Northeast Bank Reports First Quarter Results and Declares Dividend
Northeast Bank (NASDAQ: NBN) reported Q1 FY2024 net income of $17.1 million, or $2.11 per diluted share, up from $15.2 million ($2.01/share) in Q1 FY2023. The bank achieved its second-largest quarterly loan volume with $859.8 million in loan generation from the National Lending Division. Total assets increased 25.8% to $3.94 billion. The bank's SBA 7(a) program showed significant growth, originating $82.4 million in loans and selling $63.1 million of guaranteed portions. Return on average equity was 17.5% with a return on average assets of 2.1%. The Board declared a $0.01 per share dividend, payable November 26, 2024.
Northeast Bank (NASDAQ: NBN) ha riportato un reddito netto di 17,1 milioni di dollari nel primo trimestre dell'anno fiscale 2024, corrispondente a 2,11 dollari per azione diluita, in aumento rispetto ai 15,2 milioni di dollari (2,01 dollari/azione) dello stesso periodo dell'anno fiscale 2023. La banca ha raggiunto il suo secondo volume di prestiti trimestrale più grande, generando 859,8 milioni di dollari attraverso la Divisione Prestiti Nazionali. I beni totali sono aumentati del 25,8% fino a 3,94 miliardi di dollari. Il programma SBA 7(a) della banca ha mostrato una crescita significativa, originando 82,4 milioni di dollari in prestiti e vendendo 63,1 milioni di dollari di porzioni garantite. Il ritorno sul patrimonio medio è stato del 17,5% con un ritorno sugli attivi medi del 2,1%. Il Consiglio di Amministrazione ha dichiarato un dividendo di 0,01 dollari per azione, pagabile il 26 novembre 2024.
Northeast Bank (NASDAQ: NBN) reportó un ingreso neto de 17.1 millones de dólares en el primer trimestre del año fiscal 2024, lo que equivale a 2.11 dólares por acción diluida, en comparación con 15.2 millones de dólares (2.01 dólares/acción) en el primer trimestre del año fiscal 2023. El banco alcanzó su segundo mayor volumen de préstamos trimestral con 859.8 millones de dólares generados por la División de Préstamos Nacionales. Los activos totales aumentaron un 25.8% hasta 3.94 mil millones de dólares. El programa SBA 7(a) del banco mostró un crecimiento significativo, originando 82.4 millones de dólares en préstamos y vendiendo 63.1 millones de dólares de porciones garantizadas. El retorno sobre el patrimonio promedio fue del 17.5% con un retorno sobre activos promedio de 2.1%. La Junta declaró un dividendo de 0.01 dólares por acción, pagadero el 26 de noviembre de 2024.
Northeast Bank (NASDAQ: NBN)은 2024 회계연도 1분기에 1,710만 달러의 순이익을 보고했으며, 희석 주당 2.11달러로 2023 회계연도 1분기의 1,520만 달러 (주당 2.01달러)에서 증가했습니다. 이 은행은 국가 대출 부서에서 8억5980만 달러의 대출을 생성하여 두 번째로 큰 분기 대출 규모를 달성했습니다. 총 자산은 39억4000만 달러로 25.8% 증가했습니다. 은행의 SBA 7(a) 프로그램에서는 8240만 달러의 대출을 발행하고 6310만 달러의 보장된 부분을 판매하여 상당한 성장을 보였습니다. 평균 자기자본수익률(ROE)은 17.5%였고 평균 자산수익률(ROA)은 2.1%였습니다. 이사회는 주당 0.01달러의 배당금을 선언하였으며, 이는 2024년 11월 26일에 지급될 예정입니다.
Northeast Bank (NASDAQ: NBN) a annoncé un revenu net de 17,1 millions de dollars pour le premier trimestre de l'exercice 2024, soit 2,11 dollars par action diluée, en hausse par rapport à 15,2 millions de dollars (2,01 dollars/action) au premier trimestre de l'exercice 2023. La banque a atteint son deuxième plus gros volume de prêts trimestriels avec 859,8 millions de dollars générés par la Division des Prêts Nationaux. Les actifs totaux ont augmenté de 25,8% pour atteindre 3,94 milliards de dollars. Le programme SBA 7(a) de la banque a montré une croissance significative, originairement 82,4 millions de dollars de prêts et vendant 63,1 millions de dollars de portions garanties. Le retour sur capitaux propres moyen était de 17,5% avec un retour sur actifs moyens de 2,1%. Le Conseil a déclaré un dividende de 0,01 dollar par action, payable le 26 novembre 2024.
