NB Bancorp, Inc. Reports Fourth Quarter 2025 Financial Results, Declares Quarterly Cash Dividend, Announces Share Repurchase Plan

NEEDHAM, Mass., Jan. 22, 2026 /PRNewswire/ -- NB Bancorp, Inc. (the "Company") (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the "Bank"), today announced its fourth quarter 2025 financial results. The Company reported net income of $7.7 million, or $0.19 per diluted common share, compared to net income of $15.4 million, or $0.43 per diluted common share, for the prior quarter. Operating net income (1), excluding one-time charges, amounted to $21.2 million, or $0.51 per diluted common share, compared to operating net income (1) of $16.0 million, or $0.45 per diluted common share for the prior quarter. The primary difference between net income and operating net income (1) for the fourth quarter of 2025 was merger and acquisition costs of $15.7 million (pre-tax) related to the Company's completed acquisition of Provident Bancorp, Inc. ("Provident") and its subsidiary, BankProv, on November 15, 2025, 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.

"The fourth quarter was a monumental quarter for Needham Bank as a result of the merger with Provident. During the same weekend that the merger closed, we converted BankProv customers onto our core system. The team, comprised of both Needham Bank and BankProv employees, worked diligently to prepare us to successfully execute on the conversion. Our actual results were better than our pro-forma estimates, with tangible book value dilution of 5.3%, compared to our estimated 6.1% and merger-related expenses were $2.4 million (pre-tax) lower than our projections. We look forward to beginning 2026 as one team with all of the merger activities behind us. In addition to completing and converting BankProv, we continued to execute on our strategic plan, growing loans (excluding those transferred to loans held for sale) and core deposits organically during the quarter, on an annualized basis, by 9.4% and 12.1%, respectively. Our 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. Net interest margin expanded by 14 basis points for the quarter and expanded by 40 basis points compared to the fourth quarter of 2024," commented Joseph Campanelli, Chairman, President and Chief Executive Officer. "We are excited for what 2026 has to offer us and are optimistic about our opportunities as we move forward," Campanelli continued.

Share Repurchase Plan

The Company announced today that it has adopted 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.

Declaration of Dividend

The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on February 19, 2026, to shareholders of record as of February 5, 2026.

MERGER WITH PROVIDENT BANCORP, INC. AND BANKPROV

On November 15, 2025, the Company completed its 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.

The acquisition extends Needham Bank's presence in the southern New Hampshire market with the addition of approximately $1.42 billion of total assets, $1.23 billion of total loans and $1.13 billion in total deposits, each at fair value. See the Organic Loan Growth, Organic Deposit Growth and Merger & Acquisition Expenses tables for more information on the impact of the Provident acquisition. Fourth quarter results for 2025 reflect the inclusion of Provident since November 15, 2025.

SELECTED FINANCIAL HIGHLIGHTS FOR THE FOURTH QUARTER OF 2025

One-time charges during the current quarter include:

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

BALANCE SHEET

Total assets amounted to $7.01 billion as of December 31, 2025, representing an increase of $1.56 billion, or 28.7%, from September 30, 2025.

NET INTEREST INCOME

Net interest income was $58.8 million for the current quarter, compared to $48.2 million for the prior quarter, an increase of $10.6 million, or 22.0%. Net interest margin expanded 14 basis points to 3.92% for the quarter from 3.78% in the prior quarter. Accretion from loan purchase accounting provided an 11 basis point increase in net interest margin for the current quarter.

PROVISION FOR CREDIT LOSSES

Provision for credit losses decreased $2.5 million, or 176.1%, to a release of credit losses of $1.1 million for the current quarter, compared to a provision for credit losses of $1.4 million for the prior quarter.

NONINTEREST INCOME

Noninterest income was $4.4 million for the current quarter, compared to $3.7 million for the prior quarter, representing an increase of $720 thousand, or 19.6%.

NONINTEREST EXPENSE

Noninterest expense for the current quarter was $49.3 million, representing an increase of $18.8 million, or 61.8%, from the prior quarter.

