Northeast Bancorp (NBN) AI Stock Analysis

• Market Cap: $893.66M
• Dividend Yield: 0.04%
• Average Volume (3M): 82.91K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.90
• Revenue Growth: 33.22%
• EPS Growth: 38.44%
• Country: US
• Employees: 194
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.67
• Shares Outstanding: 7,977,690
• 10 Day Avg. Volume: 127,598
• 30 Day Avg. Volume: 82,908
• PEG Ratio: 0.25
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 13.48
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 3.41
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 9.14
• 1Y Price Target: $117.50
• Price Target Upside: 1.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $128.00 ▲(10.80% Upside)

The score is driven primarily by strong underlying financial performance (growth and profitability with solid ROE), supported by attractive valuation (low P/E and solid yield). Technicals are constructive with a clear uptrend, though momentum looks stretched (high RSI). The latest earnings call was overall positive but flagged meaningful SBA-related and net interest income headwinds that temper the rating.

Positive Factors

High Profitability & ROE

Sustained high net margin and strong ROE indicate efficient core banking operations and profitable loan mix. Over months, this supports internal capital generation, funds growth initiatives, and provides a durable buffer against cyclical revenue swings without relying solely on external financing.

Robust Loan Purchases and Originations

A healthy pipeline of loan purchases and originations expands interest-earning assets and diversifies credit exposure. Consistent loan deployment sustains net interest income over months, supports balance sheet growth, and evidences underwriting capacity and market access in its regional franchise.

New Insured Small Business Loan Product

Introducing an insured SMB loan product creates annuity-style fee and interest streams and differentiates product mix. Over the medium term this can diversify revenue, deepen small-business relationships, and raise recurring noninterest income without materially increasing credit risk.

Negative Factors

Weak Operating Cash Conversion

Very low conversion of reported earnings into operating cash suggests earnings include non-cash items or timing differences. Persistently weak conversion can pressure liquidity, constrain investment flexibility, and raise questions about earnings quality over the coming months.

Decline in SBA Gains (Regulatory)

Regulatory rule changes reduced SBA sale gains materially. As these gains historically supplemented noninterest income, sustained lower SBA proceeds would structurally cut fee revenue, pressuring profitability and requiring offsetting loan or fee growth to maintain earnings.

Pressure on Net Interest Income

A material drop in pre-provision NII reflects lower earning asset balances and transactional revenue. If balances or transaction levels don't recover, core interest income sustainability is at risk, reducing the bank's primary earnings engine and limiting margin resilience over the medium term.

Northeast Bancorp Business Overview & Revenue Model

Company Description

Northeast 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 Money

Northeast Bancorp generates revenue primarily through interest income from loans and fees associated with various banking services. The company's key revenue streams include interest earned on commercial and residential loans, which constitute a significant portion of its income. Additionally, NBN earns fee income from services such as deposit accounts, ATM transactions, and wealth management services. The bank also engages in mortgage banking, which contributes to its earnings through origination fees and servicing rights. Strategic partnerships with local businesses and community organizations further enhance its market presence and customer acquisition efforts, positively impacting its overall financial performance.

Northeast Bancorp Financial Statement Overview

Summary

Northeast Bancorp exhibits strong financial health with robust revenue and profit growth, efficient operations, and a balanced capital structure. While cash flow generation is impressive, enhancing operational cash conversion remains a key area for improvement. The company's financial statements reflect a positive outlook with stable profitability and growth potential.

Income Statement

Northeast Bancorp has demonstrated strong revenue growth of 11.53% in the latest year, supported by a solid gross profit margin of 58.14%. The net profit margin of 23.77% indicates robust profitability. EBIT and EBITDA margins are healthy at 35.81%, reflecting efficient operations. Overall, the income statement shows a positive growth trajectory and stable profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.69, indicating a balanced approach to leverage. Return on equity is strong at 16.88%, showcasing effective use of shareholder funds. The equity ratio of 11.55% suggests a conservative capital structure. The balance sheet reflects financial stability with manageable leverage.

Cash Flow

Free cash flow has grown significantly by 1653.78%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low at 0.016, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio is high at 0.99, highlighting efficient cash management. Overall, cash flow performance is strong with room for improvement in operational cash conversion.

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	128.84M	128.84M	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	291.14M	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

• Technical Analysis Sentiment: Positive
• Last Price: 115.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 115.52 is above the 20-day moving average (MA) of 107.41, above the 50-day MA of 96.37, and above the 200-day MA of 94.43, indicating a bullish trend. The MACD of 3.97 indicates Negative momentum. The RSI at 70.95 is Negative, neither overbought nor oversold. The STOCH value of 78.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBN.

Northeast Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBN	79 Outperform	$893.66M	10.53	19.62%	0.04%	33.22%	38.44%
ESQ	79 Outperform	$900.15M	18.47	19.19%	0.66%	17.98%	14.35%
AMAL	78 Outperform	$1.01B	10.16	13.88%	1.70%	4.33%	-2.20%
UVSP	76 Outperform	$933.15M	10.97	9.61%	2.59%	4.49%	20.44%
CFFN	71 Outperform	$880.64M	12.82	6.53%	4.73%	6.27%	79.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AMTB	67 Neutral	$844.71M	12.91	7.21%	1.79%	15.37%	―