PART I — FINANCIAL INFORMATION This section encompasses the company's unaudited consolidated financial statements and related notes, along with management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including the statements of financial condition, income, comprehensive income, changes in stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, regulatory capital, and specific financial instrument details [Consolidated Statements of Financial Condition](index=4&type=page&id=Consolidated%20Statements%20of%20Financial%20Condition) This section presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Total Assets: | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $1,719,945 | | Dec 31, 2022 | $1,424,963 | Net Loans: | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $1,503,403 | | Dec 31, 2022 | $1,212,219 | Total Deposits: | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $1,365,634 | | Dec 31, 2022 | $1,121,955 | Total Stockholders' Equity: | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $272,413 | | Dec 31, 2022 | $261,989 | [Consolidated Statements of Income](index=6&type=page&id=Consolidated%20Statements%20of%20Income) This section outlines the company's financial performance over specific periods, reporting revenues, expenses, and net income Net Income: | Period | 2023 (in thousands) | 2022 (in thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months Ended Sep 30 | $11,843 | $7,542 | +57.0% | | Nine Months Ended Sep 30 | $34,175 | $16,580 | +106.1% | Net Interest Income: | Period | 2023 (in thousands) | 2022 (in thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Three Months Ended Sep 30 | $25,129 | $17,460 | +43.9% | | Nine Months Ended Sep 30 | $71,985 | $42,928 | +67.7% | Earnings Per Common Share – Basic: | Period | 2023 | 2022 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $0.80 | $0.49 | | Nine Months Ended Sep 30 | $2.42 | $1.07 | [Consolidated Statements of Comprehensive Income](index=8&type=page&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section reports the company's total comprehensive income, including net income and other comprehensive income items Total Comprehensive Income: | Period | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $11,850 | $7,565 | | Nine Months Ended Sep 30 | $34,197 | $16,644 | [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=page&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section details the changes in the company's equity accounts over specific periods, reflecting net income, dividends, and stock transactions - Total stockholders' equity increased to **$272,413 thousand** at September 30, 2023, from **$261,989 thousand** at December 31, 2022[18](index=18&type=chunk) - Net income for the nine months ended September 30, 2023, contributed **$34,175 thousand** to stockholders' equity[18](index=18&type=chunk) - Stock repurchases totaled **$(23,388) thousand** and cash dividends declared were **$(2,544) thousand** for the nine months ended September 30, 2023[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=page&id=Consolidated%20Statements%20of%20Cash%20Flows) This section categorizes the company's cash inflows and outflows from operating, investing, and financing activities over specific periods Net Cash Provided by Operating Activities: | Period | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Nine Months Ended Sep 30 | $30,866 | $14,447 | Net Cash Used in Investing Activities: | Period | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Nine Months Ended Sep 30 | $(280,099) | $(156,566) | Net Cash Provided by Financing Activities: | Period | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Nine Months Ended Sep 30 | $260,648 | $44,782 | Net Increase (Decrease) in Cash and Cash Equivalents: | Period | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Nine Months Ended Sep 30 | $11,415 | $(97,337) | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1 — Summary of Significant Accounting Policies](index=13&type=page&id=Note%201%20%E2%80%94%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and methods used in preparing the financial statements - Northeast Community Bancorp, Inc. operates NorthEast Community Bank, a New York State-chartered savings bank, primarily originating construction, commercial and industrial, and multifamily/mixed-use real estate loans[22](index=22&type=chunk)[23](index=23&type=chunk)[25](index=25&type=chunk) - Effective January 1, 2023, the company adopted ASC 326 (CECL), resulting in a **$99,000** (net of tax) reduction to retained earnings[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) Impact of ASC 326 Adoption on ACL (January 1, 2023): | Component | Pre-adoption (in thousands) | Adoption Impact (in thousands) | As Reported (in thousands) | | :--- | :--- | :--- | :--- | | ACL on debt securities held-to-maturity | $0 | $132 | $132 | | ACL on loan receivables | $5,474 | $(1,631) | $3,843 | | ACL for off-balance sheet exposure | $0 | $1,586 | $1,586 | | **Total** | **$5,474** | **$134** | **$5,608** | [Note 2 — Regulatory Capital](index=19&type=page&id=Note%202%20%E2%80%94%20Regulatory%20Capital) This note details the company's compliance with regulatory capital requirements and its capital adequacy ratios - The Bank met all capital adequacy requirements as of September 30, 2023, and December 31, 2022, and was categorized as **"well capitalized"** by the FDIC[55](index=55&type=chunk)[57](index=57&type=chunk) Regulatory Capital Ratios (as of September 30, 2023): | Ratio | Actual Ratio | Minimum Capital Adequacy | For Classification as Well-Capitalized | | :--- | :--- | :--- | :--- | | Total capital (to risk weighted assets) | 13.50% | ≥8.00% | ≥10.00% | | Tier 1 capital (to risk weighted assets) | 13.16% | ≥6.00% | ≥8.00% | | Common equity tier 1 capital (to risk-weighted assets) | 13.16% | ≥4.50% | ≥6.50% | | Core (Tier 1) capital (to adjusted total assets) | 14.70% | ≥4.00% | ≥5.00% | [Note 3 — Equity Securities](index=21&type=page&id=Note%203%20%E2%80%94%20Equity%20Securities) This note provides information on the company's equity securities, including fair values and unrealized gains or losses Equity Securities, at Fair Value: | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $17,714 | | Dec 31, 2022 | $18,041 | Unrealized Net Loss Recognized on Equity Securities: | Period | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $430 | $573 | | Nine Months Ended Sep 30 | $327 | $1,636 | [Note 4 — Securities Available-for-Sale](index=23&type=page&id=Note%204%20%E2%80%94%20Securities%20Available-for-Sale) This note details the company's securities classified as available-for-sale, including their fair values Securities Available-for-Sale, at Fair Value: | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $0 | | Dec 31, 2022 | $1 | [Note 5 — Securities Held-to-Maturity](index=23&type=page&id=Note%205%20%E2%80%94%20Securities%20Held-to-Maturity) This note provides information on the company's debt securities held with the intent and ability to hold to maturity Securities Held-to-Maturity (Amortized Cost): | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $15,655 | | Dec 31, 2022 | $26,395 | - Total unrealized losses on held-to-maturity securities were **$3,746 thousand** at September 30, 2023, primarily due to market interest rate volatility, not credit quality[65](index=65&type=chunk)[69](index=69&type=chunk) - The allowance for credit losses for held-to-maturity debt securities was **$131 thousand** at September 30, 2023[67](index=67&type=chunk) [Note 6 — Loans Receivable and the Allowance for Credit Losses](index=25&type=page&id=Note%206%20%E2%80%94%20Loans%20Receivable%20and%20the%20Allowance%20for%20Credit%20Losses) This note details the composition of loans receivable and the methodology and balances of the allowance for credit losses Total Loans (Gross): | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $1,507,938 | | Dec 31, 2022 | $1,217,321 | Loan Composition (September 30, 2023): | Loan Type | Amount (in thousands) | | :--- | :--- | | Construction | $1,168,909 | | Residential real estate | $209,535 | | Commercial and industrial | $107,963 | | Non-residential real estate | $20,289 | | Consumer | $1,242 | Allowance for Credit Losses (ACL) - Loans: | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $4,767 | | Dec 31, 2022 | $5,474 | - As of September 30, 2023, there were two individually evaluated non-accrual construction loans totaling **$4,381 thousand**, secured by the same multi-family project in the Bronx, New York[79](index=79&type=chunk)[84](index=84&type=chunk) - The allowance for credit losses related to off-balance sheet commitments was **$1,191 thousand** at September 30, 2023[97](index=97&type=chunk) [Note 7 — Real Estate Owned ("REO")](index=34&type=page&id=Note%207%20%E2%80%94%20Real%20Estate%20Owned%20%28%22REO%22%29) This note provides information on properties acquired through foreclosure or deed in lieu of foreclosure - The company owned one foreclosed property, an office building in Pennsylvania, valued at **$1,456 thousand** at both September 30, 2023, and December 31, 2022[98](index=98&type=chunk) REO Expense (in thousands): | Period | 2023 | 2022 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $11 | $200 | | Nine Months Ended Sep 30 | $52 | $252 | [Note 8 — Federal Home Loan Bank of New York ("FHLB") Advances](index=36&type=page&id=Note%208%20%E2%80%94%20Federal%20Home%20Loan%20Bank%20of%20New%20York%20%28%22FHLB%22%29%20Advances) This note details the company's borrowings from the Federal Home Loan Bank of New York and other secured borrowings FHLB Advances: | Date | Amount (in thousands) | Weighted Average Interest Rate | | :--- | :--- | :--- | | Sep 30, 2023 | $14,000 | 2.24% | | Dec 31, 2022 | $21,000 | 2.43% | - As of September 30, 2023, the company had **$50,000 thousand** in FRBNY borrowings at an interest rate of **5.5%**, maturing December 22, 2023[102](index=102&type=chunk) - Available borrowing limits were **$31.3 million** from FHLB and **$739.4 million** from FRBNY as of September 30, 2023[101](index=101&type=chunk)[102](index=102&type=chunk) [Note 9 — Benefits Plans](index=36&type=page&id=Note%209%20%E2%80%94%20Benefits%20Plans) This note describes the company's employee benefit plans, including ESOP and SERP, and related expenses ESOP Compensation Expense (in thousands): | Period | 2023 | 2022 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $340 | $271 | | Nine Months Ended Sep 30 | $960 | $775 | - Total ESOP shares held by the Trustee were **1,333,797** at September 30, 2023[115](index=115&type=chunk) - SERP expenses for the nine months ended September 30, 2023, were **$162 thousand**, down from **$361 thousand** in 2022[105](index=105&type=chunk) [Note 10 — Leases](index=40&type=page&id=Note%2010%20%E2%80%94%20Leases) This note provides information on the company's operating leases, including right-of-use assets and lease liabilities Operating Lease Amounts (September 30, 2023, in thousands): | Item | Amount | | :--- | :--- | | ROU assets | $1,935 | | Lease liabilities | $1,991 | | Weighted-average remaining lease term | 5.80 years | Operating Lease Costs (in thousands): | Period | 2023 | 2022 | | :--- | :--- | :--- | | Nine Months Ended Sep 30 | $380 | $423 | [Note 11 — Fair Value Disclosures](index=41&type=page&id=Note%2011%20%E2%80%94%20Fair%20Value%20Disclosures) This note details the fair value measurements of financial instruments, categorized by the fair value hierarchy - The fair value hierarchy categorizes inputs into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[126](index=126&type=chunk) Assets Carried at Fair Value on a Recurring Basis (September 30, 2023, in thousands): | Asset | Total | Level 1 | Level 2 | Level 3 | | :--- | :--- | :--- | :--- | :--- | | Marketable equity securities | $17,714 | $17,714 | $0 | $0 | | Mortgage backed securities | $0 | $0 | $0 | $0 | Assets Carried at Fair Value on a Non-Recurring Basis (September 30, 2023, in thousands): | Asset | Total | Level 1 | Level 2 | Level 3 | | :--- | :--- | :--- | :--- | :--- | | Loans individually evaluated | $4,381 | $0 | $0 | $4,381 | | Real estate owned | $1,456 | $0 | $0 | $1,456 | [Note 12 — Revenue Recognition](index=48&type=page&id=Note%2012%20%E2%80%94%20Revenue%20Recognition) This note explains the company's policies for recognizing revenue, particularly non-interest income - The majority of the company's revenues, primarily interest income from loans and securities, are outside the scope of ASC 606[137](index=137&type=chunk) Non-Interest Income (Nine Months Ended September 30, in thousands): | Category | 2023 | 2022 | | :--- | :--- | :--- | | Deposit-related fees and charges | $42 | $53 | | Loan-related fees and charges | $652 | $861 | | Electronic banking fees and charges | $723 | $648 | | Income from bank owned life insurance | $857 | $450 | | Investment advisory fees | $343 | $364 | | Unrealized loss on equity securities | $(327) | $(1,636) | [Note 13 — Other Non-Interest Expenses](index=51&type=page&id=Note%2013%20%E2%80%94%20Other%20Non-Interest%20Expenses) This note provides a breakdown of various non-interest expenses incurred by the company Total Other Non-Interest Expenses (in thousands): | Period | 2023 | 2022 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $2,646 | $2,237 | | Nine Months Ended Sep 30 | $7,064 | $6,220 | - Key increases for the nine months ended September 30, 2023, included miscellaneous other non-interest expense (**$682 thousand**), service contracts expense (**$236 thousand**), and directors compensation (**$230 thousand**)[227](index=227&type=chunk)[230](index=230&type=chunk) [Note 14 — Earnings Per Share](index=51&type=page&id=Note%2014%20%E2%80%94%20Earnings%20Per%20Share) This note presents the basic and diluted earnings per share calculations for the company Basic Earnings Per Share: | Period | 2023 | 2022 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $0.80 | $0.49 | | Nine Months Ended Sep 30 | $2.42 | $1.07 | Diluted Earnings Per Share: | Period | 2023 | 2022 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $0.80 | $0.49 | | Nine Months Ended Sep 30 | $2.41 | $1.07 | [Note 15 — Stock Compensation Plans](index=53&type=page&id=Note%2015%20%E2%80%94%20Stock%20Compensation%20Plans) This note describes the company's stock-based compensation arrangements, including restricted stock and stock options - The 2022 Equity Incentive Plan, approved on September 29, 2022, reserved **1,369,771 shares** for grants of incentive stock options, nonqualified stock options, restricted stock, and other awards[149](index=149&type=chunk) - Unrecognized compensation cost for non-vested restricted stock awards was **$4.0 million** and for stock option awards was **$3.2 million** at September 30, 2023, both expected to be recognized over the next 5 years[151](index=151&type=chunk)[153](index=153&type=chunk) - Compensation expense for restricted stock was **$723 thousand** and for stock options was **$576 thousand** for the nine months ended September 30, 2023[151](index=151&type=chunk)[153](index=153&type=chunk) [Note 16 — Recent Accounting Pronouncements](index=54&type=page&id=Note%2016%20%E2%80%94%20Recent%20Accounting%20Pronouncements) This note discusses the impact of recently adopted or issued accounting standards on the company's financial statements - The company adopted ASU 2023-03 in July 2023, which amends various SEC paragraphs but did not have a significant impact on its financial statements[154](index=154&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, including an analysis of balance sheet changes, results of operations for the three and nine months ended September 30, 2023, asset quality, liquidity, and capital resources. It also includes forward-looking statements and critical accounting policies [Forward-Looking Statements](index=55&type=page&id=Forward-Looking%20Statements) This section discusses statements that are not historical facts and may constitute forward-looking statements, subject to various risks and uncertainties - Statements in the report that are not historical facts may constitute forward-looking statements, covered by safe harbor provisions[156](index=156&type=chunk) - Actual results may differ materially from predictions due to factors such as general economic conditions, changes in interest rates, increased competition, and regulatory changes[157](index=157&type=chunk) [Critical Accounting Policies](index=55&type=page&id=Critical%20Accounting%20Policies) This section identifies the company's critical accounting policies, which involve significant judgments and assumptions - The Allowance for Credit Losses (ACL) is considered a critical accounting policy, involving significant judgments and assumptions[159](index=159&type=chunk) - The adoption of Topic 326 (CECL) on January 1, 2023, impacted the ACL for loans, held-to-maturity securities, and off-balance sheet credit exposures[159](index=159&type=chunk) [Balance Sheet Analysis](index=57&type=page&id=Balance%20Sheet%20Analysis) This section analyzes significant changes in the company's balance sheet items, including assets, liabilities, and stockholders' equity - Total assets increased by **$295.0 million** (**+20.7%**) to **$1.7 billion** at September 30, 2023, from **$1.4 billion** at December 31, 