{"id":810246,"date":"2025-02-06T17:17:38","date_gmt":"2025-02-06T22:17:38","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-second-quarter-results-and-declares-dividend-3\/"},"modified":"2025-02-06T17:17:38","modified_gmt":"2025-02-06T22:17:38","slug":"northeast-bank-reports-second-quarter-results-and-declares-dividend-3","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-second-quarter-results-and-declares-dividend-3\/","title":{"rendered":"Northeast Bank Reports Second Quarter Results and Declares Dividend"},"content":{"rendered":"
\n

PORTLAND, Maine, Feb. 06, 2025 (GLOBE NEWSWIRE) — Northeast Bank (the \u201cBank\u201d) (NASDAQ: NBN), a Maine-based full-service bank, today reported net income of $22.4 million, or $2.74 per diluted common share, for the quarter ended December 31, 2024, compared to net income of $14.1 million, or $1.85 per diluted common share, for the quarter ended December 31, 2023. Net income for the six months ended December 31, 2024 was $39.5 million, or $4.85 per diluted common share, compared to $29.2 million, or $3.86 per diluted common share, for the six months ended December 31, 2023.<\/p>\n

The Board of Directors declared a cash dividend of $0.01 per share, payable on March 4, 2025, to shareholders of record as of February 18, 2025.<\/p>\n

Discussing these results, Rick Wayne, Chief Executive Officer, said, \u201cOur National Lending Division generated $260.4 million in originated and purchased volume for the quarter, including record originations of $246.4 million. Our small balance SBA 7(a) program with Newity LLC as our loan service provider has continued to grow. For the quarter, we originated $100.3 million, compared to $82.4 million for the quarter ended September 30, 2024 and $13.6 million for the quarter ended December 31, 2023. During the current quarter we sold $64.5 million of the guaranteed portion of our SBA loans, generating a gain on sale of $5.6 million. Additionally, we approved and initiated an additional at-the-market (\u201cATM\u201d) offering of up to $75.0 million of our voting common stock, which provides the Bank with the ability to raise capital if and as needed. We are reporting earnings of $2.74 per diluted common share, a return on average equity of 21.1%, and a return on average assets of 2.2%.\u201d<\/p>\n

As of December 31, 2024, total assets were $4.08 billion, an increase of $950.9 million, or 30.4%, from total assets of $3.13 billion as of June 30, 2024.<\/p>\n

1.\u00a0 The following table highlights the changes in the loan portfolio, including loans held for sale, for the six months ended December 31, 2024:<\/p>\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nLoan Portfolio Changes<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nDecember 31, 2024
Balance<\/td>\n		\u00a0<\/td>\nJune 30, 2024
Balance<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nChange ($)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nChange (%)<\/td>\n<\/tr>\n
\n \u00a0<\/u>\n <\/td>\n(Dollars in thousands)<\/td>\n<\/tr>\n
National Lending Purchased<\/td>\n$<\/td>\n2,392,417<\/td>\n\u00a0<\/td>\n$<\/td>\n1,708,551<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n683,866<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n40.03<\/td>\n%<\/td>\n<\/tr>\n
National Lending Originated<\/td>\n\u00a0<\/td>\n1,109,192<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n981,497<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n127,695<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n13.01<\/td>\n%<\/td>\n<\/tr>\n
SBA National<\/td>\n\u00a0<\/td>\n103,554<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n48,405<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n55,149<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n113.92<\/td>\n%<\/td>\n<\/tr>\n
Community Banking<\/td>\n\u00a0<\/td>\n20,857<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n22,704<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,847<\/td>\n)<\/td>\n\u00a0<\/td>\n(8.14<\/td>\n%)<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n3,626,020<\/td>\n\u00a0<\/td>\n$<\/td>\n2,761,157<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n864,863<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n31.32<\/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<\/tr>\n<\/table>\n

Loans generated by the Bank’s National Lending Division for the quarter ended December 31, 2024 totaled $260.5 million, which consisted of $14.0 million of purchased loans at an average price of 94.8% of unpaid principal balance, and $246.4 million of originated 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\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 December 31,<\/td>\n<\/tr>\n
\u00a0<\/td>\n2024<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2023<\/td>\n\u00a0<\/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(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\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$<\/td>\n14,815<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n246,417<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n261,232<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n208,045<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n63,485<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n271,530<\/td>\n\u00a0<\/td>\n<\/tr>\n
Initial net investment basis (1)<\/td>\n\u00a0<\/td>\n14,039<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n246,417<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n260,456<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n186,131<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n63,485<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n249,616<\/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<\/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\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>\n8.84%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.06%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.91%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.19%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.81%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.43%<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Return on Purchased Loans (2)<\/td>\n\u00a0<\/td>\n8.86%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.86%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.21%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.21%<\/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<\/tr>\n
\u00a0<\/td>\nSix Months Ended December 31,<\/td>\n<\/tr>\n
\u00a0<\/td>\n2024<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2023<\/td>\n\u00a0<\/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(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\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$<\/td>\n822,549<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n373,309<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,195,858<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n271,741<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n131,528<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n403,269<\/td>\n\u00a0<\/td>\n<\/tr>\n
Initial net investment basis (1)<\/td>\n\u00a0<\/td>\n746,932<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n373,309<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,120,241<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n238,477<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n131,528<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n370,005<\/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<\/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\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>\n8.84<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.18%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.95%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.10%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.92%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.41%<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Return on Purchased Loans (2)<\/td>\n\u00a0<\/td>\n8.85%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.85%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.13%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.13%<\/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<\/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\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$<\/td>\n2,598,354<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,109,192<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n3,707,546<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,831,183<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n910,213<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2,741,396<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n2,392,417<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,109,192<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3,501,609<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,646,756<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n910,213<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,556,969<\/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<\/tr>\n<\/table>\n

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

\n
2. Deposits increased by $811.9 million, or 34.7%, from June 30, 2024. The increase was primarily attributable to increases in time deposits of $773.5 million, or 59.2%. The significant drivers in the change in time deposits were the increase in brokered time deposits, which increased by $660.5 million, and Community Banking Division time deposits, which increased by $90.5 million compared to June 30, 2024.<\/p>\n

3. Federal Home Loan Bank (\u201cFHLB\u201d) advances increased by $62.6 million, or 18.1%, from June 30, 2024. The increase was attributable to one new short-term borrowing, partially offset by net paydowns on amortizing advances.<\/p>\n

4. Shareholders\u2019 equity increased by $67.5 million, or 17.9%, from June 30, 2024, primarily due to net income of $39.5 million and $28.1 million of net proceeds on shares issued in connection with the Bank\u2019s ATM program.<\/p>\n

Net income increased by $8.4 million to $22.4 million for the quarter ended December 31, 2024, compared to net income of $14.1 million for the quarter ended December 31, 2023.<\/p>\n

1.\u00a0 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 quarter ended December 31, 2023. The increase was primarily due to the following:<\/p>\n