Northeast Bank Reports Third Quarter Results and Declares Dividend

Northeast Bank

Tue, Apr 29, 2025, 2:16 PM 29 min read

PORTLAND, Maine, April 29, 2025 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based bank, today reported net income of $18.7 million, or $2.23 per diluted common share, for the quarter ended March 31, 2025, compared to net income of $13.9 million, or $1.83 per diluted common share, for the quarter ended March 31, 2024. Net income for the nine months ended March 31, 2025 was $58.2 million, or $7.07 per diluted common share, compared to $43.1 million, or $5.67 per diluted common share, for the nine months ended March 31, 2024.

The Board of Directors declared a cash dividend of $0.01 per share, payable on May 27, 2025, to shareholders of record as of May 13, 2025.

“We recorded strong loan volume during the third fiscal quarter,” said Rick Wayne, Chief Executive Officer. “Our National Lending Division generated $292.5 million in originated and purchased volume, and our small balance SBA 7(a) program with Newity LLC as our loan service provider has continued to grow, with quarterly originations of $121.3 million, compared to $100.3 million for the quarter ended December 31, 2024 and $29.0 million for the quarter ended March 31, 2024. At March 31, 2025, the loan portfolio, including loans held for sale, totaled $3.80 billion, representing an increase of $1.04 billion, or 37.7%, over June 30, 2024. During the quarter ended March 31, 2025, we sold $73.6 million of the guaranteed portion of our SBA loans, generating a gain on sale of $6.0 million, compared with sales of $64.5 million for a gain on sale of $5.6 million in the quarter ended December 31, 2024. For the quarter, we are reporting earnings of $2.23 per diluted common share, a return on average equity of 16.5%, and a return on average assets of 1.9%.”

As of March 31, 2025, total assets were $4.23 billion, an increase of $1.10 billion, or 35.0%, from total assets of $3.13 billion as of June 30, 2024.

1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the nine months ended March 31, 2025:


	Loan Portfolio Changes
	March 31, 2025 Balance		June 30, 2024 Balance		Change ($)			Change (%)
	(Dollars in thousands)
National Lending Purchased	$	2,443,822	$	1,708,551	$	735,271			43.03	%
National Lending Originated		1,185,153		981,497		203,656			20.75	%
SBA National		152,319		48,405		103,914			214.68	%
Community Banking		19,495		22,704		(3,209	)		(14.13	%)
Total	$	3,800,789	$	2,761,157	$	1,039,632			37.65	%

Loans generated by the Bank's National Lending Division for the quarter ended March 31, 2025 totaled $292.5 million, which consisted of $74.5 million of purchased loans at an average price of 94.2% of unpaid principal balance, and $218.0 million of originated loans. Loans generated by the Bank’s SBA Division for the quarter ended March 31, 2025 totaled $121.3 million.

An overview of the Bank’s National Lending Division portfolio follows:

	National Lending Portfolio
	Three Months Ended March 31,
	2025						2024
	Purchased		Originated		Total		Purchased		Originated		Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	79,144	$	217,983	$	297,127	$	-	$	153,349	$	153,349
Initial net investment basis (1)		74,553		217,983		292,536		-		153,349		153,349

Loan returns during the period:
Yield		8.33%		8.73%		8.46%		8.67%		10.09%		9.19%
Total Return on Purchased Loans (2)		8.43%		N/A		8.43%		8.70%		N/A		8.70%

	Nine Months Ended March 31,
	2025						2024
	Purchased		Originated		Total		Purchased		Originated		Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	901,693	$	591,292	$	1,492,985	$	271,741	$	284,876	$	556,617
Initial net investment basis (1)		821,485		591,292		1,412,777		238,477		284,876		523,353

Loan returns during the period:
Yield		8.65%		9.02%		8.77%		8.95%		9.97%		9.34%
Total Return on Purchased Loans (2)		8.70%		N/A		8.70%		8.98%		N/A		8.98%

Total loans as of period end:
Unpaid principal balance	$	2,638,438	$	1,185,153	$	3,823,591	$	1,794,669	$	975,876	$	2,770,545
Net investment basis		2,443,822		1,185,153		3,628,975		1,620,409		975,876		2,596,285

(1) Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark).
(2) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled “Total Return on Purchased Loans.”

