For the quarterly period ended
|
March 31, 2010
|
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
|
|
March 31, 2010 (Unaudited) and June 30, 2009
|
||
Three Months Ended March 31, 2010 and 2009
|
||
Nine Months Ended March 31, 2010 and 2009
|
||
Nine Months Ended March 31, 2010 and 2009
|
||
Nine Months Ended March 31, 2010 and 2009
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Part II.
|
||
Item 1.
|
||
Item 1.a.
|
||
Item 2.c.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
NORTHEAST BANCORP AND SUBSIDIARY
|
||||||||
March 31,
|
June 30,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 4,967,724 | $ | 9,356,233 | ||||
Interest-bearing deposits
|
4,085,487 | 3,666,409 | ||||||
Total cash and cash equivalents
|
9,053,211 | 13,022,642 | ||||||
Available-for-sale securities, at fair value
|
170,762,997 | 148,410,140 | ||||||
Loans held-for-sale
|
2,574,275 | 2,436,595 | ||||||
Loans receivable
|
386,540,978 | 393,650,762 | ||||||
Less allowance for loan losses
|
5,923,000 | 5,764,000 | ||||||
Net loans
|
380,617,978 | 387,886,762 | ||||||
Premises and equipment, net
|
8,415,622 | 8,744,170 | ||||||
Acquired assets, net
|
1,920,172 | 672,669 | ||||||
Accrued interest receivable
|
2,147,677 | 2,200,142 | ||||||
Federal Home Loan Bank stock, at cost
|
4,889,400 | 4,889,400 | ||||||
Federal Reserve Bank stock, at cost
|
596,750 | 596,750 | ||||||
Goodwill
|
4,490,500 | 4,490,500 | ||||||
Intangible assets, net of accumulated amortization of $3,092,905 at 03/31/10 and $2,390,087 at 6/30/09
|
7,463,003 | 8,311,477 | ||||||
Bank owned life insurance
|
13,159,518 | 12,783,525 | ||||||
Other assets
|
5,879,193 | 3,703,358 | ||||||
Total assets
|
$ | 611,970,296 | $ | 598,148,130 | ||||
Liabilities and Stockholders' Equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
||||||||
Demand
|
$ | 31,959,015 | $ | 32,228,276 | ||||
NOW
|
48,901,534 | 44,465,265 | ||||||
Money market
|
45,692,488 | 39,049,403 | ||||||
Regular savings
|
32,554,738 | 19,079,009 | ||||||
Brokered time deposits
|
4,880,125 | 10,906,378 | ||||||
Certificates of deposit
|
216,376,518 | 239,657,655 | ||||||
Total deposits
|
380,364,418 | 385,385,986 | ||||||
Federal Home Loan Bank advances
|
50,500,000 | 40,815,000 | ||||||
Structured repurchase agreements
|
65,000,000 | 65,000,000 | ||||||
Short-term borrowings
|
41,456,124 | 34,435,309 | ||||||
Junior subordinated debentures issued to affiliated trusts
|
16,496,000 | 16,496,000 | ||||||
Capital lease obligation
|
2,268,461 | 2,378,827 | ||||||
Other borrowings
|
2,629,660 | 3,263,817 | ||||||
Other liabilities
|
3,159,576 | 3,056,311 | ||||||
Total liabilities
|
561,874,239 | 550,831,250 | ||||||
Commitments and contingent liabilities
|
||||||||
Stockholders' equity
|
||||||||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; 4,227 shares issued and outstanding
|
||||||||
at March 31, 2010 and June 30, 2009; liquidation preference of $1,000 per share
|
4,227 | 4,227 | ||||||
Common stock, at stated value, 15,000,000 shares authorized; 2,322,332 and 2,321,332 shares
|
||||||||
issued and outstanding at March 31, 2010 and June 30, 2009, respectively
|
2,322,332 | 2,321,332 | ||||||
Warrants
|
133,468 | 133,468 | ||||||
Additional paid-in capital
|
6,739,723 | 6,708,997 | ||||||
Retained earnings
|
37,564,238 | 36,697,712 | ||||||
Accumulated other comprehensive income
|
3,332,069 | 1,451,144 | ||||||
Total stockholders' equity
|
50,096,057 | 47,316,880 | ||||||
Total liabilities and stockholders' equity
|
$ | 611,970,296 | $ | 598,148,130 |
NORTHEAST BANCORP AND SUBSIDIARY
|
||||||||
(Unaudited)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2010
|
2009
|
|||||||
Interest and dividend income:
|
||||||||
Interest on loans
|
$ | 5,959,893 | $ | 6,292,794 | ||||
Taxable interest on available-for-sale securities
|
1,733,568 | 1,882,848 | ||||||
Tax-exempt interest on available-for-sale securities
|
121,445 | 112,601 | ||||||
Dividends on available-for-sale securities
|
18,970 | 25,233 | ||||||
Dividends on Federal Home Loan Bank and Federal Reserve Bank stock
|
8,700 | 5,186 | ||||||
Other interest and dividend income
|
1,714 | 17,277 | ||||||
Total interest and dividend income
|
7,844,290 | 8,335,939 | ||||||
Interest expense:
|
||||||||
Deposits
|
1,682,217 | 2,238,626 | ||||||
Federal Home Loan Bank advances
|
456,420 | 615,028 | ||||||
Structured repurchase agreements
|
692,250 | 758,378 | ||||||
Short-term borrowings
|
165,318 | 146,054 | ||||||
Junior subordinated debentures issued to affiliated trusts
|
181,755 | 234,817 | ||||||
FRB Borrower-in-Custody
|
- | 18,493 | ||||||
Obligation under capital lease agreements
|
28,390 | 37,835 | ||||||
Other borrowings
|
42,732 | 55,761 | ||||||
Total interest expense
|
3,249,082 | 4,104,992 | ||||||
Net interest and dividend income before provision for loan losses
|
4,595,208 | 4,230,947 | ||||||
Provision for loan losses
|
640,598 | 618,536 | ||||||
