PORTLAND, Maine, April 25, 2024 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based full-service bank, announced today it will release its fiscal 2024 third quarter earnings results on Tuesday, April 30, 2024. Following the release, the Bank will host a conference call with a simultaneous webcast at 10:00 a.m. ET on Wednesday, May 1, 2024. The conference call will be hosted by Rick Wayne, President and Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, ...

Financial Data and Key Metrics Changes - The net income for the quarter was $14.1 million, with an EPS of $1.85, a return on equity of 17.35%, and a return on assets of 1.93% [10] - The weighted average rate on the entire loan portfolio was 9.45%, indicating strong performance [10] - The tangible book value grew to $41.97, just under $42 [10] Business Line Data and Key Metrics Changes - The company originated $63.5 million in loans, consistent with prior quarters, but expects higher numbers in the current quarter [33] - Purchased loans activity was $186.1 million, with a purchase price of 89.5% of UPB, marking the second strongest purchase quarter [3] - Nonperforming loans increased from approximately $17.5 million to $30.7 million, primarily due to three loans designated as non-accrual [7] Market Data and Key Metrics Changes - Deposits in banking centers increased by $216 million, or 38% year-over-year [13] - The quarterly cost of deposits was 4.16%, with a spot rate of 4.23% at the end of the quarter [37] Company Strategy and Development Direction - The company is focusing on building core deposits in branches to replace higher-cost deposits [13] - There is an expectation for growth in both purchase and origination numbers, with a shift from a primarily origination-focused model to a more balanced approach [25][57] Management's Comments on Operating Environment and Future Outlook - Management noted a fair amount of good supply in the marketplace for purchases, indicating optimism about future opportunities [3][42] - The company is seeing increased activity in the market, with expectations for continued growth in origination volumes [25][33] Other Important Information - The company experienced a $957,000 charge-off related to a deferred tax asset due to changes in Massachusetts apportionment factors [10] - There was a full quarter of stock compensation expense recorded, contributing to a $300,000 increase in expenses from the previous quarter [38] Q&A Session All Questions and Answers Question: Can you provide more context on the supply in the marketplace for purchases? - Management indicated that the current quarter has seen a much better supply compared to the last quarter, with banks selling assets for various reasons, including shedding commercial real estate [42] Question: How does the recent pullback in rates impact the sales process and pricing? - Management stated that while rates declining could impact pricing, they have not yet seen a significant effect on their purchasing strategy [22] Question: Is the increase in gain on sale of SBA loans indicative of success in that product? - Management noted that the revenue from SBA loans has been increasing, but they are reluctant to predict future contributions from this product [50]

Rick Wayne - President and Chief Executive Officer JP Lapointe - Chief Financial Officer Pat Dignan - Executive Vice President and Chief Operating Officer Welcome to the Northeast Bank First Quarter Fiscal Year 2024 Earnings Call. My name is Victor, and I will be your operator for today's call. This call is being recorded. Please note that this presentation contains forward-looking statements about Northeast Bank. Forward-looking statements are based upon the current expectations of Northeast Bank's managem ...

Deposit Portfolio - Grand Total Deposits increased by $638728 thousand, a 48% increase, from $1328399 thousand on September 30, 2022 to $1967127 thousand on September 30, 2023[2] - Certificate of Deposit increased by $749985 thousand, a 315% increase, from $237991 thousand to $987976 thousand[2] - Brokered Deposits increased significantly by $616298 thousand, an 808% increase[2] Loan Portfolio - Total Loans reached $2528210 thousand with an average LTV of 47%[44, 70] - Purchased Loans constitute $1516379 thousand of the total loan portfolio, with an average balance of $439 thousand and WA LTV of 46%[70] - Direct Originated Loans amounted to $516754 thousand, with an average balance of $4655 thousand and WA LTV of 54%[70] - Lender Finance Loans totaled $441478 thousand, with an average balance of $4551 thousand and WA LTV of 45%[70] Financial Performance - Net Income for Q1 FY24 was $152 million[68] - Net Interest Margin was 530%[68] - Purchased Loan Return was 904% for Q1 FY24, including $28 million of transactional income[68] National Lending Portfolio - The National Lending portfolio's balance at the end of Q1 FY24 was $24746 million[47, 74] - Total National Lending originations for Q1 FY24 were $68 million, with a weighted average rate of 927% and a weighted average floor rate of 798%[68] - Regularly Scheduled Interest & Accretion for purchased loans was 829%, while Originated loans was 972%[24]

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 ...

Financial Data and Key Metrics Changes - The company reported a net income of $11.3 million and earnings per share of $1.54, with a return on equity of 17.5% and return on assets of 2.1% for the quarter [4] - The total capital stood at $270 million, with a weighted average loan-to-value on purchases at 33.5% [7][6] - The loan discount combined increased to $189.6 million, up by $150 million from the previous quarter [10] Business Line Data and Key Metrics Changes - The company originated $174 million in loans with a weighted average yield of 8.72%, while the entire loan book earned 8.48% [23] - The purchased loans yielded a return of 8.69%, with significant purchases in multi-family and retail collateral types [24] - The average cost of deposits increased by 141 basis points from 0.87% in Q1 to 2.28% at the end of December [26] Market Data and Key Metrics Changes - The largest portion of the loan purchases was in California, amounting to $570 million, followed by New York at $216 million and Washington state at $89 million [25] - The company’s national lending portfolio is diversified across 42 states, with New York and California representing 33% and 31% of the portfolio, respectively [7] Company Strategy and Development Direction - The company aims to replace correspondent fee income with net interest income, achieving a net interest income of $28.7 million, up from $20 million a year ago [29] - An at-the-market offering for up to $50 million was approved, indicating a proactive approach to capital management [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan market, indicating potential for continued purchases in the upcoming quarters [19] - The company anticipates an increase in non-interest expenses due to the addition of personnel to service the expanded loan book, although it remains highly profitable [28] Other Important Information - The company purchased loans with an unpaid principal balance (UPB) of $1.15 billion at a price of $998.5 million, representing an 86.6% investment on the purchase price [4] - The brokered CDs had a cost of 4.43%, with expectations to replace them with funding at about 4% as they mature [27] Q&A Session Summary Question: What is the outlook for future loan purchases? - Management indicated that the market remains solid, and there is a possibility of continued purchases over the next couple of quarters [19] Question: What are the constraints on the balance sheet regarding future purchases? - The company has a loan capacity of $150 million as of December 31, down from $1 billion a year ago, but does not see capital constraints for future opportunities [38][48] Question: Can you provide details on the characteristics of the purchased loans? - The purchased loans are longer-term assets with a weighted average maturity of over 10 years and lower coupon rates, which contributed to the significant discount [42] Question: How will the increase in expenses be managed? - Management stated that they would provide more clarity on the number of hires and efficiency ratios in the next call, emphasizing that the increase in expenses would be relatively small compared to the loan book size [50]

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 ...