INCOME TAXES

Income tax expense for the current quarter was $7.2 million, representing a $2.6 million, or 56.0%, increase from the prior quarter. The increase was primarily driven by the BOLI surrender tax and modified endowment contract penalty of $2.1 million, as well as non-deductible acquisition expenses of $871 thousand. The effective tax rate and the operating effective tax rate (1) were 48.2% and 30.8%, respectively, for the current quarter, compared to 23.0% and 20.8%, respectively, for the prior quarter. The primary drivers of the increase in the effective tax rate were the BOLI surrender tax and modified endowment contract penalty of $2.1 million, as well as non-deductible acquisition expenses and related compensation of $871 thousand.

COMMERCIAL REAL ESTATE PORTFOLIO

Commercial real estate loans increased $561.5 million, or 29.9%, to $2.44 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 Measures

In 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 Statements

Statements 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

December 31, 2025

September 30, 2025

December 31, 2024

Earnings data

Net interest income

58,752

48,175

42,521

Noninterest income

4,402

3,682

4,246

Total pre-provision net revenue (non-GAAP)

63,154

51,857

46,767

(Release of) provision for credit losses

(1,062)

1,396

1,404

Noninterest expense

49,334

30,499

26,088

Pre-tax income

14,882

19,962

19,275

Net income

7,707

15,362

15,611

Operating net income (non-GAAP)

21,200

16,002

13,261

Operating noninterest expense (non-GAAP)

33,594

30,244

26,088

Per share data

Earnings per share, basic

0.19

0.43

0.40

Earnings per share, diluted

0.19

0.43

0.40

Operating earnings per share, basic (non-GAAP)

0.52

0.45

0.34

Operating earnings per share, diluted (non-GAAP)

0.51

0.45

0.34

Book value per share

18.77

18.51

17.92

Tangible book value per share (non-GAAP)

17.98

18.48

17.89

Profitability

Return on average assets

0.49 %

1.16 %

1.23 %

Operating return on average assets (non-GAAP)

1.35 %

1.20 %

1.04 %

Return on average shareholders' equity

3.82 %

8.35 %

8.22 %

Operating return on average shareholders' equity (non-GAAP)

10.51 %

8.70 %

6.98 %

Net interest margin

3.92 %

3.78 %

3.52 %

Cost of deposits

2.86 %

2.92 %

3.24 %

Efficiency ratio

78.12 %

58.81 %

55.78 %

Operating efficiency ratio (non-GAAP)

53.19 %

58.32 %

55.78 %

Balance sheet, end of period

Total assets

7,006,130

5,442,390

5,157,737

Total loans

5,986,140

4,715,923

4,332,929

Total deposits

5,853,534

4,565,664

4,177,652

Total shareholders' equity

858,932

737,034

765,167

Asset quality

Allowance for credit losses (ACL)

85,009

43,052

38,744

ACL / Total non-performing loans (NPLs)

196.0 %

379.1 %

279.6 %

Total NPLs / Total loans

0.72 %

0.24 %

0.32 %

Annualized net charge-offs / Average total loans

(0.32) %

(0.05) %

(0.04) %

Capital ratios

Shareholders' equity / Total assets

12.26 %

13.54 %

14.84 %

Tangible shareholders' equity / tangible assets (non-GAAP)

11.81 %

13.53 %

14.82 %

NB BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except share and per share data)

As of

December 31, 2025 change from

December 31, 2025

September 30, 2025

December 31, 2024

September 30, 2025

December 31, 2024

Assets

Cash and due from banks

325,711

197,548

211,166

128,163

64.9 %

114,545

54.2 %

Federal funds sold

81,885

97,829

152,689

(15,944)

(16.3) %

(70,804)

(46.4) %

Total cash and cash equivalents

407,596

295,377

363,855

112,219

38.0 %

43,741

12.0 %

Available-for-sale securities, at fair value

268,959

231,023

228,205

37,936

16.4 %

40,754

17.9 %

Loans held for sale

66,447

100.0 %

66,447

100.0 %

Loans receivable, net of deferred fees

5,986,140

4,715,923

4,332,929

1,270,217

26.9 %

1,653,211

38.2 %

Allowance for credit losses

(85,009)

(43,052)

(38,744)

(41,957)

97.5 %

(46,265)

119.4 %

Net loans

5,901,131

4,672,871

4,294,185

1,228,260

26.3 %

1,606,946

37.4 %

Accrued interest receivable

25,390

21,074

19,685

4,316

20.5 %

5,705

29.0 %

Banking premises and equipment, net

46,209

33,842

34,654

12,367

36.5 %

11,555

33.3 %

Non-public investments

33,740

44,531

24,364

(10,791)

