NB Bancorp (NBBK) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $15.0 million, up 18.4% year-over-year and nearly doubled sequentially, driven by strong loan growth, higher net interest income, and the integration of Provident Bancorp.

• Operating net income, excluding one-time charges, was $15.8 million ($0.38 per diluted share), up 15.3% year-over-year but down from $21.2 million in the prior quarter due to non-recurring items.

• The quarter included $534k in merger and acquisition costs, $500k in business line expansion fees, and $50k in BOLI surrender penalties.

• Successful integration of Provident Bancorp, with strategic investments in technology and business line expansion expected to drive growth in the second half of 2026.

• Quarterly cash dividend of $0.07 per share declared, payable May 20, 2026.

Financial highlights

• Total assets increased 3.1% to $7.23 billion as of March 31, 2026, primarily due to net loan growth.

• Net loans rose 3.9% to $6.13 billion, with notable increases in commercial and industrial, construction, and multi-family loans.

• Deposits grew 4.2% to $6.10 billion, with core deposits up 3.9% and brokered deposits up 6.4%.

• Net interest income increased 49.0% year-over-year to $64.9 million, and 10.4% sequentially, driven by higher average interest-earning assets and lower average rates on liabilities.

• Tangible book value per share was $18.00 at March 31, 2026; book value per share was $18.83.

Outlook and guidance

• Management expects continued prudent loan growth, focus on higher-yielding commercial assets, and ongoing investment in technology and risk management, with benefits anticipated in the second half of 2026.

• Interest rate risk models indicate moderate sensitivity, with a 200 basis point rate increase projected to boost net interest income by 4.0%.

• Liquidity remains strong, with significant borrowing capacity and a well-capitalized regulatory position.