NB Bancorp(US:NBBK)2026-01-22 21:16Financial Performance - Net income for Q4 2025 was $7.7 million, or $0.19 per diluted common share, down from $15.4 million, or $0.43 per diluted common share in the prior quarter[1]. - Operating net income, excluding one-time charges, was $21.2 million, or $0.51 per diluted common share, compared to $16.0 million, or $0.45 per diluted common share in the prior quarter[1]. - Net income decreased by 49.8% to $7,707 thousand from $15,362 thousand in the previous quarter[31]. - Earnings per share (basic) fell by 55.8% to $0.19 compared to $0.43 in the previous quarter[31]. - Operating return on average assets (non-GAAP) improved to 1.35% in Q4 2025, up from 1.20% in Q3 2025 and 1.04% in Q4 2024[36]. - Operating return on average shareholders' equity (non-GAAP) increased to 10.51% in Q4 2025, compared to 8.70% in Q3 2025 and 6.98% in Q4 2024[36]. Asset and Loan Growth - Total assets increased by $1.56 billion, or 28.7%, to $7.01 billion as of December 31, 2025[7]. - Gross loans increased by $1.27 billion, or 26.9%, to $5.99 billion from the prior quarter[8]. - Total loans reached $5.99 billion as of December 31, 2025, compared to $4.72 billion in the prior quarter[28]. - Total net charge-offs for the current quarter were $4.4 million, or 0.32% of average total loans on an annualized basis, compared to $590 thousand, or 0.05% in the prior quarter[20]. - Total loans increased to $5,994,016,000 as of December 31, 2025, reflecting an organic growth of $44,464,000 or 0.9% from Q3 2025[39]. Deposit and Funding - Total deposits rose by $1.29 billion, or 28.2%, to $5.85 billion, primarily due to the acquisition of Provident's deposit portfolio[12]. - Total deposits reached $5,853,534,000, marking an increase of $199,309,000 or 4.4% from $4,565,664,000 in Q3 2025[41]. - Core deposits increased by 27.3% to $5,317,853 thousand from $4,176,991 thousand in the previous quarter[29]. Interest Income and Expenses - Net interest income for the quarter was $58.8 million, an increase of $10.6 million, or 22.0%, from the prior quarter[9]. - Total interest and dividend income rose by 19.2% to $97,362 thousand from $81,688 thousand in the previous quarter[31]. - Noninterest expense increased by $18.8 million, or 61.8%, to $49.3 million due to merger-related costs[13]. - Noninterest expense surged by 61.8% to $49,334 thousand from $30,499 thousand in the previous quarter, driven by merger and acquisition expenses[31]. Credit Quality - The allowance for credit losses (ACL) increased to $85.0 million as of December 31, 2025, or 1.42% of total loans, up from $43.1 million, or 0.91% of total loans at September 30, 2025[20]. - Non-performing loans totaled $43.4 million as of December 31, 2025, an increase of $32.0 million, or 281.9%, from $11.4 million at the end of the prior quarter[20]. - Total non-performing loans to total loans ratio rose to 0.72% as of December 31, 2025, compared to 0.24% in Q3 2025 and 0.32% in Q4 2024[37]. - The allowance for credit losses at the end of Q4 2025 was $85,009,000, significantly up from $43,052,000 in Q3 2025 and $38,744,000 in Q4 2024[38]. Mergers and Acquisitions - The company completed the acquisition of Provident for $111.8 million in cash and 5,943,682 shares valued at $114.7 million, adding approximately $1.42 billion in total assets[5]. - Total merger and acquisition expenses for the three months ended December 31, 2025, amounted to $15,740,000[42]. - Total merger and acquisition expenses for the twelve months ended December 31, 2025, were $17,265,000[42]. Dividends and Shareholder Returns - The board declared a quarterly cash dividend of $0.07 per share, payable on February 19, 2026[4]. - The company adopted a stock repurchase program for up to 2,288,509 shares, approximately 5.0% of the shares currently outstanding[3].