third quarter 2026
Filed Oct 15, 2026NB Bancorp, Inc. Reports Third Quarter 2026 Financial Results, Declares Quarterly Cash Dividend
Net income, operating net income, net interest income, loans and deposits increased from the prior quarter, while net interest margin narrowed, expenses increased, and non-performing loans and net charge-offs rose.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $76.55M | – | – |
| Net interest income, three months ended September 30, 2026GAAP | $71.44M | 3.3% | 48.3% |
| Net interest income, excluding purchase accounting adjustments, three months ended September 30, 2026non-GAAP | $68.83M | – | – |
| Noninterest income, three months ended September 30, 2026GAAP | $5.11M | (8.2)% | 38.6% |
| Provision for credit losses, three months ended September 30, 2026GAAP | $1.25M | (61.0)% | (10.7)% |
| Provision for credit losses - loans, three months ended September 30, 2026GAAP | $1.39M | (53.5)% | 33.6% |
| (Release of) provision for credit losses - unfunded commitments, three months ended September 30, 2026GAAP | −$145K | (172.9)% | (140.8)% |
| Noninterest expense, three months ended September 30, 2026GAAP | $46.28M | 5.1% | 51.7% |
| Operating noninterest expense, three months ended September 30, 2026non-GAAP | $45.41M | – | – |
| Pre-tax income, three months ended September 30, 2026GAAP | $29.02M | 5.5% | 45.4% |
| Operating pre-tax income, three months ended September 30, 2026non-GAAP | $29.89M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $5.88M | (7.6)% | 27.9% |
| Operating income tax expense, three months ended September 30, 2026non-GAAP | $6.06M | – | – |
| Net income, three months ended September 30, 2026GAAP | $23.13M | 9.5% | 50.6% |
| Operating net income, three months ended September 30, 2026non-GAAP | $23.83M | – | – |
| Earnings per share, basic, three months ended September 30, 2026GAAP | $ 0.59 | 11.3% | 37.2% |
| Earnings per share, diluted, three months ended September 30, 2026GAAP | $ 0.58 | 9.4% | 34.9% |
| Operating earnings per share, diluted, three months ended September 30, 2026non-GAAP | $ 0.60 | – | – |
| Return on average assets, three months ended September 30, 2026GAAP | 1.23% | – | – |
| Operating return on average assets, three months ended September 30, 2026non-GAAP | 1.26% | – | – |
| Return on average shareholders' equity, three months ended September 30, 2026GAAP | 10.73% | – | – |
| Operating return on average shareholders' equity, three months ended September 30, 2026non-GAAP | 11.05% | – | – |
| Net interest margin, three months ended September 30, 2026GAAP | 3.97% | declined by 3 basis points | – |
| Net interest margin, excluding purchase accounting adjustments, three months ended September 30, 2026non-GAAP | 3.81% | declined by 6 basis points | – |
| Cost of deposits, three months ended September 30, 2026other | 2.69% | – | – |
| Efficiency ratio, three months ended September 30, 2026GAAP | 60.5% | – | – |
| Operating efficiency ratio, three months ended September 30, 2026non-GAAP | 59.3% | – | – |
| Total assets, September 30, 2026GAAP | $7.68B | 3.2% | 41.2% |
| Total loans, September 30, 2026GAAP | $6.82B | – | – |
| Loans receivable, net of deferred fees, September 30, 2026GAAP | $6.77B | 5.3% | 43.5% |
| Net loans, September 30, 2026GAAP | $6.69B | 5.5% | 43.1% |
| Total deposits, September 30, 2026GAAP | $6.52B | 3.2% | 42.8% |
| Core deposits, September 30, 2026other | $5.83B | 4.1% | 39.5% |
| Brokered deposits, September 30, 2026other | $692.6M | (3.8)% | 78.2% |
| Cash and cash equivalents, September 30, 2026GAAP | $266.1M | (33.5)% | (9.9)% |
| Federal Home Loan Bank borrowings, September 30, 2026GAAP | $150.3M | (17.1)% | 262.6% |
| Total shareholders' equity, September 30, 2026GAAP | $857.4M | 1.8% | 16.3% |
| Book value per share, September 30, 2026GAAP | $ 19.57 | – | – |
| Tangible book value per share, September 30, 2026non-GAAP | $ 18.91 | – | – |
| Allowance for credit losses, September 30, 2026GAAP | $78.31M | – | – |
| Allowance to total loans outstanding at the end of the period, September 30, 2026other | 1.16% | – | – |
| Total non-performing loans, September 30, 2026other | $36.08M | 30.4% | – |
| Total non-performing loans to total loans, September 30, 2026other | 0.53% | – | – |
| Allowance to non-performing loans, September 30, 2026other | 217% | – | – |
| Net charge-offs, three months ended September 30, 2026other | −$5.17M | – | – |
| Annualized net charge-offs to average loans outstanding during the period, three months ended September 30, 2026other | (0.31)% | – | – |
| Shareholders' equity to total assets, September 30, 2026GAAP | 11.16% | – | – |
| Tangible shareholders' equity to tangible assets, September 30, 2026non-GAAP | 10.82% | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 12, 2026, to shareholders of record as of October 29, 2026.
