Northeast Bancorp (“Northeast” or the “Company”) (NASDAQ:NBN), a
Maine-based full-service financial services company and parent of
Northeast Bank (the “Bank”), today reported net income of $3.3
million, or $0.36 per diluted common share, for the quarter ended
December 31, 2017, compared to net income of $3.1 million, or $0.35
per diluted common share, for the quarter ended December 31, 2016.
Net income for the six months ended December 31, 2017 was $7.9
million, or $0.86 per diluted common share, compared to $4.9
million, or $0.54 per diluted common share, for the six months
ended December 31, 2016.
On January 26, 2018, the Board of Directors declared a cash
dividend of $0.01 per share, payable on February 27, 2018 to
shareholders of record as of February 13, 2018.
“I am pleased to report another strong quarter,” said Richard
Wayne, President and Chief Executive Officer. “Our Loan Acquisition
and Servicing Group produced $79.1 million of loans, including
originations of $44.3 million and purchases with a recorded
investment of $34.8 million, for net growth in the LASG portfolio
of $20.3 million, or 3.6%, over the linked quarter. With
transactional income of $1.9 million, we achieved a total return on
our purchased loan portfolio of 11.0% and a net interest margin of
4.9% for the quarter.”
As of December 31, 2017, total assets were $1.0 billion, a
decrease of $42.4 million, or 3.9%, from total assets of $1.1
billion as of June 30, 2017. The principal components of the change
in the balance sheet follow:
1. The following table highlights the changes in the loan
portfolio for the three and six months ended December 31, 2017:
|
|
Loan Portfolio Changes |
|
Three Months Ended December 31, 2017 |
|
December 31, 2017 Balance |
|
September 30, 2017 Balance |
|
Change ($) |
|
Change (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
LASG Purchased |
$ |
244,177 |
|
|
$ |
230,014 |
|
|
$ |
|
14,163 |
|
|
|
6.16 |
% |
LASG Originated |
|
346,874 |
|
|
|
340,756 |
|
|
|
|
6,118 |
|
|
|
1.80 |
% |
SBA |
|
49,109 |
|
|
|
47,870 |
|
|
|
|
1,239 |
|
|
|
2.59 |
% |
Community Banking |
|
134,030 |
|
|
|
140,944 |
|
|
|
|
(6,914 |
) |
|
|
-4.91 |
% |
Total |
$ |
774,190 |
|
|
$ |
759,584 |
|
|
$ |
|
14,606 |
|
|
|
1.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31, 2017 |
|
December 31, 2017 Balance |
|
June 30, 2017 Balance |
|
Change ($) |
|
Change (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
LASG Purchased |
$ |
244,177 |
|
|
$ |
246,388 |
|
|
$ |
(2,211 |
) |
|
|
-0.90 |
% |
LASG Originated |
|
346,874 |
|
|
|
330,515 |
|
|
|
16,359 |
|
|
|
4.95 |
% |
SBA |
|
49,109 |
|
|
|
52,965 |
|
|
|
(3,856 |
) |
|
|
-7.28 |
% |
Community Banking |
|
134,030 |
|
|
|
149,327 |
|
|
|
(15,297 |
) |
|
|
-10.24 |
% |
Total |
$ |
774,190 |
|
|
$ |
779,195 |
|
|
$ |
(5,005 |
) |
|
|
-0.64 |
% |
|
Loans generated by the Bank's Loan Acquisition and Servicing
Group ("LASG") for the quarter ended December 31, 2017 totaled
$79.1 million, which consisted of $34.8 million of purchased loans,
at an average price of 91.1% of unpaid principal balance, and $44.3
million of originated loans. The Bank's Small Business
Administration and United States Department of Agriculture ("SBA")
Division closed and funded $4.5 million of new loans during the
quarter ended December 31, 2017. In addition, the Company sold $3.4
million of the guaranteed portion of SBA loans in the secondary
market, of which $1.6 million were originated in the current
quarter and $1.8 million were originated in prior quarters.
Residential loan production sold in the secondary market totaled
$17.6 million for the quarter.
As previously discussed in the Company’s SEC filings, the
Company made certain commitments to the Board of Governors of the
Federal Reserve System in connection with the merger of FHB
Formation LLC with and into the Company in December 2010. The
Company’s loan purchase and commercial real estate loan
availability under these conditions follow:
|
Basis for
Regulatory Condition |
|
Condition |
|
Availability at December 31, 2017 |
|
|
|
|
(Dollars in millions) |
Total Loans |
|
Purchased loans may not
exceed 40% of total loans |
|
$ |
113.4 |
Regulatory Capital |
|
Non-owner occupied
commercial real estate loans may not exceed 300% of total
capital |
|
$ |
177.4 |
|
|
|
|
|
|
An overview of the Bank’s LASG portfolio
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LASG Portfolio |
|
Three Months Ended December 31, |
|
2017 |
|
|
2016 |
|
Purchased |
|
Originated |
|
Secured Loans toBroker-Dealers |
|
Total LASG |
|
|
Purchased |
|
Originated |
|
Secured Loans to Broker-Dealers |
|
Total LASG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Loans purchased or
originated during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
principal balance |
$ |
38,205 |
|
|
$ |
44,285 |
|
|
$ |
- |
|
|
$ |
82,490 |
|
|
|
$ |
51,112 |
|
|
$ |
45,647 |
|
|
$ |
- |
|
|
$ |
96,759 |
|
Net
investment basis |
|
34,802 |
|
|
|
44,285 |
|
|
|
- |
|
|
|
79,087 |
|
|
|
|
46,033 |
|
|
|
45,647 |
|
|
|
- |
|
|
|
91,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield |
|
11.00 |
% |
|
|
6.49 |
% |
|
|
0.00 |
% |
|
|
8.31 |
% |
|
|
|
13.01 |
% |
|
|
5.89 |
% |
|
|
0.99 |
% |
|
|
8.76 |
% |
Total
Return (2) |
|
11.00 |
% |
|
|
6.49 |
% |
|
|
0.00 |
% |
|
|
8.31 |
% |
|
|
|
13.01 |
% |
|
|
5.89 |
% |
|
|
0.99 |
% |
|
|
8.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31, |
|
2017 |
|
|
2016 |
|
Purchased |
|
Originated |
|
Secured Loans toBroker-Dealers |
|
Total LASG |
|
|
Purchased (1) |
|
Originated |
|
Secured Loans to Broker-Dealers |
