Northeast Bank · NASDAQ:NBN
Northeast Bank — Q3 2025 Earnings Presentation
27 slides from Northeast Bank's earnings presentation, Apr 30, 2025
Slide 1: Investor Call FY25 Q3
INVESTOR CALL FY25 Q3 April 30, 2025
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT Statements in this presentation 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 th
Slide 3: Financial Highlights
Financial Highlights Q3 FY25 YTD FY25 Total Loan Volume $413.9 million $1.7 billion National Lending: $74.6 million invested on $79.1 million $821.5 million invested on $901.7 million Purchased Loans of UPB(1) of UPB(1) (94.2% purchase price) (91.1% purchase price) Originated Loans(2) $218.0 million
Slide 4: Loan Portfolio Summary
Loan Portfolio Summary Loan Portfolio # of Loans Total Balance Average Balance WA LTV Dollars in thousands National Lending Division: Purchased Loans (1) 3,315 $2,443,822 $737 50%(4) Direct Originated Loans (2) 89 444,376 4,993 51% Lender Finance Loans (2) 108 740,777 6,859 44% SBA Loans (3) 4,037 9
Slide 5: National Lending Portfolio Roll Forward — Linked Quarter
National Lending Portfolio Roll Forward — Linked Quarter $4,000 $218.0 $142.0 $74.6 $23.2 $3,629.0 $3,501.6 $3,500 $3,000 Millions $2,500 $2,000 $1,500 $1,000 $500 $0 Balance at 12/31/24 Originations Originated Run-off (1) Purchases Purchased Run-Off (1) Balance at 3/31/2025 (1) Run-off includes sch
Slide 6: National Lending Purchased Activity
National Lending Purchased Activity by Trailing 5 Quarters $800 $732.9 $700 $600 $500 Millions $400 $300 $200 $143.6 $100 $74.6 $14.0 $0.0 $0 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 4
Slide 7: National Lending Originated Activity
National Lending Originated Activity by Trailing 5 Quarters $300 $246.4 $250 $218.0 $200 Millions $153.3 $150 $126.9 $114.3 $100 $50 $0 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 5
Slide 8: National Lending Loan Portfolio Statistics
National Lending Loan Portfolio Statistics Investment Size(1) $15+ Million $0-$2 Million 21% 24% Collateral State (44 States) $10-15 Million IL 1% All Other 12% TX 2% States WA 2% 13% FL 5% $2-$6 Million 27% NJ 8% $6-$10 Million 16% Collateral Type NY 44% Lender Finance Multifamily 20% 18% CA 25% In
Slide 9: Asset Quality Metrics
Asset Quality Metrics NPAs & NPLs Classified Commercial Loans(1) 1.50% $30.0 $26.6 $27.3 1.03% $25.0 $24.0 1.00% 0.90% 0.84% 0.86% 0.79% $20.0 0.77% Millions 0.62% $14.7 0.55% $15.0 0.50% $10.0 $5.0 0.00% 6/30/23 6/30/24 12/31/24 3/31/25 $0.0 NPAs/Assets NPLs/Loans 6/30/23 6/30/24 12/31/24 3/31/25 A
Slide 10: Nonperforming Assets Turnover – Quarter Ended March 31, 2025
Nonperforming Assets Turnover – Quarter Ended March 31, 2025 Nonperforming FMV of REO Total Notes Loans Collateral ( 1) (Dollars in Thousands) December 31, 2024 Balance: $30,066 $1,200 $31,266 NPL Additions: #1 2,205 - 2,205 3,424 17-unit multifamily property located in NY #2 2,087 - 2,087 3,256 Mul
Slide 11: Allowance Allocation
Allowance Allocation Loan Loan Segment ACL Coverage ACL Coverage ACL Coverage Balances March 31, 2025 December 31, 2024 March 31, 2024 Dollars in thousands National Lending Purchased $2,443,822 $37,669 1.54% $37,749 1.58% $17,723 1.09% Originated Loans: C&I (Lender Finance primarily) 754,280 3,830 0
Slide 12: National Lending Portfolio by Collateral Type
National Lending Portfolio by Collateral Type Total National Collateral Type Direct Originated Lender Finance Purchased Lending Dollars in thousands Balance WA LTV (1) Balance WA LTV (1) Balance WA LTV (2) Balance WA LTV 1-4 Family 28,133 45% 78,197 37% 74,566 55% 180,896 46% Hospitality 134,973 52%
Slide 13: National Lending Portfolio — Weighted Average LTV by Bucket
National Lending Portfolio — Weighted Average LTV by Bucket WA LTV National Lending <40% 40-49% 50-59% 60-69% 70-79% >=80% Total Portfolio Dollars in thousands Direct Originated Loans (1) $47,720 $151,677 $114,319 $79,573 $39,878 $11,209 $444,376 Lender Finance Loans (1) 251,563 174,020 250,927 64,2
Slide 14: National Lending Purchased Portfolio — Further Analysis
