Published: August 01, 2011
Northeast Bancorp Reports Fourth Quarter Results, Declares Dividend
LEWISTON, Maine - (BUSINESS WIRE) - Northeast Bancorp ("Northeast" or the "Company" ) (NASDAQ: NBN), a
Maine-based full-service financial services company and parent of
Northeast Bank, today reported net income of $561,000 or $0.13 per
diluted common share for the quarter ended June 30, 2011, which includes
the effect of certain one-time gains described below. For the 184-day
period ended June 30, 2011, the Company earned $12.6 million or $3.47
per diluted common share, results that included a $15.4 million bargain
purchase gain and $3.2 million of transaction costs related to the
merger of Northeast and FHB Formation LLC ("FHB" ), which was consummated
on December 29, 2010, and contributed approximately $16.2 million of new
capital to the Company.
The Board of Directors has declared a cash dividend of $0.09 per share,
payable on August 26, 2011 to shareholders of record as of August 12,
2011.
"We are very pleased with the progress that we've made in positioning
Northeast Bank for growth," said Richard Wayne, President and Chief
Executive Officer of Northeast Bancorp. "This year, Northeast completed
a successful transaction with FHB that brought new capital to the
Company, enabling us to grow core deposits in our markets and increase
our capital ratios. This, combined with our investments in building a
Loan Acquisition and Servicing Group and an Online Deposit Program, will
provide Northeast with a solid platform for future success."
Earnings for the quarter ended June 30, 2011 included two non-recurring
items, as follows:
1. Gains on sales of securities totaling $1.15 million; and
2. A $225,000 positive adjustment to the bargain purchase gain recorded
in connection with the accounting for the merger with FHB.
Total assets as of June 30, 2011 were $596.4 million, a decrease of
approximately 4.2%, or $26.2 million, compared to total assets of $622.6
million as of June 30, 2010. The principal components of the change in
the balance sheet over the past year were as follows:
1. An $81.5 million, or 20.6%, reduction in loans outstanding,
approximately half of which is attributable to loan sales, principally
from the Company's indirect consumer loan portfolio. The remainder of
the reduction in loans is the result of net amortization and pay-offs of
residential and commercial loans and a $9.1 million decrease in loans
held for sale;
2. A $5.4 million reduction in the allowance for loan losses, a result
of acquisition accounting that does not permit the carryover of the
predecessor company's allowance for loan losses. Credit considerations
for loans on the date of consummation of the merger with FHB are instead
reflected in fair value adjustments on that date;
3. A $43.7 million, or 94.6%, reduction in short-term borrowed funds;
4. A $16.9 million, or 4.4%, net increase in deposits, centered
principally in demand deposit accounts and time deposits; and
5. A $48.3 million, or 26.1%, increase in cash and securities, the net
result of changes in loans and funding sources, and the infusion of new
capital in conjunction with the merger.
Non-performing loans totaled $7.9 million at June 30, 2011, a reduction
of $900,000, or 10.1 %, from June 30, 2010.
As a result of the merger with FHB, coupled with the reduction in
balance sheet size, the Company's capital ratios have increased: the
tier 1 leverage ratio increased to 10.3% compared to 8.4% at June 30,
2010 and the total risk-based capital ratio increased to 19.0% from
14.1% at June 30, 2010.
About Northeast Bancorp
Northeast Bancorp (NASDAQ: NBN) is the holding company for Northeast
Bank, a full service community bank headquartered in Lewiston, Maine.
Northeast Bank, together with its wholly owned subsidiary Northeast Bank
Insurance Group, Inc., derives its income from a combination of
traditional banking services and non-traditional financial products and
services, including insurance and investments. Northeast Bank operates
ten traditional bank branches, ten insurance offices, three investment
centers and four loan production offices that serve seven counties in
Maine and two in New Hampshire. Information regarding Northeast Bank can
be found on its website at www.northeastbank.com
or by contacting 1-800-284-5989.
---------------------------------------------------------------------------------------------------------------------
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; competitive pressures from other financial
institutions; the effects of a continuing deterioration 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;
increasing government regulation, such as the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010; the risk that goodwill and
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 we do 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.
