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October 30, 2020

Northeast Bank records income surge in its fiscal Q1

Photo / Amber Waterman Rick Wayne, president and CEO of Northeast Bank, which reported strong earnings in the recent quarter.
By Peter Van Allen

Northeast Bank recorded a sharp increase in income in the recent three-month period, helped in part by reselling its PPP loans.

The Portland-based bank, which has nine branch offices, reported net income of $7.8 million, or 94 cents a share, up from $4.8 million, or 52 cents, in the comparable quarter a year ago. It is Northeast Bank’s fiscal first quarter. 

In the quarter ended Sept. 30, the bank recorded fee income of $4.7 million from selling Paycheck Protection Program loans to related Chicago-based entities, Loan Source Inc. and ACAP SME LLC.

“We began the new fiscal year with a very strong first quarter,” CEO Rick Wayne said in a news release Friday. “Our earnings substantially benefited from our correspondent arrangement with the Chicago-based ACAP.”

Wayne also said that loans that borrowers who received loan deferrals were paying back at a higher rate than expected. 

Past due loans totaled $18.9 million, or 2.03% of all loans, at Sept. 30, versus $16.4 million, or 1.69% of loans, a year earlier. 

Northeast Bank (Nasdaq: NBN) has assets of $1.26 billion. It has branches in Auburn, Augusta, Bethel, Brunswick, Buckfield, Harrison, Poland, Portland and South Paris.

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