For the quarterly period
ended
|
December
31, 2007
|
Commission File
Number
|
1-14588
|
Maine
|
01-0425066
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer Identification
No.)
|
500 Canal Street,
Lewiston,
Maine
|
04240
|
(Address of Principal executive
offices)
|
(Zip
Code)
|
Part I.
|
Financial
Information
|
|
|
Item 1.
|
Consolidated Financial
Statements
|
|
|
|
|
|
December 31, 2007 (Unaudited) and
June 30,
2007
|
|
|
|
|
|
Three Months Ended December 31,
2007 and 2006
|
Six Months Ended December 31, 2007
and 2006
|
||
|
|
|
|
|
Six Months Ended December 31, 2007
and 2006
|
|
|
|
|
|
Six Months Ended December 31, 2007
and 2006
|
|
|
|
|
|
|
|
|
|
|
Item 2.
|
|
|
|
|
|
Item 3.
|
|
|
|
|
|
Item 4.
|
|
|
|
|
Part II.
|
Other
Information
|
|
|
|
|
|
Item 1.
|
|
|
|
|
|
Item 1.a.
|
|
|
|
|
|
Item 2.
|
|
|
|
|
|
Item 3.
|
|
|
|
|
|
Item 4.
|
|
|
|
|
|
Item 5.
|
|
|
|
|
|
Item 6.
|
PART
1 - FINANCIAL INFORMATION
|
||||||||
Item
1. Financial Statements
|
||||||||
NORTHEAST
BANCORP AND SUBSIDIARY
|
||||||||
December
31,
|
June
30,
|
|||||||
2007
|
2007
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Assets
|
||||||||
Cash
and due from banks
|
$ | 7,886,393 | $ | 9,065,330 | ||||
Interest-bearing
deposits
|
1,276,044 | 1,676,391 | ||||||
Total
cash and cash equivalents
|
9,162,437 | 10,741,721 | ||||||
Available-for-sale
securities, at fair value
|
129,754,247 | 86,348,070 | ||||||
Loans
held-for-sale
|
705,523 | 1,636,485 | ||||||
Loans
receivable
|
408,235,770 | 425,571,418 | ||||||
Less
allowance for loan losses
|
5,756,000 | 5,756,000 | ||||||
Net
loans
|
402,479,770 | 419,815,418 | ||||||
Premises
and equipment, net
|
7,707,415 | 7,545,430 | ||||||
Accrued
interest receivable
|
2,530,497 | 2,586,720 | ||||||
Federal
Home Loan Bank stock, at cost
|
4,825,700 | 4,825,700 | ||||||
Federal
Reserve Bank stock, at cost
|
471,500 | 471,500 | ||||||
Goodwill
|
5,213,167 | 2,880,803 | ||||||
Intangible
assets, net of accumulated amortization of $2,929,896 at 12/31/07 and
$2,681,148 at 6/30/07
|
8,323,333 | 4,110,081 | ||||||
Bank
owned life insurance
|
12,052,066 | 9,844,584 | ||||||
Other
assets
|
5,172,089 | 5,994,468 | ||||||
Total
assets
|
$ | 588,397,744 | $ | 556,800,980 | ||||
Liabilities
and Stockholders' Equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
||||||||
Demand
|
$ | 33,271,576 | $ | 36,332,604 | ||||
NOW
|
51,065,229 | 53,405,241 | ||||||
Money
market
|
12,706,476 | 8,053,552 | ||||||
Regular
savings
|
19,674,363 | 21,145,567 | ||||||
Brokered
time deposits
|
20,956,895 | 22,546,163 | ||||||
Certificates
of deposit
|
225,974,820 | 223,070,650 | ||||||
Total
deposits
|
363,649,359 | 364,553,777 | ||||||
Federal
Home Loan Bank advances
|
80,251,677 | 93,016,698 | ||||||
Structured
repurchase agreements
|
40,000,000 | - | ||||||
Short-term
borrowings
|
36,158,969 | 33,105,377 | ||||||
Junior
subordinated debentures issued to affiliated trusts
|
16,496,000 | 16,496,000 | ||||||
Capital
lease obligation
|
2,587,844 | 2,653,511 | ||||||
Other
borrowings
|
5,028,874 | 2,292,163 | ||||||
Other
liabilities
|
3,005,825 | 3,833,576 | ||||||
Total
liabilities
|
547,178,548 | 515,951,102 | ||||||
Commitments
and contingent liabilities
|
||||||||
Stockholders'
equity
|
||||||||
Preferred
stock, $1.00 par value, 1,000,000 shares authorized; none
issued
|
- | - | ||||||
Common
stock, at stated value, 15,000,000 shares authorized; 2,324,182
and
|
||||||||
2,448,832
shares outstanding at December 31, 2007 and June 30, 2007,
respectively
|
2,324,182 | 2,448,832 | ||||||
Additional
paid-in capital
|
2,709,046 | 4,715,164 | ||||||
Retained
earnings
|
35,999,818 | 35,600,428 | ||||||
Accumulated
other comprehensive income (loss)
|
186,150 | (1,914,546 | ) | |||||
Total
stockholders' equity
|
41,219,196 | 40,849,878 | ||||||
Total
liabilities and stockholders' equity
|
$ | 588,397,744 | $ | 556,800,980 |
NORTHEAST BANCORP AND
SUBSIDIARY
|
||||||||
(Unaudited)
|
||||||||
Three Months
Ended
|
||||||||
December
31,
|
||||||||
2007
|
2006
|
|||||||
Interest and dividend
income:
|
||||||||
Interest on
loans
|
$ | 7,588,460 | $ | 7,951,759 | ||||
Interest on Federal Home Loan Bank
overnight deposits
|
24,569 | 40,432 | ||||||
Taxable interest on
available-for-sale securities
|
1,206,280 | 803,724 | ||||||
Tax-exempt interest on
available-for-sale securities
|
112,608 | 109,465 | ||||||
Dividends on available-for-sale
securities
|
33,865 | 32,484 | ||||||
Dividends on Federal Home Loan
Bank and Federal Reserve
Bank stock
|
86,127 | 86,859 | ||||||
Other interest and dividend
income
|
20,741 | 11,596 | ||||||
Total interest and dividend
income
|
9,072,650 | 9,036,319 | ||||||
Interest
expense:
|
||||||||
Deposits
|
3,412,717 | 3,352,163 | ||||||
Federal Home Loan Bank
advances
|
965,515 | 924,021 | ||||||
