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 $4.5
million, or $0.49 per diluted common share, for the quarter ended
September 30, 2018, compared to net income of $4.6 million, or
$0.50 per diluted common share, for the quarter ended September 30,
2017.
On October 29, 2018, the Board of Directors declared a cash
dividend of $0.01 per share, payable on November 23, 2018, to
shareholders of record as of November 9, 2018.
“We started fiscal 2019 with a solid first quarter,” said
Richard Wayne, President and Chief Executive Officer. “For the
quarter, we earned $0.49 per diluted common share, a return on
equity of 12.8%, and a return on assets of 1.5%, while keeping our
operating expenses in check with an efficiency ratio of 58.8%. Our
Loan Acquisition and Servicing Group produced $105.9 million of
loans, including originations of $71.1 million and purchases with a
recorded investment of $34.8 million during the quarter. This
represents quarterly net growth in the LASG portfolio of $20.0
million, or 2.9%.”
As of September 30, 2018, total assets were $1.2 billion, an
increase of $56.0 million, or 4.8%, from total assets of $1.2
billion as of June 30, 2018. The principal components of the
changes in the balance sheet follow:
1. The following table highlights the changes in the loan
portfolio for the three months ended September 30, 2018:
|
Three Months Ended September 30, 2018 |
|
September 30, 2018Balance |
|
June 30, 2018 Balance |
|
Change ($) |
|
Change (%) |
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
LASG Purchased |
$ |
300,548 |
|
$ |
290,972 |
|
$ |
9,576 |
|
|
3.29 |
% |
LASG Originated |
|
407,822 |
|
|
397,363 |
|
|
10,459 |
|
|
2.63 |
% |
SBA |
|
67,212 |
|
|
60,156 |
|
|
7,056 |
|
|
11.73 |
% |
Community Banking |
|
111,614 |
|
|
123,311 |
|
|
(11,697 |
) |
|
(9.49 |
%) |
Total |
$ |
887,196 |
|
$ |
871,802 |
|
$ |
15,394 |
|
|
1.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans generated by the Bank's Loan Acquisition and Servicing
Group ("LASG") for the quarter ended September 30, 2018 totaled
$105.9 million, which consisted of $34.8 million of purchased
loans, at an average price of 93.9% of unpaid principal balance,
and $71.1 million of originated loans. The Bank's Small Business
Administration ("SBA") Division closed $18.9 million and funded
$18.6 million of new loans during the quarter ended September 30,
2018. In addition, the Company sold $12.3 million of the guaranteed
portion of SBA loans in the secondary market, of which $7.4 million
were originated in the current quarter and $4.9 million were
originated in prior quarters. Residential loan production sold in
the secondary market totaled $13.2 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 September 30,
2018 |
|
|
|
|
(Dollars in millions) |
Total Loans |
|
Purchased loans may not exceed 40% of total loans |
|
$ |
92.7 |
Regulatory Capital |
|
Non-owner occupied commercial real estate loans may not exceed 300%
of total capital |
|
$ |
120.2 |
|
|
|
|
|
|
An overview of the Bank’s LASG portfolio
follows:
|
LASG Portfolio |
|
Three Months Ended September 30, |
|
2018 |
|
2017 |
|
Purchased |
|
Originated |
|
Total LASG |
|
Purchased |
|
Originated |
|
Total LASG |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Loans purchased or
originated during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
principal balance |
$ |
37,077 |
|
|
$ |
71,136 |
|
|
$ |
108,213 |
|
|
$ |
4,318 |
|
|
$ |
40,779 |
|
|
$ |
45,097 |
|
Net
investment basis |
|
34,803 |
|
|
|
71,136 |
|
|
|
105,939 |
|
|
|
3,651 |
|
|
|
40,779 |
|
|
|
44,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield |
|
9.46 |
% |
|
|
7.43 |
% |
|
|
8.31 |
% |
|
|
12.28 |
% |
|
|
6.35 |
% |
|
|
8.85 |
% |
Total
Return (1) |
|
9.46 |
% |
|
|
7.43 |
% |
|
|
8.31 |
% |
|
|
12.28 |
% |
|
|
6.35 |
% |
|
|
8.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans as of
period end: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
principal balance |
$ |
336,908 |
|
|
$ |
407,822 |
|
|
$ |
744,730 |
|
|
$ |
262,144 |
|
|
$ |
340,756 |
|
|
$ |
602,900 |
|
Net
investment basis |
|
300,548 |
|
|
|
407,822 |
|
|
|
708,370 |
|
|
|
231,232 |
|
|
|
340,756 |
|
|
|
571,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
purchased loans held for sale, on an annualized basis. The
total return on purchased loans does not include the effect of
purchased loan charge-offs or recoveries during the period. Total
return on purchased loans is considered a non-GAAP financial
measure.
