NEEDHAM, Mass., Oct. 15, 2026 /PRNewswire/ -- NB Bancorp, Inc. (the "Company") (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the "Bank"), today announced its third quarter 2026 financial results.
SELECTED FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER OF 2026
- Net income for the third quarter of 2026 amounted to $23.1 million, or $0.58 per diluted common share, compared to net income of $21.1 million, or $0.53 per diluted common share, for the prior quarter. Return on average assets and return on average equity for the third quarter of 2026 were 1.23% and 10.73%, respectively, representing increases from 1.17% and 10.03%, respectively, for the prior quarter.
- Operating net income(1) for the third quarter of 2026 increased 8.9% and amounted to $23.8 million, or $0.60 per diluted common share, compared to operating net income(1) of $21.9 million, or $0.55 per diluted common share, for the prior quarter. Operating return on average assets(1) and operating return on average equity(1) for the third quarter of 2026 were 1.26% and 11.05%, respectively, representing increases from 1.21% and 10.39%, respectively, for the prior quarter.
One-time pre-tax charged during the current quarter include:
- Contract settlement fees of $871 thousand ($695 thousand net of tax);
One-time pre-tax charges during the prior quarter include:
- Non-recurring fees for business line expansion of $649 thousand ($499 thousand net of tax);
- Final merger and acquisition costs of $296 thousand ($227 thousand net of tax) related to the Company's acquisition of Provident; and
- Tax expense and a modified endowment contract penalty of $27 thousand related to the surrender of Bank-owned life insurance ("BOLI") policies acquired from BankProv.
- Net interest margin declined by 3 basis points to 3.97% from 4.00% in the prior quarter as gross loans increased 5.3% while total deposits increased 3.2% during the current quarter. Net interest margin, excluding purchase accounting adjustments(1), declined by 6 basis points to 3.81% during the current quarter from 3.87% in the prior quarter.
- Efficiency ratio increased to 60.5% from 58.9% in the prior quarter, while operating efficiency ratio(1) increased to 59.3% from 57.7% in the prior quarter.
- Net charge-offs (annualized) as a percent of average loans increased to 0.31% from 0.07% in the prior quarter, primarily from the charge off of a previously reserved for purchased-credit-deteriorated ("PCD") C&I loan of $4.0 million from the acquisition of BankProv. Non-performing loans as a percent of total loans increased to 0.53% at the end of the third quarter from 0.43% at the end of the prior quarter as a result of an acquired loan being placed on non-accrual during the current quarter. We continue to actively reduce the non-strategic enterprise value loan portfolio acquired from BankProv, which has reduced from $207.0 million at acquisition to $95.9 million as of September 30, 2026.
- Book value per share and tangible book value per share(1) were $19.57 and $18.91, respectively, in the current quarter, compared to $19.22 and $18.51, respectively, in the prior quarter. The increase in tangible book value per share(1) was a result of $23.1 million in net income for the quarter, partially offset by increased accumulated other comprehensive loss of $7.4 million resulting from market rate increases and $3.0 million in dividends paid during the quarter.
"The third quarter of 2026 displayed Needham Bank's continued execution of our growth strategy as we continue to take market share and go up market for new customers. In the third quarter, gross loans increased 5.3%, while total deposits increased 3.2%. Through the first three quarters of 2026, total loans and total deposits have increased by 17.4% and 15.2%, respectively, on an annualized basis, while operating EPS has increased 27%. Our strong earnings performance reflects the continued momentum of our franchise, disciplined execution of our growth strategy, and the trust our customers place in us. We are expanding thoughtfully, investing in our capabilities and talent, and maintaining a strong balance sheet and prudent risk management. As we look ahead, we remain confident in our ability to deliver sustainable growth and long-term value for our customers, employees, communities, and shareholders," stated Joseph Campanelli, Chairman, President and Chief Executive Officer.
Declaration of Dividend
The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 12, 2026, to shareholders of record as of October 29, 2026.
BALANCE SHEET
Total assets amounted to $7.68 billion as of September 30, 2026, representing an increase of $237.1 million, or 3.2%, from $7.45 billion as of June 30, 2026.
- Cash and cash equivalents decreased $134.1 million, or 33.5%, to $266.1 million from $400.2 million in the prior quarter, as a result of loan growth of $346.7 million and Federal Home Loan Bank ("FHLB") borrowings paydowns of $30.9 million, partially offset by deposit growth of $201.3 million, along with net income earned during the quarter of $23.1 million.
