Core Viewpoint - NorthEast Community Bancorp, Inc. has declared a special cash dividend of $0.20 per share, reflecting its commitment to enhancing shareholder value [1][2]. Company Overview - NorthEast Community Bancorp is headquartered in White Plains, New York, and serves as the holding company for NorthEast Community Bank, which operates eleven branch offices across New York and Massachusetts [2]. Dividend Details - The special cash dividend will be paid on or about October 6, 2025, to shareholders of record as of the close of business on September 8, 2025 [1]. - This marks a continuation of the company's strategy to provide returns to shareholders through dividends [2]. Leadership Statement - Kenneth A. Martinek, Chairman and CEO, expressed satisfaction in being able to pay a special dividend, emphasizing the company's long-term commitment to shareholder value [2].

Core Points - NorthEast Community Bancorp, Inc. has declared a special cash dividend of $0.20 per share on its outstanding common stock, to be paid on or about October 6, 2025, to shareholders of record as of September 8, 2025 [1][2] - The Chairman and CEO, Kenneth A. Martinek, emphasized that the payment of dividends reflects the company's long-term commitment to enhancing shareholder value [2] Company Overview - NorthEast Community Bancorp is headquartered in White Plains, New York, and serves as the holding company for NorthEast Community Bank, which operates eleven branch offices across New York and Massachusetts [2] - The bank has branch locations in Bronx, Orange, Rockland, and Sullivan Counties in New York, as well as Essex, Middlesex, and Norfolk Counties in Massachusetts, along with three loan production offices [2]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of NorthEast Community Bancorp, Inc. for the periods ended June 30, 2025, and December 31, 2024, including statements of financial condition, income, comprehensive income, changes in stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, regulatory capital, earnings per share, equity securities, loans, and other financial instruments [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition%20as%20of%20June%2030,%202025%20and%20December%2031,%202024%20(Unaudited)) | | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | **ASSETS** | | | | Total cash and cash equivalents | $ 59,373 | $ 78,259 | | Equity securities | 25,345 | 21,994 | | Securities held-to-maturity | 14,398 | 14,616 | | Net loans | 1,792,832 | 1,807,768 | | Total assets | $1,973,884 | $2,009,581 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total deposits | 1,479,161 | 1,670,375 | | Borrowings | 135,000 | - | | Total liabilities | 1,637,208 | 1,691,240 | | Total stockholders' equity | 336,676 | 318,341 | | Total liabilities and stockholders' equity | $1,973,884 | $2,009,581 | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030,%202025%20and%202024%20(Unaudited)) | | Three Months Ended June 30, 2025 (In thousands) | Three Months Ended June 30, 2024 (In thousands) | Six Months Ended June 30, 2025 (In thousands) | Six Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $ 38,039 | $ 40,237 | $ 76,246 | $ 78,358 | | Total Interest Expense | 12,965 | 14,015 | 26,908 | 27,150 | | Net Interest Income | 25,074 | 26,222 | 49,338 | 51,208 | | Provision for (reversal of) credit loss | — | (226) | 237 | (391) | | Total Non-Interest Income | 858 | 731 | 2,093 | 1,285 | | Total Non-Interest Expenses | 10,508 | 9,498 | 21,127 | 19,179 | | INCOME BEFORE PROVISION FOR INCOME TAXES | 15,424 | 17,681 | 30,067 | 33,705 | | PROVISION FOR INCOME TAXES | 4,254 | 4,883 | 8,330 | 9,533 | | NET INCOME | $ 11,170 | $ 12,798 | $ 21,737 | $ 24,172 | | EARNINGS PER COMMON SHARE – BASIC | $ 0.85 | $ 0.98 | $ 1.65 | $ 1.84 | | EARNINGS PER COMMON SHARE – DILUTED | $ 0.82 | $ 0.97 | $ 1.60 | $ 1.83 | [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030,%202025%20and%202024%20(Unaudited)) | | Three Months Ended June 30, 2025 (In thousands) | Three Months Ended June 30, 2024 (In thousands) | Six Months Ended June 30, 2025 (In thousands) | Six Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Income | $ 11,170 | $ 12,798 | $ 21,737 | $ 24,172 | | Other comprehensive income (loss): | | | | | | Defined benefit pension: | | | | | | Reclassification adjustments out of accumulated other comprehensive income (loss): | | | | | | Amortization of actuarial gain | (5) | (13) | (15) | (26) | | Actuarial gain arising during period | 19 | 18 | 9 | 36 | | Total | 14 | 5 | (6) | 10 | | Income tax effect¹ | (5) | (2) | 2 | (4) | | Total other comprehensive income (loss) | 9 | 3 | (4) | 6 | | Total Comprehensive Income | $ 11,179 | $ 12,801 | $ 21,733 | $ 24,178 | [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030,%202025%20and%202024%20(Unaudited)) | | Balance – December 31, 2024 (In thousands) | Net income (In thousands) | Other comprehensive income (loss) (In thousands) | Cash dividend declared ($0.20 per share) (In thousands) | Compensation expense related to restricted stock awards (In thousands) | Compensation expense related to stock options (In thousands) | ESOP shares earned (In thousands) | Balance – June 30, 2025 (In thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Stockholders' Equity | $ 318,341 | $ 21,737 | $ (4) | $ (5,366) | $ 586 | $ 371 | $ 1,011 | $ 336,676 | | | Balance – December 31, 2023 (In thousands) | Net income (In thousands) | Other comprehensive income (loss) (In thousands) | Cash dividend declared ($0.10 per share) (In thousands) | Stock repurchases (In thousands) | Compensation expense related to restricted stock awards (In thousands) | Compensation expense related to stock options (In thousands) | ESOP shares earned (In thousands) | Balance – June 30, 2024 (In thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Stockholders' Equity | $ 279,325 | $ 24,172 | $ 6 | $ (2,667) | $ (2,474) | $ 504 | $ 384 | $ 711 | $ 299,975 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20ended%20June%2030,%202025%20and%202024%20(Unaudited)) | | Six Months Ended June 30, 2025 (In thousands) | Six Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $ 26,566 | $ 24,030 | | Net Cash Provided by (Used in) Investing Activities | 14,866 | (120,798) | | Net Cash (Used in) Provided by Financing Activities | (60,318) | 141,982 | | Net (Decrease) Increase in Cash and Cash Equivalents | (18,886) | 45,214 | | Cash and Cash Equivalents – Ending | $ 59,373 | $ 113,885 | - Supplementary Cash Flows Information (Six Months Ended June 30): * Income taxes paid: **$7,117 thousand** (2025) vs. **$8,844 thousand** (2024)[20](index=20&type=chunk) * Interest paid: **$25,666 thousand** (2025) vs. **$26,728 thousand** (2024)[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed notes explaining significant accounting policies, regulatory capital, earnings per share, equity securities, loans, and other financial

Core Insights - Northeast Community Bancorp (NECB) reported Q2 2025 earnings with diluted EPS of $0.82, exceeding analyst estimates of $0.79, while revenue of $25.93 million fell short of expectations by $0.028 million [1][5] - The company faced challenges with declining income and returns on assets and equity compared to the same quarter last year, but maintained a focus on asset quality and funding diversification [1][5] Financial Performance - Diluted EPS (GAAP) for Q2 2025 was $0.82, down 15.5% from $0.97 in Q2 2024 [2] - Revenue (GAAP) decreased by 1.1% year-over-year, from $26.2 million in Q2 2024 to $25.93 million in Q2 2025 [2] - Net interest margin fell to 5.35% from 5.79%, reflecting a decrease in yields on interest-earning assets [2][6] - Return on average total assets dropped to 2.27% from 2.70% year-over-year [2][7] - Efficiency ratio worsened to 40.52% from 35.24%, indicating rising operating expenses [2][8] Business Focus - NECB specializes in construction lending, primarily in high-demand markets in New York and Massachusetts, maintaining strong relationships with developers [3][4] - The bank's performance relies on effective lending strategies, disciplined funding, and compliance with regulatory standards [4] Recent Developments - Non-interest income increased by 17.4%, driven by higher loan fees and favorable market valuations of equity securities, while non-interest expenses rose by 10.6% [6] - Construction loan originations totaled $338.8 million in the first half of 2025, although the total construction portfolio shrank by $102.7 million due to repayments [7] - Deposit mix shifted, with a decline in certificates of deposit by $251.5 million and an increase in money market accounts by $56.4 million [8] Future Outlook - Management highlighted ongoing efforts to grow construction and cooperative building lending segments, with over $636 million in outstanding unfunded commitments as of June 30, 2025 [10] - Investors should monitor trends in deposit flows, funding costs, and construction lending performance moving forward [11]

