Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector. Sign up today for your two-week free trial and get a new lease on oil & gas! One of the banks that I have been the most bullish about is Northeast Community Bancorp (NASDAQ: NECB ). Back in February of this year, I decided to revisit that company. And in the article that Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus ...

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40589 NorthEast Community Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 86-31 ...

Financial Performance - Net income for the three months ended March 31, 2025, was $10.6 million, or $0.80 per basic share, compared to $11.4 million, or $0.87 per basic share, for the same period in 2024, representing a decrease of 7.0% in net income [2]. - Basic earnings per share decreased to $0.80 in Q1 2025 from $0.87 in Q1 2024, while diluted earnings per share fell to $0.78 from $0.86 [49]. - Net interest income for the three months ended March 31, 2025, was $24.3 million, a decrease of $722,000, or 2.9%, from $25.0 million in the same period in 2024 [20]. - Net interest income for Q1 2025 was $24,264,000, down from $24,986,000 in Q1 2024, reflecting a decrease in net interest margin from 5.75% to 5.11% [49]. - The efficiency ratio increased to 41.64% in Q1 2025 compared to 37.91% in Q1 2024, indicating a decline in operational efficiency [49]. - Return on average total assets decreased to 2.12% in Q1 2025 from 2.50% in Q1 2024, while return on average shareholders' equity fell to 12.98% from 15.88% [49]. Asset and Loan Management - Total assets decreased by $76.2 million, or 3.8%, to $1.9 billion at March 31, 2025, primarily due to a decrease in net loans of $87.3 million [4]. - Loans, net of the allowance for credit losses, decreased by $87.3 million, or 4.8%, to $1.7 billion at March 31, 2025, with significant decreases in construction loans by $138.9 million [8]. - Total loans decreased to $1,725,601,000 in Q1 2025 from $1,812,598,000 in Q4 2024, with a notable decline in the construction loan portfolio from $1,426,167,000 to $1,287,225,000 [49]. - The allowance for credit losses related to loans increased to $5.1 million, or 0.30% of total loans, as of March 31, 2025, compared to $4.9 million, or 0.27% of total loans, at December 31, 2024 [9]. - The allowance for credit losses to total loans increased to 0.30% in Q1 2025 from 0.27% in Q4 2024, reflecting a cautious approach to credit risk management [49]. - Non-performing assets remained stable at $5.1 million as of March 31, 2025, with a ratio of non-performing assets to total assets at 0.26% [34]. - Total non-performing assets remained stable at $5,120,000 in both Q1 2025 and Q4 2024, indicating consistent asset quality [49]. Income and Expenses - Total interest and dividend income increased by $86,000, or 0.2%, to $38.2 million for the three months ended March 31, 2025, due to an increase in the average balance of interest-earning assets [21]. - Non-interest income for the three months ended March 31, 2025, was $1.2 million, an increase of $681,000, or 122.9%, compared to $554,000 for the same period in 2024 [29]. - Non-interest expense increased by $938,000, or 9.7%, to $10.6 million for the three months ended March 31, 2025, compared to $9.7 million for the same period in 2024 [32]. - Net interest income after provision for credit loss was $24.0 million for the three months ended March 31, 2025, down from $25.2 million for the same period in 2024 [47]. Equity and Capital Management - Total stockholders' equity increased by $8.9 million, or 2.8%, to $327.2 million at March 31, 2025, driven by net income and other factors [19]. - The total stockholders' equity to assets ratio was 16.92% as of March 31, 2025 [37]. - The company completed its first stock repurchase program, repurchasing 1,637,794 shares at a total cost of $23.0 million [39]. - As of March 31, 2025, the company had repurchased 1,091,174 shares under its second stock repurchase program at a cost of $17.2 million [40]. - Total capital to risk-weighted assets improved to 15.10% in Q1 2025 from 13.92% in Q4 2024, indicating stronger capital adequacy [49]. Taxation - The effective income tax rate decreased to 27.8% for the three months ended March 31, 2025, from 29.0% for the same period in 2024 [33].

