Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based
full-service bank, today reported net income of $15.1 million, or
$1.91 per diluted common share, for the quarter ended June 30,
2024, compared to net income of $12.1 million, or $1.61 per diluted
common share, for the quarter ended June 30, 2023. Net income for
the year ended June 30, 2024 was $58.2 million, or $7.58 per
diluted common share, compared to $44.2 million, or $5.96 per
diluted common share, for the year ended June 30, 2023.
The Board of Directors declared a cash dividend of $0.01 per
share, payable on August 23, 2024, to shareholders of record as of
August 9, 2024.
“We reported strong results in our fourth fiscal quarter,
supported by strong volume and yields in our National Lending
Division,” said Rick Wayne, Chief Executive Officer. “Our National
Lending Division portfolio earned a yield of 9.37% for the quarter
ended June 30, 2024, as compared to 8.71% for the quarter ended
June 30, 2023. For the year ended June 30, 2024, the National
Lending Division portfolio increased by $222.1 million, or 9.0%,
compared with June 30, 2023, driven by fiscal year-to-date
originations of $399.1 million and purchases of $382.0 million.”
Mr. Wayne continued, “For the quarter, we are reporting earnings of
$1.91 per diluted common share, a return on average equity of
16.6%, and a return on average assets of 2.0%.”
As of June 30, 2024, total assets were $3.13 billion, an
increase of $262.3 million, or 9.1%, from total assets of $2.87
billion as of June 30, 2023.
1. The following table highlights the changes
in the loan portfolio for the three months and year ended June 30,
2024:
|
Loan Portfolio Changes |
|
Three Months Ended June 30, 2024 |
|
June 30, 2024Balance |
|
March 31, 2024Balance |
|
Change ($) |
|
Change (%) |
|
(Dollars in thousands) |
National Lending Purchased |
$ |
1,708,551 |
|
$ |
1,620,409 |
|
$ |
88,142 |
|
|
5.44 |
% |
National Lending
Originated |
|
981,497 |
|
|
975,876 |
|
|
5,621 |
|
|
0.58 |
% |
SBA National |
|
48,405 |
|
|
36,375 |
|
|
12,030 |
|
|
33.07 |
% |
Community Banking |
|
22,704 |
|
|
24,121 |
|
|
(1,417 |
) |
|
(5.87 |
%) |
Total |
$ |
2,761,157 |
|
$ |
2,656,781 |
|
$ |
104,376 |
|
|
3.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, 2024 |
|
June 30, 2024Balance |
|
June 30, 2023Balance |
|
Change ($) |
|
Change (%) |
|
(Dollars in thousands) |
National Lending
Purchased |
$ |
1,708,551 |
|
$ |
1,480,119 |
|
$ |
228,432 |
|
|
15.43 |
% |
National Lending
Originated |
|
981,497 |
|
|
987,832 |
|
|
(6,335 |
) |
|
(0.64 |
%) |
SBA National |
|
48,405 |
|
|
24,873 |
|
|
23,532 |
|
|
94.61 |
% |
Community Banking |
|
22,704 |
|
|
27,536 |
|
|
(4,832 |
) |
|
(17.55 |
%) |
Total |
$ |
2,761,157 |
|
$ |
2,520,360 |
|
$ |
240,797 |
|
|
9.55 |
% |
Loans generated by the Bank's National Lending Division for the
quarter ended June 30, 2024 totaled $257.8 million, which consisted
of $143.6 million of purchased loans, at an average price of 89.4%
of unpaid principal balance, and $114.3 million of originated
loans.
An overview of the Bank’s National Lending
Division portfolio follows:
|
National Lending Portfolio |
|
Three Months Ended June 30, |
|
2024 |
|
|
2023 |
|
|
Purchased |
|
Originated |
|
Total |
|
Purchased |
|
Originated |
|
Total |
|
(Dollars in thousands) |
Loans purchased or originated
during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid principal balance |
$ |
160,627 |
|
|
$ |
114,272 |
|
|
$ |
274,899 |
|
|
$ |
54,253 |
|
|
$ |
84,171 |
|
|
$ |
138,424 |
|
Net investment basis |
|
143,571 |
|
|
|
114,272 |
|
|
|
257,843 |
|
|
|
48,783 |
|
|
|
84,171 |
|
|
|
132,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield |
|
9.18 |
% |
|
|
9.68 |
% |
|
|
9.37 |
% |
|
|
8.12 |
% |
|
|
9.58 |
% |
|
|
8.71 |
% |
Total Return on Purchased Loans (1) |
|
9.47 |
% |
|
|
N/A |
|
|
|
9.47 |
% |
|
|
8.12 |
% |
|
|
N/A |
|
|
|
8.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
2024 |
|
|
2023 |
|
|
Purchased |
|
Originated |
|
Total |
|
Purchased |
|
Originated |
|
Total |
|
(Dollars in thousands) |
Loans purchased or originated
during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid principal balance |
$ |
432,367 |
|
|
$ |
399,149 |
|
|
$ |
831,516 |
|
|
$ |
1,314,783 |
|
|
$ |
556,991 |
|
|
$ |
1,871,774 |
|
Net investment basis |
|
382,047 |
|
|
|
399,149 |
|
|
|
781,196 |
|
|
|
1,143,786 |
|
|
|
556,991 |
|
|
|
1,700,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield |
|
9.01 |
% |
|
|
9.90 |
% |
|
|
9.34 |
% |
|
|
7.93 |
% |
|
|
8.84 |
% |
|
|
8.36 |
% |
Total Return on Purchased Loans (1) |
|
9.11 |
% |
|
|
N/A |
|
|
|
9.11 |
% |
|
|
7.93 |
% |
|
|
N/A |
|
|
|
7.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans as of period
