NEEDHAM,
Mass., Jan. 22, 2025 /PRNewswire/ -- NB Bancorp,
Inc. (the "Company") (Nasdaq Capital Market: NBBK), the
holding company of Needham Bank (the
"Bank"), today announced its fourth quarter 2024 financial results.
The Company reported net income of $15.6
million, or $0.40 per diluted
share, compared to net income of $8.4
million, or $0.21 per diluted
share, for the prior quarter. Operating net income, excluding
one-time charges, amounted to $13.3
million, or $0.34 per diluted
share, compared to operating net income of $13.1 million, or $0.33 per diluted share for the prior
quarter.
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"We completed our first full year as a public company with a
strong financial performance. Results for the fourth quarter
include operating net income of $0.34
per share for the quarter and another quarter where our deposit
growth outpaced loan growth, which were both impressive, at 3.3%
and 2.0%, respectively. Tangible book value ended the year at
$17.89, as we are happy to announce
the commencement of our first share repurchase program, whereby we
plan to prudently manage our capital levels as we head into 2025
with continued growth opportunities," commented Joseph Campanelli, Chairman, President and Chief
Executive Officer. "Our first year as a public company was
successful in many facets and we look forward to continued growth
and success as we begin our second year of continuing to create
shareholder value," Campanelli continued.
The Company announced today that it has adopted a stock
repurchase program for up to 2,135,286 shares of the Company's
common stock, which equals approximately 5.0% of the shares
currently outstanding. This is the Company's first stock
repurchase program since completing its mutual-to-stock conversion
and related stock offering in December
2023.
SELECTED FINANCIAL HIGHLIGHTS FOR THE FOURTH QUARTER OF
2024
- Net income of $15.6 million, or
$0.40 per diluted share, compared to
net income of $8.4 million, or
$0.21 per diluted share, for the
prior quarter. Operating net income, excluding one-time charges,
amounted to $13.3 million, or
$0.34 per diluted share, compared to
operating net income of $13.1
million, or $0.33 per diluted
share for the prior quarter. One-time charges during the current
quarter include:
- Tax benefit related to an adjustment to a basis write-down of
solar income tax credits of $2.5
million, partially offset by;
- Tax expense and a modified endowment contract penalty related
to the surrender of bank-owned life insurance ("BOLI") policies of
$153 thousand.
- Net interest margin expanded one basis point to 3.52% during
the current quarter from 3.51% in the prior quarter.
- Gross loans increased $84.1
million, or 2.0%, to $4.33
billion, from $4.25 billion
the prior quarter.
- Total deposits increased $135.0
million, or 3.3%, from the prior quarter. Core deposits,
which the Company considers to be all non-brokered deposits,
increased $154.9 million, or 4.2%,
for the current quarter, offset partially by a decrease in brokered
deposits of $19.9 million or 6.0%
from the prior quarter.
- Book value per share and tangible book value per share were
$17.92 and $17.89, respectively, which increased from
$17.50 and $17.48, respectively in the prior quarter. The
increase in tangible book value per share was due to net income for
the current quarter of $15.6 million
and reversal of prior year deferred tax liabilities related to the
adoption of the proportional amortization method ("PAM") on solar
income tax credits of $2.3
million.
BALANCE SHEET
Total assets amounted to $5.16 billion as of December 31, 2024,
representing an increase of $155.3
million, or 3.1%, from September 30, 2024.
- Cash and cash equivalents increased $46.8 million, or 14.8%, to $363.9 million from $317.0
million in the prior quarter, as a result of deposit growth
outpacing loan growth.
- Net loans increased to $4.29
billion, representing an increase of $82.9 million, or 2.0%, from the prior quarter as
demand for new originations continued. The current quarter growth
was primarily seen in commercial real estate loans, which increased
$143.9 million, or 9.3%, residential
real estate loans, which increased $20.9
million or 1.7%, and consumer loans, which increased
$10.1 million, or 4.3%, offset
partially by a decrease in construction and land development loans
of $83.1 million, or 12.5%, and a
decrease in commercial and industrial loans of $7.1 million, or 1.3%.
- Prepaid expenses and other assets decreased $14.9 million, or 20.0%, to $59.5 million from $74.4
million, primarily from a decrease in income tax receivables
of $14.9 million, as a result of the
year-end true-up for deferred tax assets.
- Deferred income tax assets increased $12.8 million, or 73.5%, to $30.3 million from $17.5
million, as a result of the deferred tax assets from
year-end true-up of solar tax credit carryforwards.
- Deposits totaled $4.18 billion,
representing an increase of $135.0
million, or 3.3%, from the prior quarter. The increase in
deposits was the result of growth in customer deposits, primarily
money market accounts, which increased $91.9
million, or 8.9%, non-interest-bearing demand deposits,
which increased $62.6 million, or
11.2% and NOW accounts which increased $22.9
million, or 6.9%. The above increases were partially offset
by certificates of deposit, which decreased $20.1 million, or 1.2%, from the prior quarter,
along with brokered deposits, which decreased $20.1 million, or 6.1%, from the prior
quarter.
- FHLB borrowings increased to $120.8
million from $116.3 million, a
$4.5 million, or 3.9%, increase
during the current quarter as a result of the need to fund loan
growth and maintain adequate cash levels.
- Shareholders' equity was $765.2
million, representing an increase of $17.7 million, or 2.4%, from the prior quarter,
primarily as a result of $15.6
million of net income and a $2.3
million reversal of prior year deferred tax liabilities
related to the adoption of PAM on solar income tax credits.
Shareholders' equity to total assets and tangible shareholders'
equity to tangible assets were both 14.8% at the end of the
quarter.
NET INTEREST INCOME
Net interest income was
$42.5 million for the quarter ended
December 31, 2024, compared to $41.3 million for the prior quarter, representing
an increase of $1.2 million, or
2.9%.
- The increase in interest income during the quarter ended
December 31, 2024 was primarily
attributable to increases in the average balance of loans, which
contributed $1.5 million, increases
in the average rate on other investments, which contributed
$354 thousand and increases in the
average balances of securities, which contributed $249 thousand. These increases were partially
offset by decreases in the average rate on loans, which reduced
interest income by $993 thousand
during the quarter ended December 31,
2024.
- Interest expense remained unchanged for the quarter ended
December 31, 2024 from the prior
quarter.
NONINTEREST INCOME
Noninterest income was $3.8 million for the quarter ended
December 31, 2024, compared to $1.3 million for the prior quarter, representing
an increase of $2.5 million, or
198.9%.
- Net loss on sale of available-for-sale securities decreased
$1.9 million, or 100.0%, to
$0 during the quarter with no
security sales during the current quarter compared to the loss
trades executed to restructure the securities portfolio for higher
yields and lower risk during the prior quarter.
- BOLI income was $1.0 million,
compared to $414 thousand in the
prior quarter, representing an increase of $635 thousand, or 153.4%, due to the BOLI
restructure to higher rates in the prior quarter and carrying
$50.0 million in additional BOLI
policies while the older policies are in the process of being
surrendered.
