NB Bancorp, Inc. Reports Second Quarter 2024 Financial Results
NB Bancorp (NBBK) reported strong Q2 2024 financial results. Key highlights include:
- Net income of $9.5 million ($0.24 per diluted share), up from $8.7 million in Q1
- Gross loans increased 3.6% to $4.10 billion
- Total deposits grew 3.9% to $3.92 billion
- Net interest margin decreased 15 basis points to 3.45%
- Asset quality remains strong with 0.09% annualized net charge-offs
- Allowance for credit losses increased to 0.92% of total loans
The company saw growth in commercial and industrial loans, construction loans, and residential real estate loans. However, multi-family residential loans declined. NB Bancorp maintains a strong capital position with 15.5% shareholders' equity to total assets.
NB Bancorp (NBBK) ha riportato risultati finanziari solidi per il secondo trimestre del 2024. I punti salienti includono:
- Reddito netto di 9,5 milioni di dollari (0,24 dollari per azione diluita), in aumento rispetto agli 8,7 milioni di dollari del primo trimestre
- I prestiti lordi sono aumentati del 3,6% a 4,10 miliardi di dollari
- I depositi totali sono cresciuti del 3,9% a 3,92 miliardi di dollari
- Il margine di interesse netto è diminuito di 15 punti base al 3,45%
- La qualità degli attivi rimane solida con una perdita netta annualizzata dello 0,09%
- L'accantonamento per perdite su crediti è aumentato allo 0,92% dei prestiti totali
La società ha visto una crescita nei prestiti commerciali e industriali, nei prestiti per costruzione e nei prestiti per immobili residenziali. Tuttavia, i prestiti per abitazioni multifamiliari sono diminuiti. NB Bancorp mantiene una posizione patrimoniale solida con un'allocazione del capitale del 15,5% rispetto al totale degli attivi.
NB Bancorp (NBBK) informó resultados financieros sólidos para el segundo trimestre de 2024. Los puntos destacados incluyen:
- Ingreso neto de 9,5 millones de dólares (0,24 dólares por acción diluida), en comparación con 8,7 millones de dólares en el primer trimestre
- Los préstamos brutos aumentaron un 3,6% a 4,10 mil millones de dólares
- Los depósitos totales crecieron un 3,9% a 3,92 mil millones de dólares
- El margen de interés neto disminuyó 15 puntos básicos al 3,45%
- La calidad de los activos se mantiene sólida con un 0,09% de cargas netas anualizadas
- La provisión para pérdidas crediticias aumentó al 0,92% de los préstamos totales
La empresa vio crecimiento en préstamos comerciales e industriales, préstamos para construcción y préstamos para bienes raíces residenciales. Sin embargo, los préstamos para viviendas multifamiliares disminuyeron. NB Bancorp mantiene una posición de capital sólida con un 15,5% de capital de los accionistas respecto al total de activos.
NB Bancorp (NBBK)는 2024년 2분기 재무 결과를 강력하게 보고했습니다. 주요 세부 사항은 다음과 같습니다:
- 순이익 950만 달러 (희석 주당 0.24달러), 1분기 870만 달러에서 증가
- 총 대출이 3.6% 증가하여 41억 달러
- 총 예금이 3.9% 증가하여 39.2억 달러
- 순이자 마진이 15 베이시스 포인트 감소하여 3.45%
- 자산 품질은 연간 순충당금 비율이 0.09%로 강력하게 유지됨
- 신용손실충당금이 총 대출의 0.92%로 증가
회사는 상업 및 산업 대출, 건설 대출 및 주거용 부동산 대출에서 성장을 보았습니다. 그러나 다가구 주거 대출은 감소했습니다. NB Bancorp는 자산 총액 대비 15.5%의 주주 자본 비율로 강한 자본 위치를 유지하고 있습니다.
NB Bancorp (NBBK) a annoncé de solides résultats financiers pour le deuxième trimestre de 2024. Les points clés incluent :
- Un revenu net de 9,5 millions de dollars (0,24 dollar par action diluée), en hausse par rapport à 8,7 millions de dollars au premier trimestre
- Les prêts bruts ont augmenté de 3,6% pour atteindre 4,10 milliards de dollars
- Les dépôts totaux ont augmenté de 3,9% pour atteindre 3,92 milliards de dollars
- La marge d'intérêt nette a diminué de 15 points de base pour atteindre 3,45%
- La qualité des actifs demeure solide avec un taux de défaut net annualisé de 0,09%
- La provision pour pertes de crédit a augmenté à 0,92% des prêts totaux
L'entreprise a connu une croissance des prêts commerciaux et industriels, des prêts à la construction et des prêts immobiliers résidentiels. Cependant, les prêts multifamiliaux ont diminué. NB Bancorp maintient une position capitalistique solide avec un ratio de 15,5% d'équité des actionnaires par rapport aux actifs totaux.
