NorthEast Community Bancorp, Inc. Reports Results for the Three and Nine Months Ended September 30, 2026
Deposit growth accompanied the elimination of borrowings, while lower lending yields narrowed the quarterly net interest margin.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
NorthEast Community Bancorp (Nasdaq: NECB) reported third-quarter 2026 net income of $10.7 million, down from the same quarter last year. Diluted earnings per share fell to $0.79 from $0.87, while quarterly net income previously totaled $11.9 million. Nine-month net income declined to $30.4 million, or $2.25 per diluted share, from $33.6 million, or $2.47 per diluted share.
Quarterly net interest income rose 0.6% to $26.1 million, but net interest margin narrowed to 5.09% from 5.38%. Non-interest results swung to a $185,000 loss from $1.0 million in income. Since December 31, 2025, net loans increased 8.6% to $2.0 billion and deposits grew 12.5% to $1.8 billion. Borrowings fell from $70.0 million to zero. At September 30, 2026, stockholders’ equity reached $370.7 million, up 5.4%, while loan-loss allowances remained $4.7 million. Third-quarter return on average assets was 2.00%, and the efficiency ratio was 41.50%.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet loans grew 8.6% to $2.0 billion from December 31, 2025 to September 30, 2026.
- Moderate pointDeposits rose 12.5% to $1.8 billion from December 31, 2025 to September 30, 2026.
- Moderate pointBorrowings fell $70.0 million to zero between December 31, 2025 and September 30, 2026.
- Moderate pointStockholders’ equity increased 5.4% to $370.7 million from December 31, 2025 to September 30, 2026.
- Minor pointConstruction loans increased $207.3 million during the nine months ended September 30, 2026.
7 minor points
- Minor pointQuarterly net interest income rose 0.6% to $26.1 million compared with third-quarter 2025.
- Minor pointQuarterly interest expense decreased 5.7% to $12.6 million compared with third-quarter 2025.
- Minor pointInterest-bearing liability costs fell to 3.52% in third-quarter 2026 from 3.91% a year earlier.
- Minor pointLoan originations totaled $966.4 million, including commitments and funded loans, during the first nine months of 2026.
- Minor pointConstruction commitments and loans-in-process increased approximately 18.2% at September 30, 2026 versus third-quarter 2025.
- Minor pointQuarterly charge-offs decreased to $37,000 from $75,000 in third-quarter 2025.
- Minor pointDividends declared totaled $9.3 million during the nine months ended September 30, 2026.
Negative
- Moderate pointQuarterly net income fell to $10.7 million from $11.9 million in third-quarter 2025.
- Moderate pointQuarterly net interest margin narrowed 29 basis points to 5.09% from 5.38% a year earlier.
- Minor pointQuarterly diluted EPS declined to $0.79 from $0.87 in third-quarter 2025.
- Minor pointNine-month net income decreased to $30.4 million from $33.6 million in the comparable 2025 period.
- Minor pointNine-month diluted EPS fell to $2.25 from $2.47 in the comparable 2025 period.
11 minor points
- Minor pointQuarterly interest and dividend income fell 1.5% to $38.7 million compared with third-quarter 2025.
- Minor pointInterest-earning asset yields declined to 7.54% in third-quarter 2026 from 8.15% a year earlier.
- Minor pointQuarterly non-interest results swung to a $185,000 loss from $1.0 million in income a year earlier.
- Minor pointCommercial and industrial loans decreased $37.0 million, or 24.6% during the first nine months of 2026.
- Minor pointResidential and other mortgage portfolios decreased $10.0 million, or 2.7% during the first nine months of 2026.
- Minor pointCash and cash equivalents declined 10.5% to $72.6 million from December 31, 2025 to September 30, 2026.
- Minor pointEquity securities recorded $1.3 million in market depreciation during the nine months ended September 30, 2026.
- Minor pointSavings deposits decreased $11.6 million, or 8.2% from December 31, 2025 to September 30, 2026.