NONINTEREST EXPENSE
Noninterest expense for the
quarter ended December 31, 2024 was $25.6 million, representing an increase of
$1.0 million, or 4.2%, from the prior
quarter.
- General and administrative expenses increased $1.6 million, or 1,432.2%, for the quarter ended
December 31, 2024, primarily as a
result of the adoption of Financial Accounting Standards Board
Accounting Standards Update ("ASU") 2023-02 under the proportional
amortization method ("PAM"), which reclassified amounts recognized
in the first and second quarters of 2024 related to the
amortization of solar tax credit investments from general and
administration expenses to income tax expense during the prior
quarter.
- Director and professional service fees increased $433 thousand during the quarter ended
December 31, 2024, primarily as a
result of increased consulting fees of $232
thousand, increased legal expenses of $130 thousand, and increased professional
services of $79 thousand.
- Data processing expenses increased $252
thousand during the quarter ended December 31, 2024, primarily a result of
increased IT infrastructure costs of $104
thousand and increased electronic banking and deposit
service expenses of $120
thousand.
- FDIC and state assessments increased $229 thousand during the quarter ended
December 31, 2024, primarily a result
of increased FDIC assessment rates.
- Salaries and employee benefits were $15.7 million for the quarter ended December 31, 2024, representing a decrease of
$1.5 million, or 8.5%, from the prior
quarter, primarily driven by a decrease in incentive compensation
expenses as the Company trued-up its bonus and other compensation
amounts for year-end; partially offset by increased employee
compensation of $179 thousand from
the prior quarter.
INCOME TAXES
Income tax expense for the quarter ended
December 31, 2024 was $3.7
million, representing a $3.3
million, or 47.6%, decrease from the prior quarter. The
decrease was primarily driven by the reversal of a deferred tax
liability related to the adoption of PAM under ASU 2023-02. The
effective tax rate for the current quarter was 19.0%, compared to
45.5% in the prior quarter. The primary driver of the decrease in
the effective tax rate was the income tax benefit for reversal of a
deferred tax liability related to the adoption of PAM, which
resulted in $2.5 million of income
tax benefit. Excluding this item, the effective tax rate (non-GAAP)
would have been 32.0%.
COMMERCIAL REAL ESTATE PORTFOLIO
Commercial real
estate loans increased $143.9
million, or 9.3%, to $1.70
billion, during the quarter ended
December 31, 2024.
- Cannabis facility commercial real estate loans increased
$8.8 million, or 2.8%, during the
quarter ended December 31, 2024. The
Company's cannabis facility commercial real estate portfolio is
secured entirely by the underlying commercial real estate of the
borrower operation. The vast majority of the loan portfolio
balances have a loan-to-value ratio of 65% or lower, with appraisal
reports taking a blended approach (using both cannabis and
non-cannabis use comparable real estate sales, which we believe are
generally more conservative).
- The cannabis facility portfolio has geographic dispersion, with
lower dollar exposure loans remaining local and larger dollar
exposure loans generally tied to multi-state operators with a more
national footprint. All cannabis facility loan relationships were
pass-rated and current at the end of the current quarter.
- The Company's $333.0 million
multi-family real estate loan portfolio consists of high-quality,
performing loans primarily located in the Greater Boston area, primarily all of which
are adjustable-rate loans.
- The Company's $182.8 million
office portfolio consists principally of suburban Class A and B
office space used as medical and traditional offices. The portfolio
does not consist of high-rise towers located in Boston.
ASSET QUALITY
- The allowance for credit losses ("ACL") amounted to
$38.7 million as of December 31, 2024, or 0.89% of total gross loans,
compared to $37.6 million, or 0.89%
of total loans at September 30, 2024.
The Company recorded provisions for credit losses of $1.4 million during the quarter ended
December 31, 2024, compared to
$2.6 million for the prior quarter,
which included a provision of $1.6
million for loans and a release of $214 thousand for unfunded commitments in the
current quarter.
- Non-performing loans totaled $13.9
million as of December 31,
2024, a decrease of $2.2
million, or 13.5%, from $16.0
million at the end of the prior quarter. The decrease was
primarily due to the reduction in one-to-four family residential
loans on non-accrual of $2.1 million
during the quarter ended December 31,
2024.
- During the quarter ended December 31,
2024, the Company recorded total net charge-offs of
$479 thousand, or 0.04% of average
total loans on an annualized basis, compared to $5.2 million, or 0.50% of average total loans on
an annualized basis, in the prior quarter. The decrease in net
charge-offs during the quarter ended December 31, 2024 was due to a $4.0 million charge-off of one commercial real
estate office participation loan during the prior quarter and a
$462 thousand decrease in purchased
consumer loan charge-offs, along with a $308
thousand increase in recoveries during the quarter.
- The Company's loan portfolio consists primarily of commercial
real estate and multi-family loans, one-to-four-family residential
real estate loans, construction and land development loans,
commercial and industrial loans and consumer loans. These loans are
primarily made to individuals and businesses located in our primary
lending market area, which is the Greater
Boston metropolitan area and surrounding communities in
Massachusetts, eastern
Connecticut, southern New Hampshire and Rhode Island.
SHARE REPURCHASE PLAN
The Company announced today that
it has adopted a share repurchase program for up
to 2,135,286 shares of common stock, which equals
approximately 5.0% of the shares currently issued and
outstanding.
- Shares may be repurchased in open market or private
transactions, through block trades, or pursuant to any trading plan
that may be adopted in accordance with Rule 10b5-1 of the
Securities and Exchange Commission ("SEC").
- Repurchases will be made at management's discretion at prices
management considers to be attractive and in the best interests of
both the Company and its shareholders, subject to the availability
of shares, general market conditions, the trading price of the
stock, alternative uses for capital, and the Company's financial
performance. Open market purchases may be subject to the
limitations set forth in Rule 10b-18
of the SEC and other applicable legal requirements.
- The timing and amount of share repurchases under the share
repurchase plan may be suspended, terminated or modified by the
Company at any time for any reason, including market conditions,
the cost of repurchasing shares, the availability of alternative
investment opportunities, liquidity, and other factors deemed
appropriate. These factors may also affect the timing and amount of
share repurchases.
The Company is not obligated to repurchase any particular number
of shares or any shares in any specific time period.
ABOUT NB BANCORP, INC.
NB Bancorp, Inc. (Nasdaq
Capital Market: NBBK) is the registered bank holding company of
Needham Bank. Needham Bank is headquartered in Needham, Massachusetts, which is approximately
17 miles southwest of Boston's
financial district. Known as the "Builder's Bank," Needham Bank has been helping individuals,
businesses and non-profits build for their futures since 1892.
Needham Bank offers an array of
tech-forward products and services that businesses and consumers
use to manage their financial needs. We have the financial
expertise typically found at much larger institutions and the local
knowledge and commitment you can only find at a community bank. For
more information, please visit https://NeedhamBank.com.
Needham Bank is a member of FDIC and
DIF.
