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]

Company Overview - Northeast Bank (NASDAQ: NBN) is a small bank based in Portland, Maine, operating a network of seven branches [2] - The bank maintains a community banking business model while primarily focusing on serving the local market [2] Business Model - The main business model of Northeast Bank is centered around community banking, which emphasizes local market engagement [2] Research Focus - Independent banking research emphasizes financials, deep value, special situations, and financial arbitrage [3] - The approach is agnostic and apolitical, aiming to identify durable and uncorrelated cash flows that perform well in both inflationary and deflationary environments [3]

FY25 Q1 Investor Call October 30, 2024 Forward-Looking Statement Statements in this presentation 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. Although the Bank believes that these forward-looking statements are based on reasonable es ...

Financial Data and Key Metrics Changes - The company reported a net income of $17.1 million, marking the highest level of net income in its history, excluding quarters with PPP loans sold [9] - Earnings per share diluted were $2.11, return on equity was 17.53%, and return on assets was 2.09% [10] - The allowance for loan losses increased from 0.97% to 1.25% of loans, with non-performing loans rising by $9 million [11] Business Line Data and Key Metrics Changes - Loan production reached $942 million, with $733 million in purchased loans and $209 million in originated loans [8] - In the real estate origination business, the company closed $127 million in loans, with an average balance of $7.5 million [21] - The small balance SBA loan program saw significant growth, with 766 loans for $82.4 million originated in the last quarter [17] Market Data and Key Metrics Changes - The weighted average loan-to-value (LTV) for purchased loans was around 55%, with no loans above 65% [20] - The company noted a competitive environment in commercial real estate lending, with new capital entering the non-bank lender space [23] Company Strategy and Development Direction - The company is focused on expanding its small balance SBA loan program, which has shown promising growth and profitability [18] - There is an ongoing evaluation of capital raising strategies, including the potential expansion of the at-the-market (ATM) offering to support future loan purchases [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining current levels of loan originations and highlighted the potential for further loan purchase opportunities [20][23] - The company is positioned to benefit from a falling interest rate environment, with expectations of a positive impact on net interest income [36] Other Important Information - The company has $23 million remaining under its ATM offering, which it plans to utilize as needed for capital [10][46] - The charge-off rates have been low, with overall charge-offs on the purchase loan book averaging 5 to 6 basis points [52] Q&A Session Summary Question: What does the margin look like for October? - The company does not have that information available yet [38] Question: Are you seeing more loan pools today than in the past? - The volume of loans for purchase is typical, with ongoing activity in the market, but future purchases depend on bidding outcomes [42] Question: What are your thoughts on adding to the ATM for loan purchase opportunities? - The company is open to adding to the ATM to provide more flexibility for future capital needs [48] Question: What is the expected charge-off rate for the SBA loans? - Historically, the charge-off rate for unguaranteed SBA loans is around 3%, but the company has experienced much lower rates so far [73]

PORTLAND, Maine, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based full-service bank, announced today it will release its fiscal 2025 first quarter earnings results on Tuesday, October 29, 2024. Following the release, the Bank will host a conference call with a simultaneous webcast at 10:00 a.m. ET on Wednesday, October 30, 2024. The conference call will be hosted by Rick Wayne, President and Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Di ...

Core Insights - Northeast Bank reported a net income of $15.1 million, or $1.91 per diluted common share, for the quarter ended June 30, 2024, compared to $12.1 million, or $1.61 per diluted common share, for the same quarter in 2023 [17] - Total assets increased to $3.13 billion, a rise of $262.3 million, or 9.1%, from $2.87 billion as of June 30, 2023 [19] - The National Lending Division's portfolio earned a yield of 9.37% for the quarter ended June 30, 2024, up from 8.71% for the same quarter in 2023 [19] Financial Performance - Net interest and dividend income before provision for credit losses increased by $3.8 million to $37.9 million for the quarter ended June 30, 2024, compared to $34.1 million for the same quarter in 2023 [28] - Noninterest income rose by $980 thousand for the quarter ended June 30, 2024, primarily due to an increase in gain on sale of SBA loans [30] - Noninterest expense increased by $718 thousand for the quarter ended June 30, 2024, mainly due to higher salaries and employee benefits [31] Loan Portfolio - Total loans as of June 30, 2024, amounted to $2.76 billion, an increase of $240.8 million, or 9.55%, from $2.52 billion as of June 30, 2023 [20] - Loans generated by the National Lending Division for the quarter ended June 30, 2024, totaled $257.8 million, consisting of $143.6 million of purchased loans and $114.3 million of originated loans [20] - The total return on purchased loans for the quarter ended June 30, 2024, was 9.47%, an increase from 8.12% for the same quarter in 2023 [24] Capital and Deposits - The Bank's Tier 1 leverage capital ratio was 12.3% as of June 30, 2024, compared to 10.4% at June 30, 2023 [11] - Total deposits increased by $402.3 million, or 20.8%, from June 30, 2023, primarily due to increases in time deposits and savings [25] - Shareholders' equity rose by $80.0 million, or 27.0%, from June 30, 2023, driven by net income and the issuance of common stock [27]