- Minor pointOff-balance-sheet commitments exceeded $763 million at September 30, 2026, up 12.2% from December 31, 2025.
- Minor pointOff-balance-sheet credit-loss allowances increased 32.3% to $1.2 million from December 31, 2025 to September 30, 2026.
- Minor pointQuarterly recoveries fell to $8,000 from $99,000 in third-quarter 2025.
News Explained
The construction-originations total includes commitments as well as funded loans, so it is not all funds disbursed at closing.
At
For the nine months ended
Key Figures
- Third-quarter net income
- $10.7 million
- Three months ended September 30, 2026; compared with $11.9 million in 2025
- Third-quarter diluted EPS
- $0.79 per diluted share
- Three months ended September 30, 2026; compared with $0.87 in 2025
- Nine-month net income
- $30.4 million
- Nine months ended September 30, 2026; compared with $33.6 million in 2025
- Unfunded loan commitments
- Over $763 million
- Outstanding at September 30, 2026
- Total assets
- $2.2 billion
- At September 30, 2026; increased 7.4% from December 31, 2025
- Net loans
- $2.0 billion
- At September 30, 2026; increased 8.6% from December 31, 2025
- Total deposits
- $1.8 billion
- At September 30, 2026; increased 12.5% from December 31, 2025
- Net interest margin
- 5.09%
- Three months ended September 30, 2026; compared with 5.38% in 2025
Historical Context
-
Q2 net income declined year over year while construction commitments and loans-in-process increased.
-
Q1 net income declined year over year, alongside growth in construction loan commitments.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
net interest margin financial
efficiency ratio financial
allowance for credit losses financial
brokered certificates of deposit financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
WHITE PLAINS, N.Y., Oct. 22, 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
Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated “As we close out the third quarter of 2026 and begin the fourth quarter, we are pleased to report continuing growth of our loan portfolio, particularly in our construction loan portfolio.”
“Focusing on high demand, high growth submarkets in the Bronx, Rockland, Orange, and Sullivan Counties, we continue to grow the portfolio while also providing much needed housing in low- and moderate-income communities.”
“Demand for construction loans throughout these submarkets continues to demonstrate robust growth and we look forward to continuing our efforts as a responsible corporate citizen to meet this growing demand going forward.” Mr. Martinek continued.
“At September 30, 2026, construction loan commitments and loans-in-process outstanding increased by approximately
Highlights for the three months and nine months ended September 30, 2026 are as follows:
- Performance metrics continue to be strong with a return on average total assets ratio of
2.00% , a return on average shareholders’ equity ratio of11.54% , and an efficiency ratio of41.50% for the three months ended September 30, 2026. For the nine months ended September 30, 2026, the Company reported a return on average total assets ratio of1.97% , a return on average shareholders’ equity ratio of11.16% , and an efficiency ratio of42.36% . - Total assets increased
$152.5 million , or7.4% , to$2.2 billion at September 30, 2026 from$2.1 billion at December 31, 2025, driven by loan portfolio growth of$160.0 million , or8.6% , to$2.0 billion at September 30, 2026 from$1.9 billion at December 31, 2025. Our allowance for credit losses related to loans totaled$4.7 million , or0.23% of total loans at September 30, 2026, compared to$4.7 million , or0.25% of total loans at December 31, 2025. - Total stockholders’ equity increased by
$19.0 million , or5.4% , to$370.7 million , or16.73% of total assets as of September 30, 2026 from$351.7 million , or17.04% of total assets as of December 31, 2025.
