Good day everyone, and welcome everyone to the Northeast Bancorp Fiscal Year 2017 Fourth Quarter Earnings Results Conference Call. This call is being recorded. With us today from the Company is Rick Wayne, President and Chief Executive Officer; and Brian Shaughnessy, Chief Financial Officer. Earlier this morning an investor presentation was uploaded to the Company's website, which we will reference in this morning's call. The presentation can be accessed at the Investor Relations section of northeastbank.com under Events & Presentations. You may find it helpful to download this investor presentation and follow along during the call. Also, this call will be available for rebroadcast on the website for future use. The question-and-answer session for this call will be conducted electronically following the presentation. Please note that this presentation contains forward-looking information for the Northeast Bancorp. Such information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve significant risks and uncertainties. Actual results may differ materially from the results discussed on the forward-looking statements. At this time, I would like to turn the call over to Rick Wayne. Please go ahead, sir.

Good morning and thank you all for joining us today. With me is, Brian Shaughnessy, our Chief Financial Officer and Treasurer. After the close of the market yesterday, we announced record earnings, with quarterly net income of $4 million or $0.45 per diluted common share and annual net income of $12.3 million or $1.38 per diluted common share. Earnings for both the quarter and the year were positively affected by strong loan originations; transactional income from LASG purchased loans and gains on the sale of SBA loans originated by our SBA division, also while keeping our operating expenses in check. This quarterly activity helped to drive our return on equity to 13.3%, our return on assets to 1.6% and our efficiency ratio to 56.3%. Turning to slide 3, bank-wide, for the quarter, we generated $152.2 million of loans, including $67.9 million of LASG originated loans and $45.1 million of LASG purchased loans; $19 million of loans in our SBA division and $20.2 million of loans in our community banking division, while generating a net gain of $1.9 million on the sale of $19 million of SBA loans. Net interest margin for the fourth quarter was 5.55%, up from 5.11% for the linked quarter ended March 31. Our purchased loan yield for the quarter was 13.6%, which included $3.5 million of transactional interest income. Net loan growth for the quarter was $37.5 million, representing a 5.1 increase over the linked quarter ending March 31. For the year the company generated $516.5 million of loans which includes a $112.8 million of purchase loans, $237.7 million of LASG originated loans, $82 million of SBA originations. And $84 of community bank origination which included 76.4 million in residential loans and 7.6 million in commercial loan originations. We sold $53.8 million of SBA loans for…

Thanks, Rick and good morning everyone. I'm picking it up on the Slide 12 to provide a little more color on our financial results. As Rick noted, it was a record quarter for earnings with net income of approximately $4 million or $0.45 per share. Diluted earnings per share were up $0.06 from the linked quarter and up $0.21 from the comparable fiscal year of 2016 quarter. The solid results were largely driven by purchased loan transactional interest income of $3.5 million, the gain on the sale of SBA loans into the secondary market of $1.9 million, and the benefit of a larger average balance sheet. These changes partially offset by an increase in noninterest expense compared to the linked quarter. Turning to Slide 13, over the past year we have seen net loan portfolio growth of approximately $87 million. Excluding the broker deal loans pay offs of $48 million and the sale of the community bank commercial portfolio of $18.3 million in Q3 of this fiscal year, the loan portfolio had net growth of approximately $153 million or 24% over the trailing 12-month period. The majority of the growth comes from our LASG portfolio with approximately $351 million of purchases and originations in the current year. As shown in the chart, in the trailing 12-month period since June 30, 2016, we have closed approximately $82 million of SBA loans and we've sold approximately $52 million of the guaranteed portion of these loans into the secondary market. These loan sales have contributed $5.3 million to revenue in the current fiscal year. While bank-wide loan production has been strong, increases have been significantly offset by the following. A high level of pay downs and amortization in the LASG purchased and originated portfolios, which were $188 million over the past fiscal year…

[Operator Instructions] And our first question comes from the line of Alex Twerdahl from Sandler O'Neill. Your line is now open.

Its Jeff Kitsis for Alex this morning. Another very nice quarter for LASG originated loan. I was wondering if you could talk a little bit about completion of those origination and also that has to be above the particular part of the business might be going forward.

Sure, a very significant portion of those loans in, well our corporate is called our portfolio finance category which are loans made to non-bank lenders to help them leverage their own lending activities all of which their loans are commercial. So, an example of that kind of loan would be let us say that there is a borrower in New York that once that wants to acquire a rent controlled building of 10 or 15 units and the plan is to pay money to the tenants and then move them out so that they can renovate the building and rent the apartments at market rates. For a variety of reasons that may not be a loan that that building owner could go directly to a bank and borrow money, so instead they go to a non-bank lender, and this is not what the numbers would be, but it might take easier for everyone to follow. Let’s say that what I'm describing cost $1 million dollars, again obviously those are not the real numbers and the borrower puts, the owner puts in 250,000 of equity and the private lender owns, lends 750 and then we may lend 70% of that to the non-bank lender and get assignment of the note of mortgage. So, in our collateral is the note and mortgage but the underlying real estate which secures all of that are 500,000 is 50% of the value of the underlying real estate. And these borrowers if I were to describe them, they typically fund our family offices sometimes individuals with their own money but what we are doing is our product is a relatively low LTV product for us. And we are getting attractive pricing at an average front plus 2.5% or 3. And the reason is those kinds of…

And one last question here on the tax rate. I was hoping you could give some color on that, the changes we saw their last quarter?

As Rick described in our national lending platform, we have to consider amongst a lot of things, that the apportionments to certain states that we do business in. And if you considered a large regional bank that operates in 10 to 15 states they may, they have tax obligations in those states. but they may have consistent apportionments because they are doing typical branch banking activities in those states. And they may not change from year to year. It’s a little bit different from us because of our national lending platform and in our purchase platform where in one year we may have transactional income of $3 million in Florida and then the next year we may have $3 million in California or Arizona or some different state. And so, our apportionments may change from year to year, part of our process we go through our yearend provision and work with the third-party tax compliance team. And some of the apportionments factors changed at the end of the year and we needed to provide for that. And that’s really one of the big drivers is change of the apportionments from year to year.

[Operator Instructions] And I'm not showing any further questions over the phone lines. Now I would like to turn the call back over to Rick Wayne for any closing remarks.