Financial Performance - Northeast Community Bancorp (NECB) reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, but down from $0.86 per share a year ago, representing an earnings surprise of 1.30% [1] - The company posted revenues of $25.5 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.04%, compared to revenues of $25.54 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Northeast Community Bancorp shares have declined approximately 9.7% since the beginning of the year, while the S&P 500 has seen a decline of 10.2% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for it to outperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $26.26 million, and for the current fiscal year, it is $3.18 on revenues of $105.66 million [7] - The outlook for the industry, specifically the Banks - Northeast sector, is favorable, ranking in the top 23% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

WHITE PLAINS, N.Y., April 21, 2025 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (NASDAQ:NECB) (the "Company"), the parent holding company of NorthEast Community Bank (the "Bank"), generated 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 compared to net income of $11.4 million, or $0.87 per basic share and $0.86 per diluted share, for the three months ended March 31, 2024. Kenneth A. Martinek, Chairman of the Board and Chi ...

Investors might want to bet on Northeast Community Bancorp (NECB) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the ...

Core Points - NorthEast Community Bancorp, Inc. has declared a quarterly cash dividend of $0.20 per common share, payable on or about May 6, 2025, to shareholders of record as of April 7, 2025 [1][2] - The increase in the quarterly dividend reflects the company's long-term commitment to enhancing shareholder value, as stated by Kenneth A. Martinek, the Chairman and CEO [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]

