UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of
Report (Date of earliest event
reported): August
3,
2007
NORTHEAST
BANCORP
(Exact
Name of Registrant as Specified in its Charter)
|
Maine
|
1-14588
|
01-0425066
|
|
(State
or Other Jurisdiction Incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification Number)
|
|
500
Canal Street, Lewiston,
Maine
|
04240
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
|
Registrant's
telephone number, including area code:
|
(207)
786-3245
|
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions.
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425).
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12).
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b)).
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240. Rule 13e-4(c)).
|
|
Item
9.01
|
Financial
Statements and Exhibits.
|
|
(c)
|
Exhibits.
|
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
Release, dated August 3, 2007 regarding fourth quarter and fiscal
year
2007 earnings.
|
Item
7.01 Regulation FD
Disclosure.
On
August
3, 2007, Northeast Bancorp, a Maine corporation (the "Company"), issued a press
release announcing its earnings for the fourth quarter ended June 30, 2007.
The
full text of this press release is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.
The
information contained herein, including the exhibit attached hereto, is
furnished pursuant to Item 7.01 of this Form 8-K and shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended,
or otherwise subject to the liability of that section. Further, the
information in this report (including the exhibits hereto) are not to be
incorporated by reference into any of the Company's filings with the Securities
and Exchange Commission, whether filed prior to or after the furnishing of
these
certificates, regardless of any general or specific incorporation language
in
such filing.
Item
2.02 Results of Information and Financial
Condition.
The
press
release referred to under Item 7.01 above and filed as Exhibit 99.1 hereto
included disclosure regarding the earnings and financial results of Northeast
Bancorp for the fourth quarter ended June 30, 2007. The full text of this press
release is attached hereto as Exhibit 99.1 and is incorporated herein by
reference.
The
information contained herein, including the exhibit attached
hereto, is furnished pursuant to Item 2.02 of this Form 8-K and shall
not be deemed "filed" for purposes of Section 18 of the Securities Exchange
Act
of 1934, as amended, or otherwise subject to the liability of that
section. Further, the information in this report (including the
exhibits hereto) are not to be incorporated by reference into any of the
Company's filings with the Securities and Exchange Commission, whether filed
prior to or after the furnishing of these certificates, regardless of any
general or specific incorporation language in such filing.
[Rest
of
Page Intentionally Blank. Signature on Following Page.]
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
NORTHEAST
BANCORP
|
||
|
Date: August
7, 2007
|
By:
|
/s/ James
D. Delamater
|
|
James
D. Delamater
|
||
|
President
and Chief Executive Officer
|
EXHIBIT
INDEX
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
Release, dated August 3, 2007 regarding fourth quarter and fiscal
year 2007 earnings.
|
|
FOR
IMMEDIATE RELEASE
|
 |
For
More Information:
|
Jim
Delamater, President & CEO
Northeast
Bank, 500 Canal Street, Lewiston, ME 04240
www.northeastbank.com
|
1-800-284-5989
ext. 3569
jdelamater@northeastbank.com
|
Northeast
Bancorp Announces Earnings for Year and Quarter Ended June
2007
Lewiston,
MAINE (August 3, 2007) – Northeast Bancorp (AMEX: NBN), the
parent company of Northeast Bank, reported earnings for the fiscal year ended
June 30, 2007 of $1,886,677, or $0.76 per diluted share, as compared to earnings
of $4,004,199, or $1.59 per diluted share, for the prior fiscal year. Fourth
quarter earnings for the 2007 period were $489,686, or $0.20 per diluted share,
compared to $1,017,165, or $0.41 per diluted share, for the same period in
2006.
The decline in earnings for the year-end and the quarter-end periods was
attributable to a decrease in net interest income, a decline in earning assets,
as well as to the increased cost to retain and grow core deposits and expenses
related to four previously announced insurance agency acquisitions.
