Q3 2026 Northeast Bank Earnings Call

April 28, 2026

Speaker #1: This call is being recorded. With us today from the bank is Rick Wayne, President and Chief Executive Officer; Santino Delmolino, Chief Financial Officer; and Patrick Dignan, Chief Operating Officer and Chief Credit Officer.

Speaker #1: Prior to the call, an investor presentation was uploaded to the bank's website, which we'll reference in this morning's call. The presentation can be accessed at the investorsrelations sections of NORTHEASTBANK.com under Events and Presentation.

Speaker #1: You may find it helpful to download this investor presentation and follow along during the call. Also, this call will be available for reproadcast on the website for future use.

Speaker #1: At this time, all participants are listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you have a question, please press star 11 to ask the question.

Speaker #1: To remove yourself from the queue, please start please press star 11 again. As a reminder, the conference is being recorded. Please note this presentation contains forward-looking statements about NORTHEAST Bank, forward-looking statements are based upon current expectations of NORTHEAST Bank's management in our subject to risk and uncertainties.

Speaker #1: Actual results may differ materially from those discussed in forward-looking statements. NORTHEAST Bank does not undertake any obligation to update any forward-looking statements. On an alternative call over to Rick Wayne, Mr. Wayne, you may begin.

Speaker #2: Thank you very much. And welcome, everybody. With me, this morning, are Patrick Dignan, our Chief Operating Officer; and Chief Credit Officer; Santino Delmolino; our Chief Financial Officer; and Rebecca Rand, our Director of Accounting.

Speaker #2: Plan for this morning is I will provide an overview of the quarter, and following my presentation, Santino will provide some more granular analysis on our financial statements, and Patrick will provide or generate a discussion on our loan activity for the quarter.

Operator: Welcome to the Northeast Bank Q3 Fiscal Year 2026 Earnings Call. My name is Marvin, and I'll be your operator for today's call. This call is being recorded. With us today from the bank is Rick Wayne, President and Chief Executive Officer; Santino Delmolino, Chief Financial Officer; and Pat Dignan, Chief Operating Officer and Chief Credit Officer. Prior to the call, an investor presentation was uploaded to the bank's website, which we'll reference in this morning's call. The presentation can be accessed at the investor relations sections of northeastbank.com under Events and Presentation. You may find it helpful to download this investor presentation and follow along during the call. Also, this call will be available for rebroadcast on the website for future use. At this time, all participants are listen-only mode.

Speaker #2: And after all of that, we welcome any questions that you might have. Let me start off by saying it was a great quarter. It really was a great quarter.

Speaker #2: And including breaking some records in the bank's long history going back to 1872. First, originated loans for the quarter were 254 million dollars. I'm incidentally on the financial highlights page number 3 of the material uploaded.

Operator: Later, we will conduct a question and answer session. During the question and answer session, if you have a question, please press star one one to ask the question. To remove yourself from the queue, please press star one one again. As a reminder, the conference is being recorded. Please note this presentation contains forward-looking statements about Northeast Bank. Forward-looking statements are based upon current expectations of Northeast Bank management and are subject to risk and uncertainties. Actual results may differ materially from those discussed in forward-looking statements. Northeast Bank does not undertake any obligation to update any forward-looking statements. I'll now turn the call over to Rick Wayne. Mr. Wayne, you may begin.

Speaker #2: And that's a record beating last quarter's previous record. So that is we were very busy. Except for the third quarter of fiscal year '21, when we had a significant amount of gains from the sale of triple P loans, this is a record earnings quarter in the history of the bank.

Speaker #2: And along those same lines, it is a record for the most net interest income in the bank's history. So we are very proud of those records that were broken, taking a look now at some of the other items in the financial highlights.

Rick Wayne: Thank you very much. Welcome everybody. With me this morning are Pat Dignan, our Chief Operating Officer and Chief Credit Officer, Santino Delmolino, our Chief Financial Officer, and Rebecca Rand, our Director of Accounting. Plan for this morning is I will provide an overview of the quarter. Following my presentation, Santino will provide some more granular analysis on our financial statements. Pat will provide discuss or generate a discussion on our loan activity for the quarter. After all of that, we welcome any questions that you might have. Let me start off by saying it was a great quarter. It really was a great quarter, and including breaking some records in the bank's long history going back to 1872.

Rick Wayne: Thank you very much. Welcome everybody. With me this morning are Pat Dignan, our Chief Operating Officer and Chief Credit Officer, Santino Delmolino, our Chief Financial Officer, and Rebecca Rand, our Director of Accounting. Plan for this morning is I will provide an overview of the quarter. Following my presentation, Santino will provide some more granular analysis on our financial statements. Pat will provide, discuss or generate a discussion on our loan activity for the quarter. After all of that, we welcome any questions that you might have. Let me start off by saying it was a great quarter. It really was a great quarter, and including breaking some records in the bank's long history going back to 1872.

Speaker #2: We had a total loan volume in all areas of $345 million. I’d also point out, for the year to date, which is nine months of our fiscal year, $1.56 billion.

Speaker #2: And which is an increase that they're now going back to the quarter, an increase in loans for the quarter of 121.5 million dollars. I want to just comment briefly on purchase loan activity but I'm not going to say that much because Patrick's going to cover this in more detail.

Speaker #2: As you are aware, no doubt, at our last call we talked about how active the market was in loan purchase activity. How much was on the market?

Speaker #2: A lot of it coming from M&A activity. And with that, you might say, "Well, if it is so robust, why did you only invest 25 million dollars in the quarter?" And it wasn't for a lack of work.

Rick Wayne: First, originated loans for the quarter were $254 million. Incidentally, on the financial highlights, page 3 of the material uploaded. That's a record beating last quarter's previous record. We were very busy. Except for Q3 of fiscal year 2021 when we had a significant amount of gains from the sale of PPP loans, this is a record earnings quarter in the history of the bank. Along those same lines, it is a record for the most net interest income in the bank's history. We're very proud of those records that were broken. Taking a look now at some of the other items in the financial highlights. We had a total loan volume in all areas of $345 million.

Rick Wayne: First, originated loans for the quarter were $254 million. Incidentally, on the financial highlights, page three of the material uploaded. That's a record beating last quarter's previous record. We were very busy. Except for Q3 of fiscal year 2021 when we had a significant amount of gains from the sale of PPP loans, this is a record earnings quarter in the history of the bank. Along those same lines, it is a record for the most net interest income in the bank's history. We're very proud of those records that were broken. Taking a look now at some of the other items in the financial highlights. We had a total loan volume in all areas of $345 million.

Speaker #2: We looked at in excess of a billion dollars we've been in excess of a billion dollars and unfortunately we didn't win that much compared to what we look at.

