NB Bancorp Q1 2026 earnings jump, dividend set
NB Bancorp, Inc., holding company for Needham Bank, reported strong first quarter 2026 results.
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Rhea-AI Filing Summary
NB Bancorp, Inc., holding company for Needham Bank, reported strong first quarter 2026 results. Net income was $15.0 million, or $0.36 per diluted share, up from $7.7 million, or $0.19, in the prior quarter. Operating net income was $15.8 million, or $0.38 per diluted share, compared with $21.2 million, or $0.51, as prior-quarter results included larger non-recurring items.
Total revenue reached $69.4 million, driven by net interest income of $64.9 million, up 10.4% from the prior quarter, while net interest margin edged up to 3.94%. The provision for credit losses swung to an expense of $6.3 million from a prior release, and noninterest expense declined to $42.7 million from $49.3 million.
Total assets were $7.23 billion, with loans of $6.21 billion and deposits of $6.10 billion as of March 31, 2026. Asset quality metrics remained solid, with non-performing loans at 0.73% of total loans and allowance for credit losses of $80.2 million. The Board declared a quarterly cash dividend of $0.07 per share, payable May 20, 2026 to shareholders of record on May 6, 2026, and approved an Executive Annual Incentive Plan providing senior executives with performance-based annual cash awards up to 125% of target.
Insights
NB Bancorp delivered stronger GAAP earnings, with mixed underlying trends.
NB Bancorp posted Q1 2026 net income of $15.0 million versus $7.7 million in the prior quarter, as merger-related costs and BOLI tax impacts subsided. Net interest income rose 10.4% to $64.9 million, and net interest margin improved to 3.94%, reflecting disciplined asset growth and pricing.
Underlying operating performance softened versus the unusually elevated prior quarter. Operating net income was $15.8 million, down from $21.2 million, and the operating efficiency ratio increased to 60.06% from 53.19%. Credit costs also moved higher, with a $6.3 million provision for credit losses versus a $1.1 million release, and annualized net charge-offs reached 0.91% of average loans.
Balance sheet growth remained robust, with total loans of $6.21 billion and deposits of $6.10 billion as of March 31, 2026. Asset quality ratios stayed relatively low, including non-performing loans at 0.73% of total loans and allowance coverage of 176.0% of non-performing loans. The Board’s $0.07 quarterly dividend and adoption of the executive incentive plan align compensation and payouts with these performance metrics.
8-K Event Classification
Key Figures
Key Terms
Operating net income financial
Net interest margin financial
Allowance for credit losses financial
Non-performing loans financial
Executive Annual Incentive Plan financial
Earnings Snapshot
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in Charter)
| ||||
(State or Other Jurisdiction) | (Commission File No.) | (I.R.S. Employer | ||
of Incorporation) | Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | | Trading | | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 | Results of Operation and Financial Condition. |
On April 22, 2026, NB Bancorp, Inc. (the “Company”), the holding company for Needham Bank, issued a press release in which it announced its earnings for the quarter ended March 31, 2026.
A copy of the press release announcing the results is included as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On April 22, 2026, the Company’s Board of Directors (the “Board”) approved and adopted the NB Bancorp, Inc. and Needham Bank Executive Annual Incentive Plan (the “EAIP”), effective as of January 1, 2026.
The EAIP provides senior management executives of the Company and its affiliates with the opportunity to earn annual cash incentive awards, as determined by the Compensation Committee of the Board (the “Committee”). Under the EAIP, the Committee will establish target award opportunities (expressed as a percentage of base salary), performance goals, and a performance formula for each performance period (generally, the Company’s fiscal year). Awards are contingent upon the achievement of performance goals established by the Committee and may be adjusted, reduced or increased in the Committee’s discretion, subject to the terms of the EAIP. The EAIP also includes a maximum award opportunity of 125% of target and contains customary provisions regarding termination of employment, clawback and compliance with Section 409A of the Internal Revenue Code of 1986, as amended.
The foregoing description of the EAIP does not purport to be complete and is qualified in its entirety by reference to the full text of the EAIP, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 8.01 | Other Events. |
On April 22, 2026, the Board declared a dividend of $0.07 per share. The dividend will be paid May 20, 2026 to stockholders of record as of May 6, 2026.
The Company’s announcement of the Board’s dividend declaration is included in Exhibit 99 to this Current Report on Form 8-K as Exhibit 99.1 and is hereby incorporated by reference.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit No. | | Description |
10.1 | NB Bancorp, Inc. and Needham Bank Executive Annual Incentive Plan | |
99.1 | Press Release dated April 22, 2026 | |
104.1 | Cover Page Interactive Data File (Embedded within Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
NB BANCORP, INC. | ||
DATE: April 22, 2026 | By: | /s/Jean-Pierre Lapointe |
Senior Executive Vice President and Chief Financial Officer |
Exhibit 99.1
NB Bancorp, Inc. Reports First Quarter 2026 Financial Results, Declares Quarterly Cash Dividend
Investor Contact
JP Lapointe, SEVP, CFO
IR@NeedhamBank.com
781-474-5408
Needham, MA, April 22, 2026 – NB Bancorp, Inc. (the “Company”) (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the “Bank”), today announced its first quarter 2026 financial results. The Company reported net income of $15.0 million, or $0.36 per diluted common share, compared to net income of $7.7 million, or $0.19 per diluted common share, for the prior quarter. Operating net income(1), excluding one-time charges, amounted to $15.8 million, or $0.38 per diluted common share, compared to operating net income(1) of $21.2 million, or $0.51 per diluted common share for the prior quarter. The primary difference between net income and operating net income(1) for the first quarter of 2026 was a result of trailing merger and acquisition costs of $534 thousand (pre-tax) related to the Company’s completed acquisition of Provident Bancorp, Inc. (“Provident”) and its subsidiary, BankProv, on November 15, 2025 and non-recurring fees for business line expansion of $500 thousand (pre-tax).
“The first quarter of 2026 marked a pivotal transition for Needham Bank, following the seamless and successful integration of Provident. As a unified organization, we are advancing our technology infrastructure across a broad range of banking systems to position us for increased revenue growth, with a focus on expanding our cash management and payments capabilities and scalability. While expenses increased from front loading these strategic investment costs and the expenditure related to implementing and operating systems in parallel – necessary to preserve business and customer continuity – we anticipate these investments to drive substantial benefits for both customers and shareholders beginning in the second half of 2026, creating value as we pursue ongoing growth. We continued to execute our strategic plan with discipline, evidenced by strong core fundamentals, growing loans and core deposits on an annualized basis during the quarter by 15.0% and 15.7%, respectively, as we deepened and added more business and consumer relationships. Other key performance highlights include solid operating earnings per diluted share of $0.38, operating return on average equity of 7.43%, and consistently high credit quality. Net interest income increased 10.4% from the prior quarter, expanding net interest margin 2 basis points for the quarter and 33 basis points compared to the first quarter of 2025, showing our continued discipline on select assets and our related pricing,” commented Joseph Campanelli, Chairman, President and Chief Executive Officer. “We are proud of our seamless integration, now operating as one team, and remain committed to delivering exceptional service to our customers and community while driving sustained growth and long-term value for our shareholders,” Campanelli continued.
