PORTLAND, Maine, Jan. 26, 2026 (GLOBE NEWSWIRE) -- Northeast Bank (the "Bank") (NASDAQ:NBN), a Maine-based bank, today reported net income of $20.7 million, or $2.47 per diluted common share, for the quarter ended December 31, 2025, compared to net income of $22.4 million, or $2.74 per diluted common share, for the quarter ended December 31, 2024. Net income for the six months ended December 31, 2025 was $43.3 million, or $5.14 per diluted common share, compared to $39.5 million, or $4.85 per diluted common share, for the six months ended December 31, 2024.

The Board of Directors declared a cash dividend of $0.01 per share, payable on February 25, 2026, to shareholders of record as of February 11, 2026.

"The Bank generated strong loan activity during the second fiscal quarter," said Rick Wayne, Chief Executive Officer. "Quarterly loan volume totaled $895.7 million, consisting of $532.9 million of purchased loans at an average price of 92.6% of unpaid principal balance, a record $252.4 million of National Lending originated loans, $39.8 million of SBA 7(a) loans and $70.6 million of insured small balance business loans. Total loans at December 31, 2025 were $4.35 billion, representing an increase of $594.4 million or 15.8% over June 30, 2025. The majority of the loan activity occurred late in the second fiscal quarter, resulting in minimal impact on the quarter's average loan balance of $3.89 billion and net interest income. This loan growth provides a strong tailwind for net interest income in the next and subsequent quarters. Our capital levels remain strong and provide us with the capacity to respond to opportunities available in the marketplace."

As of December 31, 2025, total assets were $4.95 billion, an increase of $668.2 million, or 15.6%, from total assets of $4.28 billion as of June 30, 2025, due to the following:

1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the six months ended December 31, 2025:

	Loan Portfolio Changes
	December 31, 2025		June 30, 2025		Change ($)			Change (%)
	(Dollars in thousands)
National Lending Purchased	$	2,856,949	$	2,375,157	$	481,792		20.28	%
National Lending Originated		1,356,569		1,251,768		104,801		8.37	%
Small Business		207,956		144,974		62,982		43.44	%
Community Banking		16,762		18,258		(1,496	)	(8.19	%)
Total	$	4,438,236	$	3,790,157	$	648,079		17.10	%

Loans generated during the quarter ended December 31, 2025 totaled $895.7 million, which consisted of $532.9 million of purchased loans at an average price of 92.6% of unpaid principal balance, $252.4 million of National Lending originated loans, $39.8 million of Small Business Administration ("SBA") 7(a) loans and $70.6 million of insured small balance business loans.

An overview of the Bank's National Lending Division portfolio follows:

	National Lending Portfolio
	Three Months Ended December 31,
		2025									2024
	Purchased			Originated			Total			Purchased			Originated			Total

	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	575,509		$	252,363		$	827,872		$	14,815		$	246,417		$	261,232
Initial net investment basis (1)		532,931			252,363			785,294			14,039			246,417			260,456

Loan returns during the period:
Yield		8.11	%		8.02	%		8.08	%		8.84	%		9.06	%		8.91	%
Total Return on Purchased Loans (2)		8.19	%	N/A				8.19	%		8.86	%	N/A				8.86	%


	Six Months Ended December 31,
		2025									2024
	Purchased			Originated			Total			Purchased			Originated			Total

	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	728,199		$	386,181		$	1,114,380		$	822,549		$	373,309		$	1,195,858
Initial net investment basis (1)		677,531			386,181			1,063,712			746,932			373,309			1,120,241

Loan returns during the period:
Yield		8.13	%		8.32	%		8.13	%		8.84	%		9.18	%		8.95	%
Total Return on Purchased Loans (2)		8.20	%	N/A				8.20	%		8.85	%	N/A				8.85	%

Total loans as of period end:
Unpaid principal balance	$	3,038,067		$	1,356,569		$	4,394,636		$	2,598,354		$	1,109,192		$	3,707,546
Net investment basis		2,856,949			1,356,569			4,213,518			2,392,417			1,109,192			3,501,609

(1) Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark).

(2) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled "Total Return on Purchased Loans."

2. Deposits increased by $443.6 million, or 13.1%, from June 30, 2025. The increase was primarily attributable to an increase in time deposits of $457.9 million, or 20.4%, compared to the prior year. The significant drivers in the change in time deposits was an increase in brokered time deposits, which increased by $349.7 million, combined with an increase in Community Banking division time deposits of $102.9 million, compared to June 30, 2025.

