NasdaqGM:NBN

Stock Analysis Report

Executive Summary

Northeast Bank provides personal and business banking services in Maine, the United States.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Northeast Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NBN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

NBN

-1.2%

US Banks

-1.1%

US Market


1 Year Return

2.8%

NBN

10.3%

US Banks

17.9%

US Market

Return vs Industry: NBN underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: NBN underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

NBNIndustryMarket
7 Day1.1%-1.2%-1.1%
30 Day-0.7%-0.3%1.4%
90 Day-5.7%-0.9%6.9%
1 Year3.0%2.8%13.5%10.3%20.3%17.9%
3 Year53.7%52.8%24.0%15.1%47.8%38.3%
5 Year119.7%116.8%73.8%54.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is Northeast Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Northeast Bank undervalued compared to its fair value and its price relative to the market?

30.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NBN ($20.4) is trading below our estimate of fair value ($29.32)

Significantly Below Fair Value: NBN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NBN is poor value based on its PE Ratio (13.3x) compared to the Banks industry average (12.6x).

PE vs Market: NBN is good value based on its PE Ratio (13.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NBN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NBN is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Northeast Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Northeast Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Northeast Bank performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NBN has a large one-off loss of $8.7M impacting its December 31 2019 financial results.

Growing Profit Margin: NBN's current net profit margins (20.3%) are lower than last year (28.4%).


Past Earnings Growth Analysis

Earnings Trend: NBN's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: NBN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NBN had negative earnings growth (-22.7%) over the past year, making it difficult to compare to the Banks industry average (12.2%).


Return on Equity

High ROE: NBN's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Northeast Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NBN has a low level of unsold assets or inventory.

Debt Coverage by Assets: NBN's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: NBN's level of assets compared to its equity is low.

Allowance for Bad Loans: NBN has a low allowance for bad loans.

Low Risk Liabilities: NBN's liabilities are made up of primarily low risk sources of funding.

Loan Level: NBN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NBN's loans are broadly funded by customer deposits.

Level of Bad Loans: NBN has an appropriate level of bad loans (1.88%)


Next Steps

Dividend

What is Northeast Bank's current dividend yield, its reliability and sustainability?

0.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NBN's dividend (0.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NBN's dividend (0.2%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: NBN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: NBN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NBN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NBN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Rick Wayne (67yo)

9.2yrs

Tenure

US$1,809,720

Compensation

Mr. Richard N.Wayne, also known as Rick, has been the Chief Executive Officer and President of Northeast BanCorp since December 29, 2010. Mr. Wayne serves as the Chief Executive Officer and President at No ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD1.81M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Wayne
President9.2yrsUS$1.81m4.98% $9.2m
Julie Jenkins
Senior VP & Director of Operations7.7yrsUS$518.84k0.24% $438.7k
Patrick Dignan
Executive Vice President4yrsUS$1.27m1.14% $2.1m
Jean-Pierre Lapointe
CFO & Treasurer2.3yrsUS$374.75k0.081% $149.9k
Heidi Jacques
Senior VP & Director of Human Resources0yrsno datano data
Brian Fenwick
MD & Director of Loan Underwriting0yrsno datano data
Theresa Morrison
Senior VP & Director of Real Estate Valuation0yrsno datano data
Brian Pinheiro
Chief Risk Officer0yrsUS$346.31k0.18% $325.4k
Christopher Hickey
MD & Director of Asset Management0yrsno datano data
Lindsay Wiedemann
SVP & Corporate Controller0yrsno data0.011% $20.4k

5.8yrs

Average Tenure

56yo

Average Age

Experienced Management: NBN's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Wayne
President9.2yrsUS$1.81m4.98% $9.2m
David Tanner
Independent Director9.2yrsUS$50.00k0.11% $204.0k
Robert Glauber
Chairman of the Board9.2yrsUS$75.00k0.66% $1.2m
Matthew Botein
Independent Director9.2yrsUS$55.00k0.69% $1.3m
John Orestis
Independent Director12.3yrsUS$60.00k0.66% $1.2m
Judith Wallingford
Independent Director26.1yrsUS$60.00k0.28% $510.0k
Cheryl Dorsey
Independent Director9.2yrsUS$50.00kno data

9.2yrs

Average Tenure

63yo

Average Age

Experienced Board: NBN's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NBN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Northeast Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northeast Bank
  • Ticker: NBN
  • Exchange: NasdaqGM
  • Founded: 1872
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$184.661m
  • Shares outstanding: 9.05m
  • Website: https://www.northeastbank.com

Number of Employees


Location

  • Northeast Bank
  • 500 Canal Street
  • Lewiston
  • Maine
  • 4240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NBNNasdaqGM (Nasdaq Global Market)YesNew Common StockUSUSDAug 1987

Biography

Northeast Bank provides personal and business banking services in Maine, the United States. The company’s deposit products include demand deposit, NOW, money market, savings, and certificate of deposit accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising automobile, boat, and recreational vehicle loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit card, ATM, electronic transfer, and check services. It operates a network of 10 branches. Northeast Bank was founded in 1872 and is headquartered in Lewiston, Maine. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 03:02
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.