Financial Performance - Net income (GAAP) for the three months ended September 30, 2025, was $15.362 million, compared to $8.383 million for the same period in 2024, representing an increase of 83.5%[156] - Operating net income (non-GAAP) for the nine months ended September 30, 2025, was $44.741 million, up from $31.918 million in 2024, reflecting a growth of 40.2%[157] - Net income for the quarter ended September 30, 2025, was $15.4 million, an increase of approximately $7.0 million, or 83.3%, compared to $8.4 million for the same quarter in 2024[168] - Net income for the nine months ended September 30, 2025, was $42.6 million, an increase of approximately $16.1 million, or 60.5%, compared to the same period in 2024[187] Revenue and Income Sources - Total revenue (non-GAAP) for the nine months ended September 30, 2025, reached $150.298 million, compared to $128.296 million in 2024, an increase of 17.2%[157] - Noninterest income (GAAP) for the three months ended September 30, 2025, was $3.551 million, compared to $1.265 million in 2024, indicating a significant increase of 80.5%[157] - Noninterest income surged by $2.3 million, or 180.7%, to $3.6 million for the quarter ended September 30, 2025, primarily due to a loss on securities in the prior year[176] - Interest and dividend income rose by $23.1 million, or 10.7%, to $238.4 million for the nine months ended September 30, 2025, driven by a $23.7 million increase in interest and fees on loans[189] - Noninterest income increased by $3.8 million, or 49.6%, to $11.6 million for the nine months ended September 30, 2025, mainly from higher customer service fees and a reduction in losses on securities[196] Assets and Liabilities - Total assets increased by $284.7 million, or 5.5%, to $5.44 billion as of September 30, 2025, from $5.16 billion as of December 31, 2024[158] - Net loans increased by $378.7 million, or 8.8%, to $4.67 billion as of September 30, 2025, driven by increases in multi-family residential loans (29.2%) and commercial and industrial loans (16.4%)[161] - Total deposits rose by $388.0 million, or 9.3%, to $4.57 billion as of September 30, 2025, with core deposits increasing by $309.1 million, or 8.0%[165] - Average interest-earning assets increased by $375.0 million, or 8.0%, to $5.06 billion for the quarter ended September 30, 2025[170] - The average balance of the loan portfolio increased by $460.3 million, or 11.4%, to $4.49 billion for the nine months ended September 30, 2025[189] Expenses - Total noninterest expense increased by $5.8 million, or 23.52%, to $30.4 million for the quarter ended September 30, 2025[180] - Noninterest expense increased by $12.0 million, or 15.7%, to $88.3 million for the nine months ended September 30, 2025, with significant increases in salaries and employee benefits and data processing expenses[198] - Salaries and employee benefit expenses increased by $1.4 million, or 8.4%, primarily due to headcount increases and performance-related bonuses[179] - General and administrative expenses surged by $1.4 million, or 1,174.8%, attributed to the election of the proportional amortization method for solar income tax credit investments[180] Credit and Tax - The provision for credit losses was $1.4 million for the quarter ended September 30, 2025, down from $2.6 million in the same quarter of 2024[175] - Provision for credit losses decreased to $5.7 million for the nine months ended September 30, 2025, down from $10.7 million in the same period in 2024, reflecting improved credit quality[193] - The effective tax rate decreased to 23.0% for the quarter ended September 30, 2025, down from 45.5% in 2024[180] - The effective tax rate decreased to 24.3% for the nine months ended September 30, 2025, compared to 32.5% for the same period in 2024, primarily due to one-time tax expenses in the prior year[199] Capital and Borrowing - Total shareholders' equity decreased by $28.1 million, or 3.7%, to $737.0 million as of September 30, 2025, primarily due to a decrease in additional paid-in capital[167] - FHLB borrowings decreased by $79.4 million, or 65.7%, to $41.5 million as of September 30, 2025, reflecting overall deposit growth[166] - The company had unused borrowing capacity of $816.3 million with the Federal Home Loan Bank as of September 30, 2025[205] - The company exceeded all regulatory capital requirements and was categorized as well-capitalized as of September 30, 2025[214]

Core Insights - NB Bancorp, Inc. (NBBK) reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and up from $0.33 per share a year ago, representing an earnings surprise of +7.14% [1] - The company posted revenues of $51.73 million for the quarter ended September 2025, which was 1.29% below the Zacks Consensus Estimate, but an increase from $42.59 million year-over-year [2] - The stock has underperformed the market, losing about 1.6% since the beginning of the year compared to the S&P 500's gain of 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $53.8 million, and for the current fiscal year, it is $1.61 on revenues of $204.9 million [7] - The estimate revisions trend for NB Bancorp, Inc. was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - Northeast places it in the top 29% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - NB Bancorp, Inc. reported strong financial performance in Q3 2025, with net income increasing to $15.4 million, driven by growth in loans and deposits, despite a slight decline in net interest margin [1][2][4]. Financial Performance - Net income for Q3 2025 was $15.4 million, or $0.43 per