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 $5.1
million, or $0.56 per diluted common share, for the quarter ended
December 31, 2018, an increase of $1.8 million, or 55.1%, compared
to net income of $3.3 million, or $0.36 per diluted common share,
for the quarter ended December 31, 2017. Net income for the six
months ended December 31, 2018 was $9.7 million, or $1.05 per
diluted common share, compared to $7.9 million, or $0.86 per
diluted common share, for the six months ended December 31, 2017.
On January 28, 2019, the Board of Directors declared a cash
dividend of $0.01 per share, payable on February 26, 2019, to
shareholders of record as of February 12, 2019.
“We continued fiscal 2019 with another strong quarter,” said
Richard Wayne, President and Chief Executive Officer. “For the
quarter, we earned $0.56 per diluted common share through solid
loan volume, purchased loan transactional income, and gain on the
sale of SBA loans. Our Loan Acquisition and Servicing Group
produced $113.5 million of loans, including originations of $64.1
million and purchases with a recorded investment of $49.4 million
during the quarter. This represents quarterly net growth in the
LASG portfolio of $58.1 million, or 8.2%. This quarterly activity
helped drive our return on average equity to 13.9%, our return on
average assets to 1.7%, and our efficiency ratio to 57.6%.”
As of December 31, 2018, total assets were $1.2 billion, an
increase of $36.4 million, or 3.1%, from total assets of $1.2
billion as of June 30, 2018. The principal components of the
changes in the balance sheet follow:
1. The following table highlights
the changes in the loan portfolio for the three and six months
ended December 31, 2018:
|
Loan Portfolio Changes |
|
Three Months Ended December 31, 2018 |
|
December 31, 2018 Balance |
|
September 30, 2018 Balance |
|
|
Change ($) |
|
Change (%) |
|
|
|
(Dollars in thousands) |
LASG Purchased |
$ |
330,643 |
|
$ |
300,548 |
|
$ |
30,095 |
|
|
10.01% |
LASG Originated |
|
435,817 |
|
|
407,822 |
|
|
27,995 |
|
|
6.86% |
SBA |
|
67,282 |
|
|
67,212 |
|
|
70 |
|
|
0.10% |
Community Banking |
|
104,544 |
|
|
111,614 |
|
|
(7,070) |
|
|
(6.33%) |
Total |
$ |
938,286 |
|
$ |
887,196 |
|
$ |
51,090 |
|
|
5.76% |
|
|
|
|
|
Six Months Ended December 31, 2018 |
|
December 31, 2018 Balance |
|
June 30, 2018 Balance |
|
Change ($) |
|
Change (%) |
|
|
|
|
(Dollars in thousands) |
LASG Purchased |
$ |
330,643 |
|
$ |
290,972 |
|
$ |
39,671 |
|
13.63% |
LASG Originated |
|
435,817 |
|
|
397,363 |
|
|
38,454 |
|
9.68% |
SBA |
|
67,282 |
|
|
60,156 |
|
|
7,126 |
|
11.85% |
Community Banking |
|
104,544 |
|
|
123,311 |
|
|
(18,767) |
|
(15.22%) |
Total |
$ |
938,286 |
|
$ |
871,802 |
|
$ |
66,484 |
|
7.63% |
Loans generated by the Bank's Loan Acquisition and Servicing
Group ("LASG") for the quarter ended December 31, 2018 totaled
$113.5 million, which consisted of $49.4 million of purchased
loans, at an average price of 93.7% of unpaid principal balance,
and $64.1 million of originated loans. The Bank's Small Business
Administration ("SBA") Division closed $13.8 million and funded
$13.1 million of new loans during the quarter ended December 31,
2018. In addition, the Company sold $12.8 million of the guaranteed
portion of SBA loans in the secondary market, of which $7.6 million
were originated in the current quarter and $5.2 million were
originated in prior quarters. Residential loan production sold in
the secondary market totaled $7.7 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 (“FRB”) 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, 2018 |
|
|
|
|
(Dollars in millions) |
Total Loans |
|
Purchased loans may not
exceed 40% of total loans |
|
$ |
75.7 |
Regulatory Capital |
|
Non-owner occupied
commercial real estate loans may not exceed 300% of total
capital |
|
|
102.8 |
|
|
|
|
|
|
On January 7, 2019, the Company announced a corporate
reorganization pursuant to which its bank holding company structure
would be eliminated and the Bank would become the top-level company
(the “Reorganization”). If the Reorganization is completed, these
commitments to the FRB will no longer be applicable. The Bank
intends to replace these commitments with standards relating to its
capital levels and asset portfolio composition, which will be
incorporated into its policies and procedures, and compliance with
Federal Deposit Insurance Corporation (“FDIC”) policy on commercial
real estate concentration risk. These newly established standards
are designed to help ensure the Bank will continue to operate in a
safe and sound manner, but may permit more growth in the Bank’s
loan portfolio as compared to operating under the existing
commitments.
As a result of the Reorganization, the Bank intends to
incorporate the following standards into its policies and
procedures:
- Maintain a Tier 1 leverage ratio of at least 10%, which is
unchanged from the requirement in the commitments to the FRB;
- Maintain a Total capital ratio of at least 13.5% (as opposed to
15%);
- Limit purchased loans to 60% of total loans (as opposed to
40%); and
- Maintain a ratio of the Bank’s loans to core deposits of not
more than 125% (as opposed to 100%).
