NB Bancorp and Provident Bancorp enter into merger agreement

NB Bancorp (NBBK) and Provident Bancorp (PVBC) have entered into a definitive merger agreement for Provident to merge with and into Needham in a stock and cash transaction. Needham anticipates that following the merger of Provident into Needham, BankProv will merge with and into Needham Bank. Under the terms of the merger agreement, approved by both boards of directors, stockholders of Provident will receive for each share of Provident common stock, either 0.691 shares of Needham common stock or $13.00 in cash, subject to allocation procedures to ensure that 50% of the shares of Provident common stock will receive the stock consideration. The value of the transaction is estimated to be $211.8M. The transaction dilutes Needham’s tangible book value by approximately 6.1% and is expected to have an earn back period of approximately 2.7 years. The merger is expected to be completed in Q4 2025. All Provident directors and executive officers have agreed to vote in favor of the merger. As part of the merger, Joseph Reilly, President and CEO of Provident, will join the board of directors of Needham and Needham Bank. The combined organization will operate 18 branches across Metrowest, Greater Boston, the North Shore in Massachusetts and Southern New Hampshire. Total assets at transaction close are expected to be approximately $7.1B, with $5.9B in total deposits and $6.1B in total loans.