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Northeast BANK Northeast Bank Reports Record Third Quarter Results and Declares Dividend April 21 , 2021 PORTLAND , Maine , April 21 , 2021 ( GLOBE NEWSWIRE ) -- Northeast Bank ( the " Bank " ) ( NASDAQ : NBN ) , a Maine - based full - service bank , today reported record net income of $ 34.2 million , or $ 4.06 per diluted common share , for the quarter ended March 31 , 2021 , compared to net income of $ 1.9 million , or $ 0.21 per diluted common share , for the quarter ended March 31 , 2020. Net income for the nine months ended March 31 , 2021 was $ 50.1 million , or $ 6.01 per diluted common share , compared to $ 11.5 million , or $ 1.25 per diluted common share , for the nine months ended March 31 , 2020. Net income for the three and nine months ended March 31 , 2021 included $ 33.0 million of net gains on the sale of Paycheck Protection Program ( " PPP " ) loans originated and sold during the quarter ended March 31 , 2021 under the current round of PPP , which had an after - tax earnings per diluted common share impact of $ 2.75 and $ 2.80 , respectively . The Board of Directors declared a cash dividend of $ 0.01 per share , payable on May 20 , 2021 , to shareholders of record as of May 6 , 2021 . " We reported record results in our third fiscal quarter , ” said Rick Wayne , Chief Executive Officer . " Over the past six months in anticipation of another round of PPP loans , we invested in technology , marketing and other initiatives to be able to source , underwrite and fund a significant volume of PPP loans in the event the program was reinstated . We are proud to report that our planning and investment paid off . Through March 31 , we originated $ 2.25 billion of PPP loans to over 22,000 borrowers with over 286,000 associated jobs . Of the $ 2.25 billion of originated PPP loans , we sold $ 2.14 billion to The Loan Source , Inc. ( " Loan Source " ) during our third fiscal quarter , generating $ 33.0 million of net gains . We anticipate selling the remaining loans plus any additional PPP originations to Loan Source in our fourth fiscal quarter . In addition , we generated $ 6.0 million of correspondent fee income under the arrangement with Loan Source and ACAP SME , LLC . Our national origination and purchase business remained strong , with a total of $ 109.2 million of originated and purchased loans during the quarter . " Mr. Wayne continued , “ As a result , we are reporting earnings of $ 4.06 per diluted common share , a return on average equity of 71.1 % , a return on average assets of 7.0 % , and an efficiency ratio of 16.6 % for the quarter . " As of March 31 , 2021 , total assets were $ 1.71 billion , an increase of $ 457.1 million , or 36.3 % , from total assets of $ 1.26 billion as of June 30 , 2020 . 1. Cash and short - term investments increased by $ 320.8 million , or 223.3 % , primarily due to the timing of a large deposit account related to PPP payoff collections that is subject to significant fluctuation given the PPP activity during the quarter ended March 31 , 2021. Cash and short - term investments may remain at an elevated level while PPP collections , including forgiveness amounts , continue , depending on the timing of receipts and remittances of cash amounts . 2. The following table highlights the changes in the loan portfolio for the three and nine months ended March 31 , 2021 : National Lending Purchased National Lending Originated SBA National Community Banking Total National Lending Purchased National Lending Originated SBA National Community Banking Total March 31 , 2021 Balance Loan Portfolio Changes Three Months Ended March 31 , 2021 December 31 , 2020 Balance Change ( $ ) Change ( % ) ( Dollars in thousands ) $ 433,497 $ 418,584 $ 14,913 3.56 % 473,930 478,423 ( 4,493 ) ( 0.94 % ) 42,707 48,797 ( 6,090 ) ( 12.48 % ) 52,674 55,773 ( 3,099 ) ( 5.56 % ) $ 1,002,808 $ 1,001,577 $ 1,231 0.12 % Nine Months Ended March 31 , 2021 March 31 , 2021 Balance June 30 , 2020 Balance Change ( $ ) Change ( % ) ( Dollars in thousands ) $ 433,497 $ 386,624 $ 46,873 473,930 467,612 6,318 12.12 % 1.35 % 42,707 47,095 ( 4,388 ) ( 9.32 % ) 52,674 70,271 ( 17,597 ) ( 25.04 % ) $ 1,002,808 971,602 $ 31,206 3.21 % Loans generated by the Bank's National Lending Division for the quarter ended March 31 , 2021 totaled $ 109.2 million , which consisted of $ 39.9 million of purchased loans , at an average price of 93.8 % of unpaid principal balance , and $ 69.3 million of originated loans . Additionally , the Bank originated $ 2.25 billion of loans in connection with the PPP , of which $ 2.14 billion were sold during the quarter ended March 31 , 2021. The Bank recorded a net gain of $ 33.0 million from the sale of PPP loans , primarily resulting from the recognition of net deferred origination fees upon the sale of the loans . The remaining $ 106.1 million of PPP loans are classified as held for sale at March 31 , 2021 , net of unamortized deferred