Executive Summary [Overall Performance Highlights](index=1&type=section&id=Overall%20Performance%20Highlights) NorthEast Community Bancorp reported decreased net income for both periods ending June 30, 2025, despite strong loan portfolio performance | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change (YoY) | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change (YoY) | | :-------------------------- | :-------------------------- | :-------------------------- | :----------- | :-------------------------- | :-------------------------- | :----------- | | Net Income | $11.2 million | $12.8 million | -12.5% | $21.7 million | $24.2 million | -10.3% | | Basic EPS | $0.85 | $0.98 | -13.27% | $1.65 | $1.84 | -10.33% | | Diluted EPS | $0.82 | $0.97 | -15.46% | $1.60 | $1.83 | -12.57% | - Performance metrics remain strong with a return on average total assets of **2.27%** and return on average shareholders' equity of **13.37%** for the three months ended June 30, 2025. For the six months, these ratios were **2.20%** and **13.18%**, respectively[8](index=8&type=chunk) - Asset quality metrics continue to be strong with **no non-performing loans** at June 30, 2025, and non-performing assets to total assets at **0.04%**[8](index=8&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO highlighted strong loan portfolio performance, focusing on construction and cooperative building lending, with increasing loan demand - Continued **strong performance** throughout the entire loan portfolio, with a focus on **construction lending** in high demand, high absorption sub-markets[3](index=3&type=chunk) - **Growing cooperative building lending program** throughout Manhattan, Brooklyn, the Bronx, and Queens[3](index=3&type=chunk) - **Loan demand continues to increase**, with outstanding unfunded commitments exceeding **$636 million** at June 30, 2025[3](index=3&type=chunk) Financial Condition (Balance Sheet Summary) [Total Assets](index=1&type=section&id=Total%20Assets) Total assets decreased by $35.7 million, or 1.8%, to $2.0 billion, primarily due to decreases in cash, net loans, and real estate owned | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------- | :------------ | :---------------- | :--------- | :--------- | | Total Assets | $2.0 billion | $2.0 billion | -$35.7M | -1.8% | - Decrease primarily due to decreases in cash and cash equivalents (**$18.9 million**), net loans (**$14.9 million**), and real estate owned (**$4.4 million**)[4](index=4&type=chunk) - Partially offset by an increase of **$3.4 million** in equity securities[4](index=4&type=chunk) [Cash and Cash Equivalents](index=1&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents decreased by $18.9 million, or 24.1%, driven by a significant decrease in deposits, partially mitigated by increased borrowings | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change ($ in millions) | Change (%) | | :---------------------- | :-------------------------- | :-------------------------- | :--------------------- | :--------- | | Cash & Cash Equivalents | $59.4 | $78.3 | -$18.9 | -24.1% | - Decrease was a result of a **$191.2 million** decrease in deposits[5](index=5&type=chunk) - Partially offset by increases of **$135.0 million** in borrowings, decreases of **$14.9 million** in net loans, and increases of **$3.4 million** in equity securities[5](index=5&type=chunk) [Investments](index=1&type=section&id=Investments) Equity securities increased due to purchases and market appreciation, while held-to-maturity securities slightly decreased from maturities and pay-downs | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------- | :------------ | :---------------- | :--------- | :--------- | | Equity Securities | $25.3 million | $22.0 million | +$3.4M | +15.2% | | Securities Held-to-Maturity | $14.4 million | $14.6 million | -$218K | -1.5% | - Increase in equity securities attributable to **$3.0 million** in purchases and **$351,000** in market appreciation[6](index=6&type=chunk) - Decrease in held-to-maturity securities due to **$128,000** in maturities and pay-downs[7](index=7&type=chunk) [Loans and Allowance for Credit Losses](index=2&type=section&id=Loans%20and%20Allowance%20for%20Credit%20Losses) Net loans decreased by $14.9 million, or 0.8%, due to construction loan pay-downs, offset by multi-family and commercial loan increases | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Net Loans | $1.8 billion | $1.8 billion | -$14.9M | -0.8% | | Allowance for Credit Losses related to Loans | $4.7 million | $4.8 million | -$100K | -2.08% | - Decrease in loans consisted of **$102.7 million** in construction loans, **$1.6 million** in consumer loans, and smaller decreases in mixed-use, non-residential, and one-to-four family loans[9](index=9&type=chunk) - Offset by increases of **$85.9 million** in multi-family loans (including **$43.2 million** in residential cooperative building loans) and **$4.3 million** in commercial and industrial loans[9](index=9&type=chunk) - Loan originations during the six months totaled **$462.7 million**, primarily construction loans (**$338.8 million**) and multi-family loans (**$95.4 million**)[10](index=10&type=chunk) [Other Assets](index=2&type=section&id=Other%20Assets) Other assets saw varied changes, with increases in premises, FHLB stock, and BOLI, while real estate owned significantly decreased due to a sale | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------ | :------------ | :---------------- | :--------- | :--------- | | Premises and Equipment, net | $25.3 million | $24.8 million | +$536K | +2.2% | | Federal Home Loan Bank stock | $1.1 million | $397,000 | +$688K | +173.3% | | Bank Owned Life Insurance (BOLI) | $26.1 million | $25.7 million | +$336K | +1.3% | | Accrued Interest Receivable | $12.1 million | $13.5 million | -$1.4M | -10.1% | | Real Estate Owned (REO) | $767,000 | $5.1 million | -$4.4M | -85.0% | | Right of Use Assets – Operating | $4.4 million | $4.0 million | +$382K | +9.6% | | Other Assets | $10.4 million | $11.6 million | -$1.2M | -10.5% | - Increase in FHLB stock primarily due to increased borrowings from the Federal Home Loan Bank[12](index=12&type=chunk) - Significant decrease in Real Estate Owned due to the sale of a foreclosed property[14](index=14&type=chunk) - Increase in Right of Use Assets – Operating due to physical expansion of a branch office[15](index=15&type=chunk) [Deposits](index=2&type=section&id=Deposits) Total deposits significantly decreased by $191.2 million, or 11.5%, driven by a reduction in certificates of deposit, partially offset by growth in other accounts | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------- | :------------ | :---------------- | :--------- | :--------- | | Total Deposits | $1.5 billion | $1.7 billion | -$191.2M | -11.5% | | Certificates of Deposit | $750.0 million | $1.0 billion | -$251.5M | -25.1% | | NOW/Money Market Accounts | $299.0 million | $242.6 million | +$56.4M | +23.2% | | Savings Account Balances | $140.0 million | $136.7 million | +$3.3M | +2.4% | | Non-Interest Bearing Deposits | $287.7 million | $285.5 million | +$2.2M | +0.8% | - Decrease in retail certificates of deposit due to a shift to retail high yield money market accounts[18](index=18&type=chunk) - Decrease in brokered certificates of deposit due to management's strategy to reduce the cost of funds by 'calling' higher rate brokered deposits[18](index=18&type=chunk) [Borrowings and Other Liabilities](index=3&type=section&id=Borrowings%20and%20Other%20Liabilities) Borrowings significantly increased to diversify funding, while accounts payable and accrued expenses rose due to higher accrued interest and operational costs | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Borrowings | $135.0 million | $0 | +$135.0M | N/A |\ | Advance payments by borrowers for taxes and insurance | $2.4 million | $1.6 million | +$804K | +49.7% |\ | Lease Liability – Operating | $4.5 million | $4.1 million | +$389K | +9.5% |\ | Accounts Payable and Accrued Expenses | $15.5 million | $14.5 million | +$970K | +6.7% |\ | Allowance for credit losses for off-balance sheet commitments | $879,000 | $704,000 | +$175K | +24.9% | - Increase in borrowings due to management's strategy to diversify funding sources[20](index=20&type=chunk) - Increase in accounts payable and accrued expenses primarily due to increases in accrued borrowing interest expense, accounts payable, deferred compensation, and allowance for credit losses for off-balance sheet commitments[21](index=21&type=chunk) - Allowance for credit losses for off-balance sheet commitments increased due to a **$74.5 million (13.3%)** increase in off-balance sheet commitments[22](index=22&type=chunk) [Stockholders' Equity](index=3&type=section&id=Stockholders'%20Equity) Stockholders' equity increased by $18.3 million, or 5.8%, driven by net income and ESOP shares, partially offset by dividends and other comprehensive loss | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change ($ in millions) | Change (%) | | :-------------------- | :-------------------------- | :-------------------------- | :--------------------- | :--------- | | Total Stockholders' Equity | $336.7 | $318.3 | +$18.3 | +5.8% | - Increase due to net income of **$21.7 million** for the six months ended June 30, 2025[23](index=23&type=chunk) - Partially offset by dividends declared of **$5.4 million** and **$4,000** in other comprehensive loss[23](index=23&type=chunk) Results of Operations - Three Months Ended June 30, 2025 vs. 2024 [Net Interest Income](index=3&type=section&id=Net%20Interest%20Income_3M) Net interest income decreased by $1.1 million, or 4.4%, due to a larger decrease in interest income and a decline in asset yield, partially offset by lower cost of funds | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change ($) | Change (%) | | :------------------ | :-------------------------- | :-------------------------- | :--------- | :--------- | | Net Interest Income | $25.1 million | $26.2 million | -$1.1M | -4.4% | | Total Interest & Dividend Income | $38.0 million | $40.2 million | -$2.2M | -5.5% | | Total Interest Expense | $13.0 million | $14.0 million | -$1.1M | -7.5% | | Net Interest Margin | 5.35% | 5.79% | -44 bps | -7.6% | - Yield on interest earning assets decreased by **78 basis points** to **8.11%**, partially offset by a **3.6%** increase in average balance of interest earning assets[25](index=25&type=chunk) - Cost of interest bearing liabilities decreased by **45 basis points** to **3.88%**, partially offset by a **3.2%** increase in average interest bearing liabilities[26](index=26&type=chunk) - Net interest margin decrease attributed to a **100 basis points** decrease in the Federal Funds rate from September 2024 to December 2024[27](index=27&type=chunk) [Credit Loss Expense](index=3&type=section&id=Credit%20Loss%20Expense_3M) The Company recorded no credit loss expense for the three months ended June 30, 2025, compared to a prior year reduction, with increased charge-offs partially offset by recoveries | Metric | 3 Months Ended Jun 30, 2025 (in thousands) | 3 Months Ended Jun 30, 2024 (in thousands) | | :---------------------- | :----------------------------------------- | :----------------------------------------- | | Credit Loss Expense | $0 | -$226 (reduction) | | Charge-offs | $485 | $12 | | Recoveries | $82 | $0 | - The prior year's credit loss expense reduction was mainly due to a reduction in off-balance sheet commitments and favorable economic trends[29](index=29&type=chunk) - Charge-offs in both periods were against various unpaid overdrafts in demand deposit accounts[30](index=30&type=chunk) - Recoveries in 2025 comprised from a previously charged-off unpaid overdraft[31](index=31&type=chunk) [Non-Interest Income](index=4&type=section&id=Non-Interest%20Income_3M) Non-interest income increased by $127,000, or 17.4%, driven by an unrealized gain on equity securities, higher loan fees, and increased BOLI income | Metric | 3 Months Ended Jun 30, 2025 (in thousands) | 3 Months Ended Jun 30, 2024 (in thousands) | Change ($ in thousands) | Change (%) | | :---------------------- | :----------------------------------------- | :----------------------------------------- | :---------------------- | :--------- | | Total Non-Interest Income | $858 | $731 | +$127 | +17.4% | | Unrealized Gain (Loss) on Equity Securities | $51 (gain) | -$20 (loss) | +$71 | N/A | | Other Loan Fees and Service Charges | +$48 | N/A | N/A | N/A | | BOLI Income | +$8 | N/A | N/A | N/A | - Unrealized gain/loss on equity securities in both periods was due to market interest rate volatility[33](index=33&type=chunk) - Increase in other loan fees and service charges due to higher ATM/debit card/ACH fees and deposit account fees[34](index=34&type=chunk) [Non-Interest Expense](index=4&type=section&id=Non-Interest%20Expense_3M) Non-interest expense increased by $1.0 million, or 10.6%, primarily due to higher salaries, real estate owned expense, and outside data processing costs | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change ($) | Change (%) | | :---------------------- | :-------------------------- | :-------------------------- | :--------- | :--------- | | Total Non-Interest Expenses | $10.5 million | $9.5 million | +$1.0M | +10.6% | | Salaries and Employee Benefits | +$398,000 | N/A | N/A | N/A | | Real Estate Owned Expense | +$220,000 | N/A | N/A | N/A | | Outside Data Processing Expense | +$151,000 | N/A | N/A | N/A | [Income Taxes](index=4&type=section&id=Income%20Taxes_3M) Income tax expense decreased slightly, with the effective income tax rate remaining stable at 27.6% for both periods | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change ($) | | :------------------ | :-------------------------- | :-------------------------- | :--------- | | Income Tax Expense | $4.3 million | $4.9 million | -$600K | | Effective Income Tax Rate | 27.6% | 27.6% | 0 bps | - Tax exempt income was approximately **$210,000** in 2025, compared to **$199,000** in 2024[36](index=36&type=chunk) Results of Operations - Six Months Ended June 30, 2025 vs. 2024 [Net Interest Income](index=4&type=section&id=Net%20Interest%20Income_6M) Net interest income decreased by $1.9 million, or 3.7%, due to a larger decrease in interest income and a lower asset yield, partially offset by a smaller decrease in cost of funds | Metric | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change ($) | Change (%) | | :------------------ | :-------------------------- | :-------------------------- | :--------- | :--------- | | Net Interest Income | $49.3 million | $51.2 million | -$1.9M | -3.7% | | Total Interest & Dividend Income | $76.2 million | $78.4 million | -$2.1M | -2.7% | | Total Interest Expense | $26.9 million | $27.2 million | -$242K | -0.9% | | Net Interest Margin | 5.23% | 5.77% | -54 bps | -9.4% | - Yield on interest earning assets decreased by **75 basis points** to **8.08%**, partially offset by a **6.3%** increase in average balance of interest earning assets[38](index=38&type=chunk) - Cost of interest bearing liabilities decreased by **34 basis points** to **3.97%**, partially offset by a **7.6%** increase in average interest bearing liabilities[39](index=39&type=chunk) - Net interest margin decrease attributed to a **100 basis points** decrease in the Federal Funds rate from September 2024 to December 2024[40](index=40&type=chunk) [Credit Loss Expense](index=5&type=section&id=Credit%20Loss%20Expense_6M) The Company recorded a credit loss expense of $237,000, a shift from a prior year reduction, driven by increases in multi-family loans and unfunded off-balance sheet commitments | Metric | 6 Months Ended Jun 30, 2025 (in thousands) | 6 Months Ended Jun 30, 2024 (in thousands) | | :---------------------- | :----------------------------------------- | :----------------------------------------- | | Credit Loss Expense | $237 | -$391 (reduction) | | Charge-offs | $602 | $33 | | Recoveries | $434 | $0 | - Credit loss expense for loans (**$62,000**) primarily due to an