A requirement to hold non-owner occupied commercial real estate
loans to within 300% of total capital will not formally be
incorporated into the Bank’s risk management policies. The Bank
nonetheless would continue to be evaluated by the FDIC through the
supervisory process under the 300% “screen” used by the federal
banking agencies to identify institutions that are potentially
exposed to commercial real estate concentration risk.
An overview of the Bank’s LASG portfolio
follows:
|
LASG Portfolio |
|
Three Months Ended December 31, |
|
2018 |
|
2017 |
|
Purchased |
|
Originated |
|
Total LASG |
|
Purchased |
|
Originated |
|
Total LASG |
|
|
|
(Dollars in thousands) |
Loans purchased or
originated during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
principal balance |
$ |
52,672 |
|
|
$ |
64,117 |
|
|
$ |
116,789 |
|
|
$ |
38,205 |
|
|
$ |
44,285 |
|
|
$ |
82,490 |
|
Net
investment basis |
|
49,334 |
|
|
|
64,117 |
|
|
|
113,451 |
|
|
|
34,802 |
|
|
|
44,285 |
|
|
|
79,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield |
|
10.30 |
% |
|
|
7.61 |
% |
|
|
8.75 |
% |
|
|
11.00 |
% |
|
|
6.49 |
% |
|
|
8.31 |
% |
Total
Return on Purchased Loans (1) |
|
10.30 |
% |
|
|
7.61 |
% |
|
|
8.75 |
% |
|
|
11.00 |
% |
|
|
6.49 |
% |
|
|
8.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31, |
|
2018 |
|
2017 |
|
Purchased |
|
Originated |
|
Total LASG |
|
Purchased |
|
Originated |
|
Total LASG |
|
|
|
(Dollars in thousands) |
Loans purchased or
originated during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
principal balance |
$ |
89,748 |
|
|
$ |
135,253 |
|
|
$ |
225,001 |
|
|
$ |
42,523 |
|
|
$ |
85,064 |
|
|
$ |
127,587 |
|
Net
investment basis |
|
84,137 |
|
|
|
135,253 |
|
|
|
219,390 |
|
|
|
38,453 |
|
|
|
85,064 |
|
|
|
123,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield |
|
9.88 |
% |
|
|
7.53 |
% |
|
|
8.53 |
% |
|
|
11.65 |
% |
|
|
6.42 |
% |
|
|
8.58 |
% |
Total
Return on Purchased Loans (1) |
|
9.88 |
% |
|
|
7.53 |
% |
|
|
8.53 |
% |
|
|
11.65 |
% |
|
|
6.42 |
% |
|
|
8.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans as of
period end: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid
principal balance |
$ |
368,345 |
|
|
$ |
435,817 |
|
|
$ |
804,162 |
|
|
$ |
276,440 |
|
|
$ |
346,874 |
|
|
$ |
623,314 |
|
Net
investment basis |
|
330,643 |
|
|
|
435,817 |
|
|
|
766,460 |
|
|
|
244,177 |
|
|
|
346,874 |
|
|
|
591,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. See
reconciliation in below table entitled “Total Return on Purchased
Loans.” |
|
2. Deposits increased by $30.7 million, or 3.2%, from June 30,
2018, attributable primarily to an increase in time deposits of
$112.2 million, or 31.9%, as a result of campaigns in the current
period, partially offset by decreases in money market accounts of
$75.7 million, or 18.0%, and demand deposits of $3.9 million, or
5.5%.
3. Shareholders’ equity increased by $10.1 million, or 7.3%,
from June 30, 2018, primarily due to earnings of $9.7 million.
Net income increased by $1.8 million to $5.1 million for the
quarter ended December 31, 2018, compared to net income of $3.3
million for the quarter ended December 31, 2017.
