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Northeast Bancorp
(NASDAQ:NBN)
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Rating:66Neutral
Price Target:
$143.00
▲(12.10% Upside)
Action:Downgraded
Date:09/06/26
The score is driven primarily by mixed fundamentals: strong profitability and growth are meaningfully offset by negative/volatile cash flow and higher leverage. Valuation is supportive (low P/E and a ~3% yield), while technicals are neutral with slightly negative momentum. The earnings call was constructive with stable-margin guidance and strong execution, but highlighted funding repricing and balance-sheet exposure risks.
Positive Factors
Record profitability and loan growth
Record earnings combined with 21% loan growth indicate strong execution and expanding earning assets. This supports durable revenue generation and internal capital formation, although the quality and cash conversion of that growth remain important to sustaining profitability over the next several quarters.
Negative Factors
Higher and less stable leverage
The sharp leverage increase makes the capital structure more sensitive to adverse credit, funding, or earnings conditions. Greater reliance on debt can constrain strategic flexibility and raise the consequences of asset-quality deterioration, even though current returns and capital ratios remain strong.
Read all positive and negative factors
Positive Factors
Negative Factors
Record profitability and loan growth
Record earnings combined with 21% loan growth indicate strong execution and expanding earning assets. This supports durable revenue generation and internal capital formation, although the quality and cash conversion of that growth remain important to sustaining profitability over the next several quarters.
Read all positive factors
Northeast Bancorp (NBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.14B
Dividend Yield0.03%
Average Volume (3M)110.83K
Price to Earnings (P/E)10.3
Beta (1Y)0.95
Revenue Growth9.28%
EPS Growth25.70%
CountryUS
Employees222
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)12.93
Shares Outstanding8,555,360
10 Day Avg. Volume92,575
30 Day Avg. Volume110,826
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)1.82
Price to Sales (P/S)2.86
P/FCF Ratio-17.20
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$151.00Price Target Upside18.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)14.5
Revenue Forecast (FY)$279.49M
Northeast Bancorp Business Overview & Revenue Model
Company Description
Headquartered in Portland, Maine, and established in 1872, Northeast Bank delivers a broad spectrum of banking and financial solutions to individuals and businesses throughout the state. Its diverse deposit offerings encompass checking, savings, m...
How the Company Makes Money
Northeast Bancorp primarily makes money through traditional banking and specialty lending activities. (1) Net interest income: The core earnings driver is the spread between interest income earned on loans and other interest-earning assets and the...
Northeast Bancorp Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call communicated a strongly positive performance: record annual earnings, meaningful loan growth (21% YoY), rising tangible book value (22% YoY), solid capital ratios and improved asset quality. Challenges were noted around margin compression versus the linked quarter, difficulty selling a portion of insured small-balance loans (leading to higher on‑balance-sheet exposure), competitive pressures in large purchase pools, and headwinds in SBA small-balance origination driven by regulatory changes. On balance, the company demonstrated broad financial strength and execution with manageable operational and market challenges.Positive Updates
Record Annual Net Income and Strong Quarterly Earnings
Q4 net income of $34.3M ($4.05 per diluted share) with ROE 23.5% and ROA 2.7%. Fiscal year net income was a record $107.5M, up $24.1M or 29% versus FY25 ($83.4M); FY diluted EPS $12.74, ROE 19.7% and ROA 2.3%.
Negative Updates
NIM and Linked-Quarter Compression
NIM declined from 5.15% in the linked quarter to 4.8%, and net interest income before provision decreased to $60.3M from $63.1M, largely due to lower accelerated accretion on the purchased loan book.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual Net Income and Strong Quarterly Earnings
Q4 net income of $34.3M ($4.05 per diluted share) with ROE 23.5% and ROA 2.7%. Fiscal year net income was a record $107.5M, up $24.1M or 29% versus FY25 ($83.4M); FY diluted EPS $12.74, ROE 19.7% and ROA 2.3%.