- Gross loans increased $343.0 million, or 5.3%, to $6.77 billion, from $6.42 billion in the prior quarter. Net loans increased $346.7 million, or 5.5%, to $6.69 billion, from $6.34 billion in the prior quarter as loan demand remained strong and we continued to execute our strategic plan. The current quarter change was primarily seen in commercial real estate loans, excluding multi-family real estate loans, which increased $183.2 million, or 8.6%, construction and land development loans, which increased $80.8 million, or 10.6%, residential real estate loans, which increased $43.5 million, or 3.1%, and mortgage warehouse loans, which increased $20.4 million, or 9.4%.
- Deposits increased $201.3 million, or 3.2%, to $6.52 billion from $6.32 billion in the prior quarter.
- Core deposits, which the Company considers to be all non-brokered deposits, increased $228.5 million, or 4.1%, to $5.83 billion, from $5.60 billion in the prior quarter. The change in core deposits was primarily the result of money market accounts, which increased $111.9 million, or 6.7%, customer certificates of deposits, which increased $48.8 million, or 2.4%, noninterest bearing demand deposits, which increased $44.9 million, or 4.7%, and NOW accounts, which increased $15.1 million, or 2.0%.
- Brokered deposits decreased $27.2 million, or 3.8%, to $692.6 million, from $719.9 million in the prior quarter.
- Accrued expenses and other liabilities increased $49.9 million, or 64.3%, to $127.4 million from $77.5 million in the prior quarter, primarily as a result of the Company calling $20.4 million in collateral on our derivatives and a $15.8 million increase in the value of our derivatives driven by market rate changes, a $4.8 million increase in deferred solar investments for two new solar tax credit investments closed during the current quarter, a $1.4 million discount on low income housing tax credits purchased during the current quarter and additional increases for normal quarterly accruals based on financial results and headcount including federal income taxes, bonus and payroll.
- Shareholders' equity increased $15.4 million, or 1.8%, to $857.4 million, from $842.0 million in the prior quarter, primarily as a result of net income of $23.1 million, partially offset by increased accumulated other comprehensive losses driven by increased market rates and $3.0 million in dividends paid during the current quarter. Shareholders' equity to total assets and tangible shareholders' equity(1) to tangible assets were 11.2% and 10.8%, respectively, at the end of the current quarter, compared to 11.3% and 10.9%, respectively, at the end of the prior quarter.
NET INTEREST INCOME
Net interest income increased $2.3 million, or 3.3%, to $71.4 million for the current quarter, compared to $69.1 million for the prior quarter. Net interest margin declined 3 basis points to 3.97% for the current quarter, from 4.00% in the prior quarter.
- Interest income increased during the current quarter, primarily attributable to an increase in the average balance of loans as a result of the continued execution of our growth strategy.
- Interest expense increased for the current quarter, primarily driven by increases in the average balances of certificates of deposit and individual retirement accounts and money market accounts, along with an increase in the average balance of Federal Reserve Bank ("FRB") borrowings, partially offset by a decrease in the average balance of FHLB borrowings.
PROVISION FOR CREDIT LOSSES
Provision for credit losses decreased $1.9 million, or 61.0%, to a provision for credit losses of $1.2 million for the current quarter, compared to a provision for credit losses of $3.2 million for the prior quarter.
- The provision for credit losses on loans decreased $1.6 million, or 53.5%, to $1.4 million for the current quarter, compared to $3.0 million for the prior quarter, primarily driven by improvements in the credit quality of our individually evaluated loans resulting in reduced specific reserve requirements.
NONINTEREST INCOME
Noninterest income decreased $454 thousand, or 8.2%, to $5.1 million for the current quarter, compared to $5.6 million for the prior quarter.
- Gain (loss) on sale of loans, net, decreased $412 thousand to a $185 thousand loss in the current quarter, compared to a $227 thousand gain in the prior quarter, resulting from the deterioration in the fair market value of consumer loans held for sale during the current quarter.
- Other income decreased $192 thousand, or 36.6%, to $333 thousand for the current quarter, compared to $525 thousand in the prior quarter, primarily driven by $229 thousand of credit card branding and marketing income recognized during the prior quarter.
- Customer service fees decreased $176 thousand, or 4.8%, to $3.5 million for the current quarter, compared to $3.7 million in the prior quarter due to decreased loan fee income.
- The above decreases were partially offset by an increase in swap contract income of $407 thousand, or 565.3%, to $479 thousand for the current quarter, compared to $72 thousand for the prior quarter due to increased origination of swaps in the current quarter.
NONINTEREST EXPENSE
Noninterest expense increased $2.3 million, or 5.1%, to $46.3 million for the current quarter, compared to $44.0 million for the prior quarter.
- Salaries and employee benefits expenses increased $2.0 million, or 7.6%, to $27.5 million for the current quarter, compared to $25.5 million for the prior quarter, primarily resulting from continued hirings and business line expansion, including branch expansion and the build out of other growth initiatives which will provide benefit in the years ahead.
