Northeast Bank
NASDAQ:NBN
Northeast Bank
Northeast Bank (Maine) engages in offering personal and business banking services. The company is headquartered in Lewiston, Maine and currently employs 160 full-time employees. The Bank offers personal and business banking services to the Maine market through approximately eight branches. The Bank conducts its lending activities through two primary channels: the National Lending Division and the Community Banking Division. The company offers various loans, such as residential real estate loans, commercial and industrial loans, consumer loans, multi-family and other commercial real estate loans. The company originates residential mortgage loans secured by one- to four-family properties throughout Maine. The Bank offers a line of deposit products to customers in western and south-central Maine, including demand deposit, negotiable order of withdrawal (NOW), money market, savings and certificate of deposit accounts. The Bank through its division ableBanking offers online savings products to consumers nationwide. The company also offers telephone banking, online banking and bill payment, mobile banking and remote deposit capture services.
Northeast Bank (Maine) engages in offering personal and business banking services. The company is headquartered in Lewiston, Maine and currently employs 160 full-time employees. The Bank offers personal and business banking services to the Maine market through approximately eight branches. The Bank conducts its lending activities through two primary channels: the National Lending Division and the Community Banking Division. The company offers various loans, such as residential real estate loans, commercial and industrial loans, consumer loans, multi-family and other commercial real estate loans. The company originates residential mortgage loans secured by one- to four-family properties throughout Maine. The Bank offers a line of deposit products to customers in western and south-central Maine, including demand deposit, negotiable order of withdrawal (NOW), money market, savings and certificate of deposit accounts. The Bank through its division ableBanking offers online savings products to consumers nationwide. The company also offers telephone banking, online banking and bill payment, mobile banking and remote deposit capture services.
Loan Growth: Northeast Bank posted a record quarter for loan growth, adding nearly $900 million in total loans, with $533 million in purchases and $252 million in originations.
Net Income: Net income for the quarter was $20.7 million, or $2.47 per share, slightly lower than previous quarters mainly due to reduced SBA gain on sale income.
SBA Impact: SBA loan origination and sales were constrained by the government shutdown, but management expects volume and gain on sale income to recover next quarter.
Net Interest Margin: Net interest margin was 4.49%, down from 4.59% last quarter, but anticipated to rise as liabilities reprice and the larger loan book contributes more income.
Asset Quality: Asset quality remained stable, with flat delinquencies and nonaccruals; allowance for credit losses increased mainly due to loan purchases.
Funding Strategy: Growth is being funded through brokered CDs and FHLB borrowings, but management continues to build core deposits in Maine and explore niche deposit opportunities.
Guidance: Management expects higher net interest income and improved performance in coming quarters due to the expanded loan book and recovery in SBA activity.