Balance Sheet Summary
Total assets increased
Cash and cash equivalents decreased
Equity securities decreased
Securities held-to-maturity increased
Loans, net of the allowance for credit losses, increased
During the nine months ended September 30, 2026, we originated loans totaling
The allowance for credit losses related to loans was
The allowance for credit losses for off-balance sheet commitments increased
The allowance for credit losses for held-to-maturity securities increased
Premises and equipment decreased
Federal Home Loan Bank stock increased by
Bank owned life insurance (“BOLI”) increased
Accrued interest receivable increased
Right of use assets — operating decreased
Other assets increased
Total deposits increased
The increase of
The increase in brokered certificates of deposit was due to management’s strategy to reduce short term borrowings due to the potential for further increases in interest rates. The decrease in non-brokered listing services certificates of deposit was due to management’s strategy to reduce the cost of funds. 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
Borrowings decreased
Lease liability – operating decreased
Accounts payable and accrued expenses increased
Stockholders’ equity increased
Results of Operations for the Three Months Ended September 30, 2026 and 2025
Net Interest Income
Net interest income was
Total interest and dividend income decreased
The decrease in the yield on interest-earning assets was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025, partially offset by a 25 basis points increase in the Federal Funds rate in September 2026. These interest rate movements resulted in a decrease in the yield on our construction loans and commercial and industrial loans because the interest rates on these loans are indexed to the Prime Rate and change whenever the Prime Rate changes.
Interest expense decreased
Our net interest margin decreased 29 basis points, or
Credit Loss Expense
The Company recorded no credit loss expense for the three months ended September 30, 2026 and September 30, 2025.
With respect to the allowance for credit losses for loans, we charged off
We recorded recoveries of
Non-Interest Income
The Company recorded non-interest loss of
The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of
The increase of
Non-Interest Expense
Non-interest expense increased
Other non-interest operating expense increased
The increase of
Income Taxes
We recorded income tax expense of
Results of Operations for the Nine Months Ended September 30, 2026 and 2025
Net Interest Income
Net interest income was
Total interest and dividend income decreased
The decrease in the yield on interest-earning assets was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025, partially offset by a 25 basis points increase in the Federal Funds rate in September 2026. These interest rate movements resulted in a decrease in the yield on our construction loans and commercial and industrial loans because the interest rates on these loans are indexed to the Prime Rate and change whenever the Prime Rate changes.
Interest expense decreased
Net interest margin decreased 21 basis points, or
Credit Loss Expense
The Company recorded a credit loss expense of
The credit loss expense for loans of
The credit loss expense for off-balance sheet commitments of
The credit loss expense for loans of
With respect to the allowance for credit losses for loans, we charged off
We recorded recoveries of
Non-Interest Income
Non-interest income for the nine months ended September 30, 2026 was
