Northeast Bancorp (NBN)
NASDAQ:NBN
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Northeast Bancorp
(NASDAQ:NBN)
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Rating:65Neutral
Price Target:
$126.00
▲(2.31% Upside)
Action:DowngradedDate:02/19/26
The score is driven primarily by mixed fundamentals: strong profitability/returns are tempered by a sharp TTM revenue decline and weak, volatile cash-flow conversion. The latest earnings call was constructive on near-term earnings improvement from large, well-priced loan growth and strong capital, but highlighted meaningful funding rollover and credit-cost risks. Technicals are supportive but not strongly bullish, while valuation (low P/E and ~3.4% yield) provides a favorable offset.
Positive Factors
High profitability and returns
Consistent mid-teens ROE and mid-single-digit ROA indicate durable earnings efficiency for a regional bank. Strong reported profitability supports internal capital generation, dividend capacity, and ability to fund growth without excessive external financing, improving long-term resilience.
Negative Factors
Volatile cash flow conversion
Severely weakened and inconsistent cash conversion undermines earnings quality and the bank's ability to self-fund growth or absorb shocks. Persistent FCF volatility increases dependence on wholesale funding and raises the risk that earnings are less sustainable than reported net income implies.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and returns
Consistent mid-teens ROE and mid-single-digit ROA indicate durable earnings efficiency for a regional bank. Strong reported profitability supports internal capital generation, dividend capacity, and ability to fund growth without excessive external financing, improving long-term resilience.
Read all positive factors
Northeast Bancorp (NBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$985.64M
Dividend Yield0.04%
Average Volume (3M)82.91K
Price to Earnings (P/E)10.4
Beta (1Y)0.93
Revenue Growth33.22%
EPS Growth38.44%
CountryUS
Employees194
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.47
Shares Outstanding7,977,690
10 Day Avg. Volume127,598
30 Day Avg. Volume82,908
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 Cap1.07
Enterprise Value/Revenue2.97
Enterprise Value/Gross Profit5.09
Enterprise Value/Ebitda8.05
Forecast
1Y Price Target
$133.00Price Target Upside8.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)12.33
Revenue Forecast (FY)$249.65M
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 chec...
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 s...
Northeast Bancorp Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call emphasized substantial, well‑priced loan growth (purchases at ~92.6% of UPB with ~10.8% yields and record originations at ~7.5%–7.6%), strong profitability metrics (quarterly EPS ~$2.47, ROE ~15.6%), and solid capital and loan capacity. Short‑term headwinds included a modest NIM decline (down 0.10 pp), a temporary drop in SBA gain‑on‑sale income due to the government shutdown (reducing EPS by ~ $0.50), higher allowance driven by purchased loans, and elevated near‑term funding rollover risk ( ~$1.25B of CDs maturing). Management expects the late‑quarter loan additions to be accretive to NII and earnings in coming quarters. Overall, the positives from growth, loan yields, capital strength, and pipeline opportunities outweigh the transitory challenges discussed.Positive Updates
Record Quarter Loan Volume / Balance Sheet Growth
Total loan additions just under $900 million for the quarter (purchases ~ $533M and originations $252M). Ending loans were $4.4 billion, up from $3.7 billion as of September 30, and total assets ended the quarter at $4.95 billion. Management expects the larger loan book to be accretive to future net interest income.
Negative Updates
Compression in Net Interest Margin
NIM declined to 4.49% from 4.59% in the linked quarter (down 0.10 percentage points). Management attributed the decline largely to timing (late-quarter purchases) and a lag in liability repricing, with ~ $1.25B of CDs maturing over the next six months at a weighted average rate of 4.05%.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter Loan Volume / Balance Sheet Growth
Total loan additions just under $900 million for the quarter (purchases ~ $533M and originations $252M). Ending loans were $4.4 billion, up from $3.7 billion as of September 30, and total assets ended the quarter at $4.95 billion. Management expects the larger loan book to be accretive to future net interest income.
