Northeast Bank Reports Third Quarter Results and Declares Dividend
Northeast Bank reported strong Q3 2025 financial results with net income of $18.7 million ($2.23 per diluted share), up from $13.9 million ($1.83 per diluted share) in Q3 2024. The bank declared a $0.01 cash dividend payable May 27, 2025.
Key highlights:
- National Lending Division generated $292.5 million in originated and purchased loans
- SBA 7(a) program grew to $121.3 million in quarterly originations
- Total loan portfolio reached $3.80 billion, up 37.7% from June 2024
- Total assets increased to $4.23 billion, a 35% rise
- Return on equity: 16.5%
- Return on assets: 1.9%
Deposits increased by $956.3 million (40.9%), primarily driven by time deposits. The bank's Tier 1 leverage capital ratio stood at 11.5%, while nonperforming assets were 0.79% of total assets. SBA loan sales of $73.6 million generated a $6.0 million gain.
Northeast Bank ha riportato solidi risultati finanziari nel terzo trimestre del 2025 con un utile netto di 18,7 milioni di dollari (2,23 dollari per azione diluita), in aumento rispetto ai 13,9 milioni di dollari (1,83 dollari per azione diluita) del terzo trimestre 2024. La banca ha dichiarato un dividendo in contanti di 0,01 dollari per azione, pagabile il 27 maggio 2025.
Punti chiave:
- La Divisione Prestiti Nazionali ha generato 292,5 milioni di dollari in prestiti originati e acquistati
- Il programma SBA 7(a) è cresciuto fino a 121,3 milioni di dollari in originazioni trimestrali
- Il portafoglio totale di prestiti ha raggiunto 3,80 miliardi di dollari, con un aumento del 37,7% rispetto a giugno 2024
- Gli asset totali sono saliti a 4,23 miliardi di dollari, con un incremento del 35%
- Rendimento del capitale proprio: 16,5%
- Rendimento degli asset: 1,9%
I depositi sono aumentati di 956,3 milioni di dollari (40,9%), principalmente grazie ai depositi a termine. Il rapporto di leva patrimoniale Tier 1 della banca si è attestato all'11,5%, mentre gli asset non performanti rappresentavano lo 0,79% del totale degli asset. Le vendite di prestiti SBA per 73,6 milioni di dollari hanno generato un guadagno di 6,0 milioni di dollari.
Northeast Bank reportó sólidos resultados financieros en el tercer trimestre de 2025 con un ingreso neto de 18,7 millones de dólares (2,23 dólares por acción diluida), frente a los 13,9 millones de dólares (1,83 dólares por acción diluida) en el tercer trimestre de 2024. El banco declaró un dividendo en efectivo de 0,01 dólares por acción, pagadero el 27 de mayo de 2025.
Puntos clave:
- La División Nacional de Préstamos generó 292,5 millones de dólares en préstamos originados y comprados
- El programa SBA 7(a) creció hasta 121,3 millones de dólares en originaciones trimestrales
- La cartera total de préstamos alcanzó los 3,80 mil millones de dólares, un aumento del 37,7% desde junio de 2024
- Los activos totales aumentaron a 4,23 mil millones de dólares, un incremento del 35%
- Retorno sobre el patrimonio: 16,5%
- Retorno sobre los activos: 1,9%
Los depósitos aumentaron en 956,3 millones de dólares (40,9%), impulsados principalmente por los depósitos a plazo. La ratio de capital de apalancamiento Tier 1 del banco se situó en 11,5%, mientras que los activos improductivos representaron el 0,79% del total de activos. Las ventas de préstamos SBA por 73,6 millones de dólares generaron una ganancia de 6,0 millones de dólares.
Northeast Bank는 2025년 3분기에 강력한 재무 실적을 보고했으며, 희석 주당 2.23달러(순이익 1,870만 달러)를 기록해 2024년 3분기의 1.83달러(1,390만 달러)에서 증가했습니다. 은행은 2025년 5월 27일 지급 예정인 주당 0.01달러 현금 배당을 선언했습니다.
주요 내용:
- 국가 대출 부문에서 2억 9,250만 달러의 신규 대출 및 매입 대출 발생
- SBA 7(a) 프로그램 분기별 신규 대출액이 1억 2,130만 달러로 성장
- 총 대출 포트폴리오가 38억 달러에 도달하여 2024년 6월 대비 37.7% 증가
- 총 자산은 42억 3천만 달러로 35% 상승
- 자기자본이익률: 16.5%
- 총자산수익률: 1.9%
예금은 주로 정기예금에 힘입어 9억 5,630만 달러(40.9%) 증가했습니다. 은행의 Tier 1 레버리지 자본 비율은 11.5%였으며, 부실 자산은 총 자산의 0.79%를 차지했습니다. SBA 대출 매각액 7,360만 달러로 600만 달러의 이익을 창출했습니다.