2022[160](index=160&type=chunk) - Net loans increased by **$291.2 million** (**+24.0%**) to **$1.5 billion**, primarily driven by **$575.8 million** in construction loan originations[165](index=165&type=chunk)[166](index=166&type=chunk) - Total deposits increased by **$243.7 million** (**+21.7%**) to **$1.4 billion**, mainly due to a **$364.3 million** increase in certificates of deposit[173](index=173&type=chunk) - Stockholders' equity increased by **$10.4 million** (**+4.0%**) to **$272.4 million**, influenced by net income, equity plan amortization, and ESOP shares, partially offset by stock repurchases and dividends[178](index=178&type=chunk) [Results of Operations for the Three Months Ended September 30, 2023 and 2022](index=59&type=page&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20September%2030%2C%202023%20and%202022) This section analyzes the company's financial performance for the three months ended September 30, 2023, compared to the prior year, focusing on key income and expense drivers - Net income increased by **$4.3 million** (**+57.0%**) to **$11.8 million** for the three months ended September 30, 2023, compared to **$7.5 million** in the prior year[179](index=179&type=chunk) - Net interest income rose by **$7.7 million** (**+43.9%**) to **$25.1 million**, driven by an **81.3%** increase in interest income from loans and interest-bearing deposits, and a rising interest rate environment[181](index=181&type=chunk)[182](index=182&type=chunk)[184](index=184&type=chunk) - Interest expense increased by **$8.1 million** (**+420.2%**) to **$10.0 million**, due to a **263 basis point** increase in the cost of interest-bearing liabilities[185](index=185&type=chunk) - Provision for credit losses was **$156 thousand** in Q3 2023, compared to none in Q3 2022[187](index=187&type=chunk) - Non-interest expense increased by **$1.1 million** (**+14.0%**) to **$8.9 million**, primarily due to higher salaries and employee benefits and other operating expenses[195](index=195&type=chunk) [Results of Operations for the Nine Months Ended September 30, 2023 and 2022](index=65&type=page&id=Results%20of%20Operations%20for%20the%20Nine%20Months%20Ended%20September%2030%2C%202023%20and%202022) This section analyzes the company's financial performance for the nine months ended September 30, 2023, compared to the prior year, highlighting key trends in income, expenses, and profitability - Net income increased by **$17.6 million** (**+106.1%**) to **$34.2 million** for the nine months ended September 30, 2023, compared to **$16.6 million** in the prior year[208](index=208&type=chunk) - Net interest income increased by **$29.1 million** (**+67.7%**) to **$72.0 million**, driven by a **100.8%** increase in interest income and a **329 basis point** increase in the yield on interest-earning assets to **8.66%**[209](index=209&type=chunk)[211](index=211&type=chunk)[213](index=213&type=chunk) - Interest expense increased by **$18.8 million** (**+411.8%**) to **$23.4 million**, with the cost of interest-bearing liabilities rising by **237 basis points** to **3.35%**[214](index=214&type=chunk) - Net interest margin increased by **169 basis points** (**+34.8%**) to **6.54%** for the nine months ended September 30, 2023[215](index=215&type=chunk) - Non-interest income increased by **$1.5 million** (**+160.6%**) to **$2.4 million**, primarily due to a decrease in unrealized loss on equity securities and an increase in BOLI income[222](index=222&type=chunk) - Non-interest expense increased by **$3.9 million** (**+17.8%**) to **$26.0 million**, mainly due to higher salaries and employee benefits and other operating expenses[225](index=225&type=chunk) [Asset Quality](index=76&type=page&id=Asset%20Quality) This section assesses the quality of the company's assets, including non-performing assets, allowance for credit losses, and net charge-offs Total Non-Performing Assets: | Date | Amount (in thousands) | | :--- | :--- | | Sep 30, 2023 | $5,837 | | Dec 31, 2022 | $1,456 | - Non-performing assets at September 30, 2023, included **$4,381 thousand** in non-accrual construction loans[244](index=244&type=chunk) - The ratio of allowance to total loans decreased to **0.32%** at September 30, 2023, from **0.45%** at December 31, 2022[249](index=249&type=chunk) - Net charge-offs for the nine months ended September 30, 2023, totaled **$286 thousand**, including **$159 thousand** from construction loans sold at a loss[217](index=217&type=chunk)[251](index=251&type=chunk) [Liquidity and Capital Resources](index=77&type=page&id=Liquidity%20and%20Capital%20Resources) This section evaluates the company's liquidity position and capital adequacy, including borrowing capacity and unfunded commitments Average Liquidity Ratios (Nine Months Ended Sep 30, 2023 vs Year Ended Dec 31, 2022): | Ratio | 2023 Average | 2022 Average | | :--- | :--- | :--- | | Cash Liquidity | 7.1% | 11.2% | | On Balance Sheet Liquidity | 10.2% | 15.5% | | On Balance Sheet Liquidity & Borrowing Capacity | 19.4% | 19.0% | - Loan originations totaled **$653.0 million** for the nine months ended September 30, 2023, compared to **$499.2 million** in the prior year[260](index=260&type=chunk) - Available borrowing limits were **$31.3 million** from FHLB and **$739.4 million** from FRBNY as of September 30, 2023[261](index=261&type=chunk)[262](index=262&type=chunk) - Unfunded commitments at September 30, 2023, included **$464.1 million** for construction and multi-family mortgage loans, and **$123.9 million** for outstanding commitments to originate loans[265](index=265&type=chunk) [Off-Balance Sheet Arrangements](index=81&type=page&id=Off-Balance%20Sheet%20Arrangements) This section discloses any off-balance sheet transactions that could materially affect the company's financial condition or results of operations - The company did not engage in any off-balance sheet transactions reasonably likely to have a material adverse effect on its financial condition, results of operations, or cash flows during the nine months ended September 30, 2023[267](index=267&type=chunk) [Impact of Inflation and Changing Prices](index=81&type=page&id=Impact%20of%20Inflation%20and%20Changing%20Prices) This section discusses the effects of inflation and changing prices on the company's financial performance - Changes in market interest rates have a greater impact on the company's performance than the effects of inflation, as its assets and liabilities are primarily monetary in nature[268](index=268&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=81&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's approach to managing interest rate risk through income and economic value simulation analyses. It assesses the impact of hypothetical interest rate changes on net interest income and net portfolio value, concluding that risk levels are within policy guidelines - Interest rate risk is managed using both income simulation (short-term net interest income) and economic value simulation (long-term market value of portfolio equity)[272](index=272&type=chunk)[275](index=275&type=chunk) Twelve-Month Net Interest Income Sensitivity (September 30, 2023): | Change in Interest Rates (Basis Points) | Percent of Change | | :--- | :--- | | +200 | 14.72% | | +100 | 7.40% | | -100 | (8.81)% | | -200 | (17.86)% | Net Portfolio Value Sensitivity (September 30, 2023, in thousands): | Change in Interest Rates (Basis Points) | Estimated NPV | Percent of Change | | :--- | :--- | :--- | | +200 | $307,428 | 3.80% | | +100 | $302,827 | 2.25% | | 0 | $296,164 | 0% | | -100 | $286,634 | (3.22)% | | -200 | $274,942 | (7.17)% | - The company's interest rate risk results are within established policy guidelines as of September 30, 2023[283](index=283&type=chunk) [Item 4. Controls and Procedures](index=85&type=section&id=Item%204.%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2023, ensuring timely and accurate reporting of material information - Disclosure controls and procedures were evaluated and deemed effective as of September 30, 2023[284](index=284&type=chunk) - The controls ensure that information required for SEC reports is recorded, processed, summarized, and reported within specified time periods[284](index=284&type=chunk) PART II — OTHER INFORMATION This section includes legal proceedings, risk factors, equity security sales, and other miscellaneous disclosures [Item 1. Legal Proceedings](index=85&type=page&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions and claims arising in the normal course of business, which management does not expect to have a material adverse impact on its financial condition - Legal actions and claims are not expected to materially adversely impact the company's financial condition[286](index=286&type=chunk) [Item 1A. Risk Factors](index=85&type=page&id=Item%201A.