|
Total LASG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Loans purchased or
originated during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
principal balance |
$ |
42,523 |
|
|
$ |
85,064 |
|
|
$ |
- |
|
|
$ |
127,587 |
|
|
|
$ |
67,903 |
|
|
$ |
88,025 |
|
|
$ |
- |
|
|
$ |
155,928 |
|
Net
investment basis |
|
38,453 |
|
|
|
85,064 |
|
|
|
- |
|
|
|
123,517 |
|
|
|
|
59,886 |
|
|
|
88,025 |
|
|
|
- |
|
|
|
147,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield |
|
11.65 |
% |
|
|
6.42 |
% |
|
|
0.00 |
% |
|
|
8.58 |
% |
|
|
|
11.71 |
% |
|
|
5.88 |
% |
|
|
0.74 |
% |
|
|
8.19 |
% |
Total
Return (2) |
|
11.65 |
% |
|
|
6.42 |
% |
|
|
0.00 |
% |
|
|
8.58 |
% |
|
|
|
11.73 |
% |
|
|
5.88 |
% |
|
|
0.74 |
% |
|
|
8.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans as of
period end: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
principal balance |
$ |
276,440 |
|
|
$ |
346,874 |
|
|
$ |
- |
|
|
$ |
623,314 |
|
|
|
$ |
288,455 |
|
|
$ |
231,278 |
|
|
$ |
48,000 |
|
|
$ |
567,733 |
|
Net
investment basis |
|
244,177 |
|
|
|
346,874 |
|
|
|
- |
|
|
|
591,051 |
|
|
|
|
255,048 |
|
|
|
231,278 |
|
|
|
48,000 |
|
|
|
534,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Period end purchased loan balances include loans held for
sale of $975 thousand at December 31, 2016. |
(2) The total return on purchased loans represents scheduled
accretion, accelerated accretion, gains on asset sales, and other
noninterest income recorded during the period divided by the
average invested balance, which includes loans held for sale, on an
annualized basis. The total return does not include the
effect of purchased loan charge-offs or recoveries in the
quarter. |
|
2. Deposits decreased by $41.2 million, or
4.6%, from June 30, 2017, attributable primarily to a decrease in
money market accounts of $22.3 million, or 6.0%, and a decrease in
time deposits of $19.4 million, or 5.8%.
3. Shareholders’ equity increased by $7.2 million, or
5.9%, from June 30, 2017, primarily due to earnings of $7.9
million, partially offset by stock option exercises which decreased
additional paid-in-capital by $1.1 million and dividends paid on
common stock of $177 thousand. Additionally, there was stock-based
compensation of $485 thousand.
Net income increased by $204 thousand to $3.3 million for the
quarter ended December 31, 2017, compared to net income of $3.1
million for the quarter ended December 31, 2016.
1. Net interest and dividend income before provision for
loan losses increased by $624 thousand for the quarter ended
December 31, 2017, compared to the quarter ended December 31, 2016.
The increase is primarily due to higher average balances in the
total loan portfolio. This increase was partially offset by higher
funding costs and higher average deposit balances.
The following table summarizes interest income and related
yields recognized on the loan portfolios:
|
Interest Income and Yield on Loans |
|
Three Months Ended December 31, |
|
|
2017 |
|
2016 |
|
|
Average |
|
Interest |
|
|
|
|
Average |
|
Interest |
|
|
|
|
|
Balance (1) |
|
Income |
|
Yield |
|
Balance (1) |
|
Income |
|
Yield |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Community Banking |
|
$ |
141,486 |
|
|
$ |
1,753 |
|
|
4.92 |
% |
|
$ |
203,963 |
|
|
$ |
2,350 |
|
|
4.57 |
% |
SBA |
|
|
49,457 |
|
|
|
814 |
|
|
6.53 |
% |
|
|
41,038 |
|
|
|
574 |
|
|
5.55 |
% |
LASG: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
|
340,240 |
|
|
|
5,565 |
|
|
6.49 |
% |
|
|
216,353 |
|
|
|
3,210 |
|
|
5.89 |
% |
Purchased |
|
|
229,732 |
|
|
|
6,369 |
|
|
11.00 |
% |
|
|
233,502 |
|
|
|
7,659 |
|
|
13.01 |
% |
Secured
Loans to Broker-Dealers |
|
|
- |
|
|
|
- |
|
|
0.00 |
% |
|
|
48,000 |
|
|
|
120 |
|
|
0.99 |
% |
Total
LASG |
|
|
569,972 |
|
|
|
11,934 |
|
|
8.31 |
% |
|
|
497,855 |
|
|
|
10,989 |
|
|
8.76 |
% |
Total |
|
$ |
760,915 |
|
|
$ |
14,501 |
|
|
7.56 |
% |
|
$ |
742,856 |
|
|
$ |
13,913 |
|
|
7.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31, |
|
|
2017 |
|
2016 |
|
|
Average |
|
Interest |
|
|
|
|
Average |
|
Interest |
|
|
|
|
|
Balance (1) |
|
Income |
|
Yield |
|
Balance (1) |
|
Income |
|
Yield |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Community Banking |
|
$ |
145,832 |
|
|
$ |
3,496 |
|
|
4.76 |
% |
|
$ |
204,864 |
|
|
$ |
4,754 |
|
|
4.60 |
% |
SBA |
|
|
51,499 |
|
|
|
1,756 |
|
|
6.76 |
% |
|
|
36,093 |
|
|
|
1,093 |
|
|
6.01 |
% |
LASG: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
|
334,507 |
|
|
|
10,831 |
|
|
6.42 |
% |
|
|
200,731 |
|
|
|
5,949 |
|
|
5.88 |
% |
Purchased |
|
|
234,928 |
|
|
|
13,800 |
|
|
11.65 |
% |
|
|
232,751 |
|
|
|
13,740 |
|
|
11.71 |
% |
Secured
Loans to Broker-Dealers |
|
|
- |
|
|
|
- |
|
|
0.00 |
% |
|
|
48,000 |
|
|
|
180 |
|
|
0.74 |
% |
Total
LASG |
|
|
569,435 |
|
|
|
24,631 |
|
|
8.58 |
% |
|
|
481,482 |
|
|
|
19,869 |
|
|
8.19 |
% |
Total |
|
$ |
766,766 |
|
|
$ |
29,883 |
|
|
7.73 |
% |
|
$ |
722,439 |
|
|
$ |
25,716 |
|
|
7.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of total transactional income on purchased loans
are set forth in the table below entitled “Total Return on
Purchased Loans.” When compared to the three months ended December
31, 2016, transactional income decreased by $1.0 million. The total
return on purchased loans for the three months ended December 31,
2017 was 11.0%. The decrease over the prior comparable period was
primarily due to lower accelerated accretion in the three months
ended December 31, 2017. When compared to the six months ended
December 31, 2016, transactional income increased by $432 thousand.
