Northeast Bank Announces Significant Loan Purchase Volume
Northeast Bank (NASDAQ: NBN) has announced a significant loan purchase volume since June 30, 2024. The Bank has acquired primarily commercial real estate loans with an unpaid principal balance of $805 million. This represents the second largest quarterly loan purchase volume in the Bank's history.
Due to the late-quarter timing of these purchases, there will be minimal impact on earnings for the first fiscal quarter of 2025. The Bank has funded and plans to continue funding these loan purchases primarily through brokered deposits and Federal Home Loan Bank advances.
CEO Rick Wayne expressed satisfaction with the quarter's purchased loan activity, highlighting the Bank's strong reputation in the loan purchase market and the team's ability to capitalize on available opportunities.
Northeast Bank (NASDAQ: NBN) ha annunciato un volume significativo di acquisti di prestiti a partire dal 30 giugno 2024. La Banca ha acquisito principalmente prestiti immobiliari commerciali con un saldo principale non pagato di 805 milioni di dollari. Questo rappresenta il secondo volume di acquisti di prestiti trimestrale più grande nella storia della Banca.
A causa del momento tardivo di questi acquisti nel trimestre, ci sarà un impatto minimo sugli utili per il primo trimestre fiscale del 2025. La Banca ha finanziato e prevede di continuare a finanziare questi acquisti di prestiti principalmente attraverso depositi mediati e anticipi della Federal Home Loan Bank.
Il CEO Rick Wayne ha espresso soddisfazione per l'attività di acquisto di prestiti del trimestre, mettendo in evidenza la forte reputazione della Banca nel mercato degli acquisti di prestiti e la capacità del team di capitalizzare le opportunità disponibili.
Northeast Bank (NASDAQ: NBN) ha anunciado un volumen significativo de compras de préstamos desde el 30 de junio de 2024. El Banco ha adquirido principalmente préstamos inmobiliarios comerciales con un saldo principal impago de 805 millones de dólares. Esto representa el segundo volumen de compras de préstamos trimestral más grande en la historia del Banco.
Debido al momento tardío de estas compras en el trimestre, habrá un impacto mínimo en las ganancias para el primer trimestre fiscal de 2025. El Banco ha financiado y planea continuar financiando estas compras de préstamos principalmente a través de depósitos intermedios y avances del Banco Federal de Préstamos para Vivienda.
El CEO Rick Wayne expresó satisfacción con la actividad de compra de préstamos del trimestre, destacando la sólida reputación del Banco en el mercado de compra de préstamos y la capacidad del equipo para capitalizar las oportunidades disponibles.
노스이스트 은행(NASDAQ: NBN)은 2024년 6월 30일 이후로 상당한 대출 구매량을 발표했습니다. 은행은 주로 상업용 부동산 대출을 인수했으며, 미지급 원금 잔액은 8억 5천만 달러입니다. 이는 은행 역사상 두 번째로 큰 분기 대출 구매량을 의미합니다.
이러한 구매의 분기 말 시점으로 인해 2025 회계연도 첫 분기의 수익에는 최소한의 영향이 있을 것입니다. 은행은 이 대출 구매를 중개 예치금 및 연방법 주택 대출은행 대출을 통해 자금 조달할 예정입니다.
CEO 릭 웨인은 분기의 대출 구매 활동에 대한 만족감을 표명하며, 은행의 대출 구매 시장에서의 강력한 평판과 팀이 가능한 기회를 활용할 수 있는 능력을 강조했습니다.
Northeast Bank (NASDAQ: NBN) a annoncé un volume d'achat de prêts significatif depuis le 30 juin 2024. La Banque a principalement acquis des prêts immobiliers commerciaux avec un solde principal impayé de 805 millions de dollars. Cela représente le deuxième volume d'achat de prêts trimestriel le plus important de l'histoire de la Banque.
En raison du moment tardif de ces achats dans le trimestre, il y aura un impact minimal sur les bénéfices pour le premier trimestre fiscal de 2025. La Banque a financé et prévoit de continuer à financer ces achats de prêts principalement par le biais de dépôts intermédiaires et d'avances de la Federal Home Loan Bank.
Le PDG Rick Wayne a exprimé sa satisfaction concernant les activités d'achat de prêts du trimestre, soulignant la solide réputation de la Banque sur le marché des achats de prêts et la capacité de l'équipe à tirer parti des opportunités disponibles.