end: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid principal balance |
$ |
1,886,383 |
|
|
$ |
981,497 |
|
|
$ |
2,867,880 |
|
|
$ |
1,667,947 |
|
|
$ |
987,832 |
|
|
$ |
2,655,779 |
|
Net investment basis |
|
1,708,551 |
|
|
|
981,497 |
|
|
|
2,690,048 |
|
|
|
1,480,119 |
|
|
|
987,832 |
|
|
|
2,467,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The total return on purchased loans represents scheduled
accretion, accelerated accretion, gains (losses) on real estate
owned, release of allowance for credit losses on purchased loans,
and other noninterest income recorded during the period divided by
the average invested balance 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 $402.3 million, or
20.8%, from June 30, 2023. The increase was primarily attributable
to increases in time deposits of $387.0 million, or 42.1%, and
savings and interest checking deposits of $135.7 million, or 22.8%,
partially offset by a decrease in money market deposits of $123.4
million, or 44.4%. The significant drivers in the change in time
deposits were the increase in brokered time deposits, which
increased by $240.6 million, and Community Banking Division time
deposits, which increased by $187.9 million compared to June 30,
2023.3. Federal Home Loan Bank (“FHLB”) advances
decreased by $217.4 million, or 38.6%, from June 30, 2023. The
decrease was attributable to the Bank’s decision to pay down
advances funded with brokered and other time
deposits.4. Shareholders’ equity increased by
$80.0 million, or 27.0%, from June 30, 2023, primarily due to net
income of $58.2 million, the issuance of 342 thousand shares of
voting common stock, which added $18.2 million to shareholders’
equity, stock-based compensation of $5.3 million, and other
miscellaneous items that resulted in a net decrease of $1.8 million
to shareholders’ equity.
Net income increased by $3.0 million to $15.1 million for the
quarter ended June 30, 2024, compared to net income of $12.1
million for the quarter ended June 30, 2023.
1. Net interest and dividend income before
provision for credit losses increased by $3.8 million to $37.9
million for the quarter ended June 30, 2024, compared to $34.1
million for the quarter ended June 30, 2023. The increase was
primarily due to the following:
- An increase in interest income earned on loans of $8.1 million,
primarily due to an increase in interest income earned on the
National Lending Division’s purchased and originated portfolios,
due to higher rates earned on both portfolios and higher average
balances in the purchased portfolio;
- An increase in interest income earned on short-term investments
of $477 thousand, due to higher rates earned and higher average
balances; and
- A decrease in FHLB borrowings interest expense of $1.6 million,
primarily due to lower average balances; partially offset by,
- An increase in deposit interest expense of $6.5 million,
primarily due to higher rates in interest-bearing deposits.
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, |
|
2024 |
|
|
2023 |
|
|
Average |
|
Interest |
|
|
|
Average |
|
Interest |
|
|
|
Balance |
|
Income |
|
Yield |
|
Balance |
|
Income |
|
Yield |
|
(Dollars in thousands) |
Community Banking |
$ |
23,511 |
|
$ |
381 |
|
6.52 |
% |
|
$ |
28,071 |
|
$ |
427 |
|
6.10 |
% |
SBA National |
|
40,004 |
|
|
1,437 |
|
14.45 |
% |
|
|
25,706 |
|
|
705 |
|
11.00 |
% |
National Lending: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
963,946 |
|
|
23,204 |
|
9.68 |
% |
|
|
994,616 |
|
|
23,762 |
|
9.58 |
% |
Purchased |
|
1,645,647 |
|
|
37,562 |
|
9.18 |
% |
|
|
1,461,164 |
|
|
29,584 |
|
8.12 |
% |
Total National Lending |
|
2,609,593 |
|
|
60,766 |
|
9.37 |
% |
|
|
2,455,780 |
|
|
53,346 |
|
8.71 |
% |
Total |
$ |
2,673,108 |
|
$ |
62,584 |
|
9.42 |
% |
|
$ |
2,509,557 |
|
|
54,478 |
|
8.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
2024 |
|
|
2023 |
|
|
Average |
|
Interest |
|
|
|
Average |
|
Interest |
|
|
|
Balance |
|
Income |
|
Yield |
|
Balance |
|
Income |
|
Yield |
|
(Dollars in thousands) |
Community Banking |
$ |
25,267 |
|
$ |
1,622 |
|
6.42 |
% |
|
$ |
30,271 |
|
$ |
1,915 |
|
6.33 |
% |
SBA National |
|
32,581 |
|
|
4,270 |
|
13.11 |
% |
|
|
28,138 |
|
|
2,896 |
|
10.29 |
% |
National Lending: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
954,316 |
|
|
94,488 |
|
9.90 |
% |
|
|
922,438 |
|
|
81,534 |
|
8.84 |
% |
Purchased |
|
1,580,485 |
|
|
142,342 |
|
9.01 |
% |
|
|
1,040,940 |
|
|
82,549 |
|
7.93 |
% |
Total National Lending |
|
2,534,801 |
|
|
236,830 |
|
9.34 |
% |
|
|
1,963,378 |
|
|
164,083 |
|
8.36 |
% |
Total |
$ |
2,592,649 |
|
$ |
242,722 |
|
9.36 |
% |
|
$ |
2,021,787 |
|
|
168,894 |
|
