Northeast Bank Reports Second Quarter Results and Declares Dividend

/EIN News/ -- PORTLAND, Maine, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (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.

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.

Discussing these results, Rick Wayne, Chief Executive Officer, said, “Our 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 (“ATM”) 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%.”

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.

1.  The following table highlights the changes in the loan portfolio, including loans held for sale, for the six months ended December 31, 2024:

	Loan Portfolio Changes
	December 31, 2024 Balance			June 30, 2024 Balance					Change ($)			Change (%)
	(Dollars in thousands)
National Lending Purchased	$	2,392,417		$	1,708,551			$	683,866			40.03	%
National Lending Originated		1,109,192			981,497				127,695			13.01	%
SBA National		103,554			48,405				55,149			113.92	%
Community Banking		20,857			22,704				(1,847	)		(8.14	%)
Total	$	3,626,020		$	2,761,157			$	864,863			31.32	%

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.

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

		National Lending Portfolio
		Three Months Ended December 31,
	2024													2023
	Purchased					Originated				Total				Purchased				Originated				Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$		14,815			$	246,417			$	261,232			$	208,045			$	63,485			$	271,530
Initial net investment basis (1)			14,039				246,417				260,456				186,131				63,485				249,616
Loan returns during the period:
Yield			8.84%				9.06%				8.91%				9.19%				9.81%				9.43%
Total Return on Purchased Loans (2)			8.86%				N/A				8.86%				9.21%				N/A				9.21%
	Six Months Ended December 31,
	2024													2023
	Purchased					Originated				Total				Purchased				Originated				Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$		822,549			$	373,309			$	1,195,858			$	271,741			$	131,528			$	403,269
Initial net investment basis (1)			746,932				373,309				1,120,241				238,477				131,528				370,005
Loan returns during the period:
Yield			8.84	%			9.18%				8.95%				9.10%				9.92%				9.41%
Total Return on Purchased Loans (2)			8.85%				N/A				8.85%				9.13%				N/A				9.13%
Total loans as of period end:
Unpaid principal balance	$		2,598,354			$	1,109,192			$	3,707,546			$	1,831,183			$	910,213			$	2,741,396
Net investment basis			2,392,417				1,109,192				3,501,609				1,646,756				910,213				2,556,969

^{(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 $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.

3. Federal Home Loan Bank (“FHLB”) 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.

4. Shareholders’ 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’s ATM program.

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.

1.  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:

• An increase in interest income earned on loans of $20.2 million, primarily due to higher average balances in the National Lending Division purchased and originated and Small Business Administration (“SBA”) portfolios, partially offset by lower rates earned across the portfolio;
• An increase in interest income earned on short-term investments of $925 thousand, due to higher average balances, partially offset by lower rates earned; and
• A decrease in FHLB borrowings interest expense of $2.0 million, primarily due to lower average balances; partially offset by,
• An increase in deposit interest expense of $11.6 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 December 31,
	2024									2023
	Average			Interest						Average			Interest
	Balance (1)			Income			Yield			Balance (1)			Income			Yield
	(Dollars in thousands)
Community Banking	$	21,481		$	369		6.82	%		$	25,559		$	419		6.51	%
SBA National		93,831			2,751		11.63	%			28,331			888		12.47	%
National Lending:
Originated		1,041,301			23,769		9.06	%			939,383			23,155		9.81	%
Purchased		2,407,132			53,655		8.84	%			1,551,038			35,849		9.19	%
Total National Lending		3,448,433			77,424		8.91	%			2,490,421			59,004		9.43	%
Total	$	3,563,745		$	80,544		8.97	%		$	2,544,311		$	60,311		9.43	%
	Six Months Ended December 31,
	2024									2023
	Average			Interest						Average			Interest
	Balance (1)			Income			Yield			Balance (1)			Income			Yield
	(Dollars in thousands)
Community Banking	$	21,945		$	738		6.67	%		$	26,355		$	857		6.47	%
SBA National		76,788			5,170		13.36	%			27,294			1,674		12.20	%
National Lending:
Originated		1,019,347			47,176		9.18	%			950,006			47,375		9.92	%
Purchased		2,082,969			92,797		8.84	%			1,520,215			69,519		9.10	%
Total National Lending		3,102,316			139,973		8.95	%			2,470,221			116,894		9.41	%
Total	$	3,201,049		$	145,881		9.04	%		$	2,523,870		$	119,425		9.41	%