2. Deposits increased by $60.6 million, or 6.3%, from June
30, 2018, attributable primarily to an increase in time deposits of
$87.9 million, or 25.0%, partially offset by decreases in money
market accounts of $22.5 million, or 5.3%, and demand deposits of
$4.8 million, or 6.6%.
3. Shareholders’ equity increased by $5.0 million, or
3.6%, from June 30, 2018, primarily due to earnings of $4.5
million. Additionally, there was stock-based compensation of $299
thousand and a decrease in accumulated other comprehensive loss of
$529 thousand, which were partially offset by dividends paid on
common stock of $89 thousand and a $180 thousand reduction in
retained earnings related to the adoption of ASU 2016-01, Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities, which
requires companies to record changes in the fair value of equity
securities as net income through the income statement as opposed to
other comprehensive income. The initial adoption of this ASU
requires the unrealized gains and losses on equity securities, net
of tax, at the beginning of the year to be reflected as a change to
retained earnings.
Net income decreased by $52 thousand to $4.5 million for the
quarter ended September 30, 2018, compared to net income of $4.6
million for the quarter ended September 30, 2017.
1. Net interest and dividend income before provision for
loan losses increased by $1.0 million for the quarter ended
September 30, 2018, compared to the quarter ended September 30,
2017. The increase was primarily due to higher average balances in
the loan portfolio. These increases were partially offset by lower
transactional income, 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 September
30, |
|
2018 |
|
2017 |
|
Average |
|
Interest |
|
|
|
Average |
|
Interest |
|
|
|
Balance (1) |
|
Income |
|
Yield |
|
Balance (1) |
|
Income |
|
Yield |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Community Banking |
$ |
120,340 |
|
$ |
1,522 |
|
5.02 |
% |
|
$ |
150,178 |
|
$ |
1,746 |
|
4.61 |
% |
SBA |
|
71,165 |
|
|
1,285 |
|
7.16 |
% |
|
|
53,527 |
|
|
941 |
|
6.97 |
% |
LASG: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
398,333 |
|
|
7,464 |
|
7.43 |
% |
|
|
328,775 |
|
|
5,265 |
|
6.35 |
% |
Purchased |
|
304,107 |
|
|
7,254 |
|
9.46 |
% |
|
|
240,136 |
|
|
7,431 |
|
12.28 |
% |
Total LASG |
|
702,440 |
|
|
14,718 |
|
8.31 |
% |
|
|
568,911 |
|
|
12,696 |
|
8.85 |
% |
Total |
$ |
893,945 |
|
$ |
17,525 |
|
7.78 |
% |
|
$ |
772,616 |
|
$ |
15,383 |
|
7.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes loans held for
sale. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of total income on purchased loans are set forth
in the table below entitled “Total Return on Purchased Loans.”
