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United States

Profile: Northeast Bancorp (NBN.O)

NBN.O on Consolidated Issue listed on NASDAQ Global Market

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30 Sep 2016
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Northeast Bancorp, incorporated on March 20, 1987, is a bank holding company. The Company's banking subsidiary is Northeast Bank (the Bank). The Company provides a range of banking services to individual and corporate customers throughout south-central and western Maine and conducts loan purchasing and origination activities nationwide through its subsidiary.

Lending Activities

The Company conducts its loan-related activities through three primary channels: the Community Banking Division, the Loan Acquisition and Servicing Group (LASG), and the Small Business Administration (SBA) Division. The Community Banking Division originates loans directly to consumers and businesses located in its market area. The LASG purchases primarily performing commercial real estate loans, on a nationwide basis. The LASG also originates commercial real estate and commercial and industrial loans on a nationwide basis. The SBA Division originates loans to small businesses. As of June 30, 2016, its total loan portfolio (excluding loans held for sale) was $692.4 million, of which $203.4 million, or 29.4%, was originated by the Community Banking Division, $462.6 million, or 66.8%, was purchased or originated by the LASG and $26.4 million, or 3.8%, was originated by the SBA Division.

The Community Banking Division's loan portfolio consists primarily of loans to businesses and consumers in the Community Banking Division's market area. It originates residential mortgage loans secured by one- to four-family properties throughout Maine, southern New Hampshire, and Massachusetts. It also offers home equity loans and home equity lines of credit, which are secured by first or second mortgages on one- to four-family owner-occupied properties. As of June 30, 2016, portfolio residential loans totaled $111.3 million, or 16.1% of total loans. It originates multi-family and other commercial real estate loans secured by property located primarily in the Community Banking Division's market area. As of June 30, 2016, commercial real estate loans outstanding were $70.1 million, or 10.1% of total loans.

The Company originates commercial and industrial loans, including term loans, lines of credit and equipment and receivables financing to businesses located primarily in the Community Banking Division's market area. As of June 30, 2016, commercial and industrial loans outstanding were $16.1 million, or 2.3% of total loans. It originates, on a direct basis, automobile, boat and recreational vehicle loans. As of June 30, 2016, consumer loans outstanding were $6.0 million, or 0.9% of total loans. The Company's SBA loan portfolio includes owner and non-owner occupied loans.

Investment Activities

The Company's investment portfolio consists of the United States Government agency securities, agency mortgage-backed securities and other investment measured at net asset value. The Company's available-for-sale securities portfolio totaled $100.6 million, as of June 30, 2016.

Sources of Funds

Deposits are the primary source of the Bank's funds for lending and other investment purposes. It offers a line of deposit products to customers in western and south-central Maine. Its deposit products consist of demand deposit, negotiable order of withdrawal (NOW), money market, savings and certificate of deposit accounts. As of June 30, 2016, the Company had deposits of $800.4 million. As of June 30, 2016, the Company had $16.8 million of available borrowing capacity based on collateral.

Subsidiary Activities

As of June 30, 2016, the Bank had five non-bank subsidiaries: Northeast Bank Insurance Group, Inc. (NBIG); 200 Elm Realty, LLC; 500 Pine Realty, LLC; 17 Dogwood Realty, LLC, and Portland, Inc. NBIG holds the real estate formerly used in its insurance agency business.

Company Address

Northeast Bancorp

500 Canal St
LEWISTON   ME   04240-6594
P: +1207.7863245

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