Speaker #2: So you might say that's a bad thing. Contrary view to that is that we're disciplined bidders both in terms of asset quality and yield requirements.

Speaker #2: And some quarters we buy more than others. But we're never loans that we don't that don't meet our metrics just so we can have volume on the balance sheet.

Speaker #2: And now this is a good time to just take a look at what's happened for nine months. For nine months, on the purchase side, we've invested over 700 million dollars.

Speaker #2: And so this was a slower quarter. And we'll keep at it every quarter there. And I don't want to say anything more about that because Patrick will have a lot more to say.

Rick Wayne: I'd also point out for the year to date, which is nine months of our fiscal year, $1.56 billion, and they are now going back to the quarter, an increase in loans for the quarter of $121.5 million. I want to just comment briefly on purchase loan activity, but I am not going to say that much because Pat is going to cover this in more detail. As you are aware, no doubt, at our last call, we talked about how active the market was in loan purchase activity, how much was on the market, a lot of it coming from M&A activity.

Speaker #2: The margin numbers were very, very solid. The NIM was 5.15%. And the total return on purchased loans for the quarter was 9.51%, which has been that's significantly higher than we have seen.

Speaker #2: And one thing I want to bring your attention to, is on page 31 of the slide deck, which is a slide that shows how much discount we have on our balance sheet that comes in at different paces.

Speaker #2: Sometimes but at the end of the March the Q3, after March 31, we had 154 million dollars of interest rate discount. Which typically comes in over the life of the loan.

Rick Wayne: You know, with that, you might say, "Well, if it is so robust, why did you only invest $25 million in the quarter?" It wasn't for a lack of work. We looked at we bid in excess of $1 billion, unfortunately, we didn't win that much compared to what we look at. You might say that's a bad thing. A contrary view to that is that we're disciplined bidders, both in terms of asset quality and yield requirements. You know, some quarters we buy more than others, but we're never going to buy loans that we don't meet our metrics just so we can have volume on the balance sheet.

Speaker #2: Unless the loan gets paid off early and then you recognize that earlier. And 46 million dollars of credit mark which doesn't run through the net interest income anymore under the new CISO rules.

Speaker #2: But that's 200 million dollars of discount. We're confident that the 154 million will come in. And we always get a pretty good chunk of the credit mark as well that runs through the allowance.

Speaker #2: We saw that this quarter and that's why the yield on purchased loan was so high. Because we had so much transactional income which Santino will talk about as well.

Rick Wayne: Now this is a good time to just to take a look at what's happened for 9 months. For 9 months on the purchase side, we've invested over $700 million. This was a slower quarter, we'll keep at it every quarter there. I don't want to say anything more about that 'cause Pat will have a lot more to say. The margin numbers were very, very solid. The NIM was 5.15%, the total return on purchased loans for the quarter was 9.51%, which has been. That's significantly higher than we have seen.

Speaker #2: We mentioned that we had 29.9 million dollars of net income. And looking at these numbers also very large that we had EPS, basic of $3.59 a share.

Speaker #2: And fully diluted of $3.53 for the quarter. Return on equity was 21.67%. And return on assets was 2.43%. And tangible book value per share is now up to 66 dollars and 35 cents.

Rick Wayne: One thing I wanna bring your attention to, is on page 31 of the slide deck, which is a slide that shows how much discount we have on our balance sheet that comes in at different paces sometimes. At the end of Q3 from 31 March, we had $154 million of interest rate discount, which typically comes in over the life of the loan, unless the loan gets paid off early, and then you recognize that earlier. Forty-six million dollars of credit mark, which doesn't run through the net interest income anymore under the new CECL rules. That's $200 million of discount.

Speaker #2: A remarkable quarter and with that I will ask Tino to go over the financials.

Speaker #3: Awesome. Thanks, Rick. As Rick mentioned, this was another great quarter for the bank. We reported income of $29.9 million, or $3.53 per diluted share for the quarter.

Speaker #3: And 73.1 million or $8.67 per diluted share for the year to date. As Rick mentioned, ROA came in at 2.43% for the quarter. And 2.15% for the year to date.

Speaker #3: While return on equity was 21.7 for the quarter and 18.4 for the year to date. Total assets end of the quarter for the first time just above $5 billion.

Speaker #3: And loans end of the quarter at 4.4 billion which is up about 100 million dollars or 2% from the linked quarter. Growth this quarter was focused in our originated book as Rick mentioned we had record originations in that portfolio.

Rick Wayne: We're confident that the $154 million will come in, and, you know, we always get a pretty good chunk of the credit mark as well that runs through the allowance. We saw that this quarter, and that's why the yield on purchase loan was so high because we have so much transactional income, which then Tino will talk about as well. We mentioned that, you know, we had $29.9 million of net income. Looking at these numbers also, very large. We had EPS basic of $3.59 a share, and fully diluted of $3.53 for the quarter. Return on equity was 21.67%, and return on assets was 2.43%.

Speaker #3: And the portfolio itself saw growth quarter over quarter of 145 million. Or 11%. Offset slightly by a decrease in our purchase portfolio. 46 million or 2%.

Speaker #3: Net interest margin was really strong this quarter, coming in at 5.15%, which is up from 4.49% in the prior quarter. This resulted in net interest income of $63.1 million for the quarter to date.

Speaker #3: And 160 million for the year to date. Saw great expansion in the yield on our purchase portfolio this quarter. Which is driven by a combination of both accelerated accretion of 7.3 million with certain loans within the portfolio paid down or paid off.

Speaker #3: As well as increased quarter yield expansion. As a result of recent purchase activity and existing loans repricing. We also continued to see relief on the funding side of the balance sheet with our average cost of funds coming down seven basis points quarter over quarter.

Speaker #3: As higher priced CDs mature and are replaced by cheaper funding. Asset quality remained strong with delinquencies, non-accruals, and classified loans all remaining relatively flat quarter over quarter.

Rick Wayne: Tangible book value per share is now up to $66.35. A remarkable quarter. With that, I will ask Tino to go over the financials.

Speaker #3: But you will note that we took two non-performing loans into Oreo during the quarter. So total NPAs stayed flat. The NPLs are down a bit.

Santino Delmolino: Awesome. Thanks, Rick. As Rick mentioned, this was another great quarter for the bank. We reported income of $29.9 million, or $3.53 per diluted share for the quarter, and $73.1 million, or $8.67 per diluted share for the year to date. As Rick mentioned, ROA came in at 2.43% for the quarter, and 2.15% for year to date. While return on equity was 21.7% for the quarter and 18.4% for the year to date. Total assets ended the quarter for the first time just above $5 billion. Loans ended the quarter at $4.4 billion, which is up about $100 million or 2% from the linked quarter. Growth this quarter was focused in our originated book.

