Northeast Bank Reports Fourth Quarter Results and Declares Dividend

PORTLAND, Maine, July 28, 2025 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based bank, today reported net income of $25.2 million, or $3.00 per diluted common share, for the quarter ended June 30, 2025, compared to net income of $15.1 million, or $1.91 per diluted common share, for the quarter ended June 30, 2024. Net income for the year ended June 30, 2025 was $83.4 million, or $10.08 per diluted common share, compared to $58.2 million, or $7.58 per diluted common share, for the year ended June 30, 2024. The Board of Directors declared a cash dividend of $0.01 per share, payable on October 9, 2025, to shareholders of record as of September 25, 2025. "I am pleased to report a very strong quarter,” said Rick Wayne, Chief Executive Officer. “Excluding a single quarter in which we had substantial gains from the sale of PPP loans, the June 30, 2025 quarter generated record earnings primarily attributable to record net interest income. We are reporting earnings of $3.00 per diluted common share, a return on average equity of 20.7%, and a return on average assets of 2.4%. Lending activity remained strong with total quarterly originations and purchases of $365.6 million. Originations and purchases for the year ending June 30, 2025 was $2.08 billion. At June 30, 2025, the loan portfolio, including loans held for sale, totaled $3.79 billion, representing an increase of $1.03 billion, or 37.3%, over June 30, 2024.” As of June 30, 2025, total assets were $4.28 billion, an increase of $1.15 billion, or 36.6%, from total assets of $3.13 billion as of June 30, 2024. 1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the year ended June 30, 2025: Loan Portfolio Changes June 30, 2025 June 30, 2024 Change ($) Change (%) (Dollars in thousands)National Lending Purchased$2,375,157 $1,708,551 $666,606 39.02%National Lending Originated 1,251,768 981,497 270,271 27.54%SBA National 144,974 48,405 96,569 199.50%Community Banking 18,258 22,704 (4,446) (19.58%)Total$3,790,157 $2,761,157 $1,029,000 37.27% Loans generated by the Bank's National Lending Division for the quarter ended June 30, 2025 totaled $258.3 million, which consisted of $41.7 million of purchased loans at an average price of 93.8% of unpaid principal balance, and $216.6 million of originated loans. Loans generated by the Bank’s SBA Division for the quarter ended June 30, 2025 totaled $107.3 million. An overview of the Bank’s National Lending Division portfolio follows: National Lending Portfolio Three Months Ended June 30, 2025 2024 Purchased Originated Total Purchased Originated Total (Dollars in thousands)Loans purchased or originated during the period: Unpaid principal balance$44,419 $216,631 $261,050 $160,627 $114,272 $274,899 Initial net investment basis (1) 41,680 216,631 258,311 143,571 114,272 257,843 Loan returns during the period: Yield 8.52% 9.95% 8.99% 9.18% 9.68% 9.37%Total Return on Purchased Loans (2) 8.76% N/A 8.76% 9.47% N/A 9.47% Year Ended June 30, 2025 2024 Purchased Originated Total Purchased Originated Total (Dollars in thousands)Loans purchased or originated during the period: Unpaid principal balance$946,112 $807,923 $1,754,035 $432,367 $399,149 $831,516 Initial net investment basis (1) 863,165 807,923 1,671,088 382,047 399,149 781,196 Loan returns during the period: Yield 8.62% 9.27% 8.90% 9.01% 9.90% 9.34%Total Return on Purchased Loans (2) 8.71% N/A 8.71% 9.11% N/A 9.11% Total loans as of period end: Unpaid principal balance$2,554,266 $1,251,768 $3,806,034 $1,886,383 $981,497 $2,867,880 Net investment basis 2,375,157 1,251,768 3,626,925 1,708,551 981,497 2,690,048 (1) Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark).(2) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled “Total Return on Purchased Loans.” 2. Deposits increased by $1.04 billion, or 44.3%, from June 30, 2024. The increase was primarily attributable to increases in time deposits of $937.4 million, or a 71.8% increase compared with the prior year. The significant drivers in the change in time deposits were the increase in brokered time deposits, which increased by $752.7 million, and Community Banking Division time deposits, which increased by $156.2 million compared to June 30, 2024. 