NB Bancorp, Inc. Reports Fourth Quarter 2025 Financial Results, Declares Quarterly Cash Dividend, Announces Share Repurchase Plan

View all news 01/22/2026 , /PRNewswire/ -- NB Bancorp, Inc. (the "Company") (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the "Bank"), today announced its fourth quarter 2025 financial results. The Company reported net income of $7.7 million, or $0.19 per diluted common share, compared to net income of $15.4 million, or $0.43 per diluted common share, for the prior quarter. Operating net income(1), excluding one-time charges, amounted to $21.2 million, or $0.51 per diluted common share, compared to operating net income(1) of $16.0 million, or $0.45 per diluted common share for the prior quarter. The primary difference between net income and operating net income(1) for the fourth quarter of 2025 was merger and acquisition costs of $15.7 million (pre-tax) related to the Company's completed acquisition of Provident Bancorp, Inc. ("Provident") and its subsidiary, BankProv, on November 15, 2025, and $2.1 million of tax expense and modified endowment contract penalty related to the surrender of bank-owned life insurance ("BOLI") policies acquired from BankProv. "The fourth quarter was a monumental quarter for Needham Bank as a result of the merger with Provident. During the same weekend that the merger closed, we converted BankProv customers onto our core system. The team, comprised of both Needham Bank and BankProv employees, worked diligently to prepare us to successfully execute on the conversion. Our actual results were better than our pro-forma estimates, with tangible book value dilution of 5.3%, compared to our estimated 6.1% and merger-related expenses were $2.4 million (pre-tax) lower than our projections. We look forward to beginning 2026 as one team with all of the merger activities behind us. In addition to completing and converting BankProv, we continued to execute on our strategic plan, growing loans (excluding those transferred to loans held for sale) and core deposits organically during the quarter, on an annualized basis, by 9.4% and 12.1%, respectively. Our operating results for the quarter were strong, with operating earnings per share of $0.51 and operating return on average assets and average equity of 1.35% and 10.51%, respectively. Net interest margin expanded by 14 basis points for the quarter and expanded by 40 basis points compared to the fourth quarter of 2024," commented Joseph Campanelli, Chairman, President and Chief Executive Officer. "We are excited for what 2026 has to offer us and are optimistic about our opportunities as we move forward," Campanelli continued. Share Repurchase Plan The Company announced today that it has adopted a stock repurchase program for up to 2,288,509 shares of the Company's common stock, which equals approximately 5.0% of the shares currently outstanding. Declaration of Dividend The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on February 19, 2026, to shareholders of record as of February 5, 2026. MERGER WITH PROVIDENT BANCORP, INC. AND BANKPROV On November 15, 2025, the Company completed its acquisition of Provident for $111.8 million in cash consideration and the issuance of 5,943,682 shares of common stock valued at $114.7 million. The acquisition extends Needham Bank's presence in the southern New Hampshire market with the addition of approximately $1.42 billion of total assets, $1.23 billion of total loans and $1.13 billion in total deposits, each at fair value. See the Organic Loan Growth, Organic Deposit Growth and Merger & Acquisition Expenses tables for more information on the impact of the Provident acquisition. Fourth quarter results for 2025 reflect the inclusion of Provident since November 15, 2025. SELECTED FINANCIAL HIGHLIGHTS FOR THE FOURTH QUARTER OF 2025 Net income of $7.7 million, or $0.19 per diluted common share, compared to net income of $15.4 million, or $0.43 per diluted common share, for the prior quarter. Operating net income(1), excluding one-time charges, amounted to $21.2 million, or $0.51 per diluted common share, compared to operating net income(1) of $16.0 million, or $0.45 per diluted common share, for the prior quarter. One-time charges during the current quarter include: Pre-tax merger and acquisition costs of $15.7 million ($11.4 million net of tax) related to the Company's completed acquisition of Provident; andTax expense and a modified endowment contract penalty of $2.1 million related to the surrender of BOLI policies from policies acquired from BankProv. One-time pre-tax amounts during the prior quarter include: Merger and acquisition costs of $994 thousand ($766 thousand net of tax) related to the Company's pending acquisition of Provident; andState voluntary disclosure agreement tax expenses of $561 thousand for new state income tax expenses; partially offset byDefined benefit pension termination refund of $739 thousand.Net interest margin expanded by 14 basis points to 3.92% during the current quarter from 3.78% in the prior quarter.Acquisition and conversion of Provident was completed, resulting in loans acquired at fair value amounting to $1.23 billion and deposits assumed at fair value of $1.13 billion.Gross loans increased $1.27 billion, or 26.9%, to $5.99 billion, from $4.72 billion the prior quarter.Total deposits increased $1.29 billion, or 28.2%, from the prior quarter. Core deposits, which the Company considers to be all non-brokered