NorthEast Community Bancorp (Nasdaq: NECB) reported net income of $10.0 million for Q1 2026, or $0.76 per basic share and $0.74 diluted. Key balance-sheet moves: construction loan commitments +37.8% YoY with $819 million unfunded, total assets of $2.0 billion, and no non-performing assets at March 31, 2026.
Performance metrics: ROA 1.97%, ROE 11.13%, efficiency ratio 43.64%.
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Positive
Construction loan commitments +37.8% year-over-year, with $819 million unfunded commitments
No non-performing assets; non-performing assets to total assets 0.00%
Return on average assets 1.97% and return on average equity 11.13%
Borrowings reduced by $50.0 million (71.4%), lowering cost of funds
Negative
Total non-interest income down 35.5% quarter-over-quarter, driven by $421,000 unrealized equity loss
Net interest margin decreased 12 basis points to 4.99%, reducing net interest income pressure
News Market Reaction – NECB
-2.74%
-2.74%Session close to close
In the Apr 29 session, NECB declined 2.74%, reflecting a moderate negative market reaction.
This announcement highlights steady profitability and conservative credit quality at NECB. Q1 net in...
Analysis
This announcement highlights steady profitability and conservative credit quality at NECB. Q1 net income was $10.0M with a return on average assets of 1.97% and an efficiency ratio of 43.64%, while non‑performing assets remained at 0.00%. Construction loan commitments and loans‑in‑process rose, with unfunded commitments of over $819M. Investors may watch margin trends, construction exposure performance, and future dividend or buyback decisions alongside regulatory capital ratios above 15% total risk‑based capital.
Key Figures
Q1 2026 net income:$10.0MQ1 2025 net income:$10.6MBasic EPS:$0.76+5 more
8 metrics
Q1 2026 net income$10.0MThree months ended March 31, 2026
Q1 2025 net income$10.6MThree months ended March 31, 2025
Basic EPS$0.76Three months ended March 31, 2026
Return on avg assets1.97%Three months ended March 31, 2026
Return on avg equity11.13%Three months ended March 31, 2026
Efficiency ratio43.64%Three months ended March 31, 2026
Net interest margin4.99%Three months ended March 31, 2026
Unfunded loan commitments$819MTotal unfunded construction loan commitments at March 31, 2026
Announced third stock repurchase program authorizing up to 1,400,435 shares.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
Recent dividends and earnings updates have generally seen modestly positive price reactions, while buyback news showed a slight negative divergence.
Recent Company History
Over the last few months, NECB has highlighted steady capital returns and strong fundamentals. A $0.20 quarterly dividend was declared on Mar 19, 2026, following a similar dividend on Dec 18, 2025, with both announcements seeing small positive moves. Q4 and FY 2025 results on Jan 28, 2026 featured net income of $44.4M for the year and non‑performing assets at $0, which the market also welcomed. A third stock repurchase program announced on Dec 8, 2025 drew a slight negative reaction, showing occasional divergence on capital actions.
Key Terms
allowance for credit losses, non-performing loans, non-performing assets, net interest margin, +4 more
8 terms
allowance for credit lossesfinancial
"Our allowance for credit losses related to loans totaled $4.6 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
"asset quality metrics continue to remain strong with no non-performing loans..."
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.
non-performing assetsfinancial
"non-performing assets to total assets were 0.00% at both March 31, 2026..."
Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.
net interest marginfinancial
"Our net interest margin decreased 12 basis points, or 2.4%, to 4.99%..."
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.
basis pointsfinancial
"decrease in the yield on interest-earning assets by 61 basis points..."
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
bank owned life insurancefinancial
"Bank owned life insurance (“BOLI”) increased $179,000, or 0.7%..."
Bank owned life insurance is a type of life insurance a bank buys on the lives of its employees so the bank, rather than the employee’s family, receives the payout when a covered person dies. It acts like a long-term asset that pays income and can help cover costs such as employee benefits or unexpected losses; investors watch it because the holding affects a bank’s reported earnings, cash flow stability, and capital position much like a conservative investment portfolio would.
tier 1 leverage capital ratiofinancial
"the Bank had a tier 1 leverage capital ratio of 16.76%..."