Net interest and dividend income after provision for loan losses
|
3,954,610 | 3,612,411 | ||||||
Noninterest income:
|
||||||||
Fees for other services to customers
|
350,378 | 236,970 | ||||||
Net securities losses
|
(63,141 | ) | - | |||||
Gain on sales of loans
|
140,409 | 314,466 | ||||||
Investment commissions
|
467,021 | 246,835 | ||||||
Insurance commissions
|
1,741,269 | 1,524,130 | ||||||
BOLI income
|
124,982 | 122,277 | ||||||
Other income
|
304,196 | 260,185 | ||||||
Total noninterest income
|
3,065,114 | 2,704,863 | ||||||
Noninterest expense:
|
||||||||
Salaries and employee benefits
|
3,468,652 | 3,256,094 | ||||||
Occupancy expense
|
556,738 | 511,048 | ||||||
Equipment expense
|
350,135 | 385,916 | ||||||
Intangible assets amortization
|
176,780 | 181,351 | ||||||
Other
|
1,719,444 | 1,508,697 | ||||||
Total noninterest expense
|
6,271,749 | 5,843,106 | ||||||
Income before income tax expense
|
747,975 | 474,168 | ||||||
Income tax expense
|
217,343 | 86,798 | ||||||
Net income
|
$ | 530,632 | $ | 387,370 | ||||
|
||||||||
Net income available to common stockholders
|
$ | 469,972 | $ | 326,751 | ||||
Earnings per common share:
|
||||||||
Basic
|
$ | 0.20 | $ | 0.14 | ||||
Diluted
|
$ | 0.20 | $ | 0.14 | ||||
Net interest margin (tax equivalent basis)
|
3.30 | % | 3.02 | % | ||||
Net interest spread (tax equivalent basis)
|
3.03 | % | 2.70 | % | ||||
Return on average assets (annualized)
|
0.35 | % | 0.26 | % | ||||
Return on average equity (annualized)
|
4.32 | % | 3.27 | % | ||||
Efficiency ratio
|
82 | % | 85 | % |
NORTHEAST BANCORP AND SUBSIDIARY
|
||||||||
(Unaudited)
|
||||||||
Nine Months Ended
|
||||||||
March 31,
|
||||||||
2010
|
2009
|
|||||||
Interest and dividend income:
|
||||||||
Interest on loans
|
$ | 18,029,292 | $ | 19,709,828 | ||||
Interest on Federal Home Loan Bank overnight deposits
|
- | 244 | ||||||
Taxable interest on available-for-sale securities
|
5,171,133 | 5,336,306 | ||||||
Tax-exempt interest on available-for-sale securities
|
356,340 | 339,727 | ||||||
Dividends on available-for-sale securities
|
46,157 | 60,481 | ||||||
Dividends on Federal Home Loan Bank and Federal Reserve Bank stock
|
26,602 | 87,135 | ||||||
Other interest and dividend income
|
9,697 | 49,881 | ||||||
Total interest and dividend income
|
23,639,221 | 25,583,602 | ||||||
Interest expense:
|
||||||||
Deposits
|
5,507,301 | 7,152,320 | ||||||
Federal Home Loan Bank advances
|
1,336,161 | 2,043,974 | ||||||
Structured repurchase agreements
|
2,171,638 | 2,180,149 | ||||||
Short-term borrowings
|
485,923 | 587,485 | ||||||
Junior subordinated debentures issued to affiliated trusts
|
587,146 | 745,732 | ||||||
FRB Borrower-in-Custody
|
- | 80,485 | ||||||
Obligation under capital lease agreements
|
87,830 | 117,295 | ||||||
Other borrowings
|
156,096 | 177,364 | ||||||
Total interest expense
|
10,332,095 | 13,084,804 | ||||||
Net interest and dividend income before provision for loan losses
|
13,307,126 | 12,498,798 | ||||||
Provision for loan losses
|
1,723,142 | 1,642,821 | ||||||
Net interest and dividend income after provision for loan losses
|
11,583,984 | 10,855,977 | ||||||
Noninterest income:
|
||||||||
Fees for other services to customers
|
1,116,441 | 826,283 | ||||||
Net securities losses
|
(20,462 | ) | (82,067 | ) | ||||
Gain on sales of loans
|
707,943 | 428,580 | ||||||
Investment commissions
|
1,454,793 | 1,275,165 | ||||||
Insurance commissions
|
4,705,042 | 4,472,344 | ||||||
BOLI income
|
375,993 | 367,934 | ||||||
Other income
|
734,099 | 619,777 | ||||||
Total noninterest income
|
9,073,849 | 7,908,016 | ||||||
Noninterest expense:
|
||||||||
Salaries and employee benefits
|
10,392,407 | 10,190,848 | ||||||
Occupancy expense
|
1,449,503 | 1,402,885 | ||||||
Equipment expense
|
1,116,165 | 1,218,827 | ||||||
Intangible assets amortization
|
549,015 | 564,621 | ||||||
Other
|
4,932,693 | 4,587,666 | ||||||
Total noninterest expense
|
18,439,783 | 17,964,847 | ||||||
Income before income tax expense
|
2,218,050 | 799,146 | ||||||
Income tax expense
|
542,436 | 49,086 | ||||||
Net income
|
$ | 1,675,614 | $ | 750,060 | ||||
|
||||||||
Net income available to common stockholders
|
$ | 1,493,376 | $ | 676,374 | ||||
Earnings per common share:
|
||||||||
Basic
|
$ | 0.64 | $ | 0.29 | ||||
Diluted
|
$ | 0.64 | $ | 0.29 | ||||
Net interest margin (tax equivalent basis)
|
3.15 | % | 2.97 | % | ||||
Net interest spread (tax equivalent basis)
|
2.94 | % | 2.74 | % | ||||
Return on average assets (annualized)
|
0.37 | % | 0.16 | % | ||||
Return on average equity (annualized)
|
4.54 | % | 2.30 | % | ||||
Efficiency ratio
|
82 | % | 88 | % |
NORTHEAST BANCORP AND SUBSIDIARY
|
|||||||||||||||||||||||||||
Nine Months Ended March 31, 2010 and 2009
|
|||||||||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||||||||
Accumulated
|
|||||||||||||||||||||||||||
Additional |
Other
|
||||||||||||||||||||||||||
Preferred | Common | Paid-in | Retained | Comprehensive | |||||||||||||||||||||||
