NB Bancorp, Inc. (NBBK) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ear ...

NB Bancorp, Inc. (NBBK) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.S ...

Company Performance - NB Bancorp, Inc. reported quarterly earnings of $0.35 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.23 per share a year ago [1] - The company posted revenues of $47.39 million for the quarter, exceeding the Zacks Consensus Estimate by 6.49%, compared to $42.13 million in the same quarter last year [2] - Over the last four quarters, NB Bancorp has surpassed consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Market Comparison - Since the beginning of the year, NB Bancorp shares have declined by approximately 9.8%, while the S&P 500 has seen a decline of 12.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $45.9 million, and for the current fiscal year, it is $1.39 on revenues of $185.5 million [7] - The Zacks Rank for NB Bancorp is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Banks - Northeast industry, to which NB Bancorp belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

NB Bancorp, Inc. Reports First Quarter 2025 Financial Results Exhibit 99.1 Investor Contact JP Lapointe, EVP and CFO IR@NeedhamBank.com 781-474-5408 Needham, MA, April 22, 2025 – NB Bancorp, Inc. (the "Company") (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the "Bank"), today announced its first quarter 2025 financial results. The Company reported net income of $12.7 million, or $0.33 per diluted common share, compared to net income of $15.6 million, or $0.40 per diluted common share, ...

Economic Conditions and Risks - Changes in interest rates may negatively impact the ability to originate real estate loans and realize gains from asset sales, affecting overall earnings[295]. - A deterioration in local economic conditions could lead to increased loan delinquencies and adversely affect financial performance[299]. - The company faces risks from potential downgrades of U.S. government securities, which could impact funding and collateral requirements[309]. - The reliance on wholesale funding strategies may adversely affect net interest margin and profitability if core deposits cannot be generated[312]. - The company’s exposure to economic conditions is heightened due to a high concentration of loans secured by real estate in its primary market area[301]. - The financial services industry is interrelated, and defaults or concerns about other institutions could lead to market-wide liquidity problems[311]. - The Federal Reserve Board's monetary policies could adversely affect the company's financial condition and results of operations[325]. Financial Performance and Growth - Total assets increased to $5,157,737 thousand as of December 31, 2024, up from $4,533,391 thousand in 2023, representing a growth of 13.9%[519]. - Net loans rose to $4,294,408 thousand in 2024, compared to $3,857,057 thousand in 2023, marking an increase of 11.3%[519]. - Total deposits grew to $4,177,652 thousand in 2024, up from $3,387,327 thousand in 2023, reflecting a 23.3% increase[519]. - Net interest income after provision for credit losses reached $149,075 thousand in 2024, compared to $117,836 thousand in 2023, an increase of 26.5%[522]. - Net income surged to $42,149 thousand in 2024, a significant increase from $9,825 thousand in 2023, representing a growth of 328.5%[522]. - Earnings per share (basic and diluted) increased to $1.07 in 2024, compared to $0.23 in 2023, reflecting a growth of 365.2%[522]. - Total comprehensive income for 2024 was $45,879 thousand, compared to $12,329 thousand in 2023, indicating a growth of 272.5%[525]. Regulatory and Compliance Issues - Regulatory changes and compliance costs may adversely affect operations and increase operational costs[317]. - The company is subject to stringent capital requirements, including a common equity Tier 1 capital ratio of 4.5% and a total capital ratio of 8.0%[327]. - The capital conservation buffer is set at 2.5%, resulting in minimum ratios of 7.0% for common equity Tier 1 capital