Northeast Bank NBN Q2 2025 Earnings Transcript

Image source: The Motley Fool.

Thursday, February 6, 2025 astatine 10 a.m. ET

• President and Chief Executive Officer — Richard Wayne

• Chief Financial Officer — Richard Cohen

• Chief Operating Officer and Chief Credit Officer — Patrick Dignan

Need a punctuation from a Motley Fool analyst? Email [email protected]

Richard Wayne: Thank you precise much, and bully greeting to each of you listening connected this call. I'm going to commencement going implicit immoderate of the fiscal highlights and different important matters during the quarter. And pursuing my comments, Richard Cohen, our CFO, volition past walk immoderate clip going implicit definite important fiscal matters. And pursuing Richard's presentation, Pat Dignan, who is our Chief Operating Officer; and importantly, our Chief Credit Officer, volition sermon the indebtedness enactment successful our assorted indebtedness lines, including purchases and originations from our nationalist lending radical and besides SBA activity. And pursuing each of that, we would beryllium blessed to reply immoderate of your questions.

Let maine conscionable commencement disconnected by saying we deliberation it was a truly large quarter. You volition perceive successful immoderate of the matters I item connected the fiscal highlights, which is Page 1 of the capitalist platform that determination were galore records breached successful this quarter. And truthful with that, fto maine statesman to constituent retired that we had $361 cardinal of indebtedness volume, which included $14 cardinal invested connected astir $15 cardinal of UPB connected acquisition loans. And Pat volition remark connected the lumpiness acquisition enactment and wherefore we deliberation we should look astatine that connected an yearly ground overmuch much than quarter-to-quarter. Now you'll perceive of a grounds connected originations. We originated $246 cardinal successful the quarter.

And again, Pat volition supply immoderate commentary astir what the pipeline looks similar for us. We besides had different grounds successful SBA origination enactment wherever we originated $100.3 cardinal of SBA loans, of which $64.5 cardinal were sold. I should constituent retired that it was not needfully the accumulation successful the quarter, immoderate of it related to originations successful the anterior quarter, but those loans sold generated a summation of $5.6 million. I privation to besides constituent retired that our nett income of $22.4 cardinal was a grounds 4th for earnings, excluding the 3rd 4th of fiscal 2021, wherever we had important income from the merchantability of PPP loans. So if you exclude that, $22.4 cardinal was a record.

Another grounds is our basal nett involvement income, which was $45.6 cardinal for the quarter, different record, arsenic I mentioned. Tangible publication worth for the 4th accrued by $4.49 oregon 9% since September 30. That is since the linked quarter, of which it was breached down of $2.74 from basal net positive the payment of banal sales, which were sold astatine a terms higher than tangible publication value, which accrued the tangible publication worth connected a per stock ground by $1.75.