Northeast Bank (NASDAQ: NBN) erzielte im ersten Quartal des Geschäftsjahres 2024 einen Nettogewinn von 17,1 Millionen US-Dollar, was 2,11 US-Dollar pro verwässerter Aktie entspricht, im Vergleich zu 15,2 Millionen US-Dollar (2,01 US-Dollar/Aktie) im ersten Quartal des Geschäftsjahres 2023. Die Bank erreichte ein Quartalsdarlehensvolumen von 859,8 Millionen US-Dollar in der National Lending Division und damit das zweitgrößte in der Unternehmensgeschichte. Die Gesamtanlagen stiegen um 25,8% auf 3,94 Milliarden US-Dollar. Das SBA 7(a)-Programm der Bank verzeichnete ein signifikantes Wachstum, indem es 82,4 Millionen US-Dollar an Darlehen ausgab und 63,1 Millionen US-Dollar an garantierten Anteilen verkaufte. Die Eigenkapitalrendite lag bei 17,5%, während die Rendite auf das durchschnittliche Vermögen 2,1% betrug. Der Vorstand erklärte eine Dividende von 0,01 US-Dollar pro Aktie, die am 26. November 2024 zahlbar ist.
- Net income increased to $17.1 million from $15.2 million YoY
- Record loan generation of $859.8 million in National Lending Division
- Total assets grew 25.8% to $3.94 billion
- SBA loan originations increased to $82.4 million from $9.7 million YoY
- Strong return metrics with 17.5% ROE and 2.1% ROA
- Total risk-based capital ratio decreased to 12.7% from 14.8%
- Nonperforming assets increased to 0.94% of total assets from 0.90%
- Past due loans increased to $31.3 million from $26.3 million
Insights
Northeast Bank's Q1 FY2024 results show remarkable growth with
- National Lending Division achieved
$859.8 million in loan generation, their second-largest quarterly volume ever - Total assets increased
25.8% to$3.94 billion - Strong performance in SBA 7(a) program with
$82.4 million in originations, up significantly from$9.7 million last year - Impressive ROE of
17.5% and ROA of2.1%
However, there are some concerns: nonperforming assets increased to
The bank's aggressive growth strategy presents both opportunities and risks. While loan generation is impressive, the rapid expansion of the loan portfolio warrants attention. Key risk indicators show:
- Nonperforming assets increased to
$37.2 million , though they remain well-collateralized - Past due loans at
$31.3 million represent0.89% of total loans - The significant increase in brokered time deposits (
$712.6 million ) could impact funding costs - Capital ratios remain above regulatory minimums but show pressure from rapid growth
The bank's diversification through national lending and SBA programs helps mitigate risk, but continued monitoring of asset quality is essential given the growth pace.
