{"id":725912,"date":"2023-01-25T16:40:49","date_gmt":"2023-01-25T21:40:49","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-second-quarter-results-including-record-purchases-and-declares-dividend\/"},"modified":"2023-01-25T16:40:49","modified_gmt":"2023-01-25T21:40:49","slug":"northeast-bank-reports-second-quarter-results-including-record-purchases-and-declares-dividend","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-second-quarter-results-including-record-purchases-and-declares-dividend\/","title":{"rendered":"Northeast Bank Reports Second Quarter Results, including Record Purchases, and Declares Dividend"},"content":{"rendered":"
\n

PORTLAND, Maine, Jan. 25, 2023 (GLOBE NEWSWIRE) — Northeast Bank (the \u201cBank\u201d) (NASDAQ: NBN), a Maine-based full-service bank, today reported net income of $11.3 million, or $1.54 per diluted common share, for the quarter ended December 31, 2022, compared to net income of $11.4 million, or $1.42 per diluted common share, for the quarter ended December 31, 2021. Net income for the six months ended December 31, 2022 was $19.6 million, or $2.65 per diluted common share, compared to $21.3 million, or $2.63 per diluted common share, for the six months ended December 31, 2021. Net income per diluted common share excluding correspondent fee income would be $1.48 and $0.90 for the three months ended December 31, 2022 and 2021, respectively, and $2.46 and $1.43 for the six months ended December 31, 2022 and 2021, respectively.<\/p>\n

The Board of Directors declared a cash dividend of $0.01 per share, payable on February 23, 2023, to shareholders of record as of February 9, 2023.<\/p>\n

\u201cOur second fiscal quarter represented a milestone for Northeast Bank,\u201d said Rick Wayne, Chief Executive Officer. \u201cOur National Lending Division generated a record $1.17 billion in purchases and originations for the quarter, growing the National Lending portfolio by $1.04 billion, or 74.4%, over September 30, 2022, and $1.21 billion, or 97.9%, over June 30, 2022. Our disciplined approach proved valuable, as we were able to deploy significant capital into purchased loans, poising the Bank for future success. The originated yield and purchased return for the quarter was 8.5% and 8.7%, respectively. Additionally, we approved and initiated an at-the-market offering of up to $50.0 million of our voting common stock, which provides the Bank with the ability to raise capital if and as needed. For the quarter, we earned $1.54 per diluted common share, a return on average equity of 17.5%, and a return on average assets of 2.1%.\u201d<\/p>\n

As of December 31, 2022, total assets were $2.81 billion, an increase of $1.23 billion, or 77.5%, from total assets of $1.58 billion as of June 30, 2022. The principal components of the changes in the balance sheet follow:<\/p>\n

1. The following table highlights the changes in the loan portfolio for the three and six months ended December 31, 2022:<\/p>\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 December 31, 2022<\/td>\n<\/tr>\n
\u00a0<\/td>\nDecember 31, 2022
Balance<\/td>\n		\u00a0<\/td>\nSeptember 30, 2022
Balance<\/td>\n		\u00a0<\/td>\nChange ($)<\/td>\n\u00a0<\/td>\nChange (%)<\/td>\n<\/tr>\n
\u00a0<\/td>\n(Dollars in thousands)<\/td>\n\u00a0<\/td>\n<\/tr>\n
National Lending Purchased<\/td>\n$<\/td>\n1,483,567<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n530,393<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n953,174<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n179.71<\/td>\n%<\/td>\n<\/tr>\n
National Lending Originated<\/td>\n\u00a0<\/td>\n963,775<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n873,292<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n90,483<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10.36<\/td>\n%<\/td>\n<\/tr>\n
SBA National<\/td>\n\u00a0<\/td>\n27,239<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n27,636<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(397<\/td>\n)<\/td>\n\u00a0<\/td>\n(1.44<\/td>\n%)<\/td>\n<\/tr>\n
Community Banking<\/td>\n\u00a0<\/td>\n30,176<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n32,899<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,723<\/td>\n)<\/td>\n\u00a0<\/td>\n(8.28<\/td>\n%)<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n2,504,757<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,464,220<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,040,537<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n71.06<\/td>\n%<\/td>\n<\/tr>\n<\/table>\n

