Northeast Bancorp annual earnings rise 79%

Northeast Bancorp experienced a bit of glass half full-half empty as it closed its fourth quarter and its fiscal 2010 year.The Lewiston, Maine-based parent of Northeast Bank in Portsmouth reported a quarterly income of $43,058, or just one penny per share, according to a company release.This is a drop of some 79 percent from net income of $208,909 in the fourth quarter of last year.The good news is, for the fiscal year ended June 30, Northeast Bancorp posted earnings of $1.72 million, or $0.63 per share, as compared to $958,989, or $0.27 per share in fiscal 2009 – an increase of 79 percent.The bank said one-time expenses of $386,000 for the quarter and $540,514 for the year were associated with the previously announced pending FHB Formation LLC transaction.”The fiscal fourth quarter results also include a non-cash goodwill impairment charge of $407,897,” said company officials. “The goodwill impairment charge has no impact on Northeast’s regulatory capital ratios because goodwill is not included in regulatory capital and, as a non-cash charge, will not affect Northeast’s overall liquidity position.”Total assets as of June 30 were $622 million, an increase of $24 million (4 percent), compared to $598 million in assets for the previous fiscal year.”We are pleased with the overall growth and performance at Northeast Bancorp this year. These results demonstrate an improving net interest margin year over year, and continued growth in noninterest income,” said Jim Delamater, president and CEO of Northeast Bancorp. “With our pending transaction, Northeast is positioned to create even greater value for our customers, shareholders, employees and the community.”On March 31, Northeast Bancorp announced it agreed to sell $16.2 million of newly-issued common shares to several independent accredited investors through FHB Formation LLC, an entity created for the investment. In addition to their purchase of these shares, the investors will also purchase approximately 40 percent of Northeast’s outstanding common shares from existing shareholders for approximately $12.9 million.Northeast Bank offers banking, investment and insurance services from 25 locations across Maine and New Hampshire, including Portsmouth. – CINDY KIBBE/NEW HAMPSHIRE BUSINESS REVIEW