Speaker #3: The allowance for credit losses decreased this quarter from 63.8 million or a coverage ratio of 147 as of 12/31 to 60.3 million or a coverage ratio of 136.

Speaker #3: At 3/31. As performance of our PCD portfolio continued to trend positively. And we were able to release some reserves on that portfolio. This was offset by an increase in the coverage ratio on our SBA book.

Speaker #3: Net charge offs for the quarter were 3.4 million up slightly from 2.9 million in the linked quarter. And the expense side we continued to be disciplined while strategically investing in our people and in technologies that will set the bank up for long-term success.

Santino Delmolino: As Rick mentioned, we had record originations in that portfolio. The portfolio itself saw growth quarter-over-quarter of $145 million or 11%. Which was offset slightly by a decrease in our purchase portfolio of $46 million or 2%. Net interest margin was really strong this quarter, coming in at 5.15%, which is up from 4.49% in the prior quarter, resulting in net interest income of $63.1 million for the quarter to date and $160 million for the year to date.

Speaker #3: Non-interest expense for the quarter was 23.6 million up from 20.8 million in the linked quarter. This is due to increased compensation costs as we trued up our year-end bonus accrual during the period.

Speaker #3: As well as increased loan expense in relation to our small balance insured loan product. With increased insurance costs there. Tax expense for the quarter came in at 13.3 million representing an ETR of 30.9% compared to 9.4 million or an ETR of 31% in the linked quarter.

Santino Delmolino: Saw a great expansion in the yield on our purchase portfolio this quarter, which is driven by a combination of both accelerated accretion, $7.3 million, as certain loans within the portfolio paid down or paid off, as well as increased core yield expansion as a result of recent purchase activity and existing loans repricing. We also continue to see relief on the funding side of the balance sheet with our average cost of funds coming down 7 basis points quarter-over-quarter as higher priced CDs mature and are replaced by cheaper funding. Asset quality remains strong with delinquencies, non-accruals, and classified loans all remaining relatively flat quarter-over-quarter. You will note that we took 2 non-performing loans into OREO during the quarter. Total NPAs stayed flat. NPLs are down a bit.

Speaker #3: Capital remained strong. Tier 1 leverage ratio at 11.4%. And tangible book at 66 dollars and 35 cents a share. Giving us with plenty of loan capacity coming into the final quarter of the fiscal year.

Speaker #3: Now I'll hand it over to Pat to talk through our loan activity during the period.

Speaker #4: Thanks, Tino. This was a solid quarter for loan volume. Purchases were 25 million comprised of eight loans and three transactions with all but one loan from bank sellers.

Speaker #4: As Rick pointed out we bid on well over a billion dollars of loans and this included two large pools. Where we were competitive but ultimately unsuccessful.

Speaker #4: While disappointing there's still a lot in the pipeline currently. And our contacts are all confident of a lot more coming over the next one to three years.

Speaker #4: This continues to be a very good environment for us. And we're confident there'll be a lot more loan pools. And that we'll win our share.

Santino Delmolino: The allowance for credit losses decreased this quarter from $63.8 million or a coverage ratio of 147% as of 31 December 2023 to $60.3 million for a coverage ratio of 136% at 31 March 2024 as performance of our PCD portfolio continued to trend positively, and we were able to release some reserves on that portfolio. This was offset by an increase in the coverage ratio on our SBA book. Net charge-offs for the quarter was $3.4 million, up slightly from $2.9 million in the linked quarter. On the expense side, we continue to be disciplined while strategically investing in our people and in technologies that will set the bank up for long-term success. Non-interest expense for the quarter was $23.6 million, up from $20.8 million in the linked quarter.

Speaker #4: While also remaining disciplined. The origination business continues to grow. As pointed out we closed 254 million this quarter on other record increasing that book by over 10%.

Speaker #4: This included 33 loans with an average balance of 7 million. LTVs just over 50%. And an average interest rate of around 7.2. Like last quarter two-thirds of this volume was lender finance loans.

Speaker #4: Demand remains very strong for both direct and lender finance opportunities. Especially in the middle market space where there are fewer competitors. We have a great niche in this market and remain well positioned for a continuation of this volume.

Speaker #4: Finally in our small balance loan program we originated 422 loans for 65 million. SBA loans accounted for about 38 million of that. Once again more rule changes slowed us down a bit.

Santino Delmolino: This is due to increased compensation costs as we trued up our year-end bonus accrual during the period, as well as increased loan expense in relation to our small balance insured loan product, with increased insurance costs there. Tax expense for the quarter came in at $13.3 million, representing an ETR of 30.9% compared to $9.4 million or an ETR of 31% in the linked quarter. Capital remains strong. Tier 1 leverage ratio at 11.4% and tangible book at $66.35 a share, giving us with plenty of loan capacity, coming into the final quarter of the fiscal year. I'll hand it over to Pat to talk through our loan activity during the period.

Speaker #4: But absent more of those we're confident we can get to a consistent volume of around 20 million a month. The SBA recently announced a 90% loan guarantee for 7(a) loans in the grocery and manufacturing sectors beginning May 1st.

Speaker #4: This should be good for us. We're working with Nuity to stand up a program to participate in that. And should have more to report next quarter.

Speaker #4: We also closed 27 million of small balance insured loans. As a reminder there's a significant demand for this product. And we have intentionally slowed originations until we're confident in our ability to sell them.

Speaker #4: We're actively negotiating with several groups and can increase volume significantly once a predictable forward flow process is finalized. That's it for loans from last quarter.

Pat Dignan: Thanks, Tino. This was a solid quarter for loan volume. Purchases were $25 million, comprised of 8 loans and 3 transactions with all but 1 loan from bank sellers. As Rick pointed out, we bid on well over $1 billion of loans, this included two large pools where we were competitive but ultimately unsuccessful. While disappointing, there's still a lot in the pipeline currently, our contacts are all confident of a lot more coming over the next 1 to 3 years. This continues to be a very good environment for us, we're confident there'll be a lot more loan pools and that we'll win our share while also remaining disciplined. The origination business continues to grow. As pointed out, we closed $254 million this quarter, another record increasing that book by over 10%.

Speaker #4: The current quarter is already going very strong, and we hope to continue the good news in our July call. Rick?

Speaker #5: Thank you, Pat. Thank you, Santino. Operator, we're now ready to answer any questions that the group may have.

Speaker #6: Thank you. We will now begin the question and answer session. If you have a question please press star 11 on your touch-tone phone. If you wish to be removed from the queue please press star 11.

