Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based
full-service bank, today reported net income of $4.9 million, or
$0.53 per diluted common share, for the quarter ended December 31,
2019, compared to net income of $5.1 million, or $0.56 per diluted
common share, for the quarter ended December 31, 2018. Net income
for the six months ended December 31, 2019 was $9.6 million, or
$1.05 per diluted common share, compared to $9.7 million, or $1.05
per diluted common share, for the six months ended December 31,
2018.
On January 24, 2020, the Board of Directors
declared a cash dividend of $0.01 per share, payable on February
24, 2020, to shareholders of record as of February 10, 2020.
“During the second quarter, we generated a
record level of loan originations and purchases, and at quarter end
we surpassed $1 billion in total loans,” said Richard Wayne, Chief
Executive Officer. “Our Loan Acquisition and Servicing Group
produced $163.4 million of loans, including originations of $98.6
million and purchases with an investment of $64.8 million during
the quarter. As a result, we earned $0.53 per diluted common share,
a return on average equity of 12.1%, a return on average assets of
1.7%, and a net interest margin of 5.6%.”
As of December 31, 2019, total assets were $1.2
billion, an increase of $53.6 million, or 4.6%, from total assets
of $1.2 billion as of June 30, 2019. The principal components of
the changes in the balance sheet follow:
1. The following table highlights the changes in the loan
portfolio for the three and six months ended December 31, 2019:
|
Loan Portfolio Changes |
|
Three Months Ended December 31, 2019 |
|
December 31, 2019 Balance |
|
September 30, 2019 Balance |
|
Change ($) |
|
Change (%) |
|
(Dollars in thousands) |
LASG Purchased |
$ |
367,625 |
|
$ |
332,227 |
|
$ |
35,398 |
|
|
10.65 |
% |
LASG Originated |
|
497,386 |
|
|
457,350 |
|
40,036 |
|
|
8.75 |
% |
SBA |
|
54,572 |
|
|
58,270 |
|
(3,698 |
) |
|
(6.35 |
%) |
Community Banking |
|
81,195 |
|
|
86,192 |
|
(4,997 |
) |
|
(5.80 |
%) |
Total |
$ |
1,000,778 |
|
$ |
934,039 |
|
$ |
66,739 |
|
|
7.15 |
% |
|
|
|
|
|
Six Months Ended December 31, 2019 |
|
December 31, 2019 Balance |
|
June 30, 2019 Balance |
|
Change ($) |
|
Change (%) |
|
(Dollars in thousands) |
LASG Purchased |
$ |
367,625 |
|
$ |
326,640 |
|
$ |
40,985 |
|
|
12.55 |
% |
LASG Originated |
|
497,386 |
|
|
493,413 |
|
|
3,973 |
|
|
0.81 |
% |
SBA |
|
54,572 |
|
|
63,053 |
|
|
(8,481 |
) |
|
(13.45 |
%) |
Community Banking |
|
81,195 |
|
|
91,954 |
|
|
(10,759 |
) |
|
(11.70 |
%) |
Total |
$ |
1,000,778 |
|
$ |
975,060 |
|
$ |
25,718 |
|
|
2.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans generated by the Bank's Loan Acquisition
and Servicing Group ("LASG") for the quarter ended December 31,
2019 totaled $163.4 million, which consisted of $64.8 million of
purchased loans, at an average price of 97.1% of unpaid principal
balance, and $98.6 million of originated loans. The Bank sold the
guaranteed portion of Small Business Administration ("SBA") loans
totaling $4.0 million in the secondary market, of which $419
thousand were originated in the current quarter and $3.5 million
were originated or purchased in the prior quarter. Residential loan
production sold in the secondary market totaled $10.8 million for
the quarter.
An overview of the Bank’s LASG portfolio
follows:
|
LASG Portfolio |
|
Three Months Ended December 31, |
|
2019 |
|
|
2018 |
|
|
Purchased |
|
Originated |
|
Total LASG |
|
Purchased |
|
Originated |
|
Total LASG |
|
(Dollars in thousands) |
Loans purchased or originated
during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid principal balance |
$ |
66,784 |
|
|
$ |
98,563 |
|
|
$ |
165,347 |
|
|
$ |
52,672 |
|
|
$ |
64,117 |
|
|
$ |
116,789 |
|
Net investment basis |
|
64,840 |
|
|
|
98,563 |
|
|
|
163,403 |
|
|
|
49,334 |
|
|
|
64,117 |
|
|
|
113,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield |
|
9.76 |
% |
|
|
7.67 |
% |
|
|
8.57 |
% |
|
|
10.30 |
% |
|
|
7.61 |
% |
|
|
8.75 |
% |
Total Return on Purchased Loans (1) |
|
10.21 |
% |
|
|
7.67 |
% |
|
|
8.77 |
% |
|
|
10.30 |
% |
|
|
7.61 |
% |
|
|
8.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 31, |
|
2019 |
|
|
2018 |
|
|
Purchased |
|
Originated |
|
Total LASG |
|
Purchased |
|
Originated |
|
Total LASG |
|
(Dollars in thousands) |
Loans purchased or originated
during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid principal balance |
$ |
97,116 |
|
|
$ |
139,100 |
|
|
$ |
236,216 |
|
|
$ |
89,748 |
|
|
$ |
135,253 |
|
|
$ |
225,001 |
|
Net investment basis |
|
93,462 |
|
|
|
139,100 |
|
|
|
232,562 |
|
|
|
84,137 |
|
|
|
135,253 |
|
|
|
219,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan returns during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield |
|
9.74 |
% |
|
|
7.62 |
% |
|
|
8.52 |
% |
|
|
9.88 |
% |
|
|
7.53 |
% |
|
|
8.53 |
% |
Total Return on Purchased Loans (1) |
|
9.98 |
% |
|
|
7.62 |
% |
|
|
8.61 |
% |
|
|
9.88 |
% |
|
|
7.53 |
% |
|
|
8.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans as of period
end: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid principal balance |
$ |
401,393 |
|
|
$ |
497,386 |
|
|
$ |
898,779 |
|
|
$ |
368,345 |
|
|
$ |
435,817 |
|
|
$ |
804,162 |
|
Net investment basis |
|
367,625 |
|
|
|
497,386 |
|
|
|
865,011 |
|
|
|
330,643 |
|
|
|
435,817 |
|
|
|
766,460 |
|
(1) |
|
The total return on purchased loans represents scheduled accretion,
accelerated accretion, gains on asset sales, gains on real estate
owned and other noninterest income recorded during the period
divided by the average invested balance, which includes purchased
loans held for sale, on an annualized basis. The total return on
purchased loans does not include the effect of purchased loan
charge-offs or recoveries during the period. Total return on
purchased loans is considered a non-GAAP financial measure. See
reconciliation in below table entitled “Total Return on Purchased
Loans.” |
2. Deposits decreased by $3.5 million, or 0.4%,
from June 30, 2019, attributable primarily to decreases in time
deposits of $13.7 million, or 2.7%, demand deposits of $1.9
million, or 2.7%, and money market deposits of $1.8 million, or
0.7%, partially offset by an increase in savings and interest
checking accounts of $13.9 million, or 13.8%.
