NB Bancorp, Inc. Reports First Quarter 2025 Financial Results

Rhea-AI Summary

NB Bancorp (NBBK) reported Q1 2025 financial results with net income of $12.7 million ($0.33 per diluted share), down from $15.6 million ($0.40 per share) in the previous quarter. Operating net income, excluding one-time charges, was $13.7 million ($0.35 per share).

Key highlights include:

• Net interest margin expanded by 9 basis points to 3.61%
• Deposits grew by $149.0 million (3.6%) to $4.33 billion
• Net loans increased by $131.8 million (3.1%) to $4.43 billion
• Tangible book value per share increased to $18.20
• Company repurchased 5% of outstanding shares at average cost of $19.06 per share

One-time charges included pension expense related to final liquidation ($884K net of tax) and BOLI policy surrender penalties ($154K). The loan-to-deposit ratio decreased to 102.3%, strengthening the company's liquidity position.

Positive

• Net interest margin expanded by 9 basis points to 3.61%
• Strong deposit growth of $149.0M (14.4% annualized)
• Loan growth of $131.8M (12.4% annualized)
• Operating net income increased to $13.7M from $13.3M
• Tangible book value per share grew by $0.31 (1.7%)

Negative

• Net income declined to $12.7M from $15.6M quarter-over-quarter
• EPS decreased to $0.33 from $0.40 in previous quarter
• Net charge-offs increased to $1.4M (0.12% of average loans)
• Shareholders' equity decreased by $25.6M (3.3%)
• Non-interest expense increased by $3.0M (11.9%)

Insights

Banking Financial Analyst

NB Bancorp shows core earnings improvement, margin expansion, and strong growth despite headline decline from one-time charges and tax impacts.

NB Bancorp's Q1 2025 results reveal a more positive picture beneath the surface than the headline numbers suggest. While reported net income declined to $12.7 million ($0.33/share) from $15.6 million ($0.40/share) in Q4 2024, operating net income (excluding one-time charges) actually increased to $13.7 million from $13.3 million.

The 9% basis point expansion in net interest margin to 3.61% is particularly impressive in the current banking environment. This improvement came from declining costs on interest-bearing liabilities while maintaining asset yields – exactly the formula for profitability regional banks need right now.

Growth metrics significantly outpace industry averages with annualized deposit growth of 14.4% and loan growth of 12.4%. Importantly, deposits grew faster than loans, improving the loan-to-deposit ratio to 102.3% and enhancing liquidity.

The aggressive share repurchase program (5% of outstanding shares at $19.06) reduced shareholders' equity by 3.3% but demonstrates management's confidence in the bank's intrinsic value. The premium paid over tangible book value ($18.20) suggests management sees significant upside potential.

The effective tax rate jumped from 19.0% to 28.0%, substantially impacting net income. This normalization followed an unusually low prior quarter rate due to solar tax credits and a deferred tax liability reversal.

Non-interest expenses increased 11.9%, primarily from rising personnel costs (up 21.6%), though this includes the $1.2 million pension liquidation charge. Excluding one-time items, expense growth still outpaces revenue growth – a trend requiring careful monitoring for long-term profitability.

Risk Management Specialist

Asset quality remains strong with decreasing NPLs, while conservative underwriting in potentially sensitive sectors demonstrates prudent risk management.

NB Bancorp's asset quality metrics show generally positive trends with non-performing loans decreasing 17.9% to $11.4 million, primarily from resolving a large commercial real estate loan. This improvement reflects effective problem loan management in a challenging economic environment.

The allowance for credit losses stands at $38.3 million, representing 0.86% of gross loans – slightly down from 0.89% in the previous quarter. This minor reduction in coverage ratio warrants monitoring but appears justified given the improving non-performing loan trends.

Net charge-offs increased to $1.4 million (0.12% of average loans annualized) from $479 thousand (0.04%) in the previous quarter. This increase stemmed primarily from the purchased consumer loan portfolio, which saw a $715 thousand rise in charge-offs. This isolated concentration in a specific portfolio segment rather than broad credit deterioration is somewhat reassuring.

The bank's commercial real estate exposure shows prudent risk management, particularly in potentially sensitive categories. The cannabis facility portfolio (which decreased 1.0% during the quarter) maintains conservative underwriting with loan-to-value ratios predominantly below 65% and geographical diversification. All cannabis facility relationships were pass-rated and current at quarter-end.