- Occupancy and equipment expenses increased $579 thousand, or 23.5%, to $3.0 million for the current quarter, compared to $2.5 million for the prior quarter, primarily resulting from contract settlement fees of $347 thousand.
- Data processing expenses increased $452 thousand, or 9.2%, to $5.4 million for the current quarter, compared to $4.9 million for the prior quarter, primarily driven by our continued investment in technology and systems in support of upcoming revenue initiatives, requiring the operation of systems in parallel for a period of time while new systems are implemented.
- Director and professional service fees increased $342 thousand, or 9.0%, to $4.2 million for the current quarter, compared to $3.8 million for the prior quarter, primarily driven by contract settlement fees of $524 thousand.
- The above increases were partially offset by reductions of $457 thousand, or 29.9%, in marketing and charitable contributions, as a result of reduced media expenditures and reductions of $452 thousand, or 13.8%, in general and administrative expenses, primarily driven by a $296 thousand reduction in merger and acquisition expenses and a $176 thousand reduction in education and training expenses during the current quarter.
INCOME TAXES
Income tax expense decreased $486 thousand, or 7.6%, to $5.9 million for the current quarter, compared to $6.4 million for the prior quarter. The effective tax rate and the operating effective tax rate(1) were both 20.3% for the current quarter, compared to 23.2% and 23.1%, respectively, for the prior quarter. The primary driver of the decrease in income tax expense and the effective tax rate were state tax credits purchased during the current quarter.
COMMERCIAL REAL ESTATE PORTFOLIO
Commercial real estate loans, including multi-family real estate loans, increased $200.5 million, or 7.5%, to $2.89 billion, during the current quarter.
- Cannabis facility commercial real estate loans decreased $14.6 million, or 6.9%, to $195.5 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 $17.2 million, or 3.0%, during the current quarter to $585.0 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 $365.0 million commercial real estate 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 and all loans is performing at the end of the current quarter.
ASSET QUALITY
- The allowance for credit losses ("ACL") amounted to $78.3 million as of September 30, 2026, or 1.16% of gross loans, compared to $82.1 million, or 1.28% of gross loans as of June 30, 2026.
- The Company recorded a provision for credit losses of $1.2 million during the current quarter, which included a provision for credit losses on loans of $1.4 million and a release of credit losses for unfunded commitments of $145 thousand, compared to a provision for credit losses of $3.2 million during the prior quarter, which included a provision for credit losses on loans of $3.0 million and a provision for credit losses for unfunded commitments of $199 thousand.
- The decrease in the ACL for the current quarter was primarily driven by reduced specific reserve requirements on individually assessed loans due to credit improvements and a charge off of a previously reserved PCD C&I loan of $4.0 million, partially offset by current quarter loan growth.
- Non-performing loans ("NPLs") increased $8.4 million, or 30.4%, to $36.1 million as of September 30, 2026, from $27.7 million at the end of the prior quarter. The increase was primarily due to a commercial real estate loan acquired from BankProv being placed on non-accrual during the current quarter. The ACL as a percent of NPLs is 217% as of September 30, 2026, a decrease from 297% at the end of the prior quarter, primarily from a charge off of a PCD C&I loan of $4.0 million, partially offset by the increase in commercial real estate loans on non-accrual of $12.6 million.
- During the current quarter, the Company recorded total net charge-offs of $5.2 million, or 0.31% of average total loans on an annualized basis, compared to net charge-offs of $1.1 million, or 0.07% of average total loans on an annualized basis, in the prior quarter. The $4.1 million increase in net charge-offs during the current quarter was primarily a result of a $4.0 million charge off on a previously reserved PCD C&I loan which was identified as a PCD loan at acquisition and was fully reserved for in the prior quarter. No additional provisions were recognized during the current quarter to reserve for losses against this loan.
- As part of its ongoing credit risk management framework and prudent oversight, the Company periodically reviews lending relationships across all portfolios to ensure alignment with its risk appetite, regulatory expectations, and evolving market conditions.
- 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 and commercial and industrial loans. These loans are primarily made to individuals and businesses located in the Greater Boston metropolitan area and surrounding communities in greater New England.
(1) Represents a non-GAAP measure. See Non-GAAP reconciliation of the corresponding GAAP measures on pages 13 and 14.
