Company Participants Rick Wayne - President and CEO JP Lapointe - SVP and CFO Alex Twerdahl - Piper Sandler Welcome to the Northeast Bank Second Quarter FY 2023 Earnings Call. My name is Kevin, and I'll be your operator for today's call. This call is being recorded. Yesterday, an investor presentation was uploaded to the bank's website, which will be referenced in this morning's call. The presentation can be accessed at the Investor Relations section of northeastbank.com under the Events and Presentations. ...

FY23 Q2 Investor Call January 26, 2023 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 ...

Northeast Bank (NASDAQ:NBN) Q1 2023 Earnings Conference Call November 1, 2022 10:00 AM ET Company Participants Rick Wayne - President & CEO Jean-Pierre Lapointe - CFO Pat Dignan - EVP & Chief Credit Officer Conference Call Participants Alexander Twerdahl - Piper Sandler Operator Welcome to the Northeast Bank First Quarter Fiscal Year 2023 Earnings Call. My name is Shannon, and I will be your operator for today's call. This call is being recorded. With us today from the bank is Mr. Rick Wayne, President and ...

FY23 Q1 Investor Call November 1, 2022 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 - For Q4 2022, the company reported net income of $10.3 million, or $1.35 per diluted share, with a return on equity of 16.55% and a return on assets of 2.68% [4] - The yield on the loan book for originated loans was 7%, up from 6.9% in the prior quarter, reflecting a 10 basis point increase [6] - Net interest income increased by $16 million for FY 2022 compared to FY 2021, driven by a 30% growth in the National Lending portfolio [12] Business Line Data and Key Metrics Changes - The company originated $172.9 million in loans for the quarter and $587.8 million for the year, marking record highs for both periods [5] - The National Lending portfolio grew by $284 million or 30% by the end of FY 2022 compared to FY 2021, with originated loans growing by $236 million or 45% [12] Market Data and Key Metrics Changes - Delinquencies were reported at around $7 million, and non-accruals decreased to about $13 million, indicating improved asset quality [18] - The loan book size is approximately $1.3 billion, which is significantly larger than in previous periods [19] Company Strategy and Development Direction - The company is focused on growing its loan book to offset the decline in correspondent fee income, which decreased by $4.1 million due to the payoff or forgiveness of PPP loans [10][11] - Management expressed optimism about the loan purchase market, anticipating increased activity due to rising interest rates and credit quality concerns among banks [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the higher interest rate environment is expected to create opportunities for loan purchases, as some competitors are becoming sellers of their portfolios [25][28] - The company plans to hire more personnel to support growth in both purchased and originated loans, ensuring that underwriting standards remain high [30] Other Important Information - Non-interest expenses grew by $1.5 million in Q4 due to increased incentive compensation [13] - The company repurchased 285,000 shares during the quarter and 821,000 shares for the year, totaling 3.8 million shares repurchased since the program began [15] Q&A Session Summary Question: Commentary on loan purchase market amid volatility - Management indicated that there is significant activity in the pipeline and expects to see more opportunities due to rising interest rates and credit quality concerns [25][26] Question: Capacity to increase loan purchases while maintaining growth - Management confirmed that they have the capacity to increase loan purchases and maintain growth rates in originated portfolios, with plans to hire more staff as needed [30] Question: Factors driving lower loan volumes - Management explained that the market supply was limited, and they were actively bidding on available loans, with expectations for increased supply towards the end of the quarter [32] Question: Commentary on new loan yields - New loans are expected to yield between Prime + 1.5% and 2.5%, which will increase with anticipated rate hikes [33][36] Question: Pressures on deposit costs - Management acknowledged upward pressure on deposit costs but emphasized that loan rates are expected to rise significantly more than deposit rates [37] Question: Increase in non-interest expenses - The increase is attributed to higher headcount, inflation-related salary increases, and moving to a more expensive office space [40] Question: Impact of CECL adoption on loan portfolios - Management indicated that CECL adoption will likely reduce the allowance for credit losses for most portfolios, with some reclassification on the balance sheet but no significant capital or earnings impact [41][44] Question: Impact of NEWITY 7(a) program on income statement - Management explained that if volumes pick up, there would be a gain on sale component and a share of the premium from sold loans, which would positively impact earnings [46][48]

FY22 Q4 Investor Call July 26, 2022 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 estim ...

