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NorthEast Community Bancorp, Inc. Reports Results for the Three Months Ended March 31, 2025

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NorthEast Community Bancorp (NECB) reported net income of $10.6 million ($0.80 per basic share) for Q1 2025, down from $11.4 million ($0.87 per basic share) in Q1 2024. The bank maintained strong performance metrics with a 2.12% return on assets and 12.98% return on equity.

Key financial highlights include: Total assets decreased 3.8% to $1.9 billion, net loans decreased 4.8% to $1.7 billion, and deposits decreased 5.1% to $1.6 billion. The bank originated $170.1 million in new loans during Q1 2025, primarily in construction and multi-family segments. Asset quality remained robust with no non-performing loans and a 0.26% non-performing assets ratio.

Total stockholders' equity increased 2.8% to $327.2 million. Net interest income decreased 2.9% to $24.3 million, while the net interest margin declined to 5.11% from 5.75% year-over-year. The allowance for credit losses was $5.1 million, representing 0.30% of total loans.

NorthEast Community Bancorp (NECB) ha riportato un utile netto di 10,6 milioni di dollari (0,80 dollari per azione base) nel primo trimestre 2025, in calo rispetto agli 11,4 milioni di dollari (0,87 dollari per azione base) del primo trimestre 2024. La banca ha mantenuto solidi indicatori di performance con un rendimento degli attivi del 2,12% e un rendimento del capitale proprio del 12,98%.

I principali dati finanziari evidenziano: gli attivi totali sono diminuiti del 3,8% a 1,9 miliardi di dollari, i prestiti netti sono scesi del 4,8% a 1,7 miliardi di dollari, e i depositi sono calati del 5,1% a 1,6 miliardi di dollari. Nel primo trimestre 2025 la banca ha erogato nuovi prestiti per 170,1 milioni di dollari, soprattutto nei settori delle costruzioni e degli immobili multifamiliari. La qualità degli attivi è rimasta solida, senza prestiti in sofferenza e con un rapporto di attività non performanti dello 0,26%.

Il patrimonio netto totale degli azionisti è aumentato del 2,8% a 327,2 milioni di dollari. Il reddito netto da interessi è diminuito del 2,9% a 24,3 milioni di dollari, mentre il margine di interesse netto è sceso al 5,11% rispetto al 5,75% dell’anno precedente. L’accantonamento per perdite su crediti è stato di 5,1 milioni di dollari, pari allo 0,30% del totale dei prestiti.

NorthEast Community Bancorp (NECB) reportó un ingreso neto de 10,6 millones de dólares (0,80 dólares por acción básica) en el primer trimestre de 2025, una disminución respecto a los 11,4 millones de dólares (0,87 dólares por acción básica) en el primer trimestre de 2024. El banco mantuvo sólidos indicadores de desempeño con un retorno sobre activos del 2,12% y un retorno sobre el patrimonio del 12,98%.

Los aspectos financieros clave incluyen: los activos totales disminuyeron un 3,8% hasta 1,9 mil millones de dólares, los préstamos netos bajaron un 4,8% a 1,7 mil millones de dólares, y los depósitos cayeron un 5,1% a 1,6 mil millones de dólares. Durante el primer trimestre de 2025, el banco originó préstamos nuevos por 170,1 millones de dólares, principalmente en los segmentos de construcción y multifamiliares. La calidad de los activos se mantuvo sólida, sin préstamos en mora y con una proporción de activos no productivos del 0,26%.

El patrimonio total de los accionistas aumentó un 2,8% hasta 327,2 millones de dólares. Los ingresos netos por intereses disminuyeron un 2,9% a 24,3 millones de dólares, mientras que el margen neto de intereses bajó al 5,11% desde el 5,75% interanual. La provisión para pérdidas crediticias fue de 5,1 millones de dólares, representando el 0,30% del total de préstamos.

NorthEast Community Bancorp (NECB)� 2025� 1분기� 1,060� 달러(기본 주당 0.80달러)� 순이익을 보고했으�, 이는 2024� 1분기� 1,140� 달러(기본 주당 0.87달러)에서 감소� 수치입니�. 은행은 자산수익� 2.12%, 자기자본이익� 12.98%� 견고� 성과 지표를 유지했습니다.

