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PORTLAND, Maine - Northeast Bank (NASDAQ: NBN), a $764 million market cap regional bank that has delivered an impressive 78% return over the past year, has announced a significant increase in net income for the quarter and nine months ended March 31, 2025. According to InvestingPro analysis, the bank, which is currently trading below its Fair Value, reported a net income of $18.7 million, or $2.23 per diluted common share, for the quarter, up from $13.9 million, or $1.83 per share, for the same period last year. Net income for the nine-month period was $58.2 million, or $7.07 per share, compared to $43.1 million, or $5.67 per share, in the previous year.
The Board of Directors declared a cash dividend of $0.01 per share, payable on May 27, 2025, to shareholders of record as of May 13, 2025. This continues the bank’s remarkable 38-year streak of consistent dividend payments, as highlighted by InvestingPro data. The bank’s loan portfolio showed strong performance, with $292.5 million in loans originated by the National Lending Division and $121.3 million in SBA 7(a) loan originations through a partnership with Newity LLC. The total loan portfolio reached $3.80 billion, marking a 37.7% increase over the balance as of June 30, 2024.
Rick Wayne, CEO of Northeast Bank, highlighted the robust loan volume and growth in the bank’s SBA program. The bank sold $73.6 million of guaranteed SBA loans during the quarter, generating a gain on sale of $6.0 million.
Total assets were reported at $4.23 billion, a 35.0% increase from June 30, 2024. Deposits grew by 40.9% with a notable rise in time deposits, while Federal Home Loan Bank advances increased by 9.7%. Shareholders’ equity saw a 24.1% increase, primarily due to net income and proceeds from the bank’s at-the-market program.
The bank’s earnings per share for the quarter reflected a return on average equity of 16.5% and a return on average assets of 1.9%. The provision for credit losses for the quarter rose to $2.9 million compared to $596 thousand in the previous year, mainly due to loan growth and increased reserves in the SBA portfolio. Noninterest income and noninterest expense also saw increases from the previous year.
Northeast Bank will host a conference call to discuss third-quarter earnings and business outlook on Wednesday, April 30th. With analysts setting price targets between $110 and $115, and the bank maintaining a "GOOD" Financial Health Score according to InvestingPro, investors may want to review the comprehensive Pro Research Report available for this and 1,400+ other US stocks, offering deep-dive analysis and actionable insights. The information in this article is based on a press release statement from Northeast Bank.
In other recent news, Northeast Bank reported operating earnings of $2.75 per share, surpassing expectations due to stronger pre-provision net revenue and robust loan growth. The bank experienced a 12% quarter-over-quarter increase in loan growth, which contributed to a larger earning asset base. Higher fee income was noted, attributed to stronger gains on Small Business Administration loan sales, although expenses exceeded forecasts. Keefe, Bruyette & Woods analysts adjusted their financial model, improving the outlook for the bank’s net interest income based on the expanded earning asset base and better-than-expected net interest margin projections. Despite positive revisions, the analysts anticipate a higher provision for loan losses. Consequently, Keefe, Bruyette & Woods raised their full-year 2025 earnings estimate by approximately 4.5% and the full-year 2026 estimate by 3.5%. The firm also increased the price target on Northeast Bank shares to $115.00 from $102.00, maintaining a Market Perform rating.
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