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Northeast Bancorp (NBN)
NASDAQ:NBN
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Northeast Bancorp
(NASDAQ:NBN)
71Outperform
Northeast Bancorp (NBN) vs. S&P 500 (SPY)
Market Cap
$666.70M
Dividend Yield0.05%
Average Volume (3M)44.39K
Price to Earnings (P/E)9.3
Beta (1Y)0.81
Revenue Growth26.40%
EPS Growth24.62%
CountryUS
Employees194
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)8.99
Shares Outstanding7,977,690
10 Day Avg. Volume40,014
30 Day Avg. Volume44,394
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.75
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.41
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$106.50Price Target Upside27.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Northeast Bancorp Business Overview & Revenue Model
Company DescriptionNortheast 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 MoneyNortheast Bancorp makes money through the interest earned on loans and advances, which is a primary revenue stream. The company provides commercial loans, small business loans, and consumer loans, charging interest rates that constitute a significant portion of its income. Additionally, Northeast Bancorp generates revenue from service charges on deposit accounts, asset management fees, and other financial services. The bank also engages in the purchase and sale of loans, which can contribute to its earnings. Strategic partnerships with financial institutions and service providers enhance its product offerings and can influence revenue growth.
Northeast Bancorp Financial Statement Overview
Summary
Northeast Bancorp exhibits a strong financial position with robust profitability and cash flow generation. The company effectively manages costs and maintains a healthy balance between leveraging debt and equity. However, slight fluctuations in operational costs and moderate reliance on liabilities present potential risks.Income Statement
Northeast Bancorp has demonstrated strong income statement performance. The TTM Gross Profit Margin is impressive, indicating efficient cost management. The Net Profit Margin is robust, supported by steady revenue growth. However, there was a slight decline in EBIT Margin, suggesting increased operational costs in recent periods.78
Positive
Balance Sheet
The balance sheet reflects a solid equity position with a reasonable Debt-to-Equity Ratio, indicating manageable leverage. The Return on Equity shows healthy profitability from shareholders' investments. However, the Equity Ratio suggests moderate reliance on liabilities, which could pose risk if market conditions change.72
Positive
Cash Flow
Cash flow analysis reveals strong Free Cash Flow growth, with consistent Operating Cash Flow surpassing Net Income, indicating good cash-generating ability. The Free Cash Flow to Net Income ratio is favorable, highlighting efficient capital expenditure management.81
Very Positive
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 263.77M | 121.54M | 104.67M | 135.85M | 76.11M | Gross Profit |
| 263.77M | 121.54M | 104.67M | 135.85M | 76.11M | EBIT |
| 89.38M | 65.22M | 66.66M | 101.09M | 33.28M | EBITDA |
| 91.18M | 68.43M | 64.15M | 103.69M | 36.23M | Net Income Common Stockholders |
| 58.23M | 44.19M | 42.16M | 71.50M | 22.74M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 242.16M | 251.31M | 226.99M | 1.07B | 208.57M | Total Assets |
| 3.13B | 2.87B | 1.58B | 2.17B | 1.26B | Total Debt |
| 365.44M | 584.53M | 19.45M | 36.11M | 46.88M | Net Debt |
| 123.28M | 386.62M | -152.63M | -974.38M | -96.78M | Total Liabilities |
| 2.76B | 2.57B | 1.33B | 36.11M | 1.09B | Stockholders Equity |
| 376.63M | 296.66M | 248.32M | 232.39M | 164.74M |
| Cash Flow | Free Cash Flow | |||
| 111.00K | 57.64M | 29.44M | 7.08M | 15.15M | Operating Cash Flow |
| 2.56M | 60.11M | 30.50M | 8.34M | 16.31M | Investing Cash Flow |
| -158.25M | -1.23B | -248.95M | 27.46M | 1.50M | Financing Cash Flow |
| 199.94M | 1.20B | -619.96M | 831.03M | 68.94M |
Northeast Bancorp Technical Analysis
Negative
83.57
Price Trends
91.26
Negative
94.99
Negative
86.97
Negative
Market Momentum
-1.15
Positive
37.33
Neutral
23.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBN, the sentiment is Negative. The current price of 83.57 is below the 20-day moving average (MA) of 86.66, below the 50-day MA of 91.26, and below the 200-day MA of 86.97, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 37.33 is Neutral, neither overbought nor oversold. The STOCH value of 23.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NBN.
