Form 8-K NORTHEAST BANCORP /ME/ For: Oct 24
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM�8-K
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CURRENT REPORT
Pursuant to Section�13 or 15(d)�of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported):�October�24, 2014
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Commission File No.�1-14588
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NORTHEAST BANCORP
(Exact name of registrant as specified in its charter)
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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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04240 |
(Address of principal executive offices) |
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(Zip Code) |
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Registrant�s telephone number, including area code: (207) 786-3245
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Former name or former address, if changed since last Report: N/A
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Check the appropriate box below if the Form�8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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o��Written communications pursuant to Rule�425 under the Securities Act
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o��Soliciting material pursuant to Rule�14a-12 under the Exchange Act
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o��Pre-commencement communications pursuant to Rule�14d-2(b)�under the Exchange Act
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o��Pre-commencement to communications pursuant to Rule�13e-4(c)�under the Exchange Act
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Item 2.02������������������������������������������ Results of Operations and Financial Condition
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On October�24, 2014, Northeast Bancorp, a Maine corporation (the �Company�), issued a press release announcing its earnings for the first 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.
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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.
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Item 9.01������������������������������������������ Financial Statements and Exhibits
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(c)��������������������������������������������������������������������������������� Exhibits
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Exhibit�No. |
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Description |
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99.1 |
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Press Release dated October�24, 2014 |
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SIGNATURE
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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/ Claire S. Bean |
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Name: |
Claire S. Bean |
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Title: |
Chief Financial Officer |
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Date: October�24, 2014
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Exhibit�99.1
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FOR IMMEDIATE RELEASE � |
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For More Information: Claire S. Bean, CFO�& COO Northeast Bank, 500 Canal Street, Lewiston, ME 04240 207.786.3245 ext. 3202 www.northeastbank.com |
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Northeast Bancorp Reports First Quarter Results, Declares Dividend
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Lewiston, ME (October�24, 2014) � 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 available to common shareholders of $1.6 million, or $0.16 per diluted common share, for the quarter ended September�30, 2014, compared to net income available to common shareholders of $320 thousand, or $0.03 per diluted common share, for the quarter ended September�30, 2013.
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The Board of Directors has declared a cash dividend of $0.01 per share, payable on November�20, 2014 to shareholders of record as of November�6, 2014.
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�We are very pleased with the results for this quarter,� said Richard Wayne, President and Chief Executive Officer.� �We have continued to leverage our capital and increase our core earnings through a combination of higher net interest income and leveraging our existing operating platform and personnel.� We achieved a net interest margin of 5.2% on the strength of $2.0 million of transactional income on purchased loans.�
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At September�30, 2014, total assets were $782.3 million, an increase of $20.4 million, or 2.7%, compared to June�30, 2014. The principal components of the change in the Company�s balance sheet are as follows:
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1.������������� The loan portfolio � excluding loans held for sale � grew by $25.4 million, or 4.9%, compared to June�30, 2014, principally due to net growth of $33.4 million in commercial loans purchased or originated by the Bank�s Loan Acquisition and Servicing Group (�LASG�), offset by an $8.0 million decrease in the Bank�s Community Banking Division loan portfolio.
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New loans generated by the LASG aggregated $53.5 million for the quarter, consisting of $13.2 million in purchases, at an average price of 81.7%, and $40.3 million of originations, the latter total including $36.0 million of loans to broker dealers secured by marketable securities. Residential and consumer loan production sold in the secondary market totaled $30.8 million for the quarter.
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As has been discussed in the Company�s prior SEC filings, the Company made certain commitments to the Board of Governors of the Federal Reserve System in connection with the merger of FHB Formation LLC with and into the Company in December�2010.� The Company�s loan purchase and commercial real estate loan availability under these conditions follow.
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Basis�for |
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Condition |
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Availability�at�September�30, |
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(Dollars�in�millions) |
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Total Loans |
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Purchased loans may not exceed 40% of total loans |
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$ |
24.0 |
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Regulatory Capital |
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Commercial real estate loans may not exceed 300% of total risk-based capital |
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$ |
162.5 |
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An overview of the LASG portfolio follows.
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Three�Months�Ended�September�30, |
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2014 |
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2013 |
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Purchased |
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Originated |
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Total�LASG |
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Purchased |
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Originated |
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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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� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
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Unpaid principal balance |
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$ |
16,117 |
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$ |
40,358 |
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$ |
56,475 |
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$ |
18,331 |
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$ |
26,426 |
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$ |
44,757 |
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Net investment basis |
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13,167 |
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40,353 |
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53,520 |
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16,348 |
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26,426 |
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42,774 |
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� |
� |
� |
� |
� |
� |
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� |
� |
� |
� |
� |
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Total loans as of period end: |
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� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||||
Unpaid principal balance |
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$ |
244,910 |
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$ |
108,534 |
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$ |
353,444 |
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$ |
214,159 |
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$ |
63,588 |
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$ |
277,747 |
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Net investment basis |
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205,928 |
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108,497 |
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314,425 |
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177,412 |
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63,618 |
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241,030 |
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� |
� |
� |
� |
� |
� |
� |
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� |
� |
� |
� |
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Loan returns during the period: |
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� |
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� |
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Yield |
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12.76 |
% |
6.45 |
% |
10.93 |
% |
10.16 |
% |
5.71 |
% |
9.21 |
% | ||||||
Total Return (1) |
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12.75 |
% |
6.88 |
% |
11.05 |
% |
10.62 |
% |
5.71 |
% |
9.57 |
% |
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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.
