NB Bancorp, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which operates as a non-accelerated filer and an emerging growth company, completed a stock offering on December 27, 2023, selling 40,997,500 shares at $10.00 per share, generating gross proceeds of $410.0 million. As of November 8, 2024, the company had 42,705,729 shares outstanding.

For the three months ended September 30, 2024, NB Bancorp recorded net income of $8.4 million, a slight decrease from $8.5 million in the same period of 2023. However, operating net income, excluding one-time charges, rose to $13.1 million, reflecting a 54.9% increase year-over-year. Net interest income increased by $7.8 million, or 23.4%, driven by a 27.5% rise in interest and dividend income, totaling $76.0 million. The average balance of the loan portfolio grew by 15.6% to $4.19 billion, with a weighted average yield increase to 6.70%.

Total assets as of September 30, 2024, reached $5.00 billion, up 10.3% from $4.53 billion at the end of 2023. Net loans increased by 9.2% to $4.21 billion, with notable growth in commercial real estate loans, which rose by $110.1 million, and commercial and industrial loans, which increased by $75.0 million. Deposits also saw a substantial increase of $655.5 million, or 19.4%, totaling $4.04 billion.

The company faced challenges in noninterest income, which decreased by 59.7% to $1.3 million, primarily due to losses on the sale of available-for-sale securities and a decline in swap contract income. Noninterest expenses rose by 6.5% to $24.6 million, with salaries and employee benefits accounting for a significant portion of the increase.

The provision for credit losses for the quarter was $2.6 million, up from $2.0 million in the prior year. The effective tax rate increased to 45.5%, influenced by one-time tax effects related to solar income tax credits and the surrender of BOLI policies.

Strategically, the company adopted ASU 2023-02, resulting in a $10.2 million reduction in retained earnings and nonpublic investments. Additionally, NB Bancorp's Employee Stock Ownership Plan (ESOP) was established as part of the IPO, with the ESOP holding 3,416,458 shares as of September 30, 2024.

Overall, NB Bancorp's financial performance reflects a mix of growth in key areas such as net interest income and loans, alongside challenges in noninterest income and increased expenses.