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): May 5, 2011
NORTHEAST BANCORP
(Exact Name of Registrant as Specified in its Charter)
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Maine
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1-14588
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01-0425066
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(State or Other Jurisdiction Incorporation)
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(Commission File Number)
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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:
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(207) 786-3245
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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.
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. Rule 13e-4(c)).
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Item 2.02 Results of Information and Financial Condition.
On May 5, 2011, Northeast Bancorp, a Maine corporation (the "Company"), issued a press release announcing its earnings for the third quarter ended March 31, 2011 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 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.
Item 9.01 Financial Statements and Exhibits.
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(c)
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Exhibits.
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Exhibit No.
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Description
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99.1
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Press Release of the Company, dated May 5, 2011
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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 hereunto duly authorized.
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NORTHEAST BANCORP
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||
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Date: May 6, 2011
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By:
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/s/ Richard Wayne
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Richard Wayne
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||
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President and Chief Executive Officer
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EXHIBIT INDEX
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Exhibit No.
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Description
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99.1
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Press Release of the Company, dated May 5, 2011
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FOR IMMEDIATE RELEASE
For More Information: |
 |
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Claire S. Bean, Chief Financial Officer & C.O.O.
Northeast Bank, 500 Canal Street, Lewiston, ME 04240
207-786-3245ext. 6202
www.northeastbank.com
Or
Chris Delamater, VP Marketing Director
Northeast Bank, 500 Canal Street, Lewiston, ME 04240
207-786-3245 ext. 3548
www.northeastbank.com
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Northeast Bancorp Reports Third Quarter Results, Declares Dividend
Lewiston, MAINE (May 5, 2011) -- Northeast Bancorp (“Northeast” or the “Company”) (NASDAQ: NBN), a Maine-based full-service financial services company and parent of Northeast Bank (www.northeastbank.com), today reported net income of $156,000 or $0.02 per common share for the quarter ended March 31, 2011. For the 93-day period ended March 31, 2011, the Company earned $11.9 million or $3.33 per common share, results that included a $15.2 million bargain purchase gain and $3.2 million of transaction costs related to the merger of Northeast and FHB Formation LLC (“FHB”), which was consummated on December 29, 2010, and contributed approximately $16.2 million of new capital to the Company.
The Board of Directors has declared a cash dividend of $0.09 per share, payable on May 31, 2011 to shareholders of record as of May 17, 2011.
“Over the past three months, we’ve invested in positioning Northeast for future growth by substantially growing core deposits in our markets, while reducing loans outstanding and short-term borrowed funds,” said Richard Wayne, President and Chief Executive Officer of Northeast Bancorp. “Building upon Northeast’s solid community banking franchise, these investments will enable us to develop a Loan Acquisition and Servicing Group and an Online Deposit Program, both of which will create jobs and contribute to our success in the months ahead.”
Total assets as of March 31, 2011 were $607.4 million, a decrease of approximately 2.4%, or $15.2 million, compared to total assets of $622.6 million as of June 30, 2010. The principal components of the change in the balance sheet over that 9-month period were as follows:
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1.
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A $69.3 million, or 17.7%, reduction in loans outstanding, approximately half of which is attributable to loan sales, principally from the Company’s indirect consumer loan portfolio. The remainder of the reduction is the result of net amortization and pay-offs of residential and commercial loans and a $5.9 million decrease in loans held for sale.
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2.
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A $32.9 million, or 71.4%, reduction in short-term borrowed funds;
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3.
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A $17.2 million, or 4.5%, net increase in deposits, of which $21.0 million occurred in the current quarter;
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4.
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A $52.4 million, or 28.4%, increase in cash and securities, the net result of changes in loans and funding sources, and the infusion of new capital in conjunction with the merger.
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As a result of the merger with FHB, coupled with the reduction in balance sheet size, the Company’s capital ratios have increased: the tier 1 leverage ratio increased to 10.15% compared to 8.4% at June 30, 2010 and the total risk-based capital ratio increased to 18.5% from 14.1% at June 30, 2010.
Earnings for the quarter ended March 31, 2011 included the effect of a number of non-recurring items, as follows:
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1.
