Northeast Bank Reports Fourth Quarter Results and Declares Dividend

PORTLAND, Maine, July 28, 2025 (GLOBE NEWSWIRE) -- Northeast Bank (the "Bank") (NASDAQ:NBN), a Maine-based bank, today reported net income of $25.2 million, or $3.00 per diluted common share, for the quarter ended June 30, 2025, compared to net income of $15.1 million, or $1.91 per diluted common share, for the quarter ended June 30, 2024. Net income for the year ended June 30, 2025 was $83.4 million, or $10.08 per diluted common share, compared to $58.2 million, or $7.58 per diluted common share, for the year ended June 30, 2024.

The Board of Directors declared a cash dividend of $0.01 per share, payable on October 9, 2025, to shareholders of record as of September 25, 2025.

"I am pleased to report a very strong quarter," said Rick Wayne, Chief Executive Officer. "Excluding a single quarter in which we had substantial gains from the sale of PPP loans, the June 30, 2025 quarter generated record earnings primarily attributable to record net interest income.  We are reporting earnings of $3.00 per diluted common share, a return on average equity of 20.7%, and a return on average assets of 2.4%. Lending activity remained strong with total quarterly originations and purchases of $365.6 million. Originations and purchases for the year ending June 30, 2025 was $2.08 billion.  At June 30, 2025, the loan portfolio, including loans held for sale, totaled $3.79 billion, representing an increase of $1.03 billion, or 37.3%, over June 30, 2024."

As of June 30, 2025, total assets were $4.28 billion, an increase of $1.15 billion, or 36.6%, 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 year ended June 30, 2025:

	Loan Portfolio Changes
	June 30, 2025			June 30, 2024			Change ($)				Change (%)
	(Dollars in thousands)
National Lending Purchased	$	2,375,157		$	1,708,551		$	666,606			39.02	%
National Lending Originated		1,251,768			981,497			270,271			27.54	%
SBA National		144,974			48,405			96,569			199.50	%
Community Banking		18,258			22,704			(4,446	)		(19.58	%)
Total	$	3,790,157		$	2,761,157		$	1,029,000			37.27	%

Loans generated by the Bank's National Lending Division for the quarter ended June 30, 2025 totaled $258.3 million, which consisted of $41.7 million of purchased loans at an average price of 93.8% of unpaid principal balance, and $216.6 million of originated loans. Loans generated by the Bank's SBA Division for the quarter ended June 30, 2025 totaled $107.3 million.

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

	National Lending Portfolio
	Three Months Ended June 30,
		2025												2024
	Purchased				Originated				Total				Purchased					Originated				Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	44,419			$	216,631			$	261,050			$	160,627				$	114,272			$	274,899
Initial net investment basis (1)		41,680				216,631				258,311				143,571					114,272				257,843
Loan returns during the period:
Yield		8.52	%			9.95	%			8.99	%				9.18	%			9.68	%			9.37	%
Total Return on Purchased Loans (2)		8.76	%			N/A				8.76	%			9.47		%			N/A				9.47	%
	Year Ended June 30,
		2025												2024
	Purchased				Originated				Total				Purchased					Originated				Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	946,112			$	807,923			$	1,754,035			$	432,367				$	399,149			$	831,516
Initial net investment basis (1)		863,165				807,923				1,671,088				382,047					399,149				781,196
Loan returns during the period:
Yield		8.62	%			9.27	%			8.90	%			9.01		%			9.90	%			9.34	%
Total Return on Purchased Loans (2)		8.71	%			N/A				8.71	%			9.11		%			N/A				9.11	%
Total loans as of period end:
Unpaid principal balance	$	2,554,266			$	1,251,768			$	3,806,034			$	1,886,383				$	981,497			$	2,867,880
Net investment basis		2,375,157				1,251,768				3,626,925				1,708,551					981,497				2,690,048
(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."

1. 
   
   

2.   Deposits increased by $1.04 billion, or 44.3%, from June 30, 2024. The increase was primarily attributable to increases in time deposits of $937.4 million, or a 71.8% increase compared with the prior year. The significant drivers in the change in time deposits were the increase in brokered time deposits, which increased by $752.7 million, and Community Banking Division time deposits, which increased by $156.2 million compared to June 30, 2024.