increase in the multi-family loan portfolio[42](index=42&type=chunk) - Credit loss expense for off-balance sheet commitments (**$175,000**) primarily due to an increase in unfunded off-balance sheet commitments[42](index=42&type=chunk) - Recoveries in 2025 included **$350,000** from a previously charged-off non-residential mortgage loan and **$84,000** from unpaid overdrafts[45](index=45&type=chunk) [Non-Interest Income](index=5&type=section&id=Non-Interest%20Income_6M) Non-interest income significantly increased by $808,000, or 62.9%, primarily due to a positive swing in unrealized gains on equity securities, higher loan fees, and increased BOLI income | Metric | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change ($) | Change (%) | | :---------------------- | :-------------------------- | :-------------------------- | :--------- | :--------- | | Total Non-Interest Income | $2.1 million | $1.3 million | +$808K | +62.9% | | Unrealized Gain (Loss) on Equity Securities | $351,000 (gain) | -$102,000 (loss) | +$453K | N/A | | Other Loan Fees and Service Charges | +$326,000 | N/A | N/A | N/A | | BOLI Income | +$17,000 | N/A | N/A | N/A | - Unrealized gain/loss on equity securities in both periods was due to market interest rate volatility[47](index=47&type=chunk) - Increase in other loan fees and service charges due to higher other loan fees and loan servicing fees, ATM/debit card/ACH fees, and deposit account fees[48](index=48&type=chunk) [Non-Interest Expense](index=6&type=section&id=Non-Interest%20Expense_6M) Non-interest expense increased by $1.9 million, or 10.2%, driven by higher salaries, other operating expenses, outside data processing, and real estate owned expense | Metric | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change ($) | Change (%) | | :---------------------- | :-------------------------- | :-------------------------- | :--------- | :--------- | | Total Non-Interest Expenses | $21.1 million | $19.2 million | +$1.9M | +10.2% | | Salaries and Employee Benefits | +$980,000 | N/A | N/A | N/A | | Other Operating Expense | +$332,000 | N/A | N/A | N/A | | Outside Data Processing Expense | +$251,000 | N/A | N/A | N/A | [Income Taxes](index=6&type=section&id=Income%20Taxes_6M) Income tax expense decreased for the six-month period, with a slight reduction in the effective income tax rate | Metric | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change ($) | | :------------------ | :-------------------------- | :-------------------------- | :--------- | | Income Tax Expense | $8.3 million | $9.5 million | -$1.2M | | Effective Income Tax Rate | 27.7% | 28.3% | -60 bps | - Tax exempt income was approximately **$415,000** in 2025, compared to **$394,000** in 2024[50](index=50&type=chunk) Asset Quality Asset quality remained strong, with a significant reduction in non-performing assets due to a property sale, and the allowance for credit losses for loans considered adequate | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Non-Performing Assets | $767,000 | $5.1 million | -$4.3M | -85.0% | | Non-Performing Assets to Total Assets | 0.04% | 0.25% | -0.21% | -84.0% | | Allowance for Credit Losses related to Loans | $4.7 million | $4.8 million | -$100K | -2.08% | | Allowance for Credit Losses to Total Loans | 0.26% | 0.27% | -0.01% | -3.7% | - Non-performing assets consisted of one foreclosed property, with another property sold for **$4.3 million** at no loss to the Company[51](index=51&type=chunk) - **No non-performing loans** at either June 30, 2025, or December 31, 2024[8](index=8&type=chunk) - Allowance for credit losses for off-balance sheet commitments totaled **$879,000** and for held-to-maturity debt securities totaled **$126,000** at June 30, 2025[54](index=54&type=chunk) Capital The Company maintained a strong capital position, exceeding regulatory requirements, with its total stockholders' equity to assets ratio at 17.06%, and continued its stock repurchase program | Metric | June 30, 2025 (in percent) | December 31, 2024 (in percent) | | :-------------------------------------- | :------------------------- | :------------------------- | | Total Stockholders' Equity to Assets Ratio | 17.06% | 15.84% | | Tier 1 Leverage Capital Ratio | 15.87% | 14.44% | | Total Risk-Based Capital Ratio | 14.99% | 13.92% | - The Bank is considered a **well-capitalized institution** under the Prompt Corrective Action framework[56](index=56&type=chunk) - As of June 30, 2025, the Company had repurchased **1,091,174 shares** of common stock under its second repurchase program, at a cost of **$17.2 million**[58](index=58&type=chunk) - The Company has borrowing capacity of **$740.2 million** from the Federal Reserve Bank of New York, **$23.1 million** from the Federal Home Loan Bank of New York, and **$8.0 million** from Atlantic Community Bankers Bank[55](index=55&type=chunk) Company Information [About NorthEast Community Bancorp](index=7&type=section&id=About%20NorthEast%20Community%20Bancorp) NorthEast Community Bancorp is the holding company for NorthEast Community Bank, operating through eleven branch offices and three loan production offices across New York and Massachusetts - Headquartered at **325 Hamilton Avenue, White Plains, New York 10601**[59](index=59&type=chunk) - Conducts business through **eleven branch offices** in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts[59](index=59&type=chunk) - Operates **three loan production offices** located in New City, New York, White Plains, New York, and Danvers, Massachusetts[59](index=59&type=chunk) [Forward-Looking Statement](index=7&type=section&id=Forward-Looking%20Statement) This section provides a standard disclaimer regarding forward-looking statements, highlighting that actual results may differ due to various risks and uncertainties - Forward-looking statements are based on current beliefs and expectations and are subject to significant risks and uncertainties[60](index=60&type=chunk) - Factors that could cause actual results to differ include changes in market interest rates, regional and national economic conditions, legislative and regulatory changes, and the quality of loan portfolios[60](index=60&type=chunk) - The Company does not undertake any obligation to publicly release revisions to forward-looking statements[60](index=60&type=chunk) [Contact Information](index=7&type=section&id=Contact%20Information) Contact details for investor inquiries are provided, with Kenneth A. Martinek, Chairman and Chief Executive Officer, listed as the primary contact - Contact: **Kenneth A. Martinek, Chairman and Chief Executive Officer**[61](index=61&type=chunk) - Phone: **(914) 684-2500**[61](index=61&type=chunk) Consolidated Financial Statements [Consolidated Statements of Financial Condition](index=8&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) This section presents the unaudited consolidated balance sheets of NorthEast Community Bancorp, Inc. as of June 30, 2025, and December 31, 2024 | ASSETS | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | | :------------------------------------------------------------------ | :--------------------------- | :------------------------------- | | Total cash and cash equivalents | $59,373 | $78,259 | | Equity securities | $25,345 | $21,994 | | Securities held-to-maturity (net of allowance for credit losses) | $14,398 | $14,616 | | Net loans | $1,792,832 | $1,807,768 | | Total assets | $1,973,884 | $2,009,581 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Total deposits | $1,479,161 | $1,670,375 | | Borrowings | $135,000 | $- | | Total liabilities | $1,637,208 | $1,691,240 | | Total stockholders' equity | $336,676 | $318,341 | | Total liabilities and stockholders' equity | $1,973,884 | $2,009,581 | [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) This section provides the unaudited consolidated statements of income for the three and six months ended June 30, 2025, and 2024 | Metric | 3 Months Ended Jun 30, 2025 (In thousands) | 3 Months Ended Jun 30, 2024 (In thousands) | 6 Months Ended Jun 30, 2025 (In thousands) | 6 Months Ended Jun 30, 2024 (In thousands) | | :-------------------------------------- | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | | Total Interest Income | $38,039 | $40,237 | $76,246 | $78,358 | | Total Interest Expense | $12,965 | $14,015 | $26,908 | $27,150 | | Net Interest Income | $25,074 | $26,222 | $49,338 | $51,208 | | Provision for (reversal of) credit loss | $0 | -$226 | $237 | -$391 | | Total Non-Interest Income | $858 | $731 | $2,093 | $1,285 | | Total Non-Interest Expenses | $10,508 | $9,498 | $21,127 | $19,179 | | PROVISION FOR INCOME TAXES | $4,254 | $4,883 | $8,330 | $9,533 | | NET INCOME | $11,170 | $12,798 | $21,737 | $24,172 | [Selected Consolidated Financial Data](index=10&type=section&id=Selected%20Consolidated%20Financial%20Data) This section provides key financial performance ratios, per share data, loan portfolio composition, asset quality metrics, and regulatory capital ratios | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | | :-------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Earnings per share - basic | $0.85 | $0.98 | $1.65 | $1.84 | | Return on average total assets | 2.27% | 2.70% | 2.20% | 2.60% | | Return on average shareholders' equity | 13.37% | 17.28% | 13.18% | 16.59% | | Net interest margin | 5.35% | 5.79% | 5.23% | 5.77% | | Efficiency ratio | 40.52% | 35.24% | 41.08% | 36.54% | | Net charge-off ratio | 0.09% | 0.00% | 0.01% | 0.00% | | | June 30, 2025 | December 31, 2024 | | | | Gross loans | $1,797,618 | $1,812,647 | | | | Non-performing assets | $767 | $5,120 | | | | Non-performing assets to total assets | 0.04% | 0.25% | | | | Total capital to risk-weighted assets | 14.99% | 13.92% | | | | Tier 1 leverage ratio | 15.87% | 14.44% | | | [Net Interest Margin Analysis - Three Months](index=11&type=section&id=Net%20Interest%20Margin%20Analysis%20-%20Three%20Months) This table details average balances, interest income/expense, and yields/costs for interest-earning assets and liabilities for the three months ended June 30, 2025, and 2024 | Metric | 3 Months Ended Jun 30, 2025 (In thousands, except yield/cost) | 3 Months Ended Jun 30, 2024 (In thousands, except yield/cost) | | :-------------------------------------- | :------------------------------------------------------------ | :------------------------------------------------------------ | | Average Interest-Earning Assets | $1,875,775 | $1,810,907 | | Total Interest and Dividend Income | $38,039 | $40,237 | | Yield on Interest-Earning Assets | 8.11% | 8.89% | | Average Interest-Bearing Liabilities | $1,337,639 | $1,295,730 | | Total Interest Expense | $12,965 | $14,015 | | Cost of Interest-Bearing Liabilities | 3.88% | 4.33% | | Net Interest Income | $25,074 | $26,222 | | Net Interest Rate Margin | 5.35% | 5.79% | [Net Interest Margin Analysis - Six Months](index=12&type=section&id=Net%20Interest%20Margin%20Analysis%20-%20Six%20Months) This table details average balances, interest income/expense, and yields/costs for interest-earning assets and liabilities for the six months ended June 30, 2025, and 2024 | Metric | 6 Months Ended Jun 30, 2025 (In thousands, except yield/cost) | 6 Months Ended Jun 30, 2024 (In thousands, except yield/cost) | | :-------------------------------------- | :------------------------------------------------------------ | :------------------------------------------------------------ | | Average Interest-Earning Assets | $1,887,062 | $1,774,746 | | Total Interest and Dividend Income | $76,246 | $78,358 | | Yield on Interest-Earning Assets | 8.08% | 8.83% | | Average Interest-Bearing Liabilities | $1,356,523 | $1,260,831 | | Total Interest Expense | $26,908 | $27,150 | | Cost of Interest-Bearing Liabilities | 3.97% | 4.31% | | Net Interest Income | $49,338 | $51,208 | | Net Interest Rate Margin | 5.23% | 5.77% |

分组1 - Northeast Community Bancorp (NECB) reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.79 per share, but down from $0.97 per share a year ago, representing an earnings surprise of +3.80% [1] - The company posted revenues of $25.93 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.11%, and down from $26.95 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 6% since the beginning of the year compared to the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the coming quarter is $0.81 on revenues of $26.61 million, and for the current fiscal year, it is $3.19 on revenues of $104.74 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Points - NorthEast Community Bancorp, Inc. reported a net income of $11.2 million for Q2 2025, a decrease from $12.8 million in Q2 2024, and a net income of $21.7 million for the first half of 2025, down from $24.2 million in the same period of 2024 [1][2] Financial Performance - For the three months ended June 30, 2025, net interest income was $25.1 million, down 4.4% from $26.2 million in Q2 2024 [25] - Total interest and dividend income decreased by $2.2 million, or 5.5%, to $38.0 million for Q2 2025 compared to $40.2 million for Q2 2024 [26] - Interest expense decreased by $1.1 million, or 7.5%, to $13.0 million for Q2 2025 from $14.0 million in Q2 2024 [27] - The net interest margin decreased by 44 basis points to 5.35% for Q2 2025 compared to 5.79% for Q2 2024 [28] Balance Sheet Summary - Total assets decreased by $35.7 million, or 1.8%, to $2.0 billion at June 30, 2025, primarily due to decreases in cash and cash equivalents, net loans, and real estate owned [3] - Cash and cash equivalents decreased by $18.9 million, or 24.1%, to $59.4 million at June 30, 2025 [4] - Total deposits decreased by $191.2 million, or 11.5%, to $1.5 billion at June 30, 2025 [17] Loan Portfolio - Loans, net of the allowance for credit losses, decreased by $14.9 million, or 0.8%, to $1.8 billion at June 30, 2025 [7] - The company originated loans totaling $462.7 million during the first half of 2025, primarily in construction and multi-family loans [10] Asset Quality - The allowance for credit losses related to loans decreased to $4.7 million, or 0.26% of total loans, as of June 30, 2025 [56] - Non-performing assets were $767,000 at June 30, 2025, significantly down from $5.1 million at December 31, 2024 [54][55] Stockholders' Equity - Total stockholders' equity increased by $18.3 million, or 5.8%, to $336.7 million at June 30, 2025 [24] - The company's total stockholders' equity to assets ratio was 17.06% as of June 30, 2025 [58] Non-Interest Income and Expenses - Non-interest income for Q2 2025 was $858,000, an increase of 17.4% from $731,000 in Q2 2024 [33] - Non-interest expense increased by $1.0 million, or 10.6%, to $10.5 million for Q2 2025 compared to $9.5 million for Q2 2024 [36]

Group 1 - Northeast Community Bancorp (NASDAQ: NECB) is viewed positively by analysts, indicating strong growth potential in the banking sector [1] - The focus of Crude Value Insights is on cash flow generation within the oil and natural gas industry, highlighting the importance of financial health for investment opportunities [1] - The service offers subscribers access to a stock model account and detailed cash flow analyses of exploration and production firms, enhancing investment decision-making [2] Group 2 - Subscribers can engage in live discussions about the oil and gas sector, fostering a community for sharing insights and strategies [2] - A promotional offer is available for a two-week free trial, encouraging new users to explore the services provided [3]

Core Viewpoint - Zacks emphasizes a ranking system focused on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum for investment opportunities [1][2]. Value Investing - Value investing is a popular strategy that utilizes fundamental analysis and metrics to identify undervalued companies based on their current share prices [2]. Zacks Style Scores System - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly highlighting the "Value" category for value investors [3]. Northeast Community Bancorp (NECB) - NECB holds a Zacks Rank of 2 (Buy) and a Value grade of A, with a current P/E ratio of 7.41, significantly lower than the industry average P/E of 9.87 [4]. - The Forward P/E for NECB has ranged from 6.19 to 10.12 over the past year, with a median of 7.81 [4]. - NECB's P/CF ratio is 6.82, which is attractive compared to the industry's average P/CF of 16.02, indicating potential undervaluation based on cash flow [5]. - Over the past 52 weeks, NECB's P/CF has fluctuated between 4.63 and 8.35, with a median of 6.56 [5]. - The combination of NECB's strong earnings outlook and attractive valuation metrics suggests it is currently an impressive value stock [6].

