NB Bancorp(US:NBBK)2025-07-23 20:31Financial 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]