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 $2.2
million, or $0.24 per diluted common share, for the quarter ended
June 30, 2016, compared to net income of $2.2 million, or $0.22 per
diluted common share, for the quarter ended June 30, 2015. Net
income for the year ended June 30, 2016 was $7.6 million, or $0.80
per diluted common share, compared to $7.1 million, or $0.72 per
diluted common share, for the year ended June 30, 2015.
The Board of Directors has also declared a cash dividend of
$0.01 per share, payable on August 24, 2016 to shareholders of
record as of August 10, 2016.
“We closed the year with a strong quarter,” said Richard Wayne,
President and Chief Executive Officer. “For the quarter, we
achieved earnings of $0.24 per share driven by solid SBA gains on
sale and purchased loan transactional income. In addition to
earnings growth, we generated loan volume of $96.6 million,
including $50.6 million of loans produced by the Loan Acquisition
and Servicing Group, $17.4 million of SBA loans and $28.6 million
of residential and commercial loans produced by the Community
Bank. The growth of our balance sheet and earnings, coupled
with the issuance of $15.05 million of subordinated notes in June,
compliments our growth strategy and positions us well for the
future.”
As of June 30, 2016, total assets were $986.2 million, an
increase of $135.4 million, or 15.9%, compared to June 30, 2015.
The principal components of the change in the balance sheet
follow:
1. The loan portfolio – excluding loans held for sale – has
grown by $80.3 million, or 13.1%, compared to June 30, 2015,
principally on the strength of $81.8 million of net growth in
commercial loans purchased or originated by the Bank’s Loan
Acquisition and Servicing Group (“LASG”), net growth of $15.5
million in originations by the Bank’s Small Business Administration
(“SBA”) National Division and net growth of $3.9 million in
commercial originations by the Bank’s Community Banking Division.
This net growth was offset by a pay down of one secured loan to a
broker-dealer for $12.0 million in the LASG portfolio and a $20.9
million decrease in the Bank’s Community Banking Division
residential and consumer loan portfolio.
Loans generated by the LASG totaled $50.6 million for the
quarter ended June 30, 2016. The growth in LASG loans consisted of
$18.8 million of purchased loans, at an average price of 91.1% of
unpaid principal balance, and $31.8 million of originated loans.
SBA loans closed during the quarter totaled $17.4 million, of which
$16.1 million were fully funded in the quarter. In addition,
the Company sold $14.2 million of the guaranteed portion of SBA and
United States Department of Agriculture (“USDA”) loans in the
secondary market, of which $9.4 million were originated in the
current quarter and $4.8 million were originated in prior quarters.
Residential loan production sold in the secondary market totaled
$19.9 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 June 30, 2016 |
|
|
|
|
(Dollars in millions) |
Total Loans |
|
Purchased loans may not
exceed 40% of total loans |
|
$ |
67.1 |
Regulatory Capital |
|
Non-owner occupied
commercial real estate loans may not exceed 300% of total
capital |
|
$ |
180.0 |
|
|
|
|
|
|
An overview of the Bank’s
LASG portfolio follows:
|
LASG Portfolio |
|
Three Months Ended June 30, |
|
2016 |
|
2015 |
|
Purchased |
Originated |
Secured Loans to Broker-Dealers |
Total LASG |
|
Purchased |
Originated |
Secured Loans to Broker-Dealers |
Total LASG |
|
(Dollars in
thousands) |
Loans purchased or originated during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid principal balance |
$ |
|
20,588 |
|
$ |
|
31,826 |
|
$ |
|
- |
|
$ |
|
52,414 |
|
|
$ |
|
25,785 |
|
$ |
|
29,193 |
|
$ |
|
- |
|
$ |
|
54,978 |
|
Net investment basis |
|
|
18,754 |
|
|
|
31,826 |
|
|
|
- |
|
|
|
50,580 |
|
|
|
|
24,758 |
|
|
|
29,193 |
|
|
|
- |
|
|
|
53,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the period: |
Yield (1) |
|
|
10.88 |
% |
|
|
6.98 |
% |
|
|
0.51 |
% |
|
|
8.19 |
% |
|
|
|
13.11 |
% |
|
|
5.56 |
% |
|
|
0.49 |
% |
|
|
8.79 |
% |
Total Return (1) (2) |
|
|
10.88 |
% |
|
|
6.98 |
% |
|
|
0.51 |
% |
|
|
8.19 |
% |
|
|
|
13.39 |
% |
|
|
5.56 |
% |
|
|
0.49 |
% |
|
|
9.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
|
|
2016 |
|
2015 |
|
|
Purchased |
Originated |
Secured Loans to Broker-Dealers |
Total LASG |
|
Purchased |
Originated |
Secured Loans to Broker-Dealers |
Total LASG |
|
|
|
(Dollars in
thousands) |
|
|
Loans purchased or originated during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid principal balance |
$ |
|
108,716 |
|
$ |
|
110,578 |
|
$ |
|
- |
|
$ |
|
|
219,294 |
|
|
|
$ |
|
|
93,694 |
|
|
$ |
|
|
|
82,502 |
|
|
$ |
|
|
|
48,000 |
|
|
|
$ |
|
|
224,196 |
