Northeast Bank Reports Second Quarter Results and Declares Dividend
Northeast Bank (NASDAQ: NBN) reported strong Q2 FY2025 results with net income of $22.4 million ($2.74 per diluted share), up from $14.1 million ($1.85 per diluted share) in Q2 FY2024. The National Lending Division generated $260.4 million in originated and purchased volume, including record originations of $246.4 million.
Key highlights include:
- Total assets reached $4.08 billion, increasing 30.4% from June 30, 2024
- SBA 7(a) loan originations grew to $100.3 million, with $64.5 million sold generating $5.6 million in gains
- Return on average equity of 21.1% and return on average assets of 2.2%
- Initiated new ATM offering up to $75.0 million of voting common stock
- Declared $0.01 per share dividend, payable March 4, 2025
Northeast Bank (NASDAQ: NBN) ha riportato risultati solidi per il secondo trimestre dell'anno fiscale 2025, con un utile netto di 22,4 milioni di dollari (2,74 dollari per azione diluita), in aumento rispetto ai 14,1 milioni di dollari (1,85 dollari per azione diluita) nel secondo trimestre dell'anno fiscale 2024. La Divisione Nazionale Prestiti ha generato un volume totale di 260,4 milioni di dollari in prestiti originati e acquistati, inclusi originamenti record di 246,4 milioni di dollari.
Tra i punti salienti si includono:
- Attivi totali raggiunti a 4,08 miliardi di dollari, aumentando del 30,4% rispetto al 30 giugno 2024
- Originazioni di prestiti SBA 7(a) cresciute a 100,3 milioni di dollari, con 64,5 milioni di dollari venduti generando guadagni di 5,6 milioni di dollari
- Rendimento medio del capitale azionario del 21,1% e rendimento medio degli attivi del 2,2%
- Avviato nuovo servizio di ATM fino a 75,0 milioni di dollari di azioni comuni con diritto di voto
- Dividendo dichiarato di 0,01 dollari per azione, pagabile il 4 marzo 2025
Northeast Bank (NASDAQ: NBN) reportó resultados sólidos en el segundo trimestre del año fiscal 2025, con un ingreso neto de 22.4 millones de dólares (2.74 dólares por acción diluida), un incremento desde los 14.1 millones de dólares (1.85 dólares por acción diluida) en el segundo trimestre del año fiscal 2024. La División de Préstamos Nacionales generó un volumen de 260.4 millones de dólares en préstamos originados y comprados, incluyendo originaciones récord de 246.4 millones de dólares.
Los puntos destacados incluyen:
- Los activos totales alcanzaron 4.08 mil millones de dólares, aumentando un 30.4% desde el 30 de junio de 2024
- Las originaciones de préstamos SBA 7(a) crecieron a 100.3 millones de dólares, con 64.5 millones de dólares vendidos generando ganancias de 5.6 millones de dólares
- Retorno sobre el capital promedio del 21.1% y retorno sobre activos promedio del 2.2%
- Iniciada nueva oferta de ATM hasta 75.0 millones de dólares de acciones comunes con derecho a voto
- Dividendo declarado de 0.01 dólares por acción, pagadero el 4 de marzo de 2025
노스이스트 은행 (NASDAQ: NBN)은 2025 회계연도 2분기 실적에서 2240만 달러의 순이익(희석 주당 2.74 달러)을 기록하여, 2024 회계연도 2분기의 1410만 달러(희석 주당 1.85 달러)에서 증가했다고 보고했습니다. 국가 대출 부서는 2억 6040만 달러의 대출 원금과 매입량을 생성했으며, 그 중 2억 4640만 달러의 기록적인 원금이 포함되었습니다.
주요 내용은 다음과 같습니다:
- 총 자산이 40억 8000만 달러에 도달하여 2024년 6월 30일 기준으로 30.4% 증가하였습니다.
- SBA 7(a) 대출 원금이 1억 300만 달러로 성장하였으며, 이 중 6450만 달러를 매각하여 560만 달러의 이익을 창출하였습니다.
