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): October
22,
2007
NORTHEAST
BANCORP
(Exact
Name of Registrant as Specified in its Charter)
|
Maine
|
1-14588
|
01-0425066
|
|
(State
or Other Jurisdiction Incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification Number)
|
|
500
Canal Street, Lewiston,
Maine
|
04240
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
|
Registrant's
telephone number, including area code:
|
(207)
786-3245
|
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions.
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425).
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12).
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b)).
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240. Rule 13e-4(c)).
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|
Item
9.01
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Financial
Statements and Exhibits.
|
|
(c)
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Exhibits.
|
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Exhibit
No.
|
Description
|
|
99.1
|
Press
Release, dated October 22, 2007 regarding first quarter 2008 earnings
and
the declaration of a dividend.
|
Item
7.01 Regulation FD
Disclosure.
On
October 22, 2007, Northeast Bancorp, a Maine corporation (the "Company"), issued
a press release announcing its earnings for the first quarter ended September
30, 2007 and declaring the payment of a dividend. The full text of this press
release is attached hereto as Exhibit 99.1 and is incorporated herein by
reference.
The
information contained herein, including the exhibit attached hereto, is
furnished pursuant to Item 7.01 of this Form 8-K and shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended,
or otherwise subject to the liability of that section. Further, the
information in this report (including the exhibits hereto) are not to be
incorporated by reference into any of the Company's filings with the Securities
and Exchange Commission, whether filed prior to or after the furnishing of
these
certificates, regardless of any general or specific incorporation language
in
such filing.
Item
2.02 Results of Information and Financial
Condition.
The
press
release referred to under Item 7.01 above and filed as Exhibit 99.1 hereto
included disclosure regarding the earnings and financial results of Northeast
Bancorp for the first quarter ended September 30, 2007 and declaration of a
dividend. The full text of this press release is attached hereto as Exhibit
99.1
and is incorporated herein by reference.
The
information contained herein, including the exhibit attached
hereto, is furnished pursuant to Item 2.02 of this Form 8-K and shall
not be deemed "filed" for purposes of Section 18 of the Securities Exchange
Act
of 1934, as amended, or otherwise subject to the liability of that
section. Further, the information in this report (including the
exhibits hereto) are not to be incorporated by reference into any of the
Company's filings with the Securities and Exchange Commission, whether filed
prior to or after the furnishing of these certificates, regardless of any
general or specific incorporation language in such filing.
[Rest
of Page Intentionally Blank. Signature on Following
Page.]
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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NORTHEAST
BANCORP
|
||
|
Date: October
22, 2007
|
By:
|
/s/ James
D. Delamater
|
|
James
D. Delamater
|
||
|
President
and Chief Executive Officer
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EXHIBIT
INDEX
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
Release, dated October 22, 2007 regarding first quarter 2008 earnings
and
the declaration of a dividend.
|
|
FOR
IMMEDIATE RELEASE
|
 |
|
For
More Information:
|
|
|
Jim
Delamater, President & CEO
Northeast
Bank, 500 Canal Street,
Lewiston, ME 04240
www.northeastbank.com
|
1-800-284-5989
ext. 3569
jdelamater@northeastbank.com
|
Northeast
Bancorp Announces 1st Quarter
Earnings
and Quarterly Dividend
Lewiston,
MAINE (October 22, 2007) - Northeast Bancorp (NASDAQ: NBN), the
parent company of Northeast Bank, reported earnings for the quarter ended
September 30, 2007 of $430,565, or $0.18 per diluted share, as compared to
earnings for the same period last year of $454,667, or $0.18 per diluted
share. Earnings reported for this quarter remained relatively steady
in comparison to the prior year period resulting from lower net interest margins
and an increase in noninterest expenses, partially offset by an increase in
noninterest income and a lower provision for loan losses. The increase in
noninterest income and expenses was primarily due to the five previously
announced insurance agency acquisitions completed since November
2006.
“We
are
pleased with the results in the first fiscal quarter as we continued to boost
the lines of business that are independent of the rate environment specifically
in the investment and insurance divisions where we are experiencing healthy
growth,” said Jim Delamater, President and CEO of Northeast
Bancorp.
Noninterest
income levels increased to $1,989,374 for the quarter ended September 30, 2007
as compared to $1,462,428 for the same period in 2006, an increase of 36% with
insurance and investment revenues increasing by 102% and 7%,
respectively. And, while the Company experienced a net decrease in
loans, residential real estate originations and secondary market sales increased
resulting in a 60% increase in gain on loan sales compared to last
year.