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. 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, net interest income, excluding purchase accounting adjustments, operating noninterest expense, operating income tax expense, 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 shareholders, 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
September 30, June 30, 2026 September 30,
2026 2025
Earnings data
Net interest income $
71,440 $
69,145 $
48,175
Noninterest income 5,105 5,559 3,682
Total revenue 76,545 74,704 51,857
Provision for credit losses 1,246 3,193 1,396
Noninterest expense 46,281 44,017 30,499
Pre-tax income 29,018 27,494 19,962
Net income 23,133 21,123 15,362
Operating net income (non-GAAP) 23,828 21,877 16,002
Operating noninterest expense (non-GAAP) 45,410 43,072 30,244
Per share data
Earnings per share, basic $
0.59 $
0.53 $
0.43
Earnings per share, diluted 0.58 0.53 0.43
Operating earnings per share, basic (non-GAAP) 0.60 0.55 0.45
Operating earnings per share, diluted (non-GAAP) 0.60 0.55 0.45
Book value per share 19.57 19.22 18.51
Tangible book value per share (non-GAAP) 18.91 18.51 18.49
Profitability
Return on average assets 1.23 % 1.17 % 1.16 %
Operating return on average assets (non-GAAP) 1.26 % 1.21 % 1.20 %
Return on average shareholders' equity 10.73 % 10.03 % 8.35 %
Operating return on average shareholders' equity (non-GAAP) 11.05 % 10.39 % 8.70 %
Net interest margin 3.97 % 4.00 % 3.78 %
Net interest margin, excluding purchase accounting adjustments 3.81 % 3.87 % 3.78 %
Cost of deposits 2.69 % 2.68 % 2.92 %
Efficiency ratio 60.5 % 58.9 % 58.8 %
Operating efficiency ratio (non-GAAP) 59.3 % 57.7 % 58.3 %
Balance sheet, end of period
Total assets $
7,683,996 $
7,446,880 $
5,442,446
Total loans 6,821,759 6,482,821 4,715,923
Total deposits 6,521,396 6,320,090 4,565,720
Total shareholders' equity 857,403 842,002 737,034
Asset quality
ACL $
78,305 $
82,088 $
43,052
ACL / Total NPLs 217.1 % 296.8 % 379.1 %
Total NPLs / Total loans 0.53 % 0.43 % 0.24 %
Annualized net charge-offs / Average total loans (0.31) % (0.07) % (0.05) %
Capital ratios
Shareholders' equity / Total assets 11.16 % 11.31 % 13.54 %
Tangible shareholders' equity / tangible assets (non-GAAP) 10.82 % 10.94 % 13.53 %
NB BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
As of September 30, 2026 change from
September 30, June 30, 2026 September 30,
2026 2025 June 30, 2026 September 30, 2025
Assets
Cash and due from banks $
238,502 $
372,522 $
197,604 $
(134,020) (36.0) % $
40,898 20.7 %
Federal funds sold 27,555 27,632 97,829 (77) (0.3) % (70,274) (71.8) %
Total cash and cash equivalents 266,057 400,154 295,433 (134,097) (33.5) % (29,376) (9.9) %
Available-for-sale securities, at fair value 279,518 272,640 231,023 6,878 2.5 % 48,495 21.0 %
Loans held for sale, at fair value 55,906 59,927 (4,021) (6.7) % 55,906 0.0 %
Loans receivable, net of deferred fees 6,765,853 6,422,894 4,715,923 342,959 5.3 % 2,049,930 43.5 %
Allowance for credit losses (78,305) (82,088) (43,052) 3,783 (4.6) % (35,253) 81.9 %
Net loans 6,687,548 6,340,806 4,672,871 346,742 5.5 % 2,014,677 43.1 %
Accrued interest receivable 29,971 28,898 21,074 1,073 3.7 % 8,897 42.2 %
Banking premises and equipment, net 51,107 49,298 33,842 1,809 3.7 % 17,265 51.0 %
Non-public investments 49,161 42,029 44,531 7,132 17.0 % 4,630 10.4 %
Bank-owned life insurance ("BOLI") 98,178 97,370 56,342 808 0.8 % 41,836 74.3 %
Prepaid expenses and other assets 71,048 69,228 57,720 1,820 2.6 % 13,328 23.1 %
Goodwill 16,520 18,512 (1,992) (10.8) % 16,520 0.0 %
Core deposit intangible, net 16,628 17,519 967 (891) (5.1) % 15,661 1619.5 %
Deferred income tax asset, net 62,354 50,499 28,643 11,855 23.5 % 33,711 117.7 %
Total assets $
7,683,996 $
7,446,880 $
5,442,446 $
237,116 3.2 % $
2,241,550 41.2 %
Liabilities and shareholders' equity
Deposits
Core deposits $
5,828,759 $
5,600,238 $
4,177,047 $
228,521 4.1 % $
1,651,712 39.5 %
Brokered deposits 692,637 719,852 388,673 (27,215) (3.8) % 303,964 78.2 %
Total deposits 6,521,396 6,320,090 4,565,720 201,306 3.2 % 1,955,676 42.8 %
Mortgagors' escrow accounts 4,919 4,420 4,543 499 11.3 % 376 8.3 %