IMPORTANT NOTE: Securities and Advisory Services offered through
Commonwealth Financial Network, Member FINRA, SIPC, and a Registered
Investment Advisor. Securities are not FDIC insured, not bank
obligations or otherwise bank guaranteed and may lose value. Northeast
Financial is located at 202 Rte. 1, Suite 206, Falmouth, ME 04105
|
|
|
NORTHEAST BANCORP AND SUBSIDIARY
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Dollars in thousands)
|
|
|
Successor
|
|
Predecessor
|
|
|
Company (1)
|
|
Company (2)
|
|
|
June 30,
|
|
June 30,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Audited)
|
|
Assets
|
|
|
|
|
|
|
|
Cash and due from banks
|
$
|
3,227
|
|
|
$
|
7,019
|
|
Short-term investments
|
|
80,704
|
|
|
|
13,416
|
|
Total cash and cash equivalents
|
|
83,931
|
|
|
|
20,435
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities, at fair value
|
|
148,962
|
|
|
|
164,188
|
|
Loans held-for-sale
|
|
5,176
|
|
|
|
14,254
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
|
|
|
|
|
|
Residential real estate
|
|
145,530
|
|
|
|
155,613
|
|
Commercial real estate
|
|
117,703
|
|
|
|
121,175
|
|
Construction
|
|
2,018
|
|
|
|
5,525
|
|
Commercial business
|
|
22,227
|
|
|
|
30,214
|
|
Consumer
|
|
22,435
|
|
|
|
69,782
|
|
Total loans, gross
|
|
309,913
|
|
|
|
382,309
|
|
Less allowance for loan losses
|
|
437
|
|
|
|
5,806
|
|
Loans, net
|
|
309,476
|
|
|
|
376,503
|
|
|
|
|
|
|
|
|
|
Premises and equipment, net
|
|
8,271
|
|
|
|
7,997
|
|
Acquired assets, net
|
|
690
|
|
|
|
1,292
|
|
Accrued interest receivable
|
|
1,244
|
|
|
|
2,081
|
|
Federal Home Loan Bank stock, at cost
|
|
4,890
|
|
|
|
4,889
|
|
Federal Reserve Bank stock, at cost
|
|
871
|
|
|
|
597
|
|
Intangible assets
|
|
13,133
|
|
|
|
11,371
|
|
Bank owned life insurance
|
|
13,794
|
|
|
|
13,286
|
|
Other assets
|
|
5,955
|
|
|
|
5,714
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
596,393
|
|
|
$
|
622,607
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
Demand
|
$
|
48,215
|
|
|
$
|
35,266
|
|
Savings and interest checking
|
|
89,804
|
|
|
|
89,024
|
|
Money market
|
|
48,695
|
|
|
|
55,556
|
|
Brokered time deposits
|
|
4,924
|
|
|
|
4,883
|
|
Certificates of deposit
|
|
209,480
|
|
|
|
199,468
|
|
Total deposits
|
|
401,118
|
|
|
|
384,197
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank advances
|
|
43,922
|
|
|
|
50,500
|
|
Structured repurchase agreements
|
|
68,008
|
|
|
|
65,000
|
|
Short-term borrowings
|
|
2,515
|
|
|
|
46,168
|
|
Junior subordinated debentures issued to affiliated trusts
|
|
7,957
|
|
|
|
16,496
|
|
Capital lease obligation
|
|
2,075
|
|
|
|
2,231
|
|
Other borrowings
|
|
2,229
|
|
|
|
2,630
|
|
Other liabilities
|
|
3,615
|
|
|
|
4,479
|
|
Total liabilities
|
|
531,439
|
|
|
|
571,701
|
|
|
|
|
|
|
|
|
|
Commitments and contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
Preferred stock, $1.00 par value, 1,000,000 shares authorized; 4,227
shares issued and outstanding
|
|
|
|
|
|
|
|
at June 30, 2011 and June 30, 2010 liquidation preference of $1,000
per share
|
|
4
|
|
|
|
4
|
|
Voting common stock, at stated value, 13,500,000 shares authorized;
3,312,173 and 2,323,832 shares
|
|
|
|
|
|
|
|
issued and outstanding at June 30, 2011 and June 30, 2010,
respectively
|
|
3,312
|
|
|
|
2,324
|
|
Non-voting common stock, at stated value, 1,500,000 shares
authorized; 195,351 and 0 shares
|
|
|
|
|
|
|
|
issued and outstanding at June 30, 2011 and June 30, 2010,
respectively
|
|
195
|
|
|
|
-
|
|
Warrants
|
|
406
|
|
|
|
133
|
|
Additional paid-in capital
|
|
49,700
|
|
|
|
6,761
|
|
Unearned restricted stock award
|
|
(163
|
)
|
|
|
-
|
|
Retained earnings
|
|
11,726
|
|
|
|
37,338
|
|
Accumulated other comprehensive (loss) income
|
|
(226
|
)
|
|
|
4,346
|
|
Total stockholders' equity
|
|
64,954
|
|
|
|
50,906
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
$
|
596,393
|
|
|
$
|
622,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)"Successor Company" means Northeast Bancorp and its subsidiary
after the closing of the merger with FHB Formation LLC on December
29, 2010.