Declaration of Dividend
The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on May 20, 2026, to shareholders of record as of May 6, 2026.
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SELECTED FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER OF 2026
| ● | Net income of $15.0 million, or $0.36 per diluted common share, compared to net income of $7.7 million, or $0.19 per diluted common share, for the prior quarter. Operating net income(1), excluding one-time charges, amounted to $15.8 million, or $0.38 per diluted common share, compared to operating net income(1) of $21.2 million, or $0.51 per diluted common share, for the prior quarter. |
One-time charges during the current quarter include:
| o | Pre-tax trailing merger and acquisition costs of $534 thousand ($390 thousand net of tax) related to the Company’s completed acquisition of Provident; |
| o | Non-recurring fees for business line expansion of $500 thousand ($366 thousand net of tax); and |
| o | Tax expense and a modified endowment contract penalty of $50 thousand related to the surrender of Bank-owned life insurance (“BOLI”) policies from policies acquired from BankProv. |
One-time pre-tax charges during the prior quarter include:
| o | 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 |
| o | Tax expense and a modified endowment contract penalty of $2.1 million related to the surrender of BOLI policies from policies acquired from BankProv. |
| ● | Net interest margin expanded by 2 basis points to 3.94% during the current quarter from 3.92% in the prior quarter. |
| ● | Gross loans increased $223.8 million, or 3.7%, to $6.21 billion, from $5.99 billion the prior quarter. |
| ● | Total deposits increased $243.5 million, or 4.2%, to $6.10 billion, from $5.85 billion in the prior quarter. |
| o | Core deposits, which the Company considers to be all non-brokered deposits, increased $209.1 million, or 3.9%, to $5.53 billion, from $5.32 billion in the prior quarter. |
| o | Brokered deposits increased $34.4 million, or 6.4%, to $570.1 million, from $535.7 million in the prior quarter. |
| ● | Book value per share and tangible book value per share(1) were $18.83 and $18.00, respectively, compared to $18.77 and $17.94, respectively, in the prior quarter. The increase in tangible book value per share(1) was a result of $15.0 million in net income for the quarter, partially offset by the repurchase of 1,288,509 shares during the current quarter at an all-in weighted average cost of $21.55 per share and $3.2 million in dividends paid during the quarter. |
BALANCE SHEET
Total assets amounted to $7.23 billion as of March 31, 2026, representing an increase of $220.3 million, or 3.1%, from $7.01 billion as of December 31, 2025.
| ● | Cash and cash equivalents decreased $32.2 million, or 7.9%, to $375.4 million from $407.6 million in the prior quarter, as a result of the increase in loans of $223.8 million and the repurchase of 1,288,509 shares totaling $27.8 million during the current quarter, partially offset by the increase in deposits of $243.5 million during the current quarter. |
| ● | Net loans increased $231.0 million, or 3.9%, to $6.13 billion, from $5.90 billion in the prior quarter as demand for new loan originations and advances continued. The current quarter increase was primarily seen in commercial and industrial loans, which increased $135.4 million, or 13.4%, construction and land development loans, which increased $52.1 million, or 7.1%, multi-family residential loans, which increased $20.6 million, or 4.0% and residential real estate loans, which increased $11.6 million, or 0.9%. |
| ● | Deposits increased $243.5 million, or 4.2%, to $6.10 billion from $5.85 billion in the prior quarter. The increase in deposits was the result of increases in money market accounts of $92.3 million, or 5.6%, noninterest bearing demand deposits of $44.6 million, or 5.4%, certificates of deposit of $39.1 million, or 2.0%, brokered deposits of $34.4 million, or 6.4% and NOW accounts of $30.4 million, or 4.6%. |
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| ● | Shareholders’ equity decreased $16.2 million, or 1.9%, to $842.8 million, from $858.9 million in the prior quarter, primarily as a result of the repurchase of 1,288,509 shares of common stock at an all-in weighted average cost of $21.55 per share totaling $27.8 million and $3.2 million in dividends paid during the current quarter, partially offset by net income of $15.0 million. Shareholders’ equity to total assets and tangible shareholders’ equity(1) to tangible assets were 11.7% and 11.2% respectively, at the end of the current quarter, compared to 12.3% and 11.8%, respectively, at the end of the prior quarter. |
NET INTEREST INCOME
Net interest income was $64.9 million for the current quarter, compared to $58.8 million for the prior quarter, an increase of $6.1 million, or 10.4%. Net interest margin expanded 2 basis points to 3.94% for the current quarter, from 3.92% in the prior quarter.
| ● | The increase in interest income during the current quarter was primarily attributable to an increase in the average balance of loans as a result of the continued execution of our growth strategy. |
| ● | 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 weighted average rate on money market and certificates of deposit and individual retirement accounts. |
| ● | The ending balance of gross loans of $6.21 billion, is $119.7 million or 2.0%, higher than the average balance of gross loans at the end of the quarter, primarily the result of one large cannabis loan of $115.0 million closing near the end of the quarter, which did not have a significant impact on the yield during the current quarter. |
PROVISION FOR CREDIT LOSSES
Provision for credit losses increased $7.4 million, or 695.9%, to a provision for credit losses of $6.3 million for the current quarter, compared to a release of credit losses of $1.1 million for the prior quarter.
| ● | The provision for credit losses on loans amounted to $6.4 million for the current quarter, compared to a release of $1.6 million for the prior quarter, representing an increase of $7.9 million, or 510.4%, primarily driven by growth in the balance of commercial and industrial loans, along with increased peer commercial real estate credit losses impacting quantitative reserves, and an elevated qualitative factor risk grade for the commercial and industrial portfolio. |
| ● | The release of credit losses on unfunded commitments was $54 thousand for the current quarter, compared to a provision of $493 thousand for the prior quarter, representing a decrease of $547 thousand, or 111.0%, primarily driven by net unfunded commitments increasing $58 million in the prior quarter, compared to $14.5 million in the current quarter. |
NONINTEREST INCOME
Noninterest income was $4.5 million for the current quarter, compared to $4.4 million for the prior quarter, representing an increase of $111 thousand, or 2.5%.
| ● | Loss on sale of loans, net, was $1 thousand for the current quarter, compared to $519 thousand in the prior quarter, representing a decrease of $518 thousand, or 99.8%, 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 prior quarter. |
| ● | Swap contract income was $201 thousand for the current quarter, compared to $677 thousand in the prior quarter, representing a decrease of $476 thousand, or 70.3%, due to decreased swap contract demand. |
| ● | Customer service fees were $3.1 million for the current quarter, compared to $2.9 million in the prior quarter, representing an increase of $235 thousand, or 8.1%, due to increased cash management fees and customer transactional volume. |
| ● | Other income was $210 thousand, compared to $442 thousand in the prior quarter, resulting in a decrease of $232 thousand, or 52.5%, from the recognition of a higher amount of preferred dividends from solar tax credit investments during the prior quarter. |
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NONINTEREST EXPENSE
Noninterest expense for the current quarter was $42.7 million, representing a decrease of $6.6 million, or 13.4%, from $49.3 million for the prior quarter.