(24.2) %

9,376

38.5 %

Bank-owned life insurance ("BOLI")

104,335

56,342

102,785

47,993

85.2 %

1,550

1.5 %

Prepaid expenses and other assets

68,078

57,720

58,626

10,358

17.9 %

9,452

16.1 %

Goodwill

16,786

0.0 %

16,786

0.0 %

Core deposit intangible

19,303

967

1,079

18,336

1896.2 %

18,224

1689.0 %

Deferred income tax asset

48,156

28,643

30,299

19,513

68.1 %

17,857

58.9 %

Total assets

7,006,130

5,442,390

5,157,737

1,563,740

28.7 %

1,848,393

35.8 %

Liabilities and shareholders' equity

Deposits

Core deposits

5,317,853

4,176,991

3,867,846

1,140,862

27.3 %

1,450,007

37.5 %

Brokered deposits

535,681

388,673

309,806

147,008

37.8 %

225,875

72.9 %

Total deposits

5,853,534

4,565,664

4,177,652

1,287,870

28.2 %

1,675,882

40.1 %

Mortgagors' escrow accounts

5,193

4,543

4,549

650

14.3 %

644

14.2 %

FHLB borrowings

196,235

41,453

120,835

154,782

373.4 %

75,400

62.4 %

Accrued expenses and other liabilities

70,716

73,139

65,708

(2,423)

(3.3) %

5,008

7.6 %

Accrued retirement liabilities

21,520

20,557

23,826

963

4.7 %

(2,306)

(9.7) %

Total liabilities

6,147,198

4,705,356

4,392,570

1,441,842

30.6 %

1,754,628

39.9 %

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; 45,770,128 shares issued and

outstanding at December 31, 2025, 39,826,446 shares issued and outstanding at

September 30, 2025 and 42,705,729 shares issued and outstanding at December 31, 2024

458

398

427

15.1 %

7.3 %

Additional paid-in capital

458,864

342,526

417,247

116,338

34.0 %

41,617

10.0 %

Unallocated common shares held by the Employee Stock Ownership Plan ("ESOP")

(42,454)

(43,049)

(44,813)

595

(1.4) %

2,359

(5.3) %

Retained earnings

445,200

440,281

400,473

4,919

1.1 %

44,727

11.2 %

Accumulated other comprehensive loss

(3,136)

(3,122)

(8,167)

(14)

0.4 %

5,031

(61.6) %

Total shareholders' equity

858,932

737,034

765,167

121,898

16.5 %

93,765

12.3 %

Total liabilities and shareholders' equity

7,006,130

5,442,390

5,157,737

1,563,740

28.7 %

1,848,393

35.8 %

NB BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except share and per share data)

For the Three Months Ended

Three Months Ended December 31, 2025 Change

From Three Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

September 30, 2025

December 31, 2024

INTEREST AND DIVIDEND INCOME

Interest and fees on loans

91,485

77,365

70,977

14,120

18.3 %

20,508

28.9 %

Interest on securities

2,658

2,253

2,116

405

18.0 %

542

25.6 %

Interest and dividends on cash equivalents and other

3,219

2,070

4,107

1,149

55.5 %

(888)

(21.6) %

Total interest and dividend income

97,362

81,688

77,200

15,674

19.2 %

20,162

26.1 %

INTEREST EXPENSE

Interest on deposits

37,677

31,273

33,514

6,404

20.5 %

4,163

12.4 %

Interest on borrowings

933

2,240

1,165

(1,307)

(58.3) %

(232)

(19.9) %

Total interest expense

38,610

33,513

34,679

5,097

15.2 %

3,931

11.3 %

NET INTEREST INCOME

58,752

48,175

42,521

10,577

22.0 %

16,231

38.2 %

PROVISION FOR CREDIT LOSSES

(Release of) provision for credit losses - loans

(1,555)

1,041

1,618

(2,596)

(249.4) %

(3,173)

(196.1) %

Provision for credit losses - unfunded commitments

493

355

(214)

138

38.9 %

707

(330.4) %

Total (release of) provision for credit losses

(1,062)