주요 재무 하이라이트는 다음� 같습니다: � 자산은 3.8% 감소� 19� 달러, 순대출금은 4.8% 감소� 17� 달러, 예금은 5.1% 감소� 16� 달러입니�. 2025� 1분기 동안 은행은 주로 건설 � 다가� 부문에� 1� 7,010� 달러� 신규 대출을 실행했습니다. 자산 품질은 부� 대출이 없고 부� 자산 비율� 0.26%� 견고하게 유지되었습니�.

� 주주 자본은 2.8% 증가� 3� 2,720� 달러� 기록했습니다. 순이자수익은 2.9% 감소� 2,430� 달러였으며, 순이자마진은 전년 동기 대� 5.75%에서 5.11%� 하락했습니다. 대손충당금은 510� 달러� � 대출의 0.30%� 차지합니�.

NorthEast Community Bancorp (NECB) a déclaré un bénéfice net de 10,6 millions de dollars (0,80 dollar par action de base) pour le premier trimestre 2025, en baisse par rapport à 11,4 millions de dollars (0,87 dollar par action de base) au premier trimestre 2024. La banque a maintenu de solides indicateurs de performance avec un rendement des actifs de 2,12 % et un rendement des capitaux propres de 12,98 %.

Les faits marquants financiers clés comprennent : les actifs totaux ont diminué de 3,8 % pour atteindre 1,9 milliard de dollars, les prêts nets ont diminué de 4,8 % pour s’établir à 1,7 milliard de dollars, et les dépôts ont baissé de 5,1 % pour atteindre 1,6 milliard de dollars. La banque a accordé 170,1 millions de dollars de nouveaux prêts au cours du premier trimestre 2025, principalement dans les secteurs de la construction et du logement multifamilial. La qualité des actifs est restée solide, sans prêts non performants et avec un ratio d’actifs non performants de 0,26 %.

Les capitaux propres totaux des actionnaires ont augmenté de 2,8 % pour atteindre 327,2 millions de dollars. Le revenu net d’intérêts a diminué de 2,9 % pour s’établir à 24,3 millions de dollars, tandis que la marge nette d’intérêts a baissé à 5,11 % contre 5,75 % d’une année sur l’autre. La provision pour pertes sur prêts s’élève à 5,1 millions de dollars, représentant 0,30 % du total des prêts.

NorthEast Community Bancorp (NECB) meldete für das erste Quartal 2025 einen Nettogewinn von 10,6 Millionen US-Dollar (0,80 US-Dollar je Stammaktie), was einen Rückgang gegenüber 11,4 Millionen US-Dollar (0,87 US-Dollar je Stammaktie) im ersten Quartal 2024 darstellt. Die Bank hielt starke Leistungskennzahlen mit einer Gesamtkapitalrendite von 2,12 % und einer Eigenkapitalrendite von 12,98 % aufrecht.

Wesentliche finanzielle Highlights sind: Die Gesamtaktiva sanken um 3,8 % auf 1,9 Milliarden US-Dollar, die Nettokredite verringerten sich um 4,8 % auf 1,7 Milliarden US-Dollar und die Einlagen gingen um 5,1 % auf 1,6 Milliarden US-Dollar zurück. Im ersten Quartal 2025 vergab die Bank neue Kredite in Höhe von 170,1 Millionen US-Dollar, hauptsächlich im Bau- und Mehrfamilienhaussegment. Die Vermögensqualität blieb robust, ohne notleidende Kredite und mit einer Quote notleidender Vermögenswerte von 0,26 %.

Das gesamte Eigenkapital der Aktionäre stieg um 2,8 % auf 327,2 Millionen US-Dollar. Der Nettozinsertrag sank um 2,9 % auf 24,3 Millionen US-Dollar, während die Nettozinsmarge von 5,75 % im Vorjahresvergleich auf 5,11 % zurückging. Die Rückstellung für Kreditausfälle betrug 5,1 Millionen US-Dollar und entspricht 0,30 % der Gesamtkredite.