|
|
|
Net investment basis |
|
|
99,999 |
|
|
|
110,578 |
|
|
|
- |
|
|
|
|
210,577 |
|
|
|
|
|
|
82,654 |
|
|
|
|
|
|
82,502 |
|
|
|
|
|
|
48,000 |
|
|
|
|
|
|
213,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield (1) |
|
|
11.37 |
% |
|
|
6.11 |
% |
|
|
0.50 |
% |
|
|
|
8.03 |
% |
|
|
|
|
|
13.00 |
% |
|
|
|
|
|
6.44 |
% |
|
|
|
|
|
0.47 |
% |
|
|
|
|
|
9.73 |
% |
|
|
Total Return (1) (2) |
|
|
11.38 |
% |
|
|
6.10 |
% |
|
|
0.50 |
% |
|
|
|
8.04 |
% |
|
|
|
|
|
13.33 |
% |
|
|
|
|
|
6.75 |
% |
|
|
|
|
|
0.47 |
% |
|
|
|
|
|
10.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans as of period end: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid principal balance |
$ |
|
271,268 |
|
$ |
|
174,918 |
|
$ |
|
48,000 |
|
$ |
|
494,186 |
|
|
$ |
|
239,933 |
|
|
$ |
|
118,416 |
|
|
$ |
|
60,000 |
|
|
|
$ |
|
418,349 |
|
|
|
Net investment basis |
|
|
239,709 |
|
|
|
174,918 |
|
|
|
48,000 |
|
|
|
462,627 |
|
|
|
|
202,592 |
|
|
|
|
118,416 |
|
|
|
|
60,000 |
|
|
|
|
|
381,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
yield and total return on LASG originated loans includes $385
thousand of fees related to one loan in the quarter ended June 30,
2016. |
|
|
(2) The
total return on purchased loans represents scheduled accretion,
accelerated accretion, gains on asset sales, and other noninterest
income recorded during the period divided by the average invested
balance, on an annualized basis. The total return does not
include the effect of purchased loan charge-offs or recoveries in
the quarter. |
|
|
|
|
|
2. Deposits increased by $47.5 million, or 6.3% for the quarter,
attributable primarily to growth in non-maturity (demand, savings
and interest checking, and money market) accounts, which increased
by $49.8 million, or 12.5%. For the year ended June 30, 2016,
deposits increased $125.7 million, or 18.6%, primarily due to
growth in non-maturity accounts of $120.3 million, or 36.6%, and
growth in time deposits of $5.4 million, or 1.6%.
3. Stockholders’ equity increased by $3.9 million from June 30,
2015, due principally to earnings of $7.6 million, offset by $3.4
million in share repurchases (representing 322,900 shares).
Additionally, there was an increase in stock-based compensation of
$613 thousand, offset by a decrease in accumulated other
comprehensive income of $618 thousand and $380 thousand in
dividends paid on common stock.
Net income increased by $34 thousand to $2.2 million for the
quarter ended June 30, 2016, compared to $2.2 million for the
quarter ended June 30, 2015.
1. Net interest and dividend income before provision for
loan losses increased by $1.4 million for the quarter ended June
30, 2016, compared to the quarter ended June 30, 2015. The increase
is primarily due to higher average balances in the total loan
portfolio.
The various components of transactional income are set forth in
the table below entitled “Total Return on Purchased Loans.” When
compared to the three months and year ended June 30, 2015,
transactional income decreased by $906 thousand and $2.6 million,
respectively. The following table summarizes interest income and
related yields recognized on the loan portfolios:
|
Interest Income and Yield on Loans |
|
Three Months Ended June 30, |
|
2016 |
|
2015 |
|
Average |
|
Interest |
|
|
|
Average |
|
Interest |
|
|
|
Balance (1) |
|
Income (2) |
|
Yield |
|
Balance (1) |
|
Income |
|
Yield |
|
(Dollars in thousands) |
Community Banking |
$ |
212,625 |
|
$ |
2,589 |
|
|
4.90 |
% |
|
$ |
228,558 |
|
$ |
2,839 |
|
|
4.98 |
% |
SBA |
|
30,599 |
|
|
490 |
|
|
6.44 |
% |
|
|
8,860 |
|
|
126 |
|
|
5.70 |
% |
LASG: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
172,678 |
|
|
2,996 |
|
|
6.98 |
% |
|
|
106,963 |
|
|
1,483 |
|
|
5.56 |
% |
Purchased |
|
232,610 |
|
|
6,294 |
|
|
10.88 |
% |
|
|
195,016 |
|
|
6,375 |
|
|
13.11 |
% |
Secured
Loans to Broker-Dealers |
|
54,001 |
|
|
68 |
|
|
0.51 |
% |
|
|
60,003 |
|
|
73 |
|
|
0.49 |
% |
Total
LASG |
|
459,289 |
|
|
9,358 |
|
|
8.19 |
% |
|
|
361,982 |
|
|
7,931 |
|
|
8.79 |
% |
Total |
$ |
702,513 |
|
$ |
12,437 |
|
|
7.12 |
% |
|
$ |
599,400 |
|
$ |
10,896 |
|
|
7.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
2016 |
|
2015 |
|
Average |
|
Interest |
|
|
|
Average |
|
Interest |
|
|
|
Balance (1) |
|
Income (2) |
|
Yield |
|
Balance (1) |
|
Income |
|
Yield |
|
(Dollars in thousands) |
Community Banking |
$ |
218,649 |
|
$ |
10,483 |
|
|
4.79 |
% |
|
$ |
233,506 |
|
$ |
11,599 |
|
|
4.97 |
% |
SBA |
|
23,786 |
|
|
1,448 |
|
|
6.09 |
% |
|
|
2,622 |
|
|
148 |
|
|
5.64 |
% |
LASG: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
147,193 |
|
|
8,987 |
|
|
6.11 |
% |
|
|
76,448 |
|
|
4,924 |
|
|
6.44 |
% |
Purchased |
|
216,763 |
|
|
24,638 |
|
|
11.37 |
% |
|
|
203,822 |
|
|
26,500 |
|
|
13.00 |
% |
