Northeast Bancorp (NBN) has reported a 77.75 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $3.10 million, or $0.35 a share in the quarter, compared with $1.74 million, or $0.18 a share for the same period last year.
Revenue during the quarter grew 27.48 percent to $13.90 million from $10.90 million in the previous year period. Net interest income for the quarter rose 16.33 percent over the prior year period to $11.83 million. Non-interest income for the quarter rose 65.64 percent over the last year period to $2.69 million.
Northeast Bancorp has made provision of $0.63 million for loan losses during the quarter, down 29.91 percent from $0.90 million in the same period last year.
Net interest margin improved 7 basis points to 4.94 percent in the quarter from 4.87 percent in the last year period. Efficiency ratio for the quarter improved to 61.67 percent from 69.48 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"I am very pleased with the progress we made this quarter," said Richard Wayne, president and chief executive officer. "We reached a great milestone for the Company by surpassing $1 billion in assets and we also achieved record earnings of 35 cents per share. In addition, we had solid loan volume, purchased loan transactional income and SBA gains. Our Loan Acquisition and Servicing Group produced $91.7 million of loans, our SBA Division closed $25.3 million of loans, the purchased loan portfolio yielded 13%, and the SBA gain on sale was $1.7 million. This balance sheet growth and solid income from the Loan Acquisition and Servicing Group and the SBA Division helped drive our efficiency ratio to 61.7%."
Liabilities outpace assets growth
Total assets stood at $1,012.66 million as on Dec. 31, 2016, up 13.26 percent compared with $894.10 million on Dec. 31, 2015. On the other hand, total liabilities stood at $897.72 million as on Dec. 31, 2016, up 15.17 percent from $779.49 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $763.83 million as on Dec. 31, 2016, up 12.77 percent compared with $677.31 million on Dec. 31, 2015. Deposits stood at $839.57 million as on Dec. 31, 2016, up 15.52 percent compared with $726.77 million on Dec. 31, 2015.
Investments stood at $90.53 million as on Dec. 31, 2016. Shareholders equity stood at $114.94 million as on Dec. 31, 2016, up 0.29 percent or $0.33 million from year-ago.
Return on average assets moved up 44 basis points to 1.24 percent in the quarter from 0.80 percent in the last year period. At the same time, return on average equity increased 485 basis points to 10.92 percent in the quarter from 6.07 percent in the last year period.
Nonperforming assets moved up 81.82 percent or $6 million to $13.34 million on Dec. 31, 2016 from $7.34 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 1.32 percent in the quarter, up from 0.82 percent in the last year period.
Capital ratios deteriorate
Northeast Bancorp witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 12.60 percent for the quarter, down from 14.31 percent for the previous year quarter. Equity to assets ratio was 11.35 percent for the quarter, down from 12.82 percent for the previous year quarter. Book value per share was $13.02 for the quarter, up 8.14 percent or $0.98 compared to $12.04 for the same period last year.
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