Northeast Bank (NBN) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $20.7 million ($2.47 per diluted share), with year-to-date net income at $43.3 million ($5.14 per share), reflecting continued profitability.

• Return on equity was 15.62% for the quarter and 16.61% year to date; return on assets was 1.87% for the quarter and 2.00% year to date.

• Strong loan activity in Q2 with $895.7 million in new loans, including $532.9 million purchased and $252.4 million originated.

• SBA loan originations and sales were impacted by a government shutdown and regulatory changes, resulting in lower gain on sale income.

• Asset quality remained strong, with stable delinquencies and non-accruals.

Financial highlights

• Net interest margin was 4.49% for Q2 2026, down from 4.88% in Q2 2025.

• Total assets reached $4.95 billion, up 15.6% from June 30, 2025, driven by loan and deposit growth.

• Allowance for credit losses increased to $63.8 million (1.47% coverage).

• Non-interest expense decreased to $20.8 million from $21.9 million in the linked quarter, but increased year-over-year due to higher salaries and loan expenses.

• Efficiency ratio improved to 37% YTD FY26, but was 40.13% for Q2 2026, up from 35.02% in Q2 2025.

Outlook and guidance

• Significant late-quarter loan growth expected to boost net interest income in future quarters.

• SBA loan originations projected at $20 million per month, with gain on sale margins expected to remain at 8%-9%.

• Anticipate continued strong demand for insured small business loans and focus on developing a secondary market for these assets.

• Net interest margin expected to improve as liabilities reprice downward over the next two quarters.