|
|
|
|
|
|
|
|
|
|
(2)"Predecessor Company" means Northeast Bancorp and its subsidiary
before the closing of the merger with FHB Formation LLC on December
29, 2010.
|
|
|
|
NORTHEAST BANCORP AND SUBSIDIARY
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(Dollars in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
|
Company (1)
|
|
Company (2)
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
|
Three Months
|
|
184 Days
|
|
181 Days
|
|
Three Months
|
|
Twelve Months
|
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
|
June 30,
|
|
June 30,
|
|
December 28,
|
|
June 30,
|
|
June 30,
|
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
2010
|
|
Interest and dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on loans
|
$
|
5,699
|
|
$
|
11,544
|
|
|
$
|
11,210
|
|
$
|
5,768
|
|
$
|
23,803
|
|
|
Taxable interest on available-for-sale securities
|
|
684
|
|
|
1,555
|
|
|
|
2,866
|
|
|
1,689
|
|
|
6,860
|
|
|
Tax-exempt interest on available-for-sale securities
|
|
-
|
|
|
76
|
|
|
|
231
|
|
|
119
|
|
|
476
|
|
|
Dividends on available-for-sale securities
|
|
4
|
|
|
11
|
|
|
|
14
|
|
|
29
|
|
|
75
|
|
|
Dividends on Federal Home Loan Bank and Federal Reserve Bank stock
|
|
15
|
|
|
28
|
|
|
|
18
|
|
|
9
|
|
|
36
|
|
|
Other interest and dividend income
|
|
56
|
|
|
90
|
|
|
|
39
|
|
|
3
|
|
|
12
|
|
|
Total interest and dividend income
|
|
6,458
|
|
|
13,304
|
|
|
|
14,378
|
|
|
7,617
|
|
|
31,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
849
|
|
|
1,665
|
|
|
|
2,796
|
|
|
1,608
|
|
|
7,115
|
|
|
Federal Home Loan Bank advances
|
|
236
|
|
|
535
|
|
|
|
918
|
|
|
461
|
|
|
1,798
|
|
|
Structured repurchase agreements
|
|
240
|
|
|
512
|
|
|
|
1,392
|
|
|
700
|
|
|
654
|
|
|
Short-term borrowings
|
|
9
|
|
|
76
|
|
|
|
376
|
|
|
169
|
|
|
759
|
|
|
Junior subordinated debentures issued to affiliated trusts
|
|
185
|
|
|
365
|
|
|
|
340
|
|
|
172
|
|
|
2,872
|
|
|
Obligation under capital lease agreements
|
|
26
|
|
|
54
|
|
|
|
55
|
|
|
28
|
|
|
116
|
|
|
Other borrowings
|
|
19
|
|
|
54
|
|
|
|
75
|
|
|
43
|
|
|
199
|
|
|
Total interest expense
|
|
1,564
|
|
|
3,261
|
|
|
|
5,952
|
|
|
3,181
|
|
|
13,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income before provision for loan losses
|
|
4,894
|
|
|
10,043
|
|
|
|
8,426
|
|
|
4,436
|
|
|
17,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
658
|
|
|
707
|
|
|
|
912
|
|
|
360
|
|
|
1,864
|
|
|
Net interest and dividend income after provision for loan losses
|
|
4,236
|
|
|
9,336
|
|
|
|
7,514
|
|
|
4,076
|
|
|
15,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees for other services to customers
|
|
347
|
|
|
670
|
|
|
|