NB Bancorp (NBBK) hat starke finanzielle Ergebnisse für das zweite Quartal 2024 gemeldet. Die wichtigsten Punkte beinhalten:
- Nettoergebnis von 9,5 Millionen Dollar (0,24 Dollar pro verwässerter Aktie), gestiegen von 8,7 Millionen Dollar im ersten Quartal
- Bruttokredite stiegen um 3,6% auf 4,10 Milliarden Dollar
- Gesamteinlagen wuchsen um 3,9% auf 3,92 Milliarden Dollar
- Nettomargen auf Zinsen sanken um 15 Basispunkte auf 3,45%
- Die Vermögensqualität bleibt stark mit annualisierten Nettoausfällen von 0,09%
- Die Rückstellungen für Kreditverluste stiegen auf 0,92% der Gesamtdarlehen
Das Unternehmen verzeichnete Wachstum bei gewerblichen und industriellen Krediten, Baukrediten und Wohnimmobilienkrediten. Die Kredite für Mehrfamilienhäuser sind jedoch zurückgegangen. NB Bancorp hat eine starke Kapitalposition mit einem Eigenkapital von 15,5% im Verhältnis zu den Gesamtaktiva.
- Net income increased to $9.5 million ($0.24 per diluted share) from $8.7 million in Q1
- Gross loans grew 3.6% to $4.10 billion
- Total deposits increased 3.9% to $3.92 billion
- Strong capital position with 15.5% shareholders' equity to total assets
- Book value per share increased to $17.43
- Net interest margin decreased 15 basis points to 3.45%
- Non-performing loans increased to $20.7 million, up 91.8% from Q1
- Multi-family residential loans declined by $53.6 million or 16.7%
- Noninterest income decreased by 14.9% to $3.0 million
Insights
NB Bancorp's Q2 2024 results demonstrate solid performance with some notable highlights and concerns:
- Earnings Growth: Net income increased to
$9.5 million ($0.24 per diluted share), up from$8.7 million ($0.22 per diluted share) in Q1. This9.2% quarter-over-quarter growth is encouraging. - Loan Growth: Gross loans increased by
3.6% to$4.10 billion , showing strong demand in their market. Commercial and industrial loans saw significant growth of17.5% . - Deposit Growth: Total deposits increased by
3.9% , with core deposits growing4.2% . This outpaced loan growth, indicating a healthy funding position. - Asset Quality Concerns: Non-performing loans increased to
$20.7 million (0.51% of total loans), up from$10.8 million in Q1. This91.8% increase is concerning, primarily due to a$6.2 million office loan placed on non-accrual. - Net Interest Margin Pressure: NIM decreased 15 basis points to
3.45% , reflecting the challenging interest rate environment.
While overall performance is solid, the sharp increase in non-performing loans and NIM compression warrant close monitoring in future quarters.
Analyzing NB Bancorp's Q2 2024 results in the context of the broader banking sector reveals several key insights:
- Deposit Resilience: The bank's ability to grow core deposits by
4.2% is impressive, especially given the recent banking sector turmoil. This suggests strong customer confidence and effective deposit gathering strategies. - Loan Mix Shift: The
17.5% growth in commercial and industrial loans, coupled with a16.7% decrease in multi-family loans, indicates a strategic shift towards potentially higher-yielding assets. This could help offset NIM pressure in future quarters. - Office Exposure: The
$6.2 million office loan placed on non-accrual highlights the ongoing challenges in the commercial real estate sector, particularly in office spaces. However, the bank's focus on medical and lab space in suburban areas may provide some insulation from the worst of the office market downturn. - Capital Position: With a
15.5% shareholders' equity to total assets ratio, NB Bancorp maintains a strong capital position, providing a buffer against potential economic headwinds.
Overall, NB Bancorp's performance appears to be in line with or slightly better than industry trends, particularly in deposit growth and capital strength. However, the increase in non-performing loans bears watching, as it could signal broader credit quality issues if the trend continues.
SELECTED FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER OF 2024
- Net income of
$9.5 million $0.24 $8.7 million $0.22 - Gross loans increased
$142.7 million 3.6% , to$4.10 billion - Net interest margin on a fully-tax equivalent basis decreased 15 basis points to
3.45% . - Asset quality remains strong:
- Annualized net charge-offs of
0.09% of average total loans and non-performing loans of$20.7 million 0.51% of total loans. All of the charge-offs in the quarter were in the purchased consumer loan portfolio. - The increase in non-performing loans was primarily due to a
$6.2 million $1.0 million - Provision for the ACL was
$3.7 million $4.4 million $3.6 million 0.92% .