Stock
|
Stock
|
Warrants
|
Capital
|
Earnings
|
(Loss) Income
|
Total
|
|||||||||||||||||||||
Balance at June 30, 2008
|
$ | - | $ | 2,315,182 | $ | - | $ | 2,582,270 | $ | 36,679,932 | $ | (1,304,072 | ) | $ | 40,273,312 | ||||||||||||
Net income for nine months ended 03/31/09
|
- | - | - | - | 750,060 | - | 750,060 | ||||||||||||||||||||
Other comprehensive income net of tax:
|
|||||||||||||||||||||||||||
Net unrealized gain on investments available
|
|||||||||||||||||||||||||||
for sale, net of reclassification adjustment
|
- | - | - | - | - | 3,699,642 | 3,699,642 | ||||||||||||||||||||
Total comprehensive income
|
4,449,702 | ||||||||||||||||||||||||||
Dividends on preferred stock
|
- | - | - | - | (36,986 | ) | - | (36,986 | ) | ||||||||||||||||||
Dividends on common stock at $0.27 per share
|
- | - | - | - | (625,252 | ) | - | (625,252 | ) | ||||||||||||||||||
Net proceeds from Capital Purchase Program
|
4,227 | - | 133,468 | 4,063,299 | - | - | 4,200,994 | ||||||||||||||||||||
Stock options exercised
|
- | 6,000 | - | 44,500 | - | - | 50,500 | ||||||||||||||||||||
Stock grant
|
- | 150 | - | 1,578 | - | - | 1,728 | ||||||||||||||||||||
Accretion of preferred stock
|
- | - | - | 7,920 | (7,920 | ) | - | - | |||||||||||||||||||
Amortization of issuance cost of preferred stock
|
- | - | - | 1,566 | (1,566 | ) | - | - | |||||||||||||||||||
Balance at March 31, 2009
|
$ | 4,227 | $ | 2,321,332 | $ | 133,468 | $ | 6,701,133 | $ | 36,758,268 | $ | 2,395,570 | $ | 48,313,998 | |||||||||||||
Balance at June 30, 2009
|
$ | 4,227 | $ | 2,321,332 | $ | 133,468 | $ | 6,708,997 | $ | 36,697,712 | $ | 1,451,144 | $ | 47,316,880 | |||||||||||||
Net income for nine months ended 03/31/10
|
- | - | - | - | 1,675,614 | - | 1,675,614 | ||||||||||||||||||||
Other comprehensive income net of tax:
|
|||||||||||||||||||||||||||
Net unrealized loss on purchased interest rate
|
|||||||||||||||||||||||||||
caps and swap
|
- | - | - | - | - | (125,257 | ) | (125,257 | ) | ||||||||||||||||||
Net unrealized gain on investments available
|
|||||||||||||||||||||||||||
for sale, net of reclassification adjustment
|
- | - | - | - | - | 2,006,182 | 2,006,182 | ||||||||||||||||||||
Total comprehensive income
|
3,556,539 | ||||||||||||||||||||||||||
Dividends on preferred stock
|
- | - | - | - | (158,513 | ) | - | (158,513 | ) | ||||||||||||||||||
Dividends on common stock at $0.27 per share
|
- | - | - | - | (626,849 | ) | - | (626,849 | ) | ||||||||||||||||||
Stock options exercised
|
- | 1,000 | - | 7,000 | - | - | 8,000 | ||||||||||||||||||||
Accretion of preferred stock
|
- | - | - | 19,825 | (19,825 | ) | - | - | |||||||||||||||||||
Amortization of issuance cost of preferred stock
|
- | - | - | 3,901 | (3,901 | ) | - | - | |||||||||||||||||||
Balance at March 31, 2010
|
$ | 4,227 | $ | 2,322,332 | $ | 133,468 | $ | 6,739,723 | $ | 37,564,238 | $ | 3,332,069 | $ | 50,096,057 |
NORTHEAST BANCORP AND SUBSIDIARY
|
||||||||
(Unaudited)
|
||||||||
Nine Months Ended
|
||||||||
March 31,
|
||||||||
2010
|
2009
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 1,675,614 | $ | 750,060 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for loan losses
|
1,723,142 | 1,642,821 | ||||||
Change in net deferred costs | 567,200 | 459,171 | ||||||
Provision made for deferred compensation
|
145,575 | 123,797 | ||||||
Write-down of available-for-sale securities
|
103,203 | 318,244 | ||||||
Write-down of non-marketable securities
|
99,041 | 5,025 | ||||||
BOLI income, net
|
(375,993 | ) | (367,934 | ) | ||||
Depreciation of premises and equipment
|
812,727 | 718,831 | ||||||
Amortization of intangible assets
|
549,015 | 564,621 | ||||||
Net loss on sale of available-for-sale securities
|
20,462 | 82,067 | ||||||
Net loss on disposals, writedowns and sale of fixed assets
|
116,712 | - | ||||||
Net gain on sale of business
|
(234,907 | ) | - | |||||
Net change in loans held-for-sale
|
(137,680 | ) | 151,765 | |||||
Stock grant
|
- | 1,728 | ||||||
Net accreation of securities
|
(22,733 | ) | (111,775 | ) | ||||
Change in other assets and liabilities:
|
||||||||
Interest receivable
|
52,465 | (6,370 | ) | |||||
Prepayment FDIC Assessment
|
(2,340,175 | ) | - | |||||
Other assets and liabilities
|
546,126 | (259,462 | ) | |||||
Net cash provided by operating activities
|
3,299,794 | 4,072,589 | ||||||
Cash flows from investing activities:
|
||||||||
Federal Reserve Bank stock purchased
|
- | (125,250 | ) | |||||
Proceeds from the sales of available-for-sale securities
|
1,312,142 | 2,750,973 | ||||||
Purchases of available-for-sale securities
|
(59,188,505 | ) | (43,548,924 | ) | ||||
Proceeds from maturities and principal payments on available-for-sale securities
|
38,462,243 | 15,744,020 | ||||||
Loan originations and principal collections, net
|
2,988,876 | 7,013,731 | ||||||
Investment in low income tax credit
|
(1,031,555 | ) | - | |||||
Purchases of premises and equipment
