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

Rhea-AI Summary

NB Bancorp (Nasdaq: NBBK) reported Q4 2025 net income of $7.7M or $0.19 diluted, and operating net income excluding one-time items of $21.2M or $0.51 diluted. The quarter included $15.7M pre-tax merger costs and $2.1M of BOLI-related tax/penalty tied to the Nov 15, 2025 acquisition of Provident (cash $111.8M plus 5,943,682 shares valued $114.7M).

The acquisition added ~$1.42B assets, $1.23B loans and $1.13B deposits; total assets rose to $7.01B. Net interest margin expanded to 3.92% (+14 bps). The board declared a $0.07 quarterly dividend (payable Feb 19, 2026) and approved a share repurchase plan for up to 2,288,509 shares (~5% outstanding).

Positive

• Acquisition added approximately $1.42B in total assets
• Acquisition added approximately $1.23B in loans and $1.13B in deposits
• Net interest margin expanded 14 bps to 3.92%
• Operating net income of $21.2M or $0.51 per diluted share
• Board authorized share repurchase of up to 2,288,509 shares (~5%)
• Declared quarterly cash dividend of $0.07 per share payable Feb 19, 2026

Negative

• GAAP net income declined to $7.7M due to $15.7M pre-tax merger charges
• BOLI surrender tax and penalty of $2.1M increased tax expense
• Tangible book value per share diluted to $17.98 with 5.3% tangible book dilution
• Shareholders' equity to assets fell to 12.3% from 13.5%
• Effective tax rate rose to 48.2% for the quarter

News Market Reaction

-1.26%

1 alert

-1.26% News Effect

On the day this news was published, NBBK declined 1.26%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net income: $7.7M Q4 2025 diluted EPS: $0.19 Q4 operating net income: $21.2M ($0.51 EPS) +5 more

8 metrics

Q4 2025 net income $7.7M Quarter ended December 31, 2025

Q4 2025 diluted EPS $0.19 Quarter ended December 31, 2025

Q4 operating net income $21.2M ($0.51 EPS) Excludes one-time charges in Q4 2025

Quarterly dividend $0.07 per share Payable February 19, 2026; record date February 5, 2026

Share repurchase authorization 2,288,509 shares (5.0%) New stock repurchase program relative to shares outstanding

Provident acquisition cash $111.8M Cash consideration for Provident on November 15, 2025

Provident stock issued 5,943,682 shares ($114.7M) Shares issued as part of Provident acquisition

Net interest margin 3.92% Q4 2025; up 14 basis points from prior quarter

Market Reality Check

Price: $22.37 Vol: Volume 308,155 is about 1...

high vol

$22.37 Last Close

Volume Volume 308,155 is about 1.6x the 20-day average of 192,743, indicating elevated interest ahead of/around the report. high

Technical Price at $20.47 is trading above the 200-day MA $18.22 and sits 5.1% below the 52-week high of $21.58.

Peers on Argus

NBBK is up 4.44%, while peers are mixed: MBWM (+4.63%) and MCBS (+4.13%) higher,...

NBBK is up 4.44%, while peers are mixed: MBWM (+4.63%) and MCBS (+4.13%) higher, GSBC (-0.66%) lower, CCBG and CCNE only modestly positive. The pattern points to a stock-specific reaction rather than a uniform regional bank move.

Historical Context

5 past events · Latest: Nov 14 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 14	Merger closing	Neutral	-2.1%	Completion of merger with Provident and related systems conversion steps.
Nov 13	Merger terms detail	Neutral	+3.1%	Final proration of cash-or-stock merger consideration and share issuance levels.
Oct 31	Merger timeline	Neutral	-1.8%	Confirmation of election deadline and expected closing date for Provident deal.
Oct 22	Q3 earnings, dividend	Positive	+0.7%	Q3 2025 earnings growth, loan and deposit expansion, and <b>$0.07</b> dividend.
Oct 22	Earnings correction	Neutral	+2.1%	Corrected Q3 metrics, share repurchases, and pending Provident acquisition details.

Pattern Detected

Recent acquisition and earnings headlines have generally seen modest, directionally aligned price moves, with no history of sharp selloffs on positive financial updates.

Recent Company History

Over the last few months, NBBK has focused on the Provident Bancorp merger and steady quarterly results. In Q3 2025, it reported net income of $15.4M and operating net income of $16.0M, alongside a $0.07 dividend. Multiple October–November releases detailed election mechanics and the closing of the Provident deal with share and cash consideration. Today’s fourth-quarter update, plus a new buyback and recurring $0.07 dividend, builds directly on that integration and capital-return narrative.

