WHITE PLAINS, N.Y., July 24, 2026 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the "Company"), the parent holding company of NorthEast Community Bank (the "Bank"), reported net income of $9.8 million, or $0.75 per basic share and $0.72 per diluted share, for the three months ended June 30, 2026 compared to net income of $11.2 million, or $0.85 per basic share and $0.82 per diluted share, for the three months ended June 30, 2025. In addition, the Company reported net income of $19.7 million, or $1.50 per basic share and $1.46 per diluted share, for the six months ended June 30, 2026 compared to net income of $21.7 million, or $1.65 per basic share and $1.60 per diluted share, for the six months ended June 30, 2025.
Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated "We are again pleased to report continued strong performance throughout our entire loan portfolio. We continue our laser focus on construction lending in high demand, high absorption submarkets in the Bronx, Rockland, Orange, and Sullivan Counties."
"Demand for construction loans throughout these submarkets continues to demonstrate robust growth and we look forward to continuing to meet this growing demand going forward. At June 30, 2026, construction loan commitments and loans-in-process outstanding increased by approximately 38.9% as compared to the second quarter of 2025, with over $883 million in total unfunded loan commitments outstanding, and representing a 30.0% increase over the amount of such total commitments outstanding at December 31, 2025."
Highlights for the three months and six months ended June 30, 2026 are as follows:
-- Performance metrics continue to be strong with a return on average total
assets ratio of 1.95%, a return on average shareholders' equity ratio of
10.81%, and an efficiency ratio of 41.99% for the three months ended June
30, 2026. For the six months ended June 30, 2026, the Company reported a
return on average total assets ratio of 1.96%, a return on average
shareholders' equity ratio of 10.97%, and an efficiency ratio of 42.81%.
-- Asset quality metrics continue to remain strong with no non-performing
loans at either June 30, 2026 or December 31, 2025, and a non-performing
assets to total assets ratio of 0.00% at both June 30, 2026 and at
December 31, 2025. Our allowance for credit losses related to loans
totaled $4.8 million, or 0.25% of total loans at June 30, 2026 compared
to $4.7 million, or 0.25% of total loans at December 31, 2025.
-- Total stockholders' equity increased by $10.9 million, or 3.1%, to $362.6
million, or 17.14% of total assets as of June 30, 2026 from $351.7
million, or 17.04% of total assets as of December 31, 2025.
Balance Sheet Summary
Total assets increased $51.7 million, or 2.5%, to $2.1 billion at June 30, 2026, from $2.1 billion at December 31, 2025. The increase in assets was primarily due to an increase in net loans of $59.4 million, partially offset by a decrease in cash and cash equivalents of $7.8 million.
Cash and cash equivalents decreased $7.8 million, or 9.6%, to $73.4 million at June 30, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially funded the increase of $59.4 million in net loans.
Equity securities increased $757,000, or 2.8%, to $27.3 million at June 30, 2026 from $26.6 million at December 31, 2025. The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the six months ended June 30, 2026, partially offset by market depreciation of $243,000 due to market interest rate volatility during the six months ended June 30, 2026.
Securities held-to-maturity decreased $564,000, or 3.1%, to $17.8 million at June 30, 2026 from $18.3 million at December 31, 2025 due to pay-downs of various investment securities and an increase of $9,000 to the allowance for credit losses for held-to-maturity securities, partially offset by the purchase of $470,000 in municipal securities.
Loans, net of the allowance for credit losses, increased $59.4 million, or 3.2%, to $1.9 billion at June 30, 2026 from $1.9 billion at December 31, 2025. The increase in loans consisted of an increase of $67.2 million in construction loans, partially offset by decreases of $4.9 million in multi-family loans, $2.2 million in non-residential loans, $200,000 in mixed-use loans, $69,000 in one-to-four family loans, $23,000 in consumer loans, and $3,000 in commercial and industrial loans.