- 평균 자기자본 수익률 21.1%와 평균 자산 수익률 2.2% 역임
- 7500만 달러의 의결권 보통주에 대한 새로운 ATM 제안 시작함
- 주당 0.01달러 배당 선언, 2025년 3월 4일 지급 예정
Northeast Bank (NASDAQ: NBN) a annoncé de solides résultats pour le deuxième trimestre de l'exercice 2025, avec un bénéfice net de 22,4 millions de dollars (2,74 dollars par action diluée), en hausse par rapport à 14,1 millions de dollars (1,85 dollar par action diluée) au deuxième trimestre de l'exercice 2024. La division de prêts nationaux a généré un volume de 260,4 millions de dollars en prêts originés et achetés, y compris des originations record de 246,4 millions de dollars.
Les principaux points forts incluent:
- Les actifs totaux ont atteint 4,08 milliards de dollars, en augmentation de 30,4 % par rapport au 30 juin 2024
- Les originations de prêts SBA 7(a) ont augmenté à 100,3 millions de dollars, avec 64,5 millions de dollars vendus générant 5,6 millions de dollars de gains
- Retour sur fonds propres moyens de 21,1 % et retour sur actifs moyens de 2,2 %
- Lancement d'une nouvelle offre de guichets automatiques d'un montant allant jusqu'à 75 millions de dollars d'actions ordinaires avec droit de vote
- Dividende déclaré de 0,01 dollar par action, payable le 4 mars 2025
Northeast Bank (NASDAQ: NBN) berichtete über starke Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 mit einem Nettogewinn von 22,4 Millionen Dollar (2,74 Dollar pro verwässerter Aktie), ein Anstieg von 14,1 Millionen Dollar (1,85 Dollar pro verwässerter Aktie) im zweiten Quartal des Geschäftsjahres 2024. Die nationale Kreditabteilung generierte ein Volumen von 260,4 Millionen Dollar an originierenden und gekauften Krediten, einschließlich rekordverdächtigen Originierungen von 246,4 Millionen Dollar.
Wichtige Höhepunkte umfassen:
- Die Gesamtaktiva erreichten 4,08 Milliarden Dollar, was einem Anstieg von 30,4% im Vergleich zum 30. Juni 2024 entspricht
- SBA 7(a)-Kreditoriginierungen stiegen auf 100,3 Millionen Dollar mit 64,5 Millionen Dollar, die verkauft wurden und 5,6 Millionen Dollar Gewinn generierten
- Rendite auf das durchschnittliche Eigenkapital von 21,1% und Rendite auf die durchschnittlichen Aktiva von 2,2%
- Neue ATM-Offerte bis zu 75,0 Millionen Dollar aus stimmberechtigten Stammaktien initiiert
- Ausschüttung von 0,01 Dollar pro Aktie erklärt, zahlbar am 4. März 2025
- Net income increased 58.9% YoY to $22.4 million
- Record loan originations of $246.4 million
- Strong ROE of 21.1% and ROA of 2.2%
- Total assets grew 30.4% to $4.08 billion
- SBA loan sales generated $5.6 million in gains
- Tier 1 leverage capital ratio decreased to 11.2% from 12.3%
- Total risk-based capital ratio declined to 13.9% from 14.8%
- Nonperforming assets increased to $31.3 million from $28.3 million
- Provision for credit losses increased by $1.5 million YoY
Insights
Northeast Bank's Q2 FY2024 results demonstrate exceptional execution across multiple fronts. The 58.9% year-over-year increase in net income to
Three key performance indicators stand out:
- The National Lending Division's record originations of
$246.4 million , coupled with the strategic growth in SBA lending ($100.3 million in originations), reflects successful market penetration and diversification. - Asset quality remains robust with nonperforming assets at just
0.77% of total assets, improving from0.90% in June 2024, despite significant portfolio growth. - The efficiency of capital deployment is evident in the
21.1% ROE, while maintaining healthy capital ratios (Tier 1 leverage at11.2% ).
