would increase by 1.0% in a one year period (see Exhibit I-8).

The infusion of stock proceeds will serve to further limit the Company's interest rate risk exposure, as most of the net proceeds will be redeployed into interest-earning assets and the increase in the Company's capital position will lessen the proportion of interest rate sensitive liabilities funding assets.

<u>Lending Activities and Strategy</u> 

The Company is pursuing a diversified lending strategy with a current focus on commercial real estate, multi-family and commercial business loans as the primary areas of targeted loan growth. Other areas of lending for the Company include 1-4 family permanent mortgage loans, construction loans, home equity loans and lines of credit and other consumer loans. Exhibit I-9 provides historical detail of Narragansett Bancorp's loan portfolio composition for the past two and one-quarter years and Exhibit I-10 provides the contractual maturity of the Company's loan portfolio by loan type as of March 31, 2026.

Commercial Real Estate and Multi-Family Loans. Commercial real estate and multi-family loans consist largely of loans originated by the Company, which are generally collateralized by properties in the Company's regional lending area. On a limited basis, the Company supplements originations of commercial real estate and multi-family loans with purchased loan participations from local banks. Loan participations are subject to the same underwriting criteria and loan approvals as applied to loans originated by the Company. Narraganset Bancorp generally originates commercial real estate and multi-family loans up to a loan-to-value ("LTV") ratio of 75% and generally requires a minimum debt-coverage ratio of 1.2 times. Commercial real estate and multi-family loans are generally originated for terms of up to 25 years and are originated with rates that adjust after an initial fixed-rate period of five to seven years. Commercial real estate and multi-family loans are typically indexed to the applicable FHLB classic advance rate plus a margin. Properties securing the commercial real estate and multi-family loan portfolio consist primarily of apartments, leisure and hospitality, office, retail and industrial. At March 31, 2026, the Company's largest commercial real estate loan had an

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.13*** |

---

outstanding balance of $15.2 million and was secured by a building used for laboratory and office space. At March 31, 2026, this loan was performing in accordance with its original terms. At March 31, 2026, the Company's largest multi-family loan had an outstanding balance of $28.5 million and was secured by 179-unit apartment complex. At March 31, 2026, this loan was performing in accordance with its original terms. As of March 31, 2026, the Company's outstanding balance of commercial real estate and multi-family loans totaled $1.1 billion equal to 47.92% of total loans outstanding.

<u>1-4 Family Residential Loans</u>. Narragansett Bancorp offers both fixed rate and adjustable rate 1-4 family permanent mortgage loans with terms of up to 30 years, which are substantially secured by properties in the Company's market area. Loans are generally underwritten to secondary market guidelines, so as to allow for the sale of such loans if such a strategy is warranted for purposes of interest rate risk management. Historically, the Company's practice has been to generally sell conforming fixed rate loans, with servicing retained by the Company. Adjustable rate loans offered by the Company generally have initial repricing terms of three, five, seven or ten years and then reprice thereafter for periods of between one and five years. As of March 31, 2026, the Company's outstanding balance of 1-4 family residential mortgage loans totaled $465.3 million equal to 20.47% of total loans outstanding.

<u>Home Equity Loans and Lines of Credit.</u> The Company's 1-4 family lending activities include home equity loans and line of credit. Home equity loans are offered as fixed rate loans with terms of up to 15 years. Home equity lines of credit are offered with terms of up to 20 years with a draw period of up to 10 ten years followed by up to a 10 year repayment term. The Company will generally originate home equity loans up to a maximum LTV ratio of 80% on owner occupied homes, 70% on second homes and condominiums and 60% on investment properties, inclusive of other liens on the property. The Company will generally originate home equity lines of credit up to a maximum LTV ratio of 80% on owner occupied homes and 70% on second homes, inclusive of other liens on the property. As of March 31, 2026, the Company's outstanding balance of home equity loans and lines of credit totaled $213.7 million equal to 9.40% of total loans outstanding.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.14*** |

---

Construction Loans The Company's construction lending activities consist substantially of loans for commercial development projects. Construction loans are structured as straight construction loans or construction/permanent loans where after the initial construction period the loan converts to a permanent mortgage loan. Construction loans are interest-only loans during the construction phase and may be originated up to a maximum LTV ratio of 75% of the estimated appraised market value upon completion of the project. At March 31, 2026, the Company's largest construction loan totaled $22.5 million and was secured by an industrial building. At March 31, 2026, this loan was performing in accordance with its original terms. As of March 31, 2026, Narragansett Bancorp's outstanding balance of construction loans totaled $184.2 million equal to 8.10% of total loans outstanding.

<u>Commercial Business Loans.</u> The commercial business loan portfolio is generated through extending loans to businesses operating in the local market area. Expansion of commercial business lending activities is a desired area of loan growth for the Company, pursuant to which the Company is seeking to become a full service community bank to its commercial loan customers through offering a full range of commercial loan products that can be packaged with lower cost commercial deposit products. The Company offers a variety of commercial business loans that include term loans and revolving lines of credit. Commercial business loans are generally offered up to a maximum LTV ratio of 90%. At March 31, 2026, the Company's largest commercial business loan totaled $15.0 million and was secured by a solar farm. At March 31, 2026, this loan was performing in accordance with its original terms; however, it has been granted debt service coverage covenant waivers. As of March 31, 2026, the Company's outstanding balance of commercial business loans totaled $200.8 million equal to 8.83% of total loans outstanding.

<u>Consumer Loans.</u> The consumer loan portfolio consists primarily of manufactured home loans originated nationwide through the Bank's subsidiary, with the balance of the consumer loan portfolio consisting primarily of personal loans. As of March 31, 2026, the Company's consumer loan portfolio totaled $119.7 million equal to 5.27% of total loans outstanding, with manufactured home loans totaling $72.3 million at March 31, 2026.

<u>Asset Quality</u> 

The Company experienced an increase in non-performing assets during 2025 and the first quarter of 2026, which was primarily due to a decrease in non-performing commercial real estate loans. Narragansett Bancorp's balance of non-performing assets increased from $5.4 million or 0.19% of assets at December 31, 2024 to $44.9 million or 1.55% of assets at March 31, 2026. As shown in Exhibit I-11, except for $20,000 of foreclosed and repossessed assets, the entire balance of non-performing assets at March 31, 2026 consisted of non-accruing loans. Non-accruing loans currently held by the Company consist mostly of commercial real estate loans, which totaled $37.2 million at March 31, 2026.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.15*** |

---

To track the Company's asset quality and the adequacy of valuation allowances, Narragansett Bancorp has established detailed asset classification policies and procedures which are consistent with regulatory guidelines. Classified assets are reviewed on a regular basis by senior management and the Board. Pursuant to these procedures, when needed, the Company establishes additional valuation allowances to cover anticipated losses in classified or non-classified assets. As of March 31, 2026, the Company maintained credit loss allowances of $29.7 million, equal to 1.31% of total loans receivable and 66.15% of non-performing loans.

<u>Funding Composition and Strategy</u> 

Deposits have consistently served as the Company's primary funding source and at March 31, 2026 deposits accounted for 92.84% of Narragansett Bancorp's combined balance of deposits and borrowings. Exhibit I-12 sets forth the Company's deposit composition for the past two and one-quarter years. Transaction and savings account deposits comprised 80.13% of total deposits at March 31, 2026, as compared to 76.09% of total deposits at December 31, 2024. The increase in the concentration of core deposits comprising total deposits since yearend 2024 was due to growth of core deposits and a decrease in certificates of deposit ("CDs"). Money market deposits comprise the largest concentration of the Company's core deposits, totaling $869.2 million or 43.97% of total core deposits at March 31, 2026.

The balance of the Company's deposits consists of CDs, which equaled 19.87% of total deposits at March 31, 2026 compared to 23.91% of total deposits at December 31, 2024. As of March 31, 2026, the CD portfolio totaled $490.2 million of which $197.2 million or 40.22% consisted of CDs with balances greater than $250,000. The Company did not hold any brokered CDs at March 31, 2026.

Borrowings serve as an alternative funding source for the Company to facilitate management of funding costs and interest rate risk Additionally, the Company has had three issuances of subordinated debt, in which most of the funds were down streamed into BayCoast Bank to increase regulatory capital. Borrowings totaled $190.2 million at March 31, 2026 and consisted of $95.5 million of FHLB advances and $94.7 million of subordinated debt. For the three months ended March 31, 2026, the FHLB advances had a weighted average interest rate of 4.19% and the subordinated debt had a weighted average interest rate of 6.67%.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.16*** |

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<u>Subsidiary Activities</u> 

BayCoast Bank's active subsidiaries are BayCoast Mortgage Company, LLC ("BayCoast Mortgage"), which originates and sells conforming and jumbo residential mortgages; Plimoth Trust Company, LLC, d/b/a Plimoth Investment Advisors ("Plimoth Investment Advisors"), which provides investment management and trust services; BayCoast Insurance, LLC ("BayCoast Insurance"), an indirect subsidiary of BayCoast Bank, which provides insurance products to consumers and businesses; Priority Funding, LLC ("Priority Funding"), which originates and sells manufactured home loans; and Teamwork Funding, LLC ("Teamwork Funding"), a wholly owned subsidiary of Priority Funding, which provides broker lender services for manufactured home loans and primarily conducts business in Arizona; Troy Security Corporation and B.F.R. Corp., which buy, hold, and sell securities on their own behalf; Stack Ally, which has been established to provide data integration and automation solutions to organizations; BCBOZ Investment, LLC, which holds real estate property; and 1851 Corporation, which is authorized to hold investments and real estate property.

BayCoast Mortgage, a Massachusetts limited liability company, is a wholly owned subsidiary of BayCoast Bank. BayCoast Mortgage originates and sells conforming and jumbo residential mortgage loans and operates in 11 states. For the three months ended March 31, 2026 and the year ended December 31, 2025, BayCoast Mortgage sold $181.5 million and $556.9 million of mortgage loans, respectively, generating $4.0 million and $12.7 million of mortgage banking revenue for those periods. For the three months ended March 31, 2026 and the year ended December 31, 2025, BayCoast Mortgage had net income of $1.1 million and $2.2 million, respectively.

Plimoth Investment Advisors, a Maine limited liability company, is a wholly owned subsidiary of BayCoast Bank. Its sole activity is to provide investment management and trust services to customers and businesses. At March 31, 2026, Plimoth Investment Advisors had approximately $1.07 billion in assets under management. For the three months ended March 31, 2026 and the year ended December 31, 2025, Plimoth Investment Advisors had net income of $317,000 and $1.1 million, respectively.

BayCoast Insurance, a Delaware limited liability company, is an indirect subsidiary of BayCoast Bank. It provides insurance products to consumers and businesses. For the three months ended March 31, 2026 and the year ended December 31, 2025, BayCoast Insurance generated $2.7 million and $10.8 million of insurance commissions, and had net income of $1.1 million and $2.2 million, respectively.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.17*** |

---

Priority Funding, a Massachusetts limited liability company, is a wholly owned subsidiary of BayCoast Bank, and Teamwork Funding, an Arizona corporation, is a wholly owned subsidiary of Priority Funding. Priority Funding originates and sells manufactured home loans, primarily with respect to homes located in manufactured housing communities and other leased-land settings, in 21 states, and Teamwork Funding provides broker lender services for manufactured home loans and primarily conducts business in Arizona. For the three months ended March 31, 2026 and the year ended December 31, 2025, on a combined basis, Priority Funding and Teamwork Funding had loan sales of $23.7 million and $129.6 million, generating $1.6 million and $9.0 million of gains on loan sales, revenue, respectively. For the three months ended March 31, 2026 and the year ended December 31, 2025, on a combined basis, Priority Funding and Teamwork Funding had loan fees of $170,000 and $1.0 million, and had net income of $219,000 and $4.3 million, respectively.

Troy Security Corporation and B.F.R. Corp. are Massachusetts securities corporations, which buy, hold, and sell securities on their own behalf. At March 31, 2026, on a combined basis, Troy Security Corporation and B.F.R. Corp. had assets of $75.0 million.

Stack Ally, a Delaware limited liability company, is a wholly owned subsidiary of BayCoast Bank. Stack Ally was formed in 2025, and has been established to provide data integration and automation solutions to organizations. Its platform enables system integration across multiple platforms supports workflow orchestration and automation, and incorporates embedded analytics and artificial intelligence capabilities. Because Stack Ally's products are deployed within client environments, the customer maintains control over data, infrastructure, and security, including with respect to regulatory and compliance requirements. For the three months ended March 31, 2026, Stack Ally had a net loss of $27,000. There was no activity as of December 31, 2025.

BCBOZ Investment, LLC, a Massachusetts limited liability company, is a wholly owned subsidiary of BayCoast Bank. BCBOZ Investment, LLC was organized as an Opportunity Zone Fund and owns a building as an investment and has invested in improvements to the building. At March 31, 2026, BCBOZ Investment, LLC had assets of $5.9 million.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***OVERVIEW AND FINANCIAL ANALYSIS*** |
|  | ***I.18*** |

---

1851 Corporation, a Massachusetts corporation, is a wholly owned subsidiary of BayCoast Bank. 1851 Corporation is authorized to hold investments and real estate property, but at March 31, 2026, its only asset was $11.0 million in cash.

<u>Legal Proceedings</u> 

At March 31, 2026, Narragansett Bancorp was not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. Such routine legal proceedings, in the aggregate, are believed by the Company's management to be immaterial to the Company's financial condition, results of operations and cash flows.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.1*** |

---

**II. MARKET AREA** 

<u>Introduction</u> 

Narragansett Bancorp is headquartered in Swansea, Massachusetts and currently serves the Southcoast of Massachusetts and the state of Rhode Island through 25 full service offices. The branches are located in the Massachusetts counties of Bristol (18 offices including the main office) and Norfolk (one branch) and the Rhode Island counties of Newport (three branches), Providence (two branches) and Bristol (one branch). Details regarding the Company's office properties are set forth in Exhibit II-1.

With operations in major metropolitan areas, the Company's competitive environment includes a significant number of thrifts, commercial banks and other financial services companies, some of which have a regional or national presence and are larger than the Company in terms of deposits, loans, scope of operations, and number of branches. These institutions also have greater resources at their disposal than the Company. The metropolitan areas served by the Company's branches have a highly developed economy, with a relatively high concentration of highly skilled workers who are employed in a number of different industry clusters including healthcare, financial services, technology and education.

Future growth opportunities for Narragansett Bancorp depend on the future growth and stability of the local and regional economy, demographic growth trends and the nature and intensity of the competitive environment. These factors have been briefly examined to help determine the growth potential that exists for the Company, the relative economic health of the Company's market area, and the resultant impact on value.

<u>National Economic Factors</u> 

The future success of the Company's operations is partially dependent upon various national economic trends. Job growth slowed in July 2025, as the U.S. economy added 73,000 jobs in July and the July unemployment rate increased to 4.2%. Manufacturing activity contracted for a fifth straight month in July with an index reading of 48.0, while service sector activity for July increased to an index reading of 50.1. A slight easing in mortgage rates provided for a 2.0% increase in July existing home sales, while new homes sales for July were down 0.6%. Both manufacturing activity and service sector activity increased in August, with respective index readings of 48.7 and 52.0. Only 22,000 jobs were added in August and the

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.2*** |

---

August unemployment rate increased to 4.3%. August retail sales increased 0.6%, which was higher than expected. While existing home sales slipped 0.2% in August, new home sales for August jumped 20.5%. September manufacturing activity edged up to an index reading of 49.1, while service sector activity for September slowed to an index reading of 50.0. The U.S. economy added 119,000 jobs in September and the September unemployment rate edged up to 4.4%. Existing home sales for September increased 1.5%, as lower mortgage rates boosted activity. Comparatively, new home sales for September were down 5.1%. Retail sales for September showed a slight increase of 0.2%. Third quarter GDP growth exceeded expectations, with a 4.3% annualized growth rate.

Manufacturing activity for October slowed to an index reading of 48.7, versus service sector activity for October accelerating to an index reading of 52.4. October existing home sales increased 1.2%, as slightly lower mortgage rates helped sales reach an eight-month high. Retail sales of October were unchanged. November manufacturing activity slowed to an index reading of 48.2, for a ninth consecutive month of contraction. In contrast, service sector activity for November edged up to an index reading of 52.6. The U.S. economy added 64,000 jobs in November and the November unemployment rate crept up to 4.6%. Lower mortgage rates contributed to existing home sales increasing 0.5% in November, which was the third consecutive month of rising sales, while new home sales for November jumped 15.5%. Manufacturing activity for December slowed to an index reading of 47.9, while December service sector activity accelerated to an index reading of 54.4. Job growth slowed slightly in December with the U.S. economy adding 50,000 jobs, while the December unemployment rate edged lower to 4.4%. While existing home sales increased 5.1% in December, as a whole 2025 ranked as one of the worst slumps for home sales in years. Comparatively, new home sales for December declined 1.7%. Reflecting the impact of a record long government shutdown, fourth quarter GDP slowed to an annual growth rate of 1.4%.

January 2026 manufacturing activity accelerated to an index reading of 52.6, which was the highest reading since August 2022. Service sector activity for January also edged up with an index reading of 52.7. January's employment report showed 130,000 jobs were added to the U.S. economy, which was the strongest job growth in more than a year. The January unemployment rate declined slightly to 4.3%. An 8.4% decline in existing home sales for January provided for the lowest level of existing home sales in more than two years. Similarly, January new home sales declined by 17.6%. Manufacturing activity for February continued to expand with an index reading of 52.4, while February service sector activity accelerated to a

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.3*** |

---

more than a three and one-half year high to an index reading of 56.1. February's employment report showed the U.S. economy lost 92,000 jobs and the unemployment rate edged up to 4.4%. Existing home sales for February were up 1.7%. Manufacturing activity for March expanded for a third consecutive month with an index reading of 52.7, while March service sector activity increased at a slower pace with an index reading of 54.0. Job growth resumed in March with U.S. employers adding 178,000 jobs and the March unemployment rate dipped slightly to 4.3%. Existing home sales for March fell 3.6%. First quarter GDP expanded at a 2.0% annual rate, as businesses invested heavily in artificial intelligence.

In terms of interest rates trends over the past few quarters, renewed trade tensions pushed Treasury yields higher at the start of the third quarter of 2025, reflecting concerns that the pending implementation of reciprocal tariffs would lead to higher inflation. An uptick in inflation, as indicated by the 2.7% increase in the June CPI, sustained the upward trend in long-term Treasury yields through mid-July. Some announced tariff deals with the U.S. and signs of progress with other trade partners provided for slightly lower interest rates in the second half of July. The Federal Reserve concluded its end of July meeting holding interest rates steady. Signs of a slowing economy, as reflected in the July reports for employment and service sector activity, translated into long-term Treasury yields declining in early-August. A 2.7% increase in the July CPI provided for a slight upward trend in long-term Treasury yields through mid-August, which was followed by long-term Treasury yields drifting lower through the end of August. The weak employment report for September sustained the rally in Treasury bonds through the first two weeks of September. Long-term Treasury yields edged higher through the balance of September, as markets reacted to inflation edging higher with a 2.9% in the August CPI and the Federal Reserve approving a mid-September 0.25% interest rate cut.

A slight downward trend in long-term Treasury yields prevailed through the first half of October 2025, with the 10-year Treasury stabilizing around 4.0% going into late-October. A 3.0% increase in the September CPI, along with the Federal Reserve tempering expectations of further rate cuts following its second consecutive 0.25% rate-cut in late-October, resulted in the 10-year Treasury yield trending up to 4.15% in mid-November. After edging down to 4.0% in late-November, the 10-year Treasury yield trended slightly higher ahead of the Federal Reserve's December meeting. The Federal Reserve concluded its December meeting with a third consecutive 0.25% rate-cut, while signaling a pause in further rate cuts. Long-term Treasury yields stabilized through balance of 2025, as a 2.7% increase in the November CPI provided an indication of a slower pace of inflation.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.4*** |

---

A stable interest rate environment continued to prevail during the first couple of weeks of January 2026, with the December CPI showing no change from the 2.7% increase in the November CPI. Treasury yields edged higher in the second half of January, as President Trump's threat to apply new restrictions on trade with Europe sparked a selloff in Treasury bonds. The late-January meeting of the Federal Reserve concluded with holding its benchmark rate steady and signaling little urgency to resume cutting rates further. A weaker-than-expected report for December retail sales and a 2.4% increase in January's CPI showing a slower pace of inflation facilitated a decline in long-term Treasury during yield during the first half of February. With the fourth quarter GDP report showing a slowing U.S. economy, interest rates continued to trend lower in the second half of February. At the end of February, 30-year mortgage rates fell below 6% for the first time in three years and the 10-year Treasury yield dropped below 4%. Interest rates reversed course and increased through most of March, as the prospect of war-fueled inflation pushed Treasury yields higher. In a similar vein, the Federal Reserve concluded its March meeting holding interest rates steady, as higher energy prices from the Iran war threatened to prolong the fight against inflation. Mortgage rates hit a six-month high in late March.

A slight downward trend in long-term Treasury yields that started at the end of the first quarter of 2026 continued into early-April, as financial markets considered the deadline for Iran to strike a deal followed by the April 8<sup>th</sup> announcement of a two-week cease-fire between the U.S. and Iran. While higher gas prices translated into the March CPI surging to a two-year high of 3.3%, the 10-year Treasury yield stabilized around 4.30% through mid-April. The Federal Reserve's late-April policy meeting concluded with leaving its target rate unchanged and continuation of signaling that the next move in its target rate was more likely to be down than up. In step with the conclusion of the Federal Reserve's late-April meeting, inflationary pressures from rising oil prices pushed long-term Treasury yields higher at the end of April and the beginning of May. As of May 4, 2026, the bond equivalent yields for U.S. Treasury bonds with terms of one and ten years equaled 3.78% and 4.45%, respectively, versus comparable year ago yields of 4.00% and 4.33%. Exhibit II-2 provides historical interest rate trends.

Based on the consensus outlook of economists surveyed by The Wall Street Journal in April 2026, GDP was projected to increase 2.0% in 2026 and then edge up to a 2.2% annual growth rate in 2027. The U.S. unemployment rate was forecasted to equal 4.5% in December 2026 and 4.4% in June 2027. An average of 45,000 jobs were projected to be added per month over the next four quarters. On average, the economists forecasted the federal funds rate would equal 3.38% in December 2026 and 3.26% in June 2027. On average, the economists forecasted that the 10-year Treasury yield would equal 4.22% in December 2026 and 4.18% in June 2027.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.5*** |

---

The April 2026 mortgage finance forecast from the Mortgage Bankers Association (the "MBA") was for 2026 existing home sales to increase by 3.6% from 2025 sales, while 2026 new home sales were forecasted to increase by 4.1% from sales in 2025. The 2026 median sale prices for existing and new homes were forecasted to show respective decreases of 2.7% and 3.6%. Total mortgage production was forecasted to increase in 2026 to $2.187 trillion, compared to $2.050 trillion in 2025. The forecasted increase in 2026 originations was based on a 4.6% increase in purchase volume and a 10.8% increase in refinancing volume. Purchase mortgage originations were forecasted to total $1.418 trillion in 2026, versus refinancing volume totaling $769 billion. Housing starts for 2026 were projected to decrease by 1.0% to total 1.344 million.

<u>Market Area Demographics</u> 

Demographic and economic data and growth trends, measured by population, number of households, age distribution and income, provide key insight into the health of the market area served by Narragansett Bancorp. Demographic data for the Massachusetts counties of Bristol and Norfolk and the Rhode Island counties of Newport, Providence and Bristol, as well as for Massachusetts and Rhode Island, and the U.S., is provided in Table 2.1.

Population and household data indicate that the market area served by the Company's branches is a mix of urban and suburban markets. Norfolk County is the most populous county in the Company's market area with a total population of 746,000, while Bristol County in Rhode Island has the smallest population with a total population of 50,000. For the 2021 to 2026 period, Providence County recorded the strongest population growth with an annual growth rate of 1.3%. For the 2021 to 2026 period, Bristol County in Massachusetts and Norfolk County also recorded stronger population growth rates relative to the comparable 0.7% annual growth recorded for both Massachusetts and the U.S. Comparatively, Newport County's annual population growth rate of 0.2% was the lowest among the primary market area counties.

Household growth rates for the primary market area counties generally paralleled population growth trends, with Providence County and Newport County displaying the respective highest and lowest household growth rates over the past five years. For the next five years, population and household growth rates for the primary market area counties are generally projected to show slower growth, with Newport County and Bristol County in Rhode Island projected to experience declines in population and households.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.6*** |

---

Table 2.1

Narragansett Bancorp, Inc.

Summary Demographic Data

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Year | Year | Year | Growth Rate | Growth Rate |
|  | 2021 | 2026 | 2031 | 2021-2026 | 2026-2031 |
|  | | | | (%) | (%) |
|  **<u>Population (000)</u>** |  |  |  |  |  |
|  USA | 330946 | 342966 | 351802 | 0.7% | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Massachusetts | 6928 | 7180 | 7308 | 0.7% | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rhode Island | 1060 | 1117 | 1133 | 1.0% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, MA | 568 | 591 | 599 | 0.8% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Norfolk, MA | 711 | 746 | 763 | 1.0% | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Newport, RI | 82 | 82 | 80 | 0.2% | -0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Providence, RI | 641 | 682 | 701 | 1.3% | 0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, RI | 48 | 50 | 49 | 0.6% | -0.4% |
|  **<u>Households (000)</u>** |  |  |  |  |  |
|  USA | 125733 | 131761 | 135556 | 0.9% | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Massachusetts | 2721 | 2808 | 2862 | 0.6% | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rhode Island | 421 | 454 | 463 | 1.5% | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, MA | 223 | 235 | 239 | 1.0% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Norfolk, MA | 275 | 286 | 293 | 0.8% | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Newport, RI | 35 | 35 | 34 | 0.0% | -0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Providence, RI | 248 | 272 | 281 | 1.8% | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, RI | 19 | 20 | 19 | 0.7% | -0.3% |
|  **<u>Median Household Income ($)</u>** |  |  |  |  |  |
|  USA | 67761 | 86867 | 96684 | 5.1% | 2.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Massachusetts | 87126 | 109065 | 121125 | 4.6% | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rhode Island | 69418 | 93626 | 104830 | 6.2% | 2.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, MA | 72891 | 88044 | 95186 | 3.8% | 1.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Norfolk, MA | 108468 | 137903 | 155993 | 4.9% | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Newport, RI | 91412 | 112192 | 124326 | 4.2% | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Providence, RI | 60916 | 85029 | 94972 | 6.9% | 2.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, RI | 85859 | 125630 | 138717 | 7.9% | 2.0% |
|  **<u>Per Capita Income ($)</u>** |  |  |  |  |  |
|  USA | 37689 | 48879 | 54670 | 5.3% | 2.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Massachusetts | 37689 | 64764 | 71354 | 11.4% | 2.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rhode Island | 37689 | 54364 | 61227 | 7.6% | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, MA | 37689 | 50057 | 54600 | 5.8% | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Norfolk, MA | 37689 | 79145 | 86566 | 16.0% | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Newport, RI | 37689 | 68891 | 76285 | 12.8% | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Providence, RI | 37689 | 47386 | 53732 | 4.7% | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, RI | 37689 | 75038 | 82100 | 14.8% | 1.8% |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **2026 Age Distribution (%)** | 0-14 Yrs. | 15-34 Yrs. | 35-54 Yrs. | 55-69 Yrs. | 70+ Yrs. |
|  USA | 17.3 | 26.3 | 25.4 | 18.0 | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Massachusetts | 15.2 | 26.7 | 25.3 | 19.2 | 13.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rhode Island | 14.9 | 26.2 | 25.0 | 19.8 | 14.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, MA | 15.9 | 24.8 | 25.7 | 20.0 | 13.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Norfolk, MA | 16.0 | 24.7 | 26.2 | 19.6 | 13.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Newport, RI | 12.2 | 23.2 | 22.3 | 22.4 | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Providence, RI | 16.1 | 27.3 | 26.0 | 18.2 | 12.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, RI | 12.9 | 24.9 | 23.9 | 22.1 | 16.1 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **2026 HH Income Dist. (%)** | Less Than<br>25,000 | $25,000 to<br>50,000 | $50,000 to<br>100,000 | $100,000+ |
|  USA | 13.6 | 15.8 | 27.1 | 43.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Massachusetts | 12.9 | 12.0 | 21.8 | 53.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rhode Island | 14.0 | 13.1 | 26.1 | 46.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, MA | 15.6 | 15.4 | 24.6 | 44.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Norfolk, MA | 10.2 | 9.1 | 18.0 | 62.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Newport, RI | 13.7 | 9.8 | 21.4 | 55.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Providence, RI | 15.8 | 14.3 | 27.9 | 41.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bristol, RI | 9.5 | 9.0 | 20.6 | 60.9 |

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Source: S&P Global Market Intelligence.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.7*** |

---

Income measures show that the counties of Norfolk, Newport and Bristol in Rhode Island are relatively affluent markets, with household and per capita income measures that were somewhat above the comparable state and U.S. measures. Household and per capita income measures for Bristol County in Massachusetts also exceeded the U.S. measures but were slightly below the Massachusetts measures. Providence County's household and per capita income were lower than the U.S. and Rhode Island measures. Over the past five years, median household income annual growth rates ranged from a low of 3.8% for Bristol County in Massachusetts to a high of 7.9% for Bristol County in Rhode Island. Household and per capita income growth rates are projected to be lower over the next five years for all of the primary counties as well as for the U.S., Massachusetts and Rhode Island. Over the next five years, projected median household income annual growth rates ranged from a low of 1.6% for Bristol County in Massachusetts to a high of 2.5% for Norfolk County.

A comparison of household income distribution measures provides another indication of the relative affluence of Norfolk County, Newport County and Bristol County in Rhode Island. Comparatively, Providence County was the only primary market area county that maintained a lower percentage of households with incomes above $100,000 compared to the U.S. Age distribution measures for the primary market area counties were fairly similar to the comparable U.S. and state measures, although Newport County and Bristol County in Rhode Island had relatively older populations.

<u>Regional Economy</u> 

Comparative employment data shown in Table 2.2 shows that, except for Newport County, employment in education/healthcare/social services followed by services were the largest and second largest employment sectors for all of the primary market area counties, as well as Rhode Island. Service jobs constituted the largest employment sector for Newport County followed by employment in education/healthcare/social services, while Massachusetts had same percentage of jobs in services and education/healthcare/social services. Wholesale/retail trade jobs were the third largest employment sector for Bristol County in Massachusetts, Newport County and Providence County, as well as for Massachusetts and Rhode Island. Jobs in finance/insurance/real estate were third largest employment sector for Norfolk County and jobs in manufacturing were the third largest employment sector for Bristol County in Rhode Island. Overall, the distribution of employment exhibited in the primary market area is indicative of a diverse economic environment.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.8*** |

---

Table 2.2

Narragansett Bancorp, Inc.

Primary Market Area Employment Sectors

(Percent of Labor Force)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Employment Sector | Massachusetts | Rhode<br>Island | Bristol, MA<br>County | Norfolk, MA<br>County | Newport, RI<br>County | Providence, RI<br>County | Bristol, RI<br>County |
|  | **(%)** | **(%)** |  |  |  |  | **(%)** |
|  Services | 27.9% | 25.1% | 23.4% | 28.2% | 31.8% | 24.9% | 25.4% |
|  Education, Healthcare, Soc. Serv. | 27.9% | 26.4% | 26.1% | 29.5% | 26.5% | 26.4% | 31.5% |
|  Government | 3.9% | 4.5% | 4.4% | 3.5% | 5.4% | 4.1% | 5.2% |
|  Wholesale/Retail Trade | 11.3% | 13.4% | 15.1% | 9.7% | 10.4% | 13.9% | 9.5% |
|  Finance/Insurance/Real Estate | 7.3% | 6.9% | 5.9% | 10.8% | 5.8% | 6.5% | 8.5% |
|  Manufacturing | 8.9% | 10.8% | 10.6% | 6.9% | 6.4% | 10.8% | 10.0% |
|  Construction | 6.4% | 6.2% | 8.4% | 5.4% | 8.6% | 5.9% | 5.4% |
|  Information | 1.9% | 1.2% | 1.2% | 2.4% | 1.1% | 1.2% | 1.5% |
|  Transportation/Utility | 4.1% | 4.9% | 4.3% | 3.5% | 2.6% | 5.7% | 2.5% |
|  Agriculture | 0.4% | 0.7% | 0.6% | 0.1% | 1.5% | 0.5% | 0.5% |
|  | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |

---

Source: S&P Global Market Intelligence.

The market area served by the Company, characterized primarily as the Boston and Providence MSAs, has a highly developed and diverse economy, with the regions' many colleges and universities serving to attract industries in need of a highly skilled and educated workforce. Healthcare, manufacturing, technology and financial services companies constitute major sources of employment in the Company's regional market area, as well as the colleges and universities that populate the Boston and Providences MSAs. Tourism also is a prominent component of Boston MSA economy, as Boston annually ranks as one of the nation's top tourist destinations.

<u>Unemployment Trends</u> 

Comparative unemployment rates for the primary market area counties, as well as for the U.S., Massachusetts and Rhode Island, are shown in Table 2.3. February 2026 unemployment rates for the primary market area counties ranged from a low of 4.5% for Norfolk County to a high of 6.2% for Bristol County in Massachusetts and Providence County. Comparative unemployment rates for the U.S., Massachusetts and Rhode Island equaled 4.7%, 5.1% and 5.8%, respectively. In contrast to the national and state trends which showed higher unemployment rates for February 2026 compared to year ago, Norfolk County was the only primary market area county that reported higher a unemployment rate for February 2026 compared to a year ago.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.9*** |

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Table 2.3

Narragansett Bancorp, Inc.

Unemployment Trends

---

| | | |
|:---|:---|:---|
| Region | February 2025<br>Unemployment | February 2026<br>Unemployment |
|  USA | 4.5% | 4.7% |
|  Massachusetts | 4.8% | 5.1% |
|  Rhode Island | 5.6% | 5.8% |
|  Bristol, MA | 6.2% | 6.2% |
|  Norfolk, MA | 4.4% | 4.5% |
|  Newport, RI | 6.1% | 5.5% |
|  Providence, RI | 6.7% | 6.2% |
|  Bristol, RI | 5.2% | 4.9% |

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Source: S&P Global Market Intelligence.

<u>Market Area Deposit Characteristics and Competition</u> 

The Company's deposit base is closely tied to the economic fortunes of the Boston and Providence MSAs and, in particular, the areas that are nearby to one of Narragansett Bancorp's branches. Table 2.4 displays deposit market trends from June 30, 2020 through June 30, 2025 for all commercial bank and savings institution branches located in the market area counties, as well as Massachusetts and Rhode Island. Consistent with Massachusetts and Rhode Island, commercial banks maintained a larger market share of deposits than savings institutions in all the primary market area counties with the exception of Newport County. Overall, from June 30, 2020 to June 30, 2025, bank and thrift deposits increased in all of the primary market area counties.

The Company maintains its largest balance of deposits in Bristol County in Massachusetts, where the Company is headquartered and maintains its largest branch presence. Based on June 30, 2025 deposit data, Narragansett Bancorp's $2.1 billion of deposits provided for a 12.9% market share of bank and thrift deposits in Bristol County. The Company's deposit market share in the primary market area counties ranged from 0.2% in Norfolk County to 12.9% in Bristol County. During the five-year period covered in Table 2.4, Narragansett Bancorp gained deposit market share in all of the primary market area counties served by its branches.

------

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.10*** |

---

Table 2.4

Narragansett Bancorp, Inc.

Deposit Summary

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | As of June 30, | As of June 30, | As of June 30, | As of June 30, | As of June 30, | As of June 30, | |
|  | 2020 | 2020 | 2020 | 2025 | 2025 | 2025 | |
|  | Deposits | Market<br>Share | No. of<br>Branches | Deposits | Market<br>Share | No. of<br>Branches |<br>Deposit<br>Growth Rate<br>2020-2025 |
|  | (Dollars in Millions) | (Dollars in Millions) | (Dollars in Millions) | (Dollars in Millions) | (Dollars in Millions) | (Dollars in Millions) | (%) |
|  **Massachusetts** | $497675 | 100.0% | 2119 | $602761 | 100.0% | 1887 | 3.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Banks | 409030 | 82.2% | 1293 | 524313 | 87.0% | 1280 | 5.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings Institutions | 88646 | 17.8% | 826 | 78449 | 13.0% | 607 | -2.4% |
|  **Rhode Island** | $37318 | 100.0% | 249 | $44515 | 100.0% | 244 | 3.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Banks | 33381 | 89.5% | 201 | 39661 | 89.1% | 198 | 3.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings Institutions | 3937 | 10.5% | 48 | 4855 | 10.9% | 46 | 4.3% |
|  **Bristol County, MA** | $13662 | 100.0% | 145 | $16394 | 100.0% | 125 | 3.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Banks | 6825 | 50.0% | 71 | 10845 | 66.2% | 73 | 9.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings Institutions | 6837 | 50.0% | 74 | 5549 | 33.8% | 52 | -4.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Narragansett Financial Corp.** | **1607** | **11.8%** | **18** | **2107** | **12.9%** | **18** | **5.6%** |
|  **Norfolk County, MA** | $33064 | 100.0% | 249 | $36313 | 100.0% | 220 | 1.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Banks | 22818 | 69.0% | 159 | 24505 | 67.5% | 148 | 1.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings Institutions | 10247 | 31.0% | 90 | 11808 | 32.5% | 72 | 2.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Narragansett Financial Corp.** | **3** | **0.0%** | **1** | **67** | **0.2%** | **1** | **87.0%** |
|  **Newport County, RI** | $2032 | 100.0% | 22 | $2653 | 100.0% | 24 | 5.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Banks | 938 | 46.2% | 15 | 1089 | 41.0% | 14 | 3.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings Institutions | 1094 | 53.8% | 7 | 1564 | 59.0% | 10 | 7.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Narragansett Financial Corp.** | **76** | **3.8%** | **1** | **164** | **6.2%** | **3** | **16.6%** |
|  **Providence County, RI** | $24613 | 100.0% | 134 | $29059 | 100.0% | 129 | 3.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Banks | 23798 | 96.7% | 118 | 28326 | 97.5% | 115 | 3.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings Institutions | 815 | 3.3% | 16 | 733 | 2.5% | 14 | -2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Narragansett Financial Corp.** | **46** | **0.2%** | **2** | **94** | **0.3%** | **2** | **15.6%** |
|  **Bristol County, RI** | $1444 | 100.0% | 14 | $1694 | 100.0% | 16 | 3.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial Banks | 1155 | 80.0% | 10 | 1330 | 78.5% | 11 | 2.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Savings Institutions | 289 | 20.0% | 4 | 365 | 21.5% | 5 | 4.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Narragansett Financial Corp.** | **0** | **0.0%** | **0** | **20** | **1.2%** | **1** | **NA** |

---

Source: FDIC.

Competition among financial institutions in the market area is significant. Financial institution competitors in the primary market area include other locally-based thrifts, banks and credit unions, as well as regional, super-regional and money center banks. With regard to lending competition, the Company encounters the most significant competition from the same institutions providing deposit services. In addition, the Company competes with mortgage companies and independent mortgage brokers in originating mortgage loans. Table 2.5 lists the Company's largest competitors in the primary market area counties, based on deposit market share as noted parenthetically.

------

---

| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***MARKET AREA*** |
|  | ***II.11*** |

---

Table 2.5

Narragansett Bancorp, Inc.

Market Area Deposit Competitors

---

| | | | |
|:---|:---|:---|:---|
|  |  | Market |  |
| Location | Name | Share | Rank |
|  |  | **(%)** |  |
|  Bristol County, MA | Bank of America Corporation (NC) | 13.95 |  |
|  | Beacon Bancorp (MA) | 13.80 |  |
|  | **Narragansett Financial Corp. (MA)** | **12.85** | **3 out of 15** |
|  | Banco Santander S.A. | 9.70 |  |
|  | Independent Bank Corp. (MA) | 9.53 |  |
|  Norfolk County, MA | Bank of America Corporation (NC) | 20.94 |  |
|  | Citizens Financial Group Inc. (RI) | 13.95 |  |
|  | Charlesbridge MHC (MA) | 9.70 |  |
|  | NB Bancorp (MA) | 8.86 |  |
|  | Independent Bank Corp. (MA) | 6.79 |  |
|  | **Narragansett Financial Corp. (MA)** | **0.18** | **34 out of 35** |
|  Newport County, RI | OceanPoint Financial Ptnrs MHC (RI) | 51.46 |  |
|  | Citizens Financial Group Inc. (RI) | 15.01 |  |
|  | Bank of America Corporation (NC) | 8.80 |  |
|  | Beacon Financial Corp. (MA) | 8.48 |  |
|  | **Narragansett Financial Corp. (MA)** | **6.20** | **5 out of 10** |
|  Providence County, RI | Citizens Financial Group Inc. (RI) | 46.99 |  |
|  | Bank of America Corporation (NC) | 25.54 |  |
|  | Banco Santander S.A. | 6.73 |  |
|  | Beacon Financial Corp. (MA) | 6.23 |  |
|  | Washington Trust Bancorp Inc. (RI) | 4.07 |  |
|  | **Narragansett Financial Corp. (MA)** | **0.32** | **14 out of 15** |
|  Bristol County, RI | Citizens Financial Group Inc. (RI) | 37.91 |  |
|  | OceanPoint Financial Ptnrs MHC (RI) | 18.24 |  |
|  | Bank of America Corporation (NC) | 15.93 |  |
|  | The Toronto-Dominion Bank | 8.14 |  |
|  | Banco Santander S.A. | 7.58 |  |
|  | **Narragansett Financial Corp. (MA)** | **1.20** | **10 out of 10** |

---

Source: S&P Global Market Intelligence.

------

---

| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.1*** |

---

**III. PEER GROUP ANALYSIS** 

This chapter presents an analysis of Narragansett Bancorp's operations versus a group of comparable publicly-traded savings institutions (the "Peer Group") selected from the universe of all publicly-traded savings institutions in a manner consistent with the regulatory valuation guidelines. The basis of the pro forma market valuation of the Company is derived from the pricing ratios of the Peer Group, incorporating valuation adjustments to account for key differences between the Company and the Peer Group. Since no Peer Group can be exactly comparable to the Company, key areas examined for differences (consistent with the regulatory valuation guidelines) include: financial condition; profitability, growth and viability of earnings; asset growth; primary market area; dividends; liquidity of the shares; marketing of the issue; management; and effect of government regulations and regulatory reform.

<u>Peer Group Selection</u> 

The Peer Group selection process is governed by the general parameters set forth in the regulatory valuation guidelines. Accordingly, the Peer Group is comprised of only those publicly-traded savings institutions whose common stock is either listed on the NYSE or NASDAQ, since their stock trading activity is regularly reported and generally more frequent than non-publicly traded and closely-held institutions. Institutions that are not listed on the NYSE or NASDAQ are inappropriate since the trading activity for thinly-traded or closely-held stocks are typically highly irregular in terms of frequency and price and thus may not be a reliable indicator of market value. We have also excluded from the Peer Group those companies under acquisition or subject to rumored acquisition and recent conversions, since their pricing ratios are subject to unusual distortion and/or have limited trading history. A recent listing of the universe of all publicly-traded savings institutions is included as Exhibit III-1.

To comply with the regulatory valuation guidelines, the Peer Group must include at least ten members. While a Peer Group comprised of publicly-traded MHCs with reasonably similar resources, strategies, and financial characteristics may be seen as desirable, this is not practical since (1) there are currently only eight publicly-traded MHCs, two of which are in the process of completing second-step offerings to full public ownership structure, and (2) the characteristics of the publicly-traded MHCs and public ownership ratios are considered less comparable to the Company. Accordingly, the selected Peer Group are fully-converted

------

---

| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.2*** |

---

companies with reasonably similar resources, strategies, and financial characteristics. To recognize the differences in ownership structure relative to the "fully-converted" structure of the Peer Group companies, we apply valuation adjustments in the Chapter IV analysis. To further highlight the difference in ownership structure between publicly-traded MHCs and fully-converted thrifts, we include in Chapter IV a pricing analysis of the publicly-traded MHCs on a fully-converted basis; that is, we assume that they complete a second-step conversion at the current trading price with standard second-step conversion deal characteristics (e.g., offering expenses, stock benefit plans, and after-tax reinvestment rate).

We selected ten full stock thrift institutions with characteristics reasonably similar to those of Narragansett Bancorp. In the selection process, we applied one "screen" to the universe of all public companies that were eligible for consideration:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Screen #1 Publicly-traded thrifts with assets between $1.5</u> <u>billion and $8.0</u> <u>billion and positive reported and/or core earnings.</u> Twelve companies met the criteria for Screen #1 and ten were included in the Peer Group: ECB Bancorp, Inc. of Massachusetts, FS Bancorp, Inc. of Washington, Hingham
Institution for Savings of Massachusetts, Kearny Financial Corp. of New Jersey, Northeast Community Bancorp, Inc. of New York, Riverview Bancorp, Inc. of Washington, Timberland Bancorp, Inc. of Washington, TrustCo Bank Corp of New York, Waterstone
Financial, Inc. of Wisconsin and Western New England Bancorp, Inc. of Massachusetts. Northfield Bancorp, Inc. of New Jersey met the selection criteria, but was excluded from consideration as the result of being the target of an announced
acquisition. Triumph Financial, Inc. of Texas met the selection criteria but was excluded based on operating characteristics that were not consistent with the Company's community banking strategy. Exhibit III-2 provides financial and public market pricing characteristics of all publicly-traded thrift institutions.

Table 3.1 shows the general characteristics of each of the ten Peer Group companies and Exhibit III-3 provides summary demographic and deposit market share data for the primary market areas served by each of the Peer Group companies. While there are expectedly some differences between the Peer Group companies and Narragansett Bancorp, we believe that the Peer Group companies, on average, provide a good basis for valuation subject to valuation adjustments. The following sections present a comparison of Narragansett Bancorp's financial condition, income and expense trends, loan composition, interest rate risk, and credit risk versus the Peer Group as of the most recent publicly available date. Comparative data for all publicly-traded thrifts has been included in the Chapter III tables as well. A summary description of the key comparable characteristics of each of the Peer Group companies relative to Narragansett Bancorp's characteristics is detailed below.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.3*** |

---

Table 3.1

Peer Group of Publicly-Traded Thrifts

As of March 31, 2026 or the Most Recent Date Available

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  | | | As of | As of |
|  |  |  |  |  |  | | | May 4, 2026 | May 4, 2026 |
|  |  |  |  |  |  | Total | | Stock | Market |
| Ticker | Financial Institution | Exchange | Region | City | State | Assets | Offices | Price | Value |
|  |  |  |  |  |  | ($Mil) |  | ($) | ($Mil) |
|  ECBK | ECB Bancorp, Inc. | NASDAQCM | NE | Everett | MA | $1650 | 3 | $18.07 | $159 |
|  FSBW | FS Bancorp, Inc. | NASDAQCM | WE | Mountlake Terrace | WA | $3204 | 37 | $40.30 | $298 |
|  HIFS | Hingham Institution for Savings | NASDAQGM | NE | Hingham | MA | $4548 | 9 | $278.97 | $612 |
|  KRNY | Kearny Financial Corp. | NASDAQGS | MA | Fairfield | NJ | $7608 | 41 | $7.97 | $501 |
|  NECB | Northeast Community Bancorp, Inc. | NASDAQCM | MA | White Plains | NY | $2025 | 12 | $23.73 | $324 |
|  RVSB | Riverview Bancorp, Inc. | NASDAQGS | WE | Vancouver | WA | $1464 | 17 | $5.14 | $106 |
|  TSBK | Timberland Bancorp, Inc. | NASDAQGM | WE | Hoquiam | WA | $2046 | 24 | $40.26 | $315 |
|  TRST | TrustCo Bank Corp NY | NASDAQGS | MA | Glenville | NY | $6508 | 133 | $47.53 | $832 |
|  WSBF | Waterstone Financial, Inc. | NASDAQGS | MW | Wauwatosa | WI | $2251 | 16 | $17.90 | $310 |
|  WNEB | Western New England Bancorp, Inc. | NASDAQGS | NE | Westfield | MA | $2765 | 27 | $13.85 | $278 |

---

Source: S&P Global Market Intelligence.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.4*** |

---

• ECB Bancorp, Inc. of Massachusetts. Comparable due to Boston market area, similar concentration of assets
maintained in cash and investments and lending emphasis on commercial real estate and multi-family loans.