During the six months ended June 30, 2026, we originated loans totaling $653.2 million, which includes commitments and funded loans, consisting primarily of $606.7 million in construction loans, $25.1 million in commercial and industrial loans, $20.8 million in multi-family loans, and $675,000 in mixed-use loans. The $606.7 million in construction loans had $262.7 million, or 43.3%, disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans. These disbursements were offset by 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 commercial and industrial loans had $19.0 million, or 75.7%, disbursed at loan closing as of June 30, 2026.
The allowance for credit losses related to loans was $4.6 million at June 30, 2026 and December 31, 2025. The allowance for credit losses related to loans had a provision for credit losses totaling $568,000 and charge-offs totaling $547,000. The provision for credit losses totaling $568,000 was due to an increase in the loan portfolio and a slight increase in the remaining terms of the loan portfolio.
The allowance for credit losses for off-balance sheet commitments increased $284,000, or 32.3%, to $1.2 million at June 30, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $204.2 million, or 30.0%, in off-balance sheet commitments from December 31, 2025 to June 30, 2026.
The allowance for credit losses for held-to-maturity securities increased $9,000, or 7.1%, to $135,000 at June 30, 2026 from $126,000 at December 31, 2025 due to an increase in our municipal bond portfolio.
Premises and equipment decreased $356,000, or 1.4%, to $25.0 million at June 30, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets.
Federal Home Loan Bank stock increased by $133,000, or 32.4%, to $543,000 at June 30, 2026 from $410,000 at December 31, 2025 primarily due to an increase in our mortgage-related assets.
Bank owned life insurance ("BOLI") increased $364,000, or 1.4%, to $26.8 million at June 30, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value.
Accrued interest receivable decreased $39,000, or 0.3%, to $12.2 million at June 30, 2026 from $12.2 million at December 31, 2025 due to a decrease in the yield in the loan portfolio.
Property held for investment was $1.3 million at both June 30, 2026 and December 31, 2025.
Right of use assets -- operating decreased $360,000, or 7.7%, to $4.3 million at June 30, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of the right of use assets.
Other assets increased $117,000, or 1.1%, to $11.1 million at June 30, 2026 from $11.0 million at December 31, 2025 due to an increase of $725,000 in suspense accounts, partially offset by decreases of $528,000 in tax assets and $90,000 in prepaid expenses.
Total deposits decreased $80.4 million, or 5.0%, to $1.5 billion at June 30, 2026 from $1.6 billion at December 31, 2025. The decrease in deposits was primarily due to decreases in certificates of deposit of $190.8 million, or 21.2%, and savings account balances of $10.6 million, or 7.5%, partially offset by increases in NOW/money market accounts of $67.5 million, or 22.3% and non-interest bearing deposits of $53.5 million, or 19.7%.
The decrease of $190.8 million in certificates of deposit consisted of decreases of $129.0 million, or 34.9%, in brokered certificates of deposit, $38.3 million, or 56.6%, in non-brokered listing services certificates of deposit, and $23.4 million, or 5.3% in retail certificates of deposit.
The decrease in brokered certificates of deposit and non-brokered listing services 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 and to rely less on brokered deposits and non-brokered listing service deposits. The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts.
Advance payments by borrowers for taxes and insurance increased $210,000, or 8.9%, to $2.6 million at June 30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers.
Borrowings increased $120.0 million, or 171.4%, to $190.0 million at June 30, 2026 from $70.0 million at December 31, 2025 due primarily to management's strategy to reduce the cost of funds and lessen reliance on brokered deposits and non-brokered listing service deposits.
Lease liability -- operating decreased $329,000, or 6.9%, to $4.5 million at June 30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.
Accounts payable and accrued expenses increased $980,000, or 6.0%, to $18.6 million at June 30, 2026 from $17.3 million at December 31, 2025 due primarily to increases in accounts payable of $1.3 million, suspense account -- loan closings of $322,000, deferred compensation of $291,000, the allowance for credit losses for off-balance sheet commitments of $284,000, and accrued interest expense of $107,000, partially offset by a decrease in accrued expenses of $1.0 million.