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2.������������� Deposits increased by $19.5 million, or 3.4%, for the quarter, attributable primarily to growth in non-maturity accounts, which increased by $20.2 million, or 8.7%, for the three months ended September�30, 2014. This growth was centered mainly in money market accounts attracted through the Bank�s online-only ableBanking division.
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3.������������� Stockholders� equity increased by $1.2 million from June�30, 2014, due principally to earnings of $1.6 million, offset in part by a $368 thousand decrease in AOCI and $134 thousand in share repurchases (representing 14,400 shares).
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Net income from continuing operations increased by $1.3 million to $1.6 million for the quarter ended September�30, 2014, compared to the quarter ended September�30, 2013. Earnings for the current quarter included the following items of significance:
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1.������������� Net interest income before provision for loan losses increased by $2.4 million, or 33.3%, for the quarter ended September�30, 2014 compared to the quarter ended September�30, 2013, due primarily to higher transactional interest income from purchased loan payoffs and the positive effect of balance sheet growth. Average earning assets increased by $60.0 million, and average loans by $63.3 million, when compared to the first quarter of FY 2014.
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The various components of transactional income are set forth in the table below entitled �Total Return on Purchased Loans.�� When compared to the quarter ended September�30, 2013, transactional interest income increased by $1.3 million, boosting the net interest margin, which increased to 5.18% from 4.24%.� The following table summarizes interest income and related yields recognized on the loan portfolios.
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Interest�Income�and�Yield�on�Loans |
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Three�Months�Ended�September�30, |
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2014 |
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2013 |
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Average |
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Interest |
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Average |
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Interest |
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Balance |
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Income |
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Yield |
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Balance |
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Income |
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Yield |
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(Dollars�in�thousands) |
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Community Banking Division |
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$ |
241,165 |
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$ |
3,062 |
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5.04 |
% |
$ |
242,700 |
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$ |
3,342 |
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5.46 |
% |
LASG: |
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� |
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� |
� |
� |
� |
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� |
� |
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Originated |
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82,335 |
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1,338 |
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6.45 |
% |
47,208 |
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680 |
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5.71 |
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Purchased |
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202,856 |
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6,522 |
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12.76 |
% |
173,167 |
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4,435 |
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10.16 |
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Total LASG |
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285,191 |
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7,860 |
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10.93 |
% |
220,375 |
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5,115 |
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9.21 |
% | ||||
Total |
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$ |
526,356 |
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$ |
10,922 |
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8.23 |
% |
$ |
463,075 |
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$ |
8,457 |
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7.25 |
% |
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The yield on purchased loans in each period shown was increased by unscheduled loan payoffs, which resulted in immediate recognition of the prepaid loans� discount in interest income. The following table details the �total return� on purchased loans, which includes total transactional income of $2.0 million for the
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quarter ended September�30, 2014, an increase of $1.1 million from the quarter ended September�30, 2013.� The following table summarizes the total return recognized on the purchased loan portfolio:
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Total�Return�on�Purchased�Loans |
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Three�Months�Ended�September�30, |
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2014 |
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2013 |
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Income |
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Return�(1) |
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Income |
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Return�(1) |
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(Dollars�in�thousands) |
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Regularly scheduled interest and accretion |
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$ |
4,497 |
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8.80 |
% |
$ |
3,739 |
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8.54 |
% |
Transactional income: |
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� |
� |
� |
� |
� |
� |
� |
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(Loss) gain on loan sales |
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(4 |
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-0.01 |
% |
216 |
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0.49 |
% | ||
Gain on sale of real estate owned |
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� |
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0.00 |
% |
� |
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0.00 |
% | ||
Other noninterest income |
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� |
� |
0.00 |
% |
� |
� |
0.00 |
% | ||
Accelerated accretion and loan fees |
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2,025 |
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3.96 |
% |
696 |
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1.59 |
% | ||
Total transactional income |
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2,021 |
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3.95 |
% |
912 |
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2.08 |
% | ||
Total |
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$ |
6,518 |
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12.75 |
% |
$ |
4,651 |
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10.62 |
% |
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2.������������� Quarterly noninterest income of $1.2 million was $134 thousand lower than the quarter ended September�30, 2013, primarily due to a $136 thousand reduction in gains realized on sales of purchased loans.