deposits, increased $1.14 billion, or 27.3%, during the current quarter. Brokered deposits increased $147.0 million, or 37.8%, from the prior quarter.Book value per share and tangible book value per share(1) were $18.77 and $17.98, respectively, compared to $18.51 and $18.48, respectively, in the prior quarter. The decrease in tangible book value per share(1) was a result of the establishment of $16.8 million in goodwill and $18.3 million in core deposit intangible from the Provident acquisition, along with $2.7 million in dividends paid during the quarter, partially offset by $7.7 million in net income for the quarter. BALANCE SHEET Total assets amounted to $7.01 billion as of December 31, 2025, representing an increase of $1.56 billion, or 28.7%, from September 30, 2025. Cash and cash equivalents increased $112.2 million, or 38.0%, to $407.6 million from $295.4 million in the prior quarter, as a result of the organic increase in deposits of $199.3 million and cash acquired from Provident of $70.8 million, partially offset by the cash consideration for the acquisition of Provident of $111.8 million and organic loan growth of $43.6 million.Net loans increased $1.23 billion, or 26.3%, to $5.90 billion, from the prior quarter primarily from the $1.23 billion acquisition of Provident's loan portfolio at fair value. The current quarter increase was primarily seen in commercial real estate loans, which increased $474.4 million, or 32.7%, commercial and industrial loans, which increased $355.9 million, or 54.6%, mortgage warehouse loans, which increased $280.9 million, or 100.0%, multi-family residential loans, which increased $87.1 million, or 20.2%, construction and land development loans, which increased $75.6 million, or 11.5%, and residential real estate loans, which increased $56.9 million, or 4.5%, partially offset by a decline in consumer loans as $66.4 million in consumer loans were marked to fair value and transferred to loans held for sale during the quarter.Deposits increased $1.29 billion, or 28.2%, to $5.85 billion from $4.57 billion in the prior quarter, primarily from the $1.13 billion assumption of Provident's deposit portfolio at fair value. The increase in deposits was the result of increases in money market accounts of $437.3 million, or 36.0%, NOW accounts of $187.2 million, or 39.2%, certificates of deposit of $211.2 million, or 12.0%, brokered deposits of $147.0 million, or 37.8%, savings accounts of $88.2 million, or 73.2% and noninterest bearing demand deposits of $216.9 million, or 35.7%.FHLB borrowings increased $154.8 million, or 373.4%, to $196.2 million from $41.5 million in the prior quarter as a result of liquidity needs.Shareholders' equity increased $121.9 million, or 16.5%, to $858.9 million from the prior quarter, primarily as a result of the issuance of 5,943,682 shares of common stock for the acquisition of Provident, which increased shareholders' equity by $114.7 million, and net income of $7.7 million, partially offset by the payment of $2.7 million in dividends. Shareholders' equity to total assets and tangible shareholders' equity(1) to tangible assets were 12.3% and 11.8% respectively, at the end of the current quarter, compared to 13.5% for both ratios at the end of the prior quarter. NET INTEREST INCOME Net interest income was $58.8 million for the current quarter, compared to $48.2 million for the prior quarter, an increase of $10.6 million, or 22.0%. Net interest margin expanded 14 basis points to 3.92% for the quarter from 3.78% in the prior quarter. Accretion from loan purchase accounting provided an 11 basis point increase in net interest margin for the current quarter. The increase in interest income during the current quarter was primarily attributable to an increase in the average balance of loans.The increase in interest expense for the current quarter was primarily driven by increases in the average balances of money market and certificates of deposit and individual retirement accounts, partially offset by a decrease in the average balance of FHLB borrowings. PROVISION FOR CREDIT LOSSES Provision for credit losses decreased $2.5 million, or 176.1%, to a release of credit losses of $1.1 million for the current quarter, compared to a provision for credit losses of $1.4 million for the prior quarter. The release of credit losses on loans amounted to $1.6 million for the current quarter, compared to a provision of $1.0 million for the prior quarter, representing a decrease of $2.6 million, or 249.4%, primarily driven by a $66.4 million portfolio of consumer loans transferred to loans held for sale.The provision for credit losses on unfunded commitments was $493 thousand for the current quarter, compared to $355 thousand for the prior quarter, representing an increase of $138 thousand, or 38.9%, primarily driven by an increase in the balance of unfunded commitments during the current quarter. NONINTEREST INCOME Noninterest income was $4.4 million for the current quarter, compared to $3.7 million for the prior quarter, representing an increase of $720 thousand, or 19.6%. Swap contract income was $677 thousand for the current quarter, compared to $208 thousand in the prior quarter, representing an increase of $469 thousand, or 225.5%, due to increased swap contract demand.Customer service fees were $2.9 million for the current quarter, compared to $2.5 million in the prior quarter, representing an increase of $398 thousand, or 15.9%, due to increased