The decrease in unrealized gain on equity securities was due to an unrealized loss of
The decrease of
Non-Interest Expense
Non-interest expense increased
Other non-interest expense increased
The increase of
Income Taxes
We recorded income tax expense of
Asset Quality
Non-performing assets totaled
Our ratio of non-performing assets to total assets was
The Company’s allowance for credit losses related to loans was
In addition, at September 30, 2026, the Company’s allowance for credit losses related to off-balance sheet commitments totaled
Capital
The Company’s total stockholders’ equity to assets ratio was
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 September 30, 2026, the Bank had a tier 1 leverage capital ratio of
The Company commenced its third stock repurchase program on December 10, 2025 whereby the Company is authorized to repurchase up to 1,400,435, or
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) | ||||||||
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (In thousands, except share | ||||||||
| and per share amounts) | ||||||||
| ASSETS | ||||||||
| Cash and amounts due from depository institutions | $ | 7,711 | $ | 10,456 | ||||
| Interest-bearing deposits | 64,918 | 70,719 | ||||||
| Total cash and cash equivalents | 72,629 | 81,175 | ||||||
| Certificates of deposit | 100 | 100 | ||||||
| Equity securities | 26,229 | 26,570 | ||||||
| Securities held-to-maturity (net of allowance for credit losses of | 18,674 | 18,315 | ||||||
| Loans receivable | 2,020,340 | 1,860,066 | ||||||
| Deferred loan costs, net | 36 | 268 | ||||||
| Allowance for credit losses | (4,723 | ) | (4,731 | ) | ||||
| Net loans | 2,015,653 | 1,855,603 | ||||||
| Premises and equipment, net | 25,038 | 25,377 | ||||||
| Investments in restricted stock, at cost | 543 | 410 | ||||||
| Bank owned life insurance | 26,990 | 26,433 | ||||||
| Accrued interest receivable | 12,854 | 12,228 | ||||||
| Property held for investment | 1,306 | 1,334 | ||||||
| Right of Use Assets – Operating | 4,114 | 4,656 | ||||||
| Right of Use Assets – Financing | 340 | 343 | ||||||
| Other assets | 11,567 | 10,964 | ||||||
| Total assets | $ | 2,216,037 | $ | 2,063,508 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Liabilities: | ||||||||
| Deposits: | ||||||||
| Non-interest bearing | $ | 325,624 | $ | 271,924 | ||||
| Interest bearing | 1,493,944 | 1,344,977 | ||||||
| Total deposits | 1,819,568 | 1,616,901 | ||||||
| Advance payments by borrowers for taxes and insurance | 2,875 | 2,352 | ||||||
| Borrowings | - | 70,000 | ||||||
| Lease Liability – Operating | 4,297 | 4,796 | ||||||
| Lease Liability – Financing | 464 | 434 | ||||||
| Accounts payable and accrued expenses | 18,183 | 17,325 | ||||||
| Total liabilities | 1,845,387 | 1,711,808 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | $ | — | $ | — | ||||
| Common stock, | 138 | 140 | ||||||
| Additional paid-in capital | 108,957 | 111,575 | ||||||
| Unearned Employee Stock Ownership Plan (“ESOP”) shares | (4,827 | ) | (5,218 | ) | ||||
| Retained earnings | 266,107 | 244,970 | ||||||
| Accumulated other comprehensive gain | 275 | 233 | ||||||
| Total stockholders’ equity | 370,650 | 351,700 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,216,037 | $ | 2,063,508 | ||||
| NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| (In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||
| INTEREST INCOME: | ||||||||||||||
| Loans | $ | 37,858 | $ | 38,281 | $ | 108,074 | $ | 111,903 | ||||||
| Interest-earning deposits | 482 | 716 | 1,638 | 2,824 | ||||||||||
