PORTLAND, Maine, July 27, 2026 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based bank, today reported net income of $34.3 million, or $4.05 per diluted common share, for the quarter ended June 30, 2026, compared to net income of $25.2 million, or $3.00 per diluted common share, for the quarter ended June 30, 2025. Net income for the year ended June 30, 2026 was $107.5 million, or $12.74 per diluted common share, compared to $83.4 million, or $10.08 per diluted common share, for the year ended June 30, 2025.
The Board of Directors declared a cash dividend of $0.01 per share, payable on August 24, 2026, to shareholders of record as of August 10, 2026.
"We finished the fiscal year with exceptional results, delivering record annual earnings and a third straight quarter of record loan origination volume,” said Rick Wayne, Chief Executive Officer. “Fourth-quarter net income increased 36.2% over the prior-year period to $34.3 million contributing to record annual earnings of $107.5 million. Quarterly loan volume totaled $389.8 million, which included a record $257.3 million of National Lending originated loans. The balance sheet grew 22.2% year over year to $5.23 billion, with total loans, including loans held for sale, at June 30, 2026 of $4.59 billion, representing an increase of $801.8 million, or 21.2%, over June 30, 2025. These results reflect the strength of our business model, disciplined credit culture, and ability to generate attractive shareholder returns while continuing to scale the franchise."
As of June 30, 2026, total assets were $5.23 billion, an increase of $948.7 million, or 22.2%, from total assets of $4.28 billion as of June 30, 2025, due to the following:
1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the year ended June 30, 2026:
Loans generated during the quarter ended June 30, 2026 totaled $389.8 million, which consisted of $94.4 million of National Lending purchased loans at an average price of 92.3% of unpaid principal balance, $257.3 million of National Lending originated loans, $33.5 million of Small Business Administration ("SBA") 7(a) loans, and $4.5 million of insured small balance business loans.
An overview of the Bank’s National Lending Division portfolio follows:
National Lending Portfolio Three Months Ended June 30, 2026 2025 Purchased Originated Total Purchased Originated Total (Dollars in thousands)Loans purchased or originated during the period: Unpaid principal balance$102,287 $257,297 $359,584 $44,419 $216,631 $261,050 Initial net investment basis (1) 94,446 257,297 351,743 41,680 216,631 258,311 Loan returns during the period: Yield 8.64% 7.68% 8.30% 8.52% 9.95% 8.99%Total Return on Purchased Loans (2) 9.33% N/A 9.33% 8.76% N/A 8.76% Year Ended June 30, 2026 2025 Purchased Originated Total Purchased Originated Total (Dollars in thousands)Loans purchased or originated during the period: Unpaid principal balance$856,410 $897,358 $1,753,768 $946,112 $807,923 $1,754,035 Initial net investment basis (1) 797,268 897,358 1,694,626 863,165 807,923 1,671,088 Loan returns during the period: Yield 8.59% 7.99% 8.38% 8.62% 9.27% 8.90%Total Return on Purchased Loans (2) 8.86% N/A 8.86% 8.71% N/A 8.71% Total loans as of period end: Unpaid principal balance$2,897,286 $1,586,523 $4,483,809 $2,554,266 $1,251,768 $3,806,034 Net investment basis 2,756,583 1,586,523 4,343,106 2,375,157 1,251,768 3,626,925(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. Investment securities increased by $74.9 million, or 330.0%, from June 30, 2025. The increase was driven by the purchase of $90.2 million in agency securities during the quarter ended June 30, 2026.
3. Deposits increased by $314.2 million, or 9.3%, from June 30, 2025. The increase was primarily attributable to an increase in time deposits of $275.5 million, or 12.3%. The significant drivers in the change in time deposits were an increase in brokered time deposits, which increased by $155.4 million, combined with an increase in Community Banking Division time deposits of $142.0 million.
4. Federal Home Loan Bank (“FHLB”) advances increased by $520.3 million, or 162.5%, from June 30, 2025. The increase was attributable to advances taken to fund loan growth.
5. Shareholders’ equity increased by $109.6 million, or 22.2%, from June 30, 2025, primarily due to net income of $107.5 million for the fiscal year ended June 30, 2026 and stock-based compensation of $7.9 million, partially offset by the cancellation of restricted stock to cover tax obligations on restricted stock vests, which resulted in a $5.3 million decrease in shareholders' equity.
