NB Bancorp, Inc. Reports First Quarter 2024 Financial Results
NEEDHAM, Mass., April 24, 2024 /PRNewswire/ — Bancorp, Inc. (the “Company”) (Nasdaq Capital Market: NBBK), the holding company of Needham Bank, today announced its first quarter 2024 financial results.
SELECTED FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER OF 2024
Net income of $8.7 million, or $0.22 per diluted share, compared to net loss of $13.6 million, or $0.32 loss per diluted share, for the prior quarter.Gross loans increased $65.3 million, or 1.7%, to $3.95 billion, from the prior quarter.The net interest margin on a fully-tax equivalent basis increased 21 basis points to 3.60%.Asset quality remains strong:Annualized net charge-offs of 0.19% of average total loans and non-performing loans of $11.1 million, or 0.28% of total loans. All of the charge-offs in the quarter were in the purchased consumer loan portfolio.Provision for the allowance for credit losses was $4.4 million, down from $5.9 million in the prior quarter and contributing to an increase in the ACL of $2.1 million.Total deposits increased $384.7 million or 11.4% from the prior quarter, to $3.77 billion. Core deposits, which exclude brokered deposits, increased $268.3 million or 8.4% from the prior quarter.Borrowings and brokered deposits totaled 7.8% of total assets, compared to 10.3% in the prior quarter.Strong capital position with 15.8% shareholders equity to total assets and 15.8% tangible shareholders’ equity to tangible assets.Book value and tangible book value per share were $17.18 and $17.16, respectively.
“This was our first full quarter as a public company reporting our continued success in executing our long-term strategy, which includes growing core deposits and being prudent and patient in our deployment of capital. In today’s environment, capital and liquidity are king. I’m happy to note we are well positioned on both fronts,” said Joseph Campanelli, Chairman, President and Chief Executive Officer. “The Company is poised to continue to grow market share and remain disciplined in our capital management.”
BALANCE SHEET
Total assets were $4.65 billion as of March 31, 2024, representing an increase of $116.6 million, or 2.6%, from December 31, 2023.
Cash and cash equivalents increased to $315.0 million from $272.6 million, a $42.4 million, or 15.6%, increase from the prior quarter as a result of deposit growth outpacing loan and investment growth.Available-for-sale securities increased $17.7 million, or 9.3%, from the prior quarter, to $207.2 million, due to purchases of U.S. treasuries and government agency securities during the quarter.Net loans increased to $3.92 billion, representing an increase of $63.3 million, or 1.6%, from the prior quarter as demand for new originations continued. The main driver of the new growth was in commercial real estate loans, which increased $136.7 million, or 9.9%, partially offset by a decline in construction and land development loans of $87.4 million or 14.0%, as $111.0 million of construction loans converted to multi-family loans during the quarter.Deposits totaled $3.77 billion representing an increase of $384.7 million, or 11.4%, from the prior quarter. The increase in deposits was the result of growth in customer deposits, primarily certificates of deposit, which increased $150.2 million, or 11.4% from the prior quarter, along with money market accounts and noninterest-bearing demand deposit accounts, which increased by $76.3 million, or 8.6%, and $51.3 million, or 9.7%, respectively from the prior quarter. Additionally, brokered deposits increased $116.4 million, or 63.4%, from the prior quarter, as a result of lower rates versus alternative funding sources.Federal Home Loan Bank of Boston (“FHLB”) advances totaled $60.8 million representing a decrease of $222.5 million, or 78.5%, from the prior quarter. The decrease in FHLB advances was the result of growth in brokered deposits due to lower rates and overall deposit growth.Shareholders’ equity was $733.8 million, representing a decrease of $24.1 million, or 3.2%, from the prior quarter. The primary driver for the decrease was a $32.8 million increase in the unallocated shares held by the Employee Stock Ownership Plan (“ESOP”) from the final purchases for the funding of the ESOP, partially offset by an $8.7 million increase in retained earnings from net income during the quarter.
NET INTEREST INCOME
Net interest income was $38.6 million for the quarter ended March 31, 2024, compared to $35.3 million for the prior quarter, representing an increase of $3.4 million, or 9.5%.
