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]
NB Bancorp(NBBK) - 2024 Q3 - Quarterly Report