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]

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 prior 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] - Total revenue reached $51,185,000 in Q2 2025, up 3.8% from $47,387,000 in Q1 2025 and a 22.7% increase from $41,703,000 in Q2 2024[24] - Net income for Q2 2025 was $14,579,000, representing a 15.2% increase from $12,655,000 in Q1 2025 and a 54.5% increase from $9,453,000 in Q2 2024[24] - Operating net income (non-GAAP) for Q2 2025 was $15,043,000, compared to $13,693,000 in Q1 2025, marking a 9.9% increase[24] - The efficiency ratio improved to 57.25% in Q2 2025 from 60.48% in Q1 2025, indicating better cost management[24] - Return on average assets increased to 1.13% in Q2 2025 from 1.00% in Q1 2025, reflecting enhanced profitability[24] Income and Revenue Sources - Net interest income increased by $3.5 million, or 8.0%, to $47.0 million, with net interest margin expanding by 21 basis points to 3.82%[6][7] - Noninterest income was $4.2 million, an increase of $317 thousand, or 8.2%, from the prior quarter[10] - Net interest income for Q2 2025 was $47,007,000, an increase of 8.5% from $43,526,000 in Q1 2025 and a 21.5% increase from $38,722,000 in Q2 2024[24] - The company reported a significant increase in swap contract income, rising by $436 thousand (495.5%) from the previous quarter[26] Asset and Liability Management - Total assets as of June 30, 2025, were $5,226,554,000, a slight decrease from $5,242,157,000 at the end of Q1 2025[24] - Total loans increased to $4,541,175,000 in Q2 2025 from $4,464,500,000 in Q1 2025, showing growth in lending activities[24] - Total deposits decreased by $58.6 million, or 1.4%, to $4.27 billion[7][8] - Interest-bearing liabilities totaled $3,747,456 thousand, with total interest-bearing deposits at $3,644,050 thousand[28] Credit Quality and Risk Management - Provision for credit losses rose by $2.0 million, or 173.0%, to $3.2 million, compared to $1.2 million in the prior quarter[9][13] - The allowance for credit losses (ACL) was $42,601,000, up from $38,338,000 in Q1 2025, indicating a proactive approach to managing credit risk[24] - Total non-performing loans amounted to $12,478,000, which is a 9.7% increase from $11,372,000 in Q1 2025 but a significant decrease of 39.8% from $20,729,000 in Q2 2024[33] - The allowance for credit losses stood at $39,930 thousand, reflecting an increase from $34,735 thousand year-over-year[28] Shareholder Actions - The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on August 20, 2025[3] - Shareholders' equity decreased by $2.5 million, or 0.3%, to $737.1 million, primarily due to share repurchases[7] - The company repurchased over 1.1 million shares at an average price of $17.08 per share, enhancing shareholder value[2][7] Strategic Initiatives - The company anticipates closing the acquisition of Provident Bancorp, Inc. in Q4 2025, continuing its growth strategy[2] - The company is currently pursuing the acquisition of Provident, which may impact future performance and operational strategies[22]

Market Overview & Investment Strategy - The podcast focuses on growth stocks, noting a potential breakout in the S&P 500 in the summer of 2025 following a trade war selloff [1] - Zacks' premium screens, which utilize the Zacks Rank, are highlighted as a tool for identifying promising growth stocks [3][4] - The podcast aims to explore growth stocks using Zacks' screening tools, offering insights into both basic and premium screening options [2][3] Featured Stocks & Analysis - **Apploving (AP)**: A technology platform in the advertising sector with a market cap of $136 billion, showing strong earnings growth and positive analyst revisions [22][37][43] - **Anglo Gold Ashanti (AU)**: A gold mining company with a market cap of $19.9 billion, benefiting from rising gold prices and showing significant earnings growth [23][49] - **Birkenstock (BIRK)**: A shoe manufacturer with a market cap of $10 billion, demonstrating strong sales and earnings growth despite potential tariff concerns [23][57] - **Cyber Arc Software (CYBR)**: A cyber security company with a market cap of $19.5 billion, experiencing robust growth in a booming industry [25][63] - **European Wax Center (EWCZ)**: A personal care franchise with a smaller market cap of $284 million, showing potential for growth and value combination [26][67] - **NB Bankore (NBBK)**: A regional bank with a market cap of $676 million, exhibiting growth in earnings and revenue, and considered undervalued with a low price-to-book ratio [28][73] Key Metrics & Financial Highlights - Apploving's sales are expected to grow by 243% in 2025, with earnings up by 852% [43] - Anglo Gold Ashanti's 2025 estimates show a 95% increase, driven by rising gold prices [50] - Birkenstock's PEG ratio is 11%, indicating reasonable growth at 28 times earnings [57] - Cyber Arc Software's earnings growth is projected at 170% for 2025, with sales also in double digits [63] - European Wax Center's forward PE is 84%, with a PEG of 46, indicating a value PEG [71] - NB Bankore has a price-to-book ratio of 094, suggesting it is undervalued [77]