%20Risk%20Factors) The company refers to previously disclosed risk factors in its Annual Report on Form 10-K and Quarterly Report on Form 10-Q, stating that no material changes have occurred as of September 30, 2023 - No material changes to the company's risk factors have occurred since the Annual Report on Form 10-K for 2022 and the Quarterly Report on Form 10-Q for Q1 2023[287](index=287&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=86&type=page&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase program, authorized in May 2023, to acquire up to 10% of its outstanding common stock. It provides information on shares repurchased during the third quarter of 2023 - A stock repurchase program was authorized on May 30, 2023, to acquire up to **1,509,218 shares** (**10%**) of the company's common stock[288](index=288&type=chunk) Common Stock Repurchases (Three Months Ended September 30, 2023): | Period | Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 1 - 31, 2023 | 0 | $0 | | August 1 - 31, 2023 | 331,064 | $16.23 | | September 1 - 30, 2023 | 224,260 | $15.47 | | **Total** | **555,324** | | - As of September 30, 2023, **898,653 shares** remained available for purchase under the program[289](index=289&type=chunk) [Item 3. Defaults Upon Senior Securities](index=86&type=page&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - Not applicable[290](index=290&type=chunk) [Item 4. Mine Safety Disclosures](index=86&type=page&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period - Not applicable[291](index=291&type=chunk) [Item 5. Other Information](index=86&type=page&id=Item%205.%20Other%20Information) There is no other information to report under this item - None[292](index=292&type=chunk) [Item 6. Exhibits](index=86&type=page&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and XBRL formatted financial statements and taxonomy documents - The exhibits include Rule 13a-14(a)/15d-14(a) Certifications of the Chief Executive Officer and Chief Financial Officer[298](index=298&type=chunk) - Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 is also included[298](index=298&type=chunk) - XBRL formatted financial statements (Consolidated Financial Condition, Income, Comprehensive Income, Changes in Stockholder's Equity, Cash Flows) and related taxonomy documents are filed[298](index=298&type=chunk) [Signatures](index=88&type=page&id=Signatures) This section contains the official certifications and signatures of the company's executive officers - The report was signed by Kenneth A. Martinek, Chairman and Chief Executive Officer, and Donald S. Hom, Executive Vice President and Chief Financial Officer, on November 13, 2023[301](index=301&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q NorthEast Community Bancorp, Inc. (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 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 (Exact name of registrant as specified in its charter) Maryland 86-317 ...

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, 2023 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 ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) The company, a New York-chartered savings bank holding company, primarily originates construction loans, operates through eleven branches, and is subject to extensive regulation General Overview - Northeast Community Bancorp, Inc. is the Maryland-incorporated successor holding company for NorthEast Community Bank, following a second-step conversion completed on July 12, 2021[15](index=15&type=chunk) - The Bank's principal business involves originating construction loans, commercial and industrial loans, and various real estate loans. It funds these activities through retail deposits and borrowings, with revenues primarily from loan interest[18](index=18&type=chunk) - The Bank operates eleven branch offices across New York (Bronx, Orange, Rockland, Sullivan counties) and Massachusetts (Essex, Middlesex, Norfolk counties), along with three loan production offices[17](index=17&type=chunk) Lending Activities - The largest segment of the loan portfolio is construction loans, followed by multi-family real estate loans. As of December 31, 2022, **89.4%** of the loan portfolio was secured by properties in the New York State/Metropolitan Area[30](index=30&type=chunk)[32](index=32&type=chunk) Construction Loan Portfolio (as of Dec 31, 2022) | Metric | Value (in millions) | | :--- | :--- | | **Total Committed Amount** | $1,600 | | **Outstanding Disbursed Balance** | $930.6 | | **Undisbursed Loans in Process** | $637.4 | | **Number of Loans (by project)** | 350 | | **Average Loan Size (by project)** | $4.6 (committed) / $2.7 (disbursed) | - The bank has de-emphasized multifamily, mixed-use, and non-residential real estate lending in recent years to focus more on construction lending, particularly in high-absorption, homogeneous communities in New York[52](index=52&type=chunk)[64](index=64&type=chunk) - The bank's loans-to-one-borrower limit was approximately **$33.4 million** as of December 31, 2022, with no borrowers exceeding this limit[80](index=80&type=chunk) Investment Activities - The investment portfolio is primarily viewed as a source of liquidity and consists mainly of mutual funds, residential mortgage-backed securities (from Fannie Mae, Freddie Mac, Ginnie Mae), and municipal securities[85](index=85&type=chunk)[86](index=86&type=chunk) - The investment policy is designed to provide liquidity, ensure safety of principal, generate stable income, and serve as a counter-cyclical balance to loan demand[86](index=86&type=chunk) Deposit Activities and Other Sources of Funds - Major sources of funds include deposits, borrowings, and loan repayments. The bank offers a broad selection of deposit instruments, including checking, money market, and savings accounts[87](index=87&type=chunk)[90](index=90&type=chunk) - The bank utilizes brokered, listing service, and military deposits as a cost-effective strategy to match the maturity of deposits with the term of its construction loans[91](index=91&type=chunk) - The bank uses advances from the Federal Home Loan Bank of New York as a supplemental source of funds. As of December 31, 2022, it had **$21.0 million** in FHLB advances outstanding and the ability to borrow an additional **$31.5 million**[92](index=92&type=chunk) Regulation and Supervision - The Bank is a New York-chartered savings bank regulated by the New York State Department of Financial Services and the FDIC. The Company, as a savings and loan holding company, is regulated by the Federal Reserve Board[94](index=94&type=chunk)[97](index=97&type=chunk) - The Bank must adhere to federal minimum capital standards, including ratios for common equity Tier 1, Tier 1, and total capital. As of December 31, 2022, the Bank was classified as a "well capitalized" institution[103](index=103&type=chunk)[117](index=117&type=chunk) - The Bank is subject to the Community Reinvestment Act (CRA), with its latest FDIC rating being "Satisfactory" and its latest New York State CRA rating being "Outstanding"[132](index=132&type=chunk)[133](index=133&type=chunk) - The Company is subject to Federal Reserve Board capital adequacy guidelines. However, due to the "small bank holding company" exception (threshold increased to **$3.0 billion**), the Company is not subject to these capital requirements until its consolidated assets exceed this amount[145](index=145&type=chunk) Emerging Growth Company Status - The Company is classified as an "emerging growth company," which allows it to take advantage of certain exemptions from reporting requirements, such as reduced executive compensation disclosure and an exemption from the auditor attestation requirement for internal controls over financial reporting (Sarbanes-Oxley Act Section 404(b))[155](index=155&type=chunk) - The Company has elected to use the extended transition period for adopting new or revised accounting standards, which may result in its financial statements not being comparable to other public companies[155](index=155&type=chunk) [Risk Factors](index=42&type=page&id=Item%201A.