| ● | Merger and acquisition expenses were $534 thousand for the current quarter, compared to $15.7 million for the prior quarter, representing a $15.2 million, or 96.6%, decrease due to the completion of the Provident acquisition in the prior quarter. |
| ● | Salaries and employee benefits expenses were $25.5 million for the current quarter, compared to $21.1 million for the prior quarter, representing a $4.3 million, or 20.5%, increase resulting from a full quarter of increased headcount from the Provident acquisition and continued growth. |
| ● | Director and professional service fee expenses were $4.0 million for the current quarter, compared to $2.5 million for the prior quarter, representing an increase of $1.5 million, or 62.0%, resulting from a $500 thousand one-time business expansion fee, legal fees from contract reviews and director stock compensation from grants made during the current quarter. |
| ● | Data processing expenses were $4.4 million for the current quarter, compared to $3.3 million for the prior quarter, representing an increase of $1.1 million, or 32.7%, primarily driven by our significant investment in technology and systems in support of upcoming revenue initiatives, requiring the operation of systems in parallel for a period of time, as well as a full quarter of increased transactional volume from the Provident acquisition. |
| ● | General and administrative expenses were $3.5 million for the current quarter, compared to $2.8 million for the prior quarter, representing an increase of $711 thousand, or 25.2%, mainly a result of a full quarter of amortization of the Provident core deposit intangible. |
INCOME TAXES
Income tax expense for the current quarter was $5.4 million, representing a $1.8 million, or 25.2%, decrease from $7.2 million for the prior quarter. The decrease was primarily driven by the reduction in non-deductible merger and acquisition expenses and BOLI surrender tax and penalty. The effective tax rate and the operating effective tax rate(1) were 26.4% and 26.2%, respectively, for the current quarter, compared to 48.2% and 30.8%, respectively, for the prior quarter. The primary drivers of the decrease in the effective tax rate were gain on BOLI surrender of $6.2 million and non-deductible merger and acquisition expenses of $1.9 million during the prior quarter.
COMMERCIAL REAL ESTATE PORTFOLIO
Commercial real estate loans increased $21.5 million, or 0.9%, to $2.46 billion, during the current quarter.
| ● | Cannabis facility commercial real estate loans decreased $1.2 million, or 0.6%, to $213.8 million during the current quarter. 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 $20.6 million, or 4.0%, during the current quarter to $538.2 million. The Company’s multi-family real estate loan portfolio consists of properties primarily located in the Greater Boston area, all of which are adjustable-rate loans and performing at the end of the current quarter. |
| ● | The Company’s $323.3 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. |
ASSET QUALITY
| ● | The allowance for credit losses (“ACL”) amounted to $80.2 million as of March 31, 2026, or 1.29% of total loans, compared to $87.4 million, or 1.46% of total loans at December 31, 2025. |
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| ● | The Company recorded a provision for credit losses of $6.3 million during the current quarter, which included a provision for $6.4 million for loans and a release of $54 thousand for unfunded commitments, compared to a release of credit losses of $1.1 million during the prior quarter, which included a release of $1.6 million for loans and a provision of $493 thousand for unfunded commitments. |
| ● | The decrease in the ACL for the current quarter was primarily driven by the $10.6 million partial charge-off of a purchased credit deteriorated (“PCD”) commercial and industrial loan, which carried a $10.8 million reserve, partially offset by increases in ACL balance from provisions for credit losses as a result of loan growth, larger peer commercial real estate credit losses realized in the prior quarter impacting quantitative reserves, and an elevated qualitative factor risk grade for the commercial and industrial portfolio. |
| ● | Non-performing loans (“NPLs”) totaled $45.6 million as of March 31, 2026, an increase of $2.2 million, or 5.1%, from $43.4 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 $2.6 million, partially offset by reductions in one-to-four family residential loans on non-accrual. |
| ● | During the current quarter, the Company recorded total net charge-offs of $13.6 million, or 0.91% of average total loans on an annualized basis, which included $12.4 million and $1.2 million in net charge-offs on PCD and non-PCD loans, respectively, compared to net charge-offs of $4.4 million, or 0.32% 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 $12.4 million in charge-offs on previously reserved for PCD commercial and industrial loans. Charge-offs on non-PCD loans declined $3.2 million during the current quarter as a result of a $3.8 million charge-off on a previously reserved for commercial and industrial loan during the prior quarter. |
| ● | 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. |
| ● | 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. |
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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,
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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.
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NB BANCORP, INC. | | | | | | | | |
SELECTED FINANCIAL HIGHLIGHTS | | | | | | | | |
(Unaudited) | | | | | | | | |
(Dollars in thousands, except per share data) | | | | | | | | |
| As of and for the three months ended | |||||||
| March 31, 2026 | | December 31, 2025 | | March 31, 2025 | |||
| | | | | | | | |
Earnings data | | | | | | | | |
Net interest income | $ | 64,868 | | $ | 58,752 | | $ | 43,526 |
