{"id":479908,"date":"2021-04-21T16:20:23","date_gmt":"2021-04-21T20:20:23","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-record-third-quarter-results-and-declares-dividend\/"},"modified":"2021-04-21T16:20:23","modified_gmt":"2021-04-21T20:20:23","slug":"northeast-bank-reports-record-third-quarter-results-and-declares-dividend","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-record-third-quarter-results-and-declares-dividend\/","title":{"rendered":"Northeast Bank Reports Record Third Quarter Results and Declares Dividend"},"content":{"rendered":"
\n

PORTLAND, Maine, April 21, 2021 (GLOBE NEWSWIRE) — Northeast Bank (the \u201cBank\u201d) (NASDAQ: NBN), a Maine-based full-service bank, today reported record net income of $34.2 million, or $4.06 per diluted common share, for the quarter ended March 31, 2021, compared to net income of $1.9 million, or $0.21 per diluted common share, for the quarter ended March 31, 2020. Net income for the nine months ended March 31, 2021 was $50.1 million, or $6.01 per diluted common share, compared to $11.5 million, or $1.25 per diluted common share, for the nine months ended March 31, 2020. Net income for the three and nine months ended March 31, 2021 included $33.0 million of net gains on the sale of Paycheck Protection Program (\u201cPPP\u201d) loans originated and sold during the quarter ended March 31, 2021 under the current round of PPP, which had an after-tax earnings per diluted common share impact of $2.75 and $2.80, respectively.<\/p>\n

The Board of Directors declared a cash dividend of $0.01 per share, payable on May 20, 2021, to shareholders of record as of May 6, 2021.<\/p>\n

\u201cWe reported record results in our third fiscal quarter,\u201d said Rick Wayne, Chief Executive Officer. \u201cOver the past six months in anticipation of another round of PPP loans, we invested in technology, marketing and other initiatives to be able to source, underwrite and fund a significant volume of PPP loans in the event the program was reinstated. We are proud to report that our planning and investment paid off. Through March 31, we originated $2.25 billion of PPP loans to over 22,000 borrowers with over 286,000 associated jobs. Of the $2.25 billion of originated PPP loans, we sold $2.14 billion to The Loan Source, Inc. (\u201cLoan Source\u201d) during our third fiscal quarter, generating $33.0 million of net gains. We anticipate selling the remaining loans plus any additional PPP originations to Loan Source in our fourth fiscal quarter. In addition, we generated $6.0 million of correspondent fee income under the arrangement with Loan Source and ACAP SME, LLC. Our national origination and purchase business remained strong, with a total of $109.2 million of originated and purchased loans during the quarter.\u201d Mr. Wayne continued, \u201cAs a result, we are reporting earnings of $4.06 per diluted common share, a return on average equity of 71.1%, a return on average assets of 7.0%, and an efficiency ratio of 16.6% for the quarter.\u201d<\/p>\n

As of March 31, 2021, total assets were $1.71 billion, an increase of $457.1 million, or 36.3%, from total assets of $1.26 billion as of June 30, 2020.<\/p>\n

1.\u00a0 \u00a0Cash and short-term investments increased by $320.8 million, or 223.3%, primarily due to the timing of a large deposit account related to PPP payoff collections that is subject to significant fluctuation given the PPP activity during the quarter ended March 31, 2021. Cash and short-term investments may remain at an elevated level while PPP collections, including forgiveness amounts, continue, depending on the timing of receipts and remittances of cash amounts.<\/p>\n