Federal Home Loan Bank ("FHLB") borrowings 150,322 181,247 41,453 (30,925) (17.1) % 108,869 262.6 %
Accrued expenses and other liabilities 127,414 77,549 73,139 49,865 64.3 % 54,275 74.2 %
Accrued retirement liabilities 22,542 21,572 20,557 970 4.5 % 1,985 9.7 %
Total liabilities 6,826,593 6,604,878 4,705,412 221,715 3.4 % 2,121,181 45.1 %
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; 43,818,490 issued and
outstanding at September 30, 2026 and June 30, 2026 and 39,826,446 issued and outstanding
at September 30, 2025 438 438 398 0.0 % 40 10.1 %
Additional paid-in capital 417,943 415,841 342,526 2,102 0.5 % 75,417 22.0 %
Unallocated common shares held by the Employee Stock Ownership Plan ("ESOP") (40,690) (41,285) (43,049) 595 (1.4) % 2,359 (5.5) %
Retained earnings 495,082 474,970 440,281 20,112 4.2 % 54,801 12.4 %
Accumulated other comprehensive loss (15,370) (7,962) (3,122) (7,408) 93.0 % (12,248) 392.3 %
Total shareholders' equity 857,403 842,002 737,034 15,401 1.8 % 120,369 16.3 %
Total liabilities and shareholders' equity $
7,683,996 $
7,446,880 $
5,442,446 $
237,116 3.2 % $
2,241,550 41.2 %
NB BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except share and per share data)
For the Three Months Ended
Change From Three Months Ended
September 30, June 30, 2026 September 30,
2026 2025 June 30, 2026 September 30, 2025
INTEREST AND DIVIDEND INCOME
Interest and fees on loans $
110,730 $
106,574 $
77,365 $
4,156 3.9 % $
33,365 43.1 %
Interest on securities 3,144 2,758 2,253 386 14.0 % 891 39.5 %
Interest and dividends on cash equivalents and other 2,282 2,460 2,070 (178) (7.2) % 212 10.2 %
Total interest and dividend income 116,156 111,792 81,688 4,364 3.9 % 34,468 42.2 %
INTEREST EXPENSE
Interest on deposits 42,896 40,686 31,273 2,210 5.4 % 11,623 37.2 %
Interest on borrowings 1,820 1,961 2,240 (141) (7.2) % (420) (18.8) %
Total interest expense 44,716 42,647 33,513 2,069 4.9 % 11,203 33.4 %
NET INTEREST INCOME 71,440 69,145 48,175 2,295 3.3 % 23,265 48.3 %
PROVISION FOR CREDIT LOSSES
Provision for credit losses - loans 1,391 2,994 1,041 (1,603) (53.5) % 350 33.6 %
(Release of) provision for credit losses - unfunded commitments (145) 199 355 (344) (172.9) % (500) (140.8) %
Total provision for credit losses 1,246 3,193 1,396 (1,947) (61.0) % (150) (10.7) %
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 70,194 65,952 46,779 4,242 6.4 % 23,415 50.1 %
NONINTEREST INCOME
Customer service fees 3,505 3,681 2,498 (176) (4.8) % 1,007 40.3 %
Increase in cash surrender value of BOLI 808 962 631 (154) (16.0) % 177 28.1 %
Mortgage banking income 165 92 148 73 79.3 % 17 11.5 %
Swap contract income 479 72 208 407 565.3 % 271 130.3 %
Gain (loss) on sale of loans, net (185) 227 45 (412) (181.5) % (230) (511.1) %
Other income 333 525 152 (192) (36.6) % 181 119.1 %
Total noninterest income 5,105 5,559 3,682 (454) (8.2) % 1,423 38.6 %
NONINTEREST EXPENSE
Salaries and employee benefits 27,499 25,549 18,641 1,950 7.6 % 8,858 47.5 %
Director and professional service fees 4,158 3,816 2,920 342 9.0 % 1,238 42.4 %
Occupancy and equipment expenses 3,047 2,468 1,559 579 23.5 % 1,488 95.4 %
Data processing expenses 5,351 4,899 2,911 452 9.2 % 2,440 83.8 %
Marketing and charitable contribution expenses 1,073 1,530 949 (457) (29.9) % 124 13.1 %
FDIC and state insurance assessments 1,434 1,584 928 (150) (9.5) % 506 54.5 %
Core deposit intangible amortization expense 892 892 37 0.0 % 855 2310.8 %
General and administrative expenses 2,827 3,279 2,554 (452) (13.8) % 273 10.7 %
Total noninterest expense 46,281 44,017 30,499 2,264 5.1 % 15,782 51.7 %
INCOME BEFORE TAXES 29,018 27,494 19,962 1,524 5.5 % 9,056 45.4 %
INCOME TAX EXPENSE 5,885 6,371 4,600 (486) (7.6) % 1,285 27.9 %
NET INCOME $
23,133 $
21,123 $
15,362 $
2,010 9.5 % $
7,771 50.6 %
Weighted average common shares outstanding, basic 39,432,499 39,693,140 35,372,205 (260,641) (0.7) % 4,060,294 11.5 %
Weighted average common shares outstanding, diluted 39,833,964 40,000,305 35,579,456 (166,341) (0.4) % 4,254,508 12.0 %
Earnings per share, basic $
0.59 $
0.53 $
0.43 $
0.06 11.3 % $
0.16 37.2 %
Earnings per share, diluted $
0.58 $
0.53 $
0.43 $
0.05 9.4 % $
0.15 34.9 %
NB BANCORP, INC.
