Northeast Bancorp (NBN, Financial) filed Quarterly Report for the period ended 2010-09-30.
Northeast Bancorp has a market cap of $32.1 million; its shares were traded at around $13.8 with a P/E ratio of 16.8 and P/S ratio of 0.7. The dividend yield of Northeast Bancorp stocks is 2.6%.
Net interest and dividend income for the three months ended September 30, 2010 increased to $4,325,640 as compared to $4,227,569 for the same period in 2009. The increase in net interest and dividend income of $98,071, or 2%, was primarily due to a decrease in deposit rates and borrowings and by an increase in average earning assets of $23,856,900, or 4%, for the quarter ended September 30, 2010 as compared to the quarter ended September 30, 2009. The increase in average earning assets was primarily due to an increase in average interest bearing deposits of $20,811,798, or 244%, coupled with an increase in average available-for-sale securities of $7,564,881, or 5%, from the purchase of mortgage-backed securities and US government enterprise bonds. Average loans decreased $4,518,779, or 1%. Average loans as a percentage of average earning assets was 66% and 70% for the quarters ended September 30, 2010 and 2009, respectively. Our net interest margin, on a tax equivalent basis, was 2.96% and 3.01% for the quarters ended September 30, 2010 and 2009, respectively. Our net interest spread, on a tax equivalent basis, for the three months ended September 30, 2010 was 2.78%, a decrease of 5 basis points from 2.83% for the same period a year ago. Comparing the three months ended September 30, 2010 and 2009, the yields on earning assets decreased 54 basis points, and the cost of interest-bearing liabilities decreased 49 basis points. The decrease in the cost of interest-bearing liabilities reflects the lower interest rates paid on maturing certificates of deposits, and decreases in interest rates paid on interest-bearing non-maturing deposits.
Total noninterest income was $3,514,447 for the quarter ended September 30, 2010, an increase of $746,039, or 27%, from $2,768,408 for the quarter ended September 30, 2009. This increase reflected a $82,323, or 63%, decrease in net loss on sale of REO and other assets owned in the quarter ended September 30, 2010, a $738,242, or 352%, increase in gain on the sale of loans due to the $49.0 million in residential real estate loans sold into the secondary market for the quarter ended September 30, 2009 compared to $16.7 million sold in the same period one year ago, a $95,555, or 21%, increase in investment brokerage commissions, partially offset by a $145,182, or 9%, decrease in insurance agency commissions. Excluding the two agency offices sold last year, the decrease in insurance commissions was 4% which was attributable to the competition for commercial property and casualty customers.
Our consolidated assets were $628,812,606 and $622,606,788 as of September 30, 2010 and June 30, 2010, respectively, an increase of $6,205,818, or 1%. This increase was primarily due to an increase in interest-bearing deposits of $31,030,541, or 231%, partially offset by decreases of $7,165,285, or 4%, in available for sale securities, $12,451,058, or 3% , in net loans, including loans held for sale, $3,940,847, or 56%, in cash and due from banks and a net decrease in the combination of premises and equipment, acquired assets, accrued interest receivable, goodwill, intangible assets, bank owned life insurance and other assets of $1,267,533. For the three months ended September 30, 2010, average total assets were $625,889,008, an increase of $21,934,994, or 4%, from $603,954,014 for the same period in 2009. This average asset increase was primarily attributable to an increase in interest-bearing deposits and available-for-sale securities.
Total stockholders' equity was $51,259,180 and $50,906,059 at September 30, 2010 and June 30, 2010, respectively, an increase of $353,121, or 1%, due to net income for the three months ended September 30, 2010, proceeds from the exercise of stock options partially offset by a decrease in accumulated other comprehensive income and by dividends paid. Book value per outstanding share was $20.16 at September 30, 2010 and $20.08 at June 30, 2010. Tangible book value per outstanding share was $15.36 at September 30, 2010 and $15.19 at June 30, 2010.
Total loans, including loans held-for-sale, of $384,167,552 as of September 30, 2010 decreased $12,395,058, or 3%, from $396,562,610 as of June 30, 2010. Compared to June 30, 2010, commercial real estate loans increased $769,419, or 1%, and construction loans increased $2,228,320, or 40%. The decreases in the other portfolios more than offset these increases. These decreases were $8,512,973, or 60% in loans held-for-sale, $600,849, or less than 1%, in residential real estate loans, $966,927, or 3% in commercial loans, and $5,140,205, or 8% in consumer and other loans. Deferred fees decreased $166,843. Total loans, including loans held-for-sale, averaged $389,359,326 for the three months ended September 30, 2010, a decrease of $4,518,779, or 1%, compared to $393,878,105 for the three months ended September 30, 2009.
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Northeast Bancorp has a market cap of $32.1 million; its shares were traded at around $13.8 with a P/E ratio of 16.8 and P/S ratio of 0.7. The dividend yield of Northeast Bancorp stocks is 2.6%.
