Core Viewpoint - Northeast Bank is set to release its fiscal 2025 fourth quarter earnings results on July 28, 2025, followed by a conference call on July 31, 2025, at 10:00 a.m. ET [1] Group 1 - The conference call will be hosted by key executives including Rick Wayne (President and CEO), Richard Cohen (CFO), and Pat Dignan (COO) [1] - The call will be accessible via phone registration and a live webcast on the Bank's website [2] - A slide presentation will accompany the webcast, and a replay will be available online for one year [2] Group 2 - 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]

Group 1 - Northeast Bank (NASDAQ: NBN) has faced challenges in recent months, leading to a reaffirmation of its status as a 'hold' candidate [1] - The company previously had a bullish outlook, indicating potential for recovery or growth in the future [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers benefit from a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live sector discussions [2]

Financial Data and Key Metrics Changes - The company reported a loan volume of $414 million for the quarter, with $74.6 million in purchased loans and $218 million in originated loans, marking the second-best quarter for commercial real estate loan originations [5] - Net income was $18.7 million, which is $4.8 million higher than the same quarter last year but $3.7 million lower than the linked quarter [5][6] - Return on equity (ROE) was 16.47% and return on assets (ROA) was 1.86%, with tangible book value growing to $54.84 [6] - Net interest income decreased by $2.5 million from the linked quarter, primarily due to less accelerated income from loan payoffs and a shorter quarter [6][8] - Non-interest income increased to $6.6 million, up $700,000 from the linked quarter, mainly due to gains from the SBA business [8] Business Line Data and Key Metrics Changes - The SBA volume reached $121.3 million, up from approximately $100 million in the linked quarter, indicating significant growth in this segment [5][15] - The number of SBA loans originated increased from 330 to 1,069 year-over-year, showcasing substantial growth in loan units [12] - The company purchased 52 loans with gross balances of $79 million, with a purchase price of $75 million, reflecting ongoing activity in the purchase loan segment [16] Market Data and Key Metrics Changes - The company noted a cautious optimism in the real estate markets, with some investors on the sidelines while others view real estate as a good inflation hedge [19] - The SBA business is expected to face some delays in loan closings due to new documentation and collateral requirements, but long-term growth prospects remain strong [15][51] Company Strategy and Development Direction - The company aims to build its SBA business as an annuity, with a focus on long-term growth despite short-term regulatory changes [11][15] - Management expressed confidence in their ability to source quality loans and assess risks, emphasizing a patient investment approach [19] - The company is exploring new small business loan products and refining technology to enhance efficiency in the SBA segment [51][55] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of recent rate cuts on loan yields, particularly in the SBA portfolio, and indicated plans to implement risk-based pricing [27][24] - The company is optimistic about the pipeline for future loan origination, although external economic factors may introduce uncertainty [31][32] - Management highlighted the importance of maintaining liquidity and balance sheet capacity for future opportunities [58][60] Other Important Information - The tax rate increased to 36.7% compared to 33% in the prior quarter, influenced by changes in state tax laws [9][10] - The company has approximately $870 million in balance sheet capacity for loan pool purchases, which could increase with earnings or stock sales [45][49] Q&A Session Summary Question: What is the outlook for loan yields, particularly on the SBA side? - Management noted that SBA loans are currently priced at prime plus 2.75% and are considering risk-based pricing to address yield changes [24][25] Question: Was the increase in expenses a catch-up on comp accruals? - Management confirmed that the $1 million in incentive compensation was a catch-up for the third quarter, with expectations for similar accruals in the fourth quarter [29][30] Question: How does the pipeline look for loan growth? - Management indicated a full pipeline and expressed cautious optimism about origination volume, while acknowledging potential economic uncertainties [31][32] Question: What is the company's balance sheet capacity for loan pool purchases? - The company has a capacity of $870 million for loan pool purchases, which could increase with earnings [45][49] Question: How should we think about the long-term growth of the SBA business? - Management is very positive about the SBA business, expecting growth despite potential short-term delays due to regulatory changes [51][52]

