{"id":750525,"date":"2023-04-24T16:36:31","date_gmt":"2023-04-24T20:36:31","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-third-quarter-results-and-declares-dividend-2\/"},"modified":"2023-04-24T16:36:31","modified_gmt":"2023-04-24T20:36:31","slug":"northeast-bank-reports-third-quarter-results-and-declares-dividend-2","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/northeast-bank-reports-third-quarter-results-and-declares-dividend-2\/","title":{"rendered":"Northeast Bank Reports Third Quarter Results and Declares Dividend"},"content":{"rendered":"
\n

PORTLAND, Maine, April 24, 2023 (GLOBE NEWSWIRE) — Northeast Bank (the \u201cBank\u201d) (NASDAQ: NBN), a Maine-based full-service bank, today reported net income of $12.5 million, or $1.69 per diluted common share, for the quarter ended March 31, 2023, compared to net income of $10.6 million, or $1.36 per diluted common share, for the quarter ended March 31, 2022. Net income for the nine months ended March 31, 2023 was $32.1 million, or $4.35 per diluted common share, compared to $31.9 million, or $3.98 per diluted common share, for the nine months ended March 31, 2022.<\/p>\n

The Board of Directors declared a cash dividend of $0.01 per share, payable on May 19, 2023, to shareholders of record as of May 5, 2023.<\/p>\n

\u201cWe reported strong results in our third fiscal quarter,\u201d said Rick Wayne, Chief Executive Officer. \u201cAs a result of the historic loan growth during our second fiscal quarter, we increased the National Lending Division\u2019s interest income by $29.1 million, or 140.2%, compared to the quarter ended March 31, 2022 and by $13.8 million, or 38.3%, compared with the quarter ended December 31, 2022. We successfully integrated $998.5 million in loans purchased during the second fiscal quarter into our existing loan portfolio and maintained careful underwriting standards. Utilizing our at-the-market stock offering plan, we issued 160 thousand shares of common stock during the quarter at a weighted average net proceeds per share of $42.78.\u201d Mr. Wayne continued, \u201cAs a result of this activity, we are reporting earnings of $1.69 per diluted common share, a return on average equity of 18.5%, and a return on average assets of 1.8% for the quarter.\u201d<\/p>\n

As of March 31, 2023, total assets were $2.87 billion, an increase of $1.28 billion, or 81.1%, from total assets of $1.58 billion as of June 30, 2022.<\/p>\n

1.\u00a0 The following table highlights the changes in the loan portfolio for the three and nine months ended March 31, 2023:<\/p>\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, 2023<\/td>\n<\/tr>\n
\u00a0<\/td>\nMarch 31, 2023
Balance<\/td>\n		\u00a0<\/td>\nDecember 31, 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>\n1,460,598<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,483,567<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(22,969<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1.55<\/td>\n%)<\/td>\n<\/tr>\n
National Lending Originated<\/td>\n\u00a0<\/td>\n994,707<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n963,775<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n30,932<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.21<\/td>\n%<\/td>\n<\/tr>\n
SBA National<\/td>\n\u00a0<\/td>\n25,537<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n27,239<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,702<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(6.25<\/td>\n%)<\/td>\n<\/tr>\n
Community Banking<\/td>\n\u00a0<\/td>\n28,953<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n30,176<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,223<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(4.05<\/td>\n%)<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n2,509,795<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2,504,757<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n5,038<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.20<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\nNine Months Ended March 31, 2023<\/td>\n<\/tr>\n
\u00a0<\/td>\nMarch 31, 2023
Balance<\/td>\n		\u00a0<\/td>\nJune 30, 2022
Balance<\/td>\n		\u00a0<\/td>\nChange ($)<\/td>\n\u00a0<\/td>\nChange (%)<\/td>\n<\/tr>\n
\u00a0<\/td>\n(Dollars in thousands)<\/td>\n<\/tr>\n
National Lending Purchased<\/td>\n$<\/td>\n1,460,598<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n477,682<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n982,916<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n205.77<\/td>\n%<\/td>\n<\/tr>\n
National Lending Originated<\/td>\n\u00a0<\/td>\n994,707<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n759,229<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n235,478<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n27.67<\/td>\n%<\/td>\n<\/tr>\n
SBA National<\/td>\n\u00a0<\/td>\n25,537<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n33,046<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(7,509<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(22.72<\/td>\n%)<\/td>\n<\/tr>\n
Community Banking<\/td>\n\u00a0<\/td>\n28,953<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n34,909<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(5,956<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(17.06<\/td>\n%)<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n2,509,795<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,304,866<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,204,929<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n92.34<\/td>\n%<\/td>\n<\/tr>\n<\/table>\n

