NB Bancorp(US:NBBK)2025-10-22 20:30Financial Performance - Net income for Q3 2025 was $15.4 million, or $0.43 per diluted common share, an increase from $14.6 million, or $0.39 per diluted common share in the prior quarter[1][4] - Operating net income, excluding one-time charges, was $16.0 million, or $0.45 per diluted common share, compared to $15.0 million, or $0.40 per diluted common share in the prior quarter[1][4] - Net income for the current quarter was $15,362 thousand, compared to $14,579 thousand in the previous quarter and $8,383 thousand a year ago[23] - Net income for Q3 2025 was $15,362,000, an increase of 5.4% from $14,579,000 in Q2 2025 and a significant increase from $8,383,000 in Q3 2024[31] - Operating net income (non-GAAP) for Q3 2025 reached $16,002,000, up 6.4% from $15,043,000 in Q2 2025 and 22.5% from $13,116,000 in Q3 2024[31] - Earnings per share (diluted) increased to $0.43, up 10.3% from the previous quarter and 104.8% year-over-year[26] - Operating earnings per share (non-GAAP) for Q3 2025 was $0.45, an increase from $0.40 in Q2 2025 and $0.33 in Q3 2024[31] Revenue and Income Sources - Total revenue for the current quarter was $51,726 thousand, slightly up from $51,185 thousand in the prior quarter and significantly higher than $42,589 thousand a year ago[23] - Total revenue for Q3 2025 was $51,726,000, compared to $51,185,000 in Q2 2025 and $44,457,000 in Q3 2024, reflecting a year-over-year growth of 16.4%[31] - Net interest income was $48.2 million, a 2.5% increase from $47.0 million in the prior quarter, although net interest margin declined by 4 basis points to 3.78%[7][10] - Net interest income increased to $48,175 thousand for the three months ended September 30, 2025, up from $47,007 thousand in the previous quarter and $41,324 thousand a year ago[23] - Noninterest income was $3.6 million, down by $627 thousand, or 15.0%, from the prior quarter[9] - Noninterest income totaled $3,551, a decrease of 15.0% from the previous quarter but an increase of 180.7% year-over-year[26] Asset and Liability Management - Total assets increased by $215.8 million, or 4.1%, to $5.44 billion as of September 30, 2025[5] - Total assets increased to $5,442,390 thousand as of September 30, 2025, up from $5,226,554 thousand in the previous quarter[23] - Total assets increased to $5,442,390, up 4.1% from the previous quarter and 8.8% year-over-year[24] - Total liabilities increased to $4,542,456 thousand, with shareholders' equity at $729,979 thousand[28] Loan and Deposit Growth - Gross loans rose by $175.0 million, or 3.9%, to $4.72 billion, while total deposits increased by $297.6 million, or 7.0%, to $4.57 billion[6][10] - Total deposits rose to $4,565,664, a 7.0% increase from the previous quarter and a 12.9% increase year-over-year[24] - Core deposits increased to $4,176,991, reflecting a 4.1% increase from the previous quarter and a 12.5% increase year-over-year[24] - Brokered deposits surged to $388,673, a significant 52.9% increase from the previous quarter[24] Credit Quality and Loss Provisions - Provision for credit losses decreased by $1.8 million, or 55.8%, to $1.4 million for the current quarter[8] - Provision for credit losses decreased to $1,396, down 55.8% from the previous quarter and 46.8% year-over-year[26] - The allowance for credit losses was $43.1 million, or 0.91% of total loans, compared to $42.6 million, or 0.94% of total loans at the end of the prior quarter[16] - The allowance for credit losses (ACL) was $43,052 thousand, representing 379.1% of total non-performing loans[23] - Non-performing loans decreased to $11.4 million as of September 30, 2025, down $1.1 million or 9.0% from the previous quarter[20] - Total non-performing loans decreased to $11,357,000 in Q3 2025 from $12,478,000 in Q2 2025 and $16,012,000 in Q3 2024, indicating improved asset quality[32] - Total net charge-offs for the current quarter were $590 thousand, representing 0.05% of average total loans on an annualized basis, compared to a net recovery of $19 thousand in the prior quarter[20] Efficiency and Returns - Return on average assets improved to 1.16% for the current quarter, compared to 1.13% in the previous quarter and 0.68% a year ago[23] - The efficiency ratio for the current quarter was 58.71%, slightly higher than 57.25% in the prior quarter[23] - The operating efficiency ratio (non-GAAP) was 58.22% in Q3 2025, compared to 56.22% in Q2 2025 and 57.36% in Q3 2024, indicating a slight decline in efficiency[31] - The net interest rate spread was 2.95%, slightly down from 2.96% in the previous quarter[28]