8.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 quarter ended June 30, 2023, transactional income
decreased by $503 thousand for the quarter ended June 30, 2024, and
regularly scheduled interest and accretion increased by $9.7
million primarily due to the increase in average balances. The
total return on purchased loans for the quarter ended June 30, 2024
was 9.5%, an increase from 8.1% for the quarter ended June 30,
2023. The following table details the total return on purchased
loans:
|
Total Return on Purchased Loans |
|
Three Months Ended June 30, |
|
2024 |
|
|
2023 |
|
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
(Dollars in thousands) |
Regularly scheduled interest and accretion |
$ |
34,504 |
|
8.43 |
% |
|
$ |
24,821 |
|
6.81 |
% |
Transactional income: |
|
|
|
|
|
|
|
|
|
Release of allowance for credit losses on purchased loans |
|
1,202 |
|
0.29 |
% |
|
|
- |
|
0.00 |
% |
Accelerated accretion and loan fees |
|
3,058 |
|
0.75 |
% |
|
|
4,763 |
|
1.31 |
% |
Total transactional income |
|
4,260 |
|
1.04 |
% |
|
|
4,763 |
|
1.31 |
% |
Total |
$ |
38,764 |
|
9.47 |
% |
|
$ |
29,584 |
|
8.12 |
% |
|
|
|
Year Ended June 30, |
|
2024 |
|
|
2023 |
|
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
(Dollars in thousands) |
Regularly scheduled interest
and accretion |
$ |
133,009 |
|
8.42 |
% |
|
$ |
69,788 |
|
6.70 |
% |
Transactional income: |
|
|
|
|
|
|
|
|
|
Release of allowance for credit losses on purchased loans |
|
1,558 |
|
0.10 |
% |
|
|
- |
|
0.00 |
% |
Accelerated accretion and loan fees |
|
9,333 |
|
0.59 |
% |
|
|
12,761 |
|
1.23 |
% |
Total transactional income |
|
10,891 |
|
0.69 |
% |
|
|
12,761 |
|
1.23 |
% |
Total |
$ |
143,900 |
|
9.11 |
% |
|
$ |
82,549 |
|
7.93 |
% |
(1) The total return on purchased loans
represents scheduled accretion, accelerated accretion, and gains
(losses) on real estate owned, and release of allowance for credit
losses on purchased loans 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. Total return is considered a non-GAAP
financial measure.2. Provision for credit losses
increased by $94 thousand to a provision of $547 thousand for the
quarter ended June 30, 2024, compared to a provision of $453
thousand in the quarter ended June 30, 2023. The provision for
credit losses for the fourth quarter of fiscal year 2024 was
reported using the Current Expected Credit Loss (“CECL”)
methodology, whereas the fourth quarter of fiscal year 2023
provision for credit losses was reported using the incurred loss
methodology.3. Noninterest income increased by
$980 thousand for the quarter ended June 30, 2024, compared to the
quarter ended June 30, 2023, principally due to an increase in gain
on sale of Small Business Administration (“SBA”) loans of $1.2
million, due to the sale of $26.8 million in SBA loans during the
quarter ended June 30, 2024 as compared to the sale of $5.4 million
during the quarter ended June 30,
2023.4. Noninterest expense increased by $718
thousand for the quarter ended June 30, 2024 compared to the
quarter ended June 30, 2023, primarily due to the following:
- An increase in salaries and employee benefits expense of $634
thousand, primarily due to increases in regular compensation
expense and stock compensation expense; and
- An increase in loan expense of $180 thousand primarily related
to increased expenses in connection with the origination of SBA
7(a) loans; partially offset by,
- A decrease of $195 thousand in deposit insurance expense.
5. Income tax expense increased by $894
thousand to $7.3 million, or an effective tax rate of 32.4%, for
the quarter ended June 30, 2024, compared to $6.4 million, or an
effective tax rate of 34.5%, for the quarter ended June 30, 2023.
The decrease in effective tax rate is primarily due to changes to
state tax apportionment which decreased tax expense during the
quarter ended June 30, 2024, as compared to updates to permanent
differences which increased taxable income during the quarter ended
June 30, 2023.
As of June 30, 2024, nonperforming assets totaled $28.3 million,
or 0.90% of total assets, compared to $15.7 million, or 0.55% of
total assets, as of June 30, 2023.
As of June 30, 2024, past due loans totaled $26.3 million, or
0.95% of total loans, compared to past due loans totaling $13.1
million, or 0.52% of total loans, as of June 30, 2023.
As of June 30, 2024, the Bank’s Tier 1 leverage capital ratio
was 12.3%, compared to 10.4% at June 30, 2023, and the Total
risk-based capital ratio was 14.8% at June 30, 2024, compared to
12.3% at June 30, 2023. Capital ratios increased primarily due to
increased earnings and the Total risk-based capital ratio increased
due to an increase in Tier 2 capital associated with the allowance
for credit losses under CECL.