Speaker #6: If you are using a speakerphone you may need to pick up the headset first before pressing the numbers. Once again if you have a question please press star 11 on your touch-tone phone.

Pat Dignan: This included 33 loans with an average balance of $7 million, LTVs just over 50%, and an average interest rate of around 7.2. Like last Q, two-thirds of this volume was lender finance loans. Demand remains very strong for both direct and lender finance opportunities, especially in the middle market space where there are fewer competitors. We have a great niche in this market and remain well positioned for a continuation of this volume. Finally, in our small balance loan program, we originated 422 loans for $65 million. SBA loans accounted for about $38 million of that. Once again, more rule changes slowed us down a bit, but absent more of those, we're confident we can get to a consistent volume of around $20 million a month.

Speaker #6: Please stand by while we compile the Q&A roster. Now, first question concerning the line of payment volunteer of KVW. Line is now open.

Speaker #7: Hey, good morning everyone. Hope you're all doing well today. And thanks for taking my question. So first question on the deposit growth this quarter.

Speaker #7: I think brokered and CDs were up over 700 million. Which significantly improves the loaner deposit ratio. Just kind of curious on the thought behind that and the strategy of adding so much extra liquidity.

Speaker #7: Is that in anticipation of more purchase activity happening here in this coming quarter? Or I guess it's a little color on the thought behind that.

Pat Dignan: The SBA recently announced a 90% loan guarantee for 7(a) loans in the grocery and manufacturing sectors beginning 1 May. This should be good for us. We're working with Newity to stand up a program to participate in that and should have more to report next quarter. We also closed $27 million of small balance insured loans. As a reminder, there's a significant demand for this product, and we have intentionally slowed originations until we're confident in our ability to sell them. We're actively negotiating with several groups and can increase volume significantly once a predictable forward flow process is finalized. That's it for loans from last quarter. The current quarter is already going very strong and we hope to continue the good news in our July call. Rick?

Speaker #7: Thanks.

Speaker #5: Yeah. Yeah. Damon, question for you on where you're seeing those numbers. Deposits are up. Actually deposits might be down quarter over quarter. If you're looking at the linked quarter.

Speaker #8: 168.

Speaker #5: Yeah. Deposits are down $168 million quarter over quarter, so relatively flat. What we did have from a deposit standpoint—you'll see we had some brokered CDs mature in the month of March.

Speaker #5: That we ended up rolling into FHLB borrowings. Given favorable rate a bit of a rate disconnect between FHLB and the brokered market.

Rick Wayne: Thank you, Pat. Thank you, Santino.

Speaker #7: Gotcha. Okay. So I apologize. I must have pulled the wrong number off the release then. Okay. Maybe on the expense side of things I know that you commented there was some true up on bonuses and whatnot.

Rick Wayne: Operator, we're now ready to answer any questions that the group may have.

Speaker #7: But could you give a little color on kind of expectations here in the coming quarters?

Operator: Thank you. We'll now begin the question and answer session. If you have a question, please press star 11 on your touchtone phone. If you wish to be removed from the queue, please press star 11. If you are using a speaker phone, you may need to pick up the headset first before pressing the numbers. Once again, if you have a question, please press star 11 on your touchtone phone. Please stand by while we compile the Q&A roster. Our first question comes from the line of Damon DelMonte of KBW. Your line is now open.

Speaker #5: Yeah. So, from a compensation standpoint, I'd say 12/31—the quarter ended 12/31—is a good run rate. And then add an additional roughly, like, $800,000 or so.

Speaker #5: For additional bonus expense for Q4. So somewhere in the realm of probably 13 and a half million from a comp standpoint for Q4. From a loan for other non-interest expense lines for next quarter I'd expect most of those to be pretty flat.

Damon DelMonte: Hey, good morning, everyone. Hope you're all doing well today. Thanks for taking my question.

Pat Dignan: Yeah.

Rick Wayne: Yeah.

Damon DelMonte: First question on the deposit growth this Q. You know, I think brokered and CDs were up over $700 million, which significantly improves the loan to deposit ratio. Just kind of curious on the thought behind that and the strategy of adding so much extra liquidity. Is that in anticipation of, you know, more purchase activity happening here in this coming Q? Or I guess just a little color on the thought behind that. Thanks.

Speaker #5: Maybe a little bit of incremental data processing fees, as we have been working on building out a more modern technology stack at the company since we hired our Chief Innovation Officer back in September of this past year.

Speaker #5: But shouldn't be any material pickup in expense there.

Speaker #7: Got it. Okay. Great. And then I guess lastly on the outlook for loans you guys seem pretty positive on the purchase side that you have a good look at things here in the next quarter.

Santino Delmolino: Yeah. Yeah. Damon, question for you on where you're seeing those numbers. Deposits are up, actually deposits might be down quarter-over-quarter if you're looking at the linked quarter.

Speaker #7: How about on the origination side? Still feel like trends from this quarter are doable going forward? Or was this just an acceptantly strong quarter?

David Minkoff: $168.

Rebecca Rand: $168.

Speaker #4: No. I think we're positioned pretty well in the market. There's a lot of the niche that we're in is obviously in the bridge loan and lender finance space.

Santino Delmolino: Yeah. Deposits are down $168 quarter over quarter. Relatively flat. What we did have from a deposit standpoint, you'll see, we had some brokered CDs mature in the month of March, that we ended up rolling into FHLB borrowings, given favorable rate. A bit of a rate disconnect between FHLB and the brokered market.

Speaker #4: And a lot of the larger non-banks that have lower costs of capital from warehouse lines, they don't really play in the middle market space—kind of under $50 million.

Speaker #4: So our competition in that space is mostly smaller funds with much higher cost of capital. So it's a pretty good niche for us. And I don't see this pipeline slowing down at all.

Damon DelMonte: Gotcha. Okay. I apologize. I must have pulled the wrong number off the release then. Okay. Maybe on the expense side of things, I know that you commented there was some true up on bonuses and whatnot, could you give a little color on kind of expectations here in the coming quarters?

Speaker #7: Got it. Okay. Great. That's all that I had for now. I'll step back. Thanks.

Speaker #5: Thank you, Damon.

Speaker #8: Thanks, Damon.

Speaker #6: Thank you. One moment for our next question. Our next question concerning the line of just and quality of proper sanity line is now open.

Santino Delmolino: Yeah. From a compensation standpoint, I'd say 31 December, the quarter ended 31 December's a good run rate, and then add an additional roughly like $800,000 or so for additional bonus expense for Q4. Somewhere in the realm of probably $13.5 million from a comp standpoint for Q4. From a loan for other non-interest expense lines for next quarter, I'd expect most of those to be pretty flat. Maybe a little bit of incremental data processing fees, as we have been working on building out a more modern technology stack at the company, since we hired our Chief Innovation Officer back in September of this past year. Shouldn't be any material pickup in expense there.

