Northeast Bank · NASDAQ:NBN
Northeast Bank — Q3 FY2024 Earnings Presentation
25 slides from Northeast Bank's earnings presentation, May 1, 2024
Slide 1: FY24 Q3 Investor Call
FY24 Q3 Investor Call May 1, 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 Q3 FY24 YTD FY24 Total Loan Volume $182.4 million $576.1 million National Lending: $238.5 million invested on $271.7 million of Purchased Loans None UPB(1) (87.8% purchase price) Originated Loans(2) $153.3 million $284.9 million Weighted Average Rate as of 3/31/2024(3) 9.31% 9.3
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) 3,292 $1,620,409 $492 46%(4) Direct Originated Loans (2) 94 443,942 4,723 55% Lender Finance Loans (2) 95 531,934 5,599 44% SBA and USDA Loans (3)
Slide 5: National Lending Portfolio Roll Forward
National Lending Portfolio Roll Forward: Trailing Three Months $3,000 $153.3 $87.7 $- $26.2 $2,596.3 $2,556.9 $2,500 $2,000 Millions $1,500 $1,000 $500 $0 Balance at 12/31/23 Originations Originated Run-off Purchases Purchased Run-Off Balance at (1) (1) 3/31/2024 (1) Run-off includes scheduled amort
Slide 6: National Lending Activity By Trailing Quarters
National Lending Activity By Trailing 5 Quarters $200 $186.1 $180 $160 $153.3 $140 $117.1 $120 Millions $100 $84.2 $80 $68.0 $63.5 $60 $52.3 $48.8 $40 $21.5 $20 $0.0 $0 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Purchased Originated 6
Slide 7: National Lending Loan Portfolio Statistics as of March 31, 2024
National Lending Loan Portfolio Statistics as of March 31, 2024 (1) Investment Size $15+ Million 17% $0-$2 Million 29% $10-15 Million 8% Collateral State (44 States) All Other OR 2% States 16% $6-$10 Million TX 3% 17% $2-$6 Million WA 3% 29% NJ 5% NY 33% Collateral Type FL 5% Retail(2) Lender 17% Fi
Slide 8: Asset Quality Metrics
Asset Quality Metrics NPAs & NPLs Classified Commercial Loans(1) 1.50% $30.0 $27.0 1.18% $24.4 1.04% 1.05% $25.0 0.99% 1.00% 0.93% 0.82% $20.0 Millions $14.7 0.62% $15.0 0.55% $11.9 0.50% $10.0 $5.0 0.00% 6/30/22 6/30/23 12/31/23 3/31/24 $0.0 6/30/22 6/30/23 12/31/23 3/31/24 NPAs/Assets NPLs/Loans A
Slide 9: Nonperforming Assets Turnover – Quarter ended March 31, 2024
Nonperforming Assets Turnover – Quarter ended March 31, 2024 Nonperforming FMV of REO Total Notes Loans Collateral(1) (Dollars in Thousands) December 31, 2023 Balance: $30,772 $0 $30,772 NPL Additions: 56 loans placed on nonaccrual with largest Various 844 - 844 invested balance of $165 thousand Tot
Slide 10: Allowance Allocation
Allowance Allocation ALL / Total Total Total Loan Total Reserves ALL / Total Total Reserves ALL / Total Loans at Reserves at Loan Segment Balances at at March 31, Loans at at December Loans at December 31, March 31, March 31, 2024 2024 March 31, 2024 31, 2023 March 31, 2023 2023 2023 Dollars in thou
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 $17,987 65% $38,465 38% $4,094 41% $60,546 46% Hospitality 106,511 5
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) $61,394 $82,574 $134,061 $90,985 $52,209 $22,720 $443,942 Lender Finance Loans (1) 213,221 124,387 118,394 57,03
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 $254,763 $783,853 $581,793 $1,620,409 # of Loans 804 1,955 534 3,293 % of Portfolio 16% 48% 36% 100% Original Principal Balance $599,443 $1,26
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 $531,934 63% 44% Lender Finance Loans with Interest 457,625 86% 5.3 Months Reser
Slide 15: Quarterly Cost of Deposits