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A $296,000 positive adjustment to the bargain purchase gain recorded in connection with the accounting for the merger, resulting from final valuations for the Company’s identifiable intangible assets for its insurance division, its fixed assets and its Series A preferred stock and related warrants;
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2.
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In accordance with the merger agreement, $450,000 of compensation expense, representing retention payments owed to certain Community Bank division employees;
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3.
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A net loss on the sale of loans (principally indirect consumer loans) of $179,000; and
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4.
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Merger-related expenses of $132,000.
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Non-performing loans (exclusive of the fair value adjustment associated with acquisition accounting) declined 6.1% over the fiscal year to $9.3 million at March 31, 2011 from $9.8 million at March 31, 2010. The quarterly provision for loan losses declined to $49,000 in the current quarter from $628,000 for the quarter ended March 31, 2010, reflecting both the reduction in loan balances outstanding and the fair value adjustments recorded in conjunction with the merger transaction.
About Northeast Bancorp
Northeast Bancorp (NASDAQ: NBN) is the holding company for Northeast Bank, a full service community bank headquartered in Lewiston, Maine. Northeast Bank, together with its wholly owned subsidiary Northeast Bank Insurance Group, Inc., derives its income from a combination of traditional banking services and non-traditional financial products and services, including insurance and investments. Northeast Bank operates ten traditional bank branches, ten insurance offices, three investment centers and a loan production office that serve seven counties in Maine and two in New Hampshire. Information regarding Northeast Bank can be found on its website at www.northeastbank.com or by contacting 1-800-284-5989.
---------------------------------------------------------------------------------------------------------------------
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; competitive pressures from other financial institutions; the effects of a continuing deterioration 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; increasing government regulation, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the risk that goodwill and 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 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.
IMPORTANT NOTE: Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA, SIPC, and a Registered Investment Advisor. Securities are not FDIC insured, not bank obligations or otherwise bank guaranteed and may lose value. Northeast Financial is located at 202 Rte. 1, Suite 206, Falmouth, ME 04105
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CONSOLIDATED BALANCE SHEETS
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||||||||
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(Dollars in thousands)
|
||||||||
|
Successor
|
Predecessor
|
|||||||
|
Company (1)
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Company (2)
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|||||||
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March 31,
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June 30,
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|||||||
|
2011
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2010
|
|||||||
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(Unaudited)
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(Audited)
|
|||||||
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Assets
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||||||||
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Cash and due from banks
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$ | 3,283 | $ | 7,019 | ||||
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Interest-bearing deposits
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106,472 | 13,416 | ||||||
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Total cash and cash equivalents
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109,755 | 20,435 | ||||||
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Available-for-sale securities, at fair value
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127,227 | 164,188 | ||||||
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Loans held-for-sale
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8,378 | 14,254 | ||||||
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Loans receivable
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||||||||
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Residential real estate
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143,172 | 155,613 | ||||||
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Commercial real estate
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117,562 | 121,175 | ||||||
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Construction
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2,941 | 5,525 | ||||||
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Commercial business
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25,490 | 30,214 | ||||||
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Consumer
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23,891 | 69,782 | ||||||
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Total loans, gross
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313,056 | 382,309 | ||||||
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Less allowance for loan losses