When compared to the three months ended September 30, 2017,
transactional income for the three months ended September 30, 2018
decreased by $1.3 million. The total return on purchased
loans for the three months ended September 30, 2018 was 9.46%. The
decrease over the prior comparable period was primarily due to
higher accelerated accretion and loan fees in the three months
ended September 30, 2017. The following table details the total
return on purchased loans:
|
Total Return on Purchased
Loans |
|
Three Months Ended September
30, |
|
2018 |
|
2017 |
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Regularly scheduled interest and accretion |
$ |
5,761 |
|
7.51 |
% |
|
$ |
4,613 |
|
7.62 |
% |
Transactional income: |
|
|
|
|
|
|
|
|
|
Gain on loan sales |
|
- |
|
0.00 |
% |
|
|
- |
|
0.00 |
% |
Gain on sale of real estate owned |
|
- |
|
0.00 |
% |
|
|
- |
|
0.00 |
% |
Other noninterest income (expense) |
|
- |
|
0.00 |
% |
|
|
- |
|
0.00 |
% |
Accelerated accretion and loan fees |
|
1,493 |
|
1.95 |
% |
|
|
2,818 |
|
4.66 |
% |
Total transactional income |
|
1,493 |
|
1.95 |
% |
|
|
2,818 |
|
4.66 |
% |
Total |
$ |
7,254 |
|
9.46 |
% |
|
$ |
7,431 |
|
12.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(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 purchased 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 $404 thousand for the
quarter ended September 30, 2018, compared to the quarter ended
September 30, 2017, principally due to the following:
- A decrease in gain on sale of SBA loans of $168 thousand, due
to lower pricing in the SBA guaranty market in the quarter;
and
- A decrease in gain on sale of residential loans of $117
thousand, due to lower volume of residential loans sold in the
quarter.
3. Noninterest expense increased by $641 thousand for the
quarter ended September 30, 2018, compared to the quarter ended
September 30, 2017, primarily due to the following:
- An increase in salaries and employee benefits expense of $255
thousand, primarily due to increases in incentive compensation,
stock-based compensation expense, and health insurance costs;
- An increase in other noninterest expense of $167 thousand,
primarily due to the quarterly valuation of SBA servicing
rights;
- An increase in professional fees of $92 thousand, primarily due
to increased legal and other consulting costs; and
- An increase in loan expense of $74 thousand, largely driven by
direct expenses related to a repossessed asset.
4. Income tax expense decreased by $123 thousand for the
quarter ended September 30, 2018, compared to the quarter ended
September 30, 2017, primarily due to the following:
- A decrease in income before income tax expense of $175
thousand, which resulted in a $49 thousand decrease in income tax
expense; and
- 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 $691 thousand decrease in federal income tax
expense; partially offset by
- A decrease in the income tax benefit recognized of $637
thousand arising from the treatment of 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 vested awards or exercised options are
treated as a discrete item in the reporting period in which they
occur.
As of September 30, 2018, nonperforming assets totaled $13.1
million, or 1.08% of total assets, as compared to $14.2 million, or
1.23% of total assets, as of June 30, 2018.
As of September 30, 2018, past due loans totaled $9.6 million,
or 1.09% of total loans, as compared to past due loans totaled $7.7
million, or 0.89% of total loans as of June 30, 2018.
As of September 30, 2018, the Company’s Tier 1 leverage capital
ratio was 12.8%, compared to 13.1% at June 30, 2018, and the Total
capital ratio was 19.8%, compared to 19.3% at June 30, 2018.
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 first quarter earnings and
business outlook at 10:00 a.m. Eastern Time on Tuesday, October
30th. Investors can access the call by dialing
877.878.2762 and entering the following passcode: 9408907. 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 market via ten
branches. Our Loan Acquisition and Servicing Group 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 on purchased loans, 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.