The increase in net interest income was primarily driven by an increase in net interest margin of 21 basis points, from 3.60% during the quarter ended March 31, 2024 compared to 3.39% during the prior quarter.The increase in interest income during the quarter ended March 31, 2024 was attributable to increases from both volume and rates, which contributed $2.7 million and $1.2 million, respectively.The increase in interest expense for the quarter ended March 31, 2024 was primarily driven by increases in rates on interest-bearing deposits, which increased interest expense by $1.5 million, along with increases in volume on interest-bearing deposits, which increased interest expense by $845 thousand.
NONINTEREST INCOME
Noninterest income was $3.5 million for the quarter ended March 31, 2024, compared to $3.3 million for the prior quarter, representing an increase of $249 thousand, or 7.7%.
Other income was $623 thousand, compared to $18 thousand in the prior quarter, representing an increase of $605 thousand, or 3,361.1%, due to a one-time debit card brand signing bonus.Swap contract income was $487 thousand, compared to $95 thousand in the prior quarter, representing an increase of $392 thousand, or 412.6%, due to increased swap contract originations.Customer service fees decreased $753 thousand, or 28.6%, from the prior quarter, primarily driven by lower one-way deposit fee income from initial public offering (“IPO”) funds that had been swept off-balance sheet.
NONINTEREST EXPENSE
Noninterest expense for the quarter ended March 31, 2024 was $25.6 million, representing a decrease of $27.2 million, or 51.6%, from the prior quarter. This is directly attributable to one-time costs associated with the Company’s mutual-to-stock conversion and IPO during the quarter ended December 31, 2023.
Charitable contributions expense decreased $19.4 million for the quarter ended March 31, 2024 as a result of $19.1 million of expense during the prior quarter resulting from the contribution to the Needham Bank Charitable Foundation in connection with the Company’s mutual-to-stock conversion and IPO.Salaries and benefits were $17.6 million for the quarter ended March 31, 2024, representing a decrease of $6.8 million, or 27.8%, from the prior quarter, primarily due to a $7.9 million decrease in discretionary employee and a $1.5 million decrease in pension expense as a result of the termination of the Company’s defined benefit pension plan during the prior quarter; partially offset by increased salaries expense of $950 thousand, mostly due to increased headcount, increased FICA tax expenses of $620 thousand, due to the reset of taxes at the beginning of the year along with taxes associated with the bonus payout, and increased ESOP compensation costs of $588 thousand from the ESOP implementation.Federal Deposit Insurance Corporation and state insurance assessments expense decreased by $1.5 million, or 80.6%, to $361 thousand, as a result of improved capital ratios as a result of the mutual-to-stock conversion and IPO.
INCOME TAXES
Income tax expense for the quarter ended March 31, 2024 was $3.4 million, representing a $10.0 million increase, or 152.6%, from the prior quarter. The increase was primarily driven by the net loss in the prior quarter and no investment tax credits earned during the current quarter. The effective tax rate for the current quarter was 28.3%, compared to (32.5%) in the prior quarter due to income tax credits received in the prior quarter, whereas none were received in the current quarter.
COMMERCIAL REAL ESTATE PORTFOLIO
Commercial real estate loans increased $136.7 million, or 9.9%, to $1.52 billion, during the quarter ended March 31, 2024.
Multi-family loans increased $111.1 million or 52.9%, as a result of movement from construction and land development loans, along with originations during the quarter.Other and mixed use commercial real estate loans increased $35.8 million and $12.6 million, respectively, during the quarter resulting from continued originations.Increases noted above were partially offset by a decrease in commercial real estate office loans of $23.5 million, or 10.5%, during the quarter as a result of paydowns on outstanding loans.The Company’s $321.1 million multifamily 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 $200.1 million office portfolio is predominantly located in the Greater Boston suburbs and mostly consists of Class A and B office space. The typical use of these office loans are medical and lab space and do not consist of high-rise towers located in Boston.
ASSET QUALITY
The allowance for credit losses was $34.3 million as of March 31, 2024, or 0.87% of total gross loans, compared to $32.2 million, or 0.83% of total loans at December 31, 2023. The Company recorded provisions for credit losses of $4.4 million during the quarter ended March 31, 2024, compared to $5.9 million for the prior quarter, which included $539 thousand and $4.2 million in provision for unfunded commitments and loans, respectively.Non-performing loans totaled $11.1 million as of March 31, 2024, an increase of $265 thousand, or 2.45%, from $10.8 million at the end of the prior quarter.During the quarter ended March 31, 2024, the Company recorded total net charge-offs of $1.8 million, or 0.19% of average total loans on an annualized basis, compared to $1.3 million, or 0.14% on an annualized basis of average total loans in the prior quarter. The increase in total net charge-offs during the quarter ended March 31, 2024 was primarily 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 multifamily 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 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 net income excluding conversion and IPO-related expenses, noninterest expense excluding conversion and IPO-related expenses, earnings per share excluding conversion and IPO-related expenses, return on average assets excluding conversion and IPO-related expenses, return on average shareholders’ equity excluding conversion and IPO-related expenses, efficiency ratio excluding conversion and IPO-related expenses, 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.