Delamater
explains, “We opted to continue to book loans only when prudent, in terms of
credit quality and pricing to maintain the integrity of our credit
portfolio. We focused on leveraging our network of national lenders
which proved invaluable by allowing us to offer competitive mortgage and
commercial programs without compromising the balance sheet. This
strategy has shown signs of success as evidenced by the increase in gain on
loan
sales these past two quarters.”
This
quarter also saw an increase in activity in the Company’s insurance subsidiary,
Northeast Bank Insurance Group, Inc. Acquiring the Lewiston-based
Hartford Agency was one of the largest agency acquisitions to date and was
the
Company’s fifth insurance agency acquisition in less than a year. As
a result of these acquisitions, insurance offices now number twelve and with
this latest acquisition insurance commissions are projected to increase by
an
additional $700,000 over the next year.
The
Company also announced this quarter that it had transferred the listing of
its
common stock from the American Stock Exchange to The NASDAQ Stock Market
LLC® ; a move
that it believes will benefit shareholders by enhancing the Company’s exposure
and liquidity and, at the same time provide improved pricing and faster
execution.
Finally,
the Board of Directors declared a dividend of $0.09 per share payable on
November 23, 2007 to shareholders of record as of the close of business on
November 2, 2007. As of September 30, 2007, Northeast Bancorp had
total assets of approximately $574 million. Northeast Bancorp common shares
trade on the NASDAQ with
approximately 2.4 million shares outstanding and, as of September 30, 2007,
had
a book value of $17.14 per share, an increase from $16.56 at the end of the
same period last year.
Delamater
says, "We feel that our strategy of focusing on full diversification of our
revenue streams while protecting the integrity of the balance sheet, will serve
our shareholders well in the long run. Our franchise value rests in
our ability to deliver multiple products and services to each and every
household we serve and to price those relationships competitively across all
business lines; a practice that we believe gives Northeast an edge in the
marketplace.”
Northeast
Bancorp, headquartered at 500 Canal Street, Lewiston, ME 04240, is the holding
company for the Maine-based Northeast Bank, founded in 1872. Northeast Bank,
together with its wholly-owned subsidiary, Northeast Bank Insurance Group,
Inc.
operates 24 retail and insurance locations and derives its income from a
combination of traditional banking services and non-traditional financial
products and services including insurance and investments.
Management
encourages present and prospective shareholders to contact President and CEO
Jim
Delamater directly to discuss the Company, its products and services, and
ongoing efforts to develop shareholder value. He can be reached at
jdelamater@northeastbank.com or toll free at 1-800-284-5989. Management also
suggests that any person wishing to utilize the services of Northeast Bancorp
or
its subsidiaries or interested in learning more about the Company can access
its
web site at www.northeastbank.com.
---------------------------------------------------------------------------------------------------------------------
This
communication contains certain “forward-looking statements”. Although
the Company believes that these forward-looking statements are based on
reasonable estimates and assumptions, they are not guarantees of future
performance and are subject to known and unknown risks, uncertainties, and
other
factors. These statements speak only as of the date of this report
and we do not undertake any obligation to update or revise any of these
forward-looking statements to reflect events or circumstances occurring after
the date of this communication or to reflect the occurrence of unanticipated
events. For a more complete discussion of certain risks and
uncertainties affecting the Company, please see "Item 1.
Business-Forward-Looking Statements and Risk Factors" set forth in the Company's
Form 10-K for the year ended June 30, 2007.
Customer
access to securities is provided through Commonwealth Financial Network, Member
NASD/SIPC. Important information--Securities, annuities, and insurance
products are not deposit products, not FDIC insured, are subject to investment
risk, including the possible loss of principal, and are not an obligation of
or
guaranteed by the Bank.