Positive
  • Strong asset quality with zero non-performing loans
  • Robust loan originations of $170.1 million in Q1
  • Increased stockholders' equity by 2.8% to $327.2 million
  • Strong performance metrics with 2.12% ROA and 12.98% ROE
Negative
  • Net income decreased from $11.4M to $10.6M year-over-year
  • Net interest margin declined from 5.75% to 5.11%
  • Total assets decreased 3.8% to $1.9 billion
  • Deposits decreased 5.1% to $1.6 billion

Insights

NECB reported solid Q1 performance with $10.6M profit despite margin pressure; strong fundamentals offset mild year-over-year profitability decline.

NorthEast Community Bancorp's Q1 2025 results demonstrate resilient profitability despite some margin compression in a challenging rate environment. The bank generated $10.6 million in net income ($0.80 per basic share), representing a moderate 7.0% decline from $11.4 million in Q1 2024. This slight earnings contraction should be viewed in context of the bank's exceptional performance metrics.

The bank's profitability remains impressively robust with a 2.12% return on average assets and 12.98% return on average equity - metrics that significantly outperform typical community bank averages. The 41.64% efficiency ratio indicates excellent expense management despite a 9.7% rise in non-interest expenses.

Asset quality metrics are outstanding with zero non-performing loans and minimal non-performing assets at just 0.26% of total assets. This pristine credit profile is remarkable for a construction lender, reflecting disciplined underwriting in "high demand-high absorption areas" as emphasized by management.

The balance sheet contraction (assets down 3.8% to $1.9 billion) appears strategic rather than problematic, with construction loan runoff ($138.9 million decrease) balanced by growth in multi-family loans (up $46.4 million). The bank's capital position strengthened further with equity-to-assets rising to 16.92% from 15.84% at year-end 2024.

The primary challenge evident in these results is net interest margin compression, which declined 11.1% to 5.11%. However, even at this reduced level, the margin remains substantially above industry averages. The strategic reduction in higher-cost brokered deposits demonstrates management's focus on optimizing funding costs.

Strong loan originations of $170.1 million in Q1, including $110.2 million in construction loans, indicate continued growth momentum despite higher rates. The bank's specialized construction lending focus continues to be a competitive advantage in specific high-demand markets.

WHITE PLAINS, N.Y., April 21, 2025 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company�), the parent holding company of NorthEast Community Bank (the “Bank�), generated net income of $10.6 million, or $0.80 per basic share and $0.78 per diluted share, for the three months ended March 31, 2025 compared to net income of $11.4 million, or $0.87 per basic share and $0.86 per diluted share, for the three months ended March 31, 2024.

Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated, “We are, once again, pleased to report another quarter of strong earnings due to the excellent performance of our loan portfolio. Despite the challenging economic operating environment thus far in 2025, loan demand is strong with originations and outstanding commitments robust and increasing. As in the past, construction lending in high demand-high absorption areas continues to be our focus.�

Highlights for the three months ended March 31, 2025 are as follows:

  • Performance metrics continue to be strong at March 31, 2025, with a return on average total assets ratio of 2.12%, a return on average shareholders� equity ratio of 12.98%, and an efficiency ratio of 41.64%.
  • Asset quality metrics continued to remain strong with no non-performing loans at either March 31, 2025 or December 31, 2024, and non-performing assets to total assets of 0.26% and 0.25% at March 31, 2025 and at December 31, 2024, respectively. Our allowance for credit losses related to loans totaled $5.1 million, or 0.30% of total loans at March 31, 2025 compared to $4.9 million, or 0.27% of total loans at December 31, 2024.
  • We increased total stockholders� equity by $8.9 million, or 2.8%, to $327.2 million, or 16.92% of total assets as of March 31, 2025 from $318.3 million, or 15.84% of total assets as of December 31, 2024.

Balance Sheet Summary

Total assets decreased $76.2Dz, or 3.8%, to $1.9 billion at March 31, 2025, from $2.0Dz at December 31, 2024. The decrease in assets was primarily due to decreases in net loans of $87.3 million and decreases of $1.0 million in accrued interest receivable, partially offset by increases in cash and cash equivalents of $11.2 million and increases of $1.3 million in equity securities.

Cash and cash equivalents increased $11.2 million, or 14.3%, to $89.5Dz at March 31, 2025 from $78.3Dz at December 31, 2024. The increase in cash and cash equivalents was a result of a decrease of $87.3 million in net loans and an increase of $8.9 million in stockholders� equity, partially offset by a decrease in deposits of $84.4 million.