Die Northeast Bank (NASDAQ: NBN) hat seit dem 30. Juni 2024 ein signifikantes Volumen an Darlehenskäufen bekannt gegeben. Die Bank hat hauptsächlich gewerbliche Immobilienkredite mit einem unbeglichenen Hauptsaldo von 805 Millionen Dollar erworben. Dies stellt das zweitgrößte vierteljährliche Darlehenskaufsvolumen in der Geschichte der Bank dar.
Aufgrund des späten Zeitpunkts dieser Käufe im Quartal wird es einen minimalen Einfluss auf die Erträge im ersten Haushaltsquartal 2025 haben. Die Bank hat diese Darlehenskäufe finanziert und plant, diese weiterhin überwiegend über vermittelte Einlagen und Kredite der Federal Home Loan Bank zu finanzieren.
CEO Rick Wayne äußerte Zufriedenheit mit der Darlehensaktivität des Quartals und hob den starken Ruf der Bank im Darlehenskaufmarkt sowie die Fähigkeit des Teams hervor, verfügbare Chancen zu nutzen.
- Significant loan purchase volume of $805 million in unpaid principal balance
- Second largest quarterly loan purchase volume in Bank's history
- Strong reputation as a reliable counterparty in the loan purchase market
- Minimal impact on earnings for the first fiscal quarter of 2025 due to late-quarter purchases
- Increased reliance on brokered deposits and Federal Home Loan Bank advances for funding
Insights
Northeast Bank's announcement of
While the immediate impact on Q1 FY2025 earnings will be minimal due to the late-quarter timing, this move positions NBN for potential revenue growth in subsequent quarters. However, investors should consider the following:
- Increased exposure to commercial real estate amid market uncertainties
- Potential interest rate risks associated with the funding strategy
- The quality and performance of the purchased loan portfolio
The Bank's ability to execute such large purchases demonstrates strong market positioning and operational capabilities. Long-term profitability will depend on the yield spread between these loans and funding costs, as well as the loans' performance over time.
Northeast Bank's substantial loan purchase of
- Market Positioning: NBN is leveraging its reputation as a "strong and reliable counterparty" to secure significant deals.
- Growth Strategy: The bank is clearly focused on rapid portfolio expansion, which could lead to increased market share and revenue streams.
- Risk Management: The concentration on commercial real estate loans warrants attention to sector-specific risks and economic cycles.
The bank's ability to execute such large transactions suggests robust operational capabilities and market connections. However, investors should monitor the quality of these purchased loans and their impact on NBN's overall risk profile. The success of this strategy will be important in determining NBN's future performance and stock valuation.
PORTLAND, Maine, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN) announced today that since June 30, 2024, the Bank has purchased primarily commercial real estate loans in the amount of unpaid principal balance of
Discussing the purchases, Rick Wayne, Chief Executive Officer said, “We are very pleased with this quarter’s purchased loan activity, which represents the second largest quarterly loan purchase volume in the Bank’s history. We have developed a reputation in the loan purchase market as a strong and reliable counterparty. Our experienced, professional, and dedicated team allows us to take advantage of the opportunities that have been and are available to the Bank.”
About Northeast Bank
Northeast Bank (NASDAQ: NBN) is a full-service 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.
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 Federal Deposit Insurance Corporation (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, 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 projected in the forward-looking statements as a result of, among other factors, changes in general business and economic conditions on a national basis and in the local markets in which the Bank operates, including changes which adversely affect borrowers’ ability to service and repay loans; changes in customer behavior due to political, business and economic conditions, including inflation and concerns about liquidity; turbulence in the capital and debt markets; reductions in net interest income resulting from interest rate volatility as well as changes in the balances and mix of loans and deposits; changes in interest rates and real estate values; changes in loan collectability and increases in defaults and charge-off rates; decreases in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changing government regulation; competitive pressures from other financial institutions; changes in legislation or regulation and accounting principles, policies and guidelines; cybersecurity incidents, fraud, natural disasters, 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 and updated by our 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.
For More Information:
Richard Cohen, Chief Financial Officer
Northeast Bank, 27 Pearl Street, Portland, ME 04101
207.786.3245 ext. 3249
www.northeastbank.com
FAQ
What is the recent loan purchase volume announced by Northeast Bank (NBN)?
How will the recent loan purchases affect Northeast Bank's (NBN) earnings for Q1 2025?
How is Northeast Bank (NBN) funding the recent loan purchases?
What significance does the recent loan purchase volume hold for Northeast Bank (NBN)?