%20Risk%20Factors) The company faces significant risks from its high concentration in construction loans, geographic concentration, brokered deposit reliance, and interest rate fluctuations - **Lending Risks:** The company's primary risk stems from its high concentration in construction loans, which increased to **$930.6 million** (**76.4%** of total loans) at Dec 31, 2022. These loans are considered riskier than residential mortgages due to uncertainties in project completion and value[168](index=168&type=chunk)[169](index=169&type=chunk) - **Concentration Risk:** The loan portfolio is heavily concentrated in the New York and Boston metropolitan areas, making the company vulnerable to local economic downturns. At Dec 31, 2022, **70.1%** of the total loan portfolio was in high-absorption areas of five New York counties[183](index=183&type=chunk)[184](index=184&type=chunk) - **Regulatory Scrutiny:** The bank's construction loans represented **417%** of its total risk-based capital at Dec 31, 2022, exceeding the **300%** threshold in regulatory guidance that could trigger increased supervisory scrutiny[175](index=175&type=chunk) - **Funding and Liquidity Risk:** The company relies on brokered deposits, military deposits, and listing service deposits, which totaled **$150.0 million** (**13.4%** of total deposits) at Dec 31, 2022. These funding sources may be less stable than traditional retail deposits[189](index=189&type=chunk) - **Accounting Standard Change:** The upcoming adoption of the Current Expected Credit Loss (CECL) model on January 1, 2023, is expected to require earlier recognition of credit losses and may increase the allowance for credit losses, potentially affecting financial condition and results[195](index=195&type=chunk) [Unresolved Staff Comments](index=58&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[219](index=219&type=chunk) [Properties](index=58&type=section&id=Item%202.%20Properties) As of December 31, 2022, the company conducts business from its administrative headquarters in White Plains, NY, eleven branch offices in New York and Massachusetts, three loan production offices, and a wealth management office in Connecticut. Six of these offices are leased, and the total net book value of all properties and equipment was $26.1 million - The company operates from its headquarters in White Plains, NY, eleven branch offices, three loan production offices, and one wealth management office[220](index=220&type=chunk) - At December 31, 2022, the net book value of land, buildings, furniture, fixtures, and equipment was **$26.1 million**[220](index=220&type=chunk) [Legal Proceedings](index=58&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings in the ordinary course of business, which management believes are immaterial to its financial condition, results of operations, and cash flows as of December 31, 2022 - Routine legal proceedings are considered immaterial in aggregate to the company's financial condition[221](index=221&type=chunk) [Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable. The company has no mine safety disclosures - None[222](index=222&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=59&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the Nasdaq Capital Market under the symbol "NECB". During 2022, the company paid regular quarterly cash dividends of $0.06 per share and a special cash dividend of $0.18 per share. A stock repurchase program was authorized in July 2022 to acquire up to 10% of outstanding shares, with 430,231 shares repurchased in the fourth quarter of 2022 - The company's common stock is traded on the Nasdaq Capital Market under the ticker symbol "NECB"[225](index=225&type=chunk) - In 2022, the company paid quarterly dividends of **$0.06 per share** and a one-time special dividend of **$0.18 per share**[226](index=226&type=chunk) Q4 2022 Share Repurchases | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Oct 2022 | 63,004 | $12.80 | | Nov 2022 | 116,300 | $14.01 | | Dec 2022 | 250,927 | $14.64 | | **Total Q4** | **430,231** | - | [Reserved](index=60&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) 2022 financial performance saw significant growth in net interest income and net income, driven by loan expansion and rising rates Business Strategy - Continue focusing on originating construction loans in high-demand, high-absorption areas of the New York Metropolitan Area[233](index=233&type=chunk) - Maintain strong asset quality through a conservative credit culture and active credit risk management[234](index=234&type=chunk) - Expand the franchise through de novo branching or branch acquisitions in growing communities[238](index=238&type=chunk) - Implement a stockholder-focused capital management strategy, including dividends and stock repurchases, supported by a strong capital position[240](index=240&type=chunk) Balance Sheet Analysis - Total assets increased by **$200.0 million** (**16.3%**) to **$1.4 billion** at Dec 31, 2022, from **$1.2 billion** at Dec 31, 2021[252](index=252&type=chunk) - Net loans grew by **$244.1 million** (**25.2%**) to **$1.2 billion**, driven by **$700.1 million** in loan originations, primarily construction loans[257](index=257&type=chunk) - Total deposits increased by **$194.8 million** (**21.0%**) to **$1.1 billion**, led by growth in certificates of deposit, savings accounts, and non-interest bearing demand deposits[265](index=265&type=chunk) - Stockholders' equity increased by **$10.6 million** (**4.2%**) to **$262.0 million**, reflecting net income of **$24.8 million**, partially offset by **$9.3 million** in stock repurchases and **$6.5 million** in dividends[269](index=269&type=chunk) Loan Portfolio Composition (Dec 31, 2022 vs 2021) | Loan Type | 2022 Amount ($M) | 2022 Percent | 2021 Amount ($M) | 2021 Percent | | :--- | :--- | :--- | :--- | :--- | | Construction loans | $930.6 | 76.45% | $683.8 | 70.29% | | Commercial and industrial | $110.1 | 9.04% | $118.4 | 12.17% | | Multifamily | $123.4 | 10.14% | $84.4 | 8.68% | | Mixed-use | $21.9 | 1.80% | $28.7 | 2.95% | | Non-residential real estate | $25.3 | 2.08% | $50.0 | 5.14% | | Other | $6.0 | 0.49% | $7.5 | 0.77% | | **Total Loans** | **$1,217.3** | **100.00%** | **$972.9** | **100.00%** | Results of Operations Financial Highlights (Year Ended Dec 31) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Net Income** | $24.8 million | $11.9 million | | **Net Interest Income** | $63.9 million | $43.3 million | | **Provision for Loan Losses** | $0.4 million | $3.6 million | | **Return on Average Assets** | 1.95% | 1.13% | | **Return on Average Equity** | 9.60% | 6.03% | - Net interest income increased by **$20.6 million** (**47.5%**) in 2022, driven by a **107 basis point** increase in the yield on interest-earning assets, which outpaced the **36 basis point** increase in the cost of interest-bearing liabilities[289](index=289&type=chunk)[291](index=291&type=chunk)[293](index=293&type=chunk) - The provision for loan losses decreased significantly to **$439,000** in 2022 from **$3.6 million** in 2021. The 2021 provision was primarily due to a single **$3.6 million** charge-off on a non-residential bridge loan[297](index=297&type=chunk)[298](index=298&type=chunk) - Non-interest income decreased to **$1.7 million** from **$2.4 million**, mainly due to a **$1.6 million** net unrealized loss on equity securities in 2022[304](index=304&type=chunk) - Non-interest expense increased by **$4.2 million** (**15.9%**) to **$30.7 million**, driven by higher operating expenses, salaries, real estate owned expenses, and a **$451,000** goodwill impairment charge[307](index=307&type=chunk) Risk Management - The company's most prominent risks are credit risk, interest rate risk, and market risk. Credit risk management focuses on conservatism, knowledge of local communities, and active monitoring[319](index=319&type=chunk)[320](index=320&type=chunk) Non-Performing Assets (as of Dec 31) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Non-performing loans** | $0 | $0 | | **Real estate owned** | $1.5 million | $2.0 million | | **Total non-performing assets** | $1.5 million | $2.0 million | | **NPA / Total Assets** | 0.10% | 0.16% | - The allowance for loan losses increased slightly to **$5.5 million** at Dec 31, 2022, from **$5.2 million** at Dec 31, 2021. The allowance as a percentage of total loans decreased to **0.45%** from **0.54%**[344](index=344&type=chunk)[345](index=345&type=chunk) Interest Rate Sensitivity Analysis (as of Dec 31, 2022) | Change in Interest Rates | Change in Net Interest Income (12-month) | Change in Net Portfolio Value | | :--- | :--- | :--- | | +200 bps | +19.92% | +5.00% | | +100 bps | +9.98% | +3.00% | | -100 bps | -10.75% | -3.91% | [Quantitative and Qualitative Disclosures About Market Risk](index=100&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the information provided under "Item 7: Management's Discussion and Analysis of Results of Operations and Financial Condition" - Information required by this item