Secured
Loans to Broker-Dealers |
|
58,511 |
|
|
293 |
|
|
0.50 |
% |
|
|
44,942 |
|
|
212 |
|
|
0.47 |
% |
Total
LASG |
|
422,467 |
|
|
33,918 |
|
|
8.03 |
% |
|
|
325,212 |
|
|
31,636 |
|
|
9.73 |
% |
Total |
$ |
664,902 |
|
$ |
45,849 |
|
|
6.90 |
% |
|
$ |
561,340 |
|
$ |
43,383 |
|
|
7.73 |
% |
(1) Includes loans held for sale. |
(2) SBA interest income includes SBA fees of $21 thousand and
$33 thousand for the quarter and year ended June 30, 2016,
respectively. |
The yield on purchased loans for the quarter ended June 30, 2016
was 10.9% as compared to 13.4% in the quarter ended June 30, 2015,
due to lower transactional income in the quarter. The following
table details the total return on purchased loans:
|
Total Return on Purchased Loans |
|
Three Months Ended June 30, |
|
2016 |
|
2015 |
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
(Dollars in thousands) |
Regularly scheduled
interest and accretion |
$ |
4,770 |
|
|
8.25 |
% |
|
$ |
4,132 |
|
|
8.43 |
% |
Transactional
income: |
|
|
|
|
|
|
|
|
|
Gain on
loan sales |
|
- |
|
|
0.00 |
% |
|
|
- |
|
|
0.00 |
% |
Gain on
sale of real estate owned |
|
- |
|
|
0.00 |
% |
|
|
188 |
|
|
0.38 |
% |
Other
noninterest income |
|
1 |
|
|
0.00 |
% |
|
|
- |
|
|
0.00 |
% |
Accelerated accretion and loan fees |
|
1,524 |
|
|
2.63 |
% |
|
|
2,243 |
|
|
4.58 |
% |
Total
transactional income |
|
1,525 |
|
|
2.63 |
% |
|
|
2,431 |
|
|
4.96 |
% |
Total |
$ |
6,295 |
|
|
10.88 |
% |
|
$ |
6,563 |
|
|
13.39 |
% |
|
Year Ended June 30, |
|
2016 |
|
2015 |
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
(Dollars in thousands) |
Regularly scheduled
interest and accretion |
$ |
17,382 |
|
|
8.02 |
% |
|
$ |
|
17,327 |
|
|
|
8.48 |
% |
Transactional
income: |
|
|
|
|
|
|
|
|
|
Gain on
loan sales |
|
- |
|
|
0.00 |
% |
|
|
|
190 |
|
|
|
0.09 |
% |
Gain on
sale of real estate owned |
|
23 |
|
|
0.01 |
% |
|
|
|
607 |
|
|
|
0.30 |
% |
Other
noninterest income (loss) |
|
12 |
|
|
0.00 |
% |
|
|
|
(69 |
) |
|
|
-0.03 |
% |
Accelerated accretion and loan fees |
|
7,256 |
|
|
3.35 |
% |
|
|
|
9,173 |
|
|
|
4.49 |
% |
Total
transactional income |
|
7,291 |
|
|
3.36 |
% |
|
|
|
9,901 |
|
|
|
4.85 |
% |
Total |
$ |
24,673 |
|
|
11.38 |
% |
|
$ |
|
27,228 |
|
|
|
13.33 |
% |
(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, on an annualized basis. The total
return does not include the effect of purchased loan charge-offs or
recoveries in the quarter. |
|
2. Noninterest income decreased by $656 thousand for the quarter
ended June 30, 2016, compared to the quarter ended June 30, 2015,
principally due to a decrease in gains realized on sale of
portfolio loans. The recent quarter includes gains realized on sale
of SBA and USDA loans of $1.6 million, compared to $1.9 million in
the quarter ended June 30, 2015. Additionally, there was a decrease
of $251 thousand in gain recognized on real estate owned and other
repossessed collateral.
3. Noninterest expense increased by $569 thousand for the
quarter ended June 30, 2016, compared to the quarter ended June 30,
2015, primarily due to an increase in salaries and employee
benefits of $306 thousand, largely attributable to higher employee
headcount.
At June 30, 2016, nonperforming assets totaled $9.5 million, or
0.96% of total assets, as compared to $12.4 million, or 1.46% of
total assets, at June 30, 2015.
At June 30, 2016, the Company’s Tier 1 Leverage Ratio was 13.3%,
compared to 14.5% at June 30, 2015, and the Total Capital Ratio was
20.4%, an increase from 20.1% at June 30, 2015. The increase
resulted primarily from the issuance of $15.05 million of
subordinated notes which qualify as Tier 2 Capital, offset by
balance sheet growth and the effect of purchases under the
Company’s share repurchase program in the current fiscal year.
Investor Call InformationRichard Wayne, Chief
Executive Officer of Northeast Bancorp, and Brian Shaughnessy,
Chief Financial Officer of Northeast Bancorp, will host a
conference call to discuss fourth quarter earnings and
business outlook at 10:00 a.m. Eastern Time on Thursday, July
28th. Investors can access the call by dialing
877.878.2762 and entering the following passcode: 49101566. 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 traditional banking services through the
Community Banking Division, which operates ten full-service
branches that serve customers located in western, central, and
southern Maine. From our Maine and Boston locations, we also lend
throughout the New England area. Our Loan Acquisition and Servicing
Group (“LASG”) purchases and originates commercial loans on a
nationwide basis. In addition, our SBA National Division supports
the needs of growing businesses nationally. ableBanking, a division
of Northeast Bank, offers savings products to consumers online.
