Strategic Insights into Banking & Fintech

NB Bancorp to buy Provident in Mass. for $212 million

NB Bancorp in Needham, Mass., has agreed to buy Provident Bancorp in Amesbury, Mass.

The $5.5 billion-asset company said in a press release that it will pay $211.8 million in cash and stock for the $1.6 billion-asset Provident. The deal, which is expected to close in the fourth quarter, priced Provident at 93% of its tangible book value.

BankProv has seven branches, $1.2 billion in total deposits and $1.3 billion in gross loans. It also has a loan production office in Ponte Vedra Beach, Fla.

The deal is expected to be 19% accretive to NB Bancorp’s 2026 earnings per share, including cost savings. It should take less than three years for NB Bancorp to earn back an estimated 6.1% dilution to its tangible book value.

NB Bancorp plans to cut 35% of Provident’s annual noninterest expenses and incur $19.7 million of merger-related charges.

Joseph Reilly, Provident’s president and CEO, will join NB Bancorp’s board.

“This merger allows Needham Bank to expand into attractive market areas on the Massachusetts North Shore and in southern New Hampshire where we already have a concentration of business clients,” Joseph Campanelli, NB Bancorp’s chairman, president and CEO, said in the release.

“While we have a strong record of organic growth, this merger allows us to further leverage the capital we raised in late 2023 and continue to grow and expand our existing client base with branches in new markets,” Campanelli added. “Needham prides itself on being a nimble, future-ready organization that takes a relationship approach to the businesses and consumers we serve. BankProv shares that same philosophy, making this a good fit culturally for both organizations.”

Keefe Bruyette & Woods and Nutter McClennen & Fish advised NB Bancorp. Piper Sandler and Luse Gorman advised Provident.

Leave a Reply

Your email address will not be published. Required fields are marked *