{"id":1013737,"date":"2026-10-26T17:18:32","date_gmt":"2026-10-26T21:18:32","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-first-quarter-results-and-declares-dividend-3\/"},"modified":"2026-10-26T17:18:32","modified_gmt":"2026-10-26T21:18:32","slug":"northeast-bank-reports-first-quarter-results-and-declares-dividend-3","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-first-quarter-results-and-declares-dividend-3\/","title":{"rendered":"Northeast Bank Reports First Quarter Results and Declares Dividend"},"content":{"rendered":"
\n

PORTLAND, Maine, Oct. 26, 2026 (GLOBE NEWSWIRE) — Northeast Bank (the \u201cBank\u201d) (NASDAQ: NBN), a Maine-based bank, today reported net income of $29.0 million, or $3.42 per diluted common share, for the quarter ended September 30, 2026, compared to net income of $22.5 million, or $2.67 per diluted common share, for the quarter ended September 30, 2025.<\/p>\n

The Board of Directors declared a cash dividend of $0.01 per share, payable on November\u00a023, 2026, to shareholders of record as of November\u00a09, 2026.<\/p>\n

“We entered fiscal 2027 with strong momentum, delivering quarterly net income of $29.0 million and strong loan production of $534.3 million in the first quarter,\u201d said Rick Wayne, Chief Executive Officer. \u201cOur National Lending Division continued to generate attractive opportunities, with originated loan volume reaching a record $258.6 million during the quarter and purchases totaling $237.6 million invested, most of which occurred at the end of the quarter. Asset quality metrics remain healthy and shareholders\u2019 equity grew to $628.4 million. These results demonstrate the resilience of our business model and position us well for continued growth.”<\/p>\n

As of September\u00a030, 2026, total assets were $5.35 billion, an increase of $125.8 million, or 2.4%, from total assets of $5.23 billion as of June\u00a030, 2026, due to the following:<\/p>\n

1.\u00a0 \u00a0The following table highlights the changes in the loan portfolio, including loans held for sale, for the three months ended September 30, 2026:<\/p>\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nLoan Portfolio Changes<\/td>\n<\/tr>\n
\u00a0<\/td>\nSeptember 30, 2026<\/td>\n\u00a0<\/td>\nJune 30, 2026<\/td>\n\u00a0<\/td>\nChange ($)<\/td>\n\u00a0<\/td>\nChange (%)<\/td>\n<\/tr>\n
\u00a0<\/td>\n(Dollars in thousands)<\/td>\n<\/tr>\n
National Lending Purchased<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,789,235<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,756,583<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a032,652<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01.18<\/td>\n%<\/td>\n<\/tr>\n
National Lending Originated<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01,721,504<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01,586,523<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0134,981<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08.51<\/td>\n%<\/td>\n<\/tr>\n
Small Business<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0230,631<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0234,761<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(4,130<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(1.76<\/td>\n%)<\/td>\n<\/tr>\n
Community Banking<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a013,459<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a014,125<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(666<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(4.72<\/td>\n%)<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04,754,829<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04,591,992<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0162,837<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03.55<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

Loans generated during the quarter ended September 30, 2026 totaled $534.3 million, which consisted of $237.6 million of National Lending purchased loans at an average price of 93.5% of unpaid principal balance, $258.6 million of National Lending originated loans, $35.2 million of Small Business Administration (“SBA”) 7(a) loans, and $2.8 million of insured small balance business loans.<\/p>\n

An overview of the Bank\u2019s National Lending Division portfolio follows:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nNational Lending Portfolio<\/td>\n<\/tr>\n
\u00a0<\/td>\nThree Months Ended September 30,<\/td>\n<\/tr>\n
\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n2025<\/td>\n<\/tr>\n
\u00a0<\/td>\nPurchased<\/td>\n\u00a0<\/td>\nOriginated<\/td>\n\u00a0<\/td>\nTotal<\/td>\n\u00a0<\/td>\nPurchased<\/td>\n\u00a0<\/td>\nOriginated<\/td>\n\u00a0<\/td>\nTotal<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n(Dollars in thousands)<\/td>\n<\/tr>\n
Loans purchased or originated during the period:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Unpaid principal balance<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0254,184<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0258,609<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0512,793<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0152,690<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0133,818<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0286,508<\/td>\n\u00a0<\/td>\n<\/tr>\n
Initial net investment basis (1)<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0237,643<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0258,609<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0496,252<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0144,600<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0133,818<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0278,418<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Loan returns during the period:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Yield<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08.24<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a07.72<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08.04<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08.16<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08.63<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08.32<\/td>\n%<\/td>\n<\/tr>\n
Total Return on Purchased Loans (2)<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09.11<\/td>\n%<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09.11<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08.21<\/td>\n%<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08.21<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total loans as of period end:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Unpaid principal balance<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,924,956<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01,721,504<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04,646,460<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,578,040<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01,213,111<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03,791,151<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,789,235<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01,721,504<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04,510,739<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02,406,506<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01,213,111<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03,619,617<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

(1)\u00a0 \u00a0Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark).
(2)\u00a0 \u00a0The 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 \u201cTotal Return on Purchased Loans.\u201d<\/p>\n

2.\u00a0 \u00a0Investment securities increased by $45.4 million, or 46.5%, from June 30, 2026. The increase was driven by the purchase of $52.4 million in agency securities during the quarter ended September 30, 2026.<\/p>\n

3.\u00a0 \u00a0Deposits increased by $95.3 million, or 2.6%, from June 30, 2026. The increase was primarily attributable to an increase in time deposits of $143.4 million, or 5.7%. The significant driver in the change in time deposits was an increase in brokered time deposits, which increased by $151.9 million, partially offset by a decrease in Community Banking Division time deposits of $8.5 million.<\/p>\n

4.\u00a0 \u00a0Federal Home Loan Bank (\u201cFHLB\u201d) advances increased by $8.8 million, or 1.1%, from June 30, 2026. The increase was attributable to advances taken to fund loan growth.<\/p>\n

5.\u00a0 \u00a0Shareholders\u2019 equity increased by $24.5 million, or 4.1%, from June 30, 2026, primarily due to net income of $29.0 million for the quarter ended September 30, 2026 and stock-based compensation of $2.5 million, partially offset by the cancellation of restricted stock to cover tax obligations on restricted stock vests, which resulted in a $6.3 million decrease in shareholders’ equity.<\/p>\n

Net income increased by $6.4 million to $29.0 million for the quarter ended September 30, 2026, compared to net income of $22.5 million for the quarter ended September 30, 2025, due to the following:<\/p>\n

1.\u00a0 \u00a0Net interest and dividend income before provision for credit losses increased by $10.7 million to $58.9 million for the quarter ended September 30, 2026, compared to $48.2 million for the quarter ended September 30, 2025. The increase was primarily due to the following: \u00a0<\/p>\n