Northeast Bank posts $29 million in first-quarter profit and raises cash dividend
Key Facts
Northeast Bank, listed on Nasdaq under the symbol NBN and based in Portland, Maine, reported net income of $29.0 million, or $3.42 per diluted share, for the quarter ended September 30, 2026. The bank compared that with net income of $22.5 million, or $2.67 per diluted share, in the year-earlier quarter. The results for the first quarter of fiscal 2027 were announced on October 26, in line with the schedule the bank had previously announced. The results highlight year-over-year profit growth alongside increases in interest and dividend income before provisions. The board also declared a cash dividend for shareholders, and the bank scheduled a discussion of the results for the following day.
Net interest and dividend income before provision for credit losses was $58.9 million, up from $48.2 million in the year-earlier quarter. But the provision for credit losses shifted from a credit recovery of $435,000 in the quarter ended September 30, 2025, to an expense of $794,000 in the current quarter. The comparison shows two concurrent trends in the income statement: higher interest and dividend income before provisions and higher provision costs compared with a period that recorded a recovery. The quarter ended with net income of $29.0 million and diluted earnings of $3.42 per share. In the previous fiscal quarter, ended June 30, 2026, the bank reported net income of $34.3 million and diluted earnings of $4.05 per share, compared with $25.2 million and $3.00 per share in the corresponding quarter of 2025.
On the balance sheet, total assets were $5.35 billion on September 30, up 2.4% from June 30. Total loans, including loans held for sale, reached $4.755 billion, up 3.55% from the end of June. Deposits also increased by $95.3 million, or 2.6%, during the period, with the bank attributing the increase mainly to time deposits. The figures reflect concurrent expansion in loans and deposits during the quarter, with loans growing faster than deposits based on the reported rates. The bank operates through a national commercial lending platform and a community banking branch, and its national lending business includes purchasing and originating commercial real estate loans across the country.
On asset quality, nonperforming assets fell to $31.9 million, equal to 0.6% of total assets, on September 30, from $34.8 million, or 0.7%, on June 30. Shareholders’ equity rose $24.5 million, or 4.1%, from the end of June to $628.4 million. The Tier 1 leverage capital ratio also climbed to 12.1% from 11.9% on June 30. These figures describe changes in the balance sheet and capital between the end of June and the end of September, while the increase in shareholders’ equity coincided with the period in which net income rose year over year. The bank’s shares closed at $128.74 on October 23, according to EL7 data.
The bank ended the fiscal year ended June 30, 2026, with net income of $107.5 million, compared with $83.4 million in the previous fiscal year. Chief Executive Rick Wayne said when those results were announced that the bank had achieved “record annual earnings and three consecutive quarters of record loan origination volumes.” The bank originated $389.8 million in loans in the June quarter, including $257.3 million in its national lending segment, according to its fourth-quarter fiscal 2026 results. These figures provide context on lending and earnings in the prior fiscal year before the current quarter. The bank’s model combines commercial lending nationwide with community banking services.
The board declared a cash dividend of $0.01 per share, payable on November 23, 2026, to shareholders of record on November 9. The bank had set October 26 for the release of its results, followed by an investor call on October 27. The call is scheduled to begin at 10:00 a.m. Eastern Time to discuss first-quarter fiscal 2027 results. It is set for the day after the results were published, according to the investor relations schedule. The call gives investors an opportunity to follow management’s discussion of the reported figures and developments during the quarter.