- Annualized net charge-offs of
- Total deposits increased
$145.9 million 3.9% , from the prior quarter. There was no change in the brokered deposit balance, therefore the$145.9 million 4.2% , for the quarter. - Borrowings and brokered deposits totaled
7.5% of total assets, compared to7.8% in the prior quarter. - Strong capital position with
15.5% shareholders' equity to total assets and15.5% tangible shareholders' equity to tangible assets. - Book value per share and tangible book value per share were
$17.43 $17.41
"We had a very successful second quarter, with loans growing
BALANCE SHEET
Total assets were
- Cash and cash equivalents increased to
$328.9 million $315.0 million $13.9 million 4.4% , increase from the prior quarter as a result of net income, deposit growth outpacing loan growth and cash received from investment paydowns. - Available-for-sale securities decreased
$2.1 million 1.0% , from the prior quarter, to$205.1 million - Net loans increased to
$4.06 billion $139.1 million 3.5% , from the prior quarter as demand for new originations continued. The main driver of the new growth was in commercial and industrial loans, which increased$87.3 million 17.5% , construction and land development loans, which increased$43.1 million 8.0% , commercial real estate loans, which increased$28.8 million 2.4% , and residential real estate loans, which increased$22.3 million 1.9% , partially offset by a decline in multi-family residential loans of$53.6 million 16.7% . - Deposits totaled
$3.92 billion $145.9 million 3.9% , from the prior quarter. The increase in deposits was the result of growth in customer deposits, primarily certificates of deposit, which increased$131.3 million 9.0% , from the prior quarter, along with NOW accounts, which increased$16.2 million 4.8% . - Shareholders' equity was
$744.5 million $10.6 million 1.4% , from the prior quarter, primarily as a result of$9.5 million
NET INTEREST INCOME
Net interest income was
- The increase in interest income during the quarter ended June 30, 2024 was primarily attributable to increases in the average balance of loans and other interest-earning assets, which contributed
$2.9 million - The increase in interest expense for the quarter ended June 30, 2024 was primarily driven by increases in rates on interest-bearing deposits, which increased interest expense by
$1.9 million $1.5 million
NONINTEREST INCOME
Noninterest income was
- Other income was
$12 thousand $623 thousand $611 thousand 98.1% , due to a one-time debit card brand signing bonus in the prior quarter. - Swap contract income was
$265 thousand $487 thousand $222 thousand 45.6% , due to fewer swap contract originations. - Mortgage banking income increased
$318 thousand 289.1% , from the prior quarter, primarily driven by a higher volume of residential loan sales during the current quarter.
NONINTEREST EXPENSE
Noninterest expense for the quarter ended June 30, 2024 was
- Director and professional service fees increased
$362 thousand - Marketing and charitable contributions increased
$353 thousand $149 thousand $67 thousand $71 thousand - Data processing expenses increased
$330 thousand $198 thousand $52 thousand $45 thousand - Federal Deposit Insurance Corporation and state insurance assessments expense increased
$272 thousand 75.3% , to$633 thousand - Salaries and employee benefits were
$16.7 million $814 thousand 4.6% , from the prior quarter, primarily due to a decline in payroll taxes of$655 thousand $375 thousand $390 thousand $375 thousand $94 thousand
INCOME TAXES
Income tax expense for the quarter ended June 30, 2024 was
COMMERCIAL REAL ESTATE PORTFOLIO
Commercial real estate loans decreased
- Multi-family loans decreased
$53.6 million 16.7% , as a result of a significant loan payoff, along with fewer originations during the quarter. - Decreases noted above were partially offset by an increase in other commercial real estate loans of
$30.9 million 45.2% , during the quarter resulting from continued originations. - The Company's
$267.5 million Greater Boston area, primarily all of which are adjustable-rate loans. - The Company's
$199.1 million Greater Boston suburbs and mostly consists of Class A and B office space. The majority of these office loans are medical and lab space and do not consist of high-rise towers located inBoston .
ASSET QUALITY
- The allowance for credit losses was
