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): July 28, 2015
Commission File No. 1-14588
NORTHEAST BANCORP
(Exact name of registrant as specified in its charter)
Maine |
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01-0425066 |
(State or other jurisdiction of incorporation) |
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(IRS Employer Identification Number) |
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500 Canal Street |
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Lewiston, Maine |
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04240 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (207) 786-3245
Former name or former address, if changed since last Report: N/A
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
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
o Pre-commencement to communications pursuant to Rule 13e-4(c) under the Exchange Act
Item 2.02 Results of Operations and Financial Condition
On July 28, 2015, Northeast Bancorp, a Maine corporation (the Company), issued a press release announcing its earnings for the fourth quarter of fiscal 2015 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 Companys 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
(c) Exhibits
Exhibit No. |
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Description |
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99.1 |
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Press Release dated July 28, 2015 |
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 hereunder duly authorized.
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NORTHEAST BANCORP | |
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By: |
/s/ Brian Shaughnessy |
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Name: |
Brian Shaughnessy |
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Title: |
Chief Financial Officer and Treasurer |
Date: July 28, 2015
Exhibit 99.1
FOR IMMEDIATE RELEASE
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For More Information: Claire S. Bean, COO Northeast Bank, 500 Canal Street, Lewiston, ME 04240 207.786.3245 ext. 3202 www.northeastbank.com |
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Northeast Bancorp Reports Fourth Quarter Results, Declares Dividend
Lewiston, ME (July 28, 2015) Northeast Bancorp (Northeast or the Company) (NASDAQ: NBN), a Maine-based full-service financial services company and parent of Northeast Bank (the Bank), today reported net income of $2.2 million, or $0.22 per diluted common share, for the quarter ended June 30, 2015, compared to net income of $542 thousand, or $0.05 per diluted common share, for the quarter ended June 30, 2014. Net income for the year ended June 30, 2015 was $7.1 million, or $0.72 per diluted common share, compared to $2.7 million, or $0.26 per diluted common share, for the year ended June 30, 2014.
The Board of Directors has declared a cash dividend of $0.01 per share, payable on August 25, 2015 to shareholders of record as of August 11, 2015.
We closed the year with our strongest quarter to date, said Richard Wayne, President and Chief Executive Officer. Our new SBA Division originated loans totaling $22 million, generating $1.9 million in gains on the sale of $15 million of loans in the secondary market. Overall our loan portfolio increased 6% and strong transactional income of $2.4 million helped drive our net interest margin of 4.7% for the quarter.
Looking back on the year, we made significant progress in the execution of our business plan, Wayne continued. Loans increased by $96 million or 18%, growth we funded entirely with new deposits. We leveraged our operating platform, growing revenue by $7 million with a $900 thousand increase in noninterest expense. And, in our effort to improve shareholder returns, we repurchased 710,662 shares at a weighted average price of $9.38.
At June 30, 2015, total assets were $850.8 million, an increase of $88.9 million, or 11.7%, compared to June 30, 2014. The principal components of the change in the balance sheet follow:
1. The loan portfolio excluding loans held for sale grew by $95.7 million, or 18.5%, compared to June 30, 2014, the result of net growth of $99.9 million in commercial loans purchased or originated by the Banks Loan Acquisition and Servicing Group (LASG), offset by a $4.2 million decrease in the Banks Community Banking Division loan portfolio.
New loans generated by the LASG totaled $54.0 million and $213.2 million for the quarter and year ended June 30, 2015, respectively. The quarterly growth in LASG loans consisted of $24.8 million of purchased loans, at an average price of 96.0%, and $29.2 million of originated loans. Small Business Administration (SBA) loans originated during the quarter totaled $21.5 million, of which $15.2 million were sold in the secondary market. Residential and consumer loan production sold in the secondary market totaled $25.5 million for the quarter.
As discussed in the Companys prior SEC filings, the Company made certain commitments to the Board of Governors of the Federal Reserve System in connection with the merger of FHB Formation LLC with
and into the Company in December 2010. The Companys loan purchase and commercial real estate loan availability under these conditions follow:
Basis for |
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Condition |
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Availability at June 30, 2015 |
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(Dollars in millions) |
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Total Loans |
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Purchased loans may not exceed 40% of total loans |
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$ |
76.5 |
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Regulatory Capital |
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Non-owner occupied commercial real estate loans may not exceed 300% of total risk-based capital |
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$ |
136.5 |
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An overview of the Banks LASG portfolio follows:
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LASG Portfolio |
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Three Months Ended June 30, |
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2015 |
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2014 |
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Purchased |
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Originated |
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Secured Loans to |
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Total LASG |
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Purchased |
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Originated |
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Secured Loans to |
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Total LASG |
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(Dollars in thousands) |
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Loans purchased or originated during the period: |
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Unpaid principal balance |
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$ |
25,785 |
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$ |
29,193 |
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$ |
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$ |
54,978 |
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$ |
38,244 |
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$ |
11,503 |
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$ |
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$ |
49,747 |
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Net investment basis |
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24,758 |
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29,193 |
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53,951 |
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33,556 |
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11,503 |
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45,059 |
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Loan returns during the period: |
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Yield |
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13.11 |
% |
5.56 |
% |
0.49 |
% |
8.79 |
% |
12.15 |
% |
6.77 |
% |
0.62 |
% |
10.13 |
% | |||||||||||||
Total Return (1) |
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13.39 |
% |
5.56 |
% |
0.50 |
% |
9.00 |
% |
12.21 |
% |
9.35 |
% |
0.62 |
% |
10.78 |
% | |||||||||||||
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Year Ended June 30, |
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2015 |
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2014 |
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Purchased |
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Originated |
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Secured Loans to |
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Total LASG |
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Purchased |
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Originated |
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Secured Loans to |
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Total LASG |
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(Dollars in thousands) |
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Loans purchased or originated during the period: |
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Unpaid principal balance |
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$ |
93,694 |
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$ |
82,502 |
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$ |
48,000 |
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$ |
224,196 |
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$ |
91,288 |
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$ |
54,225 |
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$ |
12,000 |
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$ |
157,513 |
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Net investment basis |
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82,654 |
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82,502 |
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48,000 |
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213,156 |
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79,823 |
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54,225 |
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12,000 |
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146,048 |
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Loan returns during the period: |
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Yield |
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13.00 |
% |
6.44 |
% |
0.47 |