Structured repurchase
agreements
|
362,972 | - | ||||||
Short-term
borrowings
|
402,950 | 437,547 | ||||||
Junior subordinated debentures
issued to affiliated trusts
|
272,412 | 276,883 | ||||||
Obligation under capital lease
agreements
|
33,024 | 34,665 | ||||||
Other
borrowings
|
53,766 | 8,923 | ||||||
Total interest
expense
|
5,503,356 | 5,034,202 | ||||||
Net interest and dividend income
before provision for loan losses
|
3,569,294 | 4,002,117 | ||||||
Provision for loan
losses
|
179,653 | 375,546 | ||||||
Net interest and dividend income
after provision for loan losses
|
3,389,641 | 3,626,571 | ||||||
Noninterest
income:
|
||||||||
Fees for other services to
customers
|
269,866 | 261,533 | ||||||
Net securities (losses)
gains
|
(1,799 | ) | 17,878 | |||||
Gain on sales of
loans
|
121,287 | 144,706 | ||||||
Investment
commissions
|
586,488 | 637,383 | ||||||
Insurance
commissions
|
1,098,976 | 425,103 | ||||||
BOLI income
|
105,283 | 96,260 | ||||||
Other income
|
216,784 | 304,295 | ||||||
Total noninterest
income
|
2,396,885 | 1,887,158 | ||||||
Noninterest
expense:
|
||||||||
Salaries and employee
benefits
|
3,122,918 | 2,937,681 | ||||||
Occupancy
expense
|
439,958 | 416,615 | ||||||
Equipment
expense
|
407,829 | 386,671 | ||||||
Intangible assets
amortization
|
145,211 | 86,340 | ||||||
Other
|
1,164,934 | 1,136,848 | ||||||
Total noninterest
expense
|
5,280,850 | 4,964,155 | ||||||
Income before income tax
expense
|
505,676 | 549,574 | ||||||
Income tax
expense
|
103,248 | 132,218 | ||||||
Net income
|
$ | 402,428 | $ | 417,356 | ||||
Earnings per common
share:
|
||||||||
Basic
|
$ | 0.17 | $ | 0.17 | ||||
Diluted
|
$ | 0.17 | $ | 0.17 | ||||
Net interest margin (tax
equivalent basis)
|
2.66 | % | 3.00 | % | ||||
Net interest spread (tax
equivalent basis)
|
2.39 | % | 2.65 | % | ||||
Return on average assets
(annualized)
|
0.28 | % | 0.29 | % | ||||
Return on average equity
(annualized)
|
3.85 | % | 4.01 | % | ||||
Efficiency
ratio
|
89 | % | 84 | % |
NORTHEAST
BANCORP AND SUBSIDIARY
|
||||||||
(Unaudited)
|
||||||||
Six
Months Ended
|
||||||||
December
31,
|
||||||||
2007
|
2006
|
|||||||
Interest
and dividend income:
|
||||||||
Interest
on loans
|
$ | 15,311,638 | $ | 15,893,864 | ||||
Interest
on Federal Home Loan Bank overnight deposits
|
35,478 | 59,926 | ||||||
Taxable
interest on available-for-sale securities
|
2,179,694 | 1,607,632 | ||||||
Tax-exempt
interest on available-for-sale securities
|
223,731 | 219,847 | ||||||
Dividends
on available-for-sale securities
|
66,645 | 66,145 | ||||||
Dividends
on Federal Home Loan Bank and Federal Reserve
Bank stock
|
171,410 | 187,289 | ||||||
Other
interest and dividend income
|
40,941 | 23,606 | ||||||
Total
interest and dividend income
|
18,029,537 | 18,058,309 | ||||||
Interest
expense:
|
||||||||
Deposits
|
6,827,293 | 6,702,816 | ||||||
Federal
Home Loan Bank advances
|
2,059,689 | 1,858,658 | ||||||
Structured
repurchase agreements
|
488,961 | - | ||||||
Short-term
borrowings
|
775,376 | 745,376 | ||||||
Junior
subordinated debentures issued to affiliated trusts
|
545,892 | 554,875 | ||||||
FRB
Borrower & Custody
|
7,877 | - | ||||||
Obligation
under capital lease agreements
|
66,465 | 69,726 | ||||||
Other
borrowings
|
95,844 | 9,363 | ||||||
Total
interest expense
|
10,867,397 | 9,940,814 | ||||||
Net
interest and dividend income before provision for loan
losses
|
7,162,140 | 8,117,495 | ||||||
Provision
for loan losses
|
369,935 | 676,332 | ||||||
Net
interest and dividend income after provision for loan
losses
|
6,792,205 | 7,441,163 | ||||||
Noninterest
income:
|
||||||||
Fees
for other services to customers
|
543,478 | 528,341 | ||||||
Net
securities (losses) gains
|
(7,736 | ) | 22,264 | |||||
Gain
on sales of loans
|
274,242 | 240,491 | ||||||
Investment
commissions
|
984,499 | 1,008,992 | ||||||
Insurance
commissions
|
1,965,019 | 853,568 | ||||||
BOLI
income
|
217,049 | 193,304 | ||||||
Other income
|
409,707 | 502,625 | ||||||
Total
noninterest income
|
4,386,258 | 3,349,585 | ||||||
Noninterest
expense:
|
||||||||
Salaries
and employee benefits
|
5,984,063 | 5,711,605 | ||||||
Occupancy
expense
|
851,248 | 827,964 | ||||||
Equipment
expense
|
786,927 | 785,040 | ||||||
Intangible
assets amortization
|
248,748 | 153,101 | ||||||
Other
|
2,251,468 | 2,156,122 | ||||||
Total
noninterest expense
|
10,122,454 | 9,633,832 | ||||||
Income
before income tax expense
|
1,056,009 | 1,156,916 | ||||||
Income
tax expense
|
223,016 | 284,893 | ||||||
Net
income
|
$ | 832,993 | $ | 872,023 | ||||
Earnings
per common share:
|
||||||||
Basic
|
$ | 0.35 | $ | 0.36 | ||||
Diluted
|
$ | 0.35 | $ | 0.35 | ||||
Net
interest margin (tax equivalent basis)
|
2.71 | % | 3.05 | % | ||||
Net
interest spread (tax equivalent basis)
|
2.40 | % | 2.71 | % | ||||