3.   Federal Home Loan Bank ("FHLB") advances decreased by $25.0 million, or 7.2%, from June 30, 2024. The decrease was attributable to maturities on outstanding advances and net paydowns on amortizing advances.

4.   Shareholders' equity increased by $117.7 million, or 31.2%, from June 30, 2024, primarily due to net income of $83.4 million and $31.3 million of net proceeds on shares issued in connection with the Bank's at-the-market ("ATM") offering.

Net income increased by $6.5 million to $25.2 million for the quarter ended June 30, 2025, compared to net income of $18.7 million for the quarter ended March 31, 2025.

1.   Net interest and dividend income before provision for credit losses increased by $8.0 million to $53.9 million for the quarter ended June 30, 2025, compared to $46.0 million for the quarter ended March 31, 2025. The increase was primarily due to the following:

• An increase in interest income earned on loans of $8.1 million, primarily due to the resolution of a significant nonaccrual National Lending Division originated loan and higher transactional income in the National Lending Division purchased portfolio; and
• An increase in interest income earned on short-term investments of $0.8 million, due to higher average balances, partially offset by lower rates earned; partially offset by,
• An increase in deposit interest expense of $1.4 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 June 30,
		2025									2024
	Average Balance (1)			Interest Income			Yield			Average Balance (1)			Interest Income			Yield
	(Dollars in thousands)
Community Banking	$	19,378		$	321		6.64	%		$	23,511		$	381		6.52	%
SBA National		147,628			3,621		9.84	%			40,004			1,437		14.45	%
National Lending:
Originated		1,176,989			29,183		9.95	%			963,946			23,204		9.68	%
Purchased		2,422,781			51,476		8.52	%			1,645,647			37,562		9.18	%
Total National Lending		3,599,770			80,659		8.99	%			2,609,593			60,766		9.37	%
Total	$	3,766,776		$	84,601		9.01	%		$	2,673,108		$	62,584		9.42	%
	Year Ended June 30,
		2025									2024
	Average Balance (1)			Interest Income			Yield			Average Balance (1)			Interest Income			Yield
	(Dollars in thousands)
Community Banking	$	20,843		$	1,409		6.76	%		$	25,267		$	1,622		6.42	%
SBA National		103,525			11,766		11.37	%			32,581			4,270		13.11	%
National Lending:
Originated		1,083,654			100,479		9.27	%			954,316			94,488		9.90	%
Purchased		2,242,832			193,307		8.62	%			1,580,485			142,342		9.01	%
Total National Lending		3,326,486			293,786		8.83	%			2,534,801			236,830		9.34	%
Total	$	3,450,854		$	306,961		8.90	%		$	2,592,649		$	242,722		9.36	%
(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, 2024, transactional income increased by $0.9 million for the quarter ended June 30, 2025, and regularly scheduled interest and accretion increased by $13.2 million primarily due to the increase in average balances. The total return on purchased loans for the quarter ended June 30, 2025 was 8.8%, a decrease from 9.5% for the quarter ended June 30, 2024. The following table details the total return on purchased loans:

	Total Return on Purchased Loans
	Three Months Ended June 30,
		2025						2024
	Income			Return (1)			Income			Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	47,707		7.90	%		$	34,504		8.43	%
Transactional income:
Release of allowance for credit losses on purchased loans		1,404		0.23	%			1,202		0.29	%
Accelerated accretion and loan fees		3,768		0.62	%			3,058		0.75	%
Total transactional income		5,172		0.86	%			4,260		1.04	%
Total	$	52,879		8.76	%		$	38,764		9.47	%
	Year Ended June 30,
		2025						2024
	Income			Return (1)			Income			Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	183,762		8.19	%		$	133,009		8.42	%
Transactional income:
Release of allowance for credit losses on purchased loans		2,138		0.10	%			1,558		0.10	%
Accelerated accretion and loan fees		9,545		0.43	%			9,333		0.59	%
Total transactional income		11,683		0.52	%			10,891		0.69	%
Total	$	195,445		8.71	%		$	143,900		9.11	%
(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 $2.9 million to $3.5 million for the quarter ended June 30, 2025, compared to $547 thousand in the quarter ended June 30, 2024. The increase was primarily related to loan growth and increased reserves on the unguaranteed portion of the SBA portfolio.