customer transactional volume.The increase in the cash surrender value of BOLI was $844 thousand for the current quarter, compared to $631 thousand for the prior quarter, representing a larger increase in the cash surrender value of BOLI of $213 thousand, or 33.8%, driven by the acquisition of BOLI policies from Provident during the current quarter.Other income was $442 thousand, compared to $152 thousand in the prior quarter, resulting in an increase of $290 thousand, or 190.8%, from the recognition of preferred dividends from solar tax credit investments during the current quarter.The above increases were offset by a $564 thousand increase in the loss on sale of loans, net, resulting from the adjustment to record a $66.4 million consumer loan portfolio at fair value, which transferred to loans held for sale during the quarter. NONINTEREST EXPENSE Noninterest expense for the current quarter was $49.3 million, representing an increase of $18.8 million, or 61.8%, from the prior quarter. Merger and acquisition expenses were $15.7 million for the current quarter, compared to $994 thousand for the prior quarter, representing a $14.7 million, or 1,483.5%, increase due to the completion of the Provident acquisition. See the Merger & Acquisition Expense table for a breakout of expenses.Salaries and employee benefits expenses were $21.1 million for the current quarter, compared to $18.6 million for the prior quarter, representing a $2.5 million, or 13.4%, increase resulting from increased headcount from the Provident acquisition and related incentives.General and administrative expenses were $2.8 million for the current quarter, compared to $1.6 million for the prior quarter, representing an increase of $1.2 million, or 76.8%, mainly a result of the amortization of the acquired Provident core deposit intangible and amortization of tax credits. INCOME TAXES Income tax expense for the current quarter was $7.2 million, representing a $2.6 million, or 56.0%, increase from the prior quarter. The increase was primarily driven by the BOLI surrender tax and modified endowment contract penalty of $2.1 million, as well as non-deductible acquisition expenses of $871 thousand. The effective tax rate and the operating effective tax rate(1) were 48.2% and 30.8%, respectively, for the current quarter, compared to 23.0% and 20.8%, respectively, for the prior quarter. The primary drivers of the increase in the effective tax rate were the BOLI surrender tax and modified endowment contract penalty of $2.1 million, as well as non-deductible acquisition expenses and related compensation of $871 thousand. COMMERCIAL REAL ESTATE PORTFOLIO Commercial real estate loans increased $561.5 million, or 29.9%, to $2.44 billion, during the current quarter. Cannabis facility commercial real estate loans decreased $48.9 million, or 18.5%, to $215.0 million during the quarter ended December 31, 2025. The Company's cannabis facility commercial real estate portfolio is secured entirely by the underlying commercial real estate of the borrower operation, in addition to, in most cases, a lien on all business assets. The vast majority of the cannabis facility loan portfolio balances have a loan-to-value ratio of 65% or lower, with appraisal reports taking a blended approach (using both cannabis and non-cannabis use comparable real estate sales, which we believe are generally more conservative).The cannabis facility portfolio has geographic dispersion, with lower dollar exposure loans remaining local and larger dollar exposure loans generally tied to multi-state operators with a more national footprint. All cannabis facility loan relationships were current at the end of the current quarter.The Company's multi-family real estate loan portfolio increased $87.1 million, or 20.2%, during the current quarter to $517.5 million, as a result of construction and land development loans transitioning to permanent financing and continued originations. The Company's multi-family real estate loan portfolio consists of properties primarily located in the Greater Boston area, primarily all of which are adjustable-rate loans and all of which were performing at September 30, 2025.The Company's $286.3 million office portfolio consists principally of suburban Class A and B office space used as medical and traditional offices. The portfolio does not consist of high-rise towers located in Boston. As a result of the Provident acquisition, self-storage facilities and recreation vehicle parks are new commercial real estate segments of $64.3 million and $89.3 million, respectively. ASSET QUALITY The increase in the allowance for credit losses ("ACL") for the current quarter was the result of the Provident acquisition, including $39.9 million in reserves for purchased credit deteriorated ("PCD") loans and a purchase accounting adjustment of $8.0 million for the acquired non-PCD loan portfolio, both of which were recorded to Goodwill. These increases were partially offset by the movement of a $66.4 million consumer loan portfolio to loans held for sale and a charge-off on a previously reserved for commercial and industrial loan of $3.8 million.The ACL amounted to $85.0 million as of December 31, 2025, or 1.42% of total loans, compared to $43.1 million, or 0.91% of total loans at September 30, 2025. The Company recorded a release of credit losses of $1.1 million during the current quarter, which included a release of $1.6 million for loans and a provision of $493 thousand