Core Viewpoint - NB Bancorp, Inc. and Provident Bancorp, Inc. have entered into a definitive merger agreement, with Provident merging into Needham in a stock and cash transaction valued at approximately $211.8 million [2][3] Summary by Sections Merger Agreement - The merger agreement was unanimously approved by both boards, allowing Provident stockholders to choose between receiving 0.691 shares of Needham common stock or $13.00 in cash for each share of Provident common stock [2] - The transaction is structured to qualify as a tax-free reorganization for federal income tax purposes [2] Financial Implications - Needham anticipates issuing approximately 5.9 million shares of its common stock as part of the merger [2] - The transaction is expected to dilute Needham's tangible book value by approximately 6.1% and has an earn back period of about 2.7 years [2] - The merger is projected to be approximately 19% accretive to NB Bancorp's earnings per share in 2026, assuming full phase-in of cost savings [6] Operational Impact - The combined organization will operate 18 branches across Metrowest, Greater Boston, the North Shore in Massachusetts, and Southern New Hampshire [4] - Total assets at transaction close are expected to be around $7.1 billion, with $5.9 billion in total deposits and $6.1 billion in total loans [4] Leadership and Governance - Joseph B. Reilly, President and CEO of Provident, will join the board of directors of Needham and Needham Bank [3] - All Provident directors and executive officers have agreed to vote in favor of the merger [3] Market Position - The pro forma company is expected to be the sixth largest Massachusetts-based bank in the Boston MSA based on deposit market share [4] - Needham will maintain significant liquidity and exceed regulatory minimums to be considered well-capitalized after the merger [4]

Core Viewpoint - Purcell & Lefkowitz LLP is investigating NB Bancorp, Inc. to determine if its directors breached fiduciary duties related to recent corporate actions [1] Group 1 - The investigation is on behalf of NB Bancorp's shareholders [1] - Shareholders interested in more information can contact the law firm directly [1] Group 2 - Purcell & Lefkowitz LLP specializes in representing shareholders affected by securities fraud and corporate misconduct [2] - The firm emphasizes that prior results do not guarantee similar outcomes [2]

Part I. Financial Information This part presents the unaudited consolidated financial statements and management's discussion and analysis for the quarter [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of NB Bancorp, Inc. for the quarter ended March 31, 2025, and comparative periods. It includes the balance sheets, statements of income, comprehensive income, changes in shareholders' equity, and cash flows, along with detailed notes explaining corporate structure, accounting policies, securities, loans, employee benefits, fair value measurements, commitments, derivatives, other comprehensive income, regulatory capital, and earnings per share [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and shareholders' equity at specific points in time | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Total assets | $5,242,157 | $5,157,737 | $84,420 | 1.64% | | Total liabilities | $4,502,546 | $4,392,570 | $109,976 | 2.50% | | Total shareholders' equity | $739,611 | $765,167 | $(25,556) | -3.34% | - **Total assets** increased by **$84.4 million**, or 1.6%, primarily driven by an increase in net loans, partially offset by a decrease in cash and cash equivalents[7](index=7&type=chunk)[165](index=165&type=chunk) - **Total shareholders' equity** decreased by **$25.6 million**, or 3.3%, mainly due to a **$40.7 million** decrease in additional paid-in capital from the share repurchase program, partially offset by net income and other comprehensive income[7](index=7&type=chunk)[176](index=176&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the company's revenues, expenses, and net income over specific reporting periods | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Total interest income | $76,851 | $68,193 | $8,658 | 12.70% | | Total interest expense| $33,325 | $29,560 | $3,765 | 12.74% | | Net interest income | $43,526 | $38,633 | $4,893 | 12.67% | | Provision for credit losses | $1,158 | $4,429 | $(3,271)| -73.85% | | Noninterest income | $3,861 | $3,501 | $360 | 10.28% | | Noninterest expense | $28,660 | $25,565 | $3,095 | 12.11% | | Income before taxes | $17,569 | $12,140 | $5,429 | 44.72% | | Income tax expense | $4,914 | $3,439 | $1,475 | 42.89% | | Net income | $12,655 | $8,701 | $3,954 | 45.44% | | Basic EPS | $0.33 | $0.22 | $0.11 | 50.00% | | Diluted EPS | $0.33 | $0.22 | $0.11 | 50.00% | - **Net income** increased by **$4.0 million**, or 45.4%, to **$12.7 million** for Q1 2025, driven by a 12.7% increase in net interest income and a 73.9% decrease in the provision for credit losses, partially offset by higher noninterest expense and income tax expense[177](index=177&type=chunk) [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section