Northeast Bancorp
Nov 6, 2017

Northeast Bancorp Reports Revised First Quarter Results and Declares Dividend

LEWISTON, Maine, Nov. 06, 2017 (GLOBE NEWSWIRE) -- **The press release dated October 24, 2017 has been amended to reflect the adoption of ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). For the quarter ended September 30, 2017, the adoption of ASU 2016-09 resulted in the recognition of an income tax benefit of $818 thousand, which increased net income to $4.6 million, and increased earnings per diluted common share by $0.08 to $0.50 per diluted common share. See "Explanatory Note" in Form 8-K/A filed on November 6, 2017 for further detail.

The amended release follows:

Northeast Bancorp Reports Revised First Quarter Results and Declares Dividend

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 revised net income of $4.6 million, or $0.50 per diluted common share, for the quarter ended September 30, 2017, compared to net income of $1.8 million, or $0.19 per diluted common share, for the quarter ended September 30, 2016.

On October 24, 2017, the Board of Directors declared a cash dividend of $0.01 per share, payable on November 20, 2017 to shareholders of record as of November 6, 2017.

"We began our fiscal year with a solid quarter," said Richard Wayne, President and Chief Executive Officer. "Our earnings of $0.50 per diluted common share, compared to $0.19 per diluted share in the quarter ended September 30, 2016, were positively affected by transactional income from loan payoffs in the purchased portfolio and gains from the sale of SBA and residential loans. This helped us achieve a return on equity of 14.6%, compared to 6.1% in the quarter ended September 30, 2016, as well as a return on assets of 1.7% and an efficiency ratio of 57.1%."

As of September 30, 2017, total assets were $1.0 billion, a decrease of $27.2 million, or 2.5%, from total assets of $1.1 billion as of June 30, 2017. The principal components of the change in the balance sheet follow:

  1. $74.4 million of loans were originated or acquired during the quarter ended September 30, 2017. Loans generated by the Bank's Loan Acquisition and Servicing Group ("LASG") totaled $44.5 million, which consisted of $3.7 million of purchased loans, at an average price of 84.6% of unpaid principal balance, and $40.8 million of originated loans. The Bank's Small Business Administration and United States Department of Agriculture ("SBA") Division closed $7.8 million of new loans during the quarter, of which $5.9 million were funded. In addition, the Company sold $9.1 million of the guaranteed portion of SBA loans in the secondary market, of which $3.1 million were originated in the current quarter and $6.0 million were originated or purchased in prior quarters. Residential loan production sold in the secondary market totaled $19.2 million for the quarter.

    In totality, the loan portfolio - excluding loans held for sale - has decreased by $19.6 million, or 2.5%, compared to June 30, 2017, primarily due to payoffs, pay-downs and sales in the portfolio, partially offset by originations.

    The following table highlights the changes in the loan portfolio for the three months ended September 30, 2017:
  
 Three Months Ended
September 30, 2017
  
Loan Portfolio Changes:(Dollars in thousands)
LASG originations and acquisitions $44,430 
SBA and USDA funded originations 5,913 
Community Banking Division originations 22,147 
SBA loan sales (9,135)
Residential loan sales (19,153)
Transfer to real estate owned (1,214)
Payoffs, pay-downs and amortization, net (62,599)
Net change$(19,611)
    

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 September 30, 2017
    (Dollars in millions)
Total Loans Purchased loans may not exceed 40% of total loans $126.5
Regulatory Capital Non-owner occupied commercial real estate loans may not exceed 300% of total capital  $207.1
      

An overview of the Bank's LASG portfolio follows:

  
 LASG Portfolio
 Three Months Ended September 30,
 2017 2016
 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$4,318  $40,779  $- $45,097  $16,790  $42,002  $-  $58,792 
Net investment basis 3,651   40,779   -  44,430   13,853   42,002   -   55,855 
                               
Loan returns during the period:                              
Yield (1) 12.28%  6.35%  -  8.85%  10.40%  5.88%  0.50%  7.58%
Total Return (1) (2) 12.28%  6.35%  -  8.85%  10.43%   5.88%  0.50%  7.59%
                               
                                
Total loans as of period end:                              
Unpaid principal balance$262,144  $340,756  $- $602,900  $269,462  $206,748  $48,000  $524,210 
Net investment basis 231,232   340,756   -  571,988   237,103   206,748   48,000   491,851 
                               
(1) Purchased loan balances include loans held for sale of $1.2 million and $789 thousand as of September 30, 2017 and 2016, respectively.
(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, which includes 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.
 