|
(644,808 | ) | (1,042,319 | ) | ||||
Proceeds from sales of premises and equipment
|
43,100 | - | ||||||
Proceeds from sales of acquired assets
|
417,554 | 505,613 | ||||||
Proceeds from sale of business
|
534,366 | - | ||||||
Net cash used by investing activities
|
(17,106,587 | ) | (18,702,156 | ) |
Cash flows from financing activities:
|
||||||||
Net (decrease) increase in deposits
|
(5,021,568 | ) | 6,277,016 | |||||
Advances from the Federal Home Loan Bank
|
12,500,000 | 5,000,000 | ||||||
Repayment of advances from the Federal Home Loan Bank
|
(2,000,000 | ) | (25,000,000 | ) | ||||
Net repayments on Federal Home Loan Bank overnight advances
|
(815,000 | ) | (20,250,000 | ) | ||||
Structured Repurchase
|
- | 25,000,000 | ||||||
FRB borrower-in-custody
|
- | 15,000,000 | ||||||
Net increase in short-term borrowings
|
7,020,815 | 445,272 | ||||||
Dividends paid
|
(785,362 | ) | (662,238 | ) | ||||
Net proceeds from Capital Purchase Program
|
- | 4,200,994 | ||||||
Issuance of common stock
|
8,000 | 50,500 | ||||||
Purchase of interest rate caps
|
(325,000 | ) | - | |||||
Repayment on debt from insurance agencies acquisitions
|
(634,157 | ) | (595,453 | ) | ||||
Repayment on capital lease obligation
|
(110,366 | ) | (110,061 | ) | ||||
Net cash provided by financing activities
|
9,837,362 | 9,356,030 | ||||||
Net decrease in cash and cash equivalents
|
(3,969,431 | ) | (5,273,537 | ) | ||||
Cash and cash equivalents, beginning of year
|
13,022,642 | 12,543,981 | ||||||
Cash and cash equivalents, end of year
|
$ | 9,053,211 | $ | 7,270,444 | ||||
- | - | |||||||
Supplemental schedule of cash flow information:
|
||||||||
Interest paid
|
$ | 10,550,347 | $ | 13,194,749 | ||||
Income taxes paid
|
$ | 340,000 | $ | 195,000 | ||||
Supplemental schedule of noncash investing and financing activities: | ||||||||
Transfer from loans to acquired assets | $ | 2,034,136 | $ | 798,446 | ||||
Due to broker | - | 4,934,931 | ||||||
Transfer from acquired assets to loans
|
44,570 | 7,820 | ||||||
Change in valuation allowance for unrealized gains on available-for-sale securities, net of tax
|
1,880,925 | 3,699,642 | ||||||
Net change in deferred taxes for unrealized (gains) on available-for-sale securities
|
(1,033,487 | ) | (1,905,877 | ) |
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
|
3.09
|
%
|
March 30, 2034
|
||||||||
NBN Capital Trust III
|
3,000,000
|
93,000
|
3,093,000
|
3.09
|
%
|
March 30, 2034
|
|||||||||||
NBN Capital Trust IV
|
10,000,000
|
310,000
|
10,310,000
|
4.69
|
%
|
February 23, 2035
|
|||||||||||
Total
|
$
|
16,000,000
|
$
|
496,000
|
$
|
16,496,000
|
4.09
|
%
|
March 31, 2010
|
June 30, 2009
|
||||||
Residential real estate
|
$
|
150,877,079
|
$
|
138,789,985
|
|||
Commercial real estate
|
125,997,365
|
120,889,910
|
|||||
Construction
|
4,737,740
|
6,383,948
|
|||||
Commercial
|
28,719,502
|
29,137,318
|
|||||
Consumer & Other
|
74,791,858
|
96,464,967
|
|||||
Total
|
385,123,544
|
391,666,128
|
|||||
Net Deferred Costs
|
1,417,434
|
1,984,634
|
|||||
Total Loans
|
$
|
386,540,978
|
$
|
393,650,762
|
Nine months Ended
March 31,
|
||||||||
2010
|
2009
|
|||||||
Balance at beginning of period
|
$
|
5,764,000
|
$
|
5,656,000
|
||||
Add provision charged to operations
|
1,723,142
|
1,642,821
|
||||||
Recoveries on loans previously charged off
|
135,396
|
160,644
|
||||||
7,622,538
|
7,459,465
|
|||||||
Less loans charged off
|
1,699,538
|
1,781,465
|
||||||
Balance at end of period
|
$
|
5,923,000
|
$
|
5,678,000
|
March 31, 2010
|
June 30, 2009
|
|||||||||||||||
Amortized
Cost |
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||
Debt securities issued by U. S. Government-sponsored enterprises
|
$
|
6,082,972
|
$
|
6,088,407
|
$
|
8,995,182
|
$
|
9,029,001
|
||||||||
Mortgage-backed securities
|
136,795,309
|
142,230,346
|
121,724,975
|
124,904,616
|
||||||||||||
Municipal bonds
|
12,221,811
|
12,383,313
|
11,762,533
|
11,529,915
|
||||||||||||
Collateralized Mortgage Obligation
|
7,771,507
|
7,672,656
|
-
|
-
|
||||||||||||
Corporate bonds
|
991,704
|
1,042,820
|
1,484,571
|
1,491,918
|
||||||||||||
Trust preferred securities | 584,311 | 470,222 | 677,105 | 411,612 | ||||||||||||
Equity securities
|
1,077,009
|
875,233
|
1,567,069
|
1,043,078
|
||||||||||||
$
|
165,524,623
|
$
|
170,762,997
|
$
|
146,211,435
|
$
|
148,410,140
|
March 31, 2010
|
June 30, 2009
|
|||||||||||||||
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
|||||||||||||
Debt securities issued by U. S. Government-sponsored enterprises
|
$ | 5,435 | - | 78,443 | 44,624 | |||||||||||
Mortgage-backed securities
|
5,494,944 | 59,907 | 3,576,997 | 397,356 | ||||||||||||
Municipal bonds
|
211,363 | 49,861 | 46,083 | 278,701 | ||||||||||||
Corporate bonds
|
51,116 | - | 18,615 | 11,268 | ||||||||||||
Collateralized Mortgage Obligation
|
- | 98,851 | - | - | ||||||||||||
Trust preferred securities
|
393 | 114,482 | - | 265,493 | ||||||||||||
Equity securities