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3.������������� Noninterest expense decreased by $115 thousand for the quarter, measured against the quarter ended September�30, 2013. Comparing the two quarters, variances of significance are:
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������������������ Salaries and employee benefits decreased by $79 thousand, principally due to reductions in severance and overall employee head count, offset in part by higher incentive compensation expense;
������������������ Occupancy and equipment costs declined by $125 thousand, the result of a reduction in software maintenance and depreciation expense following the conversion of the Bank�s core systems platform to an outsourced model in May�2014. The decrease in equipment expense was offset in part by higher conversion-related data processing fees, which increased by $88 thousand;
������������������ Professional fees, which tend to fluctuate from quarter to quarter, were lower by $68 thousand;
������������������ Loan expense decreased by $199 thousand, mainly due to lower loan acquisition and work-out expenses as well as a $78 thousand recovery of work-out expenses previously incurred;
������������������ A $250 thousand insurance recovery was recognized in the quarter ended September�30, 2013.
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4.������������� The Company�s effective tax rate for the quarter ended September�30, 2014 was 36.0%, compared to 33.5% for the quarter ended September�30, 2013. The increase in the quarter was primarily the result of a change in estimated state tax apportionment.
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At September�30, 2014, nonperforming assets totaled $9.4 million, or 1.2% of total assets, compared to $9.3 million, or 1.2% of total assets at June�30, 2014 and $8.9 million, or 1.2% of total assets, at September�30, 2013.
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At September�30, 2014, the Company�s Tier 1 leverage ratio was 15.9%, unchanged from June�30, 2014, and a decrease from 17.2% at September�30, 2013. The total risk-based capital ratio was 23.0% at September�30, 2014, a decrease from 23.7% at June�30, 2014 and 25.6% at September�30, 2013.
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Investor Call Information
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Richard Wayne, Chief Executive Officer of Northeast Bancorp, and Claire Bean, Chief Financial Officer of Northeast Bancorp, will host a conference call to discuss first quarter earnings and business outlook at 10:00�a.m. Eastern Time on Monday, October�27, 2014. Investors can access the call by dialing 877.878.2762 and entering the following passcode: 24713113. The call will be available via live webcast, which can be viewed by accessing the Company�s 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.
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About Northeast Bancorp
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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 Bank�s Loan Acquisition and Servicing Group purchases and originates commercial loans for the Bank�s portfolio. 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.
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Non-GAAP Financial Measure
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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. Northeast�s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company�s 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.