FY22 Q3 Investor Call April 26, 2022 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 esti ...

Northeast Bank (NASDAQ:NBN) Q2 2022 Earnings Conference Call April 26, 2022 10:00 AM ET Company Participants Rick Wayne ??? President and Chief Executive Officer Patrick Dignan ??? Executive Vice President and Chief Credit Officer Jean Pierre Lapointe ??? Chief Financial Officer Conference Call Participants Alex Twerdahl ??? Piper Sandler Operator Welcome to the Northeast Bank Third Quarter Fiscal Year 2022 Earnings call. My name is Richard and I'll be your operator for today's call. This call is being reco ...

Northeast Bank (NASDAQ:NBN) Q1 2022 Earnings Conference Call October 28, 2021 10:00 AM ET Company Participants Rick Wayne - President and Chief Executive Officer JP Lapointe - Chief Financial Officer Pat Dignan - Executive Vice President and Chief Credit Officer Conference Call Participants Alex Twerdahl - Piper Sandler Operator Good day, everyone, and welcome to the Northeast Bank Fiscal Year 2022 First Quarter Earnings Results Conference Call. This call is being recorded. With us today from the bank is Ri ...

Financial Data and Key Metrics Changes - For Q4 2021, the company reported a net income of $21.4 million and an annual net income of $71.5 million, with an EPS of $2.54 for the quarter and $8.55 for the year [6] - Return on equity for the quarter was 37.97% and 37.44% for the year, while return on assets was 4.55% for the quarter and 4.53% for the year, indicating strong performance [6] - Total loan volume was $710 million, with $114 million originated in the national lending business, resulting in a net growth of $50 million or a 10.5% increase over the previous quarter [7] Business Line Data and Key Metrics Changes - The national lending business saw a total of $478 million in originations and purchases for the year, reflecting an 11.5% year-over-year growth [11] - The average deposits decreased to 41 basis points from 74 basis points for the year, indicating a shift in deposit composition [7] - The company repurchased 194,000 shares at an average price of $29.56 during the quarter [11] Market Data and Key Metrics Changes - The company operates in 44 states, with the largest concentration in New York (36%) and California (18%) [15] - The weighted average loan-to-value (LTV) ratio was reported at 49%, indicating a conservative approach to lending [15] Company Strategy and Development Direction - The company aims to grow its loan book carefully, focusing on high-quality assets while exploring new markets such as Texas and expanding its presence in Florida and California [44][45] - Management emphasized the importance of leveraging capital to grow the loan book, with the potential to double its size based on current capital levels [52] Management's Comments on Operating Environment and Future Outlook - Management noted that the PPP program is winding down, with limited future originations expected, but they anticipate continued income from servicing PPP loans [74][76] - The company is optimistic about future growth opportunities, particularly in the national lending sector, supported by new business development hires [39][40] Other Important Information - The company reported a significant decrease in nonperforming assets, down to $20.4 million from $25 million in the previous quarter, reflecting improved asset quality [17][22] - The interest cost of the deposit portfolio decreased significantly, from 1.51% in the prior year to 41 basis points in the current quarter [25] Q&A Session Summary Question: Growth in the national originated portfolio - Management indicated that the growth was primarily due to increased loan volume rather than retention strategies, although efforts to retain loans are ongoing [38] Question: Future loan purchases amid bank mergers - Management acknowledged that mergers historically create opportunities for loan purchases, but they remain cautious about making projections based on past experiences [48] Question: Buyback strategy and tangible book value - Management discussed the balance between leveraging capital for growth and the potential for share buybacks, emphasizing the importance of careful growth [52][54] Question: Impact of PPP on future earnings - Management confirmed that the PPP program is essentially complete, with limited future originations expected, but they will continue to recognize income from existing PPP loans [74][76] Question: Current branch status and future plans - The company currently operates nine branches and is focused on increasing core deposits, with plans to evaluate future branch openings based on market conditions [78][81]