Non-GAAP Financial Measures
In addition to results
presented in accordance with accounting principles generally
accepted in the United States of
America ("GAAP"), this press release contains certain
non-GAAP financial measures, including operating net income,
operating noninterest expense, operating noninterest income,
operating earnings per share, basic, operating earnings per share,
diluted, operating return on average assets, operating return on
average shareholders' equity, operating efficiency ratio, tangible
shareholders' equity, tangible assets, tangible book value per
share, and efficiency ratio. The Company's management believes that
the supplemental non-GAAP information is utilized by regulators and
market analysts to evaluate a Company's financial condition and
therefore, such information is useful to investors. These
disclosures should not be viewed as a substitute for financial
results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies. Because non-GAAP financial measures
are not standardized, it may not be possible to compare these
financial measures with other companies' non-GAAP financial
measures having the same or similar names.
Forward-Looking Statements
Statements in this press
release that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, and are intended to be covered by the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. We may also make forward-looking statements in other
documents we file with the Securities and Exchange Commission (the
"SEC"), in our annual reports to our stockholders, in press
releases and other written materials, and in oral statements made
by our officers, directors or employees. You can identify
forward-looking statements by the use of the words "believe,"
"expect," "anticipate," "intend," "estimate," "assume," "outlook,"
"will," "should," and other expressions that predict or indicate
future events and trends and which do not relate to historical
matters. Although the Company believes that these forward-looking
statements are based on reasonable estimates and assumptions, they
are not guarantees of future performance and are subject to known
and unknown risks, uncertainties, and other factors. You should not
place undue reliance on our forward-looking statements. You should
exercise caution in interpreting and relying on forward-looking
statements because they are subject to significant risks,
uncertainties and other factors which are, in some cases, beyond
the Company's control. The Company's actual results could differ
materially from those projected in the forward-looking statements
as a result of, among other factors, changes in general business
and economic conditions on a national basis and in the local
markets in which the Company operates, including changes which
adversely affect borrowers' ability to service and repay loans;
changes in customer behavior due to political, business and
economic conditions, including inflation and concerns about
liquidity; turbulence in the capital and debt markets; reductions
in net interest income resulting from interest rate volatility as
well as changes in the balances and mix of loans and deposits;
changes in interest rates and real estate values; changes in loan
collectability and increases in defaults and charge-off rates;
decreases in the value of securities and other assets, adequacy of
credit loss reserves, or deposit levels necessitating increased
borrowing to fund loans and investments; changing government
regulation; competitive pressures from other financial
institutions; changes in legislation or regulation and accounting
principles, policies and guidelines; cybersecurity incidents,
fraud, natural disasters, and future pandemics; the
risk that the Company may not be successful in the implementation
of its business strategy; the risk that intangibles recorded in the
Company's financial statements will become impaired; changes in
assumptions used in making such forward-looking statements; and the
other risks and uncertainties detailed in the Company's Form 10-K
and updated by our Quarterly Report on Form 10-Q and other filings
submitted to the SEC. These statements speak only as of the date of
this release and the Company does not undertake any obligation to
update or revise any of these forward-looking statements to reflect
events or circumstances occurring after the date of this
communication or to reflect the occurrence of unanticipated
events.
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NB BANCORP,
INC.
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SELECTED FINANCIAL
HIGHLIGHTS
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(Unaudited)
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(Dollars in
thousands, except per share data)
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As of and for the
three months ended
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December 31, 2024
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September 30, 2024
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December 31, 2023
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Earnings
data
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Net
interest income
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$
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42,521
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$
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41,324
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$
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35,278
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Noninterest income
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|
3,781
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|
1,265
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|
3,252
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Total
revenue
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46,302
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42,589
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38,530
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Provision
for credit losses
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1,404
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2,623
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5,901
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Noninterest expense
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25,623
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24,586
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52,788
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Pre-tax
income (loss)
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19,275
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15,380
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(20,159)
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Net income
(loss)
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15,611
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8,383
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(13,617)
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Operating
net income (non-GAAP)
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13,261
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13,116
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10,880
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Operating
noninterest expense (non-GAAP)
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25,623
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25,499
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23,875
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Per share
data
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Earnings
(loss) per share, basic
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$
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0.40
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$
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0.21
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$
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(0.32)
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Earnings
(loss) per share, diluted
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0.40
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0.21
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(0.32)
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Operating
earnings per share, basic (non-GAAP)
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0.34
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0.33
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0.26
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Operating
earnings per share, diluted (non-GAAP)
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0.34
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0.33
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0.26
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Book value
per share
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17.92
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17.50
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17.75
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Tangible
book value per share (non-GAAP)
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17.89
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17.48
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17.72
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Profitability
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Return
(loss) on average assets
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1.23 %
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0.68 %
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(1.25) %
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Operating
return on average assets (non-GAAP)
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1.04 %
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1.07 %
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1.00 %
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Return
(loss) on average shareholders' equity
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8.22 %
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4.42 %
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(13.75) %
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Operating
return on average shareholders' equity (non-GAAP)
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6.98 %
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6.91 %
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10.99 %
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Net
interest margin
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3.52 %
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3.51 %
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3.40 %
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Cost of
deposits
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3.24 %
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3.37 %
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2.84 %
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Efficiency
ratio
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55.34 %
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57.73 %
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137.00 %
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Operating
efficiency ratio (non-GAAP)
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55.34 %
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57.36 %
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61.96 %
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Balance sheet, end
of period
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Total
assets
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$
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5,157,737
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$
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5,002,394
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$
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4,533,391
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Total
loans
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4,333,152
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4,249,074
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3,889,279
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Total
deposits
|
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4,177,652
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4,042,654
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3,387,327
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Total
shareholders' equity
|
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765,167
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747,449
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757,959
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Asset
quality
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Allowance
for credit losses (ACL)
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$
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38,744
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$
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37,605
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$
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32,222
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ACL /
Total non-performing loans (NPLs)
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279.6 %
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234.9 %
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298.4 %
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Total NPLs
/ Total loans
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0.32 %
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0.38 %
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0.28 %
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Net
charge-offs (annualized) / Average total loans
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(0.04) %
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(0.50) %
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(0.14) %
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Capital
ratios
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Shareholders' equity / Total assets
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14.84 %
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14.94 %
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|
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16.72 %
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Tangible
shareholders' equity / tangible assets (non-GAAP)
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14.82 %
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14.92 %
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16.70 %
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NB BANCORP,
INC.