The Tier 1 leverage capital ratio measures a bank’s core financial cushion—mainly equity and retained profits—against its total assets, showing what share of its balance sheet is funded by high-quality capital rather than borrowed money. Think of it as the percentage of a building supported by solid pillars instead of temporary scaffolding; a higher ratio means the bank can better absorb losses and is less likely to need outside help, which matters to investors assessing safety, regulatory compliance, dividend risk and long-term stability.
total risk-based capital ratiofinancial
"and a total risk-based capital ratio of 15.73%."
The total risk-based capital ratio measures a financial firm's cushion against losses by comparing its available capital to its assets after those assets are adjusted for how risky they are. Think of it as the size of a safety net relative to the weight of everything being balanced on it: the bigger the ratio, the more able the firm is to absorb bad outcomes without defaulting or needing help. Investors watch this number because it signals regulatory strength, solvency, and how much room the firm has to pay dividends, lend or grow safely.
WHITE PLAINS, N.Y., April 29, 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 $10.0 million, or $0.76 per basic share and $0.74 per diluted share, for the three months ended March 31, 2026 compared to net income of $10.6 million, or $0.80 per basic share and $0.78 per diluted share, for the three months ended March 31, 2025.
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 meeting this growing demand going forward. At March 31, 2026, construction loan commitments and loans-in-process outstanding increased by approximately 37.8% as compared to the first quarter of 2025, with over $819 million in total unfunded loan commitments outstanding, and represents a 20.6% increase over the amount of such total commitments outstanding at December 31, 2025.”
Highlights for the three months ended March 31, 2026 are as follows:
Performance metrics continue to be strong with a return on average total assets ratio of 1.97%, a return on average shareholders’ equity ratio of 11.13%, and an efficiency ratio of 43.64% for the three months ended March 31, 2026.
Asset quality metrics continue to remain strong with no non-performing loans at either March 31, 2026 or December 31, 2025, and non-performing assets to total assets were 0.00% at both March 31, 2026 and at December 31, 2025. Our allowance for credit losses related to loans totaled $4.6 million, or 0.25% total loans at March 31, 2026 compared to $4.7 million, or 0.25% of total loans at December 31, 2025.
Total stockholders’ equity increased by $4.6 million, or 1.3%, to $356.3 million, or 17.59% of total assets as of March 31, 2026 from $351.7 million, or 17.04% of total assets as of December 31, 2025.
Balance Sheet Summary
Total assets decreased $38.4 million, or 1.9%, to $2.0 billion at March 31, 2026, from $2.1 billion at December 31, 2025. The decrease in assets was primarily due to decreases in net loans of $31.8 million, cash and cash equivalents of $5.0 million, and other assets of $2.0 million.
Cash and cash equivalents decreased $5.0 million, or 6.1%, to $76.2 million at March 31, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially funded a decrease of $50.0 million in borrowings.
Equity securities increased $879,000, or 3.3%, to $27.4 million at March 31, 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 three months ended March 31, 2026, partially offset by market depreciation of $121,000 due to market interest rate volatility during the three months ended March 31, 2026.
Securities held-to-maturity decreased $150,000, or 0.8%, to $18.2 million at March 31, 2026 from $18.3 million at December 31, 2025 due to pay-downs of various investment securities.
Loans, net of the allowance for credit losses, decreased $31.8 million, or 1.7%, to $1.8 billion at March 31, 2026 from $1.9 billion at December 31, 2025. The decrease in loans consisted of decreases of $16.1 million in construction loans, $14.3 million in multi-family loans, $610,000 in commercial and industrial loans, $494,000 in mixed-use loans, $258,000 in non-residential loans, $34,000 in one-to-four family loans, and $21,000 in consumer loans. The decrease in our construction loan portfolio was due to normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions.
During the three months ended March 31, 2026, we originated loans totaling $266.1 million, which includes commitments and funded loans, consisting primarily of $244.2 million in construction loans and $21.8 million in commercial and industrial loans. The $244.2 million in construction loans had $99.5 million, or 40.7%, disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans. The commercial and industrial loans had $18.9 million, or 86.7%, disbursed at loan closing.
The allowance for credit losses related to loans decreased to $4.6 million as of March 31, 2026, from $4.7 million as of December 31, 2025. The decrease in the allowance for credit losses related to loans was due to charge-offs totaling $27,000 and a provision for credit losses reduction of $112,000 to the allowance for credit losses related to loans due to a decrease of $31.8 million in the loan portfolio. The provision for credit losses reduction of $112,000 to the allowance for credit losses related to loans was offset by a provision for credit losses of $112,000 to the allowance for credit losses related to off-balance sheet commitments.
