Northeast Bank · NASDAQ:NBN
Northeast Bank — Q1 2025 Earnings Presentation
26 slides from Northeast Bank's earnings presentation, Oct 30, 2024
Slide 1: FY25 Q1 Investor Call
FY25 Q1 Investor Call October 30, 2024
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 Q1 FY25 Total Loan Volume $942.2 million National Lending: $732.9 million invested on $807.7 million of UPB(1) Purchased Loans (90.7% purchase price) Originated Loans(2) $126.9 million (3) Weighted Average Rate as of 9/30/2024 8.85% SBA Loans Originated $82.4 million SBA Loans S
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) 3,360 $2,420,883 $721 49%(4) Direct Originated Loans (2) 89 403,079 4,529 54% Lender Finance Loans (2) 97 608,296 6,271 45% SBA and USDA Loans (3)
Slide 5: National Lending Portfolio Roll Forward: Trailing Three Months
National Lending Portfolio Roll Forward: Trailing Three Months $4,000 $3,500 $732.9 $20.5 $3,432.3 $3,000 $126.9 $97.0 $2,690.0 Millions $2,500 $2,000 $1,500 $1,000 $500 $0 Balance at 6/30/24 Originations Originated Run-off Purchases Purchased Run-Off Balance at (1) (1) 9/30/2024 (1) Run-off include
Slide 6: National Lending Activity By Trailing Quarters
National Lending Activity By Trailing 5 Quarters $800 $732.9 $700 $600 $500 Millions $400 $300 $200 $186.1 $153.3 $143.6 $114.3 $126.9 $100 $52.3$68.0 $63.5 $0.0 $0 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Purchased Originated 6
Slide 7: National Lending Loan Portfolio Statistics as of September 30, 2024
National Lending Loan Portfolio Statistics as of September 30, 2024 (1) Investment Size $15+ Million 19% $0-$2 Million 26% $10-15 Million 9% Collateral State (44 States) All Other SC 2% States $6-$10 Million TX 2% $2-$6 Million 14% 18% WA 2% 28% FL 5% Collateral Type NJ 7% Multifamily Lender 18% Fin
Slide 8: Asset Quality Metrics
Asset Quality Metrics NPAs & NPLs Classified Commercial Loans(1) 1.50% $35.0 $31.1 1.06% $30.0 1.03% 0.99% 0.94% $24.0 1.00% 0.90% $25.0 0.82% Millions $20.0 0.62% 0.55% $14.7 $15.0 $11.9 0.50% $10.0 $5.0 0.00% $0.0 6/30/22 6/30/23 6/30/24 9/30/24 6/30/22 6/30/23 6/30/24 9/30/24 NPAs/Assets NPLs/Loa
Slide 9: Nonperforming Assets Turnover – Quarter ended September 30, 2024
Nonperforming Assets Turnover – Quarter ended September 30, 2024 Nonperforming FMV of REO Total Notes Loans Collateral ( 1) (Dollars in Thousands) June 30, 2024 Balance: $28,261 $0 $28,261 NPL Additions: #1 4,300 - 4,300 5,400 Nonprofit social club in Washington, DC #2 2,400 - 2,400 2,752 Two mixed
Slide 10: Allowance Allocation
Allowance Allocation Total Loan Total Reserves at ACL / Total Total Reserves ACL / Total Loans Balances at Total Reserves at ACL / Total Loans Loan Segment September 30, Loans at June at September at September 30, September 30, June 30, 2024 at June 30, 2024 2024 30, 2024 30, 2023 2023 2024 Dollars
Slide 11: 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 $5,827 57% $53,237 35% $72,798 55% $131,862 47% Hospitality 116,844
Slide 12: National Lending Portfolio — Weighted Average LTV By Bucket
National Lending Portfolio — Weighted Average LTV By Bucket WA LTV National Lending Portfolio <40% 40-49% 50-59% 60-69% 70-79% >=80% Total Dollars in thousands Direct Originated Loans (1) $40,533 $108,678 $106,881 $83,072 $44,684 $19,231 $403,079 Lender Finance Loans (1) 215,097 124,275 204,272 45,7
Slide 13: National Lending Purchased Portfolio — Further Analysis
National Lending Purchased Portfolio — Further Analysis Portfolio Origination Year Dollars in thousands Pre-2013 2013-2018 2019 and later Total Current Basis $240,268 $993,642 $1,186,973 $2,420,883 # of Loans 760 1,884 716 3,360 % of Portfolio 10% 41% 49% 100% Original Principal Balance $573,605 $1,
Slide 14: National Lending Originated Portfolio — Interest Reserve Analysis
National Lending Originated Portfolio — Interest Reserve Analysis Lender Finance % with Interest WA Dollars in thousands Balance Interest Reserve WA Advance WA LTV(2) Reserves Duration Rate(1) Total Lender Finance Loans $608,296 60% 45% Lender Finance Loans with Interest 491,686 81% 5.9 Months Reser