• FS Bancorp, Inc. of Washington. Comparable due to similar asset size, similar concentrations of deposits and
borrowings funding assets, similar impact of credit loss provisions on earnings, relatively high operating expense to average assets ratio and similar concentration of 1-4 family loans as a percent of assets.

• Hingham Institution for Savings of Massachusetts. Comparable due to Boston market area, similar concentration of
assets maintained in cash and investments, lending emphasis on multi-family and commercial real estate loans and similar concentration of 1-4 family loans as a percent of assets.

• Kearny Financial Corp. of New Jersey. Comparable due to similar interest-earning asset composition, lending
emphasis on multi-family and commercial real estate loans and similar concentration of 1-4 family loans as a percent of assets.

• Northeast Community Bancorp, Inc. of New York. Comparable due to similar concentration of deposits funding
assets.

• Riverview Bancorp, Inc. of Washington. Comparable due to similar interest-earning asset composition, similar
concentration of deposits funding assets, similar net interest income to average assets ratio, relatively high operating expense to average assets ratio and lending emphasis on commercial real estate and multi-family loans.

• Timberland Bancorp, Inc. of Washington. Comparable due to similar size of branch network, similar concentration
of deposits funding assets and lending emphasis on commercial real estate and multi-family loans.

• TrustCo Bank Corp of New York. Comparable due to similar interest-earning asset composition, similar
concentration of deposits funding assets and similar net interest income to average assets ratio.

• Waterstone Financial, Inc. of Wisconsin. Comparable due to similar interest-earning asset composition, similar
net interest income to average assets ratio, relatively high earnings contribution from sources of non-interest operating income, relatively high operating expense to average assets ratio and lending emphasis
on multi-family and commercial real estate loans.

• Western New England Bancorp, Inc. of Massachusetts. Comparable due to similar asset size, similar size of branch
network, similar interest-earning asset composition, similar concentration of deposits funding assets, similar net interest income to average assets ratio and lending emphasis on commercial real estate and multi-family loans.

In aggregate, the Peer Group companies maintained a lower level of tangible equity as the industry average (11.16% of assets versus 14.76% for all public companies), generated higher earnings as a percent of average assets (1.00% core ROAA versus 0.75% for all public companies), and earned a higher ROE (8.15% core ROE versus 5.95% for all public companies). Overall, the Peer Group's average P/TB ratio and average core P/E multiple were similar to and slightly lower compared to the respective averages for all publicly-traded thrifts.

------

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.5*** |

---

---

| | | |
|:---|:---|:---|
|  | All<br>Publicly-Traded | Peer Group |
|  <u>Financial Characteristics (Averages)</u> |  |  |
|  Assets ($Mil) | $6998 | $3407 |
|  Market capitalization ($Mil) | $774 | $370 |
|  Tangible equity/assets (%) | 14.76% | 11.16% |
|  Core return on average assets (%) | 0.75 | 1.00 |
|  Core return on average equity (%) | 5.95 | 8.15 |
|  <u>Pricing Ratios (Averages) (1)</u> |  |  |
|  Core price/earnings (x) | 14.49x | 13.67x |
|  Price/tangible book (%) | 106.93% | 104.02% |
|  Price/assets (%) | 13.69 | 11.55 |

---

(1) Based on market prices as of May 4, 2026.

Ideally, the Peer Group companies would be comparable to Narragansett Bancorp in terms of all of the selection criteria, but the universe of publicly-traded thrifts does not provide for an appropriate number of such companies. However, in general, the companies selected for the Peer Group were reasonably similar to the Company, as will be highlighted in the following comparative analysis. Comparative data for all publicly-traded thrifts has been included in the Chapter III tables as well.

<u>Financial Condition</u> 

Table 3.2 shows comparative balance sheet measures for Narragansett Bancorp and the Peer Group, reflecting the expected similarities and some differences given the selection procedures outlined above. The Company's and the Peer Group's ratios reflect balances as of March 31, 2026, unless indicated otherwise for the Peer Group companies. Narragansett Bancorp's equity-to-assets ratio of 6.44% was lower than the Peer Group's average net worth ratio of 11.66%. With the infusion of the net proceeds, the Company's pro forma equity-to-assets ratio will increase but remain lower than the Peer Group's equity-to-assets ratio. Tangible equity-to-assets ratios for the Company and the Peer Group equaled 5.48% and 11.16%, respectively. The increase in Narragansett Bancorp's pro forma capital position will be favorable from a risk perspective and in terms of future earnings potential that could be realized through leverage and lower funding costs. Both the Bank's and the Peer Group's capital ratios reflected capital surpluses with respect to the regulatory capital requirements.

------

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.6*** |

---

Table 3.2

Balance Sheet Composition and Growth Rates

Comparable Institution Analysis

As of March 31, 2026 or the Most Recent Date Available

---

| | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | | Balance Sheet as a Percent of Assets | Balance Sheet as a Percent of Assets | Balance Sheet as a Percent of Assets | Balance Sheet as a Percent of Assets | Balance Sheet as a Percent of Assets | Balance Sheet as a Percent of Assets | Balance Sheet as a Percent of Assets | Balance Sheet as a Percent of Assets | Balance Sheet as a Percent of Assets | Balance Sheet as a Percent of Assets | Balance Sheet Annual Growth Rates | Balance Sheet Annual Growth Rates | Balance Sheet Annual Growth Rates | Balance Sheet Annual Growth Rates | Balance Sheet Annual Growth Rates | Balance Sheet Annual Growth Rates | Balance Sheet Annual Growth Rates | Regulatory Capital | Regulatory Capital | Regulatory Capital |
|  |  | | Cash &<br>Equival. | MBS &<br>Invest | BOLI | Net<br>Loans (1) | Deposits | Borrowed<br>Funds | Sub.<br>Debt | Total<br>Equity | Goodwill<br>& Intang | Tangible<br>Equity | Assets | MBS,<br>Cash<br>Invests | Loans | Deposits | Borrows.<br>&Subdebt | Total<br>Equity | Tangible<br>Equity | Tier 1<br>Leverage | Tier 1<br>Risk-<br>Based | Risk-<br>Based<br>Capital |
|  **Narragansett Bancorp, Inc.** | **Narragansett Bancorp, Inc.** | MA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 |  | 2.73% | 12.20% | 1.43% | 77.83% | 85.15% | 3.30% | 3.27% | 6.44% | 0.97% | 5.48% | -1.03% | 11.29% | -3.04% | 4.80% | -43.77% | 7.41% | 9.49% | 8.22% | 10.69% | 11.94% |
|  <u>All Public Non-MHC Thrifts</u> | <u>All Public Non-MHC Thrifts</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | 6.08% | 13.62% | 1.97% | 74.64% | 76.48% | 6.54% | 0.36% | 14.89% | 0.72% | 14.76% | 3.71% | 5.81% | 3.64% | 4.06% | -13.81% | 10.16% | 11.71% | 12.24% | 14.10% | 15.97% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | 5.07% | 12.10% | 1.64% | 75.66% | 76.54% | 4.61% | 0.00% | 12.28% | 0.07% | 10.64% | 3.55% | 1.31% | 2.78% | 2.54% | -7.06% | 4.36% | 4.10% | 10.09% | 14.00% | 15.59% |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | 6.10% | 8.83% | 1.75% | 80.36% | 77.56% | 9.39% | 0.41% | 11.66% | 0.51% | 11.16% | 3.26% | -2.20% | 4.54% | 3.73% | 4.53% | 3.29% | 3.41% | 11.43% | 15.02% | 16.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | 5.60% | 10.14% | 1.23% | 80.46% | 81.32% | 4.45% | 0.00% | 10.46% | 0.22% | 10.46% | 3.08% | -3.75% | 3.13% | 2.41% | 4.34% | 4.37% | 4.59% | 10.65% | 14.27% | 15.33% |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  ECBK | ECB<br>Bancorp,<br>Inc. | MA | 7.44% | 6.05% | 0.94% | 84.32% | 72.68% | 15.80% | 0.00% | 10.66% | 0.00% | 10.66% | 13.64% | -7.33% | 18.16% | 15.70% | 11.46% | 4.36% | 4.36% | 9.83% | 13.60% | 14.55% |
|  FSBW | FS<br>Bancorp,<br>Inc. | WA | 1.21% | 9.77% | 1.14% | 83.67% | 82.33% | 5.40% | 1.55% | 9.80% | 0.42% | 9.38% | 4.48% | -5.16% | 5.85% | 0.86% | 80.11% | 5.02% | 6.42% | 11.16% | 12.59% | 13.81% |
|  HIFS | Hingham<br>Institution<br>for Savings | MA | 8.51% | 4.60% | 0.32% | 85.67% | 57.24% | 31.08% | 0.00% | 10.61% | 0.00% | 10.61% | 0.54% | 8.79% | -0.72% | 1.15% | -3.95% | 10.31% | 10.31% | 10.69% | 14.28% | 15.14% |
|  KRNY | Kearny<br>Financial<br>Corp. | NJ | 1.63% | 15.11% | 4.10% | 75.54% | 75.31% | 13.93% | 0.00% | 10.03% | 1.51% | 8.52% | -1.62% | -3.28% | -1.05% | 0.38% | -12.68% | 1.99% | 2.44% | 8.92% | 13.70% | 14.64% |
|  NECB | Northeast<br>Community<br>Bancorp,<br>Inc. | NY | 3.77% | 2.27% | 1.31% | 90.06% | 80.30% | 1.24% | 0.00% | 17.59% | 0.00% | 17.59% | 4.75% | -4.23% | 6.01% | 2.54% | NM | 8.89% | 8.89% | 16.76% | 15.47% | 15.73% |
|  RVSB | Riverview<br>Bancorp,<br>Inc. | WA | 7.98% | 10.68% | 2.38% | 73.59% | 85.68% | 1.24% | 1.86% | 9.95% | 1.85% | 8.09% | -3.27% | -23.30% | 2.88% | 1.77% | -58.84% | -8.99% | -10.76% | 10.60% | 14.37% | 15.62% |
|  TSBK | Timberland<br>Bancorp,<br>Inc. | WA | 14.69% | 10.51% | 1.08% | 70.98% | 85.18% | 1.12% | 0.00% | 13.25% | 0.75% | 12.50% | 5.88% | 19.51% | 2.20% | 5.60% | 7.05% | 7.35% | 7.90% | 12.85% | 20.26% | 21.52% |
|  TRST | TrustCo<br>Bank Corp<br>NY | NY | 11.80% | 4.79% | 0.00% | 80.47% | 86.85% | 2.29% | 0.00% | 10.31% | 0.01% | 10.30% | 2.67% | -1.16% | 3.39% | 2.83% | 23.43% | -2.46% | -2.46% | 8.24% | 14.26% | 15.51% |
|  WSBF | Waterstone<br>Financial,<br>Inc. | WI | 1.98% | 11.36% | 3.46% | 80.44% | 63.91% | 18.35% | 0.00% | 15.47% | 0.03% | 15.44% | 3.49% | 9.15% | 2.78% | 4.17% | 4.34% | 2.01% | 2.21% | 15.85% | 19.24% | 20.26% |
|  WNEB | Western<br>New<br>England<br>Bancorp,<br>Inc. | MA | 2.03% | 13.20% | 2.81% | 78.87% | 86.16% | 3.50% | 0.72% | 8.97% | 0.49% | 8.49% | 2.04% | -15.03% | 5.86% | 2.28% | -10.16% | 4.38% | 4.82% | 9.36% | 12.44% | 13.46% |

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(1) Includes loans held for sale.

Source: S&P Global Market Intelligence and RP<sup>®</sup> Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.7*** |

---

The interest-earning asset compositions for the Company and the Peer Group were somewhat similar, with loans constituting the bulk of interest-earning assets for both Narragansett Bancorp and the Peer Group. The Company's loans-to-assets ratio of 77.83% was slightly lower than the comparable Peer Group ratio of 80.36%. Comparatively, the Company's cash and investments-to-assets ratio of 14.93% matched the comparable Peer Group ratio of 14.93%. Overall, Narragansett Bancorp's interest-earning assets amounted to 92.76% of assets, which was lower than the comparable Peer Group ratio of 95.29%. The Peer Group's non-interest earning assets included BOLI equal to 1.75% of assets and goodwill/intangibles equal to 0.51% of assets, while the Company maintained BOLI equal to 1.43% of assets and goodwill/intangibles equal to 0.97% of assets.

Narragansett Bancorp's funding liabilities reflected a funding strategy that was somewhat similar to that of the Peer Group's funding composition. The Company's deposits equaled 85.15% of assets, which was above the Peer Group's ratio of 77.56%. Comparatively, the Company maintained a lower level of borrowings to fund assets, as indicated by total borrowings-to-assets ratios of 6.57% and 9.80% for Narragansett Bancorp and the Peer Group, respectively. Total interest-bearing liabilities maintained by the Company and the Peer Group, as a percent of assets, equaled 91.72% and 87.36%, respectively.

A key measure of balance sheet strength for a thrift institution is its interest-earnings assets/interest-bearing liabilities ("IEA/IBL") ratio. Presently, the Company's IEA/IBL ratio is lower than the Peer Group's ratio, based on IEA/IBL ratios of 101.13% and 109.08%, respectively. The additional capital realized from stock proceeds should serve to narrow the difference between the Company's and the Peer Group's IEA/IBL ratios, as the increase in capital provided by the infusion of stock proceeds will serve to lower the Company's level of interest-bearing liabilities funding assets and will be primarily deployed into interest-earning assets.

The growth rate section of Table 3.2 shows annual growth rates for key balance sheet items. Narragansett Bancorp's growth rates are based on annualized growth for the fifteen months ended March 31, 2026, while the Peer Group's growth rates are based on growth for the twelve months ended March 31, 2026, or the most recent twelve-month period available. Narragansett Bancorp recorded a 1.03% decrease in assets, versus asset growth of 3.26% recorded by the Peer Group. The decrease in the Company's assets was primarily due to a 3.04% decrease in loans, which was somewhat offset by an 11.29% increase in cash and investments. Comparatively, asset growth for the Peer Group was driven by a 4.54% increase in loans, which in part was funded by 2.20% decrease in cash and investments.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.8*** |

---

Asset shrinkage and a 4.80% increase in deposits funded a 43.77% reduction in the Company's borrowings. Asset growth for the Peer Group was funded through deposit growth of 3.73% and a 4.53% increase in borrowings. The Company's tangible capital growth rate equaled 9.49%, which was attributable to retention of earnings and a reduction in the accumulated other comprehensive loss. Comparatively, the Peer Group's tangible capital growth rate equaled 3.41%. The Company's post-conversion capital growth rate will initially be constrained by maintenance of a higher pro forma capital position. Additionally, implementation of any stock repurchases and dividend payments, pursuant to regulatory limitations and guidelines, could also slow the Company's capital growth rate in the longer term following the stock offering.

<u>Income and Expense Components</u> 

Table 3.3 displays statements of operations for the Company and the Peer Group. The Company's and the Peer Group's ratios are based on earnings for the twelve months ended March 31, 2026, unless indicated otherwise for the Peer Group companies. Narragansett Bancorp and the Peer Group reported net income to average assets ratios of 0.25% and 0.96%, respectively. The Peer Group's higher return was realized through a higher ratio for net interest income and lower ratios for operating expenses and credit loss provisions, which were partially offset by the Company's higher ratio for non-interest operating income.

The Peer Group's higher net interest income to average assets ratio was realized through both a higher interest income ratio and a lower interest expense ratio. The Peer Group's higher interest income ratio was supported by maintaining a higher overall yield earned on interest-earning assets (5.34% versus 5.26% for the Company), as well as maintaining a higher ratio of interest-earning assets as a percent of assets (95.29% versus 92.76% for the Company). Comparatively, the Peer Group's lower interest expense ratio was facilitated by maintaining a lower level of interest-bearing liabilities funding assets (87.36% versus 91.72% for the Company), which was partially offset by the Company's lower cost of interest-bearing liabilities (2.81% versus 2.94% for the Peer Group). Overall, Narragansett Bancorp and the Peer Group reported net interest income to average assets ratios of 2.71% and 2.96%, respectively.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.9*** |

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Table 3.3

Income as Percent of Average Assets and Yields, Costs, Spreads

Comparable Institution Analysis

For the 12 Months Ended March 31, 2026 or the Most Recent 12 Months Available

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| | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | | Net Interest Income | Net Interest Income | Net Interest Income | Net Interest Income | | Non-Interest Income | Non-Interest Income | | NonOp Items | NonOp Items | | Yields, Costs, and Spreads | Yields, Costs, and Spreads | Yields, Costs, and Spreads | | |
|  |  |  |<br>Net<br>Income | Income | Expense | NII | Loss<br>Provis.<br>on IEA |<br>NII<br>After<br>Provis. | Gain<br>on Sale of<br>Loans | Other<br>Non-Int<br>Income |<br>Total<br>Non-Int<br>Expense | Net Gains/<br>Losses (1) | Extrao.<br>Items |<br>Provision<br>for<br>Taxes | Yield<br>On IEA | Cost<br>Of IBL | Yld-Cost<br>Spread |<br>MEMO:<br>Assets/<br>FTE Emp. |<br>MEMO:<br>Effective<br>Tax Rate |
|  |  |  | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ($000) | (%) |
|  **<u>Narragansett Bancorp, Inc.</u>** | **<u>Narragansett Bancorp, Inc.</u>** | MA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 |  | 0.25% | 4.90% | 2.19% | 2.71% | 0.25% | 2.46% | 0.67% | 1.14% | 3.99% | -0.04% | 0.00% | -0.02% | 5.26% | 2.81% | 2.45% | $5445 | -6.66% |
|  <u>All Public Non-MHC Thrifts</u> | <u>All Public Non-MHC Thrifts</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | 0.69% | 5.07% | 1.90% | 3.14% | 0.05% | 3.10% | 0.05% | 0.40% | 2.70% | -0.02% | -0.01% | 0.23% | 5.38% | 2.73% | 2.69% | $10811 | 20.98% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | 0.73% | 5.03% | 1.72% | 2.98% | 0.03% | 2.93% | 0.01% | 0.30% | 2.56% | 0.00% | 0.00% | 0.19% | 5.33% | 2.58% | 2.67% | $8598 | 21.85% |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | 0.96% | 5.12% | 2.16% | 2.96% | 0.06% | 2.90% | 0.40% | 0.34% | 2.36% | -0.03% | 0.00% | 0.30% | 5.34% | 2.94% | 2.40% | $14283 | 23.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | 1.02% | 4.95% | 2.20% | 2.69% | 0.04% | 2.69% | 0.01% | 0.28% | 2.22% | 0.00% | 0.00% | 0.29% | 5.06% | 2.98% | 2.29% | $8634 | 22.85% |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  ECBK | ECB Bancorp, Inc. | MA | 0.62% | 5.30% | 3.04% | 2.26% | 0.10% | 2.16% | 0.01% | 0.08% | 1.41% | 0.00% | 0.00% | 0.21% | 5.39% | 3.71% | 1.68% | $25084 | 25.72% |
|  FSBW | FS Bancorp, Inc. | WA | 1.04% | 6.29% | 2.14% | 4.15% | 0.32% | 3.84% | 0.28% | 0.39% | 3.22% | 0.03% | 0.00% | 0.26% | 6.56% | 3.10% | 3.46% | $5511 | 20.21% |
|  HIFS | Hingham Institution for Savings | MA | 1.12% | 4.65% | 2.86% | 1.79% | 0.04% | 1.75% | 0.00% | 0.03% | 0.68% | 0.39% | 0.00% | 0.38% | 4.74% | 3.57% | 1.17% | $48381 | 25.13% |
|  KRNY | Kearny Financial Corp. | NJ | 0.47% | 4.25% | 2.27% | 1.99% | 0.04% | 1.95% | 0.01% | 0.26% | 1.65% | 0.02% | 0.00% | 0.11% | 4.52% | 2.86% | 1.66% | $14488 | 19.49% |
|  NECB | Northeast Community Bancorp, Inc. | NY | 2.18% | 7.55% | 2.55% | 5.00% | -0.02% | 5.02% | 0.00% | 0.17% | 2.13% | 0.01% | 0.00% | 0.89% | 7.89% | 3.93% | 3.96% | $14397 | 28.98% |
|  RVSB | Riverview Bancorp, Inc. | WA | -0.29% | 4.12% | 1.44% | 2.68% | 0.08% | 2.60% | 0.00% | 0.94% | 3.17% | -0.75% | 0.00% | -0.10% | 4.39% | 2.01% | 2.38% | $6239 | NM |
|  TSBK | Timberland Bancorp, Inc. | WA | 1.55% | 5.28% | 1.61% | 3.67% | 0.06% | 3.61% | 0.03% | 0.54% | 2.32% | 0.00% | 0.00% | 0.38% | 5.49% | 2.49% | 3.00% | $7655 | 19.51% |
|  TRST | TrustCo Bank Corp NY | NY | 0.99% | 4.13% | 1.41% | 2.72% | 0.03% | 2.69% | 0.00% | 0.30% | 1.67% | 0.00% | 0.00% | 0.32% | 4.23% | 1.89% | 2.34% | $8669 | 24.57% |
|  WSBF | Waterstone Financial, Inc. | WI | 1.32% | 5.26% | 2.59% | 2.67% | -0.01% | 2.69% | 3.69% | 0.26% | 4.99% | 0.00% | 0.00% | 0.35% | 5.52% | 3.29% | 2.23% | $3812 | 20.89% |
|  WNEB | Western New England Bancorp, Inc. | MA | 0.65% | 4.43% | 1.73% | 2.70% | 0.01% | 2.69% | 0.00% | 0.46% | 2.33% | 0.03% | 0.00% | 0.19% | 4.72% | 2.58% | 2.14% | $8598 | 22.85% |

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(1) Net gains/losses includes gain/loss on sale of securities and nonrecurring income and expense.

Source: S&P Global Market Intelligence and RP<sup>®</sup> Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.10*** |

---

In another key area of core earnings strength, the Company maintained a higher level of operating expenses than the Peer Group. For the period covered in Table 3.3, the Company and the Peer Group reported operating expense to average assets ratios of 3.99% and 2.36%, respectively. The Company's higher operating expense ratio is indicative of its relatively high degree of diversification into products and services which generate sources of non-interest operating income and are largely off-balance sheet activities. Consistent with the Company's higher operating expense ratio, Narragansett Bancorp maintained a comparatively higher number of employees relative to its asset size. Assets per full-time equivalent employee equaled $5.4 million for the Company, versus a comparable measure of $14.3 million for the Peer Group. On a post-offering basis, the Company's operating expenses can be expected to increase with the addition of stock benefit plans and certain expenses that result from being a publicly-traded company, with such expenses already impacting the Peer Group's operating expenses. At the same time, Narragansett Bancorp's capacity to leverage operating expenses will increase following the increase in capital that will be realized from the infusion of net stock proceeds.

When viewed together, net interest income and operating expenses provide considerable insight into a thrift's earnings strength, since those sources of income and expenses are typically the most prominent components of earnings and are generally more predictable than losses and gains realized from the sale of assets or other non-recurring activities. In this regard, as measured by their expense coverage ratios (net interest income divided by operating expenses), the Company's earnings were less favorable than the Peer Group's. Expense coverage ratios for Narragansett Bancorp and the Peer Group equaled 0.68x and 1.25x, respectively.

Sources of non-interest operating income provided a larger contribution to the Company's earnings, with such income amounting to 1.81% and 0.74% of Narragansett Bancorp's and the Peer Group's average assets, respectively. Taking non-interest operating income into account in comparing the Company's and the Peer Group's earnings, Narragansett Bancorp's efficiency ratio (operating expenses, as a percent of the sum of non-interest operating income and net interest income) of 88.27% was less favorable than the Peer Group's efficiency ratio of 63.78%.

Credit loss provisions had a larger impact on the Company's earnings, with credit loss provisions established by the Company equaling 0.25% of average assets. Comparatively, the Peer Group recorded credit loss provisions equal to 0.06% of average assets.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.11*** |

---

Non-operating gains and losses equaled a net non-operating loss of 0.04% of average assets for the Company, versus a net non-operating loss of 0.03% of average assets for the Peer Group. Typically, gains and losses generated from the sale of assets and other non-operating activities are viewed as earnings with a relatively high degree of volatility, particularly to the extent that such gains and losses result from the sale of investments or other assets that are not considered to be part of an institution's core operations. Extraordinary items were not a factor in either the Company's or the Peer Group's earnings.

Taxes had a less significant impact on the Company's earnings, as the Company recorded an effective tax benefit of 6.66% and the Peer Group recorded an effective tax rate of 23.04%. As indicated in the prospectus, the Company's effective marginal tax rate is equal to 25.00%.

<u>Loan Composition</u> 

Table 3.4 presents data related to the Company's and the Peer Group's loan portfolio compositions (including the investment in mortgage-backed securities). The Company's loan portfolio composition reflected a lower combined concentration of 1-4 family loans and mortgage-backed securities in comparison to the Peer Group (23.44% of assets versus 32.67% for the Peer Group), as the Peer Group maintained higher concentrations of both 1-4 family loans and mortgage-backed securities. Loan servicing intangibles amounted to $14.5 million for the Company, which was well above the Peer Group average of $1.1 million.

Overall, diversification into higher risk and higher yielding types of lending was similar for the Company and the Peer Group. Commercial real estate loans constituted the most significant area of lending diversification for the Company (27.53% of assets), followed by multi-family loans (10.08% of assets), commercial business loans (6.93% of assets), construction/land loans (6.36% of assets) and consumer loans (4.13% of assets). Similarly, commercial real estate loans comprised the most significant area of lending diversification for the Peer Group (19.00% of assets), followed by multi-family loans (17.65% of assets), construction/land loans (10.80% of assets), commercial business loans (4.62% of assets), and consumer loans (2.11% of assets). In total, construction/land, commercial real estate, multi-family, commercial business, and consumer loans comprised 55.03% and 54.18% of the Company's and the Peer Group's assets, respectively.

Overall, the Company's risk weighted assets/assets ratio of 75.94% approximated the Peer Group average of 75.57%.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.12*** |

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Table 3.4

Loan Portfolio Composition and Related Information

Comparable Institution Analysis

As of March 31, 2026 or the Most Recent Data Available

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | | Portfolio Composition as a Percent of Assets | Portfolio Composition as a Percent of Assets | Portfolio Composition as a Percent of Assets | Portfolio Composition as a Percent of Assets | Portfolio Composition as a Percent of Assets | Portfolio Composition as a Percent of Assets | Portfolio Composition as a Percent of Assets | Portfolio Composition as a Percent of Assets | Portfolio Composition as a Percent of Assets |
| | | |<br>MBS | 1-4<br>Family | Constr.<br>& Land | Multi-<br>Family |<br>Comm RE | Commerc.<br>Business |<br>Consumer | RWA/<br>Assets | Servicing<br>Assets |
|  |  | | **(%)** | **(%)** | **(%)** | **(%)** | **(%)** | **(%)** | **(%)** | **(%)** | **($000)** |
|  **<u>Narragansett Bancorp, Inc.</u>** | **<u>Narragansett Bancorp, Inc.</u>** | MA |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 |  | 0.00% | 23.44% | 6.36% | 10.08% | 27.53% | 6.93% | 4.13% | 75.94% | $14464 |
|  <u>All Public Non-MHC Thrifts</u> | <u>All Public Non-MHC Thrifts</u> |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | 8.99% | 28.33% | 6.13% | 12.70% | 18.31% | 8.08% | 1.56% | 79.95% | $1416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | 8.73% | 27.77% | 3.29% | 7.93% | 14.61% | 5.19% | 0.16% | 83.46% | $108 |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | 5.91% | 26.76% | 10.80% | 17.65% | 19.00% | 4.62% | 2.11% | 75.57% | $1059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | 5.70% | 24.41% | 4.42% | 13.38% | 17.49% | 4.25% | 0.07% | 74.60% | $0 |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |
|  ECBK | ECB Bancorp, Inc. | MA | 3.28% | 31.73% | 5.35% | 25.77% | 20.38% | 0.48% | 0.05% | 70.52% | $0 |
|  FSBW | FS Bancorp, Inc. | WA | 5.42% | 25.07% | 12.38% | 8.22% | 11.60% | 8.34% | 18.63% | 88.57% | $8608 |
|  HIFS | Hingham Institution for Savings | MA | 0.00% | 21.23% | 4.94% | 33.84% | 26.28% | 0.01% | 0.00% | 74.31% | $0 |
|  KRNY | Kearny Financial Corp. | NJ | 8.73% | 23.75% | 2.38% | 34.39% | 12.96% | 2.23% | 0.03% | 64.39% | $0 |
|  NECB | Northeast Community Bancorp, Inc. | NY | 0.25% | 0.15% | 65.84% | 16.38% | 1.90% | 7.43% | 0.00% | 107.89% | $0 |
|  RVSB | Riverview Bancorp, Inc. | WA | 12.88% | 10.29% | 2.36% | 6.31% | 41.94% | 11.21% | 2.01% | 74.89% | $0 |
|  TSBK | Timberland Bancorp, Inc. | WA | 5.99% | 18.67% | 7.29% | 10.38% | 29.91% | 6.28% | 0.09% | 61.97% | $678 |
|  TRST | TrustCo Bank Corp NY | NY | 3.24% | 76.81% | 0.67% | 0.67% | 2.09% | 0.28% | 0.18% | 57.18% | $0 |
|  WSBF | Waterstone Financial, Inc. | WI | 7.51% | 28.05% | 2.93% | 34.20% | 14.61% | 1.51% | 0.03% | 81.08% | $983 |
|  WNEB | Western New England Bancorp, Inc. | MA | 11.84% | 31.88% | 3.89% | 6.36% | 28.33% | 8.42% | 0.10% | 74.93% | $318 |

---

Source: S&P Global Market Intelligence and RP<sup>®</sup> Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.13*** |

---

<u>Interest Rate Risk</u> 

Table 3.5 reflects various key ratios highlighting the relative interest rate risk exposure of the Company versus the Peer Group. In terms of balance sheet composition, Narragansett Bancorp's interest rate risk characteristics were considered to be less favorable than the comparable measures for the Peer Group. Notably, the Company's tangible equity-to-assets ratio and IEA/IBL ratio were lower than the comparable Peer Group ratios. Likewise, the Peer Group maintained an advantage with respect its lower ratio of non-interest earning assets as a percent of assets. On a pro forma basis, the infusion of stock proceeds should serve to narrow the differences between the Company's and the Peer Group's balance sheet interest rate risk characteristics.

To analyze interest rate risk associated with the net interest margin, we reviewed quarterly changes in net interest income as a percent of average assets for Narragansett Bancorp and the Peer Group. In general, the comparative fluctuations in the Company's and the Peer Group's net interest income ratios implied that a slightly greater degree of interest rate risk was associated with the Company's net interest margin, based on the interest rate environment that prevailed during the period covered in Table 3.5. The stability of the Company's net interest margin should be enhanced by the infusion of stock proceeds, as interest rate sensitive liabilities will be funding a lower portion of Narragansett Bancorp's assets and the proceeds realized from the minority stock offering will be substantially deployed into interest-earning assets.

<u>Credit Risk</u> 

Overall, based on a comparison of credit risk measures, the Company's implied credit risk exposure was viewed to be greater than the Peer Group's implied credit risk exposure. As shown in Table 3.6, the Company's ratios for non-performing/assets and non-performing loans/loans, which include troubled debt restructurings that are in compliance with their modified terms, equaled 1.65% and 2.11%, respectively, versus comparable measures of 0.53% and 0.66% for the Peer Group. Loss reserves maintained as percent of loans receivable and non-performing loans equaled 1.31% and 61.95% for the Company, respectively, versus comparable measures of 0.94% and 249.97% for the Peer Group. Net loan charge-offs were a larger factor for the Company, as net loan charge-offs for the Company equaled 0.22% of loans versus 0.05% loans for the Peer Group.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.14*** |

---

Table 3.5

Interest Rate Risk Measures and Net Interest Income Volatility

Comparable Institution Analysis

As of March 31, 2026 or the Most Recent Date Available

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | Balance Sheet Measures | Balance Sheet Measures | Balance Sheet Measures | | | | | | |
|  |  | | | | | Quarterly Change in Net Interest Income | Quarterly Change in Net Interest Income | Quarterly Change in Net Interest Income | Quarterly Change in Net Interest Income | Quarterly Change in Net Interest Income | Quarterly Change in Net Interest Income |
| | | | Tangible<br>Equity/<br>Assets |<br>IEA/<br>IBL | Non-Earn.<br>Assets/<br>Assets |<br>3/31/2026 |<br>12/31/2025 |<br>9/30/2025 |<br>6/30/2025 |<br>3/31/2025 |<br>12/31/2024 |
|  |  | | (%) | (%) | (%) | (change in net interest income is annualized in basis points) | (change in net interest income is annualized in basis points) | (change in net interest income is annualized in basis points) | (change in net interest income is annualized in basis points) | (change in net interest income is annualized in basis points) | (change in net interest income is annualized in basis points) |
| **<u>Narragansett Bancorp, Inc.</u>** | **<u>Narragansett Bancorp, Inc.</u>** | MA |  |  |  |  |  |  |  |  |  |
|  March 31, 2026 | March 31, 2026 |  | 5.5% | 101.1% | 7.2% | -6 | 15 | 15 | 16 | -2 | 11 |
| **<u>All Public Non-MHC Thrifts</u>** | **<u>All Public Non-MHC Thrifts</u>** |  |  |  |  |  |  |  |  |  |  |
|  Average | Average |  | 14.8% | 113.1% | 5.7% | -4 | 6 | 8 | 11 | 3 | -1 |
|  Median |  |  | 10.6% | 114.4% | 7.2% | -1 | 8 | 9 | 9 | 3 | 1 |
| **<u>Comparable Group</u>** | **<u>Comparable Group</u>** |  |  |  |  |  |  |  |  |  |  |
|  Average | Average |  | 11.2% | 109.2% | 4.7% | -2 | 5 | 9 | 15 | 1 | 3 |
|  Median |  |  | 10.5% | 109.7% | 4.6% | 0 | 6 | 8 | 15 | 3 | 5 |
| **<u>Comparable Group</u>** | **<u>Comparable Group</u>** |  |  |  |  |  |  |  |  |  |  |
|  ECBK | ECB Bancorp, Inc. | MA | 10.7% | 110.5% | 2.2% | 11 | 14 | 13 | 20 | -9 | 8 |
|  FSBW | FS Bancorp, Inc. | WA | 9.4% | 106.0% | 5.4% | -13 | -3 | 11 | 4 | -7 | -6 |
|  HIFS | Hingham Institution for Savings | MA | 10.6% | 111.8% | 1.2% | 10 | 14 | 9 | 17 | 22 | 16 |
|  KRNY | Kearny Financial Corp. | NJ | 8.5% | 103.4% | 7.7% | 7 | 3 | 10 | 9 | 7 | 2 |
|  NECB | Northeast Community Bancorp, Inc. | NY | 17.6% | 117.9% | 3.9% | -19 | -18 | 5 | 22 | -18 | -37 |
|  RVSB | Riverview Bancorp, Inc. | WA | 8.1% | 103.9% | 7.7% | -9 | 18 | 0 | 16 | -1 | 13 |
|  TSBK | Timberland Bancorp, Inc. | WA | 12.5% | 111.4% | 3.8% | -12 | 3 | 7 | 4 | 7 | 7 |
|  TRST | TrustCo Bank Corp NY | NY | 10.3% | 108.9% | 2.9% | 3 | 3 | 7 | 7 | 5 | -1 |
|  WSBF | Waterstone Financial, Inc. | WI | 15.4% | 114.0% | 6.2% | 1 | 12 | 19 | 15 | 3 | 24 |
|  WNEB | Western New England Bancorp, Inc. | MA | 8.5% | 104.1% | 5.9% | -1 | 8 | 4 | 31 | 3 | 2 |

---

NA=Change is greater than 100 basis points during the quarter.

Source: S&P Global Market Intelligence and RP<sup>®</sup> Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.15*** |

---

Table 3.6

Credit Risk Measures and Related Information

Comparable Institution Analysis

As of March 31, 2026 or the Most Recent Date Available

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | REO/<br>Assets | NPAs &<br>90+Del/<br>Assets (1) | NPLs/<br>Loans (2) | Rsrves/<br>Loans HFI | Rsrves/<br>NPLs (2) | Rsrves/<br>NPAs &<br>90+Del (1) | Net Loan<br>Chargeoffs (3) | NLCs/<br>Loans |
|  |  |  | (%) | (%) | (%) | (%) | (%) | (%) | ($000) | (%) |
| **<u>Narragansett Bancorp, Inc.</u>** | **<u>Narragansett Bancorp, Inc.</u>** | MA |  |  |  |  |  |  |  |  |
|  March 31, 2026 | March 31, 2026 |  | 0.00% | 1.65% | 2.11% | 1.31% | 61.95% | 61.93% | $5102 | 0.22% |
| **<u>All Public Non-MHC Thrifts</u>** | **<u>All Public Non-MHC Thrifts</u>** |  |  |  |  |  |  |  |  |  |
|  Averages | Averages |  | 0.03% | 0.68% | 0.80% | 0.95% | 256.10% | 235.01% | $14374 | 0.08% |
|  Medians | Medians |  | 0.01% | 0.47% | 0.56% | 0.92% | 195.21% | 192.28% | $58 | 0.00% |
| **<u>Comparable Group</u>** | **<u>Comparable Group</u>** |  |  |  |  |  |  |  |  |  |
|  Averages | Averages |  | 0.01% | 0.53% | 0.66% | 0.94% | 249.97% | 247.13% | $1227 | 0.05% |
|  Medians | Medians |  | 0.00% | 0.55% | 0.70% | 0.97% | 160.40% | 160.40% | $2 | 0.00% |
|  Comparable Group | Comparable Group |  |  |  |  |  |  |  |  |  |
|  ECBK | ECB Bancorp, Inc. | MA | 0.00% | 0.07% | 0.09% | 0.74% | 846.50% | 846.50% | $4 | 0.00% |
|  FSBW | FS Bancorp, Inc. | WA | 0.00% | 0.63% | 0.75% | 1.22% | 160.40% | 160.40% | $9309 | 0.35% |
|  HIFS | Hingham Institution for Savings | MA | 0.03% | 0.87% | 0.97% | 0.74% | 76.03% | 73.12% | $0 | 0.00% |
|  KRNY | Kearny Financial Corp. | NJ | 0.00% | 1.06% | 1.38% | 0.77% | 55.77% | 55.77% | $2393 | 0.04% |
|  NECB | Northeast Community Bancorp, Inc. | NY | 0.00% | 0.00% | 0.00% | 0.25% | NM | NM | $88 | 0.00% |
|  RVSB | Riverview Bancorp, Inc. | WA | 0.00% | 1.04% | 1.40% | 1.40% | 100.02% | 100.02% | $1298 | 0.12% |
|  TSBK | Timberland Bancorp, Inc. | WA | 0.01% | 0.47% | 0.64% | 1.27% | 198.28% | 193.12% | 20 | 0.00% |
|  TRST | TrustCo Bank Corp NY | NY | 0.02% | 0.35% | 0.41% | 1.00% | 246.90% | 232.14% | 238 | 0.00% |
|  WSBF | Waterstone Financial, Inc. | WI | 0.01% | 0.64% | 0.78% | 1.05% | 124.80% | 122.06% | 121 | -0.01% |
|  WNEB | Western New England Bancorp, Inc. | MA | 0.00% | 0.17% | 0.21% | 0.93% | 441.04% | 441.04% | 446 | -0.02% |

---

(1) NPAs are defined as nonaccrual loans, accruing loans 90 days or more past due, performing TDRs, and OREO.

(2) NPLs are defined as nonaccrual loans, accruing loans 90 days or more past due and performing TDRs.

(3) Net loan chargeoffs are shown on a last twelve month basis.

Source: S&P Global Market Intelligence and RP<sup>®</sup> Financial, LC. calculations. The information provided in this table has been obrained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***PEER GROUP ANALYSIS*** |
|  | ***III.16*** |

---

<u>Summary</u> 

Based on the above analysis, RP Financial concluded that the Peer Group forms a reasonable basis for determining the pro forma market value of the Company. Such general characteristics as asset size, capital position, interest-earning asset composition, funding composition, core earnings measures, loan composition, credit quality, and exposure to interest rate risk all tend to support the reasonability of the Peer Group from a financial standpoint. Those areas where differences exist will be addressed in the form of valuation adjustments to the extent necessary.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.1*** |

---

**IV. VALUATION ANALYSIS** 

<u>Introduction</u> 

This chapter presents the valuation analysis and methodology prepared pursuant to the regulatory valuation guidelines, and the valuation adjustments and assumptions incorporated in the determination of the estimated pro forma market value of the common stock to be issued in conjunction with the Company's minority stock offering.

<u>Appraisal Guidelines</u> 

The federal regulatory appraisal guidelines required by the FRB, the OCC, the FDIC, and state banking agencies, including the Commissioner, specify the pro forma market value methodology for determining the pro forma market value of a converting mutual institution. Pursuant to this methodology: (1) a peer group of comparable publicly-traded thrifts is selected; (2) a financial and operational comparison of the subject company to the peer group is conducted to determine key differences; and (3) a valuation analysis in which the pro forma market value of the subject company is determined based on the market pricing of the peer group as of the date of valuation, incorporating valuation adjustments for key differences relative to the selected peer group. In addition, the pricing characteristics of recent conversions, both at the time of conversion and in the aftermarket, must be considered. Given the unique differences in the pricing characteristics of publicly-traded MHCs relative to fully-converted thrift stocks, we have also reviewed the pro forma pricing characteristics of publicly-traded MHCs on a fully-converted basis assuming they complete a second-step conversion to a full stock company based on their current stock price and standard offering assumptions.

<u>RP Financial Approach to the Valuation</u> 

The valuation analysis herein complies with such regulatory approval guidelines. Accordingly, the valuation incorporates a detailed analysis based on the Peer Group, discussed in Chapter III, which constitutes "fundamental analysis" techniques. Additionally, the valuation incorporates a "technical analysis" of recently completed conversions and pro forma pricing of public MHCs on a fully-converted basis. It should be noted that these valuation analyses cannot possibly fully account for all the market forces which impact trading activity and pricing characteristics of a stock on a given day.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.2*** |

---

The pro forma market value determined herein is a preliminary value for the Company's to-be-issued stock. Throughout the application phase and stock issuance process, RP Financial will: (1) review changes in the Company's operations and financial condition; (2) monitor the Company's operations and financial condition relative to the Peer Group to identify key fundamental changes; (3) monitor external factors that may impact value including, but not limited to, local and national economic conditions, interest rates and the stock market environment, including the market for bank and thrift stocks and the selected Peer Group; and (4) monitor pending conversion offerings and the pro forma pricing of public MHCs on a fully-converted basis. If material changes should occur prior to the close of the offering, RP Financial will evaluate if updated valuation reports should be prepared reflecting such changes and their related impact on value, if any. RP Financial will also prepare a final valuation update at the closing of the offering regarding the range of value and the proposed closing value.

The appraised value determined herein is based on the current market and operating environment for the Company and for all banks and thrifts. Subsequent changes in the local and national economy, the legislative and regulatory environment, accounting and income taxes, the stock market, interest rates and other external forces (such as natural disasters or major world events), which may occur from time to time (often with great unpredictability) may materially impact the market value of all bank and thrift stocks, the selected Peer Group, pending conversion offerings and public MHCs, including the pro forma market value of Narragansett Bancorp. To the extent a change in factors impacting the Company's value can be reasonably anticipated and/or quantified, RP Financial has incorporated the estimated impact into its analysis.

<u>Valuation Analysis</u> 

A fundamental analysis identifying similarities and differences relative to the Peer Group was presented in Chapter III. The following sections summarize the key differences between the Company and the Peer Group and how those differences affect the pro forma valuation. Consistent with the regulatory valuation guidelines, key differences have been evaluated in the following areas: financial condition; profitability, growth and viability of earnings; asset growth; primary market area; dividends; liquidity of the shares; marketing of the issue; management; and the effect of government regulations and/or regulatory reform. We have also considered the market for bank and thrift stocks, including new issues and the pro forma pricing of public MHCs on a fully-converted basis, to assess the impact on value of Narragansett Bancorp coming to market at this time.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.3*** |

---

1. <u>Financial Condition</u>

The financial condition of an institution is an important determinant in pro forma market value because investors typically look to such factors as overall asset/liability ("A/L") composition, credit quality, balance sheet liquidity, funding liabilities, and capital, in assessing investment attractiveness. The similarities and differences in the Company's and the Peer Group's financial strengths are noted as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Overall A/L Composition</u>. Loans funded by retail deposits were the primary components of both Narragansett
Bancorp's and the Peer Group's balance sheets. Based on reported financials, the Company's IEA composition exhibited a slightly lower concentration of loans and a similar concentration of cash and investments. The Company and the
Peer Group exhibited a similar degree of diversification into higher risk types of loans. Overall, the Company's asset composition provided for a slightly lower yield earned on IEA. Narragansett Bancorp's funding composition reflected a
higher level of deposits and a lower level of borrowings in comparison to the Peer Group averages, which provided the Company with a slightly lower cost of funds. Overall, as a percent of assets, the Company maintained a lower level of IEAs and a
higher level of IBLs relative to the Peer Group averages, which translated into a lower IEA/IBL ratio for the Company. After factoring in the impact of the net stock proceeds, the Company's IEA/IBL ratio is expected to be more comparable to
the Peer Group's ratio. On balance, RP Financial concluded that A/L composition was a neutral factor in our adjustment for financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Credit Quality.</u> The Company's ratios for non-performing assets as a percent of assets and non-performing loans as a percent of loans were higher than the comparable ratios for the Peer Group. In comparison to the Peer Group, the Company maintained lower loss
reserves as a percent of non-performing loans and higher reserves as a percent of loans. Net loan charge-offs as a percent of loans were higher for the Company. Overall, RP Financial concluded that credit
quality was a moderate negative factor in our adjustment for financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Balance Sheet Liquidity</u>. The Company maintained a similar level of cash and investment securities as the
Peer Group. Following the infusion of stock proceeds, the Company's cash and investments ratio is expected to increase. Net proceeds retained at the mid-tier holding company level will be deposited into
the Bank. The Company's borrowing capacity appears to be slightly greater than the Peer Group's borrowing capacity, based on the Company's lower level of borrowings and the net offering proceeds should initially reduce the need for
borrowings to support balance sheet liquidity. Overall, RP Financial concluded that balance sheet liquidity was a slight positive factor in our adjustment for financial condition.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.4*** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Funding Liabilities</u>. The Company's funding liabilities mix reflected higher deposits and lower
borrowings relative to the comparable Peer Group averages, which translated into a slightly lower cost of funds for the Company. The Company's ratio of total IBL as a percent of assets was above the Peer Group's average. Following the
stock offering, the increase in the Company's capital will reduce the level of IBL funding assets. Overall, RP Financial concluded that funding liabilities were a neutral factor in our adjustment for financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Capital</u>. The Company currently operates with a lower tangible equity-to-assets ratio than the Peer Group. Following the stock offering, Narragansett Bancorp's pro forma tangible capital position will remain lower than the Peer Group's tangible equity-to-assets ratio. On balance, RP Financial concluded that capital strength was a moderate negative factor in our adjustment for financial condition.

On balance, Narragansett Bancorp's pro forma balance sheet strength was considered to be less favorable than the Peer Group's balance sheet strength, and thus, a slight downward adjustment was applied for the Company's financial condition.

