Northeast Bancorp (NBN) AI Stock Analysis

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Northeast Bancorp

(NASDAQ:NBN)

Rating:79Outperform

Price Target:

$115.00

▲(6.21% Upside)

Northeast Bancorp's strong financial performance and positive earnings call are significant contributors to its high stock score. Technical indicators support a positive outlook, though the stock is nearing overbought levels. Valuation metrics suggest the stock is undervalued, making it an attractive investment opportunity with potential growth. While there are some potential risks noted in the earnings call, the overall financial health and market position are strong.

Northeast Bancorp (NBN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$814.36M

Dividend Yield0.04%

Average Volume (3M)107.16K

Price to Earnings (P/E)10.1

Beta (1Y)0.82

Revenue Growth33.02%

EPS Growth33.76%

CountryUS

Employees194

SectorFinancial

Sector Strength69

IndustryBanks - Regional

Share Statistics

EPS (TTM)3.00

Shares Outstanding7,977,690

10 Day Avg. Volume89,309

30 Day Avg. Volume107,155

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.33

Enterprise Value/Revenue3.45

Enterprise Value/Gross Profit6.10

Enterprise Value/Ebitda9.57

Forecast

1Y Price Target

$100.00

Price Target Upside-7.65% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Northeast Bancorp Business Overview & Revenue Model

Company DescriptionNortheast Bancorp (NBN) is a financial holding company headquartered in Lewiston, Maine. The company primarily operates through its subsidiary, Northeast Bank, providing a comprehensive range of banking and financial services. It focuses on offering savings accounts, checking accounts, money market accounts, certificates of deposit, commercial loans, residential loans, and other personal banking products. Northeast Bancorp serves individual, commercial, and municipal customers across various sectors, emphasizing personalized banking solutions and community-focused services.

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: 10.87%|

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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	314.71M	260.51M	179.91M	109.78M	146.89M	94.81M
Gross Profit	177.86M	149.43M	119.24M	107.13M	137.25M	71.61M
EBITDA	113.39M	91.18M	68.43M	64.15M	103.69M	36.23M
Net Income	73.37M	58.23M	44.19M	42.16M	71.50M	22.74M
Balance Sheet
Total Assets	4.23B	3.13B	2.87B	1.58B	2.17B	1.26B
Cash, Cash Equivalents and Short-Term Investments	361.51M	291.04M	251.31M	226.99M	1.07B	208.57M
Total Debt	398.01M	365.44M	584.53M	34.45M	36.11M	59.32M
Total Liabilities	3.76B	2.76B	2.57B	1.33B	1.94B	1.09B
Stockholders Equity	467.52M	376.63M	296.66M	248.32M	232.39M	164.74M
Cash Flow
Free Cash Flow	3.05M	111.00K	57.64M	29.44M	7.08M	15.15M
Operating Cash Flow	3.82M	2.56M	60.11M	30.50M	8.34M	16.31M
Investing Cash Flow	-995.48M	-158.25M	-1.23B	-248.95M	27.46M	1.50M
Financing Cash Flow	1.13B	199.94M	1.20B	-619.96M	831.03M	68.94M

Northeast Bancorp Technical Analysis

Technical Analysis Sentiment

Positive

Last Price108.28

Price Trends

50DMA

94.68

Positive

100DMA

90.04

Positive

200DMA

93.86

Positive

Market Momentum

MACD

2.66

Negative

RSI

68.72

Neutral

STOCH

82.95

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 108.28 is above the 20-day moving average (MA) of 99.67, above the 50-day MA of 94.68, and above the 200-day MA of 93.86, indicating a bullish trend. The MACD of 2.66 indicates Negative momentum. The RSI at 68.72 is Neutral, neither overbought nor oversold. The STOCH value of 82.95 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

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSBC	81 Outperform	$920.86M	9.55	12.51%	1.37%	2.02%	-2.80%
NBN	79 Outperform	$814.36M	10.13	19.16%	0.04%	33.02%	33.76%
CPF	77 Outperform	$793.52M	13.17	11.16%	3.44%	2.81%	6.88%
FCBC	76 Outperform	$662.63M	13.28	9.91%	9.23%	0.89%	-2.22%
HBT	75 Outperform	$791.48M	10.37	14.08%	3.25%	4.86%	7.89%
MCBS	72 Outperform	$725.53M	11.05	15.67%	3.12%	4.92%	20.83%
Sector *	67 Neutral	¥850.21B	13.22	9.24%	2.92%	7.76%	9.30%

* Financial Sector Average

Performance Comparison

NBN

Northeast Bancorp

108.28

38.32

54.77%

CPF

Central Pacific Financial

30.77

4.15

15.59%

FCBC

First Community Bancshares

38.31

-2.61

-6.38%

OSBC

Old Second Bancorp

18.39

2.10

12.89%

MCBS

MetroCity Bankshares

30.09

1.35

4.70%

HBT

HBT Financial

26.58

4.64

21.15%

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.Date of analysis: Jul 31, 2025