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CONSOLIDATED BALANCE
SHEETS
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(Unaudited)
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(Dollars in
thousands, except share and per share data)
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As of
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December 31, 2024 change
from
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December 31, 2024
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September 30, 2024
|
|
December 31, 2023
|
|
September 30, 2024
|
|
December 31, 2023
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
211,166
|
|
$
|
148,187
|
|
$
|
90,485
|
|
$
|
62,979
|
42.5 %
|
|
$
|
120,681
|
133.4 %
|
Federal funds
sold
|
|
152,689
|
|
|
168,862
|
|
|
182,106
|
|
|
(16,173)
|
(9.6) %
|
|
|
(29,417)
|
(16.2) %
|
Total cash
and cash equivalents
|
|
363,855
|
|
|
317,049
|
|
|
272,591
|
|
|
46,806
|
14.8 %
|
|
|
91,264
|
33.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
securities, at fair value
|
|
228,205
|
|
|
202,541
|
|
|
189,465
|
|
|
25,664
|
12.7 %
|
|
|
38,740
|
20.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable, net
of deferred fees
|
|
4,333,152
|
|
|
4,249,074
|
|
|
3,889,279
|
|
|
84,078
|
2.0 %
|
|
|
443,873
|
11.4 %
|
Allowance for credit
losses
|
|
(38,744)
|
|
|
(37,605)
|
|
|
(32,222)
|
|
|
(1,139)
|
3.0 %
|
|
|
(6,522)
|
20.2 %
|
Net
loans
|
|
4,294,408
|
|
|
4,211,469
|
|
|
3,857,057
|
|
|
82,939
|
2.0 %
|
|
|
437,351
|
11.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest
receivable
|
|
19,685
|
|
|
18,671
|
|
|
17,284
|
|
|
1,014
|
5.4 %
|
|
|
2,401
|
13.9 %
|
Banking premises and
equipment, net
|
|
34,654
|
|
|
34,802
|
|
|
35,531
|
|
|
(148)
|
(0.4) %
|
|
|
(877)
|
(2.5) %
|
Non-public
investments
|
|
24,364
|
|
|
24,271
|
|
|
38,733
|
|
|
93
|
0.4 %
|
|
|
(14,369)
|
(37.1) %
|
Bank-owned life
insurance ("BOLI")
|
|
102,785
|
|
|
101,736
|
|
|
50,516
|
|
|
1,049
|
1.0 %
|
|
|
52,269
|
103.5 %
|
Prepaid expenses and
other assets
|
|
59,482
|
|
|
74,387
|
|
|
53,088
|
|
|
(14,905)
|
(20.0) %
|
|
|
6,394
|
12.0 %
|
Deferred income tax
asset
|
|
30,299
|
|
|
17,468
|
|
|
19,126
|
|
|
12,831
|
73.5 %
|
|
|
11,173
|
58.4 %
|
Total
assets
|
$
|
5,157,737
|
|
$
|
5,002,394
|
|
$
|
4,533,391
|
|
$
|
155,343
|
3.1 %
|
|
$
|
624,346
|
13.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
Deposits
|
$
|
3,867,846
|
|
$
|
3,712,904
|
|
$
|
3,203,755
|
|
$
|
154,942
|
4.2 %
|
|
$
|
664,091
|
20.7 %
|
Brokered
Deposits
|
|
309,806
|
|
|
329,750
|
|
|
183,572
|
|
|
(19,944)
|
(6.0) %
|
|
|
126,234
|
68.8 %
|
Total
Deposits
|
|
4,177,652
|
|
|
4,042,654
|
|
|
3,387,327
|
|
|
134,998
|
3.3 %
|
|
|
790,325
|
23.3 %
|
Mortgagors' escrow
accounts
|
|
4,549
|
|
|
4,401
|
|
|
4,229
|
|
|
148
|
3.4 %
|
|
|
320
|
7.6 %
|
FHLB
borrowings
|
|
120,835
|
|
|
116,335
|
|
|
283,338
|
|
|
4,500
|
3.9 %
|
|
|
(162,503)
|
(57.4) %
|
Accrued expenses and
other liabilities
|
|
65,708
|
|
|
68,290
|
|
|
81,046
|
|
|
(2,582)
|
(3.8) %
|
|
|
(15,338)
|
(18.9) %
|
Accrued retirement
liabilities
|
|
23,826
|
|
|
23,265
|
|
|
19,492
|
|
|
561
|
2.4 %
|
|
|
4,334
|
22.2 %
|
Total
liabilities
|
|
4,392,570
|
|
|
4,254,945
|
|
|
3,775,432
|
|
|
137,625
|
3.2 %
|
|
|
617,138
|
16.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01
par value, 5,000,000 shares authorized; no shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
issued and
outstanding
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
0.0 %
|
|
|
-
|
0.0 %
|
Common stock, $0.01 par
value, 120,000,000 shares authorized; 42,705,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
issued and
outstanding at December 31 and September 30, 2024 and December 31,
2023, respectively
|
|
427
|
|
|
427
|
|
|
427
|
|
|
-
|
0.0 %
|
|
|
-
|
0.0 %
|
Additional paid-in
capital
|
|
417,247
|
|
|
417,013
|
|
|
417,030
|
|
|
234
|
0.1 %
|
|
|
217
|
0.1 %
|
Unallocated common
shares held by the Employee Stock Ownership Plan
("ESOP")
|
|
(44,813)
|
|
|
(45,407)
|
|
|
(13,774)
|
|
|
594
|
(1.3) %
|
|
|
(31,039)
|
225.3 %
|
Retained
earnings
|
|
400,473
|
|
|
382,560
|
|
|
366,173
|
|
|
17,913
|
4.7 %
|
|
|
34,300
|
9.4 %
|
Accumulated other
comprehensive loss
|
|
(8,167)
|
|
|
(7,144)
|
|
|
(11,897)
|
|
|
(1,023)
|
14.3 %
|
|
|
3,730
|
(31.4) %
|
Total
shareholders' equity
|
|
765,167
|
|
|
747,449
|
|
|
757,959
|
|
|
17,718
|
2.4 %
|
|
|
7,208
|
1.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$
|
5,157,737
|
|
$
|
5,002,394
|
|
$
|