^{(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 December 31, 2023, transactional income increased by $541 thousand for the quarter ended December 31, 2024, and regularly scheduled interest and accretion increased by $17.3 million primarily due to the increase in average balances. The total return on purchased loans for the quarter ended December 31, 2024 was 8.9%, a decrease from 9.2% for the quarter ended December 31, 2023. The following table details the total return on purchased loans:

	Total Return on Purchased Loans
	Three Months Ended December 31,
	2024						2023
	Income			Return (1)			Income				Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	50,747		8.36	%		$	33,430			8.57		%
Transactional income:
Release of allowance for credit losses on purchased loans		97		0.02	%			46			0.02		%
Accelerated accretion and loan fees		2,908		0.48	%			2,419			0.62		%
Total transactional income		3,005		0.50	%			2,465			0.64		%
Total	$	53,752		8.86	%		$	35,895			9.21		%
	Six Months Ended December 31,
	2024						2023
	Income			Return (1)			Income					Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	87,906		8.37	%		$	64,460				8.44	%
Transactional income:
Release of allowance for credit losses on purchased loans		161		0.01	%			226				0.03	%
Accelerated accretion and loan fees		4,891		0.47	%			5,059				0.66	%
Total transactional income		5,052		0.48	%			5,285				0.69	%
Total	$	92,958		8.85	%		$	69,745				9.13	%

^{(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 $1.5 million to $1.9 million for the quarter ended December 31, 2024, compared to $436 thousand in the quarter ended December 31, 2023. The increase was primarily related to loan growth and increases in specific reserves on certain loans.

3. Noninterest income increased by $4.5 million for the quarter ended December 31, 2024, compared to the quarter ended December 31, 2023, primarily due to an increase in gain on sale of SBA loans of $5.0 million, due to the sale of $64.5 million in SBA loans during the quarter ended December 31, 2024 as compared to the sale of $11.5 million during the quarter ended December 31, 2023.

4. Noninterest expense increased by $3.4 million for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023, primarily due to the following:

• An increase in salaries and employee benefits expense of $1.4 million, primarily due to increases in regular and stock compensation expense;
• An increase in loan expense of $1.1 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; and
• An increase in FDIC insurance expense of $669 thousand, due to the growth of the Bank’s asset size and an increased assessment rate.

5. Income tax expense increased by $2.7 million to $11.0 million, or an effective tax rate of 32.9%, for the quarter ended December 31, 2024, compared to $8.3 million, or an effective tax rate of 37.1%, for the quarter ended December 31, 2023. The decrease in effective tax rate is primarily due to a write-down of the Bank’s deferred tax asset of $957 thousand in the quarter ended December 31, 2023 as a result of a change in Massachusetts income tax law.

As of December 31, 2024, nonperforming assets totaled $31.3 million, or 0.77% of total assets, compared to $28.3 million, or 0.90% of total assets, as of June 30, 2024.