diluted common share, up from $14.6 million, or $0.39 per diluted common share in the previous quarter [1][4]. - Operating net income, excluding one-time charges, was $16.0 million, or $0.45 per diluted common share, compared to $15.0 million, or $0.40 per diluted common share in the prior quarter [1][4]. - Net interest income increased to $48.2 million, a rise of $1.2 million, or 2.5%, from the previous quarter [6][20]. - Noninterest income decreased to $3.6 million, down $627 thousand, or 15.0%, from the prior quarter [8][20]. Balance Sheet Highlights - Total assets reached $5.44 billion, an increase of $215.8 million, or 4.1%, from June 30, 2025 [5][20]. - Total loans increased by $175.0 million, or 3.9%, to $4.72 billion [9][20]. - Total deposits rose by $297.6 million, or 7.0%, to $4.57 billion [9][20]. - Cash and cash equivalents increased by $36.7 million, or 14.2%, to $295.4 million [9][20]. Loan and Deposit Growth - Loans and deposits grew at annualized rates of 15.4% and 27.9%, respectively, during the third quarter [2]. - The loan-to-deposit ratio improved from 106% to 103% quarter over quarter [2]. Acquisition and Strategic Outlook - The company anticipates closing the acquisition of Provident Bancorp, Inc. in Q4 2025, which is expected to enhance growth opportunities [2][19]. - Merger and acquisition costs for the current quarter were $994 thousand, related to the Provident acquisition [9][20]. Asset Quality and Credit Losses - Provision for credit losses decreased by $1.8 million, or 55.8%, to $1.4 million for the current quarter [7][20]. - Non-performing loans totaled $11.4 million, a decrease of $1.1 million, or 9.0%, from the previous quarter [18][20]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 19, 2025 [3].

Financial Performance - Net income for Q3 2025 was $15.4 million, or $0.43 per diluted common share, an increase from $14.6 million, or $0.39 per diluted common share in the prior quarter[1][4] - Operating net income, excluding one-time charges, was $16.0 million, or $0.45 per diluted common share, compared to $15.0 million, or $0.40 per diluted common share in the prior quarter[1][4] - Net income for the current quarter was $15,362 thousand, compared to $14,579 thousand in the previous quarter and $8,383 thousand a year ago[23] - Net income for Q3 2025 was $15,362,000, an increase of 5.4% from $14,579,000 in Q2 2025 and a significant increase from $8,383,000 in Q3 2024[31] - Operating net income (non-GAAP) for Q3 2025 reached $16,002,000, up 6.4% from $15,043,000 in Q2 2025 and 22.5% from $13,116,000 in Q3 2024[31] - Earnings per share (diluted) increased to $0.43, up 10.3% from the previous quarter and 104.8% year-over-year[26] - Operating earnings per share (non-GAAP) for Q3 2025 was $0.45, an increase from $0.40 in Q2 2025 and $0.33 in Q3 2024[31] Revenue and Income Sources - Total revenue for the current quarter was $51,726 thousand, slightly up from $51,185 thousand in the prior quarter and significantly higher than $42,589 thousand a year ago[23] - Total revenue for Q3 2025 was $51,726,000, compared to $51,185,000 in Q2 2025 and $44,457,000 in Q3 2024, reflecting a year-over-year growth of 16.4%[31] - Net interest income was $48.2 million, a 2.5% increase from $47.0 million in the prior quarter, although net interest margin declined by 4 basis points to 3.78%[7][10] - Net interest income increased to $48,175 thousand for the three months ended September 30, 2025, up from $47,007 thousand in the previous quarter and $41,324 thousand a year ago[23] - Noninterest income was $3.6 million, down by $627 thousand, or 15.0%, from the prior quarter[9] - Noninterest income totaled $3,551, a decrease of 15.0% from the previous quarter but an increase of 180.7% year-over-year[26] Asset and Liability Management - Total assets increased by $215.8 million, or 4.1%, to $5.44 billion as of September 30, 2025[5] - Total assets increased to $5,442,390 thousand as of September 30, 2025, up from $5,226,554 thousand in the previous quarter[23] - Total assets increased to $5,442,390, up 4.1% from the previous quarter and 8.8% year-over-year[24] - Total liabilities increased to $4,542,456 thousand, with shareholders' equity at $729,979 thousand[28] Loan and Deposit Growth - Gross loans rose by $175.0 million, or 3.9%, to $4.72 billion, while total deposits increased by $297.6 million, or 7.0%, to $4.57 billion[6][10] - Total deposits rose to $4,565,664, a 7.0% increase from the previous quarter and a 12.9% increase year-over-year[24] - Core deposits increased to $4,176,991, reflecting a 4.1% increase from the previous quarter and a 12.5% increase year-over-year[24] - Brokered deposits surged to $388,673, a significant 52.9% increase from the previous quarter[24] Credit Quality and Loss Provisions - Provision for credit losses decreased by $1.8 million, or 55.8%, to $1.4 million for the current quarter[8] - Provision for credit losses decreased to $1,396, down 55.8% from the previous quarter and 46.8% year-over-year[26] - The allowance for credit losses was $43.1 million, or 0.91% of total loans, compared to $42.6 million, or 0.94% of total loans at the end of the prior quarter[16] - The allowance for credit losses (ACL) was $43,052 thousand, representing 379.1% of total non-performing loans[23] - Non-performing loans decreased to $11.4 million as of September 30, 2025, down $1.1 million or 9.0% from the previous quarter[20] - Total non-performing loans decreased to $11,357,000 in Q3 2025 from $12,478,000 in Q2 2025 and $16,012,000 in Q3 2024, indicating improved asset quality[32] - Total net charge-offs for the current quarter were $590 thousand, representing 0.05% of average total loans on an annualized basis, compared to a net recovery of $19 thousand in the prior quarter[20] Efficiency and Returns - Return on average assets improved to 1.16% for the current quarter, compared to 1.13% in the previous quarter and 0.68% a year ago[23] - The efficiency ratio for the current quarter was 58.71%, slightly higher than 57.25% in the prior quarter[23] - The operating efficiency ratio (non-GAAP) was 58.22% in Q3 2025, compared to 56.22% in Q2 2025 and 57.36% in Q3 2024, indicating a slight decline in efficiency[31] - The net interest rate spread was 2.95%, slightly down from 2.96% in the previous quarter[28]

