NB Bancorp(NBBK) - 2025 Q3 - Quarterly Report

Financial Performance - Net income (GAAP) for the three months ended September 30, 2025, was $15.362 million, compared to $8.383 million for the same period in 2024, representing an increase of 83.5%[156] - Operating net income (non-GAAP) for the nine months ended September 30, 2025, was $44.741 million, up from $31.918 million in 2024, reflecting a growth of 40.2%[157] - Net income for the quarter ended September 30, 2025, was $15.4 million, an increase of approximately $7.0 million, or 83.3%, compared to $8.4 million for the same quarter in 2024[168] - Net income for the nine months ended September 30, 2025, was $42.6 million, an increase of approximately $16.1 million, or 60.5%, compared to the same period in 2024[187] Revenue and Income Sources - Total revenue (non-GAAP) for the nine months ended September 30, 2025, reached $150.298 million, compared to $128.296 million in 2024, an increase of 17.2%[157] - Noninterest income (GAAP) for the three months ended September 30, 2025, was $3.551 million, compared to $1.265 million in 2024, indicating a significant increase of 80.5%[157] - Noninterest income surged by $2.3 million, or 180.7%, to $3.6 million for the quarter ended September 30, 2025, primarily due to a loss on securities in the prior year[176] - Interest and dividend income rose by $23.1 million, or 10.7%, to $238.4 million for the nine months ended September 30, 2025, driven by a $23.7 million increase in interest and fees on loans[189] - Noninterest income increased by $3.8 million, or 49.6%, to $11.6 million for the nine months ended September 30, 2025, mainly from higher customer service fees and a reduction in losses on securities[196] Assets and Liabilities - Total assets increased by $284.7 million, or 5.5%, to $5.44 billion as of September 30, 2025, from $5.16 billion as of December 31, 2024[158] - Net loans increased by $378.7 million, or 8.8%, to $4.67 billion as of September 30, 2025, driven by increases in multi-family residential loans (29.2%) and commercial and industrial loans (16.4%)[161] - Total deposits rose by $388.0 million, or 9.3%, to $4.57 billion as of September 30, 2025, with core deposits increasing by $309.1 million, or 8.0%[165] - Average interest-earning assets increased by $375.0 million, or 8.0%, to $5.06 billion for the quarter ended September 30, 2025[170] - The average balance of the loan portfolio increased by $460.3 million, or 11.4%, to $4.49 billion for the nine months ended September 30, 2025[189] Expenses - Total noninterest expense increased by $5.8 million, or 23.52%, to $30.4 million for the quarter ended September 30, 2025[180] - Noninterest expense increased by $12.0 million, or 15.7%, to $88.3 million for the nine months ended September 30, 2025, with significant increases in salaries and employee benefits and data processing expenses[198] - Salaries and employee benefit expenses increased by $1.4 million, or 8.4%, primarily due to headcount increases and performance-related bonuses[179] - General and administrative expenses surged by $1.4 million, or 1,174.8%, attributed to the election of the proportional amortization method for solar income tax credit investments[180] Credit and Tax - The provision for credit losses was $1.4 million for the quarter ended September 30, 2025, down from $2.6 million in the same quarter of 2024[175] - Provision for credit losses decreased to $5.7 million for the nine months ended September 30, 2025, down from $10.7 million in the same period in 2024, reflecting improved credit quality[193] - The effective tax rate decreased to 23.0% for the quarter ended September 30, 2025, down from 45.5% in 2024[180] - The effective tax rate decreased to 24.3% for the nine months ended September 30, 2025, compared to 32.5% for the same period in 2024, primarily due to one-time tax expenses in the prior year[199] Capital and Borrowing - Total shareholders' equity decreased by $28.1 million, or 3.7%, to $737.0 million as of September 30, 2025, primarily due to a decrease in additional paid-in capital[167] - FHLB borrowings decreased by $79.4 million, or 65.7%, to $41.5 million as of September 30, 2025, reflecting overall deposit growth[166] - The company had unused borrowing capacity of $816.3 million with the Federal Home Loan Bank as of September 30, 2025[205] - The company exceeded all regulatory capital requirements and was categorized as well-capitalized as of September 30, 2025[214]