Northeast Bank Reports Fourth Quarter Results and Declares Dividend
Northeast Bank (NASDAQ: NBN) reported strong Q4 2025 financial results, with net income reaching $25.2 million ($3.00 per diluted share), up from $15.1 million ($1.91 per diluted share) in Q4 2024. For the full year 2025, net income was $83.4 million ($10.08 per diluted share), compared to $58.2 million in 2024.
The bank's total assets grew to $4.28 billion, a 36.6% increase year-over-year. The loan portfolio, including loans held for sale, expanded to $3.79 billion, up 37.3%. Quarterly loan originations and purchases totaled $365.6 million, with strong performance in National Lending and SBA divisions. The Board declared a cash dividend of $0.01 per share, payable on October 9, 2025.
Northeast Bank (NASDAQ: NBN) ha comunicato risultati finanziari solidi per il quarto trimestre 2025, con un utile netto che ha raggiunto 25,2 milioni di dollari (3,00 dollari per azione diluita), in aumento rispetto ai 15,1 milioni di dollari (1,91 dollari per azione diluita) del quarto trimestre 2024. Per l'intero anno 2025, l'utile netto è stato di 83,4 milioni di dollari (10,08 dollari per azione diluita), rispetto ai 58,2 milioni del 2024.
Gli attivi totali della banca sono cresciuti fino a 4,28 miliardi di dollari, con un incremento del 36,6% su base annua. Il portafoglio prestiti, inclusi i prestiti in vendita, è salito a 3,79 miliardi di dollari, con un aumento del 37,3%. Le nuove erogazioni e acquisizioni di prestiti trimestrali hanno totalizzato 365,6 milioni di dollari, con ottime performance nelle divisioni National Lending e SBA. Il Consiglio ha dichiarato un dividendo in contanti di 0,01 dollari per azione, pagabile il 9 ottobre 2025.
Northeast Bank (NASDAQ: NBN) reportó sólidos resultados financieros en el cuarto trimestre de 2025, con un ingreso neto que alcanzó los 25,2 millones de dólares (3,00 dólares por acción diluida), frente a los 15,1 millones de dólares (1,91 dólares por acción diluida) del cuarto trimestre de 2024. Para todo el año 2025, el ingreso neto fue de 83,4 millones de dólares (10,08 dólares por acción diluida), en comparación con 58,2 millones en 2024.
Los activos totales del banco crecieron hasta 4,28 mil millones de dólares, un aumento del 36,6% interanual. La cartera de préstamos, incluidos los préstamos en venta, se expandió a 3,79 mil millones de dólares, un incremento del 37,3%. Las originaciones y compras trimestrales de préstamos totalizaron 365,6 millones de dólares, con un sólido desempeño en las divisiones de National Lending y SBA. La Junta declaró un dividendo en efectivo de 0,01 dólares por acción, pagadero el 9 de octubre de 2025.
Northeast Bank (NASDAQ: NBN)는 2025년 4분기에 강력한 재무 실적을 보고했으며, 순이익은 2,520만 달러(희석 주당 3.00달러)에 달해 2024년 4분기의 1,510만 달러(희석 주당 1.91달러)에서 증가했습니다. 2025년 전체 순이익은 8,340만 달러(희석 주당 10.08달러)로, 2024년의 5,820만 달러와 비교됩니다.
은행의 총 자산은 42억 8천만 달러로 전년 대비 36.6% 증가했습니다. 매각 예정 대출을 포함한 대출 포트폴리오는 37억 9천만 달러로 37.3% 확대되었습니다. 분기별 대출 신규 및 매입 규모는 3억 6,560만 달러에 달했으며, National Lending 및 SBA 부문에서 강한 실적을 보였습니다. 이사회는 주당 0.01달러의 현금 배당을 선언했으며, 배당금은 2025년 10월 9일에 지급될 예정입니다.
Northeast Bank (NASDAQ : NBN) a annoncé de solides résultats financiers pour le quatrième trimestre 2025, avec un bénéfice net atteignant 25,2 millions de dollars (3,00 dollars par action diluée), en hausse par rapport à 15,1 millions de dollars (1,91 dollar par action diluée) au quatrième trimestre 2024. Pour l'ensemble de l'année 2025, le bénéfice net s'est élevé à 83,4 millions de dollars (10,08 dollars par action diluée), contre 58,2 millions en 2024.
Les actifs totaux de la banque ont augmenté pour atteindre 4,28 milliards de dollars, soit une hausse de 36,6 % d'une année sur l'autre. Le portefeuille de prêts, y compris les prêts détenus en vue de la vente, s'est étendu à 3,79 milliards de dollars, en hausse de 37,3 %. Les octrois et achats de prêts trimestriels ont totalisé 365,6 millions de dollars, avec de solides performances dans les divisions National Lending et SBA. Le conseil d'administration a déclaré un dividende en espèces de 0,01 dollar par action, payable le 9 octobre 2025.