This increase over the prior comparable period was primarily due to
higher loan fees in the six months ended December 31, 2017. The
following table details the total return on purchased loans:
|
Total Return on Purchased Loans |
|
Three Months Ended December 31, |
|
2017 |
|
2016 |
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Regularly scheduled
interest and accretion |
$ |
4,466 |
|
|
7.71 |
% |
|
$ |
4,716 |
|
|
8.01 |
% |
Transactional
income: |
|
|
|
|
|
|
|
|
|
|
|
Gain on
loan sales |
|
- |
|
|
0.00 |
% |
|
|
- |
|
|
0.00 |
% |
Gain on
sale of real estate owned |
|
- |
|
|
0.00 |
% |
|
|
- |
|
|
0.00 |
% |
Other
noninterest income |
|
- |
|
|
0.00 |
% |
|
|
- |
|
|
0.00 |
% |
Accelerated accretion and loan fees |
|
1,903 |
|
|
3.29 |
% |
|
|
2,943 |
|
|
5.00 |
% |
Total
transactional income |
|
1,903 |
|
|
3.29 |
% |
|
|
2,943 |
|
|
5.00 |
% |
Total |
$ |
6,369 |
|
|
11.00 |
% |
|
$ |
7,659 |
|
|
13.01 |
% |
|
|
|
Total Return on Purchased Loans |
|
Six Months Ended December 31, |
|
2017 |
|
2016 |
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Regularly scheduled
interest and accretion |
$ |
9,079 |
|
|
7.67 |
% |
|
$ |
9,470 |
|
|
8.07 |
% |
Transactional
income: |
|
|
|
|
|
|
|
|
|
|
|
Gain on
loan sales |
|
- |
|
|
0.00 |
% |
|
|
- |
|
|
0.00 |
% |
Gain on
sale of real estate owned |
|
- |
|
|
0.00 |
% |
|
|
19 |
|
|
0.02 |
% |
Other
noninterest income |
|
- |
|
|
0.00 |
% |
|
|
- |
|
|
0.00 |
% |
Accelerated accretion and loan fees |
|
4,721 |
|
|
3.98 |
% |
|
|
4,270 |
|
|
3.64 |
% |
Total
transactional income |
|
4,721 |
|
|
3.98 |
% |
|
|
4,289 |
|
|
3.66 |
% |
Total |
$ |
13,800 |
|
|
11.65 |
% |
|
$ |
13,759 |
|
|
11.73 |
% |
|
(1) The total return on purchased loans represents
scheduled accretion, accelerated accretion, gains on asset sales,
gains on real estate owned and other noninterest income recorded
during the period divided by the average invested balance, which
includes loans held for sale, on an annualized basis. The
total return does not include the effect of purchased loan
charge-offs or recoveries in the quarter. Total return is
considered a non-GAAP financial measure. |
|
2. Noninterest income decreased by $1.5 million for the
quarter ended December 31, 2017, compared to the quarter ended
December 31, 2016, principally due to the following:
- A decrease in gain on sale of SBA loans of $1.4 million, due to
a lower amount of SBA loans sold in the quarter; and
- A decrease in gain on sale of residential loans held for sale
of $82 thousand, due to lower volume of residential loans sold in
the quarter.
3. Noninterest expense decreased by $393 thousand for the
quarter ended December 31, 2017, compared to the quarter ended
December 31, 2016, primarily due to the following:
- A decrease in other noninterest expense of $395 thousand,
primarily due to a $330 thousand decrease in expense related to the
quarterly valuation of SBA servicing rights; and
- A decrease in loan expense of $179 thousand, largely driven by
lower expense related to loan acquisition and refinance
activity.
- The decreases in noninterest expense were partially offset by
an increase in data processing fees of $214 thousand, primarily due
to the increased cost associated with outsourcing of data
processing.
4. Income tax expense decreased by $458 thousand for the
quarter ended December 31, 2017, compared to the quarter ended
December 31, 2016, primarily due to the following:
- A decrease in the federal corporate income tax rate as a result
of the Tax Cuts and Jobs Act signed into law on December 22, 2017,
which resulted in a $762 thousand decrease in federal income tax
expense. Of this total, $328 thousand was related to the decrease
in the federal corporate income tax rate for the three months ended
December 31, 2017 and $434 thousand was related to income tax
expense previously recorded in the three months ended September 30,
2017, to arrive at the required blended federal corporate income
tax rate of 28.0% for fiscal year 2018; and
- A decrease in income tax expense as a result of a $279 thousand
income tax benefit arising from the treatment of stock options
exercised or vested restricted stock awards under ASU 2016-09,
Compensation—Stock Compensation (Topic 718): Improvements to
Employee Share-Based Payment Accounting, whereby the tax effects of
exercised options or vested awards are treated as a discrete item
in the reporting period in which they occur.
- The decreases in income tax expense were partially offset by
the impact of revaluing the deferred tax asset as a result of the
change in the federal corporate income tax rate as well as the
recording of current year changes in the deferred tax asset, which
resulted in an increase in income tax expense of $498
thousand.
As of December 31, 2017, nonperforming assets totaled $19.0
million, or 1.84% of total assets, as compared to $18.7 million, or
1.78% of total assets, as of September 30, 2017, and $14.8 million,
or 1.37% of total assets, as of June 30, 2017.
As of December 31, 2017, past due loans totaled $30.0 million,
or 3.87% of total loans, as compared to $12.1 million, or 1.60% of
total loans as of September 30, 2017, and $13.4 million, or 1.72%
of total loans as of June 30, 2017. The increase was primarily
attributable to $5.3 million of loans purchased in December that
were delinquent at purchase, as well as $8.8 million of loans that
were 30 days past due as of December 31, 2017 and are now
current.
As of December 31, 2017, the Company’s Tier 1 Leverage Ratio was
13.4%, compared to 12.8% at June 30, 2017, and the Total Capital
Ratio was 20.3%, compared to 19.5% at June 30, 2017. The increase
in both the Tier 1 Leverage Ratio and the Total Capital Ratio
resulted primarily from the increase in earnings and the net
decrease in the loan portfolio.