% |
9.73 |
% |
11.43 |
% |
7.49 |
% |
0.61 |
% |
9.70 |
% | ||||||||
Total Return (1) |
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13.33 |
% |
6.75 |
% |
0.48 |
% |
10.02 |
% |
11.76 |
% |
8.48 |
% |
0.61 |
% |
10.11 |
% | ||||||||
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Total loans as of period end: |
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Unpaid principal balance |
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$ |
239,933 |
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$ |
118,416 |
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$ |
60,000 |
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$ |
418,349 |
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$ |
242,631 |
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$ |
65,558 |
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$ |
12,000 |
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$ |
320,219 |
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Net investment basis |
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$ |
202,592 |
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$ |
118,261 |
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$ |
60,011 |
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$ |
380,864 |
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$ |
203,450 |
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$ |
65,561 |
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$ |
12,000 |
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$ |
281,011 |
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(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains on asset sales, and other noninterest income recorded during the period divided by the average invested balance, on an annualized basis.
2. Deposits increased by $19.6 million, or 3.0%, from March 31, 2015, attributable primarily to growth in non-maturity accounts, which increased by $17.1 million, or 5.5%, for the quarter ended June 30, 2015, as well as an increase of $2.5 million in time deposits. For the year, deposits increased by $100.4 million, or 17.5%, mainly the result of increases in money market accounts attracted through the Banks online-only ableBanking division.
3. Stockholders equity increased by $773 thousand from June 30, 2014, due principally to earnings of $7.1 million, as well as $705 thousand of scheduled amortization of stock-based compensation, offset by $6.7 million in share repurchases (representing 710,662 shares), a decrease in accumulated other comprehensive income of $5 thousand and $402 thousand in dividends paid on common stock. During the quarter, there were 230,726 shares repurchased for $2.3 million.
Net income from continuing operations increased by $1.6 million to $2.2 million for the quarter ended June 30, 2015, compared to $542 thousand for the quarter ended June 30, 2014.
1. Net interest and dividend income before provision for loan losses increased by $866 thousand, or 10.2%, for the quarter ended June 30, 2015 compared to the quarter ended June 30, 2014, due primarily to higher transactional interest income from purchased loan payoffs, and the positive effect of balance sheet growth. Average total interest-earning assets for the three months ended June 30, 2015 increased by $81.9 million, primarily due to an increase in average loans by $83.4 million, when compared to the three months ended June 30, 2014. For the year ended June 30, 2015, average total interest-earning assets increased by $70.6 million, and average loans increased by $66.2 million, compared to the year ended June 30, 2014.
The various components of transactional income are set forth in the table below entitled Total Return on Purchased Loans. When compared to the three months and year ended June 30, 2014, transactional interest income increased by $616 thousand and $4.5 million, respectively. The following table summarizes interest income and related yields recognized on the loan portfolios:
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Interest Income and Yield on Loans |
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Three Months Ended June 30, |
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2015 |
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2014 |
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Average |
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Interest |
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Average |
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Interest |
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Balance |
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Income |
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Yield |
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Balance |
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Income |
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Yield |
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(Dollars in thousands) |
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Community Banking Division |
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$ |
237,418 |
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$ |
2,965 |
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5.01 |
% |
$ |
247,802 |
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$ |
3,096 |
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5.01 |
% |
LASG: |
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Originated |
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106,963 |
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1,483 |
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5.56 |
% |
63,226 |
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1,067 |
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6.77 |
% | ||||
Purchased |
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195,016 |
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6,375 |
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13.11 |
% |
187,391 |
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5,677 |
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12.15 |
% | ||||
Secured Loans to Broker-Dealers |
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60,003 |
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73 |
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0.49 |
% |
17,538 |
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27 |
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0.62 |
% | ||||
Total LASG |
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361,982 |
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7,931 |
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8.79 |
% |
268,155 |
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6,771 |
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10.13 |
% | ||||
Total |
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$ |
599,400 |
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$ |
10,896 |
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7.29 |
% |
$ |
515,957 |
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$ |
9,867 |
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7.67 |
% |
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Year Ended June 30, |
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2015 |
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2014 |
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Average |
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Interest |
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Average |
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Interest |
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Balance |
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Income |
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Yield |
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Balance |
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Income |
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Yield |
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(Dollars in thousands) |
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Community Banking Division |
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$ |
236,128 |
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$ |
11,747 |
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4.97 |
% |
$ |
246,853 |
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$ |
12,926 |
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5.24 |
% |
LASG: |
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Originated |
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76,448 |
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4,924 |
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6.44 |
% |
47,494 |
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3,558 |
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7.49 |
% | ||||
Purchased |
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203,822 |
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26,500 |
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13.00 |
% |
178,377 |
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20,388 |
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11.43 |
% | ||||
Secured Loans to Broker-Dealers |
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44,942 |
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212 |
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0.47 |
% |
22,389 |
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137 |
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0.61 |
% | ||||
Total LASG |
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325,212 |
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31,636 |
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9.73 |
% |
248,260 |
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24,083 |
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9.70 |
% | ||||
Total |
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$ |
561,340 |
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$ |
43,383 |
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7.73 |
% |
$ |
495,113 |
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$ |
37,009 |
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7.47 |
% |
The yield on purchased loans for the three months and year ended June 30, 2015 increased primarily due to unscheduled loan payoffs, which resulted in immediate recognition in interest income of the discount associated with the prepaid loans. The following table details the total return on purchased loans, which includes transactional income of $2.4 million for the quarter ended June 30, 2015, an increase of $756 thousand from the quarter ended June 30, 2014. Additionally, total transactional income for the year ended June 30, 2015 increased by $4.5 million, compared to the year ended June 30, 2014. The following tables summarize the total return recognized on the purchased loan portfolio.