NB BANCORP, INC.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
As of and for the three months ended
March 31, 2024
December 31, 2023
March 31, 2023
Earnings data
Net interest income
$
38,633
$
35,278
$
31,218
Noninterest income
3,501
3,252
5,867
Total revenue
42,134
38,530
37,085
Provision for credit losses
4,429
5,901
2,072
Noninterest expense
25,564
52,788
23,032
Pre-tax income (loss)
12,141
(20,159)
11,981
Net income (loss)
8,702
(13,617)
8,752
Net income excluding conversion and IPO-related expenses (non-GAAP)
8,981
10,880
8,752
Noninterest expense excluding conversion and IPO-related expenses
(non-GAAP)
25,174
23,875
23,032
Per share data
Earnings (loss) per share
$
0.22
$
(0.32)
N/A
Earnings per share excluding conversion and IPO-related expenses
(non-GAAP)
0.23
0.26
N/A
Book value per share
17.18
17.75
N/A
Tangible book value per share (non-GAAP)
17.16
17.72
N/A
Profitability
Return (loss) on average assets
0.78 %
(1.25) %
0.99 %
Return on average assets excluding conversion and IPO-related expenses
(non-GAAP)
0.80 %
1.00 %
0.99 %
Return (loss) on average shareholders’ equity
4.77 %
(13.75) %
10.22 %
Return on average shareholders’ equity excluding conversion and IPO-
related expenses (non-GAAP)
4.92 %
10.99 %
10.22 %
Net interest margin
3.60 %
3.39 %
3.70 %
Cost of deposits
3.82 %
3.56 %
1.99 %
Efficiency ratio
60.67 %
137.00 %
62.11 %
Efficiency ratio excluding conversion and IPO-related expenses
(non-GAAP)
59.75 %
61.96 %
62.11 %
Balance sheet, end of period
Total assets
$
4,650,019
$
4,533,412
$
3,713,901
Total loans
3,954,623
3,889,279
3,214,008
Total deposits
3,772,053
3,387,348
3,140,839
Total shareholders’ equity
733,838
757,959
351,785
Asset quality
Allowance for credit losses (ACL)
$
34,306
$
32,222
$
27,931
ACL / Total nonperforming loans (NPLs)
310.1 %
298.4 %
213.5 %
Total NPLs / Total loans
0.28 %
0.28 %
0.41 %
Net charge-offs (annualized) / Average total loans
(0.19) %
(0.14) %
(0.04) %
Capital ratios
Shareholders’ equity / Total assets
15.78 %
16.72 %
9.47 %
Tangible shareholders’ equity / tangible assets (non-GAAP)
15.76 %
16.70 %
9.44 %
NB BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
As of
March 31, 2024 change from
March 31, 2024
December 31, 2023
March 31, 2023
December 31, 2023
March 31, 2023
Assets
Cash and due from banks
$
163,657
$
90,485
$
91,216
$
73,172
80.9 %
$
72,441
79.4 %
Federal funds sold
151,374
182,106
655
(30,732)
(16.9) %
150,719
23010.5 %
Total cash and cash equivalents
315,031
272,591
91,871
42,440
15.6 %
223,160
242.9 %
Available-for-sale securities, at fair value
207,169
189,465
244,917
17,704
9.3 %
(37,748)
(15.4) %
Loans receivable
3,954,623
3,889,279
3,214,008
65,344
1.7 %
740,615
23.0 %
Allowance for credit losses
(34,306)
(32,222)
(27,931)
(2,084)
6.5 %
(6,375)
22.8 %
Net loans
3,920,317
3,857,057
3,186,077
63,260
1.6 %
734,240
23.0 %
Accrued interest receivable
17,843
17,284
11,657
559
3.2 %
6,186
53.1 %
Banking premises and equipment, net
35,106
35,531
36,043
(425)
(1.2) %
(937)
(2.6) %
Federal Home Loan Bank stock, at cost
4,357
14,558
7,862
(10,201)
(70.1) %
(3,505)
(44.6) %
Federal Reserve Bank stock, at cost
10,319
10,323
8,673
(4)
0.0 %
1,646
19.0 %
Non-public investments
13,619
13,852
10,313
(233)
(1.7) %
3,306
32.1 %
Bank-owned life insurance (“BOLI”)
50,917
50,516
49,377
401