1. Net interest and dividend income before provision for loan
losses increased by $3.2 million to $15.6 million for the quarter
ended December 31, 2018, compared to $12.4 million the quarter
ended December 31, 2017. The increase was primarily due to higher
average balances in the loan portfolio. These increases were
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, |
|
2018 |
|
2017 |
|
Average |
|
Interest |
|
|
|
Average |
|
Interest |
|
|
|
Balance (1) |
|
Income |
|
Yield |
|
Balance (1) |
|
Income |
|
Yield |
|
|
|
(Dollars in thousands) |
Community
Banking |
$ |
108,344 |
|
$ |
1,448 |
|
5.30% |
|
|
$ |
141,486 |
|
$ |
1,753 |
|
4.92% |
|
SBA |
|
73,467 |
|
|
1,440 |
|
7.78% |
|
|
|
49,457 |
|
|
814 |
|
6.53% |
|
LASG: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
420,816 |
|
|
8,077 |
|
7.61% |
|
|
|
340,240 |
|
|
5,565 |
|
6.49% |
|
Purchased |
|
307,094 |
|
|
7,969 |
|
10.30% |
|
|
|
229,732 |
|
|
6,369 |
|
11.00% |
|
Total LASG |
|
727,910 |
|
|
16,046 |
|
8.75% |
|
|
|
569,972 |
|
|
11,934 |
|
8.31% |
|
Total |
$ |
909,721 |
|
$ |
18,934 |
|
8.26% |
|
|
$ |
760,915 |
|
$ |
14,501 |
|
7.56% |
|
|
|
|
|
|
Six Months Ended December 31, |
|
2018 |
|
2017 |
|
Average |
|
Interest |
|
|
|
Average |
|
Interest |
|
|
|
Balance (1) |
|
Income |
|
Yield |
|
Balance (1) |
|
Income |
|
Yield |
|
|
|
(Dollars in thousands) |
Community
Banking |
$ |
114,342 |
|
$ |
2,970 |
|
5.15% |
|
|
$ |
145,832 |
|
$ |
3,496 |
|
4.76% |
|
SBA |
|
72,316 |
|
|
2,726 |
|
7.48% |
|
|
|
51,499 |
|
|
1,756 |
|
6.76% |
|
LASG: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
409,575 |
|
|
15,541 |
|
7.53% |
|
|
|
334,507 |
|
|
10,831 |
|
6.42% |
|
Purchased |
|
305,600 |
|
|
15,223 |
|
9.88% |
|
|
|
234,928 |
|
|
13,800 |
|
11.65% |
|
Total LASG |
|
715,175 |
|
|
30,764 |
|
8.53% |
|
|
|
569,435 |
|
|
24,631 |
|
8.58% |
|
Total |
$ |
901,833 |
|
$ |
36,460 |
|
8.02% |
|
|
$ |
766,766 |
|
$ |
29,883 |
|
7.73% |
|
|
|
(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 December 31, 2017,
transactional income for the three months ended December 31, 2018
increased by $206 thousand. The total return on purchased loans for
the three months ended December 31, 2018 was 10.3%. When compared
to the six months ended December 31, 2017, transactional income for
the six months ended December 31, 2018 decreased by $1.1 million.
This decrease over the prior comparable period was primarily due to
lower accelerated accretion and loan fees in the six months ended
December 31, 2018. The following table details the total return on
purchased loans:
|
Total Return on Purchased Loans |
|
Three Months Ended December 31, |
|
2018 |
|
2017 |
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
|
|
(Dollars in thousands) |
Regularly scheduled
interest and accretion |
$ |
5,860 |
|
7.57 |
% |
|
$ |
4,466 |
|
7.71 |
% |
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 |
|
2,109 |
|
2.73 |
% |
|
|
1,903 |
|
3.29 |
% |
Total
transactional income |
|
2,109 |
|
2.73 |
% |
|
|
1,903 |
|
3.29 |
% |
Total |
$ |
7,969 |
|
10.30 |
% |
|
$ |
6,369 |
|
11.00 |
% |
|
|
|
|
|
Six Months Ended December 31, |
|
2018 |
|
2017 |
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
|
|
(Dollars in thousands) |
Regularly scheduled
interest and accretion |
$ |
11,621 |
|
7.54 |
% |
|
$ |
9,079 |
|
7.67 |
% |
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 |
|
3,602 |
|
2.34 |
% |
|
|
4,721 |
|
3.98 |
% |
Total
transactional income |
|
3,602 |
|
2.34 |
% |
|
|
4,721 |
|
3.98 |
% |
Total |
$ |
15,223 |
|
9.88 |
% |
|
$ |
13,800 |
|
11.65 |
% |
(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 increased by $317 thousand for the quarter
ended December 31, 2018, compared to the quarter ended December 31,
2017, principally due to the following:
- An increase in gain on sale of SBA loans of $601 thousand, due
to larger guarantee balances sold in the quarter; partially offset
by,
- A decrease in gain on sale of residential loans of $151
thousand, due to lower volume of residential loans sold in the
quarter; and
- A decrease in fees for other services to customers of $135
thousand, due to lower commercial loan servicing fees as a result
of the write-off of servicing assets related to SBA loans that paid
off during the quarter.
3. Noninterest expense increased by $1.3 million for the quarter
ended December 31, 2018 compared to the quarter ended December 31,
2017, primarily due to the following:
- An increase in salaries and employee benefits expense of $526
thousand, primarily due to increases in base salary, stock-based
compensation expense, incentive compensation, and a decrease in
deferred salaries expense;
- An increase in other noninterest expense of $292 thousand,
primarily due to a $141 thousand increase in expense related to the
quarterly valuation of SBA servicing rights, and increases in
travel expense and employee recruitment expense;
- An increase in professional fees of $231 thousand, primarily
due to increased legal expense related to the Reorganization and
other consulting costs; and
- An increase in loan acquisition and collection expense of $217
thousand, largely driven by increased loan expenses and collection
expenses incurred on the increased SBA and purchased loan activity
during the quarter.
4. Income tax expense increased by $678 thousand to $2.1
million, or an effective tax rate of 28.7%, for the quarter ended
December 31, 2018, compared to $1.4 million, or an effective tax
rate of 29.5%, for the quarter ended December 31, 2017. The
increase in expense was primarily due to the increase in earnings.
The decrease in effective tax rate was primarily due to the
following:
- The decrease in the federal corporate income tax rate to 21.0%
for the quarter ended December 31, 2018, as compared to the blended
federal corporate income tax rate of 28.0% for the quarter ended
December 31, 2017; and
- The decrease in income tax expense of $498 thousand as a result
of revaluing the deferred tax asset as a result of the Tax Cuts and
Jobs Act recorded in the quarter ended December 31, 2017; partially
offset by,
- A decrease in the income tax benefit recognized of $275
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 December 31, 2018, nonperforming assets totaled $13.8
million, or 1.16% of total assets, as compared to $14.2 million, or
1.23% of total assets, as of June 30, 2018.