Noninterest income | | 4,513 | | | 4,402 | | | 3,882 |
Total revenue | | 69,381 | | | 63,154 | | | 47,408 |
Provision for credit losses | | 6,328 | | | (1,062) | | | 1,158 |
Noninterest expense | | 42,701 | | | 49,334 | | | 28,681 |
Pre-tax income | | 20,352 | | | 14,882 | | | 17,569 |
Net income | | 14,984 | | | 7,707 | | | 12,655 |
Operating net income (non-GAAP) | | 15,791 | | | 21,200 | | | 13,693 |
Operating noninterest expense (non-GAAP) | | 41,667 | | | 33,594 | | | 27,464 |
| | | | | | | | |
Per share data | | | | | | | | |
Earnings per share, basic | $ | 0.37 | | $ | 0.19 | | $ | 0.33 |
Earnings per share, diluted | | 0.36 | | | 0.19 | | | 0.33 |
Operating earnings per share, basic (non-GAAP) | | 0.39 | | | 0.52 | | | 0.35 |
Operating earnings per share, diluted (non-GAAP) | | 0.38 | | | 0.51 | | | 0.35 |
Book value per share | | 18.83 | | | 18.77 | | | 18.23 |
Tangible book value per share (non-GAAP) | | 18.00 | | | 17.94 | | | 18.20 |
| | | | | | | | |
Profitability | | | | | | | | |
Return on average assets | | 0.87% | | | 0.49% | | | 1.00% |
Operating return on average assets (non-GAAP) | | 0.92% | | | 1.35% | | | 1.08% |
Return on average shareholders' equity | | 7.05% | | | 3.82% | | | 6.78% |
Operating return on average shareholders' equity (non-GAAP) | | 7.43% | | | 10.51% | | | 7.33% |
Net interest margin | | 3.94% | | | 3.92% | | | 3.61% |
Cost of deposits | | 2.73% | | | 2.86% | | | 3.11% |
Efficiency ratio | | 61.55% | | | 78.12% | | | 60.50% |
Operating efficiency ratio (non-GAAP) | | 60.06% | | | 53.19% | | | 57.93% |
| | | | | | | | |
Balance sheet, end of period | | | | | | | | |
Total assets | $ | 7,226,437 | | $ | 7,006,130 | | $ | 5,242,157 |
Total loans | | 6,209,910 | | | 5,986,140 | | | 4,464,303 |
Total deposits | | 6,096,988 | | | 5,853,534 | | | 4,326,617 |
Total shareholders' equity | | 842,778 | | | 858,932 | | | 739,611 |
| | | | | | | | |
Asset quality | | | | | | | | |
ACL | $ | 80,195 | | $ | 87,411 | | $ | 38,338 |
ACL / Total NPLs | | 176.0% | | | 201.5% | | | 337.1% |
Total NPLs / Total loans | | 0.73% | | | 0.72% | | | 0.25% |
Annualized net charge-offs / Average total loans | | (0.91)% | | | (0.32)% | | | (0.13)% |
| | | | | | | | |
Capital ratios | | | | | | | | |
Shareholders' equity / Total assets | | 11.66% | | | 12.26% | | | 14.11% |
Tangible shareholders' equity / tangible assets (non-GAAP) | | 11.21% | | | 11.78% | | | 14.09% |
8
NB BANCORP, INC. | | | | | | | | | | | | | | | | |
CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | | | | |
(Dollars in thousands, except share and per share data) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| As of | | March 31, 2026 change from | |||||||||||||
| March 31, 2026 | | December 31, 2025 | | March 31, 2025 | | December 31, 2025 | | March 31, 2025 | |||||||
Assets | | | | | | | | | | | | | | | | |
Cash and due from banks | $ | 327,739 | | $ | 325,711 | | $ | 201,140 | | $ | 2,028 | 0.6% | | $ | 126,599 | 62.9% |
Federal funds sold | | 47,618 | | | 81,885 | | | 112,306 | | | (34,267) | (41.8)% | | | (64,688) | (57.6)% |
Total cash and cash equivalents | | 375,357 | | | 407,596 | | | 313,446 | | | (32,239) | (7.9)% | | | 61,911 | 19.8% |
| | | | | | | | | | | | | | | | |
Available-for-sale securities, at fair value | | 277,241 | | | 268,959 | | | 234,680 | | | 8,282 | 3.1% | | | 42,561 | 18.1% |
| | | | | | | | | | | | | | | | |
Loans held for sale, at fair value | | 63,971 | | | 66,447 | | | - | | | (2,476) | (3.7)% | | | 63,971 | 0.0% |
| | | | | | | | | | | | | | | | |
Loans receivable, net of deferred fees | | 6,209,910 | | | 5,986,140 | | | 4,464,303 | | | 223,770 | 3.7% | | | 1,745,607 | 39.1% |
Allowance for credit losses | | (80,195) | | | (87,411) | | | (38,338) | | | 7,216 | (8.3)% | | | (41,857) | 109.2% |
Net loans | | 6,129,715 | | | 5,898,729 | | | 4,425,965 | | | 230,986 | 3.9% | | | 1,703,750 | 38.5% |
| | | | | | | | | | | | | | | | |
Accrued interest receivable | | 27,150 | | | 25,390 | | | 19,533 | | | 1,760 | 6.9% | | | 7,617 | 39.0% |
Banking premises and equipment, net | | 47,335 | | | 46,209 | | | 34,069 | | | 1,126 | 2.4% | | | 13,266 | 38.9% |
Non-public investments | | 40,738 | | | 33,740 | | | 24,710 | | | 6,998 | 20.7% | | | 16,028 | 64.9% |
Bank-owned life insurance ("BOLI") | | 110,586 | | | 104,335 | | | 103,688 | | | 6,251 | 6.0% | | | 6,898 | 6.7% |
Prepaid expenses and other assets | | 67,749 | | | 68,079 | | | 55,305 | | | (330) | (0.5)% | | | 12,444 | 22.5% |
Goodwill | | 18,512 | | | 18,512 | | | - | | | - | 0.0% | | | 18,512 | 0.0% |
Core deposit intangible, net | | 18,411 | | | 19,303 | | | 1,042 | | | (892) | (4.6)% | | | 17,369 | 1666.9% |
Deferred income tax asset, net | | 49,672 | | | 48,831 | | | 29,719 | | | 841 | 1.7% | | | 19,953 | 67.1% |
Total assets | $ | 7,226,437 | | $ | 7,006,130 | | $ | 5,242,157 | | $ | 220,307 | 3.1% | | $ | 1,984,280 | 37.9% |
| | | | | | | | | | | | | | | | |
Liabilities and shareholders' equity | | | | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | | | | |
Core deposits | $ | 5,526,936 | | $ | 5,317,853 | | $ | 4,017,378 | | $ | 209,083 | 3.9% | | $ | 1,509,558 | 37.6% |
Brokered deposits | | 570,052 | | | 535,681 | | | 309,239 | | | 34,371 | 6.4% | | | 260,813 | 84.3% |
Total deposits | | 6,096,988 | | | 5,853,534 | | | 4,326,617 | | | 243,454 | 4.2% | | | 1,770,371 | 40.9% |
Mortgagors' escrow accounts | | 4,858 | | | 5,193 | | | 4,464 | | | (335) | (6.5)% | | | 394 | 8.8% |
Federal Home Loan Bank ("FHLB") borrowings | | 189,701 | | | 196,235 | | | 90,835 | | | (6,534) | (3.3)% | | | 98,866 | 108.8% |
Accrued expenses and other liabilities | | 70,983 | | | 70,716 | | | 60,344 | | | 267 | 0.4% | | | 10,639 | 17.6% |
Accrued retirement liabilities | | 21,129 | | | 21,520 | | | 20,286 | | | (391) | (1.8)% | | | 843 | 4.2% |
Total liabilities | | 6,383,659 | | | 6,147,198 | | | 4,502,546 | | | 236,461 | 3.8% | | | 1,881,113 | 41.8% |
| | | | | | | | | | | | | | | | |
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; 44,765,178 issued and | | | | | | | | | | | | | | | | |