and 10.5% for total capital[327]. - The company may face regulatory actions if unable to comply with capital requirements, potentially leading to lower returns on equity[329]. - Non-compliance with anti-money laundering laws could result in fines, penalties, and restrictions on business activities[324]. Operational and Technological Risks - The company relies on technology for operations, making it vulnerable to failures, interruptions, or security breaches[346]. - The introduction of new products and services may impose additional costs and expose the company to operational risks, including fraud and cybersecurity threats[343]. - The company has established policies and procedures to prevent or limit the impact of system failures, interruptions, and security breaches, including privacy breaches and cyber-attacks[347]. - The company outsources a majority of its data processing requirements to third-party providers, exposing it to risks if these vendors do not perform according to contractual agreements[349]. - The company became a public reporting company following its initial public offering in December 2023, which will increase operating expenses and require additional compliance and accounting staff[355]. - The company may face challenges in maintaining effective internal controls as a public company, which could adversely affect its business and stock price[355]. Investment and Securities - The company has approximately $331.6 million in cannabis-related direct deposits as of December 31, 2024, which are core deposits[313]. - The company has experienced significant unrealized valuation gains of $4.9 million on AFS securities during the year ended December 31, 2024[307]. - Unrealized losses on AFS securities due to market conditions could require recognition of impairments, adversely affecting future results[306]. - The company held 242,844 shares of Federal Reserve Bank stock valued at approximately $12.1 million as of December 31, 2024, an increase from 206,450 shares valued at approximately $10.3 million as of December 31, 2023[616]. - The company’s investment in the Reinventure Capital Fund increased to a carrying value of $1.8 million as of December 31, 2024, following additional capital calls of $318,000[619]. - The company does not intend to sell any of its securities prior to the recovery of the amortized cost, as declines in fair value are attributed to market changes in interest rates[613]. Loan Portfolio and Credit Losses - The allowance for credit losses increased to $38,744 thousand in 2024 from $32,222 thousand in 2023, reflecting a rise of 20.0%[519]. - The total amortized cost of nonaccrual loans increased from $10,798,000 in 2023 to $13,856,000 in 2024, indicating a rise of approximately 28.5%[641]. - The company reversed $498,000 of interest income for non-accrual loans in 2024, compared to $116,000 in 2023, showing a significant increase in interest reversals[641]. - The total amount of consumer loans as of December 31, 2024, was $244,558,000, up from $204,871,000 in 2023, marking an increase of about 19.4%[640]. - The aging of loans receivable shows that current loans totaled $4,305,967,000 in 2024, compared to $3,873,400,000 in 2023, reflecting a growth of approximately 11.1%[640]. Revenue and Expenses - The Company reported total revenues from contracts with customers of $7,784,000 for the year ended December 31, 2024, compared to $7,592,000 in 2023, reflecting a year-over-year increase of 2.5%[586]. - ATM and interchange income increased to $1,978,000 in 2024 from $1,334,000 in 2023, representing a growth of 48.4%[586]. - Non-sufficient funds (NSF) and overdraft fees rose to $614,000 in 2024, up from $527,000 in 2023, marking a 16.5% increase[586]. - The Company’s advertising expenses were $3.0 million, $2.7 million, and $2.3 million for the years ended December 31, 2024, 2023, and 2022, respectively, indicating a consistent increase in marketing efforts[599]. - Total noninterest expense decreased to $101,989 thousand in 2024 from $121,344 thousand in 2023, a reduction of 15.9%[522].

