NB Bancorp, Inc. Reports Fourth Quarter 2024 Financial Results and Announces Commencement of Share Repurchase Plan

, /PRNewswire/ -- NB Bancorp, Inc. (the "Company") (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the "Bank"), today announced its fourth quarter 2024 financial results. The Company reported net income of $15.6 million, or $0.40 per diluted share, compared to net income of $8.4 million, or $0.21 per diluted share, for the prior quarter. Operating net income, excluding one-time charges, amounted to $13.3 million, or $0.34 per diluted share, compared to operating net income of $13.1 million, or $0.33 per diluted share for the prior quarter. "We completed our first full year as a public company with a strong financial performance. Results for the fourth quarter include operating net income of $0.34 per share for the quarter and another quarter where our deposit growth outpaced loan growth, which were both impressive, at 3.3% and 2.0%, respectively. Tangible book value ended the year at $17.89, as we are happy to announce the commencement of our first share repurchase program, whereby we plan to prudently manage our capital levels as we head into 2025 with continued growth opportunities," commented Joseph Campanelli, Chairman, President and Chief Executive Officer. "Our first year as a public company was successful in many facets and we look forward to continued growth and success as we begin our second year of continuing to create shareholder value," Campanelli continued. The Company announced today that it has adopted a stock repurchase program for up to 2,135,286 shares of the Company's common stock, which equals approximately 5.0% of the shares currently outstanding. This is the Company's first stock repurchase program since completing its mutual-to-stock conversion and related stock offering in December 2023. SELECTED FINANCIAL HIGHLIGHTS FOR THE FOURTH QUARTER OF 2024 Net income of $15.6 million, or $0.40 per diluted share, compared to net income of $8.4 million, or $0.21 per diluted share, for the prior quarter. Operating net income, excluding one-time charges, amounted to $13.3 million, or $0.34 per diluted share, compared to operating net income of $13.1 million, or $0.33 per diluted share for the prior quarter. One-time charges during the current quarter include: Tax benefit related to an adjustment to a basis write-down of solar income tax credits of $2.5 million, partially offset by; Tax expense and a modified endowment contract penalty related to the surrender of bank-owned life insurance ("BOLI") policies of $153 thousand. Net interest margin expanded one basis point to 3.52% during the current quarter from 3.51% in the prior quarter. Gross loans increased $84.1 million, or 2.0%, to $4.33 billion, from $4.25 billion the prior quarter. Total deposits increased $135.0 million, or 3.3%, from the prior quarter. Core deposits, which the Company considers to be all non-brokered deposits, increased $154.9 million, or 4.2%, for the current quarter, offset partially by a decrease in brokered deposits of $19.9 million or 6.0% from the prior quarter. Book value per share and tangible book value per share were $17.92 and $17.89, respectively, which increased from $17.50 and $17.48, respectively in the prior quarter. The increase in tangible book value per share was due to net income for the current quarter of $15.6 million and reversal of prior year deferred tax liabilities related to the adoption of the proportional amortization method ("PAM") on solar income tax credits of $2.3 million. BALANCE SHEETTotal assets amounted to $5.16 billion as of December 31, 2024, representing an increase of $155.3 million, or 3.1%, from September 30, 2024. Cash and cash equivalents increased $46.8 million, or 14.8%, to $363.9 million from $317.0 million in the prior quarter, as a result of deposit growth outpacing loan growth. Net loans increased to $4.29 billion, representing an increase of $82.9 million, or 2.0%, from the prior quarter as demand for new originations continued. The current quarter growth was primarily seen in commercial real estate loans, which increased $143.9 million, or 9.3%, residential real estate loans, which increased $20.9 million or 1.7%, and consumer