Net income increased by $9.1 million to $34.3 million for the quarter ended June 30, 2026, compared to net income of $25.2 million for the quarter ended June 30, 2025, due to the following:
1. Net interest and dividend income before provision for credit losses increased by $6.4 million to $60.3 million for the quarter ended June 30, 2026, compared to $53.9 million for the quarter ended June 30, 2025. The increase was primarily due to the following:
- An increase in interest income earned on loans of $10.6 million, primarily due to higher transactional income and higher average balances in the National Lending Division and Small Business Division portfolios, offset by lower yields across the portfolio; partially offset by,
- An increase in interest expense on FHLB advances of $3.7 million, due to higher average balances; and
- A decrease in other interest and dividend income of $1.0 million due to lower interest rates earned.
- Interest expense on deposits for the quarter ended June 30, 2026 was $32.1 million, which was up slightly from the quarter ended June 30, 2025, as growth in deposit balances were offset by lower cost of deposits.
The following table summarizes interest income and related yields recognized on the loan portfolios:
Interest Income and Yield on Loans Three Months Ended June 30, 2026 2025 AverageBalance (1) Interest
Income Yield Average
Balance (1) Interest
Income Yield (Dollars in thousands)Community Banking$14,371 $228 6.36% $19,378 $321 6.64%Small Business 237,832 5,742 9.68% 147,628 3,621 9.84%National Lending: Originated 1,548,756 29,671 7.68% 1,176,989 29,183 9.95%Purchased 2,763,177 59,569 8.65% 2,422,781 51,476 8.52%Total National Lending 4,311,933 89,240 8.30% 3,599,770 80,659 8.99%Total$4,564,136 $95,210 8.37% $3,766,776 $84,601 9.01% Year Ended June 30, 2026 2025 Average
Balance (1) Interest
Income Yield Average
Balance (1) Interest
Income Yield (Dollars in thousands)Community Banking$16,031 $1,129 7.04% $20,843 $1,409 6.76%Small Business 191,467 18,705 9.77% 103,525 11,766 11.37%National Lending: Originated 1,363,914 108,954 7.99% 1,083,654 100,479 9.27%Purchased 2,577,454 221,307 8.59% 2,242,832 193,307 8.62%Total National Lending 3,941,368 330,261 8.38% 3,326,486 293,786 8.83%Total$4,148,866 $350,095 8.44% $3,450,854 $306,961 8.90%
(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 June 30, 2025, transactional income increased by $4.1 million for the quarter ended June 30, 2026, and regularly scheduled interest and accretion increased by $7.3 million, primarily due to higher average balances. The total return on purchased loans for the quarter ended June 30, 2026 was 9.3%, an increase from 8.8% for the quarter ended June 30, 2025. The following table details the total return on purchased loans:
Total Return on Purchased Loans Three Months Ended June 30, 2026 2025 Income Return (1) Income Return (1) (Dollars in thousands)Regularly scheduled interest and accretion$54,981 7.98% $47,707 7.90%Transactional income: Release of allowance for credit losses on purchased loans 4,705 0.68% 1,404 0.23%Accelerated accretion and loan fees 4,587 0.67% 3,768 0.62%Total transactional income 9,292 1.35% 5,172 0.86%Total$64,273 9.33% $52,879 8.76% Year Ended June 30, 2026 2025 Income Return (1) Income Return (1) (Dollars in thousands)Regularly scheduled interest and accretion$204,361 7.93% $183,762 8.19%Transactional income: Release of allowance for credit losses on purchased loans 6,945 0.27% 2,138 0.10%Accelerated accretion and loan fees 16,944 0.66% 9,545 0.43%Total transactional income 23,889 0.93% 11,683 0.52%Total$228,250 8.86% $195,445 8.71%(1) 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.
2. Provision for credit losses decreased by $4.1 million reflecting a credit of $679 thousand for the quarter ended June 30, 2026, compared to a provision of $3.5 million for the quarter ended June 30, 2025. The decrease was primarily due to decreases in individual reserves required at June 30, 2026 compared to increased reserves due to loan growth and increased reserves on the unguaranteed portion of the SBA portfolio at June 30, 2025.
3. Noninterest income decreased by $3.8 million for the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025, primarily due to the following:
- A decrease in gain on sale of SBA loans of $5.4 million, due to a lower sale volume of $30.0 million in SBA loans during the quarter ended June 30, 2026 as compared to $107.6 million in sale volume during the quarter ended June 30, 2025; partially offset by,
- A gain on recovery of insured credit losses of $1.6 million for the quarter ended June 30, 2026 related to anticipated recoveries of expected credit losses on the insured small balance business loans held by the Bank as of June 30, 2026.
4. Noninterest expense increased by $2.0 million for the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025, primarily due to the following:
- An increase in salaries and employee benefits expense of $1.1 million, primarily due to an increase in regular and stock compensation expense;
- An increase in professional fees of $508 thousand, due to higher internal audit and other professional contractor fees; and
- An increase in loan expense of $203 thousand, primarily related to increased expenses in connection with the origination of SBA and insured small balance business loans.