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14 | 5,806 | ||||||
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Loans, net
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313,042 | 376,503 | ||||||
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Premises and equipment, net
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8,079 | 7,997 | ||||||
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Acquired assets, net
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753 | 1,292 | ||||||
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Accrued interest receivable
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1,375 | 2,081 | ||||||
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Federal Home Loan Bank stock, at cost
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4,889 | 4,889 | ||||||
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Federal Reserve Bank stock, at cost
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597 | 597 | ||||||
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Intangible assets
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13,344 | 11,371 | ||||||
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Bank owned life insurance
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13,667 | 13,286 | ||||||
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Other assets
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6,268 | 5,714 | ||||||
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Total assets
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$ | 607,374 | $ | 622,607 | ||||
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Liabilities and Stockholders' Equity
|
||||||||
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Liabilities:
|
||||||||
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Deposits
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||||||||
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Demand
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$ | 45,254 | $ | 35,266 | ||||
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Savings and interest checking
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90,379 | 89,024 | ||||||
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Money market
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52,226 | 55,556 | ||||||
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Brokered time deposits
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4,934 | 4,883 | ||||||
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Certificates of deposit
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208,571 | 199,468 | ||||||
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Total deposits
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401,364 | 384,197 | ||||||
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Federal Home Loan Bank advances
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43,974 | 50,500 | ||||||
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Structured repurchase agreements
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68,434 | 65,000 | ||||||
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Short-term borrowings
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13,226 | 46,168 | ||||||
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Junior subordinated debentures issued to affiliated trusts
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7,922 | 16,496 | ||||||
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Capital lease obligation
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2,114 | 2,231 | ||||||
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Other borrowings
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2,134 | 2,630 | ||||||
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Other liabilities
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3,317 | 4,479 | ||||||
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Total liabilities
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542,485 | 571,701 | ||||||
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Commitments and contingent liabilities
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||||||||
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Stockholders' equity
|
||||||||
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Preferred stock, $1.00 par value, 1,000,000 shares authorized; 4,227 shares issued and outstanding
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||||||||
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at March 31, 2011 and June 30, 2010 liquidation preference of $1,000 per share
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4 | 4 | ||||||
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Voting common stock, at stated value, 13,500,000 shares authorized; 3,310,173 and 2,332,832 shares
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||||||||
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issued and outstanding at March 31, 2011 and June 30, 2010, respectively
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3,310 | 2,324 | ||||||
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Non-voting common stock, at stated value, 1,500,000 shares authorized; 195,351 and 0 shares
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||||||||
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issued and outstanding at March 31, 2011 and June 30, 2010, respectively
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195 | - | ||||||
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Warrants
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406 | 133 | ||||||
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Additional paid-in capital
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49,535 | 6,761 | ||||||
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Unearned restricted stock award