Northeast Bank a annoncé de solides résultats financiers pour le troisième trimestre 2025 avec un bénéfice net de 18,7 millions de dollars (2,23 dollars par action diluée), en hausse par rapport à 13,9 millions de dollars (1,83 dollar par action diluée) au troisième trimestre 2024. La banque a déclaré un dividende en espèces de 0,01 dollar par action, payable le 27 mai 2025.
Points clés :
- La division des prêts nationaux a généré 292,5 millions de dollars en prêts accordés et achetés
- Le programme SBA 7(a) a atteint 121,3 millions de dollars en originations trimestrielles
- Le portefeuille total de prêts a atteint 3,80 milliards de dollars, en hausse de 37,7 % depuis juin 2024
- Les actifs totaux ont augmenté à 4,23 milliards de dollars, soit une hausse de 35 %
- Retour sur fonds propres : 16,5 %
- Retour sur actifs : 1,9 %
Les dépôts ont augmenté de 956,3 millions de dollars (40,9 %), principalement grâce aux dépôts à terme. Le ratio de levier de fonds propres Tier 1 de la banque s'établissait à 11,5 %, tandis que les actifs non performants représentaient 0,79 % du total des actifs. Les ventes de prêts SBA pour 73,6 millions de dollars ont généré un gain de 6,0 millions de dollars.
Northeast Bank meldete starke Finanzergebnisse für das dritte Quartal 2025 mit einem Nettogewinn von 18,7 Millionen US-Dollar (2,23 US-Dollar je verwässerter Aktie), gegenüber 13,9 Millionen US-Dollar (1,83 US-Dollar je verwässerter Aktie) im dritten Quartal 2024. Die Bank erklärte eine Bardividende von 0,01 US-Dollar je Aktie, zahlbar am 27. Mai 2025.
Wichtige Highlights:
- Die nationale Kreditabteilung generierte 292,5 Millionen US-Dollar an vergebenen und gekauften Krediten
- Das SBA 7(a)-Programm wuchs auf 121,3 Millionen US-Dollar an vierteljährlichen Vergaben
- Das gesamte Kreditportfolio erreichte 3,80 Milliarden US-Dollar, ein Anstieg von 37,7 % seit Juni 2024
- Die Gesamtaktiva stiegen auf 4,23 Milliarden US-Dollar, ein Plus von 35 %
- Eigenkapitalrendite: 16,5 %
- Gesamtkapitalrendite: 1,9 %
Die Einlagen stiegen um 956,3 Millionen US-Dollar (40,9 %), hauptsächlich getrieben durch Termineinlagen. Die Tier-1-Leverage-Kapitalquote der Bank lag bei 11,5 %, während notleidende Vermögenswerte 0,79 % der Gesamtaktiva ausmachten. SBA-Kreditverkäufe in Höhe von 73,6 Millionen US-Dollar erzielten einen Gewinn von 6,0 Millionen US-Dollar.
- Net income increased 34.5% YoY to $18.7M ($2.23 per share) in Q3 2025
- Total assets grew 35% to $4.23B from $3.13B in June 2024
- Loan portfolio expanded 37.7% to $3.80B since June 2024
- SBA loan originations grew significantly to $121.3M vs $29.0M YoY
- Generated $6.0M gain from sale of SBA loans in Q3
- Strong ROE of 16.5% and ROA of 1.9%
- Shareholders' equity increased 24.1% from June 2024
- Successfully raised $31.3M through ATM program
- Tier 1 leverage capital ratio decreased to 11.5% from 12.3%
- Total risk-based capital ratio declined to 14.0% from 14.8%
- Nonperforming assets increased to $33.4M from $28.3M
- Higher provision for credit losses at $2.9M vs $596K YoY
- Community Banking loan portfolio decreased 14.13%
- Higher effective tax rate of 36.7% vs 34.1% YoY
Insights
Northeast Bank reported impressive Q3 results with 34.5% YoY net income growth and 37.7% loan portfolio expansion while maintaining solid asset quality.