3. Shareholders’ equity increased by $9.8 million, or 6.4%, from
June 30, 2019, primarily due to net income of $9.6 million.
Net income decreased by $258 thousand to $4.9
million for the quarter ended December 31, 2019, compared to net
income of $5.1 million for the quarter ended December 31, 2018.
1. Net interest and dividend income before
provision for loan losses decreased by $98 thousand to $15.5
million for the quarter ended December 31, 2019, compared to $15.6
million for the quarter ended December 31, 2018. The decrease was
primarily due to higher deposit and borrowing costs and lower
transactional interest income in the purchased portfolio, partially
offset by higher average balances in the LASG portfolio, as well as
a decrease in interest expense on subordinated debt from the
redemption of trust preferred securities in May 2019.
The following table summarizes interest income
and related yields recognized on the loan portfolios:
|
Interest Income and Yield on Loans |
|
Three Months Ended December 31, |
|
2019 |
|
|
2018 |
|
|
Average |
|
Interest |
|
|
|
Average |
|
Interest |
|
|
|
Balance (1) |
|
Income |
|
Yield |
|
Balance (1) |
|
Income |
|
Yield |
|
(Dollars in thousands) |
Community
Banking |
$ |
85,989 |
|
$ |
1,193 |
|
5.52 |
% |
|
$ |
108,344 |
|
$ |
1,448 |
|
5.30 |
% |
SBA |
|
57,371 |
|
|
1,003 |
|
6.96 |
% |
|
|
73,467 |
|
|
1,440 |
|
7.78 |
% |
LASG: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
456,877 |
|
|
8,814 |
|
7.67 |
% |
|
|
420,816 |
|
|
8,077 |
|
7.61 |
% |
Purchased |
|
345,748 |
|
|
8,480 |
|
9.76 |
% |
|
|
307,094 |
|
|
7,969 |
|
10.30 |
% |
Total LASG |
|
802,625 |
|
|
17,294 |
|
8.57 |
% |
|
|
727,910 |
|
|
16,046 |
|
8.75 |
% |
Total |
$ |
945,985 |
|
$ |
19,490 |
|
8.20 |
% |
|
$ |
909,721 |
|
$ |
18,934 |
|
8.26 |
% |
|
Six Months Ended December 31, |
|
2019 |
|
|
2018 |
|
|
Average |
|
Interest |
|
|
|
Average |
|
Interest |
|
|
|
Balance (1) |
|
Income |
|
Yield |
|
Balance (1) |
|
Income |
|
Yield |
|
(Dollars in thousands) |
Community
Banking |
$ |
88,187 |
|
$ |
2,458 |
|
5.54 |
% |
|
$ |
114,342 |
|
$ |
2,970 |
|
5.15 |
% |
SBA |
|
60,062 |
|
|
2,472 |
|
8.19 |
% |
|
|
72,316 |
|
|
2,726 |
|
7.48 |
% |
LASG: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated |
|
463,092 |
|
|
17,742 |
|
7.62 |
% |
|
|
409,575 |
|
|
15,541 |
|
7.53 |
% |
Purchased |
|
337,284 |
|
|
16,521 |
|
9.74 |
% |
|
|
305,600 |
|
|
15,223 |
|
9.88 |
% |
Total LASG |
|
800,376 |
|
|
34,263 |
|
8.52 |
% |
|
|
715,175 |
|
|
30,764 |
|
8.53 |
% |
Total |
$ |
948,625 |
|
$ |
39,193 |
|
8.22 |
% |
|
$ |
901,833 |
|
$ |
36,460 |
|
8.02 |
% |
|
|
(1) Includes loans held for sale. |
|
The components of total income on purchased
loans are set forth in the table below entitled “Total Return on
Purchased Loans.” When compared to the quarter ended December 31,
2018, transactional income for the quarter ended December 31, 2019
increased by $241 thousand, while regularly scheduled interest and
accretion increased by $665 thousand due to the increase in average
balances. The total return on purchased loans for the
quarter ended December 31, 2019 was 10.2%, a decrease from 10.3%
for the quarter ended December 31, 2018. The following table
details the total return on purchased loans:
|
Total Return on Purchased Loans |
|
Three Months Ended December 31, |
|
2019 |
|
|
2018 |
|
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
(Dollars in thousands) |
Regularly scheduled interest and accretion |
$ |
6,525 |
|
7.51 |
% |
|
$ |
5,860 |
|
7.57 |
% |
Transactional income: |
|
|
|
|
|
|
|
|
|
Gain on loan sales |
|
- |
|
0.00 |
% |
|
|
- |
|
0.00 |
% |
Gain on real estate owned |
|
395 |
|
0.45 |
% |
|
|
- |
|
0.00 |
% |
Other noninterest income |
|
- |
|
0.00 |
% |
|
|
- |
|
0.00 |
% |
Accelerated accretion and loan fees |
|
1,955 |
|
2.25 |
% |
|
|
2,109 |
|
2.73 |
% |
Total transactional income |
|
2,350 |
|
2.70 |
% |
|
|
2,109 |
|
2.73 |
% |
Total |
$ |
8,875 |
|
10.21 |
% |
|
$ |
7,969 |
|
10.30 |
% |
|
|
|
|
|
Six Months Ended December 31, |
|
2019 |
|
|
2018 |
|
|
Income |
|
Return (1) |
|
Income |
|
Return (1) |
|
(Dollars in thousands) |
Regularly scheduled interest
and accretion |
$ |
12,580 |
