The last few months now have been rather tough for Northeast Bank (NASDAQ: NBN ). You see, back in March of this year, I decided to reaffirm the company as a 'hold' candidate. In the past, I had been bullish aboutCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P ...

Northeast Bank (NBN) Q3 2025 Earnings Call April 30, 2025 10:00 AM ET Company Participants Richard Wayne - President & CEOPatrick Dignan - Executive VP & COODamon Delmonte - Managing DirectorRebecca Rand - SVP & Director of AccountingMark Fitzgibbon - Head of FSG ResearchRichard Cohen - Chief Financial Officer Operator Welcome to the Northeast Bank Third Quarter Fiscal Year twenty twenty five Earnings Call. My name is Victor, and I'll be your operator for today's call. This call is being recorded. With us t ...

Northeast Bank (NBN) Q3 2025 Earnings Call April 30, 2025 10:00 AM ET Company Participants Richard Wayne - President & CEOPatrick Dignan - Executive VP & COODamon Delmonte - Managing DirectorRebecca Rand - SVP & Director of AccountingMark Fitzgibbon - Head of FSG ResearchRichard Cohen - Chief Financial Officer Operator Welcome to the Northeast Bank Third Quarter Fiscal Year twenty twenty five Earnings Call. My name is Victor, and I'll be your operator for today's call. This call is being recorded. With us t ...

Northeast Bank (NBN) Q3 2025 Earnings Call April 30, 2025 10:00 AM ET Speaker0 Welcome to the Northeast Bank Third Quarter Fiscal Speaker1 Year twenty Speaker0 twenty five Earnings Call. My name is Victor, and I'll be your operator for today's call. This call is being recorded. With us today from the bank is Rick Wayne, president and chief executive officer Richard Cohen, finance chief financial officer and Pat Dignan, Executive Vice President and Chief Operating Officer. Prior to the call, an investor pres ...

Core Points - Northeast Bank will release its fiscal 2025 third quarter earnings results on April 29, 2025 [1] - A conference call will be held on April 30, 2025, at 10:00 a.m. ET, hosted by key executives [1] - The conference call will be accessible via phone and live webcast, with a slide presentation accompanying the webcast [2] Company Overview - Northeast Bank is headquartered in Portland, Maine, and offers personal and business banking services through seven branches [3] - The bank's National Lending Division engages in purchasing and originating commercial loans nationwide [3] - ableBanking, a division of Northeast Bank, provides online savings products to consumers across the country [3]

Financial Data and Key Metrics Changes - The company reported a record net income of $22.4 million for the quarter, excluding significant income from the sale of PPP loans in Q3 2021 [11] - Base net interest income reached a record of $45.6 million for the quarter [12] - Tangible book value increased by $4.49 or 9% since September 30, with a total increase of $5.95 or 13% over the six-month period [12][13] - The loan capacity based on capital was $856 million at the end of December [14] Business Line Data and Key Metrics Changes - Loan volume for the quarter was $361 million, with $246 million in originations and $100.3 million in SBA loans originated [9][10] - The company originated 917 SBA loans with an average size of $110,000 and weighted average interest rates of 10.85% [29] - Purchase loans included 70 loans with gross balances of $14.8 million, purchased at a price of $14 million [26] Market Data and Key Metrics Changes - The average cost of deposits decreased to 4.15% from 4.34% in the prior quarter, benefiting from a rate-down environment [19] - On-balance sheet liquidity improved to $430 million, up from $379 million as of September [22] - Off-balance sheet capacity increased to over $1 billion, enhancing the ability to add loans [23] Company Strategy and Development Direction - The company aims to grow responsibly by leveraging its liquidity and capital to add quality assets at favorable rates [21] - There is optimism for loan purchasing in 2025, with a focus on both originations and purchases to maintain a balanced portfolio [28][80] - The company is actively monitoring market conditions and opportunities for larger loan purchases due to ongoing M&A activity in the industry [76][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the SBA lending business, noting a large pipeline and improved technology from their lending service provider [49][51] - The company is prepared for potential market disruptions and is optimistic about the volume of loan purchasing opportunities [79] - Management highlighted the importance of maintaining a healthy capital ratio while pursuing growth [24] Other Important Information - The ratio of non-performing loans to total loans declined to 84 basis points from 106 basis points [15] - Non-performing assets decreased from $37 million to $31 million, a reduction of about 16% [15][16] - The weighted average seasoning of the loan portfolio is 5.2 years, with 83% of purchased loans originated before 2021 [16] Q&A Session Summary Question: Impact of cash balances on net interest margin - Management indicated that cash balances are managed to ensure liquidity and do not directly impact net interest margin, which is driven by the composition of assets and liabilities [40][41] Question: Future volumes in the SBA business - Management is optimistic about growth in the SBA business, with a large pipeline and improved technology supporting continued volume increases [47][51] Question: Increase in FDIC costs - The increase in FDIC costs was primarily due to balance sheet growth [54] Question: Average price of shares issued - The average price for the 280,000 shares issued this quarter was $98.36 [58] Question: Outlook for expenses - Expected expenses for the upcoming quarters are projected to be between $18 million and $19 million [62] Question: Exposure to California wildfires - The company has around $1 billion in real estate in California, with no damage reported from wildfires, and all properties are insured [84][86]