loans, which increased $10.1 million, or 4.3%, offset partially by a decrease in construction and land development loans of $83.1 million, or 12.5%, and a decrease in commercial and industrial loans of $7.1 million, or 1.3%. Prepaid expenses and other assets decreased $14.9 million, or 20.0%, to $59.5 million from $74.4 million, primarily from a decrease in income tax receivables of $14.9 million, as a result of the year-end true-up for deferred tax assets. Deferred income tax assets increased $12.8 million, or 73.5%, to $30.3 million from $17.5 million, as a result of the deferred tax assets from year-end true-up of solar tax credit carryforwards. Deposits totaled $4.18 billion, representing an increase of $135.0 million, or 3.3%, from the prior quarter. The increase in deposits was the result of growth in customer deposits, primarily money market accounts, which increased $91.9 million, or 8.9%, non-interest-bearing demand deposits, which increased $62.6 million, or 11.2% and NOW accounts which increased $22.9 million, or 6.9%. The above increases were partially offset by certificates of deposit, which decreased $20.1 million, or 1.2%, from the prior quarter, along with brokered deposits, which decreased $20.1 million, or 6.1%, from the prior quarter. FHLB borrowings increased to $120.8 million from $116.3 million, a $4.5 million, or 3.9%, increase during the current quarter as a result of the need to fund loan growth and maintain adequate cash levels. Shareholders' equity was $765.2 million, representing an increase of $17.7 million, or 2.4%, from the prior quarter, primarily as a result of $15.6 million of net income and a $2.3 million reversal of prior year deferred tax liabilities related to the adoption of PAM on solar income tax credits. Shareholders' equity to total assets and tangible shareholders' equity to tangible assets were both 14.8% at the end of the quarter. NET INTEREST INCOMENet interest income was $42.5 million for the quarter ended December 31, 2024, compared to $41.3 million for the prior quarter, representing an increase of $1.2 million, or 2.9%. The increase in interest income during the quarter ended December 31, 2024 was primarily attributable to increases in the average balance of loans, which contributed $1.5 million, increases in the average rate on other investments, which contributed $354 thousand and increases in the average balances of securities, which contributed $249 thousand. These increases were partially offset by decreases in the average rate on loans, which reduced interest income by $993 thousand during the quarter ended December 31, 2024. Interest expense remained unchanged for the quarter ended December 31, 2024 from the prior quarter. NONINTEREST INCOMENoninterest income was $3.8 million for the quarter ended December 31, 2024, compared to $1.3 million for the prior quarter, representing an increase of $2.5 million, or 198.9%. Net loss on sale of available-for-sale securities decreased $1.9 million, or 100.0%, to $0 during the quarter with no security sales during the current quarter compared to the loss trades executed to restructure the securities portfolio for higher yields and lower risk during the prior quarter. BOLI income was $1.0 million, compared to $414 thousand in the prior quarter, representing an increase of $635 thousand, or 153.4%, due to the BOLI restructure to higher rates in the prior quarter and carrying $50.0 million in additional BOLI policies while the older policies are in the process of being surrendered. NONINTEREST EXPENSENoninterest expense for the quarter ended December 31, 2024 was $25.6 million, representing an increase of $1.0 million, or 4.2%, from the prior quarter. General and administrative expenses increased $1.6 million, or 1,432.2%, for the quarter ended December 31, 2024, primarily as a result of the adoption of Financial Accounting Standards Board Accounting Standards Update ("ASU") 2023-02 under the proportional amortization method ("PAM"), which reclassified amounts recognized in the first and second quarters of 2024 related to the amortization of solar tax credit investments from general and administration expenses to income tax expense during the prior quarter. Director and professional service