|
7.42 |
% |
|
$ |
11,621 |
|
7.54 |
% |
Transactional income: |
|
|
|
|
|
|
|
|
|
Gain on loan sales |
|
- |
|
0.00 |
% |
|
|
- |
|
0.00 |
% |
Gain on real estate owned |
|
395 |
|
0.24 |
% |
|
|
- |
|
0.00 |
% |
Other noninterest income |
|
- |
|
0.00 |
% |
|
|
- |
|
0.00 |
% |
Accelerated accretion and loan fees |
|
3,941 |
|
2.32 |
% |
|
|
3,602 |
|
2.34 |
% |
Total transactional income |
|
4,336 |
|
2.56 |
% |
|
|
3,602 |
|
2.34 |
% |
Total |
$ |
16,916 |
|
9.98 |
% |
|
$ |
15,223 |
|
9.88 |
% |
(1) |
|
The total return on purchased loans represents scheduled accretion,
accelerated accretion, gains on asset sales and gains on real
estate owned recorded during the period divided by the average
invested balance, which includes purchased loans held for sale, on
an annualized basis. The total return does not include the effect
of purchased loan charge-offs or recoveries in the quarter. Total
return is considered a non-GAAP financial measure. |
|
|
|
2. Noninterest income decreased by $208 thousand for the quarter
ended December 31, 2019, compared to the quarter ended December 31,
2018, principally due to the following:
- A decrease in gain on sale of SBA loans of $638 thousand, due
to lower volume of SBA loans sold in the quarter due to lower
originations in recent quarters; and
- An increase in net unrealized loss on equity securities of $75
thousand; partially offset by,
- An increase in gain on real estate owned of $338 thousand, due
to the gain recorded on the transfer of a loan into real estate
owned, partially offset by a write-down on an existing property;
and
- An increase in gain on sale of residential loans held for sale
of $108 thousand, due to both a higher volume of loans sold and
higher pricing on loans sold.
3. Noninterest expense decreased by $114 thousand for the
quarter ended December 31, 2019 compared to the quarter ended
December 31, 2018, primarily due to the following:
- A decrease in professional fees of $211 thousand, due to a
decrease in legal expenses related to the corporate reorganization
completed in the prior period, as well as lower other professional
fees;
- A decrease in occupancy and equipment expense of $108 thousand,
primarily due to a decrease in computer equipment repairs and
maintenance expense; and
- A decrease in loan acquisition and collection expense of $104
thousand, primarily due to collection expense reimbursements
received during the quarter; partially offset by,
- An increase in salaries and employee benefits of $227 thousand,
primarily due to increases in regular compensation and incentive
compensation, offset by a decrease in stock-based compensation;
and
- An increase in data processing fees of $172 thousand, primarily
due to increased IT outsourcing costs.
4. Income tax expense decreased by $76 thousand to $2.0 million,
or an effective tax rate of 28.9%, for the quarter ended December
31, 2019, compared to $2.1 million, or an effective tax rate of
28.7%, for the quarter ended December 31, 2018.
As of December 31, 2019, nonperforming assets
totaled $21.3 million, or 1.76% of total assets, as compared to
$16.7 million, or 1.45% of total assets, as of June 30, 2019. The
increase was primarily due to one LASG originated loan totaling
$2.7 million and three LASG purchased loans totaling $2.1 million
that were placed on nonaccrual, offset by the payoff of one
nonperforming Community Banking loan totaling $1.1 million during
the six months ended December 31, 2019.
As of December 31, 2019, past due loans totaled
$28.4 million, or 2.84% of total loans, as compared to past due
loans totaling $14.6 million, or 1.50% of total loans as of June
30, 2019. The increase was primarily due to nine LASG purchased
loans totaling $9.6 million, three LASG originated loans totaling
$2.8 million, and six SBA loans totaling $1.9 million, becoming
past due during the six months ended December 31, 2019.
As of December 31, 2019, the Bank’s Tier 1
leverage capital ratio was 14.3%, compared to 12.9% at June 30,
2019, and the Total capital ratio was 18.5% at December 31, 2019,
as compared to 18.0% at June 30, 2019. Capital ratios were affected
by earnings and lower average assets in the quarter.
