Northeast Bank (NBN) Q4 2025 earnings summary

Executive summary

• Net income for Q4 2025 reached $25.2 million, up from $18.7 million in Q3 2025 and $15.1 million in Q4 2024, reflecting strong loan activity and improved margins.

• Loan originations and purchases totaled $362.6 million for the quarter and $2.1 billion for the year, with robust activity across all lending segments.

• EPS for Q4 2025 was $3.06 basic and $3.00 diluted, with return on equity at 20.73% and return on assets at 2.38%.

• Record net interest income and strong lending activity drove quarterly results.

• Board declared a $0.01/share cash dividend, payable October 9, 2025.

Financial highlights

• Total revenue for the quarter was $62.7 million, a record when excluding PPP gains.

• Net interest margin for Q4 2025 was 5.10%, with purchased loan return at 8.76%.

• Tangible book value per share at quarter-end was $57.98.

• Noninterest expense rose to $21.5 million due to compensation expense true-up and higher FDIC insurance costs.

• Deposits increased 44.3% to $3.38 billion, driven by a 71.8% rise in time deposits, especially brokered time deposits.

Outlook and guidance

• Expect continued strong activity in the purchase loan market, with optimism about future opportunities despite increased competition.

• SBA lending volume may temporarily dip up to 50% next quarter due to new eligibility and documentation requirements, but long-term outlook remains positive.

• Investments in technology and workflow AI are planned, with some increase in expenses anticipated.

• Loan capacity as of June 30, 2025, was $1.1 billion, supporting continued growth.

• Management highlighted record earnings and strong lending momentum, excluding a prior one-time PPP loan sale gain.