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Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section�27A of the Securities Act of 1933, as amended, and Section�21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Northeast believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company�s control. The Company�s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; competitive pressures from other financial institutions; the effects of continuing weakness in general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers� ability to service and repay loans; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of loan loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; increasing government regulation; the risk that the Company may not be successful in the implementation of its business strategy; the risk of compromises or breaches to our security systems; the risk that intangibles recorded in the Company�s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Company�s Annual Report on Form�10-K and updated by the Company�s Quarterly Reports on Form�10-Q and other filings submitted to the Securities and Exchange Commission. These statements speak only as of the date of this release and the Company does not
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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.
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NBN-F
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NORTHEAST BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
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� |
� |
September�30,�2014 |
� |
June�30,�2014 |
� | ||
Assets |
� |
� |
� |
� |
� | ||
Cash and due from banks |
� |
$ |
2,313 |
� |
$ |
3,372 |
� |
Short-term investments |
� |
81,217 |
� |
78,887 |
� | ||
Total cash and cash equivalents |
� |
83,530 |
� |
82,259 |
� | ||
Available-for-sale securities, at fair value |
� |
110,347 |
� |
113,881 |
� | ||
Loans held for sale |
� |
9,069 |
� |
11,945 |
� | ||
Loans |
� |
� |
� |
� |
� | ||
Commercial real estate |
� |
311,632 |
� |
316,098 |
� | ||
Residential real estate |
� |
143,960 |
� |
148,634 |
� | ||
Commercial and industrial |
� |
76,940 |
� |
41,800 |
� | ||
Consumer |
� |
9,267 |
� |
9,884 |
� | ||
Total loans |
� |
541,799 |
� |
516,416 |
� | ||
Less: Allowance for loan losses |
� |
1,539 |
� |
1,367 |
� | ||
Loans, net |
� |
540,260 |
� |
515,049 |
� | ||
Premises and equipment, net |
� |
8,780 |
� |
9,135 |
� | ||
Real estate owned and other possessed collateral, net |
� |
2,115 |
� |
1,991 |
� | ||
Regulatory stock, at cost |
� |
4,102 |
� |
4,102 |
� | ||
Intangible assets, net |
� |
2,632 |
� |
2,798 |
� | ||
Bank owned life insurance |
� |
14,945 |
� |
14,836 |
� | ||
Other assets |
� |
6,511 |
� |
5,935 |
� | ||
Total assets |
� |
$ |
782,291 |
� |
$ |
761,931 |
� |
Liabilities and Stockholders� Equity |
� |
� |
� |
� |
� | ||
Deposits |
� |
� |
� |
� |
� | ||
Demand |
� |
$ |
52,698 |
� |
$ |
50,140 |
� |
Savings and interest checking |
� |
96,814 |
� |
98,340 |
� | ||
Money market |
� |
103,054 |
� |
83,901 |
� | ||
Time |
� |
341,229 |
� |
341,948 |
� | ||
Total deposits |
� |
593,795 |
� |
574,329 |
� | ||
Federal Home Loan Bank advances |
� |
42,773 |
� |
42,824 |
� | ||
Wholesale repurchase agreements |
� |
10,158 |
� |
10,199 |
� | ||
Short-term borrowings |
� |
3,804 |
� |
2,984 |
� | ||
Junior subordinated debentures issued to affiliated trusts |
� |
8,485 |
� |
8,440 |
� | ||
Capital lease obligation |
� |
1,511 |
� |
1,558 |
� | ||
Other liabilities |
� |
8,523 |
� |
9,531 |
� | ||
Total liabilities |
� |
669,049 |
� |
649,865 |
� | ||
Commitments and contingencies |
� |
� |
� |
� |
� | ||
Stockholders� equity |
� |
� |
� |
� |
� | ||
Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares issued and outstanding at September�30, 2014 and June�30, 2014 |
� |
� |
� |
� |
� | ||
Voting common stock, $1.00 par value, 25,000,000 shares authorized; 9,367,071 and 9,260,331 shares issued and outstanding at September�30, 2014 and June�30, 2014, respectively |
� |
9,367 |
� |
9,260 |
� | ||
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized; 880,963 shares issued and outstanding at September�30, 2014 and June�30, 2014 |
� |
881 |
� |
881 |
� | ||
Additional paid-in capital |
� |
90,809 |
� |
90,914 |
� | ||
Retained earnings |
� |
13,836 |
� |
12,294 |
� | ||
