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 ...

Northeast Bank (NASDAQ:NBN) Q3 2020 Earnings Conference Call April 23, 2020 10:00 AM ET Company Participants Richard Wayne - President, CEO & Director Jean-Pierre Lapointe - CFO & Treasurer Conference Call Participants Alexander Twerdahl - Piper Sandler & Co. Operator Good day, everyone, and welcome to the Northeast Bank Fiscal Year 2020 Third 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, ...

Financial Data and Key Metrics Changes - For Q2 2020, the company reported a net income of $4.9 million, or $0.53 per diluted common share, with a return on average equity of 12.1% and a return on average assets of 1.7% [6][17] - The net interest margin for the quarter was 5.6%, reflecting a decrease from the linked quarter [47] - The company experienced a decrease in non-interest expense by $565,000 compared to the linked quarter, primarily due to lower sales and employee benefits expenses [18][37] Business Line Data and Key Metrics Changes - The LASG portfolio saw strong loan growth of $75.4 million, or 10% over the linked quarter, with total loans generated reaching a record $175.4 million [7][8] - The weighted average yield of LASG loans originated in the quarter was 7.4%, with 82% being variable loans [9] - The total return on purchased loans for the quarter was 10.2%, while the originated portfolio generated a return of 7.7% [14] Market Data and Key Metrics Changes - The company’s loan portfolio at the end of the quarter exceeded $1 billion, a significant increase from the average loan balance of $946 million in the second quarter [8] - The company’s deposits decreased by $47 million, or 5%, over the trailing 12-month period, but increased compared to the linked quarter to fund loan growth [31][32] Company Strategy and Development Direction - The company is focused on leveraging its capital effectively to support loan growth, with no shares repurchased in the last quarter [70][73] - Management emphasized the importance of monitoring market conditions and adjusting loan strategies accordingly, particularly in response to changes in regulations such as rent control in New York [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the portfolio despite an increase in non-performing loans, attributing it to specific loans rather than a broader economic issue [66][68] - The company anticipates that it will manage its delinquency levels effectively and maintain low charge-off rates [63][66] Other Important Information - The effective tax rate for the current quarter was 28.9%, slightly up from 28.7% in the linked quarter [21][27] - The company has seen a shift in focus away from SBA originations, impacting non-interest income [22][24] Q&A Session Summary Question: Concerns about the increase in non-performing loans - Management clarified that the increase in non-performing loans was primarily due to two specific loans and emphasized the importance of charge-offs over delinquency levels [57][66] Question: Inquiry about share buybacks - Management confirmed that no shares were purchased in the last quarter and reiterated their focus on leveraging capital for loan growth [70][73] Question: Clarification on past due loans percentage increase - Management acknowledged the increase in past due loans but reassured that the underlying loans are well-secured and expected to resolve without losses [68][66]

Financial Performance - Net income for Q2 FY20 was $4.9 million[5], and for YTD FY20, it reached $9.6 million[5] - The diluted earnings per share (EPS) for YTD FY20 was $1.05[5] - Return on equity was 12.09% for Q2 FY20 and 12.13% for YTD FY20[5] - Return on assets was 1.68% for both Q2 FY20 and YTD FY20[5] Loan Portfolio - Total loan volume was $175.4 million in Q2 FY20 and $254.9 million YTD FY20[5] - LASG purchased loans amounted to $64.8 million invested on $66.8 million of UPB (97.1% purchase price) in Q2 FY20[5], and $93.5 million invested on $97.1 million of UPB (96.2% purchase price) YTD FY20[5] - LASG originated loans totaled $98.6 million in Q2 FY20 and $139.1 million YTD FY20[5] - The weighted average rate for loans as of December 31, 2019, was 7.44% for Q2 FY20 and 7.46% for YTD FY20[5] LASG Portfolio - The total return on purchased loans was 10.21% and originated loans was 7.67% for Q2 FY20[10] - Purchased loan return for Q2 FY20 included $2.4 million of transactional income[5]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2019 Commission File Number: 1-14588 Northeast Bancorp | (Exact name of registrant as specified in its charter) | | | --- | --- | | Maine | 01-0425066 | | (State or other jurisdiction of incorporation or | (I.R.S. Employer Identification No.) | | organization) | | | 500 Canal Stree ...