$37.9 million 0.92% of total gross loans, compared to$34.3 million 0.87% of total loans at March 31, 2024. The Company recorded provisions for credit losses of$3.7 million $4.4 million $4.4 million $762 thousand - Non-performing loans totaled
$20.7 million $9.9 million 91.8% , from$10.8 million - During the quarter ended June 30, 2024, the Company recorded total net charge-offs of
$878 thousand 0.09% of average total loans on an annualized basis, compared to$1.8 million 0.19% on an annualized basis of average total loans in the prior quarter. The net charge-offs during the quarter ended June 30, 2024 were due to charge-offs of purchased consumer loans, primarily home improvement and solar loans. - 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 inMassachusetts , easternConnecticut , southernNew Hampshire andRhode 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
Non-GAAP Financial Measures
In addition to results presented in accordance with accounting principles generally accepted in
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 | ||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||
Earnings data | ||||||||
Net interest income | $ | 38,722 | $ | 38,633 | $ | 31,741 | ||
Noninterest income | 2,981 | 3,501 | 3,095 | |||||
Total revenue | 41,703 | 42,134 | 34,836 | |||||
Provision for credit losses | 3,667 | 4,429 | 4,044 | |||||
Noninterest expense | 26,214 | 25,565 | 22,337 | |||||
Pre-tax income | 11,822 | 12,140 | 8,455 | |||||
Net income | 9,453 | 8,701 | 6,225 | |||||
Net income excluding conversion and IPO-related expenses (non-GAAP) | 9,453 | 8,980 | 6,225 | |||||
Noninterest expense excluding conversion andIPO-related expenses | 26,214 | 25,175 | 22,337 | |||||
Per share data | ||||||||
Earnings per share | $ | 0.24 | $ | 0.22 | N/A | |||
Earnings per share excluding conversion and IPO-related expenses | 0.24 | 0.23 | N/A | |||||
Book value per share | 17.43 | 17.18 | N/A | |||||
Tangible book value per share (non-GAAP) | 17.41 | 17.16 | N/A | |||||
Profitability | ||||||||
Return on average assets | 0.81 % | 0.78 % | 0.65 % | |||||
Return on average assets excluding conversion and IPO-related expenses | 0.81 % | 0.80 % | 0.65 % | |||||
Return on average shareholders' equity | 5.13 % | 4.77 % | 7.01 % | |||||
Return on average shareholders' equity excluding conversion and IPO- | 5.13 % | 4.92 % | 7.01 % | |||||
Net interest margin | 3.45 % | 3.60 % | 3.48 % | |||||
Cost of deposits | 3.33 % | 3.17 % | 2.21 % | |||||
Efficiency ratio | 62.86 % | 60.68 % | 64.12 % | |||||
Efficiency ratio excluding conversion and IPO-related expenses | 62.86 % | 59.75 % | 64.12 % | |||||
Balance sheet, end of period | ||||||||
Total assets | $ | 4,805,401 | $ | 4,650,019 | $ | 4,028,617 | ||
Total loans | 4,097,278 | 3,954,623 | 3,521,513 | |||||
Total deposits | 3,917,905 | 3,772,053 | 3,261,671 | |||||
Total shareholders' equity | 744,462 | 733,838 | 356,973 | |||||
Asset quality | ||||||||
Allowance for credit losses (ACL) | $ | 37,857 | $ | 34,306 | $ | 31,473 | ||
ACL / Total non-performing loans (NPLs) | 182.6 % | 317.5 % | 235.6 % | |||||
Total NPLs / Total loans | 0.51 % | 0.27 % | 0.38 % | |||||
Net charge-offs (annualized) / Average total loans | (0.09) % | (0.19) % | (0.05) % | |||||
Capital ratios | ||||||||
Shareholders' equity / Total assets | 15.49 % | 15.78 % | 8.86 % | |||||
Tangible shareholders' equity / tangible assets (non-GAAP) | 15.47 % | 15.76 % | 8.83 % | |||||
NB BANCORP, INC | ||||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Dollars in thousands, except share and per share data) | ||||||||||||||||
As of | June 30, 2024 change from | |||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | March 31, 2024 | June 30, 2023 | ||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 170,255 | $ | 163,657 | $ | 81,861 | $ | 6,598 | 4.0 % | $ | 88,394 | 108.0 % | ||||
Federal funds sold | 158,687 | 151,374 | 31,659 | 7,313 | 4.8 % | 127,028 | 401.2 % | |||||||||
Total cash and cash equivalents | 328,942 | 315,031 | 113,520 | 13,911 | 4.4 % | 215,422 | 189.8 % | |||||||||
Available-for-sale securities, at fair value | 205,065 | 207,169 | 213,977 | (2,104) | (1.0) % | (8,912) | (4.2) % | |||||||||
Loans receivable | 4,097,278 | 3,954,623 | 3,521,513 | 142,655 | 3.6 % | 575,765 | 16.3 % | |||||||||
Allowance for credit losses | (37,857) | (34,306) | (31,473) | (3,551) | 10.4 % | (6,384) | 20.3 % | |||||||||
Net loans | 4,059,421 | 3,920,317 | 3,490,040 | 139,104 | 3.5 % | 569,381 | 16.3 % | |||||||||