| Securities | 331 | 282 | 988 | 798 | ||||||||||
| Total Interest Income | 38,671 | 39,279 | 110,700 | 115,525 | ||||||||||
| INTEREST EXPENSE: | ||||||||||||||
| Deposits | 11,409 | 11,929 | 33,421 | 37,915 | ||||||||||
| Borrowings | 1,159 | 1,401 | 2,372 | 2,303 | ||||||||||
| Financing lease | 10 | 10 | 30 | 29 | ||||||||||
| Total Interest Expense | 12,578 | 13,340 | 35,823 | 40,247 | ||||||||||
| Net Interest Income | 26,093 | 25,939 | 74,877 | 75,278 | ||||||||||
| Provision for credit loss | — | — | 860 | 237 | ||||||||||
| Net Interest Income after Provision for Credit Loss | 26,093 | 25,939 | 74,017 | 75,041 | ||||||||||
| NON-INTEREST (LOSS) INCOME: | ||||||||||||||
| Other loan fees and service charges | 688 | 638 | 1,907 | 1,989 | ||||||||||
| Loss on disposition of equipment | (10 | ) | - | (10 | ) | - | ||||||||
| Earnings on bank owned life insurance | 193 | 177 | 557 | 514 | ||||||||||
| Unrealized (loss) gain on equity securities | (1,098 | ) | 170 | (1,341 | ) | 521 | ||||||||
| Other | 42 | 29 | 140 | 83 | ||||||||||
| Total Non-Interest (Loss) Income | (185 | ) | 1,014 | 1,253 | 3,107 | |||||||||
| NON-INTEREST EXPENSES: | ||||||||||||||
| Salaries and employee benefits | 5,459 | 5,416 | 17,448 | 17,000 | ||||||||||
| Occupancy expense | 764 | 738 | 2,426 | 2,227 | ||||||||||
| Equipment | 235 | 225 | 679 | 695 | ||||||||||
| Outside data processing | 711 | 814 | 2,232 | 2,307 | ||||||||||
| Advertising | 22 | 115 | 108 | 340 | ||||||||||
| Real estate owned expense | - | 238 | - | 515 | ||||||||||
| Other | 3,562 | 2,805 | 9,358 | 8,394 | ||||||||||
| Total Non-Interest Expenses | 10,753 | 10,351 | 32,251 | 31,478 | ||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 15,155 | 16,602 | 43,019 | 46,670 | ||||||||||
| PROVISION FOR INCOME TAXES | 4,483 | 4,737 | 12,600 | 13,068 | ||||||||||
| NET INCOME | $ | 10,672 | $ | 11,865 | $ | 30,419 | $ | 33,602 | ||||||
| NORTHEAST COMMUNITY BANCORP, INC. SELECTED CONSOLIDATED FINANCIAL DATA (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||||
| Per share data: | ||||||||||||||||
| Earnings per share - basic | $ | 0.81 | $ | 0.90 | $ | 2.31 | $ | 2.54 | ||||||||
| Earnings per share - diluted | 0.79 | 0.87 | 2.25 | 2.47 | ||||||||||||
| Weighted average shares outstanding - basic | 13,131 | 13,252 | 13,156 | 13,228 | ||||||||||||
| Weighted average shares outstanding - diluted | 13,566 | 13,632 | 13,537 | 13,626 | ||||||||||||
| Performance ratios/data: | ||||||||||||||||
| Return on average total assets | 2.00 | % | 2.35 | % | 1.97 | % | 2.25 | % | ||||||||
| Return on average shareholders' equity | 11.54 | % | 13.84 | % | 11.16 | % | 13.40 | % | ||||||||
| Net interest income | $ | 26,093 | $ | 25,939 | $ | 74,877 | $ | 75,278 | ||||||||
| Net interest margin | 5.09 | % | 5.38 | % | 5.07 | % | 5.28 | % | ||||||||
| Efficiency ratio | 41.50 | % | 38.40 | % | 42.36 | % | 40.16 | % | ||||||||
| Net charge-off ratio | 0.01 | % | 0.00 | % | 0.04 | % | 0.01 | % | ||||||||
| Loan portfolio composition: | September 30, 2026 | December 31, 2025 | ||||||||||||||
| One-to-four family | $ | 3,010 | $ | 3,114 | ||||||||||||
| Multi-family | 301,486 | 306,508 | ||||||||||||||
| Mixed-use | 21,862 | 25,197 | ||||||||||||||
| Total residential real estate | 326,358 | 334,819 | ||||||||||||||
| Non-residential real estate | 36,907 | 38,463 | ||||||||||||||
| Construction | 1,543,624 | 1,336,329 | ||||||||||||||
| Commercial and industrial | 113,408 | 150,397 | ||||||||||||||
| Consumer | 43 | 58 | ||||||||||||||
| Gross loans | 2,020,340 | 1,860,066 | ||||||||||||||