Accumulated other comprehensive loss |
� |
(1,651 |
) |
(1,283 |
) | ||
Total stockholders� equity |
� |
113,242 |
� |
112,066 |
� | ||
Total liabilities and stockholders� equity |
� |
$ |
782,291 |
� |
$ |
761,931 |
� |
�
�
NORTHEAST BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except share and per share data)
�
� |
� |
Three�Months�Ended�September�30, |
� | ||||
� |
� |
2014 |
� |
2013 |
� | ||
Interest and dividend income: |
� |
� |
� |
� |
� | ||
Interest on loans |
� |
$ |
10,922 |
� |
$ |
8,457 |
� |
Interest on available-for-sale securities |
� |
244 |
� |
282 |
� | ||
Other interest and dividend income |
� |
66 |
� |
52 |
� | ||
Total interest and dividend income |
� |
11,232 |
� |
8,791 |
� | ||
Interest expense: |
� |
� |
� |
� |
� | ||
Deposits |
� |
1,130 |
� |
1,047 |
� | ||
Federal Home Loan Bank advances |
� |
323 |
� |
323 |
� | ||
Wholesale repurchase agreements |
� |
73 |
� |
95 |
� | ||
Short-term borrowings |
� |
9 |
� |
5 |
� | ||
Junior subordinated debentures issued to affiliated trusts |
� |
206 |
� |
192 |
� | ||
Obligation under capital lease agreements |
� |
20 |
� |
22 |
� | ||
Total interest expense |
� |
1,761 |
� |
1,684 |
� | ||
Net interest and dividend income before provision for loan losses |
� |
9,471 |
� |
7,107 |
� | ||
Provision for loan losses |
� |
320 |
� |
77 |
� | ||
Net interest and dividend income after provision for loan losses |
� |
9,151 |
� |
7,030 |
� | ||
Noninterest income: |
� |
� |
� |
� |
� | ||
Fees for other services to customers |
� |
394 |
� |
439 |
� | ||
Gain on sales of loans held for sale |
� |
584 |
� |
539 |
� | ||
Gain on sales of portfolio loans |
� |
80 |
� |
216 |
� | ||
Gain recognized on real estate owned and other repossessed collateral, net |
� |
(23 |
) |
(38 |
) | ||
Bank-owned life insurance income |
� |
109 |
� |
118 |
� | ||
Other noninterest income |
� |
10 |
� |
14 |
� | ||
Total noninterest income |
� |
1,154 |
� |
1,288 |
� | ||
Noninterest expense: |
� |
� |
� |
� |
� | ||
Salaries and employee benefits |
� |
4,533 |
� |
4,612 |
� | ||
Occupancy and equipment expense |
� |
1,202 |
� |
1,327 |
� | ||
Professional fees |
� |
308 |
� |
376 |
� | ||
Data processing fees |
� |
345 |
� |
277 |
� | ||
Marketing expense |
� |
69 |
� |
36 |
� | ||
Loan acquisition and collection expense |
� |
274 |
� |
473 |
� | ||
FDIC insurance premiums |
� |
124 |
� |
110 |
� | ||
Intangible asset amortization |
� |
166 |
� |
210 |
� | ||
Legal settlement expense (recovery) |
� |
� |
� |
(250 |
) | ||
Other noninterest expense |
� |
716 |
� |
681 |
� | ||
Total noninterest expense |
� |
7,737 |
� |
7,852 |
� | ||
Income from continuing operations before income tax expense |
� |
2,568 |
� |
466 |
� | ||
Income tax expense |
� |
924 |
� |
156 |
� | ||
Net Income from continuing operations |
� |
1,644 |
� |
310 |
� | ||
Income from discontinued operations before income tax expense |
� |
� |
� |
15 |
� | ||
Income tax expense |
� |
� |
� |
5 |
� | ||
Net income from discontinued operations |
� |
� |
� |
10 |
� | ||
Net income |
� |
$ |
1,644 |
� |
$ |
320 |
� |
Net income available to common stockholders |
� |
$ |
1,644 |
� |
$ |
320 |
� |
Weighted-average shares outstanding: |
� |
� |
� |
� |
� | ||
Basic |
� |
10,180,038 |
� |
10,440,513 |
� | ||
Diluted |
� |
10,180,038 |
� |
10,440,513 |
� | ||
Earnings per common share: |
� |
� |
� |
� |
� | ||
Basic: |
� |
� |
� |
� |
� | ||
Income from continuing operations |
� |
$ |
0.16 |
� |
$ |
0.03 |
� |
Income from discontinued operations |
� |
0.00 |
� |
0.00 |
� | ||
Net Income |
� |
$ |
0.16 |
� |
$ |
0.03 |
� |
Diluted: |
� |
� |
� |
� |
� | ||
Income from continuing operations |
� |
$ |
0.16 |
� |
$ |
0.03 |
� |
Income from discontinued operations |
� |
0.00 |
� |
0.00 |
� | ||
Net Income |
� |
$ |
0.16 |
� |
$ |
0.03 |
� |
Cash dividends declared per common share |
� |
$ |
0.01 |
� |
$ |
0.09 |
� |
�
�
NORTHEAST BANCORP AND SUBSIDIARY
CONSOLIDATED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