Stockholders' equity increased $10.9 million, or 3.1% to $362.6 million at June 30, 2026, from $351.7 million at December 31, 2025. The increase in stockholders' equity was due to net income of $19.7 million for the six months ended June 30, 2026, the amortization expense of $1.1 million relating to restricted stock and stock options granted under the Company's 2022 Equity Incentive Plan, an increase of $371,000 in earned employee stock ownership plan shares coupled with a reduction of $261,000 in unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $25,000 in other comprehensive income. These increases were offset by dividends declared of $6.0 million and stock repurchases and excise taxes of $4.7 million.
Results of Operations for the Three Months Ended June 30, 2026 and 2025
Net Interest Income
Net interest income was $24.7 million for the three months ended June 30, 2026, as compared to $25.1 million for the three months ended June 30, 2025. The decrease in net interest income of $424,000, or 1.7%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense caused by a decrease in the yield on interest-earning assets that exceeded the decrease in the cost of funds for interest-bearing liabilities.
Total interest and dividend income decreased $2.0 million, or 5.2%, to $36.1 million for the three months ended June 30, 2026 from $38.1 million for the three months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets by 60 basis points from 8.11% for the three months ended June 30, 2025 to 7.51% for the three months ended June 30, 2026, partially offset by an increase in the average balance of interest-earning assets of $43.8 million, or 2.3%, to $1.9 billion for the three months ended June 30, 2026 from $1.9 billion for the three months ended June 30, 2025.
Interest expense decreased $1.6 million, or 12.0%, to $11.4 million for the three months ended June 30, 2026 from $13.0 million for the three months ended June 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest-bearing liabilities by 43 basis points from 3.88% for the three months ended June 30, 2025 to 3.45% for the three months ended June 30, 2026. The decrease in interest expense was also due to a decrease in the average balance of interest-bearing liabilities of $16.0 million, or 1.2%, to $1.3 billion for the three months ended June 30, 2026 from $1.3 billion for the three months ended June 30, 2025.
Our net interest margin decreased 21 basis points, or 3.9%, to 5.14% for the three months ended June 30, 2026 compared to 5.35% for the three months ended June 30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities.
Credit Loss Expense
The Company recorded credit loss expense of $860,000 for the three months ended June 30, 2026 compared to no credit loss expense for the three months ended June 30, 2025.
The credit loss expense of $860,000 for the three months ended June 30, 2026 was comprised of credit loss expense for loans of $680,000, credit loss expense for off-balance sheet commitments of $171,000, and credit loss expense for held-to-maturity securities of $9,000. The credit loss expense for loans of $680,000 for the three months ended June 30, 2026 was primarily due to an increase in the loan portfolio. The credit loss expense for off-balance sheet commitments of $171,000 for the three months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit loss expense for held-to-maturity securities of $9,000 for the three months ended June 30, 2026 was primarily due to an increase in the municipal bond portfolio.
With respect to the allowance for credit losses for loans, we charged-off $520,000 during the quarter ended June 30, 2026, as compared to charge-offs of $485,000 during the quarter ended June 30, 2025. The charge-offs during the quarter ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $20,000 against various unpaid overdrafts in our demand deposit accounts. The charge-offs during the quarter ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.
We recorded no recoveries during the quarter ended June 30, 2026 compared to recoveries of $82,000 during the quarter ended June 30, 2025. The recoveries of $82,000 during the quarter ended June 30, 2025 comprised of recoveries from a previously charged-off unpaid overdraft on a demand deposit account.
Non-Interest Income
Non-interest income for the three months ended June 30, 2026 was $642,000 compared to non-interest income of $858,000 for the three months ended June 30, 2025. The decrease of $216,000, or 25.2%, in total non-interest income was primarily due to decreases of $173,000 in unrealized gain/(loss) on equity securities and $62,000 in other loan fees and service charges, partially offset by increases of $15,000 in BOLI income and $4,000 in miscellaneous other non-interest income.
The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $122,000 on equity securities during the quarter ended June 30, 2026 compared to an unrealized gain of $51,000 on equity securities during the quarter ended June 30, 2025. The unrealized loss of $122,000 and unrealized gain of $51,000 on equity securities during the quarters ended June 30, 2026 and 2025, respectively, were due to market interest rate volatility during both periods.