PORTLAND, Maine, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based full-service bank, today reported net income of
The Board of Directors declared a cash dividend of
“With
As of September 30, 2024, total assets were
1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the three months ended September 30, 2024:
| Loan Portfolio Changes | ||||||||||||||
| September 30, 2024 Balance | June 30, 2024 Balance | Change ($) | Change (%) | |||||||||||
| (Dollars in thousands) | ||||||||||||||
| National Lending Purchased | $ | 2,420,883 | $ | 1,708,551 | $ | 712,332 | 41.69 | % | ||||||
| National Lending Originated | 1,011,374 | 981,497 | 29,877 | 3.04 | % | |||||||||
| SBA National | 66,919 | 48,405 | 18,514 | 38.25 | % | |||||||||
| Community Banking | 21,426 | 22,704 | (1,278 | ) | (5.63 | %) | ||||||||
| Total | $ | 3,520,602 | $ | 2,761,157 | $ | 759,445 | 27.50 | % | ||||||
Loans generated by the Bank's National Lending Division for the quarter ended September 30, 2024 totaled
An overview of the Bank’s National Lending Division portfolio follows:
| National Lending Portfolio | |||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| Purchased | Originated | Total | Purchased | Originated | Total | ||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Loans purchased or originated during the period: | |||||||||||||||||||||||
| Unpaid principal balance | $ | 807,733 | $ | 126,893 | $ | 934,626 | $ | 63,695 | $ | 68,042 | $ | 131,737 | |||||||||||
| Initial net investment basis (1) | 732,893 | 126,893 | 859,786 | 52,346 | 68,042 | 120,388 | |||||||||||||||||
| Loan returns during the period: | |||||||||||||||||||||||
| Yield | 8.83 | % | 9.31 | % | 9.00 | % | 8.99 | % | 10.03 | % | 9.40 | % | |||||||||||
| Total Return on Purchased Loans (2) | 8.84 | % | N/A | 8.84 | % | 9.04 | % | N/A | 9.04 | % | |||||||||||||
| Total loans as of period end: | |||||||||||||||||||||||
| Unpaid principal balance | $ | 2,644,390 | $ | 1,011,374 | $ | 3,655,764 | $ | 1,693,627 | $ | 958,232 | $ | 2,651,859 | |||||||||||
| Net investment basis | 2,420,883 | 1,011,374 | 3,432,257 | 1,516,379 | 958,232 | 2,474,611 | |||||||||||||||||
(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
$6.2 million , primarily due to higher average balances in the National Lending Division purchased and Small Business Administration (“SBA”) portfolios and higher rates earned on the SBA portfolio; - An increase in interest income earned on short-term investments of
$821 thousand , due to higher average balances and higher rates earned; and - A decrease in FHLB borrowings interest expense of
$2.1 million , primarily due to lower average balances; partially offset by, - An increase in deposit interest expense of
$7.3 million , primarily due to higher average balances as well as higher rates in 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 September 30, | |||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||
| Average | Interest | Average | Interest | ||||||||||||||||||
| Balance (1) | Income | Yield | Balance (1) | Income | Yield | ||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Community Banking | $ | 22,409 | $ | 370 | 6.55 | % | $ | 27,149 | $ | 438 | 6.42 | % | |||||||||
| SBA National | 59,745 | 2,419 | 16.06 | % | 26,257 | 786 | 11.91 | % | |||||||||||||
| National Lending: | |||||||||||||||||||||
| Originated | 997,397 | 23,408 | 9.31 | % | 960,629 | 24,219 | 10.03 | % | |||||||||||||
| Purchased | 1,758,801 | 39,141 | 8.83 | % | 1,489,394 | 33,671 | 8.99 | % | |||||||||||||
| Total National Lending | 2,756,198 | 62,549 | 9.00 | % | 2,450,023 | 57,890 | 9.40 | % | |||||||||||||
| Total | $ | 2,838,352 | $ | 65,338 | 9.13 | % | $ | 2,503,429 | 59,114 | 9.39 | % | ||||||||||
(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 September 30, 2023, transactional income decreased by
| Total Return on Purchased Loans | |||||||||||||
| Three Months Ended September 30, | |||||||||||||
| 2024 | 2023 | ||||||||||||
| Income | Return (1) | Income | Return (1) | ||||||||||
| (Dollars in thousands) | |||||||||||||
| Regularly scheduled interest and accretion | $ | 37,160 | 8.38 | % | $ | 31,030 | 8.29 | % | |||||
| Transactional income: | |||||||||||||
| Release of allowance for credit losses on purchased loans | 64 | 0.01 | % | 180 | 0.05 | % | |||||||
| Accelerated accretion and loan fees | 1,981 | 0.45 | % | 2,641 | 0.70 | % | |||||||
| Total transactional income | 2,045 | 0.46 | % | 2,821 | 0.75 | % | |||||||
| Total | $ | 39,205 | 8.84 | % | $ | 33,851 | 9.04 | % | |||||
(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
$1.5 million , primarily due to increases in regular and stock compensation expense; and - An increase in loan expense of
$643 thousand primarily related to increased expenses in connection with the origination of SBA 7(a) loans.