Northeast Bank (NASDAQ: NBN) meldete starke Finanzergebnisse für das vierte Quartal 2025, mit einem Nettogewinn von 25,2 Millionen US-Dollar (3,00 US-Dollar pro verwässerter Aktie), gegenüber 15,1 Millionen US-Dollar (1,91 US-Dollar pro verwässerter Aktie) im vierten Quartal 2024. Für das Gesamtjahr 2025 betrug der Nettogewinn 83,4 Millionen US-Dollar (10,08 US-Dollar pro verwässerter Aktie) im Vergleich zu 58,2 Millionen US-Dollar im Jahr 2024.
Die Gesamtaktiva der Bank stiegen auf 4,28 Milliarden US-Dollar, ein Anstieg von 36,6 % im Jahresvergleich. Das Kreditportfolio, einschließlich der zum Verkauf gehaltenen Kredite, wuchs auf 3,79 Milliarden US-Dollar, ein Plus von 37,3 %. Die quartalsweisen Kreditvergaben und -käufe beliefen sich auf 365,6 Millionen US-Dollar, mit starker Leistung in den Bereichen National Lending und SBA. Der Vorstand erklärte eine Bardividende von 0,01 US-Dollar pro Aktie, zahlbar am 9. Oktober 2025.
- Net income increased 66.9% YoY to $25.2 million in Q4 2025
- Return on average equity of 20.7% and return on average assets of 2.4%
- Total assets grew 36.6% to $4.28 billion
- Loan portfolio expanded 37.3% to $3.79 billion
- SBA National lending grew 199.5% YoY
- Shareholders' equity increased 31.2% to $117.7 million
- Nonperforming assets increased to $35.6 million from $28.3 million YoY
- Tier 1 leverage capital ratio decreased to 11.6% from 12.3% YoY
- Community Banking portfolio declined 19.58% YoY
- Provision for credit losses increased to $3.5 million from $547,000 YoY
Insights
Northeast Bank delivered exceptional quarterly results with 67% YoY earnings growth and significant expansion in loan portfolio and assets.
Northeast Bank has delivered exceptional financial results for Q4 2025, with net income reaching $25.2 million ($3.00 per diluted share), representing a remarkable 66.9% increase from $15.1 million ($1.91 per diluted share) in Q4 2024. The full-year performance was equally impressive, with net income of $83.4 million ($10.08 per diluted share), up 43.3% from $58.2 million in the previous year.
The bank's growth strategy has yielded substantial results across key metrics. Total assets increased by 36.6% to $4.28 billion, while the loan portfolio expanded by 37.3% to $3.79 billion. This growth was primarily driven by the National Lending Division, which saw purchased loans increase by 39.0% and originated loans by 27.5%. Most notable was the 199.5% growth in the SBA National portfolio, reaching $145 million.
Profitability metrics demonstrate the bank's operational efficiency, with return on average equity at 20.7% and return on average assets at 2.4%. The yield on the total loan portfolio remains strong at 9.01%, though slightly down from 9.42% in the year-ago quarter. This compression in yield was offset by volume growth, resulting in interest income on loans increasing by $22 million year-over-year.
Asset quality remains solid with nonperforming assets at 0.8% of total assets, slightly improved from 0.9% a year ago. Past due loans decreased to 0.8% of total loans from 1.0% in the prior year. The bank's capital position remains strong with a Tier 1 leverage ratio of 11.6% and a Total risk-based capital ratio of 14.7%.
The bank's deposit base grew by 44.3%, primarily through time deposits which increased by 71.8%. This was largely driven by brokered deposits (up $752.7 million) and Community Banking Division time deposits (up $156.2 million). The growth in higher-cost time deposits contributed to increased interest expense, somewhat offsetting the growth in interest income.
Northeast Bank's significant growth trajectory appears sustainable, with quarterly loan originations and purchases totaling $365.6 million and annual volume reaching $2.08 billion. The bank's SBA Division has become a significant contributor, with $107.3 million in loans generated in Q4 alone and substantial gains from loan sales.