fees increased $433 thousand during the quarter ended December 31, 2024, primarily as a result of increased consulting fees of $232 thousand, increased legal expenses of $130 thousand, and increased professional services of $79 thousand. Data processing expenses increased $252 thousand during the quarter ended December 31, 2024, primarily a result of increased IT infrastructure costs of $104 thousand and increased electronic banking and deposit service expenses of $120 thousand. FDIC and state assessments increased $229 thousand during the quarter ended December 31, 2024, primarily a result of increased FDIC assessment rates. Salaries and employee benefits were $15.7 million for the quarter ended December 31, 2024, representing a decrease of $1.5 million, or 8.5%, from the prior quarter, primarily driven by a decrease in incentive compensation expenses as the Company trued-up its bonus and other compensation amounts for year-end; partially offset by increased employee compensation of $179 thousand from the prior quarter. INCOME TAXESIncome tax expense for the quarter ended December 31, 2024 was $3.7 million, representing a $3.3 million, or 47.6%, decrease from the prior quarter. The decrease was primarily driven by the reversal of a deferred tax liability related to the adoption of PAM under ASU 2023-02. The effective tax rate for the current quarter was 19.0%, compared to 45.5% in the prior quarter. The primary driver of the decrease in the effective tax rate was the income tax benefit for reversal of a deferred tax liability related to the adoption of PAM, which resulted in $2.5 million of income tax benefit. Excluding this item, the effective tax rate (non-GAAP) would have been 32.0%. COMMERCIAL REAL ESTATE PORTFOLIOCommercial real estate loans increased $143.9 million, or 9.3%, to $1.70 billion, during the quarter ended December 31, 2024. Cannabis facility commercial real estate loans increased $8.8 million, or 2.8%, during the quarter ended December 31, 2024. The Company's cannabis facility commercial real estate portfolio is secured entirely by the underlying commercial real estate of the borrower operation. The vast majority of the loan portfolio balances have a loan-to-value ratio of 65% or lower, with appraisal reports taking a blended approach (using both cannabis and non-cannabis use comparable real estate sales, which we believe are generally more conservative). The cannabis facility portfolio has geographic dispersion, with lower dollar exposure loans remaining local and larger dollar exposure loans generally tied to multi-state operators with a more national footprint. All cannabis facility loan relationships were pass-rated and current at the end of the current quarter. The Company's $333.0 million multi-family real estate loan portfolio consists of high-quality, performing loans primarily located in the Greater Boston area, primarily all of which are adjustable-rate loans. The Company's $182.8 million office portfolio consists principally of suburban Class A and B office space used as medical and traditional offices. The portfolio does not consist of high-rise towers located in Boston. ASSET QUALITY The allowance for credit losses ("ACL") amounted to $38.7 million as of December 31, 2024, or 0.89% of total gross loans, compared to $37.6 million, or 0.89% of total loans at September 30, 2024. The Company recorded provisions for credit losses of $1.4 million during the quarter ended December 31, 2024, compared to $2.6 million for the prior quarter, which included a provision of $1.6 million for loans and a release of $214 thousand for unfunded commitments in the current quarter. Non-performing loans totaled $13.9 million as of December 31, 2024, a decrease of $2.2 million, or 13.5%, from $16.0 million at the end of the prior quarter. The decrease was primarily due to the reduction in one-to-four family residential loans on non-accrual of $2.1 million during the quarter ended December 31, 2024. During the quarter ended December 31, 2024, the Company recorded total net charge-offs of $479 thousand, or 0.04% of average total loans on an annualized basis, compared to $5.2 million, or 0.50% of average total loans on an annualized basis, in the prior quarter. The decrease in