|
17,555 | 219,331 | 26,344 | 550,335 | ||||||||||||
$ | 5,780,806 | 542,432 | 3,746,482 | 1,547,777 |
Less than 12 Months
|
More than 12 Months
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
March 31, 2010:
|
||||||||||||||||||||||||
Mortgage-backed securities
|
$ | 14,324,784 | 59,907 | - | - | 14,324,784 | 59,907 | |||||||||||||||||
Municipal bonds
|
1,656,746 | 16,472 | 570,123 | 33,389 | 2,226,869 | 49,861 | ||||||||||||||||||
Collateralized Mortgage Obligation
|
7,672,656 | 98,851 | - | - | 7,672,656 | 98,851 | ||||||||||||||||||
Equity securities
|
42,157 | 25,419 | 557,867 | 193,912 | 600,024 | 219,331 | ||||||||||||||||||
Trust preferred securities
|
21,623 | 73 | 366,531 | 114,409 | 388,154 | 114,482 | ||||||||||||||||||
$ | 23,717,966 | 200,722 | 1,494,521 | 341,710 | 25,212,487 | 542,432 |
Less than 12 Months
|
More than 12 Months
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||||
June 30, 2009:
|
||||||||||||||||||||||||
U.S. Government-sponsored enterprises
|
$ | 948,022 | 44,624 | - | - | 948,022 | 44,624 | |||||||||||||||||
Mortgage-backed securities
|
19,948,839 | 393,117 | 224,084 | 4,239 | 20,172,923 | 397,356 | ||||||||||||||||||
Municipal bonds
|
6,278,545 | 200,516 | 829,002 | 78,185 | 7,107,547 | 278,701 | ||||||||||||||||||
Corporate bonds
|
- | - | 488,731 | 11,268 | 488,731 | 11,268 | ||||||||||||||||||
Equity securities
|
210,607 | 77,388 | 675,083 | 472,947 | 885,690 | 550,335 | ||||||||||||||||||
Trust preferred securities
|
- | - | 411,612 | 265,493 | 411,612 | 265,493 | ||||||||||||||||||
$ | 27,386,013 | 715,645 | 2,628,512 | 832,132 | 30,014,525 | 1,547,777 |
Equity
Securities
|
Trust Preferred
Securities
|
Total
|
||||||||||
Total other-than-temporary impairment losses
|
$ | 103,203 | - | 103,203 | ||||||||
Less: unrealized other-than-temporary losses recognized in other comprehensive loss (1)
|
- | - | - | |||||||||
Net impairment losses recognized in earnings (2)
|
$ | 103,203 | - | 103,203 |
March 31, 2010
|
June 30, 2009
|
||||||||||||||
Amortized Cost
|
Fair
Value
|
Amortized Cost
|
Fair
Value
|
||||||||||||
Due in one year or less
|
$
|
991,704
|
$
|
1,042,820
|
$
|
500,000
|
$
|
488,731
|
|||||||
Due after one year through five years
|
2,500,000
|
2,500,000
|
8,987,106
|
9,084,165
|
|||||||||||
Due after five years through ten years
|
3,295,000
|
3,321,293
|
-
|
-
|
|||||||||||
Due after ten years
|
20,865,601
|
20,793,305
|
13,432,285
|
12,889,550
|
|||||||||||
Mortgage-backed securities (including securities with interest rates ranging
|
|||||||||||||||
from 4.0% to 6.4% maturing February 2013 to September 2038)
|
136,795,309
|
142,230,346
|
121,724,975
|
124,904,616
|
|||||||||||
$
|
164,447,614
|
$
|
169,887,764
|
$
|
144,644,366
|
$
|
147,367,062
|
March 31, 2010
|
|||||
Principal Amounts
|
Interest
Rates |
Maturity Dates For Periods Ending
March 31,
|
|||
$ |
8,000,000
|
3.99% - 4.99%
|
2012
|
||
10,000,000
|
2.55 - 2.59
|
2013
|
|||
5,000,000
|
3.99
|
2014
|
|||
12,500,000
|
2.91 - 3.08
|
2015
|
|||
10,000,000
|
4.26
|
2017
|
|||
5,000,000
|
4.29
|
2018
|
|||
$ |
50,500,000
|
June 30, 2010
|
|||||
Principal Amounts
|
Interest
Rates |
Maturity Dates For Periods Ending
June 30,
|
|||
$ |
2,815,000
|
0.28% - 4.31%
|
2010
|
||
3,000,000
|
4.99
|
2011
|
|||
5,000,000
|
3.99
|
2012
|
|||
15,000,000
|
2.55 - 3.99
|
2013
|
|||
10,000,000
|
4.26
|
2017
|
|||
5,000,000
|
4.29
|
2018
|
|||
$ |
40,815,000
|
March 31, 2010
|
||||||||||||||||
Amount
|
Interest Rate
|
Imbedded
Cap/Floor |
Amount of Cap/Floor
|
Strike Rate
|
Maturity
|
|||||||||||
$ | 20,000,000 | 4.68 | % |
Purchased Caps
|
$ | 40,000,000 |
Expired
|
August 28, 2012
|
||||||||
$ | 10,000,000 | 3.98 | % |
Sold Floors
|
$ | 20,000,000 |
Expired
|
August 28, 2012
|
||||||||
$ | 10,000,000 | 4.18 | % |
Purchased Caps
|
$ | 10,000,000 | 4.88 | % |
December 13, 2012
|
|||||||
$ | 10,000,000 | 4.30 | % |
Purchased Caps
|
$ | 10,000,000 | 3.79 | % |
July 3, 2013
|
|||||||
$ | 10,000,000 | 4.44 | % |
Purchased Caps
|
$ | 10,000,000 | 3.81 | % |
September 23, 2015
|
|||||||
$ | 5,000,000 | 2.86 | % |
None
|
March 25, 2014
|
|||||||||||
$ | 65,000,000 |
June 30, 2009
|
||||||||||||||||
Amount
|
Interest Rate
|
Imbedded
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
|
|||||||
$ | 10,000,000 | 4.30 | % |
Purchased Caps
|
$ | 10,000,000 | 3.79 | % |
July 3, 2013
|
|||||||
$ | 10,000,000 | 4.44 | % |
Purchased Caps
|
$ | 10,000,000 | 3.81 | % |
September 23, 2015
|
|||||||
$ | 5,000,000 | 2.86 | % |
None
|
March 25, 2014
|
|||||||||||
$ | 65,000,000 |
2011
|
$ |
264,262
|
|
2012
|
264,262
|
||
2013
|
264,262
|
||
2014
|
264,262
|
||
2015
|
264,262
|
||
2016 | and thereafter |
1,619,335
|
|
Total minimum lease payments
|
2,940,645
|
||
Less imputed interest
|
672,184
|
||
Capital lease obligation
|
$ |
2,268,461
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Professional fees
|
$ | 368,583 | $ | 190,196 | $ | 954,000 | 589,300 | |||||||||
