Northeast Bank (NBN) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net income was $29.0 million; ROE was 18.65% and ROA was 2.21%.

• Loan generation totaled $534.3 million; total assets increased $125.8 million, or 2.4%, to $5.35 billion.

• Strong lending pipelines and momentum entering Q2; available lending capacity was $1.58 billion using existing capital.

Financial highlights

• Net income was $28.990 million, or $3.42 per diluted share, versus $29.853 million in Q4 FY26 and $22.541 million in Q1 FY26.

• Net interest income was $58.9 million; NIM was 4.57%, versus 4.80% in Q4 FY26 and 4.59% in Q1 FY26.

• Noninterest expense was $24.2 million, up $2.3 million YoY; the 26.2% effective tax rate reflected Q1 stock-vesting tax benefits.

Outlook and guidance

• Management cited active purchase and origination pipelines and strong Q2 activity; originated-loan growth may vary with originations and payoffs.

• Slower purchase-loan paydowns could support a modest NIM rebound, but payoff timing and rate marks make quarterly results difficult to forecast.

• About $1.4 billion of CDs mature within three months; rollover costs may rise ~50 bps, implying ~15 bps of next-quarter cost-of-funds pressure, depending on brokered rates.

• SBA loan sales of $35 million per quarter were characterized as a reasonable forward run rate.