Investor Call
InformationRichard Wayne, Chief Executive Officer of
Northeast Bank, and Jean-Pierre Lapointe, Chief Financial Officer
of Northeast Bank, will host a conference call to discuss
second quarter earnings and business outlook at 10:00 a.m. Eastern
Time on Tuesday, January 28th. Investors can access the
call by dialing 877.878.2762 and entering the following passcode:
9080916. 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
Lewiston, Maine. We offer personal and business banking services to
the Maine market via ten branches. Our Loan Acquisition and
Servicing Group purchases and originates commercial loans on a
nationwide basis. 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 net operating earnings,
operating earnings per common share, operating return on average
assets, operating return on average equity, operating efficiency
ratio, operating noninterest expense to average total assets,
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. 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 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
Bank operates, including changes which adversely affect borrowers’
ability to service and repay our loans; changes in loan defaults
and charge-off rates; changes in the value of securities and other
assets, adequacy of loan loss reserves, or deposit levels
necessitating increased borrowing to fund loans and investments;
changing government regulation; operational risks including, but
not limited to, cybersecurity, fraud and natural disasters; the
risk that the 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 Federal Deposit Insurance
Corporation. 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.
|
|
For More
Information: |
|
Jean-Pierre Lapointe, Chief
Financial OfficerNortheast Bank, 500 Canal Street, Lewiston, ME
04240 207.786.3245 ext. 3220www.northeastbank.com |
NBN-F
|
NORTHEAST
BANK |
BALANCE
SHEETS |
(Unaudited) |
(Dollars in
thousands, except share and per share data) |
|
December 31, 2019 |
|
June 30, 2019 |
Assets |
|
|
|
|
|
Cash and due from banks |
$ |
2,699 |
|
|
$ |
2,482 |
|
Short-term investments |
|
83,641 |
|
|
|
54,425 |
|
Total cash and cash
equivalents |
|
86,340 |
|
|
|
56,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale debt
securities, at fair value |
|
72,895 |
|
|
|
75,774 |
|
Equity securities, at fair
value |
|
7,038 |
|
|
|
6,938 |
|
Total investment
securities |
|
79,933 |
|
|
|
82,712 |
|
|
|
|
|
|
|
Residential real estate loans
held for sale |
|
989 |
|
|
|
3,179 |
|
SBA loans held for sale |
|
1,342 |
|
|
|
731 |
|
Total loans held for
sale |
|
2,331 |
|
|
|
3,910 |
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
Commercial real
estate |
|
679,959 |
|
|
|
668,496 |
|
Commercial and
industrial |
|
234,815 |
|
|
|
232,839 |
|
Residential real
estate |
|
84,142 |
|
|
|
71,218 |
|
Consumer |
|
1,862 |
|
|
|
2,507 |
|
Total loans |
|
1,000,778 |
|
|
|
975,060 |
|
Less: Allowance for loan
losses |
|
5,405 |
|
|
|
5,702 |
|
Loans, net |
|
995,373 |
|
|
|
969,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
10,390 |
|
|
|
5,582 |
|
Real estate owned and other
repossessed collateral, net |
|
2,505 |
|
|
|
1,957 |
|
Federal Home Loan Bank stock,
at cost |
|
3,010 |
|
|
|
1,258 |
|
Intangible assets, net |
|
217 |
|
|
|
434 |
|
Loan servicing rights,
net |
|
2,424 |
|
|
|
2,851 |
|
Bank-owned life insurance |
|
16,858 |
|
|
|
17,057 |
|
Other assets |
|
8,035 |
|
|
|
11,832 |
|
Total assets |
$ |
1,207,416 |
|
|
$ |
1,153,858 |
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Demand |
$ |
66,917 |
|
|
$ |
68,782 |
|
Savings and interest
checking |
|
114,952 |
|
|
|
101,061 |
|
Money market |
|
269,057 |
|
|
|
270,835 |
|
Time |
|
487,983 |
|
|
|
501,693 |
|
Total deposits |
|
938,909 |
|
|
|
942,371 |
|
|
|
|
|
|
|
Federal Home Loan Bank
advances |
|
60,000 |
|
|
|
15,000 |
|
Subordinated debt |
|
14,884 |
|
|
|
14,829 |
|
Lease liability |
|
5,196 |
|
|
|
323 |
|
Other liabilities |
|
25,027 |
|
|
|
27,755 |
|
Total liabilities |
|
1,044,016 |
|
|
|
1,000,278 |
|
|
|
|
|
|
|
Commitments and
contingencies |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
Preferred stock, $1.00 par
value, 1,000,000 shares authorized; no shares |
|
|
|
|
issued and
outstanding at December 31, 2019 and June 30, 2019 |
|
- |
|
|
|
- |
|
Voting common stock, $1.00 par
value, 25,000,000 shares authorized; |
|
|
|
|
|
9,007,230 and 8,997,326 shares issued and outstanding at |
|
|
|
|
