Bank Reports $895.7 Million Loan Volume in Q2
"The Bank generated strong loan activity during the second fiscal quarter," said Rick Wayne, CEO. "Quarterly loan volume totaled $895.7 million, consisting of $532.9 million of purchased loans at an average price of 92.6% of unpaid principal balance, a record $252.4 million of National Lending originated loans, $39.8 million of SBA 7(a) loans and $70.6 million of insured small balance business loans. Total loans at December 31, 2025 were $4.35 billion, representing an increase of $594.4 million or 15.8% over June 30, 2025. The majority of the loan activity occurred late in the second fiscal quarter, resulting in minimal impact on the quarter's average loan balance of $3.89 billion and net interest income. This loan growth provides a strong tailwind for net interest income in the next and subsequent quarters. Our capital levels remain strong and provide us with the capacity to respond to opportunities available in the marketplace."
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Northeast Bank Declares Quarterly Dividend
- Quarterly Dividend Declaration: Northeast Bank has declared a quarterly dividend of $0.01 per share, consistent with previous distributions, indicating a commitment to stable dividend policies despite earnings falling short of expectations.
- Earnings Performance: The bank reported a GAAP EPS of $2.67 for Q1 2026, missing estimates by $0.01, suggesting that the company faces pressure on profitability, which may impact investor confidence.
- Revenue Situation: Northeast Bank's revenue for Q1 was $52.87 million, missing the expected $57.43 million by $4.56 million, reflecting potential volatility in loan purchase volumes that could negatively affect overall revenue.
- Dividend Payment Schedule: The dividend is payable on February 25, with a record date of February 11 and an ex-dividend date also on February 11, ensuring that existing shareholders receive a stable cash return.
Northeast Bank announces substantial loan acquisition activity
Loan Purchases: Northeast Bank (NBN) has acquired or agreed to purchase commercial real estate loans totaling approximately $525 million in unpaid principal balance.
Earnings Impact: The bank expects minimal impact on earnings for the second fiscal quarter of 2026, as the majority of these purchases will close late in the quarter.
Volume Ranking: CEO Rick Wayne noted that this quarter's loan purchases represent the third-highest volume since the bank began purchasing loans.
Earnings Performance: In the Q1 2026 earnings call, NBN reported a GAAP EPS of $2.67, which missed expectations by $0.01, and revenue of $52.87 million, falling short by $4.56 million.