Read all positive updates
Company Guidance
Management's guidance was that earnings should improve in coming quarters as the heavy December loan additions (just under $900M total: ~$575M UPB of purchased loans at a $532M purchase price, or 92.6% of UPB, and $252M of originations at a ~7.6% average origination rate) roll on to the balance sheet (loans $4.4B, total assets $4.95B), which should drive higher net interest income and an improving NIM (was 4.49% this quarter, down from 4.59%); the bank reported NII of $48.8M for the quarter ($97M YTD), net income $20.7M (EPS ≈ $2.47), ROA 1.87% and ROE 15.6%, and expects SBA originations to normalize to roughly $20M/month (~$50–60M/quarter) with ~8–9% gain‑on‑sale, noted $1.25B of CDs maturing in the next six months at a 4.05% weighted average (recent funding cost ~3.8%), and emphasized strong capital (Tier 1 leverage 12.2%, tangible book $62.65, ~ $1B loan capacity) and a very full pipeline driven in part by bank M&A.Northeast Bancorp Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
64
Positive
Cash Flow
39
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 355.23M | 351.00M | 260.51M | 179.91M | 109.78M | 146.89M |
| Gross Profit | 207.47M | 204.09M | 149.43M | 119.24M | 107.13M | 137.25M |
| EBITDA | 131.15M | 128.84M | 91.18M | 68.43M | 64.15M | 103.69M |
| Net Income | 87.18M | 83.44M | 58.23M | 44.19M | 42.16M | 71.50M |
Balance Sheet | ||||||
| Total Assets | 4.95B | 4.28B | 3.13B | 2.87B | 1.58B | 2.17B |
| Cash, Cash Equivalents and Short-Term Investments | 451.14M | 428.93M | 291.14M | 251.31M | 226.99M | 1.07B |
| Total Debt | 519.30M | 339.24M | 365.44M | 584.53M | 34.45M | 36.11M |
| Total Liabilities | 4.41B | 3.78B | 2.76B | 2.57B | 1.33B | 1.94B |
| Stockholders Equity | 536.02M | 494.29M | 376.63M | 296.66M | 248.32M | 232.39M |
Cash Flow | ||||||
| Free Cash Flow | 6.08M | 53.42M | 111.00K | 57.64M | 29.44M | 7.08M |
| Operating Cash Flow | 7.14M | 54.13M | 2.56M | 60.11M | 30.50M | 8.34M |
| Investing Cash Flow | -683.13M | -919.85M | -158.25M | -1.23B | -248.95M | 27.46M |
| Financing Cash Flow | 757.35M | 1.04B | 199.94M | 1.20B | -619.96M | 831.03M |
Northeast Bancorp Technical Analysis
Positive
123.15
Price Trends
114.76
Positive
108.59
Positive
103.31
Positive
Market Momentum
3.26
Negative
71.38
Negative
89.37
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 123.15 is above the 20-day moving average (MA) of 113.95, above the 50-day MA of 114.76, and above the 200-day MA of 103.31, indicating a bullish trend. The MACD of 3.26 indicates Negative momentum. The RSI at 71.38 is Negative, neither overbought nor oversold. The STOCH value of 89.37 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $977.86M | 16.46 | 18.78% | 0.66% | 17.98% | 14.35% | |
74 Outperform | $1.24B | 9.00 | 13.65% | 1.70% | 4.33% | -2.20% | |
73 Outperform | $1.04B | 10.37 | 9.82% | 2.59% | 4.49% | 20.44% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $985.64M | 10.41 | 17.34% | 0.04% | 33.22% | 38.44% | |
65 Neutral | $990.71M | 10.81 | 6.99% | 4.73% | 6.27% | 79.25% | |
56 Neutral | $961.52M | 15.23 | 5.64% | 1.79% | 15.37% | ― |
* Financial Sector Average
NBN
Northeast Bancorp
123.15
35.72
40.85%
CFFN
Capitol Federal Financial
7.62
2.70
54.72%
UVSP
Univest Of Pennsylvania
37.20
11.09
42.45%
ESQ
Esquire Financial Holdings
113.53
34.61
43.85%
AMAL
Amalgamated Bank
41.77
15.74
60.46%
AMTB
Amerant Bancorp
23.92
5.78
31.85%
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.