Information regarding Northeast Bank can be found on its website 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 stockholders’ equity, and tangible book
value per share. 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; 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) |
|
June 30, 2016 |
|
June 30, 2015 |
Assets |
|
|
|
|
|
Cash and due from
banks |
$ |
|
2,459 |
|
|
$ |
|
2,789 |
|
Short-term
investments |
|
|
148,698 |
|
|
|
|
87,061 |
|
Total cash
and cash equivalents |
|
|
151,157 |
|
|
|
|
89,850 |
|
Available-for-sale
securities, at fair value |
|
|
100,572 |
|
|
|
|
101,908 |
|
|
|
|
|
|
|
Residential real estate
loans held for sale |
|
|
6,449 |
|
|
|
|
7,093 |
|
SBA loans held for
sale |
|
|
1,070 |
|
|
|
|
1,942 |
|
Total loans
held for sale |
|
|
7,519 |
|
|
|
|
9,035 |
|
|
|
|
|
|
|
Loans |
|
|
|
|
|
Commercial
real estate |
|
|
426,568 |
|
|
|
|
348,676 |
|
Residential
real estate |
|
|
113,962 |
|
|
|
|
132,669 |
|
Commercial
and industrial |
|
|
145,956 |
|
|
|
|
123,133 |
|
Consumer |
|
|
5,950 |
|
|
|
|
7,659 |
|
Total
loans |
|
|
692,436 |
|
|
|
|
612,137 |
|
Less:
Allowance for loan losses |
|
|
2,350 |
|
|
|
|
1,926 |
|
Loans,
net |
|
|
690,086 |
|
|
|
|
610,211 |
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
7,801 |
|
|
|
|
8,253 |
|
Real estate owned and
other possessed collateral, net |
|
|
1,652 |
|
|
|
|
1,651 |
|
Federal Home Loan Bank
stock, at cost |
|
|
2,408 |
|
|
|
|
4,102 |
|
Intangible assets,
net |
|
|
1,732 |
|
|
|
|
2,209 |
|
Bank owned life
insurance |
|
|
15,725 |
|
|
|
|
15,276 |
|
Other assets |
|
|
7,501 |
|
|
|
|
8,223 |
|
Total
assets |
$ |
|
986,153 |
|
|
$ |
|
850,718 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Deposits |
|
|
|
|
|
Demand |
$ |
|
66,686 |
|
|
$ |
|
60,383 |
|
Savings and
interest checking |
|
|
107,218 |
|
|
|
|
100,134 |
|
Money
market |
|
|
275,437 |
|
|
|
|
168,527 |
|
Time |
|
|
351,091 |
|
|
|
|
345,715 |
|
Total
deposits |
|
|
800,432 |
|
|
|
|
674,759 |
|
|
|
|
|
|
|
Federal Home Loan Bank
advances |
|
|
30,075 |
|
|
|
|
30,188 |
|
Wholesale repurchase
agreements |
|
|
- |
|
|
|
|
10,037 |
|
Short-term
borrowings |
|
|
- |
|
|
|
|
2,349 |
|
Junior subordinated
debentures issued to affiliated trusts |
|
|
23,331 |
|
|
|
|
8,626 |
|
Capital lease
obligation |
|
|
1,128 |
|
|
|
|
1,368 |
|
Other liabilities |
|
|
14,596 |
|
|
|
|
10,664 |
|
Total
liabilities |
|
|
869,562 |
|
|
|
|
737,991 |
|
Commitments and
contingencies |
|
|
- |
|
|
|
|
- |
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
Preferred stock, $1.00
par value, 1,000,000 shares authorized; no shares |
|
|
|
|
issued and outstanding
at June 30, 2016 and June 30, 2015 |
|
|
- |
|
|
|
|
- |
|
Voting common stock,
$1.00 par value, 25,000,000 shares authorized; |
|
|
|
|
|
8,089,790
and 8,575,144 shares issued and outstanding at |
|
|
|
|
June 30,
2016 and June 30, 2015, respectively |
|
|
8,089 |
|
|
|
|
8,575 |
|
Non-voting common
stock, $1.00 par value, 3,000,000 shares authorized; |
|
|
|
|
|
1,227,683 and 1,012,739 shares issued and outstanding at June 30,
2016 and June 30, 2015, respectively |
|
1,228 |
|
|
|
1,013 |
|
Additional paid-in
capital |
|
|
83,020 |
|
|
|
|
85,506 |
|
Retained earnings |
|
|
26,160 |
|
|
|
|
18,921 |
|
Accumulated other
comprehensive loss |
|
|
(1,906 |
) |
|
|
|
(1,288 |
) |
Total
stockholders' equity |
|
|
116,591 |
|
|
|
|
112,727 |
|
Total
liabilities and stockholders' equity |
$ |
|
986,153 |
|
|
$ |
|
850,718 |
|
NORTHEAST BANCORP AND SUBSIDIARY |
CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
(Dollars in
thousands, except share and per share data) |
|
Three Months Ended June 30, |
|
Year Ended June 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
$ |
|
12,437 |
|
|
$ |
10,896 |
|
$ |
|
45,849 |
|
|
$ |
43,383 |
Interest
on available-for-sale securities |