The bank's funding strategy shows sophistication, with a
Two potential headwinds warrant monitoring: rising FDIC insurance costs (up
The bank's strategic focus on SBA lending is particularly noteworthy, with
PORTLAND, Maine, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based full-service bank, today reported net income of
The Board of Directors declared a cash dividend of
Discussing these results, Rick Wayne, Chief Executive Officer, said, “Our National Lending Division generated
As of December 31, 2024, total assets were
1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the six months ended December 31, 2024:
| Loan Portfolio Changes | |||||||||||||
| December 31, 2024 Balance | June 30, 2024 Balance | Change ($) | Change (%) | ||||||||||
| (Dollars in thousands) | |||||||||||||
| National Lending Purchased | $ | 2,392,417 | $ | 1,708,551 | $ | 683,866 | 40.03 | % | |||||
| National Lending Originated | 1,109,192 | 981,497 | 127,695 | 13.01 | % | ||||||||
| SBA National | 103,554 | 48,405 | 55,149 | 113.92 | % | ||||||||
| Community Banking | 20,857 | 22,704 | (1,847 | ) | (8.14 | %) | |||||||
| Total | $ | 3,626,020 | $ | 2,761,157 | $ | 864,863 | 31.32 | % | |||||
Loans generated by the Bank's National Lending Division for the quarter ended December 31, 2024 totaled
An overview of the Bank’s National Lending Division portfolio follows:
| National Lending Portfolio | ||||||||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Purchased | Originated | Total | Purchased | Originated | Total | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Loans purchased or originated during the period: | ||||||||||||||||||||||||
| Unpaid principal balance | $ | 14,815 | $ | 246,417 | $ | 261,232 | $ | 208,045 | $ | 63,485 | $ | 271,530 | ||||||||||||
| Initial net investment basis (1) | 14,039 | 246,417 | 260,456 | 186,131 | 63,485 | 249,616 | ||||||||||||||||||
| Loan returns during the period: | ||||||||||||||||||||||||
| Yield | ||||||||||||||||||||||||
| Total Return on Purchased Loans (2) | N/A | N/A | ||||||||||||||||||||||
| Six Months Ended December 31, | ||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Purchased | Originated | Total | Purchased | Originated | Total | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Loans purchased or originated during the period: | ||||||||||||||||||||||||
| Unpaid principal balance | $ | 822,549 | $ | 373,309 | $ | 1,195,858 | $ | 271,741 | $ | 131,528 | $ | 403,269 | ||||||||||||
| Initial net investment basis (1) | 746,932 | 373,309 | 1,120,241 | 238,477 | 131,528 | 370,005 | ||||||||||||||||||
| Loan returns during the period: | ||||||||||||||||||||||||
| Yield | 8.84 | % | ||||||||||||||||||||||
| Total Return on Purchased Loans (2) | N/A | N/A | ||||||||||||||||||||||
| Total loans as of period end: | ||||||||||||||||||||||||
| Unpaid principal balance | $ | 2,598,354 | $ | 1,109,192 | $ | 3,707,546 | $ | 1,831,183 | $ | 910,213 | $ | 2,741,396 | ||||||||||||
| Net investment basis | 2,392,417 | 1,109,192 | 3,501,609 | 1,646,756 | 910,213 | 2,556,969 | ||||||||||||||||||
(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
$20.2 million , primarily due to higher average balances in the National Lending Division purchased and originated and Small Business Administration (“SBA”) portfolios, partially offset by lower rates earned across the portfolio; - An increase in interest income earned on short-term investments of
$925 thousand , due to higher average balances, partially offset by lower rates earned; and - A decrease in FHLB borrowings interest expense of