Core Viewpoint - NB Bancorp, Inc. (NBBK) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance Indicators - For the fiscal year ending December 2025, NB Bancorp, Inc. is expected to earn $1.61 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 8.8% over the past three months [8]. - The upgrade to Zacks Rank 1 places NB Bancorp in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a historical average annual return of +25% for Zacks Rank 1 stocks since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, reflecting superior earnings estimate revisions [9][10].

Part I. Financial Information This section presents the unaudited consolidated financial statements and management's discussion and analysis for NB Bancorp, Inc [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for NB Bancorp, Inc. for periods ending June 30, 2025, and December 31, 2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Details the company's financial position, including assets, liabilities, and shareholders' equity, as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $5,226,554 | $5,157,737 | | Total Liabilities | $4,489,432 | $4,392,570 | | Total Shareholders' Equity | $737,122 | $765,167 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Presents the company's revenues, expenses, and net income for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net Interest Income | $47,007 | $38,722 | $90,532 | $77,354 | | Total Noninterest Income | $4,178 | $2,981 | $8,040 | $6,485 | | Total Noninterest Expense | $29,305 | $26,214 | $57,965 | $51,781 | | Income Before Taxes | $18,719 | $11,822 | $36,288 | $23,962 | | Net Income | $14,579 | $9,453 | $27,234 | $18,154 | | Earnings Per Share, Basic | $0.39 | $0.24 | $0.72 | $0.46 | | Earnings Per Share, Diluted | $0.39 | $0.24 | $0.72 | $0.46 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Outlines net income and other comprehensive income components for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net Income | $14,579 | $9,453 | $27,234 | $18,154 | | Net change in fair value of AFS securities | $323 | $550 | $2,025 | $762 | | Total Comprehensive Income | $14,902 | $10,003 | $29,259 | $18,916 | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Details changes in shareholders' equity, including net income, other comprehensive income, and share repurchases, for periods ended June 30, 2025, and 2024 | Item | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Balance, December 31 | $765,167 | $757,959 | | Net income | $27,234 | $18,154 | | Other comprehensive income, net of tax | $2,025 | $762 | | Repurchase of common shares | $(59,593) | — | | Restricted stock award issued | — | — | | Stock-based compensation | $787 | — | | ESOP shares committed to be released | $1,502 | $1,209 | | Balance, June 30 | $737,122 | $744,462 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net Cash Provided by Operating Activities | $36,986 | $13,294 | | Net Cash Used in Investing Activities | $(179,282) | $(231,029) | | Net Cash Provided by Financing Activities | $37,140 | $274,086 | | Net Change in Cash and Cash Equivalents | $(105,156) | $56,351 | | Cash and Cash Equivalents at End of Period | $258,699 | $328,942 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the consolidated financial statements [Note 1 – Corporate Structure and Nature of Operations; Basis of Presentation](index=8&type=section&id=Note%201%20%E2%80%93%20Corporate%20Structure%20and%20Nature%20of%20Operations%3B%20Basis%20of%20Presentation) Describes the company's structure, banking operations, pending acquisition of Provident Bancorp, and accounting basis as an emerging growth company - NB Bancorp, Inc. is a bank holding company operating through Needham Bank, providing banking services in eastern Massachusetts[20](index=20&type=chunk) - The Company announced a definitive merger agreement to acquire Provident Bancorp, Inc. for approximately **$211.8 million**, with closing expected in Q4 2025[22](index=22&type=chunk) - The Company qualifies as an emerging growth company (EGC) and has elected to defer the adoption of new or revised accounting standards[27](index=27&type=chunk) - The Company has one reportable segment: its banking business[30](index=30&type=chunk) [Note 2 – Summary of Significant Accounting Policies](index=10&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) Outlines significant accounting policies, emphasizing estimates for credit losses, fair value, and income taxes, and notes recent accounting pronouncements - Management's preparation of financial statements requires estimates and assumptions, particularly for allowance for credit losses, valuation and fair value measurements, benefit obligations, and income taxes[31](index=31&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures) and ASU 2023-09 (Improvements to Income Tax