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Northeast Bancorp
(NASDAQ:NBN)
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Rating:72Outperform
Price Target:
$148.00
▲(14.52% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by strong profitability/returns and a positive earnings-call outlook (record results with stable margin/funding guidance), supported by an upward price trend and reasonable valuation (P/E ~10.9, ~3.0% yield). The main constraints are weak and volatile cash conversion versus reported earnings and some balance-sheet/funding-related risks highlighted on the call (higher leverage and upcoming CD repricing).
Positive Factors
Strong and improving profitability margins
Sustained high TTM margins and improving operating efficiency indicate durable core profitability. Strong net and operating margins provide recurring earnings power to absorb credit losses, fund investments and support shareholder returns over the next several quarters.
Negative Factors
Weak and volatile cash generation
Poor cash conversion versus reported earnings and high year-to-year volatility reduce flexibility to fund buybacks, dividends or loan growth without relying on external funding. This persistent conversion gap elevates long-term execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong and improving profitability margins
Sustained high TTM margins and improving operating efficiency indicate durable core profitability. Strong net and operating margins provide recurring earnings power to absorb credit losses, fund investments and support shareholder returns over the next several quarters.
Read all positive factors
Northeast Bancorp (NBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.06B
Dividend Yield0.03%
Average Volume (3M)82.91K
Price to Earnings (P/E)9.6
Beta (1Y)0.97
Revenue Growth9.28%
EPS Growth25.70%
CountryUS
Employees223
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)11.86
Shares Outstanding8,555,360
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$151.00Price Target Upside16.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)14.5
Revenue Forecast (FY)$279.49M
Northeast Bancorp Business Overview & Revenue Model
Company Description
Headquartered in Portland, Maine, and established in 1872, Northeast Bank delivers a broad spectrum of banking and financial solutions to individuals and businesses throughout the state. Its diverse deposit offerings encompass checking, savings, m...
How the Company Makes Money
Northeast Bancorp primarily makes money through its banking subsidiary by earning net interest income and generating non-interest income. (1) Net interest income: The bank funds itself largely through customer deposits and other borrowings, and le...
Northeast Bancorp Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q4-2026)
| Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call communicated a strongly positive performance: record annual earnings, meaningful loan growth (21% YoY), rising tangible book value (22% YoY), solid capital ratios and improved asset quality. Challenges were noted around margin compression versus the linked quarter, difficulty selling a portion of insured small-balance loans (leading to higher on‑balance-sheet exposure), competitive pressures in large purchase pools, and headwinds in SBA small-balance origination driven by regulatory changes. On balance, the company demonstrated broad financial strength and execution with manageable operational and market challenges.Positive Updates
Record Annual Net Income and Strong Quarterly Earnings
Q4 net income of $34.3M ($4.05 per diluted share) with ROE 23.5% and ROA 2.7%. Fiscal year net income was a record $107.5M, up $24.1M or 29% versus FY25 ($83.4M); FY diluted EPS $12.74, ROE 19.7% and ROA 2.3%.
Negative Updates
NIM and Linked-Quarter Compression
NIM declined from 5.15% in the linked quarter to 4.8%, and net interest income before provision decreased to $60.3M from $63.1M, largely due to lower accelerated accretion on the purchased loan book.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual Net Income and Strong Quarterly Earnings
Q4 net income of $34.3M ($4.05 per diluted share) with ROE 23.5% and ROA 2.7%. Fiscal year net income was a record $107.5M, up $24.1M or 29% versus FY25 ($83.4M); FY diluted EPS $12.74, ROE 19.7% and ROA 2.3%.