0.8 %
1,540
3.1 %
Prepaid expenses and other assets
56,289
53,109
55,239
3,180
6.0 %
1,050
1.9 %
Deferred income tax asset
19,052
19,126
11,872
(74)
(0.4) %
7,180
60.5 %
Total assets
$
4,650,019
$
4,533,412
$
3,713,901
$
116,607
2.6 %
$
936,118
25.2 %
Liabilities and shareholders’ equity
Deposits
$
3,772,053
$
3,387,348
$
3,140,839
$
384,705
11.4 %
$
631,214
20.1 %
Mortgagors’ escrow accounts
4,300
4,229
3,867
71
1.7 %
433
11.2 %
FHLB borrowings
60,837
283,338
160,079
(222,501)
(78.5) %
(99,242)
(62.0) %
Accrued expenses and other liabilities
60,760
81,325
45,623
(20,565)
(25.3) %
15,137
33.2 %
Accrued retirement liabilities
18,231
19,213
11,708
(982)
(5.1) %
6,523
55.7 %
Total liabilities
3,916,181
3,775,453
3,362,116
140,728
3.7 %
554,065
16.5 %
Commitments and contingencies
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 March 31, 2024 and December 31, 2023,
respectively, no shares issued and outstanding at March 31, 2023
427
427
–
–
0.0 %
427
0.0 %
Additional paid-in capital
416,812
417,030
–
(218)
(0.1) %
416,812
0.0 %
Unallocated ESOP common stock
(46,590)
(13,774)
–
(32,816)
238.2 %
(46,590)
0.0 %
Retained earnings
374,874
366,173
365,099
8,701
2.4 %
9,775
2.7 %
Accumulated other comprehensive loss
(11,685)
(11,897)
(13,314)
212
(1.8) %
1,629
(12.2) %
Total shareholders’ equity
733,838
757,959
351,785
(24,121)
(3.2) %
382,053
108.6 %
Total liabilities and shareholders’ equity
$
4,650,019
4,533,412
$
3,713,901
$
116,607
2.6 %
$
936,118
25.2 %
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, 2024 Change
From Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
December 31, 2023
March 31, 2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans
$
64,000
$
61,696
$
43,760
$
2,304
3.7 %
$
20,240
46.3 %
Interest and dividends on investment securities
1,279
1,161
1,117
118
10.2 %
162
14.5 %
Interest on cash equivalents and other
2,914
1,445
1,140
1,469
101.7 %
1,774
155.6 %
Total interest and dividend income
68,193
64,302
46,017
3,891
6.1 %
22,176
48.2 %
INTEREST EXPENSE
Interest on deposits
28,217
25,845
12,293
2,372
9.2 %
15,924
129.5 %
Interest on borrowings
1,343
3,179
2,506
(1,836)
(57.8) %
(1,163)
(46.4) %
Total interest expense
29,560
29,024
14,799
536
1.8 %
14,761
99.7 %
NET INTEREST INCOME
38,633
35,278
31,218
3,355
9.5 %
7,415
23.8 %
PROVISION FOR CREDIT LOSSES
Provision for credit losses – loans
3,890
1,662
2,072
2,228
134.1 %
1,818
87.7 %
Provision for credit losses – unfunded commitments
539
4,239
–
(3,700)
(87.3) %
539
0.0 %
Total provision for credit losses
4,429
5,901
2,072
(1,472)
(24.9) %
2,357
113.8 %
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
34,204
29,377
29,146
4,827
16.4 %
5,058
17.4 %
NONINTEREST INCOME
Customer service fees
1,880
2,633
1,696
(753)
(28.6) %
184
10.8 %
Increase in cash surrender value of BOLI
401
394
371
7
1.8 %
30
8.1 %
Mortgage banking income
110
112
230
(2)
(1.8) %
(120)
(52.2) %
Swap contract income
487
95
107
392
412.6 %
380
355.1 %
Employee retention credit income
–
–
3,452
–
0.0 %
(3,452)
(100.0) %
Other income
623
18
11
605
3361.1 %
612
5563.6 %
Total noninterest income
3,501
3,252
5,867
249
7.7 %
(2,366)
(40.3) %
NONINTEREST EXPENSE
Salaries and employee benefits
17,560
24,311
14,977
(6,751)
(27.8) %
2,583
17.2 %
Director and professional service fees
1,908
1,247
1,664
661
53.0 %