2. <u>Profitability, Growth and Viability of Earnings</u>

Earnings are a key factor in determining pro forma market value, as the level and risk characteristics of an institution's earnings stream and prospects to generate future earnings heavily influence the multiple that the investment community will pay for earnings. The comparative summary for profitability, growth and viability of earnings of the Company and the Peer Group appears below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Reported Earnings</u>. The Company's reported earnings were lower than the Peer Group's on a ROAA
basis. The Peer Group maintained earning advantages with respect to net interest income, credit loss provisions and operating expense, which were partially offset by the Company's more favorable ratio for non-interest operating income. The Company's reinvestment of stock proceeds will increase interest income; however, this benefit will be partially mitigated by the increase in operating expenses
associated with operating as a publicly-traded company and the implementation of stock benefit plans. Overall, the Company's reported earnings were considered to be less favorable than the Peer Group's reported earnings and, thus, RP
Financial concluded that this was a moderate negative factor in our adjustment for profitability, growth and viability of earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Core Earnings</u>. The Company operated with a lower net interest income ratio, a higher operating expense
ratio and a higher level of non-interest operating income. The Company's lower net interest income ratio and higher operating expense ratio translated into a lower expense coverage ratio in comparison to
the Peer Group's ratio (equal to 0.68x versus 1.25x for the Peer Group). Similarly, the Company's efficiency ratio of 88.27% was less favorable than the Peer Group's efficiency ratio of 63.78%. Credit loss provisions had a larger

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.5*** |

---

impact on the Company's earnings. The Company's pro forma earnings on a core basis – incorporating the reinvestment of the proceeds in short- to intermediate-term investments and the increased operating expenses from being a public company with stock benefit plans – are expected to remain less favorable relative to the Peer Group. Therefore, RP Financial concluded that this was a moderate negative factor in our adjustment for profitability, growth and viability of earnings. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Interest Rate Risk</u>. Quarterly changes in the Company's and the Peer Group's net interest
income to average assets ratios indicated that a slightly greater similar degree of volatility was associated with the Company's net interest margin. Other measures of interest rate risk, such as capital, IEA/IBL and non-interest earning assets ratios were more favorable for the Peer Group. On a pro forma basis, the infusion of stock proceeds can be expected to narrow the differences between the Company's and Peer
Group's equity-to-assets and IEA/ILB ratios, as well as enhance the stability of the Company's net interest margin through the reinvestment of stock proceeds
into interest-earning assets. On balance, RP Financial concluded that interest rate risk was a slight negative factor in our adjustment for profitability, growth and viability of earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Credit Risk</u>. In terms of future exposure to credit quality-related losses, the Company maintained a
slightly lower concentration of assets in loans, while the Company's and the Peer Group's loan compositions reflected a similar degree of diversification into higher risk types of loans. Credit loss provisions were a larger factor in the
Company's earnings, net loan charge-offs as a percent of loans were higher for the Company and non-performing loans as a percent of loans were higher for the Company. Overall, RP Financial concluded that
credit risk was a moderate negative factor in the adjustment for profitability, growth and viability of earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Earnings Growth Potential</u>. Several factors were considered in assessing earnings growth potential. First,
the Peer Group currently maintains a higher net interest margin than the Company, which would tend to facilitate continuation of a stronger net interest margin going forward for the Peer Group. Second, with the infusion of stock proceeds, the
Company's growth potential through leverage will remain less than the Peer Group's. Third, the Company's higher ratio of non-interest operating income and the Peer Group's lower
operating expense ratio were viewed as respective advantages to sustain earnings growth during periods when net interest margins come under pressure as the result of adverse changes in interest rates. Overall, earnings growth potential was
considered to be a slight negative factor in our adjustment for profitability, growth and viability of earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Return on Equity</u>. Currently, the Company's core ROE is lower than the Peer Group's core ROE.
Accordingly, as the result of the increase in capital that will be realized from the infusion of net stock proceeds into the Company's equity, the Company's pro forma return on equity on a core earnings basis will continue be less than
the Peer Group's return on equity ratio. Therefore, this was a moderate negative factor in the adjustment for profitability, growth and viability of earnings.

On balance, a moderate downward has been applied for profitability, growth and viability of earnings.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.6*** |

---

3. <u>Asset Growth</u>

Comparative asset growth rates for the Company and the Peer Group showed a 1.03% decrease in the Company's assets, versus a 3.26% increase in the Peer Group's assets. Asset shrinkage for the Company was primarily due to a 3.04% decrease in loans, which was largely offset by an 11.29% increase in cash and investments. The Peer Group's asset growth was primarily sustained by a 4.54% increase in loans, which was partially offset by a 2.20% decrease in cash and investments. Overall, the Company's recent asset growth trends would tend to be viewed as less favorable relative to the Peer Group's asset growth trends in terms of supporting future earnings growth. On a pro forma basis, the Company's tangible equity-to-assets ratio will remain lower than the Peer Group's tangible equity-to-assets ratio and, thus, the Company's capacity to grow assets through leverage will remain less than the Peer Group's. On balance, a slight downward adjustment was applied for asset growth.

4. <u>Primary Market Area</u>

The general condition of an institution's market area has an impact on value, as future success is in part dependent upon opportunities for profitable activities in the local market served. Narragansett Bancorp serves the Southcoast of Massachusetts and the state of Rhode Island through 25 full service branch offices. Operating in markets that are generally densely populated provides the Company with growth opportunities, but such growth must be achieved in a highly competitive market environment. The Company competes against significantly larger institutions that provide a larger array of services and have significantly larger branch networks than maintained by Narragansett Bancorp.

The Peer Group companies operate in markets with a wide range of populations, which on average were slightly larger compared to Bristol County. Population growth for the primary market area counties served by the Peer Group companies reflected a range of growth rates, but overall population growth rates in the markets served by the Peer Group companies were equal to Bristol County's five-year historical growth rate and slightly stronger than Bristol County's projected five-year population growth rate. Bristol County has a lower per capita income compared to the Peer Group's average per capita income and, on average, the Peer Group's primary market area counties were more affluent markets within their respective states compared to Bristol County's per capita income as a percent of Massachusetts' per capita

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.7*** |

---

income (94.3% for the Peer Group versus 77.3% for Bristol County). The average and median deposit market shares maintained by the Peer Group companies were lower than the Company's market share of deposits in Bristol County. Overall, the degree of competition faced by the Peer Group companies was viewed to be similar to or slightly greater than the Company's competitive environment in Bristol County, while the growth potential in the markets served by the Peer Group companies was for the most part viewed to be slightly more favorable than provided by the Company's primary market area. Summary demographic and deposit market share data for the Company and the Peer Group companies is provided in Exhibit III-3. As shown in Table 4.1, the average unemployment rate for the primary market area counties served by the Peer Group companies was lower than the unemployment rate reflected for Bristol County. On balance, we concluded that no adjustment was appropriate for the Company's market area.

Table 4.1

Headquarters Market Area Unemployment Rates

Narragansett Bancorp, Inc. and the Peer Group Companies (1)

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| | | |
|:---|:---|:---|
|  | County | February 2026<br>Unemployment |
|  Narragansett Bancorp, Inc. - MA | Bristol | 6.2% |
|  Peer Group Average |  | 5.3 |
|  <u>The Peer Group</u> |  |  |
|  ECB Bancorp, Inc. - MA | Middlesex | 4.5 |
|  FS Bancorp, Inc. – WA | Snohomish | 5.7 |
|  Hingham Institution for Savings – MA | Plymouth | 5.3 |
|  Kearny Financial Corp. – NJ | Essex | 6.2 |
|  Northeast Community Bancorp, Inc. - NY | Westchester | 4.1 |
|  Riverview Bancorp, Inc. - WA | Clark | 5.3 |
|  Timberland Bancorp, Inc. – WA | Grays Harbor | 6.5 |
|  TrustCo Bank Corp - NY | Schenectady | 4.5 |
|  Waterstone Financial, Inc. – WI | Milwaukee | 5.0 |
|  Western New England Bancorp, Inc. – MA Hampden | Western New England Bancorp, Inc. – MA Hampden | 6.2 |

---

(1) Unemployment rates are not seasonally adjusted.

Source: S&P Global Market Intelligence.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.8*** |

---

5. <u>Dividends</u>

At this time, the Company has not established a dividend policy. Future declarations of dividends by the Board of Directors will depend upon a number of factors, including investment opportunities, growth objectives, financial condition, profitability, tax considerations, minimum capital requirements, regulatory limitations, stock market characteristics, and general economic conditions.

Nine of the ten Peer Group companies pay regular cash dividends, with implied dividend yields ranging from 0.90% to 5.52%. The average dividend yield on the stocks of the Peer Group institutions equaled 2.61% as of May 4, 2026. Comparatively, as of May 4, 2026, the average dividend yield on the stocks of all fully-converted publicly-traded thrifts equaled 2.19%.

Our valuation adjustment for dividends for Narragansett Bancorp also considered the regulatory policy with regard to payment of dividends to the MHC. Under current FRB and FDIC policy, any dividends declared by the Company would be required to be paid to all shareholders – including public shareholders and the MHC with its majority ownership position. Accordingly, dividends paid by the Company would increase the amount of assets held by the MHC, after adjusting for applicable income taxes, and, thereby, increase the implied dilution incurred by the minority shareholders in a second-step conversion pursuant to the calculation to account for net assets held by the MHC in a second-step offering.

Overall, while the Company has not established a definitive dividend policy prior to its stock offering, the Company's capacity to pay a dividend comparable to the Peer Group's average dividend yield is viewed to be not as strong based on the Company's lower pro forma earnings and lower pro forma equity-to-assets ratio. Furthermore, dividend payments retained by the MHC would increase the implied dilution to minority shareholders in a second-step offering. On balance, we concluded that a slight downward adjustment was warranted for purposes of the Company's dividend policy.

6. <u>Liquidity of the Shares</u>

The Peer Group is by definition comprised of companies that are traded in the public markets. All ten of the Peer Group members trade on the NASDAQ system. Typically, the number of shares outstanding and market capitalization provides some indication of the liquidity in a particular stock. The market capitalization of the Peer Group companies ranged from

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.9*** |

---

$105.7 million to $832.1 million as of May 4, 2026, with average and median market values of $370.5 million and $304.1 million, respectively. The shares issued and outstanding of the Peer Group companies ranged from 2.2 million to 64.7 million, with average and median shares outstanding of 18.1 million and 15.7 million, respectively. The Company's stock offering is expected to have a pro forma public market value that is below the Peer Group's range of market values and shares outstanding that is in the lower half of the Peer Group's range of shares outstanding. Like the Peer Group companies, the Company's stock is expected to be quoted on NASDAQ following the stock offering. Overall, we anticipate that the Company's public stock will have a similar trading market compared to the stocks of the Peer Group companies and, therefore, concluded no adjustment was necessary for this factor.

7. <u>Marketing of the Issue</u>

Three separate markets exist for thrift stocks: (1) the after-market for public companies, both fully-converted stock companies and MHCs, in which trading activity is regular and investment decisions are made based upon financial condition, earnings, capital, ROE, dividends and future prospects; (2) the new issue market in which converting thrifts are evaluated on the basis of the same factors but on a pro forma basis without the benefit of prior operations as a publicly-held company and stock trading history; and (3) the bank and thrift acquisition market. Each of these markets has been considered in the valuation of the Company's to-be-issued stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>The Public Market</u>

The value of publicly-traded bank and thrift stocks is easily measurable and is tracked by most investment houses and related organizations. Exhibit IV-1 provides pricing and financial data on all publicly-traded thrifts. In general, bank and thrift stock values react to market stimuli such as interest rates, inflation, perceived industry health, projected rates of economic growth, regulatory issues, and stock market conditions in general. Exhibit IV-2 displays historical stock market trends for various indices and includes historical stock price index values for thrifts and commercial banks. Exhibit IV-3 displays various stock price indices as of May 4, 2026.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.10*** |

---

In terms of assessing general stock market conditions, the performance of the overall stock market has generally been positive in recent quarters. Stocks traded unevenly at the start of the third quarter of 2025, as trade tensions moved to the forefront with President Trump setting an August 1 deadline for targeted nations to avoid the U.S. imposing reciprocal tariffs. NASDAQ closed at a record high in the second week of July, which was facilitated by Nividia becoming the first company to reach a market value of $4 trillion. New tariff threats and June's CPI showing an acceleration of inflation pressured stocks lower in mid-July. The S&P 500 and the NASDAQ closed at record highs going into the second half of July, as upbeat earnings reports from some major companies lifted investor optimism that corporate earnings could weather uncertainty in the market regarding U.S. tariff negotiations. A U.S.-Japan tariff deal and signs of progress with other trade partners lifted stocks heading into the final week of July, with the S&P 500 and NASDAQ extending a run of record high closes into the last week of July. Stocks ended July closing lower and started August with a sharp one-day sell-off, as investors reacted to July's employment report showing lower-than-expected job growth and the signing of an executive order that would raise tariffs on many nations beginning on August 7<sup>th</sup>. The one-day selloff was followed by stocks rebounding to start the first full week of Augst, as worries about the economy gave way to growing optimism that the Federal Reserve would cut rates in September. A mid-August 2025 stock market rally was spurred by favorable inflation data, which raised investor optimism that the Federal Reserve would cut rates in September. After trading in a mixed range heading into the second half of August, stocks surged higher in a one-day rally as the Federal Reserve Chairman's speech on the economy raised hopes of a rate cut in September. An upward revision to second quarter GDP growth served as a catalyst for the Dow Jones Industrial Average ("DJIA") and S&P 500 closing at record highs in late August. After posting gains for the month of August, inflation concerns and a weak employment report for August pressured major U.S. stock indexes lower at the start of September. Stocks rallied heading into mid-September, with all three of the major U.S. stock indexes closing at record highs on heightened expectations that the Federal Reserve would move to cut interest rates in September. After the Federal Reserve cut rates by a quarter point as expected, the positive trend in the broader stock market continued going into the second half of September. Tech shares led major U.S. stock indexes lower for three consecutive sessions in late-September, which was followed by major U.S. stock indexes trading higher in the last few trading sessions of the third quarter.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.11*** |

---

Major U.S. stock indexes edged higher to close at record highs at the beginning of the fourth quarter of 2025, while renewal of a trade war between the U.S. and China provided for choppy stock market conditions going into mid-October. Strong corporate earnings reports, easing trade tensions with China and encouraging inflation data propelled major U.S. stock indexes to record high closes in the second half of October. Stocks finished mixed after the Federal Reserve cut interest rates on October 29<sup>th</sup>, while casting doubt on expectations of future rate cuts. A slide in big tech shares led the broader stock market lower in the first week of November, as investors gave consideration to the rally in artificial intelligence ("AI") shares, the uncertain outlook for future rate cuts by the Federal Reserve and weak economic data. As Congress moved closer to ending the government shutdown, stocks advanced with the DJIA closing above 48000 on November 12<sup>th</sup>. The upturn in stocks was followed by a selloff, as concerns about a flood of delayed economic data, the prospect of slowing interest rate cuts and overvalued tech companies pressured stocks lower going into the second half of November. Growing optimism that the Federal Reserve would cut rates in December fueled a stock market rebound in the final week of November. Stocks dipped lower at start of December in reaction to the Bank of Japan's governor hinting at a potential rate increase, which was followed by stocks trading mixed ahead of the Federal Reserve's December meeting. The Federal Reserve's quarter-point rate cut on December 10<sup>th</sup> sparked a stock market rally, with the DJIA closing at a record high. Following the rate-cut rally, stocks retreated through mid-December as investors took into consideration an increase in the November unemployment rate and the potential for AI growth not meeting expectations. November's CPI reading showing lower-than-expected inflation helped stocks to reverse course and trade higher going into the second half of December. Stronger-than-expected third quarter GDP growth sustained the positive trend for the broader stock market going into the last week of 2025, with the S&P 500 closing at a record high. Stocks retreated in the final trading days of 2025, which was led by a decline in tech shares on yearend profit taking. Overall, the DJIA closed at 48063.29 on the last day of trading in 2025, an increase of 13.0% for 2025, while the S&P 500 and the NASDAQ Composite ended 2025 with respective increases of 16.4% and 20.4%.

Broad-based gains pushed the DJIA and S&P 500 to record highs in the first few days of trading in 2026, with energy and bank shares being among the strongest performing sectors. Expectations of an improving economy in 2026 helped to sustain the upward trend in stocks going into mid-January, which was followed by a heightened degree of market volatility in the second half of January. Stocks plunged on January 20<sup>th</sup> after President Trump stepped up his campaign to take over Greenland and threatened new restrictions on trade with Europe. The one-day selloff was followed by stocks rallying on news that President Trump and NATO had agreed on a framework for a deal on Greenland that would take away the need for new

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.12*** |

---

tariffs on Europe. A sharp selloff in gold and silver futures weighed on the broader stock market at the end of January, which was followed by stocks advancing at the beginning of February on signs that the U.S. economy was gaining momentum with the DJIA closing above 50000 for the first time on February 6<sup>th</sup>. Worries that the rapidly growing AI industry would hurt the long-term outlook for technology and financial companies, along with U.S. military build-up in the Middle East, pressured stock lower through mid-February. Technology stocks led a stock market rebound in late-February, which was followed by stocks generally trading lower through the first half of March. Factors contributing to the stock market selloff included concerns about AI disruption, market stress for private-credit lenders, a spike in oil prices caused by the broadening Middle East conflict and a disappointing employment report for March. Concerns over how long the war with Iran would last and the prospect of Federal Reserve interest cuts being dimmed by higher oil prices sustained the broader stock market downturn through late-March, as the DJIA and NASDAQ moved into correction territory. Stocks ended a weak first quarter with a strong rally, which was driven by investors seeing a potential off ramp to the war with Iran.

After trading in a mixed range at the beginning of the second quarter of 2026, a two-week cease-fire between the U.S. and Iran and the prospect of a peace deal that would reopen the Strait of Hormuz propelled stock market gains through mid-April. Uncertainty surrounding the ongoing negotiations between the U.S. and Iran provided for an up and down market in the second half April, with the major U.S. stock indexes rallying higher at end of April in reaction to the strong earnings reported by Alphabet and Caterpillar. Overall, April was the best month for stocks since 2020. The first couple of trading days of May saw the NASDAQ and the S&P 500 close at fresh highs, which was followed by stocks trading lower as fighting in the Iran war escalated and oil prices spiked higher. On May 4, 2026, the DJIA closed at 48941.90, an increase of 18.7% from one year ago and an increase of 1.8% year-to-date, and the NASDAQ closed at 25067.80, an increase of 40.5% from one year ago and an increase of 7.9% year-to-date. The S&P 500 Index closed at 7200.75 on May 4, 2026, an increase of 27.4% from one year ago and an increase of 5.2% year-to-date.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.13*** |

---

The market for bank and thrift stocks has also generally trended higher in recent quarters. Bank shares trended higher at the start of the third quarter of 2025, which was followed by a slight pullback in bank shares ahead of the start of the second quarter earnings season on news that inflation accelerated in June. Bank shares edged higher going into the second half of July, as second quarter earnings posted by some of the big banks were viewed as generally favorable. Announcements of some tariff deals getting done contributed to bank shares trading higher heading into late-July, which was followed by bank shares retreating at the start of August pursuant to the employment report for July triggering concerns that the U.S. economy was beginning to weaken. Banks' shares edged higher following the August 1<sup>st</sup> selloff, as investors weighed the growing likelihood that the Federal Reserve would cut interest rates in September based on there were more signs that the economy was cooling. Inflation data that boosted investor confidence for a Federal Reserve rate cut lifted bank shares in mid-August. Bank stocks participated in the broader stock market rally that was triggered by the Federal Reserve Chairman's August 22<sup>nd</sup> speech on the economy, which raised hopes of a rate cut in September. The positive trend in bank shares continued for the balance of August, which was followed by bank stocks edging lower at the start of September as higher interest rates and the disappointing jobs report for August weighed on economically sensitive stocks. As investors became more confident that the Federal Reserve would cut interest rates, bank shares traded up slightly ahead of the Federal Reserve's mid-September meeting. The Federal Reserve's as expected quarter-point rate cut and penciling in two more rate cuts for 2025 boosted bank shares going into the second half of September, which was followed by bank stocks trading in a narrow for the balance of the third quarter.

Profit taking and an uncertain outlook for the economy translated into bank stocks edging lower at the start of the fourth quarter of 2025. A flare-up in the U.S.-China trade war furthered the downturn in bank shares going into the mid-October onset of the third quarter earnings season. Credit loss concerns triggered by loan losses recorded by some regional banks and the rekindling of the U.S.-China trade war pressured bank stocks lower going into the second half of October. Bank stocks traded higher along with the broader stock market in late-October and then closed lower on October 29<sup>th</sup> as the Federal Reserve lowered rates as expected but tempered expectations of further rate cuts. The slight pullback was followed by bank shares edging higher in the first week of November. After trading higher on signs that Congress was closing in on a deal to reopen the government, bank shares retreated in conjunction with the broader market through mid-November. The growing likelihood of a December Federal Reserve rate-cut served as the basis for bank shares trading higher to close out November and into early-December. JPMorgan's forecast of higher than forecasted expenses for 2026 pulled bank shares lower ahead of the Federal Reserve's rate decision, which was followed by bank shares trading up on news of a 25 basis point rate-cut on

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.14*** |

---

December 10<sup>th</sup>. Bank shares traded in a narrow range through the mid-December release of November's employment report, which showed an uptick in the unemployment rate. Stronger-than-expected third quarter GDP growth contributed to bank shares edging higher in the second half of December. For 2025 overall, the S&P U.S. BMI Banks Index closed at 254.1 on the last day of trading in 2025, an increase of 25.1% for 2025.

Bank stocks participated in the broader stock market rally in the first week of trading for 2026, which was followed by a mid-January downturn in bank shares as JPMorgan's fourth quarter earnings report left investors disappointed. As fourth quarter bank earnings generally met expectations, bank shares traded in a narrow range for the balance of January. After trading higher at the beginning of February on indications that U.S. economy was gaining momentum, bank stocks were among the sectors that experienced a mid-February selloff on concerns that AI would hurt the long-term outlook for financial companies. Concerns about the direction of interest rates, fading hopes of a quick resolution to the war with Iran and a challenging market for private lenders factored into a continuation of bank shares retreating in the second half of March. Bank stocks rallied along with the broader stock market at the conclusion of the first quarter and into early April and then stabilized through mid-April at the start of the second quarter earnings season. As bank earnings were generally in-line with expectations, bank stocks traded in a narrow range through the second half of April and the beginning of May. A spike in oil prices and higher interest rates translated into bank shares trading lower at the start of the first full week of May. On May 4, 2026, the S&P U.S. BMI Banks Index closed at 249.7, an increase of 25.4% from one year ago and a decrease of 1.7% year-to-date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>The New Issue Market</u>

In addition to bank and thrift stock market conditions in general, the new issue market for converting thrifts is also an important consideration in determining the Bank's pro forma market value. The new issue market is separate and distinct from the market for seasoned thrift stocks in that the pricing ratios for converting issues are computed on a pro forma basis, specifically: (1) the numerator and denominator are both impacted by the conversion offering amount, unlike existing stock issues in which price change affects only the numerator; and (2) the pro forma pricing ratio incorporates assumptions regarding source and use of proceeds, effective tax rates, stock plan purchases, etc. which impact pro forma

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.15*** |

---

financials, whereas pricing for existing issues are based on reported financials. The distinction between pricing of converting and existing issues is perhaps no clearer than in the case of the price/book ("P/B") ratio in that the P/B ratio of a converting thrift will typically result in a discount to book value whereas in the current market for existing bank and thrift stocks the P/B ratio often reflects a premium to book value. Therefore, it is appropriate to also consider the market for new issues, both at the time of the conversion and in the aftermarket.

As shown in Table 4.2, four standard conversions, two second-step conversions and one mutual holding offering have been completed during the past twelve months. The first-step MHC offering is considered to be more relevant for the Company's pro forma pricing. The first-step MHC offering was completed in May 2025 by Winchester Bancorp, Inc. of Massachusetts ("Winchester Bancorp"). Winchester Bancorp's offering closed at slightly below the top of its offering range, raising gross proceeds of $40.0 million at a fully-converted pro forma price/tangible book ratio of 59.0%. Winchester Bancorp's stock price closed down 6.7% after its first week of trading and as of May 4, 2026, Winchester Bancorp's stock price was up 28.5% from its initial public offering ("IPO") price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>The Acquisition Market</u>

Also considered in the valuation was the potential impact on Narragansett Bancorp's stock price of recently completed and pending acquisitions of other bank and thrift institutions operating in Massachusetts. As shown in Exhibit IV-4, there were 22 Massachusetts bank and thrift acquisitions completed from the beginning of 2021 through year-to-date 2026 and there are currently two acquisitions pending for Massachusetts bank and thrift institutions.

Unlike the Peer Group members that can be acquired given their 100% public stock ownership form, as an MHC, the likelihood of the Company being acquired in the foreseeable future is very low. While in MHC form the Company could only be acquired by another public MHC or a mutual thrift. In the event the Company were eventually to complete a second-step conversion, the Company could be subject to acquisition only after the three-year regulatory antitakeover period elapses. The Company has indicated that it seeks to remain independent and in MHC form, thus diminishing the prospects for acquisition.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.16*** |

---

 **Table 4.2** 

**Pricing Characteristics and After-Market Trends** 

**Conversions Completed Twelve Months Ended May 4, 2026** 

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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Institutional Information | Institutional Information | Institutional Information |  | Pre-Conversion Data | Pre-Conversion Data | Pre-Conversion Data | Pre-Conversion Data | Offering Information | Offering Information | Offering Information | Offering Information | Contribution to | Contribution to | Insider Purchases | Insider Purchases | Insider Purchases | Insider Purchases |  | Pro Forma Data | Pro Forma Data | Pro Forma Data | Pro Forma Data | Pro Forma Data | Pro Forma Data |  | Post-IPO Pricing Trends | Post-IPO Pricing Trends | Post-IPO Pricing Trends | Post-IPO Pricing Trends | Post-IPO Pricing Trends | Post-IPO Pricing Trends | Post-IPO Pricing Trends | Post-IPO Pricing Trends |
|  |  |  |  | Financial Info. | Financial Info. | Asset Quality | Asset Quality |  |  |  |  | Char. Found. | Char. Found. | % Off Incl. Fdn.+Merger Shares | % Off Incl. Fdn.+Merger Shares | % Off Incl. Fdn.+Merger Shares | % Off Incl. Fdn.+Merger Shares |  | Pricing Ratios(2)(5) | Pricing Ratios(2)(5) | Pricing Ratios(2)(5) | Financial Charac. | Financial Charac. | Financial Charac. |  | Closing Price: | Closing Price: | Closing Price: | Closing Price: | Closing Price: | Closing Price: | Closing Price: | Closing Price: |
|  |  |  |  |  |  |  |  | Excluding Foundation | Excluding Foundation | Excluding Foundation | Excluding Foundation |  | % of<br>Public Off.<br>Inc. Fdn. | Benefit Plans | Benefit Plans | Benefit Plans |  | Initial<br>Div.<br>Yield |  |  |  |  |  |  |  | First<br>Trading<br>Day |  | After<br>First<br>Week(3) |  | After<br>First<br>Month(4) |  |  |  |
| Institution | Conversion<br>Date | Ticker |  | Assets | Equity/<br>Assets | NPAs/<br>Assets | Res.<br>Cov. | Gross<br>Proc. | %<br>Offer | % of<br>Mid. | Exp./<br>Proc. | Form | % of<br>Public Off.<br>Inc. Fdn. | ESOP | Recog.<br>Plans | Stk<br>Option | Mgmt.&<br>Dirs. | Initial<br>Div.<br>Yield | P/TB | Core<br>P/E | P/A | Core<br>ROA | TE/A | Core<br>ROE | IPO<br>Price | First<br>Trading<br>Day | %<br>Chg | After<br>First<br>Week(3) | %<br>Chg | After<br>First<br>Month(4) | %<br>Chg | Thru<br>5/4/2026 | %<br>Chg |
|  |  |  |  | ($Mil) | (%) | (%) | (%) | ($Mil.) | (%) | (%) | (%) |  | (%) | (%) | (%) | (%) | (%)(1) | (%) | (%) | (x) | (%) | (%) | (%) | (%) | ($) | ($) | (%) | ($) | (%) | ($) | (%) | ($) | (%) |
|  ***<u>Standard Conversions</u>*** | ***<u>Standard Conversions</u>*** | ***<u>Standard Conversions</u>*** | **** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  URSB Bancorp, Inc. - NJ\* | 3/272026 | URSB-<br>OTCQB |  | $353 | 5.42% | 0.28% | 200% | $23.1 | 100% | 132% | 7.4% | C/S | $250/0.86% | 8.0% | 4.0% | 10.0% | 3.0% | 0.00% | 62.0% | 36.8x | 6.3% | 0.2% | 10.1% | 1.7% | $10.00 | $10.70 | 7.0% | $11.48 | 14.8% | $11.30 | 13.0% | $11.42 | 14.2% |
|  Hoyne Bancorp, Inc. - IL\* | 12/4/25 | HYNE-<br>NASDAQ |  | $453 | 19.60% | 0.20% | 269% | $79.4 | 100% | 132% | 3.4% | C/S | $250/2.00% | 8.0% | 4.0% | 10.0% | 3.0% | 0.00% | 52.0% | NM | 15.6% | 0.0% | 30.0% | -0.1% | $10.00 | $14.00 | 40.0% | $13.75 | 37.5% | $14.19 | 41.9% | $15.72 | 57.2% |
|  **Security Midwest Bancorp, Inc., IL** | 8/1/25 | SBMW-<br>OTCQB |  | $218 | 6.41% | 0.40% | 129% | $8.9 | 100% | 89% | 15.2% | N.A. | N.A. | 7.0% | 3.0% | 10.0% | 13.5% | 0.00% | 45.4% | 9.0x | 4.0% | 0.4% | 8.8% | 5.1% | $10.00 | $11.40 | 14.0% | $11.12 | 11.2% | $12.30 | 23.0% | $16.00 | 60.0% |
|  Avidia Bancorp, Inc., MA\* | 8/1/25 | AVBC-<br>NYSE |  | $2707 | 6.87% | 0.44% | 184% | $191.8 | 100% | 132% | 3.0% | C/S | $1,000/4.48% | 8.0% | 4.0% | 10.0% | 3.4% | 0.00% | 59.5% | 14.2x | 7.0% | 0.5% | 11.8% | 4.1% | $10.00 | $14.64 | 46.4% | $14.58 | 45.8% | $15.47 | 54.7% | $20.34 | 103.4% |
|  |  | **Averages -<br>Standard<br>Conversions:** |  | $**933** | **9.58%** | **0.33%** | **195%** | $**75.8** | **100%** | **121%** | **7.2%** | **N.A.** | **N.A.** | **7.8%** | **3.8%** | **10.0%** | **5.7%** | **0.00%** | **54.7%** | **20.0x** | **8.2%** | **0.3%** | **15.2%** | **2.7%** | $**10.00** | $**12.69** | **26.9%** | $**12.73** | **27.3%** | $**13.32** | **33.2%** | $**15.87** | **58.7%** |
|  |  | **Medians -<br>Standard<br>Conversions:** |  | $**403** | **6.64%** | **0.34%** | **192%** | $**51.3** | **100%** | **132%** | **5.4%** | **N.A.** | **N.A.** | **8.0%** | **4.0%** | **10.0%** | **3.2%** | **0.00%** | **55.7%** | **14.2x** | **6.7%** | **0.3%** | **11.0%** | **2.9%** | $**10.00** | $**12.70** | **27.0%** | $**12.62** | **26.2%** | $**13.25** | **32.5%** | $**15.86** | **58.6%** |
|  ***<u>Second Step Conversions</u>*** | ***<u>Second Step Conversions</u>*** | ***<u>Second Step Conversions</u>*** | **** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Seneca Bancorp, Inc., NY\* | 10/16/25 | SNNF-<br>OTCQX |  | $299 | 7.94% | 0.31% | 186% | $10.4 | 58% | 100% | 15.1% | N.A. | N.A. | 8.0% | 4.0% | 10.0% | 9.6% | 0.00% | 58.6% | 20.8x | 5.8% | 0.3% | 16.9% | 2.8% | $10.00 | $10.22 | 2.2% | $10.10 | 1.0% | $9.75 | -2.5% | $11.50 | 15.0% |
|  Lake Shore Bancorp, Inc., NY\* | 7/21/25 | LSBK-<br>NASDAQ |  | $689 | 13.16% | 0.66% | 114% | $49.5 | 63% | 99% | 4.4% | N.A. | N.A. | 8.0% | 4.0% | 10.0% | 5.3% | 0.00% | 59.2% | 14.4x | 10.7% | 0.7% | 18.1% | 4.1% | $10.00 | $11.95 | 19.5% | $12.11 | 21.1% | $12.33 | 23.3% | $15.89 | 58.9% |
|  |  | **Averages -<br>Second Step<br>Conversions:** |  | $**494** | **10.55%** | **0.49%** | **150%** | $**30.0** | **61%** | **100%** | **9.8%** | **N.A.** | **N.A.** | **8.0%** | **4.0%** | **10.0%** | **7.5%** | **0.00%** | **58.9%** | **17.6x** | **8.3%** | **0.5%** | **17.5%** | **3.5%** | $**10.00** | $**11.09** | **10.9%** | $**11.11** | **11.1%** | $**11.04** | **10.4%** | $**13.70** | **37.0%** |
|  |  | **Medians -<br>Second Step<br>Conversions:** |  | $**494** | **10.55%** | **0.49%** | **150%** | $**30.0** | **61%** | **100%** | **9.8%** | **N.A.** | **N.A.** | **8.0%** | **4.0%** | **10.0%** | **7.5%** | **0.00%** | **58.9%** | **17.6x** | **8.3%** | **0.5%** | **17.5%** | **3.5%** | $**10.00** | $**11.09** | **10.9%** | $**11.11** | **11.1%** | $**11.04** | **10.4%** | $**13.70** | **37.0%** |
|  ***<u>Mutual Holding Companies</u>*** | ***<u>Mutual Holding Companies</u>*** | ***<u>Mutual Holding Companies</u>*** | **** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  Winchester Bancorp, Inc., MA\* | 5/2/25 | WSBK-<br>NASDAQ |  | $894 | 8.98% | 0.22% | 188% | $40 | 43% | 130% | 4.5% | C/S | $400/4.65% | 8.0% | 4.0% | 10.0% | 13.6% | 0.00% | 59.0% | NM | 9.6% | 0.0% | 12.2% | -0.2% | $10.00 | $9.30 | -7.0% | $9.33 | -6.7% | $9.35 | -6.5% | $12.85 | 28.5% |
|  |  | **Averages -<br>MHC<br>Conversions:** |  | $**894** | **8.98%** | **0.22%** | **188%** | $**40.0** | **43%** | **130%** | **4.5%** | **N.A.** | **N.A.** | **8.0%** | **4.0%** | **10.0%** | **13.6%** | **0.00%** | **59.0%** | **NM** | **9.6%** | **0.0%** | **12.2%** | **-0.2%** | $**10.00** | $**9.30** | **-7.0%** | $**9.33** | **-6.7%** | $**9.35** | **-6.5%** | $**12.85** | **28.5%** |
|  |  | **Medians -<br>MHC<br>Conversions:** |  | $**894** | **8.98%** | **0.22%** | **188%** | $**40.0** | **43%** | **130%** | **4.5%** | **N.A.** | **N.A.** | **8.0%** | **4.0%** | **10.0%** | **13.6%** | **0.00%** | **59.0%** | **NM** | **9.6%** | **0.0%** | **12.2%** | **-0.2%** | $**10.00** | $**9.30** | **-7.0%** | $**9.33** | **-6.7%** | $**9.35** | **-6.5%** | $**12.85** | **28.5%** |
|  |  | **Averages -<br>All<br>Conversions:** |  | $**802** | **9.77%** | **0.36%** | **181%** | $**57.6** | **81%** | **116%** | **7.6%** | **N.A.** | **N.A.** | **7.9%** | **3.9%** | **10.0%** | **7.3%** | **0.00%** | **56.5%** | **19.0x** | **8.4%** | **0.3%** | **15.4%** | **2.5%** | $**10.00** | $**11.74** | **17.4%** | $**11.78** | **17.8%** | $**12.10** | **21.0%** | $**14.82** | **48.2%** |
|  |  | **Medians -<br>All<br>Conversions:** |  | $**453** | **7.94%** | **0.31%** | **186%** | $**40.0** | **100%** | **130%** | **4.5%** | **N.A.** | **N.A.** | **8.0%** | **4.0%** | **10.0%** | **5.3%** | **0.00%** | **59.0%** | **14.4x** | **7.0%** | **0.3%** | **12.2%** | **2.8%** | $**10.00** | $**11.40** | **14.0%** | $**11.48** | **14.8%** | $**12.30** | **23.0%** | $**15.72** | **57.2%** |

---

Note: \* - Appraisal performed by RP Financial; BOLD = RP Financial assisted in the business plan preparation, "NT"—Not Traded; "NA"—Not Applicable, Not Available; C/S-Cash/Stock.

(1) As a percent of MHC offering for MHC transactions.

(2) Does not take into account the adoption of SOP 93-6.

(3) Latest price if offering is less than one week old.

(4) Latest price if offering is more than one week but less than one month old.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(5) Mutual holding company pro forma data on full conversion basis.

(6) Simultaneously completed acquisition of another financial institution.

(7) Simultaneously converted to a commercial bank charter.

(8) Former credit union.

5/4/2026

------

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.17*** |

---

To the extent that speculation of a re-mutualization may impact the Company's valuation, we have largely taken this into account in selecting companies for the Peer Group which operate in markets that have experienced a comparable level of acquisition activity as the Company's market and, thus, are subject to the same type of acquisition speculation that may influence the Company's stock. However, since converting thrifts are subject to a three-year regulatory moratorium from being acquired, acquisition speculation in the Company's stock would tend to be less comparable to the stocks of the Peer Group companies. Furthermore, in comparison to the stocks of the fully-converted Peer Group companies, the degree of acquisition speculation in the Company's stock is also viewed to be relatively more limited since there will be a very limited number of potential acquirers for the Company's stock as a re-mutualization transaction can only be completed by a mutual institution or an institution in the MHC form of ownership. Additionally, there tends to be less acquisition speculation in the stocks of publicly-traded MHCs in general, given the majority of the shares are held by the MHC rather than public shareholders which own 100% of the stocks of the fully-converted Peer Group companies. Accordingly, the Peer Group companies are considered to be subject to a greater degree of acquisition speculation relative to the acquisition speculation that may influence the Company's trading price.

\* \* \* \* \* \* \* \* \* \* \*

In determining the valuation adjustment for marketing of the issue, we considered trends in both the overall market for bank and thrift stocks, the new issue market including the new issue market for MHC shares and the local acquisition market for bank and thrift stocks. Taking these factors and trends into account and considering the limitations on being acquired given the MHC structure, RP Financial concluded that no adjustment was appropriate in the valuation analysis for purposes of marketing of the issue.

8. <u>Management</u>

Narragansett Bancorp's management team appears to have experience and expertise in all of the key areas of the Company's operations. Exhibit IV-5 provides summary resumes of the Company's Board of Directors and senior management. The financial characteristics of the Company suggest that the Board and senior management have been effective in implementing an operating strategy that can be well managed by the Company's present organizational structure. The Company currently does not have any senior management positions that are vacant.

------

---

| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.18*** |

---

Similarly, the returns, capital positions and other operating measures of the Peer Group companies are indicative of well-managed financial institutions, which have Boards and management teams that have been effective in implementing competitive operating strategies. Therefore, on balance, we concluded no valuation adjustment relative to the Peer Group was appropriate for this factor.

9. <u>Effect of Government Regulation and Regulatory Reform</u>

In summary, as a federally-insured banking institution operating in the MHC form of ownership, the Company and the Bank will be operating in substantially the same regulatory environment as the Peer Group members — all of whom are adequately capitalized institutions and the substantial majority are operating with no apparent restrictions. Exhibit IV-6 reflects the Bank's pro forma regulatory capital ratios. Accordingly, no adjustment has been applied for the effect of government regulation and regulatory reform.

<u>Summary of Adjustments</u> 

Overall, based on the factors discussed above, we concluded that the Company's pro forma market value should reflect the following valuation adjustments relative to the Peer Group:

---

| | |
|:---|:---|
| Key Valuation Parameters: | Valuation Adjustment |
| Financial Condition | Slight Downward |
| Profitability, Growth and Viability of Earnings | Moderate Downward |
| Asset Growth | Slight Downward |
| Primary Market Area | No Adjustment |
| Dividends | Slight Downward |
| Liquidity of the Shares | No Adjustment |
| Marketing of the Issue | No Adjustment |
| Management | No Adjustment |
| Effect of Government Regulations and Regulatory Reform | No Adjustment |

---

------

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.19*** |

---

<u>Valuation Approaches: Fully-Converted Basis</u> 

In applying the accepted valuation methodology promulgated by the FRB and the Commissioner, i.e., the pro forma market value approach, we considered the three key pricing ratios in valuing the Company's to-be-issued stock – price/earnings ("P/E"), price/book ("P/B"), and price/assets ("P/A") approaches – all performed on a pro forma basis including the effects of the stock proceeds, the stock benefit plans and the contribution to a charitable foundation. In computing the pro forma impact of the conversion and the related pricing ratios, we have incorporated the valuation parameters disclosed in the Company's prospectus for effective tax rate, stock benefit plan assumptions, the Foundation and offering expenses (summarized in Exhibits IV-9 and IV-10). The assumptions utilized in the pro forma analysis in calculating the Company's full conversion value were consistent with the assumptions utilized for the minority stock offering, except expenses were assumed to equal 2.5% of gross proceeds (summarized in Exhibits IV-7 and IV-8).

In our estimate of value, we assessed the relationship of the pro forma pricing ratios relative to the Peer Group, taking into consideration the valuation adjustments, as well as the pricing at closing of recent conversions and the pro forma pricing of public MHCs on a fully-converted basis.

RP Financial's valuation placed an emphasis on the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>P/E Approach</u>. The P/E approach is generally the best indicator of long-term value for a stock. The P/E
approach in a conversion valuation reflects expectations that earnings will grow as the proceeds are reinvested and leveraged, which involves assumptions regarding the use of proceeds. As a result, the P/E in conversion pricing typically reflects a
premium over the Peer Group companies, and the expectation that such premium will remain for a sustained period as the implementation of the plan to reinvest and leverage the proceeds may take several years. In comparison, the Peer Group members are
largely seasoned thrift companies that have already leveraged capital raised in prior offerings (including thrift conversion offerings). Thus, it is typical that other valuation approaches will reflect a valuation discount to the Peer Group pricing
to counterbalance the premium P/E multiple. In evaluating earnings, it is essential to evaluate core earnings, that is, earnings adjusted for nonrecurring items on an after-tax basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>P/B Approach</u>. The P/B approach is a valuable valuation method for mutual-to-stock conversions, recognizing that in a conversion scenario the P/B ratios must be discounted from pro forma book value in that the converting mutual already has existing capital. This expected
pricing discount to book value is the counterbalance to the expected premium P/E multiple described above. It is essential to modify the P/B approach to exclude the impact of intangible assets (i.e., price/tangible book value or "P/TB"),
in that the investment community also adjusts book value to exclude goodwill and other acquisition related intangible assets in making investment decisions.

------

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.20*** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>P/A Approach</u>. P/A ratios are generally a less reliable indicator of market value, as investors typically
assign less weight to balance sheet size in the preference to attribute greater weight to book value and earnings. Furthermore, this approach as set forth in the regulatory valuation guidelines does not take into account the amount of stock
purchases funded by deposit withdrawals, thus understating the pro forma P/A ratio. At the same time, the P/A ratio is an indicator of franchise value, and, in the case of highly capitalized institutions, high P/A ratios may limit the investment
community's willingness to pay market multiples for earnings or book value when the pro forma ROE is expected to be low.

The Company will adopt "Employers' Accounting for Employee Stock Ownership Plans" ("ASC 718-40"), which will cause earnings per share computations to be based on shares issued and outstanding excluding unreleased ESOP shares. For purposes of preparing the pro forma pricing analyses, we have reflected all shares issued in the offering, including all ESOP shares, to capture the full dilutive impact, particularly since the ESOP shares are economically dilutive, receive dividends and can be voted. However, we did consider the impact of ASC 718-40 in the valuation.

Based on the application of the three valuation approaches, taking into consideration the valuation adjustments discussed above and the dilutive impact of the stock contribution to the Foundation, RP Financial concluded that as of May 4, 2026, the pro forma market value of Narragansett Bancorp's full conversion offering equaled $160,000,000 at the midpoint, equal to 16,000,000 shares at $10.00 per share. This value establishes the basis for the MHC offering in which 43.0% of the stock will be issued publicly at $10.00 per share and 2.0% of the shares will be contributed to the Foundation. The full conversion valuation establishes the range of value and the MHC offering midpoint establishes the selling range of the MHC offering such that the MHC will retain 55% stock ownership at each point in the range.

<u>Basis of Valuation – Fully-Converted and MHC Pricing Ratios</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Price-to-Earnings ("P/E")</u>. The application of the P/E valuation method requires calculating the Company's pro forma market value by applying a valuation P/E multiple (fully-converted basis) to the pro forma earnings base. In applying this technique, we considered both reported earnings and a recurring earnings base, that is, earnings adjusted to exclude any one-time non-operating items, plus the estimated after-tax earnings benefit of the reinvestment of the net proceeds and the after-tax cost of the stock benefit plans. Narragansett Bancorp reported earnings of $7.370 million for the twelve months ended March 31, 2026. In deriving Narragansett Bancorp's core earnings, the adjustments we made to reported earnings included the elimination of net gains on securities of $380,000, loss on sales of portfolio loans of $1.678 million and one-time tax credits of $2.124 million. As shown below, on an after-tax basis, reflecting the marginal income tax rate of 25.0% for the taxable earnings adjustments, the Company's core earnings were determined to equal $6.220 million for the twelve months ended March 31, 2026.

------

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.21*** |

---

---

| | |
|:---|:---|
|  | Amount |
|  | ($000) |
|  Net income | $7370 |
|  Deduct: Gains on securities (1) | (285) |
|  Add: Loss on sales of portfolio loans (1) | 1259 |
|  Deduct: Tax credits | (2124) |
|  Core earnings estimate | $6220 |

---

(1) Tax effected at 25.0%.

Based on Narragansett Bancorp's reported and core earnings and incorporating the impact of the pro forma assumptions discussed previously, the Company's pro forma reported and core P/E multiples (fully-converted basis) at the $160.0 million midpoint value equaled 18.93 times and 21.92 times, respectively, which provided for premiums of 55.93% and 60.35% relative to the Peer Group's average reported and core P/E multiples of 12.14 times and 13.67 times, respectively (see Table 4.3). In comparison to the Peer Group's median reported and core earnings multiples which equaled 12.23 times and 14.11 times, respectively, the Company's pro forma reported and core P/E multiples (fully-converted basis) at the midpoint value indicated premiums of 54.78% and 55.35%, respectively. The Company's pro forma fully-converted P/E ratios based on reported earnings at the minimum and the super maximum equaled 16.41x and 24.03x, respectively, and based on core earnings at the minimum and the super maximum equaled 19.06x and 27.64x, respectively.

On an MHC basis, the Company's reported and core P/E multiples at the midpoint value of $160.0 million equaled 20.67 times and 24.28 times, respectively (see Table 4.4). The Company's reported and core P/E multiples provided for premiums of 70.26% and 77.62% relative to the Peer Group's average reported and core P/E multiples of 12.14 times and 13.67 times, respectively. In comparison to the Peer Group's median reported and core earnings multiples which equaled 12.23 times and 14.11 times, respectively, the Company's pro forma reported and core P/E multiples (MHC basis) at the midpoint value indicated premiums of 69.01% and 72.08%, respectively. The Company's pro forma MHC P/E ratios based on reported earnings at the minimum and the super maximum equaled 17.73x and 26.81x, respectively, and based on core earnings at the minimum and the super maximum equaled 20.86x and 31.39x, respectively.

------

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.22*** |

---

Table 4.3

Fully-Converted Market Pricing Versus Peer Group

Narragansett Bancorp, Inc.