3. Federal Home Loan Bank (“FHLB”) advances decreased by $25.0 million, or 7.2%, from June 30, 2024. The decrease was attributable to maturities on outstanding advances and net paydowns on amortizing advances. 4. Shareholders’ equity increased by $117.7 million, or 31.2%, from June 30, 2024, primarily due to net income of $83.4 million and $31.3 million of net proceeds on shares issued in connection with the Bank’s at-the-market (“ATM”) offering. Net income increased by $6.5 million to $25.2 million for the quarter ended June 30, 2025, compared to net income of $18.7 million for the quarter ended March 31, 2025. 1. Net interest and dividend income before provision for credit losses increased by $8.0 million to $53.9 million for the quarter ended June 30, 2025, compared to $46.0 million for the quarter ended March 31, 2025. The increase was primarily due to the following: An increase in interest income earned on loans of $8.1 million, primarily due to the resolution of a significant nonaccrual National Lending Division originated loan and higher transactional income in the National Lending Division purchased portfolio; andAn increase in interest income earned on short-term investments of $0.8 million, due to higher average balances, partially offset by lower rates earned; partially offset by,An increase in deposit interest expense of $1.4 million, primarily due to higher average balances, partially offset by lower rates on interest-bearing deposits. The following table summarizes interest income and related yields recognized on the loan portfolios: Interest Income and Yield on Loans Three Months Ended June 30, 2025 2024 Average Balance (1) InterestIncome Yield Average Balance (1) InterestIncome Yield (Dollars in thousands)Community Banking$19,378 $321 6.64% $23,511 $381 6.52%SBA National 147,628 3,621 9.84% 40,004 1,437 14.45%National Lending: Originated 1,176,989 29,183 9.95% 963,946 23,204 9.68%Purchased 2,422,781 51,476 8.52% 1,645,647 37,562 9.18%Total National Lending 3,599,770 80,659 8.99% 2,609,593 60,766 9.37%Total$3,766,776 $84,601 9.01% $2,673,108 $62,584 9.42% Year Ended June 30, 2025 2024 Average Balance (1) InterestIncome Yield Average Balance (1) InterestIncome Yield (Dollars in thousands)Community Banking$20,843 $1,409 6.76% $25,267 $1,622 6.42%SBA National 103,525 11,766 11.37% 32,581 4,270 13.11%National Lending: Originated 1,083,654 100,479 9.27% 954,316 94,488 9.90%Purchased 2,242,832 193,307 8.62% 1,580,485 142,342 9.01%Total National Lending 3,326,486 293,786 8.83% 2,534,801 236,830 9.34%Total$3,450,854 $306,961 8.90% $2,592,649 $242,722 9.36%(1) Includes loans held for sale. The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended June 30, 2024, transactional income increased by $0.9 million for the quarter ended June 30, 2025, and regularly scheduled interest and accretion increased by $13.2 million primarily due to the increase in average balances. The total return on purchased loans for the quarter ended June 30, 2025 was 8.8%, a decrease from 9.5% for the quarter ended June 30, 2024. The following table details the total return on purchased loans: Total Return on Purchased Loans Three Months Ended June 30, 2025 2024 Income Return (1) Income Return (1) (Dollars in thousands)Regularly scheduled interest and accretion$47,707 7.90% $34,504 8.43%Transactional income: Release of allowance for credit losses on purchased loans 1,404 0.23% 1,202 0.29%Accelerated accretion and loan fees 3,768 0.62% 3,058 0.75%Total transactional income 5,172 0.86% 4,260 1.04%Total$52,879 8.76% $38,764 9.47% Year Ended June 30, 2025 2024 Income Return (1) Income Return (1) (Dollars in thousands)Regularly scheduled interest and accretion$183,762 8.19% $133,009 8.42%Transactional income: Release of allowance for credit losses on purchased loans 2,138 0.10% 1,558 0.10%Accelerated accretion and loan fees 9,545 0.43% 9,333 0.59%Total transactional income 11,683 0.52% 10,891 0.69%Total$195,445 8.71% $143,900 9.11% (1) The total return on purchased loans represents scheduled accretion, accelerated accretion, and gains (losses) on real estate owned, and release of allowance for credit losses on purchased loans recorded during the period divided by the average invested balance on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure. 2. Provision for credit losses increased by $2.9 million to $3.5 million for the quarter ended June 30, 2025, compared to $547 thousand in the quarter ended June 30, 2024. The increase was primarily related to loan growth and increased reserves on the unguaranteed portion of the SBA portfolio. 