Nb Bancorp, Inc. · NASDAQ:NBBK
Nb Bancorp — KBW Investor Conference 2024
36 slides from Nb Bancorp's conference presentation, Jul 30, 2024
Slide 1: KBW Investor Conference July 30, 2024
1 KBW Investor Conference July 30, 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 LO) [N3Bancorp, 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: $108,079 Pro
Slide 6: Industry Drivers of Local Market
6 Largest Employers Boston MSA 2024-2029 Projected HHI Δ Massachusetts 2023 GDP by Industry Boston MSA Median HHI ($) 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 Second Quarter 2024
9 Financial Highlights for the Second Quarter 2024 • Net income of $9.5 million, or $0.24 per diluted share for the quarter. • Gross loans increased $142.7 million, or 3.6%, to $4.10 billion, from the prior quarter. • The net interest margin on a fully-tax equivalent basis decreased 15 basis points
Slide 10: Financial Overview
Financial Overview LO) [N3Bancorp, Inc.
Slide 11: History of Targeted Balance Sheet Growth
11 Total Deposits ($M) Tangible Common Equity ($M) Total Assets ($M) Total Gross Loans ($M) History of Targeted Balance Sheet Growth 1) Reflects bank level call report financials 11
Slide 12: Track Record of Strong Performance
12 Adj. Return on Avg. Tangible Common Equity (%)¹ Adj. Net Income ($M)2 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) Q an Q2’24 a ju te net in o e re le t annualize total
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 13
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: “N ” tan or “Not eporte ” enoting the bank’ ele tion into t
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 Q2’24 Yield on Loans: 6.58% $4.1B Q2’24 Total 16
Slide 17: Loan Portfolio Stats
17 Loan Portfolio Stats Loan Type Balance Wtd. Avg. Rate Wtd. Avg. Maturity (Yrs) 1-4 Family $1,224,396 5.05% 26.2 Multi-family 267,544 6.18% 16.7 Commercial Real Estate 1,224,211 6.68% 9.6 Construction 578,482 7.51% 2.1 C&I 586,332 8.09% 6.9 Consumer 221,345 8.15% 12.9 Total Loans $4,102,310 6.56%
Slide 18: Loan Portfolio Concentrations
18 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 18
Slide 19: Commercial Real Estate Portfolio
19 Owner-Occupied CRE By Collateral Type Non-Owner-Occupied CRE By Collateral Type Commercial Real Estate Portfolio $543M Q2’24 Total $949M Q2’24 Total 19
Slide 20: Office Portfolio Overview
20 Office Portfolio Overview • Our $199.1 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. $199M
Slide 21: Overview of C&I Portfolio
21 C&I By Type C&I By Geography Overview of C&I Portfolio $586M Q2’24 Total $586M Q2’24 Total 21
Slide 22: Overview of Construction Lending
22 Construction By Type Construction By Geography Overview of Construction Lending $578M Q2’24 Total $578M Q2’24 Total 22
Slide 23: Cannabis Business Highlights
23 Cannabis Business Highlights • As of June 30, 2024, we had outstanding loan balances of $336.1 million to cannabis businesses: • $254.6 million was indirect to cannabis entities; and, • $81.5 million was direct to cannabis entities • 79% of the total outstanding loans were collateralized by real
Slide 24: Asset Quality
24 Reserves / Loans (%) & Reserves / NPLs (%) NPA Trends Asset Quality 1) Financials reflect bank level call report data 2) Financials reflect regulatory holding company data NPAs / Assets 0.76%¹ 1.10%¹ 0.36% 0.56%¹ 0.24% 0.23%² 24 0.43%²
Slide 25: Historically Strong Credit Culture
25 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 (%) • Our loan portfolio consists primarily of commercial real estate and multifamily loans, one-to four-family residen
Slide 26: Funding & Liquidity Management
26 Funding & Liquidity Management
Slide 27: Balanced Deposit Base
27 Note: Deposit composition reflects regulatory holding company data Balanced Deposit Base Q2’24 Cost of Deposits: 3.33% $3.9B Q2’24 Total 100% of the institution’s deposits are insured 27
Slide 28: Support of Strong Deposit Base (Cont.)
28 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 28
Slide 29: Overview of Securities Portfolio
29 Overview of Securities Portfolio $205M Total Q2’24 Yield on Securities: 3.33% 29
Slide 30: Interest Rate Sensitivity
30 Interest Rate Sensitivity 30 At June 30, 2024 Change in Interest Rates Net Interest Income Year 1 Change (bps) Year 1 Forecast ($000) From Level +300 $179,887 8.7% +200 175,402 6.0% +100 171,028 3.3% - - 165,537 - - (100) 157,092 (5.1%) (200) 150,173 (9.3%) (300) 143,773 (13.1%)
Slide 31: Prudent Liquidity Management
31 Prudent Liquidity Management As of June 30, 2024, the Company had: • $60.8 million of outstanding advances from the Federal Home Loan Bank of Boston (“FHLBB”) • $300.0 million of brokered deposits • $769.9 million of unused borrowing capacity with the FHLBB • $42.5 million available with the Disc
Slide 32: Appendix
Appendix LO) [N3Bancorp, Inc.
Slide 33: Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
33 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 34: Notes and Reconciliation of GAAP and Non-GAAP Financial Measures (Cont.)
34 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 35: Executive Management Biographies
35 Executive Management Biographies Joseph Campanelli Chairman, President & CEO Salvatore Rinaldi 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 36: Thank You
Thank You a) [N3Bancorp, Inc.