Loans generated by the Bank’s National Lending Division for the quarter ended March 31, 2023 totaled $138.6 million, which consisted of $21.5 million of purchased loans, at an average price of 90.6% of unpaid principal balance, and $117.1 million of originated loans.<\/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
\u00a0<\/td>\nNational Lending Portfolio<\/td>\n<\/tr>\n
\u00a0<\/td>\nThree Months Ended March 31,<\/td>\n<\/tr>\n
\u00a0<\/td>\n2023<\/td>\n\u00a0<\/td>\n2022<\/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\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$<\/td>\n23,715<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n117,108<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n140,823<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n32,079<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n152,105<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n184,184<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n21,493<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n117,108<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n138,601<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n23,920<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n152,105<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n176,025<\/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
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\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>\n7.62<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n9.23<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.26<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.25<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6.94<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.50<\/td>\n%<\/td>\n<\/tr>\n
Total Return on Purchased Loans (1)<\/td>\n\u00a0<\/td>\n7.62<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.62<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.30<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.30<\/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\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,<\/td>\n<\/tr>\n
\u00a0<\/td>\n2023<\/td>\n\u00a0<\/td>\n2022<\/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\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$<\/td>\n1,260,530<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n472,820<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,733,350<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n162,492<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n414,989<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n577,481<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n1,095,003<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n472,820<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,567,823<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n151,412<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n414,989<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n566,401<\/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
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\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>\n7.83<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.57<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.20<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.80<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6.61<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.55<\/td>\n%<\/td>\n<\/tr>\n
Total Return on Purchased Loans (1)<\/td>\n\u00a0<\/td>\n7.83<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.83<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.80<\/td>\n%<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nN\/A<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.80<\/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\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\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$<\/td>\n1,650,072<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n994,707<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2,644,779<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n516,972<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n680,568<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,197,540<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net investment basis<\/td>\n\u00a0<\/td>\n1,460,598<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n994,707<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,455,305<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n479,824<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n680,568<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,160,392<\/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
(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, 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<\/td>\n<\/tr>\n
\u00a0<\/td>\n<\/tr>\n<\/table>\n

2.\u00a0 Deposits increased by $841.2 million, or 65.3%, from June 30, 2022. The increase was attributable to increases in time deposits of $883.9 million, or 694.3%, and savings and interest checking deposits of $108.6 million, or 18.6%, partially offset by a decrease in demand deposits of $153.9 million, or 46.8%. The primary reason for the net increase in deposits was due to the increase in brokered time deposits, which increased to $744.1 million compared to none outstanding at June 30, 2022. The use of brokered time deposits is part of the Bank\u2019s strategy to fund the loan purchases in the short-term. The decrease in demand deposits was primarily due to a $165.0 million decrease in the Paycheck Protection Program (\u201cPPP\u201d) Liquidity Facility (\u201cPPPLF\u201d) balance during the nine months ended March 31, 2023 as the balance of PPP loans purchased by ACAP that remain outstanding has decreased significantly during this period.<\/p>\n

3.\u00a0 Shareholders\u2019 equity increased by $35.6 million, or 14.3%, from June 30, 2022, primarily due to net income of $32.1 million, the issuance of 194 thousand shares of voting common stock, adding $8.0 million to shareholders\u2019 equity, and stock-based compensation of $2.6 million, 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 to shareholders\u2019 equity.<\/p>\n

Net income increased by $1.9 million to $12.5 million for the quarter ended March 31, 2023, compared to net income of $10.6 million for the quarter ended March 31, 2022.<\/p>\n

1.\u00a0 Net interest and dividend income before provision for loan losses increased by $11.2 million to $32.2 million for the quarter ended March 31, 2023, compared to $21.0 million for the quarter ended March 31, 2022. The increase was primarily due to the following:<\/p>\n