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NorthEast munity Bancorp(NECB) - 2025 Q1 - Quarterly Results

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