3.   Noninterest income increased by $6.7 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024, primarily due to an increase in gain on sale of SBA loans of $6.8 million, due to the sale of $107.6 million in SBA loans during the quarter ended June 30, 2025 as compared to the sale of $26.8 million during the quarter ended June 30, 2024.

4.   Noninterest expense increased by $4.4 million for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024, primarily due to the following:

• An increase in salaries and employee benefits expense of $1.8 million, primarily due to increases in regular stock and incentive compensation expense;
  
  
• An increase in loan expense of $2.1 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; and
  
  
• An increase in Federal Deposit Insurance Corporation ("FDIC") insurance expense of $266 thousand, due to the growth of the Bank's asset size and an increased assessment rate.

5.   Income tax expense increased by $5.3 million to $12.5 million, or an effective tax rate of 33.2%, for the quarter ended June 30, 2025, compared to $7.3 million, or an effective tax rate of 32.4%, for the quarter ended June 30, 2024. The increase in effective tax rate is primarily due to changes in income apportionment for state taxes.

As of June 30, 2025, nonperforming assets totaled $35.6 million, or 0.8% of total assets, compared to $28.3 million, or 0.9% of total assets, as of June 30, 2024.

As of June 30, 2025, past due loans totaled $30.1 million, or 0.8% of total loans, compared to past due loans totaling $26.3 million, or 1.0% of total loans, as of June 30, 2024.

As of June 30, 2025, the Bank's Tier 1 leverage capital ratio was 11.6%, compared to 12.3% at June 30, 2024, and the Total risk-based capital ratio was 14.7% at June 30, 2025, 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 year ended June 30, 2025, partially offset by increased retained earnings and additional capital raised under the Bank's ATM offering.

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 fourth quarter earnings and business outlook at 1:00 p.m. Eastern Time on Tuesday, July 29^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 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 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 the impact of actual or threatened tariffs imposed by the U.S. and foreign governments, 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 for the year ended June 30, 2024 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
(Dollars in thousands, except share and per share data)
		June 30, 2025						June 30, 2024
		(unaudited)						(audited)
Assets
Cash and due from banks		$	2,908					$	2,711
Short-term investments			410,711						239,447
Total cash and cash equivalents			413,619						242,158
Available-for-sale debt securities, at fair value			15,308						48,978
Equity securities, at fair value			7,396						7,013
Total securities			22,704						55,991
SBA loans held for sale			33,768						14,506
Loans:
Commercial real estate			2,733,794						2,028,280
Commercial and industrial			903,278						618,846
Residential real estate			119,158						99,234
Consumer			159						291
Total loans			3,756,389						2,746,651
Less: Allowance for credit losses			47,930						26,709
Loans, net			3,708,459						2,719,942
Premises and equipment, net			24,704						27,144
Real estate owned and other possessed collateral, net			560						-
Federal Home Loan Bank stock, at cost			15,295						15,751
Loan servicing rights, net			699						984
Bank-owned life insurance			19,329						18,830
Accrued interest receivable			16,897						15,163
Other assets			23,034						21,734
Total assets		$	4,279,068					$	3,132,203
Liabilities and Shareholders' Equity
Deposits:
Demand		$	159,274					$	146,727
Savings and interest checking			880,016						732,029
Money market			92,716						154,504
Time			2,243,594						1,306,203
Total deposits			3,375,600						2,339,463
Federal Home Loan Bank advances			320,191						345,190
Lease liability			19,044						20,252
Other liabilities			69,947						50,664
Total liabilities			3,784,782						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 June 30, 2025 and 2024			-						-
Voting common stock, $1.00 par value, 25,000,000 shares authorized; 8,525,362 and 8,127,690 shares issued and outstanding at June 30, 2025 and 2024, respectively			8,525						8,128
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized; No shares issued and outstanding at June 30, 2025 and 2024			-						-
Additional paid-in capital			98,728						64,762
Retained earnings			387,035						303,927
Accumulated other comprehensive loss			(2			)			(183		)
Total shareholders' equity			494,286						376,634
Total liabilities and shareholders' equity		$	4,279,068					$	3,132,203