Speaker #9: Hey, good morning everyone.

Speaker #4: Hey, Justin.

Speaker #8: Just want to start out on the margin. Obviously a lot of accelerated accretion running through which I know is tough to predict. But was just wondering if you could help us out on how to think about just where the NIM could settle in that assuming flat rates and just how much of a tailwind you've got left on the funding side with just any broker that's left to mature.

Speaker #8: Over the next quarter.

Speaker #5: Yeah, sure. So looking at the income side of it, I mean, back out transactional income, I'd expect the income side to be pretty consistent.

Speaker #5: Quarter over quarter in a flat rate environment. On the funding side you might see in the investor deck I think our spot cost of funds was down probably like seven basis points compared to actual cost incurred during the quarter.

Damon DelMonte: Got it. Okay. Great. Then I guess lastly on the outlook for loans, you guys seem pretty positive on the purchase side that, you know, you have a good look at things here in the next Q. You know, how about on the origination side? Still feel like trends from this Q are doable going forward, or was this just a exceptionally strong Q?

Speaker #5: Yeah. Cost of funds spot cost was 3.55% at the end of the quarter versus 3.62% incurred over the course of the quarter. So we will have a little bit of pickup there.

Speaker #5: And in terms of remaining CDs to be rolled over I wouldn't expect a lot of savings on that front given kind of where the brokered market is right now.

Pat Dignan: I think, you know, I think we're positioned pretty well in the market. You know, there's a lot of, you know, the niche that we're in is obviously in the, in the bridge loan and lender finance space, and a lot of the larger non-banks that have lower costs of capital from warehouse lines, they don't really play in the middle market space, kind of under $50 million. Our competition in that space is mostly smaller funds with much higher cost of capital. It's a pretty good niche for us and I don't see this pipeline slowing down at all.

Speaker #5: Brokered are pretty expensive comparatively. So given kind of everything happening in the macro environment. We do have over the next three months 550 million maturing most of that coming towards the tail end of June.

Speaker #5: So, hopefully we see some price relief between now and then. And then, on the retail side, we've got $200 million maturing. Those should reprice down a little bit.

Damon DelMonte: Got it. Okay. Great. That's all that I have for now. I'll step back. Thanks.

Speaker #5: Comparatively. So maybe a few basis points of saving additional savings compared to the spot rate at the end of the month.

Pat Dignan: Thank you, Damon.

Rick Wayne: Thank you, Damon.

Santino Delmolino: Thanks, Damon.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Justin Crowley of Piper Sandler. Your line is now open.

Speaker #7: Okay. That's helpful. And then for what's in the purchase book do you have I'm not sure if you're able to share but the remaining average life left on that portfolio just as we try to get a sense of the cadence and just level of that accretion that hits NII?

Justin Crowley: Hey, good morning, everyone.

Santino Delmolino: Hey, Justin.

Justin Crowley: Just want to start out on the margin. Obviously, a lot of accelerated accretion running through, which I know is tough to predict. Was just wondering if you could help us out on how to think about, you know, just where the NIM could settle in at assuming flat rates, and just how much of a tailwind you've got left on the funding side with just any broker that's left to mature over the next quarter.

Speaker #8: Eight years.

Speaker #5: The way I'm missing.

Speaker #9: Yeah. Weighed average maturity on that around eight years. So there's a bit of runway left on that portfolio. One thing to note there is a lot of those loans it's kind of a mixed bag between loans that are fixed rate and have pretty high rate marks that'll be recognized over the duration of those eight years versus loans that are fixed to floating where they have a period of fixed interest.

Santino Delmolino: Yeah, sure. Looking at the income side of it, I mean, back out transactional income, I'd expect the income side of it to be pretty consistent quarter over quarter in a flat rate environment. On the funding side, you might see in the investor deck, I think our spot cost of funds was down probably like 7 basis points compared to actual costs incurred during the quarter. Yeah. Cost of funds, spot cost was 355 at end of the quarter versus 362 incurred over the course of the quarter. We will have a little bit of pickup there. In terms of remaining CDs to be rolled over, I wouldn't expect a lot of savings on that front given kind of where the brokered market is right now.

Speaker #9: And are going to reset—a lot of them reset—to five-year Treasury plus some sort of margin. So the rate marks on those get recognized a little bit faster.

Speaker #5: Was just a whim if it's eight years. If the whim is eight years the actual life will be shorter for sure.

Speaker #8: Yeah.

Speaker #5: Those have a higher CPR and they tend to pay off. Do we have in this slide deck a bridge Rebecca on the purchase loans?

Speaker #5: It shows the amount of.

Santino Delmolino: Brokers are pretty expensive comparatively. Given kind of everything happening in the macro environment, we do have over the next 3 months, $550 million maturing. Most of that coming towards the tail end of June. Hopefully we see some price relief between now and then. Then on the retail side, we've got $200 million maturing. Those should reprice down a little bit comparatively. Maybe a few basis points of saving, additional savings compared to the spot rate at end of the month.

Speaker #8: We have a bridge on slide 17. It's the whole national lending portfolio.

Speaker #5: If you want to look at that for a second it's not just purchase loans. We don't have that in this deck but it shows the it shows on this page 17 it shows the purchase runoff in this quarter the third fiscal quarter of 71 million dollars.

Speaker #5: Which I don't have the how much of that is prepaid but it's not insignificant. Which has the effect of generating transactional income into our yield and also has the effect obviously of reducing the purchase loan portfolio.

Justin Crowley: Okay, that's helpful. For what's in the, in the purchase book, do you have, I'm not sure if you're able to share, but, you know, the remaining average life left on that portfolio, just as, you know, so we try to get a sense of the cadence and just level of that accretion that hits NII.

Rebecca Rand: Years.

Speaker #7: Okay. Got it. And then just I guess just one last one on this topic and what goes into or what factors into margin. But how much of the do you have how much of the total loan book is floating rate?

Rick Wayne: Eight years.

Santino Delmolino: Eight years.

Santino Delmolino: Um-

Justin Crowley: Um-

Rick Wayne: The way I'm listening.

Rebecca Rand: Mm-hmm. Yeah.

Santino Delmolino: Yeah. Weighted average maturity on that, around 8 years. There's a bit of runway left on that portfolio. One thing to note there is a lot of those loans. It's kind of a mixed bag between loans that are fixed rate and have pretty high rate marks that'll be recognized over the duration of those 8 years, versus loans that are fixed to floating, where they have a period of fixed interest, and they're gonna reset to a lot of them reset to a 5-year treasury plus some sort of margin. The rate marks on those get recognized a little bit faster.