$2.0 million , primarily due to lower average balances; partially offset by, - An increase in deposit interest expense of
$11.6 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 December 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| Average | Interest | Average | Interest | ||||||||||||||
| Balance (1) | Income | Yield | Balance (1) | Income | Yield | ||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Community Banking | $ | 21,481 | $ | 369 | 6.82 | % | $ | 25,559 | $ | 419 | 6.51 | % | |||||
| SBA National | 93,831 | 2,751 | 11.63 | % | 28,331 | 888 | 12.47 | % | |||||||||
| National Lending: | |||||||||||||||||
| Originated | 1,041,301 | 23,769 | 9.06 | % | 939,383 | 23,155 | 9.81 | % | |||||||||
| Purchased | 2,407,132 | 53,655 | 8.84 | % | 1,551,038 | 35,849 | 9.19 | % | |||||||||
| Total National Lending | 3,448,433 | 77,424 | 8.91 | % | 2,490,421 | 59,004 | 9.43 | % | |||||||||
| Total | $ | 3,563,745 | $ | 80,544 | 8.97 | % | $ | 2,544,311 | $ | 60,311 | 9.43 | % | |||||
Six Months Ended December 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| Average | Interest | Average | Interest | ||||||||||||||
| Balance (1) | Income | Yield | Balance (1) | Income | Yield | ||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Community Banking | $ | 21,945 | $ | 738 | 6.67 | % | $ | 26,355 | $ | 857 | 6.47 | % | |||||
| SBA National | 76,788 | 5,170 | 13.36 | % | 27,294 | 1,674 | 12.20 | % | |||||||||
| National Lending: | |||||||||||||||||
| Originated | 1,019,347 | 47,176 | 9.18 | % | 950,006 | 47,375 | 9.92 | % | |||||||||
| Purchased | 2,082,969 | 92,797 | 8.84 | % | 1,520,215 | 69,519 | 9.10 | % | |||||||||
| Total National Lending | 3,102,316 | 139,973 | 8.95 | % | 2,470,221 | 116,894 | 9.41 | % | |||||||||
| Total | $ | 3,201,049 | $ | 145,881 | 9.04 | % | $ | 2,523,870 | $ | 119,425 | 9.41 | % | |||||
(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 December 31, 2023, transactional income increased by
| Total Return on Purchased Loans | |||||||||||||
| Three Months Ended December 31, | |||||||||||||
| 2024 | 2023 | ||||||||||||
| Income | Return (1) | Income | Return (1) | ||||||||||
| (Dollars in thousands) | |||||||||||||
| Regularly scheduled interest and accretion | $ | 50,747 | 8.36 | % | $ | 33,430 | 8.57 | % | |||||
| Transactional income: | |||||||||||||
| Release of allowance for credit losses on purchased loans | 97 | 0.02 | % | 46 | 0.02 | % | |||||||
| Accelerated accretion and loan fees | 2,908 | 0.48 | % | 2,419 | 0.62 | % | |||||||
| Total transactional income | 3,005 | 0.50 | % | 2,465 | 0.64 | % | |||||||
| Total | $ | 53,752 | 8.86 | % | $ | 35,895 | 9.21 | % | |||||
| Six Months Ended December 31, | |||||||||||||
| 2024 | 2023 | ||||||||||||
| Income | Return (1) | Income | Return (1) | ||||||||||
| (Dollars in thousands) | |||||||||||||
| Regularly scheduled interest and accretion | $ | 87,906 | 8.37 | % | $ | 64,460 | 8.44 | % | |||||
| Transactional income: | |||||||||||||
| Release of allowance for credit losses on purchased loans | 161 | 0.01 | % | 226 | 0.03 | % | |||||||
| Accelerated accretion and loan fees | 4,891 | 0.47 | % | 5,059 | 0.66 | % | |||||||
| Total transactional income | 5,052 | 0.48 | % | 5,285 | 0.69 | % | |||||||
| Total | $ | 92,958 | 8.85 | % | $ | 69,745 | 9.13 | % | |||||
(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
$1.4 million , primarily due to increases in regular and stock compensation expense; - An increase in loan expense of
$1.1 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; and - An increase in FDIC insurance expense of
$669 thousand , due to the growth of the Bank’s asset size and an increased assessment rate.