PORTLAND, Maine, July 28, 2025 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based bank, today reported net income of
The Board of Directors declared a cash dividend of
"I am pleased to report a very strong quarter,” said Rick Wayne, Chief Executive Officer. “Excluding a single quarter in which we had substantial gains from the sale of PPP loans, the June 30, 2025 quarter generated record earnings primarily attributable to record net interest income. We are reporting earnings of
As of June 30, 2025, total assets were
1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the year ended June 30, 2025:
| Loan Portfolio Changes | ||||||||||||
| June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | |||||||||
| (Dollars in thousands) | ||||||||||||
| National Lending Purchased | $ | 2,375,157 | $ | 1,708,551 | $ | 666,606 | 39.02 | % | ||||
| National Lending Originated | 1,251,768 | 981,497 | 270,271 | 27.54 | % | |||||||
| SBA National | 144,974 | 48,405 | 96,569 | 199.50 | % | |||||||
| Community Banking | 18,258 | 22,704 | (4,446 | ) | (19.58 | %) | ||||||
| Total | $ | 3,790,157 | $ | 2,761,157 | $ | 1,029,000 | 37.27 | % | ||||
Loans generated by the Bank's National Lending Division for the quarter ended June 30, 2025 totaled
An overview of the Bank’s National Lending Division portfolio follows:
| National Lending Portfolio | ||||||||||||||||||||||||
| Three Months Ended June 30, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Purchased | Originated | Total | Purchased | Originated | Total | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Loans purchased or originated during the period: | ||||||||||||||||||||||||
| Unpaid principal balance | $ | 44,419 | $ | 216,631 | $ | 261,050 | $ | 160,627 | $ | 114,272 | $ | 274,899 | ||||||||||||
| Initial net investment basis (1) | 41,680 | 216,631 | 258,311 | 143,571 | 114,272 | 257,843 | ||||||||||||||||||
| Loan returns during the period: | ||||||||||||||||||||||||
| Yield | 8.52 | % | 9.95 | % | 8.99 | % | 9.18 | % | 9.68 | % | 9.37 | % | ||||||||||||
| Total Return on Purchased Loans (2) | 8.76 | % | N/A | 8.76 | % | 9.47 | % | N/A | 9.47 | % | ||||||||||||||
| Year Ended June 30, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Purchased | Originated | Total | Purchased | Originated | Total | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Loans purchased or originated during the period: | ||||||||||||||||||||||||
| Unpaid principal balance | $ | 946,112 | $ | 807,923 | $ | 1,754,035 | $ | 432,367 | $ | 399,149 | $ | 831,516 | ||||||||||||
| Initial net investment basis (1) | 863,165 | 807,923 | 1,671,088 | 382,047 | 399,149 | 781,196 | ||||||||||||||||||
| Loan returns during the period: | ||||||||||||||||||||||||
| Yield | 8.62 | % | 9.27 | % | 8.90 | % | 9.01 | % | 9.90 | % | 9.34 | % | ||||||||||||
| Total Return on Purchased Loans (2) | 8.71 | % | N/A | 8.71 | % | 9.11 | % | N/A | 9.11 | % | ||||||||||||||
| Total loans as of period end: | ||||||||||||||||||||||||
| Unpaid principal balance | $ | 2,554,266 | $ | 1,251,768 | $ | 3,806,034 | $ | 1,886,383 | $ | 981,497 | $ | 2,867,880 | ||||||||||||
| Net investment basis | 2,375,157 | 1,251,768 | 3,626,925 | 1,708,551 | 981,497 | 2,690,048 | ||||||||||||||||||
| (1) Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark). (2) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled “Total Return on Purchased Loans.” | ||||||||||||||||||||||||
2. Deposits increased by
3. Federal Home Loan Bank (“FHLB”) advances decreased by
4. Shareholders’ equity increased by
Net income increased by
1. Net interest and dividend income before provision for credit losses increased by
- An increase in interest income earned on loans of
$8.1 million , primarily due to the resolution of a significant nonaccrual National Lending Division originated loan and higher transactional income in the National Lending Division purchased portfolio; and - An increase in interest income earned on short-term investments of
$0.8 million , due to higher average balances, partially offset by lower rates earned; partially offset by, - An increase in deposit interest expense of
$1.4 million , primarily due to higher average balances, partially offset by lower rates on interest-bearing deposits.
The following table summarizes interest income and related yields recognized on the loan portfolios:
| Interest Income and Yield on Loans | |||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Average Balance (1) | Interest Income | Yield | Average Balance (1) | Interest Income | Yield | ||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Community Banking | $ | 19,378 | $ | 321 | 6.64 | % | $ | 23,511 | $ | 381 | 6.52 | % | |||||
| SBA National | 147,628 | 3,621 | 9.84 | % | 40,004 | 1,437 | 14.45 | % | |||||||||
| National Lending: | |||||||||||||||||
| Originated | 1,176,989 | 29,183 | 9.95 | % | 963,946 | 23,204 | 9.68 | % | |||||||||
| Purchased | 2,422,781 | 51,476 | 8.52 | % | 1,645,647 | 37,562 | 9.18 | % | |||||||||
| Total National Lending | 3,599,770 | 80,659 | 8.99 | % | 2,609,593 | 60,766 | 9.37 | % | |||||||||
| Total | $ | 3,766,776 | $ | 84,601 | 9.01 | % | $ | 2,673,108 | $ | 62,584 | 9.42 | % | |||||