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Total Return on Purchased Loans |
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Three Months Ended June 30, |
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2015 |
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2014 |
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Income |
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Return (1) |
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Income |
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Return (1) |
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(Dollars in thousands) |
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Regularly scheduled interest and accretion |
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$ |
4,132 |
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8.43 |
% |
$ |
4,050 |
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8.64 |
% |
Transactional income: |
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Gains on loan sales |
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0.00 |
% |
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0.00 |
% | ||
Gain on sale of real estate owned |
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188 |
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0.38 |
% |
44 |
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0.09 |
% | ||
Other noninterest income |
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0.00 |
% |
4 |
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0.01 |
% | ||
Accelerated accretion and loan fees |
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2,243 |
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4.58 |
% |
1,627 |
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3.47 |
% | ||
Total transactional income |
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2,431 |
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4.96 |
% |
1,675 |
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3.57 |
% | ||
Total |
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$ |
6,563 |
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13.39 |
% |
$ |
5,725 |
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12.21 |
% |
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Year Ended June 30, |
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2015 |
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2014 |
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Income |
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Return (1) |
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Income |
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Return (1) |
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(Dollars in thousands) |
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Regularly scheduled interest and accretion |
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$ |
17,327 |
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8.48 |
% |
$ |
15,682 |
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8.75 |
% |
Transactional income: |
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Gains on loan sales |
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190 |
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0.09 |
% |
576 |
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0.32 |
% | ||
Gain on sale of real estate owned |
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607 |
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0.30 |
% |
100 |
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0.06 |
% | ||
Other noninterest income |
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(69 |
) |
-0.03 |
% |
4 |
|
0.00 |
% | ||
Accelerated accretion and loan fees |
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9,173 |
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4.49 |
% |
4,706 |
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2.63 |
% | ||
Total transactional income |
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9,901 |
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4.85 |
% |
5,386 |
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3.01 |
% | ||
Total |
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$ |
27,228 |
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13.33 |
% |
$ |
21,068 |
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11.76 |
% |
(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains on asset sales, and other noninterest income recorded during the period divided by the average invested balance, on an annualized basis.
2. Noninterest income increased by $1.6 million for the quarter ended June 30, 2015, compared to the quarter ended June 30, 2014, principally due to the following:
· An increase of $1.5 million in gains realized on sale of portfolio loans. The recent quarter includes gains realized on sale of SBA loans of $1.9 million, compared to a $403 thousand gain on sale of commercial loans in the quarter ended June 30, 2014; and
· An increase of $111 thousand in gains recognized on Real Estate Owned/Other Assets Acquired (REO/OAA).
3. Noninterest expense increased by $32 thousand for the quarter ended June 30, 2015, compared to the quarter ended June 30, 2014, principally due to the following:
· An increase of $124 thousand in salaries and employee benefits, principally due to increased employee head count;
· An increase of $189 thousand in professional fees primarily related to an increase in third party services; and
· A decrease of $126 thousand in other noninterest expense, principally due to contract termination costs and one-time non-capital expenses associated with the core banking systems conversion that occurred during the quarter ended June 30, 2014.
At June 30, 2015, nonperforming assets totaled $12.4 million, or 1.5% of total assets, as compared to $8.9 million, or 1.2% of total assets at June 30, 2014. The increase in nonperforming assets during the year was primarily due to the addition of one purchased loan relationship.
At June 30, 2015, the Companys Tier 1 Leverage Ratio was 14.4%, a decrease from 15.9% at June 30, 2014, and the Total Capital Ratio was 20.1%, a decrease from 23.7% at June 30, 2014. The decreases resulted primarily from balance sheet growth and the effect of purchases under the Companys share repurchase program in the year ended June 30, 2015.
Investor Call Information
Richard Wayne, Chief Executive Officer of Northeast Bancorp, Claire Bean, Chief Operating Officer of Northeast Bancorp, and Brian Shaughnessy, Chief Financial Officer of Northeast Bancorp, will host a conference call to discuss fourth quarter earnings and business outlook at 10:00 a.m. Eastern Time on Wednesday, July 29, 2015. Investors can access the call by dialing 877.878.2762 and entering the following passcode: 91797346. The call will be available via live webcast, which can be viewed by accessing the Companys website at www.northeastbank.com and clicking on the About Us - Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.