5. Income tax expense increased by
As of December 31, 2024, nonperforming assets totaled
As of December 31, 2024, past due loans totaled
As of December 31, 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 and Chief Credit Officer of Northeast Bank, will host a conference call to discuss second quarter earnings and business outlook at 10:00 a.m. Eastern Time on Friday, February 7th. 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 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 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 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) | |||||||
| December 31, 2024 | June 30, 2024 | ||||||
| Assets | |||||||
| Cash and due from banks | $ | 2,538 | $ | 2,711 | |||
| Short-term investments | 362,332 | 239,447 | |||||
| Total cash and cash equivalents | 364,870 | 242,158 | |||||
| Available-for-sale debt securities, at fair value | 27,616 | 48,978 | |||||
| Equity securities, at fair value | 7,171 | 7,013 | |||||
| Total investment securities | 34,787 | 55,991 | |||||
| SBA loans held for sale | 35,234 | 14,506 | |||||
| Loans: | |||||||
| Commercial real estate | 2,703,938 | 2,028,280 | |||||
| Commercial and industrial | 778,189 | 618,846 | |||||
| Residential real estate | 108,427 | 99,234 | |||||
| Consumer | 232 | 291 | |||||
| Total loans | 3,590,786 | 2,746,651 | |||||
| Less: Allowance for credit losses | 44,773 | 26,709 | |||||
| Loans, net | 3,546,013 | 2,719,942 | |||||
| Premises and equipment, net | 25,739 | 27,144 | |||||
| Real estate owned and other possessed collateral, net | 1,200 | - | |||||
| Federal Home Loan Bank stock, at cost | 17,798 | 15,751 | |||||
| Loan servicing rights, net | 841 | 984 | |||||
| Bank-owned life insurance | 19,078 | 18,830 | |||||
| Accrued interest receivable | 16,939 | 15,163 | |||||
| Other assets | 20,555 | 21,734 | |||||
| Total assets | $ | 4,083,054 | $ | 3,132,203 | |||
| Liabilities and Shareholders' Equity | |||||||
| Deposits: | |||||||
| Demand | $ | 159,002 | $ | 146,727 | |||
| Savings and interest checking | 782,570 | 732,029 | |||||
| Money market | 130,063 | 154,504 | |||||
| Time | 2,079,703 | 1,306,203 | |||||
| Total deposits | 3,151,338 | 2,339,463 | |||||
| Federal Home Loan Bank and other advances | 407,824 | 345,190 | |||||
| Lease liability | 19,461 | 20,252 | |||||
| Other liabilities | 60,330 | 50,664 | |||||
| Total liabilities | 3,638,953 | 2,755,569 | |||||
| Commitments and contingencies | - | - | |||||
| Shareholders' equity | |||||||
| Preferred stock, | |||||||
| issued and outstanding at December 31 and June 30, 2024 | - | - | |||||
| Voting common stock, | |||||||
| 8,492,856 and 8,127,690 shares issued and outstanding at | |||||||
| December 31 and June 30, 2024, respectively | 8,493 | 8,128 | |||||
| Non-voting common stock, | |||||||
| No shares issued and outstanding at December 31 and June 30, 2024 | - | - | |||||
| Additional paid-in capital | 92,292 | 64,762 | |||||
| Retained earnings | 343,302 | 303,927 | |||||
| Accumulated other comprehensive income (loss) | 14 | (183 | ) | ||||
| Total shareholders' equity | 444,101 | 376,634 | |||||
| Total liabilities and shareholders' equity | $ | 4,083,054 | $ | 3,132,203 | |||
| NORTHEAST BANK | ||||||||||||||||
| STATEMENTS OF INCOME | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Dollars in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Interest and fees on loans | $ | 80,544 | $ | 60,311 | $ | 145,881 | $ | 119,425 | ||||||||
| Interest on available-for-sale securities | 436 | 560 | 1,031 | 1,043 | ||||||||||||
