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]

FY 2021 Q4 Investor Call July 29, 2021 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 Performance - Total loan volume reached $236 billion in Q3 FY21[4] - SBA PPP loans originated amounted to $225 billion in Q3 FY21[4] - Gain on sale of PPP loans was $330 million in Q3 FY21[4] - Correspondent fee income totaled $60 million in Q3 FY21[4] - Net interest margin was 393% in Q3 FY21, and 506% excluding PPP[4] - Earnings reached $342 million in Q3 FY21[4] - Return on equity was 7106% and return on assets was 699% in Q3 FY21[4] Loan Portfolio - National Lending purchased loans had a total balance of $4335 million with a weighted average LTV of 47%[9] - Direct originated loans in National Lending had a balance of $2561 million with a weighted average LTV of 50%[9] - Portfolio Finance loans in National Lending had a balance of $2169 million with a weighted average LTV of 47%[9] Deposit Portfolio - Total deposits reached $12943 million with a weighted average rate of 049% as of March 31, 2021[60] - Checking deposits amounted to $6347 million with a weighted average rate of 009%[60]

Northeast Bank (NASDAQ:NBN) Q3 2021 Earnings Conference Call April 22, 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 2021 Third Quarter Earnings Results Conference Call. This call is being recorded. With us today from the bank ...

FY 2021 Q2 Investor Call January 28, 2021 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 ...

Financial Data and Key Metrics Changes - The company reported a record volume in its national lending business with $91 million in purchased loans and $84.6 million in originated loans, resulting in a $76 million increase or 9.2% over the previous quarter [5] - The net interest margin for the quarter was 5.23%, with a return on purchased loans at 9.06%, and earnings of $8.2 million, marking the second highest quarter in the bank's history [7] - The return on equity was 18.37%, earnings per share (EPS) was $0.98, and return on assets was 2.66% [7] Business Line Data and Key Metrics Changes - The correspondent fee income for the quarter was $6 million, with $1 million from amortization of correspondent fees, $600,000 from accrued interest, and $4.4 million from servicing income [9] - The company provided $142.7 million in principal and interest deferrals, with only $26.4 million remaining on deferral by the end of December [10] - For interest-only deferrals, $46.6 million were initiated, with only $6.7 million remaining at the end of December, showing strong performance in loan recovery [12] Market Data and Key Metrics Changes - The average cost of deposits decreased from 1.80% in the prior year to 1.03% in the current quarter, indicating improved funding costs [21] - Total revenue excluding PPP gains increased by 30% year-over-year, from $16.9 million to $21.9 million, primarily driven by correspondent fee income [23] Company Strategy and Development Direction - The company is actively engaged in originating PPP loans and expects to report more on this in the next quarter, indicating a focus on expanding its lending capabilities [6] - The strategy includes maintaining a low weighted average loan-to-value ratio of 51%, which reflects a conservative approach to risk management [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the performance of loans coming off deferment has been excellent, with a significant reduction in the number of loans remaining in deferral [11] - The company expressed confidence in its ability to manage non-performing loans, with a slight increase in non-performing assets but a strong historical performance in charge-offs [14][40] Other Important Information - The company has seen a significant increase in its reserve for originated loans, from $4.8 million (77 basis points) to $9.3 million (1.6%) year-over-year [18] - The company purchased nine pools of loans for $98 million, indicating active participation in the purchased loan market despite competitive pressures [16] Q&A Session Summary Question: Overview of fee income from correspondent banking agreements - The company earns fee income through a split of discounts on purchased loans, accrued interest, and servicing income, totaling $6 million for the quarter [28] Question: Update on PPP loan origination - The company is actively originating PPP loans and plans to sell them to Loan Source, expecting meaningful origination activity [30][31] Question: Trends in the national purchased loan market - The company noted that while it purchased $91 million, other buyers may come in for the remaining volumes, indicating a competitive market [35] Question: Credit quality and non-performing loans - The company clarified that while non-performing loans may appear higher, they are generally in the business of purchasing performing loans, and charge-offs have been low historically [39][40] Question: Expenses related to correspondent banking - The increase in expenses was primarily due to marketing and advertising costs associated with the new stimulus package, but overall expenses remain stable [42]

Financial Data and Key Metrics Changes - The company reported earnings of $7.8 million, or $0.94 per diluted share, with a return on equity of 18.5% and a return on assets of 2.49% [6] - Loan volume for the quarter was just under $76 million, including $23 million of triple key loans originated [7] - The net interest margin was 4.95%, and 5% excluding Triple P [7] - The allowance for loan losses increased from $5.3 million (57 basis points) to $9.5 million (1.02% of total loans) year-over-year [29] Business Line Data and Key Metrics Changes - The company originated $40.9 million in loans in its national lending group, with $4.6 million in purchased loans [7][15] - Correspondent fee income was $4.7 million, contributing to a total revenue increase of 20% year-over-year [34] - The deferment program provided $136.2 million in total deferments, with only $26.8 million still deferred at the end of September [12][13] Market Data and Key Metrics Changes - The company purchased $2.1 billion in loans for the quarter, bringing the total to $3.4 billion [8] - The average cost of deposits decreased from 1.84% to 1.19% year-over-year [32] - The company has $188 million of CDs maturing over the next two quarters, with a weighted average rate of 2.21% [32] Company Strategy and Development Direction - The company aims to increase its share of purchased loans over the next couple of years, with $80 million of purchased loans already under contract in October [20][51] - The management emphasized a conservative approach to lending, particularly in the current economic environment [16] - The company is focused on maintaining strong asset quality metrics, with non-performing assets remaining consistent [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's performance while working remotely and noted that the operational health of the company remains strong [5] - The management anticipates a significant volume of loans coming to market, with expectations of increased competition [51] - The company is prepared for potential economic volatility due to external factors such as the pandemic and upcoming elections [72] Other Important Information - The company has not engaged in stock buybacks during the last quarter but has a remaining capacity of 646,000 shares for buyback [69] - The management noted that the PPP loan program is expected to continue until December 31, 2020, depending on regulatory extensions [61] Q&A Session Summary Question: Clarification on loan source fees accounting - Management explained that correspondent fees and purchased accrued interest are recognized over approximately two years, depending on loan payoffs [41][43] Question: Update on the purchased loan market - Management indicated that while there is competition, they expect to see an increase in purchased loans on their balance sheet over the next couple of years [51][52] Question: Status of the PPP loan program - Management confirmed that the program is extended until December 31, 2020, and there is ongoing activity in the loan market [61][63]

Q1 FY 2021 Investor Call October 30, 2020 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 ...

Northeast Bank (NASDAQ:NBN) Q4 2020 Earnings Conference Call July 30, 2020 10:00 AM ET Company Participants Rick Wayne - Chief Executive Officer JP Lapointe - Chief Financial Officer Conference Call Participants Alex Twerdahl - Piper Sandler & Co Operator Good day, everyone, and welcome to the Northeast Bank Fiscal Year 2020 Fourth Quarter Earnings Results Conference Call. This call is being recorded. With us today from the bank is Rick Wayne, President and Chief Executive Officer; JP Lapointe, Chief Financ ...