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(172 | ) | - | |||||
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Retained earnings
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11,579 | 37,338 | ||||||
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Accumulated other comprehensive income
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32 | 4,346 | ||||||
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Total stockholders' equity
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64,889 | 50,906 | ||||||
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Total liabilities and stockholders' equity
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$ | 607,374 | $ | 622,607 | ||||
| (1) |
"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
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||||||
| (2) |
"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
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||||||
|
NORTHEAST BANCORP AND SUBSIDIARY
|
||||||||||||||||||||
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CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
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(Dollars in thousands, except share and per share data)
|
||||||||||||||||||||
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Successor
|
Predecessor
|
|||||||||||||||||||
|
Company (1)
|
Company (2)
|
|||||||||||||||||||
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Three Months
|
93 Days
|
181 Days
|
Three Months
|
Nine Months
|
||||||||||||||||
|
Ended
|
Ended
|
Ended
|
Ended
|
Ended
|
||||||||||||||||
|
March 31,
|
March 31,
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December 28,
|
March 31,
|
March 31,
|
||||||||||||||||
|
2011
|
2011
|
2010
|
2010
|
2010
|
||||||||||||||||
|
Interest and dividend income:
|
||||||||||||||||||||
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Interest on loans
|
$ | 5,649 | $ | 5,845 | $ | 11,210 | $ | 5,960 | $ | 18,034 | ||||||||||
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Taxable interest on available-for-sale securities
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832 | 872 | 2,854 | 1,733 | 5,171 | |||||||||||||||
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Tax-exempt interest on available-for-sale securities
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71 | 75 | 231 | 121 | 356 | |||||||||||||||
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Dividends on available-for-sale securities
|
7 | 7 | 26 | 19 | 46 | |||||||||||||||
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Dividends on Federal Home Loan Bank and Federal Reserve Bank stock
|
12 | 13 | 18 | 9 | 27 | |||||||||||||||
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Other interest and dividend income
|
33 | 34 | 39 | 2 | 10 | |||||||||||||||
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Total interest and dividend income
|
6,604 | 6,846 | 14,378 | 7,844 | 23,644 | |||||||||||||||
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Interest expense:
|
||||||||||||||||||||
|
Deposits
|
774 | 816 | 2,796 | 1,682 | 5,507 | |||||||||||||||
|
Federal Home Loan Bank advances
|
284 | 299 | 918 | 457 | 1,336 | |||||||||||||||
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Structured repurchase agreements
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249 | 272 | 1,392 | 692 | 2,172 | |||||||||||||||
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Short-term borrowings
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60 | 67 | 376 | 165 | 486 | |||||||||||||||
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Junior subordinated debentures issued to affiliated trusts
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174 | 180 | 340 | 182 | 587 | |||||||||||||||
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Obligation under capital lease agreements
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26 | 28 | 55 | 28 | 88 | |||||||||||||||
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Other borrowings
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35 | 35 | 75 | 43 | 156 | |||||||||||||||
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Total interest expense
|
1,602 | 1,697 | 5,952 | 3,249 | 10,332 | |||||||||||||||
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Net interest and dividend income before provision for loan losses
|
5,002 | 5,149 | 8,426 | 4,595 | 13,312 | |||||||||||||||
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Provision for loan losses
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49 | 49 | 912 | 628 | 1,504 | |||||||||||||||
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Net interest and dividend income after provision for loan losses
|
4,953 | 5,100 | 7,514 | 3,967 | 11,808 | |||||||||||||||
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Noninterest income:
|
||||||||||||||||||||
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Fees for other services to customers
|
310 | 323 | 698 | 350 | 1,116 | |||||||||||||||
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Net securities gains
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47 | 47 | 17 | (63 | ) | (20 | ) | |||||||||||||
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Gain on sales of loans
|
295 | 344 | 1,867 | 141 | 708 | |||||||||||||||
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Investment commissions
|
709 | 734 | 1,174 | 467 | 1,455 | |||||||||||||||
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Insurance commissions
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1,458 | 1,495 | 2,661 | 1,741 | 4,705 | |||||||||||||||
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BOLI income
|
126 | 131 | 250 | 125 | 376 | |||||||||||||||
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Bargain purchase gain
|
296 | 15,216 | - | - | - | |||||||||||||||
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Other income
|
