Needham Bank set to acquire BankProv in $211.8 million deal

NEEDHAM, Mass. - NB Bancorp, Inc. (NASDAQ:NBBK), the parent company of Needham Bank, currently valued at $630 million in market capitalization, has agreed to a definitive merger with Provident Bancorp, Inc. (NASDAQ:PVBC), the holding company for BankProv. The transaction, valued at approximately $211.8 million, will see Provident merge into Needham in a stock and cash deal, expanding Needham Bank’s presence into the North Shore of Massachusetts and New Hampshire. According to InvestingPro data, NBBK’s stock has shown resilience with an 11.8% return over the past year, despite recent market volatility.

Under the merger agreement, Provident shareholders will have the option to receive either 0.691 shares of Needham common stock or $13.00 in cash for each share of Provident common stock they hold, with a 50% allocation ensuring half of the Provident shares receive stock consideration. The merger is anticipated to be roughly 19% accretive to Needham’s earnings per share in 2026, with a tangible book value dilution of about 6.1% and an earn back period of roughly 2.7 years. InvestingPro analysis shows NBBK currently trades at a P/E ratio of 14.9x and maintains a "GOOD" overall financial health score, suggesting solid fundamentals for the merger execution.

The combined entity is slated to become the sixth-largest Massachusetts-based bank in the Boston MSA by deposit market share, with total assets expected to reach $7.1 billion, including $5.9 billion in deposits and $6.1 billion in loans. Needham Bank will issue approximately 5.9 million shares of its common stock as part of the merger, which is expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.

Joseph P. Campanelli, Chairman, President, and CEO of Needham, emphasized the strategic fit of the merger, citing BankProv’s shared philosophy and the potential to leverage capital for growth in new markets. Joseph B. Reilly, President and CEO of BankProv, also highlighted the benefits to customers and shareholders, as well as the enhanced product offerings that will result from the merger.

The merger is conditioned upon the affirmative vote by a majority of Provident shareholders and the receipt of necessary regulatory approvals. All Provident directors and executive officers have agreed to vote in favor of the merger, and following the transaction, Reilly is set to join the boards of directors of Needham and Needham Bank. Analysts tracking NBBK maintain a consensus target price of $19 per share, reflecting potential upside from current levels. For deeper insights into NBBK’s financial metrics and additional exclusive analysis, investors can access comprehensive data through InvestingPro, which features over 30 key financial indicators and expert recommendations.

The information in this article is based on a press release statement.

In other recent news, NB Bancorp, Inc. has successfully completed a stock repurchase program, buying back approximately 5% of its outstanding common stock, totaling 2,135,286 shares at an average price of $19.06 each. This move is part of the company’s capital management strategy, reflecting its commitment to enhancing shareholder value. Additionally, NB Bancorp has initiated a new stock repurchase plan, authorizing the buyback of up to 2,028,522 shares, representing about 5% of the company’s outstanding common stock. The repurchase will be conducted through various methods, including open market or private transactions.

Shareholders have also approved the 2025 Equity Incentive Plan, aimed at aligning the interests of employees and directors with those of shareholders. In the same meeting, four incumbent directors were re-elected to the board, and Elliott Davis, LLC was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These developments were disclosed in the company’s recent SEC filings, indicating a period of active corporate governance and financial strategy for NB Bancorp.

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