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]

Core Points - Northeast Bank reported a net income of $17.1 million, or $2.11 per diluted common share, for the quarter ended September 30, 2024, an increase from $15.2 million, or $2.01 per diluted common share, for the same quarter in 2023 [1][8] - The Board of Directors declared a cash dividend of $0.01 per share, payable on November 26, 2024 [2] - The National Lending Division generated $859.8 million in loans, marking the second-largest quarterly loan volume in the Bank's history, with a portfolio growth of $742.2 million, or 27.6%, since June 30, 2024 [3][4] - Total assets increased to $3.94 billion, up $807.7 million, or 25.8%, from $3.13 billion as of June 30, 2024 [3][24] Financial Performance - Net interest and dividend income before provision for credit losses rose by $1.9 million to $39.0 million for the quarter ended September 30, 2024, compared to $37.1 million for the same quarter in 2023 [8][31] - Noninterest income increased by $3.3 million, primarily due to a gain on the sale of SBA loans, which rose to $3.1 million from $251 thousand year-over-year [13][31] - Noninterest expense increased by $2.3 million, driven by higher salaries and employee benefits, and increased loan expenses related to SBA 7(a) loans [14][31] Loan Portfolio and Asset Quality - The total loan portfolio reached $3.52 billion, reflecting a 27.5% increase from the previous quarter [4][24] - Nonperforming assets totaled $37.2 million, or 0.94% of total assets, compared to $28.3 million, or 0.90% of total assets, as of June 30, 2024 [16] - Past due loans amounted to $31.3 million, or 0.89% of total loans, a slight decrease from $26.3 million, or 0.95% of total loans, as of June 30, 2024 [17] Capital and Ratios - Shareholders' equity increased by $15.9 million, or 4.2%, primarily due to net income and stock-based compensation [7] - The Tier 1 leverage capital ratio was 12.1%, down from 12.3% at June 30, 2024, while the total risk-based capital ratio decreased to 12.7% from 14.8% [18]

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 ...

PORTLAND, Maine, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Northeast Bank (the "Bank") (NASDAQ: NBN) announced today that since June 30, 2024, the Bank has purchased primarily commercial real estate loans in the amount of unpaid principal balance of $805 million. Because the purchases closed primarily late in the quarter, there will be minimal impact on earnings for the first fiscal quarter of 2025. The Bank has funded and intends to fund the purchase of these loans primarily relying on brokered deposits and Feder ...

Northeast Bank (NASDAQ:NBN) Q4 2024 Earnings Conference Call August 1, 2024 10:00 AM ET Company Participants Richard Wayne - President, CEO & Director Richard Cohen - CFO Patrick Dignan - COO & EVP Conference Call Participants David Minkoff - DCM Asset Management Operator Welcome to the Northeast Bank Fourth Quarter Fiscal Year 2024 Earnings Call. My name is Steven, and I will be your operator for today's call. This call is being recorded. With us today from the bank is Rick Wayne, President and Chief Exec ...

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]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------|---------------------------------------------|-------|-------------|-------|---------------|-------|------------------|-------|-------------|-------|---------------|-------| | | 2024 \nPurchased \n(Dollars in thousands) | | Originated | | Total | | 2023 \nPurchased | | Originated | | Total | | | Loans purchased or originated during the period: | | | | | | | | | | | | | | Unpaid ...

PORTLAND, Maine, July 24, 2024 (GLOBE NEWSWIRE) -- Northeast Bank (the "Bank") (NASDAQ: NBN), a Maine-based full-service bank, announced today it will release its fiscal 2024 fourth quarter earnings results on Monday, July 29, 2024. Following the release, the Bank will host a conference call with a simultaneous webcast at 10:00 a.m. ET on Thursday, August 1, 2024. The conference call will be hosted by Rick Wayne, President and Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, ...