NB Bancorp, Inc. (NBBK) AI Stock Analysis

• Market Cap: $891.43M
• Dividend Yield: 0.67%
• Average Volume (3M): 345.69K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.00
• Revenue Growth: 14.04%
• EPS Growth: 337.54%
• Country: US
• Employees: 376
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 45,604,774
• 10 Day Avg. Volume: 342,214
• 30 Day Avg. Volume: 345,689
• PEG Ratio: 0.64
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 2.55
• P/FCF Ratio: 14.12
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: 8.62
• 1Y Price Target: $24.00
• Price Target Upside: 14.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.13
• Revenue Forecast (FY): $297.43M

• Rating: 66 Neutral
• Price Target: $23.50 ▲(12.12% Upside)
• Action: Downgraded Date: 03/03/26
• Date: Action: Downgraded 03/03/26

The score is driven primarily by improving profitability and a more moderate leverage profile, but held back by slowing revenue growth and weakening free cash flow/cash-conversion quality. Technicals are neutral-to-slightly positive, valuation appears mid-range, and recent corporate actions (acquisition integration and a new buyback authorization) add a modest positive catalyst.

Positive Factors

Acquisition-driven scale

The Provident acquisition materially enlarged the franchise and deposit base, giving durable scale in southern New Hampshire. Higher core deposits and loan balances improve funding stability, expand cross-sell opportunities, and strengthen regional market position for sustained growth.

Improving profitability

Net and operating margins recovering to mid-teens reflect stronger net interest income management and expense control. Higher core profitability enhances internal capital generation and the ability to absorb integration costs, supporting longer-term earnings durability if this operating cadence persists.

Stronger capital & deposit standing

Substantially stronger equity and respectable tangible common equity ratios provide regulatory buffer and flexibility for capital returns. Leading local deposit shares deliver dependable low-cost funding, supporting lending growth and enabling dividends and buybacks without excessive reliance on market financing.

Negative Factors

Revenue slowdown

A year-over-year revenue decline interrupts the prior growth trend and suggests a pause in core top-line momentum. For a regional bank, sustained or recurrent revenue weakness can constrain loan origination, fee income expansion, and the scalability of operating leverage over the medium term.

Weakening free cash flow

Material FCF decline and inconsistent cash-to-earnings alignment reduce capacity to fund dividends, repurchases, and loan growth from internally generated cash. Deteriorating cash conversion increases dependence on balance-sheet funding and raises vulnerability to funding cost or credit shocks.

Modest ROE and profit volatility

Mid-single-digit returns on equity, below prior-cycle peaks, limit long-term shareholder value creation. Coupled with historical margin volatility, this reduces earnings predictability and may force conservative capital allocation, constraining growth investments or returns unless a sustained ROE improvement emerges.

NB Bancorp, Inc. Business Overview & Revenue Model

Company Description

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.

How the Company Makes Money

NB Bancorp, Inc. generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees associated with banking services. The company's key revenue streams include interest earned on various types of loans, such as personal, business, and mortgage loans, which are typically the largest source of income. Additionally, NBBK earns fees from services like account maintenance, transaction processing, and wealth management advisory services. The company also benefits from strategic partnerships with other financial institutions and service providers, enhancing its ability to offer a comprehensive suite of products and services. Economic factors, such as interest rates and local market conditions, also play a significant role in influencing its earnings, as they affect both loan demand and the bank's net interest margin.

NB Bancorp, Inc. Financial Statement Overview

Summary

Profitability improved meaningfully from the 2023 trough, with net margins stronger in 2024–2025 and leverage more moderate than prior peaks. Offsetting this, 2025 revenue declined (-3.3%) and free cash flow weakened further (FCF growth -23.8%) with inconsistent cash conversion signals, reducing confidence in momentum and earnings quality.

Income Statement

Revenue expanded strongly from 2021–2024, but 2025 revenue declined (-3.3%), suggesting a near-term growth pause. Profitability improved meaningfully versus 2023 (net margin ~4.1%) to 2024–2025 (net margin ~13.9% to ~15.9%), with operating profitability also stronger in 2024–2025 than 2023. A key weakness is the volatility across the period (very high margins in 2021–2022, sharp compression in 2023, then recovery), which reduces earnings predictability.

Balance Sheet

Leverage looks manageable recently, with debt-to-equity improving from elevated levels in 2022 (~0.85) and 2023 (~0.37) to lower levels in 2024 (~0.16) and 2025 (~0.23). Equity has grown substantially over the period, supporting a larger asset base, and return on equity has stabilized around mid-single digits in 2024–2025 (~5.5%–5.9%) after a weak 2023 (~1.3%). The main drawback is that profitability on equity remains modest versus the stronger 2021–2022 levels, and total debt increased in 2025 versus 2024, reversing some of the prior deleveraging trend.