�
� |
� |
Three�Months�Ended�September�30, |
� | ||||||||||||||
� |
� |
2014 |
� |
2013 |
� | ||||||||||||
� |
� |
� |
� |
Interest |
� |
Average |
� |
� |
� |
Interest |
� |
Average |
� | ||||
� |
� |
Average |
� |
Income/ |
� |
Yield/ |
� |
Average |
� |
Income/ |
� |
Yield/ |
� | ||||
� |
� |
Balance |
� |
Expense |
� |
Rate |
� |
Balance |
� |
Expense |
� |
Rate |
� | ||||
� |
� |
(Dollars�in�thousands) |
� | ||||||||||||||
Assets: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||
Interest-earning assets: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||
Investment securities |
� |
$ |
112,250 |
� |
$ |
244 |
� |
0.86 |
% |
$ |
119,298 |
� |
$ |
282 |
� |
0.94 |
% |
Loans (1)�(2) |
� |
526,356 |
� |
10,922 |
� |
8.23 |
% |
463,075 |
� |
8,457 |
� |
7.25 |
% | ||||
Regulatory stock |
� |
4,102 |
� |
15 |
� |
1.45 |
% |
5,721 |
� |
4 |
� |
0.28 |
% | ||||
Short-term investments (3) |
� |
82,762 |
� |
51 |
� |
0.24 |
% |
77,408 |
� |
48 |
� |
0.25 |
% | ||||
Total interest-earning assets |
� |
725,470 |
� |
11,232 |
� |
6.14 |
% |
665,502 |
� |
8,791 |
� |
5.24 |
% | ||||
Cash and due from banks |
� |
2,712 |
� |
� |
� |
� |
� |
3,037 |
� |
� |
� |
� |
� | ||||
Other non-interest earning assets |
� |
34,736 |
� |
� |
� |
� |
� |
34,012 |
� |
� |
� |
� |
� | ||||
Total assets |
� |
$ |
762,918 |
� |
� |
� |
� |
� |
$ |
702,551 |
� |
� |
� |
� |
� | ||
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||
Liabilities�& Stockholders� Equity: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||
Interest-bearing liabilities: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||
NOW accounts |
� |
$ |
63,608 |
� |
$ |
41 |
� |
0.26 |
% |
$ |
59,124 |
� |
$ |
40 |
� |
0.27 |
% |
Money market accounts |
� |
86,294 |
� |
110 |
� |
0.51 |
% |
85,688 |
� |
112 |
� |
0.52 |
% | ||||
Savings accounts |
� |
34,361 |
� |
11 |
� |
0.13 |
% |
33,926 |
� |
12 |
� |
0.14 |
% | ||||
Time deposits |
� |
340,368 |
� |
968 |
� |
1.13 |
% |
284,390 |
� |
883 |
� |
1.23 |
% | ||||
Total interest-bearing deposits |
� |
524,631 |
� |
1,130 |
� |
0.85 |
% |
463,128 |
� |
1,047 |
� |
0.90 |
% | ||||
Short-term borrowings |
� |
3,320 |
� |
9 |
� |
1.08 |
% |
2,278 |
� |
5 |
� |
0.87 |
% | ||||
Borrowed funds |
� |
52,979 |
� |
416 |
� |
3.12 |
% |
59,986 |
� |
440 |
� |
2.91 |
% | ||||
Junior subordinated debentures |
� |
8,461 |
� |
206 |
� |
9.66 |
% |
8,288 |
� |
192 |
� |
9.19 |
% | ||||
Total interest-bearing liabilities |
� |
589,391 |
� |
1,761 |
� |
1.19 |
% |
533,680 |
� |
1,684 |
� |
1.25 |
% | ||||
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||
Non-interest bearing liabilities: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||
Demand deposits and escrow accounts |
� |
53,245 |
� |
� |
� |
� |
� |
50,391 |
� |
� |
� |
� |
� | ||||
Other liabilities |
� |
7,891 |
� |
� |
� |
� |
� |
5,561 |
� |
� |
� |
� |
� | ||||
Total liabilities |
� |
650,527 |
� |
� |
� |
� |
� |
589,632 |
� |
� |
� |
� |
� | ||||
Stockholders� equity |
� |
112,391 |
� |
� |
� |
� |
� |
112,919 |
� |
� |
� |
� |
� | ||||
Total liabilities and stockholders� equity |
� |
$ |
762,918 |
� |
� |
� |
� |
� |
$ |
702,551 |
� |
� |
� |
� |
� | ||
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||
Net interest income |
� |
� |
� |
$ |
9,471 |
� |
� |
� |
� |
� |
$ |
7,107 |
� |
� |
� | ||
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||
Interest rate spread |
� |
� |
� |
� |
� |
4.95 |
% |
� |
� |
� |
� |
3.99 |
% | ||||
Net interest margin (4) |
� |
� |
� |
� |
� |
5.18 |
% |
� |
� |
� |
� |
4.24 |
% |
�
(1)�������� Includes loans held for sale.
(2)�������� Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(3)�������� Short term investments include FHLB overnight deposits and other interest-bearing deposits.
(4)�������� Net interest margin is calculated as net interest income divided by total interest-earning assets.
�
�
(Dollars in thousands, except share and per share data)
�
� |
� |
Three�Months�Ended: |