3. Noninterest income increased by $6.7 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024, primarily due to an increase in gain on sale of SBA loans of $6.8 million, due to the sale of $107.6 million in SBA loans during the quarter ended June 30, 2025 as compared to the sale of $26.8 million during the quarter ended June 30, 2024. 4. Noninterest expense increased by $4.4 million for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024, primarily due to the following: An increase in salaries and employee benefits expense of $1.8 million, primarily due to increases in regular stock and incentive compensation expense;An increase in loan expense of $2.1 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; andAn increase in Federal Deposit Insurance Corporation (“FDIC”) insurance expense of $266 thousand, due to the growth of the Bank’s asset size and an increased assessment rate. 5. Income tax expense increased by $5.3 million to $12.5 million, or an effective tax rate of 33.2%, for the quarter ended June 30, 2025, compared to $7.3 million, or an effective tax rate of 32.4%, for the quarter ended June 30, 2024. The increase in effective tax rate is primarily due to changes in income apportionment for state taxes. As of June 30, 2025, nonperforming assets totaled $35.6 million, or 0.8% of total assets, compared to $28.3 million, or 0.9% of total assets, as of June 30, 2024. As of June 30, 2025, past due loans totaled $30.1 million, or 0.8% of total loans, compared to past due loans totaling $26.3 million, or 1.0% of total loans, as of June 30, 2024. As of June 30, 2025, the Bank’s Tier 1 leverage capital ratio was 11.6%, compared to 12.3% at June 30, 2024, and the Total risk-based capital ratio was 14.7% at June 30, 2025, compared to 14.8% at June 30, 2024. Capital ratios decreased primarily due to the increase in risk-weighted assets and average assets from significant loan growth during the year ended June 30, 2025, partially offset by increased retained earnings and additional capital raised under the Bank’s ATM offering. Investor Call InformationRick Wayne, Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, Chief Operating Officer and Chief Credit Officer of Northeast Bank, will host a conference call to discuss fourth quarter earnings and business outlook at 1:00 p.m. Eastern Time on Tuesday, July 29th. To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via live webcast, which can be viewed by accessing the Bank’s website at www.northeastbank.com and clicking on the About Us - Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com. About Northeast BankNortheast Bank (NASDAQ: NBN) is a bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com. Non-GAAP Financial MeasuresIn addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank’s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. Forward-Looking StatementsStatements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the FDIC, in our annual reports to our shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Bank’s control. The Bank’s actual results could differ materially from those expressed or implied by such the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; changes in employment levels, general business and economic conditions on a national basis and in the local markets in which the Bank operates; changes in customer behavior due to changing business and economic conditions (including the impact of actual or threatened tariffs imposed by the U.S. and foreign governments, inflation and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changes in legislation and regulation under the new U.S. presidential administration; operational risks including, but not limited to, cybersecurity, fraud, natural disasters, climate change and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank’s Annual Report on Form 10-K, as amended by Amendment No. 1 to the Annual Report on Form 10-K/A for the year ended June 30, 2024 as updated in the Bank’s Quarterly Reports on Form 10-Q and other filings submitted to the FDIC. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events. NBN-F NORTHEAST BANK BALANCE SHEETS (Dollars in thousands, except share and per share data) June 30, 2025 June 30, 2024 (unaudited) (audited)Assets Cash and due from banks$2,908 $2,711 Short-term investments 410,711 239,447 Total cash and cash equivalents 413,619 242,158 Available-for-sale debt securities, at fair value 15,308 48,978 Equity securities, at fair value 7,396 7,013 Total securities 22,704 55,991 SBA loans held for sale 33,768 14,506 Loans: Commercial real estate 2,733,794 2,028,280 Commercial and industrial 903,278 618,846 Residential real estate 119,158 99,234 Consumer 159 291 Total loans 3,756,389 2,746,651 Less: Allowance for credit losses 47,930 26,709 Loans, net 3,708,459 2,719,942 Premises and equipment, net 24,704 27,144 Real estate owned and other possessed collateral, net 560 - Federal Home Loan Bank stock, at cost 15,295 15,751 Loan servicing rights, net 699 984 Bank-owned life insurance 19,329 18,830 Accrued interest receivable 16,897 15,163 Other assets 23,034 21,734 Total assets$4,279,068 $3,132,203 Liabilities and Shareholders’ Equity Deposits: Demand$159,274 $146,727 Savings and interest checking 880,016 732,029 Money market 92,716 154,504 Time 2,243,594 1,306,203 Total deposits 3,375,600 2,339,463 Federal Home Loan Bank advances 320,191 345,190 Lease liability 19,044 20,252 Other liabilities 69,947 50,664 Total liabilities 3,784,782 2,755,569 Commitments and contingencies Shareholders’ equity Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares issued and outstanding at June 30, 2025 and 2024 - - Voting common stock, $1.00 par value, 25,000,000 shares authorized; 8,525,362 and 8,127,690 shares issued and outstanding at June 30, 2025 and 2024, respectively 8,525 8,128 Non-voting common stock, $1.00 par value, 3,000,000 shares authorized; No shares issued and outstanding at June 30, 2025 and 2024 - - Additional paid-in capital 98,728 64,762 Retained earnings 387,035 303,927 Accumulated other comprehensive loss (2) (183)Total shareholders’ equity 494,286 376,634 Total liabilities and shareholders’ equity$4,279,068 $3,132,203 NORTHEAST BANK STATEMENTS OF INCOME (Dollars in thousands, except share and per share data) Three Months Ended June 30, Year Ended June 30, 2025 2024 2025 2024 (unaudited) (unaudited) (unaudited) (audited)Interest and dividend income: Interest and fees on loans$84,601 $62,584 $306,961 $242,722 Interest on available-for-sale securities 294 606 1,677 2,246 Other interest and dividend income 4,798 3,377 16,902 12,918 Total interest and dividend income 89,693 66,567 325,540 257,886 Interest expense: Deposits 32,022 24,619 121,981 88,391 Federal Home Loan Bank advances 3,524 3,785 15,278 20,032 Obligation under capital lease agreements 216 228 908 891 Total interest expense 35,762 28,632 138,167 109,314 Net interest and dividend income before provision for credit losses 53,931 37,935 187,373 148,572 Provision for credit losses 3,469 547 8,744 1,768 Net interest and dividend income after provision for credit losses 50,462 37,388 178,629 146,804 Noninterest income: Fees for other services to customers 356 466 1,553 1,684 Gain on sales of SBA loans 8,244 1,459 23,159 3,296 Net unrealized gain (loss) on equity securities 17 (22) 123 (4)Loss on real estate owned, other repossessed collateral and premises and equipment, net - (20) - (29)Bank-owned life insurance income 126 118 499 466 Correspondent fee income 13 39 83 222 Other noninterest income 12 52 40 245 Total noninterest income 8,768 2,092 25,457 5,880 Noninterest expense: Salaries and employee benefits 13,036 11,204 47,983 41,613 Occupancy and equipment expense 1,097 995 4,553 4,272 Professional fees 609 581 2,594 2,365 Data processing fees 1,551 1,501 6,156 5,324 Marketing expense 105 261 423 1,000 Loan acquisition and collection expense 2,933 853 8,558 3,255 FDIC insurance expense 611 345 2,367 1,262 Other noninterest expense 1,553 1,339 5,756 5,477 Total noninterest expense 21,495 