2. Deposits increased by $956.3 million, or 40.9%, from June 30, 2024. The increase was primarily attributable to increases in time deposits of $943.5 million, or 72.2%. The significant drivers in the change in time deposits were the increase in brokered time deposits, which increased by $818.8 million, and Community Banking Division time deposits, which increased by $105.3 million compared to June 30, 2024.

3. Federal Home Loan Bank (“FHLB”) advances increased by $33.4 million, or 9.7%, from June 30, 2024. The increase was attributable to one new short-term borrowing, partially offset by net paydowns on amortizing advances.

4. Shareholders’ equity increased by $90.9 million, or 24.1%, from June 30, 2024, primarily due to net income of $58.2 million and $31.3 million of net proceeds on shares issued in connection with the Bank’s at-the-market (“ATM”) program.

Net income increased by $4.8 million to $18.7 million for the quarter ended March 31, 2025, compared to net income of $13.9 million for the quarter ended March 31, 2024.

1. Net interest and dividend income before provision for credit losses increased by $9.5 million to $46.0 million for the quarter ended March 31, 2025, compared to $36.5 million for the quarter ended March 31, 2024. The increase was primarily due to the following:

An increase in interest income earned on loans of $15.8 million, primarily due to higher average balances in the National Lending Division purchased and Small Business Administration (“SBA”) portfolios, partially offset by lower rates earned across the portfolio; and
An increase in interest income earned on short-term investments of $965 thousand, due to higher average balances, partially offset by lower rates earned; partially offset by,
An increase in deposit interest expense of $7.3 million, primarily due to higher average balances, partially offset by lower rates on interest-bearing deposits.

The following table summarizes interest income and related yields recognized on the loan portfolios:


	Interest Income and Yield on Loans
	Three Months Ended March 31,
	2025						2024
	Average		Interest				Average		Interest
	Balance (1)		Income		Yield		Balance (1)		Income		Yield
	(Dollars in thousands)
Community Banking	$	20,074	$	349	7.05	%	$	24,640	$	387	6.32	%
SBA National		121,521		2,975	9.93	%		35,848		1,159	13.00	%
National Lending:
Originated		1,120,756		24,120	8.73	%		953,401		23,909	10.09	%
Purchased		2,387,715		49,034	8.33	%		1,635,494		35,260	8.67	%
Total National Lending		3,508,471		73,154	8.46	%		2,588,895		59,169	9.19	%
Total	$	3,650,066	$	76,478	8.50	%	$	2,649,383	$	60,715	9.22	%

	Nine Months Ended March 31,
	2025						2024
	Average		Interest				Average		Interest
	Balance (1)		Income		Yield		Balance (1)		Income		Yield
	(Dollars in thousands)
Community Banking	$	21,330	$	1,088	6.79	%	$	25,786	$	1,242	6.41	%
SBA National		91,481		8,145	11.86	%		30,125		2,833	12.52	%
National Lending:
Originated		1,052,656		71,297	9.02	%		951,129		71,284	9.97	%
Purchased		2,183,068		141,831	8.65	%		1,558,362		104,780	8.95	%
Total National Lending		3,235,724		213,128	8.77	%		2,509,491		176,064	9.34	%
Total	$	3,348,535	$	222,361	8.85	%	$	2,565,402	$	180,139	9.35	%

(1) Includes loans held for sale.

The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended March 31, 2024, transactional income increased by $113 thousand for the quarter ended March 31, 2025, and regularly scheduled interest and accretion increased by $14.1 million primarily due to the increase in average balances. The total return on purchased loans for the quarter ended March 31, 2025 was 8.4%, a decrease from 8.7% for the quarter ended March 31, 2024. The following table details the total return on purchased loans:


	Total Return on Purchased Loans
	Three Months Ended March 31,
	2025				2024
	Income		Return (1)		Income		Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	48,149	8.18	%	$	34,045	8.37		%
Transactional income:
Release of allowance for credit losses on purchased loans		573	0.10	%		130	0.03		%
Accelerated accretion and loan fees		885	0.15	%		1,215	0.30		%
Total transactional income		1,458	0.25	%		1,345	0.33		%
Total	$	49,607	8.43	%	$	35,390	8.70		%

	Nine Months Ended March 31,
	2025				2024
	Income		Return (1)		Income			Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	136,055	8.30	%	$	98,505		8.41	%
Transactional income:
Release of allowance for credit losses on purchased loans		734	0.05	%		356		0.03	%
Accelerated accretion and loan fees		5,775	0.35	%		6,275		0.54	%
Total transactional income		6,509	0.40	%		6,631		0.57	%
Total	$	142,564	8.70	%	$	105,136		8.98	%

(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, and gains (losses) on real estate owned, and release of allowance for credit losses on purchased loans recorded during the period divided by the average invested balance on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure.