The $341.6 million multi-family portfolio consists of high-quality adjustable-rate loans primarily in the Greater Boston area. The $186.9 million office portfolio focuses on suburban Class A and B medical and traditional offices rather than urban high-rises, mitigating exposure to the most troubled segment of commercial real estate.

NEEDHAM, Mass., April 22, 2025 /PRNewswire/ -- NB Bancorp, Inc. (the "Company") (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the "Bank"), today announced its first quarter 2025 financial results. The Company reported net income of $12.7 million, or $0.33 per diluted common share, compared to net income of $15.6 million, or $0.40 per diluted common share, for the prior quarter. Operating net income, excluding one-time charges, amounted to $13.7 million, or $0.35 per diluted common share, compared to operating net income of $13.3 million, or $0.34 per diluted common share for the prior quarter.

"As we begin our second year as a public company, we continue to navigate the uncertainty in front of us, as well as focus on our growth in a disciplined manner and closely monitor our capital levels. We repurchased 5% of outstanding shares during the quarter at an all-in weighted average cost of $19.06 per share. Our loan-to-deposit ratio decreased to 102.3%, which further strengthens our overall liquidity position. Deposits grew by $149.0 million, or 3.6%, while net loans grew by $131.8 million, or 3.1%. On an annualized basis, deposits and loans grew by 14.4% and 12.4%, respectively. Net interest margin expanded by nine basis points to 3.61% for the quarter as our interest-bearing liabilities continued to reprice lower, while rates on interest-earning assets remained flat. Tangible book value ended the quarter at $18.20 and grew by $0.31, or 1.7%, during the quarter," commented Joseph Campanelli, Chairman, President and Chief Executive Officer. "We look forward to continuing to grow market share and successfully and prudently manage shareholders' equity to continue to increase shareholder value," Campanelli continued.

SELECTED FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER OF 2025

• Net income of $12.7 million, or $0.33 per diluted common share, compared to net income of $15.6 million, or $0.40 per diluted common share, for the prior quarter. Operating net income, excluding one-time charges, amounted to $13.7 million, or $0.35 per diluted common share, compared to operating net income of $13.3 million, or $0.34 per diluted common share for the prior quarter. One-time charges during the current quarter include:
  • Pension expense related to the final liquidation of the employee pension plan totaling $884 thousand (net of tax);
  • Tax expense and a modified endowment contract penalty related to the surrender of bank-owned life insurance ("BOLI") policies of $154 thousand.
• Net interest margin expanded nine basis points to 3.61% during the current quarter from 3.52% in the prior quarter.
• Gross loans increased $131.3 million, or 3.0%, to $4.46 billion, from $4.33 billion the prior quarter.
• Total deposits increased $149.0 million, or 3.6%, from the prior quarter. Core deposits, which the Company considers to be all non-brokered deposits, increased $149.5 million, or 3.9%, for the current quarter.
• Book value per share and tangible book value per share were $18.23 and $18.20, respectively, which increased from $17.92 and $17.89, respectively in the prior quarter. The increase in tangible book value per share was a result of $12.7 million in net income for the quarter, partially offset by the repurchase of 2,135,286 shares during the current quarter at an all-in weighted average cost of $19.06 per share.

BALANCE SHEET 
Total assets amounted to $5.24 billion as of March 31, 2025, representing an increase of $84.4 million, or 1.6%, from December 31, 2024.

• Cash and cash equivalents decreased $50.4 million, or 13.9%, to $313.4 million from $363.9 million in the prior quarter, as a result of the repurchase of shares during the quarter, along with the paydown of FHLB borrowings.
• Net loans increased to $4.43 billion, representing an increase of $131.8 million, or 3.1%, from the prior quarter as demand for new loan originations and advances continued. The current quarter growth was primarily seen in construction and land development loans, which increased $62.5 million, or 10.7%, commercial and industrial loans, which increased $49.6 million, or 8.9%, and commercial real estate loans, which increased $12.6 million, or 0.9%.
• Deposits totaled $4.33 billion, representing an increase of $149.0 million, or 3.6%, from $4.18 billion in the prior quarter. The increase in deposits was the result of growth in customer deposits, primarily money market accounts, which increased $127.1 million, or 12.7%; certificates of deposit, which increased $19.5 million, or 1.2%; and savings accounts, which increased $11.7 million, or 10.8%; partially offset by NOW accounts which decreased $11.3 million, or 2.4%, from the prior quarter.
• FHLB borrowings decreased to $90.8 million from $120.8 million, a $30.0 million, or 24.8%, decrease during the current quarter as a result of a paydown of outstanding borrowings due to deposit growth outpacing loan growth.
• Shareholders' equity was $739.6 million, representing a decrease of $25.6 million, or 3.3%, from the prior quarter, primarily as a result of the repurchase of shares during the quarter, which resulted in a $40.7 million decrease to shareholders' equity, partially offset by $12.7 million in net income. Shareholders' equity to total assets and tangible shareholders' equity to tangible assets were both 14.1% at the end of the quarter, both down from 14.8% in the prior quarter.

