Northeast Bank (NBN) investor relations material

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.

• EPS for Q2 FY26 was $2.49 (basic) and $2.47 (diluted), with YTD EPS at $5.22 (basic) and $5.14 (diluted).

• Loan book expanded with $532.9 million in purchased loans and $252.4 million in originations, driving total loans to $4.4 billion.

• SBA loan originations and sales were impacted by the 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 (NIM) was 4.49% for Q2 FY26, down from 4.88% in Q2 FY25.

• Net interest income for Q2 FY26 was $48.8 million, with year-to-date at $97 million.

• Return on equity was 15.62% for Q2 FY26 and 16.61% year to date; return on assets was 1.87% for the quarter and 2% year to date.

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

• Efficiency ratio improved to 37% YTD FY26, but was 40.13% for Q2 FY26.

Outlook and guidance

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

• SBA loan origination run rate projected at $20 million per month, or $50–$60 million per quarter, with gain on sale margins expected to remain at 8–9%.

• Insured small business loan originations expected to sustain current run rate, with future sales to private buyers anticipated to generate ongoing spread income.