2. Provision for credit losses increased by $2.3 million to $2.9 million for the quarter ended March 31, 2025, compared to $596 thousand in the quarter ended March 31, 2024. The increase was primarily related to loan growth and increased reserves on the unguaranteed portion of the SBA portfolio.

3. Noninterest income increased by $5.1 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to an increase in gain on sale of SBA loans of $5.0 million, due to the sale of $73.6 million in SBA loans during the quarter ended March 31, 2025 as compared to the sale of $18.9 million during the quarter ended March 31, 2024.

4. Noninterest expense increased by $3.7 million for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024, primarily due to the following:

An increase in salaries and employee benefits expense of $1.7 million, primarily due to increases in regular, stock compensation expense and incentive compensation expense;
An increase in loan expense of $1.5 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; and
An increase in Federal Deposit Insurance Corporation (the “FDIC”) insurance expense of $195 thousand, due to the growth of the Bank’s asset size and an increased assessment rate.

5. Income tax expense increased by $3.7 million to $10.8 million, or an effective tax rate of 36.7%, for the quarter ended March 31, 2025, compared to $7.2 million, or an effective tax rate of 34.1%, for the quarter ended March 31, 2024. The increase in effective tax rate is primarily due to projected changes in income apportionment for state taxes and increased projections of the required write-down of the Bank’s deferred tax asset as a result of a change in Massachusetts income tax law.

As of March 31, 2025, nonperforming assets totaled $33.4 million, or 0.79% of total assets, compared to $28.3 million, or 0.90% of total assets, as of June 30, 2024.

As of March 31, 2025, past due loans totaled $34.0 million, or 0.91% of total loans, compared to past due loans totaling $26.3 million, or 0.95% of total loans, as of June 30, 2024.

As of March 31, 2025, the Bank’s Tier 1 leverage capital ratio was 11.5%, compared to 12.3% at June 30, 2024, and the Total risk-based capital ratio was 14.0% at March 31, 2025, compared to 14.8% at June 30, 2024. Capital ratios decreased primarily due to the increase in risk-weighted assets and average assets from significant loan growth during the nine months ended March 31, 2025, partially offset by increased retained earnings and additional capital raised under the Bank’s ATM program.

Investor Call Information
Rick Wayne, Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, Chief Operating Officer and Chief Credit Officer of Northeast Bank, will host a conference call to discuss third quarter earnings and business outlook at 10:00 a.m. Eastern Time on Wednesday, April 30^th. To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via live webcast, which can be viewed by accessing the Bank’s website at www.northeastbank.com and clicking on the About Us - Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.

About Northeast Bank
Northeast Bank (NASDAQ: NBN) is a bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank’s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Forward-Looking Statements
Statements in this press release 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. We may also make forward-looking statements in other documents we file with the FDIC, in our annual reports to our shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Bank’s control. The Bank’s actual results could differ materially from those expressed or implied by such the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; changes in employment levels, general business and economic conditions on a national basis and in the local markets in which the Bank operates; changes in customer behavior due to changing business and economic conditions (including the impact of recently imposed tariffs by the U.S. Administration and foreign governments, inflation and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changes in legislation and regulation under the new U.S. presidential administration; operational risks including, but not limited to, cybersecurity, fraud, natural disasters, climate change and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank’s Annual Report on Form 10-K, as amended by Amendment No. 1 to the Annual Report on Form 10-K/A for the year ended June 30, 2024 as updated in the Bank’s Quarterly Reports on Form 10-Q and other filings submitted to the FDIC. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events.