NBN-F
|
NORTHEAST BANCORP AND SUBSIDIARY |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(Dollars in
thousands, except share and per share data) |
|
September 30, 2018 |
|
June 30, 2018 |
Assets |
|
|
|
|
|
Cash and due from
banks |
$ |
2,668 |
|
|
$ |
3,889 |
|
Short-term
investments |
|
203,049 |
|
|
|
153,513 |
|
Total
cash and cash equivalents |
|
205,717 |
|
|
|
157,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
securities, at fair value |
|
85,777 |
|
|
|
87,687 |
|
|
|
|
|
|
|
Residential real estate
loans held for sale |
|
1,940 |
|
|
|
3,405 |
|
SBA loans held for
sale |
|
1,350 |
|
|
|
3,750 |
|
Total
loans held for sale |
|
3,290 |
|
|
|
7,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
|
Commercial real estate |
|
599,624 |
|
|
|
579,450 |
|
Commercial and industrial |
|
191,286 |
|
|
|
188,852 |
|
Residential real estate |
|
93,308 |
|
|
|
100,256 |
|
Consumer |
|
2,978 |
|
|
|
3,244 |
|
Total
loans |
|
887,196 |
|
|
|
871,802 |
|
Less:
Allowance for loan losses |
|
5,288 |
|
|
|
4,807 |
|
Loans,
net |
|
881,908 |
|
|
|
866,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
6,314 |
|
|
|
6,591 |
|
Real estate owned and
other repossessed collateral, net |
|
1,549 |
|
|
|
2,233 |
|
Federal Home Loan Bank
stock, at cost |
|
1,652 |
|
|
|
1,652 |
|
Intangible assets,
net |
|
758 |
|
|
|
867 |
|
Loan servicing rights,
net |
|
3,010 |
|
|
|
2,970 |
|
Bank-owned life
insurance |
|
16,729 |
|
|
|
16,620 |
|
Other assets |
|
7,013 |
|
|
|
7,564 |
|
Total
assets |
$ |
1,213,717 |
|
|
$ |
1,157,736 |
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
Deposits |
|
|
|
|
|
Demand |
$ |
67,500 |
|
|
$ |
72,272 |
|
Savings
and interest checking |
|
109,564 |
|
|
|
109,637 |
|
Money
market |
|
398,423 |
|
|
|
420,886 |
|
Time |
|
440,020 |
|
|
|
352,145 |
|
Total
deposits |
|
1,015,507 |
|
|
|
954,940 |
|
|
|
|
|
|
|
Federal Home Loan Bank
advances |
|
15,000 |
|
|
|
15,000 |
|
Subordinated debt |
|
24,043 |
|
|
|
23,958 |
|
Capital lease
obligation |
|
536 |
|
|
|
605 |
|
Other liabilities |
|
15,240 |
|
|
|
24,803 |
|
Total
liabilities |
|
1,070,326 |
|
|
|
1,019,306 |
|
|
|
|
|
|
|
Commitments and
contingencies |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
|
Preferred stock, $1.00
par value, 1,000,000 shares authorized; no shares |
|
|
|
|
issued
and outstanding at September 30, 2018 and June 30, 2018 |
|
- |
|
|
|
- |
|
Voting common stock,
$1.00 par value, 25,000,000 shares authorized; |
|
|
|
|
|
8,226,648
and 8,056,527 shares issued and outstanding at |
|
|
|
|
|
September
30, 2018 and June 30, 2018, respectively |
|
8,226 |
|
|
|
8,057 |
|
Non-voting common
stock, $1.00 par value, 3,000,000 shares authorized; |
|
|
|
|
|
820,742 and 882,314 shares issued and outstanding at September
30, 2018 and June 30, 2018, respectively |
