NB Bancorp's FY 2025 Earnings Snapshot

NB Bancorp (NBBK) has just closed out FY 2025 with fourth quarter total revenue of US$64.2 million and basic EPS of US$0.19, alongside quarterly net income of US$7.7 million. Over the past year, the bank has seen total revenue move from US$44.9 million in Q4 FY 2024 to US$64.2 million in Q4 FY 2025, while quarterly EPS shifted from US$0.40 to US$0.19. With trailing 12 month earnings growth reported at 350.6% and net profit margin running at 30.7% versus 8.9% in the prior year, the latest numbers put profitability and margins firmly in focus for investors assessing the new results.

See our full analysis for NB Bancorp.

With the headline figures on the table, the next step is to see how these margins and earnings trends line up with the stories investors already tell about NB Bancorp, and where the fresh data may challenge those views.

Loan Book Growth and Credit Quality Signals

• Total loans in the period data moved from US$4,339.5 million in Q4 FY 2024 to US$4,722.9 million in Q3 FY 2025, while non performing loans sat between US$11.4 million and US$16.0 million across the reported quarters.
• What stands out for a more bullish take is that non performing loans in the trailing 12 month data ranged from US$11.4 million to US$16.0 million, while net profit margin over that same trailing period was 30.7%. This supports the idea of a community bank with credit issues that remain limited relative to a multi hundred million dollar revenue base. However, it also leaves room for bears to point out that commercial and real estate exposures still need close watching.

Net Interest Margin Holds Near 3.8%

• Across FY 2025 quarters with margin data, net interest margin was 3.61% in Q1, 3.82% in Q2 and 3.78% in Q3, paired with cost to income ratios between 56.22% and 58.22%.
• Supporters with a bullish angle often highlight that this kind of 3.6% to 3.8% net interest margin, alongside cost to income ratios near the mid to high 50% range, can reflect a traditional community bank model that is earning a spread on loans and deposits while keeping operating costs contained. Critics can still argue that any future squeeze on that spread or drift higher in that roughly 58% cost base would feed through to profitability.

Valuation Tension at 13.6x P/E

• The trailing 12 month P/E of 13.6x sits slightly above the 13.4x peer average and the 11.4x US Banks industry, while the share price of US$21.59 compares to a DCF fair value figure of US$7.27 in the data.
• For a cautious, more bearish read, earnings growth of roughly 3.5x over the last year and a 30.7% net margin are already being weighed against a P/E premium to the wider banks group and a share price that is far above the cited DCF fair value. This gives skeptics grounds to say the market is assigning a richer multiple than both the DCF model at US$7.27 and the 11.4x industry average would suggest.

On these numbers, some investors will want to see how other banks with similar earnings growth and P/E premiums are priced, and whether alternatives look more comfortable on both margin strength and valuation, so it can be helpful to compare NB Bancorp against a solid balance sheet and fundamentals stocks screener (40 results) when you are thinking about opportunities in this part of the market.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on NB Bancorp's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If parts of this feel optimistic or cautious to you, it is worth checking the numbers yourself and forming your own take. To see which specific strengths our work has identified, have a look at 2 key rewards.

Explore Alternatives

NB Bancorp's earnings strength sits alongside a P/E of 13.6x against an 11.4x industry average and a share price far above the cited DCF figure.

If that valuation tension makes you hesitate, put it to work by comparing today’s price with companies our 49 high quality undervalued stocks has surfaced that currently look more comfortably priced.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.