� | ||||||||||||||||
� |
� |
September�30,�2014 |
� |
June�30,�2014 |
� |
March�31,�2014 |
� |
December�31,�2013 |
� |
September�30,�2013 |
� |
June�30,�2013 |
� | ||||||
Net interest income |
� |
$ |
9,471 |
� |
$ |
8,484 |
� |
$ |
7,112 |
� |
$ |
9,017 |
� |
$ |
7,107 |
� |
$ |
8,539 |
� |
Provision for loan losses |
� |
320 |
� |
124 |
� |
180 |
� |
151 |
� |
77 |
� |
301 |
� | ||||||
Noninterest income |
� |
1,154 |
� |
1,437 |
� |
1,308 |
� |
835 |
� |
1,288 |
� |
1,443 |
� | ||||||
Noninterest expense |
� |
7,737 |
� |
8,795 |
� |
7,516 |
� |
7,614 |
� |
7,852 |
� |
9,467 |
� | ||||||
Net income from continuing operations |
� |
1,644 |
� |
542 |
� |
437 |
� |
1,411 |
� |
310 |
� |
247 |
� | ||||||
Net income |
� |
1,644 |
� |
542 |
� |
437 |
� |
1,393 |
� |
320 |
� |
205 |
� | ||||||
Weighted average common shares outstanding: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||||
Basic |
� |
10,180,038 |
� |
10,314,197 |
� |
10,432,494 |
� |
10,432,833 |
� |
10,440,513 |
� |
10,446,643 |
� | ||||||
Diluted |
� |
10,180,038 |
� |
10,314,197 |
� |
10,432,494 |
� |
10,432,833 |
� |
10,440,513 |
� |
10,446,643 |
� | ||||||
Earnings per common share: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||||
Basic |
� |
$ |
0.16 |
� |
$ |
0.05 |
� |
$ |
0.04 |
� |
$ |
0.13 |
� |
$ |
0.03 |
� |
$ |
0.02 |
� |
Diluted |
� |
$ |
0.16 |
� |
$ |
0.05 |
� |
$ |
0.04 |
� |
0.13 |
� |
0.03 |
� |
0.02 |
� | |||
Dividends per common share |
� |
0.01 |
� |
0.01 |
� |
0.09 |
� |
0.09 |
� |
0.09 |
� |
0.09 |
� | ||||||
Return on average assets |
� |
0.85 |
% |
0.29 |
% |
0.24 |
% |
0.76 |
% |
0.18 |
% |
0.12 |
% | ||||||
Return on average equity |
� |
5.80 |
% |
1.98 |
% |
1.55 |
% |
4.86 |
% |
1.12 |
% |
0.71 |
% | ||||||
Net interest rate spread (1)� |
� |
4.96 |
% |
4.53 |
% |
3.87 |
% |
4.94 |
% |
3.99 |
% |
5.07 |
% | ||||||
Net interest margin (2) |
� |
5.18 |
% |
4.75 |
% |
4.08 |
% |
5.16 |
% |
4.24 |
% |
5.32 |
% | ||||||
Efficiency ratio (3) |
� |
72.82 |
% |
88.65 |
% |
89.26 |
% |
77.28 |
% |
93.53 |
% |
94.84 |
% | ||||||
Noninterest expense to average total assets |
� |
4.02 |
% |
4.69 |
% |
4.08 |
% |
4.13 |
% |
4.43 |
% |
5.56 |
% | ||||||
Average interest-earning assets to average interest-bearing liabilities |
� |
123.09 |
% |
121.92 |
% |
122.17 |
% |
123.85 |
% |
124.70 |
% |
125.27 |
% |
�
� |
� |
As�of: |
� | ||||||||||||||||
� |
� |
September�30,�2014 |
� |
June�30,�2014 |
� |
March�31,�2014 |
� |
December�31,�2013 |
� |
September�30,�2013 |
� |
June�30,�2013 |
� | ||||||
Nonperforming loans: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||||
Originated portfolio: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||||
Residential real estate |
� |
$ |
2,110 |
� |
$ |
1,743 |
� |
$ |
1,678 |
� |
$ |
1,895 |
� |
$ |
1,945 |
� |
$ |
2,346 |
� |
Commercial real estate |
� |
716 |
� |
1,162 |
� |
798 |
� |
487 |
� |
471 |
� |
473 |
� | ||||||
Home equity |
� |
28 |
� |
160 |
� |
214 |
� |
204 |
� |
229 |
� |
334 |
� | ||||||
Commercial business |
� |
� |
� |
5 |
� |
� |
� |
61 |
� |
62 |
� |
110 |
� | ||||||
Consumer |
� |
145 |
� |
139 |
� |
152 |
� |
259 |
� |
259 |
� |
136 |
� | ||||||
Total originated portfolio |
� |
2,999 |
� |
3,209 |
� |
2,842 |
� |
2,906 |
� |
2,966 |
� |
3,399 |
� | ||||||
Total purchased portfolio |
� |
4,287 |
� |
4,116 |
� |
4,582 |
� |
3,245 |
� |
2,553 |
� |
1,457 |
� | ||||||
Total nonperforming loans |
� |
7,286 |
� |
7,325 |
� |
7,424 |
� |
6,151 |
� |
5,519 |
� |
4,856 |
� | ||||||
Real estate owned and other possessed collateral, net |
� |
2,115 |
� |
1,991 |
� |
2,000 |
� |
3,211 |
� |
3,413 |
� |
2,134 |
� | ||||||
Total nonperforming assets |
� |
$ |
9,401 |
� |
$ |
9,316 |
� |
$ |
9,424 |
� |
$ |
9,362 |
� |
$ |
8,932 |
� |
$ |
6,990 |
� |
Past due loans to total loans |
� |
1.40 |
% |
1.14 |
% |
1.44 |
% |
1.57 |
% |
1.38 |
% |
1.68 |
% | ||||||
Nonperforming loans to total loans |
� |
1.34 |
% |
1.42 |
% |
1.44 |
% |
1.23 |
% |
1.14 |
% |
1.12 |
