NB Bancorp agrees to buy Provident Bancorp for $212M in stock, cash deal

[Old Bank sign]
georgeclerk

NB Bancorp (NASDAQ:NBBK [https://seekingalpha.com/symbol/NBBK]) has agreed to acquire [https://seekingalpha.com/pr/20128593-nb-bancorp-inc-and-provident-bancorp-inc-enter-into-definitive-merger-agreement] Provident Bancorp (NASDAQ:PVBC [https://seekingalpha.com/symbol/PVBC]) in a stock and cash transaction that's expected to close in Q4 2025, the lenders said Thursday.

Based on NB's (NASDAQ:NBBK [https://seekingalpha.com/symbol/NBBK]) stock price of $16.62 at the close of business on June 4, the deal is estimated to be valued at $211.8M.

Under the terms of the merger agreement, which was unanimously approved by both company boards, PVBC stockholders will receive for each share of PVBC common stock, at the holder's election, either 0.691 shares of NBBK common stock or $13.00 in cash, subject to allocation procedures to ensure that 50% of the shares of PVBC shares will receive the stock consideration.

NBBK is planning to issue about 5.9M of its common shares in conjunction with the merger, diluting the company's tangible book value by ~6.1%. The deal is expected to have an earn-back period of ~2.7 years.

As part of the merger, Joseph B. Reilly, president and CEO of Provident (NASDAQ:PVBC [https://seekingalpha.com/symbol/PVBC]), will join the board of Needham Bank (NBBK [https://seekingalpha.com/symbol/NBBK]).

The combined company 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 ~$7.1B, with $5.9Bin total deposits and $6.1B in total loans.

"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," said Needham Bank Chairman, President and CEO Joseph P. Campanelli.

PVBC shares gained 4% in after-hours trading, while NBBK was little changed.

MORE ON PROVIDENT BANCORP, NB BANCORP

* Bank Buzz: Insider Buying And Share Repurchase Program Support Buy Rating For NB Bancorp [https://seekingalpha.com/article/4774788-bank-buzz-insider-buying-and-share-repurchase-program-support-buy-rating-for-nb-bancorp]
* Seeking Alpha’s Quant Rating on Provident Bancorp [https://seekingalpha.com/symbol/PVBC/ratings/quant-ratings]
* Historical earnings data for Provident Bancorp [https://seekingalpha.com/symbol/PVBC/earnings]
* Financial information for Provident Bancorp [https://seekingalpha.com/symbol/PVBC/income-statement]
* Seeking Alpha’s Quant Rating on NB Bancorp [https://seekingalpha.com/symbol/NBBK/ratings/quant-ratings]