Financial Performance - The Company completed its second-step conversion on July 12, 2021, raising gross proceeds of $97.8 million by selling 9,784,077 shares at $10.00 per share[15]. - The Bank's revenues are primarily derived from interest on loans, with additional income from deposit fees, service charges, and investment advisory fees[18]. - The Company increased quarterly cash dividends to $0.10 per share on March 21, 2024, and $0.15 per share on September 19, 2024, up from $0.06 per share prior to 2024[200]. - The profitability of the company's branch expansion strategy will depend on whether income generated from new branches offsets the increased expenses associated with their establishment and operation[197]. Loan Portfolio - As of December 31, 2024, the construction loan portfolio consisted of 485 loans totaling $1.9 billion in committed amount, with outstanding disbursed balances of $1.4 billion and undisbursed loans in process of $398.4 million[39]. - At December 31, 2024, 89.2% of the loan portfolio, amounting to $1.6 billion, was secured by loans in the New York State/New York Metropolitan Area[30]. - The average committed amount in the construction loan portfolio was $5.4 million when combining land, construction, and development loans[41]. - The largest outstanding construction loan at December 31, 2024, had a committed amount of $27.2 million, secured by a 110 apartment unit multi-family building in the Bronx[42]. - As of December 31, 2024, the largest outstanding committed construction loan relationship totaled $45.9 million, with the company's committed portion reduced to $37.9 million after selling $8.0 million to other institutions[45]. - The average balance of loans in the commercial and industrial loan portfolio was $711,000 as of December 31, 2024[48]. - The largest outstanding commercial and industrial loan was an unsecured line of credit with a balance of $10.0 million, with additional loans totaling $16.0 million in construction loans[49]. - Multifamily and mixed-use real estate loans in the New York State/New York Metropolitan Area totaled $70.8 million as of December 31, 2024[54]. - In the Massachusetts/Boston Metropolitan Area, multifamily and mixed-use real estate loans amounted to $156.7 million as of December 31, 2024[55]. - The average debt-service coverage ratio for multifamily loans was 2.58x, while for mixed-use loans it was 2.98x, with an average loan-to-value ratio of 37.5% for both[59]. - The non-residential real estate loan portfolio totaled $29.4 million, representing 1.6% of total loans, with the largest loan at $13.9 million[71]. - The consumer loan portfolio was $1.6 million, or 0.09% of total loans, primarily consisting of overdrawn checking accounts[73]. - As of December 31, 2024, the company held $15.2 million in participation interests in construction loans originated by the bank[79]. - The average balance of non-residential loans was $1.1 million, based on 28 outstanding loans as of December 31, 2024[71]. - As of December 31, 2024, the Bank's loans-to-one-borrower limit was approximately $43.6 million, with no borrowers exceeding this amount[82]. - The multifamily, mixed-use, and non-residential real estate loans accounted for $262.6 million, or 14.5% of the total loan portfolio as of December 31, 2024[173]. - Construction loans represented 485% of the Bank's total risk-based capital at December 31, 2024, while multifamily, mixed-use, and non-residential real estate loans represented 90%[176]. - At December 31, 2024, $1.3 billion of the construction loan portfolio, or 92.3%, was concentrated in high absorption areas of New York[185]. Competition and Market Conditions - The Company faces significant competition from various financial institutions and non-depository financial service companies in attracting deposits and originating loans[28]. - Competition in the banking and financial services industry is intense, particularly in New York and Massachusetts markets, impacting growth and profitability[190]. - Economic conditions could lead to increased non-performing loans and reduced demand for products and services, adversely affecting financial results[189]. - The geographic concentration of loans makes the company vulnerable to downturns in the local economy and real estate markets[184]. Regulatory Environment - The Bank is subject to extensive regulation by the New York State Department of Financial Services and the FDIC, ensuring compliance with various financial standards[95]. - The Company is subject to the Sarbanes-Oxley Act of 2002, which aims to improve corporate responsibility and enhance penalties for accounting improprieties[156]. - The Bank's latest FDIC CRA rating was "Outstanding," reflecting its commitment to meet the credit needs of its community[130]. - The final rule amending CRA regulations will become effective on January 1, 2026, and includes a metrics-based approach to evaluating bank retail lending and community development financing[132]. - The FDIC has the authority to increase insurance assessments, which could adversely affect the Bank's operating expenses and results of operations[127]. - The Bank's privacy protection policy complies with FDIC regulations, requiring disclosure of its privacy policy to customers and allowing them to opt-out of sharing personal information[129]. - The Bank must submit a capital restoration plan if classified as undercapitalized, with guarantees required from the controlling company[118]. - The FDIC can terminate deposit insurance if the institution is found to be in unsafe or unsound condition, although no such conditions are currently known[128]. Risk Management - The company has implemented various risk management practices to monitor concentration limits in construction and real estate loans[178]. - The allowance for credit losses may need to be increased if actual loan losses exceed estimates, negatively impacting net income[182]. - The company requires borrowers to fund an interest reserve account in advance for construction loans to mitigate risks[172]. - The company faces significant operational risks due to reliance on high transaction volumes, which could lead to material financial loss from fraud, errors, or system failures[196]. - Changes in interest rates could adversely affect the company's profits and asset values, impacting net interest income and the ability to originate loans[201]. - The company is subject to regulatory scrutiny regarding compliance with the Bank Secrecy Act and anti-money laundering regulations, which could result in fines and operational restrictions if deficiencies are found[195]. Capital and Liquidity - The Bank's capital conservation buffer requirement was fully phased in at 2.5% as of December 31, 2024, exceeding the regulatory requirement[108]. - The Bank had no borrowings from the Federal Reserve Bank of New York as of December 31, 2024, with an available borrowing limit of $834.7 million[93]. - The Bank's investment portfolio primarily consisted of mutual funds, residential mortgage-backed securities, and municipal securities, with stated final maturities of 10 years or more[86]. - The company had uninsured deposits totaling $346.9 million and $115.0 million in available liquidity, including $78.3 million in cash[205]. - The company has $834.7 million in borrowing capacity at the FRBNY, sufficient to cover uninsured deposits as of December 31, 2024[205]. - The company’s ability to maintain adequate liquidity is critical, with a majority of liabilities being demand deposits, while a substantial majority of assets are loans that cannot be quickly liquidated[202]. Employee and Corporate Structure - The Company had 136 full-time employees and seven part-time employees as of December 31, 2024[163]. - The Company is classified as an emerging growth company and may take advantage of exemptions from various reporting requirements until it ceases to be classified as such[160]. - The Company will cease to be an emerging growth company upon reaching annual gross revenues of $1.235 billion or more, among other criteria[162]. - The Bank's only direct subsidiary is New England Commercial Properties LLC, which owns two foreclosed properties located in New York and Pennsylvania[164]. - The Company is required to notify the Federal Reserve Board prior to redeeming or repurchasing common stock if experiencing financial weaknesses[153]. - The Federal Reserve Board has the authority to prohibit dividends by savings and loan holding companies if deemed unsafe or unsound[153]. - The Company is required to maintain capital adequacy guidelines similar to those of the FDIC for the Bank, with a capital conservation buffer phased in between 2016 and 2019[150]. - The Bank was classified as "well capitalized" under FDIC regulations as of December 31, 2024, with a total risk-based capital ratio of 10.0% or greater[117].

Core Viewpoint - NorthEast Community Bancorp, Inc. has announced its annual meeting of stockholders scheduled for May 22, 2025 [1] Company Overview - NorthEast Community Bancorp is headquartered in White Plains, New York, and serves as the holding company for NorthEast Community Bank [2] - The bank operates eleven branch offices across New York and Massachusetts, specifically in Bronx, Orange, Rockland, Sullivan Counties in New York, and Essex, Middlesex, and Norfolk Counties in Massachusetts [2] - Additionally, the bank has three loan production offices located in New City, White Plains, and Danvers [2]