Executive Summary

Q4 2024 delivered solid operating performance: operating EPS was $0.34 (vs. $0.33 in Q3), GAAP EPS was $0.40 as the quarter benefited from a $2.5M tax benefit tied to the proportional amortization method (PAM) adoption; total revenue rose to $46.30M (+8.7% QoQ) and NIM ticked up to 3.52% (+1 bp QoQ) .
Funding remained a strength: deposits grew 3.3% QoQ (+$135.0M), outpacing loan growth of 2.0% (+$84.1M); core deposits rose 4.2% while brokered fell 6.0%, helping lower the cost of deposits to 3.24% from 3.37% .
Asset quality improved: NPL ratio declined to 0.32% (from 0.38%) and net charge-offs normalized to 0.04% annualized (from 0.50% in Q3) as the Q3 office participation charge-off rolled off, supporting better credit costs QoQ .
Capital return catalyst: the company announced its first share repurchase authorization for up to 2,135,286 shares (5% of shares outstanding), alongside tangible book value/share rising to $17.89 (+$0.41 QoQ) .
Management tone was confident on disciplined growth and capital management, emphasizing sustained deposit momentum relative to loans and the repurchase as it “heads into 2025 with continued growth opportunities” .

What Went Well and What Went Wrong

What Went Well
- Deposit growth outpaced loan growth again (deposits +3.3% QoQ vs. loans +2.0%), with higher-quality mix (core +4.2%; brokered −6.0%), easing funding costs (cost of deposits down to 3.24%) .
- NIM expanded to 3.52% (+1 bp QoQ) as average loan balances, other investments yields, and securities balances supported NII growth (+2.9% QoQ to $42.52M) despite a modest decline in average loan yields .
- Credit metrics improved materially QoQ: NPLs/loans fell to 0.32% (from 0.38%) and annualized NCOs dropped to 0.04% (from 0.50%), with provision down to $1.40M (from $2.62M) .
- CEO: “another quarter where our deposit growth outpaced loan growth… [and] commencement of our first share repurchase program,” underscoring confidence in growth and capital allocation .
What Went Wrong
- Noninterest expense rose QoQ to $25.62M (+4.2%) driven by higher G&A (PAM reclassification effects), professional fees, data processing, and FDIC assessments; these partially offset the NII improvement .
- Average loan rates declined QoQ, trimming interest income by $993K; interest expense was flat despite higher interest-bearing liabilities, reflecting continued pricing pressure amid competition for deposits .
- Commercial real estate concentration continues to grow (CRE balance $1.70B; office $182.8M) even as office balances declined QoQ; investors will keep scrutinizing office and cannabis exposure despite all cannabis loans being pass-rated and current .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Total Revenue ($USD Millions)	$38.53	$42.59	$46.30
Net Interest Income ($USD Millions)	$35.28	$41.32	$42.52
Noninterest Income ($USD Millions)	$3.25	$1.27	$3.78
Provision for Credit Losses ($USD Millions)	$5.90	$2.62	$1.40
Noninterest Expense ($USD Millions)	$52.79	$24.59	$25.62
Pre-tax Income ($USD Millions)	($20.16)	$15.38	$19.28
Net Income ($USD Millions)	($13.62)	$8.38	$15.61
Diluted EPS ($)	($0.32)	$0.21	$0.40
Operating EPS (non-GAAP) ($)	$0.26	$0.33	$0.34
Net Interest Margin (%)	3.40%	3.51%	3.52%
Cost of Deposits (%)	2.84%	3.37%	3.24%
Efficiency Ratio (%)	137.00%	57.73%	55.34%

Balance Sheet and Asset Quality

Metric	Q4 2023	Q3 2024	Q4 2024
Total Assets ($USD Billions)	$4.53	$5.00	$5.16
Total Loans ($USD Billions)	$3.89	$4.25	$4.33
Total Deposits ($USD Billions)	$3.39	$4.04	$4.18
Shareholders’ Equity ($USD Billions)	$0.758	$0.747	$0.765
NPLs / Total Loans (%)	0.28%	0.38%	0.32%
ACL / Total Loans (%)	0.83%	0.89%	0.89%
Net Charge-offs (annualized) / Avg Loans (%)	0.14%	0.50%	0.04%
Tangible Book Value/Share ($)	$17.72	$17.48	$17.89

Commercial Real Estate Mix ($USD Millions)

Collateral Type	Q3 2024	Q4 2024
Multi-Family	$272.56	$333.05
Cannabis Facility	$317.27	$326.03
Office	$208.50	$182.80
Total Commercial Real Estate	$1,552.52	$1,696.44

Key drivers and cross-references:

NII rose on higher average loan balances (+$1.5M), higher rates on other investments (+$0.35M), and higher average securities balances (+$0.25M); offset by lower average loan rate (−$0.99M). Interest expense was flat QoQ .
Noninterest income improved as there were no AFS security sale losses (vs. −$1.87M in Q3) and higher BOLI income ($1.05M vs. $0.41M) .
Tax expense fell (ETR 19.0%) due to a $2.5M PAM-related deferred tax liability reversal; ex-item ETR would have been ~32% .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Share Repurchase Authorization	Announced Jan 22, 2025	—	Up to 2,135,286 shares (~5% of outstanding)	New
Formal Financial Guidance (revenue, margins, OpEx, tax)	2025	—	None provided in Q4 materials	Maintained (no formal guidance)

Earnings Call Themes & Trends

Note: An earnings call transcript was not available in our document set; themes are synthesized from Q2–Q4 press releases.

