NEEDHAM, Mass., July 22, 2026 /PRNewswire/ -- NB Bancorp, Inc. (the "Company") (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the "Bank"), today announced its second quarter 2026 financial results.
-- Net income for the second quarter of 2026 amounted to $21.1 million, or
$0.53 per diluted common share, compared to net income of $15.0 million,
or $0.36 per diluted common share, for the prior quarter. Return on
average assets and return on average equity for the second quarter of
2026 were 1.17% and 10.03%, respectively, increases from 0.87% and 7.05%,
respectively, for the prior quarter.
-- Operating net income(1) for the second quarter of 2026 increased 38.5%
and amounted to $21.9 million, or $0.55 per diluted common share,
compared to operating net income(1) of $15.8 million, or $0.38 per
diluted common share, for the prior quarter. Operating return on average
assets(1) and operating return on average equity(1) for the second
quarter of 2026 were 1.21% and 10.39%, respectively, increases from 0.92%
and 7.43%, respectively, for the prior quarter.
-- Net interest margin expanded by 7 basis points to 4.00% from 3.93% in the
prior quarter as total loans increased 3.4% while total deposits
increased 3.7% during the quarter. Net interest margin, excluding
purchase accounting adjustments(1), expanded by 5 basis points to 3.87%
during the current quarter from 3.82% in the prior quarter.
-- Efficiency ratio improved to 58.92% from 61.55% in the prior quarter,
while operating efficiency ratio(1) improved to 57.66% from 60.06% in the
prior quarter.
-- Net charge-offs (annualized) as a percent of average loans declined to
0.07% from 0.91% in the prior quarter. Non-performing loans as a percent
of total loans decreased to 0.43% at the end of the second quarter from
0.73% at the end of the prior quarter.
"The second quarter of 2026 displayed Needham Bank's continued execution of our strategy for disciplined growth in market share as total loans increased 3.4% during the quarter, while total deposits increased 3.7% over the same period. Through the first half of 2026, total loans and total deposits have increased by 15.0% and 15.9% on an annualized basis, while operating EPS increased 24%, respectively. Our teams remained focused on executing our strategic priorities and investing in the infrastructure, technology, and operating capabilities needed to support continued profitable growth. This included targeted investments in artificial intelligence, improved internal systems and automation tools designed to enhance internal efficiency, scalability, and employee effectiveness. We are well positioned to continue to enhance the customer experience and grow market share, while improving long-term operating leverage. The dedication and collaboration of our employees continue to be defining strengths for Needham Bank. As we invest thoughtfully in technology, artificial intelligence, and operational capabilities, while maintaining strong credit performance and disciplined growth, we are building a more scalable and efficient organization that is well-positioned to deliver long-term value for our customers, communities, and shareholders," Campanelli concluded.
Declaration of Dividend
The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on August 19, 2026, to shareholders of record as of August 5, 2026.
SELECTED FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER OF 2026
-- Net income of $21.1 million, or $0.53 per diluted common share, compared
to net income of $15.0 million, or $0.36 per diluted common share, for
the prior quarter. Operating net income(1), excluding one-time charges,
amounted to $21.9 million, or $0.55 per diluted common share, compared to
operating net income(1) of $15.8 million, or $0.38 per diluted common
share, for the prior quarter.
-- Operating return on average assets increased to 1.21% from 0.92%,
operating return on average equity increased to 10.39% from 7.43% and net
interest margin expanded to 4.00% from 3.93%.
-- Credit trends from the BankProv acquisition improved during the quarter,
where net charge-offs to average loans decreased to 0.07% from 0.91% and
non-performing assets to total assets decreased to 0.37% from 0.63%
One-time pre-tax charges during the current 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.
One-time pre-tax charges during the prior quarter include:
-- Pre-tax trailing merger and acquisition costs of $534 thousand
($390 thousand net of tax) related to the Company's completed
acquisition of Provident;
-- Non-recurring fees for business line expansion of $500 thousand
($366 thousand net of tax); and
-- Tax expense and a modified endowment contract penalty of $50
thousand related to the surrender of BOLI policies acquired from
BankProv.
-- Net interest margin expanded by 7 basis points to 4.00% during the
current quarter from 3.93% in the prior quarter. Net interest margin,
excluding purchase accounting adjustments(1), expanded by 5 basis points
to 3.87% during the current quarter from 3.82% in the prior quarter.
-- Gross loans increased $213.0 million, or 3.4%, to $6.42 billion, from
$6.21 billion in the prior quarter.
-- Total deposits increased $222.9 million, or 3.7%, to $6.32 billion, from
$6.10 billion in the prior quarter.
-- Core deposits, which the Company considers to be all non-brokered
deposits, increased $73.1 million, or 1.3%, to $5.60 billion, from
$5.53 billion in the prior quarter.
-- Brokered deposits increased $149.8 million, or 26.3%, to $719.9
million, from $570.1 million in the prior quarter.
-- Book value per share and tangible book value per share(1) were $19.22 and
$18.51, respectively, in the current quarter, compared to $18.83 and
$18.11, respectively, in the prior quarter. The increase in tangible book
value per share(1) was a result of $21.1 million in net income for the
quarter, partially offset by the repurchase of 918,727 shares during the
current quarter at an all-in weighted average cost of $20.13 per share
and $3.1 million in dividends paid during the quarter.
BALANCE SHEET
Total assets amounted to $7.45 billion as of June 30, 2026, representing an increase of $220.2 million, or 3.0%, from $7.23 billion as of March 31, 2026.
-- Cash and cash equivalents increased $24.6 million, or 6.5%, to $400.2
million from $375.6 million in the prior quarter, as a result of net
income earned during the quarter of $21.1 million, along with deposit
growth of $222.9 million, partially offset by loan growth of $211.1
million and the repurchase of 918,727 shares during the current quarter
at an all-in weighted average cost of $20.13 per share.
-- Net loans increased $211.1 million, or 3.4%, to $6.34 billion, from $6.13
billion in the prior quarter as demand for new loan originations and
advances continued. The current quarter change was primarily seen in
commercial real estate loans, which increased $196.7 million, or 10.2%,
residential real estate loans, which increased $45.0 million, or 3.4%,
and multi-family residential loans, which increased $29.6 million, or
5.5%, partially offset by mortgage warehouse loans, which decreased $59.5
million, or 21.5% along with continued run-off of the acquired Enterprise
Value portfolio, which decreased $29.5 million, or 18.5%, from the prior
quarter.
-- Deposits increased $222.9 million, or 3.7%, to $6.32 billion from $6.10
billion in the prior quarter. The change in deposits was the result of
noninterest bearing demand deposits, which increased $80.8 million, or
9.3%, NOW accounts, which increased $61.8 million, or 8.9% and brokered
deposits, which increased $149.8 million, or 26.3%, partially offset by
money market accounts, which decreased $77.4 million, or 4.4%.
-- Shareholders' equity decreased $776 thousand, or 0.1%, to $842.0 million,
from $842.8 million in the prior quarter, primarily as a result of the
repurchase of 918,727 shares of common stock at an all-in weighted
average cost of $20.13 per share totaling $18.5 million and $3.1 million
in dividends paid during the current quarter, partially offset by net
income of $21.1 million. Shareholders' equity to total assets and
tangible shareholders' equity(1) to tangible assets were 11.3% and 10.9%,
respectively, at the end of the current quarter, compared to 11.7% and
11.3%, respectively, at the end of the prior quarter.
NET INTEREST INCOME
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