net charge-offs during the quarter ended December 31, 2024 was due to a $4.0 million charge-off of one commercial real estate office participation loan during the prior quarter and a $462 thousand decrease in purchased consumer loan charge-offs, along with a $308 thousand increase in recoveries during the quarter. The Company's loan portfolio consists primarily of commercial real estate and multi-family loans, one-to-four-family residential real estate loans, construction and land development loans, commercial and industrial loans and consumer loans. These loans are primarily made to individuals and businesses located in our primary lending market area, which is the Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire and Rhode Island. SHARE REPURCHASE PLANThe Company announced today that it has adopted a share repurchase program for up to 2,135,286 shares of common stock, which equals approximately 5.0% of the shares currently issued and outstanding. Shares may be repurchased in open market or private transactions, through block trades, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission ("SEC"). Repurchases will be made at management's discretion at prices management considers to be attractive and in the best interests of both the Company and its shareholders, subject to the availability of shares, general market conditions, the trading price of the stock, alternative uses for capital, and the Company's financial performance. Open market purchases may be subject to the limitations set forth in Rule 10b-18 of the SEC and other applicable legal requirements. The timing and amount of share repurchases under the share repurchase plan may be suspended, terminated or modified by the Company at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The Company is not obligated to repurchase any particular number of shares or any shares in any specific time period. ABOUT NB BANCORP, INC.NB Bancorp, Inc. (Nasdaq Capital Market: NBBK) is the registered bank holding company of Needham Bank. Needham Bank is headquartered in Needham, Massachusetts, which is approximately 17 miles southwest of Boston's financial district. Known as the "Builder's Bank," Needham Bank has been helping individuals, businesses and non-profits build for their futures since 1892. Needham Bank offers an array of tech-forward products and services that businesses and consumers use to manage their financial needs. We have the financial expertise typically found at much larger institutions and the local knowledge and commitment you can only find at a community bank. For more information, please visit https://NeedhamBank.com. Needham Bank is a member of FDIC and DIF. Non-GAAP Financial MeasuresIn addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures, including operating net income, operating noninterest expense, operating noninterest income, operating earnings per share, basic, operating earnings per share, diluted, operating return on average assets, operating return on average shareholders' equity, operating efficiency ratio, tangible shareholders' equity, tangible assets, tangible book value per share, and efficiency ratio. The Company's management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a Company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Forward-Looking StatementsStatements 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 December 31, 2024 September 30, 2024 December 31, 2023 Earnings data Net interest income $ 42,521 $ 41,324 $ 35,278 Noninterest income 3,781 1,265 3,252 Total revenue 46,302 42,589 38,530 Provision for credit losses 1,404 2,623 5,901 Noninterest expense 25,623 24,586 52,788 Pre-tax income (loss) 19,275 15,380 (20,159) Net income (loss) 15,611 8,383 (13,617) Operating net income (non-GAAP) 13,261 13,116 10,880 Operating noninterest expense (non-GAAP) 25,623 25,499 23,875 Per share data Earnings (loss) per share, basic $ 0.40 $ 0.21 $ (0.32) Earnings (loss) per share, diluted 0.40 0.21 (0.32) Operating earnings per share, basic (non-GAAP) 0.34 0.33 0.26 Operating earnings per share, diluted (non-GAAP) 0.34 0.33 0.26 Book value per share 17.92 17.50 17.75 Tangible book value per share (non-GAAP) 17.89 17.48 17.72 Profitability Return (loss) on average assets 1.23 % 