The decrease of $62,000 in other loan fees and service charges was due to decreases of $82,000 in loan service charges and fees, partially offset by an increase of $20,000 in ATM/debit card/ACH fees. The increase of $15,000 in BOLI income was due to an increase in the yield on BOLI assets. The increase of $4,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income during the quarter.
Non-Interest Expense
Non-interest expense increased $110,000, or 1.0%, to $10.6 million for the three months ended June 30, 2026 from $10.5 million for the three months ended June 30, 2025. The increase resulted primarily from increases of $291,000 in other operating expense, $166,000 in salaries and employee benefits, and $44,000 in occupancy expense, partially offset by decreases of $247,000 in real estate owned expense, $79,000 in advertising expense, $33,000 in outside data processing expense, and $32,000 in equipment expense.
Income Taxes
We recorded income tax expense of $4.0 million and $4.3 million for the three months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026, we had approximately $252,000 in tax exempt income, compared to approximately $210,000 in tax exempt income for the three months ended June 30, 2025. Our effective income tax rate was 29.1% for the three months ended June 30, 2026 compared to 27.6% for the three months ended June 30, 2025.
Results of Operations for the Six Months Ended June 30, 2026 and 2025
Net Interest Income
Net interest income was $48.8 million for the six months ended June 30, 2026 as compared to $49.3 million for the six months ended June 30, 2025. The decrease in net interest income of $555,000, or 1.1%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense and a decrease in the yield on interest earning assets, partially offset by a smaller decrease in the cost of funds for interest bearing liabilities.
Total interest and dividend income decreased $4.2 million, or 5.5%, to $72.0 million for the six months ended June 30, 2026 from $76.2 million for the six months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest earning assets by 60 basis points from 8.08% for the six months ended June 30, 2025 to 7.48% for the six months ended June 30, 2026, partially offset by an increase in the average balance of interest earning assets of $39.5 million, or 2.1%, to $1.9 billion for the six months ended June 30, 2026 from $1.9 billion for the six months ended June 30, 2025.
Interest expense decreased $3.7 million, or 13.6%, to $23.2 million for the six months ended June 30, 2026 from $26.9 million for the six months ended June 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest bearing liabilities by 51 basis points from 3.97% for the six months ended June 30, 2025 to 3.46% for the six months ended June 30, 2026 and a decrease in average interest bearing liabilities of $13.0 million, or 1.0%, to $1.3 billion for the six months ended June 30, 2026 from $1.4 billion for the six months ended June 30, 2025.
Net interest margin decreased 17 basis points, or 3.2%, to 5.06% for the six months ended June 30, 2026 compared to 5.23% for the six months ended June 30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities.
Credit Loss Expense
The Company recorded a credit loss expense of $860,000 for the six months ended June 30, 2026 compared to a credit loss expense of $237,000 for the six months ended June 30, 2025. The credit loss expense of $860,000 for the six months ended June 30, 2026 was comprised of credit loss expense for loans of $568,000, credit loss expense for off-balance sheet commitments of $283,000, and credit loss expense for held-to-maturity securities of $9,000. The credit loss expense of $237,000 for the six months ended June 30, 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 $568,000 for the six months ended June 30, 2026 was primarily due to an increase in the loan portfolio. The credit loss expense for off-balance sheet commitments of $283,000 for the six months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit loss expense for held-to-maturity securities of $9,000 for the six months ended June 30, 2026 was primarily due to an increase in the municipal bond portfolio.
The credit loss expense for loans of $62,000 for the six months ended June 30, 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 six months ended June 30, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.
With respect to the allowance for credit losses for loans, we charged-off $547,000 during the six months ended June 30, 2026 as compared to charge-offs of $602,000 during the six months ended June 30, 2025. The charge-offs during the six months ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $47,000 against various unpaid overdrafts in our demand deposit accounts. The charge-offs during the six months ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.