244
14.7 %
Occupancy and equipment expenses
1,336
1,266
1,375
70
5.5 %
(39)
(2.8) %
Data processing expenses
1,995
2,044
1,717
(49)
(2.4) %
278
16.2 %
Marketing and charitable contribution expenses
742
20,110
1,190
(19,368)
(96.3) %
(448)
(37.6) %
FDIC and state insurance assessments
361
1,863
692
(1,502)
(80.6) %
(331)
(47.8) %
General and administrative expenses
1,662
1,947
1,417
(285)
(14.6) %
245
17.3 %
Total noninterest expense
25,564
52,788
23,032
(27,224)
(51.6) %
2,532
11.0 %
INCOME (LOSS) BEFORE TAXES
12,141
(20,159)
11,981
32,300
(160.2) %
160
1.3 %
INCOME TAXES
3,439
(6,542)
3,229
9,981
(152.6) %
210
6.5 %
NET INCOME (LOSS)
$
8,702
$
(13,617)
$
8,752
$
22,319
(163.9) %
$
(50)
(0.6) %
Weighted average common shares outstanding, basic
39,689,644
42,018,229
N/A
(2,328,585)
(5.5) %
N/A
N/A
Weighted average common shares outstanding, diluted
39,689,644
42,018,229
N/A
(2,328,585)
(5.5) %
N/A
N/A
Earnings (loss) per share, basic
$
0.22
$
(0.32)
$
N/A
$
0.54
(167.7) %
$
N/A
N/A
Earnings (loss) per share, diluted
$
0.22
$
(0.32)
$
N/A
$
0.54
(167.7) %
$
N/A
N/A
NB BANCORP, INC.
AVERAGE BALANCES, INTEREST EARNED/PAID & AVERAGE YIELDS
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Average
Average
Average
Outstanding
Average
Outstanding
Average
Outstanding
Average
Balance
Interest
Yield/Rate (5)
Balance
Interest
Yield/Rate (1)
Balance
Interest
Yield/Rate (5)
Interest-earning assets:
Loans
$
3,903,044
$
64,000
6.60
%
$
3,784,363
$
61,696
6.47
%
$
3,093,708
$
43,760
5.74
%
Securities
193,296
1,279
2.66
%
194,024
1,161
2.37
%
235,243
1,117
1.93
%
Other investments
38,724
416
4.32
%
42,101
430
4.05
%
37,905
537
5.75
%
Short-term investments
175,616
2,498
5.72
%
111,067
1,015
3.63
%
57,678
603
4.24
%
Total interest-earning assets
4,310,680
68,193
6.36
%
4,131,555
64,302
6.17
%
3,424,534
46,017
5.45
%
Non-interest-earning assets
217,883
224,969
197,450
Allowance for credit losses
(32,744)
(32,638)
(26,302)
Total assets
$
4,495,819
$
4,323,886
$
3,595,682
Interest-bearing liabilities:
Savings accounts
$
127,487
16
0.05
%
$
135,629
17
0.05
%
$
159,087
20
0.05
%
NOW accounts
320,392
4,413
5.54
%
330,830
3,981
4.77
%
368,795
668
0.73
%
Money market accounts
851,077
3,495
1.65
%
829,353
3,092
1.48
%
654,043
1,933
1.20
%
Certificates of deposit and individual retirement accounts
1,669,490
20,293
4.89
%
1,580,538
18,755
4.71
%
1,322,760
9,672
2.97
%
Total interest-bearing deposits
2,968,446
28,217
3.82
%
2,876,350
25,845
3.56
%
2,504,685
12,293
1.99
%
FHLB advances
98,886
1,343
5.46
%
220,475
3,179
5.72
%
200,194
2,506
5.08
%
Total interest-bearing liabilities
3,067,332
29,560
3.88
%
3,096,825
29,024
3.72
%
2,704,879
14,799
2.22
%
Non-interest-bearing deposits
611,305
729,928
478,910
Other non-interest-bearing liabilities
83,487
104,211
64,551
Total liabilities
3,762,124
3,930,964
3,248,340
Shareholders’ equity
733,695
392,922
347,342
Total liabilities and shareholders’ equity
$
4,495,819
$
4,323,886
$
3,595,682
Net interest income
$
38,633
$
35,278
$
31,218
Net interest rate spread (2)
2.48
%
2.45
%
3.23
%
Net interest-earning assets (3)
$
1,243,348
$
1,034,730
$
719,655
Net interest margin (4)
3.60
%
3.39
%
3.70
%
Average interest-earning assets to interest-bearing liabilities
140.54
%
133.41
%
126.61
%
(2) 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.