Core Viewpoint - NB Bancorp, Inc. (NBBK) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates indicate an improvement in the company's underlying business, suggesting that investors may respond positively by pushing the stock price higher [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) 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, while the next 15% receive a 'Buy' rating, indicating that a stock in the top 20% has superior earnings estimate revision features [9][10]. Earnings Estimate Revisions for NB Bancorp, Inc. - NB Bancorp, Inc. is projected to earn $1.39 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 21.9% [8]. - Over the past three months, the Zacks Consensus Estimate for NB Bancorp, Inc. has increased by 21.9%, indicating a positive trend in earnings estimates [8].

Financial Performance - Net income for Q4 2024 was $15.6 million, or $0.40 per diluted share, up from $8.4 million, or $0.21 per diluted share in the prior quarter[1]. - Operating net income, excluding one-time charges, was $13.3 million, or $0.34 per diluted share, compared to $13.1 million, or $0.33 per diluted share in the prior quarter[5]. - Net income for Q4 2024 was $15,611,000, compared to $8,383,000 in Q3 2024 and a loss of $13,617,000 in Q4 2023[22]. - Operating net income (non-GAAP) for Q4 2024 was $13,261,000, slightly up from $13,116,000 in Q3 2024 and significantly higher than $10,880,000 in Q4 2023[22]. - Net income for the quarter was $15,611,000, an 86.2% increase from the previous quarter and a 214.6% increase year-over-year[24]. - Earnings per share (basic and diluted) improved to $0.40, an 86.2% increase from the previous quarter and a 222.6% increase year-over-year[24]. Revenue and Income Sources - Total revenue increased to $46,302,000 in Q4 2024, a rise of 6.3% from $42,589,000 in Q3 2024 and 20.2% from $38,530,000 in Q4 2023[22]. - Noninterest income rose to $3.8 million, a significant increase of $2.5 million, or 198.9%, from the prior quarter[9]. - Total noninterest income surged to $3,781,000, a 198.9% increase from the previous quarter and a 16.3% increase year-over-year[24]. - Total interest and dividend income increased to $77,200,000, up 1.6% from the previous quarter and up 20.1% year-over-year[24]. Assets and Deposits - Total assets reached $5.16 billion, an increase of $155.3 million, or 3.1%, from September 30, 2024[6]. - Total assets reached $5,157,737,000 as of December 31, 2024, reflecting a 3.1% increase from $5,002,394,000 in Q3 2024 and a 13.8% increase from $4,533,391,000 in Q4 2023[23]. - Total deposits increased by $135.0 million, or 3.3%, from the prior quarter, with core deposits rising by $154.9 million, or 4.2%[8]. - Total deposits grew to $4,177,652,000, up 3.3% from $4,042,654,000 in Q3 2024 and 23.3% from $3,387,327,000 in Q4 2023[23]. Loans and Credit Quality - Gross loans increased by $84.1 million, or 2.0%, to $4.33 billion from $4.25 billion in the prior quarter[5]. - Total loans increased to $4,333,152,000, a 2.0% rise from $4,249,074,000 in Q3 2024 and an 11.4% increase from $3,889,279,000 in Q4 2023[23]. - Non-performing loans decreased by $2.2 million, or 13.5%, to $13.9 million from $16.0 million in the prior quarter[15]. - Non-performing loans to total loans ratio is 0.32% as of December 31, 2024, compared to 0.38% in the previous quarter[32]. - The allowance for credit losses was $38.7 million, or 0.89% of total gross loans, unchanged from the prior quarter[15]. - The allowance for credit losses increased to $38,744,000, up 3.0% from $37,605,000 in Q3 2024 and 20.2% from $32,222,000 in Q4 2023[23]. Efficiency and Ratios - The efficiency ratio improved to 55.34% in Q4 2024, down from 57.73% in Q3 2024 and significantly better than 137.00% in Q4 2023[22]. - Return on average assets for Q4 2024 was 1.23%, compared to 0.68% in Q3 2024 and a loss of 1.25% in Q4 2023[22]. - The allowance to non-performing loans ratio improved to 279.6%, up from 234.9% in the previous quarter[33]. - The allowance to total loans outstanding remained stable at 0.89% for both the current and previous quarter, compared to 0.83% a year ago[33]. Shareholder Returns - The company announced a share repurchase program for up to 2,135,286 shares, representing approximately 5.0% of the outstanding shares[3]. - Tangible book value per share (non-GAAP) is $17.89 as of December 31, 2024, up from $17.48 in the previous quarter[31].

Core Insights - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that confirming sound fundamentals and positive earnings estimates is crucial for maintaining momentum in stocks [1][2]. Group 1: Stock Performance - NB Bancorp, Inc. (NBBK) has shown a solid price increase of 7.1% over the past 12 weeks, indicating investor confidence in its potential upside [3]. - The stock has also experienced a price increase of 7.7% over the last four weeks, suggesting that the upward trend is still intact [4]. - NBBK is currently trading at 87.3% of its 52-week high-low range, indicating a potential breakout opportunity [4]. Group 2: Fundamental Strength - NBBK holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [5][6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like NBBK that are on an uptrend supported by strong fundamentals [2][7]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [7].