Market Pulse Summary

This announcement combines Q4 2025 results, integration progress on the Provident acquisition, and s...

Analysis

This announcement combines Q4 2025 results, integration progress on the Provident acquisition, and shareholder returns via a $0.07 dividend and authorization to repurchase up to 2,288,509 shares. Operating earnings and a 3.92% net interest margin highlight underlying strength, while merger-related costs and credit metrics remain key watch points. Investors may focus on ongoing loan and deposit growth, asset quality trends, and future updates on realized cost synergies and capital deployment.

Key Terms

net interest margin, basis points, core deposits, brokered deposits, +4 more

8 terms

net interest margin financial

"Net interest margin expanded by 14 basis points to 3.92% during the current quarter"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

basis points financial

"Net interest margin expanded by 14 basis points to 3.92% during the current quarter"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

core deposits financial

"Core deposits, which the Company considers to be all non-brokered deposits, increased"

Core deposits are the stable, everyday customer balances a bank keeps—like checking and savings accounts and regular business deposits—that are unlikely to be withdrawn suddenly. Think of them as a household’s paycheck direct-deposits: predictable, low-cost funding the bank can rely on. For investors, a larger share of core deposits means steadier cash available, lower borrowing needs and interest expenses, and therefore more predictable earnings and lower risk.

brokered deposits financial

"Brokered deposits increased $147.0 million, or 37.8%, from the prior quarter."

Brokered deposits are large sums of customer cash placed at a bank through a third-party intermediary that shops around for the best interest rate, like a broker assembling a big bucket of savings and directing it to a bank. They matter to investors because they can quickly change a bank’s funding level and cost — providing fast liquidity but also adding volatility and regulatory scrutiny that can affect a bank’s stability and profitability.

provision for credit losses financial

"Provision for credit losses decreased $2.5 million, or 176.1%, to a release"

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

non-performing loans financial

"Non-performing loans totaled $43.4 million as of December 31, 2025, an increase"

Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.

loan-to-value ratio financial

"The vast majority of the cannabis facility loan portfolio balances have a loan-to-value ratio"

The loan-to-value ratio (LTV) measures how large a loan is compared with the worth of the asset used as collateral, expressed as a percentage — for example, a $80,000 loan on a $100,000 property equals an 80% LTV. It matters to investors because higher LTVs mean higher risk of loss if the asset falls in value, and they influence borrowing costs, loan approval, and the stability and pricing of securities backed by such loans; think of it like how deep your financial safety net is under a loan.

purchased credit deteriorated financial

"including $39.9 million in reserves for purchased credit deteriorated ("PCD") loans"

Purchased credit deteriorated (PCD) describes a debt asset bought when its borrower’s ability to repay has already worsened since the loan was first issued. Under accounting rules, buyers must immediately account for the full expected loss rather than spreading it out, so PCD holdings lower reported earnings and capital right away and signal higher credit risk—similar to buying a used car with known damage that you must account for in your budget.

AI-generated analysis. Not financial advice.

NEEDHAM, Mass., Jan. 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; and
  • Tax 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; and
  • State voluntary disclosure agreement tax expenses of $561 thousand for new state income tax expenses; partially offset by
  • Defined 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

 

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SOURCE Needham Bank

FAQ

What did NB Bancorp (NBBK) report for Q4 2025 net income and operating EPS?

NB Bancorp reported Q4 2025 net income of $7.7M ($0.19 diluted) and operating net income of $21.2M ($0.51 diluted).

How did the Provident acquisition affect NBBK's balance sheet in Q4 2025?

The Nov 15, 2025 acquisition added ~$1.42B assets, $1.23B loans and $1.13B deposits; total assets rose to $7.01B.

What one-time charges impacted NB Bancorp's Q4 2025 results (NBBK)?

One-time items included $15.7M pre-tax merger and acquisition costs and a $2.1M BOLI-related tax/penalty.

Did NB Bancorp (NBBK) change capital actions after Q4 2025 results?

Yes. The board declared a $0.07 quarterly dividend payable Feb 19, 2026 and approved a repurchase plan for up to 2,288,509 shares (~5%).

What happened to NB Bancorp's net interest margin and deposit growth in Q4 2025?

Net interest margin expanded to 3.92% (+14 bps). Total deposits increased 28.2% quarter-over-quarter to $5.85B.

How did the Provident deal affect NB Bancorp’s tangible book value per share (NBBK)?

Tangible book value per share declined to $17.98, reflecting 5.3% tangible book dilution due to goodwill and core deposit intangible from the acquisition.