3. Federal Home Loan Bank ("FHLB") advances increased by $180.9 million, or 56.5%, from June 30, 2025. The increase was attributable to advances taken to fund a portion of the loan purchases during the quarter ended December 31, 2025.

4. Shareholders' equity increased by $41.7 million, or 8.4%, from June 30, 2025, primarily due to net income of $43.3 million for the fiscal year to date through December 31, 2025, partially offset by the cancellation of restricted stock to cover tax obligations on restricted stock vests, which had a $1.4 million impact on shareholders' equity.

Net income decreased by $1.7 million to $20.7 million for the quarter ended December 31, 2025, compared to net income of $22.4 million for the quarter ended December 31, 2024, due to the following:

1. Net interest and dividend income before provision for credit losses increased by $311 thousand to $48.8 million for the quarter ended December 31, 2025, compared to $48.5 million for the quarter ended December 31, 2024. The increase was primarily due to the following:

- A decrease in deposit interest expense of $1.9 million, primarily due to lower rates on interest-bearing deposits, partially offset by higher average balances; partially offset by,
- A decrease in interest income earned on loans of $727 thousand, primarily due to lower rates earned across the portfolios, partially offset by higher average balances in the National Lending Division and SBA portfolios; and
- An increase in interest expense on FHLB advances of $478 thousand, due to higher average balances.

The following table summarizes interest income and related yields recognized on the loan portfolios:

	Interest Income and Yield on Loans
	Three Months Ended December 31,
		2025						2024
	Average Balance (1)		Interest Income		Yield		Average Balance (1)		Interest Income		Yield

	(Dollars in thousands)
Community Banking	$	15,926	$	292	7.27	%	$	21,481	$	369	6.82	%
Small Business		168,595		4,087	9.62	%		93,831		2,751	11.63	%
National Lending:
Originated		1,289,973		26,090	8.02	%		1,041,301		23,769	9.06	%
Purchased		2,414,897		49,348	8.11	%		2,407,132		53,655	8.84	%
Total National Lending		3,704,870		75,438	8.08	%		3,448,433		77,424	8.91	%
Total	$	3,889,391	$	79,817	8.14	%	$	3,563,745	$	80,544	8.97	%


	Six Months Ended December 31,
		2025						2024
	Average Balance (1)		Interest Income		Yield		Average Balance (1)		Interest Income		Yield

	(Dollars in thousands)
Community Banking	$	16,891	$	597	7.01	%	$	21,945	$	738	6.67	%
Small Business		151,473		7,521	9.85	%		76,788		5,170	13.36	%
National Lending:
Originated		1,252,065		52,515	8.32	%		1,019,347		47,176	9.18	%
Purchased		2,363,053		96,864	8.13	%		2,082,969		92,797	8.84	%
Total National Lending		3,615,118		149,379	8.20	%		3,102,316		139,973	8.95	%
Total	$	3,783,482	$	157,497	8.26	%	$	3,201,049	$	145,881	9.04	%

(1) Includes loans held for sale.

The components of total income on purchased loans are set forth in the table below entitled "Total Return on Purchased Loans." When compared to the quarter ended December 31, 2024, transactional income decreased by $25 thousand for the quarter ended December 31, 2025, and regularly scheduled interest and accretion decreased by $3.9 million, primarily due to decreases in rates. The total return on purchased loans for the quarter ended December 31, 2025 was 8.2%, a decrease from 8.9% for the quarter ended December 31, 2024. The following table details the total return on purchased loans:

	Total Return on Purchased Loans
	Three Months Ended December 31,
		2025				2024
	Income		Return (1)		Income		Return (1)

	(Dollars in thousands)
Regularly scheduled interest and accretion	$	46,852	7.70	%	$	50,747	8.36	%
Transactional income:
Release of allowance for credit losses on purchased loans		485	0.08	%		97	0.02	%
Accelerated accretion and loan fees		2,495	0.41	%		2,908	0.48	%
Total transactional income		2,980	0.49	%		3,005	0.50	%
Total	$	49,832	8.19	%	$	53,752	8.86	%

	Six Months Ended December 31,
		2025				2024
	Income		Return (1)		Income		Return (1)

	(Dollars in thousands)
Regularly scheduled interest and accretion	$	91,855	7.71	%	$	87,906	8.37	%
Transactional income:
Release of allowance for credit losses on purchased loans		786	0.07	%		161	0.01	%
Accelerated accretion and loan fees		5,009	0.42	%		4,891	0.47	%
Total transactional income		5,795	0.49	%		5,052	0.48	%
Total	$	97,650	8.20	%	$	92,958	8.85	%

(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure.