148 | 156 | 330 | 292 | 510 | |||||||||||||||
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Total noninterest income
|
3,389 | 18,446 | 6,997 | 3,053 | 8,850 | |||||||||||||||
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Noninterest expense:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
4,824 | 4,991 | 6,670 | 3,469 | 10,392 | |||||||||||||||
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Occupancy and equipment expense
|
903 | 930 | 1,556 | 907 | 2,566 | |||||||||||||||
|
Professional fees
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378 | 387 | 527 | 211 | 797 | |||||||||||||||
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Data processing fees
|
326 | 337 | 618 | 300 | 927 | |||||||||||||||
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Intangible assets amortization
|
439 | 444 | 344 | 177 | 549 | |||||||||||||||
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Merger expense
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132 | 3,182 | 94 | 157 | 157 | |||||||||||||||
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Other
|
1,337 | 1,455 | 2,138 | 1,051 | 3,052 | |||||||||||||||
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Total noninterest expense
|
8,339 | 11,726 | 11,947 | 6,272 | 18,440 | |||||||||||||||
|
Income before income tax expense
|
3 | 11,820 | 2,564 | 748 | 2,218 | |||||||||||||||
|
Income tax (benefit) expense
|
(153 | ) | (171 | ) | 768 | 217 | 542 | |||||||||||||
|
Net income
|
$ | 156 | $ | 11,991 | $ | 1,796 | $ | 531 | $ | 1,676 | ||||||||||
|
|
||||||||||||||||||||
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Net income available to common stockholders
|
$ | 58 | $ | 11,891 | $ | 1,677 | $ | 470 | $ | 1,493 | ||||||||||
|
Weighted-average shares outstanding
|
||||||||||||||||||||
|
Basic
|
3,492,498 | 3,492,498 | 2,330,197 | 2,322,332 | 2,321,726 | |||||||||||||||
|
Diluted
|
3,559,873 | 3,560,278 | 2,354,385 | 2,342,153 | 2,331,227 | |||||||||||||||
|
Earnings per common share:
|
||||||||||||||||||||
|
Basic
|
$ | 0.02 | $ | 3.39 | $ | 0.72 | $ | 0.20 | $ | 0.64 | ||||||||||
|
Diluted
|
$ | 0.02 | $ | 3.33 | $ | 0.71 | $ | 0.20 | $ | 0.64 | ||||||||||
| (1) |
"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
|
||||||
| (2) |
"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
|
||||||
|
NORTHEAST BANCORP AND SUBSIDIARY
|
||||||||||||||||||||
|
SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS AND OTHER DATA
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Dollars in thousands, except share and per share data)
|
||||||||||||||||||||
|
Successor
|
Predecessor
|
|||||||||||||||||||
|
Company (1)
|
Company (2)
|
|||||||||||||||||||
|
Three Months
|
93 Days
|
181 Days
|
Three Months
|
Nine Months
|
||||||||||||||||
|
Ended
|
Ended
|
Ended
|
Ended
|
Ended
|
||||||||||||||||
|
March 31,
|
March 31,
|
December 28,
|
March 31,
|
March 31,
|
||||||||||||||||
|
2011
|
2011
|
2010
|
2010
|
2010
|
||||||||||||||||
|
Financial Highlights:
|
||||||||||||||||||||
|
Net interest income
|
$ | 5,002 | $ | 5,149 | $ | 8,426 | $ | 4,595 | $ | 13,312 | ||||||||||
|
Net income
|
$ | 156 | $ | 11,991 | $ | 1,796 | $ | 531 | $ | 1,676 | ||||||||||
|
Weighted average shares outstanding:
|
||||||||||||||||||||
|
Basic
|
3,492,498 | 3,492,498 | 2,330,197 | 2,322,332 | 2,321,726 | |||||||||||||||
|
Diluted
|
3,559,873 | 3,560,278 | 2,354,385 | 2,342,153 | 2,331,227 | |||||||||||||||
|
Earnings per share:
|
||||||||||||||||||||
|
Basic
|
$ | 0.02 | $ | 3.39 | $ | 0.72 | $ | 0.20 | $ | 0.64 | ||||||||||
|
Diluted
|
$ | 0.02 | $ | 3.33 | $ | 0.71 | $ | 0.20 | $ | 0.64 | ||||||||||
|
Stockholders' equity - end of period
|
$ | 64,889 | $ | 50,096 | ||||||||||||||||
|
Book value per share - end of period
|
$ | 17.33 | $ | 19.74 | ||||||||||||||||
|
Tangible book value per share - end of period
|
$ | 13.52 | $ | 14.60 | ||||||||||||||||
|
Ratios and Other Information:
|
||||||||||||||||||||
|
Return on average assets
|
0.10 | % | 7.67 | % | 0.57 | % | 0.35 | % | 0.37 | % | ||||||||||
|
Return on average equity
|
0.98 | % | 72.56 | % | 6.94 | % | 4.32 | % | 4.54 | % | ||||||||||
|
Net interest rate spread (3)
|
3.48 | % | 3.46 | % | 2.69 | % | 3.11 | % | 2.94 | % | ||||||||||
|
Net interest margin (4)
|
3.61 | % | 3.60 | % | 2.91 | % | 3.30 | % | 3.15 | % | ||||||||||
|
Efficiency ratio (5)
|
99.38 | % | 50 | % | 77 | % | 82 | % | 83 | % | ||||||||||
|
Non-interest expense to average total assets
|
5.52 | % | 7.50 | % | 3.83 | % | 4.15 | % | 4.03 | % | ||||||||||
|
Average interest-earning assets to average interest-bearing liabilities
|
111.70 | % | 111.65 | % | 110.66 | % | 108.54 | % | 108.82 | % | ||||||||||
|
At period end:
|
||||||||||||||||||||
|
Non-performing assets to total assets
|
1.17 | % | 1.92 | % | ||||||||||||||||
|
Non-performing loans to total loans
|
2.03 | % | 2.55 | % | ||||||||||||||||
|
Allowance for loan losses to total loans
|
0.00 | % | 1.52 | % | ||||||||||||||||
|
Equity to total assets
|
10.68 | % | 8.19 | % | ||||||||||||||||
|
Tier 1 leverage capital ratio
|
10.15 | % | 8.39 | % | ||||||||||||||||
|
Total risk-based capital ratio
|
18.51 | % | 13.90 | % | ||||||||||||||||
|
Number of full service branches
|
10 | 11 | ||||||||||||||||||
|
Number of insurance agency offices
|
10 | 11 | ||||||||||||||||||
|
Number of investment and mortgage loan origination offices
|
6 | 5 | ||||||||||||||||||
| 1) |
"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
|
||||||
| (2) |
"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
|
||||||
|
NORTHEAST BANCORP AND SUBSIDIARY
|
||||||||||||||||||||||||
|
CONSOLIDATED AVERAGE BALANCES AND ANNUALIZED YIELDS
|
||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||
|
Three months ended March 31,
|
||||||||||||||||||||||||
|
2011
|
2010
|
|||||||||||||||||||||||
|
Average
|
Average
|
|||||||||||||||||||||||
|
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
|
Balance
|
Q-T-D Inc.