821 |
|
|
882 |
|
Additional paid-in
capital |
|
77,075 |
|
|
|
77,016 |
|
Retained earnings |
|
58,501 |
|
|
|
54,236 |
|
Accumulated other
comprehensive loss |
|
(1,232 |
) |
|
|
(1,761 |
) |
Total
shareholders' equity |
|
143,391 |
|
|
|
138,430 |
|
Total
liabilities and shareholders' equity |
$ |
1,213,717 |
|
|
$ |
1,157,736 |
|
|
|
|
|
|
|
|
|
|
NORTHEAST BANCORP AND SUBSIDIARY |
CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
(Dollars in
thousands, except share and per share data) |
|
Three Months Ended September 30, |
|
2018 |
|
2017 |
Interest and dividend
income: |
|
|
|
|
|
Interest and fees on
loans |
$ |
17,525 |
|
|
$ |
15,383 |
Interest
on available-for-sale securities |
|
362 |
|
|
|
266 |
Other
interest and dividend income |
|
880 |
|
|
|
529 |
Total
interest and dividend income |
|
18,767 |
|
|
|
16,178 |
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
Deposits |
|
3,682 |
|
|
|
2,176 |
Federal
Home Loan Bank advances |
|
118 |
|
|
|
172 |
Subordinated debt |
|
601 |
|
|
|
508 |
Obligation under capital lease agreements |
|
7 |
|
|
|
11 |
Total
interest expense |
|
4,408 |
|
|
|
2,867 |
Net interest and
dividend income before provision for loan losses |
|
14,359 |
|
|
|
13,311 |
Provision for loan
losses |
|
532 |
|
|
|
354 |
Net interest and
dividend income after provision for loan losses |
|
13,827 |
|
|
|
12,957 |
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
Fees for
other services to customers |
|
492 |
|
|
|
526 |
Gain on
sales of SBA loans |
|
851 |
|
|
|
1,019 |
Gain on
sales of residential loans held for sale |
|
174 |
|
|
|
291 |
Net
unrealized loss on equity securities |
|
(40 |
) |
|
|
- |
Loss on
real estate owned, other repossessed collateral and premises and
equipment, net |
|
(40 |
) |
|
|
- |
Bank-owned life insurance income |
|
110 |
|
|
|
112 |
Other
noninterest income |
|
7 |
|
|
|
10 |
Total
noninterest income |
|
1,554 |
|
|
|
1,958 |
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
Salaries
and employee benefits |
|
5,509 |
|
|
|
5,254 |
Occupancy
and equipment expense |
|
1,127 |
|
|
|
1,109 |
Professional fees |
|
534 |
|
|
|
442 |
Data
processing fees |
|
601 |
|
|
|
604 |
Marketing
expense |
|
124 |
|
|
|
87 |
Loan
acquisition and collection expense |
|
439 |
|
|
|
365 |
FDIC
insurance premiums |
|
81 |
|
|
|
80 |
Intangible asset amortization |
|
109 |
|
|
|
109 |
Other
noninterest expense |
|
831 |
|
|
|
664 |
Total
noninterest expense |
|
9,355 |
|
|
|
8,714 |
Income before income
tax expense |
|
6,026 |
|
|
|
6,201 |
Income tax expense |
|
1,492 |
|
|
|
1,615 |
Net income |
$ |
4,534 |
|
|
$ |
4,586 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding: |
|
|
|
|
|
Basic |
|
8,995,925 |
|
|
|
8,841,511 |
Diluted |
|
9,183,729 |
|
|
|
9,089,936 |