is incorporated by reference from Item 7[380](index=380&type=chunk) [Financial Statements and Supplementary Data](index=102&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements and supplementary data, which begin on page F-1 of the report - The required financial statements are included beginning on page F-1 of the report[381](index=381&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=103&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[383](index=383&type=chunk) [Controls and Procedures](index=103&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of December 31, 2022. Management also assessed internal control over financial reporting using the COSO framework and concluded it was effective. There were no material changes to internal controls during the fourth quarter of 2022 - Management concluded that disclosure controls and procedures were effective as of the end of the period[384](index=384&type=chunk) - Based on an assessment using the COSO framework, management believes the company's internal control over financial reporting was effective as of December 31, 2022[387](index=387&type=chunk) [Other Information](index=103&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[389](index=389&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=103&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) Not applicable. The company has no disclosures regarding foreign jurisdictions that prevent inspections - None[390](index=390&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=105&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The information required for this item, including details on directors, executive officers, and corporate governance, is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders - Information is incorporated by reference from the Proxy Statement[393](index=393&type=chunk) [Executive Compensation](index=105&type=section&id=Item%2011.%20Executive%20Compensation) The information required for this item regarding executive compensation is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders - Information is incorporated by reference from the Proxy Statement[396](index=396&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=105&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) The information required for this item regarding security ownership is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders - Information is incorporated by reference from the Proxy Statement[397](index=397&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=105&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The information required for this item regarding related party transactions and director independence is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders - Information is incorporated by reference from the Proxy Statement[398](index=398&type=chunk) [Principal Accountant Fees and Services](index=105&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) The information required for this item regarding principal accountant fees and services is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders - Information is incorporated by reference from the Proxy Statement[399](index=399&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=107&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the exhibits filed as part of the Form 10-K, including articles of incorporation, bylaws, employment agreements, benefit plans, and various certifications. It notes that financial statements are incorporated by reference from Item 8 and all financial statement schedules are omitted as they are not required or applicable - This item lists all exhibits filed with the Form 10-K, including corporate documents, material contracts, and certifications[402](index=402&type=chunk)[403](index=403&type=chunk) [Form 10-K Summary](index=109&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not applicable[404](index=404&type=chunk) Financial Statements and Notes [Consolidated Statements of Financial Condition](index=112&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets grew to **$1.42 billion** in 2022, driven by increased net loans, with liabilities and equity also rising Consolidated Balance Sheet Highlights (as of Dec 31) | Account | 2022 ($M) | 2021 ($M) | | :--- | :--- | :--- | | **Total Assets** | **$1,425.0** | **$1,225.1** | | Cash and cash equivalents | $95.3 | $152.3 | | Net loans | $1,212.2 | $968.1 | | **Total Liabilities** | **$1,163.0** | **$973.7** | | Total deposits | $1,122.0 | $927.2 | | Federal Home Loan Bank advances | $21.0 | $28.0 | | **Total Stockholders' Equity** | **$262.0** | **$251.4** | [Consolidated Statements of Income](index=114&type=section&id=Consolidated%20Statements%20of%20Income) Net income significantly increased to **$24.8 million** in 2022, driven by higher net interest income and lower loan loss provisions Consolidated Income Statement Highlights (Year Ended Dec 31) | Account | 2022 ($M) | 2021 ($M) | | :--- | :--- | :--- | | Net Interest Income | $63.9 | $43.3 | | Provision for loan loss | $0.4 | $3.6 | | Non-Interest Income | $1.7 | $2.4 | | Non-Interest Expenses | $30.7 | $26.5 | | **Net Income** | **$24.8** | **$11.9** | | **EPS - Basic** | **$1.61** | **$0.75** | [Notes to Consolidated Financial Statements](index=119&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, allowance for loan losses, regulatory capital, CECL adoption, well-capitalized status, and off-balance-sheet commitments - **Allowance for Loan Losses:** The allowance is based on past experience, portfolio risks, collateral values, and economic conditions. The methodology uses a general reserve, and if an impairment is identified, the impaired portion is charged off immediately[450](index=450&type=chunk)[451](index=451&type=chunk)[456](index=456&type=chunk) - **Regulatory Capital:** As of December 31, 2022, the Bank was categorized as well-capitalized, with a Total capital to risk-weighted assets ratio of **13.66%** (minimum required is **8.00%**) and a Tier 1 leverage ratio of **16.50%** (minimum required is **4.00%**)[504](index=504&type=chunk)[507](index=507&type=chunk) - **Off-Balance Sheet Risk:** The company had significant off-balance-sheet commitments at December 31, 2022, including **$637.4 million** in undisbursed construction loans and **$133.8 million** in unfunded commercial and industrial lines of credit[510](index=510&type=chunk) - **Recent Accounting Pronouncements:** The company adopted the Current Expected Credit Losses (CECL) model effective January 1, 2023, which replaces the incurred loss model with an expected loss model[603](index=603&type=chunk)[604](index=604&type=chunk)

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 June 30, 2022 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 86-317 ...

Part I - Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for NorthEast Community Bancorp, Inc. as of March 31, 2022, and for the three months then ended, including statements of financial condition, income, comprehensive income, changes in stockholders' equity, and cash flows, along with accompanying notes [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to $1.28 billion as of March 31, 2022, from $1.23 billion at December 31, 2021, driven primarily by growth in net loans and cash equivalents, with total liabilities also growing mainly due to increased deposits, and total stockholders' equity seeing a modest increase Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | March 31, 2022 (In thousands) | December 31, 2021 (In thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,281,359** | **$1,225,070** | | Total cash and cash equivalents | $174,684 | $152,269 | | Net loans | $1,002,224 | $968,093 | | **Total Liabilities** | **$1,026,986** | **$973,688** | | Total deposits | $991,938 | $927,164 | | Federal Home Loan Bank advances | $21,000 | $28,000 | | **Total Stockholders' Equity** | **$254,373** | **$251,382** | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2022, net income increased to $3.6 million from $3.2 million in the prior-year period, driven by a 15.2% increase in net interest income to $11.9 million, with earnings per share (EPS) rising to $0.23 from $0.20 year-over-year Consolidated Income Statement Highlights (Unaudited) | Income Statement Item | Three Months Ended Mar 31, 2022 (In thousands) | Three Months Ended Mar 31, 2021 (In thousands) | | :--- | :--- | :--- | | Net Interest Income | $11,925 | $10,355 | | Provision for loan loss | $0 | $17 | | Total Non-Interest Income | $58 | $443 | | Total Non-Interest Expenses | $7,220 | $6,554 | | **Net Income** | **$3,645** | **$3,245** | | **EPS (Basic and