Business
NB Bancorp, Inc. Reports Third Quarter 2024 Financial Results
NEEDHAM, Mass., Oct. 30, 2024 /PRNewswire/ -- NB Bancorp, Inc. (the "Company") (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the
About this update from Nb Bancorp, Inc.
[{"type":"text","content":"NEEDHAM, Mass., Oct. 30, 2024 /PRNewswire/ -- NB Bancorp, Inc. (the \"Company\") (Nasdaq Capital Market: NBBK), the holding company of Needham Bank (the \"Bank\"), today announced its third quarter 2024 financial results.\n\nSELECTED FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER OF 2024\nNet income of $8.4 million, or $0.21 per diluted share, compared to net income of $9.5 million, or $0.24 per diluted share, for the prior quarter. Operating net income, excluding one-time charges, amounted to $13.1 million, or $0.33 per diluted share for the current quarter. One-time charges include:Loss on the sale of available-for sale securities amounting to $1.9 million;Tax expense and a modified endowment contract penalty related to the surrender of bank-owned life insurance (\"BOLI\") policies of $1.6 million, and;Tax expense related to a basis write-down of solar income tax credits of $2.5 million, partially offset by;Reversal of previously recognized amortization related to solar income tax credit investments during the first six months of the year, amounting to $913 thousand.Gross loans increased $151.8 million, or 3.7%, to $4.25 billion, from the prior quarter.Net interest margin increased 5 basis points to 3.51% during the current quarter from 3.46% in the prior quarter.A portfolio of available-for-sale securities was sold at a $1.9 million net loss during the current quarter, with the proceeds reinvested into higher-yielding securities, which were restructured to mitigate portfolio risk and increase yield. The securities sold had an average yield of 0.97% with remaining duration of 2.4 years and were reinvested into securities with an average yield of 4.27% and average duration of 4.1 years. The earn-back period on the loss from the sale of the available-for-sale securities is expected to be approximately 2.5 years. The newly purchased securities carry a lower risk weight than the securities sold, mitigating risk in the Bank's available-for-sale securities portfolio.During the current quarter, the Bank surrendered $46.7 million of existing BOLI policies that were earning an annualized yield of 3.08%. Prior to the surrender of the policies, the Bank took out an additional $50.0 million of BOLI policies, which are currently yielding 4.81%. As a result of the surrender of the BOLI policies, the Bank incurred $1.6 million of tax and penalty...