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
Basic |
$ |
0.50 |
|
|
$ |
0.52 |
Diluted |
|
0.49 |
|
|
|
0.50 |
|
|
|
|
|
|
|
Cash dividends declared
per common share |
$ |
0.01 |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
NORTHEAST BANCORP AND
SUBSIDIARY |
CONSOLIDATED AVERAGE BALANCE SHEETS AND
ANNUALIZED YIELDS |
(Unaudited) |
(Dollars in thousands) |
|
Three Months Ended September
30, |
|
2018 |
|
2017 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
87,873 |
|
$ |
362 |
|
1.63 |
% |
|
$ |
95,827 |
|
$ |
266 |
|
1.10 |
% |
Loans (1) (2) (3) |
|
893,945 |
|
|
17,525 |
|
7.78 |
% |
|
|
772,616 |
|
|
15,393 |
|
7.90 |
% |
Federal Home Loan Bank stock |
|
1,652 |
|
|
24 |
|
5.76 |
% |
|
|
1,938 |
|
|
20 |
|
4.09 |
% |
Short-term investments (4) |
|
172,641 |
|
|
856 |
|
1.97 |
% |
|
|
160,354 |
|
|
509 |
|
1.26 |
% |
Total interest-earning assets |
|
1,156,111 |
|
|
18,767 |
|
6.44 |
% |
|
|
1,030,735 |
|
|
16,188 |
|
6.23 |
% |
Cash and due from banks |
|
2,571 |
|
|
|
|
|
|
|
3,134 |
|
|
|
|
|
Other non-interest earning assets |
|
31,234 |
|
|
|
|
|
|
|
30,887 |
|
|
|
|
|
Total assets |
$ |
1,189,916 |
|
|
|
|
|
|
$ |
1,064,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
69,705 |
|
$ |
55 |
|
0.31 |
% |
|
$ |
69,577 |
|
$ |
51 |
|
0.29 |
% |
Money market accounts |
|
406,104 |
|
|
1,548 |
|
1.51 |
% |
|
|
387,632 |
|
|
1,097 |
|
1.12 |
% |
Savings accounts |
|
36,176 |
|
|
14 |
|
0.15 |
% |
|
|
37,033 |
|
|
13 |
|
0.14 |
% |
Time deposits |
|
406,151 |
|
|
2,065 |
|
2.02 |
% |
|
|
312,485 |
|
|
1,015 |
|
1.29 |
% |
Total interest-bearing deposits |
|
918,136 |
|
|
3,682 |
|
1.59 |
% |
|
|
806,727 |
|
|
2,176 |
|
1.07 |
% |
Federal Home Loan Bank advances |
|
15,000 |
|
|
118 |
|
3.12 |
% |
|
|
20,007 |
|
|
172 |
|
3.41 |
% |
Subordinated debt |
|
23,998 |
|
|
601 |
|
9.94 |
% |
|
|
23,661 |
|
|
508 |
|
8.52 |
% |
Capital lease obligations |
|
560 |
|
|
7 |
|
4.96 |
% |
|
|
830 |
|
|
11 |
|
5.26 |
% |
Total interest-bearing liabilities |
|
957,694 |
|
|
4,408 |
|
1.83 |
% |
|
|
851,225 |
|
|
2,867 |
|
1.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and escrow accounts |
|
82,005 |
|
|
|
|
|
|
|
80,565 |
|
|
|
|
|
Other liabilities |
|
9,740 |
|
|
|
|
|
|
|
8,464 |
|
|
|
|
|
Total liabilities |
|
1,049,439 |
|
|
|
|
|
|
|
940,254 |
|
|
|
|
|
Shareholders' equity |
|
140,477 |
|
|
|
|
|
|
|
124,502 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
1,189,916 |
|
|
|
|
|
|
$ |
1,064,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (5) |
|
|
|
$ |
14,359 |
|
|
|
|
|
|
$ |
13,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
4.61 |
% |
|
|
|
|
|
|
|
4.89 |
% |
Net interest margin (6) |
|
|
|
|
|
|
4.93 |
% |
|
|
|
|
|
|
|
5.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $0 and $10 thousand for the
