NB Bancorp Reports Q4 Net Income Drop

By Chris Stiles • Friday, January 23 03:41 • Permanent Link

NB Bancorp, Inc. has released its fourth quarter 2025 financial results, reporting a net income of $7.7 million, or $0.19 per diluted common share. This is a significant decrease from the previous quarter's net income of $15.4 million, or $0.43 per diluted common share. However, when excluding one-time charges, the operating net income amounted to $21.2 million, or $0.51 per diluted common share, compared to $16.0 million, or $0.45 per diluted common share for the prior quarter.

The company's merger with Provident Bancorp, Inc. and its subsidiary, BankProv, on November 15, 2025, resulted in merger and acquisition costs of $15.7 million (pre-tax) and $2.1 million of tax expense and modified endowment contract penalty related to the surrender of bank-owned life insurance (“BOLI”) policies acquired from BankProv.

Despite the challenging quarter, the company saw tangible book value dilution of 5.3%, lower than the estimated 6.1%. Additionally, operating results for the quarter were strong, with operating earnings per share of $0.51 and operating return on average assets and average equity of 1.35% and 10.51%, respectively.

The net interest margin expanded by 14 basis points for the quarter and by 40 basis points compared to the fourth quarter of 2024. Furthermore, the company announced a stock repurchase program for up to 2,288,509 shares of the company’s common stock, which equals approximately 5.0% of the shares currently outstanding. The board of directors also declared a quarterly cash dividend of $0.07 per share, payable on February 19, 2026, to shareholders of record as of February 5, 2026.

The acquisition of Provident for $111.8 million in cash consideration and the issuance of 5,943,682 shares of common stock valued at $114.7 million extended Needham Bank’s presence in the southern New Hampshire market, adding approximately $1.42 billion of total assets, $1.23 billion of total loans, and $1.13 billion in total deposits, each at fair value. The market has reacted to these announcements by moving the company's shares -2.33% to a price of $19.74. For the full picture, make sure to review NB Bancorp's 8-K report.

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