NB Bancorp, Inc. (NBBK) AI Stock Analysis

• Market Cap: $899.98M
• Dividend Yield: 0.66%
• Average Volume (3M): 323.86K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.98
• Revenue Growth: 14.04%
• EPS Growth: 337.54%
• Country: US
• Employees: 376
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.45
• Shares Outstanding: 45,770,798
• 10 Day Avg. Volume: 221,714
• 30 Day Avg. Volume: 323,855
• PEG Ratio: 0.05
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 17.25
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 6.01
• 1Y Price Target: $22.00
• Price Target Upside: 3.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $23.00 ▲(8.44% Upside)

NB Bancorp, Inc. is well-positioned with strong financial performance and positive corporate events, including a strategic merger. Technical indicators show bullish momentum, although caution is advised due to overbought signals. The valuation is fair, with a modest dividend yield. Overall, the stock presents a balanced investment opportunity with growth potential.

Positive Factors

Strategic Merger

The merger with Provident Bancorp expands NB Bancorp's market presence and service offerings, enhancing competitive positioning and growth potential.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, contributing to long-term financial stability.

Balance Sheet Strength

A robust balance sheet with low leverage enhances financial stability and flexibility, supporting sustainable growth and risk management.

Negative Factors

Operating Cash Flow Efficiency

Inefficient cash flow management could strain liquidity and limit the company's ability to invest in growth opportunities or manage unforeseen expenses.

Declining Gross Profit Margin

A declining gross profit margin may indicate rising costs or pricing pressures, potentially impacting profitability if not addressed.

Integration Risks

Mergers can pose integration challenges, including cultural alignment and operational synergies, which may affect short-term performance and strategic execution.

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

NB Bancorp, Inc. exhibits solid financial health with strong revenue growth, efficient cost management, and prudent leverage. While profitability and cash flow metrics are robust, there is potential for further improvement in asset utilization and operational cash flow efficiency.

Income Statement

NB Bancorp, Inc. shows strong revenue growth with a TTM increase of 3.17% and consistent profitability, evidenced by a net profit margin of 15.86% and an EBIT margin of 22.13%. The gross profit margin remains robust at 55.46%, indicating efficient cost management. However, the slight decline in gross profit margin from previous periods suggests potential cost pressures.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.17, reflecting prudent leverage management. Return on equity is modest at 6.85%, indicating moderate profitability relative to shareholder equity. The equity ratio of 14.10% suggests a stable capital structure, though there is room for improvement in asset utilization.

Cash Flow

NB Bancorp, Inc. demonstrates strong cash flow management with a free cash flow growth rate of 3.57% and a high free cash flow to net income ratio of 97.26%. The operating cash flow to net income ratio of 1.57% indicates efficient cash generation relative to earnings, though there is potential for enhancing operational cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	330.96M	304.05M	237.52M	128.88M	98.80M
Gross Profit	189.48M	160.61M	133.19M	106.64M	84.12M
EBITDA	78.55M	61.58M	14.67M	38.86M	29.73M
Net Income	58.21M	42.15M	9.82M	30.07M	21.57M
Balance Sheet
Total Assets	5.44B	5.16B	4.53B	3.59B	2.92B
Cash, Cash Equivalents and Short-Term Investments	296.64M	305.09M	279.95M	376.55M	716.93M
Total Debt	41.45M	120.83M	283.34M	293.08M	256.00K
Total Liabilities	4.71B	4.39B	3.78B	3.25B	2.60B
Stockholders Equity	737.03M	765.17M	757.96M	344.06M	326.13M
Cash Flow
Free Cash Flow	79.73M	41.25M	50.09M	31.22M	42.04M
Operating Cash Flow	81.65M	43.19M	52.96M	39.71M	43.84M
Investing Cash Flow	-471.54M	-546.44M	-831.62M	-667.99M	-41.94M
Financing Cash Flow	368.21M	594.52M	894.71M	317.77M	242.43M

NB Bancorp, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBBK, the sentiment is Positive. The current price of 21.21 is above the 20-day moving average (MA) of 20.13, above the 50-day MA of 18.83, and above the 200-day MA of 17.93, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 74.64 is Negative, neither overbought nor oversold. The STOCH value of 90.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBBK.