Financial Data and Key Metrics Changes - The company reported a loan volume of $414 million for the quarter, with $74.6 million in purchased loans and $218 million in originated loans, marking the second-best quarter for commercial real estate loan originations [5][6] - Net income was $18.7 million, which is $4.8 million higher than the same quarter last year but $3.7 million lower than the linked quarter [5][6] - Return on equity (ROE) was 16.47% and return on assets (ROA) was 1.86%, with tangible book value growing to $54.84 [6][10] - Net interest income decreased by $2.5 million from the linked quarter, primarily due to less accelerated income from loan payoffs and a shorter quarter [6][9] Business Line Data and Key Metrics Changes - The SBA volume increased to $121.3 million from approximately $100 million in the linked quarter, with a significant rise in the number of loans originated [5][16] - The company originated 1,069 SBA loans in the quarter, up from 330 loans a year ago, indicating substantial growth in the SBA business [13][14] - Non-interest income was $6.6 million, $700,000 higher than the linked quarter, mainly due to SBA gains [9] Market Data and Key Metrics Changes - The company noted a cautious optimism in the real estate markets, with some investors on the sidelines while others view real estate as a good inflation hedge [20] - The SBA has revised regulations, which may impact the speed of loan closures but is viewed positively from a credit perspective [16][20] Company Strategy and Development Direction - The company aims to build its SBA business as an annuity and is optimistic about future growth despite regulatory changes that may slow down the immediate ramp-up [12][53] - The company is focused on maintaining a strong pipeline and is prepared to take advantage of market opportunities, especially in uncertain economic conditions [20][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality of the core business despite a decrease in income compared to the linked quarter, attributing it to non-recurring items [12] - The company is patient in its investment approach and is confident in its ability to source good loans while assessing risks effectively [20] Other Important Information - The tax rate increased to 36.7% from 33% in the prior quarter due to recurring charges and adjustments related to state tax liabilities [10][11] - The company has a balance sheet capacity for loan pool purchases of $870 million, which could increase as more income is earned [48][51] Q&A Session Summary Question: What is the outlook for loan yields, particularly on the SBA side? - Management noted that all SBA loans are currently priced at prime plus 2.75% and will consider risk-based pricing for smaller loans [25][26] Question: Was this quarter a catch-up on comp accruals, and what should be expected going forward? - The comp was partly a catch-up, with expectations for similar levels in the upcoming quarters [30][31] Question: How is the pipeline looking for loan growth? - The pipeline remains strong, but there are uncertainties in the economy that could impact origination volume [32][33] Question: What is the reason for the increase in the discount paid on purchases this quarter? - The discount is influenced by interest rate dynamics and should not be interpreted as a shift in market conditions [34][35] Question: What is the long-term outlook for the SBA business? - Management is very positive about the SBA program's growth potential, despite a potential short-term decline due to regulatory changes [52][54]

Financial Data and Key Metrics Changes - The company reported a loan volume of $414 million for the quarter, with $74.6 million in purchased loans and $218 million in originated loans, marking the second-best quarter for commercial real estate loan originations [5][6] - Net income was $18.7 million, which is $4.8 million higher than the same quarter last year but $3.7 million lower than the linked quarter [5][6] - Return on equity (ROE) was 16.47% and return on assets (ROA) was 1.86%, with tangible book value growing to $54.84 [6][10] - Net interest income decreased by $2.5 million from the linked quarter, primarily due to less accelerated income from loan payoffs and a shorter quarter [6][8] Business Line Data and Key Metrics Changes - The SBA loan volume increased to $121.3 million from approximately $100 million in the linked quarter, with a significant rise in the number of loans originated from 330 to 1,069 [5][12][13] - Non-interest income rose to $6.6 million, primarily due to gains from the SBA business [8] - Non-interest expenses included $1 million in cash incentive compensation, which was not present in the linked quarter [9] Market Data and Key Metrics Changes - The company noted a cautious optimism in the real estate markets, with some investors on the sidelines while others view real estate as a good inflation hedge [19] - The SBA business is expected to face some delays in loan closings due to new documentation and collateral requirements, but long-term growth is anticipated [15][48] Company Strategy and Development Direction - The company aims to build its SBA business as an annuity and has seen substantial growth in this area, indicating a strong market demand [11][48] - The management is optimistic about future growth in the SBA sector despite short-term challenges due to regulatory changes [15][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to source good loans and assess risk, emphasizing a patient investment approach [19] - The company is prepared to take advantage of opportunities that may arise from current market uncertainties [19] Other Important Information - The tax rate increased to 36.7% from 33% in the prior quarter, influenced by changes in Massachusetts tax law and adjustments in state tax liabilities [9][10] - The company has approximately $870 million in balance sheet capacity for loan pool purchases, which could increase with earnings or stock sales [45][46] Q&A Session Summary Question: Regarding loan yields and outlook for the SBA portfolio - Management acknowledged a drop in SBA loan yields due to recent rate cuts and indicated plans to implement risk-based pricing [22][24][28] Question: On expenses and future expectations - The increase in expenses was partly a catch-up on compensation accruals, with expectations for similar levels in the upcoming quarters [29][30] Question: Loan growth outlook and pipeline strength - The company reported a strong pipeline and expressed cautious optimism about origination volumes despite economic uncertainties [31][32] Question: Discount on loan purchases and market dynamics - Management clarified that the discount on loan purchases is influenced by interest rates and should not be interpreted as a shift in market dynamics [33][34] Question: Long-term outlook for the SBA business - Management is bullish about the SBA program's long-term growth potential, despite potential short-term delays due to regulatory changes [47][50]

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]