0.68 % (1.25) % Operating return on average assets (non-GAAP) 1.04 % 1.07 % 1.00 % Return (loss) on average shareholders' equity 8.22 % 4.42 % (13.75) % Operating return on average shareholders' equity (non-GAAP) 6.98 % 6.91 % 10.99 % Net interest margin 3.52 % 3.51 % 3.40 % Cost of deposits 3.24 % 3.37 % 2.84 % Efficiency ratio 55.34 % 57.73 % 137.00 % Operating efficiency ratio (non-GAAP) 55.34 % 57.36 % 61.96 % Balance sheet, end of period Total assets $ 5,157,737 $ 5,002,394 $ 4,533,391 Total loans 4,333,152 4,249,074 3,889,279 Total deposits 4,177,652 4,042,654 3,387,327 Total shareholders' equity 765,167 747,449 757,959 Asset quality Allowance for credit losses (ACL) $ 38,744 $ 37,605 $ 32,222 ACL / Total non-performing loans (NPLs) 279.6 % 234.9 % 298.4 % Total NPLs / Total loans 0.32 % 0.38 % 0.28 % Net charge-offs (annualized) / Average total loans (0.04) % (0.50) % (0.14) % Capital ratios Shareholders' equity / Total assets 14.84 % 14.94 % 16.72 % Tangible shareholders' equity / tangible assets (non-GAAP) 14.82 % 14.92 % 16.70 % NB BANCORP, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands, except share and per share data) As of December 31, 2024 change from December 31, 2024 September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023 Assets Cash and due from banks $ 211,166 $ 148,187 $ 90,485 $ 62,979 42.5 % $ 120,681 133.4 % Federal funds sold 152,689 168,862 182,106 (16,173) (9.6) % (29,417) (16.2) % Total cash and cash equivalents 363,855 317,049 272,591 46,806 14.8 % 91,264 33.5 % Available-for-sale securities, at fair value 228,205 202,541 189,465 25,664 12.7 % 38,740 20.4 % Loans receivable, net of deferred fees 4,333,152 4,249,074 3,889,279 84,078 2.0 % 443,873 11.4 % Allowance for credit losses (38,744) (37,605) (32,222) (1,139) 3.0 % (6,522) 20.2 % Net loans 4,294,408 4,211,469 3,857,057 82,939 2.0 % 437,351 11.3 % Accrued interest receivable 19,685 18,671 17,284 1,014 5.4 % 2,401 13.9 % Banking premises and equipment, net 34,654 34,802 35,531 (148) (0.4) % (877) (2.5) % Non-public investments 24,364 24,271 38,733 93 0.4 % (14,369) (37.1) % Bank-owned life insurance ("BOLI") 102,785 101,736 50,516 1,049 1.0 % 52,269 103.5 % Prepaid expenses and other assets 59,482 74,387 53,088 (14,905) (20.0) % 6,394 12.0 % Deferred income tax asset 30,299 17,468 19,126 12,831 73.5 % 11,173 58.4 % Total assets $ 5,157,737 $ 5,002,394 $ 4,533,391 $ 155,343 3.1 % $ 624,346 13.8 % Liabilities and shareholders' equity Deposits Core Deposits $ 3,867,846 $ 3,712,904 $ 3,203,755 $ 154,942 4.2 % $ 664,091 20.7 % Brokered Deposits 309,806 329,750 183,572 (19,944) (6.0) % 126,234 68.8 % Total Deposits 4,177,652 4,042,654 3,387,327 134,998 3.3 % 790,325 23.3 % Mortgagors' escrow accounts 4,549 4,401 4,229 148 3.4 % 320 7.6 % FHLB borrowings 120,835 116,335 283,338 4,500 3.9 % (162,503) (57.4) % Accrued expenses and other liabilities 65,708 68,290 81,046 (2,582) (3.8) % (15,338) (18.9) % Accrued retirement liabilities 23,826 23,265 19,492 561 2.4 % 4,334 22.2 % Total liabilities 4,392,570 4,254,945 3,775,432 137,625 3.2 % 617,138 16.3 % Shareholders' equity: Preferred stock, $0.01 par value, 5,000,000 shares authorized; no shares issued and outstanding - - - - 0.0 % - 0.0 % Common stock, $0.01 par value, 120,000,000 shares authorized; 42,705,729 issued and outstanding at December 31 and September 30, 2024 and December 31, 2023, respectively 427 427 427 - 0.0 % - 0.0 % Additional paid-in capital 417,247 417,013 417,030 234 0.1 % 217 0.1 % Unallocated common shares held by the Employee Stock Ownership Plan ("ESOP") (44,813) (45,407) (13,774) 594 (1.3) % (31,039) 225.3 % Retained earnings 400,473 382,560 366,173 17,913 4.7 % 34,300 9.4 % Accumulated other comprehensive loss (8,167) (7,144) (11,897) (1,023) 14.3 % 3,730 (31.4) % Total shareholders' equity 765,167 747,449 757,959 17,718 2.4 % 7,208 1.0 % Total liabilities and shareholders' equity $ 5,157,737 $ 5,002,394 $ 4,533,391 $ 155,343 3.1 % $ 624,346 13.8 % NB BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except share and per share data) For the Three Months Ended Three Months Ended December 31, 2024 Change From Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023 INTEREST AND DIVIDEND INCOME Interest and fees on