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q1 2025 and prior periods, with detailed notes on accounting policies and capital [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets and liabilities decreased, while stockholders' equity increased for Q1 2025 compared to Q4 2024 | Metric | March 31, 2025 (In thousands) | December 31, 2024 (In thousands) | Change (In thousands) | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Total assets | $1,933,376 | $2,009,581 | $(76,205) | -3.79% | | Total liabilities | $1,606,166 | $1,691,240 | $(85,074) | -5.03% | | Total stockholders' equity | $327,210 | $318,341 | $8,869 | 2.78% | - Total assets decreased by **$76.2 million**, or **3.8%**, primarily due to decreases in net loans, partially offset by increases in cash and cash equivalents and equity securities[133](index=133&type=chunk) - Total deposits decreased by **$84.4 million**, or **5.1%**, mainly due to decreases in certificates of deposit and non-interest bearing deposits, partially offset by increases in NOW/money market and savings accounts[144](index=144&type=chunk) [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income decreased by 7.1% for the three months ended March 31, 2025, compared to the same period in 2024, driven by lower net interest income and higher credit loss provision | Metric | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | Change (In thousands) | % Change | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | :------- | | Total Interest Income | $38,207 | $38,121 | $86 | 0.23% | | Total Interest Expense | $13,943 | $13,135 | $808 | 6.15% | | Net Interest Income | $24,264 | $24,986 | $(722) | -2.89% | | Provision for (reversal of) credit loss | $237 | $(165) | $402 | -243.64% | | Total Non-Interest Income | $1,235 | $554 | $681 | 122.92% | | Total Non-Interest Expenses | $10,619 | $9,681 | $938 | 9.69% | | Income Before Provision For Income Taxes | $14,643 | $16,024 | $(1,381) | -8.62% | | Provision For Income Taxes | $4,076 | $4,650 | $(574) | -12.34% | | NET INCOME | $10,567 | $11,374 | $(807) | -7.10% | | EARNINGS PER COMMON SHARE – BASIC | $0.80 | $0.87 | $(0.07) | -8.05% | | EARNINGS PER COMMON SHARE – DILUTED | $0.78 | $0.86 | $(0.08) | -9.30% | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 was **$10.554 million**, a decrease from **$11.377 million** in the prior year, reflecting lower net income and an other comprehensive loss | Metric | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Income | $10,567 | $11,374 | | Other comprehensive income (loss) | $(13) | $3 | | Total Comprehensive Income | $10,554 | $11,377 | [Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased to **$327.2 million** at March 31, 2025, from **$318.3 million** at December 31, 2024, driven by net income and ESOP shares earned | Metric | March 31, 2025 (In thousands) | December 31, 2024 (In thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total Stockholders' Equity | $327,210 | $318,341 | | Net income | $10,567 | N/A | | Other comprehensive loss | $(13) | N/A | | Cash dividend declared | $(2,683) | N/A | | ESOP shares earned | $520 | N/A | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased, while investing activities shifted from a net use to a net provision of cash, and financing activities changed from a net provision to a net use of cash for Q1 2025 compared to Q1 2024 | Cash Flow Activity | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Cash Provided by Operating Activities | $10,943 | $12,908 | | Net Cash Provided by (Used in) Investing Activities | $86,038 | $(67,337) | | Net Cash (Used in) Provided by Financing Activities | $(85,782) | $93,206 | | Net Increase in Cash and Cash Equivalents | $11,199 | $38,777 | | Cash and Cash Equivalents – Ending | $89,458 | $107,448 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures on the Company's business, significant accounting policies, regulatory capital, earnings per share, and specific financial instruments and activities [Note 1 — Summary of Significant Accounting Policies](index=11&type=section&id=Note%201%20%E2%80%94%20Summary%20of%20Significant%20Accounting%20Policies) NorthEast Community Bancorp, Inc. operates as a Maryland corporation, with its primary activity being the ownership and operation of NorthEast Community Bank, a New York State-chartered savings bank - The Company's primary activity is the ownership and operation of NorthEast Community Bank, a New York State-chartered savings bank[23](index=23&type=chunk) - The Bank's principal business involves originating primarily construction loans, and to a lesser extent, commercial and industrial loans and multifamily and mixed-use residential real estate loans[25](index=25&type=chunk) - Lending activity is concentrated in construction loans in New York State, with significant portions in the Bronx (**$626.2 million**), Town of Monroe (**$222.4 million**), Hamlet of Monsey (**$87.6 million**), and Village of Spring Valley (**$140.4 million**) as of March 31, 2025[35](index=35&type=chunk) [Note 2 — Regulatory Capital](index=15&type=section&id=Note%202%20%E2%80%94%20Regulatory%20Capital) The Bank met all capital adequacy requirements and was categorized as 'well capitalized' under regulatory frameworks as of March 31, 2025, and December 31, 2024 | Capital Ratio | Actual Ratio (March 31, 2025) | Minimum Capital Adequacy | Well-Capitalized Standard | | :------------------------------------ | :---------------------------- | :----------------------- | :------------------------ | | Total capital (to risk weighted assets) | 15.10% | ≥8.00% | ≥10.00% | | Tier 1 capital (to risk weighted assets) | 14.79% | ≥6.00% | ≥8.00% | | Common equity tier 1 capital (to risk-weighted assets) | 14.79% | ≥4.50% | ≥6.50% | | Core (Tier 1) capital (to adjusted total assets) | 15.09% | ≥4.00% | ≥5.00% | - The Bank was categorized as '**well capitalized**' by the FDIC as of March 31, 2025, and December 31, 2024[38](index=38&type=chunk) [Note 3 — Earnings Per Share](index=15&type=section&id=Note%203%20%E2%80%94%20Earnings%20Per%20Share) Basic and diluted earnings per common share decreased for Q1 2025 compared to Q1 2024, reflecting lower net income and a higher weighted average number of diluted shares outstanding | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net income (basic and diluted) | $10,567 | $11,374 | | Basic weighted average shares outstanding | 13,192 | 13,118 | | Diluted weighted average shares outstanding | 13,560 | 13,191 | | Net income per share - Basic | $0.80 | $0.87 | | Net income per share - Diluted | $0.78 | $0.86 | [Note 4 — Equity Securities](index=17&type=section&id=Note%204%20%E2%80%94%20Equity%20Securities) The Company's equity securities, primarily investments in a market-rate bond mutual fund, increased in fair value, recognizing an unrealized gain for Q1 2025 | Metric | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | | :-------------------------- | :---------------------------- | :---------------------------- | | Equity Securities, at Fair Value | $23,294 | $21,994 | | Metric | Three Months Ended March 31, 2025 (In Thousands) | Three Months Ended March 31, 2024 (In Thousands) | | :------------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net unrealized gain (loss) recognized on equity securities | $300 | $(82) | - The equity securities portfolio consists of investments in a market-rate bond mutual fund that invests in high-quality fixed-income bonds, mainly government agency securities, designed to positively impact community development[42](index=42&type=chunk) [Note 5 — Securities Held-to-Maturity](index=18&type=section&id=Note%205%20%E2%80%94%20Securities%20Held-to-Maturity) The Company's held-to-maturity securities portfolio saw a slight decrease in amortized cost, with unrealized losses deemed temporary due to high credit quality and intent to hold to maturity | Metric | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | | :-------------------------- | :---------------------------- | :---------------------------- | | Amortized Cost | $14,613 | $14,742 | | Fair Value | $11,643 | $11,858 | | Gross Unrealized Losses | $2,971 | $2,885 | | Allowance for Credit Loss | $126 | $126 | - Unrealized losses on mortgage-backed securities are attributed to interest rate volatility and are considered temporary, as the Company has the ability and intent to hold these securities to maturity[46](index=46&type=chunk) - The held-to-maturity portfolio includes agency mortgage-backed securities (explicitly or implicitly guaranteed by the U.S. government) and municipal bonds (rated no lower than A), all with a history of no credit losses[47](index=47&type=chunk) [Note 6 — Loans Receivable and the Allowance for Credit Losses](index=21&type=section&id=Note%206%20%E2%80%94%20Loans%20Receivable%20and%20the%20Allowance%20for%20Credit%20Losses) Total loans receivable decreased, primarily driven by a reduction in construction loans, while the allowance for credit losses on loans increased due to recoveries and provision expense | Loan Class | March 31, 2025 (In Thousands) | December 31, 2024 (In Thousands) | Change (In Thousands) | % Change | | :-------------------------- | :---------------------------- | :---------------------------- | :-------------------- | :------- | | Residential real estate | $283,026 | $236,649 | $46,377 | 19.60% | | Non-residential real estate | $29,198 | $29,446 | $(248) | -0.84% | | Construction | $1,287,225 | $1,426,167 | $(138,942) | -9.74% | | Commercial and industrial | $123,113 | $118,736 | $4,377 | 3.69% | | Consumer | $3,102 | $1,649 | $1,453 | 88.11% | | Total Loans | $1,725,664 | $1,812,647 | $(86,983) | -4.80% | | Allowance for credit losses | $5,127 | $4,830 | $297 | 6.15% | | ACL Activity (Three Months Ended March 31, 2025) | Amount (In