As of December 31, 2024, past due loans totaled $30.5 million, or 0.85% 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 December 31, 2024, the Bank’s Tier 1 leverage capital ratio was 11.2%, compared to 12.3% at June 30, 2024, and the Total risk-based capital ratio was 13.9% at December 31, 2024, 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 six months ended December 31, 2024, 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 second quarter earnings and business outlook at 10:00 a.m. Eastern Time on Friday, February 7^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 full-service 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 Federal Deposit Insurance Corporation (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 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 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)
	December 31, 2024			June 30, 2024
Assets
Cash and due from banks	$	2,538		$	2,711
Short-term investments		362,332			239,447
Total cash and cash equivalents		364,870			242,158
Available-for-sale debt securities, at fair value		27,616			48,978
Equity securities, at fair value		7,171			7,013
Total investment securities		34,787			55,991
SBA loans held for sale		35,234			14,506
Loans:
Commercial real estate		2,703,938			2,028,280
Commercial and industrial		778,189			618,846
Residential real estate		108,427			99,234
Consumer		232			291
Total loans		3,590,786			2,746,651
Less: Allowance for credit losses		44,773			26,709
Loans, net		3,546,013			2,719,942
Premises and equipment, net		25,739			27,144
Real estate owned and other possessed collateral, net		1,200			-
Federal Home Loan Bank stock, at cost		17,798			15,751
Loan servicing rights, net		841			984
Bank-owned life insurance		19,078			18,830
Accrued interest receivable		16,939			15,163
Other assets		20,555			21,734
Total assets	$	4,083,054		$	3,132,203
Liabilities and Shareholders' Equity
Deposits:
Demand	$	159,002		$	146,727
Savings and interest checking		782,570			732,029
Money market		130,063			154,504
Time		2,079,703			1,306,203
Total deposits		3,151,338			2,339,463
Federal Home Loan Bank and other advances		407,824			345,190
Lease liability		19,461			20,252
Other liabilities		60,330			50,664
Total liabilities		3,638,953			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 December 31 and June 30, 2024		-			-
Voting common stock, $1.00 par value, 25,000,000 shares authorized;
8,492,856 and 8,127,690 shares issued and outstanding at
December 31 and June 30, 2024, respectively		8,493			8,128
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized;
No shares issued and outstanding at December 31 and June 30, 2024		-			-
Additional paid-in capital		92,292			64,762
Retained earnings		343,302			303,927
Accumulated other comprehensive income (loss)		14			(183	)
Total shareholders' equity		444,101			376,634
Total liabilities and shareholders' equity	$	4,083,054		$	3,132,203

NORTHEAST BANK
STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except share and per share data)
		Three Months Ended December 31,									Six Months Ended December 31,
		2024					2023				2024			2023
	Interest and dividend income:
	Interest and fees on loans		$	80,544			$	60,311			$	145,881		$	119,425
	Interest on available-for-sale securities			436				560				1,031			1,043
	Other interest and dividend income			4,186				3,261				8,108			6,361
	Total interest and dividend income			85,166				64,132				155,020			126,829
	Interest expense:
	Deposits			32,777				21,175				59,367			40,433
	Federal Home Loan Bank advances			3,666				5,701				7,696			11,847
	Obligation under capital lease agreements			233				256				467			425
	Total interest expense			36,676				27,132				67,530			52,705
	Net interest and dividend income before provision for credit losses			48,490				37,000				87,490			74,124
	Provision for credit losses			1,944				436				2,366			625
	Net interest and dividend income after provision for credit losses			46,546				36,564				85,124			73,499
	Noninterest income:
	Fees for other services to customers			391				492				834			899
	Gain on sales of SBA loans			5,570				570				8,901			822
	Net unrealized gain (loss) on equity securities			(163	)			230				27			72
	Loss on real estate owned, other repossessed collateral and premises and equipment, net			-				(9	)			-			(9	)
	Bank-owned life insurance income			125				116				248			231
	Correspondent fee income			23				52				54			143
	Other noninterest income			3				15				5			87
	Total noninterest income			5,949				1,466				10,069			2,245
	Noninterest expense:
	Salaries and employee benefits			11,287				9,905				22,470			19,625
	Occupancy and equipment expense			1,103				1,101				2,182			2,206
	Professional fees			562				499				1,315			1,281
	Data processing fees			1,622				1,347				3,109			2,447
	Marketing expense			94				221				230			482
	Loan acquisition and collection expense			2,063				939				3,355			1,589
	FDIC insurance expense			956				287				1,288			644
	Other noninterest expense			1,379				1,370				2,802			2,784
	Total noninterest expense			19,066				15,669				36,751			31,058
	Income before income tax expense			33,429				22,361				58,442			44,686
	Income tax expense			10,989				8,307				18,896			15,460
	Net income		$	22,440			$	14,054			$	39,546		$	29,226
	Weighted-average shares outstanding:
	Basic			8,044,345				7,505,109				7,965,486			7,492,310
	Diluted			8,197,568				7,590,913				8,153,368			7,572,450
	Earnings per common share:
	Basic		$	2.79			$	1.87			$	4.96		$	3.90
	Diluted			2.74				1.85				4.85			3.86
	Cash dividends declared per common share		$	0.01			$	0.01			$	0.02		$	0.02

NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Three Months Ended December 31,
	2024									2023
				Interest			Average						Interest				Average
	Average			Income/			Yield/			Average			Income/				Yield/
	Balance			Expense			Rate			Balance			Expense				Rate
Assets:
Interest-earning assets:
Investment securities	$	40,004		$	436		4.32	%		$	59,797		$	560			3.73	%
Loans (1) (2) (3)		3,563,745			80,544		8.97	%			2,544,311			60,311			9.43	%
Federal Home Loan Bank stock		15,458			346		8.88	%			21,222			468			8.77	%
Short-term investments (4)		325,118			3,840		4.69	%			206,090			2,793			5.39	%
Total interest-earning assets		3,944,325			85,166		8.57	%			2,831,420			64,132			9.01	%
Cash and due from banks		2,216									2,508
Other non-interest earning assets		30,982									69,245
Total assets	$	3,977,523								$	2,903,173
Liabilities & Shareholders' Equity:
Interest-bearing liabilities:
NOW accounts	$	581,969		$	5,932		4.04	%		$	511,217		$	5,636			4.39	%
Money market accounts		128,787			953		2.94	%			229,154			2,009			3.49	%
Savings accounts		187,701			1,653		3.49	%			122,643			917			2.97	%
Time deposits		2,080,911			24,239		4.62	%			1,022,767			12,613			4.91	%
Total interest-bearing deposits		2,979,368			32,777		4.36	%			1,885,781			21,175			4.47	%
Federal Home Loan Bank advances		336,762			3,666		4.32	%			481,824			5,701			4.71	%
Lease liability		19,599			233		4.72	%			21,361			256			4.77	%
Total interest-bearing liabilities		3,335,729			36,676		4.36	%			2,388,966			27,132			4.52	%
Non-interest bearing liabilities:
Demand deposits and escrow accounts		190,135									167,358
Other liabilities		30,501									24,616
Total liabilities		3,556,365									2,580,940
Shareholders' equity		421,158									322,233
Total liabilities and shareholders' equity	$	3,977,523								$	2,903,173
Net interest income				$	48,490								$	37,000
Interest rate spread							4.21	%									4.49	%
Net interest margin (5)							4.88	%									5.20	%
Cost of funds (6)							4.13	%									4.22	%
(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)
	Six Months Ended December 31,
	2024									2023
				Interest			Average						Interest				Average
	Average			Income/			Yield/			Average			Income/				Yield/
	Balance			Expense			Rate			Balance			Expense				Rate
Assets:
Interest-earning assets:
Investment securities	$	47,708		$	1,031		4.29	%		$	59,986		$	1,043			3.46	%
Loans (1) (2) (3)		3,201,049			145,881		9.04	%			2,523,870			119,425			9.41	%
Federal Home Loan Bank stock		15,961			676		8.40	%			21,790			881			8.04	%
Short-term investments (4)		285,330			7,432		5.17	%			203,946			5,480			5.34	%
Total interest-earning assets		3,550,048			155,020		8.66	%			2,809,592			126,829			8.98	%
Cash and due from banks		2,164									2,500
Other non-interest earning assets		62,527									62,753
Total assets	$	3,614,739								$	2,874,845
Liabilities & Shareholders' Equity:
Interest-bearing liabilities:
NOW accounts	$	572,849		$	12,312		4.26	%		$	499,331		$	10,781			4.29	%
Money market accounts		138,738			2,219		3.17	%			243,725			4,142			3.38	%
Savings accounts		183,141			3,210		3.48	%			106,820			1,477			2.75	%
Time deposits		1,735,372			41,626		4.76	%			999,993			24,033			4.78	%
Total interest-bearing deposits		2,630,100			59,367		4.48	%			1,849,869			40,433			4.35	%
Federal Home Loan Bank advances		349,678			7,696		4.37	%			496,169			11,847			4.75	%
Lease liability		19,808			467		4.68	%			21,568			425			3.92	%
Total interest-bearing liabilities		2,999,586			67,530		4.47	%			2,367,606			52,705			4.43	%
Non-interest bearing liabilities:
Demand deposits and escrow accounts		182,648									168,348
Other liabilities		28,337									24,842
Total liabilities		3,210,571									2,560,796
Shareholders' equity		404,168									314,049
Total liabilities and shareholders' equity	$	3,614,739								$	2,874,845
Net interest income				$	87,490								$	74,124
Interest rate spread							4.19	%									4.55	%