As of December 31, 2018, past due loans totaled $18.3 million,
or 1.95% of total loans, as compared to past due loans totaled $7.7
million, or 0.89% of total loans as of June 30, 2018. The increase
in past due loans is largely attributed to the thirty-one day month
in December, as past due loans totaled $30.0 million, or 3.87% of
total loans as of December 31, 2017.
As of December 31, 2018, the Company’s Tier 1 leverage capital
ratio was 13.2%, compared to 13.1% at June 30, 2018, and the Total
capital ratio was 19.2%, compared to 19.3% at June 30, 2018.
In connection with the Reorganization, the Company intends to
redeem the $16.5 million unpaid principal balance of junior
subordinated debentures issued by the Company in connection with
the issuance of trust preferred securities by its three Delaware
statutory trust subsidiaries, and the Bank will assume the
Company’s obligations under the $15.1 million unpaid principal
balance of 6.75% Fixed-to-Floating Rate Subordinated Notes due July
1, 2026. On a pro forma basis as of December 31, 2018, after giving
effect to these transactions, the Bank’s Tier 1 leverage capital
ratio and Total capital ratio would have been 12.0% and 17.6%,
respectively, and the Bank would be considered “well capitalized”
under all regulatory capital definitions. In addition, the
redemption of the junior subordinated debentures is expected to
result in a reduction in net income of approximately $5.1 million,
after tax, during the quarter in which the redemption occurs, due
to the write-off of the carrying value discount on the debentures
that was recognized in connection with the merger of FHB Formation
LLC with and into the Company in December 2010.
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
29th. Investors can access the call by dialing
877.878.2762 and entering the following passcode: 2083844. 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; the ability of
the Company and the Bank to satisfy the conditions to the
completion of the Reorganization; the ability of the Company and
the Bank to meet expectations regarding the timing, completion and
accounting and tax treatments of the Reorganization; the
possibility that any of the anticipated benefits of the
Reorganization will not be realized or will not be realized as
expected; the failure of the Reorganization to close for any
reason; the possibility that the Reorganization may be more
expensive to complete than anticipated, including as a result of
unexpected factors or events; 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) |
|
December 31, 2018 |
|
June 30, 2018 |
Assets |
|
|
|
|
|
Cash and due from
banks |
$ |
2,416 |
|
|
$ |
3,889 |
|
Short-term
investments |
|
135,200 |
|
|
|
153,513 |
|
Total cash and
cash equivalents |
|
137,616 |
|
|
|
157,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
securities, at fair value |
|
78,132 |
|
|
|
81,068 |
|
Equity securities, at
fair value |
|
6,711 |
|
|
|
6,619 |
|
Total investment
securities |
|
84,843 |
|
|
|
87,687 |
|
|
|
|
|
|
|
Residential real estate
loans held for sale |
|
1,510 |
|
|
|
3,405 |
|
SBA loans held for
sale |
|
289 |
|
|
|
3,750 |
|
Total loans held
for sale |
|
1,799 |
|
|
|
7,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
|
Commercial real
estate |
|
633,439 |
|
|
|
579,450 |
|
Commercial and
industrial |
|
209,493 |
|
|
|
188,852 |
|
Residential real
estate |
|
92,566 |
|
|
|
100,256 |
|
Consumer |
|
2,788 |
|
|
|
3,244 |
|
Total
loans |
|
938,286 |
|
|
|
871,802 |
|
Less: Allowance
for loan losses |
|
5,308 |
|
|
|
4,807 |
|
Loans,
net |
|
932,978 |
|
|
|
866,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
6,112 |
|
|
|
6,591 |
|
Real estate owned and
other repossessed collateral, net |
|
1,463 |
|
|
|
2,233 |
|
Federal Home Loan Bank
stock, at cost |
|
1,652 |
|
|
|