loans $ 70,977 $ 70,518 $ 61,696 $ 459 0.7 % $ 9,281 15.0 % Interest on investment securities 2,116 1,768 1,161 348 19.7 % 955 82.3 % Interest and dividends on cash equivalents and other 4,107 3,717 1,445 390 10.5 % 2,662 184.2 % Total interest and dividend income 77,200 76,003 64,302 1,197 1.6 % 12,898 20.1 % INTEREST EXPENSE Interest on deposits 33,514 33,612 25,845 (98) (0.3) % 7,669 29.7 % Interest on borrowings 1,165 1,067 3,179 98 9.2 % (2,014) (63.4) % Total interest expense 34,679 34,679 29,024 - 0.0 % 5,655 19.5 % NET INTEREST INCOME 42,521 41,324 35,278 1,197 2.9 % 7,243 20.5 % PROVISION FOR CREDIT LOSSES Provision for credit losses - loans 1,618 4,997 1,662 (3,379) (67.6) % (44) (2.6) % (Release of) provision for credit losses - unfunded commitments (214) (2,374) 4,239 2,160 (91.0) % (4,453) (105.0) % Total provision for credit losses 1,404 2,623 5,901 (1,219) (46.5) % (4,497) (76.2) % NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 41,117 38,701 29,377 2,416 6.2 % 11,740 40.0 % NONINTEREST INCOME Customer service fees 2,068 1,963 2,633 105 5.3 % (565) (21.5) % Increase in cash surrender value of BOLI 1,049 414 394 635 153.4 % 655 166.2 % Mortgage banking income 118 367 112 (249) (67.8) % 6 5.4 % Swap contract income 531 375 95 156 41.6 % 436 458.9 % Loss on sale of available-for-sale securities, net - (1,868) - 1,868 100.0 % - 0.0 % Other income 15 14 18 1 7.1 % (3) (16.7) % Total noninterest income 3,781 1,265 3,252 2,516 198.9 % 529 16.3 % NONINTEREST EXPENSE Salaries and employee benefits 15,747 17,202 24,311 (1,455) (8.5) % (8,564) (35.2) % Director and professional service fees 2,428 1,995 1,247 433 21.7 % 1,181 94.7 % Occupancy and equipment expenses 1,388 1,394 1,266 (6) (0.4) % 122 9.6 % Data processing expenses 2,478 2,226 2,044 252 11.3 % 434 21.2 % Marketing and charitable contribution expenses 779 842 20,110 (63) (7.5) % (19,331) (96.1) % FDIC and state insurance assessments 1,041 812 1,863 229 28.2 % (822) (44.1) % General and administrative expenses 1,762 115 1,947 1,647 1432.2 % (185) (9.5) % Total noninterest expense 25,623 24,586 52,788 1,037 4.2 % (27,165) (51.5) % INCOME (LOSS) BEFORE TAXES 19,275 15,380 (20,159) 3,895 25.3 % 39,434 195.6 % INCOME TAX EXPENSE (BENEFITS) 3,664 6,997 (6,542) (3,333) (47.6) % 10,206 156.0 % NET INCOME (LOSS) $ 15,611 $ 8,383 $ (13,617) $ 7,228 86.2 % $ 29,228 214.6 % Weighted average common shares outstanding, basic 39,291,088 39,289,271 42,018,229 1,817 0.0 % (2,727,141) (6.5) % Weighted average common shares outstanding, diluted 39,291,088 39,289,271 42,018,229 1,817 0.0 % (2,727,141) (6.5) % Earnings (loss) per share, basic $ 0.40 $ 0.21 $ (0.32) $ 0.18 86.2 % $ 0.72 222.6 % Earnings (loss) per share, diluted $ 0.40 $ 0.21 $ (0.32) $ 0.18 86.2 % $ 0.72 222.6 % NB BANCORP, INC. AVERAGE BALANCES, INTEREST EARNED/PAID & AVERAGE YIELDS (Unaudited) (Dollars in thousands) For the Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Average Average Outstanding Average Outstanding Average Outstanding Average Balance Interest Yield/Rate (4) Balance Interest Yield/Rate (4) Balance Interest Yield/Rate (4) Interest-earning assets: Loans $ 4,278,952 $ 70,977 6.60 % $ 4,188,504 $ 70,518 6.70 % $ 3,784,363 $ 61,696 6.47 % Securities 215,268 2,116 3.91 % 204,273 1,768 3.44 % 194,024 1,161 2.37 % Other investments (5) 27,217 586 8.57 % 26,239 223 3.38 % 30,268 430 5.64 % Short-term investments (5) 283,540 3,521 4.94 % 264,394 3,494 5.26 % 111,067 1,015 3.63 % Total interest-earning assets 4,804,977 77,200 6.39 % 4,683,410 76,003 6.46 % 4,119,722 64,302 6.19 % Non-interest-earning assets 285,715 245,138 236,755 Allowance for credit losses (38,231) (38,495) (32,638) Total assets $ 5,052,461 $ 4,890,053 $ 4,323,839 Interest-bearing liabilities: Savings accounts $ 121,709 14 0.05 % $ 112,632 15 0.05 % $ 135,629 17 0.05 % NOW accounts 326,379 283 0.34 % 327,484 180 0.22 % 330,830 204 0.24 % Money market accounts 951,916 9,203 3.85 % 876,933 8,943 4.06 % 829,353 6,869 3.29 % Certificates of deposit and individual retirement accounts 1,990,735 24,014 4.80 % 1,940,992 24,474 5.02 % 1,580,491 18,755 4.71 % Total interest-bearing deposits 3,390,739 33,514 3.93 % 3,258,041 33,612 4.10 % 2,876,303 25,845 3.56 % FHLB advances 95,873 1,165 4.83 % 