Northeast Bank delivered robust financial results for Q3 FY2025, with net income reaching
The bank's growth strategy shows remarkable traction, with the loan portfolio expanding by
Revenue diversification is evident through strong secondary market activity, with the bank selling
While this rapid growth has moderately impacted capital ratios - Tier 1 leverage capital decreased to
Profitability metrics demonstrate exceptional performance, with return on average equity at
PORTLAND, Maine, April 29, 2025 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based bank, today reported net income of
The Board of Directors declared a cash dividend of
“We recorded strong loan volume during the third fiscal quarter,” said Rick Wayne, Chief Executive Officer. “Our National Lending Division generated
As of March 31, 2025, total assets were
1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the nine months ended March 31, 2025:
| Loan Portfolio Changes | |||||||||||||||
| March 31, 2025 Balance | June 30, 2024 Balance | Change ($) | Change (%) | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| National Lending Purchased | $ | 2,443,822 | $ | 1,708,551 | $ | 735,271 | 43.03 | % | |||||||
| National Lending Originated | 1,185,153 | 981,497 | 203,656 | 20.75 | % | ||||||||||
| SBA National | 152,319 | 48,405 | 103,914 | 214.68 | % | ||||||||||
| Community Banking | 19,495 | 22,704 | (3,209 | ) | (14.13 | %) | |||||||||
| Total | $ | 3,800,789 | $ | 2,761,157 | $ | 1,039,632 | 37.65 | % | |||||||
Loans generated by the Bank's National Lending Division for the quarter ended March 31, 2025 totaled
An overview of the Bank’s National Lending Division portfolio follows:
| National Lending Portfolio | |||||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Purchased | Originated | Total | Purchased | Originated | Total | ||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Loans purchased or originated during the period: | |||||||||||||||||||||||
| Unpaid principal balance | $ | 79,144 | $ | 217,983 | $ | 297,127 | $ | - | $ | 153,349 | $ | 153,349 | |||||||||||
| Initial net investment basis (1) | 74,553 | 217,983 | 292,536 | - | 153,349 | 153,349 | |||||||||||||||||
| Loan returns during the period: | |||||||||||||||||||||||
| Yield | |||||||||||||||||||||||
| Total Return on Purchased Loans (2) | N/A | N/A | |||||||||||||||||||||
| Nine Months Ended March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Purchased | Originated | Total | Purchased | Originated | Total | ||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Loans purchased or originated during the period: | |||||||||||||||||||||||
| Unpaid principal balance | $ | 901,693 | $ | 591,292 | $ | 1,492,985 | $ | 271,741 | $ | 284,876 | $ | 556,617 | |||||||||||
| Initial net investment basis (1) | 821,485 | 591,292 | 1,412,777 | 238,477 | 284,876 | 523,353 | |||||||||||||||||
| Loan returns during the period: | |||||||||||||||||||||||
| Yield | |||||||||||||||||||||||
| Total Return on Purchased Loans (2) | N/A | N/A | |||||||||||||||||||||
| Total loans as of period end: | |||||||||||||||||||||||
| Unpaid principal balance | $ | 2,638,438 | $ | 1,185,153 | $ | 3,823,591 | $ | 1,794,669 | $ | 975,876 | $ | 2,770,545 | |||||||||||
| Net investment basis | 2,443,822 | 1,185,153 | 3,628,975 | 1,620,409 | 975,876 | 2,596,285 | |||||||||||||||||
| (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 increased 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
$15.8 million , primarily due to higher average balances in the National Lending Division purchased and Small Business Administration (“SBA”) portfolios, partially offset by lower rates earned across the portfolio; and - An increase in interest income earned on short-term investments of
$965 thousand , due to higher average balances, partially offset by lower rates earned; partially offset by, - An increase in deposit interest expense of
$7.3 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 March 31, | |||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||
| Average | Interest | Average | Interest | ||||||||||||||||||
