What does Northeast Bank do and what are its main business segments?

What is Northeast Bank's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Northeast Bank year over year?

What were the key takeaways from Northeast Bank's earnings call?

What were the key takeaways from Northeast Bank’s earnings call?

What guidance did Northeast Bank's management provide for the next earnings period?

What factors drove the changes in Northeast Bank's revenue and profit?

Did Northeast Bank beat or miss consensus estimates last quarter?

- **Record loan growth**: $897 million in Q2 2026, including $575 million in purchased loans at 92.6% discount.
- **SBA headwinds**: Government shutdown reduced SBA gains by $6 million QoQ, but origination volume rebounded in December.
- **NIM improvement ahead**: $1.25 billion in high-cost CDs maturing in next 6 months to drive margin expansion.
- **New product momentum**: $70 million in small balance insured loans originated, with potential for 2-2.5% spread economics.

**【CEO Summary Section】**
- Highlighted the bank's three core pillars: purchased commercial real estate loans, originated loans, and small business lending.
- Reported a 3-year average ROE of 17.7% and 76% loan growth over three years.
- Q2 2026 loan volume reached $897 million, with $575 million in purchased loans at a 92.6% discount and $252 million in originated loans at 7.6% yield.
- Net income of $20.7 million was lower than prior quarters due to SBA loan origination delays caused by the U.S. government shutdown.
- Anticipated improvement in future quarters due to higher ending loan balance ($4.4 billion vs. $3.7 billion QoQ).

**【CFO Financial Commentary】**
- GAAP net income: $20.7 million ($2.47 EPS), down from $23.1 million ($2.83 EPS) in Q1 2026.
- Net interest margin (NIM): 4.49%, down 10bps QoQ due to liability repricing lag.
- Total assets: $4.95 billion (up 22% YoY), loans: $4.4 billion (up 19% YoY).
- Allowance for credit losses increased to 1.47% of loans, driven by purchased loan activity.
- Noninterest expense: $20.8 million (down 5% QoQ), with disciplined cost management.

**【COO Operational Update】**
- Purchased $576 million in loans at 10.8% yield, with 80% concentration in NY/NJ.
- Originated $252 million in loans with 7.5% average balance and 50% LTV.
- Launched new small balance insured loan program with $70 million in Q2 originations.
- SBA loan origination volume expected to stabilize at $20 million/month post-shutdown.

**【Q&A Highlights】**
- No share buybacks in Q2; share count decline due to stock compensation.
- NIM expected to improve as $1.25 billion in high-cost CDs roll off over next 6 months.
- Brokered deposits will remain primary funding source for rapid loan growth.
- Insured loan program economics: 2-2.5% spread retained post-sale, vs. 8-9% SBA gains.
- Pipeline for purchased loans remains robust due to M&A-driven market activity.

Northeast Bank (NBN) Q2 2026 Earnings Call Transcript

- **Strong Q1 Financials**: Net income of $22.5 million, NIM of 4.59%, and EPS of $2.67 reflect solid performance despite SBA rule changes.
- **Loan Growth Momentum**: Purchased $152.7 million in loans and originated $134 million, with a record pipeline for future quarters.
- **SBA Recovery Potential**: Post-government reopening, SBA originations expected to rebound, supported by a new insured loan product.
- **Cost Management**: Professional fees increased temporarily, but the bank maintained strong capital ratios and disciplined expense control.
- **CFO Transition Smooth**: New CFO and controller positions filled with internal candidates, ensuring continuity and stability.

**【CEO Summary Section】**
- **Q1 2026 Financial Highlights**: Net income of $22.5 million, NIM of 4.59%, ROE of 17.64%, ROA of 2.13%, and EPS of $2.67. Tangible book value was $59.98 per share.
- **Loan Activity**: Purchased $152.7 million in loans (UPB) at an invested amount of $144.6 million, the second-largest purchase quarter in 3 years. Originations reached $134 million, with a robust pipeline for future growth.
- **SBA Performance**: Funded $42 million in SBA loans, sold $53 million, with gains declining to $4.1 million from $8.2 million due to SBA rule changes. The pipeline remains strong, but government shutdowns temporarily halted originations.
- **Asset Quality**: Purchased loan book increased by $31 million, while originated loans decreased by $39 million. Allowance for loan losses decreased due to purchase accounting.

**【CFO Financial Commentary】**
- **Financial Results**: Pre-provision net interest income of $48.2 million, down from $59.4 million in the prior quarter due to higher cash balances and transactional income variability. Provision for loan losses was a credit of $435,000.
- **Expense Management**: Professional fees increased due to temporary staff and legal expenses related to new products. The bank maintained strong capital ratios (Tier 1 leverage at 12.21%).
- **Tax Rate**: Effective tax rate decreased due to state law changes (Massachusetts and California) and one-time tax benefits from stock vesting. Future rate expected to stabilize at 31-32%.