We recorded no recoveries during the six months ended June 30, 2026 compared to recoveries of $434,000 during the six months ended June 30, 2025. The recoveries of $434,000 during the six months ended June 30, 2025 comprised of recoveries of $350,000 with respect to a previously charged-off non-residential mortgage loan and $84,000 from previously charged-off unpaid overdrafts on demand deposit accounts.
Non-Interest Income
Non-interest income for the six months ended June 30, 2026 was $1.4 million compared to non-interest income of $2.1 million for the six months ended June 30, 2025. The decrease of $655,000, or 31.3%, in total non-interest income was primarily due to decreases of $594,000 in unrealized gain/(loss) on equity securities and $133,000 in other loan fees and service charges, partially offset by increases of $45,000 in miscellaneous other non-interest income and $27,000 in BOLI income.
The decrease in unrealized gain on equity securities was due to an unrealized loss of $243,000 on equity securities during the six months ended June 30, 2026 compared to an unrealized gain of $351,000 on equity securities during the six months ended June 30, 2025. Both the unrealized loss of $243,000 on equity securities during the 2026 period and the unrealized gain of $351,000 on equity securities during the 2025 period were due to market interest rate volatility during both periods.
The decrease of $133,000 in other loan fees and service charges was due to a decrease of $226,000 in other loan fees and loan servicing fees, partially offset by an increase of $92,000 in ATM/debit card/ACH fees. The increase of $45,000 in miscellaneous other non-interest income was due to general accrual adjustments during the first quarter of 2026. The increase in BOLI income of $27,000 was due to an increase in the yield on BOLI assets.
Non-Interest Expense
Non-interest expense increased $371,000, or 1.8%, to $21.5 million for the six months ended June 30, 2026 from $21.1 million for the six months ended June 30, 2025. The increase resulted primarily from increases of $406,000 in salaries and employee benefits, $208,000 in other operating expense, $172,000 in occupancy expense, and $27,000 in outside data processing expense, partially offset by decreases of $277,000 in real estate owned expense, $139,000 in advertising expense, and $26,000 in equipment expense.
Income Taxes
We recorded income tax expense of $8.1 million and $8.3 million for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026, we had approximately $500,000 in tax exempt income, compared to approximately $415,000 in tax exempt income for the six months ended June 30, 2025. Our effective income tax rates were 29.1% and 27.7% for the six months ended June 30, 2026 and 2025, respectively.
Asset Quality
We had no non-performing assets at June 30, 2026 and December 31, 2025. Our ratio of non-performing assets to total assets was 0.00% at June 30, 2026 and December 31, 2025.
The Company's allowance for credit losses related to loans was $4.8 million, or 0.25% of total loans as of June 30, 2026, compared to $4.7 million, or 0.25% of total loans as of December 31, 2025. Based on a review of the loans that were in the loan portfolio at June 30, 2026, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of expected losses in the loan portfolio.
In addition, at June 30, 2026, the Company's allowance for credit losses related to off-balance sheet commitments totaled $1.2 million and the allowance for credit losses related to held-to-maturity debt securities totaled $135,000.
Capital
The Company's total stockholders' equity to assets ratio was 17.14% as of June 30, 2026. At June 30, 2026, the Company had the ability to borrow $633.0 million from the Federal Reserve 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 June 30, 2026, the Bank had a tier 1 leverage capital ratio of 17.32% and a total risk-based capital ratio of 15.31%.
The Company commenced its third stock repurchase program on December 10, 2025 whereby the Company will repurchase 1,400,435, or 10%, of the Company's issued and outstanding common stock. As of June 30, 2026, the Company had repurchased 239,894 shares of common stock under its third repurchase program, at a cost of $5.6 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, changes relating to rent regulation and housing, including recent legislative action in New York City to freeze rents on certain rent-regulated properties, 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 impact of changing political conditions or federal government shutdowns, 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 www.sec.gov. 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.
