Needham Bank’s Dedham branch. Photo courtesy of Needham Bank
With its purchase of BankProv now completed, Needham Bank says its loan book has grown substantially.
The bank’s second-quarter earnings report, released Wednesday, showed gross loans hit $6.42 billion, up from $6.21 billion in the first quarter. That’s up $1.96 billion from the $4.46 billion Needham Bank in the second quarter of 2025, before the BankProv acquisition closed.
Total deposits were also up $6.32 billion, up from $4.27 billion in the second quarter of last year.
BankProv’s final quarterly report before the acquisition, covering the third quarter of 2025, reported $1.27 billion in total loans and $1.23 billion in total deposits.
The bank said it made several investments in the second quarter, including “targeted” introduction of artificial intelligence and automation software “designed to enhance internal efficiency, scalability, and employee effectiveness.” The investments added about $460,000 to its earnings report’s “data processing” line item, a 10.4 percent increase to $4.9 million for the current quarter.
Its efficiency ratio improved to 58.92 percent, from 61.55 percent in the prior quarter. Provision for credit losses decreased from $6.4 million in the first quarter to $3.1 million in the second, thanks to a primarily driven by an $822,000 recovery from a commercial and industrial loan and improved metrics in its commercial real estate loan book.
“The second quarter of 2026 displayed Needham Bank’s continued execution of our strategy for disciplined growth in market share,” Chairman, President and CEO Joseph Campanelli said in a statement. “The dedication and collaboration of our employees continue to be defining strengths for Needham Bank. As we invest thoughtfully in technology, artificial intelligence, and operational capabilities, while maintaining strong credit performance and disciplined growth, we are building a more scalable and efficient organization that is well-positioned to deliver long-term value for our customers, communities, and shareholders.”
