Northeast Bancorp (NASDAQ:NBN) Releases Quarterly Earnings Results, Beats Estimates By $0.65 EPS

Northeast Bancorp (NASDAQ:NBN) announced its quarterly earnings results on Monday. The financial services provider reported $4.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.40 by $0.65, Zacks reports. Northeast Bancorp had a net margin of 25.96% and a return on equity of 18.63%. The company had revenue of $65.24 million for the quarter, compared to analysts’ expectations of $67.21 million.

Here are the key takeaways from Northeast Bancorp’s conference call:

• Record profitability and balance-sheet growth: Fiscal 2026 net income rose 29% to $107.5 million, while diluted EPS reached $12.74 and tangible book value per share increased 22% to $70.58. Total loans, including loans held for sale, grew 21% year over year to $4.59 billion.
• National lending momentum remains strong: Quarterly originations reached a third consecutive record of $257 million, contributing to approximately 27% year-over-year growth in the originated portfolio. Management said the pipeline remains active and expects continued growth without compromising credit quality.
• Credit metrics improved: Non-performing assets declined to 67 basis points from 78 basis points, past-due loans fell to 54 basis points from 64 basis points, and several individually reserved purchased loans were resolved without significant charge-offs.
• Margins remain elevated but may stabilize: Net interest margin was 4.8%, supported by strong purchased-loan returns, though it declined from 5.15% in the prior quarter. Management expects underlying margins to remain relatively steady, with limited additional funding-cost relief and some brokered-CD repricing pressure.
• Insured small-business lending faces execution challenges: The bank slowed originations after failing to secure attractive sale pricing and increased insurance protection to 25% while retaining more loans on balance sheet. Management said the product could generate substantial volume if sales become economical, but acknowledged it does not want to hold hundreds of millions of dollars of these assets.

Northeast Bancorp Stock Up 3.0%

Shares of NASDAQ:NBN opened at $133.11 on Tuesday. The company has a current ratio of 1.13, a quick ratio of 1.10 and a debt-to-equity ratio of 0.03. The stock has a fifty day simple moving average of $127.93 and a two-hundred day simple moving average of $120.48. Northeast Bancorp has a 12-month low of $80.75 and a 12-month high of $142.31. The stock has a market capitalization of $1.09 billion, a price-to-earnings ratio of 11.41 and a beta of 0.58.

Northeast Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 24th. Shareholders of record on Monday, August 10th will be paid a dividend of $0.01 per share. The ex-dividend date is Monday, August 10th. This represents a $0.04 dividend on an annualized basis and a yield of 0.0%. Northeast Bancorp’s payout ratio is presently 0.34%.

Key Headlines Impacting Northeast Bancorp

Here are the key news stories impacting Northeast Bancorp this week:

• Positive Sentiment: Fiscal fourth-quarter net income rose to $34.3 million, or $4.05 per diluted share, from $25.2 million, or $3.00 per share, a year earlier. EPS exceeded the $3.40 analyst consensus by $0.65. Full-year net income reached a record $107.5 million, or $12.74 per share. Northeast Bank Reports Fourth Quarter Results and Declares Dividend
• Positive Sentiment: Management highlighted robust loan growth and approximately $1.5 billion in additional loan capacity, supporting expectations for continued expansion. The bank also indicated a fiscal 2027 effective tax rate of approximately 28%-29%. Northeast Bank signals FY 2027 tax rate and loan capacity
• Positive Sentiment: Commentary emphasized strong operating efficiency, with an industry-leading efficiency ratio of 35.98%, while nonperforming assets remained low at 0.67%. Return on equity was reported at 18.63%, reinforcing the bank’s profitability and asset-quality profile. Northeast Bank Q4 earnings call highlights
• Neutral Sentiment: Northeast Bancorp declared a quarterly dividend of $0.01 per share, payable August 24 to shareholders of record August 10. The payment provides limited direct income support, given its negligible yield. Dividend announcement
• Negative Sentiment: Quarterly revenue of $65.24 million fell short of the $67.21 million consensus estimate. Analysts also cautioned that NBN trades at a historically high premium to tangible book value, leaving the stock priced for strong execution and making it vulnerable if growth or credit performance disappoints. Northeast Bank valuation analysis

Wall Street Analyst Weigh In

A number of research analysts have weighed in on NBN shares. Weiss Ratings reiterated a “buy (b)” rating on shares of Northeast Bancorp in a report on Monday, May 4th. Keefe, Bruyette & Woods raised their target price on Northeast Bancorp from $120.00 to $128.00 and gave the company a “market perform” rating in a research note on Wednesday, April 29th. Finally, Wall Street Zen lowered Northeast Bancorp from a “buy” rating to a “hold” rating in a research report on Sunday, May 24th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, Northeast Bancorp presently has a consensus rating of “Moderate Buy” and an average price target of $130.50.

Hedge Funds Weigh In On Northeast Bancorp

Institutional investors and hedge funds have recently modified their holdings of the stock. Hotchkis & Wiley Capital Management LLC raised its position in shares of Northeast Bancorp by 237.8% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 125,851 shares of the financial services provider’s stock worth $12,605,000 after purchasing an additional 88,592 shares during the last quarter. Ameriprise Financial Inc. grew its position in Northeast Bancorp by 247.9% during the 3rd quarter. Ameriprise Financial Inc. now owns 25,590 shares of the financial services provider’s stock valued at $2,563,000 after purchasing an additional 18,235 shares during the last quarter. Bank of America Corp DE increased its stake in Northeast Bancorp by 128.7% during the 3rd quarter. Bank of America Corp DE now owns 30,807 shares of the financial services provider’s stock valued at $3,086,000 after purchasing an additional 17,339 shares in the last quarter. Boothbay Fund Management LLC purchased a new position in Northeast Bancorp in the second quarter worth about $1,411,000. Finally, Invesco Ltd. raised its holdings in Northeast Bancorp by 22.2% in the third quarter. Invesco Ltd. now owns 77,833 shares of the financial services provider’s stock worth $7,796,000 after buying an additional 14,127 shares during the last quarter.

Northeast Bancorp Company Profile

Northeast Bancorp is a Maine-based bank holding company and the parent of Northeast Bank, a state‐chartered commercial bank headquartered in Lewiston, Maine. Through its subsidiary, the company provides a variety of financial services, including personal checking and savings accounts, residential mortgage lending, small business and commercial loans, treasury management and private banking services. The bank operates a branch network spanning central and southern Maine, serving individuals, families and local businesses across the region.

Founded in 1872 as Androscoggin County Savings Bank, the institution has evolved through mutual and stock conversions, adopting the Northeast Bank name in 2001 and forming Northeast Bancorp as its mutual holding company in 2013.