UVSP - NB Bancorp: Not Impressed
2024-06-23 21:59:28 ET
Summary
- NB Bancorp's value of deposits and other parts of its balance sheet are growing rapidly, but profitability has been weak.
- This creates a mixed and volatile picture at a time when banks need to be bastions of stability.
- The bank's valuation is high compared to its earnings, and asset quality is slightly negative. A 'hold' rating is recommended.
I don't know how other people view investment opportunities. But when I analyze a company, I put it on a spectrum ranging from the worst opportunities on one side to the best on another. Most investments in my mind are fairly easy to categorize in this way. But some are more difficult. A good example of a more difficult one happens to be NB Bancorp ( NBBK ). This bank is most certainly an interesting company. Relative to similar firms, it seems to be more or less average. But it has both positive and negative things going for it. On the positive side, the value of deposits is growing rather rapidly....
NB Bancorp: Not Impressed