5. Income tax expense decreased by $4.4 million to $8.1 million, or an effective tax rate of 19.1%, for the quarter ended June 30, 2026, compared to income tax expense of $12.5 million, or an effective tax rate of 33.2%, for the quarter ended June 30, 2025. The decrease in effective tax rate is primarily due to tax credits purchased during the quarter ended June 30, 2026, which reduced income tax expense by $2.8 million and reduced the effective tax rate by 6.5%, as well as favorable changes in state tax laws which reduced the blended state tax rate.
As of June 30, 2026, nonperforming assets totaled $34.8 million, or 0.7% of total assets, compared to $35.6 million, or 0.8% of total assets, as of June 30, 2025.
As of June 30, 2026, past due loans totaled $24.0 million, or 0.5% of total loans, compared to past due loans totaling $30.1 million, or 0.8% of total loans, as of June 30, 2025.
As of June 30, 2026, the Bank’s Tier 1 leverage capital ratio was 11.9%, compared to 11.6% at June 30, 2025, and the Bank's Total risk-based capital ratio was 14.7% at June 30, 2026, compared to 14.7% at June 30, 2025. The Total risk-based capital ratio decreased primarily due to the increase in risk-weighted assets from significant loan growth from purchases during the quarter ended December 31, 2025.
Investor Call Information
Rick Wayne, Chief Executive Officer, Santino Delmolino, Chief Financial Officer, and Pat Dignan, Chief Operating Officer and Chief Credit Officer, of Northeast Bank, will host a conference call to discuss fourth quarter financial results and business outlook at 10:00 a.m. Eastern Time on Monday, July 27th. 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 15 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. This presentation is also available in the Investor Relations section of the Bank's website at www.northeastbank.com. 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 headquartered in Portland, Maine and operates as both a national lender and a community bank. The Bank’s National Lending Division originates and purchases commercial real estate loans across the country. The National Lending Division specializes in complex credit structures and secondary market loan acquisitions, providing tailored financing solutions to a diverse national clientele. Complementing this Division, the Bank’s Small Business Division serves as a nationwide SBA Preferred Lender, offering government-guaranteed loans and small-balance insured financing. On a regional and national level, Northeast Bank provides a comprehensive suite of depository products and cash management and treasury services through a network of seven full-service branches in Maine alongside the Bank’s digital banking Division, ableBanking. 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 ("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 forward-looking statements as a result of, among other factors: changes in interest rates and real estate values; changes in employment levels and 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 ongoing armed conflicts, tariffs, inflation, and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credit 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, and evolving interpretations of, existing and future laws, rules, and regulations; 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 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 release or to reflect the occurrence of unanticipated events.
NBN-F
NORTHEAST BANK BALANCE SHEETS (Unaudited) (In thousands, except share and per share data) June 30, 2026 June 30, 2025 Assets Cash and due from banks$2,908 $2,908 Short-term investments 431,466 410,711 Total cash and cash equivalents 434,374 413,619 Available-for-sale debt securities, at fair value 89,961 15,308 Equity securities, at fair value 7,674 7,396 Total securities 97,635 22,704 Loans held for sale 107,204 33,768 Loans: Commercial real estate 3,330,334 2,733,794 Commercial and industrial 1,031,362 903,278 Residential real estate 122,747 119,158 Consumer 345 159 Total loans 4,484,788 3,756,389 Less: Allowance for credit losses 58,419 47,930 Loans, net 4,426,369 3,708,459 Premises and equipment, net 23,011 24,704 Real estate owned and other possessed collateral, net 9,601 560 Federal Home Loan Bank stock, at cost 36,031 15,295 Loan servicing rights, net 534 699 Bank-owned life insurance 18,788 19,329 Accrued interest receivable 19,419 16,897 Other assets 54,759 23,034 Total assets$5,227,725 $4,279,068 Liabilities and Shareholders’ Equity Deposits: Demand$180,140 $159,274 Savings and interest checking 