December 31, 2019 and
June 30, 2019, respectively |
|
9,007 |
|
|
|
8,997 |
|
Non-voting common stock, $1.00
par value, 3,000,000 shares authorized; |
|
|
|
|
|
44,783
shares issued and outstanding at December 31, 2019 and June 30,
2019 |
45 |
|
|
45 |
|
Additional paid-in
capital |
|
78,380 |
|
|
|
78,095 |
|
Retained earnings |
|
77,039 |
|
|
|
67,581 |
|
Accumulated other
comprehensive loss |
|
(1,071 |
) |
|
|
(1,138 |
) |
Total shareholders'
equity |
|
163,400 |
|
|
|
153,580 |
|
Total liabilities and
shareholders' equity |
$ |
1,207,416 |
|
|
$ |
1,153,858 |
|
|
NORTHEAST BANK |
STATEMENTS OF INCOME |
(Unaudited) |
(Dollars in thousands, except share and per share data) |
|
Three Months Ended December 31, |
|
Six Months Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
19,490 |
|
$ |
18,934 |
|
$ |
39,193 |
|
$ |
36,460 |
|
Interest on available-for-sale securities |
|
442 |
|
|
425 |
|
|
893 |
|
|
784 |
|
Other interest and dividend income |
|
326 |
|
|
970 |
|
|
665 |
|
|
1,851 |
|
Total interest and dividend income |
|
20,258 |
|
|
20,329 |
|
|
40,751 |
|
|
39,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
Deposits |
|
4,181 |
|
|
3,982 |
|
|
8,497 |
|
|
7,664 |
|
Federal Home Loan Bank advances |
|
218 |
|
|
125 |
|
|
343 |
|
|
242 |
|
Subordinated debt |
|
282 |
|
|
573 |
|
|
563 |
|
|
1,174 |
|
Obligation under capital lease agreements |
|
32 |
|
|
6 |
|
|
68 |
|
|
14 |
|
Total interest expense |
|
4,713 |
|
|
4,686 |
|
|
9,471 |
|
|
9,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income before provision for loan
losses |
|
15,545 |
|
|
15,643 |
|
|
31,280 |
|
|
30,001 |
|
Provision for loan losses |
|
243 |
|
|
101 |
|
|
106 |
|
|
633 |
|
Net interest and dividend income after provision for loan
losses |
|
15,302 |
|
|
15,542 |
|
|
31,174 |
|
|
29,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
Fees for other services to customers |
|
414 |
|
|
340 |
|
|
827 |
|
|
832 |
|
Gain on sales of SBA loans |
|
304 |
|
|
942 |
|
|
556 |
|
|
1,793 |
|
Gain on sales of residential loans held for sale |
|
212 |
|
|
104 |
|
|
425 |
|
|
279 |
|
Net unrealized (loss) gain on equity securities |
|
(25 |
) |
|
50 |
|
|
15 |
|
|
10 |
|
Gain (loss) on real estate owned, other repossessed
collateral |
|
314 |
|
|
(24 |
) |
|
312 |
|
|
(64 |
) |
and premises and equipment, net |
Bank-owned life insurance income |
|
108 |
|
|
110 |
|
|
350 |
|
|
219 |
|
Other noninterest income |
|
10 |
|
|
23 |
|
|
28 |
|
|
29 |
|
Total noninterest income |
|
1,337 |
|
|
1,545 |
|
|
2,513 |
|
|
3,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
Salaries and employee benefits |
|
5,926 |
|
|
5,699 |
|
|
12,312 |
|
|
11,208 |
|
Occupancy and equipment expense |
|
849 |
|
|
957 |
|
|
1,747 |
|
|
2,084 |
|
Professional fees |
|
445 |
|
|
656 |
|
|
837 |
|
|
1,190 |
|
Data processing fees |
|
1,002 |
|
|
830 |
|
|
1,986 |
|
|
1,431 |
|
Marketing expense |
|
55 |
|
|
130 |
|
|
148 |
|
|
253 |
|
Loan acquisition and collection expense |
|
481 |
|
|
585 |
|
|
1,092 |
|
|
1,024 |
|
FDIC insurance premiums (credits) |
|
(1 |
) |
|
81 |
|
|
(19 |
) |
|
162 |
|
Intangible asset amortization |
|
109 |
|
|
109 |
|
|
217 |
|
|
218 |
|
Other noninterest expense |
|
923 |
|
|
856 |
|
|
1,824 |
|
|
1,687 |
|
Total noninterest expense |
|
9,789 |
|
|
9,903 |
|
|
20,144 |
|
|
19,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
6,850 |
|
|
7,184 |
|
|
13,543 |
|
|
13,209 |
|
Income tax expense |
|
1,983 |
|
|
2,059 |
|
|
3,901 |
|
|
3,550 |
|
Net income |
$ |
4,867 |
|
$ |
5,125 |
|
$ |
9,642 |
|
$ |
9,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
Basic |
|
9,048,171 |
|
|
9,048,397 |
|
|
9,046,004 |
|
|
9,022,161 |
|
Diluted |
|
9,223,137 |
|
|
9,201,557 |
|
|
9,217,544 |
|
|
9,192,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.54 |
|
$ |
0.57 |
|
$ |
1.07 |
|
$ |
1.07 |
|
Diluted |
|
0.53 |
|
|
0.56 |
|
|
1.05 |
|
|
1.05 |
|
|
$ |
0.01 |
|
$ |
0.01 |
|
$ |
0.02 |
|
$ |
0.02 |
|
Cash dividends declared per common share |
|
NORTHEAST BANK |
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS |
(Unaudited) |
(Dollars in thousands) |
|
Three Months Ended December 31, |
|
2019 |
|
|
2018 |
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
81,009 |
|
$ |
442 |
|
2.17 |
% |
|
$ |
85,325 |
|
$ |
425 |
|
1.98 |
% |
Loans (1) (2) (3) |
|
945,985 |
|
|
19,490 |
|
8.20 |
% |
|
|
909,721 |
|
|
18,934 |
|
8.26 |
% |
Federal Home Loan Bank stock |
|
2,079 |
|
|
18 |
|
3.44 |
% |
|
|
1,652 |
|