1,396

1,404

(2,458)

(176.1) %

(2,466)

(175.6) %

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

59,814

46,779

41,117

13,035

27.9 %

18,697

45.5 %

NONINTEREST INCOME

Customer service fees

2,896

2,498

2,068

398

15.9 %

828

40.0 %

Increase in cash surrender value of BOLI

844

631

1,049

213

33.8 %

(205)

(19.5) %

Mortgage banking income

148

107

(86)

(58.1) %

(45)

(42.1) %

Swap contract income

677

208

531

469

225.5 %

146

27.5 %

(Loss) gain on sale of loans, net

(519)

(564)

(1253.3) %

(530)

(4818.2) %

Other income

442

152

480

290

190.8 %

(38)

(7.9) %

Total noninterest income

4,402

3,682

4,246

720

19.6 %

156

3.7 %

NONINTEREST EXPENSE

Salaries and employee benefits

21,134

18,641

15,747

2,493

13.4 %

5,387

34.2 %

Director and professional service fees

2,500

2,920

2,428

(420)

(14.4) %

3.0 %

Occupancy and equipment expenses

1,954

1,559

1,388

395

25.3 %

566

40.8 %

Data processing expenses

3,344

2,911

2,478

433

14.9 %

866

34.9 %

Marketing and charitable contribution expenses

1,087

949

779

138

14.5 %

308

39.5 %

FDIC and state insurance assessments

751

928

1,041

(177)

(19.1) %

(290)

(27.9) %

Merger and acquisition expenses

15,740

994

14,746

1483.5 %

15,740

0.0 %

General and administrative expenses

2,824

1,597

2,227

1,227

76.8 %

597

26.8 %

Total noninterest expense

49,334

30,499

26,088

18,835

61.8 %

23,246

89.1 %

INCOME BEFORE TAXES

14,882

19,962

19,275

(5,080)

(25.4) %

(4,393)

(22.8) %

INCOME TAX EXPENSE

7,175

4,600

3,664

2,575

56.0 %

3,511

95.8 %

NET INCOME

7,707

15,362

15,611

(7,655)

(49.8) %

(7,904)

(50.6) %

Weighted average common shares outstanding, basic

40,870,969

35,372,205

39,291,088

5,498,764

15.5 %

1,579,881

4.0 %

Weighted average common shares outstanding, diluted

41,172,645

35,579,456

39,291,088

5,593,189

15.7 %

1,881,557

4.8 %

Earnings per share, basic

0.19

0.43

0.40

(0.24)

(55.8) %

(0.21)

(52.5) %

Earnings per share, diluted

0.19

0.43

0.40

(0.24)

(55.8) %

(0.21)

(52.5) %

NB BANCORP, INC.

AVERAGE BALANCES, INTEREST EARNED/PAID & AVERAGE YIELDS

(Unaudited)

(Dollars in thousands)

For the Three Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

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

5,409,681

91,485

6.71

4,612,837

77,365

6.65

4,278,952

70,977

6.60

Securities

250,435

2,658

4.21

236,187

2,253

3.78

215,268

2,116

3.91

Other investments (5)

25,531

627

9.74

32,510

223

2.72

27,217

586

8.57

Short-term investments (5)

265,239

2,592

3.88

176,884

1,847

4.14

283,540

3,521

4.94

Total interest-earning assets

5,950,886

97,362

6.49

5,058,418

81,688

6.41

4,804,977

77,200

6.39

Noninterest-earning assets

345,244

256,763

285,715

Allowance for credit losses

(68,337)

(42,746)

(38,231)

Total assets

6,227,793

5,272,435

5,052,461

Interest-bearing liabilities:

Savings accounts

164,423

217

0.52

121,704

181

0.59

108,594

0.05

NOW accounts

557,988

1,415

1.01

467,761

1,365

1.16

456,460

1,144

1.00

Money market accounts

1,435,761

11,265

3.11

1,119,539

9,363

3.32

965,031

8,342

3.44

Certificates of deposit and individual retirement accounts

2,351,324

24,780

4.18

1,933,665

20,364

4.18

1,990,735

24,014

4.80

Total interest-bearing deposits

4,509,496

37,677

3.31

3,642,669

31,273

3.41

3,520,820

33,514

3.79

FHLB borrowings

92,927

933

3.98

199,852

2,240

4.45

95,873

1,165

4.83

Total interest-bearing liabilities

4,602,423

38,610

3.33

3,842,521

33,513

3.46

3,616,693

34,679

3.81

Noninterest-bearing deposits

720,273

604,631

595,296

Other non-interest-bearing liabilities

105,107

95,304

84,964

Total liabilities

5,427,803

4,542,456

4,296,953

Shareholders' equity

799,990

729,979

755,508

Total liabilities and shareholders' equity

6,227,793

5,272,435

5,052,461

Net interest income

58,752

48,175

42,521

Net interest rate spread (1)

3.16

2.95

2.58

Net interest-earning assets (2)

1,348,463

1,215,897

1,188,284

Net interest margin (3)

3.92

3.78

3.52

Average interest-earning assets to interest-bearing

liabilities

129.30

131.64

132.86

(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)

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)

December 31, 2025

Owner-Occupied

Non-Owner-Occupied

Balance

Percentage

Multi-Family

—

517,527

21 %

Industrial

152,469

151,172

303,641

12 %

Office

39,718

246,571

286,289

12 %

Hospitality

36,995

246,313

283,308

12 %

Mixed-Use

23,174

196,701

219,875

9 %

Cannabis Facility

205,923

9,085

215,008

9 %

Special Purpose

84,563

62,211

146,774

6 %

Retail

44,687

103,846

148,533

6 %

Self Storage Facilities

—

64,315

3 %

Recreational Vehicle Parks

15,013

74,290

89,303

4 %

Other

62,157

104,840

166,997

7 %

Total commercial real estate

664,699

1,776,871

2,441,570

100 %

Change From September 30, 2025

Change From December 31, 2024

Owner-Occupied

Non-Owner-

Occupied

Balance

Percentage

Owner-Occupied

Non-Owner-

Occupied

Balance

Percentage

Multi-Family

—

87,099

20 %

—

184,480

55 %

Industrial

74,981

38,508

113,489

60 %

29,278

71,265

100,543

50 %

Office

14,461

74,940

89,401

45 %

8,643

94,842

103,485

57 %

Hospitality

822

34,971

35,793

14 %

36,995

81,793

118,788

72 %

Mixed-Use

15,159

36,250

51,409

31 %

14,151

92,199

106,350

94 %

Cannabis Facility

(48,812)

(83)

(48,895)

(19) %

(104,850)

(322)

(105,172)

(33) %

Special Purpose

3,653

5,445

9,098

7 %

4,507

7,856

12,363

9 %

Retail

6,066

17,507

23,573

19 %

869

13,129

13,998

10 %

Self Storage Facilities

—

64,315

100 %

—

64,315

100 %

Recreational Vehicle Parks

15,013

74,290

89,303

100 %

15,013

74,290

89,303

100 %

Other

23,552

23,330

46,882

39 %

20,685

35,991

56,676

51 %

Total commercial real estate

104,895

456,572

561,467

30 %

25,291

719,838

745,129

44 %

September 30, 2025

December 31, 2024

Owner-Occupied

Non-Owner-

Occupied

Balance

Percentage

Owner-Occupied

Non-Owner-

Occupied

Balance

Percentage

Multi-Family

—

430,428

23 %

—

333,047

20 %

Industrial

77,488

112,664

190,152

10 %

123,191

79,907

203,098

12 %

Office

25,257

171,631

196,888

11 %

31,075

151,729

182,804

11 %

Hospitality

36,173

211,342

247,515

13 %

—

164,520

10 %

Mixed-Use

8,015

160,451

168,466

9 %

9,023

104,502

113,525

7 %

Cannabis Facility

254,735

9,168

263,903

14 %

310,773

9,407

320,180

19 %

Special Purpose

80,910

56,766

137,676

7 %

80,056

54,355

134,411

8 %

Retail

38,621

86,339

124,960

7 %

43,818

90,717

134,535

8 %

Self Storage Facilities

—

0 %

—

0 %

Recreational Vehicle Parks

—

0 %

—

0 %

Other

38,605

81,510

120,115

6 %

41,472

68,849

110,321

7 %

Total commercial real estate

559,804

1,320,299

1,880,103

100 %

639,408

1,057,033

1,696,441

100 %

NB BANCORP, INC.

