Banking roundup: mixed financial results for 2020's first quarter
Portland-based Northeast Bank (Nasdaq: NBN) this week reported a 60% year-over-year drop in quarterly earnings, resulting mainly from provisions for loan losses.
The bank reported net income of $1.9 million, or 21 cents per diluted common share, for the quarter ended March 31, compared to $4.8 million, or 52 cents per share, for the same quarter in 2019.
Earnings for the nine months ended March 31 were $11.5 million, or $1.25 per diluted common share, compared to $14.5 million, or $1.58 per share, for the same period last year.
Northeast increased its provision for the loan losses by $3.1 million during the quarter, according to its filing with the Securities and Exchange Commission. For the nine months ending March 31, past due loans totaled $36.4 million, or 3.52% of total loans, compared to past due loans of $14.6 million, or 1.50% of total loans, for the previous nine months.
The increase was primarily due to a total of 27 loans becoming past due during the most recent nine months, the bank said.
Northeast also originated 194 loans totaling $37.2 million through the recently enacted Paycheck Protection Program, CEO Rick Wayne noted in a press release.
“While we did not envision that the market event would be this global pandemic, our long-standing credit discipline has generated a strong loan portfolio with a weighted average loan-to-value of approximately 53%,” Wayne said.
The bank reported total assets of $1.23 billion, an increase of $77.6 million, or 6.7%, from the total of $1.15 billion on June 30, 2019.
In other banking results, First Bancorp (Nasdaq: FNLC), the Damariscotta-based parent company of First National Bank, reported its quarterly net income increased 5.5% over the same quarter last year.
Earning for the quarter ended March 31 were $6.5 million, up $339,000 from the $6.2 million reported March 31, 2019. Earnings per common share on a fully diluted basis were up 3 cents to 60 cents per share, an increase of 5.3% from the prior year.
Total assets on March 31, 2020, were $2.14 billion, up $67.6 million in the first quarter and up $145 million from a year ago.
“Against a backdrop of unprecedented challenges brought about by the outbreak of COVID-19, I’m pleased to share that the First Bancorp posted strong operating results in the first quarter,” said President and CEO Tony C. McKim in a press release. “Earning asset growth was again a driving factor in our performance, as was growth in non-interest income.”
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