NBN-F


NORTHEAST BANK
BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
	March 31, 2025		June 30, 2024
Assets
Cash and due from banks	$	2,443	$	2,711
Short-term investments		341,633		239,447
Total cash and cash equivalents		344,076		242,158


Available-for-sale debt securities, at fair value		21,473		48,978
Equity securities, at fair value		7,314		7,013
Total investment securities		28,787		55,991

SBA loans held for sale		60,339		14,506

Loans:
Commercial real estate		2,764,809		2,028,280
Commercial and industrial		852,985		618,846
Residential real estate		122,466		99,234
Consumer		190		291
Total loans		3,740,450		2,746,651
Less: Allowance for credit losses		46,024		26,709
Loans, net		3,694,426		2,719,942


Premises and equipment, net		25,338		27,144
Real estate owned and other possessed collateral, net		1,200		-
Federal Home Loan Bank stock, at cost		16,106		15,751
Loan servicing rights, net		810		984
Bank-owned life insurance		19,203		18,830
Accrued interest receivable		17,445		15,163
Other assets		20,772		21,734
Total assets	$	4,228,502	$	3,132,203

Liabilities and Shareholders' Equity
Deposits:
Demand	$	154,540	$	146,727
Savings and interest checking		796,762		732,029
Money market		94,837		154,504
Time		2,249,654		1,306,203
Total deposits		3,295,793		2,339,463

Federal Home Loan Bank and other advances		378,543		345,190
Lease liability		19,465		20,252
Other liabilities		67,185		50,664
Total liabilities		3,760,986		2,755,569

Commitments and contingencies		-		-


Shareholders' equity
Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares
issued and outstanding at March 31, 2025 and June 30, 2024		-		-
Voting common stock, $1.00 par value, 25,000,000 shares authorized;
8,525,362 and 8,127,690 shares issued and outstanding at
March 31, 2025 and June 30, 2024, respectively		8,525		8,128
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized;
No shares issued and outstanding at March 31, 2025 and June 30, 2024		-		-
Additional paid-in capital		97,078		64,762
Retained earnings		361,901		303,927
Accumulated other comprehensive income (loss)		12		(183	)
Total shareholders' equity		467,516		376,634
Total liabilities and shareholders' equity	$	4,228,502	$	3,132,203


NORTHEAST BANK
STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended March 31,						Nine Months Ended March 31,
	2025			2024			2025		2024
Interest and dividend income:
Interest and fees on loans		$	76,478	$	60,715		$	222,361	$	180,139
Interest on available-for-sale securities			352		596			1,383		1,639
Other interest and dividend income			3,996		3,179			12,104		9,541
Total interest and dividend income			80,826		64,490			235,848		191,319

Interest expense:
Deposits			30,593		23,340			89,959		63,772
Federal Home Loan Bank advances			4,057		4,401			11,754		16,247
Obligation under capital lease agreements			225		237			691		664
Total interest expense			34,875		27,978			102,404		80,683
Net interest and dividend income before provision for credit losses			45,951		36,512			133,444		110,636
Provision for credit losses			2,908		596			5,275		1,221
Net interest and dividend income after provision for credit losses			43,043		35,916			128,169		109,415

Noninterest income:
Fees for other services to customers			362		320			1,197		1,218
Gain on sales of SBA loans			6,014		1,015			14,915		1,837
Net unrealized gain (loss) on equity securities			79		(55	)		106		17
Loss on real estate owned, other repossessed collateral and premises and equipment, net			-		-			-		(9	)
Bank-owned life insurance income			124		116			372		348
Correspondent fee income			16		40			69		183
Other noninterest income			24		106			28		194
Total noninterest income			6,619		1,542			16,687		3,788

Noninterest expense:
Salaries and employee benefits			12,477		10,784			34,947		30,409
Occupancy and equipment expense			1,275		1,072			3,456		3,277
Professional fees			669		503			1,985		1,784
Data processing fees			1,496		1,376			4,605		3,823
Marketing expense			89		256			318		738
Loan acquisition and collection expense			2,270		813			5,626		2,402
FDIC insurance expense			468		273			1,756		917
Other noninterest expense			1,399		1,352			4,203		4,138
Total noninterest expense			20,143		16,429			56,896		47,488
Income before income tax expense			29,519		21,029			87,960		65,715
Income tax expense			10,838		7,164			29,734		22,624
Net income		$	18,681	$	13,865		$	58,226	$	43,091


Weighted-average shares outstanding:
Basic			8,216,746		7,509,320			8,047,775		7,510,065
Diluted			8,394,964		7,595,124			8,232,435		7,602,844

Earnings per common share:
Basic		$	2.27	$	1.85		$	7.24	$	5.74
Diluted			2.23		1.83			7.07		5.67