|
Rate (1)
|
Balance
|
Q-T-D Inc.
|
Rate
|
|||||||||||||||||||
|
Assets:
|
||||||||||||||||||||||||
|
Interest earning-assets:
|
||||||||||||||||||||||||
|
Securities
|
$ | 143,482 | $ | 910 | 2.67 | % | $ | 166,707 | $ | 1,873 | 4.70 | % | ||||||||||||
|
Loans (2)(3)
|
357,376 | 5,649 | 6.41 | % | 390,503 | 5,960 | 6.19 | % | ||||||||||||||||
|
Bank Regulatory Stock
|
5,486 | 12 | 0.89 | % | 5,486 | 9 | 0.67 | % | ||||||||||||||||
|
Short-term investments (4)
|
58,683 | 33 | 0.23 | % | 8,760 | 2 | 0.09 | % | ||||||||||||||||
|
Total interest-earning assets
|
565,027 | 6,604 | 4.76 | % | 571,456 | 7,844 | 5.61 | % | ||||||||||||||||
|
Total non-interest earning assets
|
47,471 | 41,737 | ||||||||||||||||||||||
|
Total assets
|
$ | 612,498 | $ | 613,193 | ||||||||||||||||||||
|
Liabilities & Net Worth:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Now
|
$ | 55,994 | $ | 79 | 0.57 | % | $ | 48,185 | $ | 95 | 0.80 | % | ||||||||||||
|
Money Market
|
54,041 | 70 | 0.53 | % | 43,930 | 133 | 1.23 | % | ||||||||||||||||
|
Savings
|
35,638 | 34 | 0.39 | % | 31,204 | 53 | 0.69 | % | ||||||||||||||||
|
Time
|
198,172 | 591 | 1.21 | % | 222,694 | 1,401 | 2.55 | % | ||||||||||||||||
|
Total interest-bearing deposits
|
343,845 | 774 | 0.91 | % | 346,013 | 1,682 | 1.97 | % | ||||||||||||||||
|
Short-term borrowings (5)
|
34,822 | 60 | 0.70 | % | 43,530 | 165 | 1.54 | % | ||||||||||||||||
|
Borrowed funds
|
119,286 | 594 | 2.02 | % | 120,451 | 1,220 | 4.11 | % | ||||||||||||||||
|
Junior Subordinated Debentures
|
7,902 | 174 | 8.93 | % | 16,496 | 182 | 4.47 | % | ||||||||||||||||
|
Total interest-earning liabilities
|
505,855 | 1,602 | 1.28 | % | 526,490 | 3,249 | 2.50 | % | ||||||||||||||||
|
Total non-interest bearing liabilities:
|
||||||||||||||||||||||||
|
Demand deposits and escrow accounts
|
37,379 | 33,529 | ||||||||||||||||||||||
|
Other liabilities
|
4,447 | 3,406 | ||||||||||||||||||||||
|
Total liabilities
|
547,681 | 563,425 | ||||||||||||||||||||||
|
Stockholders' equity
|
64,817 | 49,768 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 612,498 | $ | 613,193 | ||||||||||||||||||||
|
Net interest income
|
$ | 5,002 | $ | 4,595 | ||||||||||||||||||||
|
Interest rate spread
|
3.48 | % | 3.11 | % | ||||||||||||||||||||
|
Net yield on interest earning assets (6)
|
3.61 | % | 3.30 | % | ||||||||||||||||||||
|
(1)
|
Yields are stated on a fully tax-equivalent basis using a 30.84% tax rate.
