NEEDHAM, Mass., April 22, 2026 /PRNewswire/ -- 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.
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:
- Pre-tax trailing merger and acquisition costs of $534 thousand ($390 thousand net of tax) related to the Company's completed acquisition of Provident;
- Non-recurring fees for business line expansion of $500 thousand ($366 thousand net of tax); and
- 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:
- 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.
- 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.
- 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.
- 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%.
- 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.
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.
- 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.
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
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 %
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 %
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 %
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 Balance Interest Yield/Rate Balance Interest Yield/Rate
(4) (4) (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 2,497,213 24,578 3.99 2,351,324 24,257 4.09 1,979,184 22,403 4.59
% % %
retirement accounts
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' $
6,970,059 $
6,227,794 $
5,146,528
equity
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 128.72 129.31 131.14
% % %
interest-bearing liabilities
(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.
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- Non-Owner- Balance Percentage Owner- Non-Owner- Balance Percentage
Occupied Occupied Occupied Occupied
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 $
(22,498) $
43,954 $
21,456 1 % $
13,586 $
731,841 $
745,427 43 %
estate
December 31, 2025
March 31, 2025
Owner- Non-Owner- Balance Percentage Owner- Non-Owner- Balance Percentage
Occupied Occupied Occupied Occupied
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 $
664,699 $
1,776,871 $
2,441,570 100 % $
628,615 $
1,088,984 $
1,717,599 100 %
estate
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 %
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
NB BANCORP, INC.
ASSET QUALITY - NON-PERFORMING ASSETS
(1)
(Unaudited)
(Dollars in thousands)
March 31, December 31, 2025 March 31,
2026 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
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) %
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SOURCE Needham Bank