  1. Deposits decreased by $27.1 million, or 3.0%, from June 30, 2017, attributable primarily to a decrease in time deposits of $35.7 million, or 10.6%, partially offset by growth in non-maturity (demand, savings and interest checking, and money market) accounts, which increased by $8.6 million, or 1.6%.
     
  2. Shareholders' equity increased by $3.9 million from June 30, 2017, primarily due to earnings of $4.6 million, partially offset by stock option exercises which decreased additional paid-in-capital by $917 thousand. Additionally, there was stock-based compensation of $220 thousand, a decrease in accumulated other comprehensive loss of $104 thousand and $87 thousand in dividends paid on common stock.

Net income increased by $2.8 million to $4.6 million for the quarter ended September 30, 2017, compared to $1.8 million for the quarter ended September 30, 2016.

  1. Net interest and dividend income before provision for loan losses increased by $3.5 million for the quarter ended September 30, 2017, compared to the quarter ended September 30, 2016. The increase is primarily due to higher transactional income on purchased loans and higher average balances in the total loan portfolio. This increase was partially offset by higher rates and higher average deposit balances.

    The following table summarizes interest income and related yields recognized on the loan portfolios:
  
 Interest Income and Yield on Loans
 Three Months Ended September 30,
 2017  2016
 Average Interest   Average Interest  
 Balance (1) Income (2) Yield Balance (1) Income (2)  Yield
 (Dollars in thousands)
Community Banking Division$150,178 $1,746 4.61% $ 205,765 $ 2,401 4.63%
SBA 53,527  941 6.97%  31,148  519 6.61%
LASG:               
Originated 328,775  5,265 6.35%   185,109   2,742 5.88%
Purchased 240,136  7,431 12.28%    231,999   6,081 10.40%
Secured Loans to Broker-Dealers -   - 0.00%  48,000  60 0.50%
Total LASG 568,911  12,696 8.85%    465,108   8,883 7.58%
Total$772,616 $15,383 7.90% $ 702,021 $ 11,803 6.67%
                  
(1) Includes loans held for sale.
(2) SBA interest income includes SBA fees of $48 thousand and $50 thousand for the quarters ended September 30, 2017 and 2016, respectively.
 

The components of transactional income are set forth in the table below entitled "Total Return on Purchased Loans." When compared to the three months ended September 30, 2016, transactional income increased by $1.5 million. The total return on purchased loans for the three months ended September 30, 2017 was 12.28%. The increase over the prior comparable period was primarily due to higher average balances and transactional income in the three months ended September 30, 2017. The following table details the total return on purchased loans:

  
 Total Return on Purchased Loans
 Three Months Ended September 30,
 2017 2016
 Income Return (1) Income Return (1)
 (Dollars in thousands)
Regularly scheduled interest and accretion$4,613 7.62% $4,754 8.13%
Transactional income:         
Gain on loan sales   - 0.00%    - 0.00%
Gain on sale of real estate owned - 0.00%     19 0.03%
Other noninterest income    - 0.00%     - 0.00 %
Accelerated accretion and loan fees   2,818 4.66%    1,327 2.27%
Total transactional income   2,818 4.66%    1,346 2.30%
Total$  7,431 12.28% $  6,100 10.43%
            
(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 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.
 
  1. Noninterest income increased by $150 thousand for the quarter ended September 30, 2017, compared to the quarter ended September 30, 2016, principally due to the following:
    • An increase in gain on sale of SBA loans of $276 thousand, due to a higher dollar amount sold in the quarter; and
    • An increase in fees for other services to customers of $118 thousand, due to higher loan servicing fees on SBA loans sold.
    • The increases in noninterest income were partially offset by a decrease in gain on sale of residential loans held for sale of $251 thousand, due to a lower volume sold in the quarter.

  2. Noninterest expense increased by $88 thousand for the quarter ended September 30, 2017, compared to the quarter ended September 30, 2016, primarily due to the following:
    • An increase in data processing fees of $183 thousand , primarily due to the outsourcing of data processing.
    • The increase in data processing fees was partially offset by a decrease in occupancy and equipment expense of $120 thousand, primarily due to lower computer equipment and software deprecation.
       
  3. Income tax expense increased by $602 thousand for the quarter ended September 30, 2017, compared to the quarter ended September 30, 2016, primarily due to the following:
    • An increase in income before income tax expense of $3.4 million, due primarily to the increase in net interest and dividend income before provision for loan losses of $3.5 million.
    • The increase in income before income tax expense was offset by an $818 thousand income tax benefit arising from the Company's adoption of ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting in the current quarter, whereby the tax effects of exercised or vested awards are now treated as a discrete item in the reporting period in which they occur, and are recorded as an income tax benefit to the income statement.