outstanding at March 31, 2026, 45,770,128 issued and outstanding at December 31, 2025 | | | | | | | | | | | | | | | | |
and 40,570,433 issued and outstanding at March 31, 2025 | | 448 | | | 458 | | | 406 | | | (10) | (2.2)% | | | 42 | 10.3% |
Additional paid-in capital | | 432,858 | | | 458,864 | | | 376,773 | | | (26,006) | (5.7)% | | | 56,085 | 14.9% |
Unallocated common shares held by the Employee Stock Ownership Plan ("ESOP") | | (41,873) | | | (42,454) | | | (44,231) | | | 581 | (1.4)% | | | 2,358 | (5.3)% |
Retained earnings | | 456,978 | | | 445,200 | | | 413,128 | | | 11,778 | 2.6% | | | 43,850 | 10.6% |
Accumulated other comprehensive loss | | (5,633) | | | (3,136) | | | (6,465) | | | (2,497) | 79.6% | | | 832 | (12.9)% |
Total shareholders' equity | | 842,778 | | | 858,932 | | | 739,611 | | | (16,154) | (1.9)% | | | 103,167 | 13.9% |
| | | | | | | | | | | | | | | | |
Total liabilities and shareholders' equity | $ | 7,226,437 | | $ | 7,006,130 | | $ | 5,242,157 | | $ | 220,307 | 3.1% | | $ | 1,984,280 | 37.9% |
9
NB BANCORP, INC. | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | | | | | |
(Unaudited) | | | | | | | | | | | | | | | | |
(Dollars in thousands, except share and per share data) | | | | | | | | | | | | | | | | |
| | | | | | | | | | Three Months Ended March 31, 2026 | ||||||
| For the Three Months Ended | | Change From Three Months Ended | |||||||||||||
| March 31, 2026 | | December 31, 2025 | | March 31, 2025 | | December 31, 2025 | | March 31, 2025 | |||||||
INTEREST AND DIVIDEND INCOME | | | | | | | | | | | | | | | | |
Interest and fees on loans | $ | 100,042 | | $ | 91,485 | | $ | 71,440 | | $ | 8,557 | 9.4% | | $ | 28,602 | 40.0% |
Interest on securities | | 2,708 | | | 2,658 | | | 2,290 | | | 50 | 1.9% | | | 418 | 18.3% |
Interest and dividends on cash equivalents and other | | 2,936 | | | 3,219 | | | 3,121 | | | (283) | (8.8)% | | | (185) | (5.9)% |
Total interest and dividend income | | 105,686 | | | 97,362 | | | 76,851 | | | 8,324 | 8.5% | | | 28,835 | 37.5% |
| | | | | | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | |
Interest on deposits | | 39,579 | | | 37,677 | | | 32,239 | | | 1,902 | 5.0% | | | 7,340 | 22.8% |
Interest on borrowings | | 1,239 | | | 933 | | | 1,086 | | | 306 | 32.8% | | | 153 | 14.1% |
Total interest expense | | 40,818 | | | 38,610 | | | 33,325 | | | 2,208 | 5.7% | | | 7,493 | 22.5% |
| | | | | | | | | | | | | | | | |
NET INTEREST INCOME | | 64,868 | | | 58,752 | | | 43,526 | | | 6,116 | 10.4% | | | 21,342 | 49.0% |
| | | | | | | | | | | | | | | | |
PROVISION FOR CREDIT LOSSES | | | | | | | | | | | | | | | | |
Provision for (release of) credit losses - loans | | 6,382 | | | (1,555) | | | 947 | | | 7,937 | (510.4)% | | | 5,435 | 573.9% |
(Release of) provision for credit losses - unfunded commitments | | (54) | | | 493 | | | 211 | | | (547) | (111.0)% | | | (265) | (125.6)% |
Total provision for (release of) credit losses | | 6,328 | | | (1,062) | | | 1,158 | | | 7,390 | (695.9)% | | | 5,170 | 446.5% |
| | | | | | | | | | | | | | | | |
NET INTEREST INCOME AFTER | | | | | | | | | | | | | | | | |
PROVISION FOR (RELEASE OF) CREDIT LOSSES | | 58,540 | | | 59,814 | | | 42,368 | | | (1,274) | (2.1)% | | | 16,172 | 38.2% |
| | | | | | | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | |
Customer service fees | | 3,131 | | | 2,896 | | | 2,558 | | | 235 | 8.1% | | | 573 | 22.4% |
Increase in cash surrender value of BOLI | | 853 | | | 844 | | | 1,031 | | | 9 | 1.1% | | | (178) | (17.3)% |
Mortgage banking income | | 119 | | | 62 | | | 149 | | | 57 | 91.9% | | | (30) | (20.1)% |
Swap contract income | | 201 | | | 677 | | | 88 | | | (476) | (70.3)% | | | 113 | 128.4% |
(Loss) gain on sale of loans, net | | (1) | | | (519) | | | 27 | | | 518 | (99.8)% | | | (28) | (103.7)% |
Other income | | 210 | | | 442 | | | 29 | | | (232) | (52.5)% | | | 181 | 624.1% |
Total noninterest income | | 4,513 | | | 4,402 | | | 3,882 | | | 111 | 2.5% | | | 631 | 16.3% |
| | | | | | | | | | | | | | | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | 25,468 | | | 21,134 | | | 19,149 | | | 4,334 | 20.5% | | | 6,319 | 33.0% |
Director and professional service fees | | 4,049 | | | 2,500 | | | 2,148 | | | 1,549 | 62.0% | | | 1,901 | 88.5% |
Occupancy and equipment expenses | | 2,491 | | | 1,954 | | | 1,580 | | | 537 | 27.5% | | | 911 | 57.7% |
Data processing expenses | | 4,439 | | | 3,344 | | | 2,765 | | | 1,095 | 32.7% | | | 1,674 | 60.5% |
Marketing and charitable contribution expenses | | 1,033 | | | 1,087 | | | 846 | | | (54) | (5.0)% | | | 187 | 22.1% |
FDIC and state insurance assessments | | 1,152 | | | 751 | | | 813 | | | 401 | 53.4% | | | 339 | 41.7% |
Merger and acquisition expenses | | 534 | | | 15,740 | | | - | | | (15,206) | (96.6)% | | | 534 | 0.0% |
General and administrative expenses | | 3,535 | | | 2,824 | | | 1,380 | | | 711 | 25.2% | | | 2,155 | 156.2% |
Total noninterest expense | | 42,701 | | | 49,334 | | | 28,681 | | | (6,633) | (13.4)% | | | 14,020 | 48.9% |
| | | | | | | | | | | | | | | | |
INCOME BEFORE TAXES | | 20,352 | | | 14,882 | | | 17,569 | | | 5,470 | 36.8% | | | 2,783 | 15.8% |
| | | | | | | | | | | | | | | | |
INCOME TAX EXPENSE | | 5,368 | | | 7,175 | | | 4,914 | | | (1,807) | (25.2)% | | | 454 | 9.2% |
| | | | | | | | | | | | | | | | |
NET INCOME | $ | 14,984 | | $ | 7,707 | | $ | 12,655 | | $ | 7,277 | 94.4% | | $ | 2,329 | 18.4% |
| | | | | | | | | | | | | | | | |
Weighted average common shares outstanding, basic | | 40,969,748 | | | 40,870,969 | | | 38,755,746 | | | 98,779 | 0.2% | | | 2,214,002 | 5.7% |
Weighted average common shares outstanding, diluted | | 41,421,002 | | | 41,172,645 | | | 38,755,746 | | | 248,357 | 0.6% | | | 2,665,256 | 6.9% |
Earnings per share, basic | $ | 0.37 | | $ | 0.19 | | $ | 0.33 | | $ | 0.18 | 94.7% | | $ | 0.04 | 12.1% |
Earnings per share, diluted | $ | 0.36 | | $ | 0.19 | | $ | 0.33 | | $ | 0.17 | 89.5% | | $ | 0.03 | 9.1% |
10
NB BANCORP, INC.