5. Income tax expense increased by
As of September 30, 2024, nonperforming assets totaled
As of September 30, 2024, past due loans totaled
As of September 30, 2024, 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 of Northeast Bank, will host a conference call to discuss first quarter earnings and business outlook at 10:00 a.m. Eastern Time on Wednesday, October 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 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.
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 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, 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 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 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; changes in interest rates and real estate values; 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; changing government regulation; 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 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.
NBN-F
| NORTHEAST BANK | |||||||
| BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| (Dollars in thousands, except share and per share data) | |||||||
| September 30, 2024 | June 30, 2024 | ||||||
| Assets | |||||||
| Cash and due from banks | $ | 768 | $ | 2,711 | |||
| Short-term investments | 316,519 | 239,447 | |||||
| Total cash and cash equivalents | 317,287 | 242,158 | |||||
| Available-for-sale debt securities, at fair value | 36,836 | 48,978 | |||||
| Equity securities, at fair value | 7,269 | 7,013 | |||||
| Total investment securities | 44,105 | 55,991 | |||||
| SBA loans held for sale | 17,639 | 14,506 | |||||
| Loans: | |||||||
| Commercial real estate | 2,715,536 | 2,028,280 | |||||
| Commercial and industrial | 681,118 | 618,846 | |||||
| Residential real estate | 106,075 | 99,234 | |||||
| Consumer | 234 | 291 | |||||
| Total loans | 3,502,963 | 2,746,651 | |||||
| Less: Allowance for credit losses | 43,640 | 26,709 | |||||
| Loans, net | 3,459,323 | 2,719,942 | |||||
| Premises and equipment, net | 26,452 | 27,144 | |||||
| Federal Home Loan Bank stock, at cost | 15,499 | 15,751 | |||||
| Loan servicing rights, net | 926 | 984 | |||||
| Bank-owned life insurance | 18,954 | 18,830 | |||||
| Accrued interest receivable | 17,294 | 15,163 | |||||
| Other assets | 22,419 | 21,734 | |||||
| Total assets | $ | 3,939,898 | $ | 3,132,203 | |||
| Liabilities and Shareholders' Equity | |||||||
| Deposits: | |||||||
| Demand | $ | 149,669 | $ | 146,727 | |||
| Savings and interest checking | 752,806 | 732,029 | |||||
| Money market | 130,878 | 154,504 | |||||
| Time | 2,091,561 | 1,306,203 | |||||
| Total deposits | 3,124,914 | 2,339,463 | |||||
| Federal Home Loan Bank and other advances | 339,073 | 345,190 | |||||
| Lease liability | 19,870 | 20,252 | |||||
| Other liabilities | 63,484 | 50,664 | |||||
| Total liabilities | 3,547,341 | 2,755,569 | |||||
| Commitments and contingencies | - | - | |||||
| Shareholders' equity | |||||||
| Preferred stock, | |||||||
| issued and outstanding at September 30 and June 30, 2024 | - | - | |||||
| Voting common stock, | |||||||
| 8,212,026 and 8,127,690 shares issued and outstanding at | |||||||
| September 30 and June 30, 2024, respectively | 8,212 | 8,128 | |||||
| Non-voting common stock, | |||||||
| No shares issued and outstanding at September 30 and June 30, 2024 | - | - | |||||
| Additional paid-in capital | 63,318 | 64,762 | |||||