698
|
|
|
387
|
|
|
1,504
|
|
|
Net securities gains (losses)
|
|
1,153
|
|
|
1,200
|
|
|
|
17
|
|
|
3
|
|
|
(18
|
)
|
|
Gain on sales of loans
|
|
486
|
|
|
830
|
|
|
|
1,867
|
|
|
556
|
|
|
1,264
|
|
|
Investment commissions
|
|
701
|
|
|
1,435
|
|
|
|
1,174
|
|
|
599
|
|
|
2,054
|
|
|
Insurance commissions
|
|
1,277
|
|
|
2,772
|
|
|
|
2,661
|
|
|
1,508
|
|
|
6,213
|
|
|
BOLI income
|
|
128
|
|
|
259
|
|
|
|
250
|
|
|
126
|
|
|
502
|
|
|
Bargain purchase gain
|
|
225
|
|
|
15,441
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Other income
|
|
195
|
|
|
351
|
|
|
|
330
|
|
|
118
|
|
|
627
|
|
|
Total noninterest income
|
|
4,512
|
|
|
22,958
|
|
|
|
6,997
|
|
|
3,297
|
|
|
12,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
4,448
|
|
|
9,439
|
|
|
|
6,670
|
|
|
3,527
|
|
|
13,920
|
|
|
Occupancy and equipment expense
|
|
934
|
|
|
1,864
|
|
|
|
1,556
|
|
|
773
|
|
|
3,338
|
|
|
Professional fees
|
|
443
|
|
|
830
|
|
|
|
527
|
|
|
616
|
|
|
1,026
|
|
|
Data processing fees
|
|
314
|
|
|
651
|
|
|
|
618
|
|
|
318
|
|
|
1,245
|
|
|
Intangible assets amortization
|
|
635
|
|
|
1,079
|
|
|
|
344
|
|
|
175
|
|
|
724
|
|
|
Merger expense
|
|
7
|
|
|
3,189
|
|
|
|
94
|
|
|
395
|
|
|
547
|
|
|
Goodwill impairment
|
|
-
|
|
|
-
|
|
|
|
|
|
|
408
|
|
|
408
|
|
|
Other
|
|
1,295
|
|
|
2,750
|
|
|
|
2,138
|
|
|
764
|
|
|
4,209
|
|
|
Total noninterest expense
|
|
8,076
|
|
|
19,802
|
|
|
|
11,947
|
|
|
6,976
|
|
|
25,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense
|
|
672
|
|
|
12,492
|
|
|
|
2,564
|
|
|
397
|
|
|
2,614
|
|
|
Income tax expense (benefit)
|
|
111
|
|
|
(60
|
)
|
|
|
768
|
|
|
353
|
|
|
895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
561
|
|
$
|
12,552
|
|
|
$
|
1,796
|
|
$
|
44
|
|
$
|
1,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders
|
$
|
464
|
|
$
|
12,355
|
|
|
$
|
1,677
|
|
$
|
(18
|
)
|
$
|
1,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,493,377
|
|
|
3,492,933
|
|
|
|
2,330,197
|
|
|
2,322,332
|
|
|
2,321,894
|
|
|
Diluted
|
|
3,522,845
|
|
|
3,548,164
|
|
|
|
2,354,385
|
|
|
2,342,153
|
|
|
2,334,339
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.13
|
|
$
|
3.52
|
|
|
$
|
0.72
|
|
$
|
(0.01
|
)
|
$
|
0.64
|
|
|
Diluted
|
$
|
0.13
|
|
$
|
3.47
|
|
|
$
|
0.71
|
|
$
|
(0.01
|
)
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)"Successor Company" means Northeast Bancorp and its subsidiary
after the closing of the merger with FHB Formation LLC on December
29, 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)"Predecessor Company" means Northeast Bancorp and its subsidiary
before the closing of the merger with FHB Formation LLC on December
29, 2010.