\n \n <\/p>\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nSix Months Ended December 31, 2022<\/td>\n<\/tr>\n
\u00a0<\/td>\nDecember 31, 2022
Balance<\/td>\n		\u00a0<\/td>\nJune 30, 2022
Balance<\/td>\n		\u00a0<\/td>\nChange ($)<\/td>\n\u00a0<\/td>\nChange (%)<\/td>\n<\/tr>\n
\u00a0<\/td>\n(Dollars in thousands)<\/td>\n<\/tr>\n
National Lending Purchased<\/td>\n$<\/td>\n1,483,567<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n477,682<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,005,885<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n210.58<\/td>\n%<\/td>\n<\/tr>\n
National Lending Originated<\/td>\n\u00a0<\/td>\n963,775<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n759,229<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n204,546<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n26.94<\/td>\n%<\/td>\n<\/tr>\n
SBA National<\/td>\n\u00a0<\/td>\n27,239<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n33,046<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(5,807<\/td>\n)<\/td>\n\u00a0<\/td>\n(17.57<\/td>\n%)<\/td>\n<\/tr>\n
Community Banking<\/td>\n\u00a0<\/td>\n30,176<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n34,909<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(4,733<\/td>\n)<\/td>\n\u00a0<\/td>\n(13.56<\/td>\n%)<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n2,504,757<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,304,866<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,199,891<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n91.96<\/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<\/tr>\n<\/table>\n

Loans generated by the Bank’s National Lending Division for the quarter ended December 31, 2022 totaled $1.17 billion, which consisted of $998.5 million of purchased loans, at an average price of 86.6% of unpaid principal balance, and $174.0 million of originated loans.<\/p>\n

An overview of the Bank\u2019s National Lending portfolio follows:<\/p>\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 December 31,<\/td>\n<\/tr>\n
\u00a0<\/td>\n2022<\/td>\n\u00a0<\/td>\n2021<\/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(Dollars in thousands)<\/td>\n\u00a0<\/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\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$<\/td>\n1,152,957<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n173,992<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,326,949<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n93,379<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n168,398<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n261,777<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n998,527<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n173,992<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,172,519<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n92,136<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n168,398<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n260,534<\/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\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Returns on loan portfolio 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\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>\n8.69<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.50<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.59<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.92<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6.48<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.53<\/td>\n%<\/td>\n<\/tr>\n<\/table>\n

\n \n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\nSix Months Ended December 31,<\/td>\n<\/tr>\n
\u00a0<\/td>\n2022<\/td>\n\u00a0<\/td>\n2021<\/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(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$<\/td>\n1,236,815<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n355,712<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,592,527<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n130,413<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n262,884<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n393,297<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n1,076,064<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n355,712<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,431,776<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n127,492<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n262,884<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n390,376<\/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
Returns on loan portfolio 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>\n8.07<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.19<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.14<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.08<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6.43<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.58<\/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$<\/td>\n1,673,158<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n963,775<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2,636,933<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n518,175<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n619,223<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,137,398<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n1,483,567<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n963,775<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,447,342<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n484,513<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n619,223<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,103,736<\/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\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

2. Deposits increased by $947.7 million, or 73.6%, from June 30, 2022, attributable to increases in time deposits of $951.1 million, or 747.1%, and savings and interest-bearing checking accounts of $140.1 million, or 23.9%, partially offset by a decrease in demand deposits of $145.5 million, or 44.2%. The significant increase in time deposits is primarily due to the increase in brokered time deposits, which increased to $843.3 million compared to none outstanding at June 30, 2022. The use of brokered time deposits was part of the Bank\u2019s strategy to fund the loan purchases for the short-term.<\/p>\n

3. Shareholders\u2019 equity increased by $15.1 million, or 6.1%, from June 30, 2022, primarily due to net income of $19.6 million, stock-based compensation of $1.7 million and the issuance of 34 thousand shares of voting common stock, adding $1.1 million to shareholders\u2019 equity, net of issuance costs, partially offset by the repurchase of 136 thousand shares of voting common stock at a weighted average price per share of $37.99, which resulted in a $5.2 million decrease in shareholders\u2019 equity.<\/p>\n

Net income decreased by $105 thousand to $11.3 million for the quarter ended December 31, 2022, compared to net income of $11.4 million for the quarter ended December 31, 2021.<\/p>\n

1. Net interest and dividend income before provision for loan losses increased by $8.7 million to $28.8 million for the quarter ended December 31, 2022, compared to $20.1 million for the quarter ended December 31, 2021. The increase was primarily due to the following:<\/p>\n