Northeast Bank (NBN) Fiscal Q1 2027 Earnings Call: Record Originations and $29M Net Income
Source Tradingkey
Key Takeaways
- Northeast Bank reported fiscal Q1 2027 net income of $29.0 million, or $3.42 per diluted share, compared with $34.3 million and $4.05 in the linked quarter.
- Return on average assets was 2.21%, while return on average equity reached 18.65%. Tangible book value rose to $73.22 per share, up 22% year over year.
- National Lending recorded its fourth consecutive quarter of record originations at $258.6 million. Total loan generation was $534 million, including purchased, originated and SBA loans.
- Net interest margin declined to 4.57% from 4.80% in the linked quarter, reflecting purchased-loan prepayment timing and a higher proportion of lower-yielding originated loans.
- Asset quality remained favorable: nonaccrual loans were $22.5 million, or 48 basis points of total loans, excluding loans held for sale.
- Management said Northeast Bank has $1.58 billion of additional loan capacity under its existing capital structure, without raising new capital.
Core Financial Data
| Metric | Fiscal Q1 2027 | Comparison or context |
|---|---|---|
| Net income | $29.0 million | $34.3 million in the linked quarter |
| Diluted EPS | $3.42 | $4.05 in the linked quarter |
| Net interest income | $58.9 million | $60.3 million linked quarter; $48.2 million prior-year quarter |
| Net interest margin | 4.57% | 4.80% linked quarter; 4.59% prior-year quarter |
| Return on average assets | 2.21% | — |
| Return on average equity | 18.65% | — |
| Total assets | $5.35 billion | Up $125 million, or 2.4%, from June 30 |
| Loan portfolio growth, including held-for-sale loans | $163 million | Up 3.6% during the quarter |
| Total loan portfolio yield | 8.11% | 8.37% in the linked quarter |
| Tangible book value per share | $73.22 | $70.58 at June 30; up 22% year over year |
| Tier 1 leverage ratio | 12.11% | — |
| Noninterest expense | $24.2 million | $23.5 million in the linked quarter |
| Effective tax rate | 26.2% | 28.3% in the prior-year quarter |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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