Northeast Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $754.73M | 10.01 | 14.24% | 3.38% | 6.98% | 5.97% | |
75 Outperform | $722.71M | 11.05 | 16.05% | 3.20% | 8.80% | 30.31% | |
75 Outperform | $710.71M | 14.11 | 10.08% | 3.22% | 2.49% | 4.48% | |
74 Outperform | $733.82M | 8.90 | 12.98% | 1.44% | 1.64% | -6.70% | |
71 Outperform | $666.70M | 9.29 | 17.91% | 0.05% | 26.40% | 24.62% | |
69 Neutral | $717.02M | 12.42 | 10.94% | 4.01% | 4.39% | 4.94% | |
64 Neutral | $12.65B | 9.74 | 8.04% | 17044.64% | 12.65% | -5.11% |
* Financial Sector Average
Performance Comparison
NBN
Northeast Bancorp
83.57
28.62
52.08%
CPF
Central Pacific Financial
26.58
6.54
32.63%
FCBC
First Community Bancshares
38.78
5.94
18.09%
OSBC
Old Second Bancorp
16.29
2.13
15.04%
MCBS
MetroCity Bankshares
28.45
4.27
17.66%
HBT
HBT Financial
23.86
5.35
28.90%
Northeast Bancorp Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q3-2025)
| % Change Since: -7.14%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong loan origination and significant growth in SBA loan volume, along with a year-over-year increase in net income. However, there were challenges such as a decrease in net interest income, increased tax rates, and reduced loan yields. These challenges slightly offset the positive achievements.Q3-2025 Updates
Positive Updates
Strong Loan Volume
Achieved $414 million in loan volume, with $218 million in originated loans marking the second-best quarter for commercial real estate loan originations.
SBA Loan Growth
SBA loan volume increased to $121.3 million from about $100 million in the linked quarter, with 1,069 loans originated, making them one of the highest SBA lenders by units.
Net Income Increase Year-over-Year
Net income of $18.7 million, $4.8 million higher than the same quarter a year ago.
Tangible Book Value Growth
Tangible book value increased to $54.84.
Negative Updates
Decrease in Net Interest Income
Net interest income down $2.5 million from the linked quarter, partly due to less accelerated income from loan payoffs and a shorter quarter by two days.
Increased Tax Rate
Tax rate increased to 36.7% from 33% in the previous quarter due to non-recurring tax expenses.
Reduced Loan Yields
SBA portfolio yield decreased significantly from 11.6% to 9.93%, primarily due to rate cuts.
Company Guidance
During the Northeast Bank Third Quarter Fiscal Year 2025 earnings call, several key financial metrics were highlighted, reflecting a strong quarter despite a decrease in net income compared to the previous linked quarter. The bank reported a loan volume of $414 million, comprising $74.6 million in purchased loans, $218 million in originated loans, and $121.3 million in SBA loans, marking substantial growth in the SBA segment. The net income stood at $18.7 million, which was $4.8 million higher than the same quarter last year but $3.7 million lower than the linked quarter. Return on equity (ROE) was 16.47%, and return on assets (ROA) was 1.86%, while the tangible book value reached $54.84. Notably, net interest income declined by $2.5 million due to less accelerated income from loan payoffs and a shorter quarter. Non-interest income increased by $700,000 to $6.6 million, primarily due to gains in the SBA sector. An uptick in the effective tax rate to 36.7% from 33% in the previous quarter was noted, attributed to the non-recurring tax expenses, including a $400,000 charge due to changes in Massachusetts tax law. The bank's provision for loan losses increased, with a significant portion attributable to the SBA segment. Overall, the results were underpinned by strong lending activity and a robust SBA loan origination pipeline, positioning the bank for continued growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.