Accrued interest receivable | 19,007 | 17,843 | 12,763 | 1,164 | 6.5 % | 6,244 | 48.9 % | |||||||||
Banking premises and equipment, net | 35,290 | 35,106 | 35,982 | 184 | 0.5 % | (692) | (1.9) % | |||||||||
Federal Home Loan Bank stock, at cost | 4,767 | 4,357 | 16,585 | 410 | 9.4 % | (11,818) | (71.3) % | |||||||||
Federal Reserve Bank stock, at cost | 11,333 | 10,319 | 9,435 | 1,014 | 9.8 % | 1,898 | 20.1 % | |||||||||
Non-public investments | 16,053 | 13,619 | 11,807 | 2,434 | 17.9 % | 4,246 | 36.0 % | |||||||||
Bank-owned life insurance ("BOLI") | 51,321 | 50,917 | 49,749 | 404 | 0.8 % | 1,572 | 3.2 % | |||||||||
Prepaid expenses and other assets | 55,330 | 56,289 | 62,502 | (959) | (1.7) % | (7,172) | (11.5) % | |||||||||
Deferred income tax asset | 18,872 | 19,052 | 12,257 | (180) | (0.9) % | 6,615 | 54.0 % | |||||||||
Total assets | $ | 4,805,401 | $ | 4,650,019 | $ | 4,028,617 | $ | 155,382 | 3.3 % | $ | 776,784 | 19.3 % | ||||
Liabilities and shareholders' equity | ||||||||||||||||
Deposits | $ | 3,917,905 | $ | 3,772,053 | $ | 3,261,671 | $ | 145,852 | 3.9 % | $ | 656,234 | 20.1 % | ||||
Mortgagors' escrow accounts | 4,022 | 4,300 | 3,741 | (278) | (6.5) % | 281 | 7.5 % | |||||||||
FHLB borrowings | 60,835 | 60,837 | 337,637 | (2) | 0.0 % | (276,802) | (82.0) % | |||||||||
Accrued expenses and other liabilities | 58,098 | 60,760 | 55,500 | (2,662) | (4.4) % | 2,598 | 4.7 % | |||||||||
Accrued retirement liabilities | 20,079 | 18,231 | 13,095 | 1,848 | 10.1 % | 6,984 | 53.3 % | |||||||||
Total liabilities | 4,060,939 | 3,916,181 | 3,671,644 | 144,758 | 3.7 % | 389,295 | 10.6 % | |||||||||
Commitments and contingencies | ||||||||||||||||
Shareholders' equity: | ||||||||||||||||
Preferred stock, | ||||||||||||||||
issued and outstanding | - | - | - | - | 0.0 % | - | 0.0 % | |||||||||
Common stock, | ||||||||||||||||
issued and outstanding at June 30 and March 31, 2024, respectively, no shares issued | ||||||||||||||||
and outstanding at June 30, 2023 | 427 | 427 | - | - | 0.0 % | 427 | 0.0 % | |||||||||
Additional paid-in capital | 416,845 | 416,812 | - | 33 | 0.0 % | 416,845 | 0.0 % | |||||||||
Unallocated ESOP common stock | (46,002) | (46,590) | - | 588 | (1.3) % | (46,002) | 0.0 % | |||||||||
Retained earnings | 384,328 | 374,874 | 371,325 | 9,454 | 2.5 % | 13,003 | 3.5 % | |||||||||
Accumulated other comprehensive loss | (11,136) | (11,685) | (14,352) | 549 | (4.7) % | 3,216 | (22.4) % | |||||||||
Total shareholders' equity | 744,462 | 733,838 | 356,973 | 10,624 | 1.4 % | 387,489 | 108.5 % | |||||||||
Total liabilities and shareholders' equity | $ | 4,805,401 | 4,650,019 | $ | 4,028,617 | $ | 155,382 | 3.3 % | $ | 776,784 | 19.3 % | |||||
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 June 30, 2024 Change | |||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | March 31, 2024 | June 30, 2023 | ||||||||||||
INTEREST AND DIVIDEND INCOME | ||||||||||||||||
Interest and fees on loans | $ | 65,271 | $ | 64,000 | $ | 50,040 | $ | 1,271 | 2.0 % | $ | 15,231 | 30.4 % | ||||
Interest and dividends on investment securities | 1,690 | 1,279 | 1,390 | 411 | 32.1 % | 300 | 21.6 % | |||||||||
Interest on cash equivalents and other | 4,161 | 2,914 | 818 | 1,247 | 42.8 % | 3,343 | 408.7 % | |||||||||
Total interest and dividend income | 71,122 | 68,193 | 52,248 | 2,929 | 4.3 % | 18,874 | 36.1 % | |||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest on deposits | 31,579 | 28,217 | 17,467 | 3,362 | 11.9 % | 14,112 | 80.8 % | |||||||||
Interest on borrowings | 821 | 1,343 | 3,040 | (522) | (38.9) % | (2,219) | (73.0) % | |||||||||
Total interest expense | 32,400 | 29,560 | 20,507 | 2,840 | 9.6 % | 11,893 | 58.0 % | |||||||||
NET INTEREST INCOME | 38,722 | 38,633 | 31,741 | 89 | 0.2 % | 6,981 | 22.0 % | |||||||||
PROVISION FOR CREDIT LOSSES | ||||||||||||||||
Provision for credit losses - loans | 4,429 | 3,890 | 3,958 | 539 | 13.9 % | 471 | 11.9 % | |||||||||
(Benefit) provision for credit losses - unfunded commitments | (762) | 539 | 86 | (1,301) | (241.4) % | (848) | (986.0) % | |||||||||
Total provision for credit losses | 3,667 | 4,429 | 4,044 | (762) | (17.2) % | (377) | (9.3) % | |||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 35,055 | 34,204 | 27,697 | 851 | 2.5 % | 7,358 | 26.6 % | |||||||||
NONINTEREST INCOME | ||||||||||||||||
Customer service fees | 1,872 | 1,880 | 1,573 | (8) | (0.4) % | 299 | 19.0 % | |||||||||