NB Bancorp, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORRF	81 Outperform	$736.27M	10.00	13.43%	2.81%	47.65%	101.00%
IBCP	81 Outperform	$730.84M	10.85	14.51%	2.97%	4.29%	10.56%
THFF	78 Outperform	$766.74M	10.36	12.46%	3.17%	16.57%	69.64%
CAC	77 Outperform	$775.21M	13.06	9.49%	3.66%	24.08%	9.83%
NBBK	74 Outperform	$899.98M	13.67	7.84%	0.66%	14.04%	337.54%
FCBC	72 Outperform	$644.32M	13.12	9.57%	9.26%	-0.40%	-1.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

NB Bancorp, Inc. Corporate Events

NB Bancorp Completes Acquisition of Provident Bancorp

On November 15, 2025, NB Bancorp, Inc., the holding company for Needham Bank, completed its acquisition of Provident Bancorp, Inc. and its subsidiary BankProv. The merger, initially agreed upon in June 2025, resulted in Needham as the surviving entity, with Needham Bank absorbing BankProv. The merger consideration allowed Provident shareholders to choose between receiving Needham stock or cash, with specific allocation and proration procedures ensuring an even split between stock and cash options. Joseph B. Reilly, previously President and CEO of Provident, was appointed as a director of Needham and Needham Bank following the merger. Reilly’s employment with BankProv ended, and he entered into a severance and consulting agreement with Needham Bank, which includes non-competition and non-solicitation clauses.

NB Bancorp Completes Merger with Provident Bancorp

On November 14, 2025, NB Bancorp, Inc. and Provident Bancorp, Inc. announced the completion of their merger, with all conditions satisfied and the transaction set to become effective shortly after midnight on November 15, 2025. The merger will result in the integration of BankProv’s products and services into Needham Bank, and Joseph B. Reilly will join the board of Needham Bank. Provident common stock will be delisted from NASDAQ following the close of trading on November 14, 2025.

NB Bancorp Announces Merger Proration Results

On November 13, 2025, NB Bancorp, Inc. and Provident Bancorp, Inc. announced the results of the proration of the Merger Consideration as part of their planned merger. The merger, initially agreed upon on June 5, 2025, involves Needham’s acquisition of Provident and Provident Bank, with the transaction expected to be completed on November 15, 2025. The merger will result in Provident merging into Needham, with Needham as the surviving entity, followed by BankProv merging into Needham Bank. The terms of the merger allow Provident shareholders to choose between receiving Needham common stock or cash for their shares, subject to allocation and proration procedures. Approximately 16.31% of Provident shares elected to receive stock, 75.33% elected cash, and 8.36% made no election. Needham plans to issue approximately 5,944,350 shares of its common stock as part of the merger.

NB Bancorp Highlights Q3 2025 Financial Performance

On November 4, 2025, NB Bancorp, Inc. presented a slide presentation at an investor meeting, highlighting its financial performance and operations. The company reported a net income of $15.4 million for the third quarter of 2025, with significant growth in gross loans and core deposits. Despite a slight compression in net interest margin, asset quality remained strong, and the company continued to demonstrate prudent risk management and capital stewardship. This presentation underscores NB Bancorp’s stable financial footing and its commitment to responsible growth, which is crucial for stakeholders and its market position.

NB Bancorp Sets Merger Election Deadline with Provident

On October 31, 2025, NB Bancorp, Inc. and Provident Bancorp, Inc. announced the confirmation of the election deadline for Provident stockholders to choose their preferred merger consideration by November 7, 2025. The merger between Needham and Provident is expected to be effective shortly after midnight on November 15, 2025, with the conversion of BankProv’s products and services to Needham Bank’s systems occurring over that weekend. November 14, 2025, will be the last trading day for Provident common stock.

NB Bancorp Declares Quarterly Dividend Amid Strong Q3 Results

On October 22, 2025, NB Bancorp, Inc. declared a quarterly cash dividend of $0.07 per share, payable on November 19, 2025, to shareholders of record as of November 5, 2025. The company reported strong financial results for the third quarter of 2025, with net income of $15.4 million and an increase in both loans and deposits. The company is preparing for the anticipated closing of its acquisition of Provident Bancorp, Inc. in the fourth quarter, which is expected to provide growth opportunities and enhance shareholder value.

NB Bancorp Receives Regulatory Approval for Merger

On October 20, 2025, NB Bancorp, Inc. and Provident Bancorp, Inc. announced that all regulatory approvals for their merger have been received, with completion expected around November 14, 2025. The merger, initially announced on June 5, 2025, aims to expand Needham’s footprint and enhance service offerings, reflecting both companies’ commitment to innovation and community banking.

NB Bancorp Sends Election Materials for Merger

On June 5, 2025, NB Bancorp, Inc. and Provident Bancorp, Inc. entered into a merger agreement, which was approved by Provident stockholders on September 16, 2025. The merger involves Needham acquiring Provident and BankProv, with the transaction expected to be completed by November 15, 2025, pending regulatory approvals. On October 7, 2025, election materials were sent to Provident stockholders to choose between receiving Needham stock, cash, or a combination as part of the merger consideration. The election process is subject to allocation and proration provisions, and the final election deadline is anticipated to be November 7, 2025.