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): April
24,
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 April 24, 2007 regarding third quarter 2007 earnings
and
the declaration of a dividend.
|
Item
7.01 Regulation FD
Disclosure.
On
April
24, 2007, Northeast Bancorp, a Maine corporation (the "Company"), issued
a press
release announcing it's earnings for the third quarter ended March 31, 2007
and
declaring the payment of a dividend. 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 third quarter ended March 31, 2007 and declaration of a
dividend. 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: April
25, 2007
|
By:
|
/s/ James
D. Delamater
|
|
James
D. Delamater
|
||
|
President
and Chief Executive Officer
|
EXHIBIT
INDEX
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
Release, dated April 24, 2007 regarding third quarter 2007 earnings
and
the declaration of a dividend.
|
|
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 3rd Quarter Earnings
and
Quarterly Dividend
Lewiston,
MAINE
(April
24, 2007) - Northeast Bancorp (AMEX: NBN), the parent company of Northeast
Bank,
reported earnings for the quarter ended March 31, 2007 of $524,967, or $0.21
per
diluted share, as compared to earnings for the same period last year of
$873,741, or $0.35 per diluted share. Earnings for the nine-month period ended
March 31, 2007 were $1,396,991, or $0.57 per diluted share, representing a
decrease of 53% from earnings for the same period last year which were
$2,987,034, or $1.17 per diluted share.
The
decrease in earnings resulted primarily from the continued themes of decreased
net interest income, primarily attributable to a compression of net interest
margin, and higher operating expenses, primarily attributable to the Company’s
expansion strategies to grow noninterest income. Core deposit growth has been
adversely affected by area competition and by significantly higher rates offered
in regional and national markets, as well as via the Internet. Consequently,
the
cost of funds is increasing more rapidly than the yield on earning
assets.
“Growing
core bank earnings continues to be a challenge,” said Jim Delamater, President
and CEO of Northeast Bancorp. “But, still, we are experiencing excellent growth
in our noninterest income, which now represents in excess of approximately
30%
of total income. Our focus on the sale of multiple financial products and
services to our customers provides our organization with a high level of product
and income diversity.”
“In
addition, we’ve enhanced our ability to provide outlets for competitive loan
products that effectively serve both the commercial and the consumer customer,
resulting in significant increases in our gain on loan sales,” continued
Delamater.
In
light
of the ongoing flat interest rate environment, the Company continued to
experience growth in noninterest income, specifically in the areas of gain
on
loan sales and trust, investment, and insurance income, partially offsetting
a
decrease in net interest income. Total noninterest income increased to
$2,471,977 for the quarter ended March 31, 2007, as compared to $1,844,476
for
the same period in 2006, an increase of 34%.
During
the past quarter, the Company also reported it acquired Southern Maine Insurance
Agency, located in Scarborough, Maine, which added $3.6 million in projected
policy premiums and brought the number of insurance offices to
eleven.
In
addition, the Board of Directors declared a dividend of $0.09 per share payable
on May 25, 2007 to shareholders of record as of the close of business on May
4,
2007. As of March 31, 2007, Northeast Bancorp had total assets of approximately
$562 million. Northeast Bancorp common shares trade on the American Stock
Exchange with approximately 2.4 million shares outstanding and, as of March
31,
2007, had a book value of $16.97 per share, an increase from $16.08 at the
end
of the same period last year.
Delamater
said, “We continue to be mindful of the quality of our balance sheet and the
integrity of our pricing strategies. It is our belief that our value is derived
by the strength of our revenue streams, our balance sheet and credit quality,
and foremost, our ability to serve our markets from 23 retail outlets and
deliver a broad range of financial products and services, including investment,
insurance, wealth management, with traditional banking at our core. We truly
have created a full-service financial institution.”
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 retail and insurance outlets in western, central, and mid-coastal
Maine
and derives its income from a combination of traditional banking services and
non-traditional financial products and services including insurance and
investments.
Management
encourages present and prospective shareholders to contact President and 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 wishing to utilize the services of Northeast Bancorp
or
its subsidiaries or interested in learning more about the Company can access
its
web site at www.northeastbank.com.