% | ||||||
Nonperforming assets to total assets |
� |
1.20 |
% |
1.22 |
% |
1.26 |
% |
1.28 |
% |
1.23 |
% |
1.04 |
% | ||||||
Allowance for loan losses to total loans |
� |
0.28 |
% |
0.26 |
% |
0.26 |
% |
0.27 |
% |
0.25 |
% |
0.26 |
% | ||||||
Allowance for loan losses to nonperforming loans |
� |
21.12 |
% |
18.66 |
% |
18.12 |
% |
21.95 |
% |
22.18 |
% |
23.54 |
% | ||||||
Commercial real estate loans to risk-based capital (4) |
� |
167.57 |
% |
176.98 |
% |
175.10 |
% |
170.69 |
% |
171.30 |
% |
159.07 |
% | ||||||
Net loans to core deposits (5) |
� |
92.80 |
% |
92.13 |
% |
93.18 |
% |
95.10 |
% |
93.04 |
% |
92.94 |
% | ||||||
Purchased loans to total loans, including held for sale |
� |
37.38 |
% |
38.51 |
% |
35.29 |
% |
34.89 |
% |
36.29 |
% |
37.57 |
% | ||||||
Equity to total assets |
� |
14.48 |
% |
14.71 |
% |
15.18 |
% |
15.61 |
% |
15.70 |
% |
16.97 |
% | ||||||
Tier 1 leverage capital ratio |
� |
15.89 |
% |
15.90 |
% |
16.28 |
% |
16.66 |
% |
17.23 |
% |
17.78 |
% | ||||||
Total risk-based capital ratio |
� |
22.97 |
% |
23.69 |
% |
24.21 |
% |
24.61 |
% |
25.63 |
% |
27.54 |
% | ||||||
Total stockholders� equity |
� |
$ |
113,242 |
� |
$ |
112,066 |
� |
$ |
114,008 |
� |
$ |
114,383 |
� |
$ |
113,846 |
� |
$ |
113,802 |
� |
Less: Preferred stock |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||||
Common stockholders� equity |
� |
113,242 |
� |
112,066 |
� |
114,008 |
� |
114,383 |
� |
113,846 |
� |
113,802 |
� | ||||||
Less: Intangible assets |
� |
(2,632 |
) |
(2,798 |
) |
(2,962 |
) |
(3,124 |
) |
(3,334 |
) |
(3,544 |
) | ||||||
Tangible common stockholders� equity (non-GAAP) |
� |
$ |
110,610 |
� |
$ |
109,268 |
� |
$ |
111,046 |
� |
$ |
111,259 |
� |
$ |
110,512 |
� |
$ |
110,258 |
� |
Common shares outstanding |
� |
10,248,034 |
� |
10,141,294 |
� |
10,432,494 |
� |
10,432,494 |
� |
10,433,550 |
� |
10,446,643 |
� | ||||||
Book value per common share |
� |
$ |
11.05 |
� |
$ |
11.05 |
� |
$ |
10.93 |
� |
$ |
10.96 |
� |
$ |
10.91 |
� |
$ |
10.89 |
� |
Tangible book value per share (non-GAAP) (6) |
� |
10.79 |
� |
10.77 |
� |
10.64 |
� |
10.66 |
� |
10.59 |
� |
10.55 |
� |
�
� |
� |
Reconciliation�of�Net�Income�Available�to�Common�Shareholders�(GAAP)�to�Net�Operating�Earnings�(non-GAAP)�(7) |
� | ||||||||||||||||
� |
� |
Three�Months�Ended: |
� | ||||||||||||||||
� |
� |
September�30,�2014 |
� |
June�30,�2014 |
� |
March�31,�2014 |
� |
December�31,�2013 |
� |
September�30,�2013 |
� |
June�30,�2013 |
� | ||||||
Net income available to common shareholders (GAAP) |
� |
$ |
1,644 |
� |
$ |
542 |
� |
$ |
437 |
� |
$ |
1,393 |
� |
$ |
320 |
� |
$ |
205 |
� |
Items excluded from operating earnings, net of tax: |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� |
� | ||||||
Discontinued operations |
� |
� |
� |
� |
� |
� |
� |
18 |
� |
(10 |
) |
41 |
� | ||||||
Severance expense |
� |
52 |
� |
407 |
� |
35 |
� |
� |
� |
366 |
� |
203 |
� | ||||||
Software conversion expenses |
� |
� |
� |
148 |
� |
84 |
� |
59 |
� |
� |
� |
� |
� | ||||||
Legal settlement expense and related professional fees |
� |
� |
� |
� |
� |
� |
� |
� |
� |
(165 |
) |
672 |
� | ||||||
Total after-tax items |
� |
52 |
� |
555 |
� |
119 |
� |
77 |
� |
191 |
� |
916 |
� | ||||||
Net operating earnings (non-GAAP) |
� |
$ |
1,696 |
� |
$ |
1,097 |
� |
$ |
556 |
� |
$ |
1,470 |
� |
$ |
511 |
� |
$ |
1,121 |
� |
Net operating earnings per share - basic (non-GAAP) |
� |
$ |
0.17 |
� |
$ |
0.11 |
� |
$ |
0.05 |
� |
$ |
0.14 |
� |
$ |
0.05 |
� |
$ |
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 those 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)�Tangible book value per share represents total stockholders� equity less the sum of preferred stock and intangible assets divided by common shares outstanding.
(7)�Management believes operating earnings, which exclude non-core items, provide a more meaningful representation of the Company�s performance.
�
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