| | Q2 FY25 | YTD FY25 | | --- | --- | --- | | Total Loan Volume | $361.1 million | $1.3 billion | | National Lending: | | | | | $14.0 million invested on $14.8 million of | $746.9 million invested on $822.5 million of | | Purchased Loans | UPB(1) | UPB(1) | | | (94.8% purchase price) | (90.8% purchase price) | | Originated Loans(2) | $246.4 million | $373.3 million | | Weighted Average Rate as of 12/31/2024(3) | 8.18% | 8.27% | | SBA Loans Originated | $100.3 million | $182.7 million | | SBA Loans Sold | $ ...

Core Insights - Northeast Bank reported a significant increase in net income for the quarter ended December 31, 2024, reaching $22.4 million, or $2.74 per diluted common share, compared to $14.1 million, or $1.85 per diluted common share for the same quarter in 2023 [1][8] - The bank's total assets grew to $4.08 billion, marking a 30.4% increase from $3.13 billion as of June 30, 2024 [3][21] - The bank's National Lending Division achieved record originations of $246.4 million during the quarter, contributing to a total originated and purchased volume of $260.4 million [3][4] Financial Performance - Net interest and dividend income before provision for credit losses increased by $11.5 million to $48.5 million for the quarter ended December 31, 2024, compared to $37.0 million for the same period in 2023 [8][9] - Noninterest income rose by $4.5 million, primarily driven by a $5.0 million increase in gains on the sale of SBA loans [11] - Noninterest expense increased by $3.4 million, attributed to higher salaries and employee benefits, loan expenses, and FDIC insurance expenses [12][16] Loan Portfolio and Capital - The loan portfolio saw substantial growth, with total loans increasing by 31.32% to $3.63 billion as of December 31, 2024, from $2.76 billion as of June 30, 2024 [4][21] - The bank's Tier 1 leverage capital ratio was reported at 11.2%, down from 12.3% at June 30, 2024, due to increased risk-weighted assets [14] - Deposits increased by $811.9 million, or 34.7%, primarily due to a significant rise in time deposits [6][7] Asset Quality - Nonperforming assets totaled $31.3 million, or 0.77% of total assets, a decrease from $28.3 million, or 0.90% of total assets, as of June 30, 2024 [13] - Past due loans amounted to $30.5 million, or 0.85% of total loans, compared to $26.3 million, or 0.95% of total loans, as of June 30, 2024 [13] Future Outlook - The bank has initiated an additional at-the-market offering of up to $75.0 million of its voting common stock to raise capital as needed [3] - A conference call is scheduled for February 7, 2025, to discuss the second quarter earnings and business outlook [15]

Core Viewpoint - Northeast Bank will release its fiscal 2025 second quarter earnings results on February 6, 2025, followed by a conference call on February 7, 2025, at 10:00 a.m. ET [1] Group 1: Earnings Release and Conference Call - The earnings results will be announced on February 6, 2025 [1] - A conference call will be held on February 7, 2025, hosted by key executives including the President and CEO, CFO, and COO [1] Group 2: Accessing the Conference Call - Participants can register for the conference call via a provided link and will receive dial-in details [2] - The call will be available through a live webcast on the Bank's website, with a slide presentation accompanying the session [2] - A replay of the conference call will be accessible online for one year [2] Group 3: Company Overview - Northeast Bank is a full-service bank based in Portland, Maine, offering personal and business banking services through seven branches [3] - The National Lending Division of Northeast Bank engages in purchasing and originating commercial loans nationwide [3] - ableBanking, a division of Northeast Bank, provides online savings products to consumers across the country [3]

Core Viewpoint - Northeast Bank will release its fiscal 2025 second quarter earnings results on February 6, 2025, followed by a conference call on February 7, 2025, at 10:00 a.m. ET [1] Group 1: Earnings Release and Conference Call - The earnings results will be announced on February 6, 2025 [1] - A conference call will take place on February 7, 2025, hosted by key executives including the President and CEO, CFO, and COO [1] Group 2: Accessing the Conference Call - Participants can register for the conference call via a provided link and will receive dial-in details [2] - The call will be available through a live webcast on the Bank's website, with a slide presentation accompanying the session [2] - A replay of the conference call will be accessible online for one year [2] Group 3: Company Overview - Northeast Bank is a full-service bank based in Portland, Maine, offering personal and business banking services through seven branches [3] - The National Lending Division of Northeast Bank engages in purchasing and originating commercial loans nationwide [3] - ableBanking, a division of Northeast Bank, provides online savings products to consumers across the country [3]