Return
on average assets (annualized)
|
0.29 | % | 0.31 | % | ||||
Return
on average equity (annualized)
|
4.01 | % | 4.26 | % | ||||
Efficiency
ratio
|
88 | % | 84 | % |
NORTHEAST
BANCORP AND SUBSIDIARY
|
|||||||||||||||||||
Six
Months Ended December 31, 2007 and 2006
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
Accumulated
|
|||||||||||||||||||
Additional
|
Other
|
||||||||||||||||||
Preferred
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
|||||||||||||||
Stock
|
Stock
|
Capital
|
Earnings
|
Income
(Loss)
|
Total
|
||||||||||||||
Balance
at June 30, 2006
|
$ | - | $ | 2,447,132 | $ | 4,675,258 | $ | 34,596,204 | $ | (2,622,469 | ) | $ | 39,096,125 | ||||||
Net
income for six months ended 12/31/06
|
- | - | - | 872,023 | - | 872,023 | |||||||||||||
Other
comprehensive income net of tax:
|
|||||||||||||||||||
Net
unrealized gain on investments available
|
|||||||||||||||||||
for
sale, net of reclassification adjustment
|
- | - | - | - | 1,518,631 | 1,518,631 | |||||||||||||
Total
comprehensive income
|
2,390,654 | ||||||||||||||||||
Dividends
on common stock at $0.18 per share
|
- | - | - | (440,978 | ) | - | (440,978 | ) | |||||||||||
Stock
options exercised
|
- | 500 | 6,050 | - | - | 6,550 | |||||||||||||
Common
stock issued in connection with estate
|
- | 5,000 | 98,000 | - | - | 103,000 | |||||||||||||
Balance
at December 31, 2006
|
$ | - | $ | 2,452,632 | $ | 4,779,308 | $ | 35,027,249 | $ | (1,103,838 | ) | $ | 41,155,351 | ||||||
Balance
at June 30, 2007
|
$ | - | $ | 2,448,832 | $ | 4,715,164 | $ | 35,600,428 | $ | (1,914,546 | ) | $ | 40,849,878 | ||||||
Net
income for six months ended 12/31/07
|
- | - | - | 832,993 | - | 832,993 | |||||||||||||
Other
comprehensive income net of tax:
|
|||||||||||||||||||
Net
unrealized gain on investments available
|
|||||||||||||||||||
for
sale, net of reclassification adjustment
|
- | - | - | - | 2,100,696 | 2,100,696 | |||||||||||||
Total
comprehensive income
|
2,933,689 | ||||||||||||||||||
Dividends
on common stock at $0.18 per share
|
- | - | - | (433,603 | ) | - | (433,603 | ) | |||||||||||
Stock
options exercised
|
- | 3,000 | 29,025 | - | - | 32,025 | |||||||||||||
Stock
grant
|
- | 150 | 1,387 | - | - | 1,537 | |||||||||||||
Common
stock re-purchased
|
- | (127,800 | ) | (2,036,530 | ) | - | - | (2,164,330 | ) | ||||||||||
Balance
at December 31, 2007
|
$ | - | $ | 2,324,182 | $ | 2,709,046 | $ | 35,999,818 | $ | 186,150 | $ | 41,219,196 |
NORTHEAST BANCORP AND SUBSIDIARY
|
||||||||
(Unaudited)
|
||||||||
Six
Months Ended
|
||||||||
December
31,
|
||||||||
2007
|
2006
|
|||||||
Cash provided
by operating activities:
|
$ | 1,305,857 | $ | 1,150,327 | ||||
Cash
flows from investing activities:
|
||||||||
Federal
Home Loan Bank stock redeemed
|
- | 521,800 | ||||||
Available-for-sale
securities purchased
|
(47,643,783 | ) | (3,811,552 | ) | ||||
Available-for-sale
securities matured
|
6,657,500 | 8,866,733 | ||||||
Available-for-sale
securities sold
|
733,764 | 935,361 | ||||||
Net
change in loans
|
17,342,124 | 1,027,697 | ||||||
Net
capital expenditures
|
(703,322 | ) | (117,566 | ) | ||||
Proceeds
from sale of aquired assets
|
- | 246,610 | ||||||
Purchase
of Bank Owned Life Insurance
|
(2,000,000 | ) | - | |||||
Cash
paid in connection with purchase of branch real estate
|
- | (297,000 | ) | |||||
Cash
paid in connection with acquisition of insurance agency
|
(3,696,250 | ) | (1,275,000 | ) | ||||
Net
cash (used) provided by investing activities
|
(29,309,967 | ) | 6,097,083 | |||||
Cash
flows from financing activities:
|
||||||||
Net
change in deposits
|
(904,418 | ) | (24,022,429 | ) | ||||
Net
change in short-term borrowings
|
3,053,592 | 12,831,983 | ||||||
Dividends
paid
|
(433,603 | ) | (440,978 | ) | ||||
Proceeds
from stock issuance
|
33,562 | 6,550 | ||||||
Company
stock repurchased
|
(2,164,330 | ) | - | |||||
Advances
from the Federal Home Loan Bank
|
7,000,000 | 29,000,000 | ||||||
Repayment
of advances from the Federal Home Loan Bank
|
(13,455,021 | ) | (24,413,006 | ) | ||||
Net repayments
on Federal Home Loan Bank overnight advances
|
(6,310,000 | ) | - | |||||
Structured
repurchase agreements
|
40,000,000 | - | ||||||
Repayment
on debt from insurance agencies acquisitions
|
(329,289 | ) | - | |||||
Repayment
on capital lease obligation
|
(65,667 | ) | (62,405 | ) | ||||
Net
cash provided (used) by financing activities
|
26,424,826 | (7,100,285 | ) | |||||
Net
(decrease) increase in cash and cash equivalents
|
(1,579,284 | ) | 147,125 | |||||
Cash
and cash equivalents, beginning of period
|
10,741,721 | 12,103,721 | ||||||
Cash
and cash equivalents, end of period
|
$ | 9,162,437 | $ | 12,250,846 | ||||
Cash
and cash equivalents include cash on hand, amounts due from banks, and
interest-bearing deposits.