| Other interest and dividend income | 4,186 | 3,261 | 8,108 | 6,361 | ||||||||||||
| Total interest and dividend income | 85,166 | 64,132 | 155,020 | 126,829 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 32,777 | 21,175 | 59,367 | 40,433 | ||||||||||||
| Federal Home Loan Bank advances | 3,666 | 5,701 | 7,696 | 11,847 | ||||||||||||
| Obligation under capital lease agreements | 233 | 256 | 467 | 425 | ||||||||||||
| Total interest expense | 36,676 | 27,132 | 67,530 | 52,705 | ||||||||||||
| Net interest and dividend income before provision for credit losses | 48,490 | 37,000 | 87,490 | 74,124 | ||||||||||||
| Provision for credit losses | 1,944 | 436 | 2,366 | 625 | ||||||||||||
| Net interest and dividend income after provision for credit losses | 46,546 | 36,564 | 85,124 | 73,499 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Fees for other services to customers | 391 | 492 | 834 | 899 | ||||||||||||
| Gain on sales of SBA loans | 5,570 | 570 | 8,901 | 822 | ||||||||||||
| Net unrealized gain (loss) on equity securities | (163 | ) | 230 | 27 | 72 | |||||||||||
| Loss on real estate owned, other repossessed collateral and premises and equipment, net | - | (9 | ) | - | (9 | ) | ||||||||||
| Bank-owned life insurance income | 125 | 116 | 248 | 231 | ||||||||||||
| Correspondent fee income | 23 | 52 | 54 | 143 | ||||||||||||
| Other noninterest income | 3 | 15 | 5 | 87 | ||||||||||||
| Total noninterest income | 5,949 | 1,466 | 10,069 | 2,245 | ||||||||||||
| Noninterest expense: | ||||||||||||||||
| Salaries and employee benefits | 11,287 | 9,905 | 22,470 | 19,625 | ||||||||||||
| Occupancy and equipment expense | 1,103 | 1,101 | 2,182 | 2,206 | ||||||||||||
| Professional fees | 562 | 499 | 1,315 | 1,281 | ||||||||||||
| Data processing fees | 1,622 | 1,347 | 3,109 | 2,447 | ||||||||||||
| Marketing expense | 94 | 221 | 230 | 482 | ||||||||||||
| Loan acquisition and collection expense | 2,063 | 939 | 3,355 | 1,589 | ||||||||||||
| FDIC insurance expense | 956 | 287 | 1,288 | 644 | ||||||||||||
| Other noninterest expense | 1,379 | 1,370 | 2,802 | 2,784 | ||||||||||||
| Total noninterest expense | 19,066 | 15,669 | 36,751 | 31,058 | ||||||||||||
| Income before income tax expense | 33,429 | 22,361 | 58,442 | 44,686 | ||||||||||||
| Income tax expense | 10,989 | 8,307 | 18,896 | 15,460 | ||||||||||||
| Net income | $ | 22,440 | $ | 14,054 | $ | 39,546 | $ | 29,226 | ||||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 8,044,345 | 7,505,109 | 7,965,486 | 7,492,310 | ||||||||||||
| Diluted | 8,197,568 | 7,590,913 | 8,153,368 | 7,572,450 | ||||||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 2.79 | $ | 1.87 | $ | 4.96 | $ | 3.90 | ||||||||
| Diluted | 2.74 | 1.85 | 4.85 | 3.86 | ||||||||||||
Cash dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.02 | $ | 0.02 | ||||||||
| NORTHEAST BANK | ||||||||||||||||||
| AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||
| Interest | Average | Interest | Average | |||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
| Assets: | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Investment securities | $ | 40,004 | $ | 436 | 4.32 | % | $ | 59,797 | $ | 560 | 3.73 | % | ||||||
| Loans (1) (2) (3) | 3,563,745 | 80,544 | 8.97 | % | 2,544,311 | 60,311 | 9.43 | % | ||||||||||
| Federal Home Loan Bank stock | 15,458 | 346 | 8.88 | % | 21,222 | 468 | 8.77 | % | ||||||||||
| Short-term investments (4) | 325,118 | 3,840 | 4.69 | % | 206,090 | 2,793 | 5.39 | % | ||||||||||
| Total interest-earning assets | 3,944,325 | 85,166 | 8.57 | % | 2,831,420 | 64,132 | 9.01 | % | ||||||||||
| Cash and due from banks | 2,216 | 2,508 | ||||||||||||||||