| Balance (1) | Income | Yield | Balance (1) | Income | Yield | ||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Community Banking | $ | 20,074 | $ | 349 | 7.05 | % | $ | 24,640 | $ | 387 | 6.32 | % | |||||||||
| SBA National | 121,521 | 2,975 | 9.93 | % | 35,848 | 1,159 | 13.00 | % | |||||||||||||
| National Lending: | |||||||||||||||||||||
| Originated | 1,120,756 | 24,120 | 8.73 | % | 953,401 | 23,909 | 10.09 | % | |||||||||||||
| Purchased | 2,387,715 | 49,034 | 8.33 | % | 1,635,494 | 35,260 | 8.67 | % | |||||||||||||
| Total National Lending | 3,508,471 | 73,154 | 8.46 | % | 2,588,895 | 59,169 | 9.19 | % | |||||||||||||
| Total | $ | 3,650,066 | $ | 76,478 | 8.50 | % | $ | 2,649,383 | $ | 60,715 | 9.22 | % | |||||||||
| Nine Months Ended March 31, | |||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||
| Average | Interest | Average | Interest | ||||||||||||||||||
| Balance (1) | Income | Yield | Balance (1) | Income | Yield | ||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Community Banking | $ | 21,330 | $ | 1,088 | 6.79 | % | $ | 25,786 | $ | 1,242 | 6.41 | % | |||||||||
| SBA National | 91,481 | 8,145 | 11.86 | % | 30,125 | 2,833 | 12.52 | % | |||||||||||||
| National Lending: | |||||||||||||||||||||
| Originated | 1,052,656 | 71,297 | 9.02 | % | 951,129 | 71,284 | 9.97 | % | |||||||||||||
| Purchased | 2,183,068 | 141,831 | 8.65 | % | 1,558,362 | 104,780 | 8.95 | % | |||||||||||||
| Total National Lending | 3,235,724 | 213,128 | 8.77 | % | 2,509,491 | 176,064 | 9.34 | % | |||||||||||||
| Total | $ | 3,348,535 | $ | 222,361 | 8.85 | % | $ | 2,565,402 | $ | 180,139 | 9.35 | % | |||||||||
| (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 March 31, 2024, transactional income increased by
| Total Return on Purchased Loans | |||||||||||||||
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
| Income | Return (1) | Income | Return (1) | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Regularly scheduled interest and accretion | $ | 48,149 | 8.18 | % | $ | 34,045 | 8.37 | % | |||||||
| Transactional income: | |||||||||||||||
| Release of allowance for credit losses on purchased loans | 573 | 0.10 | % | 130 | 0.03 | % | |||||||||
| Accelerated accretion and loan fees | 885 | 0.15 | % | 1,215 | 0.30 | % | |||||||||
| Total transactional income | 1,458 | 0.25 | % | 1,345 | 0.33 | % | |||||||||
| Total | $ | 49,607 | 8.43 | % | $ | 35,390 | 8.70 | % | |||||||
| Nine Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
| Income | Return (1) | Income | Return (1) | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Regularly scheduled interest and accretion | $ | 136,055 | 8.30 | % | $ | 98,505 | 8.41 | % | |||||||
| Transactional income: | |||||||||||||||
| Release of allowance for credit losses on purchased loans | 734 | 0.05 | % | 356 | 0.03 | % | |||||||||
| Accelerated accretion and loan fees | 5,775 | 0.35 | % | 6,275 | 0.54 | % | |||||||||
| Total transactional income | 6,509 | 0.40 | % | 6,631 | 0.57 | % | |||||||||
| Total | $ | 142,564 | 8.70 | % | $ | 105,136 | 8.98 | % | |||||||
| (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
$1.7 million , primarily due to increases in regular, stock compensation expense and incentive compensation expense; - An increase in loan expense of
$1.5 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; and - An increase in Federal Deposit Insurance Corporation (the “FDIC”) insurance expense of
$195 thousand , due to the growth of the Bank’s asset size and an increased assessment rate.
5. Income tax expense increased by
As of March 31, 2025, nonperforming assets totaled
As of March 31, 2025, past due loans totaled
As of March 31, 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 third quarter earnings and business outlook at 10:00 a.m. Eastern Time on Wednesday, April 30th. 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 recently imposed tariffs by the U.S. Administration 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 | |||||||
| (Unaudited) | |||||||
| (Dollars in thousands, except share and per share data) | |||||||
| March 31, 2025 | June 30, 2024 | ||||||
| Assets | |||||||
| Cash and due from banks | $ | 2,443 | $ | 2,711 | |||