NET INTEREST INCOME
Net interest income was $43.5 million for the quarter ended March 31, 2025, compared to $42.5 million for the prior quarter, representing an increase of $1.0 million, or 2.4%. Net interest margin expanded nine basis points to 3.61% for the quarter from 3.52% from the prior quarter.

• The decrease in interest income during the quarter ended March 31, 2025 was primarily attributable to decreases in the average balance of short-term investments, as cash was utilized to repurchase shares during the quarter, partially offset by increases in interest income on loans and securities, both as a result of increases in average balances and rates earned.
• The decrease in interest expense for the quarter ended March 31, 2025 was primarily driven by decreases in the average rate on certificates of deposit and individual retirement accounts.

NONINTEREST INCOME
Noninterest income was $3.9 million for the quarter ended March 31, 2025, compared to $3.8 million for the prior quarter, representing an increase of $80 thousand, or 2.1%.

• Customer service fee income was $2.6 million, compared to $2.1 million in the prior quarter, representing an increase of $490 thousand, or 23.7%, as a result of a higher loan fees earned during the current quarter.
• Swap contract income was $88 thousand, compared to $531 thousand in the prior quarter, representing a decrease of $443 thousand, or 83.4%, due to reduced swap contract demand.

NONINTEREST EXPENSE
Noninterest expense for the quarter ended March 31, 2025 was $28.7 million, representing an increase of $3.0 million, or 11.9%, from the prior quarter.

• Salaries and employee benefits were $19.1 million for the quarter ended March 31, 2025, representing an increase of $3.4 million, or 21.6%, from the prior quarter, primarily driven by the $1.2 million final pension liquidation expense during the current quarter, increased employee payroll taxes due to annual FICA reset and annual bonus payments, increased salaries and health benefits expenses due to increased headcount.

INCOME TAXES
Income tax expense for the quarter ended March 31, 2025 was $4.9 million, representing a $1.3 million, or 34.1%, increase from the prior quarter. The increase was primarily driven by the prior quarter reversal of a deferred tax liability related to the proportional amortization method ("PAM") under ASU 2023-02, which reduced tax expense in the prior quarter. The effective tax rate for the current quarter was 28.0%, compared to 19.0% in the prior quarter. The primary driver of the increase in the effective tax rate was the prior quarter reversal of a deferred tax liability related to the adoption of PAM under ASU 2023-02, which reduced tax expense in the prior quarter and the significant amount of solar income tax credits earned during the prior year.  

COMMERCIAL REAL ESTATE PORTFOLIO
Commercial real estate loans increased $21.2 million, or 1.2%, to $1.72 billion, during the quarter ended March 31, 2025.

• Cannabis facility commercial real estate loans decreased $3.4 million, or 1.0%, during the quarter ended March 31, 2025. 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 $341.6 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 $186.9 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 $38.3 million as of March 31, 2025, or 0.86% of total gross loans, compared to $38.7 million, or 0.89% of total loans at December 31, 2024. The Company recorded provisions for credit losses of $1.2 million during the quarter ended March 31, 2025, which included a provision of $947 thousand for loans and a provision of $211 thousand for unfunded commitments, compared to provisions for credit losses of $1.4 million during the prior quarter. The decrease in the ACL for the quarter ended March 31, 2025 was the result of net charge-offs of $1.4 million, partially offset by provisions of $947 thousand.
• Non-performing loans totaled $11.4 million as of March 31, 2025, a decrease of $2.5 million, or 17.9%, from $13.9 million at the end of the prior quarter. The decrease was primarily due to the reduction in commercial real estate loans on non-accrual of $2.2 million during the quarter ended March 31, 2025 from the resolution of a large commercial real estate loan.
• During the quarter ended March 31, 2025, the Company recorded total net charge-offs of $1.4 million, or 0.12% of average total loans on an annualized basis, compared to $479 thousand, or 0.04% of average total loans on an annualized basis, in the prior quarter. The increase in net charge-offs during the quarter ended March 31, 2025 was due to a $715 thousand increase in purchased consumer loan charge-offs 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.

