LEWISTON, Maine, June 22, 2009 (GLOBE NEWSWIRE) -- Despite the recession, banks are generating more fee income from insurance brokerage services, and Northeast Bancorp (Nasdaq:NBN) has become one of the top five banks of its size nationally at producing that revenue, according to a recent research report. According to the Michael White - Prudential Bank Insurance Fee Income Report, released this month, Northeast ranked 4th in country for the 2008 calendar year among bank holding companies with assets between $500 million and $1 billion.
"Northeast Bank Insurance Group, a subsidiary of Northeast Bank is a major contributor to the company's revenue stream and a vital component of our strategic plan to continue to diversify our offerings and provide our customers with banking, investment and insurance products to best serve their needs," said Jim Delamater, President and CEO of Northeast Bancorp.
The company has made a huge push into insurance sales in the past two years, acquiring eight independent agencies. These acquisitions give Northeast a broad market in Maine and New Hampshire. For several years, Northeast has derived 40 percent or more of its revenue from noninterest sources and of that; approximately 21 percent is specifically from the sale of insurance.
"It is important that we continue to focus on our mission of meeting the financial needs of our customers and communities, while bringing the necessary talent and products to the market. We are finding that customers are returning to their trusted community banker for all types of financial advice, including ways to save on insurance and improve coverage," continued Delamater.
"I'm pleased that we are being recognized nationally for our efforts. It demonstrates we have a marriage of products and services that work for our customers, while also contributing to the long-term health of the company."
The report measures and benchmarks banks' performance in generating insurance brokerage income, which overall saw an increase for the year despite the current economic conditions. The findings are based on data from all 7,495 commercial and FDIC-supervised savings banks operating at the end of 2008.
About the Michael White Associates (MWA)
MWA is a bank insurance consulting firm headquartered in Radnor, PA and at www.BankInsurance.com. The annual Michael White-Prudential Bank Insurance Fee Income Report(tm) and Michael White-ABIA Bank Annuity Fee Income Report(tm) provide, respectively, comprehensive analyses of bank insurance brokerage and bank annuity commission income. Additionally, the MWA Fee Income Ratings Reports(tm) compare, rank and rate a particular financial institutions' insurance or other noninterest fee income programs national, regionally, statewide and in its asset-peer group. Copies of MWA reports can be ordered by calling (610) 254-0440 or by visiting www.BankInsurance.com.
About Northeast Bank Insurance Group, Inc.
Northeast Bank Insurance Group, Inc., a wholly owned subsidiary of Northeast Bank, headquartered in Rangeley, Maine, provides comprehensive insurance and financial services with an emphasis on needs-based advice to meet the demands of its consumer and business customers. The full spectrum of insurance services includes property and casualty for personal and business purposes.
About Northeast Bank
Northeast Bank, a leader in delivering one-stop shopping for financial services, is headquartered in Lewiston, Maine and is a wholly-owned subsidiary of Northeast Bancorp (Nasdaq:NBN). The Company has approximately $607 million in assets as of March 31, 2009 and derives its income from a combination of traditional banking services and non-traditional financial products and services including insurance and investments; operating eleven traditional bank branches, fourteen insurance offices and three investment centers that serve seven counties in Maine and two in New Hampshire. Information regarding Northeast Bank can be found on its website at www.northeastbank.com or by contacting 1-800-284-5989.
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