1,652 |
|
Intangible assets,
net |
|
649 |
|
|
|
867 |
|
Loan servicing rights,
net |
|
2,934 |
|
|
|
2,970 |
|
Bank-owned life
insurance |
|
16,839 |
|
|
|
16,620 |
|
Other assets |
|
7,242 |
|
|
|
7,564 |
|
Total
assets |
$ |
1,194,127 |
|
|
$ |
1,157,736 |
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
Deposits |
|
|
|
|
|
Demand |
$ |
68,324 |
|
|
$ |
72,272 |
|
Savings and
interest checking |
|
107,769 |
|
|
|
109,637 |
|
Money
market |
|
345,149 |
|
|
|
420,886 |
|
Time |
|
464,349 |
|
|
|
352,145 |
|
Total
deposits |
|
985,591 |
|
|
|
954,940 |
|
|
|
|
|
|
|
Federal Home Loan Bank
advances |
|
15,000 |
|
|
|
15,000 |
|
Subordinated debt |
|
24,128 |
|
|
|
23,958 |
|
Capital lease
obligation |
|
466 |
|
|
|
605 |
|
Other liabilities |
|
20,451 |
|
|
|
24,803 |
|
Total
liabilities |
|
1,045,636 |
|
|
|
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 December 31, 2018 and June 30, 2018 |
|
- |
|
|
|
- |
|
Voting common stock,
$1.00 par value, 25,000,000 shares authorized; |
|
|
|
|
|
8,236,917
and 8,056,527 shares issued and outstanding at |
|
|
|
|
December
31, 2018 and June 30, 2018, respectively |
|
8,237 |
|
|
|
8,057 |
|
Non-voting common
stock, $1.00 par value, 3,000,000 shares authorized; |
|
|
|
|
|
811,946 and 882,314 shares issued and outstanding at December
31, 2018 and June 30, 2018, respectively |
812 |
|
|
882 |
|
Additional paid-in
capital |
|
77,455 |
|
|
|
77,016 |
|
Retained earnings |
|
63,535 |
|
|
|
54,236 |
|
Accumulated other
comprehensive loss |
|
(1,548 |
) |
|
|
(1,761 |
) |
Total
shareholders' equity |
|
148,491 |
|
|
|
138,430 |
|
Total
liabilities and shareholders' equity |
$ |
1,194,127 |
|
|
$ |
1,157,736 |
|
|
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, |
|
2018 |
|
|
2017 |
|
2018 |
|
|
2017 |
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
Interest and
fees on loans |
$ |
18,934 |
|
|
$ |
14,501 |
|
$ |
36,460 |
|
|
$ |
29,883 |
Interest on
available-for-sale securities |
|
425 |
|
|
|
267 |
|
|
784 |
|
|
|
533 |
Other interest
and dividend income |
|
970 |
|
|
|
492 |
|
|
1,851 |
|
|
|
1,022 |
Total interest and dividend income |
|
20,329 |
|
|
|
15,260 |
|
|
39,095 |
|
|
|
31,438 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
3,982 |
|
|
|
2,129 |
|
|
7,664 |
|
|
|
4,305 |
Federal Home
Loan Bank advances |
|
125 |
|
|
|
148 |
|
|
242 |
|
|
|
319 |
Subordinated
debt |
|
573 |
|
|
|
517 |
|
|
1,174 |
|
|
|
1,025 |
Obligation under
capital lease agreements |
|
6 |
|
|
|
9 |
|
|
14 |
|
|
|
21 |
Total interest expense |
|
4,686 |
|
|
|
2,803 |
|
|
9,094 |
|
|
|
5,670 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
dividend income before provision for loan losses |
|
15,643 |
|
|
|
12,457 |
|
|
30,001 |
|
|
|
25,768 |
Provision for loan
losses |
|
101 |
|
|
|
437 |
|
|
633 |
|
|
|
792 |
Net interest and
dividend income after provision for loan losses |
|
15,542 |
|
|
|
12,020 |
|
|
29,368 |
|
|
|
24,976 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
Fees for other
services to customers |
|
340 |
|
|
|
475 |
|
|
832 |
|
|
|
1,002 |
Gain on sales of
SBA loans |
|
942 |
|
|
|
341 |
|
|
1,793 |
|
|
|
1,361 |
Gain on sales of
residential loans held for sale |
|
104 |
|
|
|
255 |
|
|
279 |
|
|
|
545 |
Gain on sales of
other loans |
|
- |
|
|
|
21 |
|
|
- |
|
|
|
21 |
Net unrealized
gain on equity securities |
|
50 |
|
|
|
- |
|
|
10 |
|
|
|
- |
Gain (loss) on
real estate owned, other repossessed collateral and premises and
equipment, net |
|
(24 |
) |
|
|
11 |
|
|
(64 |
) |
|
|
11 |
Bank-owned life
insurance income |
|
110 |
|
|
|
111 |
|
|
219 |
|
|
|
223 |
Other noninterest
income |
|
23 |
|
|
|
14 |
|
|
29 |
|
|
|
23 |
Total noninterest income |
|
1,545 |
|
|
|
1,228 |
|
|
3,098 |
|
|
|
3,186 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
|
5,699 |
|
|
|
5,173 |
|
|
