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NBBK Nasdaq· NB Bancorp Inc
Earnings report Q3 2023

NB Bancorp Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

NB Bancorp, Inc. reported robust revenue growth in the latest quarter. The company's revenue can be segmented into two categories: interest and dividend income, and non-interest income.

Interest and dividend income for the quarter ended September 30, 2023, amounted to $59.25 million, compared to $31.46 million in the same quarter of the previous year. This represents a significant increase of 88.47%. The growth in interest and dividend income was primarily driven by a substantial increase in interest and fees on loans, which reached $56.70 million, compared to $29.63 million in the previous year's quarter. Additionally, interest on investment securities and interest on cash equivalents and other also contributed to the growth in this segment.

Non-interest income for the quarter ended September 30, 2023, totaled $3.10 million, reflecting a notable increase of 40.56% compared to $2.20 million in the same quarter of the previous year. The growth in non-interest income was primarily attributed to increases in customer service fees, including cash management and money service fees related primarily to the company's cannabis business. Furthermore, an increase in swap contract income also contributed to the overall growth in this segment.

Strengths

NB Bancorp demonstrated strong financial performance in the latest quarter, particularly in terms of revenue. The significant increase in interest and dividend income can be attributed to the company's successful loan portfolio management, resulting in higher interest and fees on loans. The growth in non-interest income, driven by increased customer service fees and swap contract income, showcases the company's ability to diversify its revenue streams and capitalize on emerging opportunities, such as the cannabis industry.

Challenges

While NB Bancorp reported strong revenue growth, it is important to note that the company also incurred a provision for credit losses of $1.97 million in the latest quarter. This provision indicates potential credit risks and highlights the need for effective risk management strategies to mitigate any adverse impact on the company's financial performance.

Noteworthy

It is worth mentioning that NB Bancorp reported a gain from a bargain purchase and assumption agreement, amounting to $1.07 million. This gain contributed to the company's non-interest income and reflects successful strategic initiatives in acquiring and integrating businesses.

Summary

NB Bancorp delivered a strong financial performance in the latest quarter, characterized by significant revenue growth. The company's interest and dividend income experienced a substantial increase, primarily driven by higher interest and fees on loans. Non-interest income also grew notably, supported by increased customer service fees and swap contract income. However, the company faced challenges in the form of a provision for credit losses. Overall, NB Bancorp's ability to diversify its revenue streams and capitalize on emerging opportunities positions it well for continued growth and success.

Source documents

Form 10-Q  filed on Nov 22, 2023
1 pages scanned

Reference data

Company financials Q3 revenue 34.3M
Analyst estimates Q3 EPS missed by NaN%
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