Northeast Bancorp (NBN) has reported a 91.32 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $3.46 million, or $0.39 a share in the quarter, compared with $1.81 million, or $0.19 a share for the same period last year.

Revenue during the quarter surged 30.13 percent to $14.38 million from $11.05 million in the previous year period. Net interest income for the quarter rose 34.63 percent over the prior year period to $12.46 million. Non-interest income for the quarter rose 13.42 percent over the last year period to $2.31 million.

Northeast Bancorp has made provision of $0.38 million for loan losses during the quarter, up 62.71 percent from $0.24 million in the same period last year.

Net interest margin improved 86 basis points to 5.11 percent in the quarter from 4.25 percent in the last year period. Efficiency ratio for the quarter improved to 59.88 percent from 74.52 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.

"Our strong growth in fiscal year 2017 continued in the third quarter," said Richard Wayne, president and chief executive officer. "We achieved record earnings of 39 cents per share through solid loan volume, purchased loan transactional income and SBA gains. Our Loan Acquisition and Servicing Group produced $89.7 million of loans, our SBA Division closed $22.6 million of loans, the purchased loan portfolio yielded 11.9%, and the SBA gain on sale was $951 thousand. In addition, in the current quarter, we strategically repositioned our balance sheet with the payoff of $48.0 million of secured loans to broker-dealers and the sale of a commercial loan portfolio of $18.3 million. The payoff of these lower yielding assets provides capacity for higher yielding loan growth in the future. This quarterly activity helped drive our return on equity to 12.0%, our return on assets to 1.4%, and our efficiency ratio to 59.9%."

Total assets stood at $1,027.05 million as on Mar. 31, 2017, up 11.31 percent compared with $922.69 million on Mar. 31, 2016. On the other hand, total liabilities stood at $908.37 million as on Mar. 31, 2017, up 12.40 percent from $808.16 million on Mar. 31, 2016.

Net loans stood at $738.35 million as on Mar. 31, 2017, up 5.96 percent compared with $696.85 million on Mar. 31, 2016. Deposits stood at $849.48 million as on Mar. 31, 2017, up 12.82 percent compared with $752.95 million on Mar. 31, 2016.

Investments stood at $98.86 million as on Mar. 31, 2017, up 3.15 percent or $3.02 million from year-ago. Shareholders equity stood at $118.68 million as on Mar. 31, 2017, up 3.62 percent or $4.15 million from year-ago.

Return on average assets moved up 57 basis points to 1.37 percent in the quarter from 0.80 percent in the last year period. At the same time, return on average equity increased 570 basis points to 12.03 percent in the quarter from 6.33 percent in the last year period.

Nonperforming assets moved up 96.85 percent or $9.14 million to $18.58 million on Mar. 31, 2017 from $9.44 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 1.81 percent in the quarter, up from 1.02 percent in the last year period.

Northeast Bancorp witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 12.46 percent for the quarter, down from 13.57 percent for the previous year quarter. Equity to assets ratio was 11.55 percent for the quarter, down from 12.41 percent for the previous year quarter. Book value per share was $13.46 for the quarter, up 9.70 percent or $1.19 compared to $12.27 for the same period last year.