reports net income and other comprehensive income items, such as unrealized gains/losses on securities | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Net income | $12,655 | $8,701 | $3,954 | 45.44% | | Other comprehensive income, net of tax | $1,702 | $212 | $1,490 | 702.83% |\ | Total comprehensive income, net of tax | $14,357 | $8,913 | $5,444 | 61.08% | - **Total comprehensive income** increased by **$5.4 million**, or 61.1%, to **$14.4 million**, primarily due to a significant increase in the net change in fair value of available-for-sale securities, net of tax, from **$212,000** in Q1 2024 to **$1.7 million** in Q1 2025[13](index=13&type=chunk)[136](index=136&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section outlines changes in equity components, including net income, share repurchases, and other comprehensive income | Metric (in thousands) | Balance, December 31, 2024 | Net Income | Other Comprehensive Income | Repurchase of Common Shares | ESOP Shares Released | Balance, March 31, 2025 | | :-------------------- | :------------------------- | :--------- | :------------------------- | :-------------------------- | :------------------- | :---------------------- | | Common Stock | $427 | — | — | $(21) | — | $406 | | Additional Paid-In Capital | $417,247 | — | — | $(40,675) | $201 | $376,773 | | Unallocated Common Stock Held by ESOP | $(44,813) | — | — | — | $582 | $(44,231) | | Retained Earnings | $400,473 | $12,655 | — | — | — | $413,128 | | Accumulated Other Comprehensive Loss | $(8,167) | — | $1,702 | — | — | $(6,465) | | Total Shareholders' Equity | $765,167 | $12,655 | $1,702 | $(40,696) | $783 | $739,611 | - **Shareholders' equity** decreased by **$25.6 million** from December 31, 2024, to March 31, 2025, primarily due to a **$40.7 million** repurchase of common shares under the share repurchase plan, partially offset by net income of **$12.7 million** and other comprehensive income of **$1.7 million**[16](index=16&type=chunk)[176](index=176&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section categorizes cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash from operating activities| $9,948 | $(11,407) | | Net cash used in investing activities| $(138,541) | $(74,634) | | Net cash from financing activities| $78,184 | $128,481 | | Net change in cash and cash equivalents | $(50,409) | $42,440 | | Cash and cash equivalents at end of period | $313,446 | $315,031 | - **Net cash provided by operating activities** significantly improved to **$9.9 million** in Q1 2025 from a net cash used of **$11.4 million** in Q1 2024. **Net cash used in investing activities** increased to **$138.5 million**, primarily due to higher loan originations. **Net cash provided by financing activities** decreased to **$78.2 million**, mainly due to common share repurchases and a decrease in FHLB borrowings[19](index=19&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section 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) This note describes the company's legal structure, primary operations, and the accounting principles used for financial reporting - **NB Bancorp, Inc.** is a Maryland corporation and bank holding company, operating through its wholly-owned subsidiary, Needham Bank, which provides banking services primarily in eastern Massachusetts[22](index=22&type=chunk) - The Company's financial statements are prepared in conformity with U.S. GAAP and SEC rules, and it qualifies as an emerging growth company (EGC), electing to defer new accounting standards until nonpublic company effective dates[24](index=24&type=chunk)[28](index=28&type=chunk) [Note 2 – Summary of Significant Accounting Policies](index=9&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting policies and significant estimates applied in preparing the financial statements - Management's preparation of financial statements involves significant estimates and assumptions, particularly for the allowance for credit losses, valuation and fair value measurements, benefit obligations, and income taxes[31](index=31&type=chunk) - The Company does not expect recently issued accounting pronouncements, ASU 2024-03 (Expense Disaggregation Disclosures) and ASU 2023-09 (Improvements to Income Tax Disclosures), to have a material impact on its consolidated financial statements[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [Note 3 – Securities](index=9&type=section&id=Note%203%20%E2%80%93%20Securities) This note details the company's investment securities, including their fair values and any unrealized gains or losses | Available-for-Sale Debt Securities (in thousands) | March 31, 2025 Fair Value | December 31, 2024 Fair Value | Change | | :-------------------------------- | :------------------------ | :------------------------ | :----- | | U.S. Treasury securities | $72,331 | $69,084 | $3,247 | | U.S. Government agencies | $9,010 | $9,007 | $3 | | Agency mortgage-backed securities | $42,788 | $39,184 | $3,604 | | Agency collateralized mortgage obligations | $10,419 | $10,833 | $(414) | | Corporate bonds | $86,618 | $84,045 | $2,573 | | Municipal obligations | $7,373 | $9,806 | $(2,433)| | SBA securities | $6,141 | $6,246 | $(105) | | Total | $234,680 | $228,205 | $6,475 | - **Available-for-sale securities** increased by **$6.5 million**, or 2.8%, to **$234.7 million** as of March 31, 2025, primarily due to purchases of U.S. treasuries and mortgage-backed securities. The Company did not record any provision for estimated credit losses on these securities[38](index=38&type=chunk)[167](index=167&type=chunk) - As of March 31, 2025, available-for-sale debt securities had aggregate unrealized losses of 4.9% from their amortized cost basis, primarily due to changes in market interest rates. Management intends and has the ability to hold these securities until maturity or cost recovery, thus no allowance for credit losses is deemed necessary[45](index=45&type=chunk) [Note 4 – Loans Receivable, Allowance for Credit Losses and Credit Quality](index=12&type=section&id=Note%204%20%E2%80%93%20Loans%20Receivable%2C%20Allowance%20for%20Credit%20Losses%20and%20Credit%20Quality) This note provides information on the loan portfolio, the allowance for credit losses, and credit quality metrics | Loan Category (in thousands) | March 31, 2025 Amount | December 31, 2024 Amount | Change | % Change | | :--------------------------- | :-------------------- | :----------------------- | :----- | :------- | | One-to-four-family residential | $1,118,611 | $1,130,791 | $(12,180)| -1.08% | | Home equity | $126,718 | $124,041 | $2,677 | 2.16% | | Commercial real estate | $1,375,980 | $1,363,394 | $12,586| 0.92% | | Multi-family residential | $341,619 | $333,047 | $8,572 | 2.57% | | Construction and land development | $646,343 | $583,809 | $62,534| 10.71% | | Commercial and industrial | $609,458 | $559,828 | $49,630| 8.87% | | Consumer | $252,320 | $244,558 | $7,762 | 3.17% | | Total loans | $4,471,049 | $4,339,468 | $131,581| 3.03% | | Net loans | $4,426,162 | $4,294,408 | $131,754| 3.07% | - **Net loans** increased by **$131.8 million**, or 3.1%, to **$4.43 billion** as of March 31, 2025, primarily driven by growth in construction and development loans (10.7%), commercial and industrial loans (8.9%), and commercial real estate loans (0.9%)[58](index=58&type=chunk)[170](index=170&type=chunk) | Allowance for Credit Losses (in thousands) | March 31, 2025 | December 31, 2024 | Change | | :--------------------------------------- | :------------- | :---------------- | :----- | | Balance at period end | $38,338 | $38,744 | $(406) | - The **total provision for credit losses** decreased significantly by **$3.3 million**, or 73.9%, to **$1.2 million** for Q1 2025, mainly due to decreases in qualitative factors on loans collateralized by purchased consumer loans and updated prepayment speeds across all loan segments[183](index=183&type=chunk) - **Nonaccrual loans** decreased from **$13.9 million** at December 31, 2024, to **$11.4 million** at March 31, 2025, with commercial real estate loans showing the largest reduction in nonaccrual status[62](index=62&type=chunk) [Note 5 – Employee Benefits](index=19&type=section&id=Note%205%20%E2%80%93%20Employee%20Benefits) This note describes the company's employee benefit plans, including contributions and related expenses - The Company contributed **$688,000** to its 401(k) Plan in Q1 2025, an increase from **$619,000** in Q1 2024[78](index=78&type=chunk) - The Company made an additional **$1.1 million** contribution to the CBERA Plan in Q1 2025 as part of its final liquidation, following its withdrawal from the plan as of December 31, 2023[80](index=80&type=chunk) - **Total compensation expense recognized for the Employee Stock Ownership Plan (ESOP)** was **$783,000** for Q1 2025, up from **$588,000** in Q1 2024[93](index=93&type=chunk) - The **NB Bancorp, Inc. 2025 Equity Incentive Plan** was approved by shareholders on April 23, 2025, authorizing the issuance of up to **5,987,802 shares** for various awards, including restricted stock and stock options[94](index=94&type=chunk) [Note 6 – Fair Value Measurements](index=21&type=section&id=Note%206%20%E2%80%93%20Fair%20Value%20Measurements) This note explains the methodologies and inputs used to measure the fair value of financial instruments - The Company categorizes financial assets and liabilities measured at fair value into three levels based on input reliability: 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/Liability (in thousands) | March 31, 2025 Fair Value | Level 1 | Level 2 | Level 3 | | :----------------------------- | :------------------------ | :------ | :------ | :------ | | Total available-for-sale debt securities | $234,680 | $72,331 | $153,518| $8,831 | | Derivative assets | $24,060 | — | $24,060 | — | | Derivative liabilities | $24,064 | — | $24,064 | — | | Collateral-dependent loans, net of reserve (non-recurring) | $9,053 | — | — | $9,053 | - For collateral-dependent loans, fair value is primarily determined using market valuation approaches based on independent appraisals (Level 2), but can be classified as Level 3 if significantly adjusted due to lack of marketability or if