Northeast Bank's Record Profit
Northeast Bank reports record Q4 profit, exceeds estimates with strong loan growth and 23.5% ROE.
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Key Points
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Northeast Bank reported Q4 2026 diluted earnings per share of $4.05, beating consensus of about $3.43 by $0.62 (roughly an 18% beat).
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Q4 2026 revenue came in at $65,239,999, modestly below estimates of $67,878,565 by about $2.64 million.
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Three-year performance highlights include 82.2% cumulative loan growth, an average return on equity of 18.7%, and $755.5 million in small business loan originations, with a 4.9% three-year average net interest margin.
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The bank’s lending framework is built on three primary divisions—purchased commercial real estate, originated commercial real estate, and small business lending—supported by seven Maine branches.
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Institutional investor activity remained robust, with 66 institutions adding Northeast Bank shares in the latest disclosed period; notable buyers included Ampfield Management and American Century, and the stock carries a median analyst target around $130.50.
Northeast Bank posted record earnings for fiscal 2026, with Q4 net income of $34.3 million and diluted earnings per share of $4.05 — beating analyst estimates of $3.43 by $0.62, an 18% beat, according to Quiver Quant. Full-year net income climbed 29% to $107.5 million, pushing return on equity to 23.5% and return on assets to 2.7%.
The Maine-based lender's stock traded around $135 after the earnings release. Total loans stood near $4.59 billion, with total assets reaching about $5.23 billion, according to Yahoo Finance.
EPS Crushes Estimates but Revenue Falls Short
Northeast Bank's Q4 EPS of $4.05 topped consensus by 19%, according to ScanX Trade. That is the clearest sign of the bank's strong profit engine. But revenue told a slightly different story. Quarterly sales came in at $65.24 million, missing estimates of $67.88 million by about $2.64 million, per Quiver Quant.
The bank also declared a dividend of $0.01 per share for the quarter, according to Yahoo Finance Canada. While modest, the dividend signals continued confidence from management heading into the new fiscal year.
Three Lending Pillars Drive Loan Growth to $4.59 Billion
Northeast Bank runs on three core divisions: purchased commercial real estate, originated commercial real estate, and small business lending. All three are backed by a retail base of seven Maine branches. Over three years, the bank has grown loans by 82.2% and originated $755.5 million in small business loans, according to Watchlist News.
The bank's three-year average net interest margin — the gap between what it earns on loans and what it pays on deposits — held at 4.9%. That is well above typical community bank averages. Average return on equity over the same period came in at 18.7%, showing the model scales well.
Full-Year Profit Jumps 29%, Setting a New Record
Full-year net income rose by $24 million, or 29%, to $107.5 million — a record for the bank, according to Yahoo Finance. Tangible book value also grew, though management pointed to disciplined credit as a key driver. No major loan losses were flagged during the quarter.
The results cap a multi-year run of strong profitability. Return on equity of 23.5% puts Northeast Bank well above the industry average of roughly 10-12% for U.S. commercial banks. The bank's lean branch footprint keeps costs down while its national lending platform drives revenue up.
66 Institutions Buy In as Analysts Set $130.50 Target
Investor interest in Northeast Bank is growing fast. In the latest disclosed period, 66 institutions added shares of the stock. Notable buyers included Ampfield Management and American Century, according to Quiver Quant. The median analyst price target sits at $130.50, slightly below the post-earnings trading price of around $135.
Analysts point to the bank's attractive valuation and consistent profitability as key reasons for the bullish stance. With loans near $4.59 billion and assets at $5.23 billion, Northeast Bank has built a scalable model that larger peers have struggled to match at the same return levels.
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