As of May 4, 2026

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| | | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | | Market<br>Capitalization | Market<br>Capitalization | Per Share Data | Per Share Data | | | | | | Dividends(3) | Dividends(3) | Dividends(3) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Offering<br>Size |
|  |  | | Price/<br>Share | Market<br>Value | Core<br>12 Month<br>EPS(1) | Book<br>Value/<br>Share | Pricing Ratios(2) | Pricing Ratios(2) | Pricing Ratios(2) | Pricing Ratios(2) | Pricing Ratios(2) | Amount/<br>Share | | Payout<br>Ratio(4) | Total<br>Assets | Equity/<br>Assets | Tang. Eq./<br>T. Assets | NPAs/<br>Assets | Reported | Reported | Core | Core | Offering<br>Size |
| | | | Price/<br>Share | Market<br>Value | Core<br>12 Month<br>EPS(1) | Book<br>Value/<br>Share | P/E | P/B | P/A | P/TB | P/Core | Amount/<br>Share |<br>Yield | Payout<br>Ratio(4) | Total<br>Assets | Equity/<br>Assets | Tang. Eq./<br>T. Assets | NPAs/<br>Assets | ROAA | ROAE | ROAA | ROAE | ($Mil) |
|  |  | | ($) | ($Mil) | ($) | ($) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | ($Mil) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |
|  **<u>Narragansett Bancorp, Inc.</u>** | **<u>Narragansett Bancorp, Inc.</u>** | MA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Super Maximum | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Super Maximum |  | $10.00 | $211.60 | $0.36 | $17.20 | 24.03x | 58.14% | 6.88% | 62.97% | 27.64x | $0.00 | 0.00% | 0.00% | $3074 | 11.84% | 10.93% | 1.56% | 0.29% | 2.42% | 0.25% | 2.10% | $207.37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maximum | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maximum |  | $10.00 | $184.00 | $0.41 | $18.52 | 21.36x | 54.00% | 6.03% | 58.82% | 24.65x | $0.00 | 0.00% | 0.00% | $3051 | 11.17% | 10.25% | 1.57% | 0.28% | 2.53% | 0.24% | 2.19% | $180.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midpoint | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midpoint |  | $10.00 | $160.00 | $0.46 | $20.04 | 18.93x | 49.90% | 5.28% | 54.67% | 21.92x | $0.00 | 0.00% | 0.00% | $3031 | 10.58% | 9.66% | 1.58% | 0.28% | 2.64% | 0.24% | 2.28% | $156.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minimum | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minimum |  | $10.00 | $136.00 | $0.52 | $22.10 | 16.41x | 45.25% | 4.52% | 49.90% | 19.06x | $0.00 | 0.00% | 0.00% | $3011 | 9.98% | 9.05% | 1.59% | 0.28% | 2.76% | 0.24% | 2.37% | $133.28 |
|  <u>All Non-MHC Public Thrifts(6)</u> | <u>All Non-MHC Public Thrifts(6)</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | $31.11 | $774.39 | $2.11 | $28.83 | 14.59x | 95.53% | 13.69% | 106.93% | 14.49x | $0.58 | 2.19% | 36.78% | $6998 | 14.89% | 14.84% | 0.65% | 0.69% | 5.57% | 0.75% | 5.95% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Median |  |  | $17.42 | $158.53 | $0.97 | $19.97 | 13.94x | 90.11% | 13.45% | 92.54% | 12.42x | $0.40 | 2.27% | 32.36% | $1650 | 12.28% | 10.64% | 0.48% | 0.73% | 5.61% | 0.75% | 5.53% |  |
|  <u>All Non-MHC State of MA(6)</u> | <u>All Non-MHC State of MA(6)</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | $82.81 | $356.48 | $6.18 | $67.86 | 14.50x | 109.11% | 11.94% | 111.59% | 16.14x | $1.00 | 1.30% | 22.79% | $2942 | 10.97% | 10.77% | 0.33% | 0.73% | 7.05% | 0.74% | 7.07% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | $19.21 | $327.77 | $1.15 | $19.57 | 15.56x | 109.78% | 11.80% | 114.74% | 15.80x | $0.28 | 0.98% | 22.79% | $2786 | 10.64% | 10.64% | 0.33% | 0.64% | 6.45% | 0.73% | 7.43% |  |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | $49.37 | $370.45 | $3.60 | $43.10 | 12.14x | 99.21% | 11.55% | 104.02% | 13.67x | $0.86 | 2.61% | 32.83% | $3407 | 11.66% | 11.20% | 0.53% | 0.96% | 7.86% | 1.00% | 8.15% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | $20.90 | $304.08 | $2.44 | $22.92 | 12.23x | 94.80% | 11.46% | 97.43% | 14.11x | $0.74 | 2.88% | 31.46% | $2508 | 10.46% | 10.46% | 0.55% | 1.02% | 8.81% | 0.90% | 8.13% |  |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  ECBK | ECB Bancorp, Inc. | MA | $18.07 | $158.53 | $1.15 | $20.05 | 15.71x | 90.11% | 9.61% | 90.11% | 15.71x | $0.00 | 0.00% | 0.00% | $1650 | 10.66% | 10.66% | 0.07% | 0.62% | 5.61% | 0.62% | 5.61% |  |
|  FSBW | FS Bancorp, Inc. | WA | $40.30 | $298.16 | $4.51 | $41.84 | 9.39x | 96.32% | 9.44% | 100.61% | 8.93x | $1.16 | 2.88% | 31.70% | $3204 | 9.80% | 9.42% | 0.63% | 1.04% | 10.76% | 1.10% | 11.32% |  |
|  HIFS | Hingham Institution for Savings | MA | $278.97 | $611.86 | $16.50 | $220.06 | 12.23x | 126.77% | 13.45% | 126.77% | 16.91x | $2.52 | 0.90% | 14.12% | $4548 | 10.61% | 10.61% | 0.87% | 1.12% | 10.78% | 0.81% | 7.80% |  |
|  KRNY | Kearny Financial Corp. | NJ | $7.97 | $501.18 | $0.56 | $11.79 | 13.98x | 67.62% | 6.78% | 80.29% | 14.28x | $0.44 | 5.52% | 77.19% | $7608 | 10.03% | 8.65% | 1.06% | 0.47% | 4.78% | 0.46% | 4.67% |  |
|  NECB | Northeast Community Bancorp, Inc. | NY | $23.73 | $293.37 | $3.21 | $25.79 | 7.37x | 92.02% | 16.19% | 92.02% | 7.39x | $0.80 | 3.37% | 31.06% | $2025 | 17.59% | 17.59% | 0.00% | 2.18% | 12.65% | 2.17% | 12.61% |  |
|  RVSB | Riverview Bancorp, Inc. | WA | $5.14 | $105.70 | $0.23 | $7.08 | NM | 72.58% | 7.22% | 89.21% | 22.61x | $0.08 | 1.56% | NM | $1464 | 9.95% | 8.25% | 1.04% | -0.29% | -2.65% | 0.31% | 2.87% |  |
|  TSBK | Timberland Bancorp, Inc. | WA | $40.26 | $315.38 | $3.90 | $34.61 | 10.30x | 116.34% | 15.41% | 123.31% | 10.30x | $1.16 | 2.88% | 28.64% | $2046 | 13.25% | 12.59% | 0.47% | 1.55% | 11.81% | 1.55% | 11.81% |  |
|  TRST | TrustCo Bank Corp NY | NY | $47.53 | $832.10 | $3.41 | $38.32 | 13.94x | 124.02% | 12.79% | 124.13% | 13.94x | $1.52 | 3.20% | 43.99% | $6508 | 10.31% | 10.30% | 0.35% | 0.99% | 9.17% | 0.99% | 9.17% |  |
|  WSBF | Waterstone Financial, Inc. | WI | $17.90 | $310.00 | $1.66 | $19.19 | 10.78x | 93.28% | 14.43% | 94.24% | 10.78x | $0.68 | 3.80% | 37.35% | $2251 | 15.47% | 15.44% | 0.64% | 1.32% | 8.45% | 1.32% | 8.45% |  |
|  WNEB | Western New England Bancorp, Inc. | MA | $13.85 | $278.22 | $0.88 | $12.26 | 15.56x | 113.00% | 10.14% | 119.47% | 15.80x | $0.28 | 2.02% | 31.46% | $2765 | 8.97% | 8.53% | 0.17% | 0.65% | 7.29% | 0.64% | 7.17% |  |

---

(1) Core income, on a diluted per-share basis. Core income is net income
after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the sale of securities, amortization of intangibles, goodwill and nonrecurring items.

(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and
P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is negative or above 35x.

(3) Indicated 12 month dividend, based on last quarterly dividend declared.

(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.

(5) Equity and tangible equity equal common equity and tangible common equity, respectively. ROAA (return on average
assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.

(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or
unusual operating characteristics.

Source: S&P Global Market Intelligence and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

------

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.23*** |

---

Table 4.4

MHC Market Pricing Versus Peer Group

Narragansett Bancorp, Inc.

As of May 4, 2026

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| | | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | | Market | Market | Per Share Data | Per Share Data | | | | | | | | | | | | | | | | | |
|  |  | | Capitalization | Capitalization | Core | Book | | | | | | Dividends(3) | Dividends(3) | Dividends(3) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Offering<br>Size |
|  |  | | Price/<br>Share | Market<br>Value | 12 Month<br>EPS(1) | Value/<br>Share | Pricing Ratios(2) | Pricing Ratios(2) | Pricing Ratios(2) | Pricing Ratios(2) | Pricing Ratios(2) | Amount/<br>Share | Yield | Payout<br>Ratio(4) | Total<br>Assets | Equity/<br>Assets | Tang. Eq./<br>T. Assets | NPAs/<br>Assets | Reported | Reported | Core | Core | Offering<br>Size |
| | | | Price/<br>Share | Market<br>Value | 12 Month<br>EPS(1) | Value/<br>Share | P/E | P/B | P/A | P/TB | P/Core | Amount/<br>Share | Yield | Payout<br>Ratio(4) | Total<br>Assets | Equity/<br>Assets | Tang. Eq./<br>T. Assets | NPAs/<br>Assets | ROAA | ROAE | ROAA | ROAE | ($Mil) |
|  |  | | ($) | ($Mil) | ($) | ($) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | ($Mil) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |
|  **<u>Narragansett Bancorp, Inc.</u>** | **<u>Narragansett Bancorp, Inc.</u>** | MA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Super Maximum | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Super Maximum |  | $10.00 | $211.60 | $0.32 | $12.43 | 26.81x | 80.45% | 7.12% | 90.01% | 31.39x | $0.00 | 0.00% | 0.00% | $2973 | 8.84% | 7.90% | 1.61% | 0.27% | 3.00% | 0.23% | 2.56% | $90.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maximum | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maximum |  | $10.00 | $184.00 | $0.36 | $13.72 | 23.56x | 72.89% | 6.21% | 81.97% | 27.63x | $0.00 | 0.00% | 0.00% | $2963 | 8.52% | 7.58% | 1.62% | 0.26% | 3.09% | 0.22% | 2.64% | $79.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midpoint | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midpoint |  | $10.00 | $160.00 | $0.41 | $15.22 | 20.67x | 65.70% | 5.42% | 74.24% | 24.28x | $0.00 | 0.00% | 0.00% | $2954 | 8.24% | 7.30% | 1.62% | 0.26% | 3.18% | 0.22% | 2.71% | $68.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minimum | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minimum |  | $10.00 | $136.00 | $0.48 | $17.24 | 17.73x | 58.00% | 4.62% | 65.88% | 20.86x | $0.00 | 0.00% | 0.00% | $2945 | 7.96% | 7.01% | 1.63% | 0.26% | 3.27% | 0.22% | 2.78% | $58.48 |
|  <u>All Non-MHC Public Thrifts(6)</u> | <u>All Non-MHC Public Thrifts(6)</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | $31.11 | $774.39 | $2.11 | $28.83 | 14.59x | 95.53% | 13.69% | 106.93% | 14.49x | $0.58 | 2.19% | 36.78% | $6998 | 14.89% | 14.84% | 0.65% | 0.69% | 5.57% | 0.75% | 5.95% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Median |  |  | $17.42 | $158.53 | $0.97 | $19.97 | 13.94x | 90.11% | 13.45% | 92.54% | 12.42x | $0.40 | 2.27% | 32.36% | $1650 | 12.28% | 10.64% | 0.48% | 0.73% | 5.61% | 0.75% | 5.53% |  |
|  <u>All Non-MHC State of MA(6)</u> | <u>All Non-MHC State of MA(6)</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | $82.81 | $356.48 | $6.18 | $67.86 | 14.50x | 109.11% | 11.94% | 111.59% | 16.14x | $1.00 | 1.30% | 22.79% | $2942 | 10.97% | 10.77% | 0.33% | 0.73% | 7.05% | 0.74% | 7.07% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | $19.21 | $327.77 | $1.15 | $19.57 | 15.56x | 109.78% | 11.80% | 114.74% | 15.80x | $0.28 | 0.98% | 22.79% | $2786 | 10.64% | 10.64% | 0.33% | 0.64% | 6.45% | 0.73% | 7.43% |  |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | $49.37 | $370.45 | $3.60 | $43.10 | 12.14x | 99.21% | 11.55% | 104.02% | 13.67x | $0.86 | 2.61% | 32.83% | $3407 | 11.66% | 11.20% | 0.53% | 0.96% | 7.86% | 1.00% | 8.15% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | $20.90 | $304.08 | $2.44 | $22.92 | 12.23x | 94.80% | 11.46% | 97.43% | 14.11x | $0.74 | 2.88% | 31.46% | $2508 | 10.46% | 10.46% | 0.55% | 1.02% | 8.81% | 0.90% | 8.13% |  |
|  <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  ECBK | ECB Bancorp, Inc. | MA | $18.07 | $158.53 | $1.15 | $20.05 | 15.71x | 90.11% | 9.61% | 90.11% | 15.71x | $0.00 | 0.00% | 0.00% | $1650 | 10.66% | 10.66% | 0.07% | 0.62% | 5.61% | 0.62% | 5.61% |  |
|  FSBW | FS Bancorp, Inc. | WA | $40.30 | $298.16 | $4.51 | $41.84 | 9.39x | 96.32% | 9.44% | 100.61% | 8.93x | $1.16 | 2.88% | 31.70% | $3204 | 9.80% | 9.42% | 0.63% | 1.04% | 10.76% | 1.10% | 11.32% |  |
|  HIFS | Hingham Institution for Savings | MA | $278.97 | $611.86 | $16.50 | $220.06 | 12.23x | 126.77% | 13.45% | 126.77% | 16.91x | $2.52 | 0.90% | 14.12% | $4548 | 10.61% | 10.61% | 0.87% | 1.12% | 10.78% | 0.81% | 7.80% |  |
|  KRNY | Kearny Financial Corp. | NJ | $7.97 | $501.18 | $0.56 | $11.79 | 13.98x | 67.62% | 6.78% | 80.29% | 14.28x | $0.44 | 5.52% | 77.19% | $7608 | 10.03% | 8.65% | 1.06% | 0.47% | 4.78% | 0.46% | 4.67% |  |
|  NECB | Northeast Community Bancorp, Inc. | NY | $23.73 | $293.37 | $3.21 | $25.79 | 7.37x | 92.02% | 16.19% | 92.02% | 7.39x | $0.80 | 3.37% | 31.06% | $2025 | 17.59% | 17.59% | 0.00% | 2.18% | 12.65% | 2.17% | 12.61% |  |
|  RVSB | Riverview Bancorp, Inc. | WA | $5.14 | $105.70 | $0.23 | $7.08 | NM | 72.58% | 7.22% | 89.21% | 22.61x | $0.08 | 1.56% | NM | $1464 | 9.95% | 8.25% | 1.04% | -0.29% | -2.65% | 0.31% | 2.87% |  |
|  TSBK | Timberland Bancorp, Inc. | WA | $40.26 | $315.38 | $3.90 | $34.61 | 10.30x | 116.34% | 15.41% | 123.31% | 10.30x | $1.16 | 2.88% | 28.64% | $2046 | 13.25% | 12.59% | 0.47% | 1.55% | 11.81% | 1.55% | 11.81% |  |
|  TRST | TrustCo Bank Corp NY | NY | $47.53 | $832.10 | $3.41 | $38.32 | 13.94x | 124.02% | 12.79% | 124.13% | 13.94x | $1.52 | 3.20% | 43.99% | $6508 | 10.31% | 10.30% | 0.35% | 0.99% | 9.17% | 0.99% | 9.17% |  |
|  WSBF | Waterstone Financial, Inc. | WI | $17.90 | $310.00 | $1.66 | $19.19 | 10.78x | 93.28% | 14.43% | 94.24% | 10.78x | $0.68 | 3.80% | 37.35% | $2251 | 15.47% | 15.44% | 0.64% | 1.32% | 8.45% | 1.32% | 8.45% |  |
|  WNEB | Western New England Bancorp, Inc. | MA | $13.85 | $278.22 | $0.88 | $12.26 | 15.56x | 113.00% | 10.14% | 119.47% | 15.80x | $0.28 | 2.02% | 31.46% | $2765 | 8.97% | 8.53% | 0.17% | 0.65% | 7.29% | 0.64% | 7.17% |  |

---

(1) Core income, on a diluted per-share basis. Core income is net income
after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the sale of securities, amortization of intangibles, goodwill and nonrecurring items.

(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and
P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is negative or above 35x.

(3) Indicated 12 month dividend, based on last quarterly dividend declared.

(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.

(5) Equity and tangible equity equal common equity and tangible common equity, respectively. ROAA (return on average
assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.

(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or
unusual operating characteristics.

Source: S&P Global Market Intelligence and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.24*** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Price-to-Book ("P/B")</u>. The application of the P/B valuation method requires calculating the Company's pro forma market value by applying a valuation P/B ratio, as derived from the Peer Group's P/B ratio, to Narragansett Bancorp's pro forma book value (fully-converted basis). Based on the $160.0 million midpoint valuation, Narragansett Bancorp's pro forma P/B and P/TB ratios (fully-converted basis) equaled 49.90% and 54.67%, respectively. In comparison to the average P/B and P/TB ratios for the Peer Group of 99.21% and 104.02%, respectively, the Company's ratios reflected a discount of 49.70% on a P/B basis and a discount of 47.44% on a P/TB basis. In comparison to the Peer Group's median P/B and P/TB ratios of 94.80% and 97.43%, respectively, the Company's pro forma P/B and P/TB ratios (fully-converted basis) at the midpoint value reflected a discount of 47.36% on a P/B basis and a discount of 43.89% on a P/TB basis. At the top of the super range, the Company's P/B and P/TB ratios (fully-converted basis) equaled 58.14% and 62.97%, respectively. In comparison to the Peer Group's average P/B and P/TB ratios, the Company's P/B and P/TB ratios at the top of the super range reflected discounts of 41.40% and 39.46%, respectively. In comparison to the Peer Group's median P/B and P/TB ratios, the Company's P/B and P/TB ratios at the top of the super range reflected discounts of 38.67% and 35.37%, respectively.

RP Financial considered the discounts under the book value approach to be reasonable given the nature of the calculation of the P/B ratio which mathematically results in a ratio discounted to book value given that the Company already has equity. As noted earlier, the discounts reflected under the book value approach counterbalances the significant premiums reflected in the Company's pro forma P/E multiples.

On an MHC reported basis, the Company's P/B and P/TB ratios at the $160.0 million midpoint value equaled 65.70% and 74.24%, respectively. In comparison to the average P/B and P/TB ratios indicated for the Peer Group of 99.21% and 104.02%, respectively, Narragansett Bancorp's ratios were discounted by 33.78% on a P/B basis and 28.63% on a P/TB basis. In comparison to the Peer Group's median P/B and P/TB ratios of 94.80% and 97.43%, respectively, the Company's pro forma P/B and P/TB ratios (MHC basis) at the midpoint value reflected discounts of 30.70% and 23.80%, respectively. At the top of the super range, the Company's P/B and P/TB ratios (MHC basis) equaled 80.45% and 90.01%, respectively. In comparison to the Peer Group's average P/B and P/TB ratios, Company's P/B and P/TB ratios at the top of the super range reflected discounts of 18.91% and 13.47%, respectively. In comparison to the Peer Group's median P/B and P/TB ratios, the Company's P/B and P/TB ratios at the top of the super range reflected discounts of 15.14% and 7.62%, respectively.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.25*** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Price-to-Assets ("P/A")</u>. The P/A valuation methodology determines market value by applying a valuation P/A ratio (fully-converted basis) to the Company's pro forma asset base, conservatively assuming no deposit withdrawals are made to fund stock purchases. In all likelihood there will be deposit withdrawals, which results in understating the pro forma P/A ratio which is computed herein. At the $160.0 million midpoint of the valuation range, Narragansett Bancorp's pro forma P/A ratio (fully-converted basis) equaled 5.28% of pro forma assets. Comparatively, the Peer Group companies exhibited an average P/A ratio of 11.55%, which implies a discount of 54.29% has been applied to the Company's pro forma P/A ratio. In comparison to the Peer Group's median P/A ratio of 11.46%, the Company's pro forma P/A ratio (fully-converted basis) at the midpoint value reflects a discount of 53.93%.

On an MHC basis, Narragansett Bancorp's pro forma P/A ratio at the $160.0 million midpoint value equaled 5.42%. In comparison to the Peer Group's average P/A ratio of 11.55%, Narragansett Bancorp's P/A ratio (MHC basis) indicated a discount 53.07%. In comparison to the Peer Group's median P/A ratio of 11.46%, the Company's pro forma P/A ratio (MHC basis) at the midpoint value reflects a discount of 52.71%.

<u>Comparison to Publicly-Traded MHCs</u> 

As indicated in Chapter III, we believe there are a number of characteristics of MHC shares that make them different from the shares of fully-converted companies. These factors include: (1) lower aftermarket liquidity in the MHC shares since less than 50% of the shares are available for trading; (2) no opportunity for public shareholders to exercise voting control; (3) the potential pro forma impact of second-step conversions on the pricing of MHC institutions; and (4) the regulatory policies regarding the accounting for net assets held by the MHC in a second-step conversion and, thereby, lessening the attractiveness of paying cash dividends. For these unique reasons, MHC stocks are subject to different trading and pricing characteristics versus fully-converted companies. To account for the unique trading characteristics of MHC shares, RP Financial has calculated the pro forma financial data and pricing ratios of the publicly-traded

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.26*** |

---

MHCs on a "fully-converted" basis to make them comparable for valuation purposes. The calculation of fully-converted pro forma information is beneficial in a number of respects. First, the pro forma analysis eliminates distortions in comparing public MHCs that have different public ownership ratios. Second, this analysis enables calculating fully-converted pricing ratios that can be meaningfully compared to the pricing ratios of existing full stock companies; and thus can be directly compared to the fully-converted value of Narragansett Bancorp. Third, this pro forma analysis is validated by the investment community's evaluation of public MHCs, including research analysts and S&P Capital IQ.

The pro forma fully converted analysis for public MHCs incorporates the following assumptions to calculate pro forma book value and earnings per share data: (1) all shares owned by the MHC are assumed to be sold at the current trading price in a second-step-conversion; (2) the gross proceeds from such a sale are adjusted to reflect reasonable offering expenses and standard stock based benefit plan parameters that would be factored into a second-step conversion of an MHC institution; and (3) net proceeds are assumed to be reinvested at market rates on a tax effected basis. The pricing ratios are calculated based on the current trading price and the pro forma tangible book value and core earnings per share.

Table 4.5 shows the pro forma fully converted pricing ratios for the eight public MHCs (note that these calculations do not reflect the specific offering characteristics of the two MHCs undergoing second step conversions today). The table below compares the average fully-converted pricing ratios of these MHCs to average pricing ratios of the Company's full stock Peer Group. The MHC group's fully converted average P/TB multiple carries a 28.22% discount to the Peer Group average, underscoring the pricing discount the market places on MHCs given the previously noted structural differences relative to full stock companies. The expected premium of the MHC group's pro forma P/E reflects their higher pro forma equity and lower pro forma ROE. Detailed pricing characteristics of the fully-converted MHCs are shown in Table 4.6.

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| | | |
|:---|:---|:---|
|  | Publicly-Traded<br>MHCs | Peer Group |
|  <u>Pricing Ratios (Averages) (1)</u> |  |  |
|  Price/core earnings (x) | 25.71x | 13.67x |
|  Price/tangible book (%) | 74.67% | 104.02% |
|  Price/assets (%) | 13.75 | 11.55 |

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(1) Based on market prices as of May 4, 2026.

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| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.27*** |

---

Table 4.5

Calculation of Implied Per Share Data - Incorporating MHC Second Step Conversion

Publicly Traded MHC Institutions

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | | | Per Share | Per Share | Per Share | Per Share | Per Share | | | | | Pro Forma | Pro Forma | Pro Forma | Pro Forma | Pro Forma |
|  | | | | | | Current Ownership | Current Ownership | Current Ownership | TTM NI | TTM NI | | | | | | | | | | | | |
|  | <br>Ticker | <br>Name | <br>City | <br>State | <br>Exchange | Public | MHC Shares | Total Shares | Reported | Core | Book<br>Value | Tang.<br>Bk Value |<br>Assets |<br>Share<br>Price |<br>Gross<br>Proceeds(1) | Net<br>Capital<br>Increase(2) | Net<br>Income<br>Increase(3) | Net Inc./<br>Share | Core Net Inc./<br>Share | Bk Value/<br>Share | Tang. Bk.<br>Value/Share | Assets/<br>Share |
| 1 | BSBK | Bogota Financial Corp. | Teaneck | NJ | NASDAQCM | 4421016 | 8504556 | 12925572 | $0.16 | $0.13 | $10.90 | $10.89 | $70.01 | $8.21 | $69822405 | $58650820 | $709675 | $0.22 | $0.19 | $15.44 | $15.43 | $74.55 |
| 2 | CLBK | Columbia Financial, Inc. | Fair Lawn | NJ | NASDAQGS | 28126427 | 76016524 | 104142951 | $0.54 | $0.56 | $11.27 | $10.15 | $105.72 | $18.73 | $1423789495 | $1195983175 | $14471396 | $0.68 | $0.70 | $22.75 | $21.63 | $117.21 |
| 3 | GCBC | Greene County Bancorp, Inc. | Catskill | NY | NASDAQCM | 7808300 | 9218528 | 17026828 | $2.29 | $2.29 | $15.72 | $15.72 | $186.83 | $23.80 | $219400966 | $184296812 | $2229991 | $2.42 | $2.42 | $26.54 | $26.54 | $197.66 |
| 4 | KFFB | Kentucky First Federal Bancorp | Hazard | KY | NASDAQGM | 3358777 | 4727938 | 8086715 | $0.10 | $0.10 | $6.07 | $6.07 | $46.41 | $4.43 | $20944765 | $17593603 | $212883 | $0.13 | $0.13 | $8.25 | $8.25 | $48.58 |
| 5 | PBFS | Pioneer Bancorp, Inc. | Albany | NY | NASDAQCM | 10127165 | 14287723 | 24414888 | $0.81 | $0.81 | $13.46 | $12.96 | $90.97 | $14.22 | $203171421 | $170663994 | $2065034 | $0.90 | $0.90 | $20.45 | $19.95 | $97.96 |
| 6 | RBKB | Rhinebeck Bancorp, Inc. | Poughkeepsie | NY | NASDAQCM | 4806998 | 6345975 | 11152973 | $0.89 | $0.90 | $12.43 | $12.22 | $115.20 | $16.09 | $102106738 | $85769660 | $1037813 | $0.99 | $0.99 | $20.12 | $19.91 | $122.89 |
| 7 | TFSL | TFS Financial Corporation | Cleveland | OH | NASDAQGS | 51718311 | 227119132 | 278837443 | $0.33 | $0.33 | $6.89 | $6.86 | $62.69 | $14.92 | $3388617449 | $2846438658 | $34441908 | $0.46 | $0.46 | $17.10 | $17.07 | $72.90 |
| 8 | WSBK | Winchester Bancorp, Inc. | Winchester | MA | NASDAQCM | 4182919 | 5112457 | 9295376 | $0.24 | $0.44 | $12.82 | $12.82 | $113.72 | $12.85 | $65695072 | $55183861 | $667725 | $0.32 | $0.52 | $18.75 | $18.75 | $119.66 |

---

(1) Gross proceeds calculated as stock price multiplied by the number of shares owned by the MHC (i.e. non-public shares).

(2) Net increase in capital reflects gross proceeds less offering expenses, contra-equity account for leveraged
ESOP and Restricted Stock Plan. For MHC's with assets at the MHC level, the net increase in capital also includes consolidation of MHC assets with the capital of the institution concurrent with hypothetical second step.

---

| | |
|:---|:---|
|  Offering Expense Percent: | 4.0% |
|  ESOP Percent Purchase: | 8.0% |
|  RRP Percent Purchase: | 4.0% |

---

(3) Net increase in earnings reflects after-tax reinvestment income
(assumes ESOP and RRP do not generate reinvestment income), less after-tax ESOP amortization and RRP vesting.

---

| | |
|:---|:---|
|  After-Tax Reinvestment Rate: | 3.0% |
|  ESOP Loan Term (Yrs.): | 20.0 |
|  Recognition Plan Vesting (Yrs.): | 5.0 |
|  Effective Tax Rate: | 23.0% |

---

Source: S&P Global Market Intelligence, RP Financial, LC. calculations.

------

---

| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.28*** |

---

Table 4.6

MHC Institutions, Implied Pricing Ratios, Full Conversion Basis

Financial Data as of the Most Recent Quarter or Twelve Month Period Available

Prices as of May 4, 2026

---

| | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | | | | | | | | | | Key Financial Data(2) | Key Financial Data(2) | Key Financial Data(2) | Key Financial Data(2) | | |
|  | | | | | | | | Per Share Data | Per Share Data | Pricing Ratios(4) | Pricing Ratios(4) | Pricing Ratios(4) | Pricing Ratios(4) | Pricing Ratios(4) |<br>Dividends | | | LTM | LTM | LTM | LTM |
|  | | | | | | | | | | | | | | | | | | Reported | Reported | Core | Core |
|  | <br>Ticker | <br>Company Name | <br>City | <br>State | <br>Exchange |<br>Stock<br>Price(1) |<br>Mkt<br>Value(2) | LTM<br>EPS | Tang.<br>BV/Sh | P/E<br>LTM(3) | P/E Cre<br>LTM(3) | Price/<br>Book | Price/<br>TBk | Price/<br>Assts | Ann Div<br>Rate |<br>Total<br>Assets |<br>Tang.<br>E/A | ROAA | ROAE | ROAA | ROAE |
|  |  |  |  |  |  | **($)** | **($M)** | **($)** | **($)** | **(x)** | **(x)** | **(%)** | **(%)** | **(%)** | **($)** | **($000)** | **(%)** | **(%)** | **(%)** | **(%)** | **(%)** |
|  | Publicly Traded MHCs, Full Conversion Basis - Averages | Publicly Traded MHCs, Full Conversion Basis - Averages | Publicly Traded MHCs, Full Conversion Basis - Averages |  |  | 14.34 | 1026.4 | 0.83 | 18.40 | 24.93 | 25.71 | 73.66 | 74.67 | 13.75 | 0.00 | 5859546 | 18.51 | 0.67 | 3.86 | 0.67 | 3.85 |
|  | Publicly Traded MHCs, Full Conversion Basis - Medians | Publicly Traded MHCs, Full Conversion Basis - Medians | Publicly Traded MHCs, Full Conversion Basis - Medians |  |  | 14.92 | 347.2 | 0.68 | 19.91 | 27.69 | 26.89 | 79.97 | 80.81 | 13.09 | 0.00 | 2391666 | 18.45 | 0.63 | 2.97 | 0.63 | 3.06 |
|  | <u>Publicly Traded MHCs, Full Conversion Basis</u> | <u>Publicly Traded MHCs, Full Conversion Basis</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 1 | BSBK | Bogota Financial Corp. | Teaneck | NJ | NASDAQCM | 8.21 | 106.1 | 0.22 | 15.43 | 37.89 | 44.17 | 53.18 | 53.21 | 11.01 | 0.00 | 963599 | 20.70 | 0.29 | 1.40 | 0.25 | 1.20 |
| 2 | CLBK | Columbia Financial, Inc. | Fair Lawn | NJ | NASDAQGS | 18.73 | 1950.6 | 0.68 | 21.63 | 27.69 | 26.89 | 82.31 | 86.60 | 15.98 | 0.00 | 12206490 | 18.45 | 0.58 | 2.97 | 0.59 | 3.06 |
| 3 | GCBC | Greene County Bancorp, Inc. | Catskill | NY | NASDAQCM | 23.80 | 405.2 | 2.42 | 26.54 | 9.82 | 9.82 | 89.68 | 89.68 | 12.04 | 0.00 | 3365452 | 13.43 | 1.23 | 9.13 | 1.23 | 9.13 |
| 4 | KFFB | Kentucky First Federal Bancorp | Hazard | KY | NASDAQGM | 4.43 | 35.8 | 0.13 | 8.25 | 34.32 | 34.32 | 53.71 | 53.71 | 9.12 | 0.00 | 392872 | 16.98 | 0.27 | 1.57 | 0.27 | 1.57 |
| 5 | PBFS | Pioneer Bancorp, Inc. | Albany | NY | NASDAQCM | 14.22 | 347.2 | 0.90 | 19.95 | 15.87 | 15.87 | 69.54 | 71.28 | 14.52 | 0.00 | 2391666 | 20.37 | 0.91 | 4.38 | 0.91 | 4.38 |
| 6 | RBKB | Rhinebeck Bancorp, Inc. | Poughkeepsie | NY | NASDAQCM | 16.09 | 179.5 | 0.99 | 19.91 | 16.30 | 16.24 | 79.97 | 80.81 | 13.09 | 0.00 | 1370637 | 16.20 | 0.80 | 4.91 | 0.81 | 4.92 |
| 7 | TFSL | TFS Financial Corporation | Cleveland | OH | NASDAQGS | 14.92 | 4160.3 | 0.46 | 17.07 | 32.64 | 32.64 | 87.24 | 87.42 | 20.47 | 0.00 | 20326109 | 23.41 | 0.63 | 2.67 | 0.63 | 2.67 |
| 8 | WSBK | Winchester Bancorp, Inc. | Winchester | MA | NASDAQCM | 12.85 | 119.4 | 0.32 | 18.75 | 40.78 | 24.95 | 68.52 | 68.52 | 10.74 | 0.00 | 1112288 | 15.67 | 0.26 | 1.68 | 0.43 | 2.75 |

---

(1) Current stock price of minority stock.

(2) Current stock price of minority stock times total shares (public and MHC) outstanding.

(3) P/E or Core P/E = "NM" if multiple is negative or >50x.

(4) Ratios are pro forma assumings a second step conversion to full stock form.

Source: S&P Global Market Intelligence and RP Financial, LC. Calculations. The information provided in this report has been obtained from sources we believe are reliable but we cannot guarantee the accuracy or completeness of such information.

------

---

| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.29*** |

---

Compared to the public MHCs on a fully-converted basis, the Company's pro forma P/TB ratios (fully-converted basis) of 54.67% at the midpoint and 62.97% at the supermax are discounted 26.78% and 15.67%, respectively. Excluding the two MHCs now completing second step conversion, the Company's midpoint and supermax discounts are smaller at 23.18% and 22.52%, respectively.

There are three factors that support the Company's discounted P/TB relative to the public MHCs on a fully converted basis. First, the Company's pro forma P/TB ratio calculation reflects the sale of 100% of the shares, whereas the second step pro forma P/TB calculation of the public MHCs only reflects the sale of shares owned by their respective MHCs (e.g., Bogota Financial's second-step pro forma reflects the sale of 65.8% of the shares and Winchester Bancorp's second-step pro forma reflects the sale of 55.0% of the shares); thus, the Company's pro forma P/TB ratio mathematically builds in a more significant discount compared to pro forma P/TB calculation of public MHCs on a fully converted basis. Second, since the public MHCs are more likely to complete a second step conversion from a time perspective than the Company that is just initiating its IPO, there is support for higher pricing of public MHCs as the unique MHC characteristics would tend to be removed sooner. Third, there are a limited number of public MHCs that are grandfathered with regard to waiving dividend payments to the MHC; this supports higher pro forma pricing in that they are not subject to (1) the required annual majority vote by depositors to approve the waiver of dividends and (2) second step ownership dilution resulting from the past waiver of dividend payments to the MHC.

<u>Comparison to Recent MHC Offerings</u> 

As indicated at the beginning of this chapter, RP Financial's analysis of recent conversion offering pricing characteristics at closing and in the aftermarket has been limited to a "technical" analysis and, thus, the pricing characteristics of recent conversion offerings cannot be a primary determinate of value. Particular focus was placed on the P/TB approach in this analysis, since the P/E multiples do not reflect the actual impact of reinvestment and the source of the stock proceeds (i.e., external funds vs. deposit withdrawals). As previously noted, the most recent first step MHC offering was completed by Winchester Bancorp in May 2025. In comparison to Winchester Bancorp's closing pro forma P/TB ratio of 59.00%, the Company's P/TB ratio of 54.67% at the midpoint value reflects an implied discount of 7.34%. At the top of the super maximum, the Company's P/TB ratio of 62.97% reflects an implied premium of 6.73% relative to Winchester Bancorp's closing pro forma P/TB ratio. As of May 4, 2026, Winchester Bancorp's stock was up 28.5% from its IPO price.

------

---

| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.30*** |

---

<u>Valuation Conclusion – Fully-Converted Basis</u> 

In determining the offering range of value in connection with minority stock issuance for a financial institution in mutual holding company form, the first step is to determine pro forma market value and the resulting range of value on a fully-converted basis, that is, assuming all shares are issued in the IPO. Then, the Board of Directors of the converting financial institution determines the percent of shares to be issued publicly, such that the mutual holding company retains more than 50% ownership.

Based on the foregoing, it is our opinion that, as of May 4, 2026, the estimated aggregate pro forma market value of the shares to be issued on a fully-converted basis is $160,000,000 at the midpoint, equal to 16,000,000 shares offered at a per share value of $10.00. The $10.00 offering price per share has been established by the Company's Board of Directors, and thus the number of shares is a function of the pro forma market value and the offering price per share. Pursuant to conversion regulations, the 15% offering range under a full conversion scenario indicates a minimum value of $136,000,000 and a maximum value of $184,000,000, indicating total shares of 13,600,000 and 18,400,000, respectively. In the event the appraised value is subject to an increase, the aggregate pro forma market value may be increased up to a super maximum value of $211,600,000 without a resolicitation, reflecting 21,160,000 shares at $10.00 per share. The pro forma valuation calculations relative to the Peer Group (fully-converted basis) are shown in Table 4.3 and are detailed in Exhibit IV-7 and Exhibit IV-8.

<u>Minority Stock Issuance Offering Range</u> 

The Board of Directors has established a public offering range such that the public ownership of the Company will constitute a 43.0% ownership interest prior to the issuance of 2.0% of the outstanding shares to the Foundation. Thus, the MHC will retain 55% ownership of the outstanding shares and the public minority shares and the Foundation shares will be 45% of the outstanding shares.

------

---

| | |
|:---|:---|
| ***RP<sup>®</sup> Financial, LC.*** | ***VALUATION ANALYSIS*** |
|  | ***IV.31*** |

---

Accordingly, the offering of the minority stock issuance is $58,480,000 at the minimum, $68,800,000 at the midpoint, $79,120,000 at the maximum and $90,988,000 at the super maximum. Based on the $10.00 offering price per share, the shares offered in the public offering are 5,848,000 at the minimum, 6,880,000 at the midpoint, 7,912,000 at the maximum and 9,098,800 at the super maximum. The number of shares issued to the Foundation are 272,000 at the minimum, 320,000 at the midpoint, 368,000 at the maximum and 423,200 at the super maximum. The pro forma valuation calculations relative to the Peer Group based on reported financials are shown in Table 4.4 and are detailed in Exhibits IV-9 and IV-10.

------

**EXHIBITS** 

------

***LIST OF EXHIBITS***

---

| | |
|:---|:---|
| Exhibit<br>Number | Description |
| I-1 | Map of Office Locations |
| I-2 | Audited Financial Statements |
| I-3 | Key Operating Ratios |
| I-4 | Investment Portfolio Composition |
| I-5 | Yields and Costs |
| I-6 | Credit Loss Allowance Activity |
| I-7 | Interest Rate Risk Analysis |
| I-8 | Fixed and Adjustable Rate Loans |
| I-9 | Loan Portfolio Composition |
| I-10 | Contractual Maturity by Loan Type |
| I-11 | Non-Performing Assets |
| I-12 | Deposit Composition |
| II-1 | Description of Office Properties |
| II-2 | Historical Interest Rates |

---

------

**LIST OF EXHIBITS (continued)** 

---

| | |
|:---|:---|
| Exhibit<br>Number | Description |
| III-1 | General Characteristics of Publicly-Traded Thrifts |
| III-2 | All Public Market Pricing |
| III-3 | Peer Group Market Area Comparative Analysis |
| IV-1 | Stock Prices: As of May 4, 2026 |
| IV-2 | Historical Stock Price Indices |
| IV-3 | Stock Indices as of May 4, 2026 |
| IV-4 | Massachusetts Bank and Thrift Acquisitions 2021—Present |
| IV-5 | Director and Senior Management Summary Resumes |
| IV-6 | Pro Forma Regulatory Capital Ratios |
| IV-7 | Pro Forma Analysis Sheet – Fully Converted Basis |
| IV-8 | Pro Forma Effect of Conversion Proceeds – Fully Converted Basis |
| IV-9 | Pro Forma Analysis Sheet – Minority Stock Offering |
| IV-10 | Pro Forma Effect of Conversion Proceeds – Minority Stock Offering |
| V-1 | Firm Qualifications Statement |

---

------

**EXHIBIT I-1** 

**Narragansett Bancorp, Inc.** 

**Map of Office Locations** 

------

Exhibit I-1

Narragansett Bancorp, Inc.

Map of Office Locations

---

| | |
|:---|:---|
| ![LOGO](g122170dsp_579.jpg) | ![LOGO](g122170dsp_579.jpg) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ![LOGO](g122170dsp_579a.jpg)  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. Branches: Current Ownership (25) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. ------

**EXHIBIT I-2** 

**Narragansett Bancorp, Inc.** 

**Audited Financial Statements** 

**[Incorporated by Reference]** 

------

**EXHIBIT I-3** 

**Narragansett Bancorp, Inc.** 

**Key Operating Ratios** 

------

Exhibit I-3

Narragansett Bancorp, Inc.

Key Operating Ratios

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **At or For the**<br>**Three Months Ended**<br>**March 31,** | **At or For the**<br>**Three Months Ended**<br>**March 31,** | **At or For the**<br>**Years Ended**<br>**December 31,** | **At or For the**<br>**Years Ended**<br>**December 31,** |
|  | **2026** | **2025** | **2025** | **2024** |
|  **Performance Ratios:** |  |  |  |  |
|  Return (loss) on average assets (1) | 0.18% | (0.02)% | 0.21% | 0.18% |
|  Return (loss) on average equity (1) | 2.71% | (0.29)% | 3.39% | 3.25% |
|  Interest rate spread (2) | 2.59% | 2.12% | 2.37% | 1.94% |
|  Net interest margin (1)(3) | 3.01% | 2.56% | 2.08% | 2.38% |
|  Noninterest expense to average assets (1) | 4.12% | 3.83% | 4.00% | 3.46% |
|  Efficiency ratio (4) | 90.58% | 93.48% | 89.61% | 87.58% |
|  Average interest-earning assets to average interest-bearing liabilities | 119.45% | 117.21% | 118.95% | 117.74% |
|  Loans to deposits ratio | 92.15% | 95.89% | 93.65% | 100.35% |
|  **Capital Ratios:** |  |  |  |  |
|  Tier 1 capital to average assets (BayCoast Bank only) | 8.22% | 8.11% | 8.18% | 8.14% |
|  Tier 1 capital to risk-weighted assets (BayCoast Bank only) | 10.69% | 10.73% | 10.59% | 10.62% |
|  Common equity tier 1 capital to risk-weighted assets (BayCoast Bank only) | 10.69% | 10.73% | 10.59% | 10.62% |
|  Total capital to risk-weighted assets (BayCoast Bank only) | 11.94% | 11.94% | 11.92% | 11.76% |
|  Average equity to average assets | 6.51% | 5.83% | 6.04% | 5.56% |
|  **Asset Quality Ratios:** |  |  |  |  |
|  Allowance for credit losses on loans as a percentage of total loans | 1.31% | 1.20% | 1.28% | 1.11% |
|  Allowance for credit losses on loans as a percentage of non-performing loans | 66.15% | 467.64% | 77.69% | 481.69% |
|  Net (charge-offs) recoveries to average outstanding loans during the period (1) | (0.19)% | (0.03)% | (0.18)% | (0.02)% |
|  Non-performing loans as a percentage of total loans | 1.97% | 0.26% | 1.65% | 0.23% |
|  Non-performing loans as a percentage of total assets | 1.55% | 0.20% | 1.31% | 0.19% |
|  Total non-performing assets as a percentage of total assets | 1.55% | 0.20% | 1.31% | 0.19% |
|  **Other:** |  |  |  |  |
|  Number of offices | 25 | 25 | 25 | 25 |
|  Number of full-time equivalent employees | 532 | 523 | 523 | 519 |

---

(1) Annualized for the three-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 expense divided by the sum of net interest income and other income.

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT I-4** 

**Narragansett Bancorp, Inc.** 

**Investment Portfolio Composition** 

------

Exhibit I-4

Narragansett Bancorp, Inc.

Investment Portfolio Composition

***Portfolio Maturities and Yields.*** The composition and maturities of the investment securities portfolio at March 31, 2026 are summarized in the following table. The table excludes equity securities, which totaled $2.2 million at March 31, 2026. We held no held-to-maturity securities as of March 31, 2026. Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur. The weighted average yield is calculated based on the yield to maturity weighted for the size of each debt security over the entire portfolio of debt securities. No tax-equivalent yield adjustments have been made, as the effects would be immaterial.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **One Year or Less** | **One Year or Less** | **One Year or Less** | **More than One Year<br>through Five Years** | **More than Five Years**<br>**through Ten Years** | **More than Five Years**<br>**through Ten Years** | **More than Five Years**<br>**through Ten Years** | **More than Ten Years** | **Total** | **Total** | **Total** |
|  | **Amortized<br>Cost** | **Weighted<br>Average<br>Yield** | **Amortized<br>Cost** | **Weighted**<br>**Average**<br>**Yield** | **Amortized<br>Cost** | **Weighted<br>Average<br>Yield** | **Amortized<br>Cost** | **Weighted**<br>**Average**<br>**Yield** | **Amortized<br>Cost** | **Fair Value** | **Weighted<br>Average<br>Yield** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. government bonds | $33880 | 3.74% | $142370 | 3.87% | $58915 | 4.06% | $— | —% | $235165 | $234374 | 3.90% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. government-sponsored enterprise securities | 15180 | 3.82% | 32240 | 3.90% |  | —% |  | —% | 47420 | 45309 | 3.89% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and municipal bonds | 924 | 2.98% | 7181 | 3.76% | 7573 | 3.39% | 17939 | 4.00% | 33617 | 33252 | 3.79% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate bonds | 12285 | 5.25% | 4744 | 4.82% | 5400 | 4.75% |  | —% | 22429 | 21351 | 5.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subordinated debt and collateralized debt obligations |  | —% | 3000 | 14.44% | 9000 | 6.29% |  | —% | 12000 | 11381 | 8.52% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $62269 | 4.04% | $189535 | 4.08% | $80888 | 4.30% | $17393 | 4.00% | $350631 | $345667 | 4.12% |

---

Source: Narragansett Bancorp's prospectus.

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**EXHIBIT I-5** 

**Narragansett Bancorp, Inc.** 

**Yields and Costs** 

------

Exhibit I-5

Narragansett Bancorp, Inc.

Yields and Costs

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** |
|  | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** |
| | **Average<br>Outstanding<br>Balance** | **Interest** | **Average<br>Yield/<br>Rate (1)** | **Average<br>Outstanding<br>Balance** | **Interest** | **Average<br>Yield/<br>Rate (1)** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  **Interest-earning assets:** |  |  |  |  |  |  |
|  Loans | $2310011 | $31483 | 5.45% | $2366246 | $32467 | 5.49% |
|  Debt securities | 346502 | 2783 | 3.21% | 302056 | 2048 | 2.71% |
|  Equity securities and mutual<br> funds | 7899 | 114 | 5.79% | 13549 | 260 | 7.67% |
|  Cash equivalents | 18859 | 41 | 0.87% | 54484 | 417 | 3.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-earning assets | 2683271 | 34421 | 5.13% | 2736335 | 35192 | 5.14% |
|  Noninterest-earning assets | 202839 |  |  | 204609 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $2886110 |  |  | $2940944 |  |  |
|  **Interest-bearing liabilities:** |  |  |  |  |  |  |
|  NOW accounts | $394247 | 1186 | 1.22% | $389283 | 1309 | 1.36% |
|  Savings accounts | 288456 | 144 | 0.20% | 294988 | 157 | 0.22% |
|  Money market accounts | 837356 | 5988 | 2.90% | 732841 | 6294 | 3.48% |
|  Certificates of deposit | 509878 | 4082 | 3.25% | 549206 | 5246 | 3.87% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing deposits | 2029937 | 11401 | 2.28% | 1966318 | 13006 | 2.68% |
|  Borrowings: |  |  |  |  |  |  |
|  Other Borrowings | 121797 | 1277 | 4.19% | 259096 | 2753 | 4.25% |
|  Subordinated debt | 94611 | 1577 | 6.67% | 109226 | 1905 | 6.97% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing liabilities | 2246345 | 14256 | 2.54% | 2334640 | 17664 | 3.03% |
|  Noninterest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits | 405741 |  |  | 389999 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 46177 |  |  | 44749 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 2698263 |  |  | 2769388 |  |  |
|  Retained earnings | 187847 |  |  | 171555 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and retained earnings | $2886110 |  |  | $2940943 |  |  |
|  Net interest income |  | $20166 |  |  | $17529 |  |
|  Net interest rate spread (2) |  |  | 2.59% |  |  | 2.12% |
|  Net interest-earning assets (3) | $436926 |  |  | $401695 |  |  |
|  Net interest margin (4) |  |  | 3.01% |  |  | 2.56% |
|  Average interest-earning assets to interest-bearing liabilities |  |  | 119.45% |  |  | 117.21% |

---

(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.