Speaker #7: I know most of the originated portfolio floats but what does that exposure look like if you factor it or factor in floors? That are in place in that book.

Speaker #8: Good question. I don't have that right at my fingertips.

Speaker #5: You have the number somewhere?

Speaker #8: So the national lending originated portfolio on slide 9 the current weighed average floor is 7.23% as of March 31st. And just for context that's roughly the rate that we originated our national lending originations this quarter.

Justin Crowley: Okay, gotcha.

Rick Wayne: Just the WAM, if the WAM is eight years, the actual life will be shorter for sure.

Speaker #8: 7.2%.

Rick Wayne: Just the WAM, if the WAM is eight years, the actual life will be shorter for sure.

Speaker #9: Yeah. I think a lot of I don't have exact numbers in front of me but I can speak kind of high level. A fair amount of the originated portfolio is hovering around the floors.

Santino Delmolino: Yeah.

Rick Wayne: You know, those have a higher CPR and, you know, they tend to pay off. Do we have in this slide deck a bridge, Rebecca, that's on the purchase loans that shows the amount of-

Speaker #9: So and a lot of that's based on either tied to either SOFR or Prime. So depending on what happens at the Fed if they do come in and cut rates you could see more of that portfolio sitting on the floor while Fed funds come pricing comes down.

Rebecca Rand: We have a bridge on slide 17, the whole national lending portfolio.

Rick Wayne: If you wanna look at that for a second. It's not just purchase loans. We don't have that in this deck, but it shows on this page 17, it shows the purchase runoff in this quarter, the Q3 of $71 million, which I don't have how much of that is prepaid, but it's not insignificant. Which has the effect of generating transactional income into our yield. Also has the effect, obviously, of reducing the purchase loan portfolio.

Speaker #7: Okay. Got it. And then just shifting a little bit just back to the purchase business more broadly. You've talked a lot about the pipeline activity being in part or in large part I guess M&A driven.

Speaker #7: And so, just curious if the slower start to the year here on transactions impacts the activity levels you think you could see, and if that's being made up for from other sources.

Speaker #7: Just given some of the commentary you made on the amount that you took a look at this quarter.

Speaker #5: Jim, could you just clarify that a little bit one more time? I want to make sure we're giving you a responsive answer to your question.

Speaker #7: Sure. Yeah. Just—yeah. Just as far as the pipeline, I think you've talked a lot in the past about how a lot of it's been M&A driven.

Speaker #7: And just year to date here with slower level of transaction announcements and deal activity with some of the uncertainty out there just wondering if you think that's going to be all impactful to the activity in the pipeline and just the opportunities that you're seeing and if you're seeing that made up for elsewhere just from other sources for these purchases.

Justin Crowley: Okay. Got it. Just, I guess just one last one on this topic and what goes into or what factors into margin. How much of the total loan book is floating rate? I know most of the originated portfolio floats, but what does that exposure look like if you factor in floors that are in place in that book?

Speaker #10: M&A is certainly a large part of it and we're seeing more and more of that. But it's certainly not the only I mean there's some significant activity we've seen over the last year and continue to see from large very large credit funds who are they're at the tail of a particular purchase from several years ago or and are looking to get out of that.

Santino Delmolino: Good question. I don't have that right at my fingertips.

Rick Wayne: Is that a public number somewhere?

Rebecca Rand: The national lending originated portfolio on Slide 9, the current weighted average floor is 7.23% as of 31 March. Just for context, that's roughly the rate that we originated our national lending originations this quarter, 7.2%.

Santino Delmolino: Yeah.

Justin Crowley: Okay.

Santino Delmolino: I think I don't have the exact numbers in front of me, but I can speak kind of high level. A fair amount of the originated portfolio is hovering around the floors. A lot of that's based on either tied to either SOFR or Prime. Depending on what happens with the Fed, if they do come in and cut rates, you could see more of that portfolio sitting on the floor while Fed funds pricing comes down.

Speaker #10: There's balance sheet management. There's other large banks that just do regular sales and they in good markets and bad they just have a routinely sell loans as a matter of course.

Speaker #10: But those are all sources that we've experienced for years. M&A is a little bit more a larger percentage of the pie now than it has been traditionally.

Speaker #10: And from everything we're seeing it will continue as such into the foreseeable future. Like we pointed out on the call this quarter although we only bought 25 million it was a very very busy quarter for our underwriters.

Justin Crowley: Okay. Got it. Just shifting a little bit just back to the purchase business more broadly. You know, you've talked a lot about the pipeline activity being, you know, in part or in large part, I guess, M&A driven. Just curious, you know, the slower start to the year here on transactions, you know, impacts, you know, the activity levels you think you could see, and if there's, you know, if that's being made up for from other sources, just given some of the commentary you made on, you know, the amount that you took a look at this quarter.

Speaker #10: We looked at a lot, and we were very competitive. It's just a lumpy business, as we've pointed out many times, and we were unlucky.

Speaker #5: Sometimes Justin also loans come back. You bid on a big pool seller has it and they decide they want to unload some of that and we see it again.

Rick Wayne: James, could you just clarify that a little bit one more time? We'll make sure we're giving you a responsive answer to your question.

Speaker #10: Right.

Speaker #5: But we'll see if that will happen. But that has happened in the past.

Justin Crowley: Sure. Yeah. Just as far as the pipeline, I think, you know, you've talked a lot in the past how a lot of it's been M&A driven and, you know, just year to date here with, you know, slower level of transaction announcements and deal activity with some of the uncertainty out there. Just wondering if you think that's gonna be all impactful, you know, to the activity in the pipeline and just the opportunities that you're seeing. If you're seeing that made up for, you know, elsewhere, just from other sources for these purchases.

Speaker #10: Did that answer your question?

Speaker #7: Okay. Yeah. No. It does. And I guess just the divergence between what you took a look at and what was actually purchased in the quarter.

Speaker #7: Is that a how would you frame that competition? Is it a function of some increased competition in this business or is it more just on pricing and not being able to get to the same place with the seller?

Speaker #7: How would you describe that dynamic?

Speaker #10: There's a lot of competition. I mean there's a large credit funds mostly large credit funds who are competing with on the larger transactions. And like the originated point I made that when you write a check over 100 million a lot of these big funds come out and they have insurance CMBS exits, insurance platforms they can place these loans.