|
|
(2)
|
Non-accruing loans are included in the computation of average balances, but unpaid interest on nonperforming loans has not been included for purposes of determining interest income.
|
|
(3)
|
Includes Loans Held-for-Sale.
|
|
(4)
|
Short term investments include FHLB overnight deposits and other interest-bearing deposits.
|
|
(5)
|
Short-term borrowings include securities sold under repurchase agreements and sweep accounts.
|
|
(6)
|
The net yield on interest-earning assets is net interest income divided by total interest-earning assets.
|
|
NORTHEAST BANCORP AND SUBSIDIARY
|
||||||||||||||||||||||||
|
CONSOLIDATED AVERAGE BALANCES AND ANNUALIZED YIELDS
|
||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||
|
Nine months ended March 31,
|
||||||||||||||||||||||||
|
2011
|
2010
|
|||||||||||||||||||||||
|
Average
|
Average
|
|||||||||||||||||||||||
|
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
|
Balance
|
Y-T-D Inc.
|
Rate (1)
|
Balance
|
Y-T-D Inc.
|
Rate
|
|||||||||||||||||||
|
Assets:
|
||||||||||||||||||||||||
|
Interest earning-assets:
|
||||||||||||||||||||||||
|
Securities
|
$ | 155,761 | $ | 4,065 | 3.59 | % | $ | 162,345 | $ | 5,573 | 4.70 | % | ||||||||||||
|
Loans (2)(3)
|
375,951 | 17,055 | 6.04 | % | 393,138 | 18,034 | 6.11 | % | ||||||||||||||||
|
Bank Regulatory Stock
|
5,486 | 31 | 0.75 | % | 5,486 | 27 | 0.66 | % | ||||||||||||||||
|
Short-term investments (4)
|
45,930 | 73 | 0.21 | % | 8,312 | 10 | 0.16 | % | ||||||||||||||||
|
Total interest-earning assets
|
583,128 | 21,224 | 4.88 | % | 569,281 | 23,644 | 5.57 | % | ||||||||||||||||
|
Total non-interest earning assets
|
41,166 | 40,795 | ||||||||||||||||||||||
|
Total assets
|
$ | 624,294 | $ | 610,076 | ||||||||||||||||||||
|
Liabilities & Net Worth:
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
Now
|
$ | 54,549 | $ | 265 | 0.65 | % | $ | 47,491 | $ | 276 | 0.77 | % | ||||||||||||
|
Money Market
|
55,331 | 285 | 0.69 | % | 42,099 | 391 | 1.24 | % | ||||||||||||||||
|
Savings
|
37,413 | 135 | 0.48 | % | 26,886 | 115 | 0.57 | % | ||||||||||||||||
|
Time
|
196,867 | 2,927 | 1.98 | % | 229,401 | 4,725 | 2.74 | % | ||||||||||||||||
|
Total interest-bearing deposits
|
344,160 | 3,612 | 1.40 | % | 345,877 | 5,507 | 2.12 | % | ||||||||||||||||
|
Short-term borrowings (5)
|
47,711 | 443 | 1.24 | % | 42,232 | 486 | 1.53 | % | ||||||||||||||||
|
Borrowed funds
|
119,924 | 3,074 | 3.41 | % | 118,529 | 3,752 | 4.22 | % | ||||||||||||||||
|
Junior Subordinated Debentures
|
13,579 | 520 | 5.10 | % | 16,496 | 587 | 4.74 | % | ||||||||||||||||
|
Total interest-earning liabilities
|
525,374 | 7,649 | 1.94 | % | 523,134 | 10,332 | 2.63 | % | ||||||||||||||||
|
(1)
|
Yields are stated on a fully tax-equivalent basis using a 30.84% tax rate.
|
|
(2)
|
Non-accruing loans are included in the computation of average balances, but unpaid interest on nonperforming loans has not been included for purposes of determining interest income.
|
|
(3)
|
Includes Loans Held-for-Sale.
|
|
(4)
|
Short term investments include FHLB overnight deposits and other interest-bearing deposits.
|
|
(5)
|
Short-term borrowings include securities sold under repurchase agreements and sweep accounts.
|
|
(6)
|
The net yield on interest-earning assets is net interest income divided by total interest-earning assets.
|