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.

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 effective tax rate, 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 and tangible book value per share. 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.

NB BANCORP, INC.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
	As of and for the three months ended
	March 31, 2025			December 31, 2024			March 31, 2024
Earnings data
Net interest income	$	43,526		$	42,521		$	38,633
Noninterest income		3,861			3,781			3,501
Total revenue		47,387			46,302			42,134
Provision for credit losses		1,158			1,404			4,429
Noninterest expense		28,660			25,623			25,565
Pre-tax income		17,569			19,275			12,140
Net income		12,655			15,611			8,701
Operating net income (non-GAAP)		13,693			13,261			8,980
Operating noninterest expense (non-GAAP)		27,443			25,623			25,175
Per share data
Earnings per share, basic	$	0.33		$	0.40		$	0.22
Earnings per share, diluted		0.33			0.40			0.22
Operating earnings per share, basic (non-GAAP)		0.35			0.34			0.23
Operating earnings per share, diluted (non-GAAP)		0.35			0.34			0.23
Book value per share		18.23			17.92			17.18
Tangible book value per share (non-GAAP)		18.20			17.89			17.16
Profitability
Return on average assets		1.00 %			1.23 %			0.78 %
Operating return on average assets (non-GAAP)		1.08 %			1.04 %			0.80 %
Return on average shareholders' equity		6.78 %			8.22 %			4.77 %
Operating return on average shareholders' equity (non-GAAP)		7.33 %			6.98 %			4.92 %
Net interest margin		3.61 %			3.52 %			3.62 %
Cost of deposits		3.11 %			3.24 %			3.17 %
Efficiency ratio		60.48 %			55.34 %			60.68 %
Operating efficiency ratio (non-GAAP)		57.91 %			55.34 %			59.75 %
Balance sheet, end of period
Total assets	$	5,242,157		$	5,157,737		$	4,649,826
Total loans		4,464,500			4,333,152			3,954,623
Total deposits		4,326,617			4,177,652			3,771,860
Total shareholders' equity		739,611			765,167			733,838
Asset quality
Allowance for credit losses (ACL)	$	38,338		$	38,744		$	34,306
ACL / Total non-performing loans (NPLs)		337.1 %			279.6 %			310.1 %
Total NPLs / Total loans		0.25 %			0.32 %			0.28 %
Net charge-offs (annualized) / Average total loans		(0.12) %			(0.04) %			(0.19) %
Capital ratios
Shareholders' equity / Total assets		14.11 %			14.84 %			15.78 %
Tangible shareholders' equity / tangible assets (non-GAAP)		14.09 %			14.82 %			15.76 %

 