| Year Ended June 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Average Balance (1) | Interest Income | Yield | Average Balance (1) | Interest Income | Yield | ||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Community Banking | $ | 20,843 | $ | 1,409 | 6.76 | % | $ | 25,267 | $ | 1,622 | 6.42 | % | |||||
| SBA National | 103,525 | 11,766 | 11.37 | % | 32,581 | 4,270 | 13.11 | % | |||||||||
| National Lending: | |||||||||||||||||
| Originated | 1,083,654 | 100,479 | 9.27 | % | 954,316 | 94,488 | 9.90 | % | |||||||||
| Purchased | 2,242,832 | 193,307 | 8.62 | % | 1,580,485 | 142,342 | 9.01 | % | |||||||||
| Total National Lending | 3,326,486 | 293,786 | 8.83 | % | 2,534,801 | 236,830 | 9.34 | % | |||||||||
| Total | $ | 3,450,854 | $ | 306,961 | 8.90 | % | $ | 2,592,649 | $ | 242,722 | 9.36 | % | |||||
| (1) Includes loans held for sale. | |||||||||||||||||
The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended June 30, 2024, transactional income increased by
| Total Return on Purchased Loans | |||||||||||
| Three Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Income | Return (1) | Income | Return (1) | ||||||||
| (Dollars in thousands) | |||||||||||
| Regularly scheduled interest and accretion | $ | 47,707 | 7.90 | % | $ | 34,504 | 8.43 | % | |||
| Transactional income: | |||||||||||
| Release of allowance for credit losses on purchased loans | 1,404 | 0.23 | % | 1,202 | 0.29 | % | |||||
| Accelerated accretion and loan fees | 3,768 | 0.62 | % | 3,058 | 0.75 | % | |||||
| Total transactional income | 5,172 | 0.86 | % | 4,260 | 1.04 | % | |||||
| Total | $ | 52,879 | 8.76 | % | $ | 38,764 | 9.47 | % | |||
| Year Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Income | Return (1) | Income | Return (1) | ||||||||
| (Dollars in thousands) | |||||||||||
| Regularly scheduled interest and accretion | $ | 183,762 | 8.19 | % | $ | 133,009 | 8.42 | % | |||
| Transactional income: | |||||||||||
| Release of allowance for credit losses on purchased loans | 2,138 | 0.10 | % | 1,558 | 0.10 | % | |||||
| Accelerated accretion and loan fees | 9,545 | 0.43 | % | 9,333 | 0.59 | % | |||||
| Total transactional income | 11,683 | 0.52 | % | 10,891 | 0.69 | % | |||||
| Total | $ | 195,445 | 8.71 | % | $ | 143,900 | 9.11 | % | |||
| (1) The total return on purchased loans represents scheduled accretion, accelerated accretion, and gains (losses) on real estate owned, and release of allowance for credit losses on purchased loans recorded during the period divided by the average invested balance on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure. | |||||||||||
2. Provision for credit losses increased by
3. Noninterest income increased by
4. Noninterest expense increased by
- An increase in salaries and employee benefits expense of
$1.8 million , primarily due to increases in regular stock and incentive compensation expense; - An increase in loan expense of
$2.1 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; and - An increase in Federal Deposit Insurance Corporation (“FDIC”) insurance expense of
$266 thousand , due to the growth of the Bank’s asset size and an increased assessment rate.
5. Income tax expense increased by
As of June 30, 2025, nonperforming assets totaled
As of June 30, 2025, past due loans totaled
As of June 30, 2025, the Bank’s Tier 1 leverage capital ratio was
Investor Call Information
Rick Wayne, Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, Chief Operating Officer and Chief Credit Officer of Northeast Bank, will host a conference call to discuss fourth quarter earnings and business outlook at 1:00 p.m. Eastern Time on Tuesday, July 29th. To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via live webcast, which can be viewed by accessing the Bank’s website at www.northeastbank.com and clicking on the About Us - Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.
About Northeast Bank
Northeast Bank (NASDAQ: NBN) is a bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank’s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the FDIC, in our annual reports to our shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Bank’s control. The Bank’s actual results could differ materially from those expressed or implied by such the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; changes in employment levels, general business and economic conditions on a national basis and in the local markets in which the Bank operates; changes in customer behavior due to changing business and economic conditions (including the impact of actual or threatened tariffs imposed by the U.S. and foreign governments, inflation and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changes in legislation and regulation under the new U.S. presidential administration; operational risks including, but not limited to, cybersecurity, fraud, natural disasters, climate change and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank’s Annual Report on Form 10-K, as amended by Amendment No. 1 to the Annual Report on Form 10-K/A for the year ended June 30, 2024 as updated in the Bank’s Quarterly Reports on Form 10-Q and other filings submitted to the FDIC. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events.