Thousands) | | :----------------------------------------------- | :-------------------- | | Balance - December 31, 2024 | $4,830 | | Charge-offs | $(117) | | Recoveries | $352 | | Provision (reversal of) | $62 | | Balance - March 31, 2025 | $5,127 | - As of March 31, 2025, there were **no loans** past due 30 days or more, and **no non-accrual loans**[60](index=60&type=chunk)[61](index=61&type=chunk) - The allowance for credit losses for off-balance sheet commitments increased by **$175,000** to **$879,000** at March 31, 2025, due to an increase in unfunded off-balance sheet commitments[71](index=71&type=chunk)[157](index=157&type=chunk) [Note 7 — Real Estate Owned ("REO")](index=28&type=section&id=Note%207%20%E2%80%94%20Real%20Estate%20Owned%20(%22REO%22)) The Company held two foreclosed properties valued at **$5.12 million** at March 31, 2025, with REO expense increasing significantly for Q1 2025 due to higher operating costs - The Company owned two foreclosed properties valued at approximately **$5,120,000** at March 31, 2025, and December 31, 2024[72](index=72&type=chunk) | Metric | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | | :-------------------- | :--------------------------------------------- | :--------------------------------------------- | | REO expense | $30 | $11 | [Note 8 — Borrowings](index=28&type=section&id=Note%208%20%E2%80%94%20Borrowings) The Company had no outstanding borrowings from the FHLB or FRBNY at March 31, 2025, but maintained significant available borrowing capacity - No outstanding borrowings from FHLB or FRBNY at March 31, 2025, and December 31, 2024[75](index=75&type=chunk) | Borrowing Source | Available Borrowing Limit (March 31, 2025, In millions) | | :----------------- | :---------------------------------------------------- | | FRBNY | $941.3 | | FHLB | $15.5 | | ACBB | $8.0 | [Note 9 — Benefits Plans](index=30&type=section&id=Note%209%20%E2%80%94%20Benefits%20Plans) The Company maintains several benefit plans, with ESOP compensation expense increasing significantly for Q1 2025 compared to the prior year | Benefit Plan Expense | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | DRP Net periodic pension expense | $30 | $31 | | SERP Expenses | $139 | $130 | | ESOP compensation expense | $520 | $352 | - The ESOP has two outstanding loans, with balances of **$478,000** and **$5,991,000** at March 31, 2025, which are being repaid through Bank contributions and dividends on ESOP shares[84](index=84&type=chunk) [Note 10 — Fair Value Disclosures](index=32&type=section&id=Note%2010%20%E2%80%94%20Fair%20Value%20Disclosures) The Company uses fair value measurements for certain assets and liabilities, primarily marketable equity securities (Level 1) and securities held-to-maturity (Level 2), with real estate owned and individually evaluated loans measured at fair value on a non-recurring basis using Level 3 inputs | Asset Type | Fair Value (March 31, 2025, In thousands) | Fair Value (December 31, 2024, In thousands) | Fair Value Hierarchy Level | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | :------------------------- | | Marketable equity securities | $23,294 | $21,994 | Level 1 | | Securities held to maturity | $11,643 | $11,858 | Level 2 | | Loans receivable, net | $1,715,111 | $1,801,607 | Level 3 | | Real estate owned | $5,120 | $5,120 | Level 3 | - Fair value for real estate owned is determined through independent appraisals or estimations, adjusted by management for qualitative reasons and estimated liquidation expenses, using **Level 3 inputs**[94](index=94&type=chunk) - Individually evaluated loans are written down to fair value based on collateral valuations, discounted cash flows, and industry liquidation rates, classified as **Level 3** due to subjective assumptions[95](index=95&type=chunk) [Note 11 — Revenue Recognition](index=38&type=section&id=Note%2011%20%E2%80%94%20Revenue%20Recognition) The majority of the Company's revenue comes from interest income, which is outside the scope of ASC 606, while non-interest income streams within ASC 606 are recognized as performance obligations are satisfied | Non-Interest Income Source | Three Months Ended March 31, 2025 (In Thousands) | Three Months Ended March 31, 2024 (In Thousands) | ASC 606 Scope | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :------------ | | Deposit-related fees and charges | $17 | $15 | Within | | Loan-related fees and charges | $456 | $211 | Not within | | Electronic banking fees and charges | $267 | $236 | Within | | Income from bank owned life insurance | $167 | $157 | Not within | | Unrealized gain (loss) on equity securities | $300 | $(82) | Not within | | Miscellaneous | $28 | $17 | Not within | | Total non-interest income | $1,235 | $554 | | - The Company does not typically enter into long-term revenue contracts with customers and does not experience significant contract balances[104](index=104&type=chunk)[105](index=105&type=chunk) [Note 12 — Other Non-Interest Expenses](index=41&type=section&id=Note%2012%20%E2%80%94%20Other%20Non-Interest%20Expenses) Other non-interest expenses increased for Q1 2025 compared to the prior year, primarily driven by increases in miscellaneous other expenses, regulatory fees, and legal fees | Expense Category | Three Months Ended March 31, 2025 (In Thousands) | Three Months Ended March 31, 2024 (In Thousands) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Other | $1,367 | $1,103 | | Service contracts | $423 | $424 | | Consulting expense | $191 | $231 | | Telephone | $143 | $170 | | Directors' compensation | $237 | $246 | | Audit and accounting | $143 | $135 | | Insurance | $106 | $102 | | Director, officer, and employee expense | $59 | $79 | | Legal fees | $98 | $66 | | Office supplies and stationary | $56 | $51 | | Recruiting expense | $32 | $27 | | Total | $2,855 | $2,634 | [Note 13 — Stock Compensation Plans](index=41&type=section&id=Note%2013%20%E2%80%94%20Stock%20Compensation%20Plans) The Company's 2022 Equity Incentive Plan allows for grants of various stock-based awards, with increased restricted stock compensation expense and significant unrecognized compensation costs remaining - The 2022 Equity Incentive Plan reserved **1,369,771 shares** for various stock-based awards[109](index=109&type=chunk) | Metric | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Restricted stock compensation expense | $293 | $252 | | Stock option compensation expense | $185 | $192 | - As of March 31, 2025, **$3.0 million** in compensation cost related to non-vested restricted stock awards and **$1.9 million** related to stock option awards remain unrecognized, expected to be recognized over the next three years[113](index=113&type=chunk)[116](index=116&type=chunk) [Note 14 — Business Segments](index=43&type=section&id=Note%2014%20%E2%80%94%20Business%20Segments) The Company operates as a single reportable operating segment, with its Executive Committee assessing performance on a consolidated basis using net income and other financial measures - All financial service operations are aggregated into one reportable operating segment[117](index=117&type=chunk) - The Executive Committee uses net income, net interest margin, return on average assets, and return on common equity to evaluate performance and allocate resources[119](index=119&type=chunk) | Metric | Three Months Ended March 31, 2025 (In Thousands) | Three Months Ended March 31, 2024 (In Thousands) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total interest income | $38,207 | $38,121 | | Total interest expense | $13,943 | $13,135 | | Net interest income | $24,264 | $24,986 | | Segment net income | $10,567 | $11,374 | [Note 15 — Recent Accounting Pronouncements](index=45&type=section&id=Note%2015%20%E2%80%94%20Recent%20Accounting%20Pronouncements) The Company reviewed recent FASB Accounting Standards Updates (ASUs), including ASU 2023-06, ASU 2024-03, ASU 2024-04, and ASU 2025-01, none of which are expected to have a significant impact on its financial statements - ASU 2023-06 incorporates SEC disclosure requirements into US GAAP, effective when related SEC rules are removed[123](index=123&type=chunk)[124](index=124&type=chunk) - ASU 2024-03 (and its revision ASU 2025-01) requires disaggregation disclosures for certain costs and expenses for public business entities, effective for fiscal years beginning after December 15, 2026[125](index=125&type=chunk)[127](index=127&type=chunk) - ASU 2024-04 clarifies accounting for induced conversions of convertible debt instruments, effective for fiscal years beginning after December 15, 2025[126](index=126&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on the Company's financial condition and results of operations, including forward-looking statements, critical accounting policies, and detailed analysis of balance sheet changes, income statement performance, asset quality, liquidity, and capital resources for Q1 2025 [Forward-Looking Statements](index=47&type=section&id=Forward-Looking%20Statements) The Company includes forward-looking statements, which are subject to significant risks and uncertainties, and cautions readers that actual results may differ materially - Forward-looking statements are based on assumptions and describe future plans, strategies, and expectations, identifiable by words like 'believe,' 'expect,' 'intend,' 'anticipate,' 'estimate,' 'project,' 'plan'[128](index=128&type=chunk) - Key risk factors include general economic conditions, changes in interest rates, increased competitive pressures, changes in loan/investment portfolios, real estate market values, legislative/regulatory changes, technological changes, and cybersecurity risks[129](index=129&type=chunk)[131](index=131&type=chunk) [Critical Accounting Policies](index=49&type=section&id=Critical%20Accounting%20Policies) The Company identifies critical accounting