Page 1

Northeast BANK Northeast Bank Reports First Quarter Results and Declares Dividend October 27 , 2021 PORTLAND , Maine , Oct. 27 , 2021 ( GLOBE NEWSWIRE ) -- Northeast Bank ( the " Bank " ) ( NASDAQ : NBN ) , a Maine - based full - service bank , today reported net income of $ 9.9 million , or $ 1.20 per diluted common share , for the quarter ended September 30 , 2021 , compared to net income of $ 7.8 million , or $ 0.94 per diluted common share , for the quarter ended September 30 , 2020 . The Board of Directors declared a cash dividend of $ 0.01 per share , payable on November 23 , 2021 , to shareholders of record as of November 9 , 2021 . Discussing results , Rick Wayne , Chief Executive Officer , said " We began the new fiscal year with a strong first quarter . Our National Lending Division generated $ 129.8 million in originations and purchases for the quarter , growing the National Lending portfolio by $ 38.6 million , or 4.0 % over June 30 , 2021. Year over year , we increased the National Lending Division average loan portfolio by $ 147.2 million , or 17.8 % , compared to the quarter ended September 30 , 2020 , while the yield remained strong at 7.65 % . We continued to benefit from our correspondent arrangement with The Loan Source , Inc. and NEWITY ( formerly ACAP SME , LLC ) , generating $ 7.8 million of correspondent fee income , attributable to the significant PPP loan purchases by Loan Source . We earned $ 1.20 per diluted common share , a return on average equity of 16.7 % , a return on average assets of 2.4 % and an efficiency ratio of 49.0 % . " As of September 30 , 2021 , total assets were $ 1.38 billion , a decrease of $ 791.9 million , or 36.4 % , from total assets of $ 2.17 billion as of June 30 , 2021 , primarily due to the $ 818.0 million , or 81.0 % , decrease in cash and short - term investments , as discussed below . The principal components of the changes in the balance sheet follow : 1. The following table highlights the changes in the loan portfolio for the three months ended September 30 , 2021 : National Lending Purchased National Lending Originated SBA Community Banking Total September 30 , 2021 Balance June 30 , 2021 Balance $ 432,083 $ Change ( $ ) ( Dollars in thousands ) 429,054 $ Change ( % ) 3,029 0.71 % 559,080 523,535 35,545 6.79 % 38,482 39,549 ( 1,067 ) ( 2.70 % ) 44,702 48,486 ( 3,784 ) ( 7.80 % ) $ 1,074,347 $ 1,040,624 $ 33,723 3.24 % Loans generated by the Bank's National Lending Division for the quarter ended September 30 , 2021 totaled $ 129.8 million , which consisted of $ 35.3 million of purchased loans , at an average price of 95.5 % of unpaid principal balance , and $ 94.5 million of originated loans . Additionally , the Bank originated $ 6.3 million of Paycheck Protection Program ( " PPP " ) loans in the quarter ended September 30 , 2021 , all of which were sold during the same quarter , recording a net gain of $ 86 thousand on the sales primarily resulting from the recognition of net deferred fees upon the sale of the loans . An overview of the Bank's National Lending portfolio follows : Loans purchased or originated during National Lending Portfolio Three Months Ended September 30 , Purchased 2021 Originated Total Purchased ( Dollars in thousands ) 2020 Originated Total the period : Unpaid principal balance Net investment basis $ 37,034 $ 35,357 94,485 $ 94,485 131,519 $ 129,842 5,822 $ 40,908 $ 4,578 40,908 46,730 45,486 Loan returns during the period : Yield 9.26 % 6.38 % 7.65 % 9.11 % 7.04 % 7.98 % Total Return on Purchased Loans ( 1 ) 9.19 % N / A 9.19 % 9.11 % N / A 9.11 % Total loans as of period end : Unpaid principal balance $ Net investment basis 467,268 $ 432,083 559,080 $ 559,080 1,026,348 991,163 391,895 $ 358,203 462,974 462,974 $ 854,869 821,177