Northeast Bank Reports Fourth Quarter Results and Declares Dividend
Northeast Bank (NASDAQ: NBN) reported strong Q4 results for fiscal year 2024, with net income of $15.1 million, or $1.91 per diluted share, up from $12.1 million in Q4 2023. For the full year, net income reached $58.2 million, or $7.58 per diluted share, compared to $44.2 million in FY 2023. The bank's National Lending Division portfolio grew by 9.0% year-over-year, driven by $399.1 million in originations and $382.0 million in purchases. Total assets increased by 9.1% to $3.13 billion. The loan portfolio yield improved to 9.37% in Q4 2024, up from 8.71% in Q4 2023. Deposits grew by 20.8%, while FHLB advances decreased by 38.6%. The bank declared a cash dividend of $0.01 per share.
Northeast Bank (NASDAQ: NBN) ha riportato ottimi risultati per il quarto trimestre dell'anno fiscale 2024, con un utile netto di 15,1 milioni di dollari, ovvero 1,91 dollari per azione diluita, in aumento rispetto ai 12,1 milioni di dollari del quarto trimestre 2023. Per l'intero anno, l'utile netto ha raggiunto 58,2 milioni di dollari, o 7,58 dollari per azione diluita, rispetto ai 44,2 milioni di dollari dell'anno fiscale 2023. Il portafoglio della Divisione Nazionale di Prestiti della banca è cresciuto del 9,0% rispetto all'anno precedente, grazie a 399,1 milioni di dollari in origini e 382,0 milioni di dollari in acquisti. Gli attivi totali sono aumentati del 9,1% a 3,13 miliardi di dollari. Il rendimento del portafoglio prestiti è migliorato al 9,37% nel quarto trimestre 2024, rispetto all'8,71% nel quarto trimestre 2023. I depositi sono cresciuti del 20,8%, mentre gli anticipi FHLB sono diminuiti del 38,6%. La banca ha dichiarato un dividendo in contante di 0,01 dollari per azione.
Northeast Bank (NASDAQ: NBN) reportó sólidos resultados en el cuarto trimestre del ejercicio fiscal 2024, con ingresos netos de 15,1 millones de dólares, o 1,91 dólares por acción diluida, un aumento respecto a los 12,1 millones de dólares en el cuarto trimestre de 2023. Para el año completo, los ingresos netos alcanzaron 58,2 millones de dólares, o 7,58 dólares por acción diluida, en comparación con los 44,2 millones de dólares en el ejercicio fiscal 2023. La cartera de la División Nacional de Préstamos del banco creció un 9,0% interanual, impulsada por 399,1 millones de dólares en originaciones y 382,0 millones de dólares en compras. Los activos totales aumentaron un 9,1% a 3,13 mil millones de dólares. El rendimiento de la cartera de préstamos mejoró al 9,37% en el cuarto trimestre de 2024, frente al 8,71% en el cuarto trimestre de 2023. Los depósitos crecieron un 20,8%, mientras que los avances de FHLB disminuyeron un 38,6%. El banco declaró un dividendo en efectivo de 0,01 dólares por acción.
Northeast Bank (NASDAQ: NBN)은 2024 회계연도 4분기에 1510만 달러의 순이익, 즉 희석 주당 1.91 달러를 보고하며 양호한 실적을 발표했습니다. 이는 2023년 4분기의 1210만 달러에서 증가한 수치입니다. 연간 기준으로 순이익은 5820만 달러, 또는 희석 주당 7.58 달러에 도달하여 2023 회계연도의 4420만 달러와 비교되었습니다. 은행의 국가 대출 부문 포트폴리오는 9.0% 증가했으며, 이는 3억 9910만 달러의 대출 개시와 3억 820만 달러의 구매에 힘입은 것입니다. 총 자산은 9.1% 증가하여 31억 3000만 달러에 이릅니다. 2024년 4분기의 대출 포트폴리오 수익률은 9.37%로 개선되어 2023년 4분기의 8.71%에서 상승했습니다. 예금은 20.8% 증가했으며, FHLB 대출은 38.6% 감소했습니다. 은행은 주당 0.01 달러의 현금 배당금을 선언했습니다.
