Northeast Bank Reports Second Quarter Results and Declares Dividend

Core Insights - Northeast Bank reported a significant increase in net income for the quarter ended December 31, 2024, reaching $22.4 million, or $2.74 per diluted common share, compared to $14.1 million, or $1.85 per diluted common share for the same quarter in 2023 [1][8] - The bank's total assets grew to $4.08 billion, marking a 30.4% increase from $3.13 billion as of June 30, 2024 [3][21] - The bank's National Lending Division achieved record originations of $246.4 million during the quarter, contributing to a total originated and purchased volume of $260.4 million [3][4] Financial Performance - Net interest and dividend income before provision for credit losses increased by $11.5 million to $48.5 million for the quarter ended December 31, 2024, compared to $37.0 million for the same period in 2023 [8][9] - Noninterest income rose by $4.5 million, primarily driven by a $5.0 million increase in gains on the sale of SBA loans [11] - Noninterest expense increased by $3.4 million, attributed to higher salaries and employee benefits, loan expenses, and FDIC insurance expenses [12][16] Loan Portfolio and Capital - The loan portfolio saw substantial growth, with total loans increasing by 31.32% to $3.63 billion as of December 31, 2024, from $2.76 billion as of June 30, 2024 [4][21] - The bank's Tier 1 leverage capital ratio was reported at 11.2%, down from 12.3% at June 30, 2024, due to increased risk-weighted assets [14] - Deposits increased by $811.9 million, or 34.7%, primarily due to a significant rise in time deposits [6][7] Asset Quality - Nonperforming assets totaled $31.3 million, or 0.77% of total assets, a decrease from $28.3 million, or 0.90% of total assets, as of June 30, 2024 [13] - Past due loans amounted to $30.5 million, or 0.85% of total loans, compared to $26.3 million, or 0.95% of total loans, as of June 30, 2024 [13] Future Outlook - The bank has initiated an additional at-the-market offering of up to $75.0 million of its voting common stock to raise capital as needed [3] - A conference call is scheduled for February 7, 2025, to discuss the second quarter earnings and business outlook [15]