Investor Call InformationRichard Wayne, Chief
Executive Officer of Northeast Bancorp, and Jean-Pierre Lapointe,
Chief Financial Officer of Northeast Bancorp, will host a
conference call to discuss second quarter earnings and
business outlook at 10:00 a.m. Eastern Time on Tuesday, January
30th. Investors can access the call by dialing
877.878.2762 and entering the following passcode: 3783438. The call
will be available via live webcast, which can be viewed by
accessing the Company’s website at www.northeastbank.com and
clicking on the About Us - Investor Relations section. To listen to
the webcast, attendees are encouraged to visit the website at least
fifteen minutes early to register, download and install any
necessary audio software. Please note there will also be a slide
presentation that will accompany the webcast. For those who cannot
listen to the live broadcast, a replay will be available online for
one year at www.northeastbank.com.
About Northeast BancorpNortheast Bancorp
(NASDAQ:NBN) is the holding company for Northeast Bank, a
full-service bank headquartered in Lewiston, Maine. We offer
personal and business banking services to the Maine and New
Hampshire markets via ten branches and two loan production offices.
Our Loan Acquisition and Servicing Group (“LASG”) purchases and
originates commercial loans on a nationwide basis and our SBA
Division supports the needs of growing businesses nationally.
ableBanking, a division of Northeast Bank, offers online savings
products to consumers nationwide. Information regarding Northeast
Bank can be found at www.northeastbank.com.
Non-GAAP Financial MeasuresIn addition to results presented in
accordance with generally accepted accounting principles (“GAAP”),
this press release contains certain non-GAAP financial measures,
including tangible common shareholders’ equity, tangible book value
per share, total return, and efficiency ratio. Northeast’s
management believes that the supplemental non-GAAP information is
utilized by regulators and market analysts to evaluate a company’s
financial condition and therefore, such information is useful to
investors. These disclosures should not be viewed as a substitute
for financial results determined in accordance with GAAP, nor are
they necessarily comparable to non-GAAP performance measures that
may be presented by other companies. Because non-GAAP financial
measures are not standardized, it may not be possible to compare
these financial measures with other companies’ non-GAAP financial
measures having the same or similar names.
Forward-Looking Statements Statements in this press release that
are not historical facts are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and are intended to be covered by the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Although
Northeast believes that these forward-looking statements are based
on reasonable estimates and assumptions, they are not guarantees of
future performance and are subject to known and unknown risks,
uncertainties, and other factors. You should not place undue
reliance on our forward-looking statements. You should exercise
caution in interpreting and relying on forward-looking statements
because they are subject to significant risks, uncertainties and
other factors which are, in some cases, beyond the Company’s
control. The Company’s actual results could differ materially from
those projected in the forward-looking statements as a result of,
among other factors, changes in interest rates and real estate
values; competitive pressures from other financial institutions;
the effects of weakness in general economic conditions on a
national basis or in the local markets in which the Company
operates, including changes which adversely affect borrowers’
ability to service and repay our loans; changes in loan defaults
and charge-off rates; changes in the value of securities and other
assets, adequacy of loan loss reserves, or deposit levels
necessitating increased borrowing to fund loans and investments;
changing government regulation; operational risks including, but
not limited to, cybersecurity, fraud and natural disasters; the
risk that the Company may not be successful in the implementation
of its business strategy; the risk that intangibles recorded in the
Company’s financial statements will become impaired; changes in
assumptions used in making such forward-looking statements; and the
other risks and uncertainties detailed in the Company’s Annual
Report on Form 10-K and updated by the Company’s Quarterly Reports
on Form 10-Q and other filings submitted to the Securities and
Exchange Commission. These statements speak only as of the date of
this release and the Company does not undertake any obligation to
update or revise any of these forward-looking statements to reflect
events or circumstances occurring after the date of this
communication or to reflect the occurrence of unanticipated
events.
For more information:
Jean-Pierre Lapointe, Chief Financial OfficerNortheast Bank, 500