The allowance for credit losses for off-balance sheet commitments increased $112,000, or 12.7%, to $991,000 at March 31, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $140.0 million, or 20.6%, in off-balance sheet commitments from December 31, 2025 to March 31, 2026.
Premises and equipment decreased $199,000, or 0.8%, to $25.2 million at March 31, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets.
Federal Home Loan Bank stock was $410,000 and property held for investment was $1.3 million at both March 31, 2026 and December 31, 2025.
Bank owned life insurance (“BOLI”) increased $179,000, or 0.7%, to $26.6 million at March 31, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value.
Accrued interest receivable decreased $152,000, or 1.2%, to $12.1 million at March 31, 2026 from $12.2 million at December 31, 2025 due to a decrease of $31.9 million in the loan portfolio.
Right of use assets — operating decreased $179,000, or 3.8%, to $4.5 million at March 31, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of the right of use assets.
Other assets decreased $2.0 million, or 18.0%, to $9.0 million at March 31, 2026 from $11.0 million at December 31, 2025 due to decreases of $2.2 million in tax assets, partially offset by increases of $143,000 in prepaid expenses and $57,000 in suspense accounts.
Total deposits increased $9.4 million, or 0.6%, to $1.6 billion at March 31, 2026 from $1.6 billion at December 31, 2025. The increase in deposits was primarily due to increases in NOW/money market accounts of $50.0 million, or 16.5% and non-interest bearing deposits of $25.0 million, or 9.2%, partially offset by decreases in certificates of deposit of $57.1 million, or 6.3%, and savings account balances of $8.5 million, or 6.0%. The decrease of $57.1 million in certificates of deposit consisted of decreases in brokered certificates of deposit of $40.6 million, or 11.0%, non-brokered listing services certificates of deposit of $5.4 million, or 6.2%, and retail certificates of deposit of $11.2 million, or 2.5%.
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 $572,000, or 24.3%, to $2.9 million at March 31, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers.
Borrowings decreased $50.0 million, or 71.4%, to $20.0 million at March 31, 2026 from $70.0 million at December 31, 2025 due primarily to management’s strategy to reduce the cost of funds.
Lease liability – operating decreased $163,000, or 3.4%, to $4.6 million at March 31, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.
Accounts payable and accrued expenses decreased $2.8 million, or 15.9%, to $14.6 million at March 31, 2026 from $17.3 million at December 31, 2025 due primarily to decreases in accrued expense of $2.9 million and accrued interest expense of $438,000, partially offset by increases in suspense account – loan closings of $217,000, deferred compensation of $158,000, and accounts payable of $40,000.
Stockholders’ equity increased $4.6 million, or 1.3% to $356.3 million at March 31, 2026, from $351.7 million at December 31, 2025. The increase in stockholders’ equity was due to net income of $10.0 million for the three months ended March 31, 2026, an increase of $178,000 in earned employee stock ownership plan shares coupled with a reduction of $130,000 in unearned employee stock ownership plan shares, the amortization expense of $547,000 relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, $37,000 in stock options exercised, and $8,000 in other comprehensive income. These increases were offset by stock repurchases and excise taxes of $3.6 million and dividends declared of $2.7 million.
Results of Operations for the Three Months Ended March 31, 2026 and 2025
Net Interest Income
Net interest income was $24.1 million for the three months ended March 31, 2026, as compared to $24.3 million for the three months ended March 31, 2025. The decrease in net interest income of $130,000, or 0.5%, 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 $2.2 million, or 5.9%, to $36.0 million for the three months ended March 31, 2026 from $38.2 million for the three months ended March 31, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets by 61 basis points from 8.05% for the three months ended March 31, 2025 to 7.44% for the three months ended March 31, 2026, partially offset by an increase in the average balance of interest-earning assets of $35.2 million, or 1.9%, to $1.9 billion for the three months ended March 31, 2026 from $1.9 billion for the three months ended March 31, 2025.
Interest expense decreased $2.1 million, or 15.1%, to $11.8 million for the three months ended March 31, 2026 from $13.9 million for the three months ended March 31, 2025. The decrease in interest expense was due to a decrease in the cost of interest-bearing liabilities by 58 basis points from 4.05% for the three months ended March 31, 2025 to 3.47% for the three months ended March 31, 2026. The decrease in interest expense was also due to a decrease in the average balance of interest-bearing liabilities of $9.9 million, or 0.7%, to $1.4 billion for the three months ended March 31, 2026 from $1.4 billion for the three months ended March 31, 2025.
