Nb Bancorp, Inc. · NASDAQ:NBBK
Nb Bancorp — Janney Investor Conference 2025
41 slides from Nb Bancorp's conference presentation, Jan 29, 2025
Slide 1: Janney Investor Conference
1 January 29, 2025 Janney Investor Conference
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) NBB
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 Sixth largest public community bank headquartered in Massachusetts The “Builder’s Bank” with deep community relationships and extensive expertise Full-service bank with an arr
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, 2024 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: $108,079 Pro
Slide 6: Industry Drivers of Local Market
6 Largest Employers Boston MSA 2024-2029 Projected HHI Δ Massachusetts 2023 GDP by Industry Boston MSA Median HHI ($) Industry Drivers of Local Market Source: S&P Capital IQ Pro; U.S. Bureau of Economic Analysis; Massachusetts Department of Economic Research 9 4 o ton . . . . 2 o ton . . o ern ent 9
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 Fourth Quarter 2024
9 Financial Highlights for the Fourth Quarter 2024 • GAAP Net income of $15.6 million, or $0.40 per diluted share for the quarter. • Operating Net Income1 (Non-GAAP) of $13.3 million, or $0.34 per diluted share for the quarter. • Gross loans increased $84.1 million, or 2.0%, to $4.33 billion, from t
Slide 10: Financial Highlights for the Fourth Quarter 2024 (Continued)
10 Financial Highlights for the Fourth Quarter 2024 (Continued) • Strong capital position with 14.8% shareholders equity to total assets and tangible shareholders' equity to tangible assets¹. • Book value and tangible book value per share were $17.92 and $17.89¹, respectively. • One-time transaction
Slide 11: Financial Overview
Financial Overview LU) NSB
Slide 12: History of Targeted Balance Sheet Growth
12 Total Deposits ($M) Tangible Common Equity ($M) Total Assets ($M) Total Gross Loans ($M) History of Targeted Balance Sheet Growth 12 $2,454 $2,664 $2,923 $3,592 $4,533 $4,650 $4,805 $5,003 $5,158 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Q4'24 $2,078 $2,195 $2,105 $3,015 $3,889 $3,955 $4,097 $4,
Slide 13: Track Record of Strong Performance
13 Operating Return on Avg. Tangible Common Equity (%)¹ Operating Net Income ($M)1, 2 Operating Return on Average Assets (%)¹ Operating Return on Average Equity (%)¹ Track Record of Strong Performance 1) See Appendix for reconciliation of non-GAAP financial metrics 2) Q Q2 an Q ’24 operating net in
Slide 14: Track Record of Strong Performance (Cont.)
14 Operating Noninterest Income / Average Assets (%)¹ Operating Noninterest Expense / Average Assets (%)¹ Net Interest Margin (%) Operating Efficiency Ratio (%)¹ Track Record of Strong Performance (Cont.) 1) See Appendix for reconciliation of non-GAAP financial metrics 14 2.92% 2.83% 2.81% 3.49% 3.4
Slide 15: Capital Ratios
15 14.81%¹ 11.28%¹ 17.83%² 17.91%² 17.08%² 17.41%² 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Q4'24 14.08%¹ 10.54%¹ 16.91%² 16.93%² 16.20%² 16.51%² 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Q4'24 Tier 1 Capital Ratio (%) Total Capital Ratio (%) Tangible Common Equity / Tangible Assets (%) Leverage
Slide 16: Loan Portfolio & Asset Quality
16 Loan Portfolio & Asset Quality
Slide 17: Diversified Loan Portfolio
17 Note: Loan composition reflects regulatory holding company data Diversified Loan Portfolio Q4’24 Yield on Loans: 6.60% $4.3B Q4’24 Total 17 Commercial Real Estate 31% 1-4 Family including HELOCs 29% Construction & Development 14% Commercial & Industrial 13% Multifamily 8 % Consumer 6%
Slide 18: Loan Portfolio Stats
18 Loan balances above are not shown net of deferred fees Loan Portfolio Stats Loan Type Balance Wtd. Avg. Rate Wtd. Avg. Maturity (Yrs) Fixed Rate (%) Variable Rate (%) 1-4 Family (incl. HELOCs) $1,254,832 5.13% 26.1 43.8% 56.2% Multi-family $333,047 5.25% 17.9 0% 100% Commercial Real Estate $1,363
Slide 19: Loan Portfolio Concentrations
19 Construction & Development / Total Risk-Based Capital (%)¹ Commercial Real Estate / Total Risk-Based Capital (%)¹ Loan Portfolio Concentrations 1) Financials reflect regulatory holding company data 19 274% 280% 277% 342% 187% 192% 191% 204% 202% 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Q4'24 12
Slide 20: Commercial Real Estate Portfolio
20 Owner-Occupied CRE By Collateral Type Non-Owner-Occupied CRE By Collateral Type Commercial Real Estate Portfolio $639M Q4’24 Total $1.06 B Q4’24 Total 20 Cannabis Facility 49% Industrial 19% Special Purpose 12% Office 5% Retail 7% Other 8 % Multi-Family 32% Hospitality 16% Office 15% Mixed Use 10
Slide 21: Loans Needham Bank Makes and Doesn't Make
21 Loans Needham Bank Makes Loan Nee ha ank Doe n’t Make Needham Bank Loan Examples 21
Slide 22: Office Portfolio Overview
22 Office Portfolio Overview • Our $191.2 million office portfolio consists principally of suburban Class A and B office space used as medical and traditional offices. The portfolio does not consist of high-rise towers located in Boston. $191M Q4’24 Total 22 Office Portfolio as of 12/31/24 Weighted