------

Exhibit I-5 (continued)

Narragansett Bancorp, Inc.

Yields and Costs

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Average<br>Outstanding<br>Balance** | **Interest** | **Average<br>Yield/<br>Rate** | **Average<br>Outstanding<br>Balance** | **Interest** | **Average<br>Yield/<br>Rate** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  **Interest-earning assets:** |  |  |  |  |  |  |
|  Loans | $2338433 | $131315 | 5.62% | $2411917 | $132250 | 5.48% |
|  Debt securities | 322804 | 9464 | 2.93% | 274927 | 6580 | 2.39% |
|  Equity securities and mutual funds | 10817 | 885 | 8.18% | 13634 | 1024 | 7.51% |
|  Cash equivalents | 49809 | 1647 | 3.26% | 50129 | 1905 | 3.74% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-earning assets | 2721863 | 143311 | 5.27% | 2750607 | 141759 | 5.15% |
|  Noninterest-earning assets | 200220 |  |  | 179229 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $2922083 |  |  | $2929936 |  |  |
|  **Interest-bearing liabilities:** |  |  |  |  |  |  |
|  NOW accounts | $384745 | 5224 | 1.36% | $380465 | 4980 | 1.31% |
|  Savings accounts | 292109 | 626 | 0.21% | 301763 | 632 | 0.21% |
|  Money market accounts | 772148 | 25648 | 3.32% | 648475 | 24012 | 3.70% |
|  Certificates of deposit | 539399 | 19788 | 3.67% | 639720 | 27750 | 4.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing deposits | 1988402 | 51285 | 2.58% | 1970423 | 57374 | 2.46% |
|  Borrowings | 191235 | 8322 | 4.29% | 256713 | 11155 | 4.27% |
|  Subordinated debt | 108673 | 7579 | 6.88% | 108987 | 7870 | 7.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest-bearing liabilities | 2288309 | 67186 | 2.90% | 2336123 | 76400 | 3.22% |
|  Noninterest-bearing liabilities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Demand deposits | 410579 |  |  | 398769 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 46796 |  |  | 31958 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 2745684 |  |  | 2766849 |  |  |
|  Retained earnings | 176399 |  |  | 162987 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and retained earnings | $2922083 |  |  | $2929836 |  |  |
|  Net interest income |  | $76125 |  |  | $65359 |  |
|  Net interest rate spread (1) |  |  | 2.37% |  |  | 1.94% |
|  Net interest-earning assets (2) | $433554 |  |  | $414484 |  |  |
|  Net interest margin (3) |  |  | 2.80% |  |  | 2.38% |
|  Average interest-earning assets to interest-bearing liabilities | 118.95% |  |  | 117.74% |  |  |

---

(1) 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.

(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average total interest-earning assets.

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT I-6** 

**Narragansett Bancorp, Inc.** 

**Credit Loss Allowance Activity** 

------

Exhibit I-6

Narragansett Bancorp, Inc.

Credit Loss Allowance Activity

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **At or For the**<br>**Three Months Ended**<br>**March 31,** | **At or For the**<br>**Three Months Ended**<br>**March 31,** | **At or For the**<br>**Years Ended**<br>**December 31,** | **At or For the**<br>**Years Ended**<br>**December 31,** |
|  | **2026** | **2025** | **2025** | **2024** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Allowance for credit losses at beginning of period | $29078 | $26223 | $26223 | $19000 |
|  Provision for credit losses | 1700 | 1950 | 7025 | 7650 |
|  Charge-offs: |  |  |  |  |
|  Mortgage loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate |  |  | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate |  |  | (3141) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit |  |  |  |  |
|  Commercial |  | (82) | (478) |  |
|  Consumer | (1179) | (104) | (935) | (506) |
|  Other |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total charge-offs | (1179) | (186) | (4555) | (506) |
|  Total recoveries | 81 | 20 | 385 | 79 |
|  Net (charge-offs) recoveries | (1098) | (166) | (4170) | (427) |
|  Allowance at end of period | $29680 | $28007 | $29078 | $26223 |
|  Allowance to non-performing loans | 84.99% | 467.65% | 105.94% | 481.69% |
|  Allowance to total loans outstanding at the end of the period | 1.31% | 1.20% | 1.28% | 1.11% |
|  Net (charge-offs) recoveries to average loans outstanding during the period (1) | (0.19)% | (0.03)% | (0.18)% | (0.02)% |

---

(1) Annualized for the three-month periods.

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT I-7** 

**Narragansett Bancorp, Inc.** 

**Interest Rate Risk Analysis** 

------

Exhibit I-7

Narragansett Bancorp, Inc.

Interest Rate Risk Analysis

---

| | | | | |
|:---|:---|:---|:---|:---|
| **At April 30, 2026** | **At April 30, 2026** | **At April 30, 2026** | **At April 30, 2026** | **At April 30, 2026** |
| **Change in Interest Rates (Basis Points) (1)** | **Net Interest Income**<br>**Year 1 Forecast** | **Year 1 Change**<br>**From Level** | **Net Interest Income**<br>**Year 2 Forecast** | **Year 2 Change**<br>**From Level** |
|  | **(Dollars in thousands)** | | | |
|  +200 | $92775 | (3.2)% | $105800 | 10.3% |
|  Level | 95883 |  | 101954 | 6.3% |
| -200 | 96813 | 1.0% | 95070 | (0.8)% |

---

(1) Assumes an instantaneous uniform change in interest rates at all maturities.

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT I-8** 

**Narragansett Bancorp, Inc.** 

**Fixed and Adjustable Rate Loans** 

------

Exhibit I-8

Narragansett Bancorp, Inc.

Fixed and Adjustable Rate Loans

The following table sets forth our fixed and adjustable-rate loans at March 31, 2026 that are contractually due after March 31, 2027.

---

| | | | |
|:---|:---|:---|:---|
|  | **Due After March 31, 2027** | **Due After March 31, 2027** | **Due After March 31, 2027** |
|  | **Fixed** | **Adjustable** | **Total** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  Mortgage loans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate | $189589 | $275590 | $465179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate | 113852 | 894925 | 1008777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction | 31075 | 106272 | 137347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit | 28984 | 184708 | 213692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial | 61287 | 137565 | 198852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer | 100996 | 2666 | 103661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total loans | $525784 | $1601724 | $2127508 |

---

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT I-9** 

**Narragansett Bancorp, Inc.** 

**Loan Portfolio Composition** 

------

Exhibit I-9

Narragansett Bancorp, Inc.

Loan Portfolio Composition

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **At March 31,**<br>**2026** | **At March 31,**<br>**2026** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** |
|  | **At March 31,**<br>**2026** | **At March 31,**<br>**2026** | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **Percent** | **Amount** | **Percent** | **Amount** | **Percent** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Mortgage loans: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate | $465313 | 20.5% | $484198 | 21.3% | $595532 | 25.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate (1) | 1089361 | 47.9 | 1080739 | 47.6 | 1088052 | 46.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction | 184236 | 8.1 | 179266 | 7.9 | 171595 | 7.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit | 213706 | 9.4 | 209874 | 9.3 | 178962 | 7.6 |
|  Commercial | 200807 | 8.8 | 194649 | 8.6 | 201392 | 8.5 |
|  Consumer | 119730 | 5.3 | 120586 | 5.3 | 127026 | 5.4 |
|  Other |  |  | 5 | 0.0 | 1106 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gross loans | 2273153 | 100.0% | 2269316 | 100.0% | 236366 | 100.0% |
|  Net deferred loan fees | (3850) |  | (3964) |  | (3455) |  |
|  Allowance for credit losses | (29680) |  | (29078) |  | (26223) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans, net | $2239623 |  | $2236274 |  | $2333986 |  |

---

(1) Includes $291.9 million, $293.5 million and $286.0 million of multi-family residential real
estate loans at March 31, 2026, December 31, 2025 and 2024, respectively.

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT I-10** 

**Narragansett Bancorp, Inc.** 

**Contractual Maturity by Loan Type** 

------

Exhibit I-10

Narragansett Bancorp, Inc.

Contractual Maturity by Loan Type

***Contractual Maturities.*** The following tables set forth the contractual maturities of our total loan portfolio at March 31, 2026. Demand loans, loans having no stated repayment schedule or maturity, and overdraft loans are reported as being due in one year or less. The tables present contractual maturities and do not reflect repricing or the effect of prepayments. Actual maturities may differ.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Residential<br>Real Estate** | **Commercial<br>and Multi-<br>Family Real<br>Estate** | **Construction** | **Home Equity<br>Loans and<br>Lines of Credit** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  Amounts due in: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One year or less | $134 | $80584 | $46889 | $14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After one through five years | 6533 | 163250 | 14872 | 1916 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After five through 15 years | 19188 | 224280 | 130 | 56254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; More than 15 years | 439458 | 621247 | 122345 | 155522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $465313 | $1089361 | $184236 | $213706 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Commercial** | **Consumer** | **Total** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** |
|  Amounts due in: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; One year or less | $1955 | $16069 | $145645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After one through five years | 74650 | 24641 | 285862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; After five through 15 years | 51564 | 41246 | 392662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; More than 15 years | 72638 | 37774 | 1448981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $200807 | $119730 | $2273153 |

---

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT I-11** 

**Narragansett Bancorp, Inc.** 

**Non-Performing Assets** 

------

Exhibit I-11

Narragansett Bancorp, Inc.

Non-Performing Assets

---

| | | | |
|:---|:---|:---|:---|
|  | **At March 31,**<br>**2026** | **At December 31,** | **At December 31,** |
|  | **At March 31,**<br>**2026** | **2025** | **2024** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Non-accrual loans: |  |  |  |
|  Mortgage loans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residential real estate | $3919 | $3750 | $2518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and multi-family real estate | 37180 | 30780 | 332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction |  |  | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home equity loans and lines of credit | 871 | 1150 | 812 |
|  Commercial | 1725 | 292 | 478 |
|  Consumer | 1170 | 1456 | 1257 |
|  Other |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-accrual loans | 44865 | 37428 | 5444 |
|  Accruing loans past due 90 days or more |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-performing loans | $44865 | $37428 | $5444 |
|  Foreclosed and repossessed assets | $20 | $142 | $222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-performing assets | $44885 | $37570 | $5466 |
|  Total non-performing loans to total loans | 1.97% | 1.65% | 0.23% |
|  Total non-accrual loans to total loans | 1.97% | 1.65% | 0.23% |
|  Total non-performing assets to total assets | 1.55% | 1.31% | 0.19% |

---

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT I-12** 

**Narragansett Bancorp, Inc.** 

**Deposit Composition** 

------

Exhibit I-12

Narragansett Bancorp, Inc.

Deposit Composition

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** | **At December 31,** |
|  | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Amount** | **Percent** | **Average<br>Rate** | **Amount** | **Percent** | **Average<br>Rate** | **Amount** | **Percent** | **Average<br>Rate** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Noninterest-bearing demand | $410188 | 16.6% | —% | $394297 | 16.3% | —% | $389186 | 16.7% | —% |
|  NOW accounts | 405801 | 16.5 | 0.01% | 404615 | 16.7 | 0.01% | 382877 | 16.5 | 1.27% |
|  Savings accounts | 291353 | 11.8 | 0.20% | 289179 | 11.9 | 0.21% | 292858 | 12.6 | 0.22% |
|  Money market accounts | 869170 | 35.2 | 2.88% | 812532 | 33.5 | 3.00% | 704796 | 30.3 | 3.46% |
|  Certificates of deposit | 490249 | 19.9 | 3.08% | 522683 | 21.6 | 3.37% | 556163 | 23.9 | 3.90% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $2466761 | 100.0% | 1.88% | $2423306 | 100.0% | 2.01% | $2325880 | 100.0% | 2.25% |

---

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT II-1** 

**Description of Office Properties** 

------

Exhibit II-1

Narragansett Bancorp, Inc.

Description of Office Properties

**Properties** 

BayCoast Bank operates from its main office in Swansea, Massachusetts and 25 full-service branch banking offices in the South Coast of Massachusetts and the State of Rhode Island. Our subsidiary office locations are: BayCoast Insurance (seven offices in Massachusetts and Rhode Island), BayCoast Mortgage (four offices in Massachusetts), Stack Ally (one office in Massachusetts) Plimoth Investment Advisors (two offices in Massachusetts and one office in Connecticut), Priority Funding (one office in Massachusetts and one office in New York) and Teamwork Funding (one office in Arizona). As of March 31, 2026, the net book value of our real properties, including land, buildings and building improvements, was $40.8 million.

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT II-2** 

**Historical Interest Rates** 

------

Exhibit II-2 <br> Historical Interest Rates(1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Year/Qtr. Ended | Year/Qtr. Ended | Prime<br>Rate | 90 Day<br>T-Note | One Year<br>T-Note | 10 Year<br>T-Note |
|  2015: | Quarter 1 | 3.25% | 0.03% | 0.26% | 1.94% |
|  | Quarter 2 | 3.25% | 0.01% | 0.28% | 2.35% |
|  | Quarter 3 | 3.25% | 0.00% | 0.33% | 2.06% |
|  | Quarter 4 | 3.50% | 0.16% | 0.65% | 2.27% |
|  2016: | Quarter 1 | 3.50% | 0.21% | 0.59% | 1.78% |
|  | Quarter 2 | 3.50% | 0.26% | 0.45% | 1.49% |
|  | Quarter 3 | 3.50% | 0.29% | 0.59% | 1.60% |
|  | Quarter 4 | 3.75% | 0.51% | 0.85% | 2.45% |
|  2017: | Quarter 1 | 4.00% | 0.76% | 1.03% | 2.40% |
|  | Quarter 2 | 4.25% | 1.03% | 1.24% | 2.31% |
|  | Quarter 3 | 4.25% | 1.06% | 1.31% | 2.33% |
|  | Quarter 4 | 4.50% | 1.39% | 1.76% | 2.40% |
|  2018: | Quarter 1 | 4.75% | 1.73% | 2.09% | 2.74% |
|  | Quarter 2 | 5.00% | 1.93% | 2.33% | 2.85% |
|  | Quarter 3 | 5.25% | 2.19% | 2.59% | 3.05% |
|  | Quarter 4 | 5.50% | 2.45% | 2.63% | 2.69% |
|  2019: | Quarter 1 | 5.50% | 2.40% | 2.40% | 2.41% |
|  | Quarter 2 | 5.00% | 2.12% | 1.92% | 2.00% |
|  | Quarter 3 | 4.75% | 1.88% | 1.75% | 1.68% |
|  | Quarter 4 | 4.75% | 1.55% | 1.59% | 1.92% |
|  2020: | Quarter 1 | 3.25% | 0.11% | 0.17% | 0.70% |
|  | Quarter 2 | 3.25% | 0.16% | 0.16% | 0.66% |
|  | Quarter 3 | 3.25% | 0.10% | 0.12% | 0.69% |
|  | Quarter 4 | 3.25% | 0.09% | 0.10% | 0.93% |
|  2021: | Quarter 1 | 3.25% | 0.03% | 0.07% | 1.74% |
|  | Quarter 2 | 3.25% | 0.05% | 0.08% | 1.44% |
|  | Quarter 3 | 3.25% | 0.04% | 0.09% | 1.52% |
|  | Quarter 4 | 3.25% | 0.06% | 0.39% | 1.52% |
|  2022: | Quarter 1 | 3.50% | 0.52% | 1.63% | 2.32% |
|  | Quarter 2 | 4.75% | 1.72% | 2.80% | 2.98% |
|  | Quarter 3 | 6.25% | 3.33% | 4.05% | 3.83% |
|  | Quarter 4 | 7.50% | 4.42% | 4.73% | 3.88% |
|  2023: | Quarter 1 | 8.00% | 4.85% | 4.64% | 3.48% |
|  | Quarter 2 | 8.25% | 5.43% | 5.40% | 3.81% |
|  | Quarter 3 | 8.50% | 5.55% | 5.46% | 4.59% |
|  | Quarter 4 | 8.50% | 5.40% | 4.79% | 3.88% |
|  2024: | Quarter 1 | 8.50% | 5.46% | 5.03% | 4.20% |
|  | Quarter 2 | 8.50% | 5.48% | 5.09% | 4.36% |
|  | Quarter 3 | 8.00% | 4.73% | 3.98% | 3.81% |
|  | Quarter 4 | 7.50% | 4.37% | 4.16% | 4.58% |
|  2025: | Quarter 1 | 7.50% | 4.32% | 4.03% | 4.23% |
|  | Quarter 2 | 7.50% | 4.41% | 3.96% | 4.24% |
|  | Quarter 3 | 7.25% | 4.02% | 3.68% | 4.16% |
|  | Quarter 4 | 6.75% | 3.67% | 3.48% | 4.18% |
| 2026 | Quarter 1 | 6.75% | 3.70% | 3.68% | 4.30% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of May 4, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of May 4, 2026 | 6.75% | 3.70% | 3.78% | 4.45% |

---

(1) End of period data.

Sources: Federal Reserve and The Wall Street Journal.

------

**EXHIBIT III-1** 

**General Characteristics of Publicly-Traded Thrifts** 

------

Exhibit III-1

Characteristics of Publicly-Traded Thrifts

May 4, 2026

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  | | |  | | As of | As of |
|  |  |  |  |  |  | | |  | | May 4, 2026 | May 4, 2026 |
| Ticker | Financial Institution | Exchange | Region | City | State | Total<br>Assets | Offices | Fiscal<br>Mth End | Conv.<br>Date | Stock<br>Price | Market<br>Value |
|  |  |  |  |  |  | ($Mil) |  |  |  | ($) | ($Mil) |
|  AVBC | Avidia Bancorp, Inc. | NYSE | NE | Hudson | MA | $2807 | 10 | Dec | 7/31/25 | $20.34 | $377 |
|  AX | Axos Financial, Inc. | NYSE | WE | Las Vegas | NV | $29249 | 2 | Jun | 3/14/05 | $87.28 | $4965 |
|  BYFC | Broadway Financial Corporation | NASDAQCM | WE | Los Angeles | CA | $1426 | 4 | Dec | 1/8/96 | $8.52 | $53 |
|  BVFL | BV Financial, Inc. | NASDAQCM | MA | Baltimore | MD | $911 | 12 | Dec | 1/12/05 | $19.44 | $157 |
|  CFFN | Capitol Federal Financial, Inc. | NASDAQGS | MW | Topeka | KS | $9829 | 47 | Sep | 3/31/99 | $7.68 | $954 |
|  CLST | Catalyst Bancorp, Inc. | NASDAQCM | SW | Opelousas | LA | $289 | 6 | Dec | 10/12/21 | $15.91 | $65 |
|  CPBI | Central Plains Bancshares, Inc. | NASDAQCM | MW | Grand Island | NE | $536 | 9 | Mar | 10/19/23 | $17.49 | $68 |
|  ECBK | ECB Bancorp, Inc. | NASDAQCM | NE | Everett | MA | $1650 | 3 | Dec | 7/27/22 | $18.07 | $159 |
|  FBLA | FB Bancorp, Inc. | NASDAQCM | SW | New Orleans | LA | $1255 | 20 | Dec | 10/22/24 | $13.87 | $238 |
|  FDSB | Fifth District Bancorp, Inc. | NASDAQCM | SW | New Orleans | LA | $534 | 7 | Dec | 7/31/24 | $15.12 | $80 |
|  FNWB | First Northwest Bancorp | NASDAQGM | WE | Port Angeles | WA | $2133 | 15 | Dec | 1/29/15 | $9.92 | $88 |
|  FSEA | First Seacoast Bancorp, Inc. | NASDAQCM | NE | Dover | NH | $599 | 5 | Dec | 7/16/19 | $11.74 | $51 |
|  FLG | Flagstar Bank, National Association | NYSE | MA | Hicksville | NY | $87129 | 341 | Dec | 11/23/93 | $13.86 | $5777 |
|  FSBW | FS Bancorp, Inc. | NASDAQCM | WE | Mountlake Terrace | WA | $3204 | 37 | Dec | 7/9/12 | $40.30 | $298 |
|  HIFS | Hingham Institution for Savings | NASDAQGM | NE | Hingham | MA | $4548 | 9 | Dec | 12/13/88 | $278.97 | $612 |
|  HFBL | Home Federal Bancorp, Inc. of Louisiana | NASDAQCM | SW | Shreveport | LA | $642 | 11 | Jun | 1/18/05 | $18.74 | $56 |
|  HYNE | Hoyne Bancorp, Inc. | NASDAQCM | MW | Oak Park | IL | $489 | 7 | Dec | 12/3/25 | $15.72 | $127 |
|  KRNY | Kearny Financial Corp. | NASDAQGS | MA | Fairfield | NJ | $7608 | 41 | Jun | 2/23/05 | $7.97 | $501 |
|  LSBK | Lake Shore Bancorp, Inc. | NASDAQGM | MA | Dunkirk | NY | $722 | 11 | Dec | 4/3/06 | $15.89 | $125 |
|  MGYR | Magyar Bancorp, Inc. | NASDAQGM | MA | New Brunswick | NJ | $1068 | 7 | Sep | 1/23/06 | $17.42 | $113 |
|  NECB | Northeast Community Bancorp, Inc. | NASDAQCM | MA | White Plains | NY | $2025 | 12 | Dec | 7/5/06 | $23.73 | $293 |
|  NSTS | NSTS Bancorp, Inc. | NASDAQCM | MW | Waukegan | IL | $267 | 3 | Dec | 1/18/22 | $12.77 | $63 |
|  PROV | Provident Financial Holdings, Inc. | NASDAQGS | WE | Riverside | CA | $1218 | 14 | Jun | 6/27/96 | $17.10 | $109 |
|  PFS | Provident Financial Services, Inc. | NYSE | MA | Jersey City | NJ | $25202 | 144 | Dec | 1/15/03 | $22.25 | $2899 |
|  RVSB | Riverview Bancorp, Inc. | NASDAQGS | WE | Vancouver | WA | $1464 | 17 | Mar | 10/26/93 | $5.14 | $106 |
|  SRBK | SR Bancorp, Inc. | NASDAQCM | MA | Bound Brook | NJ | $1143 | 14 | Jun | 9/19/23 | $18.40 | $138 |
|  TCBS | Texas Community Bancshares, Inc. | NASDAQCM | SW | Mineola | TX | $430 | 7 | Dec | 7/14/21 | $16.59 | $45 |
|  TSBK | Timberland Bancorp, Inc. | NASDAQGM | WE | Hoquiam | WA | $2046 | 24 | Sep | 1/12/98 | $40.26 | $315 |
|  TFIN | Triumph Financial, Inc. | NYSE | SW | Dallas | TX | $6877 | 62 | Dec | 11/6/14 | $65.68 | $1564 |
|  TRST | TrustCo Bank Corp NY | NASDAQGS | MA | Glenville | NY | $6508 | 133 | Dec |  | $47.53 | $832 |
|  WSBF | Waterstone Financial, Inc. | NASDAQGS | MW | Wauwatosa | WI | $2251 | 16 | Dec | 10/4/05 | $17.90 | $310 |
|  WNEB | Western New England Bancorp, Inc. | NASDAQGS | NE | Westfield | MA | $2765 | 27 | Dec | 12/27/01 | $13.85 | $278 |
|  WSFS | WSFS Financial Corporation | NASDAQGS | MA | Wilmington | DE | $22107 | 94 | Dec | 11/26/86 | $71.21 | $3714 |
|  BSBK | Bogota Financial Corp. | NASDAQCM | MA | Teaneck | NJ | $905 | 10 | Dec | 1/15/20 | $8.21 | $103 |
|  CLBK | Columbia Financial, Inc. | NASDAQGS | MA | Fair Lawn | NJ | $11011 | 70 | Dec | 4/19/18 | $18.73 | $1951 |
|  GCBC | Greene County Bancorp, Inc. | NASDAQCM | MA | Catskill | NY | $3181 | 22 | Jun | 12/30/98 | $23.80 | $405 |
|  KFFB | Kentucky First Federal Bancorp | NASDAQGM | MW | Hazard | KY | $375 | 7 | Jun | 3/2/05 | $4.43 | $36 |
|  PBFS | Pioneer Bancorp, Inc. | NASDAQCM | MA | Albany | NY | $2221 | 21 | Dec | 7/17/19 | $14.22 | $347 |
|  RBKB | Rhinebeck Bancorp, Inc. | NASDAQCM | MA | Poughkeepsie | NY | $1285 | 17 | Dec | 1/16/19 | $16.09 | $175 |
|  TFSL | TFS Financial Corporation | NASDAQGS | MW | Cleveland | OH | $17480 | 36 | Sep | 4/20/07 | $14.92 | $4160 |
|  WSBK | Winchester Bancorp, Inc. | NASDAQCM | NE | Winchester | MA | $1057 | 5 | Jun | 4/30/25 | $12.85 | $119 |
|  AFBI | Affinity Bancshares, Inc. | NASDAQCM | SE | Covington | GA | $925 | 2 | Dec | 4/27/17 | $22.43 | $137 |
|  NFBK | Northfield Bancorp, Inc. | NASDAQGS | MA | Woodbridge | NJ | $5735 | 37 | Dec | 11/7/07 | $13.91 | $581 |

---

Source: S&P Global Market Intelligence.

------

**EXHIBIT III-2** 

**All Public Market Pricing** 

------

---

| |
|:---|
| Exhibit III-2 |
| All Public Market Pricing |
| As of May 4, 2026 |

---

---

| | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | Market | Market | Per Share Data | Per Share Data | | | | | | | | | | | | | | | | |
|  |  |  | Capitalization | Capitalization | | | | | | | | Dividends(3) | Dividends(3) | Dividends(3) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) | Financial Characteristics(5) |
|  |  |  | | | | | Pricing Ratios(2) | Pricing Ratios(2) | Pricing Ratios(2) | Pricing Ratios(2) | Pricing Ratios(2) | | | | | | | | Reported | Reported | Core | Core |
| | |  | Price/<br>Share | Market<br>Value | Core<br>12 Month<br>EPS(1) | Book<br>Value/<br>Share | P/E | P/B | P/A | P/TB | P/Core | Amount/<br>Share |<br>Yield | Payout<br>Ratio(4) | Total<br>Assets | Equity/<br>Assets | Tang. Eq./<br>T. Assets | NPAs/<br>Assets | ROAA | ROAE | ROAA | ROAE |
|  |  |  | ($) | ($Mil) | ($) | ($) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | ($Mil) | (%) | (%) | (%) | (%) | (%) | (%) | (%) |
|  <u>All Non-MHC Public Thrifts(6)</u> | <u>All Non-MHC Public Thrifts(6)</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | $31.11 | $774.16 | $2.11 | $28.83 | 14.59x | 95.53% | 13.69% | 106.93% | 14.49x | $0.58 | 2.19% | 36.78% | $6998 | 14.89% | 14.84% | 0.65% | 0.69% | 5.57% | 0.75% | 5.95% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Median |  |  | $17.42 | $158.53 | $0.97 | $19.97 | 13.94x | 90.11% | 13.45% | 92.54% | 12.42x | $0.40 | 2.27% | 32.36% | $1650 | 12.28% | 10.64% | 0.48% | 0.73% | 5.61% | 0.75% | 5.53% |
| <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Averages |  | $31.11 | $774.16 | $2.11 | $28.83 | 14.59x | 95.53% | 13.69% | 106.93% | 14.49x | $0.58 | 2.19% | 36.78% | $6998 | 14.89% | 14.84% | 0.65% | 0.69% | 5.57% | 0.75% | 5.95% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medians |  | $17.42 | $158.53 | $0.97 | $19.97 | 13.94x | 90.11% | 13.45% | 92.54% | 12.42x | $0.40 | 2.27% | 32.36% | $1650 | 12.28% | 10.64% | 0.48% | 0.73% | 5.61% | 0.75% | 5.53% |
| <u>Comparable Group</u> | <u>Comparable Group</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  AVBC | Avidia Bancorp, Inc. | MA | $20.34 | $377.32 | NA | $19.09 | NM | 106.57% | 14.55% | 110.00% | NM | $0.20 | 0.98% | NA | $2807 | 13.65% | 13.28% | 0.49% | 0.51% | 4.52% | 0.88% | 7.69% |
|  AX | Axos Financial, Inc. | NV | $87.28 | $4964.89 | $8.14 | $53.89 | 10.61x | 161.97% | 16.97% | 173.95% | 10.72x | NA | NA | NA | $29249 | 10.48% | 9.83% | 0.62% | 1.80% | 16.62% | 1.77% | 16.29% |
|  BYFC | Broadway Financial Corporation | CA | $8.52 | $79.27 | 0.51) | $12.14 | NM | 70.19% | 6.21% | 71.06% | NM | $0.00 | 0.00% | NA | $1426 | 18.44% | 18.36% | NA | -1.56% | -7.50% | -0.10% | -0.49% |
|  BVFL | BV Financial, Inc. | MD | $19.44 | $157.16 | $1.62 | $20.99 | 13.99x | 92.64% | 18.68% | 100.89% | 12.03x | $0.13 | 0.00% | NA | $911 | 20.16% | 18.82% | NA | 1.37% | 6.59% | 1.58% | 7.60% |
|  CFFN | Capitol Federal Financial, Inc. | KS | $7.68 | $953.62 | $0.60 | $8.03 | 12.80x | 95.61% | NA | 96.64% | 12.76x | $0.34 | 4.43% | 63.33% | $9829 | 10.44% | NA | 0.56% | 0.80% | 7.42% | 0.80% | NA |
|  CLST | Catalyst Bancorp, Inc. | LA | $15.91 | $64.55 | $0.57 | $20.26 | 28.92x | 78.52% | 22.37% | 78.52% | 27.90x | NA | NA | NA | $289 | 28.49% | 28.49% | 0.85% | 0.73% | 2.49% | 0.75% | 2.58% |
|  CPBI | Central Plains Bancshares, Inc. | NE | $17.49 | $68.44 | $1.03 | $20.87 | 16.98x | 83.79% | 13.72% | NA | 16.98x | NA | NA | NA | $536 | 16.38% | NA | NA | 0.77% | 5.32% | 0.77% | 5.32% |
|  ECBK | ECB Bancorp, Inc. | MA | $18.07 | $158.53 | $1.15 | $20.05 | 15.71x | 90.11% | 9.61% | 90.11% | 15.71x | NA | NA | NA | $1650 | 10.66% | 10.66% | NA | 0.62% | 5.61% | 0.62% | 5.61% |
|  FBLA | FB Bancorp, Inc. | LA | $13.87 | $238.00 | $0.22 | $17.38 | NM | 79.79% | 19.99% | 79.79% | NM | NA | NA | NA | $1255 | 25.05% | 25.05% | 1.45% | 0.10% | 0.38% | 0.31% | 1.17% |
|  FDSB | Fifth District Bancorp, Inc. | LA | $15.12 | $79.97 | $0.26 | $24.26 | 18.90x | 62.33% | 15.13% | 62.33% | NM | NA | NA | NA | $534 | 24.28% | 24.28% | 0.11% | 0.76% | 3.17% | 0.25% | 1.05% |
|  FNWB | First Northwest Bancorp | WA | $9.92 | $87.90 | $0.92 | $16.52 | 18.04x | 60.03% | 4.42% | 60.44% | 10.80x | $0.00 | 0.00% | NA | $2133 | 7.36% | 7.31% | 1.08% | 0.23% | 3.15% | 0.40% | 5.46% |
|  FSEA | First Seacoast Bancorp, Inc. | NH | $11.74 | $51.14 | 0.22) | $13.54 | NM | 86.72% | 9.20% | 86.97% | NM | NA | NA | NA | $599 | 10.60% | 10.58% | 0.08% | -0.14% | -1.37% | -0.14% | -1.33% |
|  FLG | Flagstar Bank, National Association | NY | $13.86 | $5776.63 | $0.17 | $18.28 | NM | 75.84% | 6.67% | 79.56% | NM | $0.04 | 0.29% | NA | $87129 | 9.32% | 8.95% | 3.08% | -0.06% | -0.69% | 0.11% | 1.29% |
|  FSBW | FS Bancorp, Inc. | WA | $40.30 | $298.16 | $4.51 | $41.84 | 9.39x | 96.32% | 9.44% | 100.61% | 8.93x | $1.16 | 2.88% | 31.70% | $3204 | 9.80% | 9.42% | NA | 1.04% | 10.76% | 1.10% | 11.32% |
|  HIFS | Hingham Institution for Savings | MA | $278.97 | $611.86 | $16.50 | $220.06 | 12.23x | 126.77% | 13.45% | 126.77% | 16.91x | $2.52 | 0.90% | 14.12% | $4548 | 10.61% | 10.61% | NA | 1.12% | 10.78% | 0.81% | 7.80% |
|  HFBL | Home Federal Bancorp, Inc. of Louisiana | LA | $18.74 | $55.55 | $1.99 | $18.96 | 9.76x | 98.86% | 8.94% | 105.63% | 9.44x | $0.54 | 2.88% | 28.13% | $642 | 9.04% | 8.51% | NA | 0.96% | 10.48% | 0.99% | 10.84% |
|  HYNE | Hoyne Bancorp, Inc. | IL | $15.72 | $127.28 | $0.24 | $19.93 | NM | 78.88% | 26.01% | 78.95% | NM | NA | NA | NA | $489 | 32.97% | 32.95% | 0.24% | 0.05% | 0.25% | 0.39% | 1.96% |
|  KRNY | Kearny Financial Corp. | NJ | $7.97 | $501.18 | $0.56 | $11.79 | 13.98x | 67.62% | 6.78% | 80.29% | 14.28x | $0.44 | 5.52% | 77.19% | $7608 | 10.03% | NA | 0.69% | 0.47% | 4.78% | 0.46% | 4.67% |
|  LSBK | Lake Shore Bancorp, Inc. | NY | $15.89 | $124.91 | NA | $18.11 | 14.57x | 87.73% | 17.30% | 87.73% | NM | $0.36 | 2.27% | 33.03% | $722 | 19.72% | 19.72% | NA | 1.13% | 6.45% | NA | NA |
|  MGYR | Magyar Bancorp, Inc. | NJ | $17.42 | $112.85 | $1.78 | $19.19 | 9.79x | 90.78% | 10.55% | 93.06% | 9.79x | $0.40 | 2.30% | 20.22% | $1068 | 11.62% | NA | NA | 1.09% | 9.41% | 1.09% | 9.41% |
|  NECB | Northeast Community Bancorp, Inc. | NY | $23.73 | $293.37 | $3.21 | $25.79 | 7.37x | 92.02% | 16.19% | 92.02% | 7.39x | $0.80 | 3.37% | 31.06% | $2025 | 17.59% | 17.59% | 0.00% | 2.18% | 12.65% | 2.17% | 12.61% |
|  NSTS | NSTS Bancorp, Inc. | IL | $12.77 | $62.77 | 0.08) | $15.20 | NM | 84.01% | 25.20% | 84.01% | NM | NA | NA | NA | $267 | 29.99% | 29.99% | 0.11% | -0.14% | -0.50% | -0.14% | -0.50% |
|  PROV | Provident Financial Holdings, Inc. | CA | $17.10 | $109.01 | NA | $20.02 | 18.59x | 85.43% | 8.88% | 85.43% | NM | $0.56 | 3.27% | 60.87% | $1218 | 10.40% | 10.40% | 0.08% | 0.50% | 4.71% | NA | NA |
|  PFS | Provident Financial Services, Inc. | NJ | $22.25 | $2899.44 | $2.51 | $21.97 | 9.47x | 101.28% | 11.50% | 138.78% | 8.86x | $0.96 | 4.31% | 40.85% | $25202 | 11.36% | 8.55% | 0.58% | 1.24% | 11.04% | 1.24% | 11.02% |
|  RVSB | Riverview Bancorp, Inc. | WA | $5.14 | $105.70 | $0.23 | $7.08 | NM | 72.58% | 7.22% | 89.21% | 22.61x | $0.08 | 1.56% | NA | $1464 | 9.95% | 8.25% | NA | -0.29% | -2.65% | 0.31% | 2.87% |
|  SRBK | SR Bancorp, Inc. | NJ | $18.40 | $137.75 | $0.57 | $22.63 | 31.19x | 81.32% | 13.12% | 94.55% | 32.13x | $0.20 | 1.09% | 33.90% | $1143 | 16.13% | 14.19% | NA | 0.42% | 2.40% | 0.40% | 2.30% |
|  TCBS | Texas Community Bancshares, Inc. | TX | $16.59 | $44.74 | NA | NA | NM | 89.10% | NA | 89.10% | NM | $0.20 | 1.21% | NA | $430 | 12.60% | NA | NA | 0.70% | 6.11% | NA | NA |
|  TSBK | Timberland Bancorp, Inc. | WA | $40.26 | $315.38 | NA | $34.61 | 10.30x | 116.34% | 15.41% | 123.31% | NM | $1.16 | 2.88% | 28.64% | $2046 | 13.25% | 12.59% | 0.47% | 1.55% | 11.81% | NA | NA |
|  TFIN | Triumph Financial, Inc. | TX | $65.68 | $1563.59 | $1.27 | $38.05 | NM | 172.64% | 22.89% | 309.59% | NM | NA | NA | NA | $6877 | 13.83% | 8.49% | 1.51% | 0.49% | 3.40% | 0.52% | 3.58% |
|  TRST | TrustCo Bank Corp NY | NY | $47.53 | $832.10 | $3.41 | $38.32 | 13.94x | 124.02% | 12.79% | 124.13% | 13.94x | $1.52 | 3.20% | 43.99% | $6508 | 10.31% | 10.30% | 0.35% | 0.99% | 9.17% | 0.99% | 9.17% |
|  WSBF | Waterstone Financial, Inc. | WI | $17.90 | $310.00 | $1.66 | $19.19 | 10.78x | 93.28% | 14.43% | 94.24% | 10.78x | $0.68 | 3.80% | 37.35% | $2251 | 15.47% | NA | NA | 1.32% | 8.45% | 1.32% | 8.45% |
|  WNEB | Western New England Bancorp, Inc. | MA | $13.85 | $278.22 | $0.88 | $12.26 | 15.56x | 113.00% | 10.14% | 119.47% | 15.80x | $0.28 | 2.02% | 31.46% | $2765 | 8.97% | 8.53% | 0.17% | 0.65% | 7.29% | 0.64% | 7.17% |
|  WSFS | WSFS Financial Corporation | DE | $71.21 | $3706.06 | $5.89 | $52.24 | 12.67x | 136.30% | 16.79% | 214.50% | 12.08x | $0.80 | 1.12% | 12.63% | $22107 | 12.28% | NA | 0.40% | 1.44% | 11.40% | 1.47% | 11.58% |
| **<u>MHCs</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  BSBK | Bogota Financial Corp. | NJ | $8.21 | $103.14 | $0.14 | $10.90 | NM | 75.31% | 11.73% | 75.37% | NM | NA | NA | NA | $905 | 15.57% | 15.56% | 1.47% | 0.23% | 1.50% | 0.18% | 1.22% |
|  CLBK | Columbia Financial, Inc. | NJ | $18.73 | $1950.60 | $0.58 | $11.27 | 34.05x | 166.19% | 17.72% | 186.95% | 32.10x | NA | NA | NA | $11011 | 10.66% | NA | 0.43% | 0.51% | 4.92% | 0.53% | 5.11% |
|  GCBC | Greene County Bancorp, Inc. | NY | $23.80 | $405.24 | NA | $15.72 | 10.39x | 151.44% | 12.74% | 151.44% | NM | $0.40 | 1.68% | 17.47% | $3181 | 8.41% | 8.41% | NA | 1.28% | 15.72% | NA | NA |
|  KFFB | Kentucky First Federal Bancorp | KY | $4.43 | $35.82 | $0.10 | $6.07 | NM | 72.96% | 9.55% | 72.96% | NM | $0.00 | 0.00% | NA | $375 | 13.08% | 13.08% | 0.55% | 0.22% | 1.72% | 0.22% | 1.72% |
|  PBFS | Pioneer Bancorp, Inc. | NY | $14.22 | $347.18 | NA | NA | 17.56x | 110.09% | NA | 114.44% | NM | NA | NA | NA | $2221 | 14.79% | NA | NA | 0.93% | 6.22% | NA | NA |
|  RBKB | Rhinebeck Bancorp, Inc. | NY | $16.09 | $174.89 | $0.91 | $12.43 | 17.68x | 129.44% | 13.97% | 131.65% | 17.61x | NA | NA | NA | $1285 | 10.79% | 10.63% | NA | 0.77% | 7.51% | 0.78% | 7.53% |
|  TFSL | TFS Financial Corporation | OH | $14.92 | $4160.25 | $0.33 | NA | NM | 220.25% | NA | 221.39% | NM | $1.13 | 7.57% | 342.42% | $17480 | 11.00% | 10.95% | 0.22% | 0.54% | 4.84% | 0.54% | 4.84% |
|  WSBK | Winchester Bancorp, Inc. | MA | $12.85 | $119.45 | $0.31 | $12.82 | 27.93x | 100.25% | 11.30% | 100.25% | NM | NA | NA | NA | $1057 | 11.27% | 11.27% | NA | 0.23% | 2.07% | 0.42% | 3.78% |
| **<u>Under Acquisition</u>** | **<u>Under Acquisition</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  AFBI | Affinity Bancshares, Inc. | GA | $22.43 | $136.71 | $1.43 | $21.24 | 16.37x | 105.60% | 14.78% | 122.58% | 15.73x | NA | NA | NA | $925 | 14.00% | 12.30% | NA | 0.95% | 6.98% | 0.99% | 7.26% |
|  NFBK | Northfield Bancorp, Inc. | NJ | $13.91 | $580.94 | $0.97 | $16.63 | NM | 83.63% | 10.13% | 83.63% | 14.33x | $0.52 | 3.74% | 433.33% | $5735 | 12.11% | 12.11% | NA | 0.08% | 0.67% | 0.68% | 5.43% |

---

(1) Core income, on a diluted per-share basis. Core income is net income
after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%.

(2) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and
P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is negative or above 35x.

(3) Indicated 12 month dividend, based on last quarterly dividend declared.

(4) Indicated 12 month dividend as a percent of trailing 12 month earnings.

(5) Equity and tangible equity equal common equity and tangible common equity, respectively. ROAA (return on
average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances.

(6) Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or
unusual operating characteristics.

Source: S&P Global Market Intelligence and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

------

**EXHIBIT III-3** 

**Peer Group Market Area Comparative Analysis** 

------

Exhibit III-3

Peer Group Market Area Comparative Analysis

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | | | Proj. | | | Per Capita Income | Per Capita Income | Deposit<br>Market<br>Share(1) |
| Institution | County | Population | Population | Pop. | 2021-2026% Change | 2026-2031% Change | 2026<br>Amount | % State<br>Average | Deposit<br>Market<br>Share(1) |
| Institution | County | 2021 | 2026 | 2031 | 2021-2026% Change | 2026-2031% Change | 2026<br>Amount | % State<br>Average | Deposit<br>Market<br>Share(1) |
|  ECB Bancorp, Inc. | Middlesex, MA | 1622192 | 1687619 | 1736649 | 0.8% | 0.6% | 78369 | 121.0% | 0.98% |
|  FS Bancorp, Inc. | Snohomish, WA | 841173 | 873911 | 904954 | 0.8% | 0.7% | 60790 | 103.2% | 4.95% |
|  Hingham Institution for Savings | Plymouth, MA | 525369 | 545096 | 555432 | 0.7% | 0.4% | 61853 | 95.5% | 9.93% |
|  Kearny Financial Corp. | Essex, NJ | 801147 | 894352 | 924581 | 2.2% | 0.7% | 55052 | 92.6% | 0.61% |
|  Northeast Community Bancorp, Inc. | Westchester, NY | 967400 | 1012130 | 1027239 | 0.9% | 0.3% | 73456 | 135.2% | 0.17% |
|  Riverview Bancorp, Inc. | Clark, WA | 500699 | 535315 | 558208 | 1.3% | 0.8% | 52464 | 89.1% | 9.46% |
|  Timberland Bancorp, Inc. | Grays Harbor, WA | 75963 | 77752 | 78475 | 0.5% | 0.2% | 36995 | 62.8% | 34.60% |
|  TrustCo Bank Corp NY | Schenectady, NY | 155424 | 163858 | 168818 | 1.1% | 0.6% | 47617 | 87.6% | 34.06% |
|  Waterstone Financial, Inc. | Milwaukee, WI | 942546 | 921307 | 912099 | -0.5% | -0.2% | 43116 | 91.3% | 1.79% |
|  Western New England Bancorp, Inc. | Hampden, MA | 465407 | 463518 | 462777 | -0.1% | 0.0% | 42093 | 65.0% | 13.54% |
|  | **Averages:** | **689732** | **717486** | **732923** | **0.8%** | **0.4%** | **55181** | **94.3%** | **11.01%** |
|  | **Medians:** | **663258** | **709504** | **731581** | **0.8%** | **0.5%** | **53758** | **91.9%** | **7.21%** |
|  **Narragansett Financial Corporation** | **Bristol, MA** | **567897** | **590800** | **599213** | **0.8%** | **0.3%** | **50057** | **77.3%** | **12.85%** |

---

(1) Total institution deposits in headquarters county as percent of total county deposits as of June 30, 2025.

Sources: S&P Global Market Intelligence and FDIC.