policies as those involving significant management judgments and assumptions that could materially impact asset carrying values or income - Critical accounting policies involve significant judgments and assumptions that could materially impact the carrying value of assets or income[132](index=132&type=chunk) - Estimates are based on historical experience and reasonable factors, but actual results may differ, potentially impacting asset and liability carrying values and operating results[132](index=132&type=chunk) [Balance Sheet Analysis](index=49&type=section&id=Balance%20Sheet%20Analysis) Total assets decreased by **$76.2 million**, or **3.8%**, primarily due to a significant decrease in net loans, partially offset by increases in cash and cash equivalents and equity securities - Total assets decreased **$76.2 million** (**3.8%**) to **$1.9 billion** at March 31, 2025, from **$2.0 billion** at December 31, 2024[133](index=133&type=chunk) - Net loans decreased **$87.3 million** (**4.8%**), primarily due to a **$138.9 million** decrease in construction loans, offset by increases in multi-family, commercial and industrial, and consumer loans[137](index=137&type=chunk) - Total deposits decreased **$84.4 million** (**5.1%**), driven by a **$125.1 million** decrease in certificates of deposit (retail and brokered), partially offset by increases in NOW/money market and savings accounts[144](index=144&type=chunk) - Stockholders' equity increased **$8.9 million** (**2.8%**) to **$327.2 million**, primarily due to net income and ESOP shares earned, partially offset by dividends declared and other comprehensive loss[148](index=148&type=chunk)[150](index=150&type=chunk) [Results of Operations for the Three Months Ended March 31, 2025 and 2024](index=53&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Net income decreased by **7.1%** year-over-year, primarily due to a decline in net interest income and an increase in credit loss provision, despite a significant rise in non-interest income - Net income decreased by **$807,000** (**7.1%**) to **$10.6 million** for the three months ended March 31, 2025, compared to **$11.4 million** in the prior year[151](index=151&type=chunk) - Net interest income decreased **$722,000** (**2.9%**) to **$24.3 million**, as interest expense growth outpaced interest income growth[152](index=152&type=chunk) - Net interest margin decreased **64 basis points** (**11.1%**) to **5.11%** for the three months ended March 31, 2025, from **5.75%** in the prior year[155](index=155&type=chunk) - Non-interest income increased **$681,000** (**122.9%**) to **$1.2 million**, driven by an unrealized gain on equity securities and higher loan fees[164](index=164&type=chunk) - Non-interest expense increased **$938,000** (**9.7%**) to **$10.6 million**, primarily due to higher salaries and employee benefits and other operating expenses[167](index=167&type=chunk) [Asset Quality](index=60&type=section&id=Asset%20Quality) Non-performing assets remained stable at **$5.1 million**, consisting entirely of real estate owned, with no non-accrual or past due loans, while the allowance for credit losses related to loans increased to **0.30%** of total loans | Metric | March 31, 2025 (In thousands) | December 31, 2024 (In thousands) | | :------------------------------------ | :---------------------------- | :---------------------------- | | Total non-accrual loans | $0 | $0 | | Total accruing loans past due 90 days or more | $0 | $0 | | Total non-performing loans | $0 | $0 | | Real estate owned | $5,120 | $5,120 | | Total non-performing assets | $5,120 | $5,120 | | Total non-performing assets to total assets | 0.26% | 0.25% | - The allowance for credit losses related to loans increased to **$5.1 million**, or **0.30%** of total loans, at March 31, 2025, from **$4.8 million**, or **0.27%**, at December 31, 2024[188](index=188&type=chunk) - Recoveries of **$352,000** were recorded during the three months ended March 31, 2025, primarily from a previously charged-off non-residential mortgage loan[161](index=161&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) The Company maintains adequate liquidity through deposits, loan repayments, and investment maturities, supplemented by borrowing agreements with FHLB and FRBNY, with significant available borrowing capacity | Liquidity Ratio | Average for Three Months Ended March 31, 2025 | Target | | :------------------------------------------ | :-------------------------------------------- | :----- | | Cash Liquidity ratio | 6.1% | 2.0% | | On Balance Sheet Liquidity ratio | 8.4% | 8.0% | | On Balance Sheet Liquidity & Borrowing Capacity ratio | 74.2% | 20.0% | - Primary liquidity sources include deposits, prepayment of loans and mortgage-backed securities, maturities of investment securities, earnings, and funds from operations[195](index=195&type=chunk) - Available borrowing limits were **$941.3 million** from FRBNY and **$15.5 million** from FHLB at March 31, 2025, with no outstanding borrowings[198](index=198&type=chunk)[199](index=199&type=chunk) - Unfunded commitments totaled **$360.7 million** for construction/multi-family loans, **$205.9 million** for loan originations, **$81.9 million** for lines of credit, and **$14.9 million** for standby letters of credit at March 31, 2025[201](index=201&type=chunk) [Off-Balance Sheet Arrangements](index=66&type=section&id=Off-Balance%20Sheet%20Arrangements) The Company did not engage in any off-balance sheet transactions during Q1 2025 that are reasonably likely to have a material adverse effect on its financial condition, results of operations, or cash flows - No material adverse off-balance sheet arrangements were engaged in during the three months ended March 31, 2025[205](index=205&type=chunk) [Impact of Inflation and Changing Prices](index=66&type=section&id=Impact%20of%20Inflation%20and%20Changing%20Prices) The Company's financial statements are prepared using historical dollars, and while inflation impacts operating costs, changes in market interest rates have a greater effect on its performance - The primary impact of inflation is reflected in increased operating costs[206](index=206&type=chunk) - Changes in market interest rates have a greater impact on the Company's performance than inflation, given its assets and liabilities are primarily monetary[206](index=206&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company actively manages interest rate risk, which is defined as exposure to earnings and capital from adverse interest rate movements, using income and economic value simulations to monitor and control this risk - Interest rate risk is managed by determining how interest rate movements affect net interest income and the market value of portfolio equity[209](index=209&type=chunk) - The Company uses income simulation (short-term net interest income) and economic value simulation (long-term market value of portfolio equity) to assess interest rate risk[210](index=210&type=chunk)[212](index=212&type=chunk) | Change in Interest Rates (Basis Points) | Twelve Month Net Interest Income (% of Change) | Estimated Net Portfolio Value (% of Change) | | :-------------------------------------- | :--------------------------------------------- | :------------------------------------------ | | +200 | 14.95% | 2.00% | | +100 | 7.61% | 1.16% | | 0 | — | — | | -100 | (8.42)% | (2.04)% | | -200 | (16.95)% | (4.86)% | [Item 4. Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of March 31, 2025, with no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2025[221](index=221&type=chunk) - No material changes in internal control over financial reporting occurred during the last fiscal quarter[222](index=222&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various legal actions and claims in the normal course of business, which management believes will not have a material adverse impact on its financial condition - Legal actions and claims arising in the normal course of business are not expected to have a material adverse impact on the Company's financial condition[224](index=224&type=chunk) [Item 1A. Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) The Company's risk factors have not materially changed from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - Risk factors have not materially changed from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[225](index=225&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company's Board of Directors authorized a stock repurchase program to acquire up to **1,509,218 shares** of common stock, with no shares repurchased during Q1 2025 - The Board authorized a stock repurchase program for up to **1,509,218 shares** of common stock[226](index=226&type=chunk) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | | :-------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------- | | January 1 - 31, 2025 | - | - | 418,044 | | February 1 - 28, 2025 | - | - | 418,044 | | March 1 - 31, 2025 | - | - | 418,044 | | Total | - | - | | [Item 3. Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company [Item 4. Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company [Item 5. Other Information](index=71&type=section&id=Item%205.%20Other%20Information) No directors or officers informed the Company of the adoption or termination of Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers reported adoption or termination of Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[230](index=230&type=chunk) [Item 6. Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications, XBRL financial statements, and related taxonomy documents - Exhibits include CEO and CFO certifications (31.1, 31.2, 32.0), and XBRL formatted financial statements and taxonomy documents (101.0, 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[236](index=236&type=chunk)