Kenneth A. Martinek
CONTACT: Chairman and Chief Executive Officer
PHONE: (914) 684-2500
NORTHEAST COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
June 30, December 31,
2026 2025
---------------- ---------------
(In thousands, except share
and per share amounts)
ASSETS
Cash and amounts due from
depository institutions $ 9,473 $ 10,456
Interest-bearing deposits 63,941 70,719
----------- -----------
Total cash and cash equivalents 73,414 81,175
Certificates of deposit 100 100
Equity securities 27,327 26,570
Securities held-to-maturity (net
of allowance for credit losses
of $135 and $126, respectively
) 17,751 18,315
Loans receivable 1,919,908 1,860,066
Deferred loan (fees) costs, net (149) 268
Allowance for credit losses (4,752) (4,731)
----------- -----------
Net loans 1,915,007 1,855,603
Premises and equipment, net 25,021 25,377
Investments in restricted stock,
at cost 543 410
Bank owned life insurance 26,797 26,433
Accrued interest receivable 12,189 12,228
Property held for investment 1,315 1,334
Right of Use Assets -- Operating 4,296 4,656
Right of Use Assets -- Financing 342 343
Other assets 11,081 10,964
----------- -----------
Total assets $ 2,115,183 $ 2,063,508
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Liabilities:
Deposits:
Non-interest bearing $ 325,415 $ 271,924
Interest bearing 1,211,128 1,344,977
----------- -----------
Total deposits 1,536,543 1,616,901
Advance payments by borrowers for
taxes and insurance 2,562 2,352
Borrowings 190,000 70,000
Lease Liability -- Operating 4,467 4,796
Lease Liability -- Financing 454 434
Accounts payable and accrued
expenses 18,589 17,325
----------- -----------
Total liabilities 1,752,615 1,711,808
----------- -----------
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;
13,771,951 shares and 13,963,432
shares outstanding,
respectively 138 140
Additional paid-in capital 108,383 111,575
Unearned Employee Stock Ownership
Plan ("ESOP") shares (4,957) (5,218)
Retained earnings 258,746 244,970
Accumulated other comprehensive
gain 258 233
----------- -----------
Total stockholders' equity 362,568 351,700
----------- -----------
Total liabilities and
stockholders' equity $ 2,115,183 $ 2,063,508
=========== ===========
NORTHEAST COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
June 30, Six Months Ended June 30,
-------------------- --------------------------
2026 2025 2026 2025
----------- ------- ----------- -------------
(In thousands,
except per share (In thousands, except per
amounts) share amounts)
INTEREST INCOME:
Loans $35,174 $36,740 $70,216 $ 73,622
Interest-earning
deposits 554 1,027 1,156 2,108
Securities 332 272 657 516
------ ------ ------ ------------
Total Interest
Income 36,060 38,039 72,029 76,246
------ ------ ------ ------------
INTEREST EXPENSE:
Deposits 10,610 12,053 22,012 25,986
Borrowings 790 902 1,213 902
Financing lease 10 10 20 20
------ ------ ------ ------------
Total Interest
Expense 11,410 12,965 23,245 26,908
------ ------ ------ ------------
Net Interest
Income 24,650 25,074 48,784 49,338
Provision for credit
loss 860 -- 860 237
------ ------ ------ ------------
Net Interest
Income after
Provision for
Credit Loss 23,790 25,074 47,924 49,101
------ ------ ------ ------------
NON-INTEREST INCOME:
Other loan fees
and service
charges 549 611 1,218 1,351
Earnings on bank
owned life
insurance 185 170 364 336
Unrealized (loss)
gain on equity
securities (122) 51 (243) 351
Other 30 26 99 55
------ ------ ------ ------------
Total
Non-Interest
Income 642 858 1,438 2,093
------ ------ ------ ------------
NON-INTEREST
EXPENSES:
Salaries and
employee
benefits 5,817 5,650 11,989 11,583
Occupancy expense 787 743 1,661 1,489
Equipment 221 253 444 470
Outside data
processing 725 758 1,521 1,494
Advertising 43 123 86 225
Real estate owned
expense - 247 - 277
Other 3,026 2,734 5,797 5,589
------ ------ ------ ------------
Total
Non-Interest
Expenses 10,619 10,508 21,498 21,127
------ ------ ------ ------------
INCOME BEFORE
PROVISION FOR INCOME
TAXES 13,813 15,424 27,864 30,067
PROVISION FOR INCOME
TAXES 4,018 4,254 8,117 8,330
------ ------ ------ ------------
NET INCOME $ 9,795 $11,170 $19,747 $ 21,737
====== ====== ====== ============
NORTHEAST COMMUNITY BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- --------------------------------
2026 2025 2026 2025
------------- ------------- --------------- ---------------
(In thousands, except per (In thousands, except per share
share amounts) amounts)
Per share data:
Earnings per
share - basic $ 0.75 $ 0.85 $ 1.50 $ 1.65
Earnings per
share - diluted 0.72 0.82 1.46 1.60
Weighted average
shares
outstanding -
basic 13,135 13,216 13,155 13,204
Weighted average
shares
outstanding -
diluted 13,538 13,568 13,533 13,563
Performance
ratios/data:
Return on average
total assets 1.95% 2.27% 1.96% 2.20%
Return on average
shareholders'
equity 10.81% 13.37% 10.97% 13.18%
Net interest
income $24,650 $25,074 $ 48,784 $ 49,338
Net interest
margin 5.14% 5.35% 5.06% 5.23%
Efficiency ratio 41.99% 40.52% 42.81% 41.08%
Net charge-off
ratio 0.11% 0.09% 0.06% 0.01%
Loan portfolio December 31,
composition: June 30, 2026 2025
--------------- ---------------
One-to-four
family $ 3,046 $ 3,114
Multi-family 301,628 306,508
Mixed-use 24,997 25,197
--------- --- --------- ---
Total
residential
real estate 329,671 334,819
Non-residential
real estate 36,247 38,463
Construction 1,403,562 1,336,329
Commercial and
industrial 150,394 150,397
Consumer 34 58
--------- --- --------- ---
Gross loans 1,919,908 1,860,066
Deferred loan
(fees) cost,
net (149) 268
--------- --------- ---
Total loans $1,919,759 $1,860,334
========= === ========= ===
Asset quality data:
Loans past due
over 90 days and
still accruing $ - $ -
Non-accrual
loans - -
--------- --- --------- ---
Total
non-performing
assets $ -- $ --
========= === ========= ===
Allowance for credit
losses to total
loans 0.25% 0.25%
Allowance for credit
losses to
non-performing
loans 0.00% 0.00%
Non-performing loans
to total loans 0.00% 0.00%
Non-performing
assets to total
assets 0.00% 0.00%
Bank's Regulatory
Capital ratios:
Total capital to
risk-weighted
assets 15.31% 15.62%
Common equity
tier 1 capital
to risk-weighted
assets 15.05% 15.36%
Tier 1 capital to
risk-weighted
assets 15.05% 15.36%
Tier 1 leverage
ratio 17.32% 16.39%
NORTHEAST COMMUNITY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(Unaudited)
Three Months Ended June 30, 2026 Three Months Ended June 30, 2025
-------------------------------------- --------------------------------------
Average Interest Average Average Interest Average
and and
Balance dividend Yield Balance dividend Yield
---------------- --------- --------- ---------------- --------- ---------
(In thousands, except yield/cost (In thousands, except yield/cost
information) information)
Loan receivable gross $1,823,222 $ 35,174 7.72% $1,754,363 $ 36,740 8.38%
Securities 45,375 324 2.86% 37,839 265 2.80%
Federal Home Loan Bank
stock 536 8 5.97% 438 7 6.39%
Other interest-earning
assets 50,466 554 4.39% 83,135 1,027 4.94%
--------- ---- -------- --------- ---- --------
Total
interest-earning
assets 1,919,599 36,060 7.51% 1,875,775 38,039 8.11%
-------- --------