AVERAGE BALANCES, INTEREST EARNED/PAID & AVERAGE YIELDS
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
September 30, 2026
June 30, 2026 September 30, 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) $
6,599,690 $
110,730 6.66 $
6,377,025 $
106,574 6.70 $
4,612,631 $
77,365 6.65
% % %
Securities 280,383 3,144 4.45 279,196 2,758 3.96 236,187 2,253 3.78
% % %
Other investments (5) 22,788 252 4.39 34,301 612 7.16 32,585 223 2.72
% % %
Short-term investments (5) 243,386 2,030 3.31 237,667 1,848 3.12 178,290 1,847 4.11
% % %
Total interest-earning assets 7,146,247 116,156 6.45 6,928,189 111,792 6.47 5,059,693 81,688 6.41
% % %
Non-interest-earning assets 409,580 394,611 256,928
Allowance for credit losses (81,486) (81,276) (42,746)
Total assets $
7,474,341 $
7,241,524 $
5,273,875
Interest-bearing liabilities:
Savings accounts $
218,715 488 0.89 $
210,544 324 0.62 $
121,704 181 0.59
% % %
NOW accounts 770,406 2,771 1.43 701,167 2,265 1.30 467,761 1,397 1.18
% % %
Money market accounts 1,735,863 13,305 3.04 1,699,366 12,783 3.02 1,119,539 9,331 3.31
% % %
Certificates of deposit and individual retirement accounts 2,682,909 26,332 3.89 2,595,290 25,314 3.91 1,933,665 20,364 4.18
% % %
Total interest-bearing deposits 5,407,893 42,896 3.15 5,206,367 40,686 3.13 3,642,669 31,273 3.41
% % %
FHLB borrowings 78,665 868 4.38 208,453 1,956 3.76 199,852 2,240 4.45
% % %
FRB borrowings 100,543 952 3.76 549 5 3.65
% % %
Total interest-bearing liabilities 5,587,101 44,716 3.18 5,415,369 42,647 3.16 3,842,521 33,513 3.46
% % %
Non-interest-bearing deposits 915,117 883,487 606,046
Other non-interest-bearing liabilities 116,917 98,225 95,329
Total liabilities 6,619,135 6,397,081 4,543,896
Shareholders' equity 855,206 844,443 729,979
Total liabilities and shareholders' equity $
7,474,341 $
7,241,524 $
5,273,875
Net interest income $
71,440 $
69,145 $
48,175
Net interest rate spread (1) 3.27 3.31 2.95
% % %
Net interest-earning assets (2) $
1,559,146 $
1,512,820 $
1,217,172
Net interest margin (3) 3.97 4.00 3.78
% % %
Average interest-earning assets to 127.91 127.94 131.68
% % %
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)
September 30, 2026
Owner-Occupied Non-Owner-
Occupied Balance Percentage
Multi-Family
$ $
584,967 $
584,967 19 %
Industrial 194,827 166,816 361,643 13 %
Office 43,627 321,332 364,959 13 %
Hospitality 811 305,332 306,143 11 %
Retail 126,658 199,417 326,075 11 %
Mixed-Use 24,524 237,946 262,470 9 %
Cannabis Facility 186,687 8,827 195,514 7 %
Special Purpose 83,062 115,289 198,351 7 %
Recreational Vehicle Parks 11,057 64,962 76,019 3 %
Self Storage Facilities 55,191 55,191 2 %
Other 79,346 79,028 158,374 5 %
Total commercial real estate $
750,599 $
2,139,107 $
2,889,706 100 %
Change From June 30, 2026
Change From September 30, 2025
Owner-Occupied Non-Owner- Balance Percentage Owner-Occupied Non-Owner-
Occupied Occupied Balance Percentage
Multi-Family
$ $
17,245 $
17,245 3 %
$ $
154,539 $
154,539 36 %
Industrial 9,819 3,704 13,523 4 % 117,339 54,152 171,491 90 %
Office (1,008) 28,725 27,717 8 % 18,370 137,414 155,784 74 %
Hospitality (40,455) 58,090 17,635 6 % (35,362) 93,990 58,628 24 %
Retail 335 90,216 90,551 38 % 88,037 113,078 201,115 161 %
Mixed-Use 2,116 12,554 14,670 6 % 16,509 77,495 94,004 56 %
Cannabis Facility (14,466) (86) (14,552) (7) % (68,048) (341) (68,389) (26) %
Special Purpose (1,593) 45,452 43,859 28 % 2,152 58,523 60,675 44 %
Recreational Vehicle Parks (2,198) (200) (2,398) (3) % 11,057 64,962 76,019 100 %
Self Storage Facilities (15,956) (15,956) (22) % 55,191 55,191 100 %
Other (8,198) 16,361 8,163 5 % 40,741 9,805 50,546 47 %
Total commercial real estate $
(55,648) $
256,105 $