**【Q&A Highlights】**
- **SBA Recovery**: Government shutdown delayed SBA originations, but activity ramped up in October. Post-reopening, the bank expects to resume sales and funding, with a new insured loan product generating $10 million in closes.
- **Lender Finance Risk**: Emphasized rigorous underwriting and monitoring for lender finance loans, with low LTVs and robust collateral checks. No material stress observed in the portfolio.
- **CFO Transition**: Richard Cohen's departure was amicable, with a strong bench (e.g., Santino Delmolino as new CFO) ensuring continuity.
- **Payoffs and Growth**: High payoffs ($122 million) in Q1 due to declining rates and strategic portfolio reduction. Pipeline for purchases and originations remains healthy, supporting future growth.

Northeast Bank (NBN) Q1 2026 Earnings Call Transcript

- **Record Financial Performance**: $25.2 million net income and 5.1% NIM highlight strong Q4 results.
- **SBA Growth Despite Challenges**: 200% annual SBA growth, though Q4 volume may drop 50% due to regulatory changes.
- **Active Loan Market**: Competitive pipeline with potential for large purchases, driven by transactional income.
- **Multifamily Resilience**: NYC exposure managed with low LTVs, with most loans performing despite policy risks.
- **Efficiency Investment**: New technology initiatives to enhance operations, despite near-term cost increases.

**【CEO Summary Section】**
- **Record Net Income**: $25.2 million for Q4, excluding PPP loan sales, marking a new high.
- **Loan Growth**: Total originations and purchases reached $362.6 million quarterly and $2.1 billion annually. SBA origination hit $107.3 million quarterly and $408.5 million annually.
- **Financial Metrics**: NIM of 5.1%, ROE of 20.73%, ROA of 2.38%, and tangible book value of $57.98 per share.
- **Asset Quality**: Allowance for credit losses at 1.28%, up from 1.23% in Q3.
- **Transactional Income**: $4.094 million boosted NIM, with potential normalization in future quarters.

**【COO (Pat Dignan) Commentary】**
- **Portfolio Expansion**: 36% loan growth, including 43% purchased loans and 200% SBA growth. Purchased loans reached $863 million annually.
- **Origination Strength**: $216.6 million originated in Q4, averaging $9 million with 50% LTV.
- **SBA Challenges**: Anticipated 50% volume drop due to SBA rule changes, but long-term optimism persists.
- **Multifamily Risk Management**: $676 million NYC exposure, with $378 million free of rent controls and $44 million under watch.

**【CFO (Richard Cohen) Financial Commentary】**
- **Tax Rate Guidance**: Effective rate expected at 33-34% due to state tax changes.
- **Expense Management**: SBA-related expenses variable with volume, with fixed costs maintained.

**【Q&A Key Highlights】**
- **SBA Recovery Timeline**: Uncertain recovery, but market size supports long-term confidence.
- **Loan Purchase Activity**: Competitive pipeline with potential for large transactions.
- **NIM Outlook**: Excluding transactional income, NIM could stabilize around 8.55%.
- **Technology Investment**: Hiring innovation chief to drive efficiency, with increased expenses anticipated.
- **Multifamily Stability**: Performing loans with low LTVs provide buffer against rent freeze risks.

Northeast Bank (NBN) Q4 2025 Earnings Call Transcript

- **Q3 2025 Strong Loan Growth**: $414 million total loans, including record $121 million SBA volume (up 21% Q/Q). Net income $18.7 million (-3.7M Q/Q, +4.8M Y/Y).
- **SBA Business Thrives**: 1,069 loans originated vs. 330 a year ago. Regulatory changes may slow short-term growth but long-term potential remains.
- **Margin Pressure**: SBA yield down 167bps Q/Q to 9.93% due to rate cuts. Expect $4.8M net interest income in Q4 for recovery.
- **Liquidity Strength**: $1.6B available liquidity via FHLB/FRB. Brokered deposits at 50% of assets.
- **Future Outlook**: Full origination pipeline, cautious macro outlook, and potential for large loan purchases.

**【CEO Opening Remarks】**
- Q3 2025 loan volume reached $414 million, including $218 million in originated commercial real estate loans (second-highest on record) and $121.3 million in SBA loans (up 21% from Q2). Net income was $18.7 million, down $3.7 million from Q2 but up $4.8 million year-over-year.
- Key metrics: ROE of 16.47%, ROA of 1.86%, and tangible book value of $54.84 per share.
- Net interest income declined $2.5 million due to lower accelerated income from loan payoffs and a 2-day shorter quarter. Non-interest income rose $700,000 driven by SBA gains.
- One-time tax charges ($650,000) and $1.3 million in incentive comp drove the linked-quarter income decline.

**【COO Loan Portfolio Update】**
- SBA loans: 1,069 loans originated (vs. 330 a year ago), $121 million volume (vs. $29 million a year ago). SBA allowance increased 40bps to 3.6% due to regulatory changes.
- Purchased loans: $75 million acquired at 94% of par, with 56% LTV and diverse collateral. Origination pipeline remains strong despite market uncertainty.
- Regulatory changes: SBA cap reduced to $350k, higher credit scores, and enhanced documentation. Longer closing times expected but long-term growth potential remains.

