NBID Board of Directors One-Year Network Update

We are writing on behalf of the NBID Board of Directors following our Q2 2026 board meeting, held on July 29th, 2026. This letter also marks a major milestone: roughly a year has passed since we launched NBID to serve as the bank-owned reciprocal deposit network. One year later, we are proud to share this recap with our current network of 775+ member banks across the United States, as well as every bank that is in process or considering joining NBID. NBID’s bank list can be found here.

As a reminder, NBID is a bank-owned deposit network formed to provide banks with oversight and alignment with their reciprocal deposit infrastructure and realize the associated economic benefits. NBID provides reciprocal deposits, deposit sweeping, and deposit funding services to its member banks. Pricing is in the 2 to 5 bps range depending on tier and usage, well below legacy alternatives. An NBID member with $1bn in reciprocal deposits can save $1mm+ in their first year by transitioning their reciprocal program to NBID. Additionally, every member bank that leverages the platform participates in NBID’s profit share. The NBID Board of Directors has now met four times over the last year to ensure NBID remains aligned to deliver for its member banks.

One year in, the network’s growth has exceeded even our own expectations. Since NBID’s inception in May of 2025, the network has grown to 775+ member banks today; NBID members hold $3.2 trillion in deposits and $245 billion in reciprocal deposits on their balance sheets. Outside of its members, NBID has been fortunate to partner with many visionary organizations across the industry. NBID is a Premier Partner of the American Bankers Association’s Partner Network, a Principal Partner of the Mid-Size Bank Coalition of America, and partnered with 40+ state bankers associations across the country. From a network scale perspective, NBID continues to accelerate at a rapid pace as more and more of the 775+ member banks onboard and flow deposits through the network. None of this is possible without the trust member banks have placed in a network they themselves govern.

We are particularly encouraged by the recent 21st Century ROAD to Housing Act legislation that marks a major milestone for NBID member banks and the reciprocal market (NBID’s formal press release on the Act can be found here). The Act further validates the need for NBID and our view that reciprocal deposits serve as a complement to any future deposit insurance reform. The primary impacts of the Act are twofold. The first substantially expands the amount of reciprocal deposits a bank may classify as non-brokered, subject to certain conditions. The second creates for the first time a non-brokered exception for “custodial deposits” that may allow well-capitalized banks under $10 billion in assets to treat up to 20% of one-way sourced deposits from NBID as core funding, subject to other qualifying criteria. NBID is dedicated to educating its members on this legislation’s direct impact to their institutions and will keep the network informed as regulatory guidance develops.

With the passing of the Act, reciprocal deposits have become foundational banking infrastructure, and every bank now faces a practical question: who should own the infrastructure they rely on? The financial system’s most important utilities, including Visa at formation, DTCC, SWIFT, and The Clearing House, were built as coalitions owned by their member institutions. NBID brings the same model to reciprocal deposits.

Momentum shows up best in the results our member banks are seeing. 280+ banks have successfully onboarded with NBID today and many have transitioned hundreds of millions into the network to take advantage of the product and economic benefits. We are proud to spotlight several success stories our members have shared this year, including ConnectOne Bank, Mission Valley Bank, Liberty Bank of New Jersey, First National Bank of Oklahoma, OceanFirst Bank, and TransPecos Banks. You can read all of these stories, and more as they are published, at nbid.com/success-stories.

On the product side, NBID has completed direct integrations with the industry’s major core providers, with additional feature and functionality enhancements expected this quarter. We have also rolled out white-labeled, institution-branded depositor portals, so your customers experience your bank’s brand at every step from onboarding to their monthly statement. NBID remains dedicated to innovating and enhancing the experience for both member bank operators and end depositors. The board encourages banks to provide product feedback as the NBID team has proven it can implement and execute new features quickly to benefit members.

Coming out of our Q2 2026 board meeting, NBID will:

• Continue growing the network from 775+ member banks today toward 1,000+ by the end of the year
• Keep pricing fair to ensure beneficial economics for member banks
• Educate the network on the 21st Century ROAD to Housing Act and its implications for members’ reciprocal and balance sheet strategy
• Deepen core integrations and expand branded, white-labeled portal and embedded depositor experience capabilities across the network

We remain incredibly proud of what NBID member banks have built together in a single year. The value of a reciprocal network has always been the banks themselves, and NBID exists so member banks can benefit from the network they power. If your institution is in process or interested in joining NBID, we would love to hear from you. Please reach out to NBID at contact@nbid.com or call (332) 333-1069.

Sincerely,
The NBID Board of Directors