Northeast Bank (NASDAQ: NBN) a annoncé de bons résultats pour le quatrième trimestre de l'exercice fiscal 2024, avec un bénéfice net de 15,1 millions de dollars, soit 1,91 dollar par action diluée, en hausse par rapport à 12,1 millions de dollars au quatrième trimestre 2023. Pour l'année entière, le bénéfice net a atteint 58,2 millions de dollars, soit 7,58 dollars par action diluée, contre 44,2 millions de dollars pour l'exercice fiscal 2023. Le portefeuille de la Division Nationale de Prêts de la banque a crû de 9,0% d'une année sur l'autre, grâce à 399,1 millions de dollars en origines et 382,0 millions de dollars en achats. Les actifs totaux ont augmenté de 9,1% pour atteindre 3,13 milliards de dollars. Le rendement du portefeuille de prêts s'est amélioré à 9,37% au quatrième trimestre 2024, contre 8,71% au quatrième trimestre 2023. Les dépôts ont augmenté de 20,8%, tandis que les avances FHLB ont diminué de 38,6%. La banque a déclaré un dividende en espèces de 0,01 dollar par action.
Northeast Bank (NASDAQ: NBN) berichtete über starke Ergebnisse im vierten Quartal des Finanzjahres 2024, mit einem Nettoeinkommen von 15,1 Millionen Dollar, oder 1,91 Dollar pro verwässerter Aktie, was einem Anstieg von 12,1 Millionen Dollar im vierten Quartal 2023 entspricht. Für das gesamte Jahr erreichte das Nettoeinkommen 58,2 Millionen Dollar, oder 7,58 Dollar pro verwässerter Aktie, im Vergleich zu 44,2 Millionen Dollar im Finanzjahr 2023. Das Portfolio der National Lending Division der Bank wuchs im Jahresvergleich um 9,0%, unterstützt durch 399,1 Millionen Dollar an Neugeschäften und 382,0 Millionen Dollar an Käufen. Die Gesamtvermögen stiegen um 9,1% auf 3,13 Milliarden Dollar. Die Rendite des Kreditportfolios verbesserte sich im vierten Quartal 2024 auf 9,37%, gegenüber 8,71% im vierten Quartal 2023. Die Einlagen stiegen um 20,8%, während die FHLB-Vorschüsse um 38,6% zurückgingen. Die Bank erklärte eine Bardividende von 0,01 Dollar pro Aktie.
- Net income increased to $15.1 million in Q4 2024, up from $12.1 million in Q4 2023
- Full-year net income rose to $58.2 million in FY 2024, compared to $44.2 million in FY 2023
- National Lending Division portfolio grew by 9.0% year-over-year
- Total assets increased by 9.1% to $3.13 billion
- Loan portfolio yield improved to 9.37% in Q4 2024, up from 8.71% in Q4 2023
- Deposits grew by 20.8% year-over-year
- Nonperforming assets increased to 0.90% of total assets, up from 0.55% in the previous year
- Past due loans rose to 0.95% of total loans, compared to 0.52% in the previous year
Insights
Northeast Bank's Q4 fiscal 2024 results demonstrate strong performance and growth. The bank reported
Key highlights include:
- National Lending Division portfolio yield increased to
9.37% from8.71% year-over-year - Total assets grew by
9.1% to$3.13 billion - Loan portfolio expanded by
9.55% year-over-year - Deposits increased by
20.8% , with significant growth in time deposits - Return on average equity of
16.6% and return on average assets of2.0%
The bank's focus on its National Lending Division is paying off, with strong originations and purchases driving portfolio growth. The increase in interest income from loans and higher yields have more than offset the rise in deposit interest expenses, resulting in improved net interest income.
However, investors should note the increase in nonperforming assets to
Overall, Northeast Bank's strong capital ratios, improved efficiency and solid loan growth position it well for continued success in the coming fiscal year.
Northeast Bank's Q4 results highlight its successful strategy in navigating the current banking environment. The bank's focus on its National Lending Division has proven effective, allowing it to capitalize on higher interest rates while maintaining a strong balance sheet.
The
The bank's deposit growth is impressive, with a
Northeast Bank's capital position has strengthened significantly, with the Tier 1 leverage ratio increasing to
The increase in nonperforming assets and past due loans is a point of concern, although still at manageable levels. The bank's adoption of the CECL methodology for credit loss provisioning should provide more forward-looking risk management.
In conclusion, Northeast Bank's performance demonstrates its ability to thrive in a challenging banking environment, but ongoing monitoring of credit quality and deposit costs will be important for sustained success.
