Northeast Bank Announces Share Repurchase Program

Rhea-AI Summary

Northeast Bank (NASDAQ: NBN) has announced a Board-approved share repurchase program to buy back up to $10.2 million of its common stock, equating to approximately 600,000 shares or 7.3% of outstanding shares. The repurchases will occur in open market transactions and are contingent on various factors including market conditions and liquidity priorities. The program is effective until July 21, 2021, with prior plans allowing 900,000 shares to be repurchased expiring on October 21, 2020.

Positive

• Share repurchase program potentially enhances shareholder value by reducing outstanding shares.
• Significant buyback amount of $10.2 million indicates management's confidence in the company's future performance.

Negative

• None.

PORTLAND, Maine, July 21, 2020 (GLOBE NEWSWIRE) -- Northeast Bank (the “Bank”) (NASDAQ: NBN) announced today that its Board of Directors has approved a share repurchase program to purchase up to $10.2 million of common stock, or up to 600,000 shares of its common stock, representing approximately 7.3% of the Bank’s outstanding common stock.

Repurchases under this program may be made in open market transactions.  The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The repurchase program does not obligate the Bank to purchase any particular number of shares.

The repurchase program may be suspended or terminated at any time without prior notice, and it will expire July 21, 2021.

As of July 21, 2020, the Bank had 46,902 shares available to repurchase under its previously announced share repurchase plan, which will expire on October 21, 2020. The previously announced share repurchase plan allowed for the Bank to repurchase up to 900,000 shares of its voting common stock.

About Northeast Bank

Northeast Bank (NASDAQ: NBN) is a full-service bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via nine branches. Our Loan Acquisition and Servicing Group purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Bank’s control. The Bank’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the length and extent of the economic contraction resulting from the COVID-19 pandemic; continued deterioration in employment levels, general business and economic conditions on a national basis and in the local markets in which the Bank operates, including changes which adversely affect borrowers’ ability to service and repay our loans; changes in customer behavior due to changing political, business and economic conditions or legislative or regulatory initiatives; turbulence in the capital and debt markets; changes in interest rates and real estate values; increases in loan defaults and charge-off rates; decreases in the value of securities and other assets, adequacy of loan loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changing government regulation; competitive pressures from other financial institutions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank’s Annual Report on Form 10-K and updated by our Quarterly Reports on Form 10-Q and other filings submitted to the Federal Deposit Insurance Corporation. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events.

For More Information:

Jean-Pierre Lapointe, Chief Financial Officer
Northeast Bank, 27 Pearl Street, Portland, ME 04101
207.786.3245 ext. 3220
www.northeastbank.com

FAQ

What is the purpose of Northeast Bank's share repurchase program announced on July 21, 2020?

The share repurchase program aims to purchase up to $10.2 million of common stock, which could enhance shareholder value by reducing the number of outstanding shares.

How much common stock is Northeast Bank allowed to repurchase under this program?

Northeast Bank's Board approved the repurchase of up to 600,000 shares of common stock, representing approximately 7.3% of its outstanding shares.

When does the share repurchase program for Northeast Bank expire?

The share repurchase program is set to expire on July 21, 2021.

What factors will affect the timing of Northeast Bank's share repurchases?

The timing and number of shares repurchased will depend on market conditions, price, and corporate liquidity requirements.

What was the status of Northeast Bank's previous share repurchase plan as of July 21, 2020?

As of July 21, 2020, Northeast Bank had 46,902 shares available to repurchase under its previous plan, which allowed for the repurchase of up to 900,000 shares.