2. Provision for credit losses decreased by $1.1 million reflecting a provision of $875 thousand for the quarter ended December 31, 2025, compared to a provision of $1.9 million for the quarter ended December 31, 2024.

3. Noninterest income decreased by $3.0 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024, primarily due to a decrease in gain on sale of SBA loans of $3.4 million, due to less sales resulting from the government shutdown during the quarter. There were sales of $25.1 million in SBA loans during the quarter ended December 31, 2025 as compared to sales of $64.5 million during the quarter ended December 31, 2024.

4. Noninterest expense increased by $1.7 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024, primarily due to the following:

An increase in salaries and employee benefits expense of $1.2 million, primarily due to increases in regular, stock and incentive compensation expense;
An increase in loan expense of $586 thousand, primarily related to increased expenses in connection with the origination of SBA and small balance insured loans; and
An increase in professional fees due of $209 thousand, primarily related to increased legal and audit costs; partially offset by
A decrease in Federal Deposit Insurance Corporation ("FDIC") insurance expense of $484 thousand, due to changes in the Bank's assessment rate.

5. Income tax expense decreased by $1.6 million to $9.4 million, or an effective tax rate of 31.1%, for the quarter ended December 31, 2025, compared to income tax expense of $11.0 million, or an effective tax rate of 32.9%, for the quarter ended December 31, 2024. The decrease in effective tax rate is primarily due to changes in state tax law.

As of December 31, 2025, nonperforming assets totaled $35.3 million, or 0.7% of total assets, compared to $35.6 million, or 0.8% of total assets, as of June 30, 2025.

As of December 31, 2025, past due loans totaled $36.4 million, or 0.8% of total loans, compared to past due loans totaling $30.1 million, or 0.8% of total loans, as of June 30, 2025.

As of December 31, 2025, the Bank's Tier 1 leverage capital ratio was 12.2%, compared to 11.6% at June 30, 2025, and the Bank's Total risk-based capital ratio was 13.7% at December 31, 2025, compared to 14.7% at June 30, 2025. The Total risk-based capital ratio decreased primarily due to the increase in risk-weighted assets from significant loan growth from purchases during the quarter ended December 31, 2025.

Investor Call Information

Rick Wayne, Chief Executive Officer, Santino Delmolino, Chief Financial Officer, and Pat Dignan, Chief Operating Officer and Chief Credit Officer, of Northeast Bank, will host a conference call to discuss second quarter financial results and business outlook at 11:00 a.m. Eastern Time on Tuesday, January 27^th. To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via live webcast, which can be viewed by accessing the Bank's website at www.northeastbank.com and clicking on the About Us - Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least 15 minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. This presentation is also available in the Investor Relations section of the Bank's website at www.northeastbank.com. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.

About Northeast Bank

Northeast Bank (NASDAQ:NBN) is a bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis and our Small Business division originates government-guaranteed SBA loans and small balance insured loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures, including tangible common shareholders' equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank's management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Federal Deposit Insurance Corporation ("FDIC"), in our annual reports to our shareholders, in press releases and other written materials, and in oral statements made by our officers, directors, or employees. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties, and other factors which are, in some cases, beyond the Bank's control. The Bank's actual results could differ materially from those expressed or implied by such the forward-looking statements as a result of, among other factors: changes in interest rates and real estate values; changes in employment levels, and general business and economic conditions on a national basis and in the local markets in which the Bank operates; changes in customer behavior due to changing business and economic conditions (including the impact of tariffs, inflation, and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credit losses are higher than currently expected due to changes in economic assumptions, customer behavior, or adverse economic developments; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changes in, and evolving interpretations of, existing and future laws, rules, and regulations; operational risks including, but not limited to, cybersecurity, fraud, natural disasters, climate change, and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank's financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank's Annual Report on Form 10-K, as updated in the Bank's Quarterly Reports on Form 10-Q, and other filings submitted to the FDIC. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events.