| Deferred loan cost, net | 36 | 268 | ||||||||||||||
| Total loans | $ | 2,020,376 | $ | 1,860,334 | ||||||||||||
| Asset quality data: | ||||||||||||||||
| Loans past due over 90 days and still accruing | $ | - | $ | - | ||||||||||||
| Non-accrual loans | 17,444 | - | ||||||||||||||
| Total non-performing assets | $ | 17,444 | $ | — | ||||||||||||
| Allowance for credit losses to total loans | 0.23 | % | 0.25 | % | ||||||||||||
| Allowance for credit losses to non-performing loans | 27.08 | % | 0.00 | % | ||||||||||||
| Non-performing loans to total loans | 0.86 | % | 0.00 | % | ||||||||||||
| Non-performing assets to total assets | 0.79 | % | 0.00 | % | ||||||||||||
| Bank's Regulatory Capital ratios: | ||||||||||||||||
| Total capital to risk-weighted assets | 15.15 | % | 15.62 | % | ||||||||||||
| Common equity tier 1 capital to risk-weighted assets | 14.90 | % | 15.36 | % | ||||||||||||
| Tier 1 capital to risk-weighted assets | 14.90 | % | 15.36 | % | ||||||||||||
| Tier 1 leverage ratio | 16.79 | % | 16.39 | % | ||||||||||||
| NORTHEAST COMMUNITY BANCORP, INC. NET INTEREST MARGIN ANALYSIS (Unaudited) | ||||||||||||||||||||||
| Three Months Ended September 30, 2026 | Three Months Ended September 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 | $ | 1,962,183 | $ | 37,858 | 7.72 | % | $ | 1,826,726 | $ | 38,281 | 8.38 | % | ||||||||||
| Securities | 45,008 | 323 | 2.87 | % | 39,901 | 275 | 2.76 | % | ||||||||||||||
| Federal Home Loan Bank stock | 543 | 8 | 5.89 | % | 1,070 | 7 | 2.62 | % | ||||||||||||||
| Other interest-earning assets | 44,799 | 482 | 4.30 | % | 61,177 | 716 | 4.68 | % | ||||||||||||||
| Total interest-earning assets | 2,052,533 | 38,671 | 7.54 | % | 1,928,874 | 39,279 | 8.15 | % | ||||||||||||||
| Allowance for credit losses | (4,752 | ) | (4,724 | ) | ||||||||||||||||||
| Non-interest-earning assets | 90,933 | 91,219 | ||||||||||||||||||||
| Total assets | $ | 2,138,714 | $ | 2,015,369 | ||||||||||||||||||
| Interest-bearing demand deposit | $ | 377,489 | $ | 2,894 | 3.07 | % | $ | 298,408 | $ | 2,559 | 3.43 | % | ||||||||||
| Savings and club accounts | 130,622 | 657 | 2.01 | % | 134,258 | 730 | 2.17 | % | ||||||||||||||
| Certificates of deposit | 798,602 | 7,858 | 3.94 | % | 807,285 | 8,640 | 4.28 | % | ||||||||||||||
| Total interest-bearing deposits | 1,306,713 | 11,409 | 3.49 | % | 1,239,951 | 11,929 | 3.85 | % | ||||||||||||||
| Borrowed money | 121,146 | 1,169 | 3.86 | % | 125,346 | 1,411 | 4.50 | % | ||||||||||||||
| Total interest-bearing liabilities | 1,427,859 | 12,578 | 3.52 | % | 1,365,297 | 13,340 | 3.91 | % | ||||||||||||||
| Non-interest-bearing demand deposit | 316,512 | 284,100 | ||||||||||||||||||||
| Other non-interest-bearing liabilities | 24,473 | 23,046 | ||||||||||||||||||||
| Total liabilities | 1,768,844 | 1,672,443 | ||||||||||||||||||||
| Equity | 369,870 | 342,926 | ||||||||||||||||||||
| Total liabilities and equity | $ | 2,138,714 | $ | 2,015,369 | ||||||||||||||||||
| Net interest income / interest spread | $ | 26,093 | 4.01 | % | $ | 25,939 | 4.24 | % | ||||||||||||||
| Net interest rate margin | 5.09 | % | 5.38 | % | ||||||||||||||||||
| Net interest earning assets | $ | 624,674 | $ | 563,577 | ||||||||||||||||||
| Average interest-earning assets | ||||||||||||||||||||||
| to interest-bearing liabilities | 143.75 | % | 141.28 | % | ||||||||||||||||||
| NORTHEAST COMMUNITY BANCORP, INC. NET INTEREST MARGIN ANALYSIS (Unaudited) | ||||||||||||||||||||||