Read all positive updates
Company Guidance
Management's guidance was that core margin and funding should remain largely stable: NIM held at 4.8% and management expects it to stay relatively steady (after excluding transactional income) with purchased-loan yields near 8–8.6% (total return ~9.3%) and originated yields around ~7.7% (SOFR+400; quarter originations averaged ~7.25%); cost of funds should hover near 3.59% even as roughly $600M of CDs roll over in the next 14 months ($300M brokered, $300M retail). They expect provisions to normalize after a fiscal-year release (~$0.5M) and a small quarterly provision ($0.68M), noting new originations carry a general allowance of ~45 bps while purchase‑loan reserves come out of purchase price. Expenses may tick up by about $1M next quarter but the bank expects operating leverage from technology (efficiency ratio ~36%) rather than material headcount increases; FY‑27 tax rate is guided to be about 28–29% after this quarter’s tax-credit benefit. Capital and growth targets remain intact—tangible book $70.58/sh, Tier 1 leverage ~11.9%, total risk‑based capital 14.7% (implying ~$1.5B of loan capacity)—and management reiterated confidence in continued strong loan volumes (Q4 loans $389.8M; Q4 national originations $257.3M; FY originations $897.4M and purchases $797.3M) while holding insured small‑balance loans with 25% insurance and high nominal yields.Northeast Bancorp Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 385.07M | 351.00M | 260.51M | 179.91M | 109.78M |
| Gross Profit | 236.96M | 204.09M | 149.43M | 119.24M | 107.13M |
| EBITDA | 147.18M | 128.84M | 91.18M | 68.43M | 64.15M |
| Net Income | 107.48M | 83.44M | 58.23M | 44.19M | 42.16M |
Balance Sheet | |||||
| Total Assets | 5.23B | 4.28B | 3.13B | 2.87B | 1.58B |
| Cash, Cash Equivalents and Short-Term Investments | 2.91M | 428.93M | 291.14M | 251.31M | 226.99M |
| Total Debt | 857.74M | 339.24M | 365.44M | 584.53M | 34.45M |
| Total Liabilities | 4.62B | 3.78B | 2.76B | 2.57B | 1.33B |
| Stockholders Equity | 603.85M | 494.29M | 376.63M | 296.66M | 248.32M |
Cash Flow | |||||
| Free Cash Flow | -63.99M | 53.42M | 111.00K | 57.64M | 29.44M |
| Operating Cash Flow | -62.54M | 54.13M | 2.56M | 60.11M | 30.50M |
| Investing Cash Flow | -742.16M | -919.85M | -158.25M | -1.23B | -248.95M |
| Financing Cash Flow | 825.46M | 1.04B | 199.94M | 1.20B | -619.96M |
Northeast Bancorp Technical Analysis
Positive
127.57
Price Trends
131.15
Positive
127.45
Positive
118.01
Positive
Market Momentum
-0.31
Negative
54.79
Neutral
85.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBN, the sentiment is Positive. The current price of 127.57 is below the 20-day moving average (MA) of 131.13, below the 50-day MA of 131.15, and above the 200-day MA of 118.01, indicating a bullish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 85.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.47B | 12.97 | 14.12% | 1.32% | 9.56% | 12.20% | |
79 Outperform | $1.44B | 18.76 | 17.82% | 0.65% | 19.99% | 10.00% | |
74 Outperform | $1.17B | 12.13 | 10.41% | 2.13% | 2.41% | 26.67% | |
68 Neutral | $1.16B | 21.26 | 6.62% | 1.21% | 5.13% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $1.11B | 13.65 | 8.01% | 4.28% | 7.53% | 38.21% | |
66 Neutral | $1.14B | 10.28 | 19.35% | 0.03% | 9.28% | 25.70% |
* Financial Sector Average
NBN
Northeast Bancorp
132.86
22.67
20.57%
CFFN
Capitol Federal Financial
8.87
2.72
44.34%
UVSP
Univest Of Pennsylvania
42.35
11.76
38.46%
ESQ
Esquire Financial Holdings
118.96
21.50
22.07%
AMAL
Amalgamated Bank
49.17
20.73
72.88%
AMTB
Amerant Bancorp
29.68
8.58
40.69%
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.