#United States #Needham Bank #Needham #Provident Bancorp #NB Bancorp

Overview of NB Bancorp's Q4 2025 Performance

On January 22, 2026, NB Bancorp, Inc. (NASDAQ: NBBK), the parent company of Needham Bank, unveiled its financial performance report for the fourth quarter of 2025. The occasion was significant, not only for the financial results but also due to the recent merger with Provident Bancorp, Inc. This merger is expected to enhance NB Bancorp's market presence and operational capabilities.

Financial Highlights

• - Net Income: The company reported a net income of $7.7 million, translating to $0.19 per diluted share. This represents a decrease from the previous quarter's net income of $15.4 million, or $0.43 per diluted share.
• - Operating Net Income: Notably, the operating net income, which excludes one-off expenses, stood at $21.2 million or $0.51 per diluted share, a rise from $16.0 million (or $0.45 per diluted share) in the prior quarter.
• - Merger-Related Costs: A significant factor affecting net income was a $15.7 million pre-tax charge linked to merger and acquisition expenses tied to the Providence acquisition, completed on November 15, 2025.
• - Growth in Key Areas: Despite the net income dip, operating results remained robust with solid growth metrics; loans increased by $1.27 billion, an impressive 26.9% rise quarter-over-quarter.
• - Deposit Surge: Total deposits soared by $1.29 billion to reach $5.85 billion—a 28.2% increase from the previous quarter.

Significant Corporate Developments

Merger with Provident Bancorp

The merger with Provident Bancorp, valued at $111.8 million in cash, was a pivotal event for NB Bancorp. Through this acquisition, the bank expanded its footprint in southern New Hampshire, adding approximately $1.42 billion in total assets and bolstering its total loans and deposits significantly. This strategic move aligns with their vision of solidifying their market position and enhancing customer services, particularly in new segments such as self-storage facilities and recreational vehicle parks.

The transition was executed seamlessly, with BankProv customers integrated into NB Bancorp’s systems. Joseph Campanelli, Chairman and CEO, stated that the merger process exceeded expectations, reflecting in lower-than-expected tangible book value dilution and merger-related expenses.

Share Repurchase Plan

Alongside this announcement, NB Bancorp also introduced a stock repurchase program allowing the buyback of up to 2,288,509 shares, roughly 5% of their outstanding shares. This initiative signifies the company’s commitment to enhancing shareholder value further.

Dividend Declaration

The Board of Directors also declared a cash dividend of $0.07 per share, payable on February 19, 2026, to stockholders on record by February 5, 2026. Such moves suggest a focus on returning value to shareholders while navigating the integrations following the merger.

Conclusion

Despite the challenges posed by headquarters-level restructuring and merger costs, NB Bancorp showcased strong operational fundamentals, presenting opportunities for growth and potential future profitability. The company’s leadership remains optimistic about 2026, positioning itself as a unified entity bolstered by strategic acquisitions and robust financial health. With sustained loan and deposit growth, and a focus on enhancing shareholder value through dividends and share buybacks, NB Bancorp is charting a promising course for the coming year.