NorthEast Community Bancorp (Nasdaq: NECB) reported net income of $9.8 million ($0.75 basic, $0.72 diluted) for Q2 2026 versus $11.2 million ($0.85 basic, $0.82 diluted) a year earlier, and $19.7 million ($1.50 basic, $1.46 diluted) for the first half of 2026 versus $21.7 million in 2025.
Q2 2026 return on average assets was 1.95%, return on average equity 10.81%, and the efficiency ratio 41.99%. Asset quality remained strong with no non-performing loans and non-performing assets at 0.00% of total assets. Construction loan commitments and loans-in-process rose about 38.9% year-over-year, with over $883 million unfunded, up 30.0% from December 31, 2025. Total assets grew 2.5% to $2.1 billion, net loans increased $59.4 million, total deposits declined 5.0% to $1.5 billion, and borrowings rose $120.0 million to $190.0 million.
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Positive
Q2 2026 ROA 1.95%, ROE 10.81%; efficiency ratio 41.99%
No non-performing loans; non-performing assets to total assets 0.00% at June 30, 2026
Construction commitments and loans-in-process +38.9% year-over-year; unfunded commitments over $883 million, +30.0% vs. December 31, 2025
Net loans +$59.4 million (3.2%) to $1.9 billion in first half 2026
Interest expense -12.0% year-over-year in Q2 2026 to $11.4 million
Stockholders’ equity +$10.9 million (3.1%) to $362.6 million as of June 30, 2026
Negative
Q2 2026 net income $9.8 million, down from $11.2 million in Q2 2025
Six-month 2026 net income $19.7 million, down from $21.7 million a year earlier
Net interest margin 5.14%, down 21 basis points from 5.35% in Q2 2025
Credit loss expense $860,000 in Q2 2026 versus none in Q2 2025
Total deposits -$80.4 million (5.0%) to $1.5 billion since December 31, 2025
Borrowings +$120.0 million (171.4%) to $190.0 million at June 30, 2026
News Explained
Dividends and repurchases reduced the amount by which six-month earnings increased stockholders’ equity.
At June 30, 2026, NorthEast Community Bancorp reported that its six-month construction-loan originations totaled $606.7 million, including commitments and funded loans; $262.7 million, or 43.3%, was disbursed at loan closing, with the remaining funds to be disbursed over the loan terms.
That structure means the disclosed origination total includes lending that had been committed but not yet disbursed, rather than representing only cash already advanced.
The allowance for credit losses on off-balance-sheet commitments increased $284,000, or 32.3%, to $1.2 million from $879,000 at December 31, 2025; the company attributed the increase primarily to a $204.2 million, or 30.0%, rise in such commitments.
For existing holders, six-month net income of $19.7 million was partly offset in the equity bridge by $6.0 million of dividends and $4.7 million of stock repurchases and excise taxes, leaving stockholders’ equity up $10.9 million to $362.6 million.
News Market Reaction – NECB
+0.79%
+0.79%Session close to close
In the Jul 24 session, NECB gained 0.79%, reflecting a mild positive market reaction.
FY2025 earnings and assets increased while non-performing assets reached zero.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
NECB's recent earnings and dividend announcements generally aligned with subsequent price reactions, while the prior quarterly earnings release diverged negatively.
Key Terms
net interest margin, efficiency ratio, allowance for credit losses, non-performing loans
4 terms
net interest marginfinancial
"Our net interest margin decreased 21 basis points, or 3.9%, to 5.14%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
efficiency ratiofinancial
"an efficiency ratio of 41.99% for the three months ended June 30, 2026"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
allowance for credit lossesfinancial
"Our allowance for credit losses related to loans totaled $4.8 million"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
non-performing loansfinancial
"with no non-performing loans at either June 30, 2026 or December 31, 2025"
Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.
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.
CONTACT:
Kenneth A. Martinek 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 amounts)
(In thousands, except per 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 share amounts)
(In thousands, except per share 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 composition:
June 30, 2026
December 31, 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
Balance
and dividend
Yield
Balance
and dividend
Yield
(In thousands, except yield/cost information)
(In thousands, except yield/cost 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
Balance
and dividend
Yield
Balance
and dividend
Yield
(In thousands, except yield/cost information)
(In thousands, except yield/cost 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
%
FAQ
How did NorthEast Community Bancorp (NECB) perform financially in Q2 2026?
NorthEast Community Bancorp reported Q2 2026 net income of $9.8 million, down from $11.2 million in Q2 2025. According to NorthEast Community Bancorp, basic earnings per share were $0.75 and diluted earnings per share were $0.72 for the quarter.
What were NorthEast Community Bancorp’s (NECB) key profitability ratios for Q2 2026?
NorthEast Community Bancorp reported Q2 2026 ROA of 1.95% and ROE of 10.81%. According to NorthEast Community Bancorp, the efficiency ratio was 41.99%, reflecting operating expenses relative to revenue for the quarter ended June 30, 2026.
What was the asset quality of NorthEast Community Bancorp (NECB) as of June 30, 2026?
NorthEast Community Bancorp reported no non-performing loans and non-performing assets at 0.00% of total assets. According to NorthEast Community Bancorp, the allowance for credit losses on loans was $4.8 million, or 0.25% of total loans, at June 30, 2026.
How did loans and construction commitments change for NECB in the first half of 2026?
Net loans at NorthEast Community Bancorp increased $59.4 million, or 3.2%, to $1.9 billion. According to NorthEast Community Bancorp, construction loan commitments and loans-in-process rose about 38.9% year-over-year, with over $883 million in unfunded commitments outstanding at June 30, 2026.
What happened to deposits and borrowings at NorthEast Community Bancorp (NECB) by June 30, 2026?
Total deposits decreased $80.4 million, or 5.0%, to $1.5 billion, while borrowings rose $120.0 million. According to NorthEast Community Bancorp, borrowings reached $190.0 million, reflecting a funding shift away from certain higher-cost deposit categories.
How did NorthEast Community Bancorp’s (NECB) net interest margin change in Q2 2026?
NorthEast Community Bancorp’s Q2 2026 net interest margin was 5.14%, down from 5.35% in Q2 2025. According to NorthEast Community Bancorp, the decline reflected a lower yield on interest-earning assets that exceeded the reduction in funding costs.
What credit loss expense did NorthEast Community Bancorp (NECB) record in Q2 2026?
NorthEast Community Bancorp recorded total credit loss expense of $860,000 in Q2 2026, versus none a year earlier. According to NorthEast Community Bancorp, this included $680,000 for loans, $171,000 for off-balance sheet commitments, and $9,000 for held-to-maturity securities.