Investor Call InformationRick Wayne, Chief
Executive Officer, Richard Cohen, Chief Financial Officer, and Pat
Dignan, Chief Operating Officer of Northeast Bank, will host a
conference call to discuss fourth quarter earnings and
business outlook at 10:00 a.m. Eastern Time on Thursday, August
1st. To access the
conference call by phone, please go to this link (Phone
Registration), and you will be provided with dial in details. The
call will be available via live webcast, which can be viewed by
accessing the Bank’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 BankNortheast Bank (NASDAQ:
NBN) is a full-service bank headquartered in Portland, Maine. We
offer personal and business banking services to the Maine market
via seven branches. Our National Lending Division purchases and
originates commercial loans on a nationwide basis. 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. The Bank’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. We may also make forward-looking statements in other
documents we file with the Federal Deposit Insurance Corporation
(the “FDIC”), in our annual reports to our shareholders, in press
releases and other written materials, and in oral statements made
by our officers, directors or employees. You can identify
forward-looking statements by the use of the words “believe,”
“expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,”
“will,” “should,” and other expressions that predict or indicate
future events and trends and which do not relate to historical
matters. Although the Bank 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 Bank’s control. The Bank’s actual results could differ
materially from those projected in the forward-looking statements
as a result of, among other factors, changes in general business
and economic conditions on a national basis and in the local
markets in which the Bank operates, including changes which
adversely affect borrowers’ ability to service and repay loans;
changes in customer behavior due to political, business and
economic conditions, including inflation and concerns about
liquidity; turbulence in the capital and debt markets; reductions
in net interest income resulting from interest rate volatility as
well as changes in the balances and mix of loans and deposits;
changes in interest rates and real estate values; changes in loan
collectability and increases in defaults and charge-off rates;
decreases in the value of securities and other assets, adequacy of
credit loss reserves, or deposit levels necessitating increased
borrowing to fund loans and investments; changing government
regulation; competitive pressures from other financial
institutions; changes in legislation or regulation and accounting
principles, policies and guidelines; cybersecurity incidents,
fraud, natural disasters, and future pandemics; the risk that the
Bank may not be successful in the implementation of its business
strategy; the risk that intangibles recorded in the Bank’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 Bank’s Annual Report on Form 10-K
and updated by our Quarterly Reports on Form 10-Q and other filings
submitted to the FDIC. These statements speak only as of the date
of this release and the Bank 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
BANK |
BALANCE
SHEETS |
(Unaudited) |
(Dollars in
thousands, except share and per share data) |
|
June 30, 2024 |
|
June 30, 2023 |
|
Assets |
|
|
|
|
|
|
Cash and due from banks |
$ |
2,711 |
|
|
$ |
2,515 |
|
|
Short-term investments |
|
239,447 |
|
|
|
195,394 |
|
|
Total cash and cash equivalents |
|
242,158 |
|
|
|
197,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale debt
securities, at fair value |
|
48,978 |
|
|
|
53,403 |
|
|
Equity securities, at fair
value |
|
7,013 |
|
|
|
6,771 |
|
|
Total investment securities |
|
55,991 |
|
|
|
60,174 |
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
Commercial real estate |
|
2,028,280 |
|
|
|
1,940,563 |
|
|
Commercial and industrial |
|
633,352 |
|
|
|
499,815 |
|
|
Residential real estate |
|
99,234 |
|
|
|
79,497 |
|
|
Consumer |
|
291 |
|
|
|
485 |
|
|
Total loans |
|
2,761,157 |
|
|
|
2,520,360 |
|
|
Less: Allowance for credit losses |
|
26,709 |
|
|
|
7,304 |
|
|
Loans, net |
|
2,734,448 |
|
|
|
2,513,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
27,144 |
|
|
|
27,737 |
|
|
Federal Home Loan Bank stock,