Equity securities increased $1.3 million, or 5.9%, to $23.3 million at March 31, 2025 from $22.0 million at December 31, 2024. The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the three months ended March 31, 2025 and market appreciation of $300,000 due to market interest rate volatility during the quarter ended March 31, 2025.

Securities held-to-maturity decreased $129,000, or 0.9%, to $14.5 million at March 31, 2025 from $14.6 million at December 31, 2024 due to $129,000 in maturities and pay-downs of various investment securities.

Loans, net of the allowance for credit losses, decreased $87.3Dz, or 4.8%, to $1.7 billion at March 31, 2025 from $1.8Dz at December 31, 2024. The decrease in loans consisted of decreases of $138.9 million in construction loans, $248,000 in non-residential loans, and $36,000 in one-to-four family loans. The decrease in our construction loan portfolio was due to normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions. The decrease in construction loans was offset by increases of $46.4 million in multi-family loans, $4.4 million in commercial and industrial loans, and $1.5 million in consumer loans.

During the quarter ended March 31, 2025, we originated loans totaling $170.1 million consisting primarily of $110.2 million in construction loans, $49.1 million in multi-family loans, $10.1 million in commercial and industrial loans, and $730,000 in mixed-use loans. The $110.2 million in construction loans had 38.4% disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans.

The allowance for credit losses related to loans increased to $5.1 million as of March 31, 2025, from $4.8 million as of December 31, 2024. The increase in the allowance for credit losses related to loans was due to recoveries totaling $352,000 and provision for credit losses totaling $62,000, offset by charge-offs totaling $117,000.

Premises and equipment increased $84,000, or 0.3%, to $24.9 million at March 31, 2025 from $24.8 million at December 31, 2024 primarily due to the purchases of additional fixed assets.

Federal Home Loan Bank stock was $397,000, foreclosed real estate was $5.1 million, and property held for investment was $1.4 million at both March 31, 2025 and December 31, 2024.

Bank owned life insurance (“BOLI�) increased $167,000, or 0.6%, to $25.9 million at March 31, 2025 from $25.7 million at December 31, 2024 due to increases in the BOLI cash value.

Accrued interest receivable decreased $1.0 million, or 7.9%, to $12.4 million at March 31, 2025 from $13.5 million at December 31, 2024 due to a decrease in the loan portfolio.

Right of use assets — operating decreased $145,000, or 3.6%, to $3.9Dz at March 31, 2025 from $4.0Dz at December 31, 2024, primarily due to amortization.

Other assets decreased $328,000, or 2.8%, to $11.3Dz at March 31, 2025 from $11.6Dz at December 31, 2024 due to decreases of $1.7 million in tax assets and $10,000 in miscellaneous assets, partially offset by increases of $1.1 million in suspense accounts and $263,000 in prepaid expenses.

Total deposits decreased $84.4Dz, or 5.1%, to $1.6 billion at March 31, 2025 from $1.7Dz at December 31, 2024. The decrease in deposits was primarily due to decreases in certificates of deposit of $125.1 million, or 12.5%, and non-interest bearing deposits of $9.9 million, or 3.5%, partially offset by increases in NOW/money market accounts of $45.9 million, or 18.8%, and savings account balances of $3.3 million, or 2.4%. The decrease of $125.1 million in certificates of deposit consisted of a decrease in retail certificates of deposit of $76.0 million, or 14.8%, and a decrease in brokered certificates of deposit of $54.8 million, or 12.6%, partially offset by an increase in non-brokered listing services certificates of deposit of $5.7 million, or 17.0%.

The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts. The decrease in brokered certificates of deposit was due to management’s strategy to reduce the cost of funds by “calling� higher rate brokered deposits on their call dates.

Advance payments by borrowers for taxes and insurance increased $680,000, or 42.0%, to $2.3 million at March 31, 2025 from $1.6 million at December 31, 2024 due primarily to accumulation of real estate tax payments from borrowers.

Lease liability � operating decreased $136,000, or 3.3%, to $4.0 million at March 31, 2025 from $4.1 million at December 31, 2024, primarily due to amortization.