Canal Street, Lewiston, ME 04240 207.786.3245 ext.
3220www.northeastbank.com
NBN-F
|
|
NORTHEAST BANCORP AND SUBSIDIARY |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(Dollars in
thousands, except share and per share data) |
|
December 31, 2017 |
|
June 30, 2017 |
Assets |
|
|
|
|
|
Cash and due from
banks |
$ |
2,515 |
|
|
$ |
3,582 |
|
Short-term
investments |
|
125,708 |
|
|
|
159,701 |
|
Total
cash and cash equivalents |
|
128,223 |
|
|
|
163,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
securities, at fair value |
|
92,339 |
|
|
|
96,693 |
|
|
|
|
|
|
|
Residential real estate
loans held for sale |
|
5,515 |
|
|
|
4,508 |
|
SBA loans held for
sale |
|
818 |
|
|
|
191 |
|
Total
loans held for sale |
|
6,333 |
|
|
|
4,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
|
Commercial real estate |
|
493,954 |
|
|
|
498,004 |
|
Commercial and industrial |
|
178,840 |
|
|
|
175,654 |
|
Residential real estate |
|
97,593 |
|
|
|
101,168 |
|
Consumer |
|
3,803 |
|
|
|
4,369 |
|
Total
loans |
|
774,190 |
|
|
|
779,195 |
|
Less: Allowance for loan losses |
|
4,355 |
|
|
|
3,665 |
|
Loans,
net |
|
769,835 |
|
|
|
775,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
7,061 |
|
|
|
6,937 |
|
Real estate owned and
other repossessed collateral, net |
|
910 |
|
|
|
826 |
|
Federal Home Loan Bank
stock, at cost |
|
1,758 |
|
|
|
1,938 |
|
Intangible assets,
net |
|
1,082 |
|
|
|
1,300 |
|
Loan servicing rights,
net |
|
3,005 |
|
|
|
2,846 |
|
Bank-owned life
insurance |
|
16,402 |
|
|
|
16,179 |
|
Other assets |
|
7,498 |
|
|
|
6,643 |
|
Total
assets |
$ |
1,034,446 |
|
|
$ |
1,076,874 |
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
Deposits |
|
|
|
|
|
Demand |
$ |
71,054 |
|
|
$ |
69,827 |
|
Savings
and interest checking |
|
107,750 |
|
|
|
108,417 |
|
Money
market |
|
352,237 |
|
|
|
374,569 |
|
Time |
|
317,613 |
|
|
|
337,037 |
|
Total
deposits |
|
848,654 |
|
|
|
889,850 |
|
|
|
|
|
|
|
Federal Home Loan Bank
advances |
|
15,000 |
|
|
|
20,011 |
|
Subordinated debt |
|
23,790 |
|
|
|
23,620 |
|
Capital lease
obligation |
|
741 |
|
|
|
873 |
|
Other liabilities |
|
16,258 |
|
|
|
19,723 |
|
Total
liabilities |
|
904,443 |
|
|
|
954,077 |
|
|
|
|
|
|
|
Commitments and
contingencies |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
|
Preferred stock, $1.00
par value, 1,000,000 shares authorized; no shares issued and
outstanding at December 31, 2017 and June 30, 2017 |
|
- |
|
|
|
- |
|
Voting common stock,
$1.00 par value, 25,000,000 shares authorized; 8,017,334 and
7,840,460 shares issued and outstanding at December 31, 2017 and
June 30, 2017, respectively |
|
8,017 |
|
|
|
7,841 |
|
Non-voting
common stock, $1.00 par value, 3,000,000 shares authorized; 921,939
and 991,194 shares issued and outstanding at December 31, 2017 and
June 30, 2017, respectively |
922 |
|
|
|
991 |
|
Additional paid-in
capital |
|
76,805 |
|
|
|
77,455 |
|
Retained earnings |
|
45,855 |
|
|
|
38,142 |
|
Accumulated other
comprehensive loss |
|
(1,596 |
) |
|
|
(1,632 |
) |
Total
shareholders' equity |
|
130,003 |
|
|
|
122,797 |
|
Total
liabilities and shareholders' equity |
$ |
1,034,446 |
|
|
$ |
1,076,874 |
|
|
NORTHEAST BANCORP AND SUBSIDIARY |
CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
(Dollars
in thousands, except share and per share data) |
|
Three Months Ended December 31, |
|
Six Months Ended December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
$ |
14,501 |
|
$ |
13,913 |
|
$ |
29,883 |
|
$ |
25,716 |
|
Interest
on available-for-sale securities |
|
267 |
|
|
247 |
|
|
533 |
|
|
486 |
|
Other
interest and dividend income |
|
492 |
|
|
172 |
|
|
1,022 |
|
|
387 |
|
Total
interest and dividend income |
|
15,260 |
|
|
14,332 |
|
|
31,438 |
|
|
26,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
2,129 |
|
|
1,798 |
|
|
4,305 |
|
|
3,553 |
|
Federal
Home Loan Bank advances |
|
148 |
|
|
220 |
|
|
319 |
|
|
475 |
|
Subordinated debt |
|
517 |
|
|
468 |
|
|
1,025 |
|
|
927 |
|
Obligation under capital lease agreements |
|
9 |
|
|
13 |
|
|
21 |
|
|
27 |
|
Total
interest expense |
|
2,803 |
|
|
2,499 |
|
|
5,670 |
|
|
4,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
dividend income before provision for loan losses |
|
12,457 |
|
|
11,833 |
|
|
25,768 |
|
|
21,607 |
|
Provision for loan
losses |
|
437 |
|
|
628 |
|
|
792 |
|
|
820 |
|
Net interest and
dividend income after provision for loan losses |
|
12,020 |
|
|
11,205 |
|
|
24,976 |
|
|
20,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
Fees for
other services to customers |
|
475 |
|
|
481 |
|
|
1,002 |
|
|
889 |
|
Gain on
sales of residential loans held for sale |
|
255 |
|
|
337 |
|
|
545 |
|
|
878 |
|
Gain on
sales of SBA loans |
|
341 |
|
|
1,734 |
|
|
1,361 |
|
|
2,476 |
|
Gain on
sales of other loans |
|
21 |
|
|
- |
|
|
21 |
|
|
- |
|
Gain
(loss) on real estate owned, other repossessed collateral and
premises and equipment, net |
|
11 |
|
|
3 |
|
|
11 |
|
|
(11 |
) |
Bank-owned life insurance income |
|
111 |
|
|
114 |
|
|
223 |
|
|
228 |
|