NBN-F

NORTHEAST BANK
BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
	December 31, 2025		June 30, 2025

Assets
Cash and due from banks	$	2,793	$	2,908
Short-term investments		443,429		410,711
Total cash and cash equivalents		446,222		413,619

Available-for-sale debt securities, at fair value		4,915		15,308
Equity securities, at fair value		7,603		7,396
Total securities		12,518		22,704

Loans held for sale		87,423		33,768

Loans:
Commercial real estate		3,317,166		2,733,794
Commercial and industrial		903,271		903,278
Residential real estate		130,099		119,158
Consumer		277		159
Total loans		4,350,813		3,756,389
Less: Allowance for credit losses		63,813		47,930
Loans, net		4,287,000		3,708,459

Premises and equipment, net		23,652		24,704
Real estate owned and other possessed collateral, net		719		560
Federal Home Loan Bank stock, at cost		26,977		15,295
Loan servicing rights, net		639		699
Bank-owned life insurance		19,010		19,329
Accrued interest receivable		18,885		16,897
Other assets		24,263		23,034
Total assets	$	4,947,308	$	4,279,068

Liabilities and Shareholders' Equity
Deposits:
Demand	$	168,602	$	159,274
Savings and interest checking		872,205		880,016
Money market		76,900		92,716
Time		2,701,454		2,243,594
Total deposits		3,819,161		3,375,600

Federal Home Loan Bank advances		501,130		320,191
Lease liability		18,174		19,044
Other liabilities		72,825		69,947
Total liabilities		4,411,290		3,784,782

Commitments and contingencies

Shareholders' equity
Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares issued and outstanding at December 31, 2025 and June 30, 2025		—		—
Voting common stock, $1.00 par value, 25,000,000 shares authorized; 8,555,360 and 8,525,362 shares issued and outstanding at December 31, 2025 and June 30, 2025, respectively		8,555		8,525
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized; No shares issued and outstanding at December 31, 2025 and June 30, 2025		—		—
Additional paid-in capital		97,321		98,728
Retained earnings		430,138		387,035
Accumulated other comprehensive income (loss)		4		(2	)
Total shareholders' equity		536,018		494,286
Total liabilities and shareholders' equity	$	4,947,308	$	4,279,068

NORTHEAST BANK
STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended December 31,						Six Months Ended December 31,
		2025			2024			2025			2024
Interest and dividend income:
Interest and fees on loans	$	79,817		$	80,544		$	157,497		$	145,881
Interest on available-for-sale securities		150			436			330			1,031
Other interest and dividend income		4,120			4,186			9,467			8,108
Total interest and dividend income		84,087			85,166			167,294			155,020

Interest expense:
Deposits		30,924			32,777			62,256			59,367
Federal Home Loan Bank advances		4,144			3,666			7,605			7,696
Obligation under capital lease agreements		218			233			441			467
Total interest expense		35,286			36,676			70,302			67,530
Net interest and dividend income before provision for credit losses		48,801			48,490			96,992			87,490
Provision for credit losses		875			1,944			441			2,366
Net interest and dividend income after provision for credit losses		47,926			46,546			96,551			85,124

Noninterest income:
Fees for other services to customers		363			391			708			834
Gain on sales of SBA loans		2,126			5,570			6,264			8,901
Net unrealized gain on equity securities		23			(163	)		75			27
Loss on real estate owned, other repossessed collateral and premises and equipment, net		(7	)		-			(7	)		-
Bank-owned life insurance income		389			125			512			248
Correspondent fee income		7			23			19			54
Other noninterest income		63			3			75			5
Total noninterest income		2,964			5,949			7,646			10,069

Noninterest expense:
Salaries and employee benefits		12,504			11,287			25,186			22,470
Occupancy and equipment expense		1,116			1,103			2,262			2,182
Professional fees		771			562			1,866			1,315
Data processing fees		1,634			1,622			3,286			3,109
Marketing expense		110			94			234			230
Loan acquisition and collection expense		2,649			2,063			5,997			3,355
FDIC insurance expense		472			956			767			1,288
Other noninterest expense		1,515			1,379			3,063			2,802
Total noninterest expense		20,771			19,066			42,661			36,751
Income before income tax expense		30,119			33,429			61,536			58,442
Income tax expense		9,379			10,989			18,256			18,896
Net income	$	20,740		$	22,440		$	43,280		$	39,546

Weighted-average shares outstanding:
Basic		8,312,859			8,044,345			8,292,768			7,965,486
Diluted		8,405,029			8,197,568			8,417,942			8,153,368

Earnings per common share:
Basic	$	2.49		$	2.79		$	5.22		$	4.96
Diluted		2.47			2.74			5.14			4.85