Part I. Financial Information This section covers unaudited financial statements, management's analysis, market risk, and internal controls [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements for December 31, 2018, show increased total assets and net income, driven by loan portfolio growth and higher net interest income [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position, highlighting asset growth driven by the loan portfolio and increased shareholders' equity | Financial Metric | Dec 31, 2018 (in thousands) | June 30, 2018 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,194,127** | **$1,157,736** | **+3.1%** | | Total Loans, Gross | $938,286 | $871,802 | +7.6% | | Total Deposits | $985,591 | $954,940 | +3.2% | | **Total Shareholders' Equity** | **$148,491** | **$138,430** | **+7.3%** | - The growth in total assets was primarily driven by a **7.6% increase** in the total loan portfolio, which grew from **$871.8 million to $938.3 million** between June 30, 2018, and December 31, 2018[8](index=8&type=chunk) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the company's financial performance, showing significant increases in net interest income and net income year-over-year | Metric (in thousands, except EPS) | Three Months Ended Dec 31, 2018 | Three Months Ended Dec 31, 2017 | YoY Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $15,643 | $12,457 | +25.6% | | Provision for Loan Losses | $101 | $437 | -76.9% | | **Net Income** | **$5,125** | **$3,304** | **+55.1%** | | **Diluted EPS** | **$0.56** | **$0.36** | **+55.6%** | | Metric (in thousands, except EPS) | Six Months Ended Dec 31, 2018 | Six Months Ended Dec 31, 2017 | YoY Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $30,001 | $25,768 | +16.4% | | Provision for Loan Losses | $633 | $792 | -20.1% | | **Net Income** | **$9,659** | **$7,890** | **+22.4%** | | **Diluted EPS** | **$1.05** | **$0.86** | **+22.1%** | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section outlines comprehensive income, reflecting net income adjusted for other comprehensive gains or losses | Metric (in thousands) | Three Months Ended Dec 31, 2018 | Three Months Ended Dec 31, 2017 | | :--- | :--- | :--- | | Net Income | $5,125 | $3,304 | | Other Comprehensive (Loss) Income, net of tax | ($316) | ($68) | | **Comprehensive Income** | **$4,809** | **$3,236** | [Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section details changes in shareholders' equity, primarily driven by net income for the six-month period - Total shareholders' equity increased from **$138.4 million** at June 30, 2018, to **$148.5 million** at December 31, 2018. The increase was primarily driven by **net income of $9.7 million** for the six-month period[15](index=15&type=chunk)[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details cash flows, showing significant investing activities funded by deposits and operating cash | Cash Flow Activity (in thousands) | Six Months Ended Dec 31, 2018 | Six Months Ended Dec 31, 2017 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $5,766 | $1,008 | | Net Cash from Investing Activities | ($55,746) | $11,465 | | Net Cash from Financing Activities | $30,194 | ($47,533) | | **Net Decrease in Cash** | **($19,786)** | **($35,060)** | - The primary use of cash in investing activities for the six months ended Dec 31, 2018, was for loan purchases (**$84.1 million**) and net loan originations, significantly higher than the prior year period. This was funded by a net increase in deposits (**$30.7 million**) and cash from operations[18](index=18&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on the loan portfolio, allowance for loan losses, and a significant merger agreement - The loan portfolio is composed of originated loans (**$607.6 million**) and purchased loans (**$330.6 million**) as of December 31, 2018. Commercial real estate loans represent the largest segment at **$572.7 million**[50](index=50&type=chunk) - The allowance for loan losses increased to **$5.3 million** at December 31, 2018, from **$4.8 million** at June 30, 2018. The allowance as a percentage of total loans was **0.57%**[66](index=66&type=chunk)[196](index=196&type=chunk)[198](index=198&type=chunk) - On January 7, 2019, the Company entered into an Agreement and Plan of Merger to merge the parent holding company (Northeast Bancorp) into its wholly-owned subsidiary, Northeast Bank. The bank will become the surviving, publicly-traded entity[147](index=147&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong fiscal 2019 performance, driven by loan growth and increased net interest income, alongside a strategic corporate reorganization - The company's strategy focuses on three core areas: - Growing the national originated and purchased loan business through its Loan Acquisition and Servicing Group (LASG) - Expanding its national SBA loan origination business - Maintaining its community banking operations for local deposit gathering and lending[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) | Loan Portfolio Change (Six Months Ended Dec 31, 2018) | Balance (in thousands) | Change vs June 30, 2018 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | LASG Purchased | $330,643 | +$39,671 | +13.63% | | LASG Originated | $435,817 | +$38,454 | +9.68% | | SBA | $67,282 | +$7,126 | +11.85% | | Community Banking | $104,544 | -$18,767 | -15.22% | | **Total** | **$938,286** | **+$66,484** | **+7.63%** | - Nonperforming assets decreased to **$13.8 million** (**1.16% of total assets**) as of December 31, 2018, from **$14.2 million** (**1.23% of total assets**) as of June 30, 2018[191](index=191&type=chunk)[193](index=193&type=chunk) - The company and the bank are considered "well capitalized" under all regulatory definitions. The company's Tier 1 leverage ratio was **13.20%** and its total capital ratio was **19.42%** as of December 31, 2018[160](index=160&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - A planned corporate reorganization will eliminate the bank holding company structure. If completed, regulatory commitments to the Federal Reserve will no longer apply, potentially permitting more growth in the bank's loan portfolio[162](index=162&type=chunk)[179](index=179&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section is not applicable as the company qualifies as a smaller reporting company - Disclosure about market risk is not required for smaller reporting companies[258](index=258&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2018[261](index=261&type=chunk) - There were no changes in internal controls over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[262](index=262&type=chunk) Part II. Other Information This section includes disclosures on legal proceedings, risk factors, equity sales, defaults, and other relevant information [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no material legal proceedings during the period - There are no legal proceedings to report[264](index=264&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable as the company qualifies as a smaller reporting company - Disclosure of risk factors is not required for smaller reporting companies[265](index=265&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no common stock repurchases during the quarter, as the repurchase program expired in October 2018 - No purchases of the company's common stock were made during the quarter. The stock repurchase program expired in October 2018[266](index=266&type=chunk) [Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[267](index=267&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[268](index=268&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None[269](index=269&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the merger agreement and required certifications - Key exhibits filed include the Agreement and Plan of Merger dated January 7, 2019, and certifications from the CEO and CFO pursuant to the Sarbanes-Oxley Act[271](index=271&type=chunk)