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.”

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

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