NB BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
	As of									March 31, 2025 change from
	March 31, 2025			December 31, 2024			March 31, 2024			December 31, 2024				March 31, 2024
Assets
Cash and due from banks	$	201,140		$	211,166		$	163,657		$	(10,026)	(4.7) %		$	37,483	22.9 %
Federal funds sold		112,306			152,689			151,374			(40,383)	(26.4) %			(39,068)	(25.8) %
Total cash and cash equivalents		313,446			363,855			315,031			(50,409)	(13.9) %			(1,585)	(0.5) %
Available-for-sale securities, at fair value		234,680			228,205			207,169			6,475	2.8 %			27,511	13.3 %
Loans receivable, net of deferred fees		4,464,500			4,333,152			3,954,623			131,348	3.0 %			509,877	12.9 %
Allowance for credit losses		(38,338)			(38,744)			(34,306)			406	(1.0) %			(4,032)	11.8 %
Net loans		4,426,162			4,294,408			3,920,317			131,754	3.1 %			505,845	12.9 %
Accrued interest receivable		19,533			19,685			17,843			(152)	(0.8) %			1,690	9.5 %
Banking premises and equipment, net		34,069			34,654			35,106			(585)	(1.7) %			(1,037)	(3.0) %
Non-public investments		24,710			24,364			28,295			346	1.4 %			(3,585)	(12.7) %
Bank-owned life insurance ("BOLI")		103,688			102,785			50,917			903	0.9 %			52,771	103.6 %
Prepaid expenses and other assets		56,150			59,482			56,096			(3,332)	(5.6) %			54	0.1 %
Deferred income tax asset		29,719			30,299			19,052			(580)	(1.9) %			10,667	56.0 %
Total assets	$	5,242,157		$	5,157,737		$	4,649,826		$	84,420	1.6 %		$	592,331	12.7 %
Liabilities and shareholders' equity
Deposits
Core deposits	$	4,017,378		$	3,867,846		$	3,472,054		$	149,532	3.9 %		$	545,325	15.7 %
Brokered deposits		309,239			309,806			299,806			(567)	(0.2) %			9,433	3.1 %
Total deposits		4,326,617			4,177,652			3,771,860			148,965	3.6 %			554,758	14.7 %
Mortgagors' escrow accounts		4,464			4,549			4,300			(85)	(1.9) %			164	3.8 %
FHLB borrowings		90,835			120,835			60,837			(30,000)	(24.8) %			29,998	49.3 %
Accrued expenses and other liabilities		60,344			65,708			59,545			(5,364)	(8.2) %			799	1.3 %
Accrued retirement liabilities		20,286			23,826			19,446			(3,540)	(14.9) %			840	4.3 %
Total liabilities		4,502,546			4,392,570			3,915,988			109,976	2.5 %			586,559	15.0 %
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;  40,570,433 issued
and outstanding at March 31, 2025 and 42,705,729 issued and outstanding at   December 31 and March 31, 2024		406			427			427			(21)	(4.9) %			(21)	(4.9) %
Additional paid-in capital		376,773			417,247			416,812			(40,474)	(9.7) %			(40,039)	(9.6) %
Unallocated common shares held by the Employee Stock Ownership Plan ("ESOP")		(44,231)			(44,813)			(46,590)			582	(1.3) %			2,359	(5.1) %
Retained earnings		413,128			400,473			374,874			12,655	3.2 %			38,254	10.2 %
Accumulated other comprehensive loss		(6,465)			(8,167)			(11,685)			1,702	(20.8) %			5,220	(44.7) %
Total shareholders' equity		739,611			765,167			733,838			(25,556)	(3.3) %			5,773	0.8 %
Total liabilities and shareholders' equity	$	5,242,157		$	5,157,737		$	4,649,826		$	84,420	1.6 %		$	592,331	12.7 %

 

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 March 31, 2025 Change From Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024			December 31, 2024				March 31, 2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	71,440		$	70,977		$	64,000		$	463	0.7 %		$	7,440	11.6 %
Interest on securities		2,290			2,116			1,279			174	8.2 %			1,011	79.0 %
Interest and dividends on cash equivalents and other		3,121			4,107			2,914			(986)	(24.0) %			207	7.1 %
Total interest and dividend income		76,851			77,200			68,193			(349)	(0.5) %			8,658	12.7 %
INTEREST EXPENSE
Interest on deposits		32,239			33,514			28,217			(1,275)	(3.8) %			4,022	14.3 %
Interest on borrowings		1,086			1,165			1,343			(79)	(6.8) %			(257)	(19.1) %
Total interest expense		33,325			34,679			29,560			(1,354)	(3.9) %			3,765	12.7 %
NET INTEREST INCOME		43,526			42,521			38,633			1,005	2.4 %			4,893	12.7 %
PROVISION FOR CREDIT LOSSES
Provision for credit losses - loans		947			1,618			3,890			(671)	(41.5) %			(2,943)	(75.7) %
Provision for (release of) credit losses - unfunded commitments		211			(214)			539			425	198.6 %			(328)	(60.9) %
Total provision for credit losses		1,158			1,404			4,429			(246)	(17.5) %			(3,271)	(73.9) %
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		42,368			41,117			34,204			1,251	3.0 %			8,164	23.9 %
NONINTEREST INCOME
Customer service fees		2,558			2,068			1,880			490	23.7 %			678	36.1 %
Increase in cash surrender value of BOLI		1,031			1,049			401			(18)	(1.7) %			630	157.1 %
Mortgage banking income		176			118			110			58	49.2 %			66	60.0 %
Swap contract income		88			531			487			(443)	(83.4) %			(399)	(81.9) %
Other income		8			15			623			(7)	(46.7) %			(615)	(98.7) %
Total noninterest income		3,861			3,781			3,501			80	2.1 %			360	10.3 %
NONINTEREST EXPENSE
Salaries and employee benefits		19,149			15,747			17,560			3,402	21.6 %			1,589	9.0 %
Director and professional service fees		2,148			2,428			1,908			(280)	(11.5) %			240	12.6 %
Occupancy and equipment expenses		1,580			1,388			1,336			192	13.8 %			244	18.3 %
Data processing expenses		2,765			2,478			1,995			287	11.6 %			770	38.6 %
Marketing and charitable contribution expenses		846			779			742			67	8.6 %			104	14.0 %
FDIC and state insurance assessments		813			1,041			361			(228)	(21.9) %			452	125.2 %
General and administrative expenses		1,359			1,762			1,663			(403)	(22.9) %			(304)	(18.3) %
Total noninterest expense		28,660			25,623			25,565			3,037	11.9 %			3,095	12.1 %
INCOME BEFORE TAXES		17,569			19,275			12,140			(1,706)	(8.9) %			5,429	44.7 %
INCOME TAX EXPENSE		4,914			3,664			3,439			1,250	34.1 %			1,475	42.9 %
NET INCOME	$	12,655		$	15,611		$	8,701		$	(2,956)	(18.9) %		$	3,954	45.4 %
Weighted average common shares outstanding, basic		38,755,746			39,291,088			39,689,644			(535,342)	(1.4) %			(933,898)	(2.4) %
Weighted average common shares outstanding, diluted		38,755,746			39,291,088			39,689,644			(535,342)	(1.4) %			(933,898)	(2.4) %
Earnings per share, basic	$	0.33		$	0.40		$	0.22		$	(0.07)	(17.5) %		$	0.11	50.0 %
Earnings per share, diluted	$	0.33		$	0.40		$	0.22		$	(0.07)	(17.5) %		$	0.11	50.0 %