AVERAGE BALANCES, INTEREST EARNED/PAID & AVERAGE YIELDS
(Unaudited)
(Dollars in thousands)
| | For the Three Months Ended |
| ||||||||||||||||||||||
| | March 31, 2026 | | December 31, 2025 |
| March 31, 2025 |
| ||||||||||||||||||
| | 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) | | $ | 6,090,227 | | $ | 100,042 |
| 6.66 | % | $ | 5,410,208 | | $ | 91,485 |
| 6.71 | % | $ | 4,366,206 | | $ | 71,440 |
| 6.64 | % |
Securities | |
| 273,308 | |
| 2,708 |
| 4.02 | % |
| 250,435 | |
| 2,658 |
| 4.21 | % |
| 230,406 | |
| 2,290 |
| 4.03 | % |
Other investments (5) | |
| 28,275 | |
| 265 |
| 3.80 | % |
| 25,659 | |
| 627 |
| 9.69 | % |
| 27,529 | |
| 219 |
| 3.23 | % |
Short-term investments (5) | |
| 290,385 | |
| 2,671 |
| 3.73 | % |
| 265,146 | |
| 2,592 |
| 3.88 | % |
| 264,343 | |
| 2,902 |
| 4.45 | % |
Total interest-earning assets | |
| 6,682,195 | |
| 105,686 |
| 6.41 | % |
| 5,951,448 | |
| 97,362 |
| 6.49 | % |
| 4,888,484 | |
| 76,851 |
| 6.38 | % |
Non-interest-earning assets | |
| 375,966 | | | |
| | |
| 344,709 | |
| |
| | |
| 296,729 | |
| |
| | |
Allowance for credit losses | |
| (88,102) | | | |
| | |
| (68,363) | |
| |
| | |
| (38,685) | |
| |
| | |
Total assets | | $ | 6,970,059 | | | |
| | | $ | 6,227,794 | |
| |
| | | $ | 5,146,528 | |
| |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | |
| | |
| |
| | |
| | |
| |
| | |
| | |
| |
| | |
Savings accounts | | $ | 207,681 | |
| 263 |
| 0.51 | % | $ | 164,423 | |
| 217 |
| 0.52 | % | $ | 113,750 | |
| 46 |
| 0.16 | % |
NOW accounts | |
| 639,347 | |
| 2,006 |
| 1.27 | % |
| 557,988 | |
| 1,601 |
| 1.14 | % |
| 470,469 | |
| 1,074 |
| 0.93 | % |
Money market accounts | |
| 1,711,672 | |
| 12,732 |
| 3.02 | % |
| 1,435,761 | |
| 11,602 |
| 3.21 | % |
| 1,073,041 | |
| 8,716 |
| 3.29 | % |
Certificates of deposit and individual retirement accounts | |
| 2,497,213 | |
| 24,578 |
| 3.99 | % |
| 2,351,324 | |
| 24,257 |
| 4.09 | % |
| 1,979,184 | |
| 22,403 |
| 4.59 | % |
Total interest-bearing deposits | |
| 5,055,913 | |
| 39,579 |
| 3.17 | % |
| 4,509,496 | |
| 37,677 |
| 3.31 | % |
| 3,636,444 | |
| 32,239 |
| 3.60 | % |
FHLB borrowings | |
| 135,441 | |
| 1,239 |
| 3.71 | % |
| 92,927 | |
| 933 |
| 3.98 | % |
| 91,168 | |
| 1,086 |
| 4.83 | % |
Total interest-bearing liabilities | |
| 5,191,354 | |
| 40,818 |
| 3.19 | % |
| 4,602,423 | |
| 38,610 |
| 3.33 | % |
| 3,727,612 | |
| 33,325 |
| 3.63 | % |
Non-interest-bearing deposits | |
| 819,830 | |
| |
| | |
| 720,467 | |
| |
| | |
| 571,552 | |
| |
| | |
Other non-interest-bearing liabilities | |
| 97,370 | | | |
| | |
| 104,914 | |
| |
| | |
| 90,023 | |
| |
| | |
Total liabilities | |
| 6,108,554 | | | |
| | |
| 5,427,804 | |
| |
| | |
| 4,389,187 | |
| |
| | |
Shareholders' equity | |
| 861,505 | | | |
| | |
| 799,990 | |
| |
| | |
| 757,341 | |
| |
| | |
Total liabilities and shareholders' equity | | $ | 6,970,059 | | | |
| | | $ | 6,227,794 | |
| |
| | | $ | 5,146,528 | |
| |
| | |
Net interest income | | | | | $ | 64,868 |
| | |
| | | $ | 58,752 |
| | |
| | | $ | 43,526 |
| | |
Net interest rate spread (1) | | | | | | |
| 3.22 | % |
| | |
| |
| 3.16 | % |
| | |
| |
| 2.75 | % |
Net interest-earning assets (2) | | $ | 1,490,841 | | | |
| | | $ | 1,349,025 | | | |
| | | $ | 1,160,872 | | | |
| | |
Net interest margin (3) | | | | | | |
| 3.94 | % |
| | |
| |
| 3.92 | % |
| | |
| |
| 3.61 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Average interest-earning assets to interest-bearing liabilities | |
| 128.72 | % | | |
| | |
| 129.31 | % |
| |
| | |
| 131.14 | % |
| |
| | |
(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) Loans include loans held for sale, at fair value. Other investments are comprised of FRB stock, FHLB stock and swap collateral accounts. Short-term investments are comprised of cash and cash equivalents.
11
NB BANCORP, INC.