Accounts payable and accrued expenses decreased $1.3 million, or 8.7%, to $13.3 million at March 31, 2025 from $14.5 million at December 31, 2024 due primarily to a decrease in accrued expense of $2.8 million, partially offset by increases in dividends payable and other payables of $806,000, suspense accounts for loan closings of $346,000, and deferred compensation of $167,000. The allowance for credit losses for off-balance sheet commitments increased $175,000, or 24.8%, to $879,000 at March 31, 2025 from $704,000 at December 31, 2024 due primarily to an increase of $101.4 million, or 18.0%, in off-balance sheet commitments.

Stockholders� equity increased $8.9 million, or 2.8% to $327.2Dz at March 31, 2025, from $318.3Dz at December 31, 2024. The increase in stockholders� equity was due to net income of�$10.6Dz for the quarter ended March 31, 2025, an increase of $302,000 in earned employee stock ownership plan shares coupled with a reduction of�$217,000 in unearned employee stock ownership plan shares, and the amortization expense of $478,000 relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, partially offset by dividends declared of�$2.7 million and $13,000 in other comprehensive loss.

Results of Operations for theThree Months Ended March 31, 2025 and 2024

Net Interest Income

Net interest income was $24.3Dz for thethree months ended March 31, 2025, as compared to $25.0Dz for the three months ended March 31, 2024. The decrease in net interest income of $722,000, or 2.9%, was primarily due to an increase in interest expense that exceeded an increase in interest income and a decrease in the yield on interest earning assets that exceeded a decrease in the cost of funds for interest bearing liabilities.

Total interest and dividend income increased $86,000, or 0.2%, to $38.2 million for the three months ended March 31, 2025 from $38.1 million for the three months ended March 31, 2024. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $159.9 million, or 9.2%, to $1.9 billion for the three months ended March 31, 2025 from $1.7 billion for the three months ended March 31, 2024, partially offset by a decrease in the yield on interest earning assets by 72 basis points from 8.77% for the three months ended March 31, 2024 to 8.05% for the three months ended March 31, 2025.

Interest expense increased $808,000, or 6.2%, to $13.9 million for the three months ended March 31, 2025 from $13.1 million for the three months ended March 31, 2024. The increase in interest expense was due to an increase in average interest bearing liabilities of $149.7 million, or 12.2%, to $1.4 billion for the three months ended March 31, 2025 from $1.2 billion for the three months ended March 31, 2024, partially offset by a decrease in the cost of interest bearing liabilities by 24 basis points from 4.29% for the three months ended March 31, 2024 to 4.05% for the three months ended March 31, 2025.

Our net interest margin decreased 64 basis points, or 11.1%, to 5.11% for the three months ended March 31, 2025 compared to 5.75% for the three months ended March 31, 2024. The decrease in the net interest margin was due to a decrease in the yield on interest-earning assets that exceeded a decrease in the cost of funds on interest-bearing liabilities.

Credit Loss Expense

The Company recorded a credit loss expense of $237,000 for the three months ended March 31, 2025 compared to a credit loss expense reduction of $165,000 for the three months ended March 31, 2024. The credit loss expense of $237,000 for the three months ended March 31, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000.

The credit loss expense for loans of $62,000 for the three months ended March 31, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet commitments of $175,000 for the three months ended March 31, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.

The credit loss expense reduction of $165,000 for the three months ended March 31, 2024 was comprised of a credit loss expense reduction for loans of $145,000, a credit loss expense reduction for held-to-maturity investment securities of $3,000, and a credit loss expense reduction for off-balance sheet commitments of $17,000. The credit loss expense reduction for loans of $145,000 for the three months ended March 31, 2024 was primarily attributed to favorable trend in the economy.

With respect to the allowance for credit losses for loans, we charged-off $117,000 during the three months ended March 31, 2025 as compared to charge-offs of $21,000 during the three months ended March 31, 2024. The charge-offs during both periods were against various unpaid overdrafts in our demand deposit accounts.

We recorded recoveries of�$352,000 during the three months ended March 31, 2025 compared to no recoveries during the three months ended March 31, 2024. The recoveries of $352,000 during the three months ended March 31, 2025 comprised of recoveries of $350,000 regarding a previously charged-off non-residential mortgage loan and $2,000 from a previously charged-off unpaid overdraft on a demand deposit account.

