NB Bancorp(NBBK) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $8.4 million, or$ 0.21 per diluted share, down from $9.5 million, or$ 0.24 per diluted share in the prior quarter; operating net income, excluding one-time charges, was $13.1 million, or$ 0.33 per diluted share [2]. - The company reported an operating net income of $13.1 million for the quarter, compared to$ 9.9 million in the previous quarter [19]. - Net income decreased by 11.3% to $8,383 thousand compared to$ 9,453 thousand in the previous quarter [22]. - Earnings per share (basic) declined by 11.3% to $0.21 from$ 0.24 [22]. - Income before taxes increased by 30.1% to $15,380 thousand from$ 11,822 thousand [22]. - Operating return on average assets (non-GAAP) improved to 1.07% in Q3 2024, compared to 0.84% in Q2 2024 and 0.81% in Q3 2023 [30]. Loan and Deposit Growth - Gross loans increased by $151.8 million, or 3.7%, to$ 4.25 billion from the prior quarter; net loans rose to $4.21 billion, reflecting a$ 152.0 million, or 3.7% increase [2][5]. - Total deposits increased by $124.9 million, or 3.2%, to$ 4.04 billion, driven by a $78.6 million, or 4.9% increase in customer deposits [3][5]. - Total loans grew to$ 4.25 billion, up from $4.10 billion in the prior quarter [19]. - Deposits grew to$ 4,042,817, representing a 3.2% rise from $3,917,905 [20]. Interest Income and Expenses - Net interest income rose to$ 41.3 million, an increase of $2.6 million, or 6.7%, compared to the prior quarter, primarily due to higher average loan balances and rates [6]. - Total interest and dividend income increased by 6.9% to$ 76,003 thousand compared to $71,122 thousand in the previous quarter [22]. - Interest on deposits increased by 6.4% to$ 33,612 thousand, up from $31,579 thousand [22]. - Net interest income for the three months ended September 30, 2024, was$ 41,324, compared to $38,722 for the same period last year, reflecting an increase of 4.1% [23]. - The net interest margin improved to 3.51%, up from 3.46% year-over-year, indicating better profitability on interest-earning assets [23]. Asset Quality and Credit Losses - Annualized net charge-offs increased to 0.50% of average total loans, up from 0.09% in the prior quarter; non-performing loans decreased to$ 16.0 million, or 0.38% of total loans [3]. - The allowance for credit losses (ACL) was $37.6 million as of September 30, 2024, representing 0.89% of total gross loans, a slight decrease from$ 37.9 million or 0.92% at June 30, 2024 [11]. - Total net charge-offs for the quarter were $5.2 million, or 0.50% of average total loans on an annualized basis, compared to$ 878 thousand or 0.09% in the prior quarter [11]. - The allowance for credit losses increased to $38,495, up from$ 34,735, indicating a proactive approach to risk management [23]. - Total non-performing loans to total loans ratio decreased to 0.38% in Q3 2024 from 0.51% in Q2 2024, indicating improved asset quality [32]. Capital Position - The Bank's capital position remains strong with shareholders' equity at 14.9% of total assets and tangible book value per share increasing to $17.48 [3][5]. - Total shareholders' equity (GAAP) rose to$ 747,449,000 in Q3 2024, compared to $734,312,000 in Q2 2024 and$ 365,701,000 in Q3 2023 [30]. Operational Efficiency - The efficiency ratio improved to 57.73% from 62.86% in the prior quarter, indicating better operational efficiency [19]. - Total noninterest expense decreased by 6.2% to $24,586 thousand compared to$ 26,214 thousand in the previous quarter [22].