Lumida
/NBN
⌘K
Northeast Bank

Northeast Bank

NBN
$132.64USD↑+1.08%+1.42 today

MARKET CAP

1.1B

P/E (TTM)

10.3x

FWD P/E

8.4x

DAY RANGE

$132 – $135

52W RANGE

$81
$142

AI Summary

Stalk
Buy NowMedium

The mid-August Bullish Pivot Point indicates that downside control has failed and price is beginning structural repair. After flattening around the 9EMA, 20EMA, and 50SMA, price closed above all three, confirming reclaim and acceptance. With the 200DMA rising and the asset trading near the upper third of its range, the long-term trend remains bullish. Mean reversion eligibility provides medium-term permission for long-side entries, and current short-term conditions favor execution now. We will buy on a pullback into the short-term EMA zone with renewed acceptance above the 50SMA.

  • ↑Q3 2026 record loan originations of $254M underscores strong growth
  • ↑FY26 net income $107.5M (up 29% YoY); Q4 EPS $4.05
  • ↓Regulatory tightening could slash SBA originations by 50%
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Northeast Bank (NASDAQ: NBN) is a regional financial institution that specializes in commercial lending and small business administration (SBA) finance. The bank has transitioned from a traditional community banking model to a more diversified approach, focusing on key lending areas such as purchased commercial real estate loans and small business lending. This strategic shift has enabled the bank to capture emerging market opportunities, particularly as demand for lending products continues to grow in the current financial landscape.

Bull says

  • ↑Q3 2026 record loan originations of $254M underscores strong growth
  • ↑FY26 net income $107.5M (up 29% YoY); Q4 EPS $4.05
  • ↑Maintained 5.15% NIM via effective asset pricing
  • ↑Selective bidding strategy preserves high asset quality
  • ↑Projected $20M/month SBA loans upon government reopening
  • ↑High earnings yield and positive leverage signal healthy valuation

Bear says

  • ↓Regulatory tightening could slash SBA originations by 50%
  • ↓Intense competition from large banks and credit funds compresses margins
  • ↓Non-interest expenses rose to $23.6M, weighing on income
  • ↓Allowance for credit losses jumped to $60.3M, flagging quality risks
  • ↓Negative dividend yield and poor revisions signal earnings headwinds
  • ↓High short interest reflects market skepticism on performance

Investment themes with NBN

Regional Banks↓ -1.16%

FLG · TCBI · ZION

Earnings Call · Q4 2025 · Mgmt. Guidance

Updated 08-15-2026neutral

Transcript signals

Bull points

  • we see a lot of action now, which is a good sign because a lot of times the summer is a little slower. We also see more competition now on some of the larger transactions that are out there from some of the bigger banks that are buying.
  • The loan portfolio grew by 36% overall, with purchase loan growth at 40%, originated growth at 27%, and SBA growth at over 200%.
  • There's a lot of purchase loan opportunities currently in the market, and we expect a lot more to come this year.

Bear points

  • the SBA decreased the cap from $500,000 to $350,000, so that excludes a lot of borrowers right there. They also increased the minimum credit scores for borrowers, which excludes a lot of other borrowers. And there's been some deterioration of credit generally in certain sectors due to the tariffs and other economic factors.
  • On last quarter's call, we discussed that the SBA had tightened their eligibility requirements effective June 1st, so the impact from those changes on volume this quarter is somewhat muted.
  • Recall that we anticipate a temporary dip in SBA lending volume over the next quarter or two due to a smaller strike zone at the top of the funnel and more required documentation and longer processing times for new loans. Volume could dip as much as 50% this quarter.
Read full transcript analysis ›