Read all positive updates
Company Guidance
Management's guidance was that core margin and funding should remain largely stable: NIM held at 4.8% and management expects it to stay relatively steady (after excluding transactional income) with purchased-loan yields near 8–8.6% (total return ~9.3%) and originated yields around ~7.7% (SOFR+400; quarter originations averaged ~7.25%); cost of funds should hover near 3.59% even as roughly $600M of CDs roll over in the next 14 months ($300M brokered, $300M retail). They expect provisions to normalize after a fiscal-year release (~$0.5M) and a small quarterly provision ($0.68M), noting new originations carry a general allowance of ~45 bps while purchase‑loan reserves come out of purchase price. Expenses may tick up by about $1M next quarter but the bank expects operating leverage from technology (efficiency ratio ~36%) rather than material headcount increases; FY‑27 tax rate is guided to be about 28–29% after this quarter’s tax-credit benefit. Capital and growth targets remain intact—tangible book $70.58/sh, Tier 1 leverage ~11.9%, total risk‑based capital 14.7% (implying ~$1.5B of loan capacity)—and management reiterated confidence in continued strong loan volumes (Q4 loans $389.8M; Q4 national originations $257.3M; FY originations $897.4M and purchases $797.3M) while holding insured small‑balance loans with 25% insurance and high nominal yields.Northeast Bancorp Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 375.47M | 351.00M | 260.51M | 179.91M | 109.78M | 146.89M |
| Gross Profit | 226.92M | 204.09M | 149.43M | 119.24M | 107.13M | 137.25M |
| EBITDA | 145.61M | 128.84M | 91.18M | 68.43M | 64.15M | 103.69M |
| Net Income | 98.35M | 83.44M | 58.23M | 44.19M | 42.16M | 71.50M |
Balance Sheet | ||||||
| Total Assets | 5.03B | 4.28B | 3.13B | 2.87B | 1.58B | 2.17B |
| Cash, Cash Equivalents and Short-Term Investments | 2.40M | 428.93M | 291.14M | 251.31M | 226.99M | 1.07B |
| Total Debt | 737.79M | 339.24M | 365.44M | 584.53M | 34.45M | 36.11M |
| Total Liabilities | 4.47B | 3.78B | 2.76B | 2.57B | 1.33B | 1.94B |
| Stockholders Equity | 567.66M | 494.29M | 376.63M | 296.66M | 248.32M | 232.39M |
Cash Flow | ||||||
| Free Cash Flow | 2.97M | 53.42M | 111.00K | 57.64M | 29.44M | 7.08M |
| Operating Cash Flow | 3.98M | 54.13M | 2.56M | 60.11M | 30.50M | 8.34M |
| Investing Cash Flow | -636.41M | -919.85M | -158.25M | -1.23B | -248.95M | 27.46M |
| Financing Cash Flow | 689.48M | 1.04B | 199.94M | 1.20B | -619.96M | 831.03M |
Northeast Bancorp Technical Analysis
Positive
129.24
Price Trends
128.72
Positive
124.02
Positive
113.77
Positive
Market Momentum
0.78
Negative
55.11
Neutral
70.03
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 129.24 is below the 20-day moving average (MA) of 130.29, above the 50-day MA of 128.72, and above the 200-day MA of 113.77, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 55.11 is Neutral, neither overbought nor oversold. The STOCH value of 70.03 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.12B | 20.38 | 17.82% | 0.62% | 19.99% | 10.00% | |
80 Outperform | $1.48B | 13.03 | 14.12% | 1.25% | 9.56% | 12.20% | |
74 Outperform | $1.22B | 12.68 | 10.41% | 2.01% | 2.41% | 26.67% | |
72 Outperform | $1.06B | 9.60 | 19.35% | 0.03% | 9.28% | 25.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $1.12B | 13.60 | 8.01% | 4.39% | 7.53% | 38.25% | |
64 Neutral | $1.16B | 21.20 | 6.62% | 1.26% | 5.13% | ― |
* Financial Sector Average
NBN
Northeast Bancorp
133.44
36.60
37.80%
CFFN
Capitol Federal Financial
8.88
3.30
59.03%
UVSP
Univest Of Pennsylvania
42.84
15.00
53.90%
ESQ
Esquire Financial Holdings
131.38
38.50
41.45%
AMAL
Amalgamated Bank
49.80
22.38
81.62%
AMTB
Amerant Bancorp
28.91
10.38
55.99%
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.