Our net interest margin decreased 12 basis points, or 2.4%, to 4.99% for the three months ended March 31, 2026 compared to 5.11% for the three months ended March 31, 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 no credit loss expense for the three months ended March 31, 2026 compared to a credit loss expense of $237,000 for the three months ended March 31, 2025.
The credit loss expense of $237,000 for the three months ended March 31, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000. The credit loss expense for loans of $62,000 for the three months ended March 31, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet commitments of $175,000 for the three months ended March 31, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.
With respect to the allowance for credit losses for loans, we charged-off $27,000 during the quarter ended March 31, 2026, as compared to charge-offs of $117,000 during the quarter ended March 31, 2025. The charge-offs during both periods were against various unpaid overdrafts in our demand deposit accounts.
We recorded no recoveries during the quarter ended March 31, 2026 compared to recoveries of $352,000 during the quarter ended March 31, 2025. The recoveries of $352,000 during the quarter ended March 31, 2025 were comprised of recoveries of $350,000 regarding a previously charged-off non-residential mortgage loan and $2,000 from a previously charged-off unpaid overdraft on a demand deposit account.
Non-Interest Income
Non-interest income for the three months ended March 31, 2026 was $796,000 compared to non-interest income of $1.2 million for the three months ended March 31, 2025. The decrease of $439,000, or 35.5%, in total non-interest income was primarily due to decreases of $421,000 in unrealized gain/(loss) on equity securities and $71,000 in other loan fees and service charges, partially offset by increases of $41,000 in miscellaneous other non-interest income and $12,000 in BOLI income.
The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $121,000 on equity securities during the quarter ended March 31, 2026 compared to an unrealized gain of $300,000 on equity securities during the quarter ended March 31, 2025. The unrealized loss of $121,000 and unrealized gain of $300,000 on equity securities during the quarters ended March 31, 2026 and 2025, respectively, were due to market interest rate volatility during both periods.
The decrease of $71,000 in other loan fees and service charges was due to a decrease of $143,000 in miscellaneous loan fees, partially offset by an increase of $72,000 in ATM/debit card/ACH fees. The increase of $41,000 in miscellaneous other non-interest income was due to general accrual adjustments during the quarter. The increase of $12,000 in BOLI income was due to an increase in the yield on BOLI assets.
Non-Interest Expense
Non-interest expense increased $260,000, or 2.4%, to $10.9 million for the three months ended March 31, 2026 from $10.6 million for the three months ended March 31, 2025. The increase resulted primarily from increases of $239,000 in salaries and employee benefits, $127,000 in occupancy expense, $61,000 in outside data processing expense, and $6,000 in equipment expense, partially offset by decreases of $84,000 in other operating expense, $59,000 in advertising expense, and $30,000 in real estate owned expense.
Income Taxes
We recorded income tax expense of $4.1 million for both three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2026, we had approximately $248,000 in tax exempt income, compared to approximately $204,000 in tax exempt income for the three months ended March 31, 2025. Our effective income tax rate was 29.2% for the three months ended March 31, 2026 compared to 27.8% for the three months ended March 31, 2025.
Asset Quality
We had no non-performing assets at March 31, 2026 and December 31, 2025. Our ratio of non-performing assets to total assets was 0.00% at March 31, 2026 and December 31, 2025.
The Company’s allowance for credit losses related to loans was $4.6 million, or 0.25% of total loans as of March 31, 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 March 31, 2026, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of inherent losses in the loan portfolio that were both probable and reasonably estimable.
In addition, at March 31, 2026, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $991,000 and the allowance for credit losses related to held-to-maturity debt securities totaled $126,000.
Capital
The Company’s total stockholders’ equity to assets ratio was 17.59% as of March 31, 2026. At March 31, 2026, the Company had the ability to borrow $866.7 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 March 31, 2026, the Bank had a tier 1 leverage capital ratio of 16.76% and a total risk-based capital ratio of 15.73%.
The Company completed its first stock repurchase program on April 14, 2023 whereby the Company repurchased 1,637,794 shares, or 10%, of the Company’s issued and outstanding common stock. The cost of the first stock repurchase program totaled $23.0 million, including commission costs and Federal excise taxes.