Jim
Delamater, President and CEO noted “Fiscal 2007 was a year of significant change
for Northeast as we took bold moves to grow our infrastructure in support of
the
Company’s strategic plan to achieve full diversification of our revenue streams.
The most important move was the rapid expansion of our insurance subsidiary,
Northeast Bank Insurance Group, Inc., which has grown to eleven agency offices.”
The four agencies are projected to bring in over $1.5 million in projected
commission revenue and gave Northeast entry into three new markets including
Turner, Livermore Falls, and Scarborough.
Total
assets at fiscal year end were approximately $557 million as compared to
approximately $563 million at the same date in 2006. Net interest income for
the
year ended June 30, 2007 was $15,585,357, representing a 17% decrease over
$18,695,602 for the same period last year. As a result, net interest margin
for
the fiscal year (net interest income expressed as a percentage of interest
earning assets) declined from 3.49% to 2.99%.
“In
the
face of a challenging real estate market and irrational pricing, we remained
committed to maintaining a conservative pricing strategy and cultivating a
diligent credit culture; these strategies have resulted in a decline in earning
assets. We recognize that these decisions have impacted earnings in the
short-term; however, we believe that preserving the strength of the balance
sheet is the right thing to do for the long-term,” continued
Delamater.
Noninterest
income for the year ended June 30, 2007 was $7,944,827, representing a 20%
increase over $6,594,881 for the same period in 2006. This increase was
attributable to higher commission revenue from Northeast Financial, a division
of Northeast Bank, and Northeast Bank Insurance Group. Trust and private banking
services also continued to contribute to the revenue stream. In addition, gain
on loan sales increased significantly as the Company further developed
relationships with national conduit lenders for selling commercial loans and
residential real estate mortgages.
“We
are pleased with the results delivered in our financial services areas as we
develop higher income diversity and grow noninterest income, which made up
34%
of the revenue stream for the fiscal year ended June 30, 2007, an increase
of
eight percentage points over the prior fiscal year. We will continue to
demonstrate our ability to build a full-service financial company to serve
the
needs of today’s sophisticated customers.”
Northeast
Bancorp common shares trade on the American Stock Exchange with approximately
2.4 million shares outstanding and, as of June 30, 2007, book value per share
was $16.68. The Company reports that it continues to focus on increasing
shareholder value and, as part of those efforts, it regularly reviews its
capital levels and evaluates the repurchase of its common stock whenever this
action is deemed to be a good use of the Company’s funds and is in the best
interests of shareholders. Under the 2006 stock repurchase plan, 3,800 shares
were repurchased in fiscal 2007. The remaining repurchase authority under the
2006 plan is 196,200 shares.
Northeast
Bancorp, headquartered at 500 Canal Street, Lewiston, ME 04240, is the holding
company for the Maine-based Northeast Bank, founded in 1872. Northeast Bank,
together with its wholly owned subsidiary, Northeast Bank Insurance Group,
Inc.,
operates 23 retail and insurance locations and derives its income from a
combination of traditional banking services and non-traditional financial
products and services including insurance, investments, trust and private
banking.
Management
encourages present and prospective shareholders to contact President & CEO
Jim Delamater directly to discuss the Company, its products and services, and
ongoing efforts to develop shareholder value. He can be reached at
jdelamater@northeastbank.com or toll free at 1-800-284-5989. Management also
suggests that any person interested in utilizing the services of Northeast
Bancorp or its subsidiaries or interested in learning more about the Company
should access its web site at www.northeastbank.com.