PORTLAND, Maine, July 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
“We reported strong results in our fourth fiscal quarter, supported by strong volume and yields in our National Lending Division,” said Rick Wayne, Chief Executive Officer. “Our National Lending Division portfolio earned a yield of
As of June 30, 2024, total assets were
1. The following table highlights the changes in the loan portfolio for the three months and year ended June 30, 2024:
Loan Portfolio Changes | ||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||
June 30, 2024 Balance | March 31, 2024 Balance | Change ($) | Change (%) | |||||||||
(Dollars in thousands) | ||||||||||||
National Lending Purchased | $ | 1,708,551 | $ | 1,620,409 | $ | 88,142 | 5.44 | % | ||||
National Lending Originated | 981,497 | 975,876 | 5,621 | 0.58 | % | |||||||
SBA National | 48,405 | 36,375 | 12,030 | 33.07 | % | |||||||
Community Banking | 22,704 | 24,121 | (1,417 | ) | (5.87 | %) | ||||||
Total | $ | 2,761,157 | $ | 2,656,781 | $ | 104,376 | 3.93 | % | ||||
Year Ended June 30, 2024 | ||||||||||||
June 30, 2024 Balance | June 30, 2023 Balance | Change ($) | Change (%) | |||||||||
(Dollars in thousands) | ||||||||||||
National Lending Purchased | $ | 1,708,551 | $ | 1,480,119 | $ | 228,432 | 15.43 | % | ||||
National Lending Originated | 981,497 | 987,832 | (6,335 | ) | (0.64 | %) | ||||||
SBA National | 48,405 | 24,873 | 23,532 | 94.61 | % | |||||||
Community Banking | 22,704 | 27,536 | (4,832 | ) | (17.55 | %) | ||||||
Total | $ | 2,761,157 | $ | 2,520,360 | $ | 240,797 | 9.55 | % |
Loans generated by the Bank's National Lending Division for the quarter ended June 30, 2024 totaled
An overview of the Bank’s National Lending Division portfolio follows:
National Lending Portfolio | |||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Purchased | Originated | Total | Purchased | Originated | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Loans purchased or originated during the period: | |||||||||||||||||||||||
Unpaid principal balance | $ | 160,627 | $ | 114,272 | $ | 274,899 | $ | 54,253 | $ | 84,171 | $ | 138,424 | |||||||||||
Net investment basis | 143,571 | 114,272 | 257,843 | 48,783 | 84,171 | 132,954 | |||||||||||||||||
Loan returns during the period: | |||||||||||||||||||||||
Yield | 9.18 | % | 9.68 | % | 9.37 | % | 8.12 | % | 9.58 | % | 8.71 | % | |||||||||||
Total Return on Purchased Loans (1) | 9.47 | % | N/A | 9.47 | % | 8.12 | % | N/A | 8.12 | % | |||||||||||||
Year Ended June 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Purchased | Originated | Total | Purchased | Originated | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Loans purchased or originated during the period: | |||||||||||||||||||||||
Unpaid principal balance | $ | 432,367 | $ | 399,149 | $ | 831,516 | $ | 1,314,783 | $ | 556,991 | $ | 1,871,774 | |||||||||||
Net investment basis | 382,047 | 399,149 | 781,196 | 1,143,786 | 556,991 | 1,700,777 | |||||||||||||||||
Loan returns during the period: | |||||||||||||||||||||||
Yield | 9.01 | % | 9.90 | % | 9.34 | % | 7.93 | % | 8.84 | % | 8.36 | % | |||||||||||
Total Return on Purchased Loans (1) | 9.11 | % | N/A | 9.11 | % | 7.93 | % | N/A | 7.93 | % | |||||||||||||
Total loans as of period end: | |||||||||||||||||||||||
Unpaid principal balance | $ | 1,886,383 | $ | 981,497 | $ | 2,867,880 | $ | 1,667,947 | $ | 987,832 | $ | 2,655,779 | |||||||||||
Net investment basis | 1,708,551 | 981,497 | 2,690,048 | 1,480,119 | 987,832 | 2,467,951 | |||||||||||||||||
(1) 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 an increase in interest income earned on the National Lending Division’s purchased and originated portfolios, due to higher rates earned on both portfolios and higher average balances in the purchased portfolio; - An increase in interest income earned on short-term investments of
$477 thousand , due to higher rates earned and higher average balances; and - A decrease in FHLB borrowings interest expense of
