Northeast Bank earnings hampered in Q3
Third-quarter earnings for the Lewiston-based Northeast Bancorp dropped over $500,000 compared with the same period last year, which the bank attributed in part to fluctuations in loan purchasing volume, severance expenses and insurance recovery from a lawsuit settled in the second quarter.
In its earnings statement, the bank reported net income of $320,000, down from $936,000 reported for the third quarter of 2012.
Richard Wayne, the bank’s CEO, said in the earnings statement that the latest results reflect “variability inherent in our loan purchasing activities,” which has become a key strategy for the bank.
The bank reported that transactional income on its loan portfolio was down to $912,000 from the previous quarter, when that portfolio brought in $2.8 million. The bank continued to grow its loan portfolio through the quarter by $48.1 million, with $35.4 million more in commercial loans purchased or originated by its loan servicing and acquisition arm and $12.7 million more from its community banking division. With that growth, the bank also reported an increase in its nonperforming assets, from $7.0 million last year to $8.9 million this year. The bank said the increase was largely due to two purchased loan deals.
Shares of Northeast Bancorp were trading 28 cents lower on the NASDAQ exchange following today’s earnings report.
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