|
|
230 |
|
|
|
215 |
|
|
|
930 |
|
|
|
913 |
Other
interest and dividend income |
|
|
161 |
|
|
|
74 |
|
|
|
456 |
|
|
|
292 |
Total
interest and dividend income |
|
|
12,828 |
|
|
|
11,185 |
|
|
|
47,235 |
|
|
|
44,588 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,671 |
|
|
|
1,329 |
|
|
|
6,027 |
|
|
|
5,010 |
Federal
Home Loan Bank advances |
|
|
253 |
|
|
|
256 |
|
|
|
1,027 |
|
|
|
1,101 |
Wholesale
repurchase agreements |
|
|
- |
|
|
|
72 |
|
|
|
67 |
|
|
|
288 |
Short-term borrowings |
|
|
1 |
|
|
|
8 |
|
|
|
20 |
|
|
|
29 |
Junior
subordinated debentures issued to affiliated trusts |
|
|
175 |
|
|
|
152 |
|
|
|
651 |
|
|
|
718 |
Obligation under capital lease agreements |
|
|
15 |
|
|
|
18 |
|
|
|
63 |
|
|
|
74 |
Total
interest expense |
|
|
2,115 |
|
|
|
1,835 |
|
|
|
7,855 |
|
|
|
7,220 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and
dividend income before provision for loan losses |
|
|
10,713 |
|
|
|
9,350 |
|
|
|
39,380 |
|
|
|
37,368 |
Provision for loan
losses |
|
|
317 |
|
|
|
240 |
|
|
|
1,618 |
|
|
|
717 |
Net interest and
dividend income after provision for loan losses |
|
|
10,396 |
|
|
|
9,110 |
|
|
|
37,762 |
|
|
|
36,651 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
Fees for
other services to customers |
|
|
393 |
|
|
|
406 |
|
|
|
1,657 |
|
|
|
1,494 |
Gain on
sales of residential loans held for sale |
|
|
392 |
|
|
|
493 |
|
|
|
1,684 |
|
|
|
1,877 |
Gain on
sales of portfolio loans |
|
|
1,620 |
|
|
|
1,926 |
|
|
|
4,178 |
|
|
|
2,821 |
(Loss)
gain recognized on real estate owned and other repossessed
collateral, net |
|
|
(127 |
) |
|
|
124 |
|
|
|
(255 |
) |
|
|
428 |
Bank-owned life insurance income |
|
|
113 |
|
|
|
111 |
|
|
|
449 |
|
|
|
440 |
Other
noninterest income |
|
|
20 |
|
|
|
7 |
|
|
|
60 |
|
|
|
29 |
Total
noninterest income |
|
|
2,411 |
|
|
|
3,067 |
|
|
|
7,773 |
|
|
|
7,089 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
5,592 |
|
|
|
5,286 |
|
|
|
19,548 |
|
|
|
18,817 |
Occupancy
and equipment expense |
|
|
1,291 |
|
|
|
1,277 |
|
|
|
5,227 |
|
|
|
4,939 |
Professional fees |
|
|
421 |
|
|
|
505 |
|
|
|
1,463 |
|
|
|
1,658 |
Data
processing fees |
|
|
379 |
|
|
|
325 |
|
|
|
1,487 |
|
|
|
1,355 |
Marketing
expense |
|
|
85 |
|
|
|
41 |
|
|
|
285 |
|
|
|
244 |
Loan
acquisition and collection expense |
|
|
407 |
|
|
|
362 |
|
|
|
1,368 |
|
|
|
1,458 |
FDIC
insurance premiums |
|
|
135 |
|
|
|
133 |
|
|
|
489 |
|
|
|
504 |
Intangible asset amortization |
|
|
108 |
|
|
|
129 |
|
|
|
477 |
|
|
|
589 |
Other
noninterest expense |
|
|
978 |
|
|
|
769 |
|
|
|
3,468 |
|
|
|
3,040 |
Total
noninterest expense |
|
|
9,396 |
|
|
|
8,827 |
|
|
|
33,812 |
|
|
|
32,604 |
Income before income
tax expense |
|
|
3,411 |
|
|
|
3,350 |
|
|
|
11,723 |
|
|
|
11,136 |
Income tax expense |
|
|
1,212 |
|
|
|
1,185 |
|
|
|
4,104 |
|
|
|
3,995 |
Net income |
$ |
|
2,199 |
|
|
$ |
2,165 |
|
$ |
|
7,619 |
|
|
$ |
7,141 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
9,319,522 |
|
|
|
9,773,228 |
|
|
|
9,474,999 |
|
|
|
9,980,733 |
Diluted |
|
|
9,342,439 |
|
|
|
9,773,228 |
|
|
|
9,484,635 |
|
|
|
9,980,733 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
|
0.24 |
|
|
$ |
0.22 |
|
$ |
|
0.80 |
|
|
$ |
0.72 |
Diluted |
|
|
0.24 |
|
|
|
0.22 |
|
|
|
0.80 |
|
|
|
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per common share |
$ |
|
0.01 |
|
|
$ |
0.01 |
|
$ |
|
0.04 |
|
|
$ |
0.04 |
NORTHEAST BANCORP AND SUBSIDIARY |
CONSOLIDATED AVERAGE BALANCE SHEETS AND ANNUALIZED
YIELDS |
(Unaudited) |
(Dollars
in thousands) |
|
Three Months Ended June 30, |
|
2016 |
|
2015 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
93,289 |
|
$ |
230 |
|
|
0.99 |
% |
|
$ |
103,988 |
|
$ |
215 |
|
|
0.83 |
% |
Loans (1)
(2) (3) |
|
702,513 |
|
|
12,455 |
|
|
7.13 |
% |
|
|
599,400 |
|
|
10,914 |