$1.6 million , primarily due to lower average balances; partially offset by, - An increase in deposit interest expense of
$6.5 million , primarily due to 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 June 30, | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||
Balance | Income | Yield | Balance | Income | Yield | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Community Banking | $ | 23,511 | $ | 381 | 6.52 | % | $ | 28,071 | $ | 427 | 6.10 | % | |||||
SBA National | 40,004 | 1,437 | 14.45 | % | 25,706 | 705 | 11.00 | % | |||||||||
National Lending: | |||||||||||||||||
Originated | 963,946 | 23,204 | 9.68 | % | 994,616 | 23,762 | 9.58 | % | |||||||||
Purchased | 1,645,647 | 37,562 | 9.18 | % | 1,461,164 | 29,584 | 8.12 | % | |||||||||
Total National Lending | 2,609,593 | 60,766 | 9.37 | % | 2,455,780 | 53,346 | 8.71 | % | |||||||||
Total | $ | 2,673,108 | $ | 62,584 | 9.42 | % | $ | 2,509,557 | 54,478 | 8.71 | % | ||||||
Year Ended June 30, | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||
Balance | Income | Yield | Balance | Income | Yield | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Community Banking | $ | 25,267 | $ | 1,622 | 6.42 | % | $ | 30,271 | $ | 1,915 | 6.33 | % | |||||
SBA National | 32,581 | 4,270 | 13.11 | % | 28,138 | 2,896 | 10.29 | % | |||||||||
National Lending: | |||||||||||||||||
Originated | 954,316 | 94,488 | 9.90 | % | 922,438 | 81,534 | 8.84 | % | |||||||||
Purchased | 1,580,485 | 142,342 | 9.01 | % | 1,040,940 | 82,549 | 7.93 | % | |||||||||
Total National Lending | 2,534,801 | 236,830 | 9.34 | % | 1,963,378 | 164,083 | 8.36 | % | |||||||||
Total | $ | 2,592,649 | $ | 242,722 | 9.36 | % | $ | 2,021,787 | 168,894 | 8.35 | % | ||||||
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, 2023, transactional income decreased by
Total Return on Purchased Loans | |||||||||||||
Three Months Ended June 30, | |||||||||||||
2024 | 2023 | ||||||||||||
Income | Return (1) | Income | Return (1) | ||||||||||
(Dollars in thousands) | |||||||||||||
Regularly scheduled interest and accretion | $ | 34,504 | 8.43 | % | $ | 24,821 | 6.81 | % | |||||
Transactional income: | |||||||||||||
Release of allowance for credit losses on purchased loans | 1,202 | 0.29 | % | - | 0.00 | % | |||||||
Accelerated accretion and loan fees | 3,058 | 0.75 | % | 4,763 | 1.31 | % | |||||||
Total transactional income | 4,260 | 1.04 | % | 4,763 | 1.31 | % | |||||||
Total | $ | 38,764 | 9.47 | % | $ | 29,584 | 8.12 | % | |||||
Year Ended June 30, | |||||||||||||
2024 | 2023 | ||||||||||||
Income | Return (1) | Income | Return (1) | ||||||||||
(Dollars in thousands) | |||||||||||||
Regularly scheduled interest and accretion | $ | 133,009 | 8.42 | % | $ | 69,788 | 6.70 | % | |||||
Transactional income: | |||||||||||||
Release of allowance for credit losses on purchased loans | 1,558 | 0.10 | % | - | 0.00 | % | |||||||
Accelerated accretion and loan fees | 9,333 | 0.59 | % | 12,761 | 1.23 | % | |||||||
Total transactional income | 10,891 | 0.69 | % | 12,761 | 1.23 | % | |||||||
Total | $ | 143,900 | 9.11 | % | $ | 82,549 | 7.93 | % |
(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
$634 thousand , primarily due to increases in regular compensation expense and stock compensation expense; and - An increase in loan expense of
$180 thousand primarily related to increased expenses in connection with the origination of SBA 7(a) loans; partially offset by, - A decrease of
$195 thousand in deposit insurance expense.
5. Income tax expense increased by
As of June 30, 2024, nonperforming assets totaled
As of June 30, 2024, past due loans totaled
As of June 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 fourth quarter earnings and business outlook at 10:00 a.m. Eastern Time on Thursday, August 1st. 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, 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.
NBN-F
NORTHEAST BANK | ||||||||
BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(Dollars in thousands, except share and per share data) | ||||||||