Cash dividends declared per common share	$	0.01		$	0.01		$	0.02		$	0.02

NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Three Months Ended December 31,
		2025						2024
	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
	(Dollars in thousands)
Assets:
Interest-earning assets:
Investment securities	$	15,552	$	150	3.83	%	$	40,004	$	436	4.32	%
Loans (1) (2) (3)		3,889,391		79,817	8.14	%		3,563,745		80,544	8.97	%
Federal Home Loan Bank stock		17,971		283	6.25	%		15,458		346	8.88	%
Short-term investments (4)		385,405		3,837	3.95	%		325,118		3,840	4.69	%
Total interest-earning assets		4,308,319		84,087	7.74	%		3,944,325		85,166	8.57	%
Cash and due from banks		2,172						2,216
Other non-interest earning assets		84,789						30,982
Total assets	$	4,395,280					$	3,977,523

Liabilities & Shareholders' Equity:
Interest-bearing liabilities:
NOW accounts	$	661,856	$	5,799	3.48	%	$	581,969	$	5,932	4.04	%
Money market accounts		76,955		371	1.91	%		128,787		953	2.94	%
Savings accounts		207,769		1,274	2.43	%		187,701		1,653	3.49	%
Time deposits		2,285,778		23,480	4.08	%		2,080,911		24,239	4.62	%
Total interest-bearing deposits		3,232,358		30,924	3.80	%		2,979,368		32,777	4.36	%
Federal Home Loan Bank advances		388,082		4,144	4.24	%		336,762		3,666	4.32	%
Lease liability		18,324		218	4.72	%		19,599		233	4.72	%
Total interest-bearing liabilities		3,638,764		35,286	3.85	%		3,335,729		36,676	4.36	%

Non-interest bearing liabilities:
Demand deposits and escrow accounts		156,076						190,135
Other liabilities		73,559						30,501
Total liabilities		3,868,399						3,556,365
Shareholders' equity		526,881						421,158
Total liabilities and shareholders' equity	$	4,395,280					$	3,977,523

Net interest income			$	48,801					$	48,490

Interest rate spread					3.89	%					4.21	%
Net interest margin (5)					4.49	%					4.88	%

Cost of funds (6)					3.69	%					4.13	%

(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.

(2) Includes loans held for sale.

(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.

(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.

(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.

(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.

NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Six Months Ended December 31,
		2025						2024
	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Assets:
Interest-earning assets:
Investment securities	$	16,843	$	330	3.89	%	$	47,708	$	1,031	4.29	%
Loans (1) (2) (3)		3,783,482		157,497	8.26	%		3,201,049		145,881	9.04	%
Federal Home Loan Bank stock		16,578		567	6.78	%		15,961		676	8.40	%
Short-term investments (4)		419,948		8,900	4.20	%		285,330		7,432	5.17	%
Total interest-earning assets		4,236,851		167,294	7.83	%		3,550,048		155,020	8.66	%
Cash and due from banks		2,129						2,164
Other non-interest earning assets		60,406						62,527
Total assets	$	4,299,386					$	3,614,739

Liabilities & Shareholders' Equity:
Interest-bearing liabilities:
NOW accounts	$	655,201	$	12,008	3.64	%	$	572,849	$	12,312	4.26	%
Money market accounts		82,343		865	2.08	%		138,738		2,219	3.17	%
Savings accounts		209,174		2,779	2.64	%		183,141		3,210	3.48	%
Time deposits		2,230,491		46,604	4.14	%		1,735,372		41,626	4.76	%
Total interest-bearing deposits		3,177,209		62,256	3.89	%		2,630,100		59,367	4.48	%
Federal Home Loan Bank advances		352,080		7,605	4.28	%		349,678		7,696	4.37	%
Lease liability		18,544		441	4.72	%		19,808		467	4.68	%
Total interest-bearing liabilities		3,547,833		70,302	3.93	%		2,999,586		67,530	4.47	%

Non-interest bearing liabilities:
Demand deposits and escrow accounts		162,922						182,648
Other liabilities		71,762						28,337
Total liabilities		3,782,517						3,210,571
Shareholders' equity		516,869						404,168
Total liabilities and shareholders' equity	$	4,299,386					$	3,614,739

Net interest income			$	96,992					$	87,490

Interest rate spread					3.90	%					4.19	%
Net interest margin (5)					4.54	%					4.89	%

