NB Bancorp, the holding company for Needham Bank, has signed agreement to acquire Provident Bancorp, the holding company for BankProv, in a strategic stock and cash transaction. The merger will see BankProv integrate with Needham Bank, allowing Needham to expand its market presence in Massachusetts and Southern New Hampshire.
Under the agreement, stockholders of Provident will receive either 0.691 shares of Needham common stock or $13.00 in cash per Provident share. Needham will issue approximately 5.9 million shares of its common stock, with the transaction valued at $211.8m, based on Needham’s share price as of 4 June 2025.
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The merger is expected to dilute Needham’s tangible book value by 6.1% with an earn-back period of about 2.7 years.
Completion is anticipated in the fourth quarter of 2025, pending regulatory approvals and a majority vote from Provident shareholders. All Provident directors and executives have agreed to support the merger.
Joseph B. Reilly, Provident’s president and CEO, will join Needham’s board post-merger.
The combined entity will operate 18 branches across Massachusetts and Southern New Hampshire, with total assets of approximately $7.1bn, deposits of $5.9bn, and loans of $6.1bn.
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By GlobalDataNeedham chairman, president and CEO Joseph P. Campanelli stated: “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.”
BankProv CEO and president Joseph B. Reilly said: “Both organisations have a long history of serving our communities with a focus on ‘relationships, agility and entrepreneurship’ in banking. Combined, we will offer an expanded product line of commercial and consumer products that will provide real value to our market areas.”
BankProv, founded in 1828, operates seven branches and a loan office, with $1.6bn in assets as of 31 March 2025.
Keefe Bruyette & Woods, A Stifel Company, acted as financial adviser and Nutter McClennen & Fish served as legal counsel to Needham. Piper Sandler & Co. was the financial adviser and Luse Gorman, PC was legal counsel to Provident.