 

NB BANCORP, INC. AVERAGE BALANCES, INTEREST EARNED/PAID & AVERAGE YIELDS (Unaudited) (Dollars in thousands)
		For the Three Months Ended
		March 31, 2025								December 31, 2024								March 31, 2024
		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		$	4,366,408		$	71,440		6.64	%	$	4,278,952		$	70,977		6.60	%	$	3,903,044		$	64,000		6.60	%
Securities			230,406			2,290		4.03	%		215,268			2,116		3.91	%		193,296			1,279		2.66	%
Other investments (5)			27,454			219		3.24	%		27,217			586		8.57	%		25,043			416		6.68	%
Short-term investments (5)			264,343			2,902		4.45	%		283,540			3,521		4.94	%		175,616			2,498		5.72	%
Total interest-earning assets			4,888,611			76,851		6.38	%		4,804,977			77,200		6.39	%		4,296,999			68,193		6.38	%
Non-interest-earning assets			296,594								285,715								231,411
Allowance for credit losses			(38,685)								(38,231)								(32,744)
Total assets		$	5,146,520							$	5,052,461							$	4,495,666
Interest-bearing liabilities:
Savings accounts		$	113,750			46		0.16	%	$	108,594			14		0.05	%	$	125,806			16		0.05	%
NOW accounts			470,470			1,043		0.90	%		456,460			1,144		1.00	%		379,110			715		0.76	%
Money market accounts			1,073,041			8,747		3.31	%		965,031			8,342		3.44	%		852,758			7,193		3.39	%
Certificates of deposit and individual retirement accounts			1,979,184			22,403		4.59	%		1,990,735			24,014		4.80	%		1,669,337			20,293		4.89	%
Total interest-bearing deposits			3,636,445			32,239		3.60	%		3,520,820			33,514		3.79	%		3,027,011			28,217		3.75	%
FHLB advances			91,168			1,086		4.83	%		95,873			1,165		4.83	%		98,886			1,343		5.46	%
Total interest-bearing liabilities			3,727,613			33,325		3.63	%		3,616,693			34,679		3.81	%		3,125,897			29,560		3.80	%
Non-interest-bearing deposits			571,549								595,296								552,586
Other non-interest-bearing liabilities			90,025								84,964								83,488
Total liabilities			4,389,187								4,296,953								3,761,970
Shareholders' equity			757,333								755,508								733,695
Total liabilities and shareholders' equity		$	5,146,520							$	5,052,461							$	4,495,666
Net interest income					$	43,526							$	42,521							$	38,633
Net interest rate spread (1)								2.75	%							2.58	%							2.58	%
Net interest-earning assets (2)		$	1,160,998							$	1,188,284							$	1,171,102
Net interest margin (3)								3.61	%							3.52	%							3.62	%
Average interest-earning assets to interest-bearing liabilities			131.15	%							132.86	%							137.46	%