|
|
7.30 |
% |
Federal
Home Loan Bank stock |
|
2,570 |
|
|
23 |
|
|
3.60 |
% |
|
|
4,102 |
|
|
18 |
|
|
1.76 |
% |
Short-term investments (4) |
|
113,636 |
|
|
138 |
|
|
0.49 |
% |
|
|
91,060 |
|
|
56 |
|
|
0.25 |
% |
Total interest-earning
assets |
|
912,008 |
|
|
12,846 |
|
|
5.67 |
% |
|
|
798,550 |
|
|
11,203 |
|
|
5.63 |
% |
Cash and due from
banks |
|
4,171 |
|
|
|
|
|
|
|
2,553 |
|
|
|
|
|
Other non-interest
earning assets |
|
36,411 |
|
|
|
|
|
|
|
36,334 |
|
|
|
|
|
Total assets |
$ |
952,590 |
|
|
|
|
|
|
$ |
837,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
accounts |
$ |
72,012 |
|
$ |
51 |
|
|
0.28 |
% |
|
$ |
64,533 |
|
$ |
41 |
|
|
0.25 |
% |
Money
market accounts |
|
254,833 |
|
|
573 |
|
|
0.90 |
% |
|
|
166,690 |
|
|
336 |
|
|
0.81 |
% |
Savings
accounts |
|
36,167 |
|
|
12 |
|
|
0.13 |
% |
|
|
35,835 |
|
|
12 |
|
|
0.13 |
% |
Time
deposits |
|
356,418 |
|
|
1,035 |
|
|
1.17 |
% |
|
|
342,849 |
|
|
940 |
|
|
1.10 |
% |
Total
interest-bearing deposits |
|
719,430 |
|
|
1,671 |
|
|
0.93 |
% |
|
|
609,907 |
|
|
1,329 |
|
|
0.87 |
% |
Short-term borrowings |
|
441 |
|
|
1 |
|
|
0.91 |
% |
|
|
1,754 |
|
|
8 |
|
|
1.83 |
% |
Borrowed
funds |
|
30,089 |
|
|
253 |
|
|
3.38 |
% |
|
|
40,259 |
|
|
328 |
|
|
3.27 |
% |
Junior
subordinated debentures |
|
8,954 |
|
|
175 |
|
|
7.86 |
% |
|
|
8,602 |
|
|
152 |
|
|
7.09 |
% |
Capital
lease obligations |
|
1,149 |
|
|
15 |
|
|
5.25 |
% |
|
|
1,384 |
|
|
18 |
|
|
5.22 |
% |
Total interest-bearing
liabilities |
|
760,063 |
|
|
2,115 |
|
|
1.12 |
% |
|
|
661,906 |
|
|
1,835 |
|
|
1.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and
escrow accounts |
|
68,314 |
|
|
|
|
|
|
|
56,754 |
|
|
|
|
|
Other liabilities |
|
8,863 |
|
|
|
|
|
|
|
6,251 |
|
|
|
|
|
Total liabilities |
|
837,240 |
|
|
|
|
|
|
|
724,911 |
|
|
|
|
|
Stockholders'
equity |
|
115,350 |
|
|
|
|
|
|
|
112,526 |
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
952,590 |
|
|
|
|
|
|
$ |
837,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
|
|
$ |
10,731 |
|
|
|
|
|
|
$ |
9,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
|
|
4.55 |
% |
|
|
|
|
|
|
|
|
4.52 |
% |
Net interest margin
(5) |
|
|
|
|
|
|
|
4.73 |
% |
|
|
|
|
|
|
|
|
4.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Interest income and yield are stated on a fully
tax-equivalent basis using a 34% 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) |
|
Year Ended June 30, |
|
2016 |
|
2015 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
100,503 |
|
$ |
930 |
|
|
0.93 |
% |
|
$ |
108,204 |
|
$ |
913 |
|
|
0.84 |
% |
Loans (1)
(2) (3) |
|
664,902 |
|
|
45,921 |
|
|
6.91 |
% |
|
|
561,340 |
|
|
43,456 |
|
|
7.74 |
% |
Federal
Home Loan Bank stock |
|
2,960 |
|
|
113 |
|
|
3.82 |
% |
|
|
4,102 |
|
|
67 |
|
|
1.63 |
% |
Short-term investments (4) |
|
91,563 |
|
|
343 |
|
|
0.37 |
% |
|
|
92,354 |
|
|
225 |
|
|
0.24 |
% |
Total interest-earning
assets |
|
859,928 |
|
|
47,307 |
|
|
5.50 |
% |
|
|
766,000 |
|
|
44,661 |
|
|
5.83 |
% |
Cash and due from
banks |
|
3,596 |
|
|
|
|
|
|
|
2,704 |
|
|
|
|
|
Other non-interest
earning assets |
|
35,607 |
|
|
|
|
|
|
|
33,741 |
|
|
|
|
|
Total assets |
$ |
899,131 |
|
|
|
|
|
|
$ |
802,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
accounts |
$ |
68,304 |
|
$ |
182 |
|
|
0.27 |
% |
|
$ |
63,181 |
|
$ |
162 |
|
|
0.26 |
% |
Money
market accounts |
|
212,102 |
|
|
1,845 |
|
|
0.87 |
% |
|
|
133,266 |
|
|
1,002 |
|
|
0.75 |
% |
Savings
accounts |
|
36,062 |
|
|
48 |
|
|
0.13 |
% |
|
|
34,495 |
|
|
46 |
|
|
0.13 |
% |
Time
deposits |
|
349,978 |
|
|
3,952 |
|
|
1.13 |
% |
|
|
340,046 |
|
|
3,800 |
|
|
1.12 |
% |
Total
interest-bearing deposits |
|
666,446 |
|
|
6,027 |
|
|
0.90 |
% |
|
|
570,988 |
|
|
5,010 |
|
|
0.88 |
% |
Short-term borrowings |
|
1,634 |
|
|
20 |
|
|
1.22 |
% |
|
|
2,578 |
|
|
