Northeast Bank Reports Strong Q1 Earnings Growth

Northeast Bancorp ( (NBN) ) has released its Q1 earnings. Here is a breakdown of the information Northeast Bancorp presented to its investors.

Northeast Bank, headquartered in Portland, Maine, operates as a financial institution offering personal and business banking services, with a focus on commercial lending and Small Business Administration (SBA) loans across the United States. In its latest earnings report, Northeast Bank announced a net income of $22.5 million for the quarter ending September 30, 2025, marking an increase from the previous year’s $17.1 million. The bank declared a cash dividend of $0.01 per share, reflecting its commitment to returning value to shareholders.

The bank’s financial performance was bolstered by a significant increase in net interest and dividend income, which rose by $9.2 million to $48.2 million, driven by higher average balances in its National Lending and SBA portfolios. Despite a decrease in total assets by 2.5% to $4.17 billion, the bank maintained strong lending activity with $278.4 million in loan originations and purchases during the quarter. Additionally, the bank’s return on average equity was reported at 17.6%, and its return on average assets stood at 2.1%.

Northeast Bank’s strategic focus on maintaining a diversified business model and an interest rate-neutral balance sheet has enabled it to achieve consistent earnings. The bank’s noninterest income saw a rise due to increased gains on SBA loan sales, while noninterest expenses also increased, primarily due to higher salaries and loan origination costs. Shareholders’ equity grew by 3.9% to $513.6 million, supported by the quarter’s net income.

Looking ahead, Northeast Bank’s management remains optimistic about future growth opportunities, supported by robust capital levels. The bank’s strategic initiatives and financial health position it well to navigate the evolving economic landscape and capitalize on potential market opportunities.