Cash dividends declared per common share		$	0.01	$	0.01		$	0.03	$	0.03


NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Three Months Ended March 31,
	2025						2024
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning assets:
Investment securities	$	32,963	$	352	4.33	%	$	60,211	$	596	3.98	%
Loans (1) (2) (3)		3,650,066		76,478	8.50	%		2,649,383		60,715	9.22	%
Federal Home Loan Bank stock		16,657		301	7.33	%		17,636		449	10.24	%
Short-term investments (4)		336,877		3,695	4.45	%		204,869		2,730	5.36	%
Total interest-earning assets		4,036,563		80,826	8.12	%		2,932,099		64,490	8.85	%
Cash and due from banks		2,332						2,446
Other non-interest earning assets		39,847						50,227
Total assets	$	4,078,742					$	2,984,772

Liabilities & Shareholders' Equity:
Interest-bearing liabilities:
NOW accounts	$	566,932	$	5,190	3.71	%	$	524,301	$	5,767	4.42	%
Money market accounts		116,647		754	2.62	%		190,379		1,619	3.42	%
Savings accounts		198,094		1,365	2.79	%		140,737		1,126	3.22	%
Time deposits		2,129,320		23,284	4.43	%		1,185,558		14,828	5.03	%
Total interest-bearing deposits		3,010,993		30,593	4.12	%		2,040,975		23,340	4.60	%
Federal Home Loan Bank advances		372,029		4,057	4.42	%		396,130		4,401	4.47	%
Lease liability		19,340		225	4.72	%		20,981		237	4.54	%
Total interest-bearing liabilities		3,402,362		34,875	4.16	%		2,458,086		27,978	4.58	%

Non-interest bearing liabilities:
Demand deposits and escrow accounts		183,348						163,042
Other liabilities		33,025						24,571
Total liabilities		3,618,735						2,645,699
Shareholders' equity		460,007						339,073
Total liabilities and shareholders' equity	$	4,078,742					$	2,984,772

Net interest income			$	45,951					$	36,512

Interest rate spread					3.96	%					4.27	%
Net interest margin (5)					4.62	%					5.01	%

Cost of funds (6)					3.94	%					4.29	%

(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.


NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Nine Months Ended March 31,
	2025						2024
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning assets:
Investment securities	$	42,865	$	1,383	4.30	%	$	60,060	$	1,639	3.63	%
Loans (1) (2) (3)		3,348,535		222,361	8.85	%		2,565,402		180,139	9.35	%
Federal Home Loan Bank stock		16,190		977	8.04	%		20,415		1,331	8.68	%
Short-term investments (4)		302,262		11,127	4.90	%		204,252		8,210	5.35	%
Total interest-earning assets		3,709,852		235,848	8.47	%		2,850,129		191,319	8.93	%
Cash and due from banks		2,219						2,482
Other non-interest earning assets		55,078						58,609
Total assets	$	3,767,149					$	2,911,220

Liabilities & Shareholders' Equity:
Interest-bearing liabilities:
NOW accounts	$	570,906	$	17,014	3.97	%	$	507,594	$	16,548	4.34	%
Money market accounts		131,481		2,972	3.01	%		226,072		5,760	3.39	%
Savings accounts		188,053		4,575	3.24	%		118,044		2,603	2.93	%
Time deposits		1,864,771		65,398	4.67	%		1,061,399		38,861	4.87	%
Total interest-bearing deposits		2,755,211		89,959	4.35	%		1,913,109		63,772	4.44	%
Federal Home Loan Bank advances		357,020		11,754	4.39	%		463,065		16,247	4.67	%
Lease liability		19,655		691	4.68	%		21,373		664	4.13	%
Total interest-bearing liabilities		3,131,886		102,404	4.36	%		2,397,547		80,683	4.48	%

Non-interest bearing liabilities:
Demand deposits and escrow accounts		182,877						166,955
Other liabilities		29,877						24,388
Total liabilities		3,344,640						2,588,890
Shareholders' equity		422,509						322,330
Total liabilities and shareholders' equity	$	3,767,149					$	2,911,220

Net interest income			$	133,444					$	110,636

Interest rate spread					4.11	%					4.45	%
Net interest margin (5)					4.79	%					5.17	%

Cost of funds (6)					4.12	%					4.19	%

(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.