29 |
|
|
1.12 |
% |
Borrowed
funds |
|
32,432 |
|
|
1,094 |
|
|
3.37 |
% |
|
|
45,661 |
|
|
1,389 |
|
|
3.04 |
% |
Junior
subordinated debentures |
|
8,762 |
|
|
651 |
|
|
7.43 |
% |
|
|
8,531 |
|
|
718 |
|
|
8.42 |
% |
Capital
lease obligations |
|
1,242 |
|
|
63 |
|
|
5.07 |
% |
|
|
1,457 |
|
|
74 |
|
|
5.08 |
% |
Total interest-bearing
liabilities |
|
710,516 |
|
|
7,855 |
|
|
1.11 |
% |
|
|
629,215 |
|
|
7,220 |
|
|
1.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and
escrow accounts |
|
67,041 |
|
|
|
|
|
|
|
54,940 |
|
|
|
|
|
Other liabilities |
|
7,252 |
|
|
|
|
|
|
|
5,913 |
|
|
|
|
|
Total liabilities |
|
784,809 |
|
|
|
|
|
|
|
690,068 |
|
|
|
|
|
Stockholders'
equity |
|
114,322 |
|
|
|
|
|
|
|
112,377 |
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
899,131 |
|
|
|
|
|
|
$ |
802,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
|
|
$ |
39,452 |
|
|
|
|
|
|
$ |
37,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
|
|
4.39 |
% |
|
|
|
|
|
|
|
|
4.68 |
% |
Net interest margin
(5) |
|
|
|
|
|
|
|
4.59 |
% |
|
|
|
|
|
|
|
|
4.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Interest income and yield are stated on a fully
tax-equivalent basis using a 34% 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 |
SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS AND OTHER
DATA |
(Unaudited) |
(Dollars
in thousands, except share and per share data) |
|
Three Months Ended: |
|
June 30, 2016 |
|
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
Net interest
income |
$ |
10,713 |
|
|
$ |
9,254 |
|
|
$ |
10,172 |
|
|
$ |
9,241 |
|
|
$ |
9,350 |
|
Provision for loan
losses |
|
317 |
|
|
|
236 |
|
|
|
896 |
|
|
|
169 |
|
|
|
240 |
|
Noninterest income |
|
2,411 |
|
|
|
2,035 |
|
|
|
1,624 |
|
|
|
1,705 |
|
|
|
3,067 |
|
Noninterest
expense |
|
9,396 |
|
|
|
8,412 |
|
|
|
8,196 |
|
|
|
7,810 |
|
|
|
8,827 |
|
Net income |
|
2,199 |
|
|
|
1,809 |
|
|
|
1,744 |
|
|
|
1,867 |
|
|
|
2,165 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
9,319,522 |
|
|
|
9,456,198 |
|
|
|
9,559,369 |
|
|
|
9,562,812 |
|
|
|
9,773,228 |
|
Diluted |
|
9,342,439 |
|
|
|
9,459,611 |
|
|
|
9,569,585 |
|
|
|
9,562,812 |
|
|
|
9,773,228 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.24 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.20 |
|
|
$ |
0.22 |
|
Diluted |
|
0.24 |
|
|
|
0.19 |
|
|
|
0.18 |
|
|
|
0.20 |
|
|
|
0.22 |
|
Dividends per common
share |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
0.93 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.86 |
% |
|
|
1.04 |
% |
Return on average
equity |
|
7.67 |
% |
|
|
6.33 |
% |
|
|
6.07 |
% |
|
|
6.55 |
% |
|
|
7.72 |
% |
Net interest rate
spread (1) |
|
4.55 |
% |
|
|
4.06 |
% |
|
|
4.67 |
% |
|
|
4.25 |
% |
|
|
4.51 |
% |
Net interest margin
(2) |
|
4.73 |
% |
|
|
4.25 |
% |
|
|
4.87 |
% |
|
|
4.45 |
% |
|
|
4.70 |
% |
Efficiency ratio
(3) |
|
71.59 |
% |
|
|
74.52 |
% |
|
|
69.48 |
% |
|
|
71.35 |
% |
|
|
71.09 |
% |
Noninterest expense to
average total assets |
|
3.97 |
% |
|
|
3.70 |
% |
|
|
3.75 |
% |
|
|
3.59 |
% |
|
|
4.22 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
119.99 |
% |
|
|
120.62 |
% |
|
|
122.48 |
% |
|
|
121.63 |
% |
|
|
120.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
June 30, 2016 |
|
March 31, 2016 |
|
December 31, 2015 |
|
September 30, 2015 |
|
June 30, 2015 |
Nonperforming
loans: |
|
|
|
|
|
|
|
|
|
Originated
portfolio: |
|
|
|
|
|
|
|
|
|
Residential real estate |
$ |
2,613 |
|
|
$ |
3,566 |
|
|
$ |
3,263 |
|
|
$ |
3,165 |
|
|
$ |
3,021 |
|
Commercial real estate |
|
474 |
|
|
|
602 |
|
|
|
399 |
|
|
|
529 |
|
|
|
994 |
|
Home
equity |
|
48 |
|
|
|
- |
|
|
|
11 |
|
|
|
20 |
|
|
|
11 |
|
Commercial and industrial |
|
17 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
Consumer |
|
163 |
|
|
|
216 |
|
|
|
204 |
|
|
|
153 |