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NORTHEAST
BANCORP
|
||||||||||||
|
(Dollars
in Thousands, Except Per Share and Shares Outstanding
Data)
|
||||||||||||
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(Unaudited)
|
||||||||||||
|
Three
Months Ended
|
||||||||||||
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September
30,
|
%
|
|||||||||||
|
2007
|
2006
|
Change
|
||||||||||
|
Selected
financial information
|
||||||||||||
|
Income
statement data:
|
||||||||||||
|
Interest
income
|
$ |
8,957
|
$ |
9,022
|
-1 | % | ||||||
|
Interest
expense
|
5,364
|
4,907
|
9 | % | ||||||||
|
Net
interest income
|
3,593
|
4,115
|
-13 | % | ||||||||
|
Provision
for loan losses
|
190
|
301
|
-37 | % | ||||||||
|
Net
interest income after provision for loan losses
|
3,403
|
3,814
|
-11 | % | ||||||||
|
Gain
on sale of loans
|
153
|
96
|
59 | % | ||||||||
|
(Loss)
Gain on securities
|
(6 | ) |
4
|
-250 | % | |||||||
|
Investment
income
|
398
|
372
|
7 | % | ||||||||
|
Insurance
income
|
866
|
428
|
102 | % | ||||||||
|
Other
noninterest income
|
578
|
562
|
3 | % | ||||||||
|
Noninterest
Income
|
1,989
|
1,462
|
36 | % | ||||||||
|
Noninterest
expense
|
4,842
|
4,670
|
4 | % | ||||||||
|
Operating
income before income tax
|
550
|
606
|
-9 | % | ||||||||
|
Income
tax expense
|
119
|
152
|
-22 | % | ||||||||
|
Net
income
|
$ |
431
|
$ |
454
|
-5 | % | ||||||
|
Per
share data:
|
||||||||||||
|
Basic
earning per common share
|
$ |
0.18
|
$ |
0.19
|
-5 | % | ||||||
|
Diluted
earnings per common share
|
$ |
0.18
|
$ |
0.18
|
0 | % | ||||||
|
Weighted
average shares outstanding:
|
||||||||||||
|
Basic
|
2,415,952
|
2,448,762
|
-1 | % | ||||||||
|
Diluted
|
2,432,977
|
2,470,202
|
-2 | % | ||||||||
|
Book
value per share
|
$ |
17.14
|
$ |
16.56
|
||||||||
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Tangible
book value per share
|
$ |
13.66
|
$ |
15.64
|
||||||||
|
Net
interest margin
|
2.75 | % | 3.05 | % | ||||||||
|
Net
interest spread
|
2.42 | % | 2.77 | % | ||||||||
|
Return
on average assets (annualized)
|
0.31 | % | 0.32 | % | ||||||||
|
Return
on equity (annualized)
|
4.17 | % | 4.52 | % | ||||||||
|
Tier
I leverage ratio (Bank)
|
8.11 | % | 9.10 | % | ||||||||
|
Tier
I risk-based capital ratio (Bank)
|
10.84 | % | 12.10 | % | ||||||||
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Total
risk-based capital ratio (Bank)
|
12.09 | % | 13.34 | % | ||||||||
|
Efficiency
ratio
|
87 | % | 84 | % | ||||||||
|
Nonperforming
loans
|
6,118
|
5,086
|
||||||||||
|
Total
nonperforming assets
|
6,118
|
5,093
|
||||||||||
|
Nonperforming
loans as a % of total loans
|
1.45 | % | 1.16 | % | ||||||||
|
Nonperforming
assets as a % of total assets
|
1.07 | % | 0.89 | % | ||||||||
|
September
30,
|
%
|
|||||||||||
|
2007
|
2006
|
Change
|
||||||||||
|
Balance
sheet highlights:
|
||||||||||||
|
Available-for-sale
securities, at fair value
|
$ |
109,526
|
$ |
88,194
|
24 | % | ||||||
|
Loans
held for sale
|
830
|
997
|
-17 | % | ||||||||
|
Loans
|
421,290
|
440,056
|
-4 | % | ||||||||
|
Allowance
for loan losses
|
5,756
|
5,606
|
3 | % | ||||||||
|
Goodwill
& intangibles
|
8,254
|
2,261
|
265 | % | ||||||||
|
Total
assets
|
573,680
|
570,053
|
1 | % | ||||||||
|
Deposits:
|
||||||||||||
|
NOW
and money market
|
63,597
|
68,214
|
-7 | % | ||||||||
|
Savings
|
21,519
|
23,582
|
-9 | % | ||||||||
|
Certificates
of deposits
|
222,478
|
217,630
|
2 | % | ||||||||
|
Brokered
time deposits
|
18,861
|
45,379
|
-58 | % | ||||||||
|
Noninterest-bearing
deposits
|
34,558
|
35,482
|
-3 | % | ||||||||
|
Total
deposits
|
361,013
|
390,287
|
-8 | % | ||||||||
|
Borrowings
|
169,242
|
135,922
|
25 | % | ||||||||
|
Shareholders'
equity
|
40,641
|
40,604
|
0 | % | ||||||||
|
Shares
outstanding
|
2,371,332
|
2,452,132
|
-3 | % | ||||||||