Northeast Bank (NBN) Margin Beat Reinforces Bullish Narrative with 41.4% Profit and 47.7% EPS Growth

Northeast Bank (NBN) turned in strong numbers this period, posting net profit margins of 41.4%, which is well above last year's 38.2%. EPS jumped 47.7% over the last twelve months, easily beating the bank’s five-year average annual growth rate of 10%. With earnings projected to climb 9.61% per year and revenue growth expected to keep pace with the broader US market at 10.3% annually, investors see a solid fundamental story. Shares also trade well below estimated fair value and at a notable discount to both the US Banks industry and peer group on a P/E basis. This positions Northeast Bank as an interesting value play as optimism tilts higher in the absence of flagged risks.

See our full analysis for Northeast Bank.

The numbers are in, but now the conversation turns to how these results compare with the broader market narratives. Let’s see where expectations are being exceeded and which talking points could get revisited.

See what the community is saying about Northeast Bank

Margins Stay Above Sector Norms

• Net profit margin hit 41.4%, higher than last year’s 38.2% and above sector averages, anchored by a disciplined approach to purchasing discounted loans and holding onto strong net interest margins.
• According to the analysts' consensus view, Northeast Bank’s focus on digital transformation and tailored banking services is expected to leverage efficiency gains and support future net margin expansion.
  • Analysts project profit margins to increase from 40.9% today to 41.1% in three years, reinforcing the narrative that operational shifts have long-term profitability potential.
  • Planned tech investments and service innovation are seen as helping to keep margins resilient even as competition and costs rise.
• Consensus sees these margin trends as setting Northeast Bank apart from peers, with margin improvement aligned to core business strategy. 📊 Read the full Northeast Bank Consensus Narrative.

Growth Trajectory Extends to 2028

• Forecasts set annual revenue gains at 12.9% and see earnings rising from $83.4 million to $120.8 million by 2028, underscoring a clear multi-year runway for topline and bottom-line expansion.
• Analysts' consensus view highlights that expected growth relies on success in expanding loan portfolios, disciplined loan acquisition, and strategic moves in SBA and lender finance, yet warns that rising costs or tighter lending standards could weigh down projections.
  • Rising peer competition and regulatory changes, especially in SBA rules, pose meaningful hurdles that could interrupt this trajectory.
  • Sustained above-sector net interest margins are expected to be a key buffer against these pressures if management maintains its conservative playbook.

Valuation Signals Potential Upside

• At a P/E ratio of 8.3x, shares trade at a sharp discount to both US Banks (11x) and peer group (12.4x) averages, while the current share price of $86.05 is significantly below the DCF fair value of $257.90.
• Analysts' consensus view points out that the close match between the current share price and the analyst price target ($108.00) suggests shares are fairly valued in the market’s eyes, but the much higher DCF fair value offers an alternate lens for potential upside.
  • Discounted valuation, combined with healthy growth forecasts, strengthens the case for value-focused investors scanning the sector.
  • Still, the consensus is that today’s price captures most of the expected growth, so any upside may hinge on the bank continuing to beat or raise estimates in future periods.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Northeast Bank on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Northeast Bank.

See What Else Is Out There

Despite above-sector profit margins and solid value metrics, Northeast Bank’s forward growth could face challenges due to rising expenses, regulatory shifts, and fierce industry competition.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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