Narragansett Bancorp, Inc. reported net income of $4.4 million for the three months ended September 30, 2026, an increase of $954,000 compared to the prior quarter. The company attributes this growth to a $1.4 million rise in net interest income and a $1.1 million decrease in the provision for credit losses, partially offset by a $1.2 million drop in non-interest income and a $929,000 increase in income tax expense.
Total assets at September 30, 2026, stood at $2.96 billion, a 3.1% increase from the prior quarter. This growth was driven by a $45.2 million increase in cash and cash equivalents, which totaled $98.0 million, due to proceeds from a minority stock offering held in escrow. Gross loans increased by $21.6 million to $2.3 billion, with gains in home equity loans and residential real estate loans partially offset by declines in consumer and commercial loans. Deposits rose by $125.6 million to $2.6 billion, largely due to an increase in demand deposits.
The company’s net interest margin expanded to 3.42% for the quarter, a 21 basis point improvement from the prior period. Asset quality metrics also improved, with the provision for credit losses decreasing by $1.1 million. The allowance for credit losses to total loans was 1.31%, and non-performing loans as a percentage of total loans decreased to 1.55% from 1.90% in the prior quarter.