NON-GAAP RECONCILIATION

(Unaudited)

(Dollars in thousands)

For the Three Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

Net income (GAAP)

7,707

15,362

15,611

Add (Subtract):

Adjustments to net income:

Defined benefit pension termination refund

(739)

State tax expense - voluntary disclosure agreements

561

Income tax expense on solar tax credit investment basis reduction

(2,503)

BOLI surrender tax and modified endowment contract penalty

2,092

153

Merger and acquisition expenses

15,740

994

Total adjustments to net income

17,832

816

(2,350)

Less net tax benefit associated with pre-tax non-GAAP adjustments to net income

4,339

176

Non-GAAP adjustments, net of tax

13,493

640

(2,350)

Operating net income (non-GAAP)

21,200

16,002

13,261

Weighted average common shares outstanding, basic

40,870,969

35,372,205

39,291,088

Weighted average common shares outstanding, diluted

41,172,645

35,579,456

39,291,088

Operating earnings per share, basic (non-GAAP)

0.52

0.45

0.34

Operating earnings per share, diluted (non-GAAP)

0.51

0.45

0.34

Pre-tax income (GAAP)

14,882

19,962

19,275

Add (Subtract):

Defined benefit pension termination refund

(739)

Merger and acquisition expenses

15,740

994

Operating pre-tax income (non-GAAP)

30,622

20,217

19,275

Noninterest expense (GAAP)

49,334

30,499

26,088

Subtract (Add):

Noninterest expense components:

Defined benefit pension termination refund

(739)

Merger and acquisition expenses

15,740

994

Total impact of non-GAAP noninterest expense adjustments

15,740

255

Noninterest expense on an operating basis (non-GAAP)

33,594

30,244

26,088

Operating net income (non-GAAP)

21,200

16,002

13,261

Average assets

6,227,793

5,272,435

5,052,461

Operating return on average assets (non-GAAP)

1.35 %

1.20 %

1.04 %

Average shareholders' equity

799,990

729,979

755,508

Operating return on average shareholders' equity (non-GAAP)

10.51 %

8.70 %

6.98 %

Noninterest expense on an operating basis (non-GAAP)

33,594

30,244

26,088

Total pre-provision net revenue (net interest income plus total noninterest income)

63,154

51,857

46,767

Operating efficiency ratio (non-GAAP)

53.19 %

58.32 %

55.78 %

Income tax expense (GAAP)

7,175

4,600

3,664

Add (Subtract):

State tax expense - voluntary disclosure agreements

(561)

Income tax expense on solar tax credit investment basis reduction

2,503

Net tax benefit associated with pre-tax non-GAAP adjustments to net income

4,339

176

BOLI surrender tax and modified endowment contract penalty

(2,092)

(153)

Total impact of non-GAAP income tax expense adjustments

2,247

(385)

2,350

Income tax expense on an operating basis (non-GAAP)

9,422

4,215

6,014

Operating effective tax rate (non-GAAP)

30.8 %

20.8 %

31.2 %

As of

December 31, 2025

September 30, 2025

December 31, 2024

Total shareholders' equity (GAAP)

858,932

737,034

765,167

Subtract:

Intangible assets (core deposit intangible and goodwill)

36,089

967

1,079

Total tangible shareholders' equity (non-GAAP)

822,843

736,067

764,088

Total assets (GAAP)

7,006,130

5,442,390

5,157,737

Subtract:

Intangible assets (core deposit intangible and goodwill)

36,089

967

1,079

Total tangible assets (non-GAAP)

6,970,041

5,441,423

5,156,658

Tangible shareholders' equity / tangible assets (non-GAAP)

11.81 %

13.53 %

14.82 %

Total common shares outstanding

45,770,128

39,826,446

42,705,729

Tangible book value per share (non-GAAP)

17.98

18.48

17.89

NB BANCORP, INC.