FDIC insurance
|
158,968 | 150,000 | 478,766 | 299,176 | ||||||||||||
Advertising expense
|
141,251 | 112,272 | 397,467 | 410,369 | ||||||||||||
Computer services and processing costs
|
227,982 | 210,095 | 669,680 | 591,689 | ||||||||||||
Loan expense
|
193,138 | 245,135 | 511,058 | 583,499 | ||||||||||||
Telephone expense
|
71,918 | 86,274 | 257,088 | 267,976 | ||||||||||||
Write-down of available-for-sale securities
|
- | 23,978 | 103,203 | 318,244 | ||||||||||||
Write-down of non-marketable securities
|
38,113 | 1,675 | 99,041 | 5,025 | ||||||||||||
Other
|
519,491 | 489,072 | 1,462,390 | 1,522,388 | ||||||||||||
$ | 1,719,444 | $ | 1,508,697 | $ | 4,932,693 | $ | 4,587,666 |
Acquisition
|
||||||||||||
Purchase price
|
2009
|
2008
|
2007
|
|||||||||
Cash paid
|
$ | 715,000 | 3,701,250 | 2,450,000 | ||||||||
Debt incurred
|
- | 2,823,936 | 2,317,000 | |||||||||
Acquisition costs
|
2,710 | 36,354 | 21,002 | |||||||||
Total
|
$ | 717,710 | 6,561,540 | 4,788,002 | ||||||||
Allocation of purchase price:
|
||||||||||||
Goodwill
|
$ | 100,160 | 1,545,110 | 2,472,906 | ||||||||
Customer list intangible
|
480,000 | 3,905,000 | 1,970,000 | |||||||||
Non-compete intangible
|
135,000 | 1,100,000 | 535,000 | |||||||||
Fixed and other assets
|
2,550 | 11,430 | 14,096 | |||||||||
Deferred income taxes
|
- | - | (204,000 | ) | ||||||||
Total
|
$ | 717,710 | 6,561,540 | 4,788,002 |
Mexico
|
Rangeley
|
|||||||
Sale price
|
$ | 269,575 | 279,791 | |||||
Allocated customer intangible, net of amortization
|
153,803 | 145,656 | ||||||
Fixed assets, net of accumulated depreciation
|
- | 4,229 | ||||||
Gain recognized
|
$ | 115,772 | 129,906 |
Fair Value Measurements at Reporting Date Using:
|
||||||||||||||||
March 31, 2010:
|
Total
|
Quoted Prices in
Active Markets for
Identical Assets
Level 1
|
Significant
Other Observable
Inputs
Level 2
|
Significant
Unobservable
Inputs
Level 3
|
||||||||||||
Securities available-for-sale
|
$ | 170,762,997 | 1,345,455 | 169,417,542 | - | |||||||||||
Other assets – purchased interest rate caps
|
218,889 | - | - | 218,889 |
Fair Value Measurements at Reporting Date Using:
|
||||||||||||||||
June 30, 2009:
|
Total
|
Quoted Prices in
Active Markets for
Identical Assets
Level 1
|
Significant
Other Observable
Inputs
Level 2
|
Significant
Unobservable
Inputs
Level 3
|
||||||||||||
Securities available-for-sale
|
$ | 148,410,140 | 1,454,690 | 146,955,450 | - |
2010
|
||||
Beginning balance
|
$ | - | ||
Transferred in
|
218,889 | |||
Ending balance at March 31
|
$ | 218,889 |
Fair Value Measurements at Reporting Date Using:
|
||||||||||||||||
March 31, 2010:
|
Total
|
Quoted Prices in
Active Markets for
Identical Assets
Level 1
|
Significant
Other Observable
Inputs
Level 2
|
Significant
Unobservable
Inputs
Level 3
|
||||||||||||
Impaired Loans
|
$ | 1,014,061 | - | - | 1,014,061 | |||||||||||
Acquired assets
|
1,920,172 | - | 1,325,230 | 594,942 |
Fair Value Measurements at Reporting Date Using:
|
||||||||||||||||
June 30, 2009:
|
Total
|
Quoted Prices in
Active Markets for
Identical Assets
Level 1
|
Significant
Other Observable
Inputs
Level 2
|
Significant
Unobservable
Inputs
Level 3
|
||||||||||||
Impaired Loans
|
$ | 1,708,330 | - | 512,645 | 1,195,685 | |||||||||||
Acquired assets
|
672,669 | - | - | 672,669 |
2010
|
2009
|
|||||||
Beginning balance
|
$ | 1,195,685 | $ | 971,405 | ||||
Loans transferred in
|
1,255,213 | 2,210,086 | ||||||
Loans transferred out
|
1,436,837 | 1,703,778 | ||||||
Ending balance at March 31
|
$ | 1,014,061 | $ | 1,477,713 |
2010
|
2009
|
|||||||
Beginning balance
|
$ | 672,669 | $ | 678,349 | ||||
Loans transferred in
|
582,211 | 647,208 | ||||||
Loans transferred out
|
659,938 | 539,276 | ||||||
Ending balance at March 31
|
$ | 594,942 | $ | 786,281 |
Fair Value Measurements at Reporting Date Using:
|
||||||||||||||||
March 31, 2010:
|
Total
|
Quoted Prices in
Active Markets for
Identical Assets
Level 1
|
Significant
Other Observable
Inputs
Level 2
|
Significant
Unobservable
Inputs
Level 3
|
||||||||||||
Derivative financial instruments
|
83,672 | - | - | 83,672 |
2010
|
||||
Beginning balance
|
$ | - | ||
Transferred in
|
83,672 | |||
Ending balance at March 31
|
$ | 83,672 |
March 31, 2010
|
June 30, 2009
|
|||||||||||||||
Carrying
Value
|
Estimated
Fair Value
|
Carrying
Value
|
Estimated
Fair Value
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 9,053 | 9,053 | $ | 13,023 | 13,023 | ||||||||||
Available-for-sale securities
|
170,763 | 170,763 | 148,410 | 148,410 | ||||||||||||
Regulatory stock (FHLB and FRB)
|
5,486 | 5,486 | 5,486 | 5,486 | ||||||||||||
Loans held-for-sale
|
2,574 | 2,581 | 2,437 | 2,444 | ||||||||||||
Loans, net
|
380,618 | 388,611 | 387,887 | 396,113 | ||||||||||||
Accrued interest receivable
|
2,148 | 2,148 | 2,200 | 2,200 | ||||||||||||
Other assets – purchased interest rate caps
|
325 | 219 | - | - | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits (with no stated maturity)