| Other non-interest earning assets | 30,982 | 69,245 | ||||||||||||||||
| Total assets | $ | 3,977,523 | $ | 2,903,173 | ||||||||||||||
| Liabilities & Shareholders' Equity: | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| NOW accounts | $ | 581,969 | $ | 5,932 | 4.04 | % | $ | 511,217 | $ | 5,636 | 4.39 | % | ||||||
| Money market accounts | 128,787 | 953 | 2.94 | % | 229,154 | 2,009 | 3.49 | % | ||||||||||
| Savings accounts | 187,701 | 1,653 | 3.49 | % | 122,643 | 917 | 2.97 | % | ||||||||||
| Time deposits | 2,080,911 | 24,239 | 4.62 | % | 1,022,767 | 12,613 | 4.91 | % | ||||||||||
| Total interest-bearing deposits | 2,979,368 | 32,777 | 4.36 | % | 1,885,781 | 21,175 | 4.47 | % | ||||||||||
| Federal Home Loan Bank advances | 336,762 | 3,666 | 4.32 | % | 481,824 | 5,701 | 4.71 | % | ||||||||||
| Lease liability | 19,599 | 233 | 4.72 | % | 21,361 | 256 | 4.77 | % | ||||||||||
| Total interest-bearing liabilities | 3,335,729 | 36,676 | 4.36 | % | 2,388,966 | 27,132 | 4.52 | % | ||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||
| Demand deposits and escrow accounts | 190,135 | 167,358 | ||||||||||||||||
| Other liabilities | 30,501 | 24,616 | ||||||||||||||||
| Total liabilities | 3,556,365 | 2,580,940 | ||||||||||||||||
| Shareholders' equity | 421,158 | 322,233 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,977,523 | $ | 2,903,173 | ||||||||||||||
| Net interest income | $ | 48,490 | $ | 37,000 | ||||||||||||||
| Interest rate spread | 4.21 | % | 4.49 | % | ||||||||||||||
| Net interest margin (5) | 4.88 | % | 5.20 | % | ||||||||||||||
| Cost of funds (6) | 4.13 | % | 4.22 | % | ||||||||||||||
| (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) | ||||||||||||||||||
| Six Months Ended December 31, | ||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||
| Interest | Average | Interest | Average | |||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
| Assets: | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Investment securities | $ | 47,708 | $ | 1,031 | 4.29 | % | $ | 59,986 | $ | 1,043 | 3.46 | % | ||||||
| Loans (1) (2) (3) | 3,201,049 | 145,881 | 9.04 | % | 2,523,870 | 119,425 | 9.41 | % | ||||||||||
| Federal Home Loan Bank stock | 15,961 | 676 | 8.40 | % | 21,790 | 881 | 8.04 | % | ||||||||||
| Short-term investments (4) | 285,330 | 7,432 | 5.17 | % | 203,946 | 5,480 | 5.34 | % | ||||||||||
| Total interest-earning assets | 3,550,048 | 155,020 | 8.66 | % | 2,809,592 | 126,829 | 8.98 | % | ||||||||||
| Cash and due from banks | 2,164 | 2,500 | ||||||||||||||||
| Other non-interest earning assets | 62,527 | 62,753 | ||||||||||||||||
| Total assets | $ | 3,614,739 | $ | 2,874,845 | ||||||||||||||
| Liabilities & Shareholders' Equity: | ||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| NOW accounts | $ | 572,849 | $ | 12,312 | 4.26 | % | $ | 499,331 | $ | 10,781 | 4.29 | % | ||||||
| Money market accounts | 138,738 | 2,219 | 3.17 | % | 243,725 | 4,142 | 3.38 | % | ||||||||||
| Savings accounts | 183,141 | 3,210 | 3.48 | % | 106,820 | 1,477 | 2.75 | % | ||||||||||
| Time deposits | 1,735,372 | 41,626 | 4.76 | % | 999,993 | 24,033 | 4.78 | % | ||||||||||
| Total interest-bearing deposits | 2,630,100 | 59,367 | 4.48 | % | 1,849,869 | 40,433 | 4.35 | % | ||||||||||
| Federal Home Loan Bank advances | 349,678 | 7,696 | 4.37 | % | 496,169 | 11,847 | 4.75 | % | ||||||||||
| Lease liability | 19,808 | 467 | 4.68 | % | 21,568 | 425 | 3.92 | % | ||||||||||
| Total interest-bearing liabilities | 2,999,586 | 67,530 | 4.47 | % | 2,367,606 | 52,705 | 4.43 | % | ||||||||||
