Download PDF

1. Company Snapshot

1.a. Company Description

Northeast Bank provides banking services to individual and corporate customers in Maine.The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts.Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans.


In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services.It operates a network of nine branches in Western, Central, and Southern Maine.Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.

Show Full description

1.b. Last Insights on NBN

Northeast Bancorp's recent performance was positively driven by a significant increase in loan purchase volume, with approximately $525 million in commercial real estate loans purchased or agreed upon since September 30, 2025. The company's Q1 2026 earnings call highlighted net income of $22.5 million, or $2.67 per diluted common share, exceeding prior year's $17.1 million. Institutional investors, including American Century Companies Inc. and Geode Capital Management LLC, have also shown confidence by increasing their stakes. A dividend declaration further underscores the company's stability.

1.c. Company Highlights

2. Northeast Bank's Earnings Shine with Strong Loan Growth

Northeast Bank reported a net income of $20.7 million, or $2.47 per diluted share, surpassing estimates of $2.38. The return on average assets stood at 1.87%, while the return on average equity was 15.6%. Total assets reached $4.95 billion, with loans ending the quarter at $4.4 billion, up from $3.7 billion as of September 30. The net interest margin was 4.49%, down from 4.59% in the linked quarter, resulting in net interest income of $48.8 million. The decrease in NIM is largely attributed to the lag in timing of liabilities repricing, with approximately $1.25 billion in CDs maturing over the next 6 months at a weighted average rate of 4.05%.

Publication Date: Feb -15

📋 Highlights
  • Net Income & EPS:: $20.7 million net income, $2.47 per diluted share, with ROAA of 1.87% and ROAE of 15.6%.
  • Total Assets & Loans:: Assets hit $4.95 billion; loans rose to $4.4 billion (+$700 million QoQ) driven by $533 million in loan purchases and $252 million in originations.
  • Net Interest Margin (NIM):: Declined to 4.49% from 4.59% due to $1.25 billion in CDs maturing at 4.05% over next 6 months.
  • Capital Position:: Tier 1 leverage ratio at 12.2%, tangible book value of $62.65/share, and $1 billion in loan capacity as of December 31.
  • SBA & Insured Loans:: Originated $40 million in SBA 7(a) loans (gain on sale $2.1 million) and $70 million in small balance insured loans with 10.8% yield to maturity.

Loan Growth and Asset Quality

The bank witnessed significant loan growth, driven by purchases of $533 million and originations of $252 million in the National Lending division. Asset quality remains strong, with delinquencies, nonaccruals, and classified loans staying relatively flat quarter-over-quarter. The allowance for credit losses increased to $63.8 million, or a coverage ratio of 1.47% at December 31. The bank's loan pipeline is full, with several large transactions anticipated in the market, indicating continued loan growth.

Business Segments and Capital Position

The bank originated $40 million SBA 7(a) loans and sold $25 million for a gain on sale of $2.1 million. They also originated $70 million of small balance insured loans during the quarter. The bank's capital position remains robust, with a Tier 1 leverage ratio of 12.2% and tangible book value of $62.65 a share, providing just under $1 billion of loan capacity as of December 31.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) of 1.87, the stock appears reasonably valued. Analysts estimate revenue growth at 18.7% next year. Given the bank's strong capital position, continued loan growth, and increasing SBA loan originations, the outlook is positive. The bank expects SBA gain on sale income to increase, projecting around $50-60 million per quarter. The current run rate for insured small business products is believed to be sustainable, supporting future growth.

3. NewsRoom

Card image cap

Reviewing Northeast Bancorp (NASDAQ:NBN) & Timberland Bancorp (NASDAQ:TSBK)

Feb -18

Source: defenseworld.net

Card image cap

Critical Survey: Southern Banc (OTCMKTS:SRNN) and Northeast Bancorp (NASDAQ:NBN)

Feb -17

Source: defenseworld.net

Card image cap

Northeast Bancorp Q2 Earnings Call Highlights

Jan -28

Source: defenseworld.net

Card image cap

Northeast Bank (NBN) Q2 2026 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

Card image cap

Northeast Bank Reports Second Quarter Results and Declares Dividend

Jan -26

Source: globenewswire.com

Card image cap

Northeast Bank's Surge Doesn't Necessitate A Downgrade

Jan -23

Source: seekingalpha.com

Card image cap

Northeast Bank Announces Dates for Fiscal 2026 Second Quarter Earnings Results and Conference Call

Jan -22

Source: globenewswire.com

Card image cap

Landmark Bancorp (NASDAQ:LARK) & Northeast Bancorp (NASDAQ:NBN) Head to Head Contrast

Dec -28

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.93%)

6. Segments

Banking and Related Activities

Expected Growth: 5.93%

Northeast Bank's 5.93% growth in Banking and Related Activities is driven by increasing demand for commercial loans, strategic expansion into new markets, and improved operational efficiency. Additionally, the bank's focus on digital transformation and customer-centric approach have contributed to the growth. Furthermore, a favorable interest rate environment and a strong risk management framework have also supported the bank's growth momentum.

7. Detailed Products

Personal Checking

A checking account designed for individuals, offering convenient banking services and online access.

Business Checking

A checking account designed for businesses, offering cash management tools and online banking services.

Mortgage Loans

A range of mortgage loan options for homebuyers and homeowners, including fixed-rate and adjustable-rate loans.

Home Equity Loans

A loan that allows homeowners to borrow against the equity in their home, with fixed or variable rates.

Credit Cards

A range of credit card options with rewards, cashback, and low interest rates.

Online Banking

A secure online platform for managing accounts, paying bills, and transferring funds.

Mobile Banking

A mobile app for banking on-the-go, with deposit, transfer, and payment capabilities.

Commercial Loans

A range of loan options for businesses, including term loans, lines of credit, and construction loans.

Treasury Management

A suite of cash management services for businesses, including account reconciliation and wire transfers.

8. Northeast Bank's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Northeast Bank is moderate due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is high due to the ease of switching banks and the availability of online comparison tools.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the bank's strong relationships with its suppliers and the lack of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the regulatory barriers to entry and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the banking industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.33%
Debt Cost 9.73%
Equity Weight 33.67%
Equity Cost 9.73%
WACC 9.73%
Leverage 197.04%

11. Quality Control: Northeast Bank passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SB Financial Group

A-Score: 5.9/10

Value: 8.1

Growth: 3.9

Quality: 7.1

Yield: 6.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
NBT Bancorp

A-Score: 5.8/10

Value: 6.2

Growth: 5.0

Quality: 7.6

Yield: 6.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Lake Shore Bancorp

A-Score: 5.8/10

Value: 5.3

Growth: 4.1

Quality: 7.0

Yield: 5.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Sound Financial Bancorp

A-Score: 5.4/10

Value: 6.0

Growth: 3.9

Quality: 6.9

Yield: 4.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Northeast Bank

A-Score: 5.2/10

Value: 6.2

Growth: 8.8

Quality: 7.4

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
First Bancshares

A-Score: 5.1/10

Value: 4.9

Growth: 4.8

Quality: 6.9

Yield: 3.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

116.62$

Current Price

116.62$

Potential

-0.00%

Expected Cash-Flows