85,156 1,067 4.98 % 220,475 3,179 5.72 % Total interest-bearing liabilities 3,486,612 34,679 3.96 % 3,343,197 34,679 4.13 % 3,096,778 29,024 3.72 % Non-interest-bearing deposits 725,377 713,566 729,928 Other non-interest-bearing liabilities 84,964 78,681 104,211 Total liabilities 4,296,953 4,135,444 3,930,917 Shareholders' equity 755,508 754,609 392,922 Total liabilities and shareholders' equity $ 5,052,461 $ 4,890,053 $ 4,323,839 Net interest income $ 42,521 $ 41,324 $ 35,278 Net interest rate spread (1) 2.43 % 2.33 % 2.47 % Net interest-earning assets (2) $ 1,318,365 $ 1,340,213 $ 1,022,944 Net interest margin (3) 3.52 % 3.51 % 3.40 % Average interest-earning assets to interest-bearing liabilities 137.81 % 140.09 % 133.03 % (1) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. (2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. (4) Annualized (5) Other investments are comprised of FRB stock, FHLB stock and swap collateral accounts. Short-term investments are comprised of cash and cash equivalents. NB BANCORP, INC. COMMERCIAL REAL ESTATE BY COLLATERAL TYPE (Unaudited) (Dollars in thousands) December 31, 2024 Owner-Occupied Non-Owner-Occupied Balance Percentage Multi-Family $ — $ 333,047 $ 333,047 20 % Cannabis Facility 310,773 15,257 326,030 19 % Industrial 123,191 74,057 197,248 12 % Office 31,075 151,729 182,804 11 % Hospitality — 164,520 164,520 10 % Special Purpose 77,730 54,355 132,085 8 % Retail 46,126 91,471 137,597 8 % Mixed-Use 9,023 103,748 112,771 6 % Other 41,490 68,849 110,339 6 % Total commercial real estate $ 639,408 $ 1,057,033 $ 1,696,441 100 % September 30, 2024 Change From Three Months Ended December 31, 2024 Owner-Occupied Non-Owner-Occupied Balance Percentage Owner-Occupied Non-Owner-Occupied Balance Percentage Multi-Family $ — $ 272,561 $ 272,561 18 % $ — $ 60,486 $ 60,486 22 % Cannabis Facility 301,931 15,334 317,265 20 % 8,842 (77) 8,765 3 % Industrial 110,091 53,185 163,276 10 % 13,100 20,872 33,972 21 % Office 30,884 177,614 208,498 13 % 191 (25,885) (25,694) (12) % Hospitality 55 157,027 157,082 10 % (55) 7,493 7,438 5 % Special Purpose 80,575 54,432 135,007 9 % (2,845) (77) (2,922) (2) % Retail 27,466 91,412 118,878 8 % 18,660 59 18,719 16 % Mixed-Use 8,509 63,292 71,801 5 % 514 40,456 40,970 57 % Other 41,577 66,570 108,147 7 % (87) 2,279 2,192 2 % Total commercial real estate $ 601,088 $ 951,427 $ 1,552,515 100 % $ 38,320 $ 105,606 $ 143,926 9 % December 31, 2023 Change From Three Months Ended December 31, 2024 Owner-Occupied Non-Owner-Occupied Balance Percentage Owner-Occupied Non-Owner-Occupied Balance Percentage Multi-Family $ — $ 209,982 $ 209,982 15 % $ — $ 123,065 $ 123,065 59 % Cannabis Facility 242,713 15,553 258,266 19 % 68,060 (296) 67,764 26 % Industrial 108,494 2,966 111,460 8 % 14,697 71,091 85,788 77 % Office 27,741 159,241 186,982 14 % 3,334 (7,512) (4,178) (2) % Hospitality 35 148,278 148,313 11 % (35) 16,242 16,207 11 % Special Purpose 79,676 54,126 133,802 10 % (1,946) 229 (1,717) (1) % Retail 27,709 103,996 131,705 9 % 18,417 (12,525) 5,892 4 % Mixed-Use 8,765 62,563 71,328 5 % 258 41,185 41,443 58 % Other 28,524 99,479 128,003 9 % 12,966 (30,630) (17,664) (14) % Total commercial real estate $ 523,657 $ 856,184 $ 1,379,841 100 % $ 115,751 $ 200,849 $ 316,600 23 % NB BANCORP, INC. NON-GAAP RECONCILIATION (Unaudited) (Dollars in thousands) For the Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Net income (GAAP) $ 15,611 $ 8,383 $ (13,617) Add (Subtract): Adjustments to net income: Losses on sales of securities available for sale, net - 1,868 - Income tax expense (benefit) on solar tax credit investment basis reduction (2,503) 2,503 - BOLI surrender tax and modified endowment contract penalty 153 1,552 - Adjustment for adoption of ASU 2023-02 - (913) - Needham Bank Charitable Foundation contribution resulting from IPO - - 19,082 One-time conversion and IPO-related compensation expense - - 7,931 Defined benefit pension termination expense - - 1,900 Permanent tax differences resulting from public company tax laws (1) - - 3,680 Total adjustments to net income $ (2,350) $ 5,010 $ 32,593 Less net tax benefit (expense) associated with non-GAAP adjustments - 277 8,096 Non-GAAP adjustments, net of tax (2,350) 4,733 24,497 Operating