June 30, 2024 | June 30, 2023 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 2,711 | $ | 2,515 | ||||
Short-term investments | 239,447 | 195,394 | ||||||
Total cash and cash equivalents | 242,158 | 197,909 | ||||||
Available-for-sale debt securities, at fair value | 48,978 | 53,403 | ||||||
Equity securities, at fair value | 7,013 | 6,771 | ||||||
Total investment securities | 55,991 | 60,174 | ||||||
Loans: | ||||||||
Commercial real estate | 2,028,280 | 1,940,563 | ||||||
Commercial and industrial | 633,352 | 499,815 | ||||||
Residential real estate | 99,234 | 79,497 | ||||||
Consumer | 291 | 485 | ||||||
Total loans | 2,761,157 | 2,520,360 | ||||||
Less: Allowance for credit losses | 26,709 | 7,304 | ||||||
Loans, net | 2,734,448 | 2,513,056 | ||||||
Premises and equipment, net | 27,144 | 27,737 | ||||||
Federal Home Loan Bank stock, at cost | 15,751 | 24,644 | ||||||
Loan servicing rights, net | 984 | 1,530 | ||||||
Bank-owned life insurance | 18,830 | 18,364 | ||||||
Other assets | 36,897 | 26,524 | ||||||
Total assets | $ | 3,132,203 | $ | 2,869,938 | ||||
Liabilities and Shareholders' Equity | ||||||||
Deposits: | ||||||||
Demand | $ | 146,727 | $ | 143,738 | ||||
Savings and interest checking | 732,029 | 596,347 | ||||||
Money market | 154,504 | 277,939 | ||||||
Time | 1,306,203 | 919,183 | ||||||
Total deposits | 2,339,463 | 1,937,207 | ||||||
Federal Home Loan Bank and other advances | 345,190 | 562,615 | ||||||
Lease liability | 20,252 | 21,918 | ||||||
Other liabilities | 50,664 | 51,535 | ||||||
Total liabilities | 2,755,569 | 2,573,275 | ||||||
Commitments and contingencies | - | - | ||||||
Shareholders' equity | ||||||||
Preferred stock, | ||||||||
issued and outstanding at June 30, 2024 and June 30, 2023 | - | - | ||||||
Voting common stock, | ||||||||
8,127,690 and 7,668,650 shares issued and outstanding at | ||||||||
June 30, 2024 and June 30, 2023, respectively | 8,128 | 7,669 | ||||||
Non-voting common stock, | ||||||||
No shares issued and outstanding at June 30, 2024 and June 30, 2023 | - | - | ||||||
Additional paid-in capital | 64,762 | 42,840 | ||||||
Retained earnings | 303,927 | 246,872 | ||||||
Accumulated other comprehensive loss | (183 | ) | (718 | ) | ||||
Total shareholders' equity | 376,634 | 296,663 | ||||||
Total liabilities and shareholders' equity | $ | 3,132,203 | $ | 2,869,938 |
NORTHEAST BANK | |||||||||||||||
STATEMENTS OF INCOME | |||||||||||||||
(Unaudited) | |||||||||||||||
(Dollars in thousands, except share and per share data) | |||||||||||||||
Three Months Ended June 30, | Year Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Interest and dividend income: | |||||||||||||||
Interest and fees on loans | $ | 62,584 | $ | 54,478 | $ | 242,722 | $ | 168,894 | |||||||
Interest on available-for-sale securities | 606 | 374 | 2,246 | 1,122 | |||||||||||
Other interest and dividend income | 3,377 | 2,900 | 12,918 | 7,155 | |||||||||||
Total interest and dividend income | 66,567 | 57,752 | 257,886 | 177,171 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 24,619 | 18,139 | 88,391 | 48,076 | |||||||||||
Federal Home Loan Bank advances | 3,785 | 5,430 | 20,032 | 10,225 | |||||||||||
Obligation under capital lease agreements | 228 | 28 | 891 | 74 | |||||||||||
Total interest expense | 28,632 | 23,597 | 109,314 | 58,375 | |||||||||||
Net interest and dividend income before provision for loan losses | 37,935 | 34,155 | 148,572 | 118,796 | |||||||||||
Provision for credit losses | 547 | 453 | 1,768 | 2,303 | |||||||||||
Net interest and dividend income after provision for loan losses | 37,388 | 33,702 | 146,804 | 116,493 | |||||||||||
Noninterest income: | |||||||||||||||
Fees for other services to customers | 466 | 448 | 1,684 | 1,589 | |||||||||||
Gain on sales of SBA loans | 1,459 | 278 | 3,296 | 576 | |||||||||||
Net unrealized gain (loss) on equity securities | (22 | ) | (81 | ) | (4 | ) | (208 | ) | |||||||
Gain (loss) on real estate owned, other repossessed collateral and premises and equipment, net | (20 | ) | - | (29 | ) | (73 | ) | ||||||||