Net interest margin (5)							4.89	%									5.25	%
Cost of funds (6)							4.21	%									4.04	%
(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
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023
Net interest income	$	48,490			$	39,000			$	37,935			$	36,512			$	37,000
Provision for credit losses		1,944				422				547				596				436
Noninterest income		5,949				4,119				2,092				1,542				1,466
Noninterest expense		19,066				17,685				17,079				16,429				15,669
Net income		22,440				17,106				15,140				13,865				14,054
Weighted-average common shares outstanding:
Basic		8,044,345				7,886,148				7,765,868				7,509,320				7,505,109
Diluted		8,197,568				8,108,688				7,910,692				7,595,124				7,590,913
Earnings per common share:
Basic	$	2.79			$	2.17			$	1.95			$	1.85			$	1.87
Diluted		2.74				2.11				1.91				1.83				1.85
Dividends declared per common share	$	0.01			$	0.01			$	0.01			$	0.01			$	0.01
Return on average assets		2.24%				2.09%				1.99%				1.87%				1.93%
Return on average equity		21.14%				17.53%				16.56%				16.45%				17.35%
Net interest rate spread (1)		4.21%				4.18%				4.41%				4.27%				4.49%
Net interest margin (2)		4.88%				4.90%				5.13%				5.01%				5.20%
Efficiency ratio (non-GAAP) (3)		35.02%				41.01%				42.67%				43.17%				40.73%
Noninterest expense to average total assets		1.90%				2.16%				2.24%				2.21%				2.15%
Average interest-earning assets to average interest-bearing liabilities		118.24%				118.48%				118.78%				119.28%				118.52%
	As of:
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023
Nonperforming loans:
Originated portfolio:
Residential real estate	$	2,446			$	3,976			$	2,502			$	2,573			$	2,582
Commercial real estate		3,662				4,682				1,407				2,075				2,075
Commercial and industrial		6,696				6,684				6,520				6,928				6,950
Consumer		5				-				-				-				-
Total originated portfolio		12,809				15,342				10,429				11,576				11,607
Total purchased portfolio		17,257				21,830				17,832				16,370				19,165
Total nonperforming loans		30,066				37,172				28,261				27,946				30,772
Real estate owned and other repossessed collateral, net		1,200				-				-				-				-
Total nonperforming assets	$	31,266			$	37,172			$	28,261			$	27,946			$	30,772
Past due loans to total loans		0.85%				0.89%				0.95%				1.13%				1.22%
Nonperforming loans to total loans		0.84%				1.06%				1.02%				1.05%				1.18%
Nonperforming assets to total assets		0.77%				0.94%				0.90%				0.93%				1.04%
Allowance for credit losses to total loans		1.25%				1.25%				0.97%				0.98%				1.06%
Allowance for credit losses to nonperforming loans		148.92%				117.40%				94.51%				92.83%				89.67%
Net charge-offs (recoveries)	$	869			$	1,604			$	1,347			$	2,225			$	995
Commercial real estate loans to total capital (4)		542.12%				604.38%				482.13%				509.08%				544.34%
Net loans to deposits		112.52%				110.70%				116.88%				118.15%				121.31%
Purchased loans to total loans		66.63%				69.11%				61.88%				60.99%				63.07%
Equity to total assets		10.88%				9.96%				12.02%				11.73%				11.03%
Common equity tier 1 capital ratio		12.66%				11.45%				13.84%				13.24%				12.63%
Total risk-based capital ratio		13.91%				12.70%				14.82%				14.22%				13.71%
Tier 1 leverage capital ratio		11.16%				12.06%				12.30%				11.79%				11.28%
Total shareholders’ equity	$	444,101			$	392,557			$	376,634			$	351,913			$	327,540
Less: Preferred stock		-				-				-				-				-
Common shareholders’ equity		444,101				392,557				376,634				351,913				327,540
Less: Intangible assets (5)		-				-				-				-				-
Tangible common shareholders' equity (non-GAAP)	$	444,101			$	392,557			$	376,634			$	351,913			$	327,540
Common shares outstanding		8,492,856				8,212,026				8,127,690				7,977,690				7,804,052
Book value per common share	$	52.29			$	47.80			$	46.34			$	44.11			$	41.97
Tangible book value per share (non-GAAP) (6)		52.29				47.80				46.34				44.11				41.97
(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