Financial Performance - Net income for the three months ended September 30, 2024, was $12.7 million, a 7.1% increase from $11.8 million for the same period in 2023[151]. - Net income for the nine months ended September 30, 2024, was $36.9 million, a 7.9% increase from $34.2 million for the same period in 2023, attributed to higher net interest income and reduced credit loss expenses[180]. - Non-interest income increased by $1.1 million, or 510.4%, to $1.3 million for the three months ended September 30, 2024, driven by unrealized gains on equity securities and other loan fees[162]. - Non-interest income increased by $277,000, or 11.8%, to $2.6 million for the nine months ended September 30, 2024, compared to $2.4 million in 2023[191]. Asset and Deposit Growth - Total assets increased by $203.8 million, or 11.6%, to $2.0 billion as of September 30, 2024, from $1.8 billion at December 31, 2023[134]. - Total deposits increased by $228.0 million, or 16.3%, to $1.6 billion at September 30, 2024, from $1.4 billion at December 31, 2023[145]. - Total interest-earning assets increased to $1,852,410 million in September 2024, up from $1,569,785 million in September 2023, reflecting a growth of 18%[210]. - Total assets reached $1,937,809 million in September 2024, up from $1,650,514 million in September 2023, marking an increase of 17.4%[210]. Loan and Credit Quality - Loans, net of the allowance for credit losses, increased by $173.6 million, or 11.0%, to $1.8 billion at September 30, 2024, from $1.6 billion at December 31, 2023[138]. - The allowance for credit losses related to loans decreased to $4.8 million as of September 30, 2024, from $5.1 million as of December 31, 2023[140]. - Total loans outstanding increased from $1.586 billion at December 31, 2023 to $1.760 billion at September 30, 2024, an increase of approximately 10.9%[221]. - The total net charge-offs decreased from $313,000 in the nine months ended September 30, 2023 to $115,000 in the same period of 2024, a reduction of approximately 63.3%[221]. Interest Income and Expense - Net interest income rose by $1.2 million, or 4.6%, to $26.3 million for the three months ended September 30, 2024, compared to $25.1 million for the same period in 2023[152]. - Net interest income rose by $5.5 million, or 7.7%, to $77.5 million for the nine months ended September 30, 2024, due to increased interest income from loans and interest-bearing deposits[181]. - Total interest and dividend income increased by $6.0 million, or 17.2%, to $41.2 million for the three months ended September 30, 2024, from $35.1 million for the same period in 2023[155]. - Interest expense increased by $4.9 million, or 48.9%, to $14.9 million for the three months ended September 30, 2024, from $10.0 million for the same period in 2023[156]. Non-Interest Expense - Non-interest expense rose by $1.0 million, or 11.7%, to $10.0 million for the three months ended September 30, 2024, driven by higher real estate owned expenses and salaries[166]. - Non-interest expense increased by $3.2 million, or 12.1%, to $29.1 million for the nine months ended September 30, 2024, from $26.0 million in 2023[196]. - Salaries and employee benefits increased by $435,000, or 9.3%, to $5.1 million for the three months ended September 30, 2024, primarily due to increased compensation to retain key personnel[168]. - Salaries and employee benefits rose by $1.6 million, or 11.8%, to $15.7 million for the nine months ended September 30, 2024, driven by increased compensation to retain key personnel[197]. Interest Rate Risk Management - The company has established an interest rate floor of zero percent for measuring interest rate risk[250]. - The results as of September 30, 2024, indicate that the company is adequately positioned with acceptable net interest income and economic value at risk[251]. - All interest rate risk results continue to remain within the company's policy guidelines[251]. - The simulation reports are discussed quarterly to monitor and control interest rate risk exposure[244].
NorthEast munity Bancorp(NECB) - 2024 Q3 - Quarterly Report