National Lending Purchased Portfolio — Further Analysis Portfolio Origination Year Dollars in thousands Pre-2013 2013-2018 2019-2021 2022 and later Total Current Basis $229,157 $980,246 $769,808 $464,611 $2,443,822 # of Loans 744 1,821 555 198 3,318 % of Portfolio 9% 40% 32% 19% 100% Seasoning (Year
Slide 15: National Lending Originated Portfolio — Interest Reserve Analysis
National Lending Originated Portfolio — Interest Reserve Analysis Lender Finance % with Interest Interest Reserve WA Advance Dollars in thousands Balance WA LTV(2) Reserves WA Duration Rate(1) Total Loans $740,777 57% 44% Loans with Interest Reserves 602,625 81% 5.3 Months Direct Originated Loans %
Slide 16: SBA Loan Trailing Quarters
SBA Loan Trailing 5 Quarters 14
Slide 17: Quarterly Cost of Deposits
Quarterly Cost of Deposits by Trailing 5 Quarters 4.5% 4.4% 4.36% 4.34% 4.3% 4.31% 4.2% 4.15% 4.1% 4.0% 3.92% 3.9% 3.8% 3.77% 3.7% 3.6% 3.5% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Average Cost of Deposits by Quarter Cost of Deposits at Quarter-end 15
Slide 18: Deposit Portfolio Changes
Deposit Portfolio Changes By Channels March 31, 2025 March 31, 2024 Net Change Dollars in thousands Balance WAR Mix Balance WAR Mix Balance % WAR Retail Banking Centers 3.26% 30% $817,059 3.39% 37% $180,402 22% -0.13% 997,461 Government Banking 451,896 4.11% 14% 347,470 4.99% 16% 30% -0.89% 104,427
Slide 19: Deposit Portfolio and Interest Analysis
Deposit Portfolio and Interest Analysis Trailing Twelve-Month Deposit Portfolio and Annualized Interest Expense (Includes Brokered Deposits) $ Millions $150.0 $3,500 $130.0 $3,000 $110.0 Deposit Portfolio $2,500 $90.0 Interest Expense $2,000 $70.0 $1,500 $50.0 $1,000 $30.0 $500 $10.0 $0 $(10.0) Apr-
Slide 20: Deposit Mix
Deposit Mix by Trailing 5 Quarters Total Total Total Total Total $3,400 $2,227 $3,125 $3,152 $3,296 $2,340 $3,200 $2,250 $3,000 $2,092 $2,080 $2,800 $2,600 $2,400 $2,200 $1,306 $1,247 $2,000 Millions $1,800 $1,600 $1,400 $1,200 $1,000 $323 $326 $314 $301 $800 $315 $600 $708 $719 $749 $745 $665 $400
Slide 21: Revenue and Non-interest Expense
Revenue and Non-interest Expense by Trailing 5 Quarters $60 $54.4 $50 $52.6 $40 $43.1 $38.1 $40.0 $30 Millions $20 $20.1 $19.1 $17.1 $17.7 $16.4 $10 $0 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Total Revenue(1) Noninterest Expense (1) Total Revenue includes net interest income before credit loss provi
Slide 22: Loan Performance & Average Loan Balance
Loan Performance & Average Loan Balance by Trailing 5 Quarters Loan Performance Average Loan Balance $4,000 Total Total Total Total Total $2,649 $2,673 $2,839 $3,564 $3,650 $3,500 $1,262 $1,157 $3,000 $1,080 $2,500 $1,014 $1,027 Millions $2,407 $2,388 $2,000 $1,759 $1,500 $1,635 $1,646 $1,000 $500 $
Slide 23: Purchased Loan Investment Basis and Discount
Purchased Loan Investment Basis and Discount by Trailing 5 Quarters (1) Credit mark is recorded in the Allowance for Credit Losses, and not included in the purchased loan net basis. 21
Slide 24: National Lending Portfolio — Q3 FY25 Return Summary
National Lending Portfolio — Q3 FY25 Return Summary (1) Purchased Originated Total Regularly Scheduled Interest & 8.18% 8.69% 8.34% Accretion Accelerated Accretion, Interest, & 0.25% 0.04% 0.18% Fees Recognized on Loan Payoffs Total 8.43% 8.73% 8.52% (1) The total return on purchased loans represent
Slide 25: Loan Mix
Loan Mix by Trailing 5 Quarters $4,000 Total Total Total Total Total $2,656 $2,761 $3,503 $3,591 $3,740 $3,600 $3,200 $2,800 $2,444 $2,400 $2,392 $2,421 $2,000 Millions $1,709 $1,620 $1,600 $1,200 $800 (1) $1,185 $1,109 $976 $981 $1,011 $92 $400 $36 $48 $49 $68 $23 $21 $22 $19 $0 $24 Q3 FY24 Q4 FY24
Slide 26: Net Income
Net Income by Trailing 5 Quarters $22,440 $20,000 $18,681 $17,106 $15,140 $15,000 $13,865 Thousands $10,000 $5,000 $0 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 24
Slide 27: Key Components of Income
Key Components of Income by Trailing 5 Quarters Net Interest Income Noninterest Income Before Credit Loss Provision 25