enterprise value methods are used[108](index=108&type=chunk)[109](index=109&type=chunk) [Note 7 – Commitments and Contingencies](index=25&type=section&id=Note%207%20%E2%80%93%20Commitments%20and%20Contingencies) This note discloses off-balance sheet commitments, such as loan commitments, and potential contingent liabilities - The Company has significant off-balance sheet credit risk through commitments to originate loans, unadvanced funds on lines of credit and construction loans, and standby letters of credit[116](index=116&type=chunk)[118](index=118&type=chunk) | Off-Balance Sheet Commitments (in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------------- | :------------- | :---------------- | | Commitments to originate loans | $49,070 | $34,050 | | Unadvanced funds on lines of credit | $556,591 | $495,796 | | Unadvanced funds on construction loans | $488,275 | $416,450 | | Letters of credit | $6,317 | $6,043 | | Total | $1,100,253 | $952,339 | - The **allowance for off-balance sheet commitments** increased to **$3.4 million** as of March 31, 2025, from **$3.2 million** at December 31, 2024, with a provision of **$211,000** recorded for Q1 2025[122](index=122&type=chunk) [Note 8 – Derivatives and Hedging Activities](index=26&type=section&id=Note%208%20%E2%80%93%20Derivatives%20and%20Hedging%20Activities) This note details the company's use of derivative instruments for risk management and their impact on financial results - The Company uses derivative financial instruments, primarily interest rate swap agreements, to manage interest rate risk and exposures to changes in the fair value of fixed-rate assets[123](index=123&type=chunk)[125](index=125&type=chunk) - As of March 31, 2025, the Company had **69 interest rate swap agreements** with an aggregate notional amount of **$415.5 million**, a decrease from **$429.9 million** at December 31, 2024[130](index=130&type=chunk) - **Swap contract income** decreased significantly to **$88,000** for Q1 2025 from **$487,000** for Q1 2024, primarily due to fewer swaps executed[133](index=133&type=chunk)[185](index=185&type=chunk) [Note 9 – Other Comprehensive Income](index=28&type=section&id=Note%209%20%E2%80%93%20Other%20Comprehensive%20Income) This note provides a breakdown of items included in other comprehensive income and accumulated other comprehensive loss | Component (in thousands) | March 31, 2025 (After-Tax) | March 31, 2024 (After-Tax) | | :----------------------- | :------------------------- | :------------------------- | | Net change in fair value of available-for-sale securities | $1,702 | $212 | | Total other comprehensive income (loss) | $1,702 | $212 | | Accumulated Other Comprehensive Loss (in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------- | :---------------- | | Net unrealized holding losses on available-for-sale securities, net of tax | $(5,685) | $(7,387) | | Unrecognized director pension plan benefits, net of tax | $(780) | $(780) | | Total accumulated other comprehensive loss | $(6,465) | $(8,167) | - **Accumulated other comprehensive loss** improved from **$(8.2) million** at December 31, 2024, to **$(6.5) million** at March 31, 2025, primarily due to a reduction in net unrealized holding losses on available-for-sale securities[136](index=136&type=chunk) [Note 10 – Regulatory Capital Requirements](index=28&type=section&id=Note%2010%20%E2%80%93%20Regulatory%20Capital%20Requirements) This note outlines the company's compliance with regulatory capital standards and its capital adequacy ratios - **Both NB Bancorp, Inc. and Needham Bank exceeded all regulatory capital requirements** as of March 31, 2025, and December 31, 2024, and were categorized as **well-capitalized**[139](index=139&type=chunk)[203](index=203&type=chunk) **NB Bancorp, Inc. Capital Ratios (March 31, 2025):** | Capital Ratio | Actual Amount (in thousands) | Actual Ratio | Minimum for Adequacy | Minimum for Well Capitalized | | :------------------------ | :--------------------------- | :----------- | :------------------- | :--------------------------- | | Total Capital | $787,077 | 16.3% | 8.0% | 10.0% | | Tier 1 Capital | $745,325 | 15.4% | 6.0% | 8.0% | | Common Equity Tier 1 Capital | $745,325 | 15.4% | 4.5% | 6.5% | | Tier 1 Capital (to Total Average Assets) | $745,325 | 14.5% | 4.0% | 5.0% | **Needham Bank Capital Ratios (March 31, 2025):** | Capital Ratio | Actual Amount (in thousands) | Actual Ratio | Minimum for Adequacy | Minimum for Well Capitalized | | :------------------------ | :--------------------------- | :----------- | :------------------- | :--------------------------- | | Total Capital | $666,928 | 13.8% | 8.0% | 10.0% | | Tier 1 Capital | $625,176 | 12.9% | 6.0% | 8.0% | | Common Equity Tier 1 Capital | $625,176 | 12.9% | 4.5% | 6.5% | | Tier 1 Capital (to Total Average Assets) | $625,176 | 12.5% | 4.0% | 5.0% | [Note 11 – Earnings Per Share ("EPS")](index=30&type=section&id=Note%2011%20%E2%80%93%20Earnings%20Per%20Share%20%28%22EPS%22%29) This note presents the calculation of basic and diluted earnings per share | EPS Calculation (in thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income