NORTHEAST BANK
STATEMENTS OF INCOME
(Dollars in thousands, except share and per share data)
	Three Months Ended June 30,							Year Ended June 30,
	2025			2024				2025			2024
	(unaudited)			(unaudited)				(unaudited)			(audited)
Interest and dividend income:
Interest and fees on loans	$	84,601		$	62,584			$	306,961		$	242,722
Interest on available-for-sale securities		294			606				1,677			2,246
Other interest and dividend income		4,798			3,377				16,902			12,918
Total interest and dividend income		89,693			66,567				325,540			257,886
Interest expense:
Deposits		32,022			24,619				121,981			88,391
Federal Home Loan Bank advances		3,524			3,785				15,278			20,032
Obligation under capital lease agreements		216			228				908			891
Total interest expense		35,762			28,632				138,167			109,314
Net interest and dividend income before provision for credit losses		53,931			37,935				187,373			148,572
Provision for credit losses		3,469			547				8,744			1,768
Net interest and dividend income after provision for credit losses		50,462			37,388				178,629			146,804
Noninterest income:
Fees for other services to customers		356			466				1,553			1,684
Gain on sales of SBA loans		8,244			1,459				23,159			3,296
Net unrealized gain (loss) on equity securities		17			(22	)			123			(4	)
Loss on real estate owned, other repossessed collateral and premises and equipment, net		-			(20	)			-			(29	)
Bank-owned life insurance income		126			118				499			466
Correspondent fee income		13			39				83			222
Other noninterest income		12			52				40			245
Total noninterest income		8,768			2,092				25,457			5,880
Noninterest expense:
Salaries and employee benefits		13,036			11,204				47,983			41,613
Occupancy and equipment expense		1,097			995				4,553			4,272
Professional fees		609			581				2,594			2,365
Data processing fees		1,551			1,501				6,156			5,324
Marketing expense		105			261				423			1,000
Loan acquisition and collection expense		2,933			853				8,558			3,255
FDIC insurance expense		611			345				2,367			1,262
Other noninterest expense		1,553			1,339				5,756			5,477
Total noninterest expense		21,495			17,079				78,390			64,568
Income before income tax expense		37,735			22,401				125,696			88,116
Income tax expense		12,519			7,261				42,253			29,885
Net income	$	25,216		$	15,140			$	83,443		$	58,231
Weighted-average shares outstanding:
Basic		8,233,002			7,765,868				8,093,828			7,573,217
Diluted		8,413,895			7,910,692				8,277,547			7,679,007
Earnings per common share:
Basic	$	3.06		$	1.95			$	10.31		$	7.69
Diluted		3.00			1.91				10.08			7.58
Cash dividends declared per common share	$	0.01		$	0.01			$	0.04		$	0.04

NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Three Months Ended June 30,
		2025									2024
	Average Balance			Interest Income/ Expense			Average Yield/ Rate			Average Balance			Interest Income/ Expense			Average Yield/ Rate
Assets:
Interest-earning assets:
Investment securities	$	27,539		$	294		4.28	%		$	59,752		$	606		4.08	%
Loans (1) (2) (3)		3,766,776			84,601		9.01	%			2,673,108			62,584		9.42	%
Federal Home Loan Bank stock		15,491			303		7.85	%			15,756			369		9.42	%
Short-term investments (4)		396,461			4,495		4.55	%			224,498			3,008		5.39	%
Total interest-earning assets		4,206,267			89,693		8.55	%			2,973,114			66,567		9.01	%
Cash and due from banks		1,929									2,524
Other non-interest earning assets		34,575									84,461
Total assets	$	4,242,771								$	3,060,099
Liabilities & Shareholders' Equity:
Interest-bearing liabilities:
NOW accounts	$	638,767		$	5,989		3.76	%		$	545,965		$	6,105		4.50	%
Money market accounts		93,831			532		2.27	%			157,729			1,279		3.26	%
Savings accounts		205,317			1,446		2.82	%			163,940			1,395		3.42	%
Time deposits		2,250,181			24,055		4.29	%			1,267,122			15,840		5.03	%
Total interest-bearing deposits		3,188,096			32,022		4.03	%			2,134,756			24,619		4.64	%
Federal Home Loan Bank advances		325,228			3,524		4.35	%			347,726			3,785		4.38	%
Lease liability		19,194			216		4.51	%			20,533			228		4.47	%
Total interest-bearing liabilities		3,532,518			35,762		4.06	%			2,503,015			28,632		4.60	%
Non-interest bearing liabilities:
Demand deposits and escrow accounts		152,599									162,251
Other liabilities		69,893									27,230
Total liabilities		3,755,010									2,692,496
Shareholders' equity		487,762									367,603
Total liabilities and shareholders' equity	$	4,242,772								$	3,060,099
Net interest income				$	53,931								$	37,935
Interest rate spread							4.49	%								4.41	%
Net interest margin (5)							5.10	%								5.13	%
Cost of funds (6)							3.89	%								4.32	%
Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate. Includes loans held for sale. Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income. Short-term investments include FHLB overnight deposits and other interest-bearing deposits. Net interest margin is calculated as net interest income divided by total interest-earning assets. 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)
	Year Ended June 30,
	2025									2024
	Average Balance			Interest Income/ Expense			Average Yield/ Rate			Average Balance			Interest Income/ Expense			Average Yield/ Rate
Assets:
Interest-earning assets:
Investment securities	$	39,044		$	1677		4.30	%		$	59,983		$	2,246		3.74	%
Loans (1) (2) (3)		3,450,854			306,961		8.90	%			2,592,649			242,722		9.36	%
Federal Home Loan Bank stock		16,016			1,280		7.99	%			19,257			1,700		8.83	%
Short-term investments (4)		325,747			15,622		4.80	%			209,285			11,218		5.36	%
Total interest-earning assets		3,831,661			325,540		8.50	%			2,881,174			257,886		8.95	%
Cash and due from banks		2,147									2,493
Other non-interest earning assets		51,921									64,570
Total assets	$	3,885,729								$	2,948,237
Liabilities & Shareholders' Equity:
Interest-bearing liabilities:
NOW accounts	$	587,824		$	23,491		4.00	%		$	517,134		$	22,652		4.38	%
Money market accounts		122,094			3,505		2.87	%			209,080			7,039		3.37	%
Savings accounts		192,357			6,021		3.13	%			129,455			3,999		3.09	%
Time deposits		1,960,859			88,964		4.54	%			1,112,548			54,701		4.92	%
Total interest-bearing deposits		2,863,134			121,981		4.26	%			1,968,217			88,391		4.49	%
Federal Home Loan Bank advances		349,094			15,278		4.38	%			434,388			20,032		4.61	%
Lease liability		19,540			908		4.65	%			21,165			891		4.21	%
Total interest-bearing liabilities		3,231,768			138,167		4.28	%			2,423,770			109,314		4.51	%
Non-interest bearing liabilities:
Demand deposits and escrow accounts		151,010									165,789
Other liabilities		64,174									25,092
Total liabilities		3,446,952									2,614,651
Shareholders' equity		438,777									333,586
Total liabilities and shareholders' equity	$	3,885,729								$	2,948,237
Net interest income				$	187,373								$	148,572
Interest rate spread							4.22	%								4.44	%
Net interest margin (5)							4.82	%								5.16	%
Cost of funds (6)							4.08	%								4.22	%
Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate. Includes loans held for sale. Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income. Short-term investments include FHLB overnight deposits and other interest-bearing deposits. Net interest margin is calculated as net interest income divided by total interest-earning assets. 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
	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Net interest income	$	53,931			$	45,951			$	48,490			$	39,000			$	37,935
Provision for credit losses		3,469				2,908				1,944				422				547
Noninterest income		8,768				6,619				5,949				4,119				2,092
Noninterest expense		21,495				20,143				19,066				17,685				17,079
Net income		25,216				18,681				22,440				17,106				15,140
Weighted-average common shares outstanding:
Basic		8,233,002				8,216,746				8,044,345				7,886,148				7,765,868
Diluted		8,413,895				8,394,964				8,197,568				8,108,688				7,910,692
Earnings per common share:
Basic	$	3.06			$	2.27			$	2.79			$	2.17			$	1.95
Diluted		3.00				2.23				2.74				2.11				1.91
Dividends declared per common share	$	0.01			$	0.01			$	0.01			$	0.01			$	0.01
Return on average assets		2.38	%			1.86	%			2.24	%			2.09	%			1.99	%
Return on average equity		20.74	%			16.47	%			21.14	%			17.53	%			16.56	%
Net interest rate spread (1)		4.49	%			3.96	%			4.21	%			4.18	%			4.41	%
Net interest margin (2)		5.10	%			4.62	%			4.88	%			4.90	%			5.13	%
Efficiency ratio (non-GAAP) (3)		34.28	%			38.32	%			35.02	%			41.01	%			42.67	%
Noninterest expense to average total assets		2.03	%			2.00	%			1.90	%			2.16	%			2.24	%
Average interest-earning assets to average interest-bearing liabilities		119.07	%			118.64	%			118.24	%			118.48	%			118.78	%
	As of:
	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Nonperforming loans:
Originated portfolio:
Residential real estate	$	2,394			$	2,407			$	2,446			$	3,976			$	2,502
Commercial real estate		3,033				3,197				3,662				4,682				1,407
Commercial and industrial		5,158				6,945				6,696				6,684				6,520
Consumer		2				3				5				-				-
Total originated portfolio		10,587				12,552				12,809				15,342				10,429
Total purchased portfolio		24,424				19,680				17,257				21,830				17,832
Total nonperforming loans		35,011				32,232				30,066				37,172				28,261
Real estate owned and other repossessed collateral, net		560				1,200				1,200				-				-
Total nonperforming assets	$	35,571			$	33,432			$	31,266			$	37,172			$	28,261
Past due loans to total loans		0.80	%			0.91	%			0.85	%			0.89	%			0.95	%
Nonperforming loans to total loans		0.93	%			0.86	%			0.84	%			1.06	%			1.02	%
Nonperforming assets to total assets		0.83	%			0.79	%			0.77	%			0.94	%			0.90	%
Allowance for credit losses to total loans		1.28	%			1.23	%			1.25	%			1.25	%			0.97	%
Allowance for credit losses to nonperforming loans		136.90	%			142.79	%			148.92	%			117.40	%			94.51	%
Net charge-offs (recoveries)	$	1,723			$	2,082			$	869			$	1,604			$	1,347
Commercial real estate loans to total capital (4)		486.07	%			521.47	%			542.12	%			604.38	%			482.13	%
Net loans to deposits		109.86	%			112.10	%			112.52	%			110.70	%			116.88	%
Purchased loans to total loans		63.23	%			65.33	%			66.63	%			69.11	%			61.88	%
Equity to total assets		11.55	%			11.06	%			10.88	%			9.96	%			12.02	%
Common equity tier 1 capital ratio		13.44	%			12.72	%			12.66	%			11.45	%			13.84	%
Total risk-based capital ratio		14.69	%			13.97	%			13.91	%			12.70	%			14.82	%
Tier 1 leverage capital ratio		11.64	%			11.45	%			11.16	%			12.06	%			12.30	%
Total shareholders' equity	$	494,286			$	467,516			$	444,101			$	392,557			$	376,634
Less: Preferred stock		-				-				-				-				-
Common shareholders' equity		494,286				467,516				444,101				392,557				376,634
Less: Intangible assets (5)		-				-				-				-				-
Tangible common shareholders' equity (non-GAAP)	$	494,286			$	467,516			$	444,101			$	392,557			$	376,634
Common shares outstanding		8,525,362				8,525,362				8,492,856				8,212,026				8,127,690
Book value per common share	$	57.98			$	54.84			$	52.29			$	47.80			$	46.34
Tangible book value per share (non-GAAP) (5)		57.98				54.84				52.29				47.80				46.34
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. The net interest margin represents net interest income as a percent of average interest-earning assets for the period. The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income. 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. 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