|
||||||||
Supplemental
schedule of noncash activities:
|
||||||||
Net
change in valuation for unrealized gains/losses, net of income
tax,
|
||||||||
on
available-for-sale securities
|
$ | 2,100,696 | $ | 1,518,631 | ||||
Common
stock issued in connection with purchase of branch real
estate
|
- | 103,000 | ||||||
Supplemental
disclosures of cash paid during the period for:
|
||||||||
Income
taxes paid, net of refunds
|
$ | 320,000 | $ | 774,500 | ||||
Interest
paid
|
10,638,842 | 9,670,773 | ||||||
Insurance
Agency acquisitions - see Note 10
|
Affiliated
Trusts
|
|
Trust
Preferred
Securities
|
|
|
Common
Securities
|
|
|
Junior
Subordinated
Debentures
|
|
|
Interest
Rate
|
|
Maturity Date
|
||||
NBN Capital Trust
II
|
|
$
|
3,000,000
|
|
|
$
|
93,000
|
|
|
$
|
3,093,000
|
|
|
|
7.63
|
%
|
March 30, 2034
|
NBN Capital Trust
III
|
|
|
3,000,000
|
|
|
|
93,000
|
|
|
|
3,093,000
|
|
|
|
6.50
|
%
|
March 30, 2034
|
NBN Capital Trust
IV
|
|
|
10,000,000
|
|
|
|
310,000
|
|
|
|
10,310,000
|
|
|
|
5.88
|
%
|
February 23, 2035
|
Total
|
|
$
|
16,000,000
|
|
|
$
|
496,000
|
|
|
$
|
16,496,000
|
|
|
|
6.32
|
%
|
|
|
December 31,
2007
|
|
|
June 30,
2007
|
|
||
Residential real
estate
|
$
|
143,621,302
|
|
|
$
|
145,184,733
|
|
Commercial real
estate
|
|
100,076,461
|
|
|
|
112,534,812
|
|
Construction
|
|
6,192,371
|
|
|
|
5,450,826
|
|
Commercial
|
|
36,236,338
|
|
|
|
40,783,958
|
|
Consumer &
Other
|
|
119,366,456
|
|
|
|
118,880,723
|
|
Total
|
|
405,492,928
|
|
|
|
422,835,052
|
|
Net Deferred
Costs
|
|
2,742,842
|
|
|
|
2,736,366
|
|
Total
Loans
|
$
|
408,235,770
|
|
|
$
|
425,571,418
|
|
|
|
Six months
Ended
December
31,
|
|
|||||
|
|
2007
|
|
|
2006
|
|
||
Balance at beginning of
period
|
|
$
|
5,756,000
|
|
|
$
|
5,496,000
|
|
Add provision charged to
operations
|
|
|
369,935
|
|
|
|
676,332
|
|
Recoveries on loans previously
charged off
|
|
|
37,630
|
|
|
|
61,156
|
|
|
|
|
6,163,565
|
|
|
|
6,233,488
|
|
Less loans charged
off
|
|
|
407,565
|
|
|
|
475,488
|
|
Balance at end of
period
|
|
$
|
5,758,000
|
|
|
$
|
5,758,000
|
|
|
|
December 31,
2007
|
|
|
June 30,
2007
|
|
||||||||||
|
|
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Amortized
Cost
|
|
|
Fair
Value
|
|
||||
Debt securities issued by U. S.