This
news
release contains certain forward-looking statements with respect to the
financial condition, results of operations and business of Northeast
Bancorp. Such forward-looking statements reflect the Company’s
current views and expectations based largely on information currently available
to its management, and on its current expectations, assumptions, plan,
estimates, judgments, and projections about its business and its industry,
and
they involve inherent risks and uncertainties. Although the Company
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, contingencies, and other
factors. Accordingly, the Company is unable to provide any assurance
that its expectations will, in fact, occur or that its estimates or assumptions
will be correct. Actual results could differ materially from those
expressed or implied by such forward-looking statements due to a variety of
factors, including, but not limited to, those related to the economic
environment, particularly in the market areas in which the Company operates,
competitive products and pricing, fiscal and monetary policies of the U.S.
government, changes in government regulations affecting financial institutions,
including regulatory fees and capital requirements, changes in prevailing rates,
acquisitions and the integration of acquired businesses, credit risk management,
asset/liability management, changes in technology, changes in securities
markets, and the availability of and the costs associated with sources of
liquidity. Accordingly, investors and others are cautioned not to
place undue reliance on such forward-looking statements. For a more
complete discussion of certain risks and uncertainties affecting the Company,
please see “Item 1. Business Forward-Looking Statements and Risk
Factors” set forth in the Company’s Form 10-K for year ended June 30,
2006.
Customer
access to securities is provided through Commonwealth Financial Network, Member
NASD/SIPC. Important information—Securities, annuities, and
insurance products are not deposit products, are not FDIC insured, are subject
to investment risk, including the possible loss of principal, and are not an
obligation of or guaranteed by the Bank.
|
NORTHEAST
BANCORP
|
||||||||||||||||||||||||
|
(Dollars
in Thousands, Except Per Share and Shares Outstanding
Data)
|
||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||||||||||
|
June
30,
|
%
|
June
30,
|
%
|
|||||||||||||||||||||
|
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
|
Selected
financial information
|
||||||||||||||||||||||||
|
Income
statement data:
|
||||||||||||||||||||||||
|
Interest
income
|
$ |
8,802
|
$ |
9,011
|
-2 | % | $ |
35,682
|
$ |
35,456
|
1 | % | ||||||||||||
|
Interest
expense
|
5,128
|
4,598
|
12 | % |
20,097
|
16,761
|
20 | % | ||||||||||||||||
|
Net
interest income
|
3,674
|
4,413
|
-17 | % |
15,585
|
18,695
|
-17 | % | ||||||||||||||||
|
Provision
for loan losses
|
113
|
300
|
-62 | % |
989
|
1,226
|
-19 | % | ||||||||||||||||
|
Net
interest income after provision for loan losses
|
3,561
|
4,113
|
-13 | % |
14,596
|
17,469
|
-16 | % | ||||||||||||||||
|
Gain
on sale of loans
|
210
|
95
|
121 | % |
869
|
309
|
181 | % | ||||||||||||||||
|
Gain
on securities
|
12
|
6
|
100 | % |
42
|
17
|
147 | % | ||||||||||||||||
|
Other
noninterest income
|
1,986
|
1,930
|
3 | % |
7,034
|
6,269
|
12 | % | ||||||||||||||||
|
Noninterest