Non-Interest Income

Non-interest income for the three months ended March 31, 2025 was $1.2 million compared to non-interest income of $554,000 for the three months ended March 31, 2024. The increase of $681,000, or 122.9%, in total non-interest income was primarily due to increases of $382,000 in unrealized gain/(loss) on equity securities, $278,000 in other loan fees and service charges, $11,000 in miscellaneous other non-interest income, and $10,000 in BOLI income.

The increase in unrealized gain/(loss) on equity securities was due to an unrealized gain of $300,000 on equity securities during the three months ended March 31, 2025 compared to an unrealized loss of $82,000 on equity securities during the three months ended March 31, 2024. The unrealized gain of $300,000 on equity securities during the three months ended March 31, 2025 was due to market interest rate volatility during the three months ended March 31, 2025.

The increase of $278,000 in other loan fees and service charges was due to an increase of $245,000 in other loan fees and loan servicing fees, an increase of $31,000 in ATM/debit card/ACH fees, and an increase of $2,000 in deposit account fees.

The increase in BOLI income of $10,000 was due to an increase in the yield on BOLI assets.

Non-Interest Expense

Non-interest expense increased $938,000, or 9.7%, to $10.6Dz for thethree months ended March 31, 2025 from $9.7 million for the three months ended March 31, 2024. The increase resulted primarily from increases of $582,000 in salaries and employee benefits, $221,000 in other operating expense, $98,000 in outside data processing expense, $40,000 in occupancy expense, $19,000 in real estate owned expense, and $14,000 in advertising expense, partially offset by a decrease of $36,000 in equipment expense.

Income Taxes

We recorded income tax expense of�$4.1 million and $4.7 million for thethree months ended March 31, 2025 and 2024, respectively. For thethree months ended March 31, 2025, we had approximately $204,000 in tax exempt income, compared to approximately $195,000 in tax exempt income for the three months ended March 31, 2024. Our effective income tax rates were 27.8% for thethree months ended March 31, 2025 compared to 29.0% for the three months ended March 31, 2024.

Asset Quality

Non-performing assets were $5.1 million at March 31, 2025 and December 31, 2024, respectively. These non-performing assets consisted of two foreclosed properties, with one foreclosed property totaling $4.4 million located in the Bronx, New York and one foreclosed property totaling $767,000 located in Pittsburgh, Pennsylvania.

Our ratio of non-performing assets to total assets remained low at 0.26% at March 31, 2025 as compared to 0.25% at December 31, 2024.

The Company’s allowance for credit losses related to loans was $5.1 million, or 0.30% of total loans as of March 31, 2025, compared to $4.8 million, or 0.27% of total loans as of December 31, 2024. Based on a review of the loans that were in the loan portfolio at March 31, 2025, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of inherent losses in the loan portfolio that were both probable and reasonably estimable.

In addition, at March 31, 2025, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $879,000 and the allowance for credit losses related to held-to-maturity debt securities totaled $126,000.

Capital

The Company’s total stockholders� equity to assets ratio was 16.92% as of March 31, 2025. At March 31, 2025, the Company had the ability to borrow $941.3 million from the Federal Reserve Bank of New York, $15.5 million from the Federal Home Loan Bank of New York, and $8.0 million from Atlantic Community Bankers Bank.

The Bank’s capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of March 31, 2025, the Bank had a tier 1 leverage capital ratio of 15.09% and a total risk-based capital ratio of 15.10%.

The Company completed its first stock repurchase program on April 14, 2023 whereby the Company repurchased 1,637,794 shares, or 10%, of the Company’s issued and outstanding common stock. The cost of the stock repurchase program totaled $23.0 million, including commission costs and Federal excise taxes. Of the total shares repurchased under this program, 957,275 of such shares were repurchased during 2023 at a total cost of $13.7 million, including commission costs and Federal excise taxes.

The Company commenced its second stock repurchase program on May 30, 2023 whereby the Company will repurchase 1,509,218, or 10%, of the Company’s issued and outstanding common stock. As of March 31, 2025, the Company had repurchased 1,091,174 shares of common stock under its second repurchase program, at a cost of $17.2 million, including commission costs and Federal excise taxes.

About NorthEast Community Bancorp

NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.