NBN-F
| NORTHEAST BANK | |||||||||||
| BALANCE SHEETS | |||||||||||
| (Dollars in thousands, except share and per share data) | |||||||||||
| June 30, 2025 | June 30, 2024 | ||||||||||
| (unaudited) | (audited) | ||||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 2,908 | $ | 2,711 | |||||||
| Short-term investments | 410,711 | 239,447 | |||||||||
| Total cash and cash equivalents | 413,619 | 242,158 | |||||||||
| Available-for-sale debt securities, at fair value | 15,308 | 48,978 | |||||||||
| Equity securities, at fair value | 7,396 | 7,013 | |||||||||
| Total securities | 22,704 | 55,991 | |||||||||
| SBA loans held for sale | 33,768 | 14,506 | |||||||||
| Loans: | |||||||||||
| Commercial real estate | 2,733,794 | 2,028,280 | |||||||||
| Commercial and industrial | 903,278 | 618,846 | |||||||||
| Residential real estate | 119,158 | 99,234 | |||||||||
| Consumer | 159 | 291 | |||||||||
| Total loans | 3,756,389 | 2,746,651 | |||||||||
| Less: Allowance for credit losses | 47,930 | 26,709 | |||||||||
| Loans, net | 3,708,459 | 2,719,942 | |||||||||
| Premises and equipment, net | 24,704 | 27,144 | |||||||||
| Real estate owned and other possessed collateral, net | 560 | - | |||||||||
| Federal Home Loan Bank stock, at cost | 15,295 | 15,751 | |||||||||
| Loan servicing rights, net | 699 | 984 | |||||||||
| Bank-owned life insurance | 19,329 | 18,830 | |||||||||
| Accrued interest receivable | 16,897 | 15,163 | |||||||||
| Other assets | 23,034 | 21,734 | |||||||||
| Total assets | $ | 4,279,068 | $ | 3,132,203 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Deposits: | |||||||||||
| Demand | $ | 159,274 | $ | 146,727 | |||||||
| Savings and interest checking | 880,016 | 732,029 | |||||||||
| Money market | 92,716 | 154,504 | |||||||||
| Time | 2,243,594 | 1,306,203 | |||||||||
| Total deposits | 3,375,600 | 2,339,463 | |||||||||
| Federal Home Loan Bank advances | 320,191 | 345,190 | |||||||||
| Lease liability | 19,044 | 20,252 | |||||||||
| Other liabilities | 69,947 | 50,664 | |||||||||
| Total liabilities | 3,784,782 | 2,755,569 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders’ equity | |||||||||||
| Preferred stock, | - | - | |||||||||
| Voting common stock, | 8,525 | 8,128 | |||||||||
| Non-voting common stock, | - | - | |||||||||
| Additional paid-in capital | 98,728 | 64,762 | |||||||||
| Retained earnings | 387,035 | 303,927 | |||||||||
| Accumulated other comprehensive loss | (2 | ) | (183 | ) | |||||||
| Total shareholders’ equity | 494,286 | 376,634 | |||||||||
| Total liabilities and shareholders’ equity | $ | 4,279,068 | $ | 3,132,203 | |||||||
| NORTHEAST BANK | |||||||||||||
| STATEMENTS OF INCOME | |||||||||||||
| (Dollars in thousands, except share and per share data) | |||||||||||||
| Three Months Ended June 30, | Year Ended June 30, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||
| Interest and dividend income: | |||||||||||||
| Interest and fees on loans | $ | 84,601 | $ | 62,584 | $ | 306,961 | $ | 242,722 | |||||
| Interest on available-for-sale securities | 294 | 606 | 1,677 | 2,246 | |||||||||
| Other interest and dividend income | 4,798 | 3,377 | 16,902 | 12,918 | |||||||||
| Total interest and dividend income | 89,693 | 66,567 | 325,540 | 257,886 | |||||||||
| Interest expense: | |||||||||||||
| Deposits | 32,022 | 24,619 | 121,981 | 88,391 | |||||||||
| Federal Home Loan Bank advances | 3,524 | 3,785 | 15,278 | 20,032 | |||||||||
| Obligation under capital lease agreements | 216 | 228 | 908 | 891 | |||||||||
| Total interest expense | 35,762 | 28,632 | 138,167 | 109,314 | |||||||||
| Net interest and dividend income before provision for credit losses | 53,931 | 37,935 | 187,373 | 148,572 | |||||||||
| Provision for credit losses | 3,469 | 547 | 8,744 | 1,768 | |||||||||
| Net interest and dividend income after provision for credit losses | 50,462 | 37,388 | 178,629 | 146,804 | |||||||||
| Noninterest income: | |||||||||||||
| Fees for other services to customers | 356 | 466 | 1,553 | 1,684 | |||||||||