at cost |
|
15,751 |
|
|
|
24,644 |
|
|
Loan servicing rights,
net |
|
984 |
|
|
|
1,530 |
|
|
Bank-owned life insurance |
|
18,830 |
|
|
|
18,364 |
|
|
Other assets |
|
36,897 |
|
|
|
26,524 |
|
|
Total assets |
$ |
3,132,203 |
|
|
$ |
2,869,938 |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Demand |
$ |
146,727 |
|
|
$ |
143,738 |
|
|
Savings and interest checking |
|
732,029 |
|
|
|
596,347 |
|
|
Money market |
|
154,504 |
|
|
|
277,939 |
|
|
Time |
|
1,306,203 |
|
|
|
919,183 |
|
|
Total deposits |
|
2,339,463 |
|
|
|
1,937,207 |
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank and
other advances |
|
345,190 |
|
|
|
562,615 |
|
|
Lease liability |
|
20,252 |
|
|
|
21,918 |
|
|
Other liabilities |
|
50,664 |
|
|
|
51,535 |
|
|
Total liabilities |
|
2,755,569 |
|
|
|
2,573,275 |
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
Preferred stock, $1.00 par
value, 1,000,000 shares authorized; no shares |
|
|
|
|
|
issued and outstanding at June 30, 2024 and June 30, 2023 |
|
- |
|
|
|
- |
|
|
Voting common stock, $1.00 par
value, 25,000,000 shares authorized; |
|
|
|
|
|
|
8,127,690 and 7,668,650 shares issued and outstanding at |
|
|
|
|
|
June 30, 2024 and June 30, 2023, respectively |
|
8,128 |
|
|
|
7,669 |
|
|
Non-voting common stock, $1.00
par value, 3,000,000 shares authorized; |
|
|
|
|
|
|
No shares issued and outstanding at June 30, 2024 and June 30,
2023 |
- |
|
|
- |
|
|
Additional paid-in
capital |
|
64,762 |
|
|
|
42,840 |
|
|
Retained earnings |
|
303,927 |
|
|
|
246,872 |
|
|
Accumulated other
comprehensive loss |
|
(183 |
) |
|
|
(718 |
) |
|
Total shareholders' equity |
|
376,634 |
|
|
|
296,663 |
|
|
Total liabilities and shareholders' equity |
$ |
3,132,203 |
|
|
$ |
2,869,938 |
|
|
NORTHEAST
BANK |
STATEMENTS
OF INCOME |
(Unaudited) |
(Dollars in
thousands, except share and per share data) |
|
Three Months Ended June 30, |
|
Year Ended June 30, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
62,584 |
|
|
$ |
54,478 |
|
|
$ |
242,722 |
|
|
$ |
168,894 |
|
Interest on available-for-sale securities |
|
606 |
|
|
|
374 |
|
|
|
2,246 |
|
|
|
1,122 |
|
Other interest and dividend income |
|
3,377 |
|
|
|
2,900 |
|
|
|
12,918 |
|
|
|
7,155 |
|
Total interest and dividend income |
|
66,567 |
|
|
|
57,752 |
|
|
|
257,886 |
|
|
|
177,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
24,619 |
|
|
|
18,139 |
|
|
|
88,391 |
|
|
|
48,076 |
|
Federal Home Loan Bank advances |
|
3,785 |
|
|
|
5,430 |
|
|
|
20,032 |
|
|
|
10,225 |
|
Obligation under capital lease agreements |
|
228 |
|
|
|
28 |
|
|
|
891 |
|
|
|
74 |
|
Total interest expense |
|
28,632 |
|
|
|
23,597 |
|
|
|
109,314 |
|
|
|
58,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend
income before provision for loan losses |
|
37,935 |
|
|
|
34,155 |
|
|
|
148,572 |
|
|
|
118,796 |
|
Provision for credit
losses |
|
547 |
|
|
|
453 |
|
|
|
1,768 |
|
|
|
2,303 |
|
Net interest and dividend
income after provision for loan losses |
|
37,388 |
|
|
|
33,702 |
|
|
|
146,804 |
|
|
|
116,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
Fees for other services to customers |
|
466 |
|
|
|
448 |
|
|
|
1,684 |
|
|
|
1,589 |
|
Gain on sales of SBA loans |
|
1,459 |
|
|
|
278 |
|
|
|
3,296 |
|
|
|
576 |
|
Net unrealized gain (loss) on equity securities |
|
(22 |
) |
|
|
(81 |
) |
|
|
(4 |
) |
|
|
(208 |
) |
Gain (loss) on real estate owned, other repossessed collateral
and premises and equipment, net |
|
(20 |
) |
|
|
- |
|
|
|
(29 |
) |
|
|
(73 |
) |
Correspondent fee income |
|
39 |
|
|
|
114 |
|
|
|
222 |
|
|
|
2,534 |
|
Gain on termination of interest rate swap |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
96 |
|
Bank-owned life insurance income |
|
118 |
|
|
|
207 |
|
|
|
466 |
|
|
|
443 |
|
Other noninterest income |
|
52 |
|
|
|
146 |
|
|
|
245 |
|
|
|
301 |
|
Total noninterest income |
|
2,092 |
|
|
|
1,112 |
|
|
|
5,880 |
|
|
|
5,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
11,204 |
|
|
|
10,570 |
|
|
|
41,613 |
|
|
|
35,721 |
|
Occupancy and equipment expense |
|
995 |
|
|
|
1,100 |
|
|
|
4,272 |
|
|
|
4,214 |
|
Professional fees |
|
581 |
|
|
|
624 |
|
|
|
2,365 |
|
|
|
2,554 |
|
Data processing fees |
|
1,501 |
|
|
|
1,305 |
|
|
|
5,324 |
|
|
|
4,995 |
|
Marketing expense |
|
261 |
|
|
|
339 |
|
|
|
1,000 |
|
|
|
922 |
|
Loan acquisition and collection expense |