|
24 |
|
5.76 |
% |
Short-term investments (4) |
|
77,268 |
|
|
308 |
|
1.59 |
% |
|
|
168,768 |
|
|
946 |
|
2.22 |
% |
Total interest-earning assets |
|
1,106,341 |
|
|
20,258 |
|
7.28 |
% |
|
|
1,165,466 |
|
|
20,329 |
|
6.92 |
% |
Cash and due from banks |
|
2,781 |
|
|
|
|
|
|
|
2,600 |
|
|
|
|
|
Other non-interest earning assets |
|
42,725 |
|
|
|
|
|
|
|
31,344 |
|
|
|
|
|
Total assets |
$ |
1,151,847 |
|
|
|
|
|
|
$ |
1,199,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
70,737 |
|
$ |
77 |
|
0.43 |
% |
|
$ |
74,027 |
|
$ |
69 |
|
0.37 |
% |
Money market accounts |
|
269,880 |
|
|
1,094 |
|
1.61 |
% |
|
|
373,409 |
|
|
1,461 |
|
1.55 |
% |
Savings accounts |
|
34,317 |
|
|
15 |
|
0.17 |
% |
|
|
35,004 |
|
|
14 |
|
0.16 |
% |
Time deposits |
|
464,424 |
|
|
2,995 |
|
2.57 |
% |
|
|
443,779 |
|
|
2,438 |
|
2.18 |
% |
Total interest-bearing deposits |
|
839,358 |
|
|
4,181 |
|
1.98 |
% |
|
|
926,219 |
|
|
3,982 |
|
1.71 |
% |
Federal Home Loan Bank advances |
|
36,250 |
|
|
218 |
|
2.39 |
% |
|
|
15,000 |
|
|
125 |
|
3.31 |
% |
Subordinated debt |
|
14,871 |
|
|
282 |
|
7.54 |
% |
|
|
24,087 |
|
|
573 |
|
9.44 |
% |
Capital lease obligations |
|
5,365 |
|
|
32 |
|
2.37 |
% |
|
|
490 |
|
|
6 |
|
4.86 |
% |
Total interest-bearing liabilities |
|
895,844 |
|
|
4,713 |
|
2.09 |
% |
|
|
965,796 |
|
|
4,686 |
|
1.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and escrow accounts |
|
85,894 |
|
|
|
|
|
|
|
81,223 |
|
|
|
|
|
Other liabilities |
|
9,940 |
|
|
|
|
|
|
|
6,513 |
|
|
|
|
|
Total liabilities |
|
991,678 |
|
|
|
|
|
|
|
1,053,532 |
|
|
|
|
|
Shareholders' equity |
|
160,169 |
|
|
|
|
|
|
|
145,878 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
1,151,847 |
|
|
|
|
|
|
$ |
1,199,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
15,545 |
|
|
|
|
|
|
$ |
15,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
5.19 |
% |
|
|
|
|
|
|
|
5.00 |
% |
Net interest margin (5) |
|
|
|
|
|
|
5.59 |
% |
|
|
|
|
|
|
|
5.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest income
and yield are stated on a fully tax-equivalent basis using the
statutory tax rate. |
(2) Includes loans
held for sale. |
(3) Nonaccrual loans
are included in the computation of average, but unpaid interest has
not been included for purposes of determining interest income. |
(4) Short-term
investments include FHLB overnight deposits and other
interest-bearing deposits. |
(5) Net interest
margin is calculated as net interest income divided by total
interest-earning assets. |
|
NORTHEAST BANK |
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS |
(Unaudited) |
(Dollars in thousands) |
|
Six Months Ended December 31, |
|
2019 |
|
|
2018 |
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
81,545 |
|
$ |
893 |
|
2.18 |
% |
|
$ |
86,599 |
|
$ |
784 |
|
1.80 |
% |
Loans (1) (2) (3) |
|
948,625 |
|
|
39,193 |
|
8.22 |
% |
|
|
901,833 |
|
|
36,460 |
|
8.02 |
% |
Federal Home Loan Bank stock |
|
1,669 |
|
|
37 |
|
4.41 |
% |
|
|
1,652 |
|
|
49 |
|
5.88 |
% |
Short-term investments (4) |
|
68,808 |
|
|
628 |
|
1.82 |
% |
|
|
170,705 |
|
|
1,802 |
|
2.09 |
% |
Total interest-earning assets |
|
1,100,647 |
|
|
40,751 |
|
7.36 |
% |
|
|
1,160,789 |
|
|
39,095 |
|
6.68 |
% |
Cash and due from banks |
|
2,705 |
|
|
|
|
|
|
|
2,585 |
|
|
|
|
|
Other non-interest earning assets |
|
39,127 |
|
|
|
|
|
|
|
31,289 |
|
|
|
|
|
Total assets |
$ |
1,142,479 |
|
|
|
|
|
|
$ |
1,194,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities & Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
68,071 |
|
$ |
137 |
|
0.40 |
% |
|
$ |
71,866 |
|
$ |
124 |
|
0.34 |
% |
Money market accounts |
|
267,379 |
|
|
2,162 |
|
1.61 |
% |
|
|
389,757 |
|
|
3,008 |
|
1.53 |
% |
Savings accounts |
|
34,397 |
|
|
30 |
|
0.17 |
% |
|
|
35,590 |
|
|
28 |
|
0.16 |
% |
Time deposits |
|
474,270 |
|
|
6,168 |
|
2.59 |
% |
|
|
424,965 |
|
|
4,504 |
|
2.10 |
% |
Total interest-bearing deposits |
|
844,117 |
|
|
8,497 |
|
2.00 |
% |
|
|
922,178 |
|
|
7,664 |
|
1.65 |
% |
Federal Home Loan Bank advances |
|
25,625 |
|
|
343 |
|
2.66 |
% |
|
|
15,000 |
|
|
242 |
|
3.20 |
% |
Subordinated debt |
|
14,856 |
|
|
563 |
|
7.54 |
% |
|
|
24,042 |
|
|
1,174 |
|
9.69 |
% |
Capital lease obligations |
|
5,527 |
|
|
68 |
|
2.45 |
% |
|
|
525 |
|
|
14 |
|
5.29 |
% |
Total interest-bearing liabilities |
|
890,125 |
|
|
9,471 |
|
2.12 |
% |
|
|
961,745 |
|
|
9,094 |
|
1.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits and escrow accounts |