Slide 23: Overview of C&I Portfolio
23 C&I By Type C&I By Geography Overview of C&I Portfolio $560M Q4’24 Total $560M Q4’24 Total 23 Structured Finance 26% Renewable Energy 19% Small Business / Other 13% Bridge Financing 13% Cannabis Bridge Financing 12% Middle Market 11% Cannabis 7% Newport Beach, CA 12% Boston 9% Natick, MA 7% Branf
Slide 24: Overview of Construction Lending
24 Construction By Type Construction By Geography Overview of Construction Lending $587M Q4’24 Total $587M Q4’24 Total 24 Condos 32% Multi-Family 23% Single Family for Sale 15% Mixed Use 10% Land 9% Hotel / Motel 5% Other 8 % Boston, MA 13% Middleton, MA 9% Milton, MA 8 % Needham, MA 8 % Newton, MA
Slide 25: Consumer Loans Overview
25 Consumer Loans Overview Amounts above exclude purchased premiums or discounts Loan Type Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Purchased (in thousands) Solar $55,987 $54,732 $53,170 $51,504 $50,327 Boat Loans 59,928 57,228 54,334 51,854 50,020 Home Improvement 53,194 50,562 48,512 46,354 44,443
Slide 26: Consumer Loans Overview
26 Consumer Loans Overview $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Balance (thousands) Period Overview of Purchased Consumer Loans Net Charge Offs - Purchased (3ME) Net Charge
Slide 27: Cannabis Business Highlights
27 Cannabis Business Highlights • As of December 31, 2024, we had outstanding loan balances of $459.6 million to cannabis businesses: • $321.9 million was direct to cannabis entities • $137.7 million was indirect to cannabis entities; • Weighted average LTV and DSCR was 58.7% and 3.55, respectively;
Slide 28: Asset Quality
28 $14.2 $25.9 $6.0 $13.0 $10.8 $10.8 $20.7 $16.0 $13.9 $3.5 $3.4 $4.5 $8.3 $0.9 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Q4'24 Nonaccruals ($M) TDRs ($M) OREO ($M) Reserves / Loans (%) & Reserves / NPLs (%) NPA Trends Asset Quality 1) Financials reflect bank level call report data 2) Financials r
Slide 29: Historically Strong Credit Culture
29 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 (%)¹ • Our loan portfolio consists primarily of commercial real estate and multifamily loans, one-to four-family reside
Slide 30: Funding & Liquidity Management
30 Funding & Liquidity Management
Slide 31: Balanced Deposit Base
31 Note: Deposit composition reflects regulatory holding company data Balanced Deposit Base Q4’24 Cost of Deposits: 3.24% $4.2B Q4’24 Total 31 Savings & MMDA 30% Jumbo 29% Transaction 23% Brokered 17% Retail 1%
Slide 32: Support of Strong Deposit Base
32 Note: Deposit composition reflects regulatory holding company data Support of Strong Deposit Base Cost of Deposits 32 Balance WAR Balance WAR Balance ($) Balance (%) WAR Noninterest-bearing demand deposits $623,400 0.00% $528,409 0.00% $94,991 17.98% 0.00% Savings accounts 108,685 0.05% 127,640 0
Slide 33: Certificates of Deposit Maturities
33 Note: Deposit composition reflects regulatory holding company data Certificates of Deposit Maturities 33 Time Deposit Maturities ($M) Brokered Deposit Maturities ($M) 4.82% 4.76% 4.51% 3.99% $0 $200 $400 $600 $800 $1,000 3/31/2025 6/30/2025 9/30/2025 12/31/2025 4.84% 4.57% 4.78% 0.00% $0 $50 $100
Slide 34: Overview of Securities Portfolio
34 Overview of Securities Portfolio $227M Total Q4’24 Yield on Securities: 3.91% 34 Balance WAC Balance WAC Balance ($) WAC Corporate Bonds $83,044 3.34% $92,235 1.16% ($9,191) 2.18% U.S. Treasuries 69,084 3.61% 64,352 1.44% 4,732 2.17% Mortgage-Backed Securities 39,183 3.94% 11,430 2.05% 27,753 1.8
Slide 35: Interest Rate Sensitivity
35 Interest Rate Sensitivity 35 At December 31, 2024 Change in Interest Rates Net Interest Income Year 1 Change (bps) Year 1 Forecast ($000) From Level +300 $198,794 7.2% +200 195,159 5.2% +100 191,506 3.3% - - 185,432 - - (100) 179,705 (3.1%) (200) 174,599 (5.8%) (300) 170,827 (7.9%)
Slide 36: Prudent Liquidity Management
36 FHLB Advances 4.7% Brokered Deposits 12.0% FHLB Unused Borrowing Capacity 28.1% FED Available Borrowing Capacity 17.5% Capacity for Additional Brokered Deposits 37.6% % of Total Liquidity Prudent Liquidity Management As of December 31, 2024, the Company had: • $120.8 million of outstanding advanc
Slide 37: Appendix
Appendix LU) NBB
Slide 38: Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
38 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 (“ P”) thi pre relea e ontain ertain non-GAAP financial measures, including operating net income, operating
Slide 39: Notes and Reconciliation of GAAP and Non-GAAP Financial Measures (Cont.)
39 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 (“ P”) thi pre relea e ontain ertain non-GAAP financial measures, including operating net income, o
Slide 40: Executive Management Biographies
40 Executive Management Biographies Joseph Campanelli Chairman, President & CEO Christine Roberts EVP & Chief Operating Officer JP 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 was
Slide 41: Thank You
Thank You a) —~