Disclosures) have been issued but are not expected to have a material impact on the Company's consolidated financial statements upon adoption[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [Note 3 – Securities](index=12&type=section&id=Note%203%20%E2%80%93%20Securities) Details available-for-sale securities, their fair value measurement, unrealized losses, and the absence of credit loss provisions | Category | Amortized Cost (in thousands) | Unrealized Gain (in thousands) | Unrealized Loss (in thousands) | Fair Value (in thousands) | | :-------------------------------- | :---------------------------- | :----------------------------- | :----------------------------- | :------------------------ | | **June 30, 2025** | | | | | | U.S. Treasury securities | $75,874 | $286 | $(222) | $75,938 | | U.S. Government agencies | $10,503 | $3 | $(1) | $10,505 | | Agency mortgage-backed securities | $46,744 | $77 | $(2,062) | $44,759 | | Corporate bonds | $86,044 | $159 | $(5,277) | $80,926 | | Total | $242,664 | $642 | $(7,898) | $235,408 | | **December 31, 2024** | | | | | | U.S. Treasury securities | $69,469 | $104 | $(489) | $69,084 | | U.S. Government agencies | $9,005 | $9 | $(7) | $9,007 | | Agency mortgage-backed securities | $42,083 | — | $(2,899) | $39,184 | | Corporate bonds | $90,219 | $163 | $(6,337) | $84,045 | | Total | $238,159 | $425 | $(10,379) | $228,205 | - No provision for estimated credit losses on available-for-sale securities was recorded for the three and six months ended June 30, 2025 and 2024[40](index=40&type=chunk) - Available-for-sale debt securities had unrealized losses with aggregate depreciation of **4.8%** from amortized cost basis at June 30, 2025, primarily due to changes in market interest rates[47](index=47&type=chunk) [Note 4 – Loans Receivable, Allowance for Credit Losses and Credit Quality](index=15&type=section&id=Note%204%20%E2%80%93%20Loans%20Receivable%2C%20Allowance%20for%20Credit%20Losses%20and%20Credit%20Quality) Details the loan portfolio, allowance for credit losses, credit quality, and specific loan categories including cannabis industry exposure | Loan Category | June 30, 2025 (in thousands) | Percent (June 30, 2025) | December 31, 2024 (in thousands) | Percent (December 31, 2024) | | :------------------------------ | :--------------------------- | :---------------------- | :------------------------------- | :-------------------------- | | One-to-four-family residential | $1,122,161 | 24.68% | $1,130,791 | 26.06% | | Home equity | $131,952 | 2.90% | $124,041 | 2.86% | | Commercial real estate | $1,373,405 | 30.20% | $1,363,394 | 31.42% | | Multi-family residential | $316,745 | 6.97% | $333,047 | 7.67% | | Construction and land development | $724,275 | 15.92% | $583,809 | 13.45% | | Commercial and industrial | $625,187 | 13.75% | $559,828 | 12.90% | | Consumer | $253,705 | 5.58% | $244,558 | 5.64% | | Total loans | $4,547,430 | 100.00% | $4,339,468 | 100.00% | | Allowance for credit losses | $(42,601) | | $(38,744) | | | Net loans | $4,498,574 | | $4,294,408 | | - Loans to borrowers in the cannabis industry totaled approximately **$441.9 million** at June 30, 2025, with **$268.3 million** collateralized by real estate[60](index=60&type=chunk) - The Company recorded a **$0.923 million** recovery from a previously modified commercial real estate participation loan during the three months ended June 30, 2025[77](index=77&type=chunk) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Provision for credit losses - loans | $4,244 | $4,429 | $5,191 | $8,319 | | Release of credit losses - unfunded commitments | $(1,083) | $(762) | $(872) | $(223) | | Total provision for credit losses | $3,161 | $3,667 | $4,319 | $8,096 | [Note 5 – Employee Benefits](index=24&type=section&id=Note%205%20%E2%80%93%20Employee%20Benefits) Outlines various employee benefit plans, including 401(k), ESOP, and stock-based compensation from the 2025 Equity Incentive Plan | Plan | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | 401(k) Plan Contributions | $728 | $726 | $1,400 | $1,300 | | ESOP Compensation Expense | $842 | $628 | $1,600 | $1,200 | | Stock-based Compensation Expense | $787 | — | $787 | — | - The Company withdrew from the CBERA Plan in the second quarter of 2024 and contributed an additional **$1.2 million** to the plan during the six months ended June 30, 2025[81](index=81&type=chunk) - The NB Bancorp, Inc. 2025 Equity Incentive Plan was approved, allowing for the issuance of up to **5,987,802 shares**, including **1,284,525 restricted stock awards** granted during the six months ended June 30, 2025[93](index=93&type=chunk)[95](index=95&type=chunk) [Note 6 – Fair Value Measurements](index=28&type=section&id=Note%206%20%E2%80%93%20Fair%20Value%20Measurements) Details the fair value measurement hierarchy for financial instruments, including available-for-sale securities and derivatives - The Company classifies financial assets and liabilities measured at fair value into three levels based on the reliability of valuation inputs: Level 1 (active exchange markets), Level 2 (less active dealer/broker markets), and Level 3 (derived from other methodologies with unobservable inputs)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) | Asset Category | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | Fair Value (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------------ | | **June 30, 2025** | | | | | | U.S. Treasury securities | $75,938 | — | — | $75,938 | | U.S. Government agencies | — | $10,505 | — | $10,505 | | Agency mortgage-backed securities | — | $44,759 | — | $44,759 | | Corporate bonds | — | $71,937 | $8,989 | $80,926 | | Total AFS Debt Securities | $75,938 | $150,481 | $8,989 | $235,408 | | Derivative assets | — | $23,980 | — | $23,980 | | Collateral-dependent loans, net of reserve | — | — | $9,298 | $9,298 | [Note 7 – Commitments and Contingencies](index=32&type=section&id=Note%207%20%E2%80%93%20Commitments%20and%20Contingencies) Outlines off-balance sheet credit risk, including loan commitments and letters of credit, and the associated allowance | Off-Balance Sheet Item | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :------------------------------- | | Commitments to originate loans | $35,479 | $34,050 | | Unadvanced funds on lines of credit | $584,268 | $495,796 | | Unadvanced funds on construction loans | $434,275 | $416,450 | | Letters of credit | $5,679 | $6,043 | | Total | $1,059,701 | $952,339 | - The allowance for off-balance sheet commitments was **$2.3 million** at June 30, 2025, with a release of **$1.1 million** for the three months ended June 30, 2025[119](index=119&type=chunk) [Note 8 – Derivatives and Hedging Activities](index=33&type=section&id=Note%208%20%E2%80%93%20Derivatives%20and%20Hedging%20Activities) Describes the use of derivative financial instruments, such as interest rate swaps and RPAs, for managing interest rate risk - The Company uses interest rate swaps and cap agreements (**72 agreements**, **$460.3 million** notional at June 30, 2025) to manage interest rate exposures, primarily for commercial banking customers[124](index=124&type=chunk)[125](index=125&type=chunk) - Risk Participation Agreements (RPAs) totaled **17** with an aggregate notional amount of **$44.8 million** at June 30, 2025, representing assumed credit risk[126](index=126&type=chunk) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Swap contract income | $524 | $265 | $612 | $752 | [Note 9 – Other Comprehensive Income (Loss)](index=36&type=section&id=Note%209%20%E2%80%93%20Other%20Comprehensive%20Income%20(Loss)) Presents components of other comprehensive income (loss), primarily from fair value changes in available-for-sale securities | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Change in fair value of AFS securities | $323 | $550 | $2,025 | $762 | | Total other comprehensive income (loss) | $323 | $550 | $2,025 | $762 | | Component of AOCI | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------------------- | :--------------------------- | :------------------------------- | | Net unrealized holding losses on AFS securities, net of tax | $(5,362) | $(7,387) | | Unrecognized director pension plan benefits, net of tax | $(780) | $(780) | | Total accumulated other comprehensive loss | $(6,142) | $(8,167) | [Note 10 – Regulatory Capital Requirements](index=37&type=section&id=Note%2010%20%E2%80%93%20Regulatory%20Capital%20Requirements) Confirms that both the Company and Needham Bank met all 'well capitalized' regulatory capital requirements - The Company and the Bank were categorized as **'well capitalized'** under the regulatory framework for prompt corrective action as of June 30, 2025, and December 31, 2024[135](index=135&type=chunk) | Capital Ratio (Company) | Actual Ratio (June 30, 2025) | Minimum for Well Capitalized | | :-------------------------------- | :--------------------------- | :--------------------------- | | Total Capital (to RWA) | 16.2% | 10.0% | | Tier 1 Capital (to RWA) | 15.2% | 8.0% | | Common Equity Tier 1 Capital (to RWA) | 15.2% | 6.5% | | Tier 1 Capital (to Total Average Assets) | 14.3% | 5.0% | [Note 11 – Earnings Per Share ("EPS")](index=39&type=section&id=Note%2011%20%E2%80%93%20Earnings%20Per%20Share%20(%22EPS%22)) Explains the calculation of basic and diluted EPS, including the impact of potentially dilutive common shares | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income applicable to common shares (in thousands) | $14,579 | $9,453 | $27,234 | $18,154 | | Average common shares outstanding (basic) | 37,191,460 | 39,289,271 | 37,668,741 | 39,490,552 | | Average common shares outstanding (diluted) | 37,550,409 | 39,289,271 | 37,848,215 | 39,490,552 | | Earnings per common share - basic | $0.39 | $0.24 | $0.72 | $0.46 | | Earnings per common share - diluted | $0.39 | $0.24 | $0.72 | $0.46 | - **959,865 securities** had a dilutive effect on EPS during the three months ended June 30, 2025[139](index=139&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition and operating results, covering balance sheet, income statement, and liquidity [General](index=39&type=section&id=General) Aids in understanding the Company's financial condition and operating results in conjunction with financial statements - This section aims to assist in understanding the Company's financial condition and results of operations and should be read in conjunction with the unaudited financial statements[141](index=141&type=chunk) [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=39&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) Highlights forward-looking statements subject to significant business, economic, and competitive uncertainties and risks - The report contains forward-looking statements, identifiable by words such as 'estimate,' 'project,' 'believe,' 'intend,' and 'anticipate,' which are subject to significant business, economic, and competitive uncertainties[142](index=142&type=chunk) - Factors that could cause actual results to differ materially include weakening economy, inflationary pressures, financial market volatility, loan delinquencies, interest rate