The Bank Slate


Northeast Bank in Maine bulks up with CRE loan purchases

Northeast Bank in Portland, Maine, disclosed that it has lined up the purchase of nearly $1.2 billion of commercial real estate loans.

The $1.7 billion-asset bank said in a press release that, since Sept. 30, it has bought, or has agreed to buy, the loans through a series of agreements. The bank did not disclose the identities of the sellers.

Northeast said its CRE portfolio totaled $996.8 million at the end of the third quarter.

The bank said it has funded and intends to fund the purchase of the loans primarily with Federal Home Loan Bank advances, brokered deposits and non-brokered deposits acquired through listing services.

“We are very pleased to announce this purchased loan activity,” Rick Wayne, the bank’s CEO, said in the release.

“The current interest rate and liquidity environment has presented this opportunity to us and the strength of our balance sheet and operations, including our strong capital position, has allowed us to be successful in seizing the opportunities that have arisen recently,” Wayne added.

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