Capital Region Banking Giants to Merge, Creating $1.4 Billion Entity

BALLSTON SPA, N.Y. & COXSACKIE, N.Y. – March 23, 2026 – A new and formidable regional banking player is set to emerge in New York's Capital Region after shareholders of Ballston Spa Bancorp, Inc. (OTCQX: BSPA) and NBC Bancorp, Inc. (OTCID: NCXS) overwhelmingly approved a strategic merger today. This final green light follows the receipt of all necessary regulatory approvals, paving the way for the transaction to close as anticipated on April 1, 2026.

The merger will combine Ballston Spa National Bank (BSNB) and The National Bank of Coxsackie (NBC), creating a unified institution with an estimated $1.44 billion in assets. The deal, first announced on September 24, 2025, marks a significant consolidation in the local banking landscape, promising to enhance competitive scale while maintaining a community-focused approach.

Under the terms of the agreement, NBC Bancorp and its subsidiary bank will merge into Ballston Spa Bancorp and its banking arm, with the BSNB charter surviving. NBC shareholders will receive 0.8065 shares of BSNB common stock for each share of NBC stock they hold. Following the merger's completion, current BSNB shareholders will own approximately 66% of the combined company, with NBC shareholders holding the remaining 34%.

A New Regional Powerhouse is Forged

The combination of these two historic New York banks creates an institution with a significantly expanded operational footprint and financial capacity. The pro forma combined asset base of approximately $1.44 billion, calculated from year-end 2025 financial reports, surpasses the initial $1.3 billion projection, indicating a strong financial foundation for the new entity.

The merged bank will operate a network of 21 branches, combining BSNB's 13 locations with NBC's 8. This creates a contiguous and expanded service area stretching across Saratoga, Albany, Greene, and Schoharie counties. The move provides BSNB with a new entry into Greene and Schoharie counties while deepening its existing presence in the competitive Albany County market.

To maintain local identity and brand recognition, the companies have announced that the existing National Bank of Coxsackie locations will operate under the name "Coxsackie Bank, a division of Ballston Spa National Bank." This branding strategy aims to reassure customers of continued local commitment while integrating the operations into the larger BSNB framework. The combined workforce is estimated to be around 211 employees, uniting the talent and local expertise of both organizations.

Strategic Synergies and Financial Fortitude

The merger is strategically designed to create a stronger, more resilient bank capable of thriving in an increasingly competitive financial sector. Executives from both companies have emphasized that the increased scale will provide a larger market capitalization, a greater lending limit, and enhanced liquidity, unlocking value for shareholders and creating new opportunities for growth.

To further bolster its capital position and fund future expansion, Ballston Spa Bancorp has announced its intention to raise approximately $20 million in subordinated debt before the merger closes. This capital injection is earmarked for pursuing new growth opportunities that a larger balance sheet enables, including more significant lending and investment activities across the expanded market area.

Both institutions enter the merger from a position of financial stability. As of the end of 2025, Ballston Spa Bancorp reported total assets of $928.5 million and a solid Tier 1 Capital Ratio of 10.63%. Similarly, NBC Bancorp reported assets of $511.8 million and a robust Tier 1 Capital Ratio of 17.17%, having recently completed a balance sheet repositioning in late 2023 to improve its future earnings potential. This financial health is expected to provide a strong platform for the combined entity's future performance.

The Impact on Local Customers and Communities

For customers of both banks, the merger is being positioned as a significant enhancement of services and convenience. The combined entity has promised a broader range of financial products, deeper lending capacity for personal and commercial loans, and access to enhanced digital banking tools. The integration of the branch networks means customers will have access to 21 locations and an expanded surcharge-free ATM network across the Capital Region.

Leadership has stressed a shared commitment to maintaining the high-touch, personalized customer service that is a hallmark of community banking. In joint statements, the banks have highlighted that combining their strengths will create a competitive edge to better serve customers across the region, from individual account holders to small and large businesses.

Furthermore, the merger is expected to amplify the banks' long-standing traditions of community support. Both BSNB and The National Bank of Coxsackie have deep roots in local philanthropy. BSNB is known for its annual Community Support Day, which mobilizes employees for volunteer work, while NBC has a consistent record of supporting local organizations like the Regional Food Bank and The Olana Partnership. The stated goal is to "extend our philanthropic reach," suggesting that the larger, more profitable institution will be ableto dedicate even greater resources to nonprofits, schools, and community initiatives throughout its broader service area.

Consolidation in the Capital Region's Banking Scene

This merger is a prime example of the ongoing consolidation trend sweeping the regional and community banking sector across the United States. Smaller financial institutions are increasingly joining forces to achieve the scale necessary to compete with national banking giants, manage rising regulatory costs, and fund the significant technological investments required in modern banking.

By combining, Ballston Spa National Bank and The National Bank of Coxsackie are proactively positioning themselves to handle these industry pressures. The creation of a $1.44 billion institution gives them a more substantial competitive posture within the Capital Region, allowing them to offer a suite of products and a lending capacity that can better challenge larger competitors. The smooth journey through the regulatory approval process, which concluded in February, and today's final shareholder approval signal that both regulators and investors see the strategic logic in forming a stronger, more diversified regional bank. As the April 1 closing date approaches, the focus now shifts to the operational integration of the two banks and delivering on the promise of creating a premier community banking institution for the future.