Nb Bancorp, Inc. · NASDAQ:NBBK
Nb Bancorp — Investor Presentation (June 2024)
35 slides from Nb Bancorp's investor presentation, Jun 4, 2024
Slide 1: Investor Presentation June 4, 2024
1 Investor Presentation June 4, 2024
Slide 2: Forward Looking Statements
2 Forward Looking Statements Statements in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by
Slide 3: NB Bancorp, Inc. Overview
NB Bancorp, Inc. Overview LU) [N8Bancorp, Inc.
Slide 4: Overview of NB Bancorp, Inc.
4 Overview of NB Bancorp, Inc. NASDAQCM: NBBK Headquartered: Needham, MA IPO: December 2023; Raised ~$410M in gross proceeds Seventh largest public bank headquartered in Massachusetts The “Builder’s Bank” with deep community relationships and extensive expertise Full-service bank with an array of co
Slide 5: Well Positioned in Highly Attractive Markets
5 1) Excludes banks with total assets greater than $10 billion; FDIC deposit data as of June 30, 2023 Source: S&P Capital IQ Pro Well Positioned in Highly Attractive Markets Boston-Cambridge-Newton, MA-NH MSA Total Population: 4,934,233 ‘24-’29 Proj. Population Change: 1.60% Median HHI: $108,079 Pro
Slide 6: Boston MSA Industry Drivers of Local Market
6 Largest Employers Boston MSA 2024-2029 Projected HHI Δ Massachusetts 2023 GDP by Industry Boston MSA Median HHI ($) Industry Drivers of Local Market Source: S&P Capital IQ Pro; U.S. Bureau of Economic Analysis; Massachusetts Department of Economic Research $108,079 $75,874 Boston MSA U.S. 8.75% 10
Slide 7: Experienced Institutional Leadership
7 Experienced Institutional Leadership Joseph Campanelli Chairman, President & CEO William Darcey President & CEO – Provider Insurance Group Paul J. Ayoub Chair – Nutter McClennen & Fish LLP Susan Elliott Retired EVP – Federal Home Loan Bank of Boston Angela Jackson CEO – Future Forward Strategies C
Slide 8: Investment Highlights
8 Investment Highlights Experienced management team and talent base to grow market share, invest for the future and serve the community Focused on driving franchise value via relationship-based banking and active community involvement History of consistent earnings through various market cycles Exce
Slide 9: Financial Highlights for the First Quarter 2024
9 Financial Highlights for the First Quarter 2024 • Net income of $8.7 million, or $0.22 per diluted share for the quarter. • Gross loans increased $65.3 million, or 1.7%, to $3.95 billion, from the prior quarter. • The net interest margin on a fully-tax equivalent basis increased 21 basis points to
Slide 10: Financial Overview
Financial Overview LO) [N8Bancorp, Inc.
Slide 11: History of Targeted Balance Sheet Growth
11 Total Deposits ($M) Tangible Common Equity ($M) Total Assets ($M) Total Gross Loans ($M) History of Targeted Balance Sheet Growth 1) Reflects bank level call report financials $2,454 $2,664 $2,923 $3,592 $4,533 $4,650 2019 2020 2021 2022 2023 Q1'24 $2,078¹ $2,195 $2,105¹ $3,015¹ $3,889 $3,955¹ 20
Slide 12: Track Record of Strong Performance
12 Adj. Return on Avg. Tangible Common Equity (%)¹ Adj. Net Income ($M)¹ Adj. Return on Average Assets (%)¹ Adj. Return on Average Equity (%)¹ Track Record of Strong Performance 1) See Appendix for reconciliation of non-GAAP financial metrics 2) Q1’24 adjusted net income reflects annualized total No
Slide 13: Track Record of Strong Performance (Cont.)
13 Noninterest Income / Average Assets (%) Noninterest Expense / Average Assets (%) Net Interest Margin (%) Efficiency Ratio (%)¹ Track Record of Strong Performance (Cont.) 1) See Appendix for reconciliation of non-GAAP financial metrics; Excludes conversion and IPO-related expenses 2.92% 2.83% 2.81
Slide 14: Capital Ratios
14 Tier 1 Capital Ratio (%) Total Capital Ratio (%) Tangible Common Equity / Tangible Assets (%) Leverage Ratio (%) Capital Ratios 1) Financials reflect bank level call report data 2) Financials reflect regulatory holding company data Note: “NR” stands for “Not Reported” denoting the bank’s election
Slide 15: Loan Portfolio & Asset Quality
15 Loan Portfolio & Asset Quality
Slide 16: Diversified Loan Portfolio
16 Note: Loan composition reflects regulatory holding company data Diversified Loan Portfolio 1-4 Family 30% Mul�family 8% Commercial Real Estate 31% Construc�on & Development 14% Commercial & Industrial 12% Consumer 5% Q1’24 Yield on Loans: 6.60% $4.0B Q1’24 Total 16
Slide 17: Loan Portfolio Concentrations
17 Construction & Development / Total Risk Based Capital (%) Commercial Real Estate / Total Risk Based Capital (%) Loan Portfolio Concentrations 1) Financials reflect bank level call report data 2) Financials reflect regulatory holding company data 274%¹ 280%¹ 277%¹ 342%¹ 187%² 192%² 2019 2020 2021
Slide 18: Commercial Real Estate Portfolio
18 Owner-Occupied CRE By Collateral Type Non-Owner-Occupied CRE By Collateral Type Commercial Real Estate Portfolio Industrial 39% Office 8% Retail 16% Special Purpose 22% Other 13% Mixed Use 2% Industrial 7% Office 16% Mul�- Family 33% Retail 11% Special Purpose 6% Hospitality 15% Other 4% Mixed Us