ASSET QUALITY – NON-PERFORMING ASSETS (1)

(Unaudited)

(Dollars in thousands)

December 31, 2025

September 30, 2025

December 31, 2024

Real estate loans:

One-to-four-family residential

2,712

2,771

2,930

Home equity

1,359

1,001

958

Commercial real estate

855

809

3,005

Construction and land development

Commercial and industrial

36,251

4,686

4,558

Consumer

2,184

2,080

2,395

Total

43,371

11,357

13,856

Total non-performing loans to total loans

0.72 %

0.24 %

0.32 %

Total non-performing assets to total assets

0.62 %

0.21 %

0.27 %

(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

December 31, 2025

September 30, 2025

December 31, 2024

Allowance for credit losses at beginning of the period

43,052

42,601

37,605

Adjustment to allowance for Provident acquisition

47,869

—

(Release of) provision for credit losses

(1,555)

1,041

1,618

Charge-offs:

Consumer

1,325

693

843

Commercial & Industrial

3,763

—

Commercial real estate

—

Total charge-offs

5,105

693

843

Recoveries of loans previously charged off:

Commercial and industrial

562

202

Consumer

186

162

Total recoveries

748

103

364

Net (charge-offs) recoveries

(4,357)

(590)

(479)

Allowance for credit losses at end of the period

85,009

43,052

38,744

Allowance to non-performing loans

196 %

379 %

279.6 %

Allowance to total loans outstanding at the end of the period

1.42 %

0.91 %

0.89 %

Annualized net (charge-offs) recoveries to average loans outstanding during the period

(0.32) %

(0.05) %

(0.04) %

NB BANCORP, INC.

ORGANIC LOAN GROWTH

(Unaudited)

(Dollars in thousands)

December 31, 2025

September 30, 2025

BP Acquisition (1)

Organic $ Change

Organic % Change

One-to four-family residential

1,177,156

1,133,856

27,315

15,985

1.4 %

Home equity

152,602

138,979

4,110

9,513

6.8 %

Residential real estate

1,329,758

1,272,835

31,425

25,498

2.0 %

Commercial real estate

1,924,043

1,449,675

483,548

(9,180)

0.6 %

Multi-family residential

517,527

430,428

73,035

14,064

3.3 %

Commercial real estate

2,441,570

1,880,103

556,583

4,884

0.3 %

Construction and land development

730,573

655,023

19,962

55,588

8.5 %

Commercial and industrial

1,007,669

651,731

354,017

1,921

0.3 %

Commercial

4,179,812

3,186,857

930,562

62,393

2.0 %

Consumer, net of premium/discount

203,497

263,259

—

(59,762)

22.7 %

Warehouse, net of premium/discount

280,949

—

264,614

16,335

6.2 %

Total loans

5,994,016

4,722,951

1,226,601

44,464

0.9 %

Deferred fees, net

(7,876)

(7,028)

—

(848)

12.1 %

Loans receivable, net of deferred fees

5,986,140

4,715,923

1,226,601

43,616

0.9 %

(1)

Loans acquired at fair value

NB BANCORP, INC.

ORGANIC DEPOSIT GROWTH

(Unaudited)

(Dollars in thousands)

December 31, 2025

September 30, 2025

BP Acquisition (1)

Organic $ Change

Organic % Change

(In thousands)

Transactional accounts:

Noninterest-bearing demand deposits

824,403

607,470

216,370

563

0.1 %

Savings accounts

208,672

120,449

78,723

9,500

7.9 %

NOW accounts

664,719

477,538

134,075

53,106

11.1 %

Money market accounts

1,650,849

1,213,550

427,725

9,574

0.8 %

Total transactional accounts

3,348,643

2,419,007

856,893

72,743

3.0 %

Customer CD's

1,969,210

1,757,984

157,403

53,823

3.1 %

Total core deposits

5,317,853

4,176,991

1,014,296

126,566

3.0 %

Total brokered deposits

535,681

388,673

120,000

27,008

6.9 %

Total deposits

5,853,534

4,565,664

1,134,296

199,309

4.4 %

(1)

Deposits acquired at fair value

NB BANCORP, INC.

MERGER & ACQUISITION EXPENSE

(Unaudited)

(Dollars in thousands)

Three months ended

Twelve months ended

December 31, 2025

Salaries and employee benefits

9,986

10,168

Director and professional service fees

2,749

3,864

Occupancy and equipment expenses

571

Data processing expenses

1,048

1,149

Marketing and charitable contribution expenses

337

464

General and administrative expenses

1,049

Total

15,740

17,265

SOURCE Needham Bank