About Northeast Bancorp
Northeast Bancorp (NASDAQ: NBN) is the holding company for Northeast Bank, a full-service bank headquartered in Lewiston, Maine. Northeast Bank offers traditional banking services through its Community Banking Division, which operates ten full-service branches and two loan production offices that serve individuals and businesses located in western and south-central Maine and southern New Hampshire. Northeast Banks Loan Acquisition and Servicing Group purchases and originates commercial loans for the Banks portfolio. In addition, the Small Business Lending division supports the needs of growing businesses nationally. ableBanking, a division of Northeast Bank, offers savings products to consumers online. Information regarding Northeast Bank can be found on its website at www.northeastbank.com.
Non-GAAP Financial Measure
In addition to results presented in accordance with generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures, including tangible common stockholders equity, tangible book value per share, and net operating earnings. Northeasts management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a companys financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies non-GAAP financial measures having the same or similar names.
Forward-Looking Statements
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 Companys control. The Companys actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; competitive pressures from other financial institutions; the effects of weakness 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; changing government regulation; the risk that the Company
may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Companys financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Companys Annual Report on Form 10-K and updated by the Companys 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 the Company does 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.
NBN-F
NORTHEAST BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
|
|
June 30, 2015 |
|
June 30, 2014 |
| ||
Assets |
|
|
|
|
| ||
Cash and due from banks |
|
$ |
2,789 |
|
$ |
3,372 |
|
Short-term investments |
|
87,061 |
|
78,887 |
| ||
Total cash and cash equivalents |
|
89,850 |
|
82,259 |
| ||
Available-for-sale securities, at fair value |
|
101,908 |
|
113,881 |
| ||
Loans held for sale |
|
9,035 |
|
11,945 |
| ||
Loans |
|
|
|
|
| ||
Commercial real estate |
|
348,676 |
|
316,098 |
| ||
Residential real estate |
|
132,668 |
|
148,634 |
| ||
Commercial and industrial |
|
123,134 |
|
41,800 |
| ||
Consumer |
|
7,659 |
|
9,884 |
| ||
Total loans |
|
612,137 |
|
516,416 |
| ||
Less: Allowance for loan losses |
|
1,926 |
|
1,367 |
| ||
Loans, net |
|
610,211 |
|
515,049 |
| ||
Premises and equipment, net |
|
8,253 |
|
9,135 |
| ||
Real estate owned and other possessed collateral, net |
|
1,651 |
|
1,991 |
| ||
Regulatory stock, at cost |
|
4,102 |
|
4,102 |
| ||
Intangible assets, net |
|
2,209 |
|
2,798 |
| ||
Bank owned life insurance |
|
15,276 |
|
14,836 |
| ||
Other assets |
|
8,335 |
|
5,935 |
| ||
Total assets |
|
$ |
850,830 |
|
$ |
761,931 |
|
Liabilities and Stockholders Equity |
|
|
|
|
| ||
Deposits |
|
|
|
|
| ||
Demand |
|
$ |
60,383 |
|
$ |
50,140 |
|
Savings and interest checking |
|
100,134 |
|
98,340 |
| ||
Money market |
|
168,527 |
|
83,901 |
| ||
Time |
|
345,715 |
|
341,948 |
| ||
Total deposits |
|
674,759 |
|
574,329 |
| ||
Federal Home Loan Bank advances |
|
30,188 |
|
42,824 |
| ||
Wholesale repurchase agreements |
|
10,037 |
|
10,199 |
| ||
Short-term borrowings |
|
2,349 |
|
2,984 |
| ||
Junior subordinated debentures issued to affiliated trusts |
|
8,626 |
|
8,440 |
| ||
Capital lease obligation |
|
1,368 |
|
1,558 |
| ||
Other liabilities |
|
10,664 |
|
9,531 |
| ||
Total liabilities |
|
737,991 |
|
649,865 |
| ||
Commitments and contingencies |
|
|
|
|
| ||
Stockholders equity |
|
|
|
|
| ||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares issued and outstanding at June 30, 2015 and June 30, 2014 |
|
|
|
|
| ||
Voting common stock, $1.00 par value, 25,000,000 shares authorized; 8,575,144 and 9,260,331 shares issued and outstanding at June 30, 2015 and June 30, 2014, respectively |
|
8,575 |
|
9,260 |
| ||
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized; 1,012,739 and 880,963 shares issued and outstanding at June 30, 2015 and June 30, 2014, respectively |
