NorthEast munity Bancorp(NECB) - 2025 Q4 - Annual Results

Financial Performance - Net income for Q4 2025 was $10.8 million, or $0.81 per basic share, compared to $10.2 million, or $0.78 per basic share in Q4 2024, representing a 5.9% increase in net income year-over-year [2]. - For the full year 2025, net income was $44.4 million, or $3.35 per basic share, down from $47.1 million, or $3.58 per basic share in 2024, indicating a 5.7% decrease in annual net income [2]. - Basic earnings per share increased to $0.81 in Q4 2025 from $0.78 in Q4 2024, while diluted earnings per share rose to $0.79 from $0.75 [67]. - The net income for the year ended December 31, 2025, was $44,413,000, down from $47,074,000 in 2024, a decrease of approximately 5.6% [65]. Asset and Loan Growth - Total assets increased by $53.9 million, or 2.7%, to $2.1 billion at December 31, 2025, driven by a $47.8 million increase in net loans [4]. - Loans, net of the allowance for credit losses, rose by $47.8 million, or 2.6%, to $1.9 billion, with significant growth in multi-family loans, which increased by $99.9 million [9]. - Total assets increased to $2,063,508,000 as of December 31, 2025, compared to $2,009,581,000 in 2024, reflecting a growth of approximately 2.7% [63]. - Net loans reached $1,855,603,000, up from $1,807,768,000 in the previous year, indicating an increase of about 2.6% [63]. - Total loans increased to $1,860,334 in 2025 from $1,812,598 in 2024, with a gross loan portfolio of $1,860,066 [67]. - The loan portfolio composition showed a significant increase in multi-family loans to $306,508 in 2025 from $206,606 in 2024 [67]. Equity and Capital - Total stockholders' equity increased by $33.4 million, or 10.5%, to $351.7 million, reflecting strong performance and retained earnings [23]. - The Company's total stockholders' equity to assets ratio was 17.04% as of December 31, 2025 [55]. - The total capital to risk-weighted assets ratio increased to 15.62% in 2025 from 13.92% in 2024, indicating stronger capital adequacy [67]. Income and Expenses - Net interest income for Q4 2025 was $25.5 million, a slight increase of $160,000, or 0.6%, compared to Q4 2024 [24]. - Total interest and dividend income decreased by $5.9 million, or 3.7%, to $154.1 million for the year ended December 31, 2025, from $160.0 million for the year ended December 31, 2024 [38]. - Net interest income was $100.7 million for the year ended December 31, 2025, a decrease of $2.1 million, or 2.0%, from $102.8 million for the year ended December 31, 2024 [37]. - Non-interest income for the quarter ended December 31, 2025 was $987,000, an increase of $838,000, or 562.4%, from $149,000 for the same quarter in 2024 [32]. - Non-interest income increased significantly to $4,094,000 in 2025, compared to $2,783,000 in 2024, marking an increase of approximately 47.3% [65]. - Non-interest expense increased by $3.6 million, or 9.2%, to $42.7 million for the year ended December 31, 2025, from $39.1 million for the year ended December 31, 2024 [49]. - Total non-interest expenses rose to $42,668,000 in 2025, up from $39,062,000 in 2024, reflecting an increase of about 9.0% [65]. Credit Quality - The allowance for credit losses related to loans decreased to $4.7 million, or 0.25% of total loans, from $4.8 million, or 0.27% in the previous year [11]. - The allowance for credit losses related to loans was $4.7 million, or 0.25% of total loans, as of December 31, 2025, compared to $4.8 million, or 0.27% of total loans, as of December 31, 2024 [53]. - The Company recorded a credit loss expense reduction of $334,000 for the quarter ended December 31, 2025, compared to a credit loss expense of $1.0 million for the same quarter in 2024 [28]. - The Company had no non-performing assets at December 31, 2025, compared to $5.1 million at December 31, 2024 [51]. - Non-performing assets decreased to $0 in 2025 from $5,120 in 2024, reflecting improved asset quality [67]. Efficiency and Management - The efficiency ratio improved to 42.31% for Q4 2025, down from 43.0% in Q4 2024, indicating better cost management [6]. - The efficiency ratio worsened to 42.31% in Q4 2025 from 38.99% in Q4 2024, indicating increased operational costs relative to income [67]. - Return on average total assets improved to 2.11% in Q4 2025 from 2.04% in Q4 2024, while return on average shareholders' equity decreased to 12.32% from 12.90% [67