Financial Performance - Net income for the three months ended September 30, 2024, was $8,383 million, a slight decrease from $8,467 million in the same period of 2023[156] - Operating net income (non-GAAP) for the three months ended September 30, 2024, was $13,116 million, compared to $8,467 million in the same period of 2023, representing a significant increase[156] - Net income for the quarter ended September 30, 2024, was $8.4 million, a decrease of approximately $84,000, or 1.0%, compared to $8.5 million for the same quarter in 2023[169] - Operating net income, excluding one-time charges, amounted to $13.1 million, or $0.33 per diluted share for the quarter ended September 30, 2024, an increase of $4.6 million, or 54.9%[171] - Net income for the nine months ended September 30, 2024, was $26.5 million, an increase of approximately $3.1 million, or 13.2%, compared to $23.4 million for the same period in 2023[184] Income and Expenses - Noninterest expense (GAAP) for the three months ended September 30, 2024, was $24,586 million, up from $23,088 million in the same period of 2023[156] - Noninterest income (GAAP) for the three months ended September 30, 2024, was $1,265 million, down from $3,138 million in the same period of 2023[156] - Total interest expense increased by $8.6 million, or 32.8%, to $34.7 million for the quarter ended September 30, 2024, from $26.1 million for the same quarter in 2023[172] - Noninterest income decreased by $1.9 million, or 59.7%, to $1.3 million for the quarter ended September 30, 2024, down from $3.1 million in the prior year[176] - Noninterest expense increased by $1.5 million, or 6.5%, to $24.6 million for the quarter ended September 30, 2024, compared to $23.1 million for the same quarter in 2023[176] - Noninterest income decreased by $4.4 million, or 36.0%, to $7.8 million for the nine months ended September 30, 2024, from $12.1 million for the same period in 2023[192] - Noninterest expense increased by $7.9 million, or 11.6%, to $76.4 million for the nine months ended September 30, 2024, from $68.5 million for the same period in 2023[192] Assets and Liabilities - Total assets increased by $469.1 million, or 10.3%, to $5.00 billion as of September 30, 2024, from $4.53 billion as of December 31, 2023[168] - Cash and cash equivalents rose by $44.5 million, or 16.3%, to $317.0 million as of September 30, 2024, from $272.6 million as of December 31, 2023[159] - Net loans increased by $354.4 million, or 9.2%, to $4.21 billion as of September 30, 2024, from $3.86 billion as of December 31, 2023[161] - Deposits grew by $655.5 million, or 19.4%, to $4.04 billion as of September 30, 2024, from $3.39 billion as of December 31, 2023[168] - Total assets increased to $4.89 billion as of September 30, 2024, from $4.13 billion in the prior year[180] - Total interest-bearing liabilities rose to $3.34 billion for the quarter ended September 30, 2024, compared to $3.11 billion in the same quarter of 2023[180] Returns and Margins - Operating return on average assets (non-GAAP) improved to 1.07% for the three months ended September 30, 2024, compared to 0.81% in the same period of 2023[156] - Operating return on average shareholders' equity (non-GAAP) decreased to 6.91% for the three months ended September 30, 2024, from 9.24% in the same period of 2023[156] - The net interest margin improved to 3.51% for the quarter ended September 30, 2024, compared to 3.36% for the same quarter in 2023[180] - The net interest margin improved to 3.53% for the nine months ended September 30, 2024, compared to 3.51% for the same period in 2023[196] Taxation - Income tax expense rose by $3.9 million, or 125.6%, to $7.0 million for the quarter ended September 30, 2024, from $3.1 million in the prior year[179] - The effective tax rate increased to 45.5% for the quarter ended September 30, 2024, compared to 26.8% for the same quarter in 2023[179] - Income tax expense increased by $4.2 million, or 49.6%, to $12.8 million for the nine months ended September 30, 2024, with an effective tax rate of 32.5%[194] Operational Challenges - The company continues to face uncertainties including inflationary pressures and changes in the interest rate environment that could impact future performance[142] - The primary impact of inflation on operations is reflected in increased operating costs, with interest rates having a more significant impact on performance than inflation[210] Regulatory and Compliance - As of September 30, 2024, Needham Bank and NB Bancorp, Inc. exceeded all regulatory capital requirements and were categorized as well-capitalized[209] - There have been no changes in the company's internal controls over financial reporting that materially affected the company's internal control[213] - Management believes that the resolution of various legal actions will not have a material adverse effect on the company's financial condition or results of operations[214]

Core Insights - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that successful entry into trends is crucial for profitability [1][2] Group 1: Stock Performance - NBB Bancorp, Inc. (NBBK) has shown a solid price increase of 7.9% over the past 12 weeks, indicating investor confidence in its potential upside [4] - The stock has also increased by 6.4% in the last four weeks, suggesting that the upward trend is still intact [5] - NBBK is currently trading at 91.2% of its 52-week high-low range, indicating a potential breakout opportunity [5] Group 2: Fundamental Strength - NBBK holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting strong optimism from the brokerage community regarding its near-term price performance [7] Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors seeking stocks with upward momentum supported by strong fundamentals [3] - The article suggests that there are multiple stocks passing through this screen, indicating a broader opportunity for trend investing [8]