Northeast Bank (NBN) just posted its Q2 2026 numbers, with total revenue of US$50.9 million and basic EPS of US$2.49, alongside trailing twelve month revenue of US$213.1 million and EPS of US$10.56, after a year in which earnings grew 47.7%. Over the past year, total revenue has moved from US$157.7 million to US$213.1 million and EPS from US$7.84 to US$10.56, while net profit margin over the same period was 41.4% against 38.2% a year earlier. This sets up this quarter as a test of how durable that profitability profile looks. With the current share price at US$110.04, the key question for investors is how these steady revenue gains and firm margins shape the risk reward tradeoff from here.

See our full analysis for Northeast Bank.

With the headline numbers on the table, the next step is to see how this mix of revenue growth, EPS strength, and margins compares with the narratives investors and analysts have been using to frame Northeast Bank’s story over the last year.

41.4% net margin backs recent growth

• Over the last 12 months, Northeast Bank earned US$87.2 million on US$213.1 million of revenue, which works out to a 41.4% net profit margin compared with 38.2% a year earlier.
• Bulls point to this higher 41.4% margin and 47.7% earnings growth as evidence of a strong franchise, and the data does give them support, although it also shows some moderation quarter to quarter:
  • Net income for Q2 2026 was US$20.7 million on US$50.9 million of revenue, after US$22.5 million on US$53.3 million of revenue in Q1 2026. This indicates that the trailing strength is coming from the full year, not just this quarter.
  • Basic EPS over the last four quarters reached US$10.56, with individual quarters between roughly US$2.17 and US$3.06. This aligns with the bullish view of solid profitability but also highlights that earnings move around from quarter to quarter.

Loan book steady, credit quality contained

• Total loans in the dataset sit around US$3.9b in recent quarters, while non performing loans ranged from US$30.1 million to US$37.2 million over the last six reported quarters, landing at US$33.8 million in Q1 2026.
• Bullish investors often argue that a regional bank story depends on keeping credit issues manageable, and the figures here give a mixed but grounded picture rather than a one way win:
  • Non performing loans moved within a relatively tight band around the mid US$30 million mark, so the bullish claim of a stable book is consistent with the numbers provided, even though the data does not show a clear improving or worsening trend.
  • With loans close to US$3.9b against non performing balances in the low tens of millions, the ratio implied by these figures supports the view that credit quality is an important part of the bullish case, while still leaving room for bears to focus on how sensitive that could be to future conditions.

Have strong loan and credit numbers like these really settled the debate on Northeast Bank’s long term earnings power yet, or is the story just getting started? 📊 Read the full Northeast Bank Consensus Narrative.

Valuation gap vs DCF fair value

• On the valuation side, the bank trades on a trailing P/E of 11x and the dataset cites a DCF fair value of US$234.12 per share compared with a current share price of US$110.04.
• Supporters of the bullish view argue that this apparent discount is tied directly to recent earnings strength, and the reported metrics give them specific talking points as well as a few questions:
  • The trailing 12 month EPS of US$10.56 makes that 11x P/E mechanically, which is lower than the 13.1x peer average and 11.8x US banks industry figure in the dataset, so bulls see room for the multiple to close part of that gap.
  • At the same time, the same dataset flags forecast earnings growth of about 7.7% per year, below the 16.1% broader US market figure. Bears can use this to argue that a lower P/E and a gap to DCF fair value do not automatically translate into future share price moves.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Northeast Bank's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Northeast Bank’s earnings and margins look solid, but its 7.7% forecast earnings growth figure against a 16.1% broader US market estimate may leave growth focused investors wanting more.

If you want companies aiming for stronger forward momentum, check out CTA_SCREENER_LARGE_CAP_HIGH_GROWTH_POTENTIAL to focus on established names with higher expected earnings growth over the coming years.

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.