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Northeast Bancorp (NBN)
NASDAQ:NBN
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Northeast Bancorp
(NASDAQ:NBN)
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Rating:73Outperform
Price Target:
$106.00
▲(15.94% Upside)
Northeast Bancorp's strong financial performance and positive earnings call are significant strengths, reflecting robust growth and profitability. However, technical indicators suggest bearish momentum, which tempers the overall score. The stock's attractive valuation further supports its investment potential.
Northeast Bancorp (NBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$729.40M
Dividend Yield0.04%
Average Volume (3M)81.52K
Price to Earnings (P/E)9.1
Beta (1Y)0.81
Revenue Growth33.02%
EPS Growth33.76%
CountryUS
Employees194
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.00
Shares Outstanding7,977,690
10 Day Avg. Volume79,175
30 Day Avg. Volume81,516
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.46
Price to Sales (P/S)2.05
P/FCF Ratio13.48
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue3.14
Enterprise Value/Gross Profit5.47
Enterprise Value/Ebitda8.47
Forecast
1Y Price Target
$111.00Price Target Upside21.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Northeast Bancorp Business Overview & Revenue Model
Company DescriptionNortheast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. It operates a network of nine branches in Western, Central, and Southern Maine. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.
How the Company Makes MoneyNortheast Bancorp makes money primarily through its banking operations, which generate revenue from interest income and non-interest income sources. Interest income is derived from the interest charged on loans and advances made to individuals, businesses, and municipalities. This includes commercial real estate loans, residential real estate loans, and consumer loans. Non-interest income is generated from fees and service charges related to deposit accounts, loan servicing fees, and other financial services. The company also invests in securities and other financial instruments to earn interest and dividends. Significant partnerships with local businesses and an emphasis on community banking further bolster its income by attracting and retaining a loyal customer base.
Northeast Bancorp Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with record net income and robust loan growth, particularly in the SBA segment. However, challenges like potential SBA volume dips and increased noninterest expenses temper the overall positivity.Q4-2025 Updates
Positive Updates
Record Net Income
Net income for the quarter was $25.2 million, marking a record if we exclude the large sale of PPP loans.
Strong Loan Originations and Purchases
Total loan originations and purchases for the quarter amounted to $362.6 million and $2.1 billion for the fiscal year.
Robust SBA Performance
SBA loan originations totaled $107.3 million for the quarter and $408.5 million for the year, with a gain on loan sales of $8.2 million.
High Return on Equity
Return on equity was a strong 20.73% and return on assets was 2.38%.
Increased Loan Portfolio
The loan portfolio grew by 36% overall with purchased loan growth of 43% and originated growth of 27%.
Negative Updates
SBA Lending Volume Challenges
SBA lending volume is expected to temporarily dip by as much as 50% in the coming quarter due to tightened eligibility requirements.
Increased Noninterest Expenses
Noninterest expense for the quarter was $21.5 million, higher than preceding quarters due to a compensation expense true-up.
Potential Multifamily Market Risk
Exposure to rent-controlled and rent-stabilized units in New York City could pose risks if rent freezes occur.