Other
noninterest income |
|
14 |
|
|
21 |
|
|
23 |
|
|
38 |
|
Total
noninterest income |
|
1,228 |
|
|
2,690 |
|
|
3,186 |
|
|
4,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
5,173 |
|
|
5,161 |
|
|
10,427 |
|
|
10,475 |
|
Occupancy
and equipment expense |
|
1,150 |
|
|
1,252 |
|
|
2,260 |
|
|
2,481 |
|
Professional fees |
|
425 |
|
|
399 |
|
|
867 |
|
|
895 |
|
Data
processing fees |
|
624 |
|
|
410 |
|
|
1,227 |
|
|
832 |
|
Marketing
expense |
|
70 |
|
|
97 |
|
|
157 |
|
|
184 |
|
Loan
acquisition and collection expense |
|
368 |
|
|
547 |
|
|
733 |
|
|
774 |
|
FDIC
insurance premiums |
|
80 |
|
|
22 |
|
|
160 |
|
|
146 |
|
Intangible asset amortization |
|
109 |
|
|
109 |
|
|
218 |
|
|
218 |
|
Other
noninterest expense |
|
564 |
|
|
959 |
|
|
1,228 |
|
|
1,577 |
|
Total
noninterest expense |
|
8,563 |
|
|
8,956 |
|
|
17,277 |
|
|
17,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense |
|
4,685 |
|
|
4,939 |
|
|
10,885 |
|
|
7,703 |
|
Income tax expense |
|
1,381 |
|
|
1,839 |
|
|
2,995 |
|
|
2,852 |
|
Net income |
$ |
3,304 |
|
$ |
3,100 |
|
$ |
7,890 |
|
$ |
4,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
8,924,495 |
|
|
8,831,235 |
|
|
8,883,003 |
|
|
8,968,690 |
|
Diluted |
|
9,168,084 |
|
|
8,864,618 |
|
|
9,129,010 |
|
|
8,999,062 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
$ |
0.35 |
|
$ |
0.89 |
|
$ |
0.54 |
|
Diluted |
|
0.36 |
|
|
0.35 |
|
|
0.86 |
|
|
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per common share |
$ |
0.01 |
|
$ |
0.01 |
|
$ |
0.02 |
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTHEAST BANCORP AND SUBSIDIARY |
CONSOLIDATED AVERAGE BALANCE SHEETS AND ANNUALIZED
YIELDS |
(Unaudited) |
(Dollars
in thousands) |
|
Three Months Ended December 31, |
|
2017 |
|
2016 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
93,945 |
|
|
$ |
267 |
|
|
1.13 |
% |
|
$ |
92,750 |
|
|
$ |
247 |
|
|
1.06 |
% |
Loans (1)
(2) (3) |
|
760,915 |
|
|
|
14,501 |
|
|
7.56 |
% |
|
|
742,856 |
|
|
|
13,931 |
|
|
7.44 |
% |
Federal
Home Loan Bank stock |
|
1,860 |
|
|
|
21 |
|
|
4.48 |
% |
|
|
2,398 |
|
|
|
23 |
|
|
3.81 |
% |
Short-term investments (4) |
|
145,305 |
|
|
|
471 |
|
|
1.29 |
% |
|
|
114,276 |
|
|
|
149 |
|
|
0.52 |
% |
Total interest-earning
assets |
|
1,002,025 |
|
|
|
15,260 |
|
|
6.04 |
% |
|
|
952,280 |
|
|
|
14,350 |
|
|
5.98 |
% |
Cash and due from
banks |
|
2,731 |
|
|
|
|
|
|
|
|
|
2,764 |
|
|
|
|
|
|
|
Other non-interest
earning assets |
|
33,164 |
|
|
|
|
|
|
|
|
|
35,213 |
|
|
|
|
|
|
|
Total assets |
$ |
1,037,920 |
|
|
|
|
|
|
|
|
$ |
990,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
accounts |
$ |
70,287 |
|
|
$ |
52 |
|
|
0.29 |
% |
|
$ |
71,795 |
|
|
$ |
52 |
|
|
0.29 |
% |
Money
market accounts |
|
367,265 |
|
|
|
1,030 |
|
|
1.11 |
% |
|
|
312,911 |
|
|
|
753 |
|
|
0.95 |
% |
Savings
accounts |
|
36,872 |
|
|
|
12 |
|
|
0.13 |
% |
|
|
35,206 |
|
|
|
12 |
|
|
0.14 |
% |
Time
deposits |
|
303,246 |
|
|
|
1,035 |
|
|
1.35 |
% |
|
|
317,318 |
|
|
|
981 |
|
|
1.23 |
% |
Total
interest-bearing deposits |
|
777,670 |
|
|
|
2,129 |
|
|
1.09 |
% |
|
|
737,230 |
|
|
|
1,798 |
|
|
0.97 |
% |
Federal
Home Loan Bank advances |
|
17,719 |
|
|
|
148 |
|
|
3.31 |
% |
|
|
27,099 |
|
|
|
220 |
|
|
3.22 |
% |
Subordinated debt |
|
23,745 |
|
|
|
517 |
|
|
8.64 |
% |
|
|
23,430 |
|
|
|
468 |
|
|
7.92 |
% |
Capital
lease obligations |
|
764 |
|
|
|
9 |
|
|
4.67 |
% |
|
|
1,024 |
|
|
|
13 |
|
|
5.04 |
% |
Total interest-bearing
liabilities |
|
819,898 |
|
|
|
2,803 |
|
|
1.36 |
% |
|
|
788,783 |
|
|
|
2,499 |
|
|
1.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and
escrow accounts |
|
83,855 |
|
|
|
|
|
|
|
|
|
80,538 |
|
|
|
|
|
|
|
Other liabilities |
|
5,676 |
|
|
|
|
|
|
|
|
|
8,299 |
|
|
|
|
|
|
|
Total liabilities |
|
909,429 |
|
|
|
|
|
|
|
|
|
877,620 |
|
|
|
|
|
|
|
Shareholders'
equity |
|
128,491 |
|
|
|
|
|
|
|
|
|
112,637 |
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
1,037,920 |
|
|
|
|
|
|
|
|
$ |
990,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (5) |
|
|
|
|
$ |
12,457 |
|
|
|
|
|
|
|
|
$ |
11,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
|
|
|
4.68 |
% |
|
|
|
|
|
|
|
|
|
4.72 |
% |
Net interest margin
(6) |
|
|
|
|
|
|
|
|
4.93 |
% |
|
|
|
|
|
|
|
|
|
4.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Interest income and yield are stated on a fully
tax-equivalent basis using the statutory tax rate. |
(2)
Includes loans held for sale. |
(3)
Nonaccrual loans are included in the computation of average,
but unpaid interest has not been included for purposes of
determining interest income. |
(4)
Short term investments include FHLB overnight deposits and
other interest-bearing deposits. |
(5)
Includes tax exempt interest income of $18 thousand for the
three months ended December 31, 2016. |
(6)
Net interest margin is calculated as net interest income
divided by total interest-earning assets. |
|
NORTHEAST BANCORP AND SUBSIDIARY |
CONSOLIDATED AVERAGE BALANCE SHEETS AND ANNUALIZED
YIELDS |
(Unaudited) |
(Dollars
in thousands) |