for unfunded commitments, compared to provisions for credit losses of $1.4 million during the prior quarter, which included a provision of $1.0 million for loans and a provision of $355 thousand for unfunded commitments. Non-performing loans totaled $43.4 million as of December 31, 2025, an increase of $32.0 million, or 281.9%, from $11.4 million at the end of the prior quarter. The increase was primarily due to the increase in commercial and industrial loans on non-accrual of $31.6 million as a result of the Provident acquisition.During the current quarter, the Company recorded total net charge-offs of $4.4 million, or 0.32% of average total loans on an annualized basis, compared to net charge-offs of $590 thousand, or 0.05% of average total loans on an annualized basis, in the prior quarter. The increase in net charge-offs during the current quarter was primarily a result of a $3.8 million charge-off on a previously reserved for commercial and industrial loan. As part of its ongoing credit risk management framework and prudent oversight, the Company periodically reviews lending relationships across all portfolios to ensure alignment with its risk appetite, regulatory expectations, and evolving market conditions. During 2025, the Bank exited two large cannabis-related lending relationships following a comprehensive credit assessment and risk review process. The exits were executed in an orderly manner and did not result in any principal loss and resulted in either default interest or fees paid as part of the exit. Management believes these actions demonstrate the Bank's continued commitment to proactive risk mitigation, disciplined underwriting standards, and sound credit administration practices.The Company's loan portfolio consists primarily of commercial real estate and multi-family loans, one-to-four-family residential real estate loans, construction and land development loans, commercial and industrial loans, mortgage warehouse loans and consumer loans. These loans are primarily made to individuals and businesses located in our primary lending market area, which is the Greater Boston metropolitan area and surrounding communities in Massachusetts, southern New Hampshire, eastern Connecticut and Rhode Island. (1) Represents a non-GAAP measure. See Non-GAAP reconciliation of the corresponding GAAP measures on page 13. ABOUT NB BANCORP, INC. NB Bancorp, Inc. (Nasdaq Capital Market: NBBK) is the registered bank holding company of Needham Bank. Needham Bank is headquartered in Needham, Massachusetts, which is approximately 17 miles southwest of Boston's financial district. Known as the "Builder's Bank," Needham Bank has been helping individuals, businesses and non-profits build for their futures since 1892. Needham Bank offers an array of tech-forward products and services that businesses and consumers use to manage their financial needs. Needham Bank also provides services to companies in the cannabis industry by providing loans and deposits, along with supporting payment platforms in this industry, such as Mosaic and Corduro. We have the financial expertise typically found at much larger institutions and the local knowledge and commitment you can only find at a community bank. For more information, please visit https://NeedhamBank.com. Needham Bank is a member of FDIC. Non-GAAP Financial Measures In addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures, including pre-provision net revenue, operating net income, operating pre-tax income, operating noninterest expense, operating noninterest income, operating effective tax rate, operating earnings per share, basic, operating earnings per share, diluted, operating return on average assets, operating return on average shareholders' equity, operating efficiency ratio, tangible shareholders' equity, tangible assets and tangible book value per share. The Company's management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a Company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Forward-Looking Statements Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (the "SEC"), in our annual reports to our stockholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Company believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company's control. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in general business and economic conditions on a national basis and in the local markets in which the Company operates, including changes which adversely affect borrowers' ability to service and repay loans; changes in customer behavior due to political, business and economic conditions, including inflation and concerns about liquidity; turbulence in the capital and debt markets; reductions in net interest income resulting from interest rate volatility as well as changes in the balances and mix of loans and deposits; changes in interest rates and real estate values; changes in loan collectability and increases in defaults and charge-off rates; decreases in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; risks related to the Company's acquisitions generally, including disruption to current plans and operations; difficulties in customer and employee retention; fees, expenses and charges related to these transactions being significantly higher than anticipated; unforeseen integration issues or impairment of other intangibles; and the Company's inability to achieve expected revenues, cost savings, synergies, and other benefits at levels