three months ended September 30, 2018 and 2017, 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: |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
Net interest income |
$ |
14,359 |
|
|
$ |
14,408 |
|
|
$ |
13,134 |
|
|
$ |
12,457 |
|
|
$ |
13,311 |
|
Provision for loan
losses |
|
532 |
|
|
|
254 |
|
|
|
364 |
|
|
|
437 |
|
|
|
354 |
|
Noninterest income |
|
1,554 |
|
|
|
1,959 |
|
|
|
1,882 |
|
|
|
1,228 |
|
|
|
1,958 |
|
Noninterest
expense |
|
9,355 |
|
|
|
9,478 |
|
|
|
8,975 |
|
|
|
8,563 |
|
|
|
8,714 |
|
Net income |
|
4,534 |
|
|
|
4,344 |
|
|
|
3,932 |
|
|
|
3,304 |
|
|
|
4,586 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
8,995,925 |
|
|
|
8,934,038 |
|
|
|
8,927,544 |
|
|
|
8,924,495 |
|
|
|
8,841,511 |
|
Diluted |
|
9,183,729 |
|
|
|
9,116,157 |
|
|
|
9,143,177 |
|
|
|
9,168,084 |
|
|
|
9,089,936 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.50 |
|
|
$ |
0.49 |
|
|
$ |
0.44 |
|
|
$ |
0.37 |
|
|
$ |
0.52 |
|
Diluted |
|
0.49 |
|
|
|
0.48 |
|
|
|
0.43 |
|
|
|
0.36 |
|
|
|
0.50 |
|
Dividends per common
share |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
1.51 |
% |
|
|
1.55 |
% |
|
|
1.43 |
% |
|
|
1.26 |
% |
|
|
1.71 |
% |
Return on average
equity |
|
12.81 |
% |
|
|
12.97 |
% |
|
|
12.15 |
% |
|
|
10.20 |
% |
|
|
14.61 |
% |
Net interest rate
spread (1) |
|
4.61 |
% |
|
|
5.02 |
% |
|
|
4.69 |
% |
|
|
4.68 |
% |
|
|
4.89 |
% |
Net interest margin
(2) |
|
4.93 |
% |
|
|
5.28 |
% |
|
|
4.94 |
% |
|
|
4.93 |
% |
|
|
5.13 |
% |
Efficiency ratio
(non-GAAP) (3) |
|
58.79 |
% |
|
|
57.91 |
% |
|
|
59.77 |
% |
|
|
62.57 |
% |
|
|
57.07 |
% |
Noninterest expense to
average total assets |
|
3.12 |
% |
|
|
3.37 |
% |
|
|
3.27 |
% |
|
|
3.27 |
% |
|
|
3.25 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
120.72 |
% |
|
|
120.52 |
% |
|
|
120.27 |
% |
|
|
122.21 |
% |
|
|
121.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
September 30, 2017 |
Nonperforming
loans: |
|
|
|
|
|
|
|
|
|
Originated
portfolio: |
|
|
|
|
|
|
|
|
|
Residential real estate |
$ |
2,633 |
|
|
$ |
2,914 |
|
|
$ |
3,116 |
|
|
$ |
3,783 |
|
|
$ |
3,667 |
|
Commercial real estate |
|
1,703 |
|
|
|
1,499 |
|
|
|
1,408 |
|
|
|
2,537 |
|
|
|
2,409 |
|
Home
equity |
|
151 |
|
|
|
298 |
|
|
|
255 |
|
|
|
107 |
|
|
|
58 |
|
Commercial and industrial |
|
1,454 |
|
|
|
1,368 |
|
|
|
636 |
|
|
|
2,555 |
|
|
|
2,629 |
|
Consumer |
|
185 |
|
|
|
134 |
|
|
|
136 |
|
|
|
147 |
|
|
|
131 |
|
Total originated
portfolio |
|
6,126 |
|
|
|
6,213 |
|
|
|
5,551 |
|
|
|
9,129 |
|
|
|
8,894 |
|
Total purchased
portfolio |
|
5,375 |
|
|
|
5,745 |
|
|
|
8,063 |
|
|
|
8,962 |
|
|
|
7,758 |
|
Total nonperforming
loans |
|
11,501 |
|
|
|
11,958 |
|
|
|
13,614 |
|
|
|
18,091 |
|
|
|
16,652 |
|
Real estate owned and
other repossessed collateral, net |
|
1,549 |
|