net income (non-GAAP) $ 13,261 $ 13,116 $ 10,880 Weighted average common shares outstanding, basic 39,291,088 39,289,271 42,018,229 Weighted average common shares outstanding, diluted 39,291,088 39,289,271 42,018,229 Operating earnings per share, basic (non-GAAP) $ 0.34 $ 0.33 $ 0.26 Operating earnings per share, diluted (non-GAAP) $ 0.34 $ 0.33 $ 0.26 (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. Noninterest expense (GAAP) $ 25,623 $ 24,586 $ 52,788 Subtract (Add): Noninterest expense components: Adjustment for adoption of ASU 2023-02 - (913) - Needham Bank Charitable Foundation contribution resulting from IPO - - 19,082 One-time conversion and IPO-related compensation expense - - 7,931 Defined benefit pension termination expense - - 1,900 Total impact of non-GAAP noninterest expense adjustments $ - $ (913) $ 28,913 Noninterest expense on an operating basis (non-GAAP) $ 25,623 $ 25,499 $ 23,875 Noninterest income (GAAP) $ 3,781 $ 1,265 $ 3,252 Subtract (Add): Noninterest expense components: Losses on sales of securities available for sale, net - (1,868) - Total impact of non-GAAP noninterest income adjustments $ - $ (1,868) $ - Noninterest income on an operating basis (non-GAAP) $ 3,781 $ 3,133 $ 3,252 Operating net income (non-GAAP) $ 13,261 $ 13,116 $ 10,880 Average assets 5,052,461 4,890,053 4,323,839 Operating return on average assets (non-GAAP) 1.04 % 1.07 % 1.00 % Average shareholders' equity $ 755,508 $ 754,609 $ 392,922 Operating return on average shareholders' equity (non-GAAP) 6.98 % 6.91 % 10.99 % Noninterest expense on an operating basis (non-GAAP) $ 25,623 $ 25,499 $ 23,875 Total revenue (net interest income plus total noninterest income on an operating basis) (non-GAAP) 46,302 44,457 38,530 Operating efficiency ratio (non-GAAP) 55.34 % 57.36 % 61.96 % As of December 31, 2024 September 30, 2024 December 31, 2023 Total shareholders' equity (GAAP) $ 765,167 $ 747,449 $ 757,959 Subtract: Intangible assets (core deposit intangible) 1,079 1,116 1,227 Total tangible shareholders' equity (non-GAAP) 764,088 746,333 756,732 Total assets (GAAP) 5,157,737 5,002,394 4,533,391 Subtract: Intangible assets (core deposit intangible) 1,079 1,116 1,227 Total tangible assets (non-GAAP) $ 5,156,658 $ 5,001,278 $ 4,532,164 Tangible shareholders' equity / tangible assets (non-GAAP) 14.82 % 14.92 % 16.70 % Total common shares outstanding 42,705,729 42,705,729 42,705,729 Tangible book value per share (non-GAAP) $ 17.89 $ 17.48 $ 17.72 NB BANCORP, INC. ASSET QUALITY – NON-PERFORMING ASSETS (1) (Unaudited) (Dollars in thousands) December 31, 2024 September 30, 2024 December 31, 2023 Real estate loans: One-to-four-family residential $ 2,930 $ 5,070 $ 4,100 Home equity 958 1,060 590 Commercial real estate 3,005 3,030 422 Construction and land development 10 10 10 Commercial and industrial 4,558 4,743 4,138 Consumer 2,395 2,099 1,539 Total $ 13,856 $ 16,012 $ 10,799 Total non-performing loans to total loans 0.32 % 0.38 % 0.28 % Total non-performing assets to total assets 0.27 % 0.32 % 0.24 % (1) Non-performing loans and assets are comprised of non-accrual loans NB BANCORP, INC. ASSET QUALITY – PROVISION, ALLOWANCE, AND NET (CHARGE-OFFS) RECOVERIES (Unaudited) (Dollars in thousands) For the Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Allowance for credit losses at beginning of the period $ 37,605 $ 37,857 $ 31,889 Provision for credit losses 1,618 4,997 1,662 Charge-offs: Consumer 843 1,305 1,519 Commercial real estate — 4,000 — Total charge-offs 843 5,305 1,519 Recoveries of loans previously charged off: Commercial and industrial 202 12 12 Consumer 162 44 178 Total recoveries 364 56 190 Net charge-offs (479) (5,249) (1,329) Allowance for credit losses at end of the period $ 38,744 $ 37,605 $ 32,222 Allowance to non-performing loans 279.6 % 234.9 % 298.4 % Allowance to total loans outstanding at the end of the period 0.89 % 0.89 % 0.83 % Net charge-offs (annualized) to average loans outstanding during the period (0.04) % (0.50) % (0.14) % SOURCE Needham Bank WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

NB Bancorp, Inc. Reports Fourth Quarter 2024 Financial Results and Announces Commencement of Share Repurchase Plan

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