| Short-term investments | 341,633 | 239,447 | |||||
| Total cash and cash equivalents | 344,076 | 242,158 | |||||
| Available-for-sale debt securities, at fair value | 21,473 | 48,978 | |||||
| Equity securities, at fair value | 7,314 | 7,013 | |||||
| Total investment securities | 28,787 | 55,991 | |||||
| SBA loans held for sale | 60,339 | 14,506 | |||||
| Loans: | |||||||
| Commercial real estate | 2,764,809 | 2,028,280 | |||||
| Commercial and industrial | 852,985 | 618,846 | |||||
| Residential real estate | 122,466 | 99,234 | |||||
| Consumer | 190 | 291 | |||||
| Total loans | 3,740,450 | 2,746,651 | |||||
| Less: Allowance for credit losses | 46,024 | 26,709 | |||||
| Loans, net | 3,694,426 | 2,719,942 | |||||
| Premises and equipment, net | 25,338 | 27,144 | |||||
| Real estate owned and other possessed collateral, net | 1,200 | - | |||||
| Federal Home Loan Bank stock, at cost | 16,106 | 15,751 | |||||
| Loan servicing rights, net | 810 | 984 | |||||
| Bank-owned life insurance | 19,203 | 18,830 | |||||
| Accrued interest receivable | 17,445 | 15,163 | |||||
| Other assets | 20,772 | 21,734 | |||||
| Total assets | $ | 4,228,502 | $ | 3,132,203 | |||
| Liabilities and Shareholders' Equity | |||||||
| Deposits: | |||||||
| Demand | $ | 154,540 | $ | 146,727 | |||
| Savings and interest checking | 796,762 | 732,029 | |||||
| Money market | 94,837 | 154,504 | |||||
| Time | 2,249,654 | 1,306,203 | |||||
| Total deposits | 3,295,793 | 2,339,463 | |||||
| Federal Home Loan Bank and other advances | 378,543 | 345,190 | |||||
| Lease liability | 19,465 | 20,252 | |||||
| Other liabilities | 67,185 | 50,664 | |||||
| Total liabilities | 3,760,986 | 2,755,569 | |||||
| Commitments and contingencies | - | - | |||||
| Shareholders' equity | |||||||
| Preferred stock, | |||||||
| issued and outstanding at March 31, 2025 and June 30, 2024 | - | - | |||||
| Voting common stock, | |||||||
| 8,525,362 and 8,127,690 shares issued and outstanding at | |||||||
| March 31, 2025 and June 30, 2024, respectively | 8,525 | 8,128 | |||||
| Non-voting common stock, | |||||||
| No shares issued and outstanding at March 31, 2025 and June 30, 2024 | - | - | |||||
| Additional paid-in capital | 97,078 | 64,762 | |||||
| Retained earnings | 361,901 | 303,927 | |||||
| Accumulated other comprehensive income (loss) | 12 | (183 | ) | ||||
| Total shareholders' equity | 467,516 | 376,634 | |||||
| Total liabilities and shareholders' equity | $ | 4,228,502 | $ | 3,132,203 | |||
| NORTHEAST BANK | ||||||||||||||||
| STATEMENTS OF INCOME | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Dollars in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Interest and fees on loans | $ | 76,478 | $ | 60,715 | $ | 222,361 | $ | 180,139 | ||||||||
| Interest on available-for-sale securities | 352 | 596 | 1,383 | 1,639 | ||||||||||||
| Other interest and dividend income | 3,996 | 3,179 | 12,104 | 9,541 | ||||||||||||
| Total interest and dividend income | 80,826 | 64,490 | 235,848 | 191,319 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 30,593 | 23,340 | 89,959 | 63,772 | ||||||||||||
| Federal Home Loan Bank advances | 4,057 | 4,401 | 11,754 | 16,247 | ||||||||||||
| Obligation under capital lease agreements | 225 | 237 | 691 | 664 | ||||||||||||
| Total interest expense | 34,875 | 27,978 | 102,404 | 80,683 | ||||||||||||
| Net interest and dividend income before provision for credit losses | 45,951 | 36,512 | 133,444 | 110,636 | ||||||||||||
| Provision for credit losses | 2,908 | 596 | 5,275 | 1,221 | ||||||||||||
| Net interest and dividend income after provision for credit losses | 43,043 | 35,916 | 128,169 | 109,415 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Fees for other services to customers | 362 | 320 | 1,197 | 1,218 | ||||||||||||
| Gain on sales of SBA loans | 6,014 | 1,015 | 14,915 | 1,837 | ||||||||||||
| Net unrealized gain (loss) on equity securities | 79 | (55 | ) | 106 | 17 | |||||||||||
| Loss on real estate owned, other repossessed collateral and premises and equipment, net | - | - | - | (9 | ) | |||||||||||
| Bank-owned life insurance income | 124 | 116 | 372 | 348 | ||||||||||||