|
|
|
|
NORTHEAST BANCORP AND SUBSIDIARY
|
|
SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS AND OTHER DATA
|
|
(Unaudited)
|
|
(Dollars in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
|
Company (1)
|
|
Company (2)
|
|
|
Three Months
|
|
184 Days
|
|
181 Days
|
|
Three Months
|
|
Twelve Months
|
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Ended
|
|
|
June 30,
|
|
June 30,
|
|
December 28,
|
|
June 30,
|
|
June 30,
|
|
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
2010
|
|
Financial Highlights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
4,894
|
|
|
$
|
10,043
|
|
|
$
|
8,426
|
|
|
$
|
4,436
|
|
|
$
|
17,749
|
|
|
Net income
|
$
|
561
|
|
|
$
|
12,552
|
|
|
$
|
1,796
|
|
|
$
|
44
|
|
|
$
|
1,719
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,493,377
|
|
|
|
3,492,933
|
|
|
|
2,330,197
|
|
|
|
2,322,332
|
|
|
|
2,321,894
|
|
|
Diluted
|
|
3,522,845
|
|
|
|
3,548,164
|
|
|
|
2,354,385
|
|
|
|
2,342,153
|
|
|
|
2,334,339
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.13
|
|
|
$
|
3.52
|
|
|
$
|
0.72
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.64
|
|
|
Diluted
|
$
|
0.13
|
|
|
$
|
3.47
|
|
|
$
|
0.71
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.63
|
|
|
Stockholders' equity - end of period
|
$
|
64,954
|
|
|
|
|
|
|
|
|
|
|
$
|
50,906
|
|
|
|
|
|
|
Book value per share - end of period
|
$
|
17.33
|
|
|
|
|
|
|
|
|
|
|
$
|
20.08
|
|
|
|
|
|
|
Tangible book value per share - end of period
|
$
|
13.58
|
|
|
|
|
|
|
|
|
|
|
$
|
15.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios and Other Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
0.37
|
%
|
|
|
4.09
|
%
|
|
|
0.57
|
%
|
|
|
0.03
|
%
|
|
|
0.28
|
%
|
|
Return on average equity
|
|
3.44
|
%
|
|
|
38.23
|
%
|
|
|
6.94
|
%
|
|
|
0.35
|
%
|
|
|
3.47
|
%
|
|
Net interest rate spread (3)
|
|
3.35
|
%
|
|
|
3.41
|
%
|
|
|
2.69
|
%
|
|
|
2.94
|
%
|
|
|
2.94
|
%
|
|
Net interest margin (4)
|
|
3.52
|
%
|
|
|
3.56
|
%
|
|
|
2.91
|
%
|
|
|
3.14
|
%
|
|
|
3.15
|
%
|
|
Efficiency ratio (5)
|
|
86
|
%
|
|
|
60
|
%
|
|
|
77
|
%
|
|
|
90
|
%
|
|
|
85
|
%
|
|
Non-interest expense to average total assets
|
|
5.36
|
%
|
|
|
6.45
|
%
|
|
|
3.83
|
%
|
|
|
4.54
|
%
|
|
|
4.16
|
%
|
|
Average interest-earning assets to average interest-bearing
liabilities
|
|
115.00
|
%
|
|
|
113.27
|
%
|
|
|
110.66
|
%
|
|
|
108.39
|
%
|
|
|
108.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At period end:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets to total assets
|
|
1.45
|
%
|
|
|
|
|
|
|
|
|
|
|
1.63
|
%
|
|
|
|
|
|
Non-performing loans to total loans
|
|
2.57
|
%
|
|
|
|
|
|
|
|
|
|
|
2.31
|
%
|
|
|
|
|
|
Allowance for loan losses to total loans
|
|
0.14
|
%
|
|
|
|
|
|
|
|
|
|
|
1.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets
|
|
10.89
|
%
|
|
|
|
|
|
|
|
|
|
|
8.18
|
%
|
|
|
|
|
|
Tier 1 leverage capital ratio
|
|
10.33
|
%
|
|
|
|
|
|
|
|
|
|
|
8.40
|
%
|
|
|
|
|
|
Total risk-based capital ratio
|
|
18.96
|
%
|
|
|
|
|
|
|
|
|
|
|
14.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of full service branches
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
Number of insurance agency offices
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
Number of investment and mortgage loan origination offices
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)"Successor Company" means Northeast Bancorp and its subsidiary
after the closing of the merger with FHB Formation LLC on December
29, 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)"Predecessor Company" means Northeast Bancorp and its subsidiary
before the closing of the merger with FHB Formation LLC on December
29, 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)The net interest margin represents net interest income as a
percent of average interest-earning assets for the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)The efficiency ratio represents non-interest expense divided by
the sum of net interest income (before the loan loss provision) plus
non-interest income.
|
|
|
|
NORTHEAST BANCORP AND SUBSIDIARY
|
|
CONSOLIDATED AVERAGE BALANCES AND ANNUALIZED YIELDS
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
Three months ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
|
Yield/
|
|
Average
|
|
|
|
|
Yield/
|
|
|
|
Balance
|
|
Q-T-D Inc.
|
|
Rate (1)
|
|
Balance
|
|
Q-T-D Inc.
