Core Viewpoint - The market anticipates a year-over-year decline in earnings for Northeast Community Bancorp (NECB) due to lower revenues, with actual results being crucial for stock price movement [1][2]. Company Summary - Northeast Community Bancorp is expected to report quarterly earnings of $0.84 per share, reflecting an 11.6% decrease year-over-year. Revenues are projected at $26.8 million, down 3% from the previous year [3]. - The consensus EPS estimate has been revised 4.94% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for NECB matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%. The company holds a Zacks Rank of 1 (Strong Buy) [12]. Earnings Surprise History - In the last reported quarter, NECB was expected to post earnings of $0.79 per share but exceeded expectations with earnings of $0.82, resulting in a surprise of +3.80%. Over the last four quarters, the company has beaten consensus EPS estimates three times [14][15]. Industry Comparison - Eastern Bankshares, Inc. (EBC), another player in the Northeast banking sector, is expected to report earnings of $0.40 per share, indicating a 60% year-over-year increase. Revenues are anticipated to be $243.9 million, up 19.9% from the previous year [20]. - The consensus EPS estimate for EBC has been revised 0.6% higher in the last 30 days, but it currently has an Earnings ESP of -4.23%, making it challenging to predict a beat against the consensus EPS estimate [21].

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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]