Northeast Bank reports earnings, dividend actions, loan activity, and operating updates for a Maine-based bank that combines community banking with nationwide specialty lending. The bank provides personal and business banking in Maine, offers digital savings products through ableBanking, and generates lending activity through its National Lending Division and Small Business segment.
Recurring developments include commercial loan originations and purchases, commercial real estate exposure, SBA and insured small-balance business lending, deposit and funding trends, FHLB advance activity, cash management and treasury services, quarterly conference calls, and management or governance changes.
Northeast Bank (NASDAQ: NBN) announced a Loan Purchase and Sale Agreement with The Loan Source, Inc., selling $457.6 million in loans tied to the Paycheck Protection Program (PPP). This sale will generate a pre-tax gain of $9.8 million in the current fiscal quarter. Through June 24, 2020, Loan Source is closing on a total of $1.27 billion in PPP loans. The Bank expects to continue originating PPP loans, albeit at reduced volumes. The relationship with Loan Source may yield additional correspondent fees and servicing income over time.