This
communication contains certain “forward-looking statements”. 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, and other factors. These
statements speak only as of the date of this report and we do 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 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 the 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, 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
|
Nine
Months Ended
|
||||||||||||||||||
|
March
31,
|
%
|
March
31,
|
%
|
||||||||||||||||
|
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
||||||||||||||
|
Selected
financial information
|
|||||||||||||||||||
|
Income
statement data:
|
|||||||||||||||||||
|
Interest
income
|
$
|
8,738
|
$
|
8,610
|
1
|
%
|
$
|
26,662
|
$
|
26,057
|
2
|
%
|
|||||||
|
Interest
expense
|
5,028
|
4,181
|
20
|
%
|
14,969
|
12,163
|
23
|
%
|
|||||||||||
|
Net
interest income
|
3,710
|
4,429
|
-16
|
%
|
11,693
|
13,894
|
-16
|
%
|
|||||||||||
|
Provision
for loan losses
|
200
|
325
|
-38
|
%
|
876
|
926
|
-5
|
%
|
|||||||||||
|
Net
interest income after
|
|||||||||||||||||||
|
provision
for loan losses
|
3,510
|
4,104
|
-14
|
%
|
10,817
|
12,968
|
-17
|
%
|
|||||||||||
|
Gain
on sale of loans
|
418
|
47
|
789
|
%
|
659
|
214
|
208
|
%
|
|||||||||||
|
Gain
on securities
|
8
|
2
|
300
|
%
|
31
|
11
|
182
|
%
|
|||||||||||
|
Other
noninterest income
|
2,046
|
1,796
|
14
|
%
|
5,265
|
4,727
|
11
|
%
|
|||||||||||
|
Noninterest
expense
|
5,265
|
4,692
|
12
|
%
|
14,899
|
13,535
|
10
|
%
|
|||||||||||
|
Operating
income before income tax
|
717
|
1,257
|
-43
|
%
|
1,873
|
4,385
|
-57
|
%
|
|||||||||||
|
Income
tax expense
|
192
|
383
|
-50
|
%
|
476
|
1,398
|
-66
|
%
|
|||||||||||
|
Net
income
|
$
|
525
|
$
|
874
|
-40
|
%
|
$
|
1,397
|
$
|
2,987
|
-53
|
%
|
|||||||
|
Per
share data:
|
|||||||||||||||||||
|
Basic
earning per common share
|
$
|
0.21
|
$
|
0.35
|
-40
|
%
|
$
|
0.57
|
$
|
1.19
|
-52
|
%
|
|||||||
|
Diluted
earnings per common share
|
$
|
0.21
|
$
|
0.35
|
-40
|
%
|
$
|
0.57
|
$
|
1.17
|
-51
|
%
|
|||||||
|
Weighted
average shares outstanding:
|
|||||||||||||||||||
|
Basic
|
2,452,632
|
2,479,835
|
-1
|
%
|
2,451,298
|
2,509,718
|
-2
|
%
|
|||||||||||
|
Diluted
|
2,471,476
|
2,509,369
|
-2
|
%
|
2,471,156
|
2,543,791
|
-3
|
%
|
|||||||||||
|
Book
value per share
|
16.97
|
16.08
|
16.97
|
16.08
|
|||||||||||||||
|
Tangible
book value per share
|
14.33
|
15.10
|
14.33
|
15.10
|
|||||||||||||||
|
Net
interest margin
|
2.91
|
%
|
3.40
|
%
|
2.97
|
%
|
3.44
|
%
|
|||||||||||
|
Net
interest spread
|
2.42
|
%
|
2.97
|
%
|
2.58
|
%
|
3.11
|
%
|
|||||||||||
|
Return
on average assets (annualized)
|
0.38
|
%
|
0.63
|
%
|
0.33
|
%
|
0.70
|
%
|
|||||||||||
|
Return
on equity (annualized)
|
5.13
|
%
|
8.80
|
%
|
4.55
|
%
|
9.82
|
%
|
|||||||||||
|
Tier
I leverage ratio (Bank)
|
8.65
|
%
|
8.92
|
%
|
8.65
|
%
|
8.92
|
%
|
|||||||||||
|
Tier
I risk-based capital ratio (Bank)
|
11.53
|
%
|
11.98
|
%
|
11.53
|
%
|
11.98
|
%
|
|||||||||||
|
Total
risk-based capital ratio (Bank)
|
12.78
|
%
|
13.23
|
%
|
12.78
|
%
|
13.23
|
%
|
|||||||||||
|
Efficiency
ratio
|
85
|
%
|
75
|
%
|
84
|
%
|
72
|
%
|
|||||||||||
|
Nonperforming
loans
|
4,570
|
8,226
|
4,570
|
8,226
|
|||||||||||||||
|
Total
nonperforming assets
|
4,570
|
8,227
|
4,570
|
8,227
|
|||||||||||||||
|
Nonperforming
loans as a % of total loans
|
1.07
|
%
|
1.88
|
%
|
1.07
|
%
|
1.88
|
%
|
|||||||||||
|
Nonperforming
assets as a % of total assets
|
0.81
|
%
|
1.47
|
%
|
0.81
|
%
|
1.47
|
%
|
|||||||||||
|
|
March
31,
|
%
|
|||||||||||||||||
|
2007
|
2006
|
Change
|
|||||||||||||||||
|
Balance
sheet highlights:
|
|||||||||||||||||||
|
Available
for sale securities, at market
|
$
|
80,453
|
$
|
83,492
|
-4
|
%
|
|||||||||||||
|
Loans
held for sale
|
5,049
|
358
|
1310
|
%
|
|||||||||||||||
|
Loans
|
425,682
|
437,080
|
-3
|
%
|
|||||||||||||||
|
Allowance
for loan losses
|
5,756
|
5,447
|
6
|
%
|
|||||||||||||||
|
Total
assets
|
562,113
|
561,036
|
0
|
%
|
|||||||||||||||
|
Deposits:
|
|||||||||||||||||||
|
NOW
and money market
|
64,274
|
71,747
|
-10
|
%
|
|||||||||||||||
|
Savings
|
21,484
|
27,271
|
-21
|
%
|
|||||||||||||||
|
Certificates
of deposits
|
224,612
|
204,052
|
10
|
%
|
|||||||||||||||
|
Brokered
time deposits
|
36,511
|
42,561
|
-14
|
%
|
|||||||||||||||
|
Noninterest-bearing
deposits
|
35,565
|
37,766
|
-6
|
%
|
|||||||||||||||
|
Total
deposits
|
382,446
|
383,397
|
0
|
%
|
|||||||||||||||
|
Borrowings
|
100,441
|
101,460
|
-1
|
%
|
|||||||||||||||
|
Shareholders'
equity
|
41,622
|
39,303
|
6
|
%
|
|||||||||||||||
|
Shares
outstanding
|
2,452,632
|
2,444,132
|
0
|
%
|
|||||||||||||||