COMMERCIAL REAL ESTATE BY COLLATERAL TYPE
(Unaudited)
(Dollars in thousands)
| March 31, 2026 | ||||||||||
| Owner-Occupied | | Non-Owner-Occupied | | Balance | | Percentage | ||||
Multi-Family | $ | — | | $ | 538,164 | | $ | 538,164 | | | 21% |
Office | | 41,929 | | | 281,375 | | | 323,304 | | | 13% |
Hospitality | | 39,270 | | | 236,798 | | | 276,068 | | | 11% |
Industrial | | 128,550 | | | 146,492 | | | 275,042 | | | 11% |
Mixed-Use | | 22,506 | | | 199,728 | | | 222,234 | | | 9% |
Cannabis Facility | | 204,766 | | | 8,998 | | | 213,764 | | | 9% |
Retail | | 53,211 | | | 109,978 | | | 163,189 | | | 7% |
Special Purpose | | 86,767 | | | 61,678 | | | 148,445 | | | 6% |
Self Storage Facilities | | — | | | 87,590 | | | 87,590 | | | 4% |
Recreational Vehicle Parks | | 13,587 | | | 73,922 | | | 87,509 | | | 4% |
Other | | 51,615 | | | 76,102 | | | 127,717 | | | 5% |
Total commercial real estate | $ | 642,201 | | $ | 1,820,825 | | $ | 2,463,026 | | | 100% |
| Change From December 31, 2025 | | Change From March 31, 2025 | ||||||||||||||||||||
| Owner-Occupied | | Non-Owner-Occupied | | Balance | | Percentage | | Owner-Occupied | | Non-Owner-Occupied | | Balance | | Percentage | ||||||||
Multi-Family | $ | — | | $ | 20,637 | | $ | 20,637 | | | 4% | | $ | — | | $ | 196,545 | | $ | 196,545 | | | 58% |
Office | | 2,211 | | | 34,804 | | | 37,015 | | | 13% | | | 16,187 | | | 120,262 | | | 136,449 | | | 73% |
Hospitality | | 2,275 | | | (9,515) | | | (7,240) | | | (3)% | | | 39,270 | | | 64,513 | | | 103,783 | | | 60% |
Industrial | | (25,850) | | | (9,810) | | | (35,660) | | | (11)% | | | 4,332 | | | 72,697 | | | 77,029 | | | 39% |
Mixed-Use | | (4,535) | | | 2,740 | | | (1,795) | | | (1)% | | | 14,853 | | | 87,199 | | | 102,052 | | | 85% |
Cannabis Facility | | (1,157) | | | (87) | | | (1,244) | | | (1)% | | | (102,736) | | | (6,178) | | | (108,914) | | | (34)% |
Retail | | 8,194 | | | 6,132 | | | 14,326 | | | 10% | | | 8,795 | | | 22,546 | | | 31,341 | | | 24% |
Special Purpose | | (1,760) | | | (533) | | | (2,293) | | | (2)% | | | 8,070 | | | 7,493 | | | 15,563 | | | 12% |
Self Storage Facilities | | — | | | 23,275 | | | 23,275 | | | 36% | | | — | | | 87,590 | | | 87,590 | | | 0% |
Recreational Vehicle Parks | | (1,578) | | | (368) | | | (1,946) | | | (2)% | | | 13,587 | | | 73,922 | | | 87,509 | | | 0% |
Other | | (298) | | | (23,321) | | | (23,619) | | | (16)% | | | 11,228 | | | 5,252 | | | 16,480 | | | 15% |
Total commercial real estate | $ | (22,498) | | $ | 43,954 | | $ | 21,456 | | | 1% | | $ | 13,586 | | $ | 731,841 | | $ | 745,427 | | | 43% |
| December 31, 2025 | | March 31, 2025 | ||||||||||||||||||||
| Owner-Occupied | | Non-Owner-Occupied | | Balance | | Percentage | | Owner-Occupied | | Non-Owner-Occupied | | Balance | | Percentage | ||||||||
Multi-Family | $ | — | | $ | 517,527 | | $ | 517,527 | | | 21% | | $ | — | | | 341,619 | | $ | 341,619 | | | 20% |
Office | | 39,718 | | | 246,571 | | | 286,289 | | | 12% | | | 25,742 | | | 161,113 | | | 186,855 | | | 11% |
Hospitality | | 36,995 | | | 246,313 | | | 283,308 | | | 12% | | | — | | | 172,285 | | | 172,285 | | | 10% |
Industrial | | 154,400 | | | 156,302 | | | 310,702 | | | 13% | | | 124,218 | | $ | 73,795 | | | 198,013 | | | 12% |
Mixed-Use | | 27,041 | | | 196,988 | | | 224,029 | | | 9% | | | 7,653 | | | 112,529 | | | 120,182 | | | 7% |
Cannabis Facility | | 205,923 | | | 9,085 | | | 215,008 | | | 9% | | | 307,502 | | | 15,176 | | | 322,678 | | | 19% |
Retail | | 45,017 | | | 103,846 | | | 148,863 | | | 6% | | | 44,416 | | | 87,432 | | | 131,848 | | | 8% |
Special Purpose | | 88,527 | | | 62,211 | | | 150,738 | | | 6% | | | 78,697 | | | 54,185 | | | 132,882 | | | 8% |
Self Storage Facilities | | — | | | 64,315 | | | 64,315 | | | 3% | | | — | | | — | | | — | | | 0% |
Recreational Vehicle Parks | | 15,165 | | | 74,290 | | | 89,455 | | | 4% | | | — | | | — | | | — | | | 0% |
Other | | 51,913 | | | 99,423 | | | 151,336 | | | 5% | | | 40,387 | | | 70,850 | | | 111,237 | | | 5% |
Total commercial real estate | $ | 664,699 | | $ | 1,776,871 | | $ | 2,441,570 | | | 100% | | $ | 628,615 | | $ | 1,088,984 | | $ | 1,717,599 | | | 100% |
12
NB BANCORP, INC. | | | | | | | | |
NON-GAAP RECONCILIATION | | | | | | | | |
(Unaudited) | | | | | | | | |
(Dollars in thousands) | | | | | | | | |
| For the Three Months Ended | |||||||
| March 31, 2026 | | December 31, 2025 | | March 31, 2025 | |||
| | | | | | | | |
Net income (GAAP) | $ | 14,984 | | $ | 7,707 | | $ | 12,655 |
| | | | | | | | |
Add (Subtract): | | | | | | | | |
Adjustments to net income: | | | | | | | | |
Defined benefit pension termination refund | | - | | | - | | | 1,217 |
Non-recurring fees for business line expansion | | 500 | | | - | | | - |
BOLI surrender tax and modified endowment contract penalty | | 50 | | | 2,092 | | | 154 |
Merger and acquisition expenses | | 534 | | | 15,740 | | | - |
Total adjustments to net income | $ | 1,084 | | $ | 17,832 | | $ | 1,371 |
Less net tax benefit associated with pre-tax non-GAAP adjustments to net income | | 277 | | | 4,339 | | | 333 |
Non-GAAP adjustments, net of tax | | 807 | | | 13,493 | | | 1,038 |
Operating net income (non-GAAP) | $ | 15,791 | | $ | 21,200 | | $ | 13,693 |
Weighted average common shares outstanding, basic | | 40,969,748 | | | 40,870,969 | | | 38,755,746 |
Weighted average common shares outstanding, diluted | | 41,421,002 | | | 41,172,645 | | | 38,755,746 |
Operating earnings per share, basic (non-GAAP) | $ | 0.39 | | $ | 0.52 | | $ | 0.35 |
Operating earnings per share, diluted (non-GAAP) | $ | 0.38 | | $ | 0.51 | | $ | 0.35 |
| | | | | | | | |
Pre-tax income (GAAP) | $ | 20,352 | | $ | 14,882 | | $ | 17,569 |
| | | | | | | | |
Add (Subtract): | | | | | | | | |
Adjustments to pre-tax income: | | | | | | | | |
Defined benefit pension termination refund | | - | | | - | | | 1,217 |
Non-recurring fees for business line expansion | | 500 | | | - | | | - |
Merger and acquisition expenses | | 534 | | | 15,740 | | | - |
Total adjustments to pre-tax income | | 1,034 | | | 15,740 | | | 1,217 |