|
|
2,233 |
|
|
|
947 |
|
|
|
910 |
|
|
|
2,040 |
|
Total nonperforming
assets |
$ |
13,050 |
|
|
$ |
14,191 |
|
|
$ |
14,561 |
|
|
$ |
19,001 |
|
|
$ |
18,692 |
|
|
|
|
|
|
|
|
|
|
|
Past due loans to total
loans |
|
1.09 |
% |
|
|
0.89 |
% |
|
|
1.37 |
% |
|
|
3.87 |
% |
|
|
1.60 |
% |
Nonperforming loans to
total loans |
|
1.30 |
% |
|
|
1.37 |
% |
|
|
1.67 |
% |
|
|
2.34 |
% |
|
|
2.19 |
% |
Nonperforming assets to
total assets |
|
1.08 |
% |
|
|
1.23 |
% |
|
|
1.25 |
% |
|
|
1.84 |
% |
|
|
1.78 |
% |
Allowance for loan
losses to total loans |
|
0.60 |
% |
|
|
0.55 |
% |
|
|
0.57 |
% |
|
|
0.56 |
% |
|
|
0.53 |
% |
Allowance for loan
losses to nonperforming loans |
|
45.98 |
% |
|
|
40.20 |
% |
|
|
34.46 |
% |
|
|
24.07 |
% |
|
|
24.23 |
% |
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans to total capital (4) |
|
230.48 |
% |
|
|
200.74 |
% |
|
|
186.07 |
% |
|
|
187.92 |
% |
|
|
166.15 |
% |
Net loans to core
deposits (5) |
|
87.17 |
% |
|
|
91.54 |
% |
|
|
83.65 |
% |
|
|
91.46 |
% |
|
|
88.68 |
% |
Purchased loans to
total loans, including held for sale |
|
33.75 |
% |
|
|
33.10 |
% |
|
|
31.02 |
% |
|
|
31.28 |
% |
|
|
30.11 |
% |
Equity to total
assets |
|
11.81 |
% |
|
|
11.96 |
% |
|
|
11.47 |
% |
|
|
12.57 |
% |
|
|
12.07 |
% |
Common equity tier 1
capital ratio |
|
16.50 |
% |
|
|
16.02 |
% |
|
|
16.48 |
% |
|
|
16.74 |
% |
|
|
16.50 |
% |
Total capital
ratio |
|
19.81 |
% |
|
|
19.28 |
% |
|
|
19.92 |
% |
|
|
20.30 |
% |
|
|
20.04 |
% |
Tier 1 leverage capital
ratio |
|
12.83 |
% |
|
|
13.12 |
% |
|
|
12.88 |
% |
|
|
13.41 |
% |
|
|
12.77 |
% |
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
$ |
143,391 |
|
|
$ |
138,430 |
|
|
$ |
133,787 |
|
|
$ |
130,003 |
|
|
$ |
126,712 |
|
Less: Preferred
stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common shareholders'
equity |
|
143,391 |
|
|
|
138,430 |
|
|
|
133,787 |
|
|
|
130,003 |
|
|
|
126,712 |
|
Less: Intangible assets
(6) |
|
(3,768 |
) |
|
|
(3,837 |
) |
|
|
(3,973 |
) |
|
|
(4,087 |
) |
|
|
(4,146 |
) |
Tangible common
shareholders' equity (non-GAAP) |
$ |
139,623 |
|
|
$ |
134,593 |
|
|
$ |
129,814 |
|
|
$ |
125,916 |
|
|
$ |
122,566 |
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
9,047,390 |
|
|
|
8,938,841 |
|
|
|
8,925,399 |
|
|
|
8,939,273 |
|
|
|
8,890,353 |
|
Book value per common
share |
$ |
15.85 |
|
|
$ |
15.49 |
|
|
$ |
14.99 |
|
|
$ |
14.54 |
|
|
$ |
14.25 |
|
Tangible book value per
share (non-GAAP) (7) |
|
15.43 |
|
|
|
15.06 |
|
|
|
14.54 |
|
|
|
14.09 |
|
|
|
13.79 |
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
For More Information:Jean-Pierre Lapointe,
Chief Financial OfficerNortheast Bank, 500 Canal Street, Lewiston,
ME 04240 207.786.3245 ext. 3220www.northeastbank.com
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