applicable to common shares | $12,655 | $8,701 | | Average number of common shares outstanding used to calculate basic EPS | 38,755,746 | 39,689,644 | | Basic and diluted EPS | $0.33 | $0.22 | - **Basic and diluted EPS** increased to **$0.33** for Q1 2025 from **$0.22** for Q1 2024, reflecting the higher net income and a decrease in weighted average common shares outstanding[143](index=143&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and operating results for the three months ended March 31, 2025, compared to the prior year. It covers key balance sheet changes, income statement performance, critical accounting policies, non-GAAP financial measures, and an analysis of liquidity and capital resources, highlighting factors influencing financial performance and future outlook [General](index=30&type=section&id=General) This section provides an overview and context for understanding the financial condition and operating results - This section aims to assist in understanding the financial condition and results of operations for the three months ended March 31, 2025 and 2024, and should be read with the unaudited financial statements[144](index=144&type=chunk) [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=31&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section warns readers about the inherent uncertainties and risks associated with forward-looking statements - The report contains forward-looking statements regarding goals, business plans, loan portfolio quality, and future costs/benefits, which are subject to significant business, economic, and competitive uncertainties[146](index=146&type=chunk) - Actual future results may differ materially due to factors such as economic weakening, inflationary pressures, financial market volatility, interest rate changes, loan delinquencies, regulatory changes, and technological shifts[147](index=147&type=chunk)[149](index=149&type=chunk) [Critical Accounting Policies](index=32&type=section&id=Critical%20Accounting%20Policies) This section highlights the accounting policies that require significant judgment and estimation by management - 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[150](index=150&type=chunk) - Key critical accounting policies include the Allowance for Credit Losses (CECL methodology, collective and individual assessments), Income Taxes (liability method, deferred tax assets/liabilities, valuation allowance), and Securities Valuation (available-for-sale securities at fair value, impairment assessment)[151](index=151&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP financial measures and their reconciliation to GAAP equivalents - The Company presents non-GAAP financial measures, such as operating net income and tangible book value per share, which management believes are useful for investors and regulators to evaluate financial condition, but these should not substitute GAAP results[161](index=161&type=chunk)[163](index=163&type=chunk) | Non-GAAP Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :----------------------------- | :------------- | :---------------- | | Total tangible shareholders' equity | $738,569 | $764,088 | | Total tangible assets | $5,241,115 | $5,156,658 | | Tangible shareholders' equity / tangible assets | 14.09% | 14.82% | | Tangible book value per share | $18.20 | $17.89 | | Operating Performance (Non-GAAP, in thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Operating net income | $13,693 | $8,980 | | Operating earnings per share, basic | $0.35 | $0.23 | | Operating return on average assets | 1.08% | 0.80% | | Operating return on average shareholders' equity | 7.33% | 4.92% | | Operating efficiency ratio | 57.91% | 59.75% | [Comparison of Financial Condition as of March 31, 2025 and December 31, 2024](index=34&type=section&id=Comparison%20of%20Financial%20Condition%20as%20of%20March%2031%2C%202025%20and%20December%2031%2C%202024) This section analyzes changes in the company's balance sheet items between the two reporting dates - **Total assets** increased by **$84.4 million** (1.6%) to **$5.24 billion**, primarily due to growth in net loans, partially offset by a decrease in cash and cash equivalents[165](index=165&type=chunk) - **Cash and cash equivalents** decreased by **$50.4 million** (13.9%) to **$313.4 million**, mainly due to loan originations and FHLB borrowing paydowns[166](index=166&type=chunk) - **Net loans** grew by **$131.8 million** (3.1%) to **$4.43 billion**, driven by increases in construction and development loans (10.7%), commercial and industrial loans (8.9%), and commercial real estate loans (0.9%)[170](index=170&type=chunk) - **Deposits** increased by **$149.0 million** (3.6%) to **$4.33 billion**, with core deposits rising by **$149.5 million** (3.9%), primarily from money market accounts and certificates of deposit[173](index=173&type=chunk) - **FHLB borrowings** decreased by **$30.0 million** (24.8%) to **$90.8 million**, attributed to overall deposit growth[174](index=174&type=chunk) [Comparison of Operating Results for the Three Months Ended March 31, 2025 and March 31, 