|
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning-assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
$
|
143,965
|
|
$
|
688
|
|
1.92
|
%
|
|
$
|
167,383
|
|
$
|
1,837
|
|
4.53
|
%
|
|
Loans (2)(3)
|
|
|
317,034
|
|
|
5,699
|
|
7.21
|
%
|
|
|
390,172
|
|
|
5,768
|
|
5.93
|
%
|
|
Bank Regulatory Stock
|
|
|
5,616
|
|
|
15
|
|
1.07
|
%
|
|
|
5,486
|
|
|
9
|
|
0.66
|
%
|
|
Short-term investments (4)
|
|
|
91,655
|
|
|
56
|
|
0.25
|
%
|
|
|
9,707
|
|
|
3
|
|
0.12
|
%
|
|
Total interest-earning assets
|
|
|
558,270
|
|
|
6,458
|
|
4.64
|
%
|
|
|
572,748
|
|
|
7,617
|
|
5.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest earning assets
|
|
|
46,588
|
|
|
|
|
|
|
|
|
42,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
604,858
|
|
|
|
|
|
|
|
$
|
615,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & Net Worth:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Now
|
|
$
|
56,734
|
|
$
|
78
|
|
0.55
|
%
|
|
$
|
50,620
|
|
$
|
103
|
|
0.82
|
%
|
|
Money Market
|
|
|
50,320
|
|
|
62
|
|
0.49
|
%
|
|
|
49,620
|
|
|
141
|
|
1.14
|
%
|
|
Savings
|
|
|
33,898
|
|
|
32
|
|
0.38
|
%
|
|
|
36,831
|
|
|
65
|
|
0.71
|
%
|
|
Time
|
|
|
216,772
|
|
|
677
|
|
1.25
|
%
|
|
|
209,342
|
|
|
1,299
|
|
2.49
|
%
|
|
Total interest-bearing deposits
|
|
|
357,724
|
|
|
849
|
|
0.95
|
%
|
|
|
346,413
|
|
|
1,608
|
|
1.86
|
%
|
|
Short-term borrowings (5)
|
|
|
3,460
|
|
|
9
|
|
1.04
|
%
|
|
|
45,069
|
|
|
169
|
|
1.50
|
%
|
|
Borrowed funds
|
|
|
116,346
|
|
|
521
|
|
1.80
|
%
|
|
|
120,430
|
|
|
1,232
|
|
4.10
|
%
|
|
Junior Subordinated Debentures
|
|
|
7,940
|
|
|
185
|
|
9.35
|
%
|
|
|
16,496
|
|
|
172
|
|
4.18
|
%
|
|
Total interest-earning liabilities
|
|
|
485,470
|
|
|
1,564
|
|
1.29
|
%
|
|
|
528,408
|
|
|
3,181
|
|
2.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and escrow accounts
|
|
|
50,260
|
|
|
|
|
|
|
|
|
33,198
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
3,724
|
|
|
|
|
|
|
|
|
3,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
539,454
|
|
|
|
|
|
|
|
|
565,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
65,405
|
|
|
|
|
|
|
|
|
50,603
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
604,859
|
|
|
|
|
|
|
|
$
|
615,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
$
|
4,894
|
|
|
|
|
|
|
|
$
|
4,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
|
|
|
|
|
|
|
|
3.35
|
%
|
|
|
|
|
|
|
|
2.96
|
%
|
|
Net yield on interest earning assets (6)
|
|
|
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
|
|
3.14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Yields are stated on a fully tax-equivalent basis using a 30.84%
tax rate.
|
|
(2)Non-accruing loans are included in the computation of average
balances, but unpaid interest on
|
|
nonperforming loans has not been included for purposes of
determining interest income.
|
|
(3)Includes Loans Held-for-Sale.
|
|
(4)Short term investments include FHLB overnight deposits and other
interest-bearing deposits.
|
|
(5)Short-term borrowings include securities sold under repurchase
agreements and sweep accounts.
|
|
(6)The net yield on interest-earning assets is net interest income
divided by total interest-earning assets.
|
|
|
|
NORTHEAST BANCORP AND SUBSIDIARY
|
|
CONSOLIDATED AVERAGE BALANCES AND ANNUALIZED YIELDS
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
Twelve months ended June 30,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
|
Yield/
|
|
Average
|
|
|
|
|
Yield/
|
|
|
|
Balance
|
|
Y-T-D Inc.
