Northeast Bank Reports Record $25M Q2 Earnings on 36% Loan Growth

Northeast Bank reported record net income of $25.2 million, or $3.00 per diluted share, for the fiscal fourth quarter of 2025, marking a substantial increase from $15.1 million, or $1.91 per share, in the prior year. This growth was driven primarily by a surge in net interest income fueled by rapid expansion in the bank’s loan portfolio and total assets, which grew over 36% year-over-year to $4.28 billion. Lending activity remained robust, with total quarterly originations and purchases reaching $365.6 million and a year-to-date total of $2.08 billion, resulting in a loan portfolio of $3.79 billion. The bank's weighted average floor rate on variable rate loans was high, supporting strong interest revenue, alongside a $6.8 million gain on SBA loan sales that boosted noninterest income. Institutional investor activity reflected mixed sentiment, with some major funds increasing holdings while others reduced positions. Northeast Bank’s performance highlights the advantage of higher interest rates for regional lenders able to grow loans rapidly, positioning the bank favorably amid evolving regulatory and economic conditions.