|
853 |
|
|
|
673 |
|
|
|
3,255 |
|
|
|
2,514 |
|
FDIC insurance expense |
|
345 |
|
|
|
540 |
|
|
|
1,262 |
|
|
|
1,224 |
|
Other noninterest expense |
|
1,339 |
|
|
|
1,210 |
|
|
|
5,477 |
|
|
|
4,392 |
|
Total noninterest expense |
|
17,079 |
|
|
|
16,361 |
|
|
|
64,568 |
|
|
|
56,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
expense |
|
22,401 |
|
|
|
18,453 |
|
|
|
88,116 |
|
|
|
65,215 |
|
Income tax expense |
|
7,261 |
|
|
|
6,367 |
|
|
|
29,885 |
|
|
|
21,028 |
|
Net income |
$ |
15,140 |
|
|
$ |
12,086 |
|
|
$ |
58,231 |
|
|
$ |
44,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
7,765,868 |
|
|
|
7,459,074 |
|
|
|
7,573,217 |
|
|
|
7,345,253 |
|
Diluted |
|
7,910,692 |
|
|
|
7,523,508 |
|
|
|
7,679,007 |
|
|
|
7,413,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.95 |
|
|
$ |
1.62 |
|
|
$ |
7.69 |
|
|
$ |
6.02 |
|
Diluted |
|
1.91 |
|
|
|
1.61 |
|
|
|
7.58 |
|
|
|
5.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per
common share |
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.04 |
|
|
$ |
0.04 |
|
NORTHEAST
BANK |
AVERAGE
BALANCE SHEETS AND ANNUALIZED YIELDS |
(Unaudited) |
(Dollars in
thousands) |
|
Three Months Ended June 30, |
|
2024 |
|
2023 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
59,752 |
|
$ |
606 |
|
4.08 |
% |
|
$ |
60,584 |
|
$ |
374 |
|
2.48 |
% |
Loans (1) (2) |
|
2,673,108 |
|
|
62,584 |
|
9.42 |
% |
|
|
2,509,557 |
|
|
54,478 |
|
8.71 |
% |
Federal Home Loan Bank stock |
|
15,756 |
|
|
369 |
|
9.42 |
% |
|
|
20,483 |
|
|
260 |
|
5.09 |
% |
Short-term investments (3) |
|
224,498 |
|
|
3,008 |
|
5.39 |
% |
|
|
201,493 |
|
|
2,640 |
|
5.26 |
% |
Total interest-earning
assets |
|
2,973,114 |
|
|
66,567 |
|
9.01 |
% |
|
|
2,792,117 |
|
|
57,752 |
|
8.30 |
% |
Cash and due from banks |
|
2,524 |
|
|
|
|
|
|
|
2,508 |
|
|
|
|
|
Other non-interest earning
assets |
|
84,461 |
|
|
|
|
|
|
|
64,580 |
|
|
|
|
|
Total assets |
$ |
3,060,099 |
|
|
|
|
|
|
$ |
2,859,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
545,965 |
|
$ |
6,105 |
|
4.50 |
% |
|
$ |
567,746 |
|
$ |
5,594 |
|
3.95 |
% |
Money market accounts |
|
157,729 |
|
|
1,279 |
|
3.26 |
% |
|
|
252,560 |
|
|
1,785 |
|
2.83 |
% |
Savings accounts |
|
163,940 |
|
|
1,395 |
|
3.42 |
% |
|
|
83,782 |
|
|
330 |
|
1.58 |
% |
Time deposits |
|
1,267,122 |
|
|
15,840 |
|
5.03 |
% |
|
|
973,216 |
|
|
10,430 |
|
4.30 |
% |
Total interest-bearing
deposits |
|
2,134,756 |
|
|
24,619 |
|
4.64 |
% |
|
|
1,877,304 |
|
|
18,139 |
|
3.88 |
% |
Federal Home Loan Bank advances |
|
347,726 |
|
|
3,785 |
|
4.38 |
% |
|
|
472,440 |
|
|
5,430 |
|
4.61 |
% |
Lease liability |
|
20,533 |
|
|
228 |
|
4.47 |
% |
|
|
21,972 |
|
|
28 |
|
0.51 |
% |
Total interest-bearing
liabilities |
|
2,503,015 |
|
|
28,632 |
|
4.60 |
% |
|
|
2,371,716 |
|
|
23,597 |
|
3.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and escrow
accounts |
|
162,251 |
|
|
|
|
|
|
|
173,668 |
|
|
|
|
|
Other liabilities |
|
27,230 |
|
|
|
|
|
|
|
23,095 |
|
|
|
|
|
Total liabilities |
|
2,692,496 |
|
|
|
|
|
|
|
2,568,479 |
|
|
|
|
|
Shareholders' equity |
|
367,603 |
|
|
|
|
|
|
|
290,726 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
3,060,099 |
|
|
|
|
|
|
$ |
2,859,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
37,935 |
|
|
|
|
|
|
$ |
34,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
4.41 |
% |
|
|
|
|
|
|
|
4.31 |
% |
Net interest margin (4) |
|
|
|
|
|
|
5.13 |
% |
|
|
|
|
|
|
|
4.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds (5) |
|
|
|
|
|
|
4.32 |
% |
|
|
|
|
|
|
|
3.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest
income and yield are stated on a fully tax-equivalent basis using
the statutory tax rate. |
(2) Nonaccrual
loans are included in the computation of average, but unpaid
interest has not been included for purposes of determining interest
income. |
(3) Short-term
investments include FHLB overnight deposits and other
interest-bearing deposits.(4) Net interest margin is calculated as
net interest income divided by total interest-earning assets.(5)
Cost of funds is calculated as total interest expense divided by
total interest-bearing liabilities plus demand deposits and escrow
accounts. |
|
NORTHEAST
BANK |
AVERAGE
BALANCE SHEETS AND ANNUALIZED YIELDS |
(Unaudited) |
(Dollars in
thousands) |
|
Year Ended June 30, |
|
2024 |
|
2023 |
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