Correspondent fee income | 39 | 114 | 222 | 2,534 | |||||||||||
Gain on termination of interest rate swap | - | - | - | 96 | |||||||||||
Bank-owned life insurance income | 118 | 207 | 466 | 443 | |||||||||||
Other noninterest income | 52 | 146 | 245 | 301 | |||||||||||
Total noninterest income | 2,092 | 1,112 | 5,880 | 5,258 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 11,204 | 10,570 | 41,613 | 35,721 | |||||||||||
Occupancy and equipment expense | 995 | 1,100 | 4,272 | 4,214 | |||||||||||
Professional fees | 581 | 624 | 2,365 | 2,554 | |||||||||||
Data processing fees | 1,501 | 1,305 | 5,324 | 4,995 | |||||||||||
Marketing expense | 261 | 339 | 1,000 | 922 | |||||||||||
Loan acquisition and collection expense | 853 | 673 | 3,255 | 2,514 | |||||||||||
FDIC insurance expense | 345 | 540 | 1,262 | 1,224 | |||||||||||
Other noninterest expense | 1,339 | 1,210 | 5,477 | 4,392 | |||||||||||
Total noninterest expense | 17,079 | 16,361 | 64,568 | 56,536 | |||||||||||
Income before income tax expense | 22,401 | 18,453 | 88,116 | 65,215 | |||||||||||
Income tax expense | 7,261 | 6,367 | 29,885 | 21,028 | |||||||||||
Net income | $ | 15,140 | $ | 12,086 | $ | 58,231 | $ | 44,187 | |||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 7,765,868 | 7,459,074 | 7,573,217 | 7,345,253 | |||||||||||
Diluted | 7,910,692 | 7,523,508 | 7,679,007 | 7,413,932 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 1.95 | $ | 1.62 | $ | 7.69 | $ | 6.02 | |||||||
Diluted | 1.91 | 1.61 | 7.58 | 5.96 | |||||||||||
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, | ||||||||||||||||||
2024 | 2023 | |||||||||||||||||
Interest | Average | Interest | Average | |||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
Assets: | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||
Investment securities | $ | 59,752 | $ | 606 | 4.08 | % | $ | 60,584 | $ | 374 | 2.48 | % | ||||||
Loans (1) (2) | 2,673,108 | 62,584 | 9.42 | % | 2,509,557 | 54,478 | 8.71 | % | ||||||||||
Federal Home Loan Bank stock | 15,756 | 369 | 9.42 | % | 20,483 | 260 | 5.09 | % | ||||||||||
Short-term investments (3) | 224,498 | 3,008 | 5.39 | % | 201,493 | 2,640 | 5.26 | % | ||||||||||
Total interest-earning assets | 2,973,114 | 66,567 | 9.01 | % | 2,792,117 | 57,752 | 8.30 | % | ||||||||||
Cash and due from banks | 2,524 | 2,508 | ||||||||||||||||
Other non-interest earning assets | 84,461 | 64,580 | ||||||||||||||||
Total assets | $ | 3,060,099 | $ | 2,859,205 | ||||||||||||||
Liabilities & Shareholders' Equity: | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
NOW accounts | $ | 545,965 | $ | 6,105 | 4.50 | % | $ | 567,746 | $ | 5,594 | 3.95 | % | ||||||
Money market accounts | 157,729 | 1,279 | 3.26 | % | 252,560 | 1,785 | 2.83 | % | ||||||||||
Savings accounts | 163,940 | 1,395 | 3.42 | % | 83,782 | 330 | 1.58 | % | ||||||||||
Time deposits | 1,267,122 | 15,840 | 5.03 | % | 973,216 | 10,430 | 4.30 | % | ||||||||||
Total interest-bearing deposits | 2,134,756 | 24,619 | 4.64 | % | 1,877,304 | 18,139 | 3.88 | % | ||||||||||
Federal Home Loan Bank advances | 347,726 | 3,785 | 4.38 | % | 472,440 | 5,430 | 4.61 | % | ||||||||||
Lease liability | 20,533 | 228 | 4.47 | % | 21,972 | 28 | 0.51 | % | ||||||||||
Total interest-bearing liabilities | 2,503,015 | 28,632 | 4.60 | % | 2,371,716 | 23,597 | 3.99 | % | ||||||||||
Non-interest bearing liabilities: | ||||||||||||||||||
Demand deposits and escrow accounts | 162,251 | 173,668 | ||||||||||||||||
Other liabilities | 27,230 | 23,095 | ||||||||||||||||
Total liabilities | 2,692,496 | 2,568,479 | ||||||||||||||||
Shareholders' equity | 367,603 | 290,726 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 3,060,099 | $ | 2,859,205 | ||||||||||||||
Net interest income | $ | 37,935 | $ | 34,155 | ||||||||||||||
Interest rate spread | 4.41 | % | 4.31 | % | ||||||||||||||
Net interest margin (4) | 5.13 | % | 4.91 | % | ||||||||||||||
Cost of funds (5) | 4.32 | % | 3.72 | % | ||||||||||||||
(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate. | ||||||||||||||||||