|
159,107 | 159,107 | 134,822 | 134,822 | ||||||||||||
Time deposits
|
221,257 | 224,421 | 250,564 | 254,134 | ||||||||||||
Federal Home Loan Bank advances
|
50,500 | 53,207 | 40,815 | 43,151 | ||||||||||||
Structured repurchase agreements
|
65,000 | 70,121 | 65,000 | 70,121 | ||||||||||||
Other borrowings
|
2,630 | 2,630 | 3,264 | 3,264 | ||||||||||||
Short-term borrowings
|
41,456 | 41,456 | 34,435 | 34,435 | ||||||||||||
Capital lease obligation
|
2,268 | 2,399 | 2,379 | 2,517 | ||||||||||||
Junior subordinated debentures issued to affiliated trusts
|
16,496 | 10,158 | 16,496 | 10,158 | ||||||||||||
Other liabilities - interest rate swaps | 84 | 84 | - | - |
Interest Rate Caps
|
Interest Rate Swap
|
|||||||
Notional amount
|
$ | 6,000,000 | $ | 10,000,000 | ||||
Weighted average pay rate
|
4.69 | % | ||||||
Weighted average receive rate
|
2.14 | % | ||||||
Strike rate based on 3 month LIBOR
|
2.505 | % | ||||||
Weighted average maturity in years
|
4.5 | 4.8 | ||||||
Unrealized losses
|
$ | 106,111 | $ | 83,672 |
March 31, 2010
|
Asset Derivatives
|
||||
Derivatives designated as hedging instruments under A5C815:
|
|||||
Balance Sheet Location
|
Fair Value
|
||||
Interest Rate Contracts
|
Other Assets
|
$ | 135,217 |
Difference Due to
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
Investments
|
$
|
82,825
|
$
|
(222,173
|
)
|
$
|
(139,348
|
)
|
||||
Loans, net
|
(248,913
|
)
|
(83,988
|
)
|
(332,901
|
)
|
||||||
FHLB & Other Deposits
|
10,991
|
(26,554
|
)
|
( 15,563
|
)
|
|||||||
Total Interest-earnings Assets
|
(155,097
|
)
|
(332,715
|
)
|
(487,812
|
)
|
||||||
Deposits
|
58,762
|
(615,171
|
)
|
(556,409
|
)
|
|||||||
Securities sold under Repurchase Agreements
|
26,488
|
( 7,224
|
)
|
19,264
|
||||||||
Borrowings
|
(230,227
|
)
|
(88,538
|
)
|
(318,765
|
)
|
||||||
Total Interest-bearing Liabilities
|
(144,977
|
)
|
( 710,933
|
)
|
(855,910
|
)
|
||||||
Net Interest and Dividend Income
|
$
|
(10,120
|
)
|
$
|
378,218
|
$
|
368,098
|
|||||
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 $54,273 and $50,436 for the three months ended March 31, 2010 and 2009, respectively.
|
Difference Due to
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
Investments
|
$
|
497,277
|
|
$
|
(714,198
|
)
|
$
|
(216,921
|
)
|
|||
Loans, net
|
(701,791
|
)
|
(978,745
|
)
|
(1,680,536
|
)
|
||||||
FHLB & Other Deposits
|
25,813
|
(66,241
|
)
|
(40,428
|
)
|
|||||||
Total Interest-earnings Assets
|
(178,701
|
)
|
(1,759,184
|
)
|
(1,937,885
|
)
|
||||||
Deposits
|
338,903
|
(1,983,922
|
)
|
(1,645,019
|
)
|
|||||||
Securities sold under Repurchase Agreements
|
70,138
|
( 171,700
|
)
|
( 101,562
|
)
|
|||||||
Borrowings
|
(762,286
|
)
|
(243,842
|
)
|
(1,006,128
|
)
|
||||||
Total Interest-bearing Liabilities
|
(353,245
|
)
|
( 2,399,464
|
)
|
(2,752,709
|
)
|
||||||
Net Interest and Dividend Income
|
$
|
174,544
|
$
|
640,280
|
$
|
814,824
|
||||||
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 $158,930 and $152,434 for the nine months ended March 31, 2010 and 2009, respectively.
|
Consumer Loans as of
|
||||||||||||||||
March 31, 2010
|
June 30, 2009
|
|||||||||||||||
Indirect Auto
|
$
|
16,920,030
|
22
|
%
|
$
|
25,862,715
|
27
|
%
|
||||||||
Indirect RV
|
38,715,949
|
52
|
%
|
46,002,568
|
48
|
%
|
||||||||||
Indirect Mobile Home
|
13,306,551
|
18
|
%
|
18,874,678
|
19
|
%
|
||||||||||
Subtotal Indirect
|
68,942,530
|
92
|
%
|
90,739,961
|
94
|
%
|
||||||||||
Other
|
5,849,328
|
8
|
%
|
5,725,006
|
6
|
%
|
||||||||||
Total
|
$
|
74,791,858
|
100
|
%
|
$
|
96,464,967
|
100
|
%
|
Description
|
March 31, 2010
|
June 30, 2009
|
||||
Residential Real Estate
|
$
|
2,306,000
|
$
|
1,620,000
|
||
Commercial Real Estate
|
3,972,000
|
4,373,000
|
||||
Construction Loans
|
249,000
|
-
|
||||
Commercial Loans
|
2,487,000
|
3,327,000
|
||||
Consumer and Other
|
830,000
|
574,000
|
||||
Total non-performing
|
$
|
9,844,000
|
$
|
9,894,000
|
3/31/10
|
12/31/09
|
9/30/09
|
6/30/09
|
3/31/09
|
||||
4.88%
|
5.65%
|
4.46%
|
4.27%
|
5.10%
|
Brokered time deposit
|
$
|
148,112,000
|
Subject to policy limitation of 25% of total assets
|
Federal Home Loan Bank of Boston
|
33,572,000
|
Unused advance capacity subject to eligible
and qualified collateral |
|
Federal Reserve Bank Discount Window Borrower-in-Custody
|
21,184,000
|
Unused credit line subject to the pledge of indirect
auto loans and municipal bonds |
|
Total Unused Borrowing Capacity
|
$
|
202,868,000
|
Affiliated Trusts
|
Outstanding Balance
|
Rate
|
First Call Date
|
|||
NBN Capital Trust II
|
$ 3,093,000
|
3.09%
|
March 30, 2009
|
|||
NBN Capital Trust III
|
3,093,000
|
3.09%
|
March 30, 2009
|
|||
NBN Capital Trust IV
|
10,310,000
|
4.69%
|
February 23, 2010
|
|||
Total
|
$ 16,496,000
|
4.09%
|
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 March 31, 2010:
|
||||||||||||||||||||||||
Total capital to risk weighted assets
|
$
|
56,186
|
13.90
|
%
|
$
|
32,334
|
8.00
|
%
|
$
|
40,417
|
10.00
|
%
|
