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 Video: What is a Stock Split?
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| Northeast Bancorp provides a range of banking services to individual and corporate customers throughout south-central and western Maine and conducts loan purchasing and origination activities nationwide. Co. conducts its loan-related activities through two primary channels: the National Lending Division and the Community Banking Division. Co.'s deposit products consist of demand deposit, NOW, money market, savings and certificate of deposit accounts. Co. also provides telephone banking, online banking and bill payment, mobile banking and remote deposit capture services. Co.'s online deposit program, ableBanking, provides an additional channel through which to obtain key deposits. According to our NBN split history records, Northeast Bank has had 2 splits. | |
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Northeast Bank (NBN) has 2 splits in our NBN split history database. The first split for NBN took place on December 18, 1995. This was a 2 for 1
split, meaning for each share of NBN owned pre-split, the shareholder now owned 2 shares. For example, a 1000 share position pre-split, became a 2000 share position following the split. NBN's second split took place on December 16, 1997. This was a 3 for 2
split, meaning for each 2
shares of NBN owned pre-split, the shareholder now owned 3 shares. For example, a 2000 share position pre-split, became a 3000 share position following the split.
When a company such as Northeast Bank splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business.
Looking at the NBN split history from start to finish, an original position size of 1000 shares would have turned into 3000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Northeast Bank shares, starting with a $10,000 purchase of NBN, presented on a split-history-adjusted basis factoring in the complete NBN split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
08/17/2012 |
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| End date: |
08/15/2022 |
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| Start price/share: |
$8.69 |
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| End price/share: |
$42.55 |
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| Starting shares: |
1,150.75 |
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| Ending shares: |
1,243.45 |
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| Dividends reinvested/share: |
$0.88 |
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| Total return: |
429.09% |
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| Average Annual Total Return: |
18.13% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$52,917.83 |
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| Years: |
10.00 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
08/17/2012 |
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| End date: |
08/15/2022 |
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| Start price/share: |
$8.69 |
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| End price/share: |
$42.55 |
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| Dividends collected/share: |
$0.88 |
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| Total return: |
399.77% |
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| Average Annual Total Return: |
17.46% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$49,991.94 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 12/18/1995 | 2 for 1
| | 12/16/1997 | 3 for 2
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