NB Bancorp Net Income Rises to $21.1 Million
The bank reported a net income of $21.1 million for the second quarter, up from $15.0 million in the previous period.
NB Bancorp (NBBK), the bank holding company, reported net income of $21.1 million, or $0.53 per diluted share, for the second quarter of 2026.
The results reflect a sequential improvement in profitability and asset quality, marked by a significant reduction in loan charge-offs and an expansion of margins.
Operating net income rose 38.5% sequentially to $21.9 million, or $0.55 per diluted share, compared with $15.8 million, or $0.38 per diluted share, in the prior quarter. The net interest margin expanded 7 basis points to 4.00% from 3.93%.
Loan growth was driven by commercial real estate, which increased by $196.7 million, alongside gains in residential and multi-family residential loans. These gains were offset by a 21.5% decrease in mortgage warehouse loans, bringing total loans to $6.42 billion. Total deposits rose 3.7% to $6.32 billion, supported by a 26.3% increase in brokered deposits.
Asset quality improved as non-performing loans as a percent of total loans fell to 0.43% from 0.73%. Total non-performing loans decreased by $17.9 million to $27.7 million. Annualized net charge-offs as a percent of average loans declined to 0.07% from 0.91% due to prior quarter charge-offs on previously reserved commercial and industrial loans.
The provision for credit losses fell 49.5% to $3.2 million from $6.3 million. Noninterest income rose 23.2% to $5.6 million, aided by a 17.6% increase in customer service fees. Noninterest expense increased 3.1% to $44.0 million, with higher spending on marketing, data processing, and insurance assessments.
Efficiency improved as the operating efficiency ratio fell to 57.66% from 60.06%. The effective tax rate decreased to 23.2% from 26.4% due to higher earned income tax credits and tax-exempt interest income.
NB Bancorp repurchased 918,727 shares during the quarter at a weighted average cost of $20.13 per share.