(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average total interest-earning assets.
(5) Annualized
NB BANCORP, INC.
COMMERCIAL REAL ESTATE BY COLLATERAL TYPE
(Unaudited)
(Dollars in thousands)
March 31, 2024
Owner-
Occupied
Non-
Owner-
Occupied
Balance
Percentage
Industrial
$
210,700
$
71,950
$
282,650
19 %
Office
44,288
155,836
200,124
13 %
Multi-Family
—
321,124
321,124
21 %
Retail
86,096
105,264
191,360
13 %
Special Purpose
120,242
59,950
180,192
12 %
Hospitality
63
148,244
148,307
10 %
Other
72,489
41,402
113,891
8 %
Mixed-Use
10,518
68,348
78,866
5 %
Total commercial real estate
$
544,396
$
972,118
$
1,516,514
100 %
December 31, 2023
Change From Three Months Ended March 31, 2024
Owner-
Occupied
Non-
Owner-
Occupied
Balance
Percentage
Owner-
Occupied
Non-
Owner-
Occupied
Balance
Percentage
Industrial
$
212,246
$
72,288
$
284,534
21 %
$
(1,546)
$
(338)
$
(1,884)
(1) %
Office
39,330
184,246
223,576
16 %
4,958
(28,410)
(23,452)
(10) %
Multi-Family
—
209,982
209,982
15 %
—
111,142
111,142
53 %
Retail
84,269
104,596
188,865
14 %
1,827
668
2,495
1 %
Special Purpose
119,073
59,876
178,949
13 %
1,169
74
1,243
1 %
Hospitality
1,217
148,278
149,495
11 %
(1,154)
(34)
(1,188)
(1) %
Other
58,548
19,580
78,128
6 %
13,941
21,822
35,763
46 %
Mixed-Use
8,974
57,338
66,312
5 %
1,544
11,010
12,554
19 %
Total commercial real estate
$
523,657
$
856,184
$
1,379,841
100 %
$
20,739
$
115,934
$
136,673
10 %
March 31, 2023
Change From Three Months Ended March 31, 2024
Owner-
Occupied
Non-
Owner-
Occupied
Balance
Percentage
Owner-
Occupied
Non-
Owner-
Occupied
Balance
Percentage
Industrial
$
64,473
$
51,383
$
115,856
11 %
$
146,227
$
20,567
$
166,794
144 %
Office
34,751
128,486
163,237
15 %
9,537
27,350
36,887
23 %
Multi-Family
—
199,755
199,755
18 %
—
121,369
121,369
61 %
Retail
32,638
103,167
135,805
12 %
53,458
2,097
55,555
41 %
Special Purpose
57,079
51,162
108,241
10 %
63,163
8,788
71,951
66 %
Hospitality
1,239
108,333
109,572
10 %
(1,176)
39,911
38,735
35 %
Other
62,175
104,402
166,577
15 %
10,314
(63,000)
(52,686)
(32) %
Mixed-Use
13,419
77,747
91,166
8 %
(2,901)
(9,399)
(12,300)
(13) %
Total commercial real estate
$
265,774
$
824,435
$
1,090,209
100 %
$
278,622
$
147,683
$
426,305
39 %
NB BANCORP, INC.