Increase in cash surrender value of BOLI | 404 | 401 | 372 | 3 | 0.7 % | 32 | 8.6 % | |||||||||
Mortgage banking income | 428 | 110 | 138 | 318 | 289.1 % | 290 | 210.1 % | |||||||||
Swap contract income | 265 | 487 | 1,001 | (222) | (45.6) % | (736) | (73.5) % | |||||||||
Other income | 12 | 623 | 11 | (611) | (98.1) % | 1 | 9.1 % | |||||||||
Total noninterest income | 2,981 | 3,501 | 3,095 | (520) | (14.9) % | (114) | (3.7) % | |||||||||
NONINTEREST EXPENSE | ||||||||||||||||
Salaries and employee benefits | 16,746 | 17,560 | 14,398 | (814) | (4.6) % | 2,348 | 16.3 % | |||||||||
Director and professional service fees | 2,270 | 1,908 | 1,712 | 362 | 19.0 % | 558 | 32.6 % | |||||||||
Occupancy and equipment expenses | 1,461 | 1,336 | 1,272 | 125 | 9.4 % | 189 | 14.9 % | |||||||||
Data processing expenses | 2,325 | 1,995 | 1,722 | 330 | 16.5 % | 603 | 35.0 % | |||||||||
Marketing and charitable contribution expenses | 1,095 | 742 | 864 | 353 | 47.6 % | 231 | 26.7 % | |||||||||
FDIC and state insurance assessments | 633 | 361 | 937 | 272 | 75.3 % | (304) | (32.4) % | |||||||||
General and administrative expenses | 1,684 | 1,663 | 1,432 | 21 | 1.3 % | 252 | 17.6 % | |||||||||
Total noninterest expense | 26,214 | 25,565 | 22,337 | 649 | 2.5 % | 3,877 | 17.4 % | |||||||||
INCOME BEFORE TAXES | 11,822 | 12,140 | 8,455 | (318) | (2.6) % | 3,367 | 39.8 % | |||||||||
INCOME TAXES | 2,369 | 3,439 | 2,230 | (1,070) | (31.1) % | 139 | 6.2 % | |||||||||
NET INCOME | $ | 9,453 | $ | 8,701 | $ | 6,225 | $ | 752 | 8.6 % | $ | 3,228 | 51.9 % | ||||
Weighted average common shares outstanding, basic | 39,289,271 | 39,689,644 | N/A | (400,373) | (1.0) % | N/A | N/A | |||||||||
Weighted average common shares outstanding, diluted | 39,289,271 | 39,689,644 | N/A | (400,373) | (1.0) % | N/A | N/A | |||||||||
Earnings per share, basic | $ | 0.24 | $ | 0.22 | $ | N/A | $ | 0.02 | 9.7 % | $ | N/A | N/A | ||||
Earnings per share, diluted | $ | 0.24 | $ | 0.22 | $ | N/A | $ | 0.02 | 9.7 % | $ | N/A | N/A | ||||
NB BANCORP, INC. | |||||||||||||||||||||||||
AVERAGE BALANCES, INTEREST EARNED/PAID & AVERAGE YIELDS | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 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 | $ | 3,987,452 | $ | 65,271 | 6.58 | % | $ | 3,903,044 | $ | 64,000 | 6.60 | % | $ | 3,347,553 | $ | 50,040 | 6.00 | % | |||||||
Securities | 204,336 | 1,690 | 3.33 | % | 193,296 | 1,279 | 2.66 | % | 236,826 | 1,390 | 2.35 | % | |||||||||||||
Other investments | 39,924 | 299 | 3.01 | % | 38,724 | 416 | 4.32 | % | 40,097 | 387 | 3.87 | % | |||||||||||||
Short-term investments | 279,559 | 3,862 | 5.56 | % | 175,616 | 2,498 | 5.72 | % | 34,951 | 431 | 4.95 | % | |||||||||||||
Total interest-earning assets | 4,511,271 | 71,122 | 6.34 | % | 4,310,680 | 68,193 | 6.36 | % | 3,659,427 | 52,248 | 5.73 | % | |||||||||||||
Non-interest-earning assets | 226,920 | 217,883 | 199,540 | ||||||||||||||||||||||
Allowance for credit losses | (34,735) | (32,744) | (29,070) | ||||||||||||||||||||||
Total assets | $ | 4,703,456 | $ | 4,495,819 | $ | 3,829,897 | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||
Savings accounts | $ | 117,701 | 15 | 0.05 | % | $ | 127,487 | 16 | 0.05 | % | $ | 141,315 | 18 | 0.05 | % | ||||||||||
NOW accounts | 328,192 | 204 | 0.25 | % | 320,392 | 136 | 0.17 | % | 368,886 | 148 | 0.16 | % | |||||||||||||
Money market accounts | 836,757 | 8,384 | 4.03 | % | 851,077 | 7,772 | 3.67 | % | 817,435 | 5,362 | 2.63 | % | |||||||||||||
Certificates of deposit and individual retirement accounts | 1,834,480 | 22,976 | 5.04 | % | 1,669,490 | 20,293 | 4.89 | % | 1,321,866 | 11,939 | 3.62 | % | |||||||||||||
Total interest-bearing deposits | 3,117,130 | 31,579 | 4.07 | % | 2,968,446 | 28,217 | 3.82 | % | 2,649,502 | 17,467 | 2.64 | % | |||||||||||||
FHLB advances | 61,968 | 821 | 5.33 | % | 98,886 | 1,343 | 5.46 | % | 232,109 | 3,040 | 5.25 | % | |||||||||||||
Total interest-bearing liabilities | 3,179,098 | 32,400 | 4.10 | % | 3,067,332 | 29,560 | 3.88 | % | 2,881,611 | 20,507 | 2.85 | % | |||||||||||||
Non-interest-bearing deposits | 694,669 | 611,305 | 529,948 | ||||||||||||||||||||||
Other non-interest-bearing liabilities | 88,364 | 83,487 | 62,072 | ||||||||||||||||||||||
Total liabilities | 3,962,131 | 3,762,124 | 3,473,631 | ||||||||||||||||||||||
Shareholders' equity | 741,325 | 733,695 | 356,266 | ||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,703,456 | $ | 4,495,819 | $ | 3,829,897 | |||||||||||||||||||
