NB Bancorp, Inc. has recently released its 10-K report, providing a detailed insight into its financial performance and operations. The company operates as a bank holding company for Needham Bank, offering a range of banking products and services in the Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. Needham Bank provides various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts, along with commercial real estate and multifamily, one* to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. The company also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. NB Bancorp was founded in 1892 and is based in Needham, Massachusetts.
In its ITEM 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, NB Bancorp highlighted that its results of operations depend primarily on net interest income, which is the difference between the interest income earned on interest-earning assets and the interest paid on interest-bearing liabilities. The company's results of operations are also affected by its provision for credit losses, noninterest income, and noninterest expense. Noninterest income primarily consists of customer service fees, swap contract income, and income on bank-owned life insurance, while noninterest expense primarily consists of expenses related to salary and employee benefits, director fees, occupancy and equipment, data processing, marketing and charitable contribution expense, professional fees, federal deposit insurance assessments, and other general and administrative expenses. The company also highlighted that its results of operations may be significantly affected by general and local economic and competitive conditions, changes in market interest rates, governmental policies, and actions of regulatory authorities.
Furthermore, the report discussed the company's significant accounting policies, including the treatment of loans held for investment and allowance for credit losses, income taxes, and securities valuation and credit losses. The company uses the liability method of accounting for income taxes and exercises significant judgment in evaluating the amount and timing of recognition of resulting tax liabilities and assets. NB Bancorp also classifies its investments in debt securities as either held-to-maturity or available-for-sale, and the fair values of these investments are obtained from one or more third-party services.
The report also provided a comparison of the company's financial condition at December 31, 2023, and December 31, 2022. Total assets increased by $941.1 million, or 26.2%, to $4.53 billion as of December 31, 2023, from $3.59 billion at December 31, 2022. The increase was primarily due to increases in net loans and federal funds sold. Cash and cash equivalents increased by $116.0 million, or 31.0%, to $272.6 million as of December 31, 2023, from $156.5 million at December 31, 2022, mainly due to the proceeds from the company’s mutual-to-stock conversion and related IPO, which closed on December 27, 2023. Securities available-for-sale decreased by $56.0 million, or 22.8%, to $189.5 million as of December 31, 2023, from $245.5 million at December 31, 2022. Loans, net increased by $866.6 million, or 29.0%, to $3.86 billion at December 31, 2023, from $2.99 billion at December 31, 2022, with increases in each of the loan portfolios.
The 10-K report provides a comprehensive overview of NB Bancorp's financial and operational performance, offering investors and stakeholders valuable insights into the company's position and future prospects. Following these announcements, the company's shares moved -0.6%, and are now trading at a price of $13.69. Check out the company's full 10-K submission here.