The Company commenced its second stock repurchase program on May 30, 2023 whereby the Company was to repurchase 1,509,218, or 10%, of the Company’s issued and outstanding common stock. The Company terminated its second stock repurchase program on December 31, 2025 whereby the Company had repurchased 1,091,174, or 7.2% of the Company’s issued and outstanding common stock at the commencement of the second stock repurchase program. The cost of the second repurchase program totaled $17.2 million, including commission costs and Federal excise taxes.
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 March 31, 2026, the Company had repurchased 196,438 shares of common stock under its third repurchase program, at a cost of $4.5 million, including commission costs and Federal excise taxes.
About NorthEast Community Bancorp
NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.
Forward Looking Statement
This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation or recessionary conditions and their impact on regional and national economic conditions), legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts, the 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)
March 31,
December 31,
2026
2025
(In thousands, except share
and per share amounts)
ASSETS
Cash and amounts due from depository institutions
$
13,996
$
10,456
Interest-bearing deposits
62,215
70,719
Total cash and cash equivalents
76,211
81,175
Certificates of deposit
100
100
Equity securities
27,449
26,570
Securities held-to-maturity (net of allowance for credit losses of $126 and $126, respectively)
18,165
18,315
Loans receivable
1,828,208
1,860,066
Deferred loan costs, net
174
268
Allowance for credit losses
(4,592
)
(4,731
)
Net loans
1,823,790
1,855,603
Premises and equipment, net
25,178
25,377
Investments in restricted stock, at cost
410
410
Bank owned life insurance
26,613
26,433
Accrued interest receivable
12,076
12,228
Property held for investment
1,324
1,334
Right of Use Assets – Operating
4,477
4,656
Right of Use Assets – Financing
342
343
Other assets
8,992
10,964
Total assets
$
2,025,127
$
2,063,508
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing
$
296,923
$
271,924
Interest bearing
1,329,354
1,344,977
Total deposits
1,626,277
1,616,901
Advance payments by borrowers for taxes and insurance
2,924
2,352
Borrowings
20,000
70,000
Lease Liability – Operating
4,633
4,796
Lease Liability – Financing
444
434
Accounts payable and accrued expenses
14,564
17,325
Total liabilities
1,668,842
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; 13,815,407 shares and 13,963,432 shares outstanding, respectively
138
140
Additional paid-in capital
108,730
111,575
Unearned Employee Stock Ownership Plan (“ESOP”) shares
(5,088
)
(5,218
)
Retained earnings
252,264
244,970
Accumulated other comprehensive income
241
233
Total stockholders’ equity
356,285
351,700
Total liabilities and stockholders’ equity
$
2,025,127
$
2,063,508
NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Quarter Ended March 31,
2026
2025
(In thousands, except per share amounts)
INTEREST INCOME:
Loans
$
35,042
$
36,882
Interest-earning deposits
602
1,081
Securities
325
244
Total Interest Income
35,969
38,207
INTEREST EXPENSE:
Deposits
11,402
13,933
Borrowings
423
-
Financing lease
10
10
Total Interest Expense
11,835
13,943
Net Interest Income
24,134
24,264
Provision for credit loss
—
237
Net Interest Income after Provision for Credit Loss
24,134
24,027
NON-INTEREST INCOME:
Other loan fees and service charges
669
740
Earnings on bank owned life insurance
179
167
Unrealized (loss) gain on equity securities
(121
)
300
Other
69
28
Total Non-Interest Income
796
1,235
NON-INTEREST EXPENSES:
Salaries and employee benefits
6,172
5,933
Occupancy expense
874
747
Equipment
223
217
Outside data processing
796
735
Advertising
43
102
Real estate owned expense
-
30
Other
2,771
2,855
Total Non-Interest Expenses
10,879
10,619
INCOME BEFORE PROVISION FOR INCOME TAXES
14,051
14,643
PROVISION FOR INCOME TAXES
4,099
4,076
NET INCOME
$
9,952
$
10,567
NORTHEAST COMMUNITY BANCORP, INC. SELECTED CONSOLIDATED FINANCIAL DATA (Unaudited)