4,533,391
|
|
$
|
155,343
|
3.1 %
|
|
$
|
624,346
|
13.8 %
|
NB BANCORP,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
Three Months Ended
December 31, 2024 Change From Three Months
Ended
|
|
December 31, 2024
|
|
September 30, 2024
|
|
December 31, 2023
|
|
September 30, 2024
|
|
December 31, 2023
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
70,977
|
|
$
|
70,518
|
|
$
|
61,696
|
|
$
|
459
|
0.7 %
|
|
$
|
9,281
|
15.0 %
|
Interest on investment
securities
|
|
2,116
|
|
|
1,768
|
|
|
1,161
|
|
|
348
|
19.7 %
|
|
|
955
|
82.3 %
|
Interest and dividends
on cash equivalents and other
|
|
4,107
|
|
|
3,717
|
|
|
1,445
|
|
|
390
|
10.5 %
|
|
|
2,662
|
184.2 %
|
Total
interest and dividend income
|
|
77,200
|
|
|
76,003
|
|
|
64,302
|
|
|
1,197
|
1.6 %
|
|
|
12,898
|
20.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
33,514
|
|
|
33,612
|
|
|
25,845
|
|
|
(98)
|
(0.3) %
|
|
|
7,669
|
29.7 %
|
Interest on
borrowings
|
|
1,165
|
|
|
1,067
|
|
|
3,179
|
|
|
98
|
9.2 %
|
|
|
(2,014)
|
(63.4) %
|
Total
interest expense
|
|
34,679
|
|
|
34,679
|
|
|
29,024
|
|
|
-
|
0.0 %
|
|
|
5,655
|
19.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
42,521
|
|
|
41,324
|
|
|
35,278
|
|
|
1,197
|
2.9 %
|
|
|
7,243
|
20.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR CREDIT
LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses - loans
|
|
1,618
|
|
|
4,997
|
|
|
1,662
|
|
|
(3,379)
|
(67.6) %
|
|
|
(44)
|
(2.6) %
|
(Release of) provision
for credit losses - unfunded commitments
|
|
(214)
|
|
|
(2,374)
|
|
|
4,239
|
|
|
2,160
|
(91.0) %
|
|
|
(4,453)
|
(105.0) %
|
Total
provision for credit losses
|
|
1,404
|
|
|
2,623
|
|
|
5,901
|
|
|
(1,219)
|
(46.5) %
|
|
|
(4,497)
|
(76.2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME
AFTER PROVISION FOR CREDIT LOSSES
|
|
41,117
|
|
|
38,701
|
|
|
29,377
|
|
|
2,416
|
6.2 %
|
|
|
11,740
|
40.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer service
fees
|
|
2,068
|
|
|
1,963
|
|
|
2,633
|
|
|
105
|
5.3 %
|
|
|
(565)
|
(21.5) %
|
Increase in cash
surrender value of BOLI
|
|
1,049
|
|
|
414
|
|
|
394
|
|
|
635
|
153.4 %
|
|
|
655
|
166.2 %
|
Mortgage banking
income
|
|
118
|
|
|
367
|
|
|
112
|
|
|
(249)
|
(67.8) %
|
|
|
6
|
5.4 %
|
Swap contract
income
|
|
531
|
|
|
375
|
|
|
95
|
|
|
156
|
41.6 %
|
|
|
436
|
458.9 %
|
Loss on sale of
available-for-sale securities, net
|
|
-
|
|
|
(1,868)
|
|
|
-
|
|
|
1,868
|
100.0 %
|
|
|
-
|
0.0 %
|
Other income
|
|
15
|
|
|
14
|
|
|
18
|
|
|
1
|
7.1 %
|
|
|
(3)
|
(16.7) %
|
Total
noninterest income
|
|
3,781
|
|
|
1,265
|
|
|
3,252
|
|
|
2,516
|
198.9 %
|
|
|
529
|
16.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
15,747
|
|
|
17,202
|
|
|
24,311
|
|
|
(1,455)
|
(8.5) %
|
|
|
(8,564)
|
(35.2) %
|
Director and
professional service fees
|
|
2,428
|
|
|
1,995
|
|
|
1,247
|
|
|
433
|
21.7 %
|
|
|
1,181
|
94.7 %
|
Occupancy and equipment
expenses
|
|
1,388
|
|
|
1,394
|
|
|
1,266
|
|
|
(6)
|
(0.4) %
|
|
|
122
|
9.6 %
|
Data processing
expenses
|
|
2,478
|
|
|
2,226
|
|
|
2,044
|
|
|
252
|
11.3 %
|
|
|
434
|
21.2 %
|
Marketing and
charitable contribution expenses
|
|
779
|
|
|
842
|
|
|
20,110
|
|
|
(63)
|
(7.5) %
|
|
|
(19,331)
|
(96.1) %
|
FDIC and state
insurance assessments
|
|
1,041
|
|
|
812
|
|
|
1,863
|
|
|
229
|
28.2 %
|
|
|
(822)
|
(44.1) %
|
General and
administrative expenses
|
|
1,762
|
|
|
115
|
|
|
1,947
|
|
|
1,647
|
1432.2 %
|
|
|
(185)
|
(9.5) %
|
Total
noninterest expense
|
|
25,623
|
|
|
24,586
|
|
|
52,788
|
|
|
1,037
|
4.2 %
|
|
|
(27,165)
|
(51.5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
TAXES
|
|
19,275
|
|
|
15,380
|
|
|
(20,159)
|
|
|
3,895
|
25.3 %
|
|
|
39,434
|
195.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
(BENEFITS)
|
|
3,664
|
|
|
6,997
|
|
|
(6,542)
|
|
|
(3,333)
|
(47.6) %
|
|
|
10,206
|
156.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$
|
15,611
|
|
$
|
8,383
|
|
$
|
(13,617)
|
|
$
|
7,228
|
86.2 %
|
|
$
|
29,228
|
214.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding, basic
|
|
39,291,088
|
|
|
39,289,271
|
|
|
42,018,229
|
|
|
1,817
|
0.0 %
|
|
|
(2,727,141)
|
(6.5) %
|
Weighted average common
shares outstanding, diluted
|
|
39,291,088
|
|
|
39,289,271
|
|
|
42,018,229
|
|
|
1,817
|
0.0 %
|
|
|
(2,727,141)
|
(6.5) %
|
Earnings (loss) per
share, basic
|
$
|
0.40
|
|
$
|
0.21
|
|
$
|
(0.32)
|
|
$
|
0.18
|
86.2 %
|
|
$
|
0.72
|
222.6 %
|
Earnings (loss) per
share, diluted
|
$
|
0.40
|
|
$
|
0.21
|
|
$
|
(0.32)
|
|
$
|
0.18
|
86.2 %
|
|
$
|
0.72
|
222.6 %
|
NB BANCORP,
INC.