200,457 7 % $
190,795 $
818,808 $
1,009,603 54 %
June 30, 2026
September 30, 2025
Owner-Occupied Non-Owner- Balance Percentage Owner-Occupied Non-Owner-
Occupied Occupied Balance Percentage
Multi-Family
$ $
567,722 $
567,722 20 %
$ $
430,428 $
430,428 23 %
Industrial 185,008 163,112 348,120 13 % 77,488 112,664 190,152 10 %
Office 44,635 292,607 337,242 12 % 25,257 183,918 209,175 11 %
Hospitality 41,266 247,242 288,508 11 % 36,173 211,342 247,515 13 %
Retail 126,323 109,201 235,524 9 % 38,621 86,339 124,960 7 %
Mixed-Use 22,408 225,392 247,800 9 % 8,015 160,451 168,466 9 %
Cannabis Facility 201,153 8,913 210,066 8 % 254,735 9,168 263,903 14 %
Special Purpose 84,655 69,837 154,492 6 % 80,910 56,766 137,676 7 %
Recreational Vehicle Parks 13,255 65,162 78,417 3 % 0 %
Self Storage Facilities 71,147 71,147 3 % 0 %
Other 87,544 62,667 150,211 6 % 38,605 69,223 107,828 6 %
Total commercial real estate $
806,247 $
1,883,002 $
2,689,249 100 % $
559,804 $
1,320,299 $
1,880,103 100 %
NB BANCORP, INC.
NON-GAAP RECONCILIATION
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
September 30, June 30, 2026 September 30,
2026 2025
Net income (GAAP) $
23,133 $
21,123 $
15,362
Add (Subtract):
Adjustments to net income:
Non-recurring fees for business line expansion 649
Contract settlement fees 871
BOLI surrender tax and modified endowment contract penalty 27
Defined benefit pension termination refund (739)
State tax expense - voluntary disclosure agreements 561
Merger and acquisition expenses 296 994
Total adjustments to net income $
871 $
972 $
816
Less net tax benefit associated with pre-tax non-GAAP adjustments to net income 176 218 176
Non-GAAP adjustments, net of tax 695 754 640
Operating net income (non-GAAP) $
23,828 $
21,877 $
16,002
Weighted average common shares outstanding, basic 39,432,499 39,693,140 35,372,205
Weighted average common shares outstanding, diluted 39,833,964 40,000,305 35,579,456
Operating earnings per share, basic (non-GAAP) $
0.60 $
0.55 $
0.45
Operating earnings per share, diluted (non-GAAP) $
0.60 $
0.55 $
0.45
Pre-tax income (GAAP) $
29,018 $
27,494 $
19,962
Add (Subtract):
Adjustments to pre-tax income:
Contract settlement fees 871
Defined benefit pension termination refund (739)
Non-recurring fees for business line expansion 649
Merger and acquisition expenses 296 994
Total adjustments to pre-tax income 871 945 255
Operating pre-tax income (non-GAAP) $
29,889 $
28,439 $
20,217
Net interest income (GAAP) $
71,440 $
69,145 $
48,175
Subtract (Add):
Adjustments to net interest income:
Purchase accounting adjustments 2,614 1,972
Total impact of non-GAAP net interest income adjustments $
2,614 $
1,972
$
Net interest income, excluding purchase accounting adjustments (non-GAAP) $
68,826 $
67,173 $
48,175
Noninterest expense (GAAP) $
46,281 $
44,017 $
30,499
Subtract (Add):
Adjustments to noninterest expense:
Contract settlement fees 871
Non-recurring fees for business line expansion 649
Defined benefit pension termination refund (739)
Merger and acquisition expenses 296 994
Total impact of non-GAAP noninterest expense adjustments $
871 $
945 $
255
Operating noninterest expense (non-GAAP) $
45,410 $
43,072 $
30,244
Operating net income (non-GAAP) $
23,828 $
21,877 $
16,002
Average assets 7,474,341 7,241,524 5,273,875
Operating return on average assets (non-GAAP) 1.26 % 1.21 % 1.20 %
Average shareholders' equity $
855,206 $
844,443 $
729,979
Operating return on average shareholders' equity (non-GAAP) 11.05 % 10.39 % 8.70 %
Operating noninterest expense (non-GAAP) $
45,410 $
43,072 $
30,244
Total pre-provision net revenue (net interest income plus total noninterest income) 76,545 74,704 51,857