Net interest income | $ | 38,722 | $ | 38,633 | $ | 31,741 | |||||||||||||||||||
Net interest rate spread (1) | 2.24 | % | 2.48 | % | 2.88 | % | |||||||||||||||||||
Net interest-earning assets (2) | $ | 1,332,173 | $ | 1,243,348 | $ | 777,816 | |||||||||||||||||||
Net interest margin (3) | 3.45 | % | 3.60 | % | 3.48 | % | |||||||||||||||||||
Average interest-earning assets to interest-bearing liabilities | 141.90 | % | 140.54 | % | 126.99 | % | |||||||||||||||||||
(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 |
NB BANCORP, INC. | |||||||||||
COMMERCIAL REAL ESTATE BY COLLATERAL TYPE | |||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands) | |||||||||||
June 30, 2024 | |||||||||||
Owner-Occupied | Non-Owner- | Balance | Percentage | ||||||||
Industrial | $ | 359,496 | $ | 67,550 | $ | 427,046 | 29 % | ||||
Multi-Family | — | 267,544 | 267,544 | 18 % | |||||||
Office | 32,793 | 166,276 | 199,069 | 13 % | |||||||
Hospitality | 61 | 148,955 | 149,016 | 10 % | |||||||
Special Purpose | 85,455 | 59,909 | 145,364 | 10 % | |||||||
Retail | 29,675 | 102,562 | 132,237 | 9 % | |||||||
Other | 27,247 | 72,041 | 99,288 | 7 % | |||||||
Mixed-Use | 8,563 | 63,628 | 72,191 | 5 % | |||||||
Total commercial real estate | $ | 543,290 | $ | 948,465 | $ | 1,491,755 | 100 % | ||||
March 31, 2024 | Change From Three Months Ended June 30, 2024 | ||||||||||||||||||||||
Owner- | Non- | Balance | Percentage | Owner- | Non- | Balance | Percentage | ||||||||||||||||
Industrial | $ | 359,022 | $ | 70,178 | $ | 429,200 | 28 % | $ | 474 | $ | (2,628) | $ | (2,154) | (1) % | |||||||||
Multi-Family | — | 321,124 | 321,124 | 21 % | — | (53,580) | (53,580) | (17) % | |||||||||||||||
Office | 34,369 | 163,620 | 197,989 | 13 % | (1,576) | 2,656 | 1,080 | 1 % | |||||||||||||||
Hospitality | 63 | 148,244 | 148,307 | 10 % | (2) | 711 | 709 | 0 % | |||||||||||||||
Special Purpose | 85,235 | 59,950 | 145,185 | 10 % | 220 | (41) | 179 | 0 % | |||||||||||||||
Retail | 30,136 | 105,063 | 135,199 | 9 % | (461) | (2,501) | (2,962) | (2) % | |||||||||||||||
Other | 26,961 | 41,402 | 68,363 | 5 % | 286 | 30,639 | 30,925 | 45 % | |||||||||||||||
Mixed-Use | 8,611 | 62,536 | 71,147 | 5 % | (48) | 1,092 | 1,044 | 1 % | |||||||||||||||
Total commercial real estate | $ | 544,397 | $ | 972,117 | $ | 1,516,514 | 100 % | $ | (1,107) | $ | (23,652) | $ | (24,759) | (2) % | |||||||||
June 30, 2023 | Change From Three Months Ended June 30, 2024 | ||||||||||||||||||||||
Owner- | Non- | Balance | Percentage | Owner- | Non- | Balance | Percentage | ||||||||||||||||
Industrial | $ | 184,953 | $ | 69,973 | $ | 254,926 | 21 % | $ | 174,543 | $ | (2,423) | $ | 172,120 | 68 % | |||||||||
Multi-Family | — | 201,776 | 201,776 | 16 % | — | 65,768 | 65,768 | 33 % | |||||||||||||||
Office | 28,751 | 170,599 | 199,350 | 16 % | 4,042 | (4,323) | (281) | 0 % | |||||||||||||||
Hospitality | 38 | 162,451 | 162,489 | 13 % | 23 | (13,496) | (13,473) | (8) % | |||||||||||||||
Special Purpose | 74,939 | 75,617 | 150,556 | 12 % | 10,516 | (15,708) | (5,192) | (3) % | |||||||||||||||
Retail | 26,763 | 103,056 | 129,819 | 10 % | 2,912 | (494) | 2,418 | 2 % | |||||||||||||||
Other | 15,322 | 34,573 | 49,895 | 4 % | 11,925 | 37,468 | 49,393 | 99 % | |||||||||||||||
Mixed-Use | 8,911 | 85,487 | 94,398 | 8 % | (348) | (21,859) | (22,207) | (24) % | |||||||||||||||
Total commercial real estate | $ | 339,677 | $ | 903,532 | $ | 1,243,209 | 100 % | $ | 203,613 | $ | 44,933 | $ | 248,546 | 20 % | |||||||||
NB BANCORP, INC. | ||||||||
NON-GAAP RECONCILIATION | ||||||||
(Unaudited) | ||||||||
(Dollars in thousands) | ||||||||
For the Three Months Ended | ||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||
Net income (GAAP) | $ | 9,453 | $ | 8,701 | $ | 6,225 | ||
Add: | ||||||||
Noninterest expense components: | ||||||||
Defined benefit pension termination expense | $ | - | $ | 390 | $ | - | ||
Less net tax benefit associated with non-GAAP adjustments | - | 111 | - | |||||
Non-GAAP adjustments, net of tax | - | 279 | - | |||||
Net income excluding conversion and IPO-related expenses (non-GAAP) | $ | 9,453 | $ | 8,980 | $ | 6,225 | ||
Weighted average common shares outstanding | 39,289,271 | 39,689,644 | N/A | |||||
Earnings per share excluding conversion and IPO-related expenses (non-GAAP) | 0.24 | 0.23 | N/A | |||||
For the Three Months Ended | ||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||