**【CFO Financial Highlights】**
- Q3 2025 net income: $18.7 million (down 17% Q/Q, +34% Y/Y). EPS: $1.08 (vs. $1.03 Q2, $0.85 Q3 2024).
- Loan yields: 9.93% for SBA loans (down 167bps Q/Q due to prime rate cuts). Overall loan yield decline of 43bps.
- Liquidity: $400 million in cash/agency securities + $1.6 billion in FHLB/FRB capacity. Brokered deposits at 50% of assets.

**【Q&A Key Takeaways】**
- Loan growth outlook: Full origination pipeline but cautious on macro impacts. Potential for large purchase transactions.
- Margin recovery: Expect $4.8 million net interest income in Q4 (vs. $4.3 million Q3). Accretion income normalization and rate stability needed.
- SBA scalability: Fee income now $25 million/year. Long-term growth driven by technology and market demand despite short-term regulatory headwinds.
- Liquidity strategy: Balancing brokered CDs with FHLB capacity to maintain flexibility.

Northeast Bank (NBN) Q3 2025 Earnings Call Transcript

- **Record Financials**: $22.4M net income and $45.6M net interest income highlight Q2 strength, with tangible book value up 9% to $52.19.
- **Loan Growth Dynamism**: $246M originations (including $100M SBA) and $14M purchases show diversified growth, with 10% YoY portfolio expansion.
- **Improved Asset Quality**: NPL ratio drops to 84bps, classified loans down 14%, and no material impact from California wildfires.
- **Liquidity & Capital Strength**: $1B+ off-balance sheet liquidity and 13.9% capital ratio support $856M loan capacity for future deals.
- **SBA Sustainability**: Retaining 18-20% of SBA loans creates recurring income with minimal risk, positioning as top national lender.

**【CEO Summary Section】**
- Q2 2025 net income reached $22.4 million, a record quarter excluding PPP loan sales. Base net interest income hit $45.6 million, also a record.
- Loan origination volume surged to $246 million, with SBA loans reaching $100.3 million (including $64.5 million sold). Purchase loans totaled $14 million in the quarter.
- Tangible book value increased $4.49 per share (9% QoQ) to $52.19, driven by earnings and stock sales at a premium.
- Asset quality improved: non-performing loans fell to 84 basis points (from 106 basis points), and classified commercial loans declined to $26.6 million.

**【CFO Financial Commentary】**
- Average cost of deposits decreased 19 bps QoQ to 4.15%, benefiting from liability repricing in a rate-down environment.
- Liquidity improved to $430 million on-balance sheet and over $1 billion off-balance sheet, supporting loan growth opportunities.
- Capital ratios remained strong: leverage ratio at 11.2%, total capital at 13.9%, with $69 million remaining in ATM capacity.
- Loan capacity of $856 million reflects ample dry powder for future originations or purchases.

**【COO Loan Activity Update】**
- SBA lending pipeline remains robust, with NEWITY's tech-driven growth positioning the bank near the top of national SBA lenders.
- National real estate origination volume of $246 million featured low LTVs (50% avg) and strong credit metrics, with 10% YoY portfolio growth.
- Purchase loan market remains active, with $856 million capacity to capitalize on future deals despite quarterly lumpiness.

**【Q&A Highlights】**
- Expense outlook: $18-19 million quarterly range, reflecting higher FDIC costs tied to balance sheet growth.
- Loan purchase outlook: Optimistic for 2025, with M&A activity and balance sheet repricing creating opportunities, though timing uncertain.
- California wildfire exposure: No material impact due to borrower insurance and bank mortgage impairment coverage.
- SBA retention strategy: Holding 18-20% of loans post-sale generates recurring income with minimal credit risk.


Actual								0.21	1.33	0.94	0.98	4.06	2.54	1.2	1.42	1.36	1.35	1.12	1.54	1.69	1.61	2.01	1.85	1.83	1.91	2.11	2.74	2.23	3	2.67	2.47
Forecast								0.39	0.91	0.6	0.77	3.34	1.88	1.25	1.34	1.17	1.15	1.21	1.27	1.66	1.55	1.56	1.72	1.72	1.79	1.77	2.57	2.775	2.57	2.68	2.44
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-46.15%	+46.15%	+56.67%	+27.27%	+21.56%	+35.11%	-4.00%	+5.97%	+16.24%	+17.39%	-7.44%	+21.26%	+1.81%	+3.87%	+28.85%	+7.56%	+6.40%	+6.70%	+19.21%	+6.61%	-19.64%	+16.73%	-0.37%	+1.23%

NBN

NBN fundamentals

NBN Q2 2026 Earnings

Earnings Call

You can ask Aime

NBN

NBN fundamentals

NBN Q2 2026 Earnings

Earnings Call

NBN Earnings Call Summary for Q2/202611:00 AM on Jan 27, 2026

NBN Earnings Call Summary for Q1/202610:00 AM on Oct 29, 2025

NBN Earnings Call Summary for Q4/20251:00 PM on Jul 29, 2025

NBN Earnings Call Summary for Q3/202510:00 AM on Apr 30, 2025

NBN Earnings Call Summary for Q2/202510:00 AM on Feb 7, 2025

You can ask Aime