Government-sponsored enterprises
|
|
$
|
20,765,152
|
|
|
$
|
20,726,814
|
|
|
$
|
21,765,732
|
|
|
$
|
21,158,409
|
|
Mortgage-backed
securities
|
|
|
94,540,741
|
|
|
|
95,222,341
|
|
|
|
53,987,824
|
|
|
|
52,138,732
|
|
Municipal
Bonds
|
|
|
11,278,586
|
|
|
|
11,244,140
|
|
|
|
11,067,197
|
|
|
|
10,709,069
|
|
Corporate
bonds
|
|
|
500,000
|
|
|
|
501,985
|
|
|
|
500,000
|
|
|
|
484,625
|
|
Equity
securities
|
|
|
2,365,208
|
|
|
|
2,058,967
|
|
|
|
1,928,144
|
|
|
|
1,857,235
|
|
|
|
$
|
129,449,687
|
|
|
$
|
129,754,247
|
|
|
$
|
89,248,897
|
|
|
$
|
86,348,070
|
|
|
December 31,
2007
|
|
|
June 30,
2007
|
|
||||||||||
|
Amortized
Cost
|
|
|
Fair
Value
|
|
|
Amortized
Cost
|
|
|
Fair
Value
|
|
||||
Due in one year or
less
|
$
|
5,500,745
|
|
|
$
|
5,481,885
|
|
|
$
|
6,505,701
|
|
|
$
|
6,410,365
|
|
Due after one year through five
years
|
|
13,373,741
|
|
|
|
13,403,710
|
|
|
|
13,370,205
|
|
|
|
12,989,363
|
|
Due after five years through ten
years
|
|
1,212,599
|
|
|
|
1,218,197
|
|
|
|
996,925
|
|
|
|
972,840
|
|
Due after ten
years
|
|
12,456,653
|
|
|
|
12,369,147
|
|
|
|
12,460,098
|
|
|
|
11,979,535
|
|
Mortgage-backed securities
(including
securities with interest rates
ranging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from 4.0% to
6.4% maturing February
2013 to March
2037)
|
|
94,540,741
|
|
|
|
95,222,341
|
|
|
|
53,987,824
|
|
|
|
52,138,732
|
|
Equity
securities
|
|
2,365,208
|
|
|
|
2,058,967
|
|
|
|
1,928,144
|
|
|
|
1,857,235
|
|
|
$
|
129,449,687
|
|
|
$
|
129,754,247
|
|
|
$
|
89,248,897
|
|
|
$
|
86,348,070
|
|
December
31, 2007
|
||||
Principal
Amounts
|
|
Interest
Rates
|
|
Maturity Dates For Periods Ending
December 31,
|
$ 40,251,677
|
|
2.68% - 5.68%
|
|
2008
|
22,000,000
|
|
4.31 – 5.11
|
|
2009
|
3,000,000
|
|
4.99
|
|
2011
|
10,000,000
|
|
4.26
|
|
2016
|
5,000,000
|
|
4.29
|
|
2017
|
$ 80,251,677
|
|
|
|
|
June
30, 2007
|
||||
Principal
Amounts
|
|
Interest
Rates
|
|
Maturity Dates For Periods Ending
June 30,
|
$ 50,016,698
|
|
2.68% - 5.69%
|
|
2008
|
30,000,000
|
|
4.86 - 5.21
|
|
2009
|
3,000,000
|
|
4.99
|
|
2011
|
10,000,000
|
|
4.26
|
|
2017
|
$ 93,016,698
|
|
|
|
|
Amount
|
Interest
Rate
|
Cap/Floor
|
Amount of
Cap/Floor
|
Strike Rate
|
Maturity
|
|||||||||||
$ | 20,000,000 | 4.68 | % |
Purchased
Caps
|
$ | 40,000,000 | 5.50 | % |
August 28,
2012
|
|||||||
$ | 10,000,000 | 3.98 | % |
Sold Floors
|
$ | 20,000,000 | 4.86 | % |
August 28,
2012
|
|||||||
$ | 10,000,000 | 4.18 | % |
Purchased
Caps
|
$ | 10,000,000 | 4.88 | % |
December 13,
2012
|
|||||||
$ | 40,000,000 |
Purchase
Price:
|
Hartford
|
Spence &
Mathews
|
Hyler
|
|||||||||
Cash
|
$ | 425,250 | $ | 3,038,000 | $ | 233,000 | ||||||
Debt
|
933,000 | 1,300,000 | 833,000 | |||||||||
Acquisition
Costs
|
5,181 | 18,630 | 5,544 | |||||||||
Total
|
$ | 1,363,431 | $ | 4,356,630 | $ | 1,071,544 | ||||||
Allocation:
|
||||||||||||
Customer
List
|
$ | 679,000 | $ | 2,150,000 | $ | 533,000 | ||||||
Non-compete Agreement
|
100,000 | 800,000 | 200,000 | |||||||||
Goodwill
|
584,431 | 1,406,630 | 338,544 | |||||||||
Total
|
$ | 1,363,431 | $ | 4,356,630 | $ | 1,071,544 | ||||||
|
Difference
Due to
|
|
|
|
||||||
|
|
Volume
|
|
Rate
|
|
Total
|
|
|||
Investments
|
|
$
|
312,840
|
$
|
93,941
|
|
$
|
406,781
|
|
|
Loans,
net
|
|
|
(394,595
|
)
|
|
31,296
|
|
|
(363,299
|
)
|
FHLB & Other
Deposits
|
|
|
(6,091
|
)
|
|
(627
|
)
|
|
(6,718
|
)
|
Total
Interest-earnings Assets
|
|
|
(87,846
|
)
|
|
124,610
|
|
|
36,764
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
(162,996
|
)
|
|
223,550
|
|
|
60,554
|
|
Securities sold under repurchase
agreements
|
|
|
(32,041
|
)
|
|
(2,556
|
)
|
|
(34,597
|
)
|
Borrowings
|
|
|
437,761
|
|
|
5,436
|
|
|
443,197
|
|
Total Interest-bearing
Liabilities
|
|
|
242,724
|
|
226,430
|
|
|
469,154
|
|
|
Net Interest and
Dividend Income
|
|
$
|
(330,570
|
)
|
$
|
(101,820
|
)
|
$
|
(432,390
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Rate/volume amounts which are
partly attributable to rate and volume are spread proportionately between
volume and rate based on the direct change attributable to rate and
volume. Borrowings in the table include junior subordinated notes, FHLB
borrowings, structured repurchase agreements, capital lease obligation and
other borrowings. The adjustment to interest income and yield on a fully
tax equivalent basis was $50,254 and $49,821 for the three months ended
December 31, 2007 and 2006,
respectively.
|
|
|
Difference
Due to
|
|
|
|
|||||
|
|
Volume
|
|
Rate
|
|
Total
|
|
|||
Investments
|
|
$
|
393,027
|
$
|
167,261
|
|
$
|
560,288
|
|
|
Loans,
net
|
|
|
(649,214
|
)
|
|
66,988
|
|
|
(582,226
|
)
|
FHLB & Other
Deposits
|
|
|
(9,416
|
)
|
|
2,303
|
|
(7,113
|
)
|
|
Total
Interest-earnings Assets
|
|
|
(265,603
|
)
|
|
236,552
|
|
|
(29,051
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
(422,083
|
)
|
|
546,560
|
|
|
124,477
|
|
Securities sold under repurchase
Agreements
|
|
|
(3,438
|
)
|
|
33,438
|
|
30,000
|
||
Borrowings
|
|
|
720,834
|
|
|
51,273
|
|
|
772,107
|
|
Total Interest-bearing
Liabilities
|
|
|
295,313
|
|
631,271
|
|
|
926,584
|
|
|
Net Interest and
Dividend Income
|
|
$
|
(560,916
|
)
|
$
|
(394,719
|
)
|
$
|
(955,635
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Rate/volume amounts which are
partly attributable to rate and volume are spread proportionately between
volume and rate based on the direct change attributable to rate and
volume. Borrowings in the table include junior subordinated notes, FHLB
borrowings, structured repurchase agreements, capital lease obligation and
other borrowings. The adjustment to interest income and yield on a fully
tax equivalent basis was $99,833 and $100,113 for the six months ended
December 31, 2007 and 2006,
respectively.