(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)
	March 31, 2025
	Owner-Occupied			Non-Owner-Occupied			Balance			Percentage
Multi-Family	$	—		$	341,619		$	341,619			20 %
Cannabis Facility		307,502			15,176			322,678			19 %
Industrial		124,218			73,795			198,013			11 %
Office		25,742			161,113			186,855			11 %
Hospitality		—			172,285			172,285			10 %
Special Purpose		76,388			54,185			130,573			8 %
Retail		46,710			88,181			134,891			8 %
Mixed-Use		7,653			111,780			119,433			7 %
Other		40,402			70,850			111,252			6 %
Total commercial real estate	$	628,615		$	1,088,984		$	1,717,599			100 %

 

	Change From December 31, 2024												Change From March 31, 2024
	Owner-Occupied			Non-Owner-Occupied			Balance			Percentage			Owner-Occupied			Non-Owner-Occupied			Balance			Percentage
Multi-Family	$	—		$	8,572		$	8,572			3 %		$	—		$	20,495		$	20,495			6 %
Cannabis Facility		(3,271)			(81)			(3,352)			(1) %			56,079			(305)			55,774			21 %
Industrial		1,027			(262)			765			0 %			16,619			19,529			36,148			22 %
Office		(5,333)			9,384			4,051			2 %			(9,061)			4,763			(4,298)			(2) %
Hospitality		—			7,765			7,765			5 %			(63)			24,041			23,978			16 %
Special Purpose		(1,342)			(170)			(1,512)			(1) %			(3,337)			(482)			(3,819)			(3) %
Retail		584			(3,290)			(2,706)			(2) %			18,605			(14,847)			3,758			3 %
Mixed-Use		(1,370)			8,032			6,662			6 %			(958)			49,244			48,286			68 %
Other		(1,088)			2,001			913			1 %			6,334			14,429			20,763			23 %
Total commercial real estate	$	(10,793)		$	31,951		$	21,158			1 %		$	84,218		$	116,867		$	201,085			13 %

 

	December 31, 2024												March 31, 2024
	Owner-Occupied			Non-Owner-Occupied			Balance			Percentage			Owner-Occupied			Non-Owner-Occupied			Balance			Percentage
Multi-Family	$	—		$	333,047		$	333,047			20 %		$	—		$	321,124		$	321,124			21 %
Cannabis Facility		310,773			15,257			326,030			19 %			251,423			15,481			266,904			17 %
Industrial		123,191			74,057			197,248			12 %			107,599			54,266			161,865			11 %
Office		31,075			151,729			182,804			11 %			34,803			156,350			191,153			12 %
Hospitality		—			164,520			164,520			10 %			63			148,244			148,307			10 %
Special Purpose		77,730			54,355			132,085			8 %			79,725			54,667			134,392			9 %
Retail		46,126			91,471			137,597			8 %			28,105			103,028			131,133			9 %
Mixed-Use		9,023			103,748			112,771			6 %			8,611			62,536			71,147			5 %
Other		41,490			68,849			110,339			6 %			34,068			56,421			90,489			6 %
Total commercial real estate	$	639,408		$	1,057,033		$	1,696,441			100 %		$	544,397		$	972,117		$	1,516,514			100 %

 