(2) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income. | ||||||||||||||||||
(3) Short-term investments include FHLB overnight deposits and other interest-bearing deposits. (4) Net interest margin is calculated as net interest income divided by total interest-earning assets. (5) 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) | ||||||||||||||||||
Year Ended June 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 | $ | 59,983 | $ | 2,246 | 3.74 | % | $ | 60,760 | $ | 1,122 | 1.85 | % | ||||||
Loans (1) (2) | 2,592,649 | 242,722 | 9.36 | % | 2,021,787 | 168,894 | 8.35 | % | ||||||||||
Federal Home Loan Bank stock | 19,257 | 1,700 | 8.83 | % | 10,600 | 397 | 3.75 | % | ||||||||||
Short-term investments (3) | 209,285 | 11,218 | 5.36 | % | 171,949 | 6,758 | 3.93 | % | ||||||||||
Total interest-earning assets | 2,881,174 | 257,886 | 8.95 | % | 2,265,096 | 177,171 | 7.82 | % | ||||||||||
Cash and due from banks | 2,493 | 2,525 | ||||||||||||||||
Other non-interest earning assets | 64,570 | 78,986 | ||||||||||||||||
Total assets | $ | 2,948,237 | $ | 2,346,607 | ||||||||||||||
Liabilities & Shareholders' Equity: | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||
NOW accounts | $ | 517,134 | $ | 22,652 | 4.38 | % | $ | 539,022 | $ | 15,584 | 2.89 | % | ||||||
Money market accounts | 209,080 | 7,039 | 3.37 | % | 250,152 | 4,368 | 1.75 | % | ||||||||||
Savings accounts | 129,455 | 3,999 | 3.09 | % | 113,678 | 1,178 | 1.04 | % | ||||||||||
Time deposits | 1,112,548 | 54,701 | 4.92 | % | 703,591 | 26,946 | 3.83 | % | ||||||||||
Total interest-bearing deposits | 1,968,217 | 88,391 | 4.49 | % | 1,606,443 | 48,076 | 2.99 | % | ||||||||||
Federal Home Loan Bank advances | 434,388 | 20,032 | 4.61 | % | 234,623 | 10,225 | 4.36 | % | ||||||||||
Lease liability | 21,165 | 891 | 4.21 | % | 15,859 | 74 | 0.47 | % | ||||||||||
Total interest-bearing liabilities | 2,423,770 | 109,314 | 4.51 | % | 1,856,925 | 58,375 | 3.14 | % | ||||||||||
Non-interest bearing liabilities: | ||||||||||||||||||
Demand deposits and escrow accounts | 165,789 | 208,287 | ||||||||||||||||
Other liabilities | 25,092 | 13,337 | ||||||||||||||||
Total liabilities | 2,614,651 | 2,078,549 | ||||||||||||||||
Shareholders' equity | 333,586 | 268,058 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,948,237 | $ | 2,346,607 | ||||||||||||||
Net interest income | $ | 148,572 | $ | 118,796 | ||||||||||||||
Interest rate spread | 4.44 | % | 4.68 | % | ||||||||||||||
Net interest margin (4) | 5.16 | % | 5.24 | % | ||||||||||||||
Cost of funds (5) | 4.22 | % | 2.83 | % | ||||||||||||||
(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate. | ||||||||||||||||||
(2) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income. | ||||||||||||||||||
(3) Short-term investments include FHLB overnight deposits and other interest-bearing deposits. (4) Net interest margin is calculated as net interest income divided by total interest-earning assets. (5) 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 | |||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
Net interest income | $ | 37,935 | $ | 36,512 | $ | 37,000 | $ | 37,124 | $ | 34,155 | |||||||||
Provision for credit losses | 547 | 596 | 436 | 190 | 453 | ||||||||||||||
Noninterest income | 2,092 | 1,542 | 1,466 | 779 | 1,112 | ||||||||||||||
Noninterest expense | 17,079 | 16,429 | 15,669 | 15,389 | 16,361 | ||||||||||||||
Net income | 15,140 | 13,865 | 14,054 | 15,172 | 12,086 | ||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||
Basic | 7,765,868 | 7,509,320 | 7,505,109 | 7,479,837 | 7,459,074 | ||||||||||||||
Diluted | 7,910,692 | 7,595,124 | 7,590,913 | 7,554,315 | 7,523,508 | ||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 1.95 | $ | 1.85 | $ | 1.87 | $ | 2.03 | $ | 1.62 | |||||||||
Diluted | 1.91 | 1.83 | 1.85 | 2.01 | 1.61 | ||||||||||||||
Dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
Return on average assets | 1.99 | % | 1.87 | % | 1.93 | % | 2.12 | % | 1.70 | % | |||||||||