| Retained earnings | 320,955 | 303,927 | |||||
| Accumulated other comprehensive income (loss) | 72 | (183 | ) | ||||
| Total shareholders' equity | 392,557 | 376,634 | |||||
| Total liabilities and shareholders' equity | $ | 3,939,898 | $ | 3,132,203 | |||
| NORTHEAST BANK | ||||||||
| STATEMENTS OF INCOME | ||||||||
| (Unaudited) | ||||||||
| (Dollars in thousands, except share and per share data) | ||||||||
| Three Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Interest and dividend income: | ||||||||
| Interest and fees on loans | $ | 65,338 | $ | 59,114 | ||||
| Interest on available-for-sale securities | 595 | 483 | ||||||
| Other interest and dividend income | 3,921 | 3,100 | ||||||
| Total interest and dividend income | 69,854 | 62,697 | ||||||
| Interest expense: | ||||||||
| Deposits | 26,590 | 19,257 | ||||||
| Federal Home Loan Bank and other advances | 4,030 | 6,145 | ||||||
| Obligation under capital lease agreements | 234 | 171 | ||||||
| Total interest expense | 30,854 | 25,573 | ||||||
| Net interest and dividend income before provision for credit losses | 39,000 | 37,124 | ||||||
| Provision for credit losses | 422 | 190 | ||||||
| Net interest and dividend income after provision for credit losses | 38,578 | 36,934 | ||||||
| Noninterest income: | ||||||||
| Fees for other services to customers | 443 | 407 | ||||||
| Gain on sales of SBA loans | 3,331 | 251 | ||||||
| Net unrealized gain (loss) on equity securities | 189 | (157 | ) | |||||
| Loss on real estate owned, other repossessed collateral and premises and equipment, net | - | - | ||||||
| Bank-owned life insurance income | 124 | 115 | ||||||
| Correspondent fee income | 30 | 92 | ||||||
| Other noninterest income | 2 | 71 | ||||||
| Total noninterest income | 4,119 | 779 | ||||||
| Noninterest expense: | ||||||||
| Salaries and employee benefits | 11,183 | 9,721 | ||||||
| Occupancy and equipment expense | 1,078 | 1,105 | ||||||
| Professional fees | 753 | 781 | ||||||
| Data processing fees | 1,487 | 1,100 | ||||||
| Marketing expense | 136 | 261 | ||||||
| Loan acquisition and collection expense | 1,293 | 650 | ||||||
| FDIC insurance expense | 331 | 357 | ||||||
| Other noninterest expense | 1,424 | 1,414 | ||||||
| Total noninterest expense | 17,685 | 15,389 | ||||||
| Income before income tax expense | 25,012 | 22,324 | ||||||
| Income tax expense | 7,906 | 7,152 | ||||||
| Net income | $ | 17,106 | $ | 15,172 | ||||
| Weighted-average shares outstanding: | ||||||||
| Basic | 7,886,148 | 7,479,837 | ||||||
| Diluted | 8,108,688 | 7,554,314 | ||||||
| Earnings per common share: | ||||||||
| Basic | $ | 2.17 | $ | 2.03 | ||||
| Diluted | 2.11 | 2.01 | ||||||
| Cash dividends declared per common share | $ | 0.01 | $ | 0.01 | ||||
| NORTHEAST BANK | |||||||||||||||||||||
| AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
| Assets: | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Investment securities | $ | 55,413 | $ | 595 | 4.26 | % | $ | 60,173 | $ | 483 | 3.19 | % | |||||||||
| Loans (1) (2) (3) | 2,838,352 | 65,338 | 9.13 | % | 2,503,429 | 59,114 | 9.39 | % | |||||||||||||
| Federal Home Loan Bank stock | 16,465 | 330 | 7.95 | % | 22,357 | 413 | 7.35 | % | |||||||||||||
| Short-term investments (4) | 245,542 | 3,591 | 5.80 | % | 201,803 | 2,687 | 5.30 | % | |||||||||||||
| Total interest-earning assets | 3,155,772 | 69,854 | 8.78 | % | 2,787,762 | 62,697 | 8.95 | % | |||||||||||||