- $3.0 million in dividends paid during the current quarter.
What drove it
- Loan demand remained strong, with current-quarter growth primarily in commercial real estate loans excluding multi-family real estate loans, construction and land development loans, residential real estate loans, and mortgage warehouse loans.
- Net interest income increased primarily from an increase in the average balance of loans.
- Interest expense increased from higher average balances of certificates of deposit and individual retirement accounts and money market accounts, along with higher average Federal Reserve Bank borrowings.
- The provision for credit losses on loans declined primarily because improvements in credit quality of individually evaluated loans reduced specific reserve requirements.
- Salaries and employee benefits increased due to continued hirings, business line expansion, branch expansion, and other growth initiatives.
- State tax credits purchased during the current quarter were the primary driver of lower income tax expense and the effective tax rate.
Concerns
- Net interest margin declined by 3 basis points to 3.97%, while net interest margin excluding purchase accounting adjustments declined by 6 basis points to 3.81%.
- Noninterest expense increased $2.3 million, or 5.1%, to $46.3 million and the efficiency ratio increased to 60.5% from 58.9%.
- Non-performing loans increased $8.4 million, or 30.4%, to $36.1 million, primarily due to a commercial real estate loan acquired from BankProv being placed on non-accrual.
- Total net charge-offs were $5.2 million, or 0.31% of average total loans on an annualized basis, including a $4.0 million charge-off on a previously reserved PCD C&I loan.
- The allowance for credit losses declined to $78.3 million, or 1.16% of gross loans, from $82.1 million, or 1.28% of gross loans.
What to watch
- Loan and deposit growth relative to the 3.97% net interest margin and 2.69% cost of deposits.
- Credit performance in acquired BankProv loans, including the non-strategic enterprise value loan portfolio, which declined from $207.0 million at acquisition to $95.9 million as of September 30, 2026.
- Further movement in non-performing loans, allowance coverage, and net charge-offs.
- Expense growth associated with hiring, branch expansion, technology and systems investments, and the operating efficiency ratio.
Balance sheet and cash flow
- Total assets were $ 7,683,996 as of September 30, 2026, compared to $ 7,446,880 as of June 30, 2026.
- Cash and cash equivalents were $ 266,057 as of September 30, 2026, compared to $ 400,154 as of June 30, 2026.
- Gross loans increased $343.0 million, or 5.3%, to $6.77 billion from $6.42 billion in the prior quarter.
- Total deposits increased $201.3 million, or 3.2%, to $6.52 billion from $6.32 billion in the prior quarter.
- Federal Home Loan Bank borrowings were $ 150,322 as of September 30, 2026, compared to $ 181,247 as of June 30, 2026.
- Total shareholders' equity was $ 857,403 as of September 30, 2026, compared to $ 842,002 as of June 30, 2026.
Analysis
NB Bancorp reported third-quarter GAAP net income of $ 23,133 and diluted earnings per share of $ 0.58, compared with $ 21,123 and $ 0.53 in the prior quarter and $ 15,362 and $ 0.43 in the prior-year quarter. Operating net income was $ 23,828 and operating diluted earnings per share was $ 0.60. Return on average assets increased to 1.23% from 1.17% in the prior quarter, and return on average shareholders' equity increased to 10.73% from 10.03%.
Balance-sheet growth remained the principal operating driver. Gross loans increased $343.0 million, or 5.3%, to $6.77 billion, while total deposits increased $201.3 million, or 3.2%, to $6.52 billion. Core deposits increased $228.5 million, or 4.1%, to $5.83 billion, while brokered deposits decreased $27.2 million, or 3.8%, to $692.6 million. Net interest income increased $2.3 million, or 3.3%, to $71.4 million, but net interest margin declined by 3 basis points to 3.97% as deposit and borrowing costs rose alongside balance growth.
Expense and credit trends warrant attention. Noninterest expense increased $2.3 million, or 5.1%, to $46.3 million, reflecting hiring, business-line and branch expansion, technology investment, and contract settlement fees. The efficiency ratio rose to 60.5% from 58.9%. The allowance for credit losses declined to $78.3 million, or 1.16% of gross loans, while non-performing loans increased to $36.1 million from $27.7 million. Net charge-offs were $5.2 million, primarily due to a $4.0 million charge-off on a previously reserved PCD C&I loan acquired from BankProv.
Capital increased during the quarter despite higher accumulated other comprehensive loss. Total shareholders' equity increased to $857.4 million from $842.0 million, and tangible book value per share increased to $18.91 from $18.51. The company paid $3.0 million in dividends during the quarter and declared a quarterly cash dividend of $0.07 per share payable November 12, 2026. No forward financial guidance was provided in the filing.
Management, verbatim
The third quarter of 2026 displayed Needham Bank’s continued execution of our growth strategy as we continue to take market share and go up market for new customers.
Joseph Campanelli, Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, earnings, margin, expense, tax-rate or other financial guidance
- Prior-outlook comparison, because no previous outlook was provided
- Operating cash flow
- Free cash flow
- Share repurchases
- Gross margin
- Reportable operating segments
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.