|
|
|
|||||||||||||
|
Consumer
Loans as of
|
|
||||||||||||
|
December 31,
2007
|
|
June 30,
2007
|
|||||||||||
Indirect
Auto
|
$
|
35,525,973
|
|
|
30
|
%
|
|
$
|
36,808,246
|
|
|
31
|
%
|
|
Indirect
RV
|
|
55,667,493
|
|
|
47
|
%
|
|
|
51,611,223
|
|
|
43
|
%
|
|
Indirect Mobile
Home
|
|
23,038,110
|
|
|
19
|
%
|
|
|
24,961,562
|
|
|
21
|
%
|
|
Subtotal Indirect
|
|
114,231,576
|
|
|
96
|
%
|
|
|
113,381,031
|
|
|
95
|
%
|
|
Other
|
|
5,134,880
|
|
|
4
|
%
|
|
|
5,499,692
|
|
|
5
|
%
|
|
Total
|
$
|
119,366,456
|
|
|
100
|
%
|
|
$
|
118,880,723
|
|
|
100
|
%
|
Description
|
December 31,
2007
|
June 30,
2007
|
||||
Residential Real
Estate
|
$
|
1,228,000
|
|
$
|
477,000
|
|
Commercial Real
Estate
|
|
1,696,000
|
|
|
2,033,000
|
|
Commercial
Loans
|
|
3,456,000
|
|
|
2,104,000
|
|
Construction
|
102,000
|
-
|
||||
Consumer and
Other
|
|
960,000
|
|
|
476,000
|
|
Total
non-performing
|
$
|
7,442,000
|
|
$
|
5,090,000
|
|
12-31-07
|
9-30-07
|
6-30-07
|
3-31-07
|
12-31-06
|
||||
4.49%
|
3.11%
|
2.90%
|
2.47%
|
2.93%
|
Brokered time
deposit
|
$
126,143,000
|
Subject to policy limitation
of 25% of total assets
|
Federal Home Loan Bank of
Boston
|
$ 24,141,000
|
Unused advance capacity
subject to eligible and qualified
collateral
|
Federal Reserve Bank Discount
Window Borrower-in-Custody
|
$
26,159,000
|
Unused credit line subject
to the pledge of indirect auto loans
|
Total Unused Borrowing
Capacity
|
$
176,443,000
|
|
Affiliated
Trusts
|
Outstanding
Balance
|
Rate
|
First Call
Date
|
||||||
NBN Capital Trust
II
|
$ | 3,093,000 | 7.63 | % |
March 30,
2009
|
||||
NBN Capital Trust
III
|
3,093,000 | 6.50 | % |
March 30,
2009
|
|||||
NBN Capital Trust
IV
|
10,310,000 | 5.88 | % |
February 23,
2010
|
|||||
Total
|
$ | 16,496,000 | 6.32 | % |
|
Northeast
Bancorp
|
Actual
|
Required For Capital Adequacy
Purposes
|
Required To Be "Well Capitalized"
Under Prompt Corrective Action Provisions
|
|||||||||||||||||||||
(Dollars in
Thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of December 31,
2007:
|
|
|
|
|
|
|
||||||||||||||||||
Total capital to risk weighted
assets
|
$ | 48,877 | 12.08 |
%
|
$ | 32,368 |
>
8.00
|
%
|
$ | 40,461 | > 10.00 |
%
|
||||||||||||
Tier 1 capital to risk weighted
assets
|
$ | 41,083 | 10.15 |
%
|
$ | 16,184 | > 4.00 |
%
|
$ | 24,276 | > 6.00 |
%
|
||||||||||||
Tier 1 capital to total average
assets
|
$ | 41,083 | 7.29 |
%
|
$ | 22,547 | > 4.00 |
%
|
$ | 28,183 | > 5.00 |
%
|
Northeast
Bank
|
Actual
|
Required For Capital Adequacy
Purposes
|
Required To Be "Well Capitalized"
Under Prompt Corrective Action Provisions
|
|||||||||||||||||||||
(Dollars in
Thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of December 31,
2007:
|
|
|
|
|
|
|
||||||||||||||||||
Total capital to risk weighted
assets
|
$ | 43,718 | 10.86 |
%
|
$ | 32,204 | > 8.00 |
%
|
$ | 40,255 | > 10.00 |
%
|
||||||||||||
Tier 1 capital to risk weighted
assets
|
$ | 38,680 | 9.61 | % | $ | 16,102 | > 4.00 |
%
|
$ | 24,153 | > 6.00 |
%
|
||||||||||||
Tier 1 capital to total average
assets
|
$ | 38,680 | 6.89 |
%
|
$ | 22,443 | > 4.00 |
%
|
$ | 28,053 | > 5.00 |
%
|
Payments Due by
Period
|
||||||||||||||||||||
Contractual
Obligations
|
Total
|
Less Than
1 Year
|
1-3 Years
|
4-5 Years
|
After 5
Years
|
|||||||||||||||
FHLB
advances
|
$ | 80,251,677 | $ | 40,251,677 | $ | 22,000,000 | $ | 3,000,000 | $ | 15,000,000 | ||||||||||
Structured repurchase
agreements
|
40,000,000 | - | 40,000,000 | - | - | |||||||||||||||
Junior subordinated
notes
|
16,496,000 | - | 16,496,000 | - | - | |||||||||||||||
Capital lease
obligation
|
2,587,844 | 137,516 | 296,588 | 327,843 | 1,825,897 | |||||||||||||||
Other
borrowings
|
5,028,874 | 1,148,758 | 1,624,991 | 1,184,312 | 1,070,813 | |||||||||||||||
Total
long-term debt
|
144,364,395 | 41,537,951 | 80,417,579 | 4,512,155 | 17,896,710 | |||||||||||||||
Operating lease obligations
(1)
|
3,304,765 | 508,111 | 910,368 | 737,678 | 1,148,608 | |||||||||||||||
Total
contractual obligations
|
$ | 147,669,160 | $ | 42,046,062 | $ | 81,327,947 | $ | 5,249,833 | $ | 19,045,318 |
Amount of Commitment
Expiration - Per Period
|
||||||||||||||||||||
Commitments with off-balance sheet risk |
Total
|
Less Than
1
Year
|
1-3
Years
|
4-5
Years
|
After 5
Years
|
|||||||||||||||
Commitments to extend credit
(2)(4)
|
$ | 20,965,990 | $ | 20,965,990 | $ | - | $ | - | $ | - | ||||||||||
Commitments related to loans held
for sale(3)
|
1,138,535 | 1,138,535 | - | - | - | |||||||||||||||
Unused lines of credit
(4)(5)
|
39,287,192 | 17,642,257 | 1,465,778 | 3,218,639 | 16,960,518 | |||||||||||||||
Standby letters of credit
(6)
|
967,251 | 967,251 | - | - | - | |||||||||||||||
$ | 62,358,968 | $ | 40,714,033 | $ | 1,465,778 | $ | 3,218,639 | $ | 16,960,518 |
(1)
|
Represents an off-balance sheet
obligation.