Quarterly Cost of Deposits 4.4% 4.31% 4.23% 4.2% 4.16% 4.0% 3.91% 3.8% 3.6% 3.59% 3.4% 3.23% 3.2% 3.0% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Average Cost of Deposits by Quarter Cost of Deposits as of Quarter-end 15
Slide 16: Deposit Portfolio Changes
Deposit Portfolio Changes By Channels March 31, 2024 March 31, 2023 Net Change Dollars in thousands Balance WAR Mix Balance WAR Mix Balance % WAR Community Banking Banking Centers 3.39% 37% $614,968 1.61% 29% $202,091 33% 1.78% 817,059 Government Banking 347,470 4.99% 16% 318,701 4.33% 15% 9% 0.66%
Slide 17: Deposit Portfolio and Interest Analysis
Deposit Portfolio and Interest Analysis Trailing Twelve-Month Deposit Portfolio and Annualized Interest Expense (Includes Brokered Deposits) $ Millions $2,500 $100.0 $90.0 $2,000 $80.0 $70.0 Deposit Portfolio Interest Expense $1,500 $60.0 $50.0 $1,000 $40.0 $30.0 $500 $20.0 $10.0 $0 $- Apr-23 May-23
Slide 18: Deposit Mix By Trailing Quarter Ends
Deposit Mix By Trailing 5 Quarter Ends $2,600 Total Total Total Total Total $2,400 $2,129 $1,937 $1,967 $2,129 $2,227 $2,200 $1,247 $2,000 $1,011 $1,084 $919 $988 $1,800 $1,600 $1,400 Millions $1,200 $1,000 $339 $356 $353 $354 $315 $800 $779 $600 $662 $692 $709 $626 $400 $200 $0 Q3 FY23 Q4 FY23 Q1 F
Slide 19: Revenue and Noninterest Expense for Trailing Quarters
Revenue and Noninterest Expense for Trailing 5 Quarters $45 $40 $38.5 $38.1 $35 $37.9 $35.3 $30 $33.4 $25 Millions $20 $15 $16.4 $16.4 $15.4 $15.7 $13.8 $10 $5 $0 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Total Revenue(1) Noninterest Expense (1) Total Revenue includes net interest income before credit
Slide 20: Loan Performance & Average Loan Balance
Loan Performance & Average Loan Balance For Trailing 5 Quarters Loan Performance Average Loan Balance for Trailing 5 Quarters 10.5% 10.10% $3,000 Total Total Total Total Total 9.98% 9.80% 9.52% $2,502 $2,509 $2,503 $2,544 $2,649 9.22% 9.04% 9.21% 9.0% $2,500 $1,014 $1,039 $1,048 $1,014 $993 8.70% 7.
Slide 21: 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 $1,650.1 $1,667.9 $1,693.6 $1,831.2 $1,794.7 $2,000 $1,800 $184.4 $174.3 $23.0 $22.9 $1,600 $177.2 $166.5 $164.9 $1,400 $1,200 $1,000 Millions $800 $1,646.8 $1,620.4 $1,460.6 $1,480.
Slide 22: National Lending Portfolio — Q3 FY24 Return Summary
National Lending Portfolio — Q3 FY24 Return Summary(¹) Purchased Originated Total Regularly Scheduled Interest 8.37% 9.66% 8.85% & Accretion Accelerated Accretion, Interest, & Fees Recognized 0.33% 0.43% 0.37% on Loan Payoffs Total 8.70% 10.09% 9.22% (1) The total return on purchased loans represent
Slide 23: Loan Mix As of Trailing Quarter Ends
Loan Mix As of Trailing 5 Quarter Ends $3,000 Total Total Total Total Total $2,800 $2,510 $2,520 $2,528 $2,611 $2,656 $2,600 $2,400 $2,200 $2,000 $1,800 $1,620 $1,461 $1,480 $1,516 $1,647 $1,600 Millions $1,400 $1,200 $1,000 $800 $600 (1) $995 $988 $958 $910 $976 $400 $200 $0 $54 $52 $54 $54 $60 Q3
Slide 24: Net Income for Trailing Quarters
Net Income for Trailing 5 Quarters $16,000 $15,172 (1) $14,054 $13,865 $14,000 $12,517 $12,086 $12,000 $10,000 Thousands $8,000 $6,000 $4,000 $2,000 $0 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 (1) Net of a deferred tax asset write-down of $957 thousand due to a change in Massachusetts tax law regardi
Slide 25: Key Components of Income For Trailing Quarters
Key Components of Income For Trailing 5 Quarters Net Interest Income Noninterest Income Before Credit Loss Provision 25