changes, risks related to the pending acquisition of Provident Bancorp, Inc. and BankProv, and changes in laws or regulations[144](index=144&type=chunk) [Critical Accounting Policies](index=41&type=section&id=Critical%20Accounting%20Policies) Discusses critical accounting policies, emphasizing areas requiring significant management judgment and no material changes - There are no material changes to the critical accounting policies disclosed in the Company's Annual Report on Form 10-K filed on March 7, 2025[146](index=146&type=chunk) - Key areas requiring significant management judgment include the Allowance for Credit Losses (ACL) under the CECL methodology, Income Taxes (deferred tax assets and liabilities), and Securities Valuation (fair value estimates for available-for-sale debt securities)[147](index=147&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=Non-GAAP%20Financial%20Measures) Presents non-GAAP financial measures used to supplement GAAP results for evaluating financial condition - The Company uses non-GAAP financial measures, such as operating net income and operating EPS, to provide supplemental information for evaluating financial condition, which are not substitutes for GAAP results[158](index=158&type=chunk) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating net income (non-GAAP) (in thousands) | $15,043 | $9,858 | $28,736 | $19,164 | | Operating earnings per share, basic (non-GAAP) | $0.40 | $0.25 | $0.76 | $0.49 | | Operating earnings per share, diluted (non-GAAP) | $0.40 | $0.25 | $0.76 | $0.49 | | Operating efficiency ratio (non-GAAP) | 56.22% | 61.65% | 57.03% | 60.21% | [Comparison of Financial Condition as of June 30, 2025 and December 31, 2024](index=45&type=section&id=Comparison%20of%20Financial%20Condition%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) Compares the Company's financial condition, including assets, liabilities, and equity, between June 30, 2025, and December 31, 2024 - Total assets increased by **$68.8 million (1.3%)** to **$5.23 billion**, primarily due to increases in net loans, non-public investments, and available-for-sale securities, partially offset by decreases in cash and cash equivalents and BOLI[160](index=160&type=chunk) - Net loans increased by **$204.2 million (4.8%)** to **$4.50 billion**, driven by a **24.1%** increase in construction and land development loans and an **11.7%** increase in commercial and industrial loans[163](index=163&type=chunk) - Deposits increased by **$90.4 million (2.2%)** to **$4.27 billion**, with core deposits up **3.8%** and brokered deposits down **18.0%**[167](index=167&type=chunk) - Shareholders' equity decreased by **$28.0 million (3.7%)** to **$737.1 million**, mainly due to a **$59.6 million** decrease in additional paid-in capital from share repurchases, partially offset by net income[169](index=169&type=chunk) [Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024](index=47&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) Compares operating results, including net income, net interest income, and noninterest expenses, for the three months ended June 30, 2025, and 2024 - Net income increased by **$5.1 million (54.2%)** to **$14.6 million**, driven by an **$8.3 million** increase in net interest income and a **$1.2 million** increase in noninterest income, partially offset by higher noninterest expense and income tax[170](index=170&type=chunk) - Net interest income increased by **$8.3 million (21.4%)** to **$47.0 million**, primarily due to a **9.9%** increase in average interest-earning assets and a **12 basis point** increase in the yield on interest-earning assets[176](index=176&type=chunk) - Noninterest income increased by **$1.2 million (40.2%)** to **$4.2 million**, mainly from customer service fees (**+36.4%**), increase in BOLI cash surrender value (**+94.8%**), and swap contract income (**+97.7%**)[178](index=178&type=chunk) - Noninterest expense increased by **$3.1 million (11.8%)** to **$29.3 million**, primarily due to increases in salaries and employee benefits (**+10.9%**), director and professional service fees (**+29.7%**), and merger and acquisition expenses (**$0.53 million**)[179](index=179&type=chunk)[180](index=180&type=chunk) [Comparison of Operating Results for the Six Months Ended June 30, 2025 and 2024](index=52&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Compares operating results, including net income, net interest income, and provision for credit losses, for the six months ended June 30, 2025, and 2024 - Net income increased by **$9.1 million (50.0%)** to **$27.2 million**, driven by a **$13.2 million** increase in net interest income and a **$3.8 million** decrease in the provision for credit losses[188](index=188&type=chunk) - Net interest income increased by **$13.2 million (17.0%)** to **$90.5 million**, due to an **11.8%** increase in average interest-earning assets and a **6 basis point** increase in the weighted average yield[193](index=193&type=chunk) - Provision for credit losses decreased by **$3.8 million (46.7%)** to **$4.3 million**, primarily due to a specific reserve established in 2024 and a recovery in 2025[194](index=194&type=chunk) - Noninterest expense increased by **$6.2 million (11.9%)** to **$58.0 million**, mainly from salaries and employee benefits (**+9.9%**), data processing expenses (**+21.7%**), and FDIC and state insurance assessments (**+70.6%**)[195](index=195&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the Company's liquidity sources, borrowing capacity, off-balance sheet commitments, and