||||||||||||
Tier 1 capital to risk weighted assets
|
$
|
50,214
|
12.42
|
%
|
$
|
16,167
|
4.00
|
%
|
$
|
24,250
|
6.00
|
%
|
||||||||||||
Tier 1 capital to total average assets
|
$
|
50,214
|
8.39
|
%
|
$
|
23,929
|
4.00
|
%
|
$
|
29,911
|
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 March 31, 2010:
|
||||||||||||||||||||||||
Total capital to risk weighted assets
|
$
|
53,597
|
13.32
|
%
|
$
|
32,186
|
8.00
|
%
|
$
|
40,223
|
10.00
|
%
|
||||||||||||
Tier 1 capital to risk weighted assets
|
$
|
48,557
|
12.07
|
%
|
$
|
16,093
|
4.00
|
%
|
$
|
24,140
|
6.00
|
%
|
||||||||||||
Tier 1 capital to total average assets
|
$
|
48,557
|
8.15
|
%
|
$
|
23,840
|
4.00
|
%
|
$
|
29,801
|
5.00
|
%
|
Payments Due by Period
|
||||||||||||||||||||
Less Than
|
After 5
|
|||||||||||||||||||
Contractual Obligations
|
Total
|
1 Year
|
1-3 Years
|
4-5 Years
|
Years
|
|||||||||||||||
FHLB advances
|
$
|
50,500,000
|
$
|
-
|
$
|
18,000,000
|
$
|
17,500,000
|
$
|
15,000,000
|
||||||||||
Structured repurchase agreements
|
65,000,000
|
-
|
40,000,000
|
15,000,000
|
10,000,000
|
|||||||||||||||
Junior subordinated notes
|
16,496,000
|
16,496,000
|
-
|
-
|
-
|
|||||||||||||||
Capital lease obligation
|
2,268,461
|
153,877
|
331,587
|
366,818
|
1,416,179
|
|||||||||||||||
Other borrowings
|
2,629,660
|
496,028
|
1,090,878
|
1,042,754
|
-
|
|||||||||||||||
Total long-term debt
|
136,894,121
|
17,145,905
|
59,422,465
|
33,909,572
|
26,416,179
|
|||||||||||||||
Operating lease obligations (1)
|
1,774,698
|
450,149
|
698,801
|
284,000
|
341,748
|
|||||||||||||||
Total contractual obligations
|
$
|
138,668,819
|
$
|
17,596,054
|
$
|
60,121,266
|
$
|
34,193,572
|
$
|
26,757,927
|
Amount of Commitment Expiration - Per Period
|
||||||||||||||||||||
Less Than
|
After 5
|
|||||||||||||||||||
Commitments with off-balance sheet risk
|
Total
|
1 Year
|
1-3 Years
|
4-5 Years
|
Years
|
|||||||||||||||
Commitments to extend credit (2)(4)
|
$
|
13,578,880
|
$
|
13,578,880
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Commitments related to loans held for sale(3)
|
7,509,766
|
7,509,766
|
-
|
-
|
-
|
|||||||||||||||
Unused lines of credit (4)(5)
|
51,996,528
|
27,399,197
|
2,166,722
|
4,476,154
|
17,954,455
|
|||||||||||||||
Standby letters of credit (6)
|
940,711
|
940,711
|
-
|
-
|
-
|
|||||||||||||||
$
|
74,025,885
|
$
|
49,428,554
|
$
|
2,166,722
|
$
|
4,476,154
|
$
|
17,954,455
|
(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.
|
Item 1.
|
None
|
|||||
Item 1. a.
|
None
|
|||||
Item 2.(c)
|
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)
|
||
Jan. 1 – Jan. 31
|
-
|
-
|
-
|
58,400
|
||
Feb. 1 – Feb. 28
|
-
|
-
|
-
|
58,400
|
||
Mar. 1 – Mar. 31
|
-
|
-
|
-
|
58,400
|
||
(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 the 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, 2010, unless extended.
|
|||||
Item 3.
|
None
|
|||||
Item 4.
|
None
|
|||||
Item 5.
|
None
|
|||||
Item 6.
|
||||||
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: May 12, 2010
|
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
|
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 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
|
|||||||
March 31, 2010
|
March 31, 2009
|
|||||||
EQUIVALENT SHARES:
|
||||||||
Weighted Average Shares Outstanding
|
2,322,332 | 2,321,332 | ||||||
Total Diluted Shares
|
2,342,153 | 2,321,332 | ||||||
Net Income
|
$ | 530,632 | $ | 387,370 | ||||
Less:
|
||||||||
Preferred Stock Dividend
|
52,837 | 52,838 | ||||||
Accretion of Preferred Stock
|
6,523 | 6,481 | ||||||
Amortization of issuance costs
|
1,300 | 1,300 | ||||||
Net income available to common stockholders
|
$ | 469,972 | $ | 326,751 | ||||
Basic Earnings Per Share
|
$ | 0.20 | $ | 0.14 | ||||
Diluted Earnings Per Share
|
$ | 0.20 | $ | 0.14 | ||||
Nine Months Ended
|
Nine Months Ended
|
|||||||
March 31, 2010
|
March 31, 2009
|
|||||||
EQUIVALENT SHARES:
|
||||||||
Weighted Average Shares Outstanding
|
2,321,726 | 2,319,332 | ||||||
Total Diluted Shares
|
2,331,227 | 2,329,527 | ||||||
Net Income
|
$ | 1,675,614 | $ | 750,060 | ||||
Less:
|
||||||||
Preferred Stock Dividend
|
158,512 | 64,200 | ||||||
Accretion of Preferred Stock
|
19,825 | 7,920 | ||||||
Amortization of issuance costs
|
3,901 | 1,566 | ||||||
Net income available to common stockholders
|
$ | 1,493,376 | $ | 676,374 | ||||
Basic Earnings Per Share
|
$ | 0.64 | $ | 0.29 | ||||
Diluted Earnings Per Share
|
$ | 0.64 | $ | 0.29 |
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.
|
May 12, 2010
|
/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.
|
May 12, 2010
|
/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 March 31, 2010 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.
|
May 12, 2010
|
/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 March 31, 2010 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.
|
May 12, 2010
|
/s/ Robert S. Johnson
|
Robert S. Johnson
|
|
Chief Financial Officer
|