Northeast Bank NBN Q3 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 10:06 AM CST 20 min read

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Tuesday, April 29, 2025 astatine 10 a.m. ET

• President & Chief Executive Officer — Richard Wayne

• Chief Financial Officer — Rebecca Rand

• Executive Vice President, Lending — Patrick Dignan

• Chairman — Richard Cohen

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Richard Wayne: Thank you, and bully greeting to each of you. I archetypal privation to marque an reflection astir the quarter, which is, we deliberation it was a precise beardown quarter. We did $400 cardinal and I'll bash a small spot of rounding for this $414 cardinal of indebtedness volume, of which $74.6 cardinal was purchased, $218 cardinal were originated loans, which was the second-best 4th for commercialized existent property indebtedness originations that we person had, the highest being the preceding quarter. And the SBA measurement was $121.3 million, which is up from astir $100 cardinal successful the linked quarter.

I'd constituent retired that our nett income of $18.7 cardinal is $4.8 cardinal higher than the 4th a twelvemonth agone and $3.7 cardinal little than the linked quarter, which is December 31, '24. I'll notation to it arsenic the linked 4th sometimes. We had ROE of 16.47%, ROA of 1.86%, and our tangible publication worth grew to shadiness nether $55 astatine $54.84. Seems benignant of comic that I would accidental that this was a truly bully quarter, fixed that we were $3.7 cardinal little of income compared to the linked quarter.

And I privation to conscionable constituent retired immoderate things that caused that to happen, which immoderate of which, a batch of which are conscionable related to the 4th for reasons that you volition perceive arsenic I spell done this. First 1 is nett involvement income is down $2.5 cardinal from the linked quarter. These are pretax numbers I'm talking astir now. And determination are truly 2 reasons for it. One, we had little accelerated income from indebtedness payoffs connected our purchased indebtedness book. That's lumpy. That fig could beryllium successful immoderate mates of quarters spell up and goes, it was ne'er beneath zero, but it spell up oregon spell up much oregon possibly not arsenic much.

But immoderate doesn't get accelerated is income that we'll admit arsenic we clasp the loans. And this is 1 you whitethorn not person thought of, but successful the 4th that conscionable ended, it was 90 days successful the quarter, arsenic compared to 92 days successful the anterior quarter, and that's quality of astir $800,000. So, I pointed retired that nett involvement income was astir $2.5 million, and we've identified $2.3 cardinal of it. Non-interest income was $6.6 cardinal successful the existent quarter, oregon $700,000 higher than the linked quarter, chiefly owed to SBA gains. The SBA concern has been, the measurement is increasing. I'll speech astir it a small spot much successful a fewer minutes.