Slide 19: Office Portfolio Overview
19 Office Portfolio Overview • Our $200.1 million office portfolio is predominantly located in the Greater Boston suburbs and mostly consists of Class A and B office space. The typical use of these office loans are medical and lab space and do not consist of high-rise towers located in Boston. Owner
Slide 20: Overview of C&I Portfolio
20 C&I By Type C&I By Geography Overview of C&I Portfolio Structured Finance 30% Renewable Energy 19% Bridge Financing & Cannabis 15% Middle Market 13% Bridge Financing 12% Small Business / Other 6% Cannabis 5% Newport Beach, CA 15% Boston, MA 9% Branford, CT 7% Vero Beach, FL 6% Miami, FL 6% Pikesv
Slide 21: Overview of Construction Lending
21 Construction By Type Construction By Geography Overview of Construction Lending Condos 26% Mul�-Family 20% Single Family for Sale 13% Mixed Use 10% Special Purpose 9% Office 7% Single Family Owner-Occupied 5% Land 5% Other 5% Boston, MA 32% Needham, MA 9% Canton, MA Watertown, MA 7% 5% Quincy, MA
Slide 22: Cannabis Business Highlights
22 Cannabis Business Highlights • As of March 31, 2024, we had outstanding loan balances of $334.3 million to cannabis businesses: • $252.7 million was indirect to cannabis entities; and, • $81.6 million was direct to cannabis entities • 79% of the total outstanding loans were collateralized by real
Slide 23: Asset Quality
23 Reserves / Loans (%) & Reserves / NPLs (%) NPA Trends Asset Quality 1) Financials reflect bank level call report data 2) Financials reflect regulatory holding company data $14.2¹ $25.9¹ $6.0 $13.0 $10.8 $10.8 $3.5¹ $3.4¹ $4.5 $8.3 $0.9 2019 2020 2021 2022 2023 Q1'24 Nonaccruals ($M) TDRs ($M) ORE
Slide 24: Historically Strong Credit Culture
24 1) Reflects annualized metrics 2) Financials reflect bank-level call report data Note: Values may not sum due to rounding Historically Strong Credit Culture NCOs / Average Loans (%) 0.00%² 0.10%² 0.16% 0.00% 0.10% 0.19% (0.10%) 0.20% 0.50% 0.80% 2019 2020 2021 2022 2023 Q1'24 • Our loan portfolio
Slide 25: Funding & Liquidity Management
25 Funding & Liquidity Management
Slide 26: Balanced Deposit Base
26 Note: Deposit composition reflects regulatory holding company data Balanced Deposit Base Transac�on 27% Savings & MMDA 26% Retail 31% Jumbo 16% Q1’24 Cost of Deposits: 3.16% $3.8B Q1’24 Total 100% of the institutions deposits are insured 26
Slide 27: Support of Strong Deposit Base (Cont.)
27 Cost of Deposits Core Deposit Trends¹ Support of Strong Deposit Base (Cont.) 1) Core deposits are total deposits less jumbo time deposits greater than $100,000 64.9% 70.2% 73.9% 75.0% 71.8% 71.2% 50.0% 60.0% 70.0% 80.0% 2019 2020 2021 2022 2023 Q1'24 1.32% 1.03% 0.43% 0.48% 2.34% 3.15% 0.00% 2.00
Slide 28: Overview of Securities Portfolio
28 Overview of Securities Portfolio U.S. Treasuries 37% U.S. Gov't Agencies 2% Mortgage-Backed Securi�es 5% Corporate Bonds 46% Collateralized Mortgage Obliga�ons 1% Municipal Obliga�ons 9% $207M Total Q1’24 Yield on Securities: 2.66% 28
Slide 29: Interest Rate Sensitivity
29 Interest Rate Sensitivity At March 31 , 2024 Change in Interest Rates Net Interest Income Year 1 Change (bps) Year 1 Forecast ($000) From Level +300 $1 65,970 6.3% +200 1 62,757 4.2% +1 00 1 59,946 2.4% -- 1 56,1 46 -- (1 00) 1 50,764 (3.4%) (200) 1 44,358 (7.5%) (300) 1 38,334 (1 1 .4%) 29
Slide 30: Prudent Liquidity Management
30 Prudent Liquidity Management FHLB Advances 4.6% Brokered Deposits 22.5% FHLB Unused Borrowing Capacity 57.2% FED Available Borrowing Capacity 3.4% Capacity for Addi�onal Brokered Deposits 12.4% % of Total Liquidity As of March 31, 2024, the Company had: • $60.8 million of outstanding advances fro
Slide 31: Appendix
Appendix LO) [N8Bancorp, Inc.
Slide 32: Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
32 Notes and Reconciliation of GAAP and Non-GAAP Financial Measures In addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), this presentation contains certain non-GAAP financial measures, including net income excluding co
Slide 33: Notes and Reconciliation of GAAP and Non-GAAP Financial Measures (Cont.)
33 Notes and Reconciliation of GAAP and Non-GAAP Financial Measures (Cont.) In addition to results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), this presentation contains certain non-GAAP financial measures, including net income excl
Slide 34: Executive Management Biographies
34 Executive Management Biographies Joseph Campanelli Chairman, President & CEO Salvatore Rinaldi EVP & Chief Operating Officer J.P. Lapointe EVP & Chief Financial Officer Mr. Campanelli has served as President and Chief Executive Officer of Needham Bank since joining the Bank in January 2017 and wa
Slide 35: Thank You
Thank You a) [N8Bancorp, Inc.