Pat Dignan: There's M&A is certainly a large part of it, and, you know, we're seeing more and more of that. But it's certainly not the only. I mean, there's significant activity we've seen over the last year and continue to see from large, very large credit funds who are, you know, they're at the tail of a particular purchase from several years ago and are looking to get out of that. There's balance sheet management. There's other large banks that just do regular sales. In good markets and bad, they just, you know, have a routinely sell loans as a matter of course.

Speaker #10: They have a lot of things they can do with these loans. But having said that we've been successful bidding against these groups in the past and have won loans with them.

Speaker #10: And in this past quarter the ones that we did not win it was basis points. It was not a it's not like we were uncompetitive.

Speaker #10: It just we put our best foot forward and it wasn't quite enough. But from our perspective they were very strong bids and we're not going to as Rick pointed out we're not going to bid volumes just for volume's sake.

Pat Dignan: But those are all sources that have, that we've experienced for years. M&A is a little bit more a larger percentage of the pie now than it has been, you know, traditionally. From everything we're seeing, it will continue as such into the foreseeable future. Like we pointed out on the call, you know, this quarter, although we only bought $25 million, you know, it was a very, very busy quarter for our underwriters. We looked at a lot and we were very competitive. It's just a lumpy business, as we pointed out many times, and, you know, we were unlucky.

Speaker #10: We're going to put our best foot forward and I'm confident we're going to win. Win our share.

Speaker #7: Okay, great. And then just a final question from me. On the SBA business, you saw the pickup after the shutdown last quarter, but obviously it's still well off the levels seen last year.

Speaker #7: And you've talked before about some of the structural changes that have slowed activity and getting your arms around that. So just sort of curious how we should think about that business looking out here.

Rick Wayne: Sometimes, Justin, also loans come back. You know, you bid on a big pool, seller has it, and they decide they wanna unload some of that, you know, we see it again.

Speaker #7: I know you made the comment on monthly volume. But just a little more detail surrounding that business.

Speaker #10: Well when we started this business it was with a view towards a very tech forward largely not we're still looking at approving every loan but a lot of automation and process automation and so that we could do small balanced loans at volume.

Pat Dignan: Right.

Rick Wayne: We'll see if that will happen. That has happened in the past.

Pat Dignan: Did that answer your question?

Justin Crowley: Okay. Yeah. No, it does. I guess just, you know, the divergence between what you took a look at and, you know, what was actually purchased in the quarter, you know, how would you frame that competition? Is it a function of some increased competition, you know, in this business? Or is it more just, you know, on pricing and not being able to, you know, get to the same place with the seller? You know, how would you describe that dynamic?

Speaker #10: And every time there's a rule change, we have to kind of retool the process. And there have been a lot of rule changes over the last year.

Speaker #10: And they have made the ability to process these loans in volume a little more difficult. So the volumes we were doing a year ago 100 million a quarter I think with this the current product we're in I don't see us getting back to that point in the next any time soon.

Pat Dignan: There's a lot of competition. I mean, there's large credit funds, mostly large credit funds who we're competing with on the larger transactions. Like the originated point I made that, you know, when you write a check over $100 million, you know, a lot of these big funds come out, and they have, you know, insurance, CMBS securitizations, insurance platforms. They can place these loans. They have a lot of things they can do with these loans. Having said that, you know, we've been successful bidding against these groups in the past and have won loans, like, you know, with them. In this past quarter, you know, the ones that we did not win, it was basis points.

Speaker #10: But I do think that we could we should be able to get to a 20 million dollar a month loan volume assuming there's no more rule changes.

Speaker #10: I mean they changed the rule in March 1st that for these loans under 350 instead of relying on for the purposes of the guarantee from the credit piece of the guarantee we used to be able to rely on the credit score although we did a lot more work than that.

Speaker #10: But you could rely on that for the purposes of the guarantee. And that was changed to a debt service coverage analysis so as you can imagine that's a significantly different and more intense underwriting requirement that we have to stand up and we continue to stand up.

Pat Dignan: You know, it's not like we were uncompetitive. It just, you know, we put our best foot forward, and it wasn't quite enough. From our perspective, they were very strong bids, and we're not gonna, as Rick pointed out, we're not gonna bid volume just for volume's sake. We're gonna put our best foot forward, and I'm confident we're gonna win our share.

Speaker #10: And so, once that's completed, I think we'll get back to that level and should continue there. And again, I think we may be able to do more if we're able to participate in this new 90% guarantee program, which we're very interested in.

Justin Crowley: Okay, great. Just a final question from me. Just on the SBA business, you know, you saw the pickup after the shutdown last quarter. You know, obviously still well off of levels seen last year. You've talked before about, you know, some of the structural changes that have slowed activity and getting your arms around that. Just sort of curious how we should think about that business looking out here. I know you made the comment on, you know, monthly volume, just a little more detail surrounding that business.

Speaker #7: Okay, and then I guess just a quick follow-up, somewhat related. Just on the small balance insured product, do you have any updated thoughts there, just as you continue to generate some volume?

Speaker #7: How do you think about that eventually contributing to the gain on sale business and just what you think how that market demand the demand for that product could ultimately shake out?

Pat Dignan: Well, you know, when we started this business, it was with a view towards a very tech-forward, largely. We're still looking at approving every loan, but a lot of automation and process automation and so that we could do small balance loans at volume. Every time there's a rule change, you know, it, we have to kind of retool the process. There's been a lot of rule changes over the last year, and they have made the ability to process these loans in volume a little more difficult. The volumes we were doing a year ago of $100 million a quarter, I think with this, the current product we're in, I don't see us getting back to that point anytime soon.

Speaker #5: Well with there is a lot of demand for the loan product and as Pat mentioned we want to see that we can sell it.

Speaker #5: It's not our intention to load up our balance sheet with this product. Even though it's pretty good product it's going to have a it has a essentially 14 or 15 percent of credit protection on it between the deductible and the insurance.

Speaker #5: It's a wonderful product for somebody to buy and in pieces we are also talking to a couple larger funds about doing a transaction for everything on the balance sheet.

Pat Dignan: I do think that we should be able to get to a $20 million a month loan volume, assuming there's no more rule changes. I mean, they changed the rule in 1 March that for these loans under 350, instead of relying on for the purposes of the guarantee, from the credit piece of the guarantee, we used to be able to rely on the credit score, although we did a lot more work than that. You could rely on that for the purposes of the guarantee, and that was changed to a debt service coverage analysis. As you can imagine, that's a significantly different and more intense underwriting requirement that we had to stand up and we continue to stand up.

Speaker #5: But until we can move it I wouldn't expect to have any material growth on that on our balance sheet.

Speaker #7: Okay. Great. I will leave it there. Thank you so much for taking the time. Appreciate it.

Speaker #10: Thanks.

Speaker #5: Thank you Justin.