Forward Looking Statement

This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,� “expect,� “anticipate,� “estimate,� and “intend� or future or conditional verbs such as “will,� “would,� “should,� “could,� or “may.� These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation or recessionary conditions and their impact on regional and national economic conditions), legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts, the quality and composition of the loan or investment portfolios, demand for loan products, decreases in deposit levels necessitating increased borrowing to fund loans and securities, competition, demand for financial services in NorthEast Community Bank’s market area, changes in the real estate market values in NorthEast Community Bank’s market area, the impact of failures or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns, and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the “SEC�), which are available through the SEC’s website located at . These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

CONTACT:Kenneth A. Martinek
Chairman and Chief Executive Officer
PHONE:(914) 684-2500


NORTHEAST COMMUNITY BANCORP,INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
March 31,December 31,
20252024
(Inthousands,exceptshare
andpershareamounts)
ASSETS
Cash and amounts due from depository institutions$11,524$13,700
Interest-bearing deposits77,93464,559
Total cash and cash equivalents89,45878,259
Certificates of deposit100100
Equity securities23,29421,994
Securities held-to-maturity ( net of allowance for credit losses of $126 and $126, respectively )14,48714,616
Loans receivable1,725,6641,812,647
Deferred loan fees, net(63)(49)
Allowance for credit losses(5,127)(4,830)
Net loans1,720,4741,807,768
Premises and equipment, net24,88924,805
Investments in restricted stock, at cost397397
Bank owned life insurance25,90525,738
Accrued interest receivable12,43213,481
AG˹ٷ estate owned5,1205,120
Property held for investment1,3611,370
Right of Use Assets – Operating3,8564,001
Right of Use Assets – Financing346347
Other assets11,25711,585
Total assets$1,933,376$2,009,581
LIABILITIES AND STOCKHOLDERS� EQUITY
Liabilities:
Deposits:
Non-interest bearing$278,694$287,135
Interest bearing1,307,3211,383,240
Total deposits1,586,0151,670,375
Advance payments by borrowers for taxes and insurance2,2981,618
Lease Liability – Operating3,9724,108
Lease Liability – Financing619609
Accounts payable and accrued expenses13,26214,530
Total liabilities1,606,1661,691,240
Stockholders� equity:
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding$$
Common stock, $0.01 par value; 75,000,000 shares authorized; 14,023,376 shares and 14,016,254 shares outstanding, respectively140140
Additional paid-in capital110,871110,091
Unearned Employee Stock Ownership Plan (“ESOP�) shares(5,870)(6,088)
Retained earnings221,858213,974
Accumulated other comprehensive gain211224
Total stockholders� equity327,210318,341
Total liabilities and stockholders� equity$1,933,376$2,009,581


NORTHEAST COMMUNITY BANCORP,INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Quarter Ended March 31,
20252024
(Inthousands,exceptpershareamounts)
INTEREST INCOME:
Loans$36,882$36,703
Interest-earning deposits1,0811,200
Securities244218
Total Interest Income38,20738,121
INTEREST EXPENSE:
Deposits13,93312,394
Borrowings-731
Financing lease1010
Total Interest Expense13,94313,135
Net Interest Income24,26424,986
Provision for (reversal of) credit loss237(165)
Net Interest Income after Provision for (Reversal of) Credit Loss24,02725,151
NON-INTEREST INCOME:
Other loan fees and service charges740462
Earnings on bank owned life insurance167157
Unrealized gain (loss) on equity securities300(82)
Other2817
Total Non-Interest Income1,235554
NON-INTEREST EXPENSES:
Salaries and employee benefits5,9335,351
Occupancy expense747707
Equipment217253
Outside data processing735637
Advertising10288
AG˹ٷ estate owned expense3011
Other2,8552,634
Total Non-Interest Expenses10,6199,681
INCOME BEFORE PROVISION FOR INCOME TAXES14,64316,024
PROVISION FOR INCOME TAXES4,0764,650
NET INCOME$10,567$11,374