or within the timeframes originally anticipated; changing government regulation; competitive pressures from other financial institutions; changes in legislation or regulation and accounting principles, policies and guidelines; cybersecurity incidents, fraud, natural disasters, and future pandemics; the risk that the Company may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Company's financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Company's Form 10-K and updated by our Quarterly Report on Form 10-Q and other filings submitted to the SEC. These statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events. NB BANCORP, INC. SELECTED FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share data) As of and for the three months ended December 31, 2025 September 30, 2025 December 31, 2024 Earnings data Net interest income $ 58,752 $ 48,175 $ 42,521 Noninterest income 4,402 3,682 4,246 Total pre-provision net revenue (non-GAAP) 63,154 51,857 46,767 (Release of) provision for credit losses (1,062) 1,396 1,404 Noninterest expense 49,334 30,499 26,088 Pre-tax income 14,882 19,962 19,275 Net income 7,707 15,362 15,611 Operating net income (non-GAAP) 21,200 16,002 13,261 Operating noninterest expense (non-GAAP) 33,594 30,244 26,088 Per share data Earnings per share, basic $ 0.19 $ 0.43 $ 0.40 Earnings per share, diluted 0.19 0.43 0.40 Operating earnings per share, basic (non-GAAP) 0.52 0.45 0.34 Operating earnings per share, diluted (non-GAAP) 0.51 0.45 0.34 Book value per share 18.77 18.51 17.92 Tangible book value per share (non-GAAP) 17.98 18.48 17.89 Profitability Return on average assets 0.49 % 1.16 % 1.23 % Operating return on average assets (non-GAAP) 1.35 % 1.20 % 1.04 % Return on average shareholders' equity 3.82 % 8.35 % 8.22 % Operating return on average shareholders' equity (non-GAAP) 10.51 % 8.70 % 6.98 % Net interest margin 3.92 % 3.78 % 3.52 % Cost of deposits 2.86 % 2.92 % 3.24 % Efficiency ratio 78.12 % 58.81 % 55.78 % Operating efficiency ratio (non-GAAP) 53.19 % 58.32 % 55.78 % Balance sheet, end of period Total assets $ 7,006,130 $ 5,442,390 $ 5,157,737 Total loans 5,986,140 4,715,923 4,332,929 Total deposits 5,853,534 4,565,664 4,177,652 Total shareholders' equity 858,932 737,034 765,167 Asset quality Allowance for credit losses (ACL) $ 85,009 $ 43,052 $ 38,744 ACL / Total non-performing loans (NPLs) 196.0 % 379.1 % 279.6 % Total NPLs / Total loans 0.72 % 0.24 % 0.32 % Annualized net charge-offs / Average total loans (0.32) % (0.05) % (0.04) % Capital ratios Shareholders' equity / Total assets 12.26 % 13.54 % 14.84 % Tangible shareholders' equity / tangible assets (non-GAAP) 11.81 % 13.53 % 14.82 % NB BANCORP, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands, except share and per share data) As of December 31, 2025 change from December 31, 2025 September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 Assets Cash and due from banks $ 325,711 $ 197,548 $ 211,166 $ 128,163 64.9 % $ 114,545 54.2 % Federal funds sold 81,885 97,829 152,689 (15,944) (16.3) % (70,804) (46.4) % Total cash and cash equivalents 407,596 295,377 363,855 112,219 38.0 % 43,741 12.0 % Available-for-sale securities, at fair value 268,959 231,023 228,205 37,936 16.4 % 40,754 17.9 % Loans held for sale 66,447 - - 66,447 100.0 % 66,447 100.0 % Loans receivable, net of deferred fees 5,986,140 4,715,923 4,332,929 1,270,217 26.9 % 1,653,211 38.2 % Allowance for credit losses (85,009) (43,052) (38,744) (41,957) 97.5 % (46,265) 119.4 % Net loans 5,901,131 4,672,871 4,294,185 1,228,260 26.3 % 1,606,946 37.4 % Accrued interest receivable 25,390 21,074 19,685 4,316 20.5 % 5,705 29.0 % Banking premises and equipment, net 46,209 33,842 34,654 12,367 36.5 % 11,555 33.3 % Non-public investments 33,740 44,531 24,364 (10,791) (24.2) % 9,376 38.5 % Bank-owned life insurance ("BOLI") 104,335 56,342 102,785 47,993 85.2 % 1,550 1.5 % Prepaid expenses and other assets 68,078 57,720 58,626 10,358 17.9 % 9,452 16.1 % Goodwill 16,786 - - 16,786 0.0 % 16,786 0.0 % Core deposit intangible 19,303 967 1,079 18,336 1896.2 % 18,224 1689.0 % Deferred income tax asset 48,156 28,643 30,299 19,513 68.1 % 17,857 58.9 % Total assets $ 7,006,130 $ 5,442,390 $ 5,157,737 $ 1,563,740 28.7 % $ 1,848,393 35.8 % Liabilities and shareholders' equity Deposits Core deposits $ 5,317,853 $ 4,176,991 $ 3,867,846 $ 1,140,862 27.3 % $ 1,450,007 37.5 % Brokered deposits 535,681 388,673 309,806 147,008 37.8 % 225,875 72.9 % Total deposits 5,853,534 4,565,664 4,177,652 1,287,870 28.2 % 1,675,882 40.1 % Mortgagors' escrow accounts 5,193 4,543 4,549 650 14.3 % 644 14.2 % FHLB borrowings 196,235 41,453 120,835 154,782 373.4 % 75,400 62.4 % Accrued expenses and other liabilities 70,716 73,139 65,708 (2,423) (3.3) % 5,008 7.6 % Accrued retirement liabilities 21,520 20,557 23,826 963 4.7 % (2,306) (9.7) % Total liabilities 6,147,198 4,705,356 4,392,570 1,441,842 30.6 % 1,754,628 39.9 % Shareholders' equity: Preferred stock, $0.01 par value, 5,000,000 shares authorized; no shares issued and outstanding - - - - 0.0 % - 0.0 % Common stock, $0.01 par value, 120,000,000 shares authorized; 45,770,128 shares issued and  outstanding at December 31, 2025, 39,826,446 shares issued and outstanding at September 30, 2025 and 42,705,729 shares issued and outstanding at December 31, 2024 458 398 427 60 15.1 % 31 7.3 % Additional paid-in capital 458,864 342,526 417,247 116,338 34.0 % 41,617 10.0 % Unallocated common shares held by the Employee Stock Ownership