NORTHEAST BANK (NASDAQ:NBN) reported its fiscal second-quarter 2026 results, delivering a mixed financial performance that has led to a negative initial market reaction. The Maine-based bank's earnings fell short of analyst expectations on key profitability and revenue metrics, overshadowing year-over-year growth for the first half of its fiscal year.
Quarterly Earnings Versus Estimates
The core figures from the quarter ended December 31, 2025, reveal a notable miss against Wall Street forecasts. The market's primary focus on earnings per share (EPS) and revenue was met with disappointment.
- Earnings Per Share (EPS): The bank reported diluted EPS of $2.47. This fell short of the analyst consensus estimate of $2.91.
- Revenue: Reported revenue for the quarter was $51.77 million. This also missed the market's expectation, which was set at approximately $55.37 million.
The dual miss on both the top and bottom lines provides a clear catalyst for the stock's movement following the announcement. It indicates pressure on both profitability and the core income-generating activities of the bank during the quarter.
Market Reaction and Recent Performance
The immediate market response to the earnings release was negative. In after-hours trading following the announcement, NBN stock declined by approximately 2.8%. This post-earnings drop contrasts with the stock's performance in the lead-up to the report, where it had seen modest gains over the past month. The reaction suggests investors were anticipating results in line with or above estimates and have adjusted their valuations based on the reported shortcomings.
Summary of Quarterly Results
According to the press release, net income for Q2 2026 was $20.7 million, a decrease from the $22.4 million reported in the same quarter the prior year. However, a broader view shows some strength in the bank's year-to-date performance. For the six months ended December 31, 2025, net income was $43.3 million ($5.14 per diluted share), which represents an increase from the $39.5 million ($4.85 per diluted share) earned in the first half of the previous fiscal year. The bank also declared a quarterly cash dividend of $0.01 per share, payable on February 25, 2026.
Looking Ahead: Analyst Expectations
With the Q2 results now in the past, investor attention will shift to the bank's future performance. Current analyst estimates provide a benchmark for the coming quarters.
- For Q3 2026: Analysts are forecasting revenue of approximately $58.42 million, with an earnings per share estimate of $3.08.
- For Full-Year 2026: The full-year sales estimate stands at around $227.74 million, with a corresponding revenue estimate of $10.86 per share.
The press release did not provide specific forward-looking guidance or an outlook from management, so these analyst estimates will serve as the key reference points against which future performance will be measured. The bank's ability to rebound from its Q2 misses will be closely watched in the next earnings cycle.
For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the data here: NBN Earnings & Estimates.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