As of September 30, 2017, nonperforming assets totaled $18.7 million, or 1.78% of total assets, as compared to $14.8 million, or 1.37% of total assets, as of June 30, 2017.

As of September 30, 2017, past due loans totaled $12.1 million, or 1.60% of total loans, as compared to $13.4 million, or 1.72% of total loans as of June 30, 2017.

As of September 30, 2017, the Company's Tier 1 Leverage Ratio was 12.8%, compared to 12.8% at June 30, 2017, and the Total Capital Ratio was 20.0%, compared to 19.5% at June 30, 2017. The increase in the Total Capital Ratio resulted primarily from the net decrease in the loan portfolio, offset by earnings.

About Northeast Bancorp
Northeast Bancorp (NASDAQ:NBN) is the holding company for Northeast Bank, a full-service bank headquartered in Lewiston, Maine. We offer personal and business banking services to the Maine and New Hampshire markets via ten branches and two loan production offices. Our Loan Acquisition and Servicing Group ("LASG") purchases and originates commercial loans on a nationwide basis and our SBA Division supports the needs of growing businesses nationally. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

Non-GAAP Financial Measures
In 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, and efficiency ratio. Northeast's management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Northeast believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company's control. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; competitive pressures from other financial institutions; the effects of weakness in general economic conditions on a national basis or in the local markets in which the Company operates, including changes which adversely affect borrowers' ability to service and repay our loans; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of loan loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changing government regulation; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Company's financial statements will become impaired; 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)
 September 30, 2017 June 30, 2017
Assets     
Cash and due from banks$3,528  $3,582 
Short-term investments 147,287   159,701 
Total cash and cash equivalents 150,815   163,283 
      
      
Available-for-sale securities, at fair value 94,508   96,693 
      
Residential real estate loans held for sale 7,106   4,508 
SBA loans held for sale 2,400   191 
Total loans held for sale 9,506   4,699 
       
      
Loans     
Commercial real estate 471,846   498,004 
Commercial and industrial 183,493   175,654 
Residential real estate 100,124   101,168 
Consumer 4,121   4,369 
Total loans 759,584   779,195 
Less: Allowance for loan losses 4,034   3,665 
Loans, net 755,550   775,530 
      
      
Premises and equipment, net 7,274   6,937 
Real estate owned and other repossessed collateral, net 2,040   826 
Federal Home Loan Bank stock, at cost 1,938   1,938 
Intangible assets, net 1,191   1,300 
Servicing rights, net 2,955   2,846 
Bank owned life insurance 16,291   16,179 
Other assets 7,569   6,643 
Total assets$1,049,637  $1,076,874 
      
Liabilities and Shareholders' Equity     
Deposits     
Demand$74,731  $69,827 
Savings and interest checking 105,691   108,417 
Money market 380,992   374,569 
Time 301,309   337,037 
Total deposits 862,723   889,850 
      
Federal Home Loan Bank advances 20,004   20,011 
Subordinated debt 23,705   23,620 
Capital lease obligation 808   873 
Other liabilities 15,685   19,723 
Total liabilities 922,925   954,077 
      
Commitments and contingencies -   - 
      
      
Shareholders' equity     
Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares    
issued and outstanding at September 30, 2017 and June 30, 2017 -   - 
Voting common stock, $1.00 par value, 25,000,000 shares authorized;     
7,899,159 and 7,840,460 shares issued and outstanding at    
September 30, 2017 and June 30, 2017, respectively 7,899   7,841 
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized;     
991,194 shares issued and outstanding at both     
September 30, 2017 and June 30, 2017991  991 
Additional paid-in capital 76,709    77,455 
Retained earnings 42,641   38,142 
Accumulated other comprehensive loss (1,528)  (1,632)
Total shareholders' equity 126,712   122,797 
Total liabilities and shareholders' equity$1,049,637  $1,076,874 
        



  
NORTHEAST BANCORP AND SUBSIDIARY 
CONSOLIDATED STATEMENTS OF INCOME 
(Unaudited) 
(Dollars in thousands, except share and per share data) 
 Three Months Ended September 30,
 2017 2016 
Interest and dividend income:      
Interest and fees on loans$15,383 $11,803 
Interest on available-for-sale securities 266  239 
Other interest and dividend income 529  215 
Total interest and dividend income 16,178  12,257 
      