| Cash and due from banks | 2,112 | 2,492 | |||||||||||||||||||
| Other non-interest earning assets | 94,071 | 56,263 | |||||||||||||||||||
| Total assets | $ | 3,251,955 | $ | 2,846,517 | |||||||||||||||||
| Liabilities & Shareholders' Equity: | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| NOW accounts | $ | 563,730 | $ | 6,380 | 4.49 | % | $ | 487,445 | $ | 5,145 | 4.20 | % | |||||||||
| Money market accounts | 148,687 | 1,267 | 3.38 | % | 258,296 | 2,133 | 3.29 | % | |||||||||||||
| Savings accounts | 178,581 | 1,557 | 3.46 | % | 90,997 | 560 | 2.45 | % | |||||||||||||
| Time deposits | 1,389,832 | 17,386 | 4.96 | % | 977,220 | 11,419 | 4.65 | % | |||||||||||||
| Total interest-bearing deposits | 2,280,830 | 26,590 | 4.63 | % | 1,813,958 | 19,257 | 4.22 | % | |||||||||||||
| Federal Home Loan Bank advances | 362,594 | 4,030 | 4.41 | % | 510,514 | 6,145 | 4.79 | % | |||||||||||||
| Lease liability | 20,018 | 234 | 4.64 | % | 21,776 | 171 | 3.12 | % | |||||||||||||
| Total interest-bearing liabilities | 2,663,442 | 30,854 | 4.60 | % | 2,346,248 | 25,573 | 4.34 | % | |||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||
| Demand deposits and escrow accounts | 175,161 | 169,338 | |||||||||||||||||||
| Other liabilities | 26,175 | 25,065 | |||||||||||||||||||
| Total liabilities | 2,864,778 | 2,540,651 | |||||||||||||||||||
| Shareholders' equity | 387,177 | 305,866 | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,251,955 | $ | 2,846,517 | |||||||||||||||||
| Net interest income | $ | 39,000 | $ | 37,124 | |||||||||||||||||
| Interest rate spread | 4.18 | % | 4.61 | % | |||||||||||||||||
| Net interest margin (5) | 4.90 | % | 5.30 | % | |||||||||||||||||
| Cost of funds (6) | 4.31 | % | 4.04 | % | |||||||||||||||||
| (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 | |||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||
| Net interest income | $ | 39,000 | $ | 37,935 | $ | 36,512 | $ | 37,000 | $ | 37,124 | |||||||||
| Provision for credit losses | 422 | 547 | 596 | 436 | 190 | ||||||||||||||
| Noninterest income | 4,119 | 2,092 | 1,542 | 1,466 | 779 | ||||||||||||||
| Noninterest expense | 17,685 | 17,079 | 16,429 | 15,669 | 15,389 | ||||||||||||||
| Net income | 17,106 | 15,140 | 13,865 | 14,054 | 15,172 | ||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||
| Basic | 7,886,148 | 7,765,868 | 7,509,320 | 7,505,109 | 7,479,837 | ||||||||||||||
| Diluted | 8,108,688 | 7,910,692 | 7,595,124 | 7,590,913 | 7,554,315 | ||||||||||||||
| Earnings per common share: | |||||||||||||||||||
| Basic | $ | 2.17 | $ | 1.95 | $ | 1.85 | $ | 1.87 | $ | 2.03 | |||||||||
| Diluted | 2.11 | 1.91 | 1.83 | 1.85 | 2.01 | ||||||||||||||
| Dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
| Return on average assets | 2.09 | % | 1.99 | % | 1.87 | % | 1.93 | % | 2.12 | % | |||||||||
| Return on average equity | 17.53 | % | 16.56 | % | 16.45 | % | 17.35 | % | 19.73 | % | |||||||||
| Net interest rate spread (1) | 4.18 | % | 4.41 | % | 4.27 | % | 4.49 | % | 4.61 | % | |||||||||
| Net interest margin (2) | 4.90 | % | 5.13 | % | 5.01 | % | 5.20 | % | 5.30 | % | |||||||||
| Efficiency ratio (non-GAAP) (3) | 41.01 | % | 42.67 | % | 43.17 | % | 40.73 | % | 40.60 | % | |||||||||
| Noninterest expense to average total assets | 2.16 | % | 2.24 | % | 2.21 | % | 2.15 | % | 2.15 | % | |||||||||