59,983 |
|
$ |
2,246 |
|
3.74 |
% |
|
$ |
60,760 |
|
$ |
1,122 |
|
1.85 |
% |
Loans (1) (2) |
|
2,592,649 |
|
|
242,722 |
|
9.36 |
% |
|
|
2,021,787 |
|
|
168,894 |
|
8.35 |
% |
Federal Home Loan Bank stock |
|
19,257 |
|
|
1,700 |
|
8.83 |
% |
|
|
10,600 |
|
|
397 |
|
3.75 |
% |
Short-term investments (3) |
|
209,285 |
|
|
11,218 |
|
5.36 |
% |
|
|
171,949 |
|
|
6,758 |
|
3.93 |
% |
Total interest-earning
assets |
|
2,881,174 |
|
|
257,886 |
|
8.95 |
% |
|
|
2,265,096 |
|
|
177,171 |
|
7.82 |
% |
Cash and due from banks |
|
2,493 |
|
|
|
|
|
|
|
2,525 |
|
|
|
|
|
Other non-interest earning
assets |
|
64,570 |
|
|
|
|
|
|
|
78,986 |
|
|
|
|
|
Total assets |
$ |
2,948,237 |
|
|
|
|
|
|
$ |
2,346,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
517,134 |
|
$ |
22,652 |
|
4.38 |
% |
|
$ |
539,022 |
|
$ |
15,584 |
|
2.89 |
% |
Money market accounts |
|
209,080 |
|
|
7,039 |
|
3.37 |
% |
|
|
250,152 |
|
|
4,368 |
|
1.75 |
% |
Savings accounts |
|
129,455 |
|
|
3,999 |
|
3.09 |
% |
|
|
113,678 |
|
|
1,178 |
|
1.04 |
% |
Time deposits |
|
1,112,548 |
|
|
54,701 |
|
4.92 |
% |
|
|
703,591 |
|
|
26,946 |
|
3.83 |
% |
Total interest-bearing
deposits |
|
1,968,217 |
|
|
88,391 |
|
4.49 |
% |
|
|
1,606,443 |
|
|
48,076 |
|
2.99 |
% |
Federal Home Loan Bank advances |
|
434,388 |
|
|
20,032 |
|
4.61 |
% |
|
|
234,623 |
|
|
10,225 |
|
4.36 |
% |
Lease liability |
|
21,165 |
|
|
891 |
|
4.21 |
% |
|
|
15,859 |
|
|
74 |
|
0.47 |
% |
Total interest-bearing
liabilities |
|
2,423,770 |
|
|
109,314 |
|
4.51 |
% |
|
|
1,856,925 |
|
|
58,375 |
|
3.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and escrow
accounts |
|
165,789 |
|
|
|
|
|
|
|
208,287 |
|
|
|
|
|
Other liabilities |
|
25,092 |
|
|
|
|
|
|
|
13,337 |
|
|
|
|
|
Total liabilities |
|
2,614,651 |
|
|
|
|
|
|
|
2,078,549 |
|
|
|
|
|
Shareholders' equity |
|
333,586 |
|
|
|
|
|
|
|
268,058 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
2,948,237 |
|
|
|
|
|
|
$ |
2,346,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
148,572 |
|
|
|
|
|
|
$ |
118,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
4.44 |
% |
|
|
|
|
|
|
|
4.68 |
% |
Net interest margin (4) |
|
|
|
|
|
|
5.16 |
% |
|
|
|
|
|
|
|
5.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds (5) |
|
|
|
|
|
|
4.22 |
% |
|
|
|
|
|
|
|
2.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest
income and yield are stated on a fully tax-equivalent basis using
the statutory tax rate. |
(2) Nonaccrual
loans are included in the computation of average, but unpaid
interest has not been included for purposes of determining interest
income. |
(3) Short-term
investments include FHLB overnight deposits and other
interest-bearing deposits.(4) Net interest margin is calculated as
net interest income divided by total interest-earning assets.(5)
Cost of funds is calculated as total interest expense divided by
total interest-bearing liabilities plus demand deposits and escrow
accounts. |
|
NORTHEAST
BANK |
SELECTED
FINANCIAL HIGHLIGHTS AND OTHER DATA |
(Unaudited) |
(Dollars in
thousands, except share and per share data) |
|
Three Months Ended |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
Net interest income |
$ |
37,935 |
|
|
$ |
36,512 |
|
|
$ |
37,000 |
|
|
$ |
37,124 |
|
|
$ |
34,155 |
|
Provision for credit
losses |
|
547 |
|
|
|
596 |
|
|
|
436 |
|
|
|
190 |
|
|
|
453 |
|
Noninterest income |
|
2,092 |
|
|
|
1,542 |
|
|
|
1,466 |
|
|
|
779 |
|
|
|
1,112 |
|
Noninterest expense |
|
17,079 |
|
|
|
16,429 |
|
|
|
15,669 |
|
|
|
15,389 |
|
|
|
16,361 |
|
Net income |
|
15,140 |
|
|
|
13,865 |
|
|
|
14,054 |
|
|
|
15,172 |
|
|
|
12,086 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
7,765,868 |
|
|
|
7,509,320 |
|
|
|
7,505,109 |
|
|
|
7,479,837 |
|
|
|
7,459,074 |
|
Diluted |
|
7,910,692 |
|
|
|
7,595,124 |
|
|
|
7,590,913 |
|
|
|
7,554,315 |
|
|
|
7,523,508 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.95 |
|
|
$ |
1.85 |
|
|
$ |
1.87 |
|
|
$ |
2.03 |
|
|
$ |
1.62 |
|
Diluted |
|
1.91 |
|
|
|
1.83 |
|
|
|
1.85 |
|
|
|
2.01 |
|
|
|
1.61 |
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common
share |
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.99 |
% |
|
|
1.87 |
% |
|
|
1.93 |
% |
|
|
2.12 |
% |
|
|
1.70 |
% |
Return on average equity |
|
16.56 |
% |
|
|
16.45 |
% |
|
|
17.35 |
% |
|
|
19.73 |
% |
|
|
16.67 |
% |
