The Needham, Massachusetts-based community bank holding company posted a 19 percent jump in net income while integrating a deal that reshaped its balance sheet and expanded its geographic reach.

March 3, 2026

NB Bancorp Tops $7 Billion In Assets After Transformative Provident Acquisition

The Needham, Massachusetts-based community bank holding company posted a 19 percent jump in net income while integrating a deal that reshaped its balance sheet and expanded its geographic reach.

A Year of Record Growth

NB Bancorp, Inc., the parent company of Needham Bank, reported a year of significant growth and strategic transformation in 2025, highlighted by the completion of its acquisition of Provident Bancorp and BankProv and a notable increase in profitability. Total assets surged to $7.01 billion from $5.16 billion a year earlier, driven largely by the November 2025 acquisition.

Net income for the full year reached $50.3 million, up 19.3 percent from $42.1 million in 2024. On an operating basis — excluding one-time charges including $17.3 million in merger-related expenses — the company earned $66.2 million, or $1.76 per diluted share, representing a 45.5 percent jump from the prior year.

The Provident Deal

The Provident acquisition, which closed on November 15, 2025, brought in approximately $1.40 billion in total assets, $1.18 billion in net loans, and $1.14 billion in deposits. NB Bancorp paid $111.8 million in cash and issued roughly 5.9 million shares of common stock valued at about $114.7 million to complete the transaction. The excess of consideration over the fair value of net assets produced $18.5 million in goodwill, along with an $18.8 million core deposit intangible asset.

The acquisition extended Needham Bank’s branch network into northern Massachusetts and southern New Hampshire, adding seven banking offices and a mortgage warehouse lending center in Ponte Vedra Beach, Florida. The company also gained a national mortgage warehouse lending platform and an enterprise value loan portfolio, both representing new business lines for the organization.

Net Interest Income Climbs

Net interest income, the primary driver of revenue, rose 22.5 percent to $197.5 million from $161.2 million the prior year. Average interest-earning assets grew 14 percent to $5.21 billion, while the net interest margin expanded to 3.79 percent from 3.53 percent. The improvement reflected both portfolio growth and a 41-basis-point decline in the weighted average cost of interest-bearing liabilities to 3.47 percent as the rate environment shifted.

Loan and Deposit Growth

The loan portfolio expanded significantly across nearly every category, reaching $5.99 billion at year end compared to $4.34 billion a year earlier. Key segments included:

• Commercial real estate and multifamily loans: $2.44 billion, or 40.7 percent of total loans
• Commercial and industrial loans: $1.01 billion, up 80 percent year over year
• Construction and land development loans: $730.6 million, a 25.1 percent increase
• Mortgage warehouse loans: $280.9 million, a new portfolio from Provident

Total deposits reached $5.85 billion, a 40.1 percent increase. Core deposits grew to $5.32 billion, with organic growth accounting for $435.7 million of the increase. Cannabis-related deposits totaled $453.0 million across 525 relationships, representing 7.7 percent of total deposits.

Asset Quality Shows Mixed Trends

Non-performing loans rose to $43.4 million, or 0.72 percent of total loans, from $13.9 million a year earlier. The increase was driven primarily by a single commercial and industrial loan relationship with an outstanding balance of $70.0 million that was 30 days past due. Classified loans climbed to $73.5 million from $16.4 million, while special mention loans surged to $216.3 million from $13.0 million, largely reflecting acquired Provident assets.

The allowance for credit losses grew to $87.4 million, or 1.46 percent of total loans, including a $50.3 million adjustment tied to the Provident acquisition. Net charge-offs declined to $6.3 million from $8.4 million in 2024, and the provision for credit losses fell sharply to $4.7 million from $12.1 million.

Rising Expenses and Capital Actions

Total noninterest expense rose 33.8 percent to $137.9 million, with merger costs accounting for $17.3 million of the increase. Salaries and benefits climbed 15.2 percent to $77.5 million as headcount grew to 526 full-time equivalent employees from 376. Data processing costs increased 27.6 percent to $11.5 million, reflecting ongoing technology investments.

The company initiated a quarterly cash dividend of $0.07 per share during 2025 and completed two stock repurchase programs, buying back approximately 4.16 million shares. In January 2026, the board authorized a new repurchase program for up to 2.29 million additional shares.

Capital Position and Outlook

Total shareholders’ equity increased 12.3 percent to $858.9 million, supported by shares issued in the Provident deal and retained earnings, partially offset by repurchases. Tangible book value per share stood at $17.94, up modestly from $17.89 at year end 2024. The company maintained its well-capitalized regulatory status.

Looking ahead, NB Bancorp signaled its intention to continue pursuing growth across commercial lending, deposit gathering, and selective acquisitions while maintaining prudent risk management. Integrating Provident’s operations, customers, and new business lines will be a central focus in the year ahead.