Highlight of Business Operations:
The Company reported consolidated net income available to common shareholders of $899,864, or $0.38 per diluted share, for the three months ended September 30, 2010 compared to $434,885, or $0.19 per diluted share, for the three months ended September 30, 2009, an increase of $464,979, or 107%. Net interest and dividend income increased $98,071, or 2%, as a result of a lower cost of funds. The provision for loan losses increased $35,544, or 8%, compared to the quarter ended September 30, 2009. Noninterest income increased $746,039, or 27%, from increased gain on the sale of loans and investment brokerage commissions. Noninterest expense increased $67,182, or 1%, primarily due to increased expenses related to loans in workout and in process of foreclosure and merger related expenses.Net interest and dividend income for the three months ended September 30, 2010 increased to $4,325,640 as compared to $4,227,569 for the same period in 2009. The increase in net interest and dividend income of $98,071, or 2%, was primarily due to a decrease in deposit rates and borrowings and by an increase in average earning assets of $23,856,900, or 4%, for the quarter ended September 30, 2010 as compared to the quarter ended September 30, 2009. The increase in average earning assets was primarily due to an increase in average interest bearing deposits of $20,811,798, or 244%, coupled with an increase in average available-for-sale securities of $7,564,881, or 5%, from the purchase of mortgage-backed securities and US government enterprise bonds. Average loans decreased $4,518,779, or 1%. Average loans as a percentage of average earning assets was 66% and 70% for the quarters ended September 30, 2010 and 2009, respectively. Our net interest margin, on a tax equivalent basis, was 2.96% and 3.01% for the quarters ended September 30, 2010 and 2009, respectively. Our net interest spread, on a tax equivalent basis, for the three months ended September 30, 2010 was 2.78%, a decrease of 5 basis points from 2.83% for the same period a year ago. Comparing the three months ended September 30, 2010 and 2009, the yields on earning assets decreased 54 basis points, and the cost of interest-bearing liabilities decreased 49 basis points. The decrease in the cost of interest-bearing liabilities reflects the lower interest rates paid on maturing certificates of deposits, and decreases in interest rates paid on interest-bearing non-maturing deposits.
Total noninterest income was $3,514,447 for the quarter ended September 30, 2010, an increase of $746,039, or 27%, from $2,768,408 for the quarter ended September 30, 2009. This increase reflected a $82,323, or 63%, decrease in net loss on sale of REO and other assets owned in the quarter ended September 30, 2010, a $738,242, or 352%, increase in gain on the sale of loans due to the $49.0 million in residential real estate loans sold into the secondary market for the quarter ended September 30, 2009 compared to $16.7 million sold in the same period one year ago, a $95,555, or 21%, increase in investment brokerage commissions, partially offset by a $145,182, or 9%, decrease in insurance agency commissions. Excluding the two agency offices sold last year, the decrease in insurance commissions was 4% which was attributable to the competition for commercial property and casualty customers.
Our consolidated assets were $628,812,606 and $622,606,788 as of September 30, 2010 and June 30, 2010, respectively, an increase of $6,205,818, or 1%. This increase was primarily due to an increase in interest-bearing deposits of $31,030,541, or 231%, partially offset by decreases of $7,165,285, or 4%, in available for sale securities, $12,451,058, or 3% , in net loans, including loans held for sale, $3,940,847, or 56%, in cash and due from banks and a net decrease in the combination of premises and equipment, acquired assets, accrued interest receivable, goodwill, intangible assets, bank owned life insurance and other assets of $1,267,533. For the three months ended September 30, 2010, average total assets were $625,889,008, an increase of $21,934,994, or 4%, from $603,954,014 for the same period in 2009. This average asset increase was primarily attributable to an increase in interest-bearing deposits and available-for-sale securities.
Total stockholders' equity was $51,259,180 and $50,906,059 at September 30, 2010 and June 30, 2010, respectively, an increase of $353,121, or 1%, due to net income for the three months ended September 30, 2010, proceeds from the exercise of stock options partially offset by a decrease in accumulated other comprehensive income and by dividends paid. Book value per outstanding share was $20.16 at September 30, 2010 and $20.08 at June 30, 2010. Tangible book value per outstanding share was $15.36 at September 30, 2010 and $15.19 at June 30, 2010.
Total loans, including loans held-for-sale, of $384,167,552 as of September 30, 2010 decreased $12,395,058, or 3%, from $396,562,610 as of June 30, 2010. Compared to June 30, 2010, commercial real estate loans increased $769,419, or 1%, and construction loans increased $2,228,320, or 40%. The decreases in the other portfolios more than offset these increases. These decreases were $8,512,973, or 60% in loans held-for-sale, $600,849, or less than 1%, in residential real estate loans, $966,927, or 3% in commercial loans, and $5,140,205, or 8% in consumer and other loans. Deferred fees decreased $166,843. Total loans, including loans held-for-sale, averaged $389,359,326 for the three months ended September 30, 2010, a decrease of $4,518,779, or 1%, compared to $393,878,105 for the three months ended September 30, 2009.
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