|
Six Months Ended December 31, |
|
2017 |
|
2016 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
94,886 |
|
|
$ |
533 |
|
|
1.11 |
% |
|
$ |
93,825 |
|
|
$ |
486 |
|
|
1.03 |
% |
Loans (1)
(2) (3) |
|
766,766 |
|
|
|
29,893 |
|
|
7.73 |
% |
|
|
722,439 |
|
|
|
25,752 |
|
|
7.07 |
% |
Federal
Home Loan Bank stock |
|
1,899 |
|
|
|
41 |
|
|
4.28 |
% |
|
|
2,403 |
|
|
|
46 |
|
|
3.80 |
% |
Short-term investments (4) |
|
152,830 |
|
|
|
981 |
|
|
1.27 |
% |
|
|
134,334 |
|
|
|
341 |
|
|
0.50 |
% |
Total interest-earning
assets |
|
1,016,381 |
|
|
|
31,448 |
|
|
6.14 |
% |
|
|
953,001 |
|
|
|
26,625 |
|
|
5.54 |
% |
Cash and due from
banks |
|
2,933 |
|
|
|
|
|
|
|
|
|
2,852 |
|
|
|
|
|
|
|
Other non-interest
earning assets |
|
32,025 |
|
|
|
|
|
|
|
|
|
33,012 |
|
|
|
|
|
|
|
Total assets |
$ |
1,051,339 |
|
|
|
|
|
|
|
|
$ |
988,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
accounts |
$ |
69,931 |
|
|
$ |
102 |
|
|
0.29 |
% |
|
$ |
71,323 |
|
|
$ |
103 |
|
|
0.29 |
% |
Money
market accounts |
|
377,449 |
|
|
|
2,127 |
|
|
1.12 |
% |
|
|
302,323 |
|
|
|
1,435 |
|
|
0.94 |
% |
Savings
accounts |
|
36,953 |
|
|
|
25 |
|
|
0.13 |
% |
|
|
35,488 |
|
|
|
25 |
|
|
0.14 |
% |
Time
deposits |
|
307,865 |
|
|
|
2,051 |
|
|
1.32 |
% |
|
|
326,794 |
|
|
|
1,990 |
|
|
1.21 |
% |
Total
interest-bearing deposits |
|
792,198 |
|
|
|
4,305 |
|
|
1.08 |
% |
|
|
735,928 |
|
|
|
3,553 |
|
|
0.96 |
% |
Federal
Home Loan Bank advances |
|
18,863 |
|
|
|
319 |
|
|
3.35 |
% |
|
|
28,580 |
|
|
|
475 |
|
|
3.30 |
% |
Subordinated debt |
|
23,703 |
|
|
|
1,025 |
|
|
8.58 |
% |
|
|
23,395 |
|
|
|
927 |
|
|
7.86 |
% |
Capital
lease obligations |
|
797 |
|
|
|
21 |
|
|
5.23 |
% |
|
|
1,056 |
|
|
|
27 |
|
|
5.07 |
% |
Total interest-bearing
liabilities |
|
835,561 |
|
|
|
5,670 |
|
|
1.35 |
% |
|
|
788,959 |
|
|
|
4,982 |
|
|
1.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and
escrow accounts |
|
82,210 |
|
|
|
|
|
|
|
|
|
78,104 |
|
|
|
|
|
|
|
Other liabilities |
|
7,071 |
|
|
|
|
|
|
|
|
|
8,255 |
|
|
|
|
|
|
|
Total liabilities |
|
924,842 |
|
|
|
|
|
|
|
|
|
875,318 |
|
|
|
|
|
|
|
Shareholders'
equity |
|
126,497 |
|
|
|
|
|
|
|
|
|
113,547 |
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
1,051,339 |
|
|
|
|
|
|
|
|
$ |
988,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (5) |
|
|
|
|
$ |
25,778 |
|
|
|
|
|
|
|
|
$ |
21,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
|
|
|
4.79 |
% |
|
|
|
|
|
|
|
|
|
4.29 |
% |
Net interest margin
(6) |
|
|
|
|
|
|
|
|
5.03 |
% |
|
|
|
|
|
|
|
|
|
4.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Interest income and yield are stated on a fully
tax-equivalent basis using the statutory tax rate. |
(2)
Includes loans held for sale. |
(3)
Nonaccrual loans are included in the computation of average,
but unpaid interest has not been included for purposes of
determining interest income. |
(4)
Short term investments include FHLB overnight deposits and
other interest-bearing deposits. |
(5)
Includes tax exempt interest income of $10 thousand and $36
thousand for the six months ended December 31, 2017 and December
31, 2016, respectively. |
(6)
Net interest margin is calculated as net interest income
divided by total interest-earning assets. |
|
NORTHEAST BANCORP AND SUBSIDIARY |
SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS AND OTHER
DATA |
(Unaudited) |
(Dollars
in thousands, except share and per share data) |
|
Three Months Ended: |
|
December 31, 2017 |
|
September 30, 2017 |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
Net interest
income |
$ |
12,457 |
|
|
$ |
13,311 |
|
|
$ |
13,757 |
|
|
$ |
12,459 |
|
|
$ |
11,833 |
|
Provision for loan
losses |
|
437 |
|
|
|
354 |
|
|
|
389 |
|
|
|
384 |
|
|
|
628 |
|
Noninterest income |
|
1,228 |
|
|
|
1,958 |
|
|
|
2,890 |
|
|
|
2,308 |
|
|
|
2,690 |
|
Noninterest
expense |
|
8,563 |
|
|
|
8,714 |
|
|
|
9,364 |
|
|
|
8,842 |
|
|
|
8,956 |
|
Net income |
|
3,304 |
|
|
|
4,586 |
|
|
|
4,027 |
|
|
|
3,461 |
|
|
|
3,100 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
8,924,495 |
|
|
|
8,841,511 |
|
|
|
8,823,679 |
|
|
|
8,830,442 |
|
|
|
8,831,235 |
|
Diluted |
|
9,168,084 |
|
|
|
9,089,936 |
|
|
|
8,979,471 |
|
|
|
8,893,534 |
|
|
|
8,864,618 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
|
$ |
0.52 |
|
|
$ |
0.46 |
|
|
$ |
0.39 |
|
|
$ |
0.35 |
|
Diluted |
|
0.36 |
|
|
|
0.50 |
|
|
|
0.45 |
|
|
|
0.39 |
|
|
|
0.35 |
|
Dividends per common
share |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
1.26 |
% |
|
|
1.71 |
% |
|
|
1.57 |
% |
|
|
1.37 |
% |
|
|
1.24 |
% |
Return on average
equity |
|
10.20 |
% |
|
|
14.61 |
% |
|
|
13.34 |
% |
|
|
12.03 |
% |
|
|
10.92 |
% |
Net interest rate
spread (1) |
|
4.68 |
% |
|
|
4.89 |
% |
|
|
5.32 |
% |
|
|
4.90 |
% |
|
|
4.72 |
% |
Net interest margin
(2) |
|
4.93 |
% |
|
|
5.13 |
% |
|
|
5.55 |
% |
|
|
5.11 |
% |
|
|
4.94 |
% |
Efficiency ratio
(non-GAAP) (3) |
|
62.57 |
% |
|
|
57.07 |
% |
|
|
56.25 |
% |
|
|
59.88 |
% |
|
|
61.67 |
% |
Noninterest expense to
average total assets |