regulatory capital adequacy - Primary sources of funds include deposits, loan/security payments, and borrowings from the FHLB and FRB[201](index=201&type=chunk) - As of June 30, 2025, the Company had **$724.2 million** in unused borrowing capacity with the FHLB and **$593.4 million** available from the FRB discount window[201](index=201&type=chunk) - Off-balance sheet commitments totaled **$1.06 billion**, including commitments to originate loans, unused lines of credit, unadvanced construction loans, and letters of credit[204](index=204&type=chunk) - Needham Bank and NB Bancorp, Inc. exceeded all regulatory capital requirements and were categorized as **'well-capitalized'** as of June 30, 2025[210](index=210&type=chunk) [Impact of Inflation and Changing Prices](index=57&type=section&id=Impact%20of%20Inflation%20and%20Changing%20Prices) Examines the impact of inflation and changing prices on the Company's operations, noting interest rates as a more significant factor - The primary impact of inflation on operations is increased operating costs; however, interest rates generally have a more significant impact on a financial institution's performance than inflation[211](index=211&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) States that this section is not applicable as the Registrant qualifies as an emerging growth company - This item is not applicable as the Registrant is an emerging growth company[212](index=212&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures with no material changes in internal controls - The Company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025[213](index=213&type=chunk) - There have been no material changes in the Company's internal controls over financial reporting during the quarter ended June 30, 2025[214](index=214&type=chunk) Part II. Other Information Presents other required information, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) Details legal actions in the normal course of business, not expected to materially impact financial condition - Legal actions are not expected to have a material adverse effect on the Company's financial condition or results of operations[216](index=216&type=chunk) [Item 1A. Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) Confirms no material changes to risk factors previously disclosed in the Annual Report on Form 10-K - No material changes in risk factors from those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[217](index=217&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Reports on common stock repurchases and the authorization of a new stock repurchase program | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----------------------- | :----------------------------- | :--------------------------- | | June 1 - June 30, 2025 | 1,106,588 | $17.08 | - A second stock repurchase program was announced on May 7, 2025, authorizing the Company to purchase up to **2,028,522 shares (5%)** of its outstanding common stock[219](index=219&type=chunk) [Item 3. Defaults Upon Senior Securities](index=59&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Confirms no defaults upon senior securities during the reported period - No defaults upon senior securities were reported[220](index=220&type=chunk) [Item 4. Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) States that this item is not applicable to the Company - This item is not applicable[221](index=221&type=chunk) [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information) Reports on a new Change in Control Agreement with the Chief Financial Officer, Jean-Pierre Lapointe - On June 5, 2025, the Bank entered into a new Change in Control Agreement with Jean-Pierre Lapointe, Chief Financial Officer, providing a **24-month term** and severance equal to **two times his annual compensation** upon a qualifying termination[221](index=221&type=chunk)[222](index=222&type=chunk) [Item 6. Exhibits](index=61&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including certifications and XBRL documents - Exhibits include certifications from the Chief Executive Officer (31.1) and Chief Financial Officer (31.2), a joint certification (32), and various XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[226](index=226&type=chunk) [Signature Page](index=62&type=section&id=Signature%20Page) Confirms the report's signing by the Chairman, President, CEO, and CFO on August 8, 2025 - The report is signed by Joseph Campanelli (Chairman, President, and CEO) and Jean-Pierre Lapointe (Executive Vice President and CFO) on August 8, 2025[230](index=230&type=chunk)

Core Viewpoint - NB Bancorp, Inc. (NBBK) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding NB Bancorp's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is projected at $0.42 per share, reflecting a year-over-year increase of +27.3%. Over the last 30 days, one estimate has increased, leading to a 10.53% rise in the Zacks Consensus Estimate [6]. - For the full year, the earnings estimate stands at $1.61 per share, representing a +41.2% change from the previous year. The consensus estimate has also increased by 8.78% during this period [7][8]. Zacks Rank - NB Bancorp has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator for investors to make informed decisions [9]. - Stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, suggesting a strong potential for NB Bancorp [9]. Stock Performance - The stock has gained 7.5% over the past four weeks, driven by solid estimate revisions, indicating strong earnings growth prospects that may further elevate the stock price [10].