| Correspondent fee income | 16 | 40 | 69 | 183 | ||||||||||||
| Other noninterest income | 24 | 106 | 28 | 194 | ||||||||||||
| Total noninterest income | 6,619 | 1,542 | 16,687 | 3,788 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 12,477 | 10,784 | 34,947 | 30,409 | ||||||||||||
| Occupancy and equipment expense | 1,275 | 1,072 | 3,456 | 3,277 | ||||||||||||
| Professional fees | 669 | 503 | 1,985 | 1,784 | ||||||||||||
| Data processing fees | 1,496 | 1,376 | 4,605 | 3,823 | ||||||||||||
| Marketing expense | 89 | 256 | 318 | 738 | ||||||||||||
| Loan acquisition and collection expense | 2,270 | 813 | 5,626 | 2,402 | ||||||||||||
| FDIC insurance expense | 468 | 273 | 1,756 | 917 | ||||||||||||
| Other noninterest expense | 1,399 | 1,352 | 4,203 | 4,138 | ||||||||||||
| Total noninterest expense | 20,143 | 16,429 | 56,896 | 47,488 | ||||||||||||
| Income before income tax expense | 29,519 | 21,029 | 87,960 | 65,715 | ||||||||||||
| Income tax expense | 10,838 | 7,164 | 29,734 | 22,624 | ||||||||||||
| Net income | $ | 18,681 | $ | 13,865 | $ | 58,226 | $ | 43,091 | ||||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 8,216,746 | 7,509,320 | 8,047,775 | 7,510,065 | ||||||||||||
| Diluted | 8,394,964 | 7,595,124 | 8,232,435 | 7,602,844 | ||||||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 2.27 | $ | 1.85 | $ | 7.24 | $ | 5.74 | ||||||||
| Diluted | 2.23 | 1.83 | 7.07 | 5.67 | ||||||||||||
| Cash dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.03 | $ | 0.03 | ||||||||
| NORTHEAST BANK | |||||||||||||||||||||
| AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
| Assets: | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Investment securities | $ | 32,963 | $ | 352 | 4.33 | % | $ | 60,211 | $ | 596 | 3.98 | % | |||||||||
| Loans (1) (2) (3) | 3,650,066 | 76,478 | 8.50 | % | 2,649,383 | 60,715 | 9.22 | % | |||||||||||||
| Federal Home Loan Bank stock | 16,657 | 301 | 7.33 | % | 17,636 | 449 | 10.24 | % | |||||||||||||
| Short-term investments (4) | 336,877 | 3,695 | 4.45 | % | 204,869 | 2,730 | 5.36 | % | |||||||||||||
| Total interest-earning assets | 4,036,563 | 80,826 | 8.12 | % | 2,932,099 | 64,490 | 8.85 | % | |||||||||||||
| Cash and due from banks | 2,332 | 2,446 | |||||||||||||||||||
| Other non-interest earning assets | 39,847 | 50,227 | |||||||||||||||||||
| Total assets | $ | 4,078,742 | $ | 2,984,772 | |||||||||||||||||
| Liabilities & Shareholders' Equity: | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| NOW accounts | $ | 566,932 | $ | 5,190 | 3.71 | % | $ | 524,301 | $ | 5,767 | 4.42 | % | |||||||||
| Money market accounts | 116,647 | 754 | 2.62 | % | 190,379 | 1,619 | 3.42 | % | |||||||||||||
| Savings accounts | 198,094 | 1,365 | 2.79 | % | 140,737 | 1,126 | 3.22 | % | |||||||||||||
| Time deposits | 2,129,320 | 23,284 | 4.43 | % | 1,185,558 | 14,828 | 5.03 | % | |||||||||||||
| Total interest-bearing deposits | 3,010,993 | 30,593 | 4.12 | % | 2,040,975 | 23,340 | 4.60 | % | |||||||||||||
| Federal Home Loan Bank advances | 372,029 | 4,057 | 4.42 | % | 396,130 | 4,401 | 4.47 | % | |||||||||||||
| Lease liability | 19,340 | 225 | 4.72 | % | 20,981 | 237 | 4.54 | % | |||||||||||||
| Total interest-bearing liabilities | 3,402,362 | 34,875 | 4.16 | % | 2,458,086 | 27,978 | 4.58 | % | |||||||||||||
| Non-interest bearing liabilities: | |||||||||||||||||||||
| Demand deposits and escrow accounts | 183,348 | 163,042 | |||||||||||||||||||
| Other liabilities | 33,025 | 24,571 | |||||||||||||||||||
| Total liabilities | 3,618,735 | 2,645,699 | |||||||||||||||||||
| Shareholders' equity | 460,007 | 339,073 | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,078,742 | $ | 2,984,772 | |||||||||||||||||
| Net interest income | $ | 45,951 | $ | 36,512 | |||||||||||||||||
| Interest rate spread | 3.96 | % | 4.27 | % | |||||||||||||||||
| Net interest margin (5) | 4.62 | % | 5.01 | % | |||||||||||||||||
| Cost of funds (6) | 3.94 | % | 4.29 | % | |||||||||||||||||
| (1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate. | |||||||||||||||||||||
| (2) Includes loans held for sale. | |||||||||||||||||||||