Speaker #7: Thank you. One moment for our next question. And our next question comes on the line of David Minkoff. Your line is now open.

Speaker #11: Good morning Rick. Pat and Santino. Congratulations on a wonderful quarter. I've been a shareholder for going back more than 10 years. The CFO at the time was Claire Bean.

Speaker #11: So, how many years ago was that?

Pat Dignan: Once that's completed, I think we'll get back to that level and should continue to. Again, I think we may be able to do more if we're able to participate in this new 9%, I mean, 90% guarantee program. It's very interesting.

Speaker #5: Oh yeah.

Speaker #11: So and I've listened to every conference call each quarter. I haven't missed one. So if you just took a 10 years I've listened to 40 conference calls.

Speaker #11: It's more than that. And we've kind of become accustomed to hearing good news because that's what you guys do—it's in your DNA. But this one kind of took the cake.

Justin Crowley: Okay. I guess just like a quick follow-up, somewhat related. Just, you know, on the small balance insured product, you know, do you have any updated thoughts there just as you continue to generate some volume? You know, how you think about that eventually contributing to the gain on sale business? Just what you think, how that, you know, market demand, the demand for that product could ultimately shake out?

Speaker #11: I mean some of the metrics I don't want to repeat them all. You gave them. ROI up 26%. Tangible book value up 15%. I mean if you're watching Wall Street you can appreciate how good these numbers are.

Speaker #11: But I remember two years ago in '24 I kind of commented you had another excellent they're all good quarters but excellent quarter and I commented at that time I think the stock was 72 at the time and I commented how well you had done.

Rick Wayne: Well, there is a lot of demand for the loan product. As Pat mentioned, we wanna see that we can sell it. It's not our intention to load up our balance sheet with this, with this product, even though it's pretty good product. It, you know, it has essentially 14% or 15% of credit protection on it between the deductible and the insurance. It's a wonderful product for somebody to buy in pieces. We are also talking to a couple larger funds about doing a transaction for everything on the balance sheet. You know, until we can move it, I wouldn't expect to have any material growth on that on our balance sheet.

Speaker #11: And I asked Rick I said, "Rick, well what are you going to do for an encore?" But I said that with tongue in cheek.

Speaker #11: "Rick, I guess you took it seriously. Thanks for showing me thanks for showing me what you're going to do for an encore." So rather than ask the question I would just say finally with these results I would say there should be a national holiday named after Northeast Bank.

Speaker #11: I don't think we have a holiday named after a bank yet do we? I mean the National Bank Northeast Bank Day that sounds it has a good ring to it I think don't you?

Speaker #5: Oh it's the best idea. We've heard recently. I like that.

Justin Crowley: Okay, great. I will leave it there. Thank you so much for taking the time. Appreciate it.

Speaker #11: Right. I envision schools will be closed. No postal delivery. No mail service. And maybe April 28th would be or the last Tuesday in April should be the day for this.

Rick Wayne: Thank you, Justin Crowley.

Operator: Thank you. One moment for our next question. Our next question comes on the line of David Minkoff. Your line is now open.

Speaker #11: I'll recommend this to Congress. Anyway, congratulations on a great quarter—this was really stupendous.

David Minkoff: Good morning, Rick, Pat, and Santino. Congratulations on a.

Speaker #5: Thank you David. We appreciate you. Of course we've talked many times over the last 10 years and you were there almost at the beginning and you've offered us good suggestions over time and you're a big supporter.

Rick Wayne: Morning.

Rebecca Rand: Good morning.

Santino Delmolino: Good morning.

David Minkoff: wonderful quarter. You know, I've been a shareholder for going back more than 10 years. The CFO at the time was Claire Bean. How many years ago back is that?

Rick Wayne: Oh, yeah.

Speaker #5: And we're thrilled that we can deliver results that you like we like and other shareholders like. So thank you for your support and your kind words.

David Minkoff: I've listened to every conference call each quarter. I haven't missed one. If you just took it 10 years, I've listened to 40 conference calls. It's more than that. Kind of become accustomed to hearing good news because that's what you guys do. It's in your DNA. This one, this one kind of took the cake. I mean, you know, some of the metrics, I don't wanna repeat them all. You gave them. ROE up 26%, tangible book value up 15%. I mean, you know, if you're watching Wall Street, you can appreciate how good these numbers are.

Speaker #11: Thank you. Keep up the good work. Take care.

Speaker #7: Thank you. We have no further questions at this time. Now I'll turn the call over to Rick Wayne for closing remarks.

Speaker #5: Thank you for that. Thank you all of you that have listened and those that have questions as well. David thank you for the suggestion about the national holiday.

David Minkoff: I remember 2 years ago in 2024, I kind of commented we had another excellent quarter. They're all good quarters, but excellent quarter, and I commented at that time, I think the stock was $72 at the time, and I commented how well you know, you had done. I asked Rick, I said, Rick, well, what are you gonna do for an encore? I said that with tongue in cheek. Rick, I guess you took it seriously. Thanks for showing me, thanks for showing me what you're gonna do for an encore. Rather than ask a question, I would just say finally, you know, with these results, I would say there should be a national holiday named after Northeast Bank. I don't think we have a holiday named after a bank yet, do we?

Speaker #5: I don't think we're quite ready for that yet though. And look forward to talking to you in July. After our fiscal year ends. And with that I wish you all well.

Speaker #5: Thank you.

David Minkoff: I mean, National Bank, Northeast Bank Day, that sounds, has a good ring to it, I think, don't you?

Rick Wayne: Oh, it's the best idea we've heard recently. I like that.

David Minkoff: Right. I vision schools will be closed, you know, no postal delivery, no mail service, you know. Maybe April 28th would be, or the last Tuesday in April should be the day for this. I'll recommend this to Congress. Anyway, congratulations on a great quarter. This was really stupendous.

Rick Wayne: Thank you, David.

Rebecca Rand: Thank you.

Rick Wayne: We appreciate you. Of course, we've talked many times over the last 10 years, and you were there almost at the beginning, and you've offered us good suggestions over time, and you're a big supporter. We're thrilled that we can deliver results that you like, we like, and other shareholders like. Thank you for your support and your kind words.

David Minkoff: Thank you. Keep up the good work. Take care.

Operator: Thank you. We have no further questions at this time. I will now turn the call over to Rick Wayne for closing remarks.

Rick Wayne: Thank you for that. Thank you all of you that have listened and those that have asked questions as well. David, thank you for the suggestion about the national holiday. I don't think we're quite ready for that yet, though. Look forward to talking to you in July after our fiscal year end. With that, I wish you all well. Thank you.

Operator: Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.

Q3 2026 Northeast Bank Earnings Call

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