Plan ("ESOP") (42,454) (43,049) (44,813) 595 (1.4) % 2,359 (5.3) % Retained earnings 445,200 440,281 400,473 4,919 1.1 % 44,727 11.2 % Accumulated other comprehensive loss (3,136) (3,122) (8,167) (14) 0.4 % 5,031 (61.6) % Total shareholders' equity 858,932 737,034 765,167 121,898 16.5 % 93,765 12.3 % Total liabilities and shareholders' equity $ 7,006,130 $ 5,442,390 $ 5,157,737 $ 1,563,740 28.7 % $ 1,848,393 35.8 % NB BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except share and per share data) For the Three Months Ended Three Months Ended December 31, 2025 Change From Three Months Ended December 31, 2025 September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 INTEREST AND DIVIDEND INCOME Interest and fees on loans $ 91,485 $ 77,365 $ 70,977 $ 14,120 18.3 % $ 20,508 28.9 % Interest on securities 2,658 2,253 2,116 405 18.0 % 542 25.6 % Interest and dividends on cash equivalents and other 3,219 2,070 4,107 1,149 55.5 % (888) (21.6) % Total interest and dividend income 97,362 81,688 77,200 15,674 19.2 % 20,162 26.1 % INTEREST EXPENSE Interest on deposits 37,677 31,273 33,514 6,404 20.5 % 4,163 12.4 % Interest on borrowings 933 2,240 1,165 (1,307) (58.3) % (232) (19.9) % Total interest expense 38,610 33,513 34,679 5,097 15.2 % 3,931 11.3 % NET INTEREST INCOME 58,752 48,175 42,521 10,577 22.0 % 16,231 38.2 % PROVISION FOR CREDIT LOSSES (Release of) provision for credit losses - loans (1,555) 1,041 1,618 (2,596) (249.4) % (3,173) (196.1) % Provision for credit losses - unfunded commitments 493 355 (214) 138 38.9 % 707 (330.4) % Total (release of) provision for credit losses (1,062) 1,396 1,404 (2,458) (176.1) % (2,466) (175.6) % NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES  59,814 46,779 41,117 13,035 27.9 % 18,697 45.5 % NONINTEREST INCOME Customer service fees 2,896 2,498 2,068 398 15.9 % 828 40.0 % Increase in cash surrender value of BOLI 844 631 1,049 213 33.8 % (205) (19.5) % Mortgage banking income 62 148 107 (86) (58.1) % (45) (42.1) % Swap contract income 677 208 531 469 225.5 % 146 27.5 % (Loss) gain on sale of loans, net (519) 45 11 (564) (1253.3) % (530) (4818.2) % Other income 442 152 480 290 190.8 % (38) (7.9) % Total noninterest income 4,402 3,682 4,246 720 19.6 % 156 3.7 % NONINTEREST EXPENSE Salaries and employee benefits 21,134 18,641 15,747 2,493 13.4 % 5,387 34.2 % Director and professional service fees 2,500 2,920 2,428 (420) (14.4) % 72 3.0 % Occupancy and equipment expenses 1,954 1,559 1,388 395 25.3 % 566 40.8 % Data processing expenses 3,344 2,911 2,478 433 14.9 % 866 34.9 % Marketing and charitable contribution expenses 1,087 949 779 138 14.5 % 308 39.5 % FDIC and state insurance assessments 751 928 1,041 (177) (19.1) % (290) (27.9) % Merger and acquisition expenses 15,740 994 - 14,746 1483.5 % 15,740 0.0 % General and administrative expenses 2,824 1,597 2,227 1,227 76.8 % 597 26.8 % Total noninterest expense 49,334 30,499 26,088 18,835 61.8 % 23,246 89.1 % INCOME BEFORE TAXES 14,882 19,962 19,275 (5,080) (25.4) % (4,393) (22.8) % INCOME TAX EXPENSE 7,175 4,600 3,664 2,575 56.0 % 3,511 95.8 % NET INCOME $ 7,707 $ 15,362 $ 15,611 $ (7,655) (49.8) % $ (7,904) (50.6) % Weighted average common shares outstanding, basic 40,870,969 35,372,205 39,291,088 5,498,764 15.5 % 1,579,881 4.0 % Weighted average common shares outstanding, diluted 41,172,645 35,579,456 39,291,088 5,593,189 15.7 % 1,881,557 4.8 % Earnings per share, basic $ 0.19 $ 0.43 $ 0.40 $ (0.24) (55.8) % $ (0.21) (52.5) % Earnings per share, diluted $ 0.19 $ 0.43 $ 0.40 $ (0.24) (55.8) % $ (0.21) (52.5) % NB BANCORP, INC. AVERAGE BALANCES, INTEREST EARNED/PAID & AVERAGE YIELDS (Unaudited) (Dollars in thousands) For the Three Months Ended December 31, 2025 September 30, 2025 December 31, 2024 Average Average Average Outstanding Average Outstanding Average Outstanding Average Balance Interest Yield/Rate (4) Balance Interest Yield/Rate (4) Balance Interest Yield/Rate (4) Interest-earning assets: Loans $ 5,409,681 $ 91,485 6.71 % $ 4,612,837 $ 77,365 6.65 % $ 4,278,952 $ 70,977 6.60 % Securities 250,435 2,658 4.21 % 236,187 2,253 3.78 % 215,268 2,116 3.91 % Other investments(5) 25,531 627 9.74 % 32,510 223 2.72 % 27,217 586 8.57 % Short-term investments(5) 265,239 2,592 3.88 % 176,884 1,847 4.14 % 283,540 3,521 4.94 % Total interest-earning assets 5,950,886 97,362 6.49 % 5,058,418 81,688 6.41 % 4,804,977 77,200 6.39 % Noninterest-earning assets 345,244 256,763 285,715 Allowance for credit losses (68,337) (42,746) (38,231) Total assets $ 6,227,793 $ 5,272,435 $ 5,052,461 Interest-bearing liabilities: Savings accounts $ 164,423 217 0.52 % $ 121,704 181 0.59 % $ 108,594 14 0.05 % NOW accounts 557,988 1,415 1.01 % 467,761 1,365 1.16 % 456,460 1,144 1.00 % Money market accounts 1,435,761 11,265 3.11 % 1,119,539 9,363 3.32 % 965,031 8,342 3.44 % Certificates of deposit and individual retirement accounts 2,351,324 24,780 4.18 % 1,933,665 20,364 4.18 % 1,990,735 24,014 4.80 % Total interest-bearing deposits 4,509,496 37,677 3.31 % 3,642,669 31,273 3.41 % 3,520,820 33,514 3.79 % FHLB borrowings 92,927 933 3.98 % 199,852 2,240 4.45 % 95,873 1,165 4.83 % Total interest-bearing liabilities 4,602,423 38,610 3.33 % 3,842,521 33,513 3.46 % 3,616,693 34,679 3.81 % Noninterest-bearing deposits 720,273 604,631 595,296 Other non-interest-bearing liabilities 105,107 95,304 84,964 Total liabilities 5,427,803 4,542,456 4,296,953 Shareholders' equity 799,990 729,979 755,508 Total liabilities and shareholders' equity $ 6,227,793 $ 5,272,435 $ 5,052,461 Net interest income $ 58,752 $ 48,175 $ 42,521 Net interest rate spread(1) 3.16 % 2.95 % 2.58 % Net interest-earning assets(2) $ 1,348,463 $ 1,215,897 $ 1,188,284 Net interest margin(3) 3.92 % 3.78 % 3.52 % Average interest-earning assets to interest-bearing liabilities 129.30 % 131.64 % 132.86 % (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. (4) Annualized. (5) Other investments are comprised of FRB stock, FHLB stock and swap collateral accounts. Short-term investments are comprised of cash and cash equivalents. NB BANCORP, INC. COMMERCIAL REAL ESTATE BY COLLATERAL TYPE (Unaudited) (Dollars in thousands) December 31, 2025 Owner-Occupied Non-Owner-Occupied Balance Percentage Multi-Family $ — $ 517,527 $ 517,527 21 % Industrial 152,469 151,172 303,641 12 % Office 39,718 246,571 286,289 12 % Hospitality 36,995 246,313 283,308 12 % Mixed-Use 23,174 196,701 219,875 9 % Cannabis Facility 205,923 9,085 215,008 9 % Special Purpose 84,563 62,211 146,774 6 % Retail 44,687 103,846 148,533 6 % Self Storage Facilities — 64,315 64,315 3 % Recreational Vehicle Parks 15,013 74,290 89,303 4 % Other 62,157 104,840 166,997 7 % Total commercial real estate  $ 664,699 $ 1,776,871 $ 2,441,570 100 % Change From September 30, 2025 Change From December 31, 2024 Owner-Occupied Non-Owner- Occupied Balance Percentage Owner-Occupied Non-Owner- Occupied Balance Percentage Multi-Family $ — $ 87,099 $ 87,099 20 % $ — $ 184,480 $ 184,480 55 % Industrial 74,981 38,508 113,489 60 % 29,278 71,265 100,543 50 % Office 14,461 74,940 89,401 45 % 8,643 94,842 103,485 57 % Hospitality 822 34,971 35,793 14 % 36,995 81,793 118,788 72 % Mixed-Use 15,159 36,250 51,409 31 % 14,151 92,199 106,350 94 % Cannabis Facility (48,812) (83) (48,895) (19) % (104,850) (322) (105,172) (33) % Special Purpose 3,653 5,445 9,098 7 % 4,507 7,856 12,363 9 % Retail 6,066 17,507 23,573 19 % 869 13,129 13,998 10 % Self Storage Facilities — 64,315 64,315 100 % — 64,315 64,315 100 % Recreational Vehicle Parks 15,013 74,290 89,303 100 % 15,013 74,290 89,303 100 % Other 23,552 23,330 46,882 39 % 20,685 35,991 56,676 51 % Total commercial real estate  $ 104,895 $ 456,572 $ 561,467 30 % $ 25,291 $ 719,838 $ 745,129 44 % September 30, 2025 December 31, 2024 Owner-Occupied Non-Owner- Occupied Balance Percentage Owner-Occupied Non-Owner- Occupied Balance Percentage Multi-Family $ — $ 430,428 $ 430,428 23 % $ — 333,047 $ 333,047 20 % Industrial 77,488 112,664 190,152 10 % 123,191 79,907 203,098 12 % Office 25,257 171,631 196,888 11 % 31,075 151,729 182,804 11 % Hospitality 36,173 211,342 247,515 13 % — 164,520 164,520 10 % Mixed-Use 8,015 160,451 168,466 9 % 9,023 104,502 113,525 7 % Cannabis Facility 254,735 9,168 263,903 14 % 310,773 $ 9,407 320,180 19 % Special Purpose 80,910 56,766 137,676 7 % 80,056 54,355 134,411 8 % Retail 38,621 86,339 124,960 7 % 43,818 90,717 134,535 8 % Self Storage Facilities — — — 0 % — — — 0 % Recreational Vehicle Parks — — — 0 % — — — 0 % Other 38,605 81,510 120,115 6 % 41,472 68,849 110,321 7 % Total commercial real estate  $ 559,804 $ 1,320,299 $ 1,880,103 100 % $ 639,408 $ 1,057,033 $ 1,696,441 100 % NB BANCORP, INC. NON-GAAP RECONCILIATION (Unaudited) (Dollars in thousands) For the Three Months Ended December 31, 2025 September 30, 2025 December 31, 2024 Net income (GAAP) $ 7,707 $ 15,362 $ 15,611 Add (Subtract): Adjustments to net income: Defined benefit pension termination refund - (739) - State tax expense - voluntary disclosure agreements - 561 - Income tax expense on solar tax credit investment basis reduction - - (2,503) BOLI surrender tax and modified endowment contract penalty 2,092 - 153 Merger and acquisition expenses 15,740 994 - Total adjustments to net income $ 17,832 $ 816 $ (2,350) Less net tax benefit associated with pre-tax non-GAAP adjustments to net income  4,339 176 - Non-GAAP adjustments, net of tax 13,493 640 (2,350) Operating net income (non-GAAP) $ 21,200 $ 16,002 $ 13,261 Weighted average common shares outstanding, basic 40,870,969 35,372,205 39,291,088 Weighted average common shares outstanding, diluted 41,172,645 35,579,456 39,291,088 Operating earnings per share, basic (non-GAAP) $ 0.52 $ 0.45 $ 0.34 Operating earnings per share, diluted (non-GAAP) $ 0.51 $ 0.45 $ 0.34 Pre-tax income (GAAP) $ 14,882 $ 19,962 $ 19,275 Add (Subtract): Defined benefit pension termination refund - (739) - Merger and acquisition expenses 15,740 994 - Operating pre-tax income (non-GAAP) $ 30,622 $ 20,217 $ 19,275 Noninterest expense (GAAP) $ 49,334 $ 30,499 $ 26,088 Subtract (Add): Noninterest expense components: Defined benefit pension termination refund $ - $ (739) $ - Merger and acquisition expenses 15,740 994 - Total impact of non-GAAP noninterest expense adjustments $ 15,740 $ 255 $ - Noninterest expense on an operating basis (non-GAAP) $ 33,594 $ 30,244 $ 26,088 Operating net income (non-GAAP) $ 21,200 $ 16,002 $ 13,261 Average assets 6,227,793 5,272,435 5,052,461 Operating return on average assets (non-GAAP) 1.35 % 1.20 % 1.04 % Average shareholders' equity $ 799,990 $ 729,979 $ 755,508 Operating return on average shareholders' equity (non-GAAP) 10.51 % 8.70 % 6.98 % Noninterest expense on an operating basis (non-GAAP) $ 33,594 $ 30,244 $ 26,088 Total pre-provision net revenue (net interest income plus total noninterest income) 63,154 51,857 46,767 Operating efficiency ratio (non-GAAP) 53.19 % 58.32 % 55.78 % Income tax expense (GAAP) $ 7,175 $ 4,600 $ 3,664 Add (Subtract): State tax expense - voluntary disclosure agreements - (561) - Income tax expense on solar tax credit investment basis reduction - - 2,503 Net tax benefit associated with pre-tax non-GAAP adjustments to net income 4,339 176 - BOLI surrender tax and modified endowment contract penalty (2,092) - (153) Total impact of non-GAAP income tax expense adjustments $ 2,247 $ (385) $ 2,350 Income tax expense on an operating basis (non-GAAP) $ 9,422 $ 4,215 $ 6,014 Operating effective tax rate (non-GAAP) 30.8 % 20.8 % 31.2 % As of December 31, 2025 September 30, 2025 December 31, 2024 Total shareholders' equity (GAAP) $ 858,932 $ 737,034 $ 765,167 Subtract: Intangible assets (core deposit intangible and goodwill) 36,089 967 1,079 Total tangible shareholders' equity (non-GAAP) 822,843 736,067 764,088 Total assets (GAAP) 7,006,130 5,442,390 5,157,737 Subtract: Intangible assets (core deposit intangible and goodwill) 36,089 967 1,079 Total tangible assets (non-GAAP) $ 6,970,041 $ 5,441,423 $ 5,156,658 Tangible shareholders' equity / tangible assets (non-GAAP) 11.81 % 13.53 % 14.82 % Total common shares outstanding 45,770,128 39,826,446 42,705,729 Tangible book value per share (non-GAAP) $ 17.98 $ 18.48 $ 17.89 NB BANCORP, INC. ASSET QUALITY – NON-PERFORMING ASSETS(1) (Unaudited) (Dollars in thousands) December 31, 2025 September 30, 2025 December 31, 2024 Real estate loans: One-to-four-family residential $ 2,712 $ 2,771 $ 2,930 Home equity 1,359 1,001 958 Commercial real estate 855 809 3,005 Construction and land development 10 10 10 Commercial and industrial 36,251 4,686 4,558 Consumer 2,184 2,080 2,395 Total $ 43,371 $ 11,357 $ 13,856 Total non-performing loans to total loans 0.72 % 0.24 % 0.32 % Total non-performing assets to total assets 0.62 % 0.21 % 0.27 % (1) Non-performing loans and assets are comprised of non-accrual loans NB BANCORP, INC. ASSET QUALITY – PROVISION, ALLOWANCE, AND NET (CHARGE-OFFS) RECOVERIES (Unaudited) (Dollars in thousands) For the Three Months Ended December 31, 2025 September 30, 2025 December 31, 2024 Allowance for credit losses at beginning of the period $ 43,052 $ 42,601 $ 37,605 Adjustment to allowance for Provident acquisition 47,869 — — (Release of) provision for credit losses (1,555) 1,041 1,618 Charge-offs: Consumer 1,325 693 843 Commercial & Industrial 3,763 — — Commercial real estate 17 — — Total charge-offs 5,105 693 843 Recoveries of loans previously charged off: Commercial and industrial 562 12 202 Consumer 186 91 162 Total recoveries 748 103 364 Net (charge-offs) recoveries (4,357) (590) (479) Allowance for credit losses at end of the period $ 85,009 $ 43,052 $ 38,744 Allowance to non-performing loans 196 % 379 % 279.6 % Allowance to total loans outstanding at the end of the period 1.42 % 0.91 % 0.89 % Annualized net (charge-offs) recoveries to average loans outstanding during the period  (0.32) % (0.05) % (0.04) % NB BANCORP, INC. ORGANIC LOAN GROWTH (Unaudited) (Dollars in thousands) December 31, 2025 September 30, 2025 BP Acquisition (1) Organic $ Change Organic % Change One-to four-family residential $ 1,177,156 $ 1,133,856 $ 27,315 $ 15,985 1.4 % Home equity 152,602 138,979 4,110 9,513 6.8 % Residential real estate 1,329,758 1,272,835 31,425 25,498 2.0 % Commercial real estate 1,924,043 1,449,675 483,548 (9,180) 0.6 % Multi-family residential 517,527 430,428 73,035 14,064 3.3 % Commercial real estate 2,441,570 1,880,103 556,583 4,884 0.3 % Construction and land development 730,573 655,023 19,962 55,588 8.5 % Commercial and industrial 1,007,669 651,731 354,017 1,921 0.3 % Commercial 4,179,812 3,186,857 930,562 62,393 2.0 % Consumer, net of premium/discount 203,497 263,259 — (59,762) 22.7 % Warehouse, net of premium/discount 280,949 — 264,614 16,335 6.2 % Total loans 5,994,016 4,722,951 1,226,601 44,464 0.9 % Deferred fees, net (7,876) (7,028) — (848) 12.1 % Loans receivable, net of deferred fees $ 5,986,140 $ 4,715,923 $ 1,226,601 $ 43,616 0.9 % (1) Loans acquired at fair value NB BANCORP, INC. ORGANIC DEPOSIT GROWTH (Unaudited) (Dollars in thousands) December 31, 2025 September 30, 2025 BP Acquisition (1) Organic $ Change Organic % Change (In thousands) Transactional accounts: Noninterest-bearing demand deposits $ 824,403 $ 607,470 $ 216,370 $ 563 0.1 % Savings accounts 208,672 120,449 78,723 9,500 7.9 % NOW accounts 664,719 477,538 134,075 53,106 11.1 % Money market accounts 1,650,849 1,213,550 427,725 9,574 0.8 % Total transactional accounts 3,348,643 2,419,007 856,893 72,743 3.0 % Customer CD's 1,969,210 1,757,984 157,403 53,823 3.1 % Total core deposits 5,317,853 4,176,991 1,014,296 126,566 3.0 % Total brokered deposits 535,681 388,673 120,000 27,008 6.9 % Total deposits $ 5,853,534 $ 4,565,664 $ 1,134,296 $ 199,309 4.4 % (1) Deposits acquired at fair value NB BANCORP, INC. MERGER & ACQUISITION EXPENSE (Unaudited) (Dollars in thousands) Three months ended Twelve months ended December 31, 2025 Salaries and employee benefits $ 9,986 $ 10,168 Director and professional service fees 2,749 3,864 Occupancy and equipment expenses 571 571 Data processing expenses 1,048 1,149 Marketing and charitable contribution expenses  337 464 General and administrative expenses 1,049 1,049 Total $ 15,740 $ 17,265 View original content to download multimedia:https://www.prnewswire.com/news-releases/nb-bancorp-inc-reports-fourth-quarter-2025-financial-results-declares-quarterly-cash-dividend-announces-share-repurchase-plan-302668511.html SOURCE Needham Bank View all news