Diluted)** | **$0.23** | **$0.20** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2022, cash and cash equivalents increased by $22.4 million, primarily due to net cash provided by financing activities of $57.2 million (driven by deposit growth), which offset net cash used in investing activities of $35.6 million (mainly from loan portfolio growth) Consolidated Cash Flow Highlights (Unaudited) | Cash Flow Item | Three Months Ended Mar 31, 2022 (In thousands) | Three Months Ended Mar 31, 2021 (In thousands) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $828 | $4,598 | | Net Cash Used in Investing Activities | ($35,591) | ($11,293) | | Net Cash Provided by (Used in) Financing Activities | $57,178 | ($6,630) | | **Net Increase (Decrease) in Cash** | **$22,415** | **($13,325)** | | Cash and Cash Equivalents – Ending | $174,684 | $55,866 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies, regulatory capital, financial instruments, and other key aspects of the financial statements, confirming the Bank remains 'well capitalized' under regulatory standards, with a loan portfolio heavily concentrated in construction loans that grew during the quarter, and the company has not yet adopted the CECL accounting standard - The Bank's principal business is originating construction loans, which comprised the largest portion of its loan portfolio at **$736.7 million** as of March 31, 2022[28](index=28&type=chunk)[59](index=59&type=chunk) Bank Regulatory Capital Ratios (as of March 31, 2022) | Capital Ratio | Actual Ratio | Minimum for Adequacy | Minimum to be Well-Capitalized | | :--- | :--- | :--- | :--- | | Total capital (to risk-weighted assets) | 15.03% | ≥8.00% | ≥10.00% | | Tier 1 capital (to risk-weighted assets) | 14.64% | ≥6.00% | ≥8.00% | | Common equity tier 1 capital | 14.64% | ≥4.50% | ≥6.50% | | Core (Tier 1) capital (to adjusted total assets) | 16.03% | ≥4.00% | ≥5.00% | - The company has elected to defer the adoption of the Current Expected Credit Loss (CECL) model (ASU 2016-13) until January 1, 2023, as permitted by the CARES Act[159](index=159&type=chunk) - As of March 31, 2022, the company had no loans in deferral status under the CARES Act, down from a peak of **196 loans** totaling **$190.9 million**[82](index=82&type=chunk)[148](index=148&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q1 2022, highlighting a 4.6% increase in total assets to $1.3 billion, driven by a $34.1 million growth in net loans, with net income rising to $3.6 million from $3.2 million year-over-year primarily due to higher net interest income, and asset quality remaining strong with no non-performing loans, and liquidity deemed adequate [Balance Sheet Analysis](index=36&type=section&id=Balance%20Sheet%20Analysis) Total assets grew by $56.3 million (4.6%) to $1.3 billion at March 31, 2022, from year-end 2021, primarily funded by a $64.8 million (7.0%) rise in total deposits, which supported a $34.1 million (3.5%) expansion in the net loan portfolio, mainly in construction loans, while FHLB advances were reduced by $7.0 million - Total assets increased by **$56.3 million**, or **4.6%**, to **$1.3 billion** at March 31, 2022[162](index=162&type=chunk) - Net loans increased by **$34.1 million**, or **3.5%**, primarily due to **$121.8 million** in loan originations, of which **$112.8 million** were construction loans[165](index=165&type=chunk) - Total deposits increased by **$64.8 million**, or **7.0%**, led by a **$50.4 million** increase in non-interest bearing demand deposits[170](index=170&type=chunk)[172](index=172&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Net income for Q1 2022 was $3.6 million, up from $3.2 million in Q1 2021, with net interest income growing 15.2% to $11.9 million driven by a larger average balance of interest-earning assets, though the net interest margin compressed by 51 basis points to 4.08%, while non-interest income fell sharply due to an unrealized loss on equity securities, and non-interest expense increased by 10.2% due to higher operating and personnel costs - Net interest income increased by **$1.5 million** (**15.2%**) year-over-year, due to a **$268.0 million** increase in the average balance of interest-earning assets[177](index=177&type=chunk)[179](index=179&type=chunk) - Net interest margin decreased by **51 basis points** to **4.08%** for Q1 2022 from **4.59%** in Q1 2021[182](index=182&type=chunk) - The company recorded no provision for loan losses in Q1 2022, compared to a **$17,000** provision in Q1 2021[183](index=183&type=chunk) - Non-interest income decreased to **$58,000** from **$443,000**, primarily due to a **$634,000** unrealized loss on equity securities in Q1 2022[186](index=186&type=chunk) [Asset Quality](index=41&type=section&id=Asset%20Quality) Asset quality remained strong as of March 31, 2022, with the company reporting no non-performing loans, consistent with the end of 2021, and total non-performing assets stable at $2.0 million, consisting entirely of one real estate owned (REO) property, while the allowance for loan losses increased slightly to $5.3 million, representing 0.53% of total loans Non-Performing Assets | Asset Category | March 31, 2022 (In thousands) | December 31, 2021 (In thousands) | | :--- | :--- | :--- | | Total non-accrual loans | $0 | $0 | | Real estate owned | $1,996 | $1,996 | | **Total non-performing assets** | **$1,996** | **$1,996** | | Ratio of non-performing assets to total assets | 0.16% | 0.16% | - The allowance for loan losses was **$5.3 million**, or **0.53%** of total loans, at March 31, 2022[208](index=208&type=chunk)[209](index=209&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity through deposits, loan repayments, and earnings, with an available borrowing limit of $30.5 million from the FHLB of New York and $8.0 million from ACBB as of March 31, 2022, and significant unfunded commitments including $435.7 million for construction loans and $263.8 million for loan originations - The company's primary sources of liquidity are deposits, loan prepayments, and funds from operations[215](index=215&type=chunk) - At March 31, 2022, the company had available borrowing capacity of **$30.5 million** from the FHLB and **$8.0 million** from ACBB[218](index=218&type=chunk)[219](index=219&type=chunk) - Unfunded commitments included **$435.7 million** for construction loans and **$263.8 million** for new loan originations[220](index=220&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk by analyzing its impact on both short-term net interest income and the long-term economic value of equity, with its balance sheet positioned to benefit from rising interest rates as of March 31, 2022, projecting a 16.41% increase in net interest income over one year from a 100 basis point rate increase, while a 100 basis point decrease would lower it by 8.59% Interest Rate Sensitivity Analysis (as of March 31, 2022) | Change in Interest Rates (Basis Points) | % Change in Net Interest Income (12-Month) | % Change in Net Portfolio Value | | :--- | :--- | :--- | | +200 | 32.88% | 7.02% | | +100 | 16.41% | 3.72% | | 0 | — | — | | -100 | (8.59)% | (4.19)% | [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of the end of the period covered by this report, with no material changes made to internal controls over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[238](index=238&type=chunk) - There were no changes in internal controls over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[240](index=240&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions in the normal course of business, but management does not expect these to have a material adverse impact on its financial condition - The company states that ongoing legal actions are not expected to have a material adverse impact on its financial condition[242](index=242&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021 - As of March 31, 2022, the company's risk factors have not changed materially from those disclosed in its 2021 Form 10-K[243](index=243&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=46&type=section&id=Other%20Items) This section confirms that there were no unregistered sales of equity securities, defaults upon senior securities, mine safety disclosures, or other material information to report for the period, and refers to the Exhibit Index for a list of filed exhibits - Items 2, 3, 4, and 5 are noted as 'Not applicable' or 'None'[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 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) Marylan ...

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 September 30, 2021 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 8 ...