expense
|
5,176
|
4,673
|
11 | % |
20,075
|
18,209
|
10 | % | ||||||||||||||||
|
Operating
income before income tax
|
593
|
1,471
|
-60 | % |
2,466
|
5,855
|
-58 | % | ||||||||||||||||
|
Income
tax expense
|
103
|
454
|
-77 | % |
579
|
1,851
|
-69 | % | ||||||||||||||||
|
Net
income
|
$ |
490
|
$ |
1,017
|
-52 | % | $ |
1,887
|
$ |
4,004
|
-53 | % | ||||||||||||
|
Per
share data:
|
||||||||||||||||||||||||
|
Basic
earning per common share
|
$ |
0.20
|
$ |
0.42
|
-52 | % | $ |
0.77
|
$ |
1.61
|
-52 | % | ||||||||||||
|
Diluted
earnings per common share
|
$ |
0.20
|
$ |
0.41
|
-51 | % | $ |
0.76
|
$ |
1.59
|
-52 | % | ||||||||||||
|
Weighted
average shares outstanding:
|
||||||||||||||||||||||||
|
Basic
|
2,452,548
|
2,444,907
|
0 | % |
2,451,610
|
2,493,560
|
-2 | % | ||||||||||||||||
|
Diluted
|
2,468,978
|
2,469,364
|
0 | % |
2,470,670
|
2,526,095
|
-2 | % | ||||||||||||||||
|
Book
value per share
|
16.68
|
15.98
|
16.68
|
15.98
|
||||||||||||||||||||
|
Tangible
book value per share
|
13.83
|
15.03
|
13.83
|
15.03
|
||||||||||||||||||||
|
Net
interest margin
|
2.87 | % | 3.35 | % | 2.99 | % | 3.49 | % | ||||||||||||||||
|
Net
interest spread
|
2.46 | % | 2.98 | % | 2.59 | % | 3.15 | % | ||||||||||||||||
|
Return
on average assets (annualized)
|
0.36 | % | 0.72 | % | 0.34 | % | 0.70 | % | ||||||||||||||||
|
Return
on equity (annualized)
|
4.70 | % | 10.34 | % | 4.59 | % | 9.95 | % | ||||||||||||||||
|
Tier
I leverage ratio (Bank)
|
8.60 | % | 9.07 | % | 8.60 | % | 9.07 | % | ||||||||||||||||
|
Tier
I risk-based capital ratio (Bank)
|
11.45 | % | 12.18 | % | 11.45 | % | 12.18 | % | ||||||||||||||||
|
Total
risk-based capital ratio (Bank)
|
12.70 | % | 13.44 | % | 12.70 | % | 13.44 | % | ||||||||||||||||
|
Efficiency
ratio
|
88 | % | 73 | % | 85 | % | 72 | % | ||||||||||||||||
|
Nonperforming
loans
|
5,090
|
8,226
|
5,090
|
8,226
|
||||||||||||||||||||
|
Total
nonperforming assets
|
5,090
|
8,227
|
5,090
|
8,227
|
||||||||||||||||||||
|
Nonperforming
loans as a % of total loans
|
1.20 | % | 1.89 | % | 1.20 | % | 1.89 | % | ||||||||||||||||
|
Nonperforming
assets as a % of total assets
|
0.91 | % | 1.46 | % | 0.91 | % | 1.46 | % | ||||||||||||||||
|
June
30,
|
%
|
|||||||||||||||||||||||
|
2007
|
2006
|
Change
|
||||||||||||||||||||||
|
Balance
sheet highlights:
|
||||||||||||||||||||||||
|
Available
for sale securities, at market
|
$ |
86,348
|
$ |
86,138
|
0 | % | ||||||||||||||||||
|
Loans
held for sale
|
1,636
|
681
|
140 | % | ||||||||||||||||||||
|
Loans
|
425,571
|
435,663
|
-2 | % | ||||||||||||||||||||
|
Allowance
for loan losses
|
5,756
|
5,496
|
5 | % | ||||||||||||||||||||
|
Total
assets
|
556,994
|
562,918
|
-1 | % | ||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
NOW
and money market
|
61,459
|
63,862
|
-4 | % | ||||||||||||||||||||
|
Savings
|
21,145
|
24,247
|
-13 | % | ||||||||||||||||||||
|
Certificates
of deposits
|
223,071
|
217,187
|
3 | % | ||||||||||||||||||||
|
Brokered
time deposits
|
22,546
|
51,859
|
-57 | % | ||||||||||||||||||||
|
Noninterest-bearing
deposits
|
36,333
|
38,138
|
-5 | % | ||||||||||||||||||||
|
Total
deposits
|
364,554
|
395,293
|
-8 | % | ||||||||||||||||||||
|
Borrowings
|
147,564
|
124,803
|
18 | % | ||||||||||||||||||||
|
Shareholders'
equity
|
40,850
|
39,096
|
4 | % | ||||||||||||||||||||
|
Shares
outstanding
|
2,448,832
|
2,447,132
|
0 | % | ||||||||||||||||||||