We Still Think You Need 'Em In Your Portfolio - Virtual Road Takeaways

研报英文原文证据摘录

We Still Think You Need 'Em In Your Portfolio - Virtual Road Takeaways

C O M PA N Y N O T E

J u n e 2 3 , 2 0 2 6

Loan growth should continue to outpace peers as NBBK is focused on taking share and

capitalizing on market disruption. We continue to view NBBK as an attractive growth story,

and in our meetings management reinforced this thinking. The loan pipeline remains very strong

and is supportive of growth in at least the high-single-digit range, if not double-digit. With the city

of Boston continuing to grapple with a pretty severe housing shortage, the bank is benefitting

from surrounding areas (MA's South Shore and North Shore as well as markets like Southern

NH and Rhode Island) that are filling the void and attracting plentiful investment activity. On top

of the physical footprint acquired through the BankProv deal (North Shore and Southern NH)

the company has been active on de novo branching efforts with 4 new locations for 2026. We

think this is a testament to the economic activity NBBK is capitalizing on as management does

not simply believe that "if you build it, they will come." There was also some discussion on the

looming threat of strict rent control being implemented in Massachusetts. In its original form,

the proposed ballot initiative (if no compromise is reached beforehand, and if put up for a vote

in November and passed) would introduce some of the most far-reaching restrictions on rent

increases in the country. Specifically, most state-wide rent increases under the measure would be

capped at the lower of CPI or 5% while vacancy decontrol would be prohibited. Many in the real

estate industry agree this would be extremely damaging and further discourage new investment

and development at a time when the housing shortage is already enough of a problem.