|
AVERAGE BALANCES,
INTEREST EARNED/PAID & AVERAGE YIELDS
|
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
December 31, 2024
|
|
September 30, 2024
|
|
December 31, 2023
|
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Outstanding
|
|
|
|
|
Average
|
|
Outstanding
|
|
|
|
|
Average
|
|
Outstanding
|
|
|
|
|
Average
|
|
|
|
Balance
|
|
Interest
|
|
Yield/Rate (4)
|
|
Balance
|
|
Interest
|
|
Yield/Rate (4)
|
|
Balance
|
|
Interest
|
|
Yield/Rate (4)
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
4,278,952
|
|
$
|
70,977
|
|
6.60
|
%
|
$
|
4,188,504
|
|
$
|
70,518
|
|
6.70
|
%
|
$
|
3,784,363
|
|
$
|
61,696
|
|
6.47
|
%
|
Securities
|
|
|
215,268
|
|
|
2,116
|
|
3.91
|
%
|
|
204,273
|
|
|
1,768
|
|
3.44
|
%
|
|
194,024
|
|
|
1,161
|
|
2.37
|
%
|
Other investments
(5)
|
|
|
27,217
|
|
|
586
|
|
8.57
|
%
|
|
26,239
|
|
|
223
|
|
3.38
|
%
|
|
30,268
|
|
|
430
|
|
5.64
|
%
|
Short-term investments
(5)
|
|
|
283,540
|
|
|
3,521
|
|
4.94
|
%
|
|
264,394
|
|
|
3,494
|
|
5.26
|
%
|
|
111,067
|
|
|
1,015
|
|
3.63
|
%
|
Total interest-earning
assets
|
|
|
4,804,977
|
|
|
77,200
|
|
6.39
|
%
|
|
4,683,410
|
|
|
76,003
|
|
6.46
|
%
|
|
4,119,722
|
|
|
64,302
|
|
6.19
|
%
|
Non-interest-earning
assets
|
|
|
285,715
|
|
|
|
|
|
|
|
245,138
|
|
|
|
|
|
|
|
236,755
|
|
|
|
|
|
|
Allowance for credit
losses
|
|
|
(38,231)
|
|
|
|
|
|
|
|
(38,495)
|
|
|
|
|
|
|
|
(32,638)
|
|
|
|
|
|
|
Total assets
|
|
$
|
5,052,461
|
|
|
|
|
|
|
$
|
4,890,053
|
|
|
|
|
|
|
$
|
4,323,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
|
$
|
121,709
|
|
|
14
|
|
0.05
|
%
|
$
|
112,632
|
|
|
15
|
|
0.05
|
%
|
$
|
135,629
|
|
|
17
|
|
0.05
|
%
|
NOW accounts
|
|
|
326,379
|
|
|
283
|
|
0.34
|
%
|
|
327,484
|
|
|
180
|
|
0.22
|
%
|
|
330,830
|
|
|
204
|
|
0.24
|
%
|
Money market
accounts
|
|
|
951,916
|
|
|
9,203
|
|
3.85
|
%
|
|
876,933
|
|
|
8,943
|
|
4.06
|
%
|
|
829,353
|
|
|
6,869
|
|
3.29
|
%
|
Certificates of deposit
and individual retirement accounts
|
|
|
1,990,735
|
|
|
24,014
|
|
4.80
|
%
|
|
1,940,992
|
|
|
24,474
|
|
5.02
|
%
|
|
1,580,491
|
|
|
18,755
|
|
4.71
|
%
|
Total interest-bearing
deposits
|
|
|
3,390,739
|
|
|
33,514
|
|
3.93
|
%
|
|
3,258,041
|
|
|
33,612
|
|
4.10
|
%
|
|
2,876,303
|
|
|
25,845
|
|
3.56
|
%
|
FHLB
advances
|
|
|
95,873
|
|
|
1,165
|
|
4.83
|
%
|
|
85,156
|
|
|
1,067
|
|
4.98
|
%
|
|
220,475
|
|
|
3,179
|
|
5.72
|
%
|
Total interest-bearing
liabilities
|
|
|
3,486,612
|
|
|
34,679
|
|
3.96
|
%
|
|
3,343,197
|
|
|
34,679
|
|
4.13
|
%
|
|
3,096,778
|
|
|
29,024
|
|
3.72
|
%
|
Non-interest-bearing
deposits
|
|
|
725,377
|
|
|
|
|
|
|
|
713,566
|
|
|
|
|
|
|
|
729,928
|
|
|
|
|
|
|
Other
non-interest-bearing liabilities
|
|
|
84,964
|
|
|
|
|
|
|
|
78,681
|
|
|
|
|
|
|
|
104,211
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,296,953
|
|
|
|
|
|
|
|
4,135,444
|
|
|
|
|
|
|
|
3,930,917
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
755,508
|
|
|
|
|
|
|
|
754,609
|
|
|
|
|
|
|
|
392,922
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
5,052,461
|
|
|
|
|
|
|
$
|
4,890,053
|
|
|
|
|
|
|
$
|
4,323,839
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
42,521
|
|
|
|
|
|
|
$
|
41,324
|
|
|
|
|
|
|
$
|
35,278
|
|
|
|
Net interest rate
spread (1)
|
|
|
|
|
|
|
|
2.43
|
%
|
|
|
|
|
|
|
2.33
|
%
|
|
|
|
|
|
|
2.47
|
%
|
Net interest-earning
assets (2)
|
|
$
|
1,318,365
|
|
|
|
|
|
|
$
|
1,340,213
|
|
|
|
|
|
|
$
|
1,022,944
|
|
|
|
|
|
|
Net interest margin
(3)
|
|
|
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
|
3.51
|
%
|
|
|
|
|
|
|
3.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to interest-bearing liabilities
|
|
|
137.81
|
%
|
|
|
|
|
|
|
140.09
|
%
|
|
|
|
|
|
|
133.03
|
%
|
|
|
|
|
|
|
(1) Net interest rate
spread represents the difference between the weighted average yield
on interest-earning assets and the weighted average rate of
interest-bearing liabilities.
|
(2) Net
interest-earning assets represent total interest-earning assets
less total interest-bearing liabilities.
|
(3) Net interest margin
represents net interest income divided by average total
interest-earning assets.
|
(4)
Annualized
|
(5) Other investments
are comprised of FRB stock, FHLB stock and swap collateral
accounts. Short-term investments are comprised of cash and
cash equivalents.
|
NB BANCORP,
INC.
|
COMMERCIAL REAL
ESTATE BY COLLATERAL TYPE
|
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024
|
|
Owner-Occupied
|
|
Non-Owner-
Occupied
|
|
Balance
|
|
Percentage
|
Multi-Family
|
$
|
—
|
|
$
|
333,047
|
|
$
|
333,047
|
|
|
20 %
|
Cannabis
Facility
|
|
310,773
|
|
|
15,257
|
|
|
326,030
|
|
|
19 %
|
Industrial
|
|
123,191
|
|
|
74,057
|
|
|
197,248
|
|
|
12 %
|
Office
|
|
31,075
|
|
|
151,729
|
|
|
182,804
|
|
|
11 %
|
Hospitality
|
|
—
|
|
|
164,520
|
|
|
164,520
|
|
|
10 %
|
Special
Purpose
|
|
77,730
|
|
|
54,355
|
|
|
132,085
|
|
|
8 %
|
Retail
|
|
46,126
|
|
|
91,471
|
|
|
137,597
|
|
|
8 %
|
Mixed-Use
|
|
9,023
|
|
|
103,748
|
|
|
112,771
|
|
|
6 %
|
Other
|
|
41,490
|
|
|
68,849
|
|
|
110,339
|
|
|
6 %
|
Total commercial real
estate
|
$
|
639,408
|
|
$
|
1,057,033
|
|
$
|
1,696,441
|
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2024
|
|
Change From Three
Months Ended December 31, 2024
|
|
Owner-
Occupied
|
|
Non-
Owner-
Occupied
|
|
Balance
|
|
Percentage
|
