Needham Bank parent net income dips, cites onetime expenses

Needham Bank parent net income dips, cites onetime expenses

Needham Bank parent net income dips, cites onetime expenses

By William Hall

Little more than a year after going public, the parent company of Needham Bank posted a 19% drop in quarterly net income due to two onetime expenses, while loans and deposits both grew.

NB Bancorp Inc. (Nasdaq: NBBK) on Tuesday evening posted first-quarter results including net income of $12.7 million. Those numbers compare with net income of $15.6 million during the fourth quarter of 2024.

On an operating basis, which excludes onetime charges, the bank reported operating net income $13.7 million, compared with operating net income of $13.3 million for the prior-year quarter.

Wild stock-market swings and growing pessimism about the economy have affected the financial performance of many banks and other businesses over recent months. In addition, NB Bancorp has contended with growing pains — one-time expenses related to the liquidation of its former pension plan and the surrender of bank-owned life insurance policies.

The pension expense totaled $884,000, net of tax, while the surrender of its bank-owned life insurance policies totaled $154,000 in taxes and endowment contract penalties, NB Bancorp said in a news release.

Deposits grew by $149 million, or 3.6%, while net loans grew by $131.8 million, or 3.1%, the bank reported.

Originally a mutually owned institution, the bank held an initial public offering in December 2023, raising $400 million.

“We went public because we could,” Campanelli told the Business Journal a few months after the IPO. “But we need more capital to continue to grow. In being a mutual and converting to a stock, we were able to (go public) during a very challenging time in the capital markets.”

“As we begin our second year as a public company, we continue to navigate the uncertainty in front of us, as well as focus on our growth in a disciplined manner and closely monitor our capital levels,” said Joseph Campanelli, NB Bancorp chairman, president and CEO.

The holding company noted that Needham Bank’s loan portfolio grew 3% during the quarter to a total of $4.5 billion, and deposits increased 3.6% to $4.3 billion.

Assets amounted to over $5.2 billion at the end of the first quarter, up 1.6% since the previous one.

Needham Bank is the 15th-largest bank headquartered in Massachusetts, according to a Business Journal analysis of local deposits last year. That ranking is up from No. 19 in 2023.

More recently, two other mutual banks in Massachusetts have taken steps to convert to stockholder ownership — Winchester Savings Bank and Avidia Bank.

After closing Tuesday at $16.63, shares of NB Bancorp were trading at around $17.21 by noon on Wednesday, up 3.5%. The company currently has a market capitalization of $642 million.

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