\n
2.\u00a0 \u00a0The following table highlights the changes in the loan portfolio for the three and nine months ended March 31, 2021:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nLoan Portfolio Changes<\/td>\n<\/tr>\n
\u00a0<\/td>\nThree Months Ended March 31, 2021<\/td>\n<\/tr>\n
\u00a0<\/td>\nMarch 31, 2021
Balance<\/td>\n		\u00a0<\/td>\nDecember 31, 2020
Balance<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\n
Change ($)<\/td>\n		\u00a0<\/td>\n\n
Change (%)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n(Dollars in thousands)<\/td>\n<\/tr>\n
National Lending Purchased<\/td>\n$<\/td>\n433,497<\/td>\n\u00a0<\/td>\n$<\/td>\n418,584<\/td>\n\u00a0<\/td>\n$<\/td>\n14,913<\/td>\n\u00a0<\/td>\n3.56%<\/td>\n<\/tr>\n
National Lending Originated<\/td>\n\u00a0<\/td>\n473,930<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n478,423<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(4,493)<\/td>\n\u00a0<\/td>\n(0.94%)<\/td>\n<\/tr>\n
SBA National<\/td>\n\u00a0<\/td>\n42,707<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n48,797<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(6,090)<\/td>\n\u00a0<\/td>\n(12.48%)<\/td>\n<\/tr>\n
Community Banking<\/td>\n\u00a0<\/td>\n52,674<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n55,773<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(3,099)<\/td>\n\u00a0<\/td>\n(5.56%)<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n1,002,808<\/td>\n\u00a0<\/td>\n$<\/td>\n1,001,577<\/td>\n\u00a0<\/td>\n$<\/td>\n1,231<\/td>\n\u00a0<\/td>\n0.12%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nNine Months Ended March 31, 2021<\/td>\n<\/tr>\n
\u00a0<\/td>\nMarch 31, 2021
Balance<\/td>\n		\u00a0<\/td>\nJune 30, 2020
Balance<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\n
Change ($)<\/td>\n		\u00a0<\/td>\n\n
Change (%)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n(Dollars in thousands)<\/td>\n<\/tr>\n
National Lending Purchased<\/td>\n$<\/td>\n433,497<\/td>\n\u00a0<\/td>\n$<\/td>\n386,624<\/td>\n\u00a0<\/td>\n$<\/td>\n46,873<\/td>\n\u00a0<\/td>\n12.12%<\/td>\n<\/tr>\n
National Lending Originated<\/td>\n\u00a0<\/td>\n473,930<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n467,612<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6,318<\/td>\n\u00a0<\/td>\n1.35%<\/td>\n<\/tr>\n
SBA National<\/td>\n\u00a0<\/td>\n42,707<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n47,095<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(4,388)<\/td>\n\u00a0<\/td>\n(9.32%)<\/td>\n<\/tr>\n
Community Banking<\/td>\n\u00a0<\/td>\n52,674<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n70,271<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(17,597)<\/td>\n\u00a0<\/td>\n(25.04%)<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n1,002,808<\/td>\n\u00a0<\/td>\n$<\/td>\n971,602<\/td>\n\u00a0<\/td>\n$<\/td>\n31,206<\/td>\n\u00a0<\/td>\n3.21%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

Loans generated by the Bank’s National Lending Division for the quarter ended March 31, 2021 totaled $109.2 million, which consisted of $39.9 million of purchased loans, at an average price of 93.8% of unpaid principal balance, and $69.3 million of originated loans.<\/p>\n

Additionally, the Bank originated $2.25 billion of loans in connection with the PPP, of which $2.14 billion were sold during the quarter ended March 31, 2021. The Bank recorded a net gain of $33.0 million from the sale of PPP loans, primarily resulting from the recognition of net deferred origination fees upon the sale of the loans. The remaining $106.1 million of PPP loans are classified as held for sale at March 31, 2021, net of unamortized deferred fees.<\/p>\n