Cash Flow

Operating cash flow was positive each year and increased in 2025 versus 2024, which is supportive. However, free cash flow declined in 2024 and fell further in 2025 (free cash flow growth -23.8%), indicating weaker cash generation momentum. Additionally, cash-flow-to-earnings alignment appears inconsistent based on the provided coverage figures (notably showing 0.0 in 2025), which adds uncertainty around cash conversion quality in the most recent period.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	317.21M	304.05M	237.52M	128.88M	98.80M
Gross Profit	174.27M	160.61M	133.19M	106.64M	84.12M
EBITDA	71.71M	61.58M	14.67M	38.86M	29.73M
Net Income	50.30M	42.15M	9.82M	30.07M	21.57M
Balance Sheet
Total Assets	7.01B	5.16B	4.53B	3.59B	2.92B
Cash, Cash Equivalents and Short-Term Investments	594.67M	305.09M	279.95M	376.55M	716.93M
Total Debt	196.24M	120.83M	283.34M	293.08M	256.00K
Total Liabilities	6.15B	4.39B	3.78B	3.25B	2.60B
Stockholders Equity	858.93M	765.17M	757.96M	344.06M	326.13M
Cash Flow
Free Cash Flow	57.38M	41.25M	50.03M	31.22M	42.04M
Operating Cash Flow	60.79M	43.19M	52.90M	39.71M	43.84M
Investing Cash Flow	-519.05M	-546.44M	-831.62M	-667.99M	-41.94M
Financing Cash Flow	502.00M	594.52M	894.77M	317.77M	242.43M

NB Bancorp, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.96
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBBK, the sentiment is Negative. The current price of 20.96 is below the 20-day moving average (MA) of 21.50, below the 50-day MA of 21.08, and above the 200-day MA of 18.97, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 43.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NBBK.

NB Bancorp, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCBC	82 Outperform	$771.97M	12.66	9.71%	9.26%	-0.40%	-1.43%
THFF	70 Outperform	$730.88M	8.35	13.02%	3.19%	16.57%	69.64%
IBCP	69 Neutral	$690.12M	9.81	14.51%	3.09%	4.29%	10.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ORRF	67 Neutral	$678.65M	6.86	14.41%	2.93%	47.65%	101.00%
NBBK	66 Neutral	$891.43M	26.28	6.55%	0.67%	14.04%	337.54%
CAC	64 Neutral	$777.72M	11.21	9.49%	3.66%	24.08%	9.83%

NB Bancorp, Inc. Corporate Events

NB Bancorp highlights post-IPO growth at investor event

On February 4, 2026, NB Bancorp, Inc. used a slide presentation at an in-person investor conference to highlight its post-IPO expansion, strengthened capital base and performance metrics, emphasizing fourth-quarter 2025 indicators such as a 3.92% net interest margin, a 1.35% operating return on average assets and an 11.81% tangible common equity-to-assets ratio, along with solid regulatory capital ratios. The company reported that since its December 2023 IPO, assets have grown by 54.4%, deposits by 50.5%, operating earnings per share by 415.4%, and its share price by 98.2%, supported by strong deposit growth at Needham Bank branches that has far outpaced local market averages and lifted it to a top-three community bank deposit position in the Boston MSA and a leading position in the Manchester, NH MSA, underscoring its strengthened competitive standing in attractive New England markets.

The most recent analyst rating on (NBBK) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on NB Bancorp, Inc. stock, see the NBBK Stock Forecast page.

NB Bancorp Reports Q4 Results, Declares Dividend, Buyback

On January 22, 2026, NB Bancorp, Inc. reported fourth-quarter 2025 results marked by the completed November 15, 2025 acquisition of Provident Bancorp, Inc. and its subsidiary BankProv, which added approximately $1.42 billion in assets, $1.23 billion in loans and $1.13 billion in deposits and expanded the bank’s footprint in southern New Hampshire. Quarterly net income fell to $7.7 million, or $0.19 per diluted share, from $15.4 million in the prior quarter due to sizable merger and bank-owned life insurance-related charges, but operating net income excluding one-time items rose to $21.2 million, or $0.51 per diluted share, as net interest margin widened to 3.92% and both loans and deposits increased sharply, driving total assets to $7.01 billion. The Board also declared a quarterly cash dividend of $0.07 per share, payable February 19, 2026 to shareholders of record on February 5, 2026, and authorized a new stock repurchase program covering up to 2,288,509 shares, or roughly 5% of shares outstanding, signaling confidence in the company’s capital position and earnings power following the Provident integration.

The most recent analyst rating on (NBBK) stock is a Buy with a $23.50 price target. To see the full list of analyst forecasts on NB Bancorp, Inc. stock, see the NBBK Stock Forecast page.