| Non-interest bearing liabilities: | ||||||||||||||||||
| Demand deposits and escrow accounts | 182,648 | 168,348 | ||||||||||||||||
| Other liabilities | 28,337 | 24,842 | ||||||||||||||||
| Total liabilities | 3,210,571 | 2,560,796 | ||||||||||||||||
| Shareholders' equity | 404,168 | 314,049 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,614,739 | $ | 2,874,845 | ||||||||||||||
| Net interest income | $ | 87,490 | $ | 74,124 | ||||||||||||||
| Interest rate spread | 4.19 | % | 4.55 | % | ||||||||||||||
| Net interest margin (5) | 4.89 | % | 5.25 | % | ||||||||||||||
| Cost of funds (6) | 4.21 | % | 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 | |||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||
Net interest income | $ | 48,490 | $ | 39,000 | $ | 37,935 | $ | 36,512 | $ | 37,000 | |||||||||
| Provision for credit losses | 1,944 | 422 | 547 | 596 | 436 | ||||||||||||||
| Noninterest income | 5,949 | 4,119 | 2,092 | 1,542 | 1,466 | ||||||||||||||
| Noninterest expense | 19,066 | 17,685 | 17,079 | 16,429 | 15,669 | ||||||||||||||
| Net income | 22,440 | 17,106 | 15,140 | 13,865 | 14,054 | ||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||
| Basic | 8,044,345 | 7,886,148 | 7,765,868 | 7,509,320 | 7,505,109 | ||||||||||||||
| Diluted | 8,197,568 | 8,108,688 | 7,910,692 | 7,595,124 | 7,590,913 | ||||||||||||||
Earnings per common share: | |||||||||||||||||||
| Basic | $ | 2.79 | $ | 2.17 | $ | 1.95 | $ | 1.85 | $ | 1.87 | |||||||||
| Diluted | 2.74 | 2.11 | 1.91 | 1.83 | 1.85 | ||||||||||||||
| 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: | |||||||||||||||||||
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||
| Nonperforming loans: | |||||||||||||||||||
| Originated portfolio: | |||||||||||||||||||
| Residential real estate | $ | 2,446 | $ | 3,976 | $ | 2,502 | $ | 2,573 | $ | 2,582 | |||||||||
| Commercial real estate | 3,662 | 4,682 | 1,407 | 2,075 | 2,075 | ||||||||||||||
| Commercial and industrial | 6,696 | 6,684 | 6,520 | 6,928 | 6,950 | ||||||||||||||
| Consumer | 5 | - | - | - | - | ||||||||||||||
| Total originated portfolio | 12,809 | 15,342 | 10,429 | 11,576 | 11,607 | ||||||||||||||
| Total purchased portfolio | 17,257 | 21,830 | 17,832 | 16,370 | 19,165 | ||||||||||||||
| Total nonperforming loans | 30,066 | 37,172 | 28,261 | 27,946 | 30,772 | ||||||||||||||
| Real estate owned and other repossessed collateral, net | 1,200 | - | - | - | - | ||||||||||||||
| Total nonperforming assets | $ | 31,266 | $ | 37,172 | $ | 28,261 | $ | 27,946 | $ | 30,772 | |||||||||
| 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) | $ | 869 | $ | 1,604 | $ | 1,347 | $ | 2,225 | $ | 995 | |||||||||
| 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 | $ | 444,101 | $ | 392,557 | $ | 376,634 | $ | 351,913 | $ | 327,540 | |||||||||
| Less: Preferred stock | - | - | - | - | - | ||||||||||||||
| Common shareholders’ equity | 444,101 | 392,557 | 376,634 | 351,913 | 327,540 | ||||||||||||||
| Less: Intangible assets (5) | - | - | - | - | - | ||||||||||||||
| Tangible common shareholders' equity (non-GAAP) | $ | 444,101 | $ | 392,557 | $ | 376,634 | $ | 351,913 | $ | 327,540 | |||||||||
| Common shares outstanding | 8,492,856 | 8,212,026 | 8,127,690 | 7,977,690 | 7,804,052 | ||||||||||||||
| Book value per common share | $ | 52.29 | $ | 47.80 | $ | 46.34 | $ | 44.11 | $ | 41.97 | |||||||||
| Tangible book value per share (non-GAAP) (6) | 52.29 | 47.80 | 46.34 | 44.11 | 41.97 | ||||||||||||||
| (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) earnings per share for Q2 2025?
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