Return on average equity | 16.56 | % | 16.45 | % | 17.35 | % | 19.73 | % | 16.67 | % | |||||||||
Net interest rate spread (1) | 4.41 | % | 4.27 | % | 4.49 | % | 4.61 | % | 4.31 | % | |||||||||
Net interest margin (2) | 5.13 | % | 5.01 | % | 5.20 | % | 5.30 | % | 4.91 | % | |||||||||
Efficiency ratio (non-GAAP) (3) | 42.67 | % | 43.17 | % | 40.73 | % | 40.60 | % | 46.39 | % | |||||||||
Noninterest expense to average total assets | 2.24 | % | 2.21 | % | 2.15 | % | 2.15 | % | 2.30 | % | |||||||||
Average interest-earning assets to average | |||||||||||||||||||
interest-bearing liabilities | 118.78 | % | 119.28 | % | 118.52 | % | 118.82 | % | 117.73 | % | |||||||||
As of: | |||||||||||||||||||
June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||||
Nonperforming loans: | |||||||||||||||||||
Originated portfolio: | |||||||||||||||||||
Residential real estate | $ | 2,502 | $ | 2,573 | $ | 2,582 | $ | 289 | $ | 280 | |||||||||
Commercial real estate | 1,407 | 2,075 | 2,075 | 1,973 | 3,548 | ||||||||||||||
Commercial and industrial | 6,520 | 6,928 | 6,950 | 584 | 520 | ||||||||||||||
Consumer | - | - | - | - | - | ||||||||||||||
Total originated portfolio | 10,429 | 11,576 | 11,607 | 2,846 | 4,348 | ||||||||||||||
Total purchased portfolio | 17,832 | 16,370 | 19,165 | 14,603 | 11,335 | ||||||||||||||
Total nonperforming loans | 28,261 | 27,946 | 30,772 | 17,449 | 15,683 | ||||||||||||||
Real estate owned and other repossessed collateral, net | - | - | - | - | - | ||||||||||||||
Total nonperforming assets | $ | 28,261 | $ | 27,946 | $ | 30,772 | $ | 17,449 | $ | 15,683 | |||||||||
Past due loans to total loans | 0.95 | % | 1.13 | % | 1.22 | % | 1.01 | % | 0.52 | % | |||||||||
Nonperforming loans to total loans | 1.02 | % | 1.05 | % | 1.18 | % | 0.69 | % | 0.62 | % | |||||||||
Nonperforming assets to total assets | 0.90 | % | 0.93 | % | 1.04 | % | 0.61 | % | 0.55 | % | |||||||||
Allowance for credit losses to total loans | 0.97 | % | 0.98 | % | 1.06 | % | 1.00 | % | 0.29 | % | |||||||||
Allowance for credit losses to nonperforming loans | 94.51 | % | 92.83 | % | 89.67 | % | 145.01 | % | 46.57 | % | |||||||||
Net charge-offs (recoveries) | $ | 1,347 | $ | 2,225 | $ | 995 | $ | 1,536 | $ | 240 | |||||||||
Commercial real estate loans to total capital (4) | 482.13 | % | 509.08 | % | 544.34 | % | 546.91 | % | 595.38 | % | |||||||||
Net loans to deposits | 116.88 | % | 118.15 | % | 121.31 | % | 127.24 | % | 129.73 | % | |||||||||
Purchased loans to total loans | 61.88 | % | 60.99 | % | 63.07 | % | 59.98 | % | 58.73 | % | |||||||||
Equity to total assets | 12.02 | % | 11.73 | % | 11.03 | % | 10.83 | % | 10.34 | % | |||||||||
Common equity tier 1 capital ratio | 13.84 | % | 13.24 | % | 12.63 | % | 12.45 | % | 12.03 | % | |||||||||
Total risk-based capital ratio | 14.82 | % | 14.22 | % | 13.71 | % | 13.46 | % | 12.33 | % | |||||||||
Tier 1 leverage capital ratio | 12.30 | % | 11.79 | % | 11.28 | % | 10.95 | % | 10.38 | % | |||||||||
Total shareholders’ equity | $ | 376,634 | $ | 351,913 | $ | 327,540 | $ | 311,569 | $ | 296,663 | |||||||||
Less: Preferred stock | - | - | - | - | - | ||||||||||||||
Common shareholders’ equity | 376,634 | 351,913 | 327,540 | 311,569 | 296,663 | ||||||||||||||
Less: Intangible assets (5) | - | - | - | - | - | ||||||||||||||
Tangible common shareholders' equity (non-GAAP) | $ | 376,634 | $ | 351,913 | $ | 327,540 | $ | 311,569 | $ | 296,663 | |||||||||
Common shares outstanding | 8,127,690 | 7,977,690 | 7,804,052 | 7,796,691 | 7,668,650 | ||||||||||||||
Book value per common share | $ | 46.34 | $ | 44.11 | $ | 41.97 | $ | 39.96 | $ | 38.69 | |||||||||
Tangible book value per share (non-GAAP) (6) | 46.34 | 44.11 | 41.97 | 39.96 | 38.69 | ||||||||||||||
(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
What was Northeast Bank's (NBN) net income for Q4 2024?
How much did Northeast Bank's (NBN) National Lending Division portfolio grow in FY 2024?
What was the yield on Northeast Bank's (NBN) loan portfolio in Q4 2024?
How much did Northeast Bank's (NBN) deposits grow in FY 2024?