------

**EXHIBIT IV-1** 

**Stock Prices:** 

**As of May 4, 2026** 

------

Exhibit IV-1A

Weekly Thrift Market Line - Part One

Prices As of May 4, 2026

---

| | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | Market Capitalization | Market Capitalization | Market Capitalization | Price Change Data | Price Change Data | Price Change Data | Price Change Data | Price Change Data | Price Change Data | Current Per Share Financials | Current Per Share Financials | Current Per Share Financials | Current Per Share Financials | Current Per Share Financials | |
|  |  |  | | | | 52 Week (1) | 52 Week (1) | | % Change From | % Change From | % Change From | | | | | | Assets |
| | |  | Price/<br>Share(1) | Shares<br>Outstanding | Market<br>Capitalization | High | Low |<br>Last Wk | Last Wk | 52 Wks (2) | MRY (2) | LTM<br>EPS (3) | LTM Core<br>EPS (3) | BV/<br>Share | TBV/<br>Share (4) | Assets/<br>Share | |
|  |  |  | ($) | (000) | ($Mil) | ($) | ($) | ($) | (%) | (%) | (%) | ($) | ($) | ($) | ($) | ($) | |
|  **<u>Companies</u>** | **<u>Companies</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  AVBC | Avidia Bancorp, Inc. | NE | 20.34 | 18550 | 377.3 | 21.43 | 14.00 | 20.92 | -2.77 | 38.93 | 21.00 | NA | NA | 19.09 | 18.49 | 151.32 | 2807058 |
|  AX | Axos Financial, Inc. | WE | 87.28 | 56885 | 4964.9 | 101.92 | 65.80 | 98.51 | -11.40 | 29.55 | 1.30 | 8.23 | 8.14 | 53.89 | 50.18 | 514.18 | 29248986 |
|  BYFC | Broadway Financial Corporation | WE | 8.52 | 9304 | 79.3 | 8.85 | 5.51 | 7.85 | 8.54 | 31.08 | 15.14 | -2.73 | -0.51 | 12.14 | 11.99 | 153.32 | 1426466 |
|  BVFL | BV Financial, Inc. | MA | 19.44 | 8084 | 157.2 | 20.54 | 14.05 | 19.88 | -2.21 | 21.88 | 7.17 | 1.39 | 1.62 | 20.99 | 19.27 | 112.67 | 910857 |
|  CFFN | Capitol Federal Financial, Inc. | MW | 7.68 | 124169 | 953.6 | 7.97 | 5.51 | 7.88 | -2.54 | 32.64 | 12.78 | NA | 0.60 | 8.03 | NA | 79.16 | 9829080 |
|  CLST | Catalyst Bancorp, Inc. | SW | 15.91 | 4058 | 64.5 | 18.16 | 11.51 | 15.95 | -0.28 | 37.11 | 0.98 | 0.55 | 0.57 | 20.26 | 20.26 | 71.09 | 288508 |
|  CPBI | Central Plains Bancshares, Inc. | MW | 17.49 | 3914 | 68.4 | 17.89 | 14.52 | 17.30 | 1.07 | 16.88 | 3.34 | 1.03 | 1.03 | 20.87 | NA | 136.86 | 535738 |
|  ECBK | ECB Bancorp, Inc. | NE | 18.07 | 8773 | 158.5 | 20.05 | 14.82 | 18.12 | -0.28 | 8.20 | 3.91 | 1.15 | 1.15 | 20.05 | 20.05 | 188.11 | 1650295 |
|  FBLA | FB Bancorp, Inc. | SW | 13.87 | 17159 | 238 | 14.25 | 10.71 | 14.05 | -1.28 | 20.82 | 7.94 | 0.07 | 0.22 | 17.38 | 17.38 | 73.16 | 1255406 |
|  FDSB | Fifth District Bancorp, Inc. | SW | 15.12 | 5289 | 80 | 15.64 | 11.70 | 15.10 | 0.13 | 20.96 | 0.80 | 0.80 | 0.26 | 24.26 | 24.26 | 101.03 | 534394 |
|  FNWB | First Northwest Bancorp | WE | 9.92 | 9337 | 87.9 | 10.98 | 6.05 | 9.84 | 0.81 | -2.75 | 5.76 | 0.55 | 0.92 | 16.52 | 16.41 | 228.49 | 2133443 |
|  FSEA | First Seacoast Bancorp, Inc. | NE | 11.74 | 4356 | 51.1 | 15.00 | 10.13 | 12.25 | -4.16 | 4.45 | -11.06 | -0.23 | -0.22 | 13.54 | 13.50 | 137.57 | 599295 |
|  FLG | Flagstar Bank, National Association | MA | 13.86 | 416784 | 5776.6 | 14.92 | 10.38 | 14.00 | -1.00 | 15.02 | 10.09 | -0.22 | 0.17 | 18.28 | 17.42 | 209.05 | 87129000 |
|  FSBW | FS Bancorp, Inc. | WE | 40.30 | 7399 | 298.2 | 44.22 | 36.66 | 41.14 | -2.04 | 0.47 | -2.11 | 4.29 | 4.51 | 41.84 | 40.06 | 432.99 | 3203515 |
|  HIFS | Hingham Institution for Savings | NE | 278.97 | 2193 | 611.9 | 338.00 | 220.76 | 291.55 | -4.31 | 9.84 | -1.76 | 22.81 | 16.50 | 220.06 | 220.06 | 2073.51 | 4547809 |
|  HFBL | Home Federal Bancorp, Inc. of Louisiana | SW | 18.74 | 2964 | 55.6 | 20.00 | 12.32 | 19.10 | -1.88 | 44.15 | 4.11 | 1.92 | 1.99 | 18.96 | 17.74 | 216.46 | 641649 |
|  HYNE | Hoyne Bancorp, Inc. | MW | 15.72 | 8097 | 127.3 | 16.14 | 13.35 | 15.70 | 0.13 | 12.29 | 8.49 | 0.03 | 0.24 | 19.93 | 19.91 | 60.44 | 489377 |
|  KRNY | Kearny Financial Corp. | MA | 7.97 | 62883 | 501.2 | 8.50 | 5.76 | 8.14 | -2.09 | 22.99 | 7.56 | 0.57 | 0.56 | 11.79 | NA | 120.98 | 7607656 |
|  LSBK | Lake Shore Bancorp, Inc. | MA | 15.89 | 7863 | 124.9 | 16.28 | 10.91 | 15.95 | -0.41 | 44.84 | 8.36 | 1.09 | NA | 18.11 | 18.11 | 91.82 | 722011 |
|  MGYR | Magyar Bancorp, Inc. | MA | 17.42 | 6478 | 112.8 | 20.00 | 14.10 | 17.45 | -0.17 | 21.39 | 0.81 | 1.78 | 1.78 | 19.19 | NA | 164.93 | 1068398 |
|  NECB | Northeast Community Bancorp, Inc. | MA | 23.73 | 13652 | 293.4 | 25.65 | 19.27 | 24.35 | -2.55 | 1.41 | 4.95 | 3.22 | 3.21 | 25.79 | 25.79 | 148.34 | 2025127 |
|  NSTS | NSTS Bancorp, Inc. | MW | 12.77 | 4915 | 62.8 | 13.06 | 10.72 | 12.60 | 1.35 | 10.85 | -1.39 | -0.08 | -0.08 | 15.20 | 15.20 | 54.25 | 266648 |
|  PROV | Provident Financial Holdings, Inc. | WE | 17.10 | 6375 | 109 | 17.42 | 14.85 | 17.01 | 0.53 | 11.47 | 7.48 | 0.92 | NA | 20.02 | 20.02 | 191.00 | 1217624 |
|  PFS | Provident Financial Services, Inc. | MA | 22.25 | 130312 | 2899.4 | 23.98 | 15.92 | 22.81 | -2.46 | 30.19 | 12.66 | 2.35 | 2.51 | 21.97 | 16.03 | 193.40 | 25201690 |
|  RVSB | Riverview Bancorp, Inc. | WE | 5.14 | 20565 | 105.7 | 6.59 | 4.74 | 5.50 | -6.55 | -19.44 | 2.39 | -0.21 | 0.23 | 7.08 | 5.76 | 71.18 | 1463809 |
|  SRBK | SR Bancorp, Inc. | MA | 18.40 | 7486 | 137.7 | 19.61 | 12.30 | 18.77 | -1.97 | 41.10 | 16.90 | 0.59 | 0.57 | 22.63 | 19.46 | 152.74 | 1143450 |
|  TCBS | Texas Community Bancshares, Inc. | SW | 16.59 | 2697 | 44.7 | 20.00 | 15.10 | 17.00 | -2.41 | 8.61 | -7.68 | NA | NA | NA | NA | 159.60 | 430446 |
|  TSBK | Timberland Bancorp, Inc. | WE | 40.26 | 7834 | 315.4 | 43.55 | 29.30 | 40.94 | -1.66 | 29.08 | 12.46 | 3.91 | NA | 34.61 | 32.65 | 261.23 | 2046386 |
|  TFIN | Triumph Financial, Inc. | SW | 65.68 | 23806 | 1563.6 | 77.84 | 46.43 | 68.40 | -3.98 | 20.51 | 4.87 | 1.19 | 1.27 | 38.05 | 21.21 | 288.86 | 6876715 |
|  TRST | TrustCo Bank Corp NY | MA | 47.53 | 17507 | 832.1 | 48.45 | 30.17 | 46.99 | 1.15 | 50.55 | 15.00 | 3.41 | 3.41 | 38.32 | 38.29 | 371.73 | 6507879 |
|  WSBF | Waterstone Financial, Inc. | MW | 17.90 | 17319 | 310 | 18.88 | 12.09 | 17.78 | 0.67 | 44.82 | 8.16 | 1.66 | 1.66 | 19.19 | NA | 129.99 | 2251218 |
|  WNEB | Western New England Bancorp, Inc. | NE | 13.85 | 20088 | 278.2 | 14.52 | 8.53 | 13.97 | -0.86 | 44.72 | 9.75 | 0.89 | 0.88 | 12.26 | 11.59 | 137.62 | 2764537 |
|  WSFS | WSFS Financial Corporation | MA | 71.21 | 52044 | 3706.1 | 73.06 | 49.92 | 71.64 | -0.60 | 33.60 | 28.91 | 5.62 | 5.89 | 52.24 | NA | 424.77 | 22106915 |
|  **<u>MHCs</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  BSBK | Bogota Financial Corp. | MA | 8.21 | 12563 | 103.1 | 9.50 | 6.82 | 8.45 | -2.84 | 16.95 | -2.84 | 0.17 | 0.14 | 10.90 | 10.89 | 72.03 | 904948 |
|  CLBK | Columbia Financial, Inc. | MA | 18.73 | 104143 | 1950.6 | 19.74 | 13.66 | 18.52 | 1.13 | 25.20 | 20.53 | 0.55 | 0.58 | 11.27 | NA | 105.72 | 11010507 |
|  GCBC | Greene County Bancorp, Inc. | MA | 23.80 | 17027 | 405.2 | 26.04 | 21.16 | 24.19 | -1.61 | 4.52 | 7.06 | 2.29 | NA | 15.72 | 15.72 | 186.83 | 3181155 |
|  KFFB | Kentucky First Federal Bancorp | MW | 4.43 | 8087 | 35.8 | 4.98 | 1.96 | 4.31 | 2.78 | 69.08 | -4.73 | 0.10 | 0.10 | 6.07 | 6.07 | 46.41 | 375278 |
|  PBFS | Pioneer Bancorp, Inc. | MA | 14.22 | 24415 | 347.2 | 15.18 | 11.09 | 14.27 | -0.35 | 20.92 | 5.49 | 0.81 | NA | NA | NA | 90.97 | 2221002 |
|  RBKB | Rhinebeck Bancorp, Inc. | MA | 16.09 | 10869 | 174.9 | 17.99 | 9.41 | 16.05 | 0.25 | 40.89 | 33.86 | 0.91 | 0.91 | 12.43 | 12.22 | 118.21 | 1284867 |
|  TFSL | TFS Financial Corporation | MW | 14.92 | 278837 | 4160.3 | 15.58 | 12.54 | 14.96 | -0.27 | 10.52 | 11.51 | 0.33 | 0.33 | NA | NA | 62.69 | 17479670 |
|  WSBK | Winchester Bancorp, Inc. | NE | 12.85 | 9295 | 119.4 | 13.39 | 8.76 | 12.89 | -0.31 | 38.17 | 22.97 | 0.46 | 0.31 | 12.82 | 12.82 | 113.72 | 1057104 |
|  **<u>Under Acquisition</u>** | **<u>Under Acquisition</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  AFBI | Affinity Bancshares, Inc. | SE | 22.43 | 6095 | 136.7 | 22.50 | 17.75 | 22.43 | 0.00 | 23.24 | 9.57 | 1.37 | 1.43 | 21.24 | 18.30 | 151.71 | 924677 |
|  NFBK | Northfield Bancorp, Inc. | MA | 13.91 | 41764 | 580.9 | 14.20 | 9.91 | 13.94 | -0.22 | 19.50 | 21.70 | 0.12 | 0.97 | 16.63 | 16.63 | 137.32 | 5735202 |

---

(1) Average of High/Low or Bid/Ask price per share.

(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.

(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.

(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).

(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common
earnings and average common equity and total assets balances.

(6) Annualized based on last regular quarterly cash dividend announcement.

(7) Indicated dividend as a percent of trailing 12 month earnings.

(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.

(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.

Source: S&P Global Market Intelligence and RP<sup>®</sup> Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

------

Exhibit IV-1B

Weekly Thrift Market Line - Part Two

Prices As of May 4, 2026

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | Key Financial Ratios | Key Financial Ratios | Key Financial Ratios | Key Financial Ratios | Key Financial Ratios | Key Financial Ratios | Asset Quality Ratios | Asset Quality Ratios | Pricing Ratios | Pricing Ratios | Pricing Ratios | Pricing Ratios | Pricing Ratios | Dividend Data (6) | Dividend Data (6) | Dividend Data (6) |
|  |  |  | | | Reported Earnings | Reported Earnings | Core Earnings | Core Earnings | | | | | | | | | | |
| | |  | Equity/<br>Assets(1) | Tang Equity/<br>Assets(1) | ROA(5) | ROE(5) | ROA(5) | ROE(5) | NPAs/<br>Assets | Rsvs/<br>NPLs | Price/<br>Earnings | Price/<br>Book | Price/<br>Assets | Price/<br>Tang Book | Price/<br>Core Earnings | Div/<br>Share | Dividend<br>Yield | Payout<br>Ratio (7) |
|  |  |  | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) |
|  **<u>Companies</u>** | **<u>Companies</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  AVBC | Avidia Bancorp, Inc. | NE | 13.65 | 13.28 | 0.51 | 4.52 | 0.88 | 7.69 | 0.49 | 167.02 | NA | 106.57 | 14.55 | 110.00 | NA | 0.20 | 0.98 | NA |
|  AX | Axos Financial, Inc. | WE | 10.48 | 9.83 | 1.80 | 16.62 | 1.77 | 16.29 | 0.62 | 192.15 | 10.61 | 161.97 | 16.97 | 173.95 | 10.72 | NA | NA | NM |
|  BYFC | Broadway Financial Corporation | WE | 18.44 | 18.36 | -1.56 | -7.50 | -0.10 | -0.49 | NA | NA | NM | 70.19 | 6.21 | 71.06 | NM | 0.00 | 0.00 | NM |
|  BVFL | BV Financial, Inc. | MA | 20.16 | 18.82 | 1.37 | 6.59 | 1.58 | 7.60 | NA | NA | 13.99 | 92.64 | 18.68 | 100.89 | 12.03 | 0.13 | 0.00 | NM |
|  CFFN | Capitol Federal Financial, Inc. | MW | 10.44 | NA | 0.80 | 7.42 | 0.80 | NA | 0.56 | NA | 12.80 | 95.61 | NA | 96.64 | 12.76 | 0.34 | 4.43 | 63.33 |
|  CLST | Catalyst Bancorp, Inc. | SW | 28.49 | 28.49 | 0.73 | 2.49 | 0.75 | 2.58 | 0.85 | 94.37 | 28.92 | 78.52 | 22.37 | 78.52 | 27.90 | NA | NA | NM |
|  CPBI | Central Plains Bancshares, Inc. | MW | 16.38 | NA | 0.77 | 5.32 | 0.77 | 5.32 | NA | NM | 16.98 | 83.79 | 13.72 | NA | 16.98 | NA | NA | NM |
|  ECBK | ECB Bancorp, Inc. | NE | 10.66 | 10.66 | 0.62 | 5.61 | 0.62 | 5.61 | NA | NA | 15.71 | 90.11 | 9.61 | 90.11 | 15.71 | NA | NA | NM |
|  FBLA | FB Bancorp, Inc. | SW | 25.05 | 25.05 | 0.10 | 0.38 | 0.31 | 1.17 | 1.45 | 37.31 | 198.14 | 79.79 | 19.99 | 79.79 | 64.00 | NA | NA | NM |
|  FDSB | Fifth District Bancorp, Inc. | SW | 24.28 | 24.28 | 0.76 | 3.17 | 0.25 | 1.05 | 0.11 | 312.32 | 18.90 | 62.33 | 15.13 | 62.33 | 57.36 | NA | NA | NM |
|  FNWB | First Northwest Bancorp | WE | 7.36 | 7.31 | 0.23 | 3.15 | 0.40 | 5.46 | 1.08 | 77.53 | 18.04 | 60.03 | 4.42 | 60.44 | 10.80 | 0.00 | 0.00 | NM |
|  FSEA | First Seacoast Bancorp, Inc. | NE | 10.60 | 10.58 | -0.14 | -1.37 | -0.14 | -1.33 | 0.08 | 716.95 | NM | 86.72 | 9.20 | 86.97 | NM | NA | NA | NM |
|  FLG | Flagstar Bank, National Association | MA | 9.32 | 8.95 | -0.06 | -0.69 | 0.11 | 1.29 | 3.08 | 35.66 | NM | 75.84 | 6.67 | 79.56 | 83.39 | 0.04 | 0.29 | NM |
|  FSBW | FS Bancorp, Inc. | WE | 9.80 | 9.42 | 1.04 | 10.76 | 1.10 | 11.32 | NA | NA | 9.39 | 96.32 | 9.44 | 100.61 | 8.93 | 1.16 | 2.88 | 31.70 |
|  HIFS | Hingham Institution for Savings | NE | 10.61 | 10.61 | 1.12 | 10.78 | 0.81 | 7.80 | NA | NA | 12.23 | 126.77 | 13.45 | 126.77 | 16.91 | 2.52 | 0.90 | 14.12 |
|  HFBL | Home Federal Bancorp, Inc. of Louisiana | SW | 9.04 | 8.51 | 0.96 | 10.48 | 0.99 | 10.84 | NA | NA | 9.76 | 98.86 | 8.94 | 105.63 | 9.44 | 0.54 | 2.88 | 28.13 |
|  HYNE | Hoyne Bancorp, Inc. | MW | 32.97 | 32.95 | 0.05 | 0.25 | 0.39 | 1.96 | 0.24 | 604.05 | NM | 78.88 | 26.01 | 78.95 | 65.82 | NA | NA | NM |
|  KRNY | Kearny Financial Corp. | MA | 10.03 | NA | 0.47 | 4.78 | 0.46 | 4.67 | 0.69 | 85.38 | 13.98 | 67.62 | 6.78 | 80.29 | 14.28 | 0.44 | 5.52 | 77.19 |
|  LSBK | Lake Shore Bancorp, Inc. | MA | 19.72 | 19.72 | 1.13 | 6.45 | NA | NA | NA | NA | 14.57 | 87.73 | 17.30 | 87.73 | NA | 0.36 | 2.27 | 33.03 |
|  MGYR | Magyar Bancorp, Inc. | MA | 11.62 | NA | 1.09 | 9.41 | 1.09 | 9.41 | NA | NA | 9.79 | 90.78 | 10.55 | 93.06 | 9.79 | 0.40 | 2.30 | 20.22 |
|  NECB | Northeast Community Bancorp, Inc. | MA | 17.59 | 17.59 | 2.18 | 12.65 | 2.17 | 12.61 | 0.00 | NM | 7.37 | 92.02 | 16.19 | 92.02 | 7.39 | 0.80 | 3.37 | 31.06 |
|  NSTS | NSTS Bancorp, Inc. | MW | 29.99 | 29.99 | -0.14 | -0.50 | -0.14 | -0.50 | 0.11 | 397.18 | NM | 84.01 | 25.20 | 84.01 | NM | NA | NA | NM |
|  PROV | Provident Financial Holdings, Inc. | WE | 10.40 | 10.40 | 0.50 | 4.71 | NA | NA | 0.08 | 606.75 | 18.59 | 85.43 | 8.88 | 85.43 | NA | 0.56 | 3.27 | 60.87 |
|  PFS | Provident Financial Services, Inc. | MA | 11.36 | 8.55 | 1.24 | 11.04 | 1.24 | 11.02 | 0.58 | 123.84 | 9.47 | 101.28 | 11.50 | 138.78 | 8.86 | 0.96 | 4.31 | 40.85 |
|  RVSB | Riverview Bancorp, Inc. | WE | 9.95 | 8.25 | -0.29 | -2.65 | 0.31 | 2.87 | NA | NA | NM | 72.58 | 7.22 | 89.21 | 22.61 | 0.08 | 1.56 | NM |
|  SRBK | SR Bancorp, Inc. | MA | 16.13 | 14.19 | 0.42 | 2.40 | 0.40 | 2.30 | NA | NM | 31.19 | 81.32 | 13.12 | 94.55 | 32.13 | 0.20 | 1.09 | 33.90 |
|  TCBS | Texas Community Bancshares, Inc. | SW | 12.60 | NA | 0.70 | 6.11 | NA | NA | NA | NA | NA | 89.10 | NA | 89.10 | NA | 0.20 | 1.21 | NA |
|  TSBK | Timberland Bancorp, Inc. | WE | 13.25 | 12.59 | 1.55 | 11.81 | NA | NA | 0.47 | 198.28 | 10.30 | 116.34 | 15.41 | 123.31 | NA | 1.16 | 2.88 | 28.64 |
|  TFIN | Triumph Financial, Inc. | SW | 13.83 | 8.49 | 0.49 | 3.40 | 0.52 | 3.58 | 1.51 | 37.60 | 55.19 | 172.64 | 22.89 | 309.59 | 51.70 | NA | NA | NM |
|  TRST | TrustCo Bank Corp NY | MA | 10.31 | 10.30 | 0.99 | 9.17 | 0.99 | 9.17 | 0.35 | 246.89 | 13.94 | 124.02 | 12.79 | 124.13 | 13.94 | 1.52 | 3.20 | 43.99 |
|  WSBF | Waterstone Financial, Inc. | MW | 15.47 | NA | 1.32 | 8.45 | 1.32 | 8.45 | NA | NA | 10.78 | 93.28 | 14.43 | 94.24 | 10.78 | 0.68 | 3.80 | 37.35 |
|  WNEB | Western New England Bancorp, Inc. | NE | 8.97 | 8.53 | 0.65 | 7.29 | 0.64 | 7.17 | 0.17 | 436.89 | 15.56 | 113.00 | 10.14 | 119.47 | 15.80 | 0.28 | 2.02 | 31.46 |
|  WSFS | WSFS Financial Corporation | MA | 12.28 | NA | 1.44 | 11.40 | 1.47 | 11.58 | 0.40 | 239.64 | 12.67 | 136.30 | 16.79 | 214.50 | 12.08 | 0.80 | 1.12 | 12.63 |
|  **<u>MHCs</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  BSBK | Bogota Financial Corp. | MA | 15.57 | 15.56 | 0.23 | 1.50 | 0.18 | 1.22 | 1.47 | 19.01 | 48.29 | 75.31 | 11.73 | 75.37 | 59.65 | NA | NA | NM |
|  CLBK | Columbia Financial, Inc. | MA | 10.66 | NA | 0.51 | 4.92 | 0.53 | 5.11 | 0.43 | 166.19 | 34.05 | 166.19 | 17.72 | 186.95 | 32.10 | NA | NA | NM |
|  GCBC | Greene County Bancorp, Inc. | MA | 8.41 | 8.41 | 1.28 | 15.72 | NA | NA | NA | NA | 10.39 | 151.44 | 12.74 | 151.44 | NA | 0.40 | 1.68 | 17.47 |
|  KFFB | Kentucky First Federal Bancorp | MW | 13.08 | 13.08 | 0.22 | 1.72 | 0.22 | 1.72 | 0.55 | 106.35 | 44.30 | 72.96 | 9.55 | 72.96 | 44.30 | 0.00 | 0.00 | NM |
|  PBFS | Pioneer Bancorp, Inc. | MA | 14.79 | NA | 0.93 | 6.22 | NA | NA | NA | NA | 17.56 | 110.09 | NA | 114.44 | NA | NA | NA | NM |
|  RBKB | Rhinebeck Bancorp, Inc. | MA | 10.79 | 10.63 | 0.77 | 7.51 | 0.78 | 7.53 | NA | NA | 17.68 | 129.44 | 13.97 | 131.65 | 17.61 | NA | NA | NM |
|  TFSL | TFS Financial Corporation | MW | 11.00 | 10.95 | 0.54 | 4.84 | 0.54 | 4.84 | 0.22 | 201.89 | 45.21 | 220.25 | NA | 221.39 | 45.21 | 1.13 | 7.57 | 342.42 |
|  WSBK | Winchester Bancorp, Inc. | NE | 11.27 | 11.27 | 0.23 | 2.07 | 0.42 | 3.78 | NA | NA | 27.93 | 100.25 | 11.30 | 100.25 | 40.95 | NA | NA | NM |
|  **<u>Under Acquisition</u>** | **<u>Under Acquisition</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  AFBI | Affinity Bancshares, Inc. | SE | 14.00 | 12.30 | 0.95 | 6.98 | 0.99 | 7.26 | NA | NA | 16.37 | 105.60 | 14.78 | 122.58 | 15.73 | NA | NA | NM |
|  NFBK | Northfield Bancorp, Inc. | MA | 12.11 | 12.11 | 0.08 | 0.67 | 0.68 | 5.43 | NA | 176.68 | 115.92 | 83.63 | 10.13 | 83.63 | 14.33 | 0.52 | 3.74 | 433.33 |

---

(1) Average of High/Low or Bid/Ask price per share.

(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.

(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.

(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).

(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common
earnings and average common equity and total assets balances.

(6) Annualized based on last regular quarterly cash dividend announcement.

(7) Indicated dividend as a percent of trailing 12 month earnings.

(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.

(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.

Source: S&P Global Market Intelligence and RP<sup>®</sup> Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.

Copyright (c) 2026 by RP<sup>®</sup> Financial, LC.

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**EXHIBIT IV-2** 

**Historical Stock Price Indices** 

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Exhibit IV-2

Historical Stock Price Indices(1)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Year/Qtr. Ended | Year/Qtr. Ended | DJIA | S&P 500 | NASDAQ<br>Composite | S&P U.S.<br>BMI Banks<br>Index | KBW NASDAQ<br>Regional Bank<br>Index |
|  2015: | Quarter 1 | 17776.1 | 2067.9 | 4900.9 | 102.0 | 79.9 |
|  | Quarter 2 | 17619.5 | 2063.1 | 4986.9 | 109.1 | 87.5 |
|  | Quarter 3 | 16284.7 | 1920.0 | 4620.2 | 100.1 | 81.2 |
|  | Quarter 4 | 17425.0 | 2043.9 | 5007.4 | 105.4 | 82.0 |
|  2016: | Quarter 1 | 17685.1 | 2059.7 | 4869.9 | 92.8 | 77.6 |
|  | Quarter 2 | 17930.0 | 2098.9 | 4842.7 | 93.9 | 80.0 |
|  | Quarter 3 | 18308.2 | 2168.3 | 5312.0 | 100.7 | 86.5 |
|  | Quarter 4 | 19762.6 | 2238.8 | 5383.1 | 130.4 | 111.2 |
|  2017: | Quarter 1 | 20663.2 | 2362.7 | 5911.7 | 131.2 | 106.7 |
|  | Quarter 2 | 21349.6 | 2423.4 | 6140.4 | 134.9 | 106.6 |
|  | Quarter 3 | 22405.1 | 2519.4 | 6496.0 | 140.4 | 109.0 |
|  | Quarter 4 | 24719.2 | 2673 6 | 6903.4 | 151.0 | 110.9 |
|  2018: | Quarter 1 | 24103.1 | 2640.9 | 7063.5 | 148.9 | 111.9 |
|  | Quarter 2 | 24271.4 | 2718.4 | 7510.3 | 146.2 | 113.9 |
|  | Quarter 3 | 26458.3 | 2914.0 | 8046.4 | 149.1 | 110.7 |
|  | Quarter 4 | 23327.5 | 2506.9 | 6635.3 | 123.4 | 89.4 |
|  2019: | Quarter 1 | 25928.7 | 2834.4 | 7729.3 | 133.9 | 97.1 |
|  | Quarter 2 | 26600.0 | 2941.8 | 8006.2 | 142.2 | 100.2 |
|  | Quarter 3 | 26916.8 | 2976.7 | 7999.3 | 145.3 | 98.8 |
|  | Quarter 4 | 28538.4 | 3230.8 | 8972.6 | 164.6 | 107.6 |
|  2020: | Quarter 1 | 21917.2 | 2584.6 | 7700.1 | 97.1 | 63.6 |
|  | Quarter 2 | 25812.9 | 3100.3 | 10058.8 | 106.3 | 72.2 |
|  | Quarter 3 | 27781.7 | 3363.0 | 11167.5 | 103.1 | 64.1 |
|  | Quarter 4 | 30606.5 | 3756.1 | 12888.3 | 138.9 | 94.6 |
|  2021: | Quarter 1 | 32981.6 | 3972.9 | 13246.9 | 171.3 | 121.9 |
|  | Quarter 2 | 34502.5 | 4297.5 | 14504.0 | 176.0 | 119.4 |
|  | Quarter 3 | 33843.9 | 4307.5 | 14448.6 | 182.7 | 122.5 |
|  | Quarter 4 | 36338.3 | 4766.2 | 15645.0 | 184.0 | 126.0 |
|  2022: | Quarter 1 | 34678.4 | 4530.4 | 14220.5 | 171.0 | 122.5 |
|  | Quarter 2 | 30775.4 | 3785.4 | 11028.7 | 141.2 | 107.1 |
|  | Quarter 3 | 28725.5 | 3585.6 | 10575.6 | 136.7 | 110.5 |
|  | Quarter 4 | 33147.3 | 3839.5 | 10466.5 | 148.4 | 114.1 |
|  2023: | Quarter 1 | 33274.2 | 4109.3 | 12221.9 | 128.0 | 92.9 |
|  | Quarter 2 | 34407.6 | 4450.4 | 13787.9 | 130.4 | 86.7 |
|  | Quarter 3 | 33507.5 | 4288.1 | 13219.3 | 128.0 | 87.9 |
|  | Quarter 4 | 37689.5 | 4769.8 | 15011.4 | 156.2 | 109.5 |
|  2024: | Quarter 1 | 39807.4 | 5254.4 | 16379.5 | 172.2 | 102.2 |
|  | Quarter 2 | 39118.9 | 5460.5 | 17732.6 | 172.5 | 98.6 |
|  | Quarter 3 | 42330.2 | 5762.5 | 18189.2 | 182.8 | 113.2 |
|  | Quarter 4 | 42544.2 | 5881.6 | 19310.8 | 203.1 | 120.0 |
|  2025: | Quarter 1 | 42001.8 | 5611.9 | 17299.3 | 198.4 | 112.6 |
|  | Quarter 2 | 44094.8 | 6205.0 | 20369.7 | 222.9 | 116.5 |
|  | Quarter 3 | 46397.9 | 6688.5 | 22660.0 | 241.0 | 121.7 |
|  | Quarter 4 | 48063.3 | 6845.5 | 23242.0 | 254.1 | 124.0 |
|  2026: | Quarter 1 | 46341.5 | 6528.5 | 21590.6 | 237.0 | 126.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of May 4, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of May 4, 2026 | 48941.9 | 7200.8 | 25067.8 | 249.7 | 133.7 |

---

(1) End of period data.

Sources: S&P Global Market Intelligence and The Wall Street Journal.

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**EXHIBIT IV-3** 

**Stock Indices as of May 4, 2026** 

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![LOGO](g122170dsp129.jpg)

**Index Summary (Current Data)** 

Industry Banking

Geography All

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***Index Name*** | ***Current Value*** | ***As Of*** | ***Day's Change*** | ***Day's Change<br>(%)*** |
|  **Banking Indexes** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P United States BMI Banks | 249.68 | 5/4/2026 | (4.12) | (1.62) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBW Nasdaq Bank Index | 166.06 | 5/4/2026 | (2.94) | (1.74) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KBW Nasdaq Regional Bank Index | 133.70 | 5/4/2026 | (1.37) | (1.02) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P 500 Bank | 593.10 | 5/4/2026 | (10.37) | (1.72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NASDAQ Bank | 4852.21 | 5/4/2026 | (71.82) | (1.46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P 500 Commercial Banks | 847.34 | 5/4/2026 | (14.82) | (1.72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P 500 Diversified Banks | 1126.70 | 5/4/2026 | (19.20) | (1.68) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P 500 Regional Banks | 121.07 | 5/4/2026 | (2.69) | (2.17) |
|  **Market Cap Indexes** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dow Jones U.S. MicroCap Banks | 39556.19 | 5/4/2026 | (642.09) | (1.60) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P U.S. SmallCap Banks | 291.93 | 5/4/2026 | (3.90) | (1.32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P U.S. MidCap Banks | 680.94 | 5/4/2026 | (14.68) | (2.11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P U.S. LargeCap Banks | 723.33 | 5/4/2026 | (12.32) | (1.67) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P United States Between USD1 Billion and USD5 Billion Banks (Industry Group) | 840.38 | 5/4/2026 | (9.82) | (1.16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P United States Over USD5 Billion Banks | 743.64 | 5/4/2026 | (12.58) | (1.66) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P United States Between USD250 Million and USD1 Billion Banks (Industry Group) | 1872.88 | 5/4/2026 | (32.97) | (1.73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P United States Under USD250 Million Banks (Industry Group) | 1649.32 | 5/4/2026 | (25.07) | (1.50) |
|  **Geographic Indexes** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P U.S. BMI Banks - Mid-Atlantic Region | 1258.29 | 5/4/2026 | (18.60) | (1.46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P U.S. BMI Banks - Midwest Region | 807.54 | 5/4/2026 | (13.51) | (1.65) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P U.S. BMI Banks - New England Region | 765.12 | 5/4/2026 | (10.22) | (1.32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P U.S. BMI Banks - Southeast Region | 608.46 | 5/4/2026 | (11.72) | (1.89) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P U.S. BMI Banks - Southwest Region | 1525.02 | 5/4/2026 | (22.86) | (1.48) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P U.S. BMI Banks - Western Region | 1756.20 | 5/4/2026 | (33.21) | (1.86) |
|  **Broad Market Indexes** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DJIA | 48941.90 | 5/4/2026 | (557.37) | (1.13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P 500 | 7200.75 | 5/4/2026 | (29.37) | (0.41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P 400 Mid Cap | 3615.91 | 5/4/2026 | (23.93) | (0.66) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P 500 Financials | 857.47 | 5/4/2026 | (6.20) | (0.72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MSCI US IMI Financials | 3080.10 | 5/4/2026 | (22.73) | (0.73) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NASDAQ | 25067.80 | 5/4/2026 | (46.64) | (0.19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NASDAQ Finl | 7078.75 | 5/4/2026 | (5.39) | (0.08) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NYSE | 22893.46 | 5/4/2026 | (147.68) | (0.64) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell 1000 | 3918.21 | 5/4/2026 | (15.74) | (0.40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell 2000 | 2796.00 | 5/4/2026 | (16.83) | (0.60) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell 3000 | 4088.70 | 5/4/2026 | (16.81) | (0.41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&P TSX Composite | 33638.87 | 5/4/2026 | (252.31) | (0.74) |

---

Intraday data is available for certain exchanges. In all cases, the data is at least 15 minutes delayed.

\* - Intraday data is not currently available. Data is as of the previous close.

\*\* - Non-publicly traded institutions and institutions outside of your current subscription are not included in custom indexes. Data is as of the previous close.

Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products.

------

**EXHIBIT IV-4** 

**Massachusetts Bank and Thrift Acquisitions 2021 - Present** 

------

Exhibit IV-4

Massachusetts Bank and Thrift Acquisitions 2021-Present

---

| | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | |  |  | Target Financials at Announcement | Target Financials at Announcement | Target Financials at Announcement | Target Financials at Announcement | Target Financials at Announcement | Target Financials at Announcement | Target Financials at Announcement | Deal Terms and Pricing at Announcement | Deal Terms and Pricing at Announcement | Deal Terms and Pricing at Announcement | Deal Terms and Pricing at Announcement | Deal Terms and Pricing at Announcement | Deal Terms and Pricing at Announcement | Deal Terms and Pricing at Announcement |
| | |  |  | Total | | | | | NPAs/ | Rsrvs/ | Deal | Value/ | | | | | Prem/ |
| Announce | Complete |  |  | Assets | E/A | TE/A | ROAA | ROAE | Assets | NPLs | Value | Share | P/B | P/TB | P/E | P/A | Cdeps |
| Date | Date | Buyer Name | Target Name | ($000) | (%) | (%) | (%) | (%) | (%) | (%) | ($M) | ($) | (%) | (%) | (x) | (%) | (%) |
| 04/06/2026 | Pending | Cmnty Bncp the Berkshires MHC MA | Pittsfield Co-operative Bank MA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA |
| 10/31/2025 | Pending | Mutual Bancorp. MA | Bluestone Bank MA | 1580709 | 7.90 | 7.84 | 0.35 | 4.76 | 0.11 | 427.27 | NA | NA | NA | NA | NA | NA | NA |
| 03/25/2025 | 01/01/2026 | MountainOne Financial MHC MA | Mechanics Bancorp, MHC MA | 837477 | 11.54 | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA |
| 07/29/2025 | 12/16/2025 | PeoplesBancorp MHC MA | Athol Savings Bank MA | 682196 | 10.14 | 10.14 | 0.64 | 6.48 | 0.68 | 98.61 | NA | NA | NA | NA | NA | NA | NA |
| 06/05/2025 | 11/14/2025 | NB Bancorp MA | Provident Bancorp, Inc. MA | 1553956 | 15.06 | 15.06 | 0.29 | 1.95 | 2.02 | 67.35 | 211.7 | 12.242 | 93.05 | 93.05 | 47.09 | 13.62 | -2.05 |
| 05/20/2025 | 11/01/2025 | Hometown Financial Group MHC MA | CFSB Bancorp, Inc. MA | 366200 | 20.68 | 20.68 | 0.00 | -0.01 | NA | NM | 94.9 | 14.250 | 123.25 | 123.25 | NA | 25.92 | NA |
| 04/24/2025 | 10/28/2025 | Eastern Bankshares Inc. MA | HarborOne Bancorp, Inc. MA | 5700330 | 10.10 | 9.15 | 0.45 | 4.41 | 0.54 | 159.61 | 481.8 | 11.866 | 89.43 | 99.75 | 18.83 | 8.45 | NA |
| 12/16/2024 | 09/01/2025 | Berkshire Hills Bancorp Inc. MA | Brookline Bancorp, Inc. MA | 11676721 | 10.54 | 8.50 | 0.65 | 6.20 | 0.62 | 178.71 | 1141.3 | 12.684 | 92.76 | 117.67 | 15.28 | 9.77 | NA |
| 12/09/2024 | 07/01/2025 | Independent Bank Corp. MA | Enterprise Bancorp, Inc. MA | 4742809 | 7.76 | 7.65 | 0.77 | 10.88 | 0.55 | 245.33 | 564.2 | 45.062 | 152.14 | 154.52 | 15.54 | 11.89 | 5.53 |
| 10/01/2024 | 07/01/2025 | River Run Bancorp MHC MA | Rollstone Bancorp, MHC MA | 899474 | 7.91 | 7.91 | 0.05 | 0.65 | 0.04 | NM | NA | NA | NA | NA | NA | NA | NA |
| 01/02/2025 | 05/01/2025 | Reading Cooperative Bank MA | Wakefield Co-operative Bank MA | 313408 | 6.05 | 6.05 | -0.23 | -3.90 | 0.34 | 182.97 | NA | NA | NA | NA | NA | NA | NA |
| 06/20/2024 | 01/31/2025 | PeoplesBancorp MHC MA | SSB Community Bancorp MHC MA | 1599380 | 7.69 | 7.68 | 0.20 | 2.64 | 0.18 | 392.61 | NA | NA | NA | NA | NA | NA | NA |
| 02/15/2024 | 09/21/2024 | Hometown Financial Group MHC MA | North Shore Bancorp MA | 1662477 | 12.31 | 12.14 | 1.12 | 9.29 | 0.21 | 563.11 | NA | NA | NA | NA | NA | NA | NA |
| 09/19/2023 | 07/12/2024 | Eastern Bankshares Inc. MA | Cambridge Bancorp MA | 5489622 | 9.60 | 8.41 | 0.84 | 9.08 | 0.13 | 528.87 | 527.1 | 66.460 | 98.94 | 114.48 | 11.08 | 9.60 | 1.69 |
| 09/21/2023 | 04/02/2024 | Mutual Bancorp. MA | Fidelity Mutual Holding Company MA | 1478263 | 8.41 | 8.37 | 0.64 | 7.50 | 0.08 | 684.67 | NA | NA | NA | NA | NA | NA | NA |
| 03/14/2023 | 01/01/2024 | 1831 Bancorp MHC MA | South Shore Bancorp MHC MA | 2111040 | 8.17 | 7.84 | 0.98 | 11.95 | 0.27 | 347.77 | NA | NA | NA | NA | NA | NA | NA |
| 12/16/2022 | 07/01/2023 | Newburyport Five Cents Bancorp MA | Pentucket Bank Holdings, MHC MA | 946817 | 9.80 | 9.80 | 0.12 | 1.07 | 0.92 | 83.25 | NA | NA | NA | NA | NA | NA | NA |
| 07/28/2022 | 12/03/2022 | 1889 Bancorp MHC MA | Foxboro Federal Savings MA | 205082 | 12.43 | 12.43 | 0.55 | 3.86 | 0.00 | NA | NA | NA | NA | NA | NA | NA | NA |
| 03/28/2022 | 10/07/2022 | Hometown Financial Group MHC MA | Randolph Bancorp, Inc. MA | 803278 | 12.56 | 12.56 | 1.29 | 9.31 | 0.48 | 164.46 | 148.3 | 27.000 | 136.84 | 136.87 | 14.36 | 18.46 | 8.98 |
| 05/23/2022 | 10/01/2022 | Cambridge Bancorp MA | Northmark Bank MA | 442468 | 12.12 | 12.12 | 0.78 | 6.73 | 0.00 | NA | 63 | 79.540 | 117.52 | 117.52 | 17.87 | 14.24 | 3.21 |
| 02/23/2022 | 08/01/2022 | 1854 Bancorp MA | Patriot Community Bank MA | 207627 | 14.86 | 14.86 | 1.13 | 7.81 | 1.62 | 55.79 | NA | 15.750 | NA | NA | NA | NA | NA |
| 04/22/2021 | 11/12/2021 | Independent Bank Corp. MA | Meridian Bancorp, Inc. MA | 6503925 | 12.13 | 11.84 | 1.17 | 10.12 | 0.07 | NM | 1150.6 | 21.882 | 145.39 | 149.55 | 14.49 | 17.69 | 8.71 |
| 04/07/2021 | 11/12/2021 | Eastern Bankshares Inc. MA | Century Bancorp, Inc. MA | 7289324 | 5.23 | 5.20 | 0.68 | 11.97 | 0.04 | NM | 641.9 | 115.280 | 168.32 | 169.53 | 14.82 | 8.81 | NA |
| 01/04/2021 | 07/01/2021 | SVB Financial Group CA | Boston Private Financial Holdings, Inc. MA | 10048733 | 8.64 | 8.04 | 0.49 | 5.34 | 0.31 | 261.98 | 942.6 | 10.943 | 103.79 | 112.30 | 19.90 | 9.38 | 1.73 |
|  |  |  | Average: | 2919188 | 10.51 | 10.19 | 0.59 | 5.82 | 0.44 | 277.65 |  |  | 120.13 | 126.23 | 18.93 | 13.44 | 3.97 |
|  |  |  | Median: | 1553956 | 10.10 | 8.83 | 0.64 | 6.34 | 0.27 | 214.15 |  |  | 117.52 | 117.67 | 15.41 | 11.89 | 3.21 |

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Source: S&P Global Market Intelligence.

