Northeast Bank (NBN) Q1 2026 earnings summary

Executive summary

• Net income for the quarter was $22.5 million, up from $17.1 million year-over-year, with diluted EPS of $2.67 and basic EPS of $2.72; ROE was 17.64% and ROA was 2.13%.

• Tangible book value per share reached $59.98 as of September 30, 2025.

• A cash dividend of $0.01 per share was declared, payable November 25, 2025.

• Loan purchases totaled $145 million and originations $134 million, both mainly at quarter-end.

• SBA loan activity was impacted by government shutdown and rule changes, leading to lower gains on sales.

Financial highlights

• Net interest margin was 4.59%, down from 4.90% year-over-year and 5.1% in the prior quarter.

• Pre-provision net interest income was $48.2 million, up from $39.0 million year-over-year.

• Provision for loan losses was a credit of $435,000, reflecting strong asset quality.

• Total assets ended at $4.17 billion, down $107.6 million (2.5%) sequentially.

• Gains on SBA loan sales were $4.2 million on $58 million sold, compared to $8.2 million on $108 million last quarter.

Outlook and guidance

• Loan purchase and origination pipelines are robust, with significant opportunities expected in coming quarters.

• All national lending originations in Q1 FY26 were variable rate, with 44% Prime-based and 56% SOFR-based.

• Weighted average floor rate for new originations was 7.76%.

• SBA loan volumes are expected to ramp up once the government reopens, though timing is uncertain.

• Effective tax rate for the remainder of the year is projected at 31%-32%.