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

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

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

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

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

- **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.

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