|
1,013 |
|
881 |
| ||
Additional paid-in capital |
|
85,506 |
|
90,914 |
| ||
Retained earnings |
|
19,033 |
|
12,294 |
| ||
Accumulated other comprehensive loss |
|
(1,288 |
) |
(1,283 |
) | ||
Total stockholders equity |
|
112,839 |
|
112,066 |
| ||
Total liabilities and stockholders equity |
|
$ |
850,830 |
|
$ |
761,931 |
|
NORTHEAST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except share and per share data)
|
|
Three Months Ended June 30, |
|
Year Ended June 30, |
| ||||||||
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| ||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
| ||||
Interest and fees on loans |
|
$ |
10,896 |
|
$ |
9,867 |
|
$ |
43,383 |
|
$ |
37,009 |
|
Interest on available-for-sale securities |
|
215 |
|
251 |
|
913 |
|
1,048 |
| ||||
Other interest and dividend income |
|
74 |
|
106 |
|
292 |
|
314 |
| ||||
Total interest and dividend income |
|
11,185 |
|
10,224 |
|
44,588 |
|
38,371 |
| ||||
Interest expense: |
|
|
|
|
|
|
|
|
| ||||
Deposits |
|
1,329 |
|
1,075 |
|
5,010 |
|
4,123 |
| ||||
Federal Home Loan Bank advances |
|
256 |
|
326 |
|
1,101 |
|
1,301 |
| ||||
Wholesale repurchase agreements |
|
72 |
|
72 |
|
288 |
|
357 |
| ||||
Short-term borrowings |
|
8 |
|
7 |
|
29 |
|
24 |
| ||||
Junior subordinated debentures issued to affiliated trusts |
|
152 |
|
240 |
|
718 |
|
765 |
| ||||
Obligation under capital lease agreements |
|
18 |
|
20 |
|
74 |
|
83 |
| ||||
Total interest expense |
|
1,835 |
|
1,740 |
|
7,220 |
|
6,653 |
| ||||
Net interest and dividend income before provision for loan losses |
|
9,350 |
|
8,484 |
|
37,368 |
|
31,718 |
| ||||
Provision for loan losses |
|
240 |
|
124 |
|
717 |
|
531 |
| ||||
Net interest and dividend income after provision for loan losses |
|
9,110 |
|
8,360 |
|
36,651 |
|
31,887 |
| ||||
Noninterest income: |
|
|
|
|
|
|
|
|
| ||||
Fees for other services to customers |
|
406 |
|
398 |
|
1,494 |
|
1,644 |
| ||||
Gain on sales of loans held for sale |
|
493 |
|
505 |
|
1,877 |
|
1,650 |
| ||||
Gain on sales of portfolio loans |
|
1,926 |
|
403 |
|
2,821 |
|
1,006 |
| ||||
Gain recognized on real estate owned and other repossessed collateral, net |
|
124 |
|
13 |
|
428 |
|
63 |
| ||||
Bank-owned life insurance income |
|
111 |
|
109 |
|
440 |
|
451 |
| ||||
Other noninterest income |
|
7 |
|
9 |
|
29 |
|
55 |
| ||||
Total noninterest income |
|
3,067 |
|
1,437 |
|
7,089 |
|
4,869 |
| ||||
Noninterest expense: |
|
|
|
|
|
|
|
|
| ||||
Salaries and employee benefits |
|
5,286 |
|
5,162 |
|
18,817 |
|
17,786 |
| ||||
Occupancy and equipment expense |
|
1,277 |
|
1,336 |
|
4,939 |
|
5,448 |
| ||||
Professional fees |
|
505 |
|
316 |
|
1,658 |
|
1,285 |
| ||||
Data processing fees |
|
325 |
|
374 |
|
1,355 |
|
1,209 |
| ||||
Marketing expense |
|
41 |
|
86 |
|
244 |
|
311 |
| ||||
Loan acquisition and collection expense |
|
362 |
|
336 |
|
1,458 |
|
1,539 |
| ||||
FDIC insurance premiums |
|
133 |
|
126 |
|
504 |
|
480 |
| ||||
Intangible asset amortization |
|
129 |
|
164 |
|
589 |
|
746 |
| ||||
Legal settlement recovery |
|
|
|
|
|
|
|
(250 |
) | ||||
Other noninterest expense |
|
769 |
|
895 |
|
3,040 |
|
3,223 |
| ||||
Total noninterest expense |
|
8,827 |
|
8,795 |
|
32,604 |
|
31,777 |
| ||||
Income from continuing operations before income tax expense |
|
3,350 |
|
1,002 |
|
11,136 |
|
4,279 |
| ||||
Income tax expense |
|
1,185 |
|
460 |
|
3,995 |
|
1,579 |
| ||||
Net income from continuing operations |
|
2,165 |
|
542 |
|
7,141 |
|
2,700 |
| ||||
Income from discontinued operations before tax (benefit) expense |
|
|
|
|
|
|
|
(12 |
) | ||||
Income tax benefit |
|
|
|
|
|
|
|
(4 |
) | ||||
Net loss from discontinued operations |
|
|
|
|
|
|
|
(8 |
) | ||||
Net income |
|
$ |
2,165 |
|
$ |
542 |
|
$ |
7,141 |
|
$ |
2,692 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
|
9,773,228 |
|
10,314,197 |
|
9,980,733 |
|
10,404,784 |
| ||||
Diluted |
|
9,773,228 |
|
10,314,197 |
|
9,980,733 |
|
10,404,784 |
| ||||
Earnings per common share: |
|
|
|
|
|
|
|
|
| ||||
Basic: |
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations |
|
$ |
0.22 |
|
$ |
0.05 |
|
$ |
0.72 |
|
$ |
0.26 |
|
Income from discontinued operations |
|
0.00 |
|
0.00 |
|
0.00 |
|
0.00 |
| ||||
Net Income |
|
$ |
0.22 |
|
$ |
0.05 |
|
$ |
0.72 |
|
$ |
0.26 |
|
Diluted: |
