Northeast Bank earnings soar 63% for the year
Portland-based Northeast Bank (Nasdaq: NBN) on Wednesday reported fourth-quarter earnings of $11.2 million, or $1.33 per share, compared to a net loss of $603,000, or 7 cents per share, for the same period last year.
Net income for the year ended June 30, 2020, was $22.7 million, or $2.53 per share, up from $13.9 million, or $1.52 per diluted common share for 2019.
The bank’s quarterly earnings benefited from the sale of $457.6 million in Paycheck Protection Program loans to Loan Source Inc., which resulted in a pretax net gain of $9.7 million, or approximately $6.7 million after tax, according to a news release.
Northeast CEO Rick Wayne called the quarterly results a “record” and expressed enthusiasm for the bank’s participation in the PPP.
“We are proud of our participation in the Paycheck Protection Program, providing PPP loans to over 4,300 small businesses with tens of thousands of related jobs,” he said. “We are excited for our correspondent banking relationship with Loan Source, in which we earn a correspondent fee when Loan Source purchases PPP loans and we subsequently share in net servicing income on such purchased PPP loans.”
Northeast’s board of directors approved a cash dividend of 1 cent per share, payable on August 28, to shareholders of record as of August 14.
Northeast is a full-service bank with nine branches in Maine.
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