Operating pre-tax income (non-GAAP) | $ | 21,386 | | $ | 30,622 | | $ | 18,786 |
| | | | | | | | |
Noninterest expense (GAAP) | $ | 42,701 | | $ | 49,334 | | $ | 28,681 |
| | | | | | | | |
Subtract (Add): | | | | | | | | |
Adjustments to noninterest expense: | | | | | | | | |
Defined benefit pension termination refund | $ | - | | $ | - | | $ | 1,217 |
Non-recurring fees for business line expansion | | 500 | | | - | | | - |
Merger and acquisition expenses | | 534 | | | 15,740 | | | - |
Total impact of non-GAAP noninterest expense adjustments | $ | 1,034 | | $ | 15,740 | | $ | 1,217 |
Noninterest expense on an operating basis (non-GAAP) | $ | 41,667 | | $ | 33,594 | | $ | 27,464 |
| | | | | | | | |
Operating net income (non-GAAP) | $ | 15,791 | | $ | 21,200 | | $ | 13,693 |
Average assets | | 6,970,059 | | | 6,227,794 | | | 5,146,528 |
Operating return on average assets (non-GAAP) | | 0.92% | | | 1.35% | | | 1.08% |
Average shareholders’ equity | $ | 861,505 | | $ | 799,990 | | $ | 757,341 |
Operating return on average shareholders' equity (non-GAAP) | | 7.43% | | | 10.51% | | | 7.33% |
| | | | | | | | |
Noninterest expense on an operating basis (non-GAAP) | $ | 41,667 | | $ | 33,594 | | $ | 27,464 |
Total pre-provision net revenue (net interest income plus total noninterest income) | | 69,381 | | | 63,154 | | | 47,408 |
Operating efficiency ratio (non-GAAP) | | 60.06% | | | 53.19% | | | 57.93% |
| | | | | | | | |
Income tax expense (GAAP) | $ | 5,368 | | $ | 7,175 | | $ | 4,914 |
| | | | | | | | |
Add (Subtract): | | | | | | | | |
Adjustments to income tax expense: | | | | | | | | |
Net tax benefit associated with pre-tax non-GAAP adjustments to net income | | 277 | | | 4,339 | | | 333 |
BOLI surrender tax and modified endowment contract penalty | | (50) | | | (2,092) | | | (154) |
Total impact of non-GAAP income tax expense adjustments | $ | 227 | | $ | 2,247 | | $ | 179 |
Income tax expense on an operating basis (non-GAAP) | $ | 5,595 | | $ | 9,422 | | $ | 5,093 |
| | | | | | | | |
Operating effective tax rate (non-GAAP) | | 26.2% | | | 30.8% | | | 27.1% |
13
| As of | |||||||
| March 31, 2026 | | December 31, 2025 | | March 31, 2025 | |||
| | | | | | | | |
Total shareholders’ equity (GAAP) | $ | 842,778 | | $ | 858,932 | | $ | 739,611 |
Subtract: | | | | | | | | |
Intangible assets (core deposit intangible and goodwill) | | 36,923 | | | 37,815 | | | 1,042 |
Total tangible shareholders’ equity (non-GAAP) | | 805,855 | | | 821,117 | | | 738,569 |
| | | | | | | | |
Total assets (GAAP) | | 7,226,437 | | | 7,006,130 | | | 5,242,157 |
Subtract: | | | | | | | | |
Intangible assets (core deposit intangible and goodwill) | | 36,923 | | | 37,815 | | | 1,042 |
Total tangible assets (non-GAAP) | $ | 7,189,514 | | $ | 6,968,315 | | $ | 5,241,115 |
Tangible shareholders' equity / tangible assets (non-GAAP) | | 11.21% | | | 11.78% | | | 14.09% |
Total common shares outstanding | | 44,765,178 | | | 45,770,128 | | | 40,570,443 |
Tangible book value per share (non-GAAP) | $ | 18.00 | | $ | 17.94 | | $ | 18.20 |
14
NB BANCORP, INC.
ASSET QUALITY – NON-PERFORMING ASSETS (1)
(Unaudited)
(Dollars in thousands)
| | March 31, 2026 | | December 31, 2025 | | March 31, 2025 | |||
Real estate loans: | | | | | | | | | |
One-to-four-family residential | | $ | 1,763 | | $ | 2,712 | | $ | 3,043 |
Home equity | | | 1,673 | | | 1,359 | | | 1,157 |
Commercial real estate | | | 394 | | | 855 | | | 841 |
Construction and land development | | | 10 | | | 10 | | | 10 |
Commercial and industrial | | | 38,885 | | | 36,251 | | | 4,560 |
Consumer | | | 2,838 | | | 2,184 | | | 1,761 |
Total | | $ | 45,563 | | $ | 43,371 | | $ | 11,372 |
| | | | | | | | | |
Total non-performing loans to total loans | | | 0.73% | | | 0.72% | | | 0.25% |
Total non-performing PCD loans to total loans | | | 0.49% | | | 0.60% | | | 0.00% |
Total non-performing non-PCD loans to total loans | | | 0.24% | | | 0.12% | | | 0.25% |
| | | | | | | | | |
Total non-performing assets to total assets | | | 0.63% | | | 0.62% | | | 0.22% |
Total non-performing PCD assets to total assets | | | 0.42% | | | 0.51% | | | 0.00% |
Total non-performing non-PCD assets to total assets | | | 0.21% | | | 0.11% | | | 0.22% |
(1) Non-performing loans and assets are comprised of non-accrual loans
15
NB BANCORP, INC.
ASSET QUALITY – PROVISION, ALLOWANCE, AND NET (CHARGE-OFFS) RECOVERIES
(Unaudited)
(Dollars in thousands)
| For the Three Months Ended | |||||||
| March 31, 2026 | | December 31, 2025 | | March 31, 2025 | |||
Allowance for credit losses at beginning of the period | $ | 87,411 | | $ | 43,052 | | $ | 38,744 |
| | | | | | | | |
Adjustment to allowance for Provident acquisition | | — | | | 50,271 | | | — |
| | | | | | | | |
Provision for (release of) credit losses |
| 6,382 | | | (1,555) | | | 947 |
| | | | | | | | |
Charge-offs: |
| | |
| | |
| |
One-to-Four-Family Residential | | (56) | | | — | | | — |
Commercial & Industrial | | (12,370) | | | (3,763) | | | — |
Consumer | | (1,409) | | | (1,325) | | | (1,558) |
Commercial real estate | | — | | | (17) | | | — |
Total charge-offs | | (13,835) | | | (5,105) | | | (1,558) |
| | | | | | | | |
Recoveries of loans previously charged off: | | | | | | | | |
Commercial and industrial | | 12 | | | 562 | | | 12 |
Consumer | | 225 | | | 186 | | | 193 |
Total recoveries | | 237 | | | 748 | | | 205 |
| | | | | | | | |
Net charge-offs | | (13,598) | | | (4,357) | | | (1,353) |
| | | | | | | | |
Allowance for credit losses at end of the period | $ | 80,195 | | $ | 87,411 | | $ | 38,338 |
| | | | | | | | |
Allowance to non-performing loans | | 176% | | | 202% | | | 337.1% |
Allowance to total loans outstanding at the end of the period | | 1.29% | | | 1.46% | | | 0.86% |
Annualized net charge-offs to average loans outstanding during the period | | (0.91)% | | | (0.32)% | | | (0.13)% |
Annualized net charge-offs to average loans outstanding during the period - PCD loans | | (0.82)% | | | 0.00% | | | 0.00% |
Annualized net charge-offs to average loans outstanding during the period - Non-PCD loans | | (0.08)% | | | (0.32)% | | | (0.13)% |
16