|
(2)
|
Represents commitments outstanding
for residential real estate, commercial real estate, and commercial
loans.
|
(3)
|
Commitments of residential real
estate loans that will be held for sale.
|
(4)
|
Loan commitments and unused lines
of credit for commercial and construction loans expire or are subject to
renewal in twelve months or less.
|
(5)
|
Represents unused lines of credit
from commercial, construction, and home equity
loans.
|
(6)
|
Standby letters of credit
generally expire in twelve
months.
|
Legal
Proceedings
None.
|
|||||||||
|
|
||||||||
Risk
Factors
There have been no material
changes in the risk factors set forth in the last
10-K.
|
|||||||||
|
|
||||||||
Unregistered
Sales of Equity Securities and Use of Proceeds
The
following table provides information on the purchases made by or on behalf
of the Company of shares of Northeast Bancorp common stock during the
indicated periods.
|
|||||||||
Period
(1)
|
Total
Number
Of
Shares
Purchased
(2)
|
Average
Price
Paid per
Share
|
Total
Number of
Shares
Purchased
as
Part of Publicly
Announced
Program
|
Maximum
Number of
Shares
that May Yet be
Purchased
Under
The Program
(3)
|
|||||
Oct.
1 – Oct. 31
|
5,000
|
17.70
|
5,000
|
113,700
|
|||||
Nov.
1 – Nov. 30
|
25,000
|
15.75
|
25,000
|
88,700
|
|||||
Dec.
1 – Dec. 31
|
20,300
|
14.85
|
20,300
|
68,400
|
|||||
(1)
|
Based
on trade date, not settlement date.
|
||||||||
(2)
|
Represents
shares purchased in open-market transactions pursuant to the Company's
2006 Stock Repurchase Plan.
|
||||||||
(3)
|
On December 15, 2006, the Company
announced that its Board of Directors of the Company approved the 2006
Stock Repurchase Plan pursuant to which the Company is authorized to
repurchase in open-market transactions up to 200,000 shares from time to
time until the plan expires on December 31, 2007, unless
extended.
|
||||||||
|
|
||||||||
Defaults
Upon Senior Securities
None
|
|||||||||
|
|
||||||||
Submission
of Matters to a Vote of Security Holders
SUMMARY OF VOTING AT
11/7/2007 ANNUAL SHAREHOLDERS' MEETING
At
the Annual Meeting of Shareholders held in Auburn, Maine on November 7,
2007, the following matters were submitted to a vote of, and approved by,
the Company's shareholders, each such proposal receiving the vote of the
Company's outstanding common shares, as follows:
Proposal
1 - Election of Directors:
|
|||||||||
Votes
For
|
Votes
Withheld
|
||||||||
Conrad
L. Ayotte
|
1,735,120
|
292,863
|
|||||||
John
B. Bouchard
|
1,735,089
|
292,894
|
|||||||
James
P. Day
|
1,705,889
|
322,094
|
|||||||
James
D. Delamater
|
1,734,620
|
293,363
|
|||||||
Ronald
J. Goguen
|
1,705,089
|
322,894
|
|||||||
Judith
W. Kelley
|
1,735,220
|
292,763
|
|||||||
Philip
Jackson
|
1,734,489
|
293,494
|
|||||||
Pender
J. Lazenby
|
1,705,889
|
322,094
|
|||||||
John
C. Orestis
|
1,732,289
|
295,694
|
|||||||
John
Rosmarin
|
1,735,520
|
292,463
|
|||||||
John
H. Schiavi
|
1,732,089
|
295,894
|
|||||||
Stephen
W. Wight
|
1,732,131
|
295,852
|
|||||||
|
|
||||||||
Other
Information
None.
|
|||||||||
|
|
||||||||
Exhibits
|
|||||||||
|
List of
Exhibits:
|
||||||||
|
Exhibits
No.
|
Description
|
|||||||
3.1
|
Articles (incorporated by
reference to the Company’s June 30, 2007 10K filed on September 27,
2007)
|
||||||||
3.2
|
Bylaws (incorporated by reference
to the Company’s June 30, 2007 10K filed on September 27,
2007)
|
||||||||
|
11
|
Statement Regarding Computation of
Per Share Earnings.
|
|||||||
|
31.1
|
Certification of the Chief
Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 (Rule 13a-14(a)).
|
|||||||
|
31.2
|
Certification of the Chief
Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 (Rule 13a-14(a)).
|
|||||||
|
32.1
|
Certificate of the Chief Executive
Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 (Rule
13a-14(b)).
|
|||||||
|
32.2
|
Certificate of the Chief Financial
Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 (Rule
13a-14(b)).
|
Date: February 12, 2008
|
|
NORTHEAST
BANCORP
|
|
By:
|
/s/ James D.