An overview of the Bank\u2019s National Lending Division portfolio follows:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nNational Lending Portfolio<\/td>\n<\/tr>\n
\u00a0<\/td>\nThree Months Ended March 31,<\/td>\n<\/tr>\n
\u00a0<\/td>\n2021<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2020<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nPurchased<\/td>\n\u00a0<\/td>\nOriginated<\/td>\n\u00a0<\/td>\nTotal<\/td>\n\u00a0<\/td>\nPurchased<\/td>\n\u00a0<\/td>\nOriginated<\/td>\n\u00a0<\/td>\nTotal<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n(Dollars in thousands)<\/td>\n<\/tr>\n
Loans purchased or originated during the period:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Unpaid principal balance<\/td>\n$<\/td>\n42,547<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n69,327<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n111,874<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n70,860<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n48,772<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n119,632<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n39,895<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n69,327<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n109,222<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n65,056<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n48,772<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n113,828<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Loan returns during the period:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Yield<\/td>\n\u00a0<\/td>\n8.48<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.28<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.83<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10.05<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.35<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.50<\/td>\n%<\/td>\n<\/tr>\n
Total Return on Purchased Loans (1)<\/td>\n\u00a0<\/td>\n8.48<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.28<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.83<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10.05<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.35<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.50<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nNine Months Ended March 31,<\/td>\n<\/tr>\n
\u00a0<\/td>\n2021<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2020<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nPurchased<\/td>\n\u00a0<\/td>\nOriginated<\/td>\n\u00a0<\/td>\nTotal<\/td>\n\u00a0<\/td>\nPurchased<\/td>\n\u00a0<\/td>\nOriginated<\/td>\n\u00a0<\/td>\nTotal<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n(Dollars in thousands)<\/td>\n<\/tr>\n
Loans purchased or originated during the period:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Unpaid principal balance<\/td>\n$<\/td>\n146,135<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n194,842<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n340,977<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n167,977<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n187,872<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n355,849<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n135,757<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n194,842<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n330,599<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n158,518<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n187,872<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n346,390<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Loan returns during the period:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Yield<\/td>\n\u00a0<\/td>\n8.88<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.06<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.90<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.85<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.53<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.51<\/td>\n%<\/td>\n<\/tr>\n
Total Return on Purchased Loans (1)<\/td>\n\u00a0<\/td>\n8.88<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.06<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.90<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10.00<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.53<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.57<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total loans as of period end:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Unpaid principal balance<\/td>\n$<\/td>\n471,778<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n473,930<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n945,708<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n432,920<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n512,964<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n945,884<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n433,497<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n473,930<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n907,427<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n395,944<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n512,964<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n908,908<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains on asset sales, gains on real estate owned and other noninterest income recorded during the period divided by the average invested balance, which includes purchased loans held for sale, on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled \u201cTotal Return on Purchased Loans.\u201d<\/p>\n

3.\u00a0\u00a0\u00a0Deposits increased by $286.4 million, or 28.3%, from June 30, 2020. The increase was attributable to increases in demand deposits of $318.8 million, or 336.5%, and savings and interest checking accounts of $128.3 million, or 93.1%, partially offset by a decrease in time deposits of $181.4 million, or 38.0%, due to intentional runoff. The increase in demand deposits was primarily due to the timing of a large deposit account related to PPP collections and payoffs that is subject to significant fluctuation given the PPP activity during the quarter ended March 31, 2021.<\/p>\n

4.\u00a0\u00a0\u00a0Shareholders\u2019 equity increased by $52.1 million, or 31.6%, from June 30, 2020, primarily due to net income of $50.1 million. Shareholders\u2019 equity also increased by $1.0 million as a result of stock options exercised, which resulted in 153 thousand shares of common stock issued, and increased by $661 thousand due to a decrease in accumulated other comprehensive loss.<\/p>\n

Net income increased by $32.3 million to $34.2 million for the quarter ended March 31, 2021, compared to net income of $1.9 million for the quarter ended March 31, 2020.<\/p>\n

1.\u00a0\u00a0\u00a0Net interest and dividend income before provision for loan losses increased by $2.3 million to $18.6 million for the quarter ended March 31, 2021, compared to $16.3 million for the quarter ended March 31, 2020. The increase was primarily due to the following:<\/p>\n