17,079 78,390 64,568 Income before income tax expense 37,735 22,401 125,696 88,116 Income tax expense 12,519 7,261 42,253 29,885 Net income$25,216 $15,140 $83,443 $58,231 Weighted-average shares outstanding: Basic 8,233,002 7,765,868 8,093,828 7,573,217 Diluted 8,413,895 7,910,692 8,277,547 7,679,007 Earnings per common share: Basic$3.06 $1.95 $10.31 $7.69 Diluted 3.00 1.91 10.08 7.58 Cash dividends declared per common share$0.01 $0.01 $0.04 $0.04 NORTHEAST BANK AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS (Unaudited) (Dollars in thousands) Three Months Ended June 30, 2025 2024 Average Balance InterestIncome/Expense AverageYield/Rate Average Balance InterestIncome/Expense AverageYield/RateAssets: Interest-earning assets: Investment securities$27,539 $294 4.28% $59,752 $606 4.08%Loans (1) (2) (3) 3,766,776 84,601 9.01% 2,673,108 62,584 9.42%Federal Home Loan Bank stock 15,491 303 7.85% 15,756 369 9.42%Short-term investments (4) 396,461 4,495 4.55% 224,498 3,008 5.39%Total interest-earning assets 4,206,267 89,693 8.55% 2,973,114 66,567 9.01%Cash and due from banks 1,929 2,524 Other non-interest earning assets 34,575 84,461 Total assets$4,242,771 $3,060,099 Liabilities & Shareholders' Equity: Interest-bearing liabilities: NOW accounts$638,767 $5,989 3.76% $545,965 $6,105 4.50%Money market accounts 93,831 532 2.27% 157,729 1,279 3.26%Savings accounts 205,317 1,446 2.82% 163,940 1,395 3.42%Time deposits 2,250,181 24,055 4.29% 1,267,122 15,840 5.03%Total interest-bearing deposits 3,188,096 32,022 4.03% 2,134,756 24,619 4.64%Federal Home Loan Bank advances 325,228 3,524 4.35% 347,726 3,785 4.38%Lease liability 19,194 216 4.51% 20,533 228 4.47%Total interest-bearing liabilities 3,532,518 35,762 4.06% 2,503,015 28,632 4.60% Non-interest bearing liabilities: Demand deposits and escrow accounts 152,599 162,251 Other liabilities 69,893 27,230 Total liabilities 3,755,010 2,692,496 Shareholders' equity 487,762 367,603 Total liabilities and shareholders' equity$4,242,772 $3,060,099 Net interest income $53,931 $37,935 Interest rate spread 4.49% 4.41%Net interest margin (5) 5.10% 5.13% Cost of funds (6) 3.89% 4.32% Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.Includes loans held for sale.Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.Short-term investments include FHLB overnight deposits and other interest-bearing deposits.Net interest margin is calculated as net interest income divided by total interest-earning assets.Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts. NORTHEAST BANK AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS (Unaudited) (Dollars in thousands) Year Ended June 30, 2025 2024 Average Balance InterestIncome/Expense AverageYield/Rate Average Balance InterestIncome/Expense AverageYield/RateAssets: Interest-earning assets: Investment securities$39,044 $1677 4.30% $59,983 $2,246 3.74%Loans (1) (2) (3) 3,450,854 306,961 8.90% 2,592,649 242,722 9.36%Federal Home Loan Bank stock 16,016 1,280 7.99% 19,257 1,700 8.83%Short-term investments (4) 325,747 15,622 4.80% 209,285 11,218 5.36%Total interest-earning assets 3,831,661 325,540 8.50% 2,881,174 257,886 8.95%Cash and due from banks 2,147 2,493 Other non-interest earning assets 51,921 64,570 Total assets$3,885,729 $2,948,237 Liabilities & Shareholders' Equity: Interest-bearing liabilities: NOW accounts$587,824 $23,491 4.00% $517,134 $22,652 4.38%Money market accounts 122,094 3,505 2.87% 209,080 7,039 3.37%Savings accounts 192,357 6,021 3.13% 129,455 3,999 3.09%Time deposits 1,960,859 88,964 4.54% 1,112,548 54,701 4.92%Total interest-bearing deposits 2,863,134 121,981 4.26% 1,968,217 88,391 4.49%Federal Home Loan Bank advances 349,094 15,278 4.38% 434,388 20,032 4.61%Lease liability 19,540 908 4.65% 21,165 891 4.21%Total interest-bearing liabilities 3,231,768 138,167 4.28% 2,423,770 109,314 4.51% Non-interest bearing liabilities: Demand deposits and escrow accounts 151,010 165,789 Other liabilities 64,174 25,092 Total liabilities 3,446,952 2,614,651 Shareholders' equity 438,777 333,586 Total liabilities and shareholders' equity$3,885,729 $2,948,237 Net interest income $187,373 $148,572 Interest rate spread 4.22% 4.44%Net interest margin (5) 4.82% 5.16% Cost of funds (6) 4.08% 4.22% Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.Includes loans held for sale.Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.Short-term investments include FHLB overnight deposits and other interest-bearing deposits.Net interest margin is calculated as net interest income divided by total interest-earning assets.Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts. NORTHEAST BANK SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA (Unaudited) (Dollars in thousands, except share and per share data) Three Months Ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Net interest income$53,931 $45,951 $48,490 $39,000 $37,935 Provision for credit losses 3,469 2,908 1,944 422 547 Noninterest income 8,768 6,619 5,949 4,119 2,092 Noninterest expense 21,495 20,143 19,066 17,685 17,079 Net income 25,216 18,681 22,440 17,106 15,140 Weighted-average common shares outstanding: Basic 8,233,002 8,216,746 8,044,345 7,886,148 7,765,868 Diluted 8,413,895 8,394,964 8,197,568 8,108,688 7,910,692 Earnings per common share: Basic$3.06 $2.27 $2.79 $2.17 $1.95 Diluted 3.00 2.23 2.74 2.11 1.91 Dividends declared per common share$0.01 $0.01 $0.01 $0.01 $0.01 Return on average assets 2.38% 1.86% 2.24% 2.09% 1.99%Return on average equity 20.74% 16.47% 21.14% 17.53% 16.56%Net interest rate spread (1) 4.49% 3.96% 4.21% 4.18% 4.41%Net interest margin (2) 5.10% 4.62% 4.88% 4.90% 5.13%Efficiency ratio (non-GAAP) (3) 34.28% 38.32% 35.02% 41.01% 42.67%Noninterest expense to average total assets 2.03% 2.00% 1.90% 2.16% 2.24%Average interest-earning assets to average interest-bearing liabilities 119.07% 118.64% 118.24% 118.48% 118.78% As of: June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Nonperforming loans: Originated portfolio: Residential real estate$2,394 $2,407 $2,446 $3,976 $2,502 Commercial real estate 3,033 3,197 3,662 4,682 1,407 Commercial and industrial 5,158 6,945 6,696 6,684 6,520 Consumer 2 3 5 - - Total originated portfolio 10,587 12,552 12,809 15,342 10,429 Total purchased portfolio 24,424 19,680 17,257 21,830 17,832 Total nonperforming loans 35,011 32,232 30,066 37,172 28,261 Real estate owned and other repossessed collateral, net 560 1,200 1,200 - - Total nonperforming assets$35,571 $33,432 $31,266 $37,172 $28,261 Past due loans to total loans 0.80% 0.91% 0.85% 0.89% 0.95%Nonperforming loans to total loans 0.93% 0.86% 0.84% 1.06% 1.02%Nonperforming assets to total assets 0.83% 0.79% 0.77% 0.94% 0.90%Allowance for credit losses to total loans 1.28% 1.23% 1.25% 1.25% 0.97%Allowance for credit losses to nonperforming loans 136.90% 142.79% 148.92% 117.40% 94.51%Net charge-offs (recoveries)$1,723 $2,082 $869 $1,604 $1,347 Commercial real estate loans to total capital (4) 486.07% 521.47% 542.12% 604.38% 482.13%Net loans to deposits 109.86% 112.10% 112.52% 110.70% 116.88%Purchased loans to total loans 63.23% 65.33% 66.63% 69.11% 61.88%Equity to total assets 11.55% 11.06% 10.88% 9.96% 12.02%Common equity tier 1 capital ratio 13.44% 12.72% 12.66% 11.45% 13.84%Total risk-based capital ratio 14.69% 13.97% 13.91% 12.70% 14.82%Tier 1 leverage capital ratio 11.64% 11.45% 11.16% 12.06% 12.30% Total shareholders’ equity$494,286 $467,516 $444,101 $392,557 $376,634 Less: Preferred stock - - - - - Common shareholders’ equity 494,286 467,516 444,101 392,557 376,634 Less: Intangible assets (5) - - - - - Tangible common shareholders' equity (non-GAAP)$494,286 $467,516 $444,101 $392,557 $376,634 Common shares outstanding 8,525,362 8,525,362 8,492,856 8,212,026 8,127,690 Book value per common share$57.98 $54.84 $52.29 $47.80 $46.34 Tangible book value per share (non-GAAP) (5) 57.98 54.84 52.29 47.80 46.34 The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.The net interest margin represents net interest income as a percent of average interest-earning assets for the period.The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income.For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding. For More Information: Richard Cohen, Chief Financial OfficerNortheast Bank, 27 Pearl Street, Portland, Maine 04101 207.786.3245 ext. 3249www.northeastbank.com

Northeast Bank Reports Fourth Quarter Results and Declares Dividend

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