Operating efficiency ratio (non-GAAP) 59.32 % 57.66 % 58.32 %
Income tax expense (GAAP) $
5,885 $
6,371 $
4,600
Add (Subtract):
Adjustments to income tax expense:
State tax expense - voluntary disclosure agreements (561)
Net tax benefit associated with pre-tax non-GAAP adjustments to net income 176 218 176
BOLI surrender tax and modified endowment contract penalty (27)
Total impact of non-GAAP income tax expense adjustments $
176 $
191 $
(385)
Operating income tax expense (non-GAAP) $
6,061 $
6,562 $
4,215
Operating effective tax rate (non-GAAP) 20.3 % 23.1 % 20.8 %
As of
September 30, June 30, 2026 September 30,
2026 2025
Total shareholders' equity (GAAP) $
857,403 $
842,002 $
737,034
Subtract:
Intangible assets (core deposit intangible, net of tax and goodwill) 28,814 31,023 744
Total tangible shareholders' equity (non-GAAP) 828,589 810,979 736,290
Total assets (GAAP) 7,683,996 7,446,880 5,442,446
Subtract:
Intangible assets (core deposit intangible, net of tax and goodwill) 28,814 31,023 744
Total tangible assets (non-GAAP) $
7,655,182 $
7,415,857 $
5,441,702
Tangible shareholders' equity / tangible assets (non-GAAP) 10.82 % 10.94 % 13.53 %
Total common shares outstanding 43,818,490 43,818,490 39,826,446
Tangible book value per share (non-GAAP) $
18.91 $
18.51 $
18.49
NB BANCORP, INC.
ASSET QUALITY - NON-PERFORMING ASSETS
(1)
(Unaudited)
(Dollars in thousands)
September 30, June 30, September 30,
2026 2026 2025
Real estate loans:
One-to-four-family residential $
3,255 $
2,963 $
2,771
Home equity 1,546 1,547 1,001
Commercial real estate 13,587 957 809
Construction and land development 10
Commercial and industrial 16,686 20,446 4,686
Consumer 1,002 1,747 2,080
Total $
36,076 $
27,660 $
11,357
Total non-performing loans to total loans 0.53 % 0.43 % 0.24 %
Total non-performing PCD loans to total loans (2) 0.15 % 0.22 % 0.00 %
Total non-performing non-PCD loans to total loans 0.38 % 0.21 % 0.24 %
Total non-performing assets to total assets 0.47 % 0.37 % 0.21 %
Total non-performing PCD assets to total assets 0.14 % 0.19 % 0.00 %
Total non-performing non-PCD assets to total assets 0.33 % 0.18 % 0.21 %
(1) Non-performing loans and assets are comprised of non-accrual loans.
(2) PCD loans were the result of the BankProv acquisition closed on November 15, 2025 and did not exist prior to that date.
NB BANCORP, INC.
ASSET QUALITY - PROVISION, ALLOWANCE, AND NET (CHARGE-OFFS) RECOVERIES
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
September 30, June 30, September 30,
2026 2026 2025
Allowance for credit losses at beginning of the period $
82,088 $
80,195 $
42,601
Provision for credit losses 1,391 2,994 1,041
Charge-offs:
Commercial & Industrial (4,044) (294)
Consumer (1,335) (2,081) (693)
Commercial real estate (10)
Total charge-offs (5,379) (2,385) (693)
Recoveries of loans previously charged off:
Commercial and industrial 12 1,188 12
Consumer 193 96 91
Total recoveries 205 1,284 103
Net charge-offs (5,174) (1,101) (590)
Allowance for credit losses at end of the period $
78,305 $
82,088 $
43,052
Allowance to non-performing loans 217 % 297 % 379 %
Allowance to total loans outstanding at the end of the period 1.16 % 1.28 % 0.91 %
Annualized net charge-offs to average loans outstanding during the period (0.31) % (0.07) % (0.05) %
Annualized net charge-offs to average loans outstanding during the period - PCD loans (1) (0.24) % 0.00 % 0.00 %
Annualized net charge-offs to average loans outstanding during the period - Non-PCD loans (0.07) % (0.07) % (0.05) %
(1) PCD loans were the result of the BankProv acquisition closed on November 15, 2025 and did not exist prior to that date.
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SOURCE Needham Bank