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations |
|
$ |
0.22 |
|
$ |
0.05 |
|
$ |
0.72 |
|
$ |
0.26 |
|
Income from discontinued operations |
|
0.00 |
|
0.00 |
|
0.00 |
|
0.00 |
| ||||
Net Income |
|
$ |
0.22 |
|
$ |
0.05 |
|
$ |
0.72 |
|
$ |
0.26 |
|
Cash dividends declared per common share |
|
$ |
0.01 |
|
$ |
0.01 |
|
$ |
0.04 |
|
$ |
0.28 |
|
NORTHEAST BANCORP AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
|
|
Three Months Ended June 30, |
| ||||||||||||||
|
|
2015 |
|
2014 |
| ||||||||||||
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
| ||||
|
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
| ||||
|
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Investment securities (1) |
|
$ |
103,988 |
|
$ |
215 |
|
0.83 |
% |
$ |
112,226 |
|
$ |
251 |
|
0.90 |
% |
Loans (2) (3) |
|
599,400 |
|
10,896 |
|
7.29 |
% |
515,957 |
|
9,867 |
|
7.67 |
% | ||||
Regulatory stock |
|
4,102 |
|
18 |
|
1.76 |
% |
5,316 |
|
55 |
|
4.15 |
% | ||||
Short-term investments (4) |
|
91,060 |
|
56 |
|
0.25 |
% |
83,194 |
|
51 |
|
0.25 |
% | ||||
Total interest-earning assets |
|
798,550 |
|
11,185 |
|
5.62 |
% |
716,693 |
|
10,224 |
|
5.72 |
% | ||||
Cash and due from banks |
|
2,553 |
|
|
|
|
|
2,606 |
|
|
|
|
| ||||
Other non-interest earning assets |
|
36,334 |
|
|
|
|
|
32,643 |
|
|
|
|
| ||||
Total assets |
|
$ |
837,437 |
|
|
|
|
|
$ |
751,942 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Liabilities & Stockholders Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NOW accounts |
|
$ |
64,533 |
|
$ |
41 |
|
0.25 |
% |
$ |
62,427 |
|
$ |
41 |
|
0.26 |
% |
Money market accounts |
|
166,690 |
|
336 |
|
0.81 |
% |
85,119 |
|
110 |
|
0.52 |
% | ||||
Savings accounts |
|
35,835 |
|
12 |
|
0.13 |
% |
35,080 |
|
11 |
|
0.13 |
% | ||||
Time deposits |
|
342,849 |
|
940 |
|
1.10 |
% |
340,214 |
|
913 |
|
1.08 |
% | ||||
Total interest-bearing deposits |
|
609,907 |
|
1,329 |
|
0.87 |
% |
522,840 |
|
1,075 |
|
0.82 |
% | ||||
Short-term borrowings |
|
1,754 |
|
8 |
|
1.83 |
% |
2,051 |
|
7 |
|
1.37 |
% | ||||
Borrowed funds |
|
40,259 |
|
346 |
|
3.45 |
% |
54,522 |
|
418 |
|
3.08 |
% | ||||
Junior subordinated debentures |
|
8,602 |
|
152 |
|
7.09 |
% |
8,416 |
|
240 |
|
11.44 |
% | ||||
Total interest-bearing liabilities |
|
660,522 |
|
1,835 |
|
1.11 |
% |
587,829 |
|
1,740 |
|
1.19 |
% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Non-interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits and escrow accounts |
|
56,754 |
|
|
|
|
|
51,562 |
|
|
|
|
| ||||
Other liabilities |
|
7,635 |
|
|
|
|
|
2,955 |
|
|
|
|
| ||||
Total liabilities |
|
724,911 |
|
|
|
|
|
642,347 |
|
|
|
|
| ||||
Stockholders equity |
|
112,526 |
|
|
|
|
|
109,596 |
|
|
|
|
| ||||
Total liabilities and stockholders equity |
|
$ |
837,437 |
|
|
|
|
|
$ |
751,942 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income |
|
|
|
$ |
9,350 |
|
|
|
|
|
$ |
8,484 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest rate spread |
|
|
|
|
|
4.51 |
% |
|
|
|
|
4.53 |
% | ||||
Net interest margin (5) |
|
|
|
|
|
4.70 |
% |
|
|
|
|
4.75 |
% |
(1) Interest income and yield are stated on a fully tax-equivalent basis using a 34% tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
NORTHEAST BANCORP AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
|
|
Year Ended June 30, |
| ||||||||||||||
|
|
2015 |
|
2014 |
| ||||||||||||
|
|
|
|
Interest |
|
Average |
|
|
|
Interest |
|
Average |
| ||||
|
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
| ||||
|
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Investment securities (1) |
|
$ |
108,204 |
|
$ |
913 |
|
0.84 |
% |
$ |
115,849 |
|
$ |
1,048 |
|
0.90 |
% |
Loans (2) (3) |
|
561,340 |
|
43,383 |
|
7.73 |
% |
495,113 |
|
37,009 |
|
7.47 |
% | ||||
Regulatory stock |
|
4,102 |
|
67 |
|
1.63 |
% |
5,620 |
|
123 |
|
2.19 |
% | ||||
Short-term investments (4) |
|
92,354 |
|
225 |
|
0.24 |
% |
78,838 |
|
191 |
|
0.24 |
% | ||||
Total interest-earning assets |
|
766,000 |
|
44,588 |
|
5.82 |
% |
695,420 |
|
38,371 |
|
5.52 |
% | ||||
Cash and due from banks |
|
2,704 |
|
|
|
|
|
2,876 |
|
|
|
|
| ||||
Other non-interest earning assets |
|
33,741 |
|
|
|
|
|
33,958 |
|
|
|
|
| ||||
Total assets |
|
$ |
802,445 |
|
|
|
|
|
$ |
732,254 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Liabilities & Stockholders Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