Quarter Ended March 31,
2026
2025
(In thousands, except per share amounts)
Per share data:
Earnings per share - basic
$
0.76
$
0.80
Earnings per share - diluted
0.74
0.78
Weighted average shares outstanding - basic
13,176
13,192
Weighted average shares outstanding - diluted
13,522
13,560
Performance ratios/data:
Return on average total assets
1.97
%
2.12
%
Return on average shareholders' equity
11.13
%
12.98
%
Net interest income
$
24,134
$
24,264
Net interest margin
4.99
%
5.11
%
Efficiency ratio
43.64
%
41.64
%
Net charge-off (recovery) ratio
0.01
%
(0.05
)%
Loan portfolio composition:
March 31, 2026
December 31, 2025
One-to-four family
$
3,080
$
3,114
Multi-family
292,160
306,508
Mixed-use
24,703
25,197
Total residential real estate
319,943
334,819
Non-residential real estate
38,205
38,463
Construction
1,320,236
1,336,329
Commercial and industrial
149,787
150,397
Consumer
37
58
Gross loans
1,828,208
1,860,066
Deferred loan costs, net
174
268
Total loans
$
1,828,382
$
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
15.73
%
15.62
%
Common equity tier 1 capital to risk-weighted assets
15.47
%
15.36
%
Tier 1 capital to risk-weighted assets
15.47
%
15.36
%
Tier 1 leverage ratio
16.76
%
16.39
%
NORTHEAST COMMUNITY BANCORP, INC. NET INTEREST MARGIN ANALYSIS (Unaudited)
Quarter Ended March 31, 2026
Quarter Ended March 31, 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
$
1,828,106
$
35,042
7.67
%
$
1,767,849
$
36,882
8.35
%
Securities
45,092
319
2.83
%
36,751
235
2.56
%
Federal Home Loan Bank stock
410
6
5.85
%
397
9
9.07
%
Other interest-earning assets
60,090
602
4.01
%
93,476
1,081
4.63
%
Total interest-earning assets
1,933,698
35,969
7.44
%
1,898,473
38,207
8.05
%
Allowance for credit losses
(4,731
)
(4,827
)
Non-interest-earning assets
91,211
96,493
Total assets
$
2,020,178
$
1,990,139
Interest-bearing demand deposit
$
322,529
$
2,453
3.04
%
$
274,630
$
2,445
3.56
%
Savings and club accounts
135,826
670
1.97
%
138,903
730
2.10
%
Certificates of deposit
858,274
8,279
3.86
%
962,084
10,758
4.47
%
Total interest-bearing deposits
1,316,629
11,402
3.46
%
1,375,617
13,933
4.05
%
Borrowed money
49,064
433
3.53
%
-
10
-
Total interest-bearing liabilities
1,365,693
11,835
3.47
%
1,375,617
13,943
4.05
%
Non-interest-bearing demand deposit
274,984
270,874
Other non-interest-bearing liabilities
21,990
18,086
Total liabilities
1,662,667
1,664,577
Equity
357,511
325,562
Total liabilities and equity
$
2,020,178
$
1,990,139
Net interest income / interest spread
$
24,134
3.97
%
$
24,264
4.00
%
Net interest rate margin
4.99
%
5.11
%
Net interest earning assets
$
568,005
$
522,856
Average interest-earning assets
to interest-bearing liabilities
141.59
%
138.01
%
FAQ
What did NECB report for net income and EPS for Q1 2026?
NECB reported net income of $10.0 million, or $0.76 per basic share and $0.74 per diluted share. According to the company, this compares to $10.6 million and $0.80 basic in Q1 2025.
How large are NECB's construction loan commitments at March 31, 2026 (NECB)?
Construction loan commitments and loans-in-process were approximately $819 million at March 31, 2026. According to the company, that represents a 37.8% increase versus Q1 2025 and 20.6% increase since Dec 31, 2025.
What does NECB say about asset quality and non-performing assets (NECB)?
NECB reported no non-performing loans and non-performing assets were 0.00% of total assets at March 31, 2026. According to the company, allowance for loan losses was $4.6 million, or 0.25% of total loans.
How did NECB's funding mix change in Q1 2026 and what was the impact (NECB)?
Total deposits increased slightly while borrowings fell by $50.0 million, a 71.4% decrease. According to the company, management reduced higher-cost brokered deposits to lower funding costs.
Why did NECB's non-interest income fall in Q1 2026 and by how much (NECB)?
Non-interest income declined by 35.5%, largely due to a $421,000 decrease from unrealized losses on equity securities. According to the company, market interest rate volatility drove the swing versus prior-year unrealized gains.