Part I Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The financial statements detail the company's financial position and performance, highlighting increased assets and net income for the periods ended June 30, 2021 [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets grew 11.2% to $1.08 billion, primarily from a surge in cash due to stock subscription proceeds, with deposits and equity also rising Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2021 | Dec 31, 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total cash and cash equivalents | $163,835 | $69,191 | +136.8% | | Net loans | $825,214 | $819,733 | +0.7% | | **Total assets** | **$1,076,533** | **$968,221** | **+11.2%** | | Total deposits | $798,804 | $771,706 | +3.5% | | Stock Subscription | $74,933 | $0 | N/A | | **Total liabilities** | **$915,686** | **$814,396** | **+12.4%** | | **Total stockholders' equity** | **$160,847** | **$153,825** | **+4.6%** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased by 50.2% to $3.7 million for Q2 2021, driven by higher net interest income and a reduced provision for loan losses Income Statement Summary (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | 6 Months 2021 | 6 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $10,378 | $9,508 | $20,733 | $18,961 | | Provision for loan loss | $0 | $518 | $17 | $532 | | **Net Income** | **$3,721** | **$2,478** | **$6,966** | **$5,734** | | **EPS (Diluted)** | **$0.31** | **$0.21** | **$0.58** | **$0.48** | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q2 2021 was $3.715 million, slightly below net income due to a minor other comprehensive loss Comprehensive Income (in thousands) | Period | Net Income | Other Comprehensive (Loss)/Income | Total Comprehensive Income | | :--- | :--- | :--- | :--- | | **Q2 2021** | $3,721 | $(6) | $3,715 | | **Q2 2020** | $2,478 | $10 | $2,488 | | **6 Months 2021** | $6,966 | $(3) | $6,963 | | **6 Months 2020** | $5,734 | $20 | $5,754 | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased to $160.8 million, primarily driven by $7.0 million in net income for the six-month period - For the six months ended June 30, 2021, stockholders' equity increased by **$7.0 million**, primarily due to net income of **$6.966 million**[17](index=17&type=chunk) - A cash dividend of **$0.03 per share** was declared during the first six months of 2021, totaling **$144,000**[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $94.6 million, primarily from $101.5 million in financing activities, including a stock subscription Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $7,179 | $7,547 | | Net Cash Used in Investing Activities | $(14,025) | $(55,050) | | Net Cash Provided by (Used in) Financing Activities | $101,490 | $(7,745) | | **Net Increase (Decrease) in Cash** | **$94,644** | **$(55,248)** | - Financing activities in the first half of 2021 were dominated by **$74.9 million** in proceeds from a stock subscription related to the company's second-step conversion[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes disclose the July 2021 second-step conversion, the Bank's 'well capitalized' status, and a loan portfolio concentrated in construction loans - The company completed its second-step conversion on July 12, 2021, selling 9,784,077 shares of common stock at $10.00 per share for gross proceeds of **$97.8 million**[22](index=22&type=chunk) - The Bank's principal business is originating construction loans, commercial and industrial loans, and multifamily/mixed-use residential real estate loans[25](index=25&type=chunk) - As of June 30, 2021, the Bank met all capital adequacy requirements and was categorized as **'well capitalized'** by the FDIC[37](index=37&type=chunk)[39](index=39&type=chunk) Loan Portfolio Composition (in thousands) | Loan Type | June 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Construction | $571,963 | $545,788 | | Residential real estate | $122,547 | $127,184 | | Commercial and industrial | $79,973 | $90,577 | | Non-residential real estate | $55,144 | $60,665 | | **Total Loans** | **$829,970** | **$824,708** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting net interest income growth, balance sheet changes, stable asset quality, and strong liquidity [COVID-19 Pandemic Impact](index=34&type=section&id=COVID-19%20Pandemic%20Impact) The company monitors COVID-19 impact, with payment deferrals significantly reduced from $190.8 million to $9.5 million by June 30, 2021 - The company granted payment deferrals on 195 loans totaling **$190.8 million** due to the COVID-19 pandemic[146](index=146&type=chunk) - As of June 30, 2021, the number of loans in deferral status had significantly decreased to two loans with a total balance of **$9.5 million**[146](index=146&type=chunk) [Balance Sheet Analysis](index=37&type=section&id=Balance%20Sheet%20Analysis) Total assets grew by $108.3 million (11.2%), primarily due to a $94.6 million cash increase from the stock offering and deposit growth - Total assets increased by **$108.3 million (11.2%)** to **$1.076 billion** at June 30, 2021[163](index=163&type=chunk) - The primary driver of asset growth was a **$94.6 million** increase in cash and cash equivalents, attributed to a **$74.9 million** increase in stock subscriptions and a **$27.1 million** increase in deposits[164](index=164&type=chunk) - Stockholders' equity increased by **$7.0 million (4.6%)** to **$160.8 million**, mainly due to net income of **$7.0 million** for the period[173](index=173&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Net income for Q2 2021 was $3.7 million, driven by increased net interest income and a reduced provision for loan losses Net Interest Income and Margin Comparison | Period | Net Interest Income ($M) | Net Interest Margin (%) | | :--- | :--- | :--- | | **Q2 2021** | $10.4 | 4.49% | | **Q2 2020** | $9.5 | 4.31% | | **6 Months 2021** | $20.7 | 4.54% | | **6 Months 2020** | $19.0 | 4.37% | - The increase in net interest income was primarily due to a **53.8% decrease** in interest expense for Q2 2021, as the cost of interest-bearing liabilities fell by **89 basis points** year-over-year[178](index=178&type=chunk) - The provision for loan losses was **$0** for Q2 2021 and **$17,000** for the first six months of 2021, compared to $518,000 and $532,000 for the respective periods in 2020[181](index=181&type=chunk)[201](index=201&type=chunk) [Asset Quality](index=45&type=section&id=Asset%20Quality) Asset quality remained stable, with total non-performing assets at $5.6 million and non-performing loans at 0.43% of total loans Non-Performing Assets (in thousands) | Metric | June 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total non-accrual loans | $3,593 | $3,572 | | Real estate owned | $1,996 | $1,996 | | **Total non-performing assets** | **$5,589** | **$5,568** | | **Ratio of non-performing loans to total loans** | **0.43%** | **0.43%** | - The allowance for loan losses was **$5.1 million** at June 30, 2021, representing **141.78%** of non-performing loans[228](index=228&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity through deposits and earnings, with significant loan originations and FHLB borrowing capacity - Primary sources of liquidity are deposits, loan/security repayments, and earnings. Loan originations totaled **$285.1 million** for the six months ended June 30, 2021[232](index=232&type=chunk)[234](index=234&type=chunk) - The company had an available borrowing limit of **$41.2 million** from the Federal Home Loan Bank of New York as of June 30, 2021[235](index=235&type=chunk) - At June 30, 2021, the company had unfunded commitments on construction loans of **$349.4 million** and outstanding commitments to originate loans of **$315.7 million**[238](index=238&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk, demonstrating an asset-sensitive position where a 100 basis point rate increase boosts net interest income by 15.58% Interest Rate Sensitivity Analysis (as of June 30, 2021) | Change in Interest Rates (Basis Points) | Twelve Month Net Interest Income (% Change) | Net Portfolio Value (% Change) | | :--- | :--- | :--- | | +200 | 31.32% | 12.15% | | +100 | 15.58% | 6.24% | | 0 | — | — | | -100 | (4.65)% | (2.72)% | - The company's interest rate risk profile indicates that net interest income would **increase** in a rising rate environment and **decrease** in a falling rate environment, demonstrating an **asset-sensitive position**[255](index=255&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[258](index=258&type=chunk) - **No changes** in internal controls over financial reporting occurred during the quarter ended June 30, 2021, that have materially affected, or are reasonably likely to materially affect, these controls[259](index=259&type=chunk) Part II Other Information [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions in the normal course of business, not expected to have a material adverse impact - The company is involved in various legal actions arising in the normal course of business, which are **not expected to have a material adverse impact**[262](index=262&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the prospectus filed on May 24, 2021 - As of June 30, 2021, the company's risk factors have **not changed materially** from those disclosed in the prospectus filed on May 24, 2021[263](index=263&type=chunk) [Other Items (Items 2, 3, 4, 5)](index=51&type=section&id=Other%20Items%20(Items%202,%203,%204,%205)) This section reports several items, such as Unregistered Sales of Equity Securities, as not applicable or with no information to disclose - Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), and Item 4 (Mine Safety Disclosures) are all marked as **'Not applicable'**[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) - Item 5 (Other Information) is marked as **'None'**[267](index=267&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section references the Exhibit Index, listing all documents filed as part of the Form 10-Q report, including certifications and XBRL data - The report includes **standard corporate governance documents**, **CEO/CFO certifications** under Sarbanes-Oxley, and financial data formatted in **XBRL**[271](index=271&type=chunk)

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, 2021 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: 333-253982 NorthEast Community Bancorp, Inc. (Exact name of registrant as specified in its charter) Maryland 86-3 ...