Noninterest expense (GAAP) | $ | 26,214 | $ | 25,565 | $ | 22,337 | ||
Subtract: | ||||||||
Noninterest expense components: | ||||||||
Defined benefit pension termination expense | - | 390 | - | |||||
Total impact of non-GAAP noninterest expense adjustments | $ | - | $ | 390 | $ | - | ||
Noninterest expense excluding conversion and IPO-related expenses (non-GAAP) | $ | 26,214 | $ | 25,175 | $ | 22,337 | ||
For the Three Months Ended | ||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||
Net income excluding conversion and IPO-related expenses (non-GAAP) | $ | 9,453 | $ | 8,980 | $ | 6,225 | ||
Average assets | 4,703,456 | 4,495,819 | 3,829,897 | |||||
Return on average assets excluding conversion and IPO-related expenses (non-GAAP) | 0.81 % | 0.80 % | 0.65 % | |||||
Average shareholders' equity | 741,325 | 733,695 | 356,266 | |||||
Return on average shareholders' equity excluding conversion and IPO-related | ||||||||
expenses (non-GAAP) | 5.13 % | 4.92 % | 7.01 % | |||||
As of | ||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||
Total shareholders' equity (GAAP) | $ | 744,462 | $ | 733,838 | $ | 356,973 | ||
Subtract: | ||||||||
Intangible assets (core deposit intangible) | 1,153 | 1,191 | 1,302 | |||||
Total tangible shareholders' equity (non-GAAP) | 743,309 | 732,647 | 355,671 | |||||
Total assets (GAAP) | 4,805,401 | 4,650,019 | 4,028,617 | |||||
Subtract: | ||||||||
Intangible assets (core deposit intangible) | 1,153 | 1,191 | 1,302 | |||||
Total tangible assets (non-GAAP) | $ | 4,804,248 | $ | 4,648,828 | $ | 4,027,315 | ||
Tangible shareholders' equity / tangible assets (non-GAAP) | 15.47 % | 15.76 % | 8.83 % | |||||
Total common shares outstanding | 42,705,729 | 42,705,729 | N/A | |||||
Tangible book value per share (non-GAAP) | $ | 17.41 | $ | 17.16 | $ | N/A | ||
For the Three Months Ended | ||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||
Noninterest expense excluding conversion and IPO-related expenses (non-GAAP) | $ | 26,214 | $ | 25,175 | $ | 22,337 | ||
Total revenue (net interest income plus total noninterest income) | 41,703 | 42,134 | 34,836 | |||||
Efficiency ratio excluding conversion and IPO-related expenses (non-GAAP) | 62.86 % | 59.75 % | 64.12 % | |||||
NB BANCORP, INC. | |||||||||
ASSET QUALITY – NON-PERFORMING ASSETS (1) | |||||||||
(Unaudited) | |||||||||
(Dollars in thousands) | |||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||
Real estate loans: | |||||||||
One to four-family residential | $ | 4,251 | $ | 4,281 | $ | 5,155 | |||
Home equity | 636 | 586 | 570 | ||||||
Commercial real estate | 7,056 | 422 | 670 | ||||||
Construction and land development | 2,237 | 10 | 10 | ||||||
Commercial and industrial | 4,575 | 4,125 | 5,304 | ||||||
Consumer | 1,974 | 1,382 | 1,648 | ||||||
Total | $ | 20,729 | $ | 10,806 | $ | 13,357 | |||
Total non-performing loans to total loans | 0.51 % | 0.27 % | 0.38 % | ||||||
Total non-performing assets to total assets | 0.43 % | 0.23 % | 0.33 % | ||||||
(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 | ||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||
Allowance for credit losses at beginning of the period | $ | 34,306 | $ | 32,222 | $ | 27,931 | ||
Provision for credit losses | 4,429 | 3,890 | 3,958 | |||||
Charge-offs: | ||||||||
Commercial and Industrial | — | 369 | — | |||||
Consumer | 945 | 1,573 | 633 | |||||
Total charge-offs | 945 | 1,942 | 633 | |||||
Recoveries of loans previously charged off: | ||||||||
Commercial and Industrial | 12 | 36 | 12 | |||||
Consumer | 55 | 100 | 205 | |||||
Total recoveries | 67 | 136 | 217 | |||||
Net (charge-offs) recoveries | (878) | (1,806) | (416) | |||||
Allowance for credit losses at end of the period | $ | 37,857 | $ | 34,306 | $ | 31,473 | ||
Allowance to non-performing loans | 183 % | 317 % | 236 % | |||||
Allowance to total loans outstanding at the end of the period | 0.92 % | 0.87 % | 0.89 % | |||||
Net (charge-offs) recoveries (annualized) to average loans outstanding during the period | (0.09) % | (0.19) % | (0.05) % | |||||
View original content:https://www.prnewswire.com/news-releases/nb-bancorp-inc-reports-second-quarter-2024-financial-results-302206072.html
SOURCE Needham Bank
FAQ
What was NB Bancorp's (NBBK) net income for Q2 2024?
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How did NB Bancorp's (NBBK) net interest margin change in Q2 2024?
What was NB Bancorp's (NBBK) allowance for credit losses as of June 30, 2024?