NORTHEAST BANK
SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Net interest income	$	45,951	$	48,490	$	39,000	$	37,935	$	36,512
Provision for credit losses		2,908		1,944		422		547		596
Noninterest income		6,619		5,949		4,119		2,092		1,542
Noninterest expense		20,143		19,066		17,685		17,079		16,429
Net income		18,681		22,440		17,106		15,140		13,865

Weighted-average common shares outstanding:
Basic		8,216,746		8,044,345		7,886,148		7,765,868		7,509,320
Diluted		8,394,964		8,197,568		8,108,688		7,910,692		7,595,124
Earnings per common share:
Basic	$	2.27	$	2.79	$	2.17	$	1.95	$	1.85
Diluted		2.23		2.74		2.11		1.91		1.83

Dividends declared per common share	$	0.01	$	0.01	$	0.01	$	0.01	$	0.01

Return on average assets		1.86%		2.24%		2.09%		1.99%		1.87%
Return on average equity		16.47%		21.14%		17.53%		16.56%		16.45%
Net interest rate spread (1)		3.96%		4.21%		4.18%		4.41%		4.27%
Net interest margin (2)		4.62%		4.88%		4.90%		5.13%		5.01%
Efficiency ratio (non-GAAP) (3)		38.32%		35.02%		41.01%		42.67%		43.17%
Noninterest expense to average total assets		2.00%		1.90%		2.16%		2.24%		2.21%
Average interest-earning assets to average interest-bearing liabilities		118.64%		118.24%		118.48%		118.78%		119.28%

	As of:
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Nonperforming loans:
Originated portfolio:
Residential real estate	$	2,407	$	2,446	$	3,976	$	2,502	$	2,573
Commercial real estate		3,197		3,662		4,682		1,407		2,075
Commercial and industrial		6,945		6,696		6,684		6,520		6,928
Consumer		3		5		-		-		-
Total originated portfolio		12,552		12,809		15,342		10,429		11,576
Total purchased portfolio		19,680		17,257		21,830		17,832		16,370
Total nonperforming loans		32,232		30,066		37,172		28,261		27,946
Real estate owned and other repossessed collateral, net		1,200		1,200		-		-		-
Total nonperforming assets	$	33,432	$	31,266	$	37,172	$	28,261	$	27,946

Past due loans to total loans		0.91%		0.85%		0.89%		0.95%		1.13%
Nonperforming loans to total loans		0.86%		0.84%		1.06%		1.02%		1.05%
Nonperforming assets to total assets		0.79%		0.77%		0.94%		0.90%		0.93%
Allowance for credit losses to total loans		1.23%		1.25%		1.25%		0.97%		0.98%
Allowance for credit losses to nonperforming loans		142.79%		148.92%		117.40%		94.51%		92.83%
Net charge-offs (recoveries)	$	2,082	$	869	$	1,604	$	1,347	$	2,225
Commercial real estate loans to total capital (4)		521.47%		542.12%		604.38%		482.13%		509.08%
Net loans to deposits		112.10%		112.52%		110.70%		116.88%		118.15%
Purchased loans to total loans		65.33%		66.63%		69.11%		61.88%		60.99%
Equity to total assets		11.06%		10.88%		9.96%		12.02%		11.73%
Common equity tier 1 capital ratio		12.72%		12.66%		11.45%		13.84%		13.24%
Total risk-based capital ratio		13.97%		13.91%		12.70%		14.82%		14.22%
Tier 1 leverage capital ratio		11.45%		11.16%		12.06%		12.30%		11.79%

Total shareholders’ equity	$	467,516	$	444,101	$	392,557	$	376,634	$	351,913
Less: Preferred stock		-		-		-		-		-
Common shareholders’ equity		467,516		444,101		392,557		376,634		351,913
Less: Intangible assets (5)		-		-		-		-		-
Tangible common shareholders' equity (non-GAAP)	$	467,516	$	444,101	$	392,557	$	376,634	$	351,913

Common shares outstanding		8,525,362		8,492,856		8,212,026		8,127,690		7,977,690
Book value per common share	$	54.84	$	52.29	$	47.80	$	46.34	$	44.11
Tangible book value per share (non-GAAP) (6)		54.84		52.29		47.80		46.34		44.11

(1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.
(2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period.
(3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income.
(4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.
(5) Includes the loan servicing rights asset.
(6) Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding.

For More Information:
Richard Cohen, Chief Financial Officer
Northeast Bank, 27 Pearl Street, Portland, Maine 04101
207.786.3245 ext. 3249
www.northeastbank.com

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