|
85,491 |
|
|
|
|
|
|
|
81,615 |
|
|
|
|
|
Other liabilities |
|
8,760 |
|
|
|
|
|
|
|
8,126 |
|
|
|
|
|
Total liabilities |
|
984,376 |
|
|
|
|
|
|
|
1,051,486 |
|
|
|
|
|
Shareholders' equity |
|
158,103 |
|
|
|
|
|
|
|
143,177 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
1,142,479 |
|
|
|
|
|
|
$ |
1,194,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
31,280 |
|
|
|
|
|
|
$ |
30,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
5.25 |
% |
|
|
|
|
|
|
|
4.80 |
% |
Net interest margin (5) |
|
|
|
|
|
|
5.65 |
% |
|
|
|
|
|
|
|
5.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest income
and yield are stated on a fully tax-equivalent basis using the
statutory tax rate. |
(2) Includes loans
held for sale. |
(3) Nonaccrual loans
are included in the computation of average, but unpaid interest has
not been included for purposes of determining interest income. |
(4) Short-term
investments include FHLB overnight deposits and other
interest-bearing deposits. |
(5) Net interest
margin is calculated as net interest income divided by total
interest-earning assets. |
|
NORTHEAST
BANK |
SELECTED
FINANCIAL HIGHLIGHTS AND OTHER DATA |
(Unaudited) |
(Dollars in
thousands, except share and per share data) |
|
Three Months Ended |
|
December 31, 2019 |
|
September 30, 2019 |
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, 2018 |
Net interest income |
$ |
15,545 |
|
|
$ |
15,737 |
|
|
$ |
17,288 |
|
|
$ |
15,033 |
|
|
$ |
15,643 |
|
Provision (credit) for loan
losses |
|
243 |
|
|
|
(136 |
) |
|
|
262 |
|
|
|
414 |
|
|
|
101 |
|
Noninterest income |
|
1,337 |
|
|
|
1,176 |
|
|
|
1,151 |
|
|
|
1,866 |
|
|
|
1,545 |
|
Noninterest expense |
|
9,789 |
|
|
|
10,354 |
|
|
|
18,504 |
|
|
|
9,752 |
|
|
|
9,903 |
|
Net income (loss) |
|
4,867 |
|
|
|
4,776 |
|
|
|
(603 |
) |
|
|
4,828 |
|
|
|
5,125 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
9,048,171 |
|
|
|
9,043,761 |
|
|
|
9,041,926 |
|
|
|
9,044,230 |
|
|
|
9,048,397 |
|
Diluted |
|
9,223,137 |
|
|
|
9,211,874 |
|
|
|
9,041,926 |
|
|
|
9,198,077 |
|
|
|
9,201,557 |
|
Earnings (loss) per
common share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.54 |
|
|
$ |
0.53 |
|
|
$ |
(0.07 |
) |
|
$ |
0.53 |
|
|
$ |
0.57 |
|
Diluted |
|
0.53 |
|
|
|
0.52 |
|
|
|
(0.07 |
) |
|
|
0.52 |
|
|
|
0.56 |
|
|
|
|
|
|
|
|
|
|
|
Operating earnings per common
share (4): |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.54 |
|
|
$ |
0.53 |
|
|
$ |
0.60 |
|
|
$ |
0.53 |
|
|
$ |
0.57 |
|
Diluted |
|
0.53 |
|
|
|
0.52 |
|
|
|
0.59 |
|
|
|
0.52 |
|
|
|
0.56 |
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common
share |
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
Return (loss) on average
assets |
|
1.68 |
% |
|
|
1.68 |
% |
|
|
(0.20 |
%) |
|
|
1.63 |
% |
|
|
1.70 |
% |
Return (loss) on average
equity |
|
12.09 |
% |
|
|
12.18 |
% |
|
|
(1.58 |
%) |
|
|
13.00 |
% |
|
|
13.94 |
% |
Net interest rate spread
(1) |
|
5.19 |
% |
|
|
5.31 |
% |
|
|
5.55 |
% |
|
|
4.81 |
% |
|
|
5.00 |
% |
Net interest margin (2) |
|
5.59 |
% |
|
|
5.72 |
% |
|
|
5.95 |
% |
|
|
5.20 |
% |
|
|
5.33 |
% |
Efficiency ratio (non-GAAP)
(3) |
|
57.98 |
% |
|
|
61.22 |
% |
|
|
100.35 |
% |
|
|
57.71 |
% |
|
|
57.62 |
% |
Noninterest expense to average
total assets |
|
3.38 |
% |
|
|
3.64 |
% |
|
|
6.18 |
% |
|
|
3.29 |
% |
|
|
3.28 |
% |
Average interest-earning
assets to average interest-bearing liabilities |
|
123.50 |
% |
|
|
123.81 |
% |
|
|
121.71 |
% |
|
|
121.65 |
% |
|
|
120.67 |
% |
|
|
|
|
|
|
|
|
|
|
Operating return on average
assets (non-GAAP) (4) |
|
1.68 |
% |
|
|
1.68 |
% |
|
|
1.81 |
% |
|
|
1.63 |
% |
|
|
1.70 |
% |
Operating return on average
equity (non-GAAP) (4) |
|
12.09 |
% |
|
|
12.18 |
% |
|
|
14.18 |
% |
|
|
13.00 |
% |
|
|
13.94 |
% |
Operating efficiency ratio
(non-GAAP) (3) (4) |
|
57.98 |
% |
|
|
61.22 |
% |
|
|
55.15 |
% |
|
|
57.71 |
% |
|
|
57.62 |
% |
Operating noninterest expense
to average total assets (non- GAAP) (4) |
|
3.38 |
% |
|
|
3.64 |
% |
|
|
3.40 |
% |
|
|
3.29 |
% |
|
|
3.28 |
% |
|
As of: |
|
December 31, 2019 |
|
September 30, 2019 |
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, 2018 |
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
Originated portfolio: |
|
|
|
|
|
|
|
|
|
Residential real estate |
$ |
1,586 |
|
|
$ |
1,515 |
|
|
$ |
2,772 |
|
|
$ |
2,317 |
|
|
$ |
2,595 |
|
Commercial real estate |
|
8,032 |
|
|
|
4,530 |
|
|
|
3,892 |
|
|
|
3,336 |
|
|
|
2,764 |
|
Commercial and industrial |