Interest expense:     
Deposits 2,176  1,754 
Federal Home Loan Bank advances 172  255 
Subordinated debt 508  459 
Obligation under capital lease agreements 11  14 
Total interest expense 2,867  2,482 
Net interest and dividend income before provision for loan losses 13,311  9,775 
Provision for loan losses 354  193 
Net interest and dividend income after provision for loan losses 12,957  9,582 
      
Noninterest income:     
Fees for other services to customers 526  408 
Gain on sales of residential loans held for sale 291  542 
Gain on sales of SBA loans 1,019  743 
Loss recognized on real estate owned and other repossessed collateral, net -  (14)
Bank owned life insurance income 112  114 
Other noninterest income 10  15 
Total noninterest income 1,958  1,808 
      
Noninterest expense:     
Salaries and employee benefits 5,254  5,314 
Occupancy and equipment expense 1,109  1,229 
Professional fees 442  496 
Data processing fees 604  421 
Marketing expense 87  87 
Loan acquisition and collection expense 365  227 
FDIC insurance premiums 80   124 
Intangible asset amortization 109  109 
Other noninterest expense  664  619 
Total noninterest expense 8,714  8,626 
Income before income tax expense 6,201  2,764 
Income tax expense  1,615  1,013 
Net income$4,586 $1,751 
      
      
Weighted-average shares outstanding:     
Basic 8,841,511  9,106,144 
Diluted 9,089,936  9,133,383 
      
Earnings per common share:     
Basic$0.52 $0.19 
Diluted 0.50  0.19 
       
Cash dividends declared per common share$0.01 $0.01 
       


 
NORTHEAST BANCORP AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
 Three Months Ended September 30,
 2017 2016
   Interest Average   Interest  Average
 Average Income/ Yield/ Average Income/ Yield/
 Balance Expense Rate Balance Expense  Rate
Assets:                
Interest-earning assets:               
Investment securities$95,827 $266 1.10% $94,899 $239 1.00%
Loans (1) (2) (3) 772,616  15,393 7.90%  702,021  11,821 6.68%
Federal Home Loan Bank stock 1,938  20 4.09%  2,408  23 3.79%
Short-term investments (4) 160,354  509 1.26%  154,392  192 0.49%
Total interest-earning assets 1,030,735  16,188 6.23%  953,720  12,275 5.11%
Cash and due from banks 3,134       2,941     
Other non-interest earning assets 30,887       30,812     
Total assets$1,064,756      $987,473     
                
Liabilities & Shareholders' Equity:               
Interest-bearing liabilities:               
NOW accounts$69,577 $51 0.29% $70,850 $51 0.29%
Money market accounts 387,632  1,097 1.12%  291,734  682 0.93%
Savings accounts 37,033  13 0.14%  35,769  12 0.13%
Time deposits 312,485  1,015 1.29%  336,271  1,009 1.19%
Total interest-bearing deposits  806,727  2,176 1.07%  734,624  1,754 0.95%
Federal Home Loan Bank advances 20,007  172 3.41%  30,061  255 3.37%
Subordinated debt 23,661  508 8.52%  23,360  459 7.80%
Capital lease obligation 830  11 5.26%  1,087  14 5.11%
Total interest-bearing liabilities 851,225  2,867 1.34%  789,132  2,482 1.25%
                
Non-interest bearing liabilities:               
Demand deposits and escrow accounts 80,565       75,672     
Other liabilities 8,464       8,213     
Total liabilities 940,254       873,017     
Shareholders' equity 124,502       114,456     
Total liabilities and shareholders' equity$1,064,756      $987,473     
                
Net interest income (5)   $13,321      $9,793  
                
Interest rate spread      4.89%       3.86%
Net interest margin (6)      5.13%       4.07%
                
(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) Includes tax exempt interest income of $10 thousand and $18 thousand for the three months ended September 30, 2017 and 2016, respectively.
(6) Net interest margin is calculated as net interest income divided by total interest-earning assets.
 


