Northeast Bank Q3 FY2026 earnings call

• Rick Wayne provided an overview of the quarter, stating it was a great quarter with record originated loans and net interest income. - Santino Del Molino provided granular analysis on financial statements, including details on income, ROA, ROE, total assets, loans, net interest margin, yield on purchase portfolio, funding costs, asset quality, allowance for credit losses, net charge-offs, expenses, tax expense, and capital. - Pat Dignan discussed loan activity, including purchase loans of $25 million with details on bids and pipeline, originated loans of $254 million as a record, and small balance loan program activity including SBA loans and small balance insured loans.

Originated loans for the quarter were $254 million, a record. Total loan volume in all areas was $345 million. Year-to-date total loan volume was $1.56 billion. Net interest margin was 5.15%. Net income was $29.9 million. EPS basic was $3.59 a share and fully diluted was $3.53. Return on equity was 21.67% and return on assets was 2.43%. Tangible book value per share was up to 66.35. Loan growth was focused on the originated book, with originated loans portfolio growing by $145 million or 11% quarter over quarter, while purchase portfolio decreased by $46 million or 2%. Net interest income was $63.1 million for the quarter to date and $160 million for the year to date. Asset quality remained strong with delinquencies, non-accruals, and classified loans relatively flat. Allowance for credit losses decreased. Net charge-offs for the quarter were $3.4 million. Non-interest expense was $23.6 million. Tax expense was $13.3 million. Capital remained strong with Tier 1 leverage ratio at 11.4%.

• On deposit growth, mentioned about CDs maturing and being rolled into FHLB borrowings. - On expenses, expected compensation expense for Q4 around 13.5 million and other non-interest expenses to be flat. - On loans, confident in continued strong origination trends in the niche market of bridge loan and lender finance space. - On margin, back out transactional income, funding side may have some pickup with CDs maturing, and purchase portfolio has average maturity around 8 years with runway left. - On purchase pipeline, confident in winning share while remaining disciplined. - On SBA business, expecting to get to $20 million a month loan volume assuming no more rule changes, and working on participating in new 90% loan guarantee program. - On small balance insured product, waiting for predictable forward flow process to increase volume.

Q: Damon Devante asked about deposit growth, expense expectations, and loan origination outlook.

A: Deposits were relatively flat, expense comp for Q4 around 13.5 million, confident in origination trends in niche market.

Q: Justin Crawley asked about margin, purchase loan portfolio, floating rate loan book, purchase pipeline competition, and SBA business.

A: Back out transactional income for margin, purchase portfolio has average maturity around 8 years, weighted average floor on originated portfolio, purchase pipeline competitive with basis points being the difference, SBA business expecting to reach $20 million a month with no more rule changes.

Q: David Minkoff gave a congratulatory comment and mentioned a suggestion for a national holiday.