Source: Investing Posted 30/10/2024, 00:03
Portland, Maine — Northeast Bank (NASDAQ: NBN) reported a rise in quarterly net income to $17.1 million, or $2.11 per diluted share, for the quarter ended Sept. 30, 2024. This represents an improvement from $15.2 million, or $2.01 per share, recorded in the same period last year. The Bank’s Board of Directors also announced a cash dividend of $0.01 per share.
which will be paid on November 26 to registered shareholders n until November 12. The Bank’s National Lending division witnessed significant growth, contributing to the second largest quarterly loan volume in the Bank’s history. The division provided $859.8 million in loans, of which $732.9 million was in purchases and $126.9 million in new issuances. The portfolio of the National Lending Division expanded by 27.6% compared to the previous quarter, ending with a balance of $2,420,883 in loans purchased and 1, $011,374 in outgoing loans. In addition, the Bank’s collaboration with Newity LLC on the SBA 7(a) microfinance program showed remarkable progress.
with new issuances reaching $82.4 million for the quarter, up significantly from $40.2 million in the previous quarter and $9.7 million in the same period a year earlier. Sales of the guaranteed portion of SBA loans also increased, to $63.1 million compared to $26.8 million in the previous quarter.
Northeast Bank’s total assets stood at $3.94 billion as of September 30, 2024, representing a 25.8% increase from $3.13 billion as of June 30, 2024. The bank’s deposit base grew by $785.5 million, or 33.6%, mainly due to an increase in term deposits.
while FHLB advances saw a slight decline. Shareholders’ equity increased by $15.9 million, or 4.2%, from the previous quarter, mainly due to reported net income and equity-based compensation.
despite a decrease in the risk-based gross capital ratio due to significant loan growth. Net interest income and dividends before provision for credit losses increased to $39.0 million for the quarter, compared to $37.1 million in the same period last year. This is largely due to an increase in interest income on loans and short-term investments, coupled with a decrease in interest expense on FHLB borrowings. Non-interest income saw an increase of $3.3 million, mainly due to profit from the sale of SBA loans. Non-interest expense increased by $2.3 million, attributable to higher salaries, employee benefits and loan issuance expenses. The bank will host a conference call to discuss its earnings and business outlook.
which will be available via live webcast through the bank’s website.
Northeast Bank has made significant progress in its financial performance, marked by a significant expansion of its loan portfolio. This expansion includes the purchase of primarily commercial mortgages with a total outstanding original balance of $805 million. The bank also reported strong financial results for the fourth quarter of fiscal 2024.
with key indicators indicating a healthy return on equity of 7.46% and a return on assets close to 2%. This positive performance was mainly driven by growth in volume Loans, improved margins, and strong asset quality. Northeast Bank has also been the focus of attention of analytics firms. Piper Sandler issued an “higher weight” rating for the bank’s stock, citing the bank’s strong profitability and efficient business model. Despite unsuccessful attempts to acquire Signature Bank and Boston Private Bank, Northeast Bank expressed His interest in opportunistic acquisitions. Among recent recent developments, Northeast Bank reported an increase in real estate transactions, which contributed to boosting investor and buyer confidence. The bank’s lender financing was also successful, recording no losses. These developments signal a period of growth and performance for Northeast Bank.
supported by a forward-looking strategy that anticipates continued growth, taking into account various risks and uncertainties. Northeast’s strong quarterly performance is further supported by up-to-date data from Investing. The bank has a market capitalization of $723.35 million, reflecting its strong position in the financial sector. With a price-to-earnings ratio of 11.51, NBN appears to be trading at an attractive valuation relative to its earnings.
which is in line with the reported increase in net income.
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