|
3.27 |
% |
|
|
3.25 |
% |
|
|
3.64 |
% |
|
|
3.50 |
% |
|
|
3.59 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
122.21 |
% |
|
|
121.09 |
% |
|
|
121.13 |
% |
|
|
120.84 |
% |
|
|
120.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
December 31, 2017 |
|
September 30, 2017 |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
Nonperforming
loans: |
|
|
|
|
|
|
|
|
|
Originated
portfolio: |
|
|
|
|
|
|
|
|
|
Residential real estate |
$ |
3,783 |
|
|
$ |
3,667 |
|
|
$ |
3,337 |
|
|
$ |
3,265 |
|
|
$ |
2,827 |
|
Commercial real estate |
|
2,537 |
|
|
|
2,409 |
|
|
|
413 |
|
|
|
420 |
|
|
|
396 |
|
Home
equity |
|
107 |
|
|
|
58 |
|
|
|
58 |
|
|
|
48 |
|
|
|
48 |
|
Commercial and industrial |
|
2,555 |
|
|
|
2,629 |
|
|
|
2,600 |
|
|
|
2,636 |
|
|
|
2,659 |
|
Consumer |
|
147 |
|
|
|
131 |
|
|
|
103 |
|
|
|
65 |
|
|
|
48 |
|
Total originated
portfolio |
|
9,129 |
|
|
|
8,894 |
|
|
|
6,511 |
|
|
|
6,434 |
|
|
|
5,978 |
|
Total purchased
portfolio |
|
8,962 |
|
|
|
7,758 |
|
|
|
7,452 |
|
|
|
8,388 |
|
|
|
4,219 |
|
Total nonperforming
loans |
|
18,091 |
|
|
|
16,652 |
|
|
|
13,963 |
|
|
|
14,822 |
|
|
|
10,197 |
|
Real estate owned and
other repossessed collateral, net |
|
910 |
|
|
|
2,040 |
|
|
|
826 |
|
|
|
3,761 |
|
|
|
3,145 |
|
Total nonperforming
assets |
$ |
19,001 |
|
|
$ |
18,692 |
|
|
$ |
14,789 |
|
|
$ |
18,583 |
|
|
$ |
13,342 |
|
|
|
|
|
|
|
|
|
|
|
Past due loans to total
loans |
|
3.87 |
% |
|
|
1.60 |
% |
|
|
1.72 |
% |
|
|
3.25 |
% |
|
|
2.85 |
% |
Nonperforming loans to
total loans |
|
2.34 |
% |
|
|
2.19 |
% |
|
|
1.79 |
% |
|
|
2.00 |
% |
|
|
1.33 |
% |
Nonperforming assets to
total assets |
|
1.84 |
% |
|
|
1.78 |
% |
|
|
1.37 |
% |
|
|
1.81 |
% |
|
|
1.32 |
% |
Allowance for loan
losses to total loans |
|
0.56 |
% |
|
|
0.53 |
% |
|
|
0.47 |
% |
|
|
0.46 |
% |
|
|
0.41 |
% |
Allowance for loan
losses to nonperforming loans |
|
24.07 |
% |
|
|
24.23 |
% |
|
|
26.25 |
% |
|
|
22.77 |
% |
|
|
30.47 |
% |
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans to risk-based capital (4) |
|
187.92 |
% |
|
|
166.15 |
% |
|
|
181.23 |
% |
|
|
181.83 |
% |
|
|
197.11 |
% |
Net loans to core
deposits (5) |
|
91.46 |
% |
|
|
88.68 |
% |
|
|
87.68 |
% |
|
|
87.46 |
% |
|
|
92.04 |
% |
Purchased loans to
total loans, including held for sale |
|
31.28 |
% |
|
|
30.11 |
% |
|
|
31.43 |
% |
|
|
31.87 |
% |
|
|
32.91 |
% |
Equity to total
assets |
|
12.57 |
% |
|
|
12.07 |
% |
|
|
11.40 |
% |
|
|
11.55 |
% |
|
|
11.35 |
% |
Common equity tier 1
capital ratio |
|
16.74 |
% |
|
|
16.50 |
% |
|
|
16.00 |
% |
|
|
15.80 |
% |
|
|
14.94 |
% |
Total capital
ratio |
|
20.30 |
% |
|
|
20.04 |
% |
|
|
19.48 |
% |
|
|
19.30 |
% |
|
|
18.31 |
% |
Tier 1 leverage capital
ratio |
|
13.41 |
% |
|
|
12.77 |
% |
|
|
12.81 |
% |
|
|
12.46 |
% |
|
|
12.60 |
% |
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
$ |
130,003 |
|
|
$ |
126,712 |
|
|
$ |
122,797 |
|
|
$ |
118,675 |
|
|
$ |
114,942 |
|
Less: Preferred
stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common shareholders'
equity |
|
130,003 |
|
|
|
126,712 |
|
|
|
122,797 |
|
|
|
118,675 |
|
|
|
114,942 |
|
Less: Intangible assets
(6) |
|
(4,087 |
) |
|
|
(4,146 |
) |
|
|
(4,146 |
) |
|
|
(3,898 |
) |
|
|
(3,856 |
) |
Tangible common
shareholders' equity (non-GAAP) |
$ |
125,916 |
|
|
$ |
122,566 |
|
|
$ |
118,651 |
|
|
$ |
114,777 |
|
|
$ |
111,086 |
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
8,939,273 |
|
|
|
8,890,353 |
|
|
|
8,831,654 |
|
|
|
8,815,279 |
|
|
|
8,831,235 |
|
Book value per common
share |
$ |
14.54 |
|
|
$ |
14.25 |
|
|
$ |
13.90 |
|
|
$ |
13.46 |
|
|
$ |
13.02 |
|
Tangible book value per
share (non-GAAP) (7) |
|
14.09 |
|
|
|
13.79 |
|
|
|
13.43 |
|
|
|
13.02 |
|
|
|
12.58 |
|
|
|
|
|
|
|
|
|
|
|
(1) The
net interest rate spread represents the difference between the
weighted-average yield on interest-earning assets and the
weighted-average cost of interest-bearing liabilities for the
period. |
(2) The
net interest margin represents net interest income as a percent of
average interest-earning assets for the period. |
(3) The
efficiency ratio represents noninterest expense divided by the sum
of net interest income (before the loan loss provision) plus
noninterest income. |
(4) For
purposes of calculating this ratio, commercial real estate includes
all non-owner occupied commercial real estate loans defined as such
by regulatory guidance, including all land development and
construction loans. |
(5) Core
deposits include all non-maturity deposits and maturity deposits
less than $250 thousand. Loans include loans held for sale. |
(6)
Includes the core deposit intangible asset and loan servicing
rights asset. |
(7)
Tangible book value per share represents total shareholders' equity
less the sum of preferred stock and intangible assets divided by
common shares outstanding. |
|
Northeast Bank (NASDAQ:NBN)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Northeast Bank (NASDAQ:NBN)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024