| (3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income. | |||||||||||||||||||||
| (4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits. | |||||||||||||||||||||
| (5) Net interest margin is calculated as net interest income divided by total interest-earning assets. | |||||||||||||||||||||
| (6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts. | |||||||||||||||||||||
| NORTHEAST BANK | |||||||||||||||||||||
| AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Nine Months Ended March 31, | |||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
| Assets: | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Investment securities | $ | 42,865 | $ | 1,383 | 4.30 | % | $ | 60,060 | $ | 1,639 | 3.63 | % | |||||||||
| Loans (1) (2) (3) | 3,348,535 | 222,361 | 8.85 | % | 2,565,402 | 180,139 | 9.35 | % | |||||||||||||
| Federal Home Loan Bank stock | 16,190 | 977 | 8.04 | % | 20,415 | 1,331 | 8.68 | % | |||||||||||||
| Short-term investments (4) | 302,262 | 11,127 | 4.90 | % | 204,252 | 8,210 | 5.35 | % | |||||||||||||
| Total interest-earning assets | 3,709,852 | 235,848 | 8.47 | % | 2,850,129 | 191,319 | 8.93 | % | |||||||||||||
| Cash and due from banks | 2,219 | 2,482 | |||||||||||||||||||
| Other non-interest earning assets | 55,078 | 58,609 | |||||||||||||||||||
| Total assets | $ | 3,767,149 | $ | 2,911,220 | |||||||||||||||||
| Liabilities & Shareholders' Equity: | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| NOW accounts | $ | 570,906 | $ | 17,014 | 3.97 | % | $ | 507,594 | $ | 16,548 | 4.34 | % | |||||||||
| Money market accounts | 131,481 | 2,972 | 3.01 | % | 226,072 | 5,760 | 3.39 | % | |||||||||||||
| Savings accounts | 188,053 | 4,575 | 3.24 | % | 118,044 | 2,603 | 2.93 | % | |||||||||||||
| Time deposits | 1,864,771 | 65,398 | 4.67 | % | 1,061,399 | 38,861 | 4.87 | % | |||||||||||||
| Total interest-bearing deposits | 2,755,211 | 89,959 | 4.35 | % | 1,913,109 | 63,772 | 4.44 | % | |||||||||||||
| Federal Home Loan Bank advances | 357,020 | 11,754 | 4.39 | % | 463,065 | 16,247 | 4.67 | % | |||||||||||||
| Lease liability | 19,655 | 691 | 4.68 | % | 21,373 | 664 | 4.13 | % | |||||||||||||
| Total interest-bearing liabilities | 3,131,886 | 102,404 | 4.36 | % | 2,397,547 | 80,683 | 4.48 | % | |||||||||||||
| Non-interest bearing liabilities: | |||||||||||||||||||||
| Demand deposits and escrow accounts | 182,877 | 166,955 | |||||||||||||||||||
| Other liabilities | 29,877 | 24,388 | |||||||||||||||||||
| Total liabilities | 3,344,640 | 2,588,890 | |||||||||||||||||||
| Shareholders' equity | 422,509 | 322,330 | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,767,149 | $ | 2,911,220 | |||||||||||||||||
| Net interest income | $ | 133,444 | $ | 110,636 | |||||||||||||||||
| Interest rate spread | 4.11 | % | 4.45 | % | |||||||||||||||||
| Net interest margin (5) | 4.79 | % | 5.17 | % | |||||||||||||||||
| Cost of funds (6) | 4.12 | % | 4.19 | % | |||||||||||||||||
| (1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate. | |||||||||||||||||||||
| (2) Includes loans held for sale. | |||||||||||||||||||||
| (3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income. | |||||||||||||||||||||
| (4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits. | |||||||||||||||||||||
| (5) Net interest margin is calculated as net interest income divided by total interest-earning assets. | |||||||||||||||||||||
| (6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts. | |||||||||||||||||||||
| NORTHEAST BANK | |||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except share and per share data) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||
| Net interest income | $ | 45,951 | $ | 48,490 | $ | 39,000 | $ | 37,935 | $ | 36,512 | |||||||||
| Provision for credit losses | 2,908 | 1,944 | 422 | 547 | 596 | ||||||||||||||
| Noninterest income | 6,619 | 5,949 | 4,119 | 2,092 | 1,542 | ||||||||||||||
| Noninterest expense | 20,143 | 19,066 | 17,685 | 17,079 | 16,429 | ||||||||||||||
| Net income | 18,681 | 22,440 | 17,106 | 15,140 | 13,865 | ||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||
| Basic | 8,216,746 | 8,044,345 | 7,886,148 | 7,765,868 | 7,509,320 | ||||||||||||||