|
Owner-
Occupied
|
|
Non-
Owner-
Occupied
|
|
Balance
|
|
Percentage
|
Multi-Family
|
$
|
—
|
|
$
|
272,561
|
|
$
|
272,561
|
|
|
18 %
|
|
$
|
—
|
|
$
|
60,486
|
|
$
|
60,486
|
|
|
22 %
|
Cannabis
Facility
|
|
301,931
|
|
|
15,334
|
|
|
317,265
|
|
|
20 %
|
|
|
8,842
|
|
|
(77)
|
|
|
8,765
|
|
|
3 %
|
Industrial
|
|
110,091
|
|
|
53,185
|
|
|
163,276
|
|
|
10 %
|
|
|
13,100
|
|
|
20,872
|
|
|
33,972
|
|
|
21 %
|
Office
|
|
30,884
|
|
|
177,614
|
|
|
208,498
|
|
|
13 %
|
|
|
191
|
|
|
(25,885)
|
|
|
(25,694)
|
|
|
(12) %
|
Hospitality
|
|
55
|
|
|
157,027
|
|
|
157,082
|
|
|
10 %
|
|
|
(55)
|
|
|
7,493
|
|
|
7,438
|
|
|
5 %
|
Special
Purpose
|
|
80,575
|
|
|
54,432
|
|
|
135,007
|
|
|
9 %
|
|
|
(2,845)
|
|
|
(77)
|
|
|
(2,922)
|
|
|
(2) %
|
Retail
|
|
27,466
|
|
|
91,412
|
|
|
118,878
|
|
|
8 %
|
|
|
18,660
|
|
|
59
|
|
|
18,719
|
|
|
16 %
|
Mixed-Use
|
|
8,509
|
|
|
63,292
|
|
|
71,801
|
|
|
5 %
|
|
|
514
|
|
|
40,456
|
|
|
40,970
|
|
|
57 %
|
Other
|
|
41,577
|
|
|
66,570
|
|
|
108,147
|
|
|
7 %
|
|
|
(87)
|
|
|
2,279
|
|
|
2,192
|
|
|
2 %
|
Total commercial
real estate
|
$
|
601,088
|
|
$
|
951,427
|
|
$
|
1,552,515
|
|
|
100 %
|
|
$
|
38,320
|
|
$
|
105,606
|
|
$
|
143,926
|
|
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023
|
|
Change From Three
Months Ended December 31, 2024
|
|
Owner-
Occupied
|
|
Non-
Owner-
Occupied
|
|
Balance
|
|
Percentage
|
|
Owner-
Occupied
|
|
Non-
Owner-
Occupied
|
|
Balance
|
|
Percentage
|
Multi-Family
|
$
|
—
|
|
$
|
209,982
|
|
$
|
209,982
|
|
|
15 %
|
|
$
|
—
|
|
$
|
123,065
|
|
$
|
123,065
|
|
|
59 %
|
Cannabis
Facility
|
|
242,713
|
|
|
15,553
|
|
|
258,266
|
|
|
19 %
|
|
|
68,060
|
|
|
(296)
|
|
|
67,764
|
|
|
26 %
|
Industrial
|
|
108,494
|
|
|
2,966
|
|
|
111,460
|
|
|
8 %
|
|
|
14,697
|
|
|
71,091
|
|
|
85,788
|
|
|
77 %
|
Office
|
|
27,741
|
|
|
159,241
|
|
|
186,982
|
|
|
14 %
|
|
|
3,334
|
|
|
(7,512)
|
|
|
(4,178)
|
|
|
(2) %
|
Hospitality
|
|
35
|
|
|
148,278
|
|
|
148,313
|
|
|
11 %
|
|
|
(35)
|
|
|
16,242
|
|
|
16,207
|
|
|
11 %
|
Special
Purpose
|
|
79,676
|
|
|
54,126
|
|
|
133,802
|
|
|
10 %
|
|
|
(1,946)
|
|
|
229
|
|
|
(1,717)
|
|
|
(1) %
|
Retail
|
|
27,709
|
|
|
103,996
|
|
|
131,705
|
|
|
9 %
|
|
|
18,417
|
|
|
(12,525)
|
|
|
5,892
|
|
|
4 %
|
Mixed-Use
|
|
8,765
|
|
|
62,563
|
|
|
71,328
|
|
|
5 %
|
|
|
258
|
|
|
41,185
|
|
|
41,443
|
|
|
58 %
|
Other
|
|
28,524
|
|
|
99,479
|
|
|
128,003
|
|
|
9 %
|
|
|
12,966
|
|
|
(30,630)
|
|
|
(17,664)
|
|
|
(14) %
|
Total commercial
real estate
|
$
|
523,657
|
|
$
|
856,184
|
|
$
|
1,379,841
|
|
|
100 %
|
|
$
|
115,751
|
|
$
|
200,849
|
|
$
|
316,600
|
|
|
23 %
|
NB BANCORP,
INC.
|
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|
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NON-GAAP
RECONCILIATION
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
December 31, 2024
|
|
September 30, 2024
|
|
December 31, 2023
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$
|
15,611
|
|
$
|
8,383
|
|
$
|
(13,617)
|
|
|
|
|
|
|
|
|
|
Add
(Subtract):
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|
|
|
|
|
|
|
|
Adjustments to net
income:
|
|
|
|
|
|
|
|
|
Losses on sales of
securities available for sale, net
|
|
-
|
|
|
1,868
|
|
|
-
|
Income tax expense
(benefit) on solar tax credit investment basis reduction
|
|
(2,503)
|
|
|
2,503
|
|
|
-
|
BOLI surrender tax and
modified endowment contract penalty
|
|
153
|
|
|
1,552
|
|
|
-
|
Adjustment for adoption
of ASU 2023-02
|
|
-
|
|
|
(913)
|
|
|
-
|
Needham Bank Charitable
Foundation contribution resulting from IPO
|
|
-
|
|
|
-
|
|
|
19,082
|
One-time conversion and
IPO-related compensation expense
|
|
-
|
|
|
-
|
|
|
7,931
|
Defined benefit pension
termination expense
|
|
-
|
|
|
-
|
|
|
1,900
|
Permanent tax
differences resulting from public company tax laws (1)
|
|
-
|
|
|
-
|
|
|
3,680
|
Total adjustments to
net income
|
$
|
(2,350)
|
|
$
|
5,010
|
|
$
|
32,593
|
Less net tax benefit
(expense) associated with non-GAAP adjustments
|
|
-
|
|
|
277
|
|
|
8,096
|
Non-GAAP adjustments,
net of tax
|
|
(2,350)
|
|
|
4,733
|
|
|
24,497
|
Operating net income
(non-GAAP)
|
$
|
13,261
|
|
$
|
13,116
|
|
$
|
10,880
|
Weighted average common
shares outstanding, basic
|
|
39,291,088
|
|
|
39,289,271
|
|
|
42,018,229
|
Weighted average common
shares outstanding, diluted
|
|
39,291,088
|
|
|
39,289,271
|
|
|
42,018,229
|
Operating earnings
per share, basic (non-GAAP)
|
$
|
0.34
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|
$
|
0.33
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|
$
|
0.26
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Operating earnings
per share, diluted (non-GAAP)
|
$
|
0.34
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|
$
|
0.33
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|
$
|
0.26
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|
|
|
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(1) These amounts are
reflected in income tax expense and reflect amounts related to
2023
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compensation and a
writedown for future LTIP vesting amounts that are not expected to
be deductible
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on a tax return. These
amounts are not included in the calculation of the tax impact on
the non-GAAP adjustments.