NON-GAAP RECONCILIATION
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Net income (GAAP)
$
8,702
$
(13,617)
$
8,752
Add:
Noninterest expense components:
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
390
1,900
–
Permanent tax differences resulting from public company tax laws (1)
–
3,680
–
Total impact of non-GAAP adjustment
$
390
$
32,593
$
–
Less net tax benefit associated with non-GAAP adjustments
111
8,096
–
Non-GAAP adjustments, net of tax
279
24,497
–
Net income excluding conversion and IPO-related expenses (non-GAAP)
$
8,981
$
10,880
$
8,752
Weighted average common shares outstanding
39,689,644
42,018,229
N/A
Earnings per share excluding conversion and IPO-related expenses (non-GAAP)
0.23
0.26
N/A
(1) These amounts are reflected in income tax expense and reflect amounts related to 2023
compensation and a writedown for future LTIP vesting amounts that are not expected to be deductible
on a tax return. These amounts are not included in the calculation of the tax impact on the non-GAAP adjustments.
For the Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Noninterest expense (GAAP)
$
25,564
$
52,788
$
23,032
Subtract:
Noninterest expense components:
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
390
1,900
–
Total impact of non-GAAP noninterest expense adjustments
$
390
$
28,913
$
–
Noninterest expense excluding conversion and IPO-related expenses (non-GAAP)
$
25,174
$
23,875
$
23,032
For the Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Net income excluding conversion and IPO-related expenses (non-GAAP)
$
8,981
$
10,880
$
8,752
Average assets
4,495,819
4,323,886
3,595,682
Return on average assets excluding conversion and IPO-related expenses (non-GAAP)
0.80 %
1.00 %
0.99 %
Average shareholders’ equity
733,695
392,922
347,342
Return on average shareholders’ equity excluding conversion and IPO-related
expenses (non-GAAP)
4.92 %
10.99 %
10.22 %
As of
March 31, 2024
December 31, 2023
March 31, 2023
Total shareholders’ equity (GAAP)
$
733,838
$
757,959
$
351,785
Subtract:
Intangible assets (core deposit intangible)
1,191
1,227
1,340
Total tangible shareholders’ equity (non-GAAP)
732,647
756,732
350,445
Total assets (GAAP)
4,650,019
4,533,412
3,713,901
Subtract:
Intangible assets (core deposit intangible)
1,191
1,227
1,340
Total tangible assets (non-GAAP)
$
4,648,828
$
4,532,185
$
3,712,561
Tangible shareholders’ equity / tangible assets (non-GAAP)
15.76 %
16.70 %
9.44 %
Total common shares outstanding
42,705,729
42,705,729
N/A
Tangible book value per share (non-GAAP)
$
17.16
$
17.72
$
N/A
For the Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Noninterest expense excluding conversion and IPO-related expenses (non-GAAP)
$
25,174
$
23,875
$
23,032
Total revenue
42,134
38,530
37,085
Efficiency ratio excluding conversion and IPO-related expenses (non-GAAP)
59.75 %
61.96 %
62.11 %
NB BANCORP, INC.
ASSET QUALITY – NON-PERFORMING ASSETS
(Unaudited)
(Dollars in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
Real estate loans:
One to four-family residential
$
4,281
$
4,100
$
5,748
Home equity
586
590
570
Commercial real estate
422
422
670
Construction and land development
10
10
10
Commercial and industrial
4,125
4,138
5,077
Consumer
1,640
1,539
1,010
Total
$
11,064
$
10,799
$
13,085
Total non-performing loans to total loans
0.28 %
0.28 %
0.41 %
Total non-performing assets to total assets
0.24 %
0.24 %
0.35 %
NB BANCORP, INC.
ASSET QUALITY – PROVISION, ALLOWANCE, AND NET (CHARGE-OFFS) RECOVERIES
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Allowance for credit losses at beginning of the period
$
32,222
$
31,889
$
25,028
Adjustment to allowance for adoption of ASU 2016-13
—
—
1,159
Provision for credit losses
3,890
1,662
2,072
Charge-offs:
Consumer
1,942
1,519
637
Total charge-offs
1,942
1,519
637
Recoveries of loans previously charged off:
Commercial Real Estate
—
12
12
Consumer
136
178
297
Total recoveries
136
190
309
Net (charge-offs) recoveries
(1,806)
(1,329)
(328)
Allowance for credit losses at end of the period
$
34,306
$
32,222
$
27,931
Allowance to non-performing loans
310 %
298 %
213 %
Allowance to total loans outstanding at the end of the period
0.87 %
0.83 %
0.87 %
Net (charge-offs) recoveries (annualized) to average loans outstanding during the period
(0.19) %
(0.14) %
(0.04) %
View original content:https://www.prnewswire.com/news-releases/nb-bancorp-inc-reports-first-quarter-2024-financial-results-302126809.html
SOURCE Needham Bank