NB Bancorp, Inc. Reports First Quarter 2026 Financial Results, Declares Quarterly Cash Dividend

Published: 2026-04-22 16:28:08 ET NBBK

Published on 04/22/2026 at 04:28 pm EDT

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 DividendThe 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

One-time charges during the current quarter include:

One-time pre-tax charges during the prior quarter include:

BALANCE SHEETTotal 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.

NET INTEREST INCOMENet 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.

PROVISION FOR CREDIT LOSSESProvision 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.

NONINTEREST INCOMENoninterest 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%.

NONINTEREST EXPENSENoninterest 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.

INCOME TAXESIncome 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 PORTFOLIOCommercial real estate loans increased $21.5 million, or 0.9%, to $2.46 billion, during the current quarter.

ASSET QUALITY

(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 MeasuresIn 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 StatementsStatements 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

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 %

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) %

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

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

1.1 %

(178)

(17.3) %

Mortgage banking income

119

149

91.9 %

(30)

(20.1) %

Swap contract income

201

677

(476)

(70.3) %

113

128.4 %

(Loss) gain on sale of loans, net

(1)

(519)

518

(99.8) %

(28)

(103.7) %

Other income

210

442

(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

Outstanding

Average

Outstanding

Average

Outstanding

Average

Balance

Interest

Yield/Rate (4)

Balance

Interest

Yield/Rate (4)

Balance

Interest

Yield/Rate (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

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 retirement accounts

2,497,213

24,578

3.99

2,351,324

24,257

4.09

1,979,184

22,403

4.59

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' equity

6,970,059

6,227,794

5,146,528

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 interest-bearing liabilities

128.72

129.31

131.14

(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

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

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-Occupied

Non-Owner-Occupied

Balance

Percentage

Owner-Occupied

Non-Owner-Occupied

Balance

Percentage

Multi-Family

—

20,637

4 %

—

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

36 %

—

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 estate

(22,498)

43,954

21,456

1 %

13,586

731,841

745,427

43 %

December 31, 2025

March 31, 2025

Owner-Occupied

Non-Owner-Occupied

Balance

Percentage

Owner-Occupied

Non-Owner-Occupied

Balance

Percentage

Multi-Family

—

517,527

21 %

—

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

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

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 estate

664,699

1,776,871

2,441,570

100 %

628,615

1,088,984

1,717,599

100 %

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

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, 2026

December 31, 2025

March 31, 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

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

562

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 %

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