NOW accounts |
|
$ |
63,181 |
|
$ |
162 |
|
0.26 |
% |
$ |
61,146 |
|
$ |
162 |
|
0.26 |
% |
Money market accounts |
|
133,266 |
|
1,002 |
|
0.75 |
% |
85,333 |
|
447 |
|
0.52 |
% | ||||
Savings accounts |
|
34,495 |
|
46 |
|
0.13 |
% |
34,391 |
|
44 |
|
0.13 |
% | ||||
Time deposits |
|
340,046 |
|
3,800 |
|
1.12 |
% |
314,848 |
|
3,470 |
|
1.10 |
% | ||||
Total interest-bearing deposits |
|
570,988 |
|
5,010 |
|
0.88 |
% |
495,718 |
|
4,123 |
|
0.83 |
% | ||||
Short-term borrowings |
|
2,578 |
|
29 |
|
1.12 |
% |
2,230 |
|
24 |
|
1.08 |
% | ||||
Borrowed funds |
|
45,661 |
|
1,463 |
|
3.20 |
% |
58,468 |
|
1,741 |
|
2.98 |
% | ||||
Junior subordinated debentures |
|
8,531 |
|
718 |
|
8.42 |
% |
8,352 |
|
765 |
|
9.16 |
% | ||||
Total interest-bearing liabilities |
|
627,758 |
|
7,220 |
|
1.15 |
% |
564,768 |
|
6,653 |
|
1.18 |
% | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Non-interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand deposits and escrow accounts |
|
54,940 |
|
|
|
|
|
50,890 |
|
|
|
|
| ||||
Other liabilities |
|
7,370 |
|
|
|
|
|
3,962 |
|
|
|
|
| ||||
Total liabilities |
|
690,068 |
|
|
|
|
|
619,620 |
|
|
|
|
| ||||
Stockholders equity |
|
112,377 |
|
|
|
|
|
112,634 |
|
|
|
|
| ||||
Total liabilities and stockholders equity |
|
$ |
802,445 |
|
|
|
|
|
$ |
732,254 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest income |
|
|
|
$ |
37,368 |
|
|
|
|
|
$ |
31,718 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest rate spread |
|
|
|
|
|
4.67 |
% |
|
|
|
|
4.34 |
% | ||||
Net interest margin (5) |
|
|
|
|
|
4.88 |
% |
|
|
|
|
4.56 |
% |
(1) Interest income and yield are stated on a fully tax-equivalent basis using a 34% tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
NORTHEAST BANCORP AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS AND OTHER DATA
(Unaudited)
(Dollars in thousands, except share and per share data)
|
|
Three Months Ended: |
| |||||||||||||
|
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
|
June 30, 2014 |
| |||||
Net interest income |
|
$ |
9,350 |
|
$ |
9,120 |
|
$ |
9,426 |
|
$ |
9,471 |
|
$ |
8,484 |
|
Provision for loan losses |
|
240 |
|
44 |
|
113 |
|
320 |
|
124 |
| |||||
Noninterest income |
|
3,067 |
|
1,554 |
|
1,370 |
|
1,154 |
|
1,437 |
| |||||
Noninterest expense |
|
8,827 |
|
7,885 |
|
8,210 |
|
7,737 |
|
8,795 |
| |||||
Net income from continuing operations |
|
2,165 |
|
1,752 |
|
1,580 |
|
1,644 |
|
542 |
| |||||
Net income |
|
2,165 |
|
1,752 |
|
1,580 |
|
1,644 |
|
542 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
|
9,773,228 |
|
9,833,033 |
|
10,132,349 |
|
10,180,038 |
|
10,314,197 |
| |||||
Diluted |
|
9,773,228 |
|
9,833,033 |
|
10,132,349 |
|
10,180,038 |
|
10,314,197 |
| |||||
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
|
$ |
0.22 |
|
$ |
0.18 |
|
$ |
0.16 |
|
$ |
0.16 |
|
$ |
0.05 |
|
Diluted |
|
0.22 |
|
0.18 |
|
0.16 |
|
0.16 |
|
0.05 |
| |||||
Dividends per common share |
|
0.01 |
|
0.01 |
|
0.01 |
|
0.01 |
|
0.01 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Return on average assets |
|
1.04 |
% |
0.88 |
% |
0.78 |
% |
0.85 |
% |
0.29 |
% | |||||
Return on average equity |
|
7.72 |
% |
6.38 |
% |
5.54 |
% |
5.80 |
% |
1.98 |
% | |||||
Net interest rate spread (1) |
|
4.51 |
% |
4.59 |
% |
4.65 |
% |
4.95 |
% |
4.53 |
% | |||||
Net interest margin (2) |
|
4.70 |
% |
4.79 |
% |
4.87 |
% |
5.18 |
% |
4.75 |
% | |||||
Efficiency ratio (3) |
|
71.09 |
% |
73.87 |
% |
76.05 |
% |
72.82 |
% |
88.65 |
% | |||||
Noninterest expense to average total assets |
|
4.22 |
% |
3.96 |
% |
4.05 |
% |
4.02 |
% |
4.69 |
% | |||||
Average interest-earning assets to average interest-bearing liabilities |
|
120.90 |
% |
121.89 |
% |
122.32 |
% |
123.09 |
% |
121.92 |
% |
|
|
As of: |
| |||||||||||||
|
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
|
June 30, 2014 |
| |||||
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
|
| |||||
Originated portfolio: |
|
|
|
|
|
|
|
|
|
|
| |||||
Residential real estate |
|
$ |
3,021 |
|
$ |
3,163 |
|
$ |
2,706 |
|
$ |
2,105 |
|
$ |
1,303 |
|
Commercial real estate |
|
994 |
|
1,201 |
|
1,166 |
|
721 |
|
1,162 |
| |||||
Home equity |
|
11 |
|
11 |
|
11 |
|
28 |
|
160 |
| |||||
Commercial business |
|
2 |
|
|
|
|
|
|
|
5 |
| |||||
Consumer |
|
190 |
|
225 |
|
237 |
|
145 |
|
124 |
| |||||
Total originated portfolio |
|
4,218 |
|
4,600 |
|