NORTHEAST COMMUNITY BANCORP,INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
Quarter Ended March 31,
20252024
(Inthousands,exceptpershareamounts)
Per share data:
Earnings per share - basic$0.80$0.87
Earnings per share - diluted0.780.86
Weighted average shares outstanding - basic13,19213,118
Weighted average shares outstanding - diluted13,56013,191
Performance ratios/data:
Return on average total assets2.12%2.50%
Return on average shareholders' equity12.98%15.88%
Net interest income$24,264$24,986
Net interest margin5.11%5.75%
Efficiency ratio41.64%37.91%
Net charge-off ratio(0.05)%0.00%
Loan portfolio composition:March 31, 2025December 31, 2024
One-to-four family$3,436$3,472
Multi-family253,018206,606
Mixed-use26,57226,571
Total residential real estate283,026236,649
Non-residential real estate29,19829,446
Construction1,287,2251,426,167
Commercial and industrial123,113118,736
Consumer3,1021,649
Gross loans1,725,6641,812,647
Deferred loan fees, net(63)(49)
Total loans$1,725,601$1,812,598
Asset quality data:
Loans past due over 90 days and still accruing$-$-
Non-accrual loans--
OREO property5,1205,120
Total non-performing assets$5,120$5,120
Allowance for credit losses to total loans0.30%0.27%
Allowance for credit losses to non-performing loans0.00%0.00%
Non-performing loans to total loans0.00%0.00%
Non-performing assets to total assets0.26%0.25%
Bank's Regulatory Capital ratios:
Total capital to risk-weighted assets15.10%13.92%
Common equity tier 1 capital to risk-weighted assets14.79%13.65%
Tier 1 capital to risk-weighted assets14.79%13.65%
Tier 1 leverage ratio15.09%14.44%


NORTHEAST COMMUNITY BANCORP,INC.
NET INTEREST MARGIN ANALYSIS
(Unaudited)
Quarter Ended March 31, 2025Quarter Ended March 31, 2024
Average
Balance
Interest
and dividend
Average
Yield
Average
Balance
Interest
and dividend
Average
Yield
(Inthousands,except yield/cost information)(Inthousands,except yield/cost information)
Loan receivable gross$1,767,849$36,8828.35%$1,612,343$36,7039.11%
Securities36,7512352.56%33,8481972.33%
Federal Home Loan Bank stock39799.07%842219.98%
Other interest-earning assets93,4761,0814.63%91,5521,2005.24%
Total interest-earning assets1,898,47338,2078.05%1,738,58538,1218.77%
Allowance for credit losses(4,827)(5,091)
Non-interest-earning assets96,49388,859
Total assets$1,990,139$1,822,353
Interest-bearing demand deposit$274,630$2,4453.56%$171,483$1,8174.24%
Savings and club accounts138,9037302.10%182,7711,2022.63%
Certificates of deposit962,08410,7584.47%810,5869,3754.63%
Total interest-bearing deposits1,375,61713,9334.05%1,164,84012,3944.26%
Borrowed money-100.00%61,0927414.85%
Total interest-bearing liabilities1,375,61713,9434.05%1,225,93213,1354.29%
Non-interest-bearing demand deposit270,874291,909
Other non-interest-bearing liabilities18,08618,090
Total liabilities1,664,5771,535,931
Equity325,562286,422
Total liabilities and equity$1,990,139$1,822,353
Net interest income / interest spread$24,2644.00%$24,9864.48%
Net interest rate margin5.11%5.75%
Net interest earning assets$522,856$512,653
Average interest-earning assets
to interest-bearing liabilities138.01%141.82%

FAQ

What was NECB's net income for Q1 2025 compared to Q1 2024?

NECB reported net income of $10.6 million ($0.80 per basic share) in Q1 2025, compared to $11.4 million ($0.87 per basic share) in Q1 2024, showing a slight decrease.

How did NECB's loan portfolio perform in Q1 2025?

Net loans decreased 4.8% to $1.7 billion, with $170.1 million in new loan originations, primarily in construction ($110.2M) and multi-family loans ($49.1M).

What is NECB's asset quality status as of March 31, 2025?

Asset quality remained strong with no non-performing loans, a non-performing assets ratio of 0.26%, and an allowance for credit losses of $5.1 million (0.30% of total loans).

How did NECB's net interest margin change in Q1 2025?

Net interest margin decreased to 5.11% in Q1 2025 from 5.75% in Q1 2024, with net interest income declining 2.9% to $24.3 million.
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Banks - Regional
Savings Institutions, Not Federally Chartered
United States
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