2024](index=35&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%20March%2031%2C%202024) This section compares the company's income statement performance for the current and prior year quarters - **Net income** increased by **$4.0 million** (45.4%) to **$12.7 million**, while **operating net income** (excluding one-time charges) rose by **$4.7 million** (52.5%) to **$13.7 million**[177](index=177&type=chunk)[179](index=179&type=chunk) - **Interest and dividend income** increased by **$8.7 million** (12.7%) to **$76.9 million**, driven by a **$7.4 million** increase in interest and fees on loans due to portfolio growth and a **$1.0 million** increase in interest on securities from higher yields and average balances[179](index=179&type=chunk) - **Total interest expense** increased by **$3.8 million** (12.7%) to **$33.3 million**, primarily due to a **$4.0 million** increase in interest on deposit accounts from higher average balances in certificates of deposit and money market accounts[181](index=181&type=chunk) - **Net interest income** increased by **$4.9 million** (12.7%) to **$43.5 million**, benefiting from a **$591.6 million** increase in average interest-earning assets and a **17 basis point** decrease in the weighted average rate on interest-bearing liabilities[182](index=182&type=chunk) - **Noninterest income** increased by **$360,000** (10.3%) to **$3.9 million**, mainly due to higher customer service fees and an increase in the cash surrender value of BOLI, partially offset by decreases in other income and swap contract fees[185](index=185&type=chunk) - **Noninterest expense** increased by **$3.1 million** (12.1%) to **$28.7 million**, primarily due to higher salaries and employee benefits (including a one-time pension expense), increased data processing expenses, and higher FDIC and state insurance assessments[186](index=186&type=chunk) [Average Balances and Yields](index=38&type=section&id=Average%20Balances%20and%20Yields) This section presents average balances of interest-earning assets and interest-bearing liabilities, along with their respective yields and rates | Metric | March 31, 2025 | March 31, 2024 | | :-------------------------------- | :------------- | :------------- | | Average Outstanding Balance (Interest-earning assets) | $4,888,611 | $4,296,999 | | Average Yield (Interest-earning assets) | 6.38% | 6.38% | | Average Outstanding Balance (Interest-bearing liabilities) | $3,727,613 | $3,125,897 | | Average Rate (Interest-bearing liabilities) | 3.63% | 3.80% | | Net interest rate spread | 2.75% | 2.58% | | Net interest margin | 3.61% | 3.62% | - **Average interest-earning assets** increased by **$591.6 million** to **$4.89 billion**, while the yield remained stable at **6.38%**. The **net interest rate spread** improved to **2.75%** from **2.58%**, despite a slight decrease in **net interest margin** to **3.61%**[189](index=189&type=chunk)[180](index=180&type=chunk)[182](index=182&type=chunk) [Rate/Volume Analysis](index=39&type=section&id=Rate%2FVolume%20Analysis) This section breaks down the changes in net interest income into components attributable to changes in interest rates and volumes | Change in Net Interest Income (in thousands) | Due to Volume | Due to Rate | Total Change | | :------------------------------------------- | :------------ | :---------- | :----------- | | Interest-earning assets | $8,642 | $16 | $8,658 | | Interest-bearing liabilities | $5,229 | $(1,464) | $3,765 | | Change in net interest income | $3,413 | $1,480 | $4,893 | - The **$4.9 million** increase in net interest income was primarily driven by volume changes (**$3.4 million**) in both interest-earning assets and interest-bearing liabilities, with a positive contribution from rate changes (**$1.5 million**)[193](index=193&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its financial obligations and its capital adequacy - The Company's primary liquidity sources include deposits, loan/security payments, and borrowings from FHLB and FRB. As of March 31, 2025, it had **$90.8 million** in FHLB advances and **$754.3 million** in unused borrowing capacity, plus **$651.2 million** available from the FRB's BIC program[194](index=194&type=chunk) - Non-brokered certificates of deposit due within one year totaled **$1.54 billion**, representing **35.6%** of total deposits. The Company anticipates retaining a significant portion of these maturing deposits[198](index=198&type=chunk) - The Company maintains a **strong liquidity position**, continuously monitoring and modeling stress scenarios to assess potential outflows and funding problems, and expects to meet current funding commitments[202](index=202&type=chunk) - Both Needham Bank and NB Bancorp, Inc. exceeded all regulatory capital requirements and were categorized as **well-capitalized** as of March 31, 2025[203](index=203&type=chunk) [Impact of Inflation and Changing Prices](index=40&type=section&id=Impact%20of%20Inflation%20and%20Changing%20Prices) This section addresses the potential effects of inflation and interest rate changes on the company's financial performance - The financial