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| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SNL Table |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Buyer Name/<br>Target Name | S&P<br> Deal Key | Target<br> State | Target<br> Region | Announce<br> Date mm/<br>dd/yyyy | Completion/ <br> Termination<br> Date mm/dd/<br>yyyy | Deal<br> Status | Buyer<br> Short<br> Name | Buyer<br> State | Target<br> Name | Target<br> State | Target<br> General<br> Industry<br> Type | TA:<br> Assets<br> ($000) | TA: Equity/<br> Assets (%) | TA:<br> Tangible<br> Equity/<br>Assets (%) | TA: LTM<br> ROAA (%) | TA: LTM<br> ROAE (%) | TA: NPAs/<br> Assets (%) | TA: Loan<br> Loss<br> Reserves/<br>NPLs (%) | Deal<br> Value ($M) | Deal Value<br> per Share ($) | Consideration<br> Type | Price/ Book (%) | Price/ Tangible<br> Book (%) | Price/ LTM<br> Earnings (x) | Deal Value/<br> Assets (%) | Franchise<br> Premium/<br>Core<br> Deposits (%) |
| 125087 | 137852 | 141550 | 12544 | 12065 | 12576 | 12064 | 12506 | 12067 | 12070 | 12071 | 12548 | 12272 | 12304 | 12305 | 126388 | 45231 | 12307 | 12308 | 12118 | 12119 | 12595 | 12158 | 12162 | 12153 | 12164 | 12176 |
|  |  |  |  |  |  |  |  |  |  |  |  | MstRct | MstRct | MstRct | Most<br>Recent | MstRct | MstRct | MstRct | A | A |  | A | A | A | A | A |
|  |  |  |  |  |  |  |  |  |  |  |  | NA | NA | NA | NA | NA | NA | NA | NA | NA |  | NA | NA | NA | NA | NA |
|  Community Bancorp of the Berkshires, MHC/Pittsfield Co-operative Bank | 2204032 | MA | Northeast | 04/06/2026 | Pending | Definitive<br>Agreement | Cmnty Bncp the Berkshires MHC | MA | Pittsfield Co-operative Bank | MA | Bank | NA | NA | NA | NA | NA | NA | NA | NA | NA | Unclassified | NA | NA | NA | NA | NA |
|  Mutual Bancorp./Bluestone Bank | 2180711 | MA | Northeast | 10/31/2025 | Pending | Definitive<br>Agreement | Mutual Bancorp. | MA | Bluestone Bank | MA | Bank | 1580709 | 7.90 | 7.84 | 0.35 | 4.76 | 0.11 | 427.27 | NA | NA | Unclassified | NA | NA | NA | NA | NA |
|  MountainOne Financial, MHC/Mechanics Bancorp, MHC | 2138474 | MA | Northeast | 03/25/2025 | 01/01/2026 | Completion | MountainOne Financial MHC | MA | Mechanics Bancorp, MHC | MA | Bank | 837477 | 11.54 | NA | NA | NA | NA | NA | NA | NA | Unclassified | NA | NA | NA | NA | NA |
|  PeoplesBancorp, MHC/Athol Savings Bank | 2161360 | MA | Northeast | 7/29/2025 | 12/16/2025 | Completion | PeoplesBancorp MHC | MA | Athol Savings Bank | MA | Bank | 682196 | 10.14 | 10.14 | 0.64 | 6.48 | 0.68 | 98.61 | NA | NA | Unclassified | NA | NA | NA | NA | NA |
|  NB Bancorp, Inc./Provident Bancorp, Inc. | 2151793 | MA | Northeast | 6/5/2025 | 11/14/2025 | Completion | NB Bancorp | MA | Provident Bancorp, Inc. | MA | Savings<br>Bank/<br>Thrift/<br>Mutual | 1553956 | 15.06 | 15.06 | 0.29 | 1.95 | 2.02 | 67.35 | 211.72 | 12.24 | Cash,<br>Common<br>Stock | 93.05 | 93.05 | 47.09 | 13.62 | -2.05 |
|  Hometown Financial Group MHC/CFSB Bancorp, Inc. | 2148620 | MA | Northeast | 5/20/2025 | 11/1/2025 | Completion | Hometown Financial Group MHC | MA | CFSB Bancorp, Inc. | MA | Savings<br>Bank/<br>Thrift/<br>Mutual | 366200 | 20.68 | 20.68 | 0.00 | -0.01 | NA | NM | 94.9 | 14.25 | Cash | 123.3 | 123.3 | NA | 25.92 | NA |
|  Eastern Bankshares, Inc./HarborOne Bancorp, Inc. | 2144050 | MA | Northeast | 4/24/2025 | 10/28/2025 | Completion | Eastern Bankshares Inc. | MA | HarborOne Bancorp, Inc. | MA | Savings<br>Bank/<br>Thrift/<br>Mutual | 5700330 | 10.10 | 9.15 | 0.45 | 4.41 | 0.54 | 159.61 | 481.82 | 11.87 | Cash,<br>Common<br>Stock,<br>Options/<br>Warrants | 89.4 | 99.8 | 18.8 | 8.45 | NA |
|  Berkshire Hills Bancorp, Inc./Brookline Bancorp, Inc. | 2120658 | MA | Northeast | 12/16/2024 | 09/01/2025 | Completion | Berkshire Hills Bancorp Inc. | MA | Brookline Bancorp, Inc. | MA | Bank | 11676721 | 10.54 | 8.50 | 0.65 | 6.20 | 0.62 | 178.71 | 1141.3 | 12.684 | Common<br>Stock | 92.76 | 117.67 | 15.28 | 9.77 | NA |
|  Independent Bank Corp./Enterprise Bancorp, Inc. | 2118806 | MA | Northeast | 12/9/2024 | 7/1/2025 | Completion | Independent Bank Corp. | MA | Enterprise Bancorp, Inc. | MA | Bank | 4742809 | 7.76 | 7.65 | 0.77 | 10.88 | 0.55 | 245.33 | 564.2 | 45.06 | Cash,<br>Common<br>Stock | 152.1 | 154.5 | 15.5 | 11.89 | 5.53 |
|  River Run Bancorp, MHC/Rollstone Bancorp, MHC | 2107090 | MA | Northeast | 10/1/2024 | 7/1/2025 | Completion | River Run Bancorp MHC | MA | Rollstone Bancorp, MHC | MA | Savings<br>Bank/<br>Thrift/<br>Mutual | 899474 | 7.91 | 7.91 | 0.05 | 0.65 | 0.04 | NM | NA | NA |  | NA | NA | NA | NA | NA |
|  Reading Co-Operative Bank/Wakefield Co-operative Bank | 2124349 | MA | Northeast | 1/2/2025 | 5/1/2025 | Completion | Reading Cooperative Bank | MA | Wakefield Co-operative Bank | MA | Bank | 313408 | 6.05 | 6.05 | -0.23 | -3.90 | 0.34 | 182.97 | NA | NA |  | NA | NA | NA | NA | NA |
|  PeoplesBancorp, MHC/SSB Community Bancorp MHC | 2087733 | MA | Northeast | 6/20/2024 | 1/31/2025 | Completion | PeoplesBancorp MHC | MA | SSB Community Bancorp MHC | MA | Bank | 1599380 | 7.69 | 7.68 | 0.20 | 2.64 | 0.18 | 392.61 | NA | NA |  | NA | NA | NA | NA | NA |
|  Hometown Financial Group MHC/North Shore Bancorp | 2067858 | MA | Northeast | 02/15/2024 | 09/21/2024 | Completion | Hometown Financial Group MHC | MA | North Shore Bancorp | MA | Bank | 1662477 | 12.31 | 12.14 | 1.12 | 9.29 | 0.21 | 563.11 | NA | NA |  | NA | NA | NA | NA | NA |
|  Eastern Bankshares, Inc./Cambridge Bancorp | 2044851 | MA | Northeast | 9/19/2023 | 7/12/2024 | Completion | Eastern Bankshares Inc. | MA | Cambridge Bancorp | MA | Bank | 5489622 | 9.60 | 8.41 | 0.84 | 9.08 | 0.13 | 528.87 | 527.14 | 66.46 | Common<br>Stock | 98.9 | 114.5 | 11.1 | 9.60 | 1.69 |
|  Mutual Bancorp./Fidelity Mutual Holding Company | 2045349 | MA | Northeast | 9/21/2023 | 4/2/2024 | Completion | Mutual Bancorp. | MA | Fidelity Mutual Holding Company | MA | Bank | 1478263 | 8.41 | 8.37 | 0.64 | 7.50 | 0.08 | 684.67 | NA | NA |  | NA | NA | NA | NA | NA |
|  1831 Bancorp MHC/South Shore Bancorp MHC | 2015104 | MA | Northeast | 3/14/2023 | 1/1/2024 | Completion | 1831 Bancorp MHC | MA | South Shore Bancorp MHC | MA | Bank | 2111040 | 8.17 | 7.84 | 0.98 | 11.95 | 0.27 | 347.77 | NA | NA |  | NA | NA | NA | NA | NA |
|  Newburyport Five Cents Bancorp MHC/Pentucket Bank Holdings, MHC | 2000816 | MA | Northeast | 12/16/2022 | 7/1/2023 | Completion | Newburyport Five Cents Bancorp | MA | Pentucket Bank Holdings, MHC | MA | Bank | 946817 | 9.80 | 9.80 | 0.12 | 1.07 | 0.92 | 83.25 | NA | NA |  | NA | NA | NA | NA | NA |
|  1889 Bancorp MHC/Foxboro Federal Savings | 1974735 | MA | Northeast | 7/28/2022 | 12/3/2022 | Completion | 1889 Bancorp MHC | MA | Foxboro Federal Savings | MA | Savings<br>Bank/<br>Thrift/<br>Mutual | 205082 | 12.43 | 12.43 | 0.55 | 3.86 | 0.00 | NA | NA | NA |  | NA | NA | NA | NA | NA |
|  Hometown Financial Group MHC/Randolph Bancorp, Inc. | 1950704 | MA | Northeast | 3/28/2022 | 10/7/2022 | Completion | Hometown Financial Group MHC | MA | Randolph Bancorp, Inc. | MA | Savings<br>Bank/<br>Thrift/<br>Mutual | 803278 | 12.56 | 12.56 | 1.29 | 9.31 | 0.48 | 164.46 | 148.28 | 27.00 | Cash | 136.84 | 136.87 | 14.36 | 18.46 | 8.98 |
|  Cambridge Bancorp/Northmark Bank | 1961949 | MA | Northeast | 05/23/2022 | 10/01/2022 | Completion | Cambridge Bancorp | MA | Northmark Bank | MA | Bank | 442468 | 12.12 | 12.12 | 0.78 | 6.73 | 0.00 | NA | 63 | 79.540 | Common<br>Stock | 117.52 | 117.52 | 17.87 | 14.24 | 3.21 |
|  1854 Bancorp/Patriot Community Bank | 1944258 | MA | Northeast | 2/23/2022 | 8/1/2022 | Completion | 1854 Bancorp | MA | Patriot Community Bank | MA | Bank | 207627 | 14.86 | 14.86 | 1.13 | 7.81 | 1.62 | 55.79 | NA | 15.75 | Cash | NA | NA | NA | NA | NA |
|  Independent Bank Corp./Meridian Bancorp, Inc. | 1876054 | MA | Northeast | 4/22/2021 | 11/12/2021 | Completion | Independent Bank Corp. | MA | Meridian Bancorp, Inc. | MA | Savings<br>Bank/<br>Thrift/<br>Mutual | 6503925 | 12.13 | 11.84 | 1.17 | 10.12 | 0.07 | NM | 1150.6 | 21.88 | Common<br>Stock | 145.4 | 149.6 | 14.5 | 17.69 | 8.71 |
|  Eastern Bankshares, Inc./Century Bancorp, Inc. | 1858673 | MA | Northeast | 4/7/2021 | 11/12/2021 | Completion | Eastern Bankshares Inc. | MA | Century Bancorp, Inc. | MA | Bank | 7289324 | 5.23 | 5.20 | 0.68 | 11.97 | 0.04 | NM | 641.9 | 115.28 | Cash | 168.3 | 169.5 | 14.8 | 8.81 | NA |
|  SVB Financial Group/Boston Private Financial Holdings, Inc. | 1794516 | MA | Northeast | 1/4/2021 | 7/1/2021 | Completion | SVB Financial Group | CA | Boston Private Financial Holdings, Inc. | MA | Bank | 10048733 | 8.64 | 8.04 | 0.49 | 5.34 | 0.31 | 261.98 | 942.56 | 10.94 | Cash,<br>Common<br>Stock | 103.79 | 112.30 | 19.90 | 9.38 | 1.73 |

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**EXHIBIT IV-5** 

**Narragansett Bancorp, Inc.** 

**Director and Senior Management Summary Resumes** 

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Exhibit IV-5

Narragansett Bancorp, Inc.

Director and Senior Management Summary Resumes

***Directors with terms ending following the year ending December 31, 2026:***

***Gail M. Fortes*** is the Executive Director of the YWCA of Southeastern MA, where she has worked for 31 years. Her experience, including senior leadership in an organization with over 20 employees, provides valuable insight into non-profit leadership, finance, governance, marketing, human resources and strategic planning. Director since 2021. Age 54.

***Steven W. Kenyon*** is a Certified Public Accountant and the Vice President of Administration & Finance at Bristol Community College, where he has worked since 1994. In this position, he serves as the Chief Financial Officer where he is responsible for the overall financial health, sustainability, and strategic financial planning of the institution. His responsibilities further include campus police, facilities, capital projects, risk and compliance, finance and other administrative responsibilities. With over 39 years of experience in finance and accounting, he provides the board of directors with valuable knowledge of the financial aspects of BayCoast Bank's business. Director since 2004. Age 60.

***Brian R. LeComte*** has served as the President and Chief Operating Officer of Gold Medal Bakery, Inc. since July 2022. In this position, he is responsible for all day-to-day operations. He previously served as Treasurer at Gold Medal Bakery, Inc. from 2004 to July 2022, where he was responsible for finance, accounting, human resources and information technology functions. His experience, including senior leadership in an organization with over 500 employees, gives him extensive insight into the customers who live in our market areas as well as both the economic developments affecting the communities in which we operate. Director since 2024. Age 45.

***Eric B. Mack*** is an attorney and shareholder of Littler Mendleson P.C., where he has worked since October 2013. Mr. Mack's practice focuses on assisting private employers, especially financial institutions and hospitals, in a variety of employment disputes. His legal experience provides the board of directors with extensive expertise in employment matters. Director since 2021. Age 44.

***Directors with terms ending following the year ending December 31, 2027:***

***Maria L. Aguiar*** is a Certified Public Accountant and was in practice for nearly 40 years prior to her retirement in 2022. Ms. Aguiar has extensive experience with the audit, review and/or preparation of financial statements of non-public commercial businesses, non-profit organizations, and pension plans, as well as preparation of corporate, individual, pension and non-profit tax returns. This experience provides the board of directors with extensive insight into accounting and tax matters. Director since 2005. Age 61.

***Paul M. Joncas*** has served as the President of Meganet Communications, an internet service provider serving corporate and residential customers in Massachusetts, New Hampshire, Rhode Island and Vermont, since 1995, the President of Megaclear, a Competitive Local Exchange Carrier company, since 2000, and a Managing Partner of Madison FR Properties, LLC, a Commercial Real Estate Development and Leasing company, since 2018. Mr. Joncas has also served as a partner of Riggar Leasing LLC, a Commercial Real Estate Development and Leasing company, since 2022. Through his extensive experience in the technology industry and as an owner of multiple companies, he brings valuable insight to the board across a range of sectors, including technology and commercial real estate management. Director since 2019. Age 55.

***Mary Louise Nunes*** is a Certified Public Accountant and the Managing Member of Nunes & Charrier, LLC, an accounting firm. She has worked as a CPA for 38 years and is a Chartered Global Management Accountant, Certified Financial Forensics, and holds a Master's of Science in Taxation. Her experience provides the board of directors with extensive insight into accounting and tax matters. Director since 2019. Age 65.

***Carl W. Taber*** has served as our Chief Lending Officer for 21 years and has over 50 years' experience in the financial institutions industry, including as Chief Real Estate Lending Officer at another financial institution. Mr. Taber's extensive experience in community banking provides a broad perspective on our lending operations and the challenges facing our organization and our business strategies. Director since 2025. Age 72.

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Exhibit IV-5 (continued)

Narragansett Bancorp, Inc.

Director and Senior Management Summary Resumes

***Lawrence R. Walsh*** had over 41 years' work experience, including as a Chief Financial Officer for major manufacturing companies with 600 to 1200 employees, and as Chief Operating Officer and Chief Marketing Manager for a mid-sized manufacturer, prior to his retirement in 2018. His operational and executive experience as well as his financial acumen provides the board of directors with invaluable knowledge and strategic insight into all aspects of BayCoast Bank's business. Director since 1999. Age 73.

***Directors with terms ending following the year ending December 31, 2028:***

***Nicholas M. Christ*** currently serves as our Chair of the Board and Chief Executive Officer, having served as our President and Chief Executive Officer beginning in January 2006. Mr. Christ has over 45 years' experience in the financial institutions industry, having been employed by BayCoast Bank since 1986. His positions as Chair of the Board and Chief Executive Officer foster clear accountability, effective decision-making, a clear and direct channel of communication from senior management to the full board of directors, and alignment on corporate strategy. Mr. Christ is the father of Executive Vice President and Chief Operating Officer Nicholas L. Christ. Director since 1987. Age 74.

***Kenneth D. Furtado*** has served as President and Chief Executive Officer of OCI Software, a software design and development company that he founded, for over 45 years. His experience as a business owner gives him extensive insight into the customers who live in our market areas as well as both the economic developments affecting the communities in which we operate and also provides us with particular expertise in the area of information technology. Director since 2013. Age 68.

***Margaret (Margarita) Patricio*** is Assistant Treasurer and Director at Boston Consulting Group (BCG), a global strategy consulting firm with more than $14 billion in annual revenues, where she has worked since 1995. She overseas BCG's global cash operations and liquidity strategy, including oversight of the firm's cash pools and In-House Bank operations. Her responsibilities also include cash forecasting, treasury accounting oversight, Treasury policy governance, and Treasury leadership across the Americas. Her experience and expertise in global Treasury operations, financial governance, risk management, and accounting within a large multinational organization, provides the board of directors with valuable financial and operational insight. Director since 2026. Age 55.

***Marie Pellegrino*** has served as our President since December 2025, and has been employed by BayCoast Bank since 2013, including as Executive Vice President and Chief Operating Officer, and Chief Financial Officer. Ms. Pellegrino has over 25 years' experience in the financial institutions industry. Her position as President fosters clear accountability, effective decision-making, a clear and direct channel of communication from senior management to the full board of directors, and alignment on corporate strategy. Director since 2025. Age 58.

**Executive Officers Who Are Not Directors** 

***Nicholas L. Christ*** has served as our Executive Vice President and Chief Operating Officer since January 2026, having worked at BayCoast Mortgage since 2015, where he served as President and Chief Executive Officer beginning in January 2024. Mr. Christ worked as a loan officer for ten years before joining BayCoast Bank. Mr. Christ is the son of Chairman and Chief Executive Officer Nicholas M. Christ. Age 43.

***Daniel J. DeCosta*** has served as our Executive Vice President and Chief Information Officer since January 2024 and has worked at BayCoast Bank for 25 years. His responsibilities include overseeing operational support and all aspects of information technology. He holds a Bachelor's degree in Business Information Systems. Age 42.

***Diana Taxiera*** has served as our Senior Vice President and Chief Financial Officer since January 2025, and has been employed by BayCoast Bank since 2019, including as Vice President and Controller. Ms. Taxiera is a Certified Public Accountant and was previously an Accounting Manager at Digital Federal Credit Union, where she was employed from 2014 until 2019, and a Senior Auditor at Wolf & Company, where she was employed from 2009 to 2014. Age 39.

Source: Narragansett Bancorp's prospectus.

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**EXHIBIT IV-6** 

**Narragansett Bancorp, Inc.** 

**Pro Forma Regulatory Capital Ratios** 

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Exhibit IV-6

Narragansett Bancorp, Inc.

Pro Forma Regulatory Capital Ratios

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **BayCoast Bank**<br>**Historical at**<br>**March 31, 2026** | **BayCoast Bank**<br>**Historical at**<br>**March 31, 2026** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** | **Pro Forma at March 31, 2026 Based Upon the Sale in the Offering of (1):** |
|  | **BayCoast Bank**<br>**Historical at**<br>**March 31, 2026** | **BayCoast Bank**<br>**Historical at**<br>**March 31, 2026** | **5,848,000 Shares** | **5,848,000 Shares** | **6,880,000 Shares** | **6,880,000 Shares** | **7,912,000 Shares** | **7,912,000 Shares** | **9,098,800 Shares (2)** | **9,098,800 Shares (2)** |
|  | **Amount** | **Percent of<br>Assets** | **Amount** | **Percent of<br>Assets** | **Amount** | **Percent of<br>Assets** | **Amount** | **Percent of<br>Assets** | **Amount** | **Percent of<br>Assets** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
|  Equity capital | $258226 | 8.95% | $278622 | 9.56% | $282422 | 9.68% | $286222 | 9.79% | $290592 | 9.92% |
|  Tier 1 leverage capital (3)(4) | $234201 | 8.22% | $254597 | 8.85% | $258397 | 8.97% | $262197 | 9.09% | $266567 | 9.22% |
|  Tier 1 leverage requirement | 142406 | 5.00 | 143792 | 5.00 | 144047 | 5.00 | 144302 | 5.00 | 144595 | 5.00 |
|  Excess | $91796 | 3.22% | $110805 | 3.85% | $114350 | 3.97% | $117895 | 4.09% | $121972 | 4.22% |
|  Tier 1 risk-based capital (3)(4) | $234201 | 10.69% | $254597 | 11.59% | $258397 | 11.76% | $262197 | 11.92% | $266567 | 12.12% |
|  Tier 1 risk-based requirement | 175303 | 8.00 | 175747 | 8.00 | 175828 | 8.00 | 175910 | 8.00 | 176004 | 8.00 |
|  Excess | $58898 | 2.69% | $78850 | 3.59% | $82569 | 3.76% | $86287 | 3.92% | $90563 | 4.12% |
|  Total risk-based capital (3)(4) | $261594 | 11.94% | $281990 | 12.84% | $285790 | 13.00% | $289590 | 13.17% | $293960 | 13.36% |
|  Total risk-based requirement | 219129 | 10.00 | 219683 | 10.00 | 219785 | 10.00 | 219887 | 10.00 | 220005 | 10.00 |
|  Excess | $42465 | 1.94% | $62307 | 2.84% | $66005 | 3.00% | $69703 | 3.17% | $73955 | 3.36% |
|  Common equity tier 1 risk-based capital (3)(4) | $234201 | 10.69% | $254597 | 11.59% | $258397 | 11.76% | $262197 | 11.92% | $266567 | 12.12% |
|  Common equity tier 1 risk-based requirement | 142434 | 6.50 | 142794 | 6.50 | 142861 | 6.50 | 142927 | 6.50 | 143003 | 6.50 |
|  Excess | $91767 | 4.19% | $111803 | 5.09% | $115536 | 5.26% | $119270 | 5.42% | $123564 | 5.62% |
|  Reconciliation: |  |  |  |  |  |  |  |  |  |  |
|  Net proceeds infused into BayCoast Bank |  |  | $27740 |  | $32836 |  | $37932 |  | $43793 |  |
|  Less: Common stock acquired by employee stock ownership plan |  |  | (4896) |  | (5760) |  | (6624) |  | (7618) |  |
|  Less: Common stock acquired by stock-based benefit plan |  |  | (2448) |  | (2880) |  | (3312) |  | (3809) |  |
|  Pro forma increase in leverage capital |  |  | $20396 |  | $24196 |  | $27996 |  | $32366 |  |

---

(1) Pro forma capital levels assume that the employee stock ownership plan purchases 8% of the aggregate number of
shares of common stock of Narragansett Bancorp, Inc. sold in the offering and contributed to the charitable foundation with funds we lend and that our stock-based benefit plan issues a number of shares equal to 4% of the aggregate number of shares
of common stock sold in the offering and contributed to the charitable foundation for restricted stock awards. Pro forma capital calculated under U.S. generally accepted accounting principles ("GAAP") and regulatory capital have been
reduced by the amount required to fund these plans. See "Management" for a discussion of the employee stock ownership plan.

(2) As adjusted to give effect to an increase in the number of shares, which increase could occur due to a 15%
increase in the offering range to reflect demand for the shares or changes in market conditions following the commencement of the offering.

(3) Leverage capital levels are shown as a percentage of total average assets.

(4) Pro forma dollar amounts and percentages assume net proceeds are invested in assets with a 20% risk weighting.

Source: Narragansett Bancorp's prospectus.

------

**EXHIBIT IV-7** 

**Narragansett Bancorp, Inc.** 

**Pro Forma Analysis Sheet – Fully Converted Basis** 

------

Exhibit IV-7

PRO FORMA ANALYSIS SHEET - FULLY CONVERTED BASIS

Narragansett Bancorp, Inc.

Prices as of May 4, 2026

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | |  | Peer Group | Peer Group | Peer Group |  | Massachusetts Companies | Massachusetts Companies | Massachusetts Companies |  | All Publicly-Traded | All Publicly-Traded | All Publicly-Traded |  |
| Price Multiple | Symbol | Subject (1) |  | Average |  | Median |  | Average |  | Median |  | Average |  | Median |  |
|  Price-earnings ratio (x) | P/E | 18.93 | x | 12.14 | x | 12.23 | x | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.50 | x | 15.56 | x | 14.59 | x | 13.94 | x |
|  Price-core earnings ratio (x) | P/Core | 21.92 | x | 13.67 | x | 14.11 | x | 16.14 | x | 15.80 | x | 14.49 | x | 12.42 | x |
|  Price-book ratio (%) | P/B | 49.90 | % | 99.21 | % | 94.80 | % | 109.11 | % | 109.78 | % | 95.53 | % | 90.11 | % |
|  Price-tangible book ratio (%) | P/TB | 54.67 | % | 104.02 | % | 97.43 | % | 111.59 | % | 114.74 | % | 106.93 | % | 92.54 | % |
|  Price-assets ratio (%) | P/A | 5.28 | % | 11.55 | % | 11.46 | % | 11.94 | % | 11.80 | % | 13.69 | % | 13.45 | % |

---

<u>Valuation Parameters</u> 

---

| | | | |
|:---|:---|:---|:---|
|  Pre-Conversion Earnings (Y) | $7370000.0 | ESOP Stock Purchases (E) | 8.0% |
|  Pre-Conversion Earnings (CY) | $6220000.0 | Cost of ESOP Borrowings (S) | 0.0% |
|  Pre-Conversion Book Value (B) | $186644000.0 | ESOP Amortization (T) | 20.0 |
|  Pre-Conv. Tang. Book Val. (TB) | $158620000.0 | RRP Amount (M) | 4.0% |
|  Pre-Conversion Assets (A) | $2896855000.0 | RRP Vesting (N) | 5.0 |
|  Reinvestment Rate (2)(R) | 3.92% | Foundation (F) | 2.42% |
|  Est. Conversion Expenses (3)(X) | 2.5% | Tax Benefit (Z) | 950000.0 |
|  Tax Rate (TAX) | 25.0% | Percentage Sold (PCT) | 100.0% |
|  Shares Tax | $0.0 | Option (O1) | 10.0% |
|  |  | Estimated Option Value (O2) | 46.4% |
|  |  | Option vesting (O3) | 5.0 |
|  |  | Option pct taxable (O4) | 25.0% |

---

<u>Calculation of Pro Forma Value After Conversion</u> 

---

| | | | |
|:---|:---|:---|:---|
| 1. V= | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P/E \* (Y) | V= | $160000000 |
|  | 1 - P/E \* PCT \* ((1-X-E-M-F)\*R\*(1-TAX) - (1-TAX)\*E/T - (1-TAX)\*M/N) - (1-(TAX\*O4))\*(O1\*O2)/O3) |  |  |
| 2. V= | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P/Core \* (Y) | V= | $160000000 |
|  | 1 - P/core \* PCT \* ((1-X-E-M-F)\*R\*(1-TAX) - (1-TAX)\*E/T - (1-TAX)\*M/N) - (1-(TAX\*O4))\*(O1\*O2)/O3) |  |  |
| 3. V= | <u>P/B \* (B+Z)</u> | V= | $160000000 |
|  | 1 - P/B \* PCT \* (1-X-E-M-F) |  |  |
| 4. V= | <u>P/TB \* (TB+Z)</u> | V= | $160000000 |
|  | 1 - P/TB \* PCT \* (1-X-E-M-F) |  |  |
| 5. V= | <u>P/A \* (A+Z)</u> | V= | $160000000 |
|  | 1 - P/A \* PCT \* (1-X-E-M-F) |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | | Shares | | Aggregate |
|  | Shares Issued | Price Per | Gross Offering | Issued To | Total Shares | Market Value |
| Conclusion | To the Public | Share | Proceeds | Foundation | Issued | of Shares Issued |
|  Supermaximum | 20736800 | 10.00 | $207368000 | 423200 | 21160000 | $211600000 |
|  Maximum | 18032000 | 10.00 | 180320000 | 368000 | 18400000 | 184000000 |
|  Midpoint | 15680000 | 10.00 | 156800000 | 320000 | 16000000 | 160000000 |
|  Minimum | 13328000 | 10.00 | 133280000 | 272000 | 13600000 | 136000000 |

---

(1) Pricing ratios shown reflect the midpoint value.

(2) Net return reflects a reinvestment rate of 3.92 percent and a tax rate of 25.0 percent.

(3) Offering expenses shown at estimated midpoint value.

(4) No cost is applicable since holding company will fund the ESOP loan.

(5) ESOP and MRP amortize over 20 years and 5 years, respectively; amortization expenses tax effected at
25.0 percent.

(6) 10 percent option plan with an estimated Black-Scholes valuation of 46.40 percent of the exercise
price, including a 5 year vesting with 25 percent of the options (granted to directors) tax effected at 25.0 percent.

------

**EXHIBIT IV-8** 

**Narragansett Bancorp, Inc.** 

**Pro Forma Effect of Conversion Proceeds – Fully Converted Basis** 

------

Exhibit IV-8

PRO FORMA EFFECT OF CONVERSION PROCEEDS

Narragansett Bancorp, Inc.

At the Minimum

---

| | |
|:---|:---|
| 1. Pro Forma Market Capitalization | $136000000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Foundation Shares | 2720000.0 |
| 2. Offering Proceeds | $133280000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated Offering Expenses | 3332000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $129948000.0 |
| 3. Estimated Additional Income from Conversion Proceeds |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $129948000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Cash Contribution to Foundation | 600000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Non-Cash Stock Purchases (1) | 16320000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Proceeds Reinvested | $113028000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net incremental rate of return | 2.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinvestment Income | $3323023.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Shares Tax | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated cost of ESOP borrowings (2) | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of ESOP borrowings (3) | 408000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of Options (4) | 1183200.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Recognition Plan Vesting (5) | 816000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Earnings Impact | $915823.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | Before<br>Conversion | Net Earnings<br>Increase | After Conversion |
| 4. Pro Forma Earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (reported) |  | $7370000 | $915823 | $8285823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (core) |  | $6220000 | $915823 | $7135823 |
|  | Before Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After Conversion |
| 5. Pro Forma Net Worth |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $186644000 | $113028000 | $830000 | $300502000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 (Tangible) | $158620000 | $113028000 | $830000 | $272478000 |
|  | Before Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After Conversion |
| 6. Pro Forma Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $2896855000 | $113028000 | $830000 | $3010713000 |

---

(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.

(2) ESOP stock purchases are internally financed by a loan from the holding company.

(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 25.0 percent rate.

(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.

(5) RRP is amortized over 5 years, and amortization expense is tax effected at 25.0 percent.

------

Exhibit IV-8

PRO FORMA EFFECT OF CONVERSION PROCEEDS

Narragansett Bancorp, Inc.

At the Midpoint

---

| | |
|:---|:---|
| 1. Pro Forma Market Capitalization | $160000000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Foundation Shares | 3200000.0 |
| 2. Offering Proceeds | $156800000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated Offering Expenses | 3920000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $152880000.0 |
| 3. Estimated Additional Income from Conversion Proceeds |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $152880000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Cash Contribution to Foundation | 600000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Non-Cash Stock Purchases (1) | 19200000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Proceeds Reinvested | $133080000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net incremental rate of return | 2.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinvestment Income | $3912552.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Shares Tax | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated cost of ESOP borrowings (2) | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of ESOP borrowings (3) | 480000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of Options (4) | 1392000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Recognition Plan Vesting (5) | 960000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Earnings Impact | $1080552.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | Before<br>Conversion | Net Earnings<br>Increase | After<br>Conversion |
| 4. Pro Forma Earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (reported) |  | $7370000 | $1080552 | $8450552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (core) |  | $6220000 | $1080552 | $7300552 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 5. Pro Forma Net Worth |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $186644000 | $133080000 | $950000 | $320674000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 (Tangible) | $158620000 | $133080000 | $950000 | $292650000 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 6. Pro Forma Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $2896855000 | $133080000 | $950000 | $3030885000 |

---

(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.

(2) ESOP stock purchases are internally financed by a loan from the holding company.

(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 25.0 percent rate.

(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.

(5) RRP is amortized over 5 years, and amortization expense is tax effected at 25.0 percent.

------

Exhibit IV-8

PRO FORMA EFFECT OF CONVERSION PROCEEDS

Narragansett Bancorp, Inc.

At the Maximum Value

---

| | |
|:---|:---|
| 1. Pro Forma Market Capitalization | $184000000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Foundation Shares | 3680000.0 |
| 2. Offering Proceeds | $180320000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated Offering Expenses | 4508000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $175812000.0 |
| 3. Estimated Additional Income from Conversion Proceeds |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $175812000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Cash Contribution to Foundation | 600000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Non-Cash Stock Purchases (1) | 22080000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Proceeds Reinvested | $153132000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net incremental rate of return | 2.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinvestment Income | $4502081.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Shares Tax | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated cost of ESOP borrowings (2) | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of ESOP borrowings (3) | 552000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of Options (4) | 1600800.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Recognition Plan Vesting (5) | 1104000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Earnings Impact | $1245281.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | Before<br>Conversion | Net Earnings<br>Increase | After<br>Conversion |
| 4. Pro Forma Earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (reported) |  | $7370000 | $1245281 | $8615281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (core) |  | $6220000 | $1245281 | $7465281 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 5. Pro Forma Net Worth |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $186644000 | $153132000 | $1070000 | $340846000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 (Tangible) | $158620000 | $153132000 | $1070000 | $312822000 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 6. Pro Forma Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $2896855000 | $153132000 | $1070000 | $3051057000 |

---

(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.

(2) ESOP stock purchases are internally financed by a loan from the holding company.

(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 25.0 percent rate.

(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.

(5) RRP is amortized over 5 years, and amortization expense is tax effected at 25.0 percent.

------

Exhibit IV-8

PRO FORMA EFFECT OF CONVERSION PROCEEDS

Narragansett Bancorp, Inc.

At the Super Maximum Value

---

| | |
|:---|:---|
| 1. Pro Forma Market Capitalization | $211600000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Foundation Shares | 4232000.0 |
| 2. Offering Proceeds | $207368000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated Offering Expenses | 5184200.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $202183800.0 |
| 3. Estimated Additional Income from Conversion Proceeds |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $202183800.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Cash Contribution to Foundation | 600000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Non-Cash Stock Purchases (1) | 25392000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Proceeds Reinvested | $176191800.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net incremental rate of return | 2.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinvestment Income | $5180039.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Shares Tax | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated cost of ESOP borrowings (2) | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of ESOP borrowings (3) | 634800.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of Options (4) | 1840920.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Recognition Plan Vesting (5) | 1269600.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Earnings Impact | $1434719.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | Before<br>Conversion | Net<br>Earnings<br>Increase | After<br>Conversion |
| 4. Pro Forma Earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (reported) |  | $7370000 | $1434719 | $8804719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (core) |  | $6220000 | $1434719 | $7654719 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 5. Pro Forma Net Worth |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $186644000 | $176191800 | $1208000 | $364043800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 (Tangible) | $158620000 | $176191800 | $1208000 | $336019800 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 6. Pro Forma Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $2896855000 | $176191800 | $1208000 | $3074254800 |

---

(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.

(2) ESOP stock purchases are internally financed by a loan from the holding company.

(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 25.0 percent rate.

(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.

(5) RRP is amortized over 5 years, and amortization expense is tax effected at 25.0 percent.

------

**EXHIBIT IV-9** 

**Narragansett Bancorp, Inc.** 

**Pro Forma Analysis Sheet – Minority Stock Offering** 

------

EXHIBIT IV-9

PRO FORMA ANALYSIS SHEET - MINORITY STOCK OFFERING

Narragansett Bancorp, Inc.

May 4,. 2026

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | |  | Peer Group | Peer Group | Peer Group |  | Massachusetts Companies | Massachusetts Companies | Massachusetts Companies |  | All Publicly-Traded | All Publicly-Traded | All Publicly-Traded |  |
| Price Multiple | Symbol | Subject (1) |  | Mean |  | Median |  | Mean |  | Median |  | Mean |  | Median |  |
|  Price-earnings ratio (x) | P/E | 20.67 | x | 12.14 | x | 12.23 | x | 14.50 | x | 15.56 | x | 14.59 | x | 13.94 | x |
|  Price-core earnings ratio (x) | P/Core | 24.28 | x | 13.67 | x | 14.11 | x | 16.14 | x | 15.80 | x | 14.49 | x | 12.42 | x |
|  Price-book ratio (%) | P/B | 65.70 | % | 99.21 | % | 94.80 | % | 109.11 | % | 109.78 | % | 95.53 | % | 90.11 | % |
|  Price-tangible book ratio (%) | P/TB | 74.24 | % | 104.02 | % | 97.43 | % | 111.59 | % | 114.74 | % | 106.93 | % | 92.54 | % |
|  Price-assets ratio (%) | P/A | 5.42 | % | 11.55 | % | 11.46 | % | 11.94 | % | 11.80 | % | 13.69 | % | 13.45 | % |

---

<u>Valuation Parameters</u> 

---

| | | | |
|:---|:---|:---|:---|
|  Pre-Conversion Earnings (Y)(2) | $7355300.0 | ESOP Stock Purchases (E) | 8.0% |
|  Pre-Conversion Earnings (CY)(2) | $6205300.0 | Cost of ESOP Borrowings (S) | 0.0% |
|  Pre-Conversion Book Value (B)(2) | $186144000.0 | ESOP Amortization (T) | 20.0 |
|  Pre-Conv. Tang. Book Value (TB)(2) | $158120000.0 | MRP Amount (M) | 4.0% |
|  Pre-Conversion Assets (A)(2) | $2896355000.0 | MRP Vesting (N) | 5.0 |
|  Reinvestment Rate (3)(R) | 3.92% | Foundation (F) | 4.65% |
|  Est. Conversion Expenses (4)(X) | 4.55% | Tax Benefit (Z) | 950000.0 |
|  Tax Rate (TAX) | 25.0% | Percentage Sold (PCT) | 45.0% |
|  |  | Option (O1) | 10.0% |
|  |  | Estimated Option Value (O2) | 46.4% |
|  |  | Option vesting (O3) | 5.0 |
|  |  | Option pct taxable (O4) | 25.0% |

---

<u>Calculation of Pro Forma Value After Conversion</u> 

---

| | | | |
|:---|:---|:---|:---|
| 1. V= | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P/E \* (Y) | V= | $160000000 |
|  | 1 - P/E \* PCT \* ((1-X-E-M-F)\*R\*(1-TAX) - (1-TAX)\*E/T - (1-TAX)\*M/N) - (1-(TAX\*O4))\*(O1\*O2)/O3) |  |  |
| 2. V= | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P/Core \* (Y) | V= | $160000000 |
|  | 1 - P/core \* PCT \* ((1-X-E-M-F)\*R\*(1-TAX) - (1-TAX)\*E/T - (1-TAX)\*M/N) - (1-(TAX\*O4))\*(O1\*O2)/O3) |  |  |
| 3. V= | <u>P/B \* (B+Z)</u> | V= | $160000000 |
|  | 1 - P/B \* PCT \* (1-X-E-M-F) |  |  |
| 4. V= | <u>P/TB \* (TB+Z)</u> | V= | $160000000 |
|  | 1 - P/TB \* PCT \* (1-X-E-M-F) |  |  |
| 5. V= | <u>P/A \* (A+Z)</u> | V= | $160000000 |
|  | 1 - P/A \* PCT \* (1-X-E-M-F) |  |  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | Aggregate | |
|  | | | | | Shares | | Market Value | |
|  | Shares Owned by | Shares Issued | Price Per | Gross Offering | Issued to | Total Shares | of Shares Issued | Full Value |
| Conclusion | The MHC | To the Public | Share | Proceeds | Foundation | Issued Publicly | Publicly | Total Shares |
|  Super Maximum | 11638000 | 9098800 | 10.00 | $90988000 | 423200 | 9522000 | $95220000 | 21160000 |
|  Maximum | 10120000 | 7912000 | 10.00 | $79120000 | 368000 | 8280000 | 82800000 | 18400000 |
|  Midpoint | 8800000 | 6880000 | 10.00 | $68800000 | 320000 | 7200000 | 72000000 | 16000000 |
|  Minimum | 7480000 | 5848000 | 10.00 | $58480000 | 272000 | 6120000 | 61200000 | 13600000 |

---

(1) Pricing ratios shown reflect the midpoint value.

(2) Adjusted for capitalizing MHC with $500,000.

(3) Net return reflects a reinvestment rate of 3.92 percent, and a tax rate of 25.0 percent.

(4) Offering expenses shown at estimated midpoint value.

(5) No cost is applicable since holding company will fund the ESOP loan.

(6) ESOP and MRP amortize over 20 years and 5 years, respectively; amortization expenses tax effected at
25.0 percent.

(7) 10 percent option plan with an estimated Black-Scholes valuation of 46.40 percent of the exercise
price, including a 5 year vesting with 25 percent of the options (granted to directors) tax effected at 25.0 percent.

------

**EXHIBIT IV-10** 

**Narragansett Bancorp, Inc.** 

**Pro Forma Effect of Conversion Proceeds – Minority Stock Offering** 

------

Exhibit IV-10

PRO FORMA EFFECT OF CONVERSION PROCEEDS

Narragansett Bancorp, Inc.

At the Minimum

---

| | |
|:---|:---|
| 1. Pro Forma Market Capitalization | $61200000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Foundation Shares | 2720000.0 |
| 2. Offering Proceeds | $58480000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated Offering Expenses | 3001134.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $55478866.0 |
| 3. Estimated Additional Income from Conversion Proceeds |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $55478866.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Cash Contribution to Foundation | 600000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Non-Cash Stock Purchases (1) | 7344000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Proceeds Reinvested | $47534866.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net incremental rate of return | 2.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinvestment Income | $1397525.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated cost of ESOP borrowings (2) | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of ESOP borrowings (3) | 183600.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of Options (4) | 532440.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Recognition Plan Vesting (5) | 367200.0 |
|  Net Earnings Impact | $314285.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | Before<br>Conversion | Net<br>Earnings<br>Increase | After<br>Conversion |
| 4. Pro Forma Earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (reported) |  | $7355300 | $314285 | $7669585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (core) |  | $6205300 | $314285 | $6519585 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 5. Pro Forma Net Worth |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $186144000 | $47534866 | $830000 | $234508866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 (Tangible) | $158120000 | $47534866 | $830000 | $206484866 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 6. Pro Forma Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $2896355000 | $47534866 | $830000 | $2944719866 |

---

(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the public shares, respectively.

(2) ESOP stock purchases are internally financed by a loan from the holding company.

(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 25.0 percent rate.

(4) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25 percent taxable.

(5) MRP is amortized over 5 years, and amortization expense is tax effected at 25.0 percent.

------

Exhibit IV-10

PRO FORMA EFFECT OF CONVERSION PROCEEDS

Narragansett Bancorp, Inc.

At the Midpoint

---

| | |
|:---|:---|
| 1. Pro Forma Market Capitalization | $72000000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Foundation Shares | 3200000.0 |
| 2. Offering Proceeds | $68800000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated Offering Expenses | 3128790.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $65671210.0 |
| 3. Estimated Additional Income from Conversion Proceeds |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $65671210.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Cash Contribution to Foundation | 600000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Non-Cash Stock Purchases (1) | 8640000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Proceeds Reinvested | $56431210.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net incremental rate of return | 2.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinvestment Income | $1659078.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated cost of ESOP borrowings (2) | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of ESOP borrowings (3) | 216000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of Options (4) | 626400.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Recognition Plan Vesting (5) | 432000.0 |
|  Net Earnings Impact | $384678.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | Before<br>Conversion | Net<br>Earnings<br>Increase | After<br>Conversion |
| 4. Pro Forma Earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (reported) |  | $7355300 | $384678 | $7739978 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (core) |  | $6205300 | $384678 | $6589978 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 5. Pro Forma Net Worth |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $186144000 | $56431210 | $950000 | $243525210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 (Tangible) | $158120000 | $56431210 | $950000 | $215501210 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 6. Pro Forma Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $2896355000 | $56431210 | $950000 | $2953736210 |

---

(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the public shares, respectively.

(2) ESOP stock purchases are internally financed by a loan from the holding company.

(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 25.0 percent rate.

(4) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25 percent taxable.

(5) MRP is amortized over 5 years, and amortization expense is tax effected at 25.0 percent.

------

Exhibit IV-10

PRO FORMA EFFECT OF CONVERSION PROCEEDS

Narragansett Bancorp, Inc.

At the Maximum

---

| | |
|:---|:---|
| 1. Pro Forma Market Capitalization | $82800000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Foundation Shares | 3680000.0 |
| 2. Offering Proceeds | $79120000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated Offering Expenses | 3256446.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $75863554.0 |
| 3. Estimated Additional Income from Conversion Proceeds |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $75863554.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Cash Contribution to Foundation | 600000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Non-Cash Stock Purchases (1) | 9936000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Proceeds Reinvested | $65327554.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net incremental rate of return | 2.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinvestment Income | $1920630.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated cost of ESOP borrowings (2) | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of ESOP borrowings (3) | 248400.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of Options (4) | 720360.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Recognition Plan Vesting (5) | 496800.0 |
|  Net Earnings Impact | $455070.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | Before<br>Conversion | Net<br>Earnings<br>Increase | After<br>Conversion |
| 4. Pro Forma Earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (reported) |  | $7355300 | $455070 | $7810370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (core) |  | $6205300 | $455070 | $6660370 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 5. Pro Forma Net Worth |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $186144000 | $65327554 | $1070000 | $252541554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 (Tangible) | $158120000 | $65327554 | $1070000 | $224517554 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 6. Pro Forma Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $2896355000 | $65327554 | $1070000 | $2962752554 |

---

(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the public shares, respectively.

(2) ESOP stock purchases are internally financed by a loan from the holding company.

(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 25.0 percent rate.

(4) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25 percent taxable.

(5) MRP is amortized over 5 years, and amortization expense is tax effected at 25.0 percent.

------

Exhibit IV-10

PRO FORMA EFFECT OF CONVERSION PROCEEDS

Narragansett Bancorp, Inc.

At the Super Maximum Value

---

| | |
|:---|:---|
| 1. Pro Forma Market Capitalization | $95220000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Foundation Shares | 4232000.0 |
| 2. Offering Proceeds | $90988000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated Offering Expenses | 3403250.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $87584750.0 |
| 3. Estimated Additional Income from Conversion Proceeds |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Conversion Proceeds | $87584750.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Cash Contribution to Foundation | 600000.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Non-Cash Stock Purchases (1) | 11426400.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Proceeds Reinvested | $75558350.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated net incremental rate of return | 2.94% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinvestment Income | $2221415.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Estimated cost of ESOP borrowings (2) | 0.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of ESOP borrowings (3) | 285660.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Amortization of Options (4) | 828414.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Recognition Plan Vesting (5) | 571320.0 |
|  Net Earnings Impact | $536021.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | Before<br>Conversion | Net<br>Earnings<br>Increase | After<br>Conversion |
| 4. Pro Forma Earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (reported) |  | $7355300 | $536021 | $7891321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12 Months ended March 31, 2026 (core) |  | $6205300 | $536021 | $6741321 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 5. Pro Forma Net Worth |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $186144000 | $75558350 | $1208000 | $262910350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 (Tangible) | $158120000 | $75558350 | $1208000 | $234886350 |
|  | Before<br>Conversion | Net Cash<br>Proceeds | Tax Benefit<br>Of Contribution | After<br>Conversion |
| 6. Pro Forma Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2026 | $2896355000 | $75558350 | $1208000 | $2973121350 |

---

(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the public shares, respectively.

(2) ESOP stock purchases are internally financed by a loan from the holding company.

(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 25.0 percent rate.

(4) Option valuation based on Black-Scholes model, 5 year vesting, and assuming 25 percent taxable.

(5) MRP is amortized over 5 years, and amortization expense is tax effected at 25.0 percent.

------

**EXHIBIT V-1** 

**RP<sup>®</sup> Financial, LC.** 

**Firm Qualifications Statement** 

------

![LOGO](g122170g00v05.jpg)

**FIRM QUALIFICATION STATEMENT** 

RP<sup>®</sup> Financial ("RP<sup>®</sup>) provides financial and management consulting, merger advisory and valuation services to the financial services industry nationwide. We offer a broad array of services, high quality and prompt service, hands-on involvement by principals and senior staff, careful structuring of strategic initiatives and sophisticated valuation and other analyses consistent with industry practices and regulatory requirements. Our staff maintains extensive background in financial and management consulting, valuation and investment banking. Our clients include commercial banks, thrifts, credit unions, mortgage companies, insurance companies and other financial services companies.

***STRATEGIC PLANNING SERVICES***

RP<sup>®</sup>'s strategic planning services are designed to provide effective feasible plans with quantifiable results. We analyze strategic options to enhance shareholder value, achieve regulatory approval or realize other objectives. Such services involve conducting situation analyses; establishing mission/vision statements, developing strategic goals and objectives; and identifying strategies to enhance franchise and/or market value, capital management, earnings enhancement, operational matters and organizational issues. Strategic recommendations typically focus on: capital formation and management, asset/liability targets, profitability, return on equity and stock pricing. Our proprietary financial simulation models provide the basis for evaluating the impact of various strategies and assessing their feasibility and compatibility with regulations.

***MERGER ADVISORY SERVICES***

RP<sup>®</sup>'s merger advisory services include targeting potential buyers and sellers, assessing acquisition merit, conducting due diligence, negotiating and structuring merger transactions, preparing merger business plans and financial simulations, rendering fairness opinions, preparing mark-to-market analyses, valuing intangible assets and supporting the implementation of post-acquisition strategies. Our merger advisory services involve transactions of financially healthy companies and failed bank deals. RP<sup>®</sup> is also expert in de novo charters and shelf charters. Through financial simulations, comprehensive data bases, valuation proficiency and regulatory familiarity, RP<sup>®</sup>'s merger advisory services center on enhancing shareholder returns.

***VALUATION SERVICES***

RP<sup>®</sup>'s extensive valuation practice includes bank and thrift mergers, thrift mutual-to-stock conversions, goodwill impairment, insurance company demutualizations, ESOPs, subsidiary companies, merger accounting and other purposes. We are highly experienced in performing appraisals which conform to regulatory guidelines and appraisal standards. RP<sup>®</sup> is the nation's leading valuation firm for thrift mutual-to-stock conversions, with appraised values ranging up to $4 billion.

***OTHER CONSULTING SERVICES***

RP<sup>®</sup> offers other consulting services including evaluating the impact of regulatory changes (TARP, etc.), branching and diversification strategies, feasibility studies and special research. We assist banks/thrifts in preparing CRA plans and evaluating wealth management activities on a de novo or merger basis. Our other consulting services are facilitated by proprietary valuation and financial simulation models.

***KEY PERSONNEL (Years of Relevant Experience & Contact Information)***

---

| | | |
|:---|:---|:---|
| Ronald S. Riggins, Managing Director (46) | (703) 647-6543 | rriggins@rpfinancial.com |
| William E. Pommerening, Managing Director (41) | (703) 647-6546 | wpommerening@rpfinancial.com |
| Gregory E. Dunn, Director (42) | (703) 647-6548 | gdunn@rpfinancial.com |
| James P. Hennessey, Director (38) | (703) 647-6544 | jhennessey@rpfinancial.com |
| James J. Oren, Director (38) | (703) 647-6549 | joren@rpfinancial.com |

---

---

| | |
|:---|:---|
| **Washington Headquarters** |  |
| 1311-A Dolley Madison Boulevard | Telephone: (703) 528-1700 |
| Suite 2A | Fax No.: (703) 528-1788 |
| McLean, VA 22101 | Toll-Free No.: (866) 723-0594 |
| www.rpfinancial.com | E-Mail: mail@rpfinancial.com |

---

## Exhibit 99.4

**EXHIBIT 99.4** 

**Narragansett Bancorp, Inc.** 

PROPOSED MAILING AND INFORMATIONAL MATERIALS

INDEX

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Dear Depositor and Friends Letter\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Dear Potential Investor Letter\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Dear Prospective Investor Letter - Cover Letter for States Requiring "Agent" Mailing\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Stock Q&A\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Dear Subscriber/Acknowledgment Letter - Initial Response to Stock Order Received

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Dear Stockholder - Confirmation Letter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Dear Interested Investor - No Shares Available Letter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Welcome Stockholder Letter - For Initial DRS Statement Mailing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Dear Interested Subscriber Letter - Subscription Rejection

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Dear Community Member\*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Tombstone (Offering Advertisement)

*\** *Accompanied by a Prospectus* 

------

![LOGO](g122170baycoast_med.jpg)

**Dear Depositors and Friends of BayCoast Bank:** 

We are pleased to announce that BayCoast Bank is reorganizing into the "two-tier" public mutual holding company form of organization whereby Narragansett Bancorp, Inc. will become the mid-tier stock holding company of BayCoast Bank and Narragansett Financial Corporation will become the top-tier mutual holding company. As part of the reorganization, there will be an offering of a minority of Narragansett Bancorp, Inc.'s stock to the public, pursuant to a Plan of Holding Company Reorganization and Plan of Stock Issuance. To continue our commitment to our local community, in conjunction with the stock issuance, we intend to establish a new charitable foundation, called BayCoast Charitable Foundation, Inc., which we will fund with a contribution of cash and shares of the Narragansett Bancorp, Inc. common stock. The foundation will be dedicated to supporting charitable causes within the communities in which we operate. The proceeds of the stock offering will facilitate the Bank's ability to repay borrowings of Narragansett Financial Corporation, enhance our capital base and offer our depositors, employees, management, directors, trustees and corporators an opportunity to purchase an equity ownership interest in BayCoast Bank. Upon completion of the reorganization:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Existing deposit accounts and loans will remain exactly the same; and*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Deposit accounts will continue to be federally insured up to the maximum legal limits*** 

As a qualifying depositor of BayCoast Bank as of the close of business on May 31, 2025, you have the right to subscribe for shares of Narragansett Bancorp, Inc. common stock before the stock is offered to the general public. The enclosed prospectus describes the stock offering in more detail. **Please read the prospectus carefully before making an investment decision.** 

If you wish to subscribe for shares, please complete the enclosed stock order form. Your stock order form, together with payment for the shares, must be physically received (not postmarked) by Narragansett Bancorp, Inc. no later than 12:00 noon, Eastern Time, on [expiration date]. Stock order forms may be delivered **by mail** using the enclosed postage-paid envelope marked "STOCK ORDER RETURN," **by overnight delivery service** to the Stock Information Center or **by hand delivery** (drop box) ****to the address indicated on the stock order form. **We will not accept stock order forms at any of our other offices.** 

If you have any questions after reading the enclosed material, please call our Stock Information Center at (___) ___-____, Monday through Friday, between the hours of 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed on bank holidays.

