- NB Bancorp (NBBK, Financial) reported Q1 2025 net income of $12.7 million or $0.33 per share, a decline from the previous quarter.
- Net interest margin expanded by 9 basis points to reach 3.61%.
- Deposits and net loans saw significant growth, strengthening liquidity.
NB Bancorp, Inc. (NBBK) has released its financial results for the first quarter of 2025, reporting a net income of $12.7 million or $0.33 per diluted share. This marks a decrease from the previous quarter's net income of $15.6 million or $0.40 per share. The operating net income, excluding one-time charges, increased slightly to $13.7 million or $0.35 per share.
The company's net interest margin saw a notable increase, expanding by 9 basis points to reach 3.61%. This expansion was driven by a reduction in the costs of interest-bearing liabilities while maintaining steady asset yields.
In terms of balance sheet growth, deposits rose by $149.0 million (3.6%) to total $4.33 billion, reflecting an annualized growth rate of 14.4%. Similarly, net loans expanded by $131.8 million (3.1%) to reach $4.43 billion, with an annualized growth rate of 12.4%. This deposit growth outpaced loan growth, thereby improving the loan-to-deposit ratio to 102.3%, which has bolstered the company’s liquidity position.
NB Bancorp's aggressive share repurchase program led to the buyback of 5% of outstanding shares at an average cost of $19.06 per share, reducing shareholders' equity by 3.3%. Despite this, the company's tangible book value per share rose to $18.20, up by $0.31 or 1.7% during the quarter.
One-time charges impacted the quarter's income, including a pension expense related to the final liquidation of the employee pension plan totaling $884 thousand (net of tax) and penalties related to the surrender of bank-owned life insurance policies amounting to $154 thousand. Shareholders' equity decreased by $25.6 million due to these buybacks and other factors, ending the quarter at $739.6 million.
Overall, NB Bancorp's Q1 2025 results display robust core earnings and strategic growth in deposits and loans, positioning the company well in the current economic environment.