|
622 |
|
|
|
87 |
|
|
|
1,284 |
|
|
|
1,495 |
|
|
|
1,420 |
|
Consumer |
|
59 |
|
|
|
136 |
|
|
|
148 |
|
|
|
236 |
|
|
|
216 |
|
Total originated
portfolio |
|
10,299 |
|
|
|
6,268 |
|
|
|
8,096 |
|
|
|
7,384 |
|
|
|
6,995 |
|
Total purchased portfolio |
|
8,489 |
|
|
|
7,834 |
|
|
|
6,671 |
|
|
|
5,366 |
|
|
|
5,351 |
|
Total nonperforming loans |
|
18,788 |
|
|
|
14,102 |
|
|
|
14,767 |
|
|
|
12,750 |
|
|
|
12,346 |
|
Real estate owned and other
repossessed collateral, net |
|
2,505 |
|
|
|
1,936 |
|
|
|
1,957 |
|
|
|
2,014 |
|
|
|
1,463 |
|
Total nonperforming
assets |
$ |
21,293 |
|
|
$ |
16,038 |
|
|
$ |
16,724 |
|
|
$ |
14,764 |
|
|
$ |
13,809 |
|
|
|
|
|
|
|
|
|
|
|
Past due loans to total
loans |
|
2.84 |
% |
|
|
1.50 |
% |
|
|
1.50 |
% |
|
|
2.16 |
% |
|
|
1.95 |
% |
Nonperforming loans to total
loans |
|
1.88 |
% |
|
|
1.51 |
% |
|
|
1.51 |
% |
|
|
1.33 |
% |
|
|
1.32 |
% |
Nonperforming assets to total
assets |
|
1.76 |
% |
|
|
1.43 |
% |
|
|
1.45 |
% |
|
|
1.20 |
% |
|
|
1.16 |
% |
Allowance for loan losses to
total loans |
|
0.54 |
% |
|
|
0.57 |
% |
|
|
0.58 |
% |
|
|
0.59 |
% |
|
|
0.57 |
% |
Allowance for loan losses to
nonperforming loans |
|
28.77 |
% |
|
|
37.44 |
% |
|
|
38.61 |
% |
|
|
44.38 |
% |
|
|
42.99 |
% |
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans
to total capital (5) |
|
292.58 |
% |
|
|
262.92 |
% |
|
|
282.05 |
% |
|
|
251.02 |
% |
|
|
242.38 |
% |
Net loans to core deposits
(6) |
|
106.52 |
% |
|
|
102.59 |
% |
|
|
103.33 |
% |
|
|
94.19 |
% |
|
|
94.84 |
% |
Purchased loans to total
loans, including held for sale |
|
36.65 |
% |
|
|
35.50 |
% |
|
|
33.37 |
% |
|
|
33.27 |
% |
|
|
35.17 |
% |
Equity to total assets |
|
13.53 |
% |
|
|
14.08 |
% |
|
|
13.31 |
% |
|
|
12.44 |
% |
|
|
12.44 |
% |
Common equity tier 1 capital
ratio |
|
16.48 |
% |
|
|
16.92 |
% |
|
|
15.89 |
% |
|
|
16.23 |
% |
|
|
16.04 |
% |
Total capital ratio |
|
18.52 |
% |
|
|
19.07 |
% |
|
|
18.01 |
% |
|
|
19.33 |
% |
|
|
19.15 |
% |
Tier 1 leverage capital
ratio |
|
14.26 |
% |
|
|
14.06 |
% |
|
|
12.86 |
% |
|
|
13.58 |
% |
|
|
13.20 |
% |
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
$ |
163,400 |
|
|
$ |
158,101 |
|
|
$ |
153,580 |
|
|
$ |
153,188 |
|
|
$ |
148,491 |
|
Less: Preferred stock |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common shareholders'
equity |
|
163,400 |
|
|
|
158,101 |
|
|
|
153,580 |
|
|
|
153,188 |
|
|
|
148,491 |
|
Less: Intangible assets
(7) |
|
(2,641 |
) |
|
|
(2,940 |
) |
|
|
(3,285 |
) |
|
|
(3,485 |
) |
|
|
(3,583 |
) |
Tangible common shareholders'
equity (non-GAAP) |
$ |
160,759 |
|
|
$ |
155,161 |
|
|
$ |
150,295 |
|
|
$ |
149,703 |
|
|
$ |
144,908 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
9,052,013 |
|
|
|
9,038,912 |
|
|
|
9,042,109 |
|
|
|
9,041,868 |
|
|
|
9,048,863 |
|
Book value per common
share |
$ |
18.05 |
|
|
$ |
17.49 |
|
|
$ |
16.98 |
|
|
$ |
16.94 |
|
|
$ |
16.41 |
|
Tangible book value per share
(non-GAAP) (8) |
|
17.76 |
|
|
|
17.17 |
|
|
|
16.62 |
|
|
|
16.56 |
|
|
|
16.01 |
|
|
|
|
|
|
|
|
|
|
|
(1) The net
interest rate spread represents the difference between the
weighted-average yield on interest-earning assets and the
weighted-average cost of interest-bearing liabilities for the
period. |
(2) The net interest
margin represents net interest income as a percent of average
interest-earning assets for the period. |
(3) The efficiency
ratio represents noninterest expense divided by the sum of net
interest income (before the loan loss provision) plus noninterest
income. |
(4) Operating
earnings per common share, operating return on average assets,
operating return on average equity, operating efficiency ratio, and
operating noninterest expense to average total assets utilize net
operating earnings (non-GAAP). Net operating earnings is
calculated as net loss of $603 thousand, less non-recurring
reorganization expense, net of tax, of $6.0 million, for net
operating earnings of $5.4 million. |
(5) 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. |
(6) Core deposits
include all non-maturity deposits and maturity deposits less than
$250 thousand. Loans include loans held for sale.(7) Includes the
core deposit intangible asset and loan servicing rights asset. |
(8) Tangible book
value per share represents total shareholders' equity less the sum
of preferred stock and intangible assets divided by common shares
outstanding. |
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