| Nine Months Ended September 30, 2026 | Nine Months Ended September 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 | $ | 1,871,662 | $ | 108,074 | 7.70 | % | $ | 1,783,195 | $ | 111,903 | 8.37 | % | ||||||||||
| Securities | 45,158 | 966 | 2.85 | % | 38,176 | 775 | 2.71 | % | ||||||||||||||
| Federal Home Loan Bank stock | 497 | 22 | 5.90 | % | 637 | 23 | 4.81 | % | ||||||||||||||
| Other interest-earning assets | 51,729 | 1,638 | 4.22 | % | 79,145 | 2,824 | 4.76 | % | ||||||||||||||
| Total interest-earning assets | 1,969,046 | 110,700 | 7.50 | % | 1,901,153 | 115,525 | 8.10 | % | ||||||||||||||
| Allowance for credit losses | (4,692 | ) | (4,892 | ) | ||||||||||||||||||
| Non-interest-earning assets | 91,797 | 94,435 | ||||||||||||||||||||
| Total assets | $ | 2,056,151 | $ | 1,990,696 | ||||||||||||||||||
| Interest-bearing demand deposit | $ | 349,140 | $ | 7,999 | 3.05 | % | $ | 290,663 | $ | 7,405 | 3.40 | % | ||||||||||
| Savings and club accounts | 133,457 | 1,989 | 1.99 | % | 138,116 | 2,221 | 2.14 | % | ||||||||||||||
| Certificates of deposit | 803,627 | 23,433 | 3.89 | % | 860,890 | 28,289 | 4.38 | % | ||||||||||||||
| Total interest-bearing deposits | 1,286,224 | 33,421 | 3.46 | % | 1,289,669 | 37,915 | 3.92 | % | ||||||||||||||
| Borrowed money | 85,718 | 2,402 | 3.74 | % | 69,812 | 2,332 | 4.45 | % | ||||||||||||||
| Total interest-bearing liabilities | 1,371,942 | 35,823 | 3.48 | % | 1,359,481 | 40,247 | 3.95 | % | ||||||||||||||
| Non-interest-bearing demand deposit | 297,161 | 276,529 | ||||||||||||||||||||
| Other non-interest-bearing liabilities | 23,754 | 20,433 | ||||||||||||||||||||
| Total liabilities | 1,692,857 | 1,656,443 | ||||||||||||||||||||
| Equity | 363,294 | 334,253 | ||||||||||||||||||||
| Total liabilities and equity | $ | 2,056,151 | $ | 1,990,696 | ||||||||||||||||||
| Net interest income / interest spread | $ | 74,877 | 4.01 | % | $ | 75,278 | 4.15 | % | ||||||||||||||
| Net interest rate margin | 5.07 | % | 5.28 | % | ||||||||||||||||||
| Net interest earning assets | $ | 597,104 | $ | 541,672 | ||||||||||||||||||
| Average interest-earning assets | ||||||||||||||||||||||
| to interest-bearing liabilities | 143.52 | % | 139.84 | % | ||||||||||||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were NECB’s third-quarter 2026 earnings?
NorthEast Community Bancorp earned $10.7 million, or $0.79 per diluted share, in the three months ended September 30, 2026. That compares with $11.9 million, or $0.87 per diluted share, in the same period of 2025.
Why did NECB’s net interest margin decline in third-quarter 2026?
The company attributed the decline to lower asset yields that exceeded the reduction in funding costs. A 75-basis-point Federal Funds rate decrease from September 2025 to December 2025 was partially offset by a 25-basis-point increase in September 2026. Construction and commercial and industrial loan rates are indexed to the Prime Rate.
Why did NECB’s loan-loss allowance remain unchanged despite loan growth?
The company attributed the unchanged $4.7 million loan-loss allowance to a shift toward construction loans, which carry a lower allowance rate. Portfolios carrying higher allowance rates because of longer terms or higher credit risks decreased. The allowance represented 0.23% of total loans at September 30, 2026, compared with 0.25% at December 31, 2025.
How much of NECB’s 2026 construction loan originations was disbursed at closing?
Of $914.8 million in construction loan originations during the first nine months of 2026, $393.5 million, or 43.0%, was disbursed at closing. The remaining funds are to be disbursed over the terms of the construction loans.