NB Bancorp, Inc. (NASDAQ:NBBK) reported fourth-quarter 2025 results on Thursday that missed earnings expectations, largely due to one-off costs tied to its recent acquisition of Provident Bancorp and its subsidiary, BankProv.
For the quarter, the bank posted net income of $7.7 million, or $0.19 per diluted share, below the analyst consensus estimate of $0.21. Revenue totaled $63.2 million, however, coming in ahead of market expectations.
Results for the period were heavily affected by non-recurring charges associated with the November 15 completion of the Provident transaction. Stripping out these items, operating net income rose to $21.2 million, or $0.51 per diluted share, compared with $16.0 million, or $0.45 per diluted share, in the prior quarter. The gap between reported and operating earnings was driven primarily by $15.7 million in merger-related expenses and $2.1 million in tax costs linked to surrendered bank-owned life insurance policies.
“The fourth quarter was a monumental quarter for Needham Bank as a result of the merger with Provident,” said Joseph Campanelli, Chairman, President and CEO. “Our actual results were better than our pro-forma estimates, with tangible book value dilution of 5.3%, compared to our estimated 6.1%.”
Underlying operating metrics showed improvement. Net interest margin widened by 14 basis points during the quarter to 3.92%, up from 3.78% in the previous quarter and 40 basis points higher than in the fourth quarter of 2024. Total assets climbed 28.7% to $7.01 billion, while gross loans increased 26.9% to $5.99 billion and total deposits rose 28.2%.
Alongside the earnings release, NB Bancorp announced a quarterly cash dividend of $0.07 per share, scheduled to be paid on February 19, 2026. The company also adopted a share repurchase program authorizing the buyback of up to 5% of its outstanding shares.