Cost of funds (6)					3.76	%					4.21	%

NORTHEAST BANK
SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024

Net interest income	$	48,801		$	48,192		$	53,931		$	45,951		$	48,490
(Credit) provision for credit losses		875			(435	)		3,469			2,908			1,944
Noninterest income		2,964			4,683			8,768			6,619			5,949
Noninterest expense		20,771			21,890			21,495			20,143			19,066
Net income		20,740			22,541			25,216			18,681			22,440
Weighted-average common shares outstanding:
Basic		8,312,859			8,272,801			8,233,002			8,216,746			8,044,345
Diluted		8,405,029			8,430,980			8,413,895			8,394,964			8,197,568
Earnings per common share:
Basic	$	2.49		$	2.72		$	3.06		$	2.27		$	2.79
Diluted		2.47			2.67			3.00			2.23			2.74
Dividends declared per common share	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01
Return on average assets		1.87	%		2.13	%		2.38	%		1.86	%		2.24	%
Return on average equity		15.62	%		17.64	%		20.74	%		16.47	%		21.14	%
Net interest rate spread (1)		3.89	%		3.91	%		4.49	%		3.96	%		4.21	%
Net interest margin (2)		4.49	%		4.59	%		5.10	%		4.62	%		4.88	%
Efficiency ratio (non-GAAP) (3)		40.13	%		41.40	%		34.28	%		38.32	%		35.02	%
Noninterest expense to average total assets		1.87	%		2.07	%		2.03	%		2.00	%		1.90	%
Average interest-earning assets to average interest-bearing liabilities		118.40	%		120.43	%		119.07	%		118.64	%		118.24	%

	As of:
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Nonperforming loans:
Total originated portfolio	$	12,761		$	10,817		$	10,587		$	12,552		$	12,809
Total purchased portfolio		21,842			22,976			24,424			19,680			17,257
Total nonperforming loans		34,603			33,793			35,011			32,232			30,066
Real estate owned and other repossessed collateral, net		719			1,279			560			1,200			1,200
Total nonperforming assets	$	35,322		$	35,072		$	35,571		$	33,432		$	31,266

Past due loans to total loans		0.84	%		0.77	%		0.80	%		0.91	%		0.85	%
Nonperforming loans to total loans		0.80	%		0.90	%		0.93	%		0.86	%		0.84	%
Nonperforming assets to total assets		0.71	%		0.84	%		0.83	%		0.79	%		0.77	%
Allowance for credit losses to total loans		1.47	%		1.24	%		1.28	%		1.23	%		1.25	%
Allowance for credit losses to nonperforming loans		184.42	%		138.23	%		136.90	%		142.79	%		148.92	%
Net charge-offs	$	2,942		$	1,887		$	1,723		$	2,082		$	869
Commercial real estate loans to total capital (4)		533.21	%		470.01	%		486.07	%		521.47	%		542.12	%
Net loans to deposits		112.25	%		114.02	%		109.86	%		112.10	%		112.52	%
Purchased loans to total loans		65.66	%		64.12	%		63.23	%		65.33	%		66.63	%
Equity to total assets		10.83	%		12.31	%		11.55	%		11.06	%		10.88	%
Common equity tier 1 capital ratio		12.47	%		13.86	%		13.44	%		12.72	%		12.66	%
Total risk-based capital ratio		13.73	%		15.11	%		14.69	%		13.97	%		13.91	%
Tier 1 leverage capital ratio		12.19	%		12.21	%		11.64	%		11.45	%		11.16	%
Total shareholders' equity	$	536,018		$	513,647		$	494,286		$	467,516		$	444,101
Less: Preferred stock		—			—			—			—			—
Common shareholders' equity		536,018			513,647			494,286			467,516			444,101
Less: Intangible assets		—			—			—			—			—
Tangible common shareholders' equity (non-GAAP)	$	536,018		$	513,647		$	494,286		$	467,516		$	444,101
Common shares outstanding		8,555,360			8,562,960			8,525,362			8,525,362			8,492,856
Book value per common share	$	62.65		$	59.98		$	57.98		$	54.84		$	52.29
Tangible book value per share (non-GAAP) (5)		62.65			59.98			57.98			54.84			52.29

(1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.

(2) Net interest margin is calculated as net interest income divided by total interest-earning assets.

(3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income.

(4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.

(5) Tangible book value per share represents total shareholders' equity less the sum of preferred stock and intangible assets divided by common shares outstanding.

For More Information:

Santino Delmolino, Chief Financial Officer

Northeast Bank, 27 Pearl Street, Portland, Maine 04101

617.960.3634

www.northeastbank.com

Northeast Bank Reports Second Quarter Results and Declares Dividend