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:
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November
16, 2007
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(Date
of earliest event reported):
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November
14, 2007
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Commission
File No. 1-14588
NORTHEAST
BANCORP
(Exact
name of Registrant as specified in its Charter)
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Maine
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01-0425066
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(State
or other jurisdiction of incorporation)
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(IRS
Employer Identification Number)
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500
Canal Street
Lewiston,
Maine
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04240
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including area code: 207-786-3245
Former
name or former address, if changed since last Report: N/A
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:
Written
communications pursuant to Rule 425 under the Securities Act
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
Pre-commencement
to communications pursuant to Rule 13e-4(c) under the Exchange Act
Item
1.01 Entry into a Material Definitive Agreement
On
November 14, 2007, Northeast Bank Insurance Group, Inc., a wholly owned
subsidiary of Lewiston-based Northeast Bank, and Spence & Mathews, Inc.
issued a press release announcing that they have signed a purchase and sales
agreement under which Spence & Mathews will join the Northeast Bank
Insurance Group. The
purchase price for the acquisition of certain assets of Spence & Matthews
will be $4.343 million paid as follows: $500 thousand will be paid over a seven
year term with interest at the rate of 6.50%; $800 thousand will also be
financed over seven years but will be non-interest bearing; and the $3.043
million balance will be paid in cash. Once the transaction closes on November
30, 2007, Northeast Bank Insurance Group will record goodwill and intangibles
of
approximately $4.3 million.
Item
9.01 Financial Statements and Exhibits
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(c)
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Exhibits
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Exhibits
No
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Description
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99.1
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Press
Release, dated November 14, 2007 regarding purchase of Spence &
Mathews, Inc.
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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 thereunto
duly authorized.
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Date:
November 16, 2007
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NORTHEAST
BANCORP
By: /s/
James D. Delamater
James
D. Delamater
President
and Chief Executive Officer
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FOR
IMMEDIATE RELEASE
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For
More Information:
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Craig
Sargent, President
Northeast
Bank Insurance Group, Inc.
2568
Main Street, Rangeley, ME 04970
www.northeastbank.com
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1-800-284-5989
207-864-2800
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Northeast
Bank Subsidiary Enters Agreement with Spence & Mathews
Insurance
The
Largest in Scope thus far, Northeast’s 6th Deal Will
Give the
Company
Entry
to Southern ME and now NH Markets
Lewiston
& Berwick, MAINE (November 14, 2007) – Northeast Bank Insurance
Group, Inc., a wholly owned subsidiary of Lewiston-based Northeast Bank and
Spence & Mathews, Inc., an insurance agency headquartered in Berwick, ME,
announced today that they have signed a purchase and sales agreement under
which
Spence & Mathews will join the Northeast Bank Insurance
Group. Pending completion of legal work, this deal is slated to close
on November 30, 2007.
Founded
in 1935, Spence & Mathews has 16 employees located in two offices, both in
Berwick, ME and Rochester, NH. The Company represents 14 state and
national carriers, has an estimated $10 million in premiums and serves over
6000
clients.
“The
Northeast Bank Insurance model was attractive, they understand our culture,”
said Craig Linscott, owner of Spence & Mathews Insurance. “This
industry is changing at a fast pace, so we have to pool our talent and carriers
to best serve the customers and stay ahead. In this soft market
partnering with the Northeast team is the right choice for us.”
“We
were
impressed by the team at Spence & Mathews, especially the depth of knowledge
and their passion for superior customer service,” said Craig Sargent, President
of Northeast Bank Insurance Group, Inc. “The agency has a great
reputation and gives us entry to the Southern Maine and now New Hampshire
market; we are looking forward to working with them as teammates.”
Northeast
Bank Insurance Group recently completed the acquisition of the Hartford Agency
in Lewiston. This deal once completed will increase the number of
insurance agency offices to 13 throughout western, central and now southern
Maine and New Hampshire.
About
Northeast Bank Insurance Group, Inc., and Northeast Bank
Northeast
Bank Insurance Group, Inc., a wholly owned subsidiary of Northeast Bank,
headquartered in Rangeley, Maine, provides comprehensive insurance and financial
services with an emphasis on needs-based advice to meet the demands of its
consumer and business customers. The full spectrum of insurance services
includes personal, business and financial coverage.
Northeast
Bank, a leader in providing one-stop shopping for financial services, is
headquartered in Lewiston Maine. A wholly owned subsidiary
of Northeast Bancorp (NASDAQ: NBN), Northeast Bank has over $572 million in
assets and operates 23 retail locations throughout western, central and
mid-coast Maine, including 11 bank branches, 11 insurance agencies and a
financial center. To learn more about Northeast Bank Insurance Group, Inc.,
and
Northeast Bank, call 1-800-284-5989 or visit
www.northeastbank.com.