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
Net Interest Margin and Funding Costs	NIM 3.45% in Q2; 3.51% in Q3; cost of deposits climbed to 3.37% in Q3 amid mix/pricing .	NIM 3.52% (+1 bp QoQ); cost of deposits eased to 3.24% helped by core deposit growth and less brokered .	Slightly improving NIM; funding cost stabilizing.
Deposit vs. Loan Growth	Q2: deposits +3.9% (core +4.2%); Q3: deposits +3.2% (CDs +$78.6M, brokered +10%) .	Q4: deposits +3.3% with mix upgrade (core +4.2%, brokered −6.0%); loans +2.0% .	Positive: deposits outpacing loans, improving mix.
Securities/BOLI Optimization	Q3: sold AFS at −$1.9M loss to raise yield; BOLI restructure with near-term tax/penalty, higher future yields .	Q4: no securities losses; BOLI income +153% QoQ as higher-yield policies run; supports noninterest income .	Positive run-rate impact materializing.
Tax/Accounting (PAM)	Q3: PAM adoption drove elevated ETR (45.5%); non-GAAP disclosures explain mechanics .	Q4: PAM-related deferred tax liability reversal (−$2.5M tax); headline ETR 19.0%, ~32% ex-item .	Transition effects winding down.
Asset Quality/Office	Q3: sizable office participation charge-off; NCOs spiked to 0.50% annualized; NPLs fell due to charge-off and payoff .	Q4: NCOs normalized to 0.04% annualized; NPLs/loans 0.32% (−6 bps QoQ); office portfolio $182.8M, suburban Class A/B .	Improving, but office watched.
Cannabis Facility Lending	Q3: portfolio growth; all pass-rated and current .	Q4: portfolio $326.0M, +2.8% QoQ; collateralized by real estate; all pass-rated/current .	Stable, monitored exposure.
Capital Management	Q2–Q3: TBV/share grew; equity/asset ~15% .	Q4: TBV/share $17.89; announced 5% buyback authorization .	More proactive capital return.

Management Commentary

“We completed our first full year as a public company with a strong financial performance. Results for the fourth quarter include operating net income of $0.34 per share… and another quarter where our deposit growth outpaced loan growth… We… announce the commencement of our first share repurchase program… as we head into 2025 with continued growth opportunities.” — Joseph Campanelli, Chairman, President & CEO .
CEO on Q3 setup (context for trend): “We have shown another quarter of strong, but disciplined loan growth, with the ability to self-fund from our continued growth in deposits… Operating net income was $0.33 per share for the quarter… [and] we are optimistic about our opportunities” .

Q&A Highlights

An earnings call transcript for Q4 2024 was not available in our document set; no Q&A excerpts to report [ListDocuments for earnings-call-transcript: none].

Estimates Context

We attempted to retrieve S&P Global consensus for Q4 2024 EPS and revenue but were unable to access estimates due to a request-limit error at the time of analysis; as a result, we cannot quantify beats/misses versus Wall Street consensus for this quarter [GetEstimates error].
Actuals to compare when consensus becomes available: GAAP EPS $0.40; operating EPS $0.34; total revenue $46.30M; NIM 3.52% .

Key Takeaways for Investors

Deposit momentum and improved mix (core +4.2% QoQ; brokered −6.0%) lowered funding costs (cost of deposits 3.24% vs. 3.37% in Q3) and supported a modest NIM expansion to 3.52% .
Operating earnings were steady ($0.34 vs. $0.33 in Q3) with cleaner noninterest income (no securities losses) and higher BOLI income; GAAP EPS benefitted from a PAM-related tax benefit this quarter .
Credit normalization was evident: NCOs fell to 0.04% annualized and NPLs/loans to 0.32%, with provision down to $1.40M; Q3’s office participation charge-off impact did not recur .
Capital return added: first-ever repurchase plan up to ~5% of shares could provide support to TBV/share trajectory and mitigate dilution from future compensation plans .
Watch list: office exposure remains meaningful ($182.8M) albeit suburban/medical-focused; cannabis facility loans ($326.0M) remain pass-rated and current but are a notable concentration area .
Expense pressures (G&A, professional fees, tech, FDIC) ticked up; continued operating discipline is needed to sustain the improving efficiency ratio (55.34%) .
If deposit mix improvement persists and rate pressures ease, incremental NIM tailwinds could support operating EPS; absent Street estimates this quarter, monitor estimate revisions once consensus is available .

Supporting detail and cross-references:

Deposit/loan growth and mix: +$135.0M deposits (+3.3%), core +4.2%, brokered −6.0%; loans +$84.1M (+2.0%) .
Noninterest income drivers: no AFS losses vs. −$1.87M in Q3; higher BOLI income $1.05M vs. $0.41M .
Tax: ETR 19.0% with $2.5M PAM-related benefit; ex-item ~32% .

All figures and statements are sourced from the company’s Q4 2024 8-K/press release and prior-quarter releases as cited above.

NB Bancorp, Inc. (NBBK)·Q4 2024 Earnings Summary