Financial Data and Key Metrics Changes - For Q4 2023, the company purchased $48.8 million of loans with an UPB of $54.3 million, marking a $19 million increase from the previous quarter [2] - The Return on Equity (ROE) was 16.7% for the quarter and 16.5% for the year, while the Return on Assets (ROA) was 1.7% for the quarter and 1.9% for the year [3] - The Net Interest Margin (NIM) increased by 16 basis points from the linked quarter to 4.91% [15] Business Line Data and Key Metrics Changes - The originated loan book increased by $229 million or 30% from the balance on June 30, 2022, with an origination of $84.2 million in the quarter [15] - Non-interest expense for the quarter was $16.4 million, which was $2.6 million over the linked quarter, primarily due to incentive compensation [18] Market Data and Key Metrics Changes - The average cost of deposits rose by 36 basis points from the previous quarter, with 95% of deposits insured [5] - The company noted a general decrease in transaction volume in the marketplace, indicating a wider bid-ask gap [3][15] Company Strategy and Development Direction - The company plans to enhance transparency regarding its commercial real estate portfolio by providing detailed information on various collateral types over the next quarters [6] - Management expressed a cautious approach to new transactions, emphasizing a focus on low loan-to-value (LTV) loans to mitigate credit risk [30] Management's Comments on Operating Environment and Future Outlook - Management noted that while there were significant transactions in the market, many did not meet pricing expectations, leading to a selective bidding strategy [15] - The company expects the bid-ask gap to narrow, potentially leading to more opportunities in the future [15] Other Important Information - The company is preparing for the adoption of the Current Expected Credit Loss (CECL) model, which is not expected to have a meaningful impact on the income statement [41][50] - The company has a current loan capacity of about $450 million, which has increased due to earnings and an $8 million raise through an ATM offering [38] Q&A Session Summary Question: Can you elaborate on the transaction volume coming to market? - Management noted that there were $2.5 billion of transactions in 34 pools, including a $900 million pool, with a mix of large and small transactions [23][25] Question: What is the appetite for larger pools of loans? - Management indicated a strong interest in larger transactions, with a focus on maintaining low credit risk [30][38] Question: What are the expectations regarding the CECL adoption? - Management clarified that the adoption of CECL is not expected to have a significant impact on the income statement, with adjustments primarily affecting the allowance for loan losses [41][50] Question: Who are the main competitors in the purchase market? - Management stated that the competition is primarily from banks, with some private equity and specialty finance companies also participating [49]

Rick Wayne - President & Chief Executive Officer Patrick Dignan - Chief Operating Officer JP Lapointe - Senior Vice President & Chief Financial Officer Welcome to the Northeast Bank Third Quarter Fiscal Year 2023 Earnings Conference Call. My name is Olivia 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; JP Lapointe, Chief Financial Officer; and Pat Dignan, Executive Vice President and Chief Operating O ...

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 ...