Northeast Bank · NASDAQ:NBN
Northeast Bank — Q2 2025 Earnings Presentation
27 slides from Northeast Bank's earnings presentation, Feb 7, 2025
Slide 1: Investor Call FY25 Q2
INVESTOR CALL FY25 Q2 February 7, 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 Q2 FY25 YTD FY25 Total Loan Volume $361.1 million $1.3 billion National Lending: $14.0 million invested on $14.8 million of $746.9 million invested on $822.5 million of Purchased Loans UPB(1) UPB(1) (94.8% purchase price) (90.8% purchase price) Originated Loans(2) $246.4 million
Slide 4: Loan Portfolio Summary
Loan Portfolio Summary Average Loan Portfolio # of Loans Total Balance WA LTV Balance Dollars in thousands National Lending Division: Purchased Loans (1) 3,336 $2,392,417 $717 50%(4) Direct Originated Loans (2) 93 421,646 4,534 53% Lender Finance Loans (2) 104 687,546 6,611 43% SBA Loans (3) 3,035 6
Slide 5: National Lending Portfolio Roll Forward — Linked Quarter
National Lending Portfolio Roll Forward — Linked Quarter $4,000 $246.4 $148.6 $14.0 $42.5 $3,501.6 $3,500 $3,432.3 Millions $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Balance at 9/30/24 Originations Originated Run-off (1) Purchases Purchased Run-Off (1) Balance at 12/31/2024 (1) Run-off includes sch
Slide 6: National Lending Purchased Activity
National Lending Purchased Activity by Trailing 5 Quarters $800 $732.9 $700 $600 Millions $500 $400 $300 $200 $186.1 $143.6 $100 $0.0 $14.0 $0 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 4
Slide 7: National Lending Originated Activity
National Lending Originated Activity by Trailing 5 Quarters $300 $246.4 $250 $200 $153.3 Millions $150 $126.9 $114.3 $100 $63.5 $50 $0 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 5
Slide 8: National Lending Loan Portfolio Statistics
National Lending Loan Portfolio Statistics Investment Size(1) $15+ Million $0-$2 Million 21% 25% Collateral State (45 States) All Other $10-15 Million IL 2% States 10% TX 2% 15% WA 2% FL 5% $2-$6 Million 28% $6-$10 Million NJ 7% 16% NY Collateral Type 42% Lender Finance Multifamily 19% 18% CA 25% In
Slide 9: Asset Quality Metrics
Asset Quality Metrics NPAs & NPLs Classified Commercial Loans(1) 1.50% $35.0 $31.1 1.06% $30.0 1.03% $26.6 1.00% 0.90% 0.94% $24.0 0.84% $25.0 0.77% Millions $20.0 0.55%0.62% $14.7 0.50% $15.0 $10.0 $5.0 0.00% 6/30/23 6/30/24 9/30/24 12/31/24 $0.0 6/30/23 6/30/24 9/30/24 12/31/24 NPAs/Assets NPLs/Lo
Slide 10: Nonperforming Assets Turnover – Quarter Ended December 31, 2024
Nonperforming Assets Turnover – Quarter Ended December 31, 2024 Nonperforming FMV of REO Total Notes Loans Collateral(1) (Dollars in Thousands) September 30, 2024 Balance: $37,172 $0 $37,172 NPL Additions: #1 (1,200) 1,200 - Mixed use property in NY 33 loans placed on nonaccrual with largest Other L
Slide 11: Allowance Allocation
Allowance Allocation ACL / Total ACL / Total Total Loan Total Reserves at Total ReservesACL / Total Loans Total Reserves Loans at Loans at Loan Segment Balances at December 31, at September at September 30, at December 31, December 31, December 31, December 31, 2024 2024 30, 2024 2024 2023 2024 2023
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 $15,209 47% $28,291 35% $72,762 54% $116,261 48% Hospitality $132,57
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) $41,391 $129,191 $109,350 $79,530 $44,379 $17,805 $421,646 Lender Finance Loans (1) 268,604 134,119 197,784 68,1
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 $234,417 $974,603 $735,138 $448,259 $2,392,417 # of Loans 751 1,852 546 188 3,337 % of Portfolio 9% 38% 28% 17% 100% Seasoning (Year
Slide 15: National Lending Originated Portfolio — Interest Reserve Analysis
National Lending Originated Portfolio — Interest Reserve Analysis Lender Finance Interest % with Interest WA Advance Dollars in thousands Balance Reserve WA WA LTV(2) Reserves Rate(1) Duration Total Loans $687,546 58% 43% Loans with Interest Reserves 488,709 71% 4.8 Months Direct Originated Loans %
Slide 16: SBA Loan Trailing Quarters
SBA Loan Trailing 5 Quarters Loan Originations and Sales (dollars in thousands) $120,000 1000 917 900 $100,290 $100,000 766 800 $82,425 700 $80,000 600 $63,110 $64,473 $60,000 500 $40,158 400 330 373 $40,000 300 $29,001 195 $26,755 200 $20,000 $18,938 $13,595 $11,517 100 $- 0 Q2 FY24 Q3 FY24 Q4 FY24
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% 4.16% 4.15% 4.1% 4.0% 3.9% 3.89% 3.8% 3.7% 3.6% 3.5% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Average Cost of Deposits by Quarter Cost of Deposits as of Quarter-end 15
Slide 18: Deposit Portfolio Changes
Deposit Portfolio Changes By Channels December 31, 2024 December 31, 2023 Net Change Dollars in thousands Balance WAR Mix Balance WAR Mix Balance % WAR Retail Banking Centers 3.40% 31% $778,478 3.25% 37% $205,602 26% 0.15% 984,080 Government Banking 436,676 4.11% 14% 339,681 4.86% 16% 96,995 29% -0.