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|
|
|
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|
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Noninterest expense
(GAAP)
|
$
|
25,623
|
|
$
|
24,586
|
|
$
|
52,788
|
|
|
|
|
|
|
|
|
|
Subtract
(Add):
|
|
|
|
|
|
|
|
|
Noninterest expense
components:
|
|
|
|
|
|
|
|
|
Adjustment for adoption
of ASU 2023-02
|
|
-
|
|
|
(913)
|
|
|
-
|
Needham Bank Charitable
Foundation contribution resulting from IPO
|
|
-
|
|
|
-
|
|
|
19,082
|
One-time conversion and
IPO-related compensation expense
|
|
-
|
|
|
-
|
|
|
7,931
|
Defined benefit pension
termination expense
|
|
-
|
|
|
-
|
|
|
1,900
|
Total impact of
non-GAAP noninterest expense adjustments
|
$
|
-
|
|
$
|
(913)
|
|
$
|
28,913
|
Noninterest expense
on an operating basis (non-GAAP)
|
$
|
25,623
|
|
$
|
25,499
|
|
$
|
23,875
|
|
|
|
|
|
|
|
|
|
Noninterest income
(GAAP)
|
$
|
3,781
|
|
$
|
1,265
|
|
$
|
3,252
|
|
|
|
|
|
|
|
|
|
Subtract
(Add):
|
|
|
|
|
|
|
|
|
Noninterest expense
components:
|
|
|
|
|
|
|
|
|
Losses on sales of
securities available for sale, net
|
|
-
|
|
|
(1,868)
|
|
|
-
|
Total impact of
non-GAAP noninterest income adjustments
|
$
|
-
|
|
$
|
(1,868)
|
|
$
|
-
|
Noninterest income
on an operating basis (non-GAAP)
|
$
|
3,781
|
|
$
|
3,133
|
|
$
|
3,252
|
|
|
|
|
|
|
|
|
|
Operating net income
(non-GAAP)
|
$
|
13,261
|
|
$
|
13,116
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|
$
|
10,880
|
Average
assets
|
|
5,052,461
|
|
|
4,890,053
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|
|
4,323,839
|
Operating return on
average assets (non-GAAP)
|
|
1.04 %
|
|
|
1.07 %
|
|
|
1.00 %
|
Average shareholders'
equity
|
$
|
755,508
|
|
$
|
754,609
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|
$
|
392,922
|
Operating return on
average shareholders' equity (non-GAAP)
|
|
6.98 %
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|
|
6.91 %
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|
|
10.99 %
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|
|
|
|
|
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|
Noninterest expense on
an operating basis (non-GAAP)
|
$
|
25,623
|
|
$
|
25,499
|
|
$
|
23,875
|
Total revenue (net
interest income plus total noninterest income on an operating
basis) (non-GAAP)
|
|
46,302
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|
|
44,457
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|
|
38,530
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Operating efficiency
ratio (non-GAAP)
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|
55.34 %
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|
57.36 %
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|
|
61.96 %
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|
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As of
|
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December 31, 2024
|
|
September 30, 2024
|
|
December 31, 2023
|
|
|
|
|
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|
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|
Total shareholders'
equity (GAAP)
|
$
|
765,167
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|
$
|
747,449
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|
$
|
757,959
|
Subtract:
|
|
|
|
|
|
|
|
|
Intangible assets (core
deposit intangible)
|
|
1,079
|
|
|
1,116
|
|
|
1,227
|
Total tangible
shareholders' equity (non-GAAP)
|
|
764,088
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|
|
746,333
|
|
|
756,732
|
Total assets
(GAAP)
|
|
5,157,737
|
|
|
5,002,394
|
|
|
4,533,391
|
Subtract:
|
|
|
|
|
|
|
|
|
Intangible assets (core
deposit intangible)
|
|
1,079
|
|
|
1,116
|
|
|
1,227
|
Total tangible
assets (non-GAAP)
|
$
|
5,156,658
|
|
$
|
5,001,278
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|
$
|
4,532,164
|
Tangible shareholders'
equity / tangible assets (non-GAAP)
|
|
14.82 %
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|
|
14.92 %
|
|
|
16.70 %
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Total common shares
outstanding
|
|
42,705,729
|
|
|
42,705,729
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|
|
42,705,729
|
Tangible book value
per share (non-GAAP)
|
$
|
17.89
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|
$
|
17.48
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|
$
|
17.72
|
NB BANCORP,
INC.
|
ASSET QUALITY –
NON-PERFORMING ASSETS (1)
|
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024
|
|
September 30, 2024
|
|
December 31, 2023
|
Real estate
loans:
|
|
|
|
|
|
|
|
|
|
One-to-four-family
residential
|
|
$
|
2,930
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|
$
|
5,070
|
|
$
|
4,100
|
Home equity
|
|
|
958
|
|
|
1,060
|
|
|
590
|
Commercial real
estate
|
|
|
3,005
|
|
|
3,030
|
|
|
422
|
Construction and land
development
|
|
|
10
|
|
|
10
|
|
|
10
|
Commercial and
industrial
|
|
|
4,558
|
|
|
4,743
|
|
|
4,138
|
Consumer
|
|
|
2,395
|
|
|
2,099
|
|
|
1,539
|
Total
|
|
$
|
13,856
|
|
$
|
16,012
|
|
$
|
10,799
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans to total loans
|
|
|
0.32 %
|
|
|
0.38 %
|
|
|
0.28 %
|
Total non-performing
assets to total assets
|
|
|
0.27 %
|
|
|
0.32 %
|
|
|
0.24 %
|
|
(1) Non-performing
loans and assets are comprised of non-accrual loans
|
NB BANCORP,
INC.
|
ASSET QUALITY –
PROVISION, ALLOWANCE, AND NET (CHARGE-OFFS)
RECOVERIES
|
(Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
December 31, 2024
|
|
September 30, 2024
|
|
December 31, 2023
|
Allowance for credit
losses at beginning of the period
|
$
|
37,605
|
|
$
|
37,857
|
|
$
|
31,889
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
1,618
|
|
|
4,997
|
|
|
1,662
|
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
Consumer
|
|
843
|
|
|
1,305
|
|
|
1,519
|
Commercial real
estate
|
|
—
|
|
|
4,000
|
|
|
—
|
Total
charge-offs
|
|
843
|
|
|
5,305
|
|
|
1,519
|
|
|
|
|
|
|
|
|
|
Recoveries of loans
previously charged off:
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
202
|
|
|
12
|
|
|
12
|
Consumer
|
|
162
|
|
|
44
|
|
|
178
|
Total
recoveries
|
|
364
|
|
|
56
|
|
|
190
|
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
|
(479)
|
|
|
(5,249)
|
|
|
(1,329)
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses at end of the period
|
$
|
38,744
|
|
$
|
37,605
|
|
$
|
32,222
|
|
|
|
|
|
|
|
|
|
Allowance to
non-performing loans
|
|
279.6 %
|
|
|
234.9 %
|
|
|
298.4 %
|
Allowance to total
loans outstanding at the end of the period
|
|
0.89 %
|
|
|
0.89 %
|
|
|
0.83 %
|
Net charge-offs
(annualized) to average loans outstanding during
the period
|
|
(0.04) %
|
|
|
(0.50) %
|
|
|
(0.14) %
|
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multimedia:https://www.prnewswire.com/news-releases/nb-bancorp-inc-reports-fourth-quarter-2024-financial-results-and-announces-commencement-of-share-repurchase-plan-302357980.html
SOURCE Needham Bank