| Average interest-earning assets to average interest-bearing liabilities | 118.48 | % | 118.78 | % | 119.28 | % | 118.52 | % | 118.82 | % | |||||||||
| As of: | |||||||||||||||||||
| September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | |||||||||||||||
| Nonperforming loans: | |||||||||||||||||||
| Originated portfolio: | |||||||||||||||||||
| Residential real estate | $ | 3,976 | $ | 2,502 | $ | 2,573 | $ | 2,582 | $ | 289 | |||||||||
| Commercial real estate | 4,682 | 1,407 | 2,075 | 2,075 | 1,973 | ||||||||||||||
| Commercial and industrial | 6,684 | 6,520 | 6,928 | 6,950 | 584 | ||||||||||||||
| Consumer | - | - | - | - | - | ||||||||||||||
| Total originated portfolio | 15,342 | 10,429 | 11,576 | 11,607 | 2,846 | ||||||||||||||
| Total purchased portfolio | 21,830 | 17,832 | 16,370 | 19,165 | 14,603 | ||||||||||||||
| Total nonperforming loans | 37,172 | 28,261 | 27,946 | 30,772 | 17,449 | ||||||||||||||
| Real estate owned and other repossessed collateral, net | - | - | - | - | - | ||||||||||||||
| Total nonperforming assets | $ | 37,172 | $ | 28,261 | $ | 27,946 | $ | 30,772 | $ | 17,449 | |||||||||
| Past due loans to total loans | 0.89 | % | 0.95 | % | 1.13 | % | 1.22 | % | 1.01 | % | |||||||||
| Nonperforming loans to total loans | 1.06 | % | 1.02 | % | 1.05 | % | 1.18 | % | 0.69 | % | |||||||||
| Nonperforming assets to total assets | 0.94 | % | 0.90 | % | 0.93 | % | 1.04 | % | 0.61 | % | |||||||||
| Allowance for credit losses to total loans | 1.25 | % | 0.97 | % | 0.98 | % | 1.06 | % | 1.00 | % | |||||||||
| Allowance for credit losses to nonperforming loans | 117.40 | % | 94.51 | % | 92.83 | % | 89.67 | % | 145.01 | % | |||||||||
| Net charge-offs (recoveries) | $ | 1,604 | $ | 1,347 | $ | 2,225 | $ | 995 | $ | 1,536 | |||||||||
| Commercial real estate loans to total capital (4) | 604.38 | % | 482.13 | % | 509.08 | % | 544.34 | % | 546.91 | % | |||||||||
| Net loans to deposits | 110.70 | % | 116.88 | % | 118.15 | % | 121.31 | % | 127.24 | % | |||||||||
| Purchased loans to total loans | 69.11 | % | 61.88 | % | 60.99 | % | 63.07 | % | 59.98 | % | |||||||||
| Equity to total assets | 9.96 | % | 12.02 | % | 11.73 | % | 11.03 | % | 10.83 | % | |||||||||
| Common equity tier 1 capital ratio | 11.45 | % | 13.84 | % | 13.24 | % | 12.63 | % | 12.45 | % | |||||||||
| Total risk-based capital ratio | 12.70 | % | 14.82 | % | 14.22 | % | 13.71 | % | 13.46 | % | |||||||||
| Tier 1 leverage capital ratio | 12.06 | % | 12.30 | % | 11.79 | % | 11.28 | % | 10.95 | % | |||||||||
| Total shareholders’ equity | $ | 392,557 | $ | 376,634 | $ | 351,913 | $ | 327,540 | $ | 311,569 | |||||||||
| Less: Preferred stock | - | - | - | - | - | ||||||||||||||
| Common shareholders’ equity | 392,557 | 376,634 | 351,913 | 327,540 | 311,569 | ||||||||||||||
| Less: Intangible assets (5) | - | - | - | - | - | ||||||||||||||
| Tangible common shareholders' equity (non-GAAP) | $ | 392,557 | $ | 376,634 | $ | 351,913 | $ | 327,540 | $ | 311,569 | |||||||||
| Common shares outstanding | 8,212,026 | 8,127,690 | 7,977,690 | 7,804,052 | 7,796,691 | ||||||||||||||
| Book value per common share | $ | 47.80 | $ | 46.34 | $ | 44.11 | $ | 41.97 | $ | 39.96 | |||||||||
| Tangible book value per share (non-GAAP) (6) | 47.80 | 46.34 | 44.11 | 41.97 | 39.96 | ||||||||||||||
| (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
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