Sincerely,

![LOGO](g122170nicholas_sig.jpg)

Nicholas M. Christ

Chair of the Board and Chief Executive Officer

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund. This is not an offer to sell or a solicitation of an offer to buy common stock. The offer is made only by the prospectus.* 

**M** 

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**[Narragansett Bancorp, Inc. logo]** 

**Dear Potential Investor:** 

We are pleased to provide you with the enclosed material regarding the stock offering by Narragansett Bancorp, Inc., the proposed mid-tier stock holding company for BayCoast Bank.

This information packet includes the following:

**Prospectus** 

This document provides detailed information about BayCoast Bank and the proposed offering by Narragansett Bancorp, Inc. **Please read it carefully before making an investment decision.**

**Stock Order Form** 

If you wish to subscribe for shares, please complete the enclosed stock order form. Your properly completed stock order form, together with payment for the shares, must be physically received (not postmarked) by Narragansett Bancorp, Inc. no later than 12:00 noon, Eastern Time, on [expiration date].

Stock order forms may be delivered **by mail** using the enclosed postage-paid envelope marked "STOCK ORDER RETURN," **by overnight delivery service** to the Stock Information Center or **by hand delivery** (drop box) to the address indicated on the stock order form. **We will not accept stock order forms at our other offices**.

We are pleased to offer you this opportunity to become one of our stockholders. If you have any questions after reading the enclosed material, please call our Stock Information Center at (___) ___-____, Monday through Friday, between the hours of 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed on bank holidays.

Sincerely,

![LOGO](g122170nicholas_sig.jpg)

Nicholas M. Christ

Chair of the Board and Chief Executive Officer

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund. This is not an offer to sell or a solicitation of an offer to buy common stock. The offer is made only by the prospectus.* 

**C** 

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![LOGO](g122170piper_med.jpg)

**Dear Prospective Investor**:

At the request of BayCoast Bank and its proposed mid-tier stock holding company, Narragansett Bancorp, Inc., we have enclosed materials regarding the offering of common stock by Narragansett Bancorp, Inc. The enclosed materials include a prospectus and a stock order form, which offer you the opportunity to subscribe for shares of common stock of Narragansett Bancorp, Inc. **Please read the prospectus carefully before making an investment decision.** 

If you have any questions after reading the enclosed material, please call the Stock Information Center at (___) ___-____, Monday through Friday, between the hours of 10:00 a.m. and 4:00 p.m., Eastern Time, and ask for a Piper Sandler representative. If you decide to subscribe for shares, your properly completed stock order form, together with payment for the shares, must be physically received (not postmarked) by Narragansett Bancorp, Inc. no later than 12:00 p.m., Eastern Time, on [expiration date].

We have been asked to forward these documents to you in view of certain requirements of the securities laws of your jurisdiction. This is not a recommendation or solicitation for any action by you with regard to the enclosed material.

Piper Sandler & Co.

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund. This is not an offer to sell or a solicitation of an offer to buy common stock. The offer is made only by the prospectus.* 

**D** 

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![LOGO](g122170g00r81.jpg)

## Questions & Answers

## About the Stock Offering
**[Narragansett Bancorp, Inc. logo]** 

------

We are pleased to announce that BayCoast Bank is reorganizing into the "two-tier" public mutual holding company form of organization whereby Narragansett Bancorp, Inc. will become the mid-tier stock holding company of BayCoast Bank and Narragansett Financial Corporation will become the top-tier mutual holding company. As part of the reorganization, there will be an offering of a minority of Narragansett Bancorp, Inc.'s stock to the public, pursuant to a Plan of Holding Company Reorganization and Plan of Stock Issuance. To continue our commitment to our local community, in conjunction with the stock issuance, we intend to establish a new charitable foundation, called BayCoast Charitable Foundation, Inc., which we will fund with a contribution of cash and shares of the Narragansett Bancorp, Inc. common stock. The foundation will be dedicated to supporting charitable causes within the communities in which we operate. The proceeds of the stock offering will facilitate the Bank's ability to repay borrowings of Narragansett Financial Corporation, enhance our capital base and offer our depositors, employees, management, directors, trustees and corporators an opportunity to purchase an equity ownership interest in BayCoast Bank.

This brochure provides some summary information about the offering and how to purchase shares and is qualified in its entirety by the prospectus delivered with it. ***Investing in common stock involves certain risks. For a discussion of these risks and other factors that may affect your investment decision, investors are urged to read the accompanying prospectus before making an investment decision.***

**Q.** **Why is BayCoast Bank reorganizing?** 

**A.** Our primary reasons for the reorganization and offering are to facilitate our ability to
repay borrowings of the MHC, enhance our capital base to support our continued growth and profitability, to offer our depositors, employees, officers, directors, trustees and corporators an opportunity to purchase an equity ownership in Narragansett
Bancorp, Inc. and to support our local communities through a contribution to a new charitable foundation.

**Q.** **What is a minority stock offering?** 

**A.** A minority stock offering means that the shares of stock being sold in the offering will
represent less than 50% of the total shares of common stock of Narragansett Bancorp, Inc. outstanding at the completion of the offering. Our mutual holding company, Narragansett Financial Corporation, will own a majority of the common stock of
Narragansett Bancorp, Inc., and Narragansett Bancorp, Inc. will own all of the common stock of BayCoast Bank.

**Q.** **What changes in the Bank's day-to-day business will occur as a result of the stock offering? Will the offering affect any of my deposit accounts or loans?** 

**A.** No changes are planned in the way we operate our business. The stock issuance will have no
effect on

the staffing, products or services that we offer to our customers through our offices**,** and will not affect the balance or terms of any deposit account. Your deposits will continue to be insured to the fullest extent permissible by federal and Massachusetts law. The terms, including interest rates, of your loans with us will also be unaffected. <br>

**Q.** **Who can purchase stock in the subscription offering?** 

**A.** The common stock is being offered in a subscription offering in the following order of priority:

1) <u>Eligible Account Holders</u>: Depositors of BayCoast Bank with aggregate balances of at least $50 at the close of business on May 31, 2025. 

2) BayCoast Bank's tax-qualified employee benefit plans.

3) Employees, officers, directors, trustees and corporators of BayCoast Bank, Narragansett Bancorp, Inc. or Narragansett Financial Corporation who are not eligible in the first priority.

**Q.** **I am not eligible to purchase stock in the subscription offering. May I still place an order to purchase shares?** 

**A.** If shares remain available following the completion of the subscription offering, common stock
may be offered to the general public in a community offering. The community offering may begin concurrently with, or any time after, the commencement of the subscription offering. **Natural persons (including trusts of natural persons) residing in the following Massachusetts and Rhode Island cities and towns will be given preference in the community offering:** 

**In Massachusetts, the following cities and towns:** Acushnet, Attleboro, Avon, Bellingham, Berkley, Braintree, Brookline, Canton, Cohasset, Dartmouth, Dedham, Dighton, Dover, Easton, Fairhaven, Fall River, Foxborough, Franklin, Freetown, Holbrook, Mansfield, Medfield, Medway, Millis, Milton, Needham, New Bedford, Norfolk, North Attleboro, Norton, Norwood, Plainville, Quincy, Randolph, Raynham, Rehoboth, Seekonk, Sharon, Somerset, Stoughton, Swansea, Taunton, Walpole, Wellesley, Westport, Westwood, Weymouth and Wrentham. **In Rhode Island, the following cities and towns:** Barrington, Bristol, Burrillville, Central Falls, Cranston, Cumberland, East Providence, Foster, Glocester, Jamestown, Johnston, Lincoln, Little Compton, Middletown, Newport, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Scituate, Smithfield, Tiverton, Warren and Woonsocket. <br>

**Q.** **Am I guaranteed to receive shares if I place a community order?** 

**A.** No. It is possible that orders received will exceed the number of shares being sold. Such an
oversubscription

------

would result in shares being allocated among subscribers according to the preferences and priorities set forth in the plan of holding company reorganization and plan of stock issuance described in the prospectus. If the offering is oversubscribed in the subscription offering, no orders received in any community offering will be filled. <br>

**Q.** **How many shares of stock are being offered, and at what price?** 

**A.** Narragansett Bancorp, Inc. is offering a maximum of 7,912,000 shares of common stock at a
price of $10.00 per share. Under certain circumstances, Narragansett Bancorp, Inc. may increase the maximum number of shares to up to 9,098,800 shares.

**Q.** **How much stock can I purchase?** 

**A.** The minimum purchase is 25 shares ($250). As more fully described in the plan conversion
and in the prospectus, the maximum purchase by any person in the subscription or community offering is 30,000 shares ($300,000) of common stock. In addition, no person, together with their associates, or group of persons acting in concert, may
purchase more than 50,000 shares ($500,000) of common stock in the offering.

**Q.** **How do I order stock?** 

A. If you decide to subscribe for shares, you must return your properly completed and signed
original stock order form, along with full payment for the shares, to Narragansett Bancorp, Inc. by the deadline noted on the stock order form. **Please call the Stock Information Center if you need assistance completing the stock order form .** Stock order forms may be returned **by mail** using the enclosed postage-paid envelope marked "STOCK ORDER RETURN," **by overnight delivery service** to the Stock Information Center or by hand delivery (drop
box)  **** ** to the address indicated on the stock order form. **We will not accept stock order forms at our other offices.** 

**Q.** **When is the deadline to subscribe for stock?** 

**A.** A properly completed original stock order form, together with the required full payment,
must be physically received by Narragansett Bancorp, Inc. (not postmarked) no later than 12:00 noon, Eastern Time, on [expiration date].

**Q.** **How can I pay for my shares of stock?** 

**A.** You can pay for the shares of common stock by check, money order, or withdrawal from your
deposit account or certificate of deposit at BayCoast Bank. **On the stock order form, you may not designate withdrawal from BayCoast Bank accounts with check-writing privileges; instead, please submit a check.** Checks and money orders must be
made

payable to Narragansett Bancorp, Inc. Withdrawals from a certificate of deposit at BayCoast Bank to buy shares of common stock may be made without penalty.

**Q.** **Can I use my BayCoast Bank home equity line of credit to pay for shares of common stock?** 

**A.** No. BayCoast Bank cannot lend funds to anyone to subscribe for shares. This includes the
use of funds available through a BayCoast Bank home equity or other line of credit.

**Q.** **Can I subscribe for shares using funds in my IRA at BayCoast Bank?** 

**A.** No. Federal regulations do not permit the purchase of common stock in your existing
IRA or other qualified retirement plan at BayCoast Bank. To use these funds to subscribe for common stock, you need to transfer the funds to a "self-directed" IRA or other trust account at another unaffiliated financial institution that
permits investment in equity securities within such account.  ***The transfer of these funds takes time, so please make arrangements as soon as possible.*** However, if you intend to subscribe for common stock using your eligibility as an IRA
account holder but plan to use funds from sources other than your IRA account, you do not need to transfer your IRA account. Please call our Stock Information Center if you require additional information.

**Q.** **Can I subscribe for shares in the subscription offering and add someone else who is not on my account to my stock registration?** 

**A.** No. Applicable regulations prohibit the transfer of subscription rights. Adding the names
of other persons who are not owners of your qualifying account(s) will result in the loss of your subscription rights.

**Q.** **Can I subscribe for shares in the subscription offering in my name alone if I have a joint account?** 

**A.** No. With the exception of certain orders placed through an IRA, Keogh, 401(k) or similar
plan, a name can be deleted only in the event of the death of a named eligible depositor.

**Q.** **I have custodial accounts at BayCoast Bank with my minor children. May I use these accounts to purchase stock in the subscription offering?** 

**A.** Yes. However, the stock must be registered in the custodian's name for the benefit
of the minor child under the Uniform Transfers to Minors Act. A custodial account does not entitle the custodian to purchase stock in his or her own name. If the child has reached the age of majority, the child must subscribe for the shares in his
or her own name.

------

**Q.** **I have a business or trust account at BayCoast Bank. May I use these accounts to purchase stock in the subscription offering?** 

**A.** Yes. However, the stock must be purchased in the name of the business or trust. A business
or trust account does not entitle the owner of or signatory for the business or the trustee of the trust to purchase stock in his or her own name.

**Q.** **Will payments for common stock earn interest until the stock offering closes?** 

**A.** Yes. Any payment made by check or money order will earn interest at 0.10% per annum from
the date the order is processed to the completion or termination of the stock offering. Depositors who pay for their stock by withdrawal authorization will receive interest at the contractual rate on the account until the completion or termination
of the offering.

**Q.** **Will dividends be paid on the stock?** 

**A.** Following completion of the stock offering, our board of directors will have the authority
to declare dividends on our shares of common stock, subject to statutory and regulatory requirements. However, due to regulatory restrictions applicable to mutual holding companies, we do not currently anticipate paying cash dividends on our common
stock.

**Q.** **Will my stock be covered by deposit insurance?** 

**A.** No.

**Q.** **Where will the stock be traded?** 

**A.** Upon completion of the stock offering, shares of our common stock are expected to trade on
the Nasdaq Capital Market under the symbol "NARA."

**Q.** **Can I change my mind after I place an order to subscribe for stock?** 

**A.** No. After receipt, your order may not be modified or withdrawn.

**Q.** **If I purchase shares of common stock during the offering, when will I receive my stock?** 

**A.** Physical stock certificates will not be issued. Our transfer agent, [Transfer Agent], will
send you a stock ownership statement, via the Direct Registration System (DRS) as soon as practicable after the

completion of the offering. Trading is expected to commence on the day of the closing of the stock offering or the day following closing of the stock offering. **Although the shares of Narragansett Bancorp, Inc. common stock will have begun trading, brokerage firms may require that you have received your stock ownership statement prior to selling your shares.** Your ability to sell the shares of common stock prior to your receipt of the statement will depend on arrangements you may make with your brokerage firm. <br>

**Q.** **What is direct registration and DRS?** 

**A.** Direct registration is the ownership of stock registered in your own name on the books of
Narragansett Bancorp, Inc. without taking possession of a printed stock certificate. Instead, your ownership is recorded and tracked as an accounting entry (referred to as "book entry") on the books of Narragansett Bancorp, Inc. The DRS
(Direct Registration System) is a system that electronically moves investors' positions between brokers and transfer agents for issuers that offer direct registration.

**Q.** **What if I have additional questions?** 

**A.** The prospectus that accompanies this brochure describes the offering in detail. **Please read the prospectus carefully before making an investment decision.** If you have any questions after reading the enclosed material, you may call our Stock Information Center at (___) ___-____, Monday through Friday, between the hours of
10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed on bank holidays.

**To ensure that each purchaser in the subscription and community offerings receives a prospectus at least 48 hours before the expiration date, in accordance with Rule 15c2-8 of the Securities Exchange Act of 1934, as amended, no prospectus will be mailed any later than five days prior to such date or hand delivered any later than two days prior to such date.** 

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund. This is not an offer to sell or a solicitation of an offer to buy common stock. The offer is made only by the prospectus.* 

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**Narragansett Bancorp, Inc.** 

_______ __, 2026

Dear Subscriber:

We hereby acknowledge receipt of your order and payment at $10.00 per share, listed below, of shares of Narragansett Bancorp, Inc. common stock. If you are issued shares, the shares will be registered as indicated above.

At this time, we cannot confirm the number of shares of Narragansett Bancorp, Inc. common stock, if any, that will be issued to you. Following completion of the stock offering, shares will be allocated in accordance with the Plan of Holding Company Reorganization and Plan of Stock Issuance.

Once the offering has been completed, you will receive by mail from our transfer agent, [Transfer Agent], a statement indicating your ownership of Narragansett Bancorp, Inc. common stock.

Please retain this letter and refer to the batch and item number indicated below for any future inquiries you may have regarding this order.

If you have any questions, please call our Stock Information Center at (___) ___-____, Monday through Friday, between the hours of 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed on bank holidays.

**Narragansett Bancorp, Inc.** 

Stock Information Center

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund.* 

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**Narragansett Bancorp, Inc.** 

_______ __, 2026

Dear Stockholder:

Thank you for your interest in Narragansett Bancorp, Inc. Our offering has been completed and we are pleased to confirm your subscription request for shares at a price of $10.00 per share. If your subscription was paid for by check, bank draft or money order, interest and any refund due to you will be mailed promptly.

The closing of the transaction occurred on ______ __, 2026; this is your stock purchase date. Trading is expected to commence on the Nasdaq Capital Market under the symbol "NARA" on ________ __, 2026.

A statement indicating the number of shares of Narragansett Bancorp, Inc. you have purchased will be mailed to you shortly by our transfer agent. This statement will be your evidence of ownership of Narragansett Bancorp, Inc. stock. All shares of Narragansett Bancorp, Inc. common stock will be in book entry form and paper stock certificates will not be issued.

**Narragansett Bancorp, Inc.** 

Stock Information Center

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund.* 

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**Narragansett Bancorp, Inc.** 

_______ __, 2026

Dear Interested Investor:

We recently completed our subscription offering. Unfortunately, due to the demand for shares from persons with priority rights, stock was not available for our [BayCoast Bank tax-qualified employee benefit plans], [Employees, Officers, Directors, Trustees Corporators], [or] [community members]. If your subscription was paid for by check, bank draft or money order, a refund of the balance due to you with interest will be mailed promptly.

We appreciate your interest in Narragansett Bancorp, Inc. and hope you become an owner of our stock in the future. Our stock has commenced trading on the Nasdaq Capital Market under the symbol "NARA."

**Narragansett Bancorp, Inc.** 

Stock Information Center

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund.* 

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**Narragansett Bancorp, Inc.** 

_______ __, 2026

Welcome Stockholder:

Thank you for your interest in Narragansett Bancorp, Inc. (the "Company"). Our offering has been completed and we are pleased to enclose a statement from our transfer agent reflecting the number of shares of the Company's common stock purchased by you in the offering at a price of $10.00 per share. The transaction closed on _______ __, 2026; this is your stock purchase date.

If your subscription was paid for by check, bank draft or money order, we will send you a check for interest on the funds you submitted and, if your subscription was not filled in full, the refund due.

The enclosed statement will be your evidence of ownership of shares of Company common stock. All stock sold in the offering has been issued in book entry form through the direct registration system ("DRS"). No physical stock certificates will be issued. Please examine this statement carefully to be certain that it properly reflects the number of shares you purchased and the names in which the ownership of the shares are to be shown on the books of the Company.

If you have any questions about your statement, please contact our transfer agent (by mail, telephone, or via the internet) as follows:

[Transfer Agent]

Attn: Narragansett Bancorp, Inc. Investor Services

xxxx Street

xx<sup>th</sup> Floor

City, State, Zip

1 (800) xxx-xxxx

Email: xxxx@xxxxxxxxxxxx

Trading [is expected to] [commenced] on the Nasdaq Capital Market under the symbol "NARA" on _______ __, 2026. Please contact a stockbroker if you choose to sell your stock or purchase any additional shares in the future.

On behalf of the Board of Directors, Trustees, Corporators, officers and employees of Narragansett Bancorp, Inc., I thank you for supporting our offering and welcome you as a stockholder.

Sincerely,

Nicholas M. Christ

Chair of the Board and Chief Executive Officer

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund.* 

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**Narragansett Bancorp, Inc.** 

_______ __, 2026

Dear Interested Subscriber:

We regret to inform you that Narragansett Bancorp, Inc., the holding company for BayCoast Bank, did not accept your order for shares of Narragansett Bancorp, Inc. common stock in its community offering. This action is in accordance with our Plan of Holding Company Reorganization and Plan of Stock Issuance, which gives Narragansett Bancorp, Inc. the absolute right to reject the order of any person, in whole or in part, in the community offering.

If your order was paid for by check, enclosed is your original check.

**Narragansett Bancorp, Inc.** 

Stock Information Center

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund.* 

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**Narragansett Bancorp, Inc.** 

_______ __, 2026

Dear Community Member:

We are pleased to provide you with the enclosed material regarding the stock offering by Narragansett Bancorp, Inc., the proposed holding company for BayCoast Bank.

Piper Sandler & Co. is acting as marketing agent in connection with the subscription and community offerings. If you decide to subscribe for shares, your properly completed stock order form, together with payment for the shares, must be physically received (not postmarked) by Narragansett Bancorp, Inc. no later than _:00 p.m., Eastern Time, on [expiration date].

If you have any questions about the offering, please do not hesitate to call the Stock Information Center at (___) ___-___, Monday through Friday, between the hours of 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed on bank holidays.

Piper Sandler &Co.

*The shares of common stock are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund. This is not an offer to sell or a solicitation of an offer to buy common stock. The offer is made only by the prospectus.* 

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**Narragansett Bancorp, Inc. (Logo)** 

**Narragansett Bancorp, Inc.** 

**Commences Stock Offering** 

Narragansett Bancorp, Inc., the proposed holding company for BayCoast Bank, is offering shares of its common stock for sale in a stock offering.

Shares of Narragansett Bancorp, Inc. common stock are being offered for sale at a price of $10.00 per share. As a member of the community served by BayCoast Bank, you may have the opportunity to purchase shares in the offering.

If you would like to learn more about our stock offering, we invite you to obtain a prospectus and offering material by calling our Stock Information Center at (___) ___-____, Monday through Friday between the hours of 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed on bank holidays.

*The shares of common stock being offered are not savings accounts or deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency or the Depositors Insurance Fund. This is not an offer to sell or a solicitation of an offer to buy common stock. The offer is made only by the prospectus.*

## Exhibit 99.5

**Exhibit 99.5** 

A properly completed original stock order form must be used to subscribe for common stock.

Please read the Stock Ownership Guide Instructions as you complete this form.

<br>**Narragansett Bancorp, Inc.** <br> **Subscription & Community Offering** <br> **Stock Order Form** <br>

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; STOCK ORDER **DEADLINE**<br>**<u> </u>day, [Expiration Date]**<br> **at<u> </u>12:00 noon Eastern Time**<br> **(Received not postmarked)** | STOCK ORDER **DELIVERY**<br>If By Hand Delivery (Drop Box)<br> **BayCoast Bank**<br> **330 Swansea Mall Drive, Swansea, MA 02777** | STOCK ORDER **DELIVERY**<br>If By Overnight Delivery<br> **BayCoast Bank Stock Order Return**<br> **575 Jericho Tpke., Ste. 101, Jericho, NY 11753**<br> **(xxx) xxx-xxxx** |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(1) SHARES**<br>|  | **(2) TOTAL PAYMENT DUE**<br>| | **Purchase Limitations (see instructions and the Prospectus)** | **Purchase Limitations (see instructions and the Prospectus)** | **Purchase Limitations (see instructions and the Prospectus)** |
|  ![LOGO](g122170g15a15.jpg)  | *Subscription*<br> *Price*<br> **X 10.00 =** | ![LOGO](g122170g15a16.jpg) ![LOGO](g122170g15a15.jpg) |  | **Minimum** | **Maximum** | **Maximum <u>for associates or group</u>** |
|  ![LOGO](g122170g15a15.jpg)  | *Subscription*<br> *Price*<br> **X 10.00 =** | ![LOGO](g122170g15a16.jpg) ![LOGO](g122170g15a15.jpg) | . **00**<br>| 25 shares<br> **$**250 | 30,000 shares **$**300,000 | 50,000 shares <br> **$**500,000 |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(3)** Check here if you are a BayCoast Bank or Narragansett Financial Corporation: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(3)** Check here if you are a BayCoast Bank or Narragansett Financial Corporation: |
| &nbsp;&nbsp;&nbsp; ![LOGO](g122170g15a18.jpg)  | **EMPLOYEE, OFFICER, DIRECTOR, TRUSTEE, CORPORATOR** *or* **RELATIVE of such person** *as defined on the reverse side* |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; **(4) CHECK PAYMENT** | Enclosed is a check, bank draft or money order in the amount indicated. | Payable to Narragansett Bancorp, Inc. | **Total Check Amount**<br> **Enclosed** | ![LOGO](g122170g15a16.jpg) ![LOGO](g122170g15a15.jpg) | . **00**<br>|

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**(5) WITHDRAWAL PAYMENT** | There is no early withdrawal penalty for this form of payment. You may not designate withdrawal from BayCoast Bank accounts with check-writing privileges; instead, please submit a check. Individual Retirement Accounts maintained at BayCoast Bank cannot be used for this form of payment.<br> The <u>undersigned</u> authorizes withdrawal from the following account(s) at BayCoast Bank. | There is no early withdrawal penalty for this form of payment. You may not designate withdrawal from BayCoast Bank accounts with check-writing privileges; instead, please submit a check. Individual Retirement Accounts maintained at BayCoast Bank cannot be used for this form of payment.<br> The <u>undersigned</u> authorizes withdrawal from the following account(s) at BayCoast Bank. | There is no early withdrawal penalty for this form of payment. You may not designate withdrawal from BayCoast Bank accounts with check-writing privileges; instead, please submit a check. Individual Retirement Accounts maintained at BayCoast Bank cannot be used for this form of payment.<br> The <u>undersigned</u> authorizes withdrawal from the following account(s) at BayCoast Bank. | There is no early withdrawal penalty for this form of payment. You may not designate withdrawal from BayCoast Bank accounts with check-writing privileges; instead, please submit a check. Individual Retirement Accounts maintained at BayCoast Bank cannot be used for this form of payment.<br> The <u>undersigned</u> authorizes withdrawal from the following account(s) at BayCoast Bank. | There is no early withdrawal penalty for this form of payment. You may not designate withdrawal from BayCoast Bank accounts with check-writing privileges; instead, please submit a check. Individual Retirement Accounts maintained at BayCoast Bank cannot be used for this form of payment.<br> The <u>undersigned</u> authorizes withdrawal from the following account(s) at BayCoast Bank. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Bank Use | <br> **Account #**<br> **To Withdraw**<br>| ![LOGO](g122170g15a15.jpg)  | <br> **Withdrawal**<br> **Amount**<br>| ![LOGO](g122170g15a16.jpg) ![LOGO](g122170g15a15.jpg) <br>| . **00**<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Bank Use | <br> **Account #**<br> **To Withdraw**<br>| ![LOGO](g122170g15a15.jpg)  | <br> **Withdrawal**<br> **Amount**<br>| ![LOGO](g122170g15a16.jpg) ![LOGO](g122170g15a15.jpg) <br>| . **00**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(6) PURCHASER INFORMATION**<br>

---

| | | | |
|:---|:---|:---|:---|
| **Subscription Offering** | **Check only the <u>first</u> box** below that applies to the purchaser(s) in Item 7. | **Community Offering** | **Check <u>one</u> box below** if a or b does not apply to the purchaser(s) in Item 7. |

---

---

| | | | |
|:---|:---|:---|:---|
|  ![LOGO](g122170g15a17.jpg)  | a. The purchaser(s) had a deposit account(s) at BayCoast Bank totaling $50 or more on **May 31, 2025** ("Eligible Account Holder"). | ![LOGO](g122170g15a17.jpg)  | c. The purchaser(s) **RESIDES** in one of the MA or RI cities and towns listed on the reverse side. <u>Indicate city or town of residence here</u>: |
|  ![LOGO](g122170g15a17.jpg)  | b. The purchaser(s) is an employee, officer, director, trustee or corporator of BayCoast Bank, Narragansett Bancorp, Inc. or Narragansett Financial Corporation and <u>is not</u> an Eligible Account Holder. | ![LOGO](g122170g15a17.jpg)  | d. The purchaser(s) **DOES NOT RESIDE** in one of the cities and towns. |
|  | b. The purchaser(s) is an employee, officer, director, trustee or corporator of BayCoast Bank, Narragansett Bancorp, Inc. or Narragansett Financial Corporation and <u>is not</u> an Eligible Account Holder. |  |  |
| **Account Information** - List below all accounts the purchaser had an ownership interest as of May 31, 2025. Failure to list all your eligible accounts, or providing incorrect information, may result in the loss of part or all of your subscription rights. **Additional space on reverse side at Item 6.** | **Account Information** - List below all accounts the purchaser had an ownership interest as of May 31, 2025. Failure to list all your eligible accounts, or providing incorrect information, may result in the loss of part or all of your subscription rights. **Additional space on reverse side at Item 6.** | **Account Information** - List below all accounts the purchaser had an ownership interest as of May 31, 2025. Failure to list all your eligible accounts, or providing incorrect information, may result in the loss of part or all of your subscription rights. **Additional space on reverse side at Item 6.** | **Account Information** - List below all accounts the purchaser had an ownership interest as of May 31, 2025. Failure to list all your eligible accounts, or providing incorrect information, may result in the loss of part or all of your subscription rights. **Additional space on reverse side at Item 6.** |

---

---

| | |
|:---|:---|
| Qualifying<br> Account #<br> of Purchaser | <br> Names(s)<br> on Account |
| Qualifying<br> Account #<br> of Purchaser | <br> Names(s)<br> on Account |

---

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(7) STOCK OWNERSHIP REGISTRATION (to appear on stock registration statement) Please provide all requested information.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adding or deleting a name or otherwise altering the form of beneficial ownership of a qualifying account will result in a loss of your subscription rights (with certain exceptions for IRA, Keogh, 401(k) or similar plan purchases). |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Form of Ownership (check <u>one</u> box and indicate SS# or Tax ID#)** | **Form of Ownership (check <u>one</u> box and indicate SS# or Tax ID#)** | **Form of Ownership (check <u>one</u> box and indicate SS# or Tax ID#)** | **Form of Ownership (check <u>one</u> box and indicate SS# or Tax ID#)** | **Form of Ownership (check <u>one</u> box and indicate SS# or Tax ID#)** | **Form of Ownership (check <u>one</u> box and indicate SS# or Tax ID#)** | **Form of Ownership (check <u>one</u> box and indicate SS# or Tax ID#)** | <br>**IRA / QUALIFIED PLAN ORDER**<br>![LOGO](g122170g15a18.jpg) IRA or other qualified plan |  |
|  ![LOGO](g122170g15a18.jpg)  | Individual | ![LOGO](g122170g15a18.jpg)  | Uniform Transfers to Minors Act (minor SS#) | ![LOGO](g122170g15a18.jpg)  | Business (co., corp.) | **SS/Tax ID#**<br> **<u>Reporting</u> ![LOGO](g122170g15a15.jpg)**  | **TTEE Tax ID# ![LOGO](g122170g15a15.jpg)** |  |
|  ![LOGO](g122170g15a18.jpg)  | Joint Tenants<br>| ![LOGO](g122170g15a18.jpg)  | Tenants<br> In Common | ![LOGO](g122170g15a18.jpg)  | Fiduciary (trust, estate) | **SS/Tax ID# Other ![LOGO](g122170g15a15.jpg)** | **Owner SS# ![LOGO](g122170g15a15.jpg)** | - |

---

---

| |
|:---|
| **Registration** |
| Name ![LOGO](g122170g15a15.jpg)  |
| <br> Name ![LOGO](g122170g15a15.jpg)  |

---

---

| | | | |
|:---|:---|:---|:---|
| **Address**<br>Street ![LOGO](g122170g15a15.jpg)  | | | **Telephone**<br> Day<br>|
| City ![LOGO](g122170g15a15.jpg)  | <br> State<br>![LOGO](g122170g15a15.jpg)  | <br> Zip code<br>![LOGO](g122170g15a15.jpg)  | <br> Evening |

---

---

| | | |
|:---|:---|:---|
|  **(8)**<br>![LOGO](g122170g15a17.jpg)  | **ASSOCIATES / ACTING IN CONCERT**<br>**(Definitions on reverse side)**<br> Check here if you, or any associates or persons acting in concert with you, have submitted other orders for shares. **If you checked this box, complete reverse side.**<br>| **(9) ACKNOWLEGEMENT** - To be effective, this stock order form must be properly completed and physically received (not postmarked) by Narragansett Bancorp, Inc. no later than 12:00 noon, Eastern Time, on [expiration date], unless extended; otherwise this stock order form and all subscription rights will be void. The undersigned agrees that after receipt by Narragansett Bancorp, Inc., this stock order form may not be modified, withdrawn or canceled without Narragansett Bancorp, Inc.'s consent and if authorization to withdraw from deposit accounts at BayCoast Bank has been given as payment for shares, the amount authorized for withdrawal shall not otherwise be available for withdrawal by the undersigned. **(continued on reverse side)** |
| **By signing below, I also acknowledge that I have read the Certification Form & Acknowledgement continued on the reverse side of this form (Item 9).** | **By signing below, I also acknowledge that I have read the Certification Form & Acknowledgement continued on the reverse side of this form (Item 9).** | **By signing below, I also acknowledge that I have read the Certification Form & Acknowledgement continued on the reverse side of this form (Item 9).** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Signature**<br>![LOGO](g122170g13b33.jpg)  | **Date** | **Signature**<br>![LOGO](g122170g13b33.jpg)  | **Date** |

---

------

---

| | | |
|:---|:---|:---|
| **ITEM (6) PURCHASER INFORMATION (continued from reverse side)** | **ITEM (6) PURCHASER INFORMATION (continued from reverse side)** | **ITEM (6) PURCHASER INFORMATION (continued from reverse side)** |
| Bank Use | Qualifying Account Number(s) continued | Names(s) Account continued |

---

**<u>Community Offering Preferred Cities/Towns in Massachusetts and Rhode Island</u> –**<br>**In Massachusetts:** Acushnet, Attleboro, Avon, Bellingham, Berkley, Braintree, Brookline, Canton, Cohasset, Dartmouth, Dedham, Dighton, Dover, Easton, Fairhaven, Fall River, Foxborough, Franklin, Freetown, Holbrook, Mansfield, Medfield, Medway, Millis, Milton, Needham, New Bedford, Norfolk, North Attleboro, Norton, Norwood, Plainville, Quincy, Randolph, Raynham, Rehoboth, Seekonk, Sharon, Somerset, Stoughton, Swansea, Taunton, Walpole, Wellesley, Westport, Westwood, Weymouth and Wrentham. **In Rhode Island:** Barrington, Bristol, Burrillville, Central Falls, Cranston, Cumberland, East Providence, Foster, Glocester, Jamestown, Johnston, Lincoln, Little Compton, Middletown, Newport, North Providence, North Smithfield, Pawtucket, Portsmouth, Providence, Scituate, Smithfield, Tiverton, Warren and Woonsocket.<br> **ITEM (8) ASSOCIATES / ACTING IN CONCERT (continued from reverse side)**<br> If you checked the box in Item 8 on the reverse side of this form, list below all other orders submitted by you or your associates (as defined below) or by persons acting in concert with you (also defined below).<br>

---

| | | | |
|:---|:---|:---|:---|
| Name(s) listed on **other stock order forms submitted** | <br> Number of shares <u>ordered</u>  | Name(s) listed on **other stock order forms submitted** | <br> Number of shares <u>ordered</u> |

---

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **<u>Associate</u>** – The term "associate" of a particular person means:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a corporation or organization, other than BayCoast Bank, Narragansett Bancorp, Inc., Narragansett Financial Corporation or any majority-owned subsidiary of these entities, of which a person is a senior officer or partner or is, directly or indirectly, the beneficial owner of 10% or more of any class of equity securities of such corporation or organization;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a trust or other estate in which a person has a substantial beneficial interest or as to which a person serves as a trustee or a fiduciary; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any person who is related by blood or marriage to such person and who lives in the same home as such person or who is a corporator, director, trustee or officer of BayCoast Bank or Narragansett Financial Corporation.<br>**<u>Acting in concert</u>** – The term "acting in concert" means persons seeking to combine or pool their voting or other interests (such as subscription rights) in the securities of an issuer for a common purpose pursuant to any contract, understanding, relationship, agreement or other arrangement, whether written or otherwise.<br>In general, a person who acts in concert with another party will also be deemed to be acting in concert with any person who is also acting in concert with that other party.<br>We may presume that certain persons are acting in concert based upon various facts, including, among other things, joint account relationships, common address on our records, or that such persons may have filed joint Schedules 13D or 13G with the Securities and Exchange Commission with respect to other companies. For purposes of the plan of conversion, our directors are not deemed to be acting in concert solely by reason of their board membership. Unless we determine otherwise, spouses, persons having the same address and persons exercising subscription rights through qualifying accounts registered to the same address will be presumed to be acting in concert.<br>**<u>Officer</u>** – The Chairman of the Board, the Chief Executive Officer, the President, any officer of the level of vice president or above (but not an assistant vice president, or other vice president having authority similar to an assistant or second vice president), the Secretary, the Clerk and the Treasurer of BayCoast Bank, Narragansett Bancorp, Inc., or Narragansett Financial Corporation as the case may be.<br>**<u>Relative</u>** – The term "relative" means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and includes adoptive relationships. |
| **ITEM (9) ACKNOWLEGEMENT & SIGNATURE (continued from reverse side)**<br> Under penalty of perjury, I hereby certify that the Social Security or Tax ID Number and the information provided on this stock order form are true, correct and complete and that I am not subject to back-up withholding. It is understood that this stock order form will be accepted in accordance with, and subject to, the terms and conditions of the Plan of Holding Company Reorganization and Plan of Stock Issuance of BayCoast Bank described in the accompanying prospectus. **Federal regulations prohibit any person from transferring, or entering into any agreement, directly or indirectly, to transfer the legal or beneficial ownership of subscription rights or the underlying securities to the account of another. BayCoast Bank, Narragansett Financial Corporation, and Narragansett Bancorp, Inc. will pursue any and all legal and equitable remedies in the event they become aware of the transfer of subscription rights and will not honor orders known by them to involve such transfer. Under penalty of perjury, I certify that I am purchasing shares solely for my account and that there is no agreement or understanding regarding the sale or transfer of such shares, or my right to subscribe for shares.** |

---

---

| | |
|:---|:---|
|  **CERTIFICATION FORM**<br> **I ACKNOWLEDGE THAT THIS SECURITY IS NOT A DEPOSIT OR SAVINGS ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR BY ANY OTHER GOVERNMENT AGENCY OR THE DEPOSITORS INSURANCE FUND. THE ENTIRE AMOUNT OF AN INVESTOR'S PRINCIPAL IS SUBJECT TO LOSS.**<br> I further certify that, before purchasing the common stock of Narragansett Bancorp, Inc. (the "Company"), I received a prospectus of the Company dated _____ __, 2026 relating to such offer of common stock. The prospectus that I received contains disclosure concerning the nature of the common stock being offered by the Company and describes in the "Risk Factors" section the risks involved in the investment in this common stock, including but not limited to the following: | **CERTIFICATION FORM**<br> **I ACKNOWLEDGE THAT THIS SECURITY IS NOT A DEPOSIT OR SAVINGS ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR BY ANY OTHER GOVERNMENT AGENCY OR THE DEPOSITORS INSURANCE FUND. THE ENTIRE AMOUNT OF AN INVESTOR'S PRINCIPAL IS SUBJECT TO LOSS.**<br> I further certify that, before purchasing the common stock of Narragansett Bancorp, Inc. (the "Company"), I received a prospectus of the Company dated _____ __, 2026 relating to such offer of common stock. The prospectus that I received contains disclosure concerning the nature of the common stock being offered by the Company and describes in the "Risk Factors" section the risks involved in the investment in this common stock, including but not limited to the following: |
| Risks Related to Our Business<br>Risks Related to the Offering<br>| <br> *[insert <u>final</u> text]*<br>|

---

**(By Signing the Front of this Form the Purchaser is Not Waiving Any Rights Under the Federal Securities Laws,**<br> **Including the Securities Act of 1933 and the Securities Exchange Act of 1934)**<br>

------

Narragansett Bancorp, Inc.

**Stock Ownership Guide**<br>

**Individual** 

Include the first name, middle initial and last name of the stockholder. Avoid the use of two initials. Please omit words that do not affect ownership rights, such as "Mrs.", "Mr.", "Dr.", "special account", "single person", etc.

**Joint Tenants** 

Joint tenants with right of survivorship may be specified to identify two or more owners. When stock is held by joint tenants with right of survivorship, ownership is intended to pass automatically to the surviving joint tenant(s) upon the death of any joint tenant. All parties must agree to the transfer or sale of shares held by joint tenants.

**Tenants in Common** 

Tenants in common may also be specified to identify two or more owners. When stock is held by tenants in common, upon the death of one co-tenant, ownership of the stock will be held by the surviving co-tenant(s) and by the heirs of the deceased co-tenant. All parties must agree to the transfer or sale of shares held by tenants in common.

**Uniform Transfers to Minors Act ("UTMA")** 

Stock may be held in the name of a custodian for a minor under the Uniform Transfers to Minors Act of each state. There may be only one custodian and one minor designated on a stock registration statement. The standard abbreviation for Custodian is "CUST", while the Uniform Transfers to Minors Act is "UTMA". Standard U.S. Postal Service state abbreviations should be used to describe the appropriate state. For example, stock held by John Doe as custodian for Susan Doe under the MA Uniform Transfers to Minors Act will be abbreviated John Doe, CUST Susan Doe UTMA MA (use minor's social security number).

**Fiduciaries** 

Information provided with respect to stock to be held in a fiduciary capacity must contain the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name(s) of the fiduciary. If an individual, list the first name, middle initial and last name. If a corporation, list
the full corporate title (name). If an individual and a corporation, list the corporation's title before the individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fiduciary capacity, such as administrator, executor, personal representative, conservator, trustee, committee, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A description of the document governing the fiduciary relationship, such as a trust agreement or court order. Documentation
establishing a fiduciary relationship may be required to register your stock in a fiduciary capacity.

in the description.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name of the maker, donor or testator and the name of the beneficiary.

An example of fiduciary ownership of stock in the case of a trust is: John Doe, Trustee Under Agreement Dated 10-1-93 for Susan Doe.

**Stock Order Form Instructions**<br>

**Items 1 and 2 - Number of Shares and Total Payment Due** 

Fill in the number of shares that you wish to purchase and the total payment due. The amount due is determined by multiplying the number of shares by the subscription price of $10.00 per share. The minimum purchase is 25 shares ($250) of common stock. As more fully described in the plan of conversion outlined in the prospectus, the maximum allowable purchase by a person, entity or group of people through a single account is 30,000 shares ($300,000) of common stock. No person, together with associates and persons acting in concert with such person, may purchase in the aggregate more than 50,000 shares ($500,000) of common stock.

**Item 3 - Employee/Officer/Director/Trustee/Corporator Information** 

Check this box to indicate whether you are an employee, officer, director, trustee or corporator of BayCoast Bank or Narragansett Financial Corporation or relative as defined on back of order form.

**Item 4 - Payment by Check** 

If you pay for your stock by check, bank draft or money order, indicate the total amount in this box. Your check, bank draft or money order must be <u>made payable to Narragansett Bancorp, Inc.</u> Your funds will earn interest at 0.10% until the stock offering is completed or terminated.

**Item 5 - Payment by Withdrawal** 

If you pay for your stock by a withdrawal from a deposit account at BayCoast Bank, indicate the account number(s) and the amount of your withdrawal authorization for each account. **You may not designate withdrawal from BayCoast Bank accounts with check-writing privileges; instead, please submit a check.** The total amount withdrawn should equal the amount of your stock purchase. There will be no penalty assessed for early withdrawals from certificate of deposit accounts used for stock purchases. **This form of payment may not be used if your account is an Individual Retirement Account or similar account.**

**Item 6 - Purchaser Information** 

<u>Subscription Offering</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Check this box if the purchaser had a deposit account(s) at BayCoast Bank totaling $50 or more on May 31, 2025
("Eligible Account Holder").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Check this box if the purchaser is an employee, officer, director, trustee or corporator of BayCoast Bank or Narragansett
Financial Corporation but is not an Eligible Account Holder.

Please list all account numbers and all names on accounts you had on May 31, 2025 in order to insure proper identification of your subscription rights. **Failure to list all your eligible accounts, or providing incorrect information, may result in the loss of part or all of your subscription rights.**

<u>Community Offering</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Check this box if you are submitting an order in the community offering and reside in one of the cities or towns indicated
on the back of the stock order form (Indicate city/town of residence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Check this box if you are submitting an order in the community offering and do not reside in one of the preferred cities
or towns.

**Item 7 - Stock Ownership Registration, Address, SS# or Tax ID#, Telephone Number(s)** 

Check the box that applies to your requested form of stock ownership and indicate your social security or tax ID number(s). Complete the requested stock registration, mailing address and telephone number(s). The stock transfer industry has developed a uniform system of stockholder registrations that will be used in the issuance of your common stock. If you have any questions regarding the registration of your stock, please consult your legal advisor. Stock ownership must be registered in one of the ways described above under "Stock Ownership Guide." **Adding or deleting a name or otherwise altering the form of beneficial ownership of a qualifying account will result in a loss of your subscription rights (with certain exceptions for IRA, Keogh, 401(k) or similar purchases).**

**Item 8 - Associates/Acting in Concert** 

Check this box and complete the reverse side of the stock order form if you or any associates or persons acting in concert with you (as defined on the reverse side of the stock order form) have submitted other orders for shares of Narragansett Bancorp, Inc. common stock.

**Item 9 - Acknowledgement** 

Please review the prospectus carefully before making an investment decision. Sign and date the stock order form where indicated. Before you sign, review the stock order form, including the acknowledgement and certification (continued on the reverse side of the stock order form). Normally, one signature is required. An additional signature is required only when payment is to be made by withdrawal from a deposit account that requires multiple signatures to withdraw funds.

Your properly completed signed stock order form and payment in full (or withdrawal authorization) for the shares must be physically received (not postmarked) by Narragansett Bancorp, Inc. no later than 12:00 noon, Eastern Time, on [expiration date] or it will become void. <u>Delivery Instructions</u>: You may deliver your stock order form <u>by mail</u> using the enclosed postage-paid envelope marked "STOCK ORDER RETURN," <u>by overnight delivery service</u> to the Stock Information Center or <u>by hand delivery</u> (drop box) to the address indicated on the stock order form.

**We will not accept stock order forms at our other offices.**

If you have any additional questions, **<u>or if you would like assistance in completing your stock order form</u>**, please call our Stock Information Center, Monday through Friday, between the hours of 10:00 a.m. and 4:00 p.m., Eastern Time. The Stock Information Center will be closed on bank holidays.

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Narragansett Bancorp, Inc.**  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Security Type**  | **Security Class Title**  | **Fee Calculation or Carry Forward Rule**  | **Amount Registered**  | **Proposed Maximum Offering Price Per Unit**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common stock, $0.01 par value per share | 457(a) | 9522000 | $10.00 | $95220000.00 | 0.0001381 | $13149.88 |
| Fees Previously Paid |  |  |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: |  | $95220000.00  |  | $13149.88  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  |  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  | Net Fee Due:  |  |  |  | $13149.88  |

---

 **Offering Note** <br>

<sup>1</sup> Estimated solely for the purpose of calculating the registration fee. <br>

---

| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---