Company Guidance
During the Northeast Bank Fourth Quarter and Fiscal Year 2025 Earnings Conference Call, CEO Rick Wayne highlighted several key financial metrics that demonstrated a strong performance for the quarter and the fiscal year ending June 30. Net income reached a record $25.2 million, excluding the impact of PPP loan sales. Loan originations and purchases totaled $362.6 million for the quarter and $2.1 billion for the year, with a weighted average loan rate of approximately 8%. The bank originated $107.3 million in SBA loans for the quarter, with sales of $107.6 million generating an $8.2 million gain. The net interest margin was reported at a robust 5.1%, and the return on purchased loans was 8.76%. The bank's earnings per share were $3.06 basic and $3.00 fully diluted, with a return on equity of 20.73% and a return on assets of 2.38%. The allowance for credit losses over gross loans was 1.28% as of the end of June. Additionally, total revenue for the quarter was $62.7 million, while noninterest expense stood at $21.5 million, influenced by a compensation expense true-up.Northeast Bancorp Financial Statement Overview
Summary
Northeast Bancorp exhibits strong financial health with impressive revenue and profit growth, efficient operations, and stable leverage levels. Income metrics show robust performance, though cash flow from operations is an area for potential improvement.Income Statement
Northeast Bancorp shows a strong income statement with impressive growth. The TTM (Trailing-Twelve-Months) Gross Profit Margin is 56.52%, and the Net Profit Margin is 23.30%, indicating efficient cost management and strong profitability. Revenue growth from 2024 to TTM is notable at 20.82%, showcasing robust top-line growth. EBIT and EBITDA margins are solid at 35.06% and 36.03% respectively, reflecting operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of Northeast Bancorp reflects a stable financial position. The Debt-to-Equity Ratio is 0.85, suggesting a moderate level of leverage. Return on Equity (ROE) is strong at 15.69%, indicating effective use of equity in generating profits. The Equity Ratio stands at 11.05%, which is relatively low, but typical for the banking industry, indicating reliance on liabilities for asset financing.75
Positive
Cash Flow
The cash flow statement presents a mixed picture. The Free Cash Flow growth is significant, and the Operating Cash Flow to Net Income Ratio is 0.05, indicating some conversion of income to cash but not robustly. The Free Cash Flow to Net Income Ratio is 0.04, suggesting limited free cash flow relative to net income. Investment in future growth is evident, but cash flow from operations needs improvement.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 345.37M | 351.00M | 260.51M | 179.91M | 109.78M | 146.89M |
| Gross Profit | 198.46M | 204.09M | 149.43M | 119.24M | 107.13M | 137.25M |
| EBITDA | 128.06M | 125.70M | 91.18M | 68.43M | 64.15M | 103.69M |
| Net Income | 83.44M | 83.44M | 58.23M | 44.19M | 42.16M | 71.50M |
Balance Sheet | ||||||
| Total Assets | 4.28B | 4.28B | 3.13B | 2.87B | 1.58B | 2.17B |
| Cash, Cash Equivalents and Short-Term Investments | 428.93M | 428.93M | 291.04M | 251.31M | 226.99M | 1.07B |
| Total Debt | 339.24M | 339.24M | 365.44M | 584.53M | 34.45M | 36.11M |
| Total Liabilities | 3.78B | 3.78B | 2.76B | 2.57B | 1.33B | 1.94B |
| Stockholders Equity | 494.29M | 494.29M | 376.63M | 296.66M | 248.32M | 232.39M |
Cash Flow | ||||||
| Free Cash Flow | 53.42M | 53.42M | 111.00K | 57.64M | 29.44M | 7.08M |
| Operating Cash Flow | 54.13M | 54.13M | 2.56M | 60.11M | 30.50M | 8.34M |
| Investing Cash Flow | -919.85M | -919.85M | -158.25M | -1.23B | -248.95M | 27.46M |
| Financing Cash Flow | 1.04B | 1.04B | 199.94M | 1.20B | -619.96M | 831.03M |
Northeast Bancorp Technical Analysis
Negative
91.43
Price Trends
103.52
Negative
96.52
Negative
95.00
Negative
Market Momentum
-3.50
Positive
27.82
Positive
8.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBN, the sentiment is Negative. The current price of 91.43 is below the 20-day moving average (MA) of 102.13, below the 50-day MA of 103.52, and below the 200-day MA of 95.00, indicating a bearish trend. The MACD of -3.50 indicates Positive momentum. The RSI at 27.82 is Positive, neither overbought nor oversold. The STOCH value of 8.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NBN.
Northeast Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $852.83M | 18.47 | 19.30% | 0.68% | 16.76% | 12.84% | |
76 Outperform | $789.46M | 7.83 | 14.78% | 2.06% | 6.94% | 3.96% | |
74 Outperform | $822.10M | 10.43 | 9.02% | 3.01% | 5.94% | 12.97% | |
73 Outperform | $729.40M | 9.07 | 19.16% | 0.04% | 33.02% | 33.76% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $807.43M | 12.91 | 5.92% | 5.59% | 6.49% | ― | |
58 Neutral | $761.09M | ― | 0.44% | 1.97% | -6.88% | -131.00% |
* Financial Sector Average
NBN
Northeast Bancorp
91.43
7.84
9.38%
CFFN
Capitol Federal Financial
6.08
0.50
8.96%
UVSP
Univest Of Pennsylvania
28.54
1.44
5.31%
ESQ
Esquire Financial Holdings
99.88
36.07
56.53%
AMAL
Amalgamated Bank
26.22
-6.80
-20.59%
AMTB
Amerant Bancorp
18.23
-1.86
-9.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.