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 $3,500 $140.0 $3,000 $120.0 Deposit Portfolio $2,500 $100.0 Interest Expense $2,000 $80.0 $1,500 $60.0 $1,000 $40.0 $500 $20.0 $0 $- Jan-24 Feb-24 M
Slide 20: Deposit Mix
Deposit Mix by Trailing 5 Quarters $3,400 Total Total Total Total Total $2,129 $2,227 $2,340 $3,125 $3,152 $3,200 $3,000 $2,092 $2,080 $2,800 $2,600 $2,400 $2,200 $1,306 $1,247 $2,000 $1,084 $1,800 Millions $1,600 $1,400 $1,200 $1,000 $323 $353 $326 $314 $315 $800 $600 $708 $719 $749 $692 $665 $400
Slide 21: Revenue and Non-interest Expense
Revenue and Non-interest Expense by Trailing 5 Quarters $60 $54.4 $50 $40 $43.1 $35.4 $40.0 $38.5 $30 $38.1 Millions $25.4 $22.8 $22.9 $21.6 $20 $19.1 $17.1 $17.7 $15.7 $16.4 $10 $0 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Total Revenue(1) Noninterest Expense Revenue Less Noninterest Expense (1) Tota
Slide 22: Loan Performance & Average Loan Balance
Loan Performance & Average Loan Balance by Trailing 5 Quarters Loan Performance Average Loan Balance 10.5% 10.10% 9.80% Total Total Total Total Total 9.68% 9.31% $2,544 $2,649 $2,673 $2,839 $3,564 9.06% $3,500 $1,157 9.0% 9.47% 9.21% 8.70% 8.84% 8.86% $3,000 7.5% $1,080 $2,500 $1,014 $1,027 $993 Mil
Slide 23: Purchased Loan Investment Basis and Discount
Purchased Loan Investment Basis and Discount by Trailing 5 Quarters Total UPB Total UPB Total UPB Total UPB Total UPB $1,831.2 $1,749.7 $1,886.4 $2,644.4 $2,598.3 $3,000 $37.9 $36.9 $2,500 $223.5 $205.9 $2,000 $20.2 $20.7 $17.7 $177.8 $184.4 $174.3 $1,500 Millions $2,420.9 $2,392.4 $1,000 $1,646.8 $
Slide 24: National Lending Portfolio — Q2 FY25 Return Summary
National Lending Portfolio — Q2 FY25 Return Summary (1) Purchased Originated Total Regularly Scheduled Interest & 8.36% 9.01% 8.56% Accretion Accelerated Accretion, Interest, & 0.50% 0.05% 0.36% Fees Recognized on Loan Payoffs Total 8.86% 9.06% 8.92% (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 $2,611 $2,656 $2,761 $3,503 $3,591 $3,600 $3,200 $2,800 $2,400 $2,392 $2,421 $2,000 Millions $1,709 $1,620 $1,647 $1,600 $1,200 $800 (1) $1,109 $976 $981 $1,011 $910 $400 $36 $48 $49 $68 $29 $25 $24 $23 $21 $22 $0 Q2 FY24 Q3 FY24 Q
Slide 26: Net Income
Net Income by Trailing 5 Quarters $22,440 $20,000 $17,106 $15,140 $15,000 $14,054 (1) $13,865 Thousands $10,000 $5,000 $0 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 (1) Net of a deferred tax asset write-down of $957 thousand due to a change in Massachusetts tax law regarding income tax apportionment. 2
Slide 27: Key Components of Income
Key Components of Income by Trailing 5 Quarters Net Interest Income Noninterest Income Before Credit Loss Provision 25