4,120 |
|
2,999 |
|
2,756 |
| |||||
Total purchased portfolio |
|
6,532 |
|
5,850 |
|
8,129 |
|
4,287 |
|
4,114 |
| |||||
Total nonperforming loans |
|
10,750 |
|
10,450 |
|
12,249 |
|
7,286 |
|
6,870 |
| |||||
Real estate owned and other possessed collateral, net |
|
1,651 |
|
3,694 |
|
2,058 |
|
2,115 |
|
1,991 |
| |||||
Total nonperforming assets |
|
$ |
12,401 |
|
$ |
14,144 |
|
$ |
14,307 |
|
$ |
9,401 |
|
$ |
8,861 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Past due loans to total loans |
|
1.08 |
% |
2.57 |
% |
2.64 |
% |
1.40 |
% |
1.14 |
% | |||||
Nonperforming loans to total loans |
|
1.76 |
% |
1.80 |
% |
2.13 |
% |
1.34 |
% |
1.33 |
% | |||||
Nonperforming assets to total assets |
|
1.46 |
% |
1.70 |
% |
1.77 |
% |
1.20 |
% |
1.16 |
% | |||||
Allowance for loan losses to total loans |
|
0.31 |
% |
0.30 |
% |
0.29 |
% |
0.28 |
% |
0.26 |
% | |||||
Allowance for loan losses to nonperforming loans |
|
17.92 |
% |
16.66 |
% |
13.58 |
% |
21.12 |
% |
19.90 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Commercial real estate loans to risk-based capital (4) |
|
188.49 |
% |
173.17 |
% |
190.05 |
% |
167.57 |
% |
176.98 |
% | |||||
Net loans to core deposits (5) |
|
91.85 |
% |
89.04 |
% |
91.79 |
% |
92.80 |
% |
92.13 |
% | |||||
Purchased loans to total loans, including held for sale |
|
32.61 |
% |
33.53 |
% |
37.97 |
% |
37.38 |
% |
38.51 |
% | |||||
Equity to total assets |
|
13.26 |
% |
13.51 |
% |
13.69 |
% |
14.48 |
% |
14.71 |
% | |||||
Common equity tier 1 capital ratio |
|
19.75 |
% |
20.90 |
% |
|
|
|
|
|
| |||||
Total capital ratio (6) |
|
20.07 |
% |
21.21 |
% |
21.44 |
% |
22.97 |
% |
23.74 |
% | |||||
Tier 1 leverage capital ratio |
|
14.42 |
% |
14.96 |
% |
14.81 |
% |
15.89 |
% |
15.90 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total stockholders equity |
|
$ |
112,839 |
|
$ |
112,487 |
|
$ |
110,923 |
|
$ |
113,242 |
|
$ |
112,066 |
|
Less: Preferred stock |
|
|
|
|
|
|
|
|
|
|
| |||||
Common stockholders equity |
|
112,839 |
|
112,487 |
|
110,923 |
|
113,242 |
|
112,066 |
| |||||
Less: Intangible assets |
|
(2,209 |
) |
(2,338 |
) |
(2,466 |
) |
(2,632 |
) |
(2,798 |
) | |||||
Tangible common stockholders equity (non-GAAP) |
|
$ |
110,630 |
|
$ |
110,149 |
|
$ |
108,457 |
|
$ |
110,610 |
|
$ |
109,268 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Common shares outstanding |
|
9,587,883 |
|
9,819,609 |
|
9,846,387 |
|
10,248,034 |
|
10,141,294 |
| |||||
Book value per common share |
|
$ |
11.77 |
|
$ |
11.46 |
|
$ |
11.27 |
|
$ |
11.05 |
|
$ |
11.05 |
|
Tangible book value per share (non-GAAP) (7) |
|
11.54 |
|
11.22 |
|
11.01 |
|
10.79 |
|
10.77 |
|
|
|
Reconciliation of Net Income (GAAP) to Net Operating Earnings (non-GAAP) |
| |||||||||||||
|
|
Three Months Ended: |
| |||||||||||||
|
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
|
June 30, 2014 |
| |||||
Net income (GAAP) |
|
$ |
2,165 |
|
$ |
1,752 |
|
$ |
1,580 |
|
$ |
1,644 |
|
$ |
542 |
|
Items excluded from operating earnings, net of tax: |
|
|
|
|
|
|
|
|
|
|
| |||||
Discontinued operations |
|
|
|
|
|
|
|
|
|
|
| |||||
Severance expense |
|
|
|
8 |
|
36 |
|
52 |
|
407 |
| |||||
Software conversion expense |
|
|
|
|
|
|
|
|
|
148 |
| |||||
Legal settlement expense and related professional fees |
|
|
|
|
|
|
|
|
|
|
| |||||
Total after-tax items |
|
|
|
8 |
|
36 |
|
52 |
|
555 |
| |||||
Net operating earnings (non-GAAP) |
|
$ |
2,165 |
|
$ |
1,760 |
|
$ |
1,616 |
|
$ |
1,696 |
|
$ |
1,097 |
|
Net operating earnings per share - basic (non-GAAP) |
|
$ |
0.22 |
|
$ |
0.18 |
|
$ |
0.16 |
|
$ |
0.17 |
|
$ |
0.11 |
|
(1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.
(2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period.
(3) The efficiency ratio represents non-interest expense divided by the sum of net interest income (before the loan loss provision) plus non-interest income.
(4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.
(5) Core deposits include all non-maturity deposits and maturity deposits less than $250 thousand. Loans include loans held-for-sale.
(6) The Companys adoption of Basel III went into effect as of March 31, 2015. The previous period ratios are the Total Risk-Based Capital Ratio.
(7) Tangible book value per share represents total stockholders equity less the sum of preferred stock and intangible assets divided by common shares outstanding.