Northeast Bank (NBN)

What Moves the Stock

1. 01Net interest margin expansion or compression driven by Federal Reserve policy and deposit pricing competition
2. 02National Lending Division loan origination volumes and portfolio growth rates
3. 03Credit quality metrics including non-performing loan ratios and provision expense in specialty lending segments
4. 04Deposit growth and cost of funds trends in the Maine retail banking franchise
5. 05Tangible book value per share growth and return on tangible common equity
6. 06Net interest income from commercial and specialty lending portfolio (estimated 75-80% of revenue)
7. 07Fee income from loan origination, servicing, and deposit services (estimated 15-20%)
8. 08Investment securities portfolio income (estimated 5-10%)

NBN Chart

My Notes

• value - The 1.8x price-to-book ratio and 17.3% ROE suggest value orientation.
• Highly sensitive to interest rate environment.
• Watch on earnings: Federal Funds Rate and forward guidance from Federal Reserve meetings, 10-year Treasury yield and yield curve slope (10Y-2Y spread) indicating rate environment expectations, High yield credit spreads as proxy for small business credit conditions.