1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Price Chart
4. Valuation
5. Offer Terms
6. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
NBBK
Listed on
2023-12-28
Sector
Financials
Subsector
Banks
Offer Price
$10.00
Shares Offered
41M
42.71M
$427.1M
96.0%
Implied Upside vs Midpoint
Description
ANB Bancorp is a newly formed Maryland corporation that will own all of the outstanding shares of common stock of Needham Bank upon completion of the conversion and the offering. NB Bancorp has not engaged in any business to date. Needham Bank Needham Bank is a Massachusetts-chartered cooperative bank headquartered in Needham, Massachusetts. Needham Bank was organized in 1892 and has operated continuously in Needham, Massachusetts, since this time. Our primary market area is the Greater Boston metropolitan area and surrounding communities, including eastern Connecticut, southern New Hampshire and Rhode Island. Our headquarters are located in Needham, Massachusetts, which is approximately 17 miles southwest of Boston’s financial district, and we have branch locations in Wellesley, Westwood, Dedham, Medfield, Medford, Dover, Ashland, Millis, Natick and Boston (Mission Hill), Massachusetts. Our business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in commercial real estate and multifamily loans, one- to four-family residential real estate loans, construction and land development loans, commercial and industrial loans and consumer loans. To a lesser extent, we also originate home equity loans and lines of credit. At June 30, 2023, $1.23 billion, or 34.9%, of our total loan portfolio was comprised of commercial real estate and multifamily loans, and $1.01 billion, or 28.7%, of our total loan portfolio was comprised of one- to four-family residential real estate loans. We also invest in securities, consisting primarily of U.S. Treasury and federal agency securities, municipal bonds and corporate bonds. We offer a variety of deposit accounts, including certificate of deposit accounts, IRAs, money market accounts, savings accounts, demand deposit accounts and interest-bearing and noninterest-bearing checking accounts. We historically have utilized advances from the Federal Home Loan Bank of Boston (the “FHLB”) to fund our operations and we had $337.6 million of FHLB advances outstanding at June 30, 2023. Additionally, in recent years, we have also accepted brokered deposits as a non-retail funding source to fund our operations and we had $253.6 million of brokered deposits at June 30, 2023. Our executive offices are located at 1063 Great Plain Avenue, Needham, Massachusetts 02492. Our telephone number at this address is (781) 444-2100. Our website address is www.needhambank.com.
Priced in line with its peers
| Metric | Value | Peer median | Among peers | |
|---|---|---|---|---|
EV / revenue | 2.4x | 2.5x | ||
Price / earnings | 14.2x | 14.9x | ||
Net margin | 26.3% | 20.3% | ||
Free cash flow margin | 27.3% | 25.9% | ||
Net cash / market cap | 36.7% | 37.2% | ||
Debt / equity | 0.00 | 0.00 | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2023-06-09 | S-1 | — | $10.00 | 34,500,000 | $345.0M |
| 2023-07-27 | S-1/A | — | $10.00 | 4,681,711 | $46.8M |
| 2023-08-08 | S-1/A | — | $10.00 | 4,681,711 | $46.8M |
| 2023-09-01 | S-1/A | — | $10.00 | 4,681,711 | $46.8M |
| 2023-09-29 | S-1/A | — | $10.00 | 4,960,975 | $49.6M |
| 2023-10-02 | S-1/A | — | $10.00 | 4,960,975 | $49.6M |
| 2023-10-10 | S-1/A | — | $10.00 | 4,960,975 | $49.6M |
| 2023-10-20 | 424B3 | — | $10.00 | 4,960,975 | $49.6M |
| 2023-10-20 | 424B3 | — | $10.00 | 35,650,000 | $356.5M |
NB Bancorp, Inc. income statement and balance sheet, FY Dec 2022 to FY Dec 2025, as reported in SEC filings.
| Metric | FY Dec 2022 | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Net income | $30.1M | $9.8M | $42.1M | $50.3M |
| Metric | FY Dec 2022 | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Total assets | $3.6B | $4.5B | $5.2B | — |
| Total liabilities | $3.2B | $3.8B | $4.4B | — |
| Total equity | $344M | $758M | $765M | — |
| Cash & equivalents | $157M | $273M | $364M | — |