11,208 |
|
|
|
10,427 |
Occupancy and
equipment expense |
|
957 |
|
|
|
1,150 |
|
|
2,084 |
|
|
|
2,260 |
Professional
fees |
|
656 |
|
|
|
425 |
|
|
1,190 |
|
|
|
867 |
Data processing
fees |
|
830 |
|
|
|
624 |
|
|
1,431 |
|
|
|
1,227 |
Marketing
expense |
|
130 |
|
|
|
70 |
|
|
253 |
|
|
|
157 |
Loan acquisition
and collection expense |
|
585 |
|
|
|
368 |
|
|
1,024 |
|
|
|
733 |
FDIC insurance
premiums |
|
81 |
|
|
|
80 |
|
|
162 |
|
|
|
160 |
Intangible asset
amortization |
|
109 |
|
|
|
109 |
|
|
218 |
|
|
|
218 |
Other noninterest
expense |
|
856 |
|
|
|
564 |
|
|
1,687 |
|
|
|
1,228 |
Total noninterest expense |
|
9,903 |
|
|
|
8,563 |
|
|
19,257 |
|
|
|
17,277 |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense |
|
7,184 |
|
|
|
4,685 |
|
|
13,209 |
|
|
|
10,885 |
Income tax expense |
|
2,059 |
|
|
|
1,381 |
|
|
3,550 |
|
|
|
2,995 |
Net income |
$ |
5,125 |
|
|
$ |
3,304 |
|
$ |
9,659 |
|
|
$ |
7,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
9,048,397 |
|
|
|
8,924,495 |
|
|
9,022,161 |
|
|
|
8,883,003 |
Diluted |
|
9,201,557 |
|
|
|
9,168,084 |
|
|
9,192,643 |
|
|
|
9,129,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.57 |
|
|
$ |
0.37 |
|
$ |
1.07 |
|
|
$ |
0.89 |
Diluted |
|
0.56 |
|
|
|
0.36 |
|
|
1.05 |
|
|
|
0.86 |
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, |
|
2018 |
|
2017 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
85,325 |
|
$ |
425 |
|
1.98% |
|
|
$ |
93,945 |
|
$ |
267 |
|
1.13% |
|
Loans (1)
(2) (3) |
|
909,721 |
|
|
18,934 |
|
8.26% |
|
|
|
760,915 |
|
|
14,501 |
|
7.56% |
|
Federal
Home Loan Bank stock |
|
1,652 |
|
|
24 |
|
5.76% |
|
|
|
1,860 |
|
|
21 |
|
4.48% |
|
Short-term investments (4) |
|
168,768 |
|
|
946 |
|
2.22% |
|
|
|
145,305 |
|
|
471 |
|
1.29% |
|
Total interest-earning
assets |
|
1,165,466 |
|
|
20,329 |
|
6.92% |
|
|
|
1,002,025 |
|
|
15,260 |
|
6.04% |
|
Cash and due from
banks |
|
2,600 |
|
|
|
|
|
|
|
2,731 |
|
|
|
|
|
Other non-interest
earning assets |
|
31,344 |
|
|
|
|
|
|
|
33,164 |
|
|
|
|
|
Total assets |
$ |
1,199,410 |
|
|
|
|
|
|
$ |
1,037,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
accounts |
$ |
74,027 |
|
$ |
69 |
|
0.37% |
|
|
$ |
70,287 |
|
$ |
52 |
|
0.29% |
|
Money
market accounts |
|
373,409 |
|
|
1,461 |
|
1.55% |
|
|
|
367,265 |
|
|
1,030 |
|
1.11% |
|
Savings
accounts |
|
35,004 |
|
|
14 |
|
0.16% |
|
|
|
36,872 |
|
|
12 |
|
0.13% |
|
Time
deposits |
|
443,779 |
|
|
2,438 |
|
2.18% |
|
|
|
303,246 |
|
|
1,035 |
|
1.35% |
|
Total
interest-bearing deposits |
|
926,219 |
|
|
3,982 |
|
1.71% |
|
|
|
777,670 |
|
|
2,129 |
|
1.09% |
|
Federal
Home Loan Bank advances |
|
15,000 |
|
|
125 |
|
3.31% |
|
|
|
17,719 |
|
|
148 |
|
3.31% |
|
Subordinated debt |
|
24,087 |
|
|
573 |
|
9.44% |
|
|
|
23,745 |
|
|
517 |
|
8.64% |
|
Capital
lease obligations |
|
490 |
|
|
6 |
|
4.86% |
|
|
|
764 |
|
|
9 |
|
4.67% |
|
Total interest-bearing
liabilities |
|
965,796 |
|
|
4,686 |
|
1.92% |
|
|
|
819,898 |
|
|
2,803 |
|
1.36% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and
escrow accounts |
|
81,223 |
|
|
|
|
|
|
|
83,855 |
|
|
|
|
|
Other liabilities |
|
6,513 |
|
|
|
|
|
|
|
5,676 |
|
|
|
|
|
Total liabilities |
|
1,053,532 |
|
|
|
|
|
|
|
909,429 |
|
|
|
|
|
Shareholders'
equity |
|
145,878 |
|
|
|
|
|
|
|
128,491 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
1,199,410 |
|
|
|
|
|
|
$ |
1,037,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
15,643 |
|
|
|
|
|
|
$ |
12,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
|
5.00% |
|
|
|
|
|
|
|
|
4.68% |
|
Net interest margin
(5) |
|
|
|
|
|
|
5.33% |
|
|
|
|
|
|
|
|
4.93% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
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, |
|
2018 |
|
2017 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
86,599 |
|
$ |
784 |
|
1.80 |
% |
|
$ |
