#USA #financial results #Needham Bank #Needham #NB Bancorp

NB Bancorp, Inc. Reports First Quarter 2025 Financial Results

NB Bancorp, Inc., the parent company of Needham Bank, has announced its financial performance for the first quarter of 2025, indicating a steady progression despite current economic challenges. The results showcase a slight dip in net income, alongside encouraging growth in deposits and loans.

Financial Overview

For the quarter ending March 31, 2025, NB Bancorp registered a total net income of $12.7 million, or $0.33 per diluted share, reflecting a reduction from the previous quarter's net income of $15.6 million. However, when factoring out one-time expenses such as pension-related charges and tax penalties associated with the surrender of certain insurance policies, the adjusted operating net income stood at $13.7 million, or $0.35 per diluted share, slightly up from last quarter's $13.3 million.

Joseph Campanelli, the Chairman and CEO, expressed optimism, stating, "As we begin our second year as a public company, we focus on disciplined growth and maintaining robust capital levels." During this quarter, the bank managed to repurchase 5% of its outstanding shares at an average cost of $19.06 per share, underlining confidence in its financial standing.

Key Financial Metrics

• - Loan-to-Deposit Ratio: 102.3%, supporting a strong liquidity position.
• - Deposit Growth: Increased by $149 million (3.6%) to $4.33 billion.
• - Loan Growth: Net loans rose by $131.8 million (3.1%) to $4.46 billion.
• - Net Interest Margin: Expanded to 3.61%, up from 3.52%, benefitting from lower interest costs amid stable interest rates on earning assets.
• - Tangible Book Value: Improved by $0.31 to $18.20 during the quarter.

Deposits and Loans Performance

Both deposits and loans showed promising annualized growth of 14.4% and 12.4%, respectively. The bank experienced a rise in customer deposits, particularly in money market accounts, which rose by 12.7%. The increase in core deposits—a key focus for the bank—totaled $149.5 million, representing a growth of 3.9% from the previous quarter.

On the loan front, the bank saw significant advancements in various sectors. Notably, construction and land development loans surged by 10.7%, while commercial and industrial loans increased by 8.9%. Overall, the bank's portfolio remains robust, with a diverse mix of lending across commercial real estate, multi-family housing, and consumer lending.

Noninterest Income and Expenses

NB Bancorp also reported a noninterest income of $3.9 million, a slight increase of 2.1% from the prior quarter, with customer service fees accounting for a significant portion of that growth. Conversely, noninterest expenses totaled $28.7 million, up by 11.9% from the previous quarter, primarily due to increased salaries and employee benefits, including final pension obligations.

Campanelli continues to emphasize the importance of growing market share while responsibly managing shareholders' equity, aiming to enhance shareholder value further as the bank moves deeper into 2025.

Conclusion

As NB Bancorp advances through the fiscal year, it appears to be navigating the complexities of the financial landscape with strategic growth initiatives and a focus on liquidity. The overall performance in the face of external uncertainties is commendable, leaving stakeholders and investors optimistic about the future trajectory of the bank. Looking forward, the commitment to growing deposits while carefully monitoring loan quality will be essential for sustained success in the competitive banking sector.