Earnings down at Northeast Bancorp
Northeast Bancorp's first quarter, year-over-year earnings dropped 84%, from $430,565 to $69,116, because of recent market conditions, according to a press release from the company.
James Delamater, president and CEO of Northeast Bancorp, told Mainebiz this morning that the decline in earnings was the result of one-time charges related to the write off of $391,000 in various stock investments -- such as securities in Fannie Mae and Freddie Mac -- that have lost their value because of the tanking market. Delamater said the company decided to identify and write off all the problem investments in its portfolio now. "The good news is it's a one-time charge," Delamater says. "God willing [the investments] will be worth more later."
Meanwhile, the company's net interest income and non-interest income increased 18%, from approximately $5.6 million in last year's first quarter to $6.6 million this year. The company board of directors also said a dividend of $0.09 per share would be paid on Nov. 21.
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