94,886 |
|
$ |
533 |
|
1.11 |
% |
Loans (1)
(2) (3) |
|
901,833 |
|
|
36,460 |
|
8.02 |
% |
|
|
766,766 |
|
|
29,893 |
|
7.73 |
% |
Federal
Home Loan Bank stock |
|
1,652 |
|
|
49 |
|
5.88 |
% |
|
|
1,899 |
|
|
41 |
|
4.28 |
% |
Short-term investments (4) |
|
170,705 |
|
|
1,802 |
|
2.09 |
% |
|
|
152,830 |
|
|
981 |
|
1.27 |
% |
Total interest-earning
assets |
|
1,160,789 |
|
|
39,095 |
|
6.68 |
% |
|
|
1,016,381 |
|
|
31,448 |
|
6.14 |
% |
Cash and due from
banks |
|
2,585 |
|
|
|
|
|
|
|
2,933 |
|
|
|
|
|
Other non-interest
earning assets |
|
31,289 |
|
|
|
|
|
|
|
32,025 |
|
|
|
|
|
Total assets |
$ |
1,194,663 |
|
|
|
|
|
|
$ |
1,051,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
accounts |
$ |
71,866 |
|
$ |
124 |
|
0.34 |
% |
|
$ |
69,931 |
|
$ |
102 |
|
0.29 |
% |
Money
market accounts |
|
389,757 |
|
|
3,008 |
|
1.53 |
% |
|
|
377,449 |
|
|
2,127 |
|
1.12 |
% |
Savings
accounts |
|
35,590 |
|
|
28 |
|
0.16 |
% |
|
|
36,953 |
|
|
25 |
|
0.13 |
% |
Time
deposits |
|
424,965 |
|
|
4,504 |
|
2.10 |
% |
|
|
307,865 |
|
|
2,051 |
|
1.32 |
% |
Total
interest-bearing deposits |
|
922,178 |
|
|
7,664 |
|
1.65 |
% |
|
|
792,198 |
|
|
4,305 |
|
1.08 |
% |
Federal
Home Loan Bank advances |
|
15,000 |
|
|
242 |
|
3.20 |
% |
|
|
18,863 |
|
|
319 |
|
3.35 |
% |
Subordinated debt |
|
24,042 |
|
|
1,174 |
|
9.69 |
% |
|
|
23,703 |
|
|
1,025 |
|
8.58 |
% |
Capital
lease obligations |
|
525 |
|
|
14 |
|
5.29 |
% |
|
|
797 |
|
|
21 |
|
5.23 |
% |
Total interest-bearing
liabilities |
|
961,745 |
|
|
9,094 |
|
1.88 |
% |
|
|
835,561 |
|
|
5,670 |
|
1.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and
escrow accounts |
|
81,615 |
|
|
|
|
|
|
|
82,210 |
|
|
|
|
|
Other liabilities |
|
8,126 |
|
|
|
|
|
|
|
7,071 |
|
|
|
|
|
Total liabilities |
|
1,051,486 |
|
|
|
|
|
|
|
924,842 |
|
|
|
|
|
Shareholders'
equity |
|
143,177 |
|
|
|
|
|
|
|
126,497 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
1,194,663 |
|
|
|
|
|
|
$ |
1,051,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (5) |
|
|
|
$ |
30,001 |
|
|
|
|
|
|
$ |
25,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
|
4.80 |
% |
|
|
|
|
|
|
|
4.79 |
% |
Net interest margin
(6) |
|
|
|
|
|
|
5.13 |
% |
|
|
|
|
|
|
|
5.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 for the
six months ended December 31, 2017. |
(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, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
Net interest
income |
$ |
15,643 |
|
|
$ |
14,359 |
|
|
$ |
14,408 |
|
|
$ |
13,134 |
|
|
$ |
12,457 |
|
Provision for loan
losses |
|
101 |
|
|
|
532 |
|
|
|
254 |
|
|
|
364 |
|
|
|
437 |
|
Noninterest income |
|
1,545 |
|
|
|
1,554 |
|
|
|
1,959 |
|
|
|
1,882 |
|
|
|
1,228 |
|
Noninterest
expense |
|
9,903 |
|
|
|
9,355 |
|
|
|
9,478 |
|
|
|
8,975 |
|
|
|
8,563 |
|
Net income |
|
5,125 |
|
|
|
4,534 |
|
|
|
4,344 |
|
|
|
3,932 |
|
|
|
3,304 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
9,048,397 |
|
|
|
8,995,925 |
|
|
|
8,934,038 |
|
|
|
8,927,544 |
|
|
|
8,924,495 |
|
Diluted |
|
9,201,557 |
|
|
|
9,183,729 |
|
|
|
9,116,157 |
|
|
|
9,143,177 |
|
|
|
9,168,084 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.57 |
|
|
$ |
0.50 |
|
|
$ |
0.49 |
|
|
$ |
0.44 |
|
|
$ |
0.37 |
|
Diluted |
|
0.56 |
|
|
|
0.49 |
|
|
|
0.48 |
|
|
|
0.43 |
|
|
|
0.36 |
|
Dividends per common
share |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
1.70 |
% |
|
|
1.51 |
% |
|
|
1.55 |
% |
|
|
1.43 |
% |
|
|
1.26 |
% |
Return on average
equity |
|
13.94 |
% |
|
|
12.81 |
% |
|
|
12.97 |
% |
|
|
12.15 |
% |
|
|
10.20 |
% |
Net interest rate
spread (1) |
|
5.00 |
% |
|
|
4.61 |
% |
|
|
5.02 |
% |
|
|
4.69 |
% |
|
|
4.68 |
% |
Net interest margin
(2) |
|
5.33 |
% |
|
|
4.93 |
% |
|
|
5.28 |
% |
|
|
4.94 |
% |
|
|
4.93 |
% |
Efficiency ratio
(non-GAAP) (3) |
|
57.62 |
% |
|
|
58.79 |
