Northeast Bancorp (NBN) AI Stock Analysis

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Northeast Bancorp

(NASDAQ:NBN)

Rating:75Outperform

Price Target:

$108.00

▲(3.78%Upside)

Northeast Bancorp's strong financial performance and attractive valuation are the most significant factors driving its favorable stock score. While technical indicators caution against overbought conditions, the earnings call's positive loan growth and income increase, despite some challenges, further support its overall appeal.

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

Market Cap

$779.10M

Dividend Yield0.04%

Average Volume (3M)110.43K

Price to Earnings (P/E)9.7

Beta (1Y)0.80

Revenue Growth33.02%

EPS Growth33.76%

CountryUS

Employees194

SectorFinancial

Sector Strength73

IndustryBanks - Regional

Share Statistics

EPS (TTM)3.00

Shares Outstanding7,977,690

10 Day Avg. Volume95,752

30 Day Avg. Volume110,426

Financial Highlights & Ratios

PEG Ratio2.33

Price to Book (P/B)1.75

Price to Sales (P/S)0.00

P/FCF Ratio261.07

Enterprise Value/Market Cap0.97

Enterprise Value/Revenue4.23

Enterprise Value/Gross Profit17.50

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$100.00

Price Target Upside-3.91% Downside

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 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: 6.56%|

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call for Northeast Bank highlighted a strong financial performance with record net income and robust loan activity. However, challenges such as a potential decline in SBA volume, increased competition in loan purchases, and increased noninterest expenses were noted. Despite these challenges, the overall financial performance was strong.

Q4-2025 Updates

Positive Updates

Record Net Income for the Quarter

Net income for the quarter was $25.2 million, excluding large sales of PPP loans, marking a record achievement for the company.

Strong Loan Activity

Loan originations and purchases totaled $362.6 million for the quarter and $2.1 billion for the fiscal year, showcasing robust loan activity.

Significant SBA Growth

SBA originations were $107.3 million for the quarter and $408.5 million for the year, with a gain of $8.2 million on loan sales.

High Return on Equity and Assets

Return on equity was a strong 20.73%, and return on assets was a very strong 2.38%.

Strong Revenue and Margin Performance

Total revenue for the quarter was $62.7 million, with a net interest margin of 5.1%.

Negative Updates

SBA Volume Decline Expected

SBA lending volume is expected to temporarily dip as much as 50% due to tighter eligibility requirements and longer processing times.

Increased Noninterest Expense

Noninterest expense for the quarter was $21.5 million, higher than in preceding quarters due to a true-up of compensation expense.

Potential Risks in Multifamily Exposure

Concerns regarding $44 million in loans where a rent freeze could impact debt service coverage if extended.

Increased Competition in Loan Purchases

More competition is noted in the purchase loan market, with larger pools being the most competitive.

Company Guidance

During the Northeast Bank Fourth Quarter and Fiscal Year 2025 Earnings Conference Call, CEO Rick Wayne highlighted several key financial metrics demonstrating a strong performance. The bank achieved a record net income of $25.2 million for the quarter, excluding the effects of PPP loan sales. Loan originations and purchases totaled $362.6 million for the quarter and $2.1 billion for the fiscal year, with a weighted average rate of approximately 8%. The SBA loan originations also performed robustly, amounting to $107.3 million for the quarter. The bank's net interest margin stood at a notable 5.1%, while the return on equity and assets were recorded at 20.73% and 2.38%, respectively. The tangible book value per share was approximately $58. On the asset quality front, the allowance for credit losses over gross loans increased to 1.28% by the end of June. Despite a temporary dip expected in SBA lending volume due to regulatory changes, the bank remains optimistic about future prospects. Additionally, plans for significant investment in technology to drive further efficiency were discussed, indicating potential increases in expenses.

Northeast Bancorp Financial Statement Overview

Summary

Northeast Bancorp demonstrates strong financial health with notable revenue and profit growth, efficient operations, and stable leverage levels. The income statement and balance sheet reflect robust performance, typical banking leverage, and potential areas for improvement in cash flow from operations.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	260.51M	179.91M	109.78M	146.89M	94.81M
Gross Profit	149.43M	119.24M	107.13M	137.25M	71.61M
EBITDA	91.18M	68.43M	64.15M	103.69M	36.23M
Net Income	58.23M	44.19M	42.16M	71.50M	22.74M
Balance Sheet
Total Assets	3.13B	2.87B	1.58B	2.17B	1.26B
Cash, Cash Equivalents and Short-Term Investments	291.04M	251.31M	226.99M	1.07B	208.57M
Total Debt	365.44M	584.53M	34.45M	36.11M	59.32M
Total Liabilities	2.76B	2.57B	1.33B	1.94B	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

Technical Analysis Sentiment

Positive

Last Price104.07

Price Trends

50DMA

88.95

Positive

100DMA

88.72

Positive

200DMA

92.54

Positive

Market Momentum

MACD

2.78

Negative

RSI

75.60

Negative

STOCH

68.60

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 104.07 is above the 20-day moving average (MA) of 96.10, above the 50-day MA of 88.95, and above the 200-day MA of 92.54, indicating a bullish trend. The MACD of 2.78 indicates Negative momentum. The RSI at 75.60 is Negative, neither overbought nor oversold. The STOCH value of 68.60 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

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCBC	80 Outperform	$707.50M	14.18	9.91%	8.72%	0.89%	-2.22%
HBT	78 Outperform	$809.12M	10.59	14.08%	3.11%	4.86%	7.89%
OSBC	78 Outperform	$798.85M	9.66	12.51%	1.36%	1.99%	-2.80%
NBN	75 Outperform	$779.10M	9.69	19.16%	0.04%	33.02%	33.76%
MCBS	71 Outperform	$753.66M	11.56	15.67%	3.23%	4.94%	20.77%
CPF	71 Outperform	$737.79M	12.27	11.16%	3.88%	2.82%	6.88%
Sector *	58 Neutral	HK$92.81B	5.77	-3.20%	4.92%	5.50%	-56.25%

* Financial Sector Average

Performance Comparison

NBN

Northeast Bancorp

104.07

35.58

51.95%

CPF

Central Pacific Financial

27.32

2.43

9.76%

FCBC

First Community Bancshares

36.94

-4.11

-10.01%

OSBC

Old Second Bancorp

17.28

1.31

8.20%

MCBS

MetroCity Bankshares

27.99

-0.74

-2.58%

HBT

HBT Financial

24.97

3.45

16.03%

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 05, 2025