Executive Summary

PB Bankshares delivered stable Q3 2025 results: net income $0.519M and diluted EPS $0.22, with net revenue of ~$3.62M, reflecting continued margin expansion and disciplined credit costs .
Net interest margin rose to 2.97% (+40bps YoY; +9bps QoQ), driven by lower funding costs and higher asset yields; noninterest expenses rose on merger costs with Norwood .
Credit quality remained benign: non-performing loans fell to $0.877M (0.25% of loans), ACL held at 1.26% of loans; no securities credit losses .
Company did not file a Q3 2025 8‑K 2.02 or hold a call; analysis is based on the Q3 2025 Form 10‑Q and prior quarters; Street consensus via S&P Global was unavailable for EPS and revenue .
Strategic catalyst remains the pending Norwood merger (expected close Q1 2026), with quarter showing early integration costs; potential medium-term cost synergies post-close .

What Went Well and What Went Wrong

What Went Well
- Net interest margin expanded to 2.97% on better asset yields and repricing of deposits; net interest income rose to $3.377M .
- Credit metrics improved: NPLs declined to $0.877M (0.25% loans), and ACL remained steady at 1.26%, with no securities ACL recorded .
- Commercial real estate growth continued, increasing loans to $229.5M (+$24.4M YTD), supporting interest income growth .
What Went Wrong
- Noninterest expenses increased to $2.895M, primarily due to $0.335M merger expenses; tax rate rose on nondeductible items, pushing income tax to $0.211M .
- Noninterest income decreased YoY (-$31k to $243k) as equity gains and other service charges softened .
- No earnings press release (8‑K 2.02) or call transcript reduced disclosure clarity and near-term investor engagement .

Metric	Q3 2024	Q2 2025	Q3 2025
Net Revenue ($USD Millions)	$3.100 (Net Interest $2.826 + Noninterest $0.274)	$3.554 (Net Interest $3.273 + Noninterest $0.281)	$3.620 (Net Interest $3.377 + Noninterest $0.243)
Diluted EPS ($USD)	$0.18	$0.27	$0.22
Net Income ($USD Millions)	$0.404	$0.640	$0.519
Net Interest Margin %	2.57%	2.88%	2.97%
Noninterest Expenses ($USD Millions)	$2.551	$2.702	$2.895

Segment/loan composition (gross loans):

Loans ($USD Millions)	Q2 2025	Q3 2025
One- to four-family residential	$105.309	$105.631
Commercial real estate	$226.801	$229.528
Construction	$7.287	$3.761
Commercial & industrial	$16.475	$15.752
Consumer & other	$2.560	$2.484
Total gross loans	$358.432	$357.156

Key KPIs:

KPI	Q3 2024	Q2 2025	Q3 2025
NPLs / Total Loans (%)	0.32%	0.25%	0.25%
ACL / Loans (%)	1.27%	1.25%	1.26%
Deposits ($USD Millions)	$354.190 (12/31/24 reference)	$363.421	$355.039
FHLB Borrowings ($USD Millions)	$42.460 (12/31/24 reference)	$43.882	$43.591

Metric	Period	Previous Guidance	Current Guidance	Change
Operational guidance	Q4 2025/Q1 2026	None provided	None provided	Maintained
Merger closing timeline	Q1 2026	Close in Q4 2025/early Q1 2026 (prior)	Expected to close in Q1 2026	Updated timeline emphasis

No explicit revenue, margin, OpEx, OI&E, or tax guidance was provided; tax expense increased due to nondeductible merger costs in the quarter .

No Q3 2025 earnings call transcript available; themes below derive from MD&A across quarters.

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
Net interest margin trajectory	NIM 2.85% (Q1), 2.88% (Q2); expansion from funding cost declines	NIM 2.97%; continued expansion on asset yields and deposit repricing	Improving
Deposit mix & pricing	Certificates up; transaction accounts down; pricing pressure moderating (Fed cuts)	Certificates repricing lower; transaction account costs down; average deposit costs declined	Easing funding costs
Loan growth (CRE focus)	CRE growth underpinning interest income; construction converting to CRE	CRE +$24.4M YTD; construction down as projects complete	Mix shifting to CRE
Credit quality	NPLs ~0.31% (Q1), 0.25% (Q2); ACL ~1.25%	NPLs 0.25%; ACL 1.26%; benign trends	Stable/positive
Merger-related costs	Not present in Q1/Q2 OpEx (Q2 had no merger expense)	$0.335M merger expenses in OpEx	Temporary OpEx headwind

“Net interest margin increased 40 basis points to 2.97% for the three months ended September 30, 2025 from 2.57% for the three months ended September 30, 2024.”
“Noninterest expenses increased $344,000… primarily the result of increases in merger expenses of $335,000 and salaries and employee benefits of $91,000.”
“Commercial real estate loans increased $24.4 million, or 11.9%, to $229.5 million at September 30, 2025 from $205.2 million at December 31, 2024.”
“Non-performing loans were $877,000, or 0.25% of total loans… During the nine months ended September 30, 2025, the payments and payoffs on nonaccrual loans resulted in the decrease in overall nonaccrual loans.”

No earnings call transcript was available for Q3 2025; no Q&A details to report .

S&P Global consensus estimates for Q3 2025 EPS and revenue were unavailable; as a result, beat/miss analysis versus Street cannot be determined. Values retrieved from S&P Global.*
Actual net revenue approximated $3.62M based on net interest income plus noninterest income from the 10‑Q .
Note: S&P “Revenue Consensus Mean” returned only actuals for Q3 2025 without consensus values; EPS consensus was unavailable. Values retrieved from S&P Global.*

Margin expansion remains the primary earnings driver; with Fed cuts filtering through deposit pricing, PB Bankshares posted a NIM of 2.97% while net interest income grew YoY/QoQ .
Credit remains a strength: NPLs at 0.25% and ACL at 1.26% of loans provide resilience amid CRE concentration growth, with benign delinquency trends .
Operating expense pressure is transitory: elevated Q3 OpEx reflects $0.335M merger costs; underlying expense trajectory ex-merger appears manageable .
Deposit mix and cost are normalizing: certificates repricing lower and transaction account costs declining should support continued spread and NIM improvement into coming quarters .
Loan mix shift toward CRE boosts interest income but warrants ongoing monitoring of concentrations and stress testing; management is proactively segmenting and testing CRE exposures .
The Norwood merger is the key medium-term catalyst; closing expected Q1 2026 with potential cost synergies thereafter; interim merger costs will weigh on near-term OpEx .
Data disclosure is limited this quarter (no 8‑K results press release or call); investors should rely on the 10‑Q for detail and monitor subsequent filings/merger updates .