|
|
Rate (1)
|
|
Balance
|
|
Y-T-D Inc.
|
|
Rate
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning-assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
$
|
152,820
|
|
$
|
4,753
|
|
3.20
|
%
|
|
$
|
163,601
|
|
$
|
7,411
|
|
4.66
|
%
|
|
Loans (2)(3)
|
|
|
361,262
|
|
|
22,754
|
|
6.30
|
%
|
|
|
392,398
|
|
|
23,803
|
|
6.07
|
%
|
|
Bank Regulatory Stock
|
|
|
5,518
|
|
|
46
|
|
0.83
|
%
|
|
|
5,486
|
|
|
36
|
|
0.66
|
%
|
|
Short-term investments (4)
|
|
|
57,330
|
|
|
129
|
|
0.23
|
%
|
|
|
8,761
|
|
|
12
|
|
0.14
|
%
|
|
Total interest-earning assets
|
|
|
576,930
|
|
|
27,682
|
|
4.82
|
%
|
|
|
570,246
|
|
|
31,262
|
|
5.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest earning assets
|
|
|
42,070
|
|
|
|
|
|
|
|
|
41,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
619,000
|
|
|
|
|
|
|
|
$
|
611,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & Net Worth:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Now
|
|
$
|
55,094
|
|
$
|
344
|
|
0.62
|
%
|
|
$
|
48,271
|
|
$
|
379
|
|
0.79
|
%
|
|
Money Market
|
|
|
54,081
|
|
|
347
|
|
0.64
|
%
|
|
|
43,974
|
|
|
532
|
|
1.21
|
%
|
|
Savings
|
|
|
36,536
|
|
|
166
|
|
0.45
|
%
|
|
|
29,366
|
|
|
181
|
|
0.62
|
%
|
|
Time
|
|
|
201,830
|
|
|
3,604
|
|
1.79
|
%
|
|
|
224,399
|
|
|
6,023
|
|
2.68
|
%
|
|
Total interest-bearing deposits
|
|
|
347,541
|
|
|
4,461
|
|
1.28
|
%
|
|
|
346,010
|
|
|
7,115
|
|
2.06
|
%
|
|
Short-term borrowings (5)
|
|
|
36,679
|
|
|
452
|
|
1.23
|
%
|
|
|
42,940
|
|
|
759
|
|
1.77
|
%
|
|
Borrowed funds
|
|
|
119,032
|
|
|
3,595
|
|
3.02
|
%
|
|
|
119,002
|
|
|
2,767
|
|
2.33
|
%
|
|
Junior Subordinated Debentures
|
|
|
12,173
|
|
|
705
|
|
5.79
|
%
|
|
|
16,496
|
|
|
2,872
|
|
17.41
|
%
|
|
Total interest-earning liabilities
|
|
|
515,425
|
|
|
9,213
|
|
1.79
|
%
|
|
|
524,448
|
|
|
13,513
|
|
2.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and escrow accounts
|
|
|
40,875
|
|
|
|
|
|
|
|
|
34,186
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
4,302
|
|
|
|
|
|
|
|
|
3,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
560,602
|
|
|
|
|
|
|
|
|
561,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
58,397
|
|
|
|
|
|
|
|
|
49,499
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
618,999
|
|
|
|
|
|
|
|
$
|
611,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
|
$
|
18,469
|
|
|
|
|
|
|
|
$
|
17,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
|
|
|
|
|
|
|
|
3.03
|
%
|
|
|
|
|
|
|
|
2.94
|
%
|
|
Net yield on interest earning assets (5)
|
|
|
|
|
|
|
|
3.23
|
%
|
|
|
|
|
|
|
|
3.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Yields are stated on a fully tax-equivalent basis using a 30.84%
tax rate.
|
|
(2)Non-accruing loans are included in the computation of average
balances, but unpaid interest on
|
|
nonperforming loans has not been included for purposes of
determining interest income.
|
|
(3)Includes Loans Held-for-Sale.
|
|
(4)Short term investments include FHLB overnight deposits and other
interest-bearing deposits.
|
|
(5)Short-term borrowings include securities sold under repurchase
agreements and sweep accounts.
|
|
(6)The net yield on interest-earning assets is net interest income
divided by total interest-earning assets.
|
Northeast Bank
Claire S. Bean, 207-786-3245 ext. 6202
Chief
Financial Officer & C.O.O.
www.northeastbank.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
|
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