 
NORTHEAST BANCORP AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS AND OTHER DATA
(Unaudited)
(Dollars in thousands, except share and per share data)
 Three Months Ended:
 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016
Net interest income$13,311  $13,757  $12,459   $11,833  $9,775 
Provision for loan losses 354   389   384   628   193 
Noninterest income  1,958   2,890   2,308   2,690   1,808 
Noninterest expense 8,714   9,364   8,842   8,956   8,626 
Net income 4,586    4,027   3,461   3,100   1,751 
          
Weighted-average common shares outstanding:         
Basic 8,841,511   8,823,679   8,830,442   8,831,235   9,106,144 
Diluted 9,089,936   8,979,471   8,893,534   8,864,618   9,133,383 
Earnings per common share:          
Basic$0.52   $0.46  $0.39  $0.35  $0.19 
Diluted 0.50   0.45   0.39   0.35   0.19 
Dividends per common share 0.01   0.01   0.01   0.01   0.01 
          
Return on average assets 1.71%  1.57%  1.37%  1.24%  0.70%
Return on average equity 14.61%  13.34%  12.03%  10.92%  6.07%
Net interest rate spread (1) 4.89%  5.32%  4.90%  4.72%  3.86%
Net interest margin (2) 5.13%  5.55%  5.11%   4.94%  4.07%
Efficiency ratio (non-GAAP) (3) 57.07%  56.25%  59.88%  61.67%  74.47%
Noninterest expense to average total assets  3.25%  3.64%  3.50%  3.59%  3.47%
Average interest-earning assets to average interest-bearing liabilities 121.09%  121.13%  120.84%  120.73%  120.86%
          
 As of:
 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016
Nonperforming loans:          
Originated portfolio:         
Residential real estate$3,667  $3,337  $3,265  $2,827  $3,273 
Commercial real estate 2,409   413   420   396   361 
Home equity 58   58   48   48   48 
Commercial and industrial 2,629   2,600   2,636   2,659   347 
Consumer 131   103   65   48   121 
Total originated portfolio 8,894   6,511   6,434   5,978   4,150 
Total purchased portfolio 7,758   7,452   8,388   4,219   4,773 
Total nonperforming loans 16,652   13,963   14,822   10,197   8,923 
Real estate owned and other repossessed collateral, net 2,040   826   3,761   3,145   3,774 
Total nonperforming assets$18,692  $14,789   $18,583  $13,342  $12,697 
           
Past due loans to total loans 1.60%  1.72 %  3.25%  2.85%  1.36%
Nonperforming loans to total loans 2.19%  1.79%   2.00%  1.33%  1.24%
Nonperforming assets to total assets 1.78%  1.37%  1.81%  1.32%  1.29%
Allowance for loan losses to total loans 0.53%  0.47%   0.46%  0.41%  0.35%
Allowance for loan losses to nonperforming loans 24.23%  26.25%  22.77%  30.47%  28.08%
          
Commercial real estate loans to risk-based capital (4) 166.15%  181.23%  181.83%  197.11%  179.96%
Net loans to core deposits (5) 88.68%  87.68%  87.46%  92.04%  90.22%
Purchased loans to total loans, including held for sale 30.11%  31.43%  31.87%  32.91%  32.54%
Equity to total assets 12.07%  11.40%  11.55%  11.35%  11.32%
Common equity tier 1 capital ratio 16.50%  16.00%  15.80%  14.94%  15.34%
Total capital ratio 20.04%  19.48%  19.30%  18.31%  18.81%
Tier 1 leverage capital ratio 12.77%  12.81%  12.46%  12.60%  12.25%
          
Total shareholders' equity$126,712  $122,797  $118,675  $114,942  $111,553 
Less: Preferred stock -   -   -   -   - 
Common shareholders' equity 126,712   122,797   118,675   114,942   111,553 
Less: Intangible assets (6) (4,146)  (4,146)  (3,898)  (3,856)  (3,797)
Tangible common shareholders' equity (non-GAAP)$122,566  $118,651  $114,777  $111,086  $107,756 
          
Common shares outstanding  8,890,353   8,831,654   8,815,279   8,831,235   8,831,235 
Book value per common share$14.25  $13.90  $13.46   $13.02  $12.63 
Tangible book value per share (non-GAAP) (7) 13.79   13.43   13.02   12.58   12.20 
          
(1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.
(2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period.
(3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the loan loss provision) plus noninterest income.
(4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.
(5) Core deposits include all non-maturity deposits and maturity deposits less than $250 thousand. Loans include loans held for sale.
(6) Includes the core deposit intangible asset and servicing rights asset.
(7) Tangible book value per share represents total shareholders' equity less the sum of preferred stock and intangible assets divided by common shares outstanding.
 

For More Information:
Brian Pinheiro, Interim Chief Financial Officer and Chief Risk Officer
Northeast Bank, 500 Canal Street, Lewiston, ME 04240
207.786.3245 ext. 3223
www.northeastbank.com

Source: Northeast Bancorp

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