Delamater
|
|
|
James D.
Delamater
|
|
|
President
and CEO
|
|
|
|
|
By:
|
/s/ Robert S.
Johnson
|
|
|
Robert S.
Johnson
|
|
|
Chief
Financial Officer
|
EXHIBIT
NUMBER
|
DESCRIPTION
|
11
|
Statement Regarding Computation of
Per Share Earnings
|
3.1
|
Articles (incorporated by
reference to the Company’s June 30, 2007 10K filed on September 27,
2007)
|
3.2
|
Bylaws (incorporated by reference
to the Company’s June 30, 2007 10K filed on September 27,
2007)
|
31.1
|
Certification of the Chief
Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 (Rule 13a-14(a)).
|
31.2
|
Certification of the Chief
Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 (Rule 13a-14(a)).
|
32.1
|
Certificate of the Chief Executive
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 (Rule
13a-14(b)).
|
32.2
|
Certificate of the Chief Financial
Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 (Rule
13a-14(b)).
|
NORTHEAST
BANCORP
|
||||||||
Exhibit
11. Statement Regarding Computation of Per Share Earnings
|
||||||||
Three
Months Ended
|
Three
Months Ended
|
|||||||
December
31, 2007
|
December
31, 2006
|
|||||||
EQUIVALENT
SHARES:
|
||||||||
Weighted
Average Shares Outstanding
|
2,357,104 | 2,452,529 | ||||||
Total
Diluted Shares
|
2,370,853 | 2,471,365 | ||||||
Net
Income
|
$ | 402,428 | $ | 417,356 | ||||
Basic
Earnings Per Share
|
$ | 0.17 | $ | 0.17 | ||||
Diluted
Earnings Per Share
|
$ | 0.17 | $ | 0.17 | ||||
Six
Months Ended
|
Six
Months Ended
|
|||||||
December
31, 2007
|
December
31, 2006
|
|||||||
EQUIVALENT
SHARES:
|
||||||||
Weighted
Average Shares Outstanding
|
2,386,528 | 2,450,646 | ||||||
Total
Diluted Shares
|
2,402,895 | 2,470,994 | ||||||
Net
Income
|
$ | 832,993 | $ | 872,023 | ||||
Basic
Earnings Per Share
|
$ | 0.35 | $ | 0.36 | ||||
Diluted
Earnings Per Share
|
$ | 0.35 | $ | 0.35 |
I,
James D. Delamater, certify that:
|
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Northeast
Bancorp;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement
of a
material fact or omit to state a material fact necessary to make
the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects
the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
and have
|
(a) Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is
being
prepared;
|
|
(b) Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|
(c) Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's fourth quarter in the case of an
annual
report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting; and
|
|
5.
|
The
registrant's other certifying officer and I have disclosed, based
on our
most recent evaluation of internal control over financial reporting,
to
the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent
functions):
|
(a) All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record,
process, summarize and report financial information;
and
|
|
(b) Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control
over financial reporting.
|
February
12, 2008
|
/s/
James D.
Delamater
|
James
D. Delamater
|
|
Chief
Executive Officer
|
I,
Robert S. Johnson, certify that:
|
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Northeast
Bancorp;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement
of a
material fact or omit to state a material fact necessary to make
the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects
the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
and have:
|
(a) Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is
being
prepared;
|
|
(b) Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|
(c) Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's fourth quarter in the case of an
annual
report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting; and
|
|
5.
|
The
registrant's other certifying officer and I have disclosed, based
on our
most recent evaluation of internal control over financial reporting,
to
the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent
functions):
|
(a) All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record,
process, summarize and report financial information;
and
|
|
(b) Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control
over financial reporting.
|
February
12, 2008
|
/s/
Robert S.
Johnson
|
Robert
S. Johnson
|
|
Chief
Financial Officer
|
In
connection with the Quarterly Report of Northeast Bancorp. (the "Company")
on Form 10-Q for the quarterly period ending December 31, 2007 as
filed
with the Securities and Exchange Commission on the date hereof (the
"Report"), I, James D. Delamater, as Chief Executive Officer of the
Company, hereby certify pursuant to 18 U.S.C. 1350, as adopted pursuant
to
906 of the Sarbanes-Oxley Act of 2002, that:
|
|
(1) The
Report fully complies with the requirements of Section 13(a) of the
Securities Exchange Act of 1934; and
|
|
(2) The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company
for the dates and the periods covered by the Report.
|
|
A
signed original of this written statement has been provided to Northeast
Bancorp and will be retained by Northeast Bancorp and furnished to
the
Securities and Exchange Commission or its staff upon
request.
|
February
12, 2008
|
/s/
James D.
Delamater
|
James
D. Delamater
|
|
Chief
Executive
Officer
|
In
connection with the Quarterly Report of Northeast Bancorp. (the "Company")
on Form 10-Q for the quarterly period ending December 31, 2007 as
filed
with the Securities and Exchange Commission on the date hereof (the
"Report"), I, Robert S. Johnson, as Chief Financial Officer of the
Company, hereby certify pursuant to 18 U.S.C. 1350, as adopted pursuant
to
906 of the Sarbanes-Oxley Act of 2002, that:
|
|
(1) The
Report fully complies with the requirements of Section 13(a) of the
Securities Exchange Act of 1934; and
|
|
(2) The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company
for the dates and the periods covered by the Report.
|
|
A
signed original of this written statement has been provided to Northeast
Bancorp and will be retained by Northeast Bancorp and furnished to
the
Securities and Exchange Commission or its staff upon
request.
|
February
12, 2008
|
/s/
Robert S.
Johnson
|
Robert
S. Johnson
|
|
Chief
Financial
Officer
|