Core Viewpoint - NB Bancorp, Inc. reported quarterly earnings of $0.4 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing an increase from $0.24 per share a year ago, representing an earnings surprise of +14.29% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - For the quarter ended June 2025, NB Bancorp, Inc. posted revenues of $51.19 million, exceeding the Zacks Consensus Estimate by 7.31%, compared to $41.7 million in the same quarter last year [2] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $49.5 million, and for the current fiscal year, it is $1.48 on revenues of $194.6 million [7] Group 2: Stock Performance and Outlook - NB Bancorp, Inc. shares have increased by approximately 2.3% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The company's earnings outlook will be crucial for future stock performance, with mixed trends in estimate revisions noted prior to the earnings release [4][6] - The Zacks Rank for the stock is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Banks - Northeast industry, to which NB Bancorp, Inc. belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - NB Bancorp, Inc. reported strong financial performance in Q2 2025, with record earnings and a focus on growth strategies, including a pending acquisition of Provident Bancorp, Inc. [1][2] Financial Performance - Net income for Q2 2025 was $14.6 million, or $0.39 per diluted common share, up from $12.7 million, or $0.33 per diluted common share in the previous quarter [1][4] - Operating net income, excluding one-time charges, was $15.0 million, or $0.40 per diluted common share, compared to $13.7 million, or $0.35 per diluted common share in the prior quarter [1][4] - Net interest income increased by $3.5 million, or 8.0%, to $47.0 million for the quarter [6][20] - Noninterest income rose to $4.2 million, an increase of $317 thousand, or 8.2% [8][20] - Total revenue for the quarter was $51.2 million, compared to $47.4 million in the previous quarter [20] Balance Sheet Highlights - Total assets decreased by $15.6 million, or 0.3%, to $5.23 billion as of June 30, 2025 [5][21] - Total loans increased by $76.7 million, or 1.7%, to $4.54 billion [9][20] - Total deposits decreased by $58.6 million, or 1.4%, to $4.27 billion [9][20] - Shareholders' equity decreased by $2.5 million, or 0.3%, to $737.1 million [9][20] Loan and Deposit Trends - Gross loans increased primarily in construction and land development loans, which rose by $77.9 million, or 12.1% [9][18] - Core deposits remained relatively flat, decreasing by $3.5 million, or 0.1% [9][20] - Brokered deposits decreased by $55.1 million, or 17.8% [9][20] Credit Quality - Provision for credit losses increased by $2.0 million, or 173.0%, to $3.2 million [7][20] - Non-performing loans totaled $12.5 million, an increase of $1.1 million, or 9.7% from the previous quarter [18][20] - The allowance for credit losses amounted to $42.6 million, or 0.94% of total loans [18][20] Shareholder Actions - The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on August 20, 2025 [3] - Over 1.1 million shares were repurchased at an average price of $17.08, enhancing shareholder value [2][9] Future Outlook - The company anticipates closing and converting the acquisition of Provident Bancorp in Q4 2025, aiming for continued growth [2][9] - The effective tax rate decreased to 22.1% from 28.0% in the prior quarter, primarily due to solar tax credits [11][12]

Exhibit 99.1 ● Net income of $14.6 million, or $0.39 per diluted common share, compared to net income of $12.7 million, or $0.33 per diluted common share, for the prior quarter. Operating net income, excluding one-time charges, amounted to $15.0 million, or $0.40 per diluted common share, compared to operating net income of $13.7 million, or $0.35 per diluted common share for the prior quarter. 1 NB Bancorp, Inc. Reports Second Quarter 2025 Financial Results, Initiates Quarterly Cash Dividend Investor Conta ...