Northeast Bank (NBN) investor relations material

Executive summary

• Achieved record net income of $107.5 million for FY 2026, up 29% year-over-year, with quarterly net income of $34.3 million and EPS of $12.74 for the year and $4.05 for the quarter.

• Total loans reached $4.59 billion, up 21.2% year-over-year, driven by strong National Lending and Small Business Lending divisions.

• Return on equity was 23.5% for Q4 and 19.74% for FY26; return on assets was 2.71% for Q4 and 2.31% for FY26.

• Tangible book value per share increased to $70.58 as of June 30, 2026.

• Strong loan growth, disciplined expense management, and technology investments contributed to performance.

Financial highlights

• Total assets ended the quarter at $5.23 billion, up 22.2% year-over-year.

• Net interest income before provision was $60.3 million in Q4 2026; net interest margin was 4.80% for Q4 and 4.77% for FY26.

• Efficiency ratio improved to 36.8% for FY26; noninterest expense was $87.1 million for the year.

• Allowance for credit losses to total loans was 1.30% at year-end.

• EPS (diluted) for FY26 was $12.74, up from $10.08 in FY25.

Outlook and guidance

• Loan origination and purchase volumes expected to remain strong, with focus on national and small business lending.

• Margin expected to remain steady, with asset yields stable and cost of funds flat barring rate changes.

• SBA loan volumes may remain impacted by regulatory changes and government shutdowns.

• Expense growth anticipated to rise by about $1 million next quarter, then stabilize.

• Tax rate for FY 2027 projected at 28%-29%, with potential for further tax credit purchases.