NB Bancorp Delivers Robust Quarter

Despite one-time merger costs, NB Bancorp achieved solid operating performance and launched a share buyback.

January 23, 2026

Strong Finish to 2025 on the Back of a Major Acquisition

NB Bancorp closed out 2025 with momentum—driven by the completed acquisition of Provident Bancorp and solid operating results. The $226.5 million deal, finalized mid-November, brought BankProv under the Needham Bank umbrella and added $1.42 billion in assets, along with $1.23 billion in loans and $1.13 billion in deposits. Integration happened fast: customers were migrated to Needham’s core system that same weekend.

Operating income for the quarter came in at $21.2 million, or $0.51 per share, up from $16.0 million the prior quarter. GAAP net income fell to $7.7 million, reflecting $15.7 million in pre-tax merger costs and $2.1 million in tax-related charges tied to acquired bank-owned life insurance. Still, performance metrics remained strong, with operating return on average assets at 1.35% and operating return on equity at 10.51%.

Net interest income rose 22% to $58.8 million, supported by a 14-basis-point expansion in net interest margin. Total assets climbed to $7.01 billion —up nearly 29% from the previous quarter. Loan balances also moved higher, reaching $5.90 billion, with notable growth across commercial real estate, mortgage warehouse, and multi-family segments.

Deposit Growth, Shareholder Actions, and Strategic Positioning

On the funding side, total deposits increased by $1.29 billion, with core deposits rising 27.3% and brokered deposits up nearly 38%.

NB Bancorp also announced a new share repurchase program authorizing the buyback of up to 2.29 million shares —about 5% of those currently outstanding. A quarterly dividend of $0.07 per share was declared, payable February 19, 2026.

The Provident transaction brought new capabilities and broader reach in southern New Hampshire. Book value dilution came in lighter than expected at 5.3%, and merger-related costs landed $2.4 million below forecast. The addition of Provident’s loan and deposit base helped expand market presence, while early integration steps positioned the combined team to hit the ground running in 2026.

Focus on Credit Quality

Credit quality remained in focus. Non-performing loans rose to $43.4 million, primarily due to acquired commercial and industrial exposures, but overall asset quality trends remained within expected ranges. NB also exited two cannabis-related lending relationships during the quarter as part of its ongoing credit risk review.

As 2026 begins, NB Bancorp enters with scale, capacity, and a platform built to grow. The merger was a key milestone—but the broader takeaway is execution. From balance sheet growth to operational follow-through, the quarter underscored the bank’s ability to move decisively.