Allowance for credit
losses (4,594) (5,122)
Non-interest-earning
assets 93,251 95,651
--------- ---- --------- ----
Total assets $2,008,256 $1,966,304
========= ==== ========= ====
Interest-bearing
demand deposit $ 346,797 $ 2,652 3.06% $ 298,689 $ 2,401 3.22%
Savings and club
accounts 133,982 662 1.98% 141,238 761 2.16%
Certificates of
deposit 754,660 7,296 3.87% 815,000 8,891 4.36%
--------- ---- -------- --------- ---- --------
Total
interest-bearing
deposits 1,235,439 10,610 3.44% 1,254,927 12,053 3.84%
Borrowed money 86,151 800 3.71% 82,712 912 4.41%
--------- ---- -------- --------- ---- --------
Total
interest-bearing
liabilities 1,321,590 11,410 3.45% 1,337,639 12,965 3.88%
-------- --------
Non-interest-bearing
demand deposit 299,529 274,466
Other
non-interest-bearing
liabilities 24,773 20,114
--------- ---- --------- ----
Total liabilities 1,645,892 1,632,219
Equity 362,364 334,085
--------- ---- --------- ----
Total liabilities
and equity $2,008,256 $1,966,304
========= ==== ========= ====
Net interest income
/ interest spread $ 24,650 4.06% $ 25,074 4.23%
======== ========
Net interest rate
margin 5.14% 5.35%
Net interest earning
assets $ 598,009 $ 538,136
========= ==== ========= ====
Average
interest-earning
assets to
interest-bearing
liabilities 145.25% 140.23%
========= === ========= ===
NORTHEAST COMMUNITY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(Unaudited)
Six Months Ended June 30, 2026 Six Months Ended June 30, 2025
-------------------------------------- --------------------------------------
Average Interest Average Average Interest Average
and and
Balance dividend Yield Balance dividend Yield
---------------- --------- --------- ---------------- --------- ---------
(In thousands, except yield/cost (In thousands, except yield/cost
information) information)
Loan receivable gross $1,825,651 $ 70,216 7.69% $1,761,069 $ 73,622 8.36%
Securities 45,234 643 2.84% 37,298 500 2.68%
Federal Home Loan Bank
stock 473 14 5.92% 418 16 7.66%
Other interest-earning
assets 55,251 1,156 4.18% 88,277 2,108 4.78%
--------- ---- -------- --------- ---- --------
Total
interest-earning
assets 1,926,609 72,029 7.48% 1,887,062 76,246 8.08%
-------- --------
Allowance for credit
losses (4,661) (4,978)
Non-interest-earning
assets 92,237 96,071
--------- ---- --------- ----
Total assets $2,014,185 $1,978,155
========= ==== ========= ====
Interest-bearing
demand deposit $ 334,730 $ 5,105 3.05% $ 286,726 $ 4,846 3.38%
Savings and club
accounts 134,899 1,332 1.97% 140,077 1,491 2.13%
Certificates of
deposit 806,181 15,575 3.86% 888,136 19,649 4.42%
--------- ---- -------- --------- ---- --------
Total
interest-bearing
deposits 1,275,810 22,012 3.45% 1,314,939 25,986 3.95%
Borrowed money 67,710 1,233 3.64% 41,584 922 4.43%
--------- ---- -------- --------- ---- --------
Total
interest-bearing
liabilities 1,343,520 23,245 3.46% 1,356,523 26,908 3.97%
-------- --------
Non-interest-bearing
demand deposit 287,324 272,680
Other
non-interest-bearing
liabilities 23,389 19,107
--------- ---- --------- ----
Total liabilities 1,654,233 1,648,310
Equity 359,952 329,845
--------- ---- --------- ----
Total liabilities
and equity $2,014,185 $1,978,155
========= ==== ========= ====
Net interest income
/ interest spread $ 48,784 4.02% $ 49,338 4.11%
======== ========
Net interest rate
margin 5.06% 5.23%
Net interest earning
assets $ 583,089 $ 530,539
========= ==== ========= ====
Average
interest-earning
assets to
interest-bearing
liabilities 143.40% 139.11%
========= === ========= ===
(END) Dow Jones Newswires
July 24, 2026 14:00 ET