% |
|
|
57.91 |
% |
|
|
59.77 |
% |
|
|
62.57 |
% |
Noninterest expense to
average total assets |
|
3.28 |
% |
|
|
3.12 |
% |
|
|
3.37 |
% |
|
|
3.27 |
% |
|
|
3.27 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
120.67 |
% |
|
|
120.72 |
% |
|
|
120.52 |
% |
|
|
120.27 |
% |
|
|
122.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
Nonperforming
loans: |
|
|
|
|
|
|
|
|
|
Originated
portfolio: |
|
|
|
|
|
|
|
|
|
Residential real estate |
$ |
2,445 |
|
|
$ |
2,633 |
|
|
$ |
2,914 |
|
|
$ |
3,116 |
|
|
$ |
3,783 |
|
Commercial real estate |
|
2,764 |
|
|
|
1,703 |
|
|
|
1,499 |
|
|
|
1,408 |
|
|
|
2,537 |
|
Home
equity |
|
150 |
|
|
|
151 |
|
|
|
298 |
|
|
|
255 |
|
|
|
107 |
|
Commercial and industrial |
|
1,420 |
|
|
|
1,454 |
|
|
|
1,368 |
|
|
|
636 |
|
|
|
2,555 |
|
Consumer |
|
216 |
|
|
|
185 |
|
|
|
134 |
|
|
|
136 |
|
|
|
147 |
|
Total originated
portfolio |
|
6,995 |
|
|
|
6,126 |
|
|
|
6,213 |
|
|
|
5,551 |
|
|
|
9,129 |
|
Total purchased
portfolio |
|
5,351 |
|
|
|
5,375 |
|
|
|
5,745 |
|
|
|
8,063 |
|
|
|
8,962 |
|
Total nonperforming
loans |
|
12,346 |
|
|
|
11,501 |
|
|
|
11,958 |
|
|
|
13,614 |
|
|
|
18,091 |
|
Real estate owned and
other repossessed collateral, net |
|
1,463 |
|
|
|
1,549 |
|
|
|
2,233 |
|
|
|
947 |
|
|
|
910 |
|
Total nonperforming
assets |
$ |
13,809 |
|
|
$ |
13,050 |
|
|
$ |
14,191 |
|
|
$ |
14,561 |
|
|
$ |
19,001 |
|
|
|
|
|
|
|
|
|
|
|
Past due loans to total
loans |
|
1.95 |
% |
|
|
1.09 |
% |
|
|
0.89 |
% |
|
|
1.37 |
% |
|
|
3.87 |
% |
Nonperforming loans to
total loans |
|
1.32 |
% |
|
|
1.30 |
% |
|
|
1.37 |
% |
|
|
1.67 |
% |
|
|
2.34 |
% |
Nonperforming assets to
total assets |
|
1.16 |
% |
|
|
1.08 |
% |
|
|
1.23 |
% |
|
|
1.25 |
% |
|
|
1.84 |
% |
Allowance for loan
losses to total loans |
|
0.57 |
% |
|
|
0.60 |
% |
|
|
0.55 |
% |
|
|
0.57 |
% |
|
|
0.56 |
% |
Allowance for loan
losses to nonperforming loans |
|
42.99 |
% |
|
|
45.98 |
% |
|
|
40.20 |
% |
|
|
34.46 |
% |
|
|
24.07 |
% |
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans to total capital (4) |
|
242.38 |
% |
|
|
230.48 |
% |
|
|
200.74 |
% |
|
|
186.07 |
% |
|
|
187.92 |
% |
Net loans to core
deposits (5) |
|
94.84 |
% |
|
|
87.17 |
% |
|
|
91.54 |
% |
|
|
83.65 |
% |
|
|
91.46 |
% |
Purchased loans to
total loans, including held for sale |
|
35.17 |
% |
|
|
33.75 |
% |
|
|
33.10 |
% |
|
|
31.02 |
% |
|
|
31.28 |
% |
Equity to total
assets |
|
12.44 |
% |
|
|
11.81 |
% |
|
|
11.96 |
% |
|
|
11.47 |
% |
|
|
12.57 |
% |
Common equity tier 1
capital ratio |
|
16.04 |
% |
|
|
16.50 |
% |
|
|
16.02 |
% |
|
|
16.48 |
% |
|
|
16.74 |
% |
Total capital
ratio |
|
19.15 |
% |
|
|
19.81 |
% |
|
|
19.28 |
% |
|
|
19.92 |
% |
|
|
20.30 |
% |
Tier 1 leverage capital
ratio |
|
13.20 |
% |
|
|
12.83 |
% |
|
|
13.12 |
% |
|
|
12.88 |
% |
|
|
13.41 |
% |
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
$ |
148,491 |
|
|
$ |
143,391 |
|
|
$ |
138,430 |
|
|
$ |
133,787 |
|
|
$ |
130,003 |
|
Less: Preferred
stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common shareholders'
equity |
|
148,491 |
|
|
|
143,391 |
|
|
|
138,430 |
|
|
|
133,787 |
|
|
|
130,003 |
|
Less: Intangible assets
(6) |
|
(3,583 |
) |
|
|
(3,768 |
) |
|
|
(3,837 |
) |
|
|
(3,973 |
) |
|
|
(4,087 |
) |
Tangible common
shareholders' equity (non-GAAP) |
$ |
144,908 |
|
|
$ |
139,623 |
|
|
$ |
134,593 |
|
|
$ |
129,814 |
|
|
$ |
125,916 |
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
9,048,863 |
|
|
|
9,047,390 |
|
|
|
8,938,841 |
|
|
|
8,925,399 |
|
|
|
8,939,273 |
|
Book value per common
share |
$ |
16.41 |
|
|
$ |
15.85 |
|
|
$ |
15.49 |
|
|
$ |
14.99 |
|
|
$ |
14.54 |
|
Tangible book value per
share (non-GAAP) (7) |
|
16.01 |
|
|
|
15.43 |
|
|
|
15.06 |
|
|
|
14.54 |
|
|
|
14.09 |
|
|
|
|
|
|
|
|
|
|
|
(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