916,915 880,016 Money market 73,640 92,716 Time 2,519,066 2,243,594 Total deposits 3,689,761 3,375,600 Federal Home Loan Bank advances 840,458 320,191 Lease liability 17,286 19,044 Other liabilities 76,367 69,947 Total liabilities 4,623,872 3,784,782 Commitments and contingencies Shareholders’ equity Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares issued and outstanding at June 30, 2026 and 2025 — — Voting common stock, $1.00 par value, 25,000,000 shares authorized; 8,555,360 and 8,525,362 shares issued and outstanding at June 30, 2026 and 2025, respectively 8,555 8,525 Non-voting common stock, $1.00 par value, 3,000,000 shares authorized; No shares issued and outstanding at June 30, 2026 and 2025 — — Additional paid-in capital 101,297 98,728 Retained earnings 494,166 387,035 Accumulated other comprehensive loss (165) (2)Total shareholders’ equity 603,853 494,286 Total liabilities and shareholders’ equity$5,227,725 $4,279,068Balance Interest
Income/
Expense (1) Average
Yield/
Rate (1) Average
Balance Interest
Income/
Expense (1) Average
Yield/
Rate (1) (Dollars in thousands)Assets: Interest-earning assets: Investment securities$74,240 $801 4.33% $27,539 $294 4.28%Loans (2) (3) 4,564,136 95,210 8.37% 3,766,776 84,601 9.01%Federal Home Loan Bank stock 31,430 422 5.39% 15,491 303 7.85%Short-term investments (4) 368,301 3,352 3.65% 396,461 4,495 4.55%Total interest-earning assets 5,038,107 99,785 7.94% 4,206,267 89,693 8.55%Cash and due from banks 2,343 1,929 Other non-interest earning assets 36,118 34,575 Total assets$5,076,568 $4,242,771 Liabilities & Shareholders' Equity: Interest-bearing liabilities: NOW accounts$692,807 $5,723 3.31% $638,767 $5,989 3.76%Money market accounts 73,717 321 1.75% 93,831 532 2.27%Savings accounts 207,837 1,131 2.18% 205,317 1,446 2.82%Time deposits 2,530,453 24,897 3.95% 2,250,181 24,055 4.29%Total interest-bearing deposits 3,504,814 32,072 3.67% 3,188,096 32,022 4.03%Federal Home Loan Bank advances 722,231 7,191 3.99% 325,228 3,524 4.35%Lease liability 17,429 206 4.74% 19,194 216 4.51%Total interest-bearing liabilities 4,244,474 39,469 3.73% 3,532,518 35,762 4.06% Non-interest bearing liabilities: Demand deposits and escrow accounts 165,356 152,599 Other liabilities 80,744 69,893 Total liabilities 4,490,574 3,755,010 Shareholders' equity 585,994 487,762 Total liabilities and shareholders' equity$5,076,568 $4,242,772 Net interest income $60,316 $53,931 Interest rate spread 4.21% 4.49%Net interest margin (5) 4.80% 5.10% Cost of funds (6) 3.59% 3.89%
(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.
Balance Interest
Income/
Expense (1) Average
Yield/
Rate (1) Average
Balance Interest
Income/
Expense (1) Average
Yield/
Rate (1) (Dollars in thousands)Assets: Interest-earning assets: Investment securities$30,078 $1,247 4.15% $39,044 $1,677 4.30%Loans (2) (3) 4,148,866 350,095 8.44% 3,450,854 306,961 8.90%Federal Home Loan Bank stock 22,430 1,310 5.84% 16,016 1,280 7.99%Short-term investments (4) 414,566 16,298 3.93% 325,747 15,622 4.80%Total interest-earning assets 4,615,940 368,950 7.99% 3,831,661 325,540 8.50%Cash and due from banks 2,070 2,147 Other non-interest earning assets 43,005 51,921 Total assets$4,661,015 $3,885,729 Liabilities & Shareholders' Equity: Interest-bearing liabilities: NOW accounts$664,795 $22,936 3.45% $587,824 $23,491 4.00%Money market accounts 78,679 1,500 1.91% 122,094 3,505 2.87%Savings accounts 208,184 5,024 2.41% 192,357 6,021 3.13%Time deposits 2,408,279 97,678 4.06% 1,960,859 88,964 4.54%Total interest-bearing deposits 3,359,937 127,138 3.78% 2,863,134 121,981 4.26%Federal Home Loan Bank advances 500,688 20,574 4.11% 349,094 15,278 4.38%Lease liability 18,102 857 4.73% 19,540 908 4.65%Total interest-bearing liabilities 3,878,727 148,569 3.83% 3,231,768 138,167 4.28% Non-interest bearing liabilities: Demand deposits and escrow accounts 162,761 151,010 Other liabilities 75,117 64,174 Total liabilities 4,116,605 3,446,952 Shareholders' equity 544,409 438,777 Total liabilities and shareholders' equity$4,661,014 $3,885,729 Net interest income $220,381 $187,373 Interest rate spread 4.16% 4.22%Net interest margin (5) 4.77% 4.82% Cost of funds (6) 3.68% 4.08%
(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.
(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) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(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) Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding.
Santino Delmolino, Chief Financial Officer
Northeast Bank, 27 Pearl Street, Portland, Maine 04101
617.960.3634
www.northeastbank.com