Northeast Bancorp Reports Strong Q3 Earnings Growth

Northeast Bancorp ( (NBN) ) has released its Q3 earnings. Here is a breakdown of the information Northeast Bancorp presented to its investors.

Northeast Bancorp, a Maine-based financial institution, offers personal and business banking services and operates a National Lending Division that purchases and originates commercial loans across the United States. The bank reported a substantial increase in net income for the third quarter, with earnings rising to $18.7 million, or $2.23 per diluted share, compared to $13.9 million, or $1.83 per diluted share, in the same period last year. For the nine months ending March 31, 2025, net income reached $58.2 million, reflecting a significant growth from $43.1 million in the previous year. The Board of Directors declared a cash dividend of $0.01 per share, payable on May 27, 2025.

Key highlights from the earnings report include a robust performance from the National Lending Division, which generated $292.5 million in loan volume during the third quarter. The bank’s SBA 7(a) program also showed impressive growth, with originations reaching $121.3 million, up from $29.0 million in the same quarter last year. Total assets increased by 35% to $4.23 billion, driven by a significant rise in deposits and loan growth. The bank’s loan portfolio expanded by $1.04 billion, or 37.7%, since June 2024, with notable contributions from both purchased and originated loans.

The bank’s financial performance was bolstered by a $9.5 million increase in net interest and dividend income, primarily due to higher average balances in the National Lending Division and SBA portfolios. Noninterest income saw a $5.1 million boost, largely from gains on the sale of SBA loans. However, the provision for credit losses increased to $2.9 million, reflecting loan growth and higher reserves on the SBA portfolio. Noninterest expenses rose by $3.7 million, driven by higher salaries, loan expenses, and FDIC insurance costs.

Looking ahead, Northeast Bancorp remains focused on expanding its loan portfolio and maintaining strong financial performance. The bank’s management is optimistic about future growth prospects, supported by strategic initiatives and continued demand for its lending products.