statements are prepared using historical dollars, not accounting for inflation. For financial institutions, interest rates have a more significant impact on performance than inflation, as most assets and liabilities are monetary[204](index=204&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable as the Registrant is an emerging growth company - The Registrant, as an emerging growth company, is not required to provide quantitative and qualitative disclosures about market risk[205](index=205&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and internal controls over financial reporting - The Company's disclosure controls and procedures were evaluated and deemed **effective** as of March 31, 2025[207](index=207&type=chunk) - No material changes in internal controls over financial reporting occurred during the quarter ended March 31, 2025[208](index=208&type=chunk) Part II. Other Information This part covers legal proceedings, risk factors, equity security sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section describes any material legal actions or proceedings involving the company - Legal actions arising in the normal course of business are not expected to materially adversely affect the Company's financial condition or results of operations[210](index=210&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section outlines the significant risks and uncertainties that could materially affect the company's business and financial results - No material changes to risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024[211](index=211&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details any unregistered sales of equity securities and the company's share repurchase activities | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :------------------------ | :----------------------------- | :--------------------------- | | January 1 - January 31, 2025 | 246,285 | $19.33 | | February 1 - February 28, 2025 | 656,303 | $19.34 | | March 1 - March 31, 2025 | 1,232,698 | $18.86 | | Total | 2,135,286 | $19.06 | - The Company completed its **stock repurchase program** on March 28, 2025, purchasing a total of **2,135,286 shares**, representing **5%** of outstanding common stock[213](index=213&type=chunk) [Item 3. Defaults upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section reports on any defaults concerning the company's senior securities - No defaults upon senior securities occurred[214](index=214&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section confirms the non-applicability of mine safety disclosures to the company - Mine Safety Disclosures are not applicable to the Company[215](index=215&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) This section provides disclosures on other material information not covered elsewhere, such as Rule 10b5-1 trading arrangements - No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter[216](index=216&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all documents filed as exhibits to the report, including certifications - Exhibits include CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley Act) and various XBRL taxonomy documents[217](index=217&type=chunk) [SIGNATURES](index=43&type=section&id=SIGNATURES) This section contains the official signatures of the company's authorized officers, certifying the report's accuracy - The report was signed by Joseph Campanelli, Chairman, President and CEO, and Jean-Pierre Lapointe, EVP and CFO, on May 9, 2025[221](index=221&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 rising trend in earnings estimate revisions reflects growing analyst optimism, which is expected to positively impact the stock price [2]. - For the current quarter, the earnings estimate is $0.35 per share, representing a +45.83% change from the previous year [6]. - The Zacks Consensus Estimate for the current quarter has increased by 6.06% over the last 30 days, with one estimate raised and no negative revisions [6]. - For the full year, the expected earnings are $1.48 per share, indicating a +29.82% change from the prior year [7]. - There has been a positive trend in estimate revisions for the current year, with one estimate moving up and no negative revisions [7]. Zacks Rank - The favorable estimate revisions have led to a Zacks Rank 1 (Strong Buy) for NB Bancorp, Inc., indicating strong potential for outperformance [8]. - Stocks with Zacks Rank 1 and 2 have historically outperformed the S&P 500 [8]. Stock Performance - NB Bancorp, Inc. shares have increased by 9% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [9].

Core Viewpoint - NB Bancorp, Inc. (NBBK) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock price movements [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value [4][5]. Recent Performance of NB Bancorp, Inc. - NB Bancorp, Inc. is projected to earn $1.48 per share for the fiscal year ending December 2025, representing a year-over-year increase of 29.8% [8]. - Over the past three months, the Zacks Consensus Estimate for NB Bancorp has increased by 6.5%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].