Slide 15: SBA Loan Activity
SBA Loan Activity SBA Loan Originations and Sales (dollars in thousands) $90,000 900 $80,000 800 766 $70,000 700 $60,000 600 $82,425 Count of Loans $50,000 500 $63,110 373 $40,000 400 330 $30,000 300 $40,158 195 $20,000 $29,001 200 141 $26,755 $18,938 $10,000 100 $13,595 $9,725 $11,517 3/31/22 $- $5
Slide 16: Quarterly Cost of Deposits
Quarterly Cost of Deposits 4.5% 4.4% 4.36% 4.34% 4.3% 4.31% 4.2% 4.16% 4.18% 4.1% 4.0% 3.9% 3.91% 3.8% 3.7% 3.6% 3.5% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Average Cost of Deposits by Quarter Cost of Deposits as of Quarter-end 16
Slide 17: Deposit Portfolio Changes
Deposit Portfolio Changes By Channels September 30, 2024 September 30, 2023 Net Change Dollars in thousands Balance WAR Mix Balance WAR Mix Balance % WAR Retail Banking Centers 927,423 3.66% 30% $725,563 3.70% 37% $201,860 28% -0.04% Government Banking 426,278 4.68% 14% 319,049 4.86% 16% 107,229 34%
Slide 18: 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 $2,500 $100.0 Deposit Portfolio Interest Expense $2,000 $80.0 $1,500 $60.0 $1,000 $40.0 $500 $20.0 $0 $- Oct-23 Nov-23 D
Slide 19: Deposit Mix By Trailing Quarter Ends
Deposit Mix By Trailing 5 Quarter Ends $3,400 Total Total Total Total Total $3,125 $3,200 $1,967 $2,129 $2,227 $2,340 $3,000 $2,092 $2,800 $2,600 $2,400 $2,200 $1,306 $1,247 $2,000 $1,084 $1,800 $988 Millions $1,600 $1,400 $1,200 $1,000 $353 $326 $314 $800 $354 $315 $600 $692 $708 $719 $626 $665 $40
Slide 20: Revenue and Noninterest Expense for Trailing Quarters
Revenue and Noninterest Expense for Trailing 5 Quarters $50 $45 $43.1 $40 $40.0 $35 $38.1 $37.9 $38.5 $30 $25.4 $25 $22.5 $22.8 $22.9 Millions $21.6 $20 $17.1 $17.7 $15 $16.4 $15.4 $15.7 $10 $5 $0 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Total Revenue(1) Noninterest Expense Pre-tax, pre-provision inc
Slide 21: Loan Performance & Average Loan Balance For Trailing Quarters
Loan Performance & Average Loan Balance For Trailing 5 Quarters Loan Performance Average Loan Balance for Trailing 5 Quarters $3,500 10.5% 9.98% 10.10% Total Total Total Total Total 9.80% 9.68% $2,503 $2,544 $2,649 $2,673 $2,839 9.31% $3,000 9.0% 9.47% 9.04% 9.21% 8.84% $1,080 8.70% $2,500 $1,014 $1
Slide 22: Purchased Loan Investment Basis and Discount By Trailing Quarters
Purchased Loan Investment Basis and Discount By Trailing 5 Quarters Total UPB Total UPB Total UPB Total UPB Total UPB $1,693.6 $1,831.2 $1,749.7 $1,886.4 $2,644.4 $3,000 $2,500 $223.5 $2,000 $184.4 $177.8 $174.3 $177.2 $1,500 Millions $2,420.9 $1,000 $1,646.8 $1,620.4 $1,708.6 $1,516.4 $500 $0 Q1 FY
Slide 23: National Lending Portfolio — Q1 FY25 Return Summary
National Lending Portfolio — Q1 FY25 Return Summary(¹) Purchased Originated Total Regularly Scheduled Interest & 8.38% 9.29% 8.71% Accretion Accelerated Accretion, Interest, & Fees Recognized on Loan 0.46% 0.02% 0.30% Payoffs Total 8.84% 9.31% 9.01% (1) The total return on purchased loans represents
Slide 24: Loan Mix As of Trailing Quarter Ends
Loan Mix As of Trailing 5 Quarter Ends $4,000 Total Total Total Total Total $2,528 $2,611 $2,656 $2,761 $3,503 $3,600 $3,200 $2,800 $2,400 $2,421 $2,000 Millions $1,620 $1,709 $1,516 $1,647 $1,600 $1,200 $800 (1) $958 $910 $976 $981 $1,011 $400 $27 $29 $36 $48 $49 $0 $27 $25 $24 $23 $22 Q1 FY24 Q2 F
Slide 25: Net Income for Trailing Quarters
Net Income for Trailing 5 Quarters $20,000 $18,000 $17,106 $16,000 $15,172 $15,140 $14,054 (1) $13,865 $14,000 $12,000 Thousands $10,000 $8,000 $6,000 $4,000 $2,000 $0 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 (1) Net of a deferred tax asset write-down of $957 thousand due to a change in Massachusetts
Slide 26: Key Components of Income For Trailing Quarters
Key Components of Income For Trailing 5 Quarters Net Interest Income Noninterest Income Before Credit Loss Provision 26