NB BANCORP, INC.
NON-GAAP RECONCILIATION
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Net income (GAAP)	$	12,655		$	15,611		$	8,701
Add (Subtract):
Adjustments to net income:
Income tax benefit on solar tax credit investment basis reduction		-			(2,503)			-
BOLI surrender tax and modified endowment contract penalty		154			153			-
Defined benefit pension termination expense		1,217			-			390
Total adjustments to net income	$	1,371		$	(2,350)		$	390
Less net tax benefit associated with defined benefit pension termination expense		333			-			111
Non-GAAP adjustments, net of tax		1,038			(2,350)			279
Operating net income (non-GAAP)	$	13,693		$	13,261		$	8,980
Weighted average common shares outstanding, basic		38,755,746			39,291,088			39,689,644
Weighted average common shares outstanding, diluted		38,755,746			39,291,088			39,689,644
Operating earnings per share, basic (non-GAAP)	$	0.35		$	0.34		$	0.23
Operating earnings per share, diluted (non-GAAP)	$	0.35		$	0.34		$	0.23
Noninterest expense (GAAP)	$	28,660		$	25,623		$	25,565
Subtract (Add):
Noninterest expense components:
Defined benefit pension termination expense		1,217			-			390
Total impact of non-GAAP noninterest expense adjustments	$	1,217		$	-		$	390
Noninterest expense on an operating basis (non-GAAP)	$	27,443		$	25,623		$	25,175
Operating net income (non-GAAP)	$	13,693		$	13,261		$	8,980
Average assets		5,146,520			5,052,461			4,495,666
Operating return on average assets (non-GAAP)		1.08 %			1.04 %			0.80 %
Average shareholders' equity	$	757,333		$	755,508		$	733,695
Operating return on average shareholders' equity (non-GAAP)		7.33 %			6.98 %			4.92 %
Noninterest expense on an operating basis (non-GAAP)	$	27,443		$	25,623		$	25,175
Total revenue (net interest income plus total noninterest income)		47,387			46,302			42,134
Operating efficiency ratio (non-GAAP)		57.91 %			55.34 %			59.75 %
Income tax expense (GAAP)	$	4,914		$	3,664		$	3,439
Subtract (Add):
Income tax benefit on solar tax credit investment basis reduction		-			(2,503)			-
Total impact of non-GAAP income tax expense adjustments	$	-		$	(2,503)		$	-
Income tax expense on an operating basis (non-GAAP)	$	4,914		$	6,167		$	3,439
Operating effective tax rate (non-GAAP)		28.0 %			32.0 %			28.3 %
	As of
	March 31, 2025			December 31, 2024			March 31, 2024
Total shareholders' equity (GAAP)	$	739,611		$	765,167		$	733,838
Subtract:
Intangible assets (core deposit intangible)		1,042			1,079			1,191
Total tangible shareholders' equity (non-GAAP)		738,569			764,088			732,647
Total assets (GAAP)		5,242,157			5,157,737			4,649,826
Subtract:
Intangible assets (core deposit intangible)		1,042			1,079			1,191
Total tangible assets (non-GAAP)	$	5,241,115		$	5,156,658		$	4,648,635
Tangible shareholders' equity / tangible assets (non-GAAP)		14.09 %			14.82 %			15.76 %
Total common shares outstanding		40,570,443			42,705,729			42,705,729
Tangible book value per share (non-GAAP)	$	18.20		$	17.89		$	17.16

 

NB BANCORP, INC. ASSET QUALITY – NON-PERFORMING ASSETS (1) (Unaudited) (Dollars in thousands)
		March 31, 2025			December 31, 2024			March 31, 2024
Real estate loans:
One-to-four-family residential		$	3,043		$	2,930		$	4,281
Home equity			1,157			958			586
Commercial real estate			841			3,005			422
Construction and land development			10			10			10
Commercial and industrial			4,560			4,558			4,125
Consumer			1,761			2,395			1,640
Total		$	11,372		$	13,856		$	11,064
Total non-performing loans to total loans			0.25 %			0.32 %			0.28 %
Total non-performing assets to total assets			0.22 %			0.27 %			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
	March 31, 2025			December 31, 2024			March 31, 2024
Allowance for credit losses at beginning of the period	$	38,744		$	37,605		$	32,222
Provision for credit losses		947			1,618			3,890
Charge-offs:
Commercial and industrial		—			—			369
Consumer		1,558			843			1,573
Total charge-offs		1,558			843			1,942
Recoveries of loans previously charged off:
Commercial and industrial		12			202			36
Consumer		193			162			100
Total recoveries		205			364			136
Net charge-offs		(1,353)			(479)			(1,806)
Allowance for credit losses at end of the period	$	38,338		$	38,744		$	34,306
Allowance to non-performing loans		337 %			280 %			310 %
Allowance to total loans outstanding at the end of the period		0.86 %			0.89 %			0.87 %
Net charge-offs (annualized) to average loans outstanding during the period		(0.12) %			(0.04) %			(0.19) %

 

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SOURCE Needham Bank

FAQ

What was NB Bancorp's (NBBK) earnings per share in Q1 2025?

NBBK reported earnings of $0.33 per diluted share in Q1 2025, or $0.35 per share excluding one-time charges.

How much did NBBK's deposits grow in Q1 2025?

Deposits grew by $149.0 million (3.6%) to $4.33 billion, representing an annualized growth rate of 14.4%.

What was the impact of NBBK's share repurchase program in Q1 2025?

NBBK repurchased 5% of outstanding shares (2,135,286 shares) at an average cost of $19.06 per share, resulting in a $40.7 million decrease in shareholders' equity.

How did NBBK's net interest margin perform in Q1 2025?

Net interest margin expanded by 9 basis points to 3.61% from 3.52% in the previous quarter.