Net interest rate spread
(1) |
|
4.41 |
% |
|
|
4.27 |
% |
|
|
4.49 |
% |
|
|
4.61 |
% |
|
|
4.31 |
% |
Net interest margin (2) |
|
5.13 |
% |
|
|
5.01 |
% |
|
|
5.20 |
% |
|
|
5.30 |
% |
|
|
4.91 |
% |
Efficiency ratio (non-GAAP)
(3) |
|
42.67 |
% |
|
|
43.17 |
% |
|
|
40.73 |
% |
|
|
40.60 |
% |
|
|
46.39 |
% |
Noninterest expense to average
total assets |
|
2.24 |
% |
|
|
2.21 |
% |
|
|
2.15 |
% |
|
|
2.15 |
% |
|
|
2.30 |
% |
Average interest-earning
assets to average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
118.78 |
% |
|
|
119.28 |
% |
|
|
118.52 |
% |
|
|
118.82 |
% |
|
|
117.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
Originated portfolio: |
|
|
|
|
|
|
|
|
|
Residential real estate |
$ |
2,502 |
|
|
$ |
2,573 |
|
|
$ |
2,582 |
|
|
$ |
289 |
|
|
$ |
280 |
|
Commercial real estate |
|
1,407 |
|
|
|
2,075 |
|
|
|
2,075 |
|
|
|
1,973 |
|
|
|
3,548 |
|
Commercial and industrial |
|
6,520 |
|
|
|
6,928 |
|
|
|
6,950 |
|
|
|
584 |
|
|
|
520 |
|
Consumer |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total originated
portfolio |
|
10,429 |
|
|
|
11,576 |
|
|
|
11,607 |
|
|
|
2,846 |
|
|
|
4,348 |
|
Total purchased portfolio |
|
17,832 |
|
|
|
16,370 |
|
|
|
19,165 |
|
|
|
14,603 |
|
|
|
11,335 |
|
Total nonperforming loans |
|
28,261 |
|
|
|
27,946 |
|
|
|
30,772 |
|
|
|
17,449 |
|
|
|
15,683 |
|
Real estate owned and other
repossessed collateral, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total nonperforming
assets |
$ |
28,261 |
|
|
$ |
27,946 |
|
|
$ |
30,772 |
|
|
$ |
17,449 |
|
|
$ |
15,683 |
|
|
|
|
|
|
|
|
|
|
|
Past due loans to total
loans |
|
0.95 |
% |
|
|
1.13 |
% |
|
|
1.22 |
% |
|
|
1.01 |
% |
|
|
0.52 |
% |
Nonperforming loans to total
loans |
|
1.02 |
% |
|
|
1.05 |
% |
|
|
1.18 |
% |
|
|
0.69 |
% |
|
|
0.62 |
% |
Nonperforming assets to total
assets |
|
0.90 |
% |
|
|
0.93 |
% |
|
|
1.04 |
% |
|
|
0.61 |
% |
|
|
0.55 |
% |
Allowance for credit losses to
total loans |
|
0.97 |
% |
|
|
0.98 |
% |
|
|
1.06 |
% |
|
|
1.00 |
% |
|
|
0.29 |
% |
Allowance for credit losses to
nonperforming loans |
|
94.51 |
% |
|
|
92.83 |
% |
|
|
89.67 |
% |
|
|
145.01 |
% |
|
|
46.57 |
% |
Net charge-offs
(recoveries) |
$ |
1,347 |
|
|
$ |
2,225 |
|
|
$ |
995 |
|
|
$ |
1,536 |
|
|
$ |
240 |
|
Commercial real estate loans
to total capital (4) |
|
482.13 |
% |
|
|
509.08 |
% |
|
|
544.34 |
% |
|
|
546.91 |
% |
|
|
595.38 |
% |
Net loans to deposits |
|
116.88 |
% |
|
|
118.15 |
% |
|
|
121.31 |
% |
|
|
127.24 |
% |
|
|
129.73 |
% |
Purchased loans to total
loans |
|
61.88 |
% |
|
|
60.99 |
% |
|
|
63.07 |
% |
|
|
59.98 |
% |
|
|
58.73 |
% |
Equity to total assets |
|
12.02 |
% |
|
|
11.73 |
% |
|
|
11.03 |
% |
|
|
10.83 |
% |
|
|
10.34 |
% |
Common equity tier 1 capital
ratio |
|
13.84 |
% |
|
|
13.24 |
% |
|
|
12.63 |
% |
|
|
12.45 |
% |
|
|
12.03 |
% |
Total risk-based capital
ratio |
|
14.82 |
% |
|
|
14.22 |
% |
|
|
13.71 |
% |
|
|
13.46 |
% |
|
|
12.33 |
% |
Tier 1 leverage capital
ratio |
|
12.30 |
% |
|
|
11.79 |
% |
|
|
11.28 |
% |
|
|
10.95 |
% |
|
|
10.38 |
% |
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
376,634 |
|
|
$ |
351,913 |
|
|
$ |
327,540 |
|
|
$ |
311,569 |
|
|
$ |
296,663 |
|
Less: Preferred stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common shareholders’
equity |
|
376,634 |
|
|
|
351,913 |
|
|
|
327,540 |
|
|
|
311,569 |
|
|
|
296,663 |
|
Less: Intangible assets
(5) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Tangible common shareholders'
equity (non-GAAP) |
$ |
376,634 |
|
|
$ |
351,913 |
|
|
$ |
327,540 |
|
|
$ |
311,569 |
|
|
$ |
296,663 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
8,127,690 |
|
|
|
7,977,690 |
|
|
|
7,804,052 |
|
|
|
7,796,691 |
|
|
|
7,668,650 |
|
Book value per common
share |
$ |
46.34 |
|
|
$ |
44.11 |
|
|
$ |
41.97 |
|
|
$ |
39.96 |
|
|
$ |
38.69 |
|
Tangible book value per share
(non-GAAP) (6) |
|
46.34 |
|
|
|
44.11 |
|
|
|
41.97 |
|
|
|
39.96 |
|
|
|
38.69 |
|
|
|
|
|
|
|
|
|
|
|
(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 credit 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) Includes the
loan servicing rights asset. |
(6) 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:Richard Cohen, Chief
Financial OfficerNortheast Bank, 27 Pearl Street, Portland, Maine
04101 207.786.3245 ext. 3249www.northeastbank.com
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