| Diluted | 8,394,964 | 8,197,568 | 8,108,688 | 7,910,692 | 7,595,124 | ||||||||||||||
| Earnings per common share: | |||||||||||||||||||
| Basic | $ | 2.27 | $ | 2.79 | $ | 2.17 | $ | 1.95 | $ | 1.85 | |||||||||
| Diluted | 2.23 | 2.74 | 2.11 | 1.91 | 1.83 | ||||||||||||||
| Dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
| Return on average assets | |||||||||||||||||||
| Return on average equity | |||||||||||||||||||
| Net interest rate spread (1) | |||||||||||||||||||
| Net interest margin (2) | |||||||||||||||||||
| Efficiency ratio (non-GAAP) (3) | |||||||||||||||||||
| Noninterest expense to average total assets | |||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | |||||||||||||||||||
| As of: | |||||||||||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||||||||||||
| Nonperforming loans: | |||||||||||||||||||
| Originated portfolio: | |||||||||||||||||||
| Residential real estate | $ | 2,407 | $ | 2,446 | $ | 3,976 | $ | 2,502 | $ | 2,573 | |||||||||
| Commercial real estate | 3,197 | 3,662 | 4,682 | 1,407 | 2,075 | ||||||||||||||
| Commercial and industrial | 6,945 | 6,696 | 6,684 | 6,520 | 6,928 | ||||||||||||||
| Consumer | 3 | 5 | - | - | - | ||||||||||||||
| Total originated portfolio | 12,552 | 12,809 | 15,342 | 10,429 | 11,576 | ||||||||||||||
| Total purchased portfolio | 19,680 | 17,257 | 21,830 | 17,832 | 16,370 | ||||||||||||||
| Total nonperforming loans | 32,232 | 30,066 | 37,172 | 28,261 | 27,946 | ||||||||||||||
| Real estate owned and other repossessed collateral, net | 1,200 | 1,200 | - | - | - | ||||||||||||||
| Total nonperforming assets | $ | 33,432 | $ | 31,266 | $ | 37,172 | $ | 28,261 | $ | 27,946 | |||||||||
| Past due loans to total loans | |||||||||||||||||||
| Nonperforming loans to total loans | |||||||||||||||||||
| Nonperforming assets to total assets | |||||||||||||||||||
| Allowance for credit losses to total loans | |||||||||||||||||||
| Allowance for credit losses to nonperforming loans | |||||||||||||||||||
| Net charge-offs (recoveries) | $ | 2,082 | $ | 869 | $ | 1,604 | $ | 1,347 | $ | 2,225 | |||||||||
| Commercial real estate loans to total capital (4) | |||||||||||||||||||
| Net loans to deposits | |||||||||||||||||||
| Purchased loans to total loans | |||||||||||||||||||
| Equity to total assets | |||||||||||||||||||
| Common equity tier 1 capital ratio | |||||||||||||||||||
| Total risk-based capital ratio | |||||||||||||||||||
| Tier 1 leverage capital ratio | |||||||||||||||||||
| Total shareholders’ equity | $ | 467,516 | $ | 444,101 | $ | 392,557 | $ | 376,634 | $ | 351,913 | |||||||||
| Less: Preferred stock | - | - | - | - | - | ||||||||||||||
| Common shareholders’ equity | 467,516 | 444,101 | 392,557 | 376,634 | 351,913 | ||||||||||||||
| Less: Intangible assets (5) | - | - | - | - | - | ||||||||||||||
| Tangible common shareholders' equity (non-GAAP) | $ | 467,516 | $ | 444,101 | $ | 392,557 | $ | 376,634 | $ | 351,913 | |||||||||
| Common shares outstanding | 8,525,362 | 8,492,856 | 8,212,026 | 8,127,690 | 7,977,690 | ||||||||||||||
| Book value per common share | $ | 54.84 | $ | 52.29 | $ | 47.80 | $ | 46.34 | $ | 44.11 | |||||||||
| Tangible book value per share (non-GAAP) (6) | 54.84 | 52.29 | 47.80 | 46.34 | 44.11 | ||||||||||||||
| (1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period. | |||||||||||||||||||
| (2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period. | |||||||||||||||||||
| (3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income. | |||||||||||||||||||
| (4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans. | |||||||||||||||||||
| (5) Includes the loan servicing rights asset. | |||||||||||||||||||
| (6) Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding. | |||||||||||||||||||
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
How much did Northeast Bank (NBN) earn per share in Q3 2025?
What is Northeast Bank's (NBN) loan portfolio size as of March 2025?
How much did Northeast Bank's (NBN) SBA loan originations grow in Q3 2025?
What dividend did Northeast Bank (NBN) declare for Q3 2025?
What was Northeast Bank's (NBN) return on equity in Q3 2025?