|
|
|
190 |
|
Total originated
portfolio |
|
3,315 |
|
|
|
4,386 |
|
|
|
3,879 |
|
|
|
3,869 |
|
|
|
4,218 |
|
Total purchased
portfolio |
|
4,512 |
|
|
|
4,364 |
|
|
|
2,221 |
|
|
|
6,939 |
|
|
|
6,532 |
|
Total nonperforming
loans |
|
7,827 |
|
|
|
8,750 |
|
|
|
6,100 |
|
|
|
10,808 |
|
|
|
10,750 |
|
Real estate owned and
other possessed collateral, net |
|
1,652 |
|
|
|
690 |
|
|
|
1,238 |
|
|
|
1,279 |
|
|
|
1,651 |
|
Total nonperforming
assets |
$ |
9,479 |
|
|
$ |
9,440 |
|
|
$ |
7,338 |
|
|
$ |
12,087 |
|
|
$ |
12,401 |
|
|
|
|
|
|
|
|
|
|
|
Past due loans to total
loans |
|
1.00 |
% |
|
|
2.52 |
% |
|
|
2.48 |
% |
|
|
1.35 |
% |
|
|
1.08 |
% |
Nonperforming loans to
total loans |
|
1.13 |
% |
|
|
1.25 |
% |
|
|
0.90 |
% |
|
|
1.73 |
% |
|
|
1.76 |
% |
Nonperforming assets to
total assets |
|
0.96 |
% |
|
|
1.02 |
% |
|
|
0.82 |
% |
|
|
1.41 |
% |
|
|
1.46 |
% |
Allowance for loan
losses to total loans |
|
0.34 |
% |
|
|
0.32 |
% |
|
|
0.31 |
% |
|
|
0.33 |
% |
|
|
0.31 |
% |
Allowance for loan
losses to nonperforming loans |
|
30.02 |
% |
|
|
25.41 |
% |
|
|
34.90 |
% |
|
|
19.11 |
% |
|
|
17.92 |
% |
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans to risk-based capital (4) |
|
174.12 |
% |
|
|
217.09 |
% |
|
|
204.91 |
% |
|
|
195.50 |
% |
|
|
187.32 |
% |
Net loans to core
deposits (5) |
|
87.15 |
% |
|
|
93.48 |
% |
|
|
94.37 |
% |
|
|
91.04 |
% |
|
|
91.85 |
% |
Purchased loans to
total loans, including held for sale |
|
34.25 |
% |
|
|
33.17 |
% |
|
|
32.90 |
% |
|
|
33.82 |
% |
|
|
32.61 |
% |
Equity to total
assets |
|
11.82 |
% |
|
|
12.41 |
% |
|
|
12.82 |
% |
|
|
13.25 |
% |
|
|
13.25 |
% |
Common equity tier 1
capital ratio |
|
17.97 |
% |
|
|
17.46 |
% |
|
|
18.11 |
% |
|
|
19.69 |
% |
|
|
19.82 |
% |
Total capital ratio
(6) |
|
20.39 |
% |
|
|
17.78 |
% |
|
|
18.43 |
% |
|
|
20.03 |
% |
|
|
20.14 |
% |
Tier 1 leverage capital
ratio |
|
13.27 |
% |
|
|
13.57 |
% |
|
|
14.31 |
% |
|
|
14.23 |
% |
|
|
14.49 |
% |
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity |
$ |
116,591 |
|
|
$ |
114,526 |
|
|
$ |
114,613 |
|
|
$ |
113,704 |
|
|
$ |
112,727 |
|
Less: Preferred
stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common stockholders'
equity |
|
116,591 |
|
|
|
114,526 |
|
|
|
114,613 |
|
|
|
113,704 |
|
|
|
112,727 |
|
Less: Intangible assets
(7) |
|
(3,503 |
) |
|
|
(3,469 |
) |
|
|
(3,336 |
) |
|
|
(3,388 |
) |
|
|
(3,312 |
) |
Tangible common
stockholders' equity (non-GAAP) |
$ |
113,088 |
|
|
$ |
111,057 |
|
|
$ |
111,277 |
|
|
$ |
110,316 |
|
|
$ |
109,415 |
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
9,317,473 |
|
|
|
9,330,873 |
|
|
|
9,519,729 |
|
|
|
9,592,329 |
|
|
|
9,587,883 |
|
Book value per common
share |
$ |
12.51 |
|
|
$ |
12.27 |
|
|
$ |
12.04 |
|
|
$ |
11.85 |
|
|
$ |
11.76 |
|
Tangible book value per
share (non-GAAP) (8) |
|
12.14 |
|
|
|
11.90 |
|
|
|
11.69 |
|
|
|
11.50 |
|
|
|
11.41 |
|
|
|
|
|
|
|
|
|
|
|
(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 non-interest expense divided by the sum
of net interest income (before the loan loss provision) plus
non-interest 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) The
Company’s adoption of Basel III went into effect as of March 31,
2015. The previous period ratios are the “Total Risk-Based Capital
Ratio.” |
(7) Includes
the core deposit intangible asset, as well as the servicing rights
asset which is included in other assets in the consolidated balance
sheets. |
(8) Tangible
book value per share represents total stockholders' equity less the
sum of preferred stock and intangible assets divided by common
shares outstanding. |
|
For More Information:
Brian Shaughnessy, CFO
Northeast Bank, 500 Canal Street, Lewiston, ME 04240
207.786.3245 ext. 3220
www.northeastbank.com
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