Northeast Bank Reports First Quarter Results and Declares Dividend

Core Points - Northeast Bank reported a net income of $17.1 million, or $2.11 per diluted common share, for the quarter ended September 30, 2024, an increase from $15.2 million, or $2.01 per diluted common share, for the same quarter in 2023 [1][8] - The Board of Directors declared a cash dividend of $0.01 per share, payable on November 26, 2024 [2] - The National Lending Division generated $859.8 million in loans, marking the second-largest quarterly loan volume in the Bank's history, with a portfolio growth of $742.2 million, or 27.6%, since June 30, 2024 [3][4] - Total assets increased to $3.94 billion, up $807.7 million, or 25.8%, from $3.13 billion as of June 30, 2024 [3][24] Financial Performance - Net interest and dividend income before provision for credit losses rose by $1.9 million to $39.0 million for the quarter ended September 30, 2024, compared to $37.1 million for the same quarter in 2023 [8][31] - Noninterest income increased by $3.3 million, primarily due to a gain on the sale of SBA loans, which rose to $3.1 million from $251 thousand year-over-year [13][31] - Noninterest expense increased by $2.3 million, driven by higher salaries and employee benefits, and increased loan expenses related to SBA 7(a) loans [14][31] Loan Portfolio and Asset Quality - The total loan portfolio reached $3.52 billion, reflecting a 27.5% increase from the previous quarter [4][24] - Nonperforming assets totaled $37.2 million, or 0.94% of total assets, compared to $28.3 million, or 0.90% of total assets, as of June 30, 2024 [16] - Past due loans amounted to $31.3 million, or 0.89% of total loans, a slight decrease from $26.3 million, or 0.95% of total loans, as of June 30, 2024 [17] Capital and Ratios - Shareholders' equity increased by $15.9 million, or 4.2%, primarily due to net income and stock-based compensation [7] - The Tier 1 leverage capital ratio was 12.1%, down from 12.3% at June 30, 2024, while the total risk-based capital ratio decreased to 12.7% from 14.8% [18]