| Gain on sales of SBA loans | 8,244 | 1,459 | 23,159 | 3,296 | |||||||||
| Net unrealized gain (loss) on equity securities | 17 | (22 | ) | 123 | (4 | ) | |||||||
| Loss on real estate owned, other repossessed collateral and premises and equipment, net | - | (20 | ) | - | (29 | ) | |||||||
| Bank-owned life insurance income | 126 | 118 | 499 | 466 | |||||||||
| Correspondent fee income | 13 | 39 | 83 | 222 | |||||||||
| Other noninterest income | 12 | 52 | 40 | 245 | |||||||||
| Total noninterest income | 8,768 | 2,092 | 25,457 | 5,880 | |||||||||
| Noninterest expense: | |||||||||||||
| Salaries and employee benefits | 13,036 | 11,204 | 47,983 | 41,613 | |||||||||
| Occupancy and equipment expense | 1,097 | 995 | 4,553 | 4,272 | |||||||||
| Professional fees | 609 | 581 | 2,594 | 2,365 | |||||||||
| Data processing fees | 1,551 | 1,501 | 6,156 | 5,324 | |||||||||
| Marketing expense | 105 | 261 | 423 | 1,000 | |||||||||
| Loan acquisition and collection expense | 2,933 | 853 | 8,558 | 3,255 | |||||||||
| FDIC insurance expense | 611 | 345 | 2,367 | 1,262 | |||||||||
| Other noninterest expense | 1,553 | 1,339 | 5,756 | 5,477 | |||||||||
| Total noninterest expense | 21,495 | 17,079 | 78,390 | 64,568 | |||||||||
| Income before income tax expense | 37,735 | 22,401 | 125,696 | 88,116 | |||||||||
| Income tax expense | 12,519 | 7,261 | 42,253 | 29,885 | |||||||||
| Net income | $ | 25,216 | $ | 15,140 | $ | 83,443 | $ | 58,231 | |||||
| Weighted-average shares outstanding: | |||||||||||||
| Basic | 8,233,002 | 7,765,868 | 8,093,828 | 7,573,217 | |||||||||
| Diluted | 8,413,895 | 7,910,692 | 8,277,547 | 7,679,007 | |||||||||
| Earnings per common share: | |||||||||||||
| Basic | $ | 3.06 | $ | 1.95 | $ | 10.31 | $ | 7.69 | |||||
| Diluted | 3.00 | 1.91 | 10.08 | 7.58 | |||||||||
| Cash dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.04 | $ | 0.04 | |||||
| NORTHEAST BANK | |||||||||||||||||
| AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | ||||||||||||
| Assets: | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Investment securities | $ | 27,539 | $ | 294 | 4.28 | % | $ | 59,752 | $ | 606 | 4.08 | % | |||||
| Loans (1) (2) (3) | 3,766,776 | 84,601 | 9.01 | % | 2,673,108 | 62,584 | 9.42 | % | |||||||||
| Federal Home Loan Bank stock | 15,491 | 303 | 7.85 | % | 15,756 | 369 | 9.42 | % | |||||||||
| Short-term investments (4) | 396,461 | 4,495 | 4.55 | % | 224,498 | 3,008 | 5.39 | % | |||||||||
| Total interest-earning assets | 4,206,267 | 89,693 | 8.55 | % | 2,973,114 | 66,567 | 9.01 | % | |||||||||
| Cash and due from banks | 1,929 | 2,524 | |||||||||||||||
| Other non-interest earning assets | 34,575 | 84,461 | |||||||||||||||
| Total assets | $ | 4,242,771 | $ | 3,060,099 | |||||||||||||
| Liabilities & Shareholders' Equity: | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| NOW accounts | $ | 638,767 | $ | 5,989 | 3.76 | % | $ | 545,965 | $ | 6,105 | 4.50 | % | |||||
| Money market accounts | 93,831 | 532 | 2.27 | % | 157,729 | 1,279 | 3.26 | % | |||||||||
| Savings accounts | 205,317 | 1,446 | 2.82 | % | 163,940 | 1,395 | 3.42 | % | |||||||||
| Time deposits | 2,250,181 | 24,055 | 4.29 | % | 1,267,122 | 15,840 | 5.03 | % | |||||||||
| Total interest-bearing deposits | 3,188,096 | 32,022 | 4.03 | % | 2,134,756 | 24,619 | 4.64 | % | |||||||||
| Federal Home Loan Bank advances | 325,228 | 3,524 | 4.35 | % | 347,726 | 3,785 | 4.38 | % | |||||||||
| Lease liability | 19,194 | 216 | 4.51 | % | 20,533 | 228 | 4.47 | % | |||||||||
| Total interest-bearing liabilities | 3,532,518 | 35,762 | 4.06 | % | 2,503,015 | 28,632 | 4.60 | % | |||||||||
| Non-interest bearing liabilities: | |||||||||||||||||
| Demand deposits and escrow accounts | 152,599 | 162,251 | |||||||||||||||
| Other liabilities | 69,893 | 27,230 | |||||||||||||||
| Total liabilities | 3,755,010 | 2,692,496 | |||||||||||||||
| Shareholders' equity | 487,762 | 367,603 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,242,772 | $ | 3,060,099 | |||||||||||||
| Net interest income | $ | 53,931 | $ | 37,935 | |||||||||||||
| Interest rate spread | 4.49 | % | 4.41 | % | |||||||||||||
| Net interest margin (5) | 5.10 | % | 5.13 | % | |||||||||||||
| Cost of funds (6) | 3.89 | % | 4.32 | % | |||||||||||||
| |||||||||||||||||
| NORTHEAST BANK | |||||||||||||||||
| AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Year Ended June 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | ||||||||||||
| Assets: | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Investment securities | $ | 39,044 | $ | 1677 | 4.30 | % | $ | 59,983 | $ | 2,246 | 3.74 | % | |||||
| Loans (1) (2) (3) | 3,450,854 | 306,961 | 8.90 | % | 2,592,649 | 242,722 | 9.36 | % | |||||||||
| Federal Home Loan Bank stock | 16,016 | 1,280 | 7.99 | % | 19,257 | 1,700 | 8.83 | % | |||||||||
| Short-term investments (4) | 325,747 | 15,622 | 4.80 | % | 209,285 | 11,218 | 5.36 | % | |||||||||
| Total interest-earning assets | 3,831,661 | 325,540 | 8.50 | % | 2,881,174 | 257,886 | 8.95 | % | |||||||||
| Cash and due from banks | 2,147 | 2,493 | |||||||||||||||
| Other non-interest earning assets | 51,921 | 64,570 | |||||||||||||||
| Total assets | $ | 3,885,729 | $ | 2,948,237 | |||||||||||||
| Liabilities & Shareholders' Equity: | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| NOW accounts | $ | 587,824 | $ | 23,491 | 4.00 | % | $ | 517,134 | $ | 22,652 | 4.38 | % | |||||
| Money market accounts | 122,094 | 3,505 | 2.87 | % | 209,080 | 7,039 | 3.37 | % | |||||||||
| Savings accounts | 192,357 | 6,021 | 3.13 | % | 129,455 | 3,999 | 3.09 | % | |||||||||
| Time deposits | 1,960,859 | 88,964 | 4.54 | % | 1,112,548 | 54,701 | 4.92 | % | |||||||||
| Total interest-bearing deposits | 2,863,134 | 121,981 | 4.26 | % | 1,968,217 | 88,391 | 4.49 | % | |||||||||
| Federal Home Loan Bank advances | 349,094 | 15,278 | 4.38 | % | 434,388 | 20,032 | 4.61 | % | |||||||||
| Lease liability | 19,540 | 908 | 4.65 | % | 21,165 | 891 | 4.21 | % | |||||||||
| Total interest-bearing liabilities | 3,231,768 | 138,167 | 4.28 | % | 2,423,770 | 109,314 | 4.51 | % | |||||||||
| Non-interest bearing liabilities: | |||||||||||||||||
| Demand deposits and escrow accounts | 151,010 | 165,789 | |||||||||||||||
| Other liabilities | 64,174 | 25,092 | |||||||||||||||
| Total liabilities | 3,446,952 | 2,614,651 | |||||||||||||||
| Shareholders' equity | 438,777 | 333,586 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,885,729 | $ | 2,948,237 | |||||||||||||
| Net interest income | $ | 187,373 | $ | 148,572 | |||||||||||||
| Interest rate spread | 4.22 | % | 4.44 | % | |||||||||||||
| Net interest margin (5) | 4.82 | % | 5.16 | % | |||||||||||||
| Cost of funds (6) | 4.08 | % | 4.22 | % | |||||||||||||
| |||||||||||||||||
| NORTHEAST BANK | |||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except share and per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Net interest income | $ | 53,931 | $ | 45,951 | $ | 48,490 | $ | 39,000 | $ | 37,935 | |||||||||
| Provision for credit losses | 3,469 | 2,908 | 1,944 | 422 | 547 | ||||||||||||||
| Noninterest income | 8,768 | 6,619 | 5,949 | 4,119 | 2,092 | ||||||||||||||
| Noninterest expense | 21,495 | 20,143 | 19,066 | 17,685 | 17,079 | ||||||||||||||
| Net income | 25,216 | 18,681 | 22,440 | 17,106 | 15,140 | ||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||
| Basic | 8,233,002 | 8,216,746 | 8,044,345 | 7,886,148 | 7,765,868 | ||||||||||||||
| Diluted | 8,413,895 | 8,394,964 | 8,197,568 | 8,108,688 | 7,910,692 | ||||||||||||||
| Earnings per common share: | |||||||||||||||||||
| Basic | $ | 3.06 | $ | 2.27 | $ | 2.79 | $ | 2.17 | $ | 1.95 | |||||||||
| Diluted | 3.00 | 2.23 | 2.74 | 2.11 | 1.91 | ||||||||||||||
| Dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
| Return on average assets | 2.38 | % | 1.86 | % | 2.24 | % | 2.09 | % | 1.99 | % | |||||||||
| Return on average equity | 20.74 | % | 16.47 | % | 21.14 | % | 17.53 | % | 16.56 | % | |||||||||
| Net interest rate spread (1) | 4.49 | % | 3.96 | % | 4.21 | % | 4.18 | % | 4.41 | % | |||||||||
| Net interest margin (2) | 5.10 | % | 4.62 | % | 4.88 | % | 4.90 | % | 5.13 | % | |||||||||
| Efficiency ratio (non-GAAP) (3) | 34.28 | % | 38.32 | % | 35.02 | % | 41.01 | % | 42.67 | % | |||||||||
| Noninterest expense to average total assets | 2.03 | % | 2.00 | % | 1.90 | % | 2.16 | % | 2.24 | % | |||||||||
| Average interest-earning assets to average interest-bearing liabilities | 119.07 | % | 118.64 | % | 118.24 | % | 118.48 | % | 118.78 | % | |||||||||
| As of: | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Nonperforming loans: | |||||||||||||||||||
| Originated portfolio: | |||||||||||||||||||
| Residential real estate | $ | 2,394 | $ | 2,407 | $ | 2,446 | $ | 3,976 | $ | 2,502 | |||||||||
| Commercial real estate | 3,033 | 3,197 | 3,662 | 4,682 | 1,407 | ||||||||||||||
| Commercial and industrial | 5,158 | 6,945 | 6,696 | 6,684 | 6,520 | ||||||||||||||
| Consumer | 2 | 3 | 5 | - | - | ||||||||||||||
| Total originated portfolio | 10,587 | 12,552 | 12,809 | 15,342 | 10,429 | ||||||||||||||
| Total purchased portfolio | 24,424 | 19,680 | 17,257 | 21,830 | 17,832 | ||||||||||||||
| Total nonperforming loans | 35,011 | 32,232 | 30,066 | 37,172 | 28,261 | ||||||||||||||
| Real estate owned and other repossessed collateral, net | 560 | 1,200 | 1,200 | - | - | ||||||||||||||
| Total nonperforming assets | $ | 35,571 | $ | 33,432 | $ | 31,266 | $ | 37,172 | $ | 28,261 | |||||||||
| Past due loans to total loans | 0.80 | % | 0.91 | % | 0.85 | % | 0.89 | % | 0.95 | % | |||||||||
| Nonperforming loans to total loans | 0.93 | % | 0.86 | % | 0.84 | % | 1.06 | % | 1.02 | % | |||||||||
| Nonperforming assets to total assets | 0.83 | % | 0.79 | % | 0.77 | % | 0.94 | % | 0.90 | % | |||||||||
| Allowance for credit losses to total loans | 1.28 | % | 1.23 | % | 1.25 | % | 1.25 | % | 0.97 | % | |||||||||
| Allowance for credit losses to nonperforming loans | 136.90 | % | 142.79 | % | 148.92 | % | 117.40 | % | 94.51 | % | |||||||||
| Net charge-offs (recoveries) | $ | 1,723 | $ | 2,082 | $ | 869 | $ | 1,604 | $ | 1,347 | |||||||||
| Commercial real estate loans to total capital (4) | 486.07 | % | 521.47 | % | 542.12 | % | 604.38 | % | 482.13 | % | |||||||||
| Net loans to deposits | 109.86 | % | 112.10 | % | 112.52 | % | 110.70 | % | 116.88 | % | |||||||||
| Purchased loans to total loans | 63.23 | % | 65.33 | % | 66.63 | % | 69.11 | % | 61.88 | % | |||||||||
| Equity to total assets | 11.55 | % | 11.06 | % | 10.88 | % | 9.96 | % | 12.02 | % | |||||||||
| Common equity tier 1 capital ratio | 13.44 | % | 12.72 | % | 12.66 | % | 11.45 | % | 13.84 | % | |||||||||
| Total risk-based capital ratio | 14.69 | % | 13.97 | % | 13.91 | % | 12.70 | % | 14.82 | % | |||||||||
| Tier 1 leverage capital ratio | 11.64 | % | 11.45 | % | 11.16 | % | 12.06 | % | 12.30 | % | |||||||||
| Total shareholders’ equity | $ | 494,286 | $ | 467,516 | $ | 444,101 | $ | 392,557 | $ | 376,634 | |||||||||
| Less: Preferred stock | - | - | - | - | - | ||||||||||||||
| Common shareholders’ equity | 494,286 | 467,516 | 444,101 | 392,557 | 376,634 | ||||||||||||||
| Less: Intangible assets (5) | - | - | - | - | - | ||||||||||||||
| Tangible common shareholders' equity (non-GAAP) | $ | 494,286 | $ | 467,516 | $ | 444,101 | $ | 392,557 | $ | 376,634 | |||||||||
| Common shares outstanding | 8,525,362 | 8,525,362 | 8,492,856 | 8,212,026 | 8,127,690 | ||||||||||||||
| Book value per common share | $ | 57.98 | $ | 54.84 | $ | 52.29 | $ | 47.80 | $ | 46.34 | |||||||||
| Tangible book value per share (non-GAAP) (5) | 57.98 | 54.84 | 52.29 | 47.80 | 46.34 | ||||||||||||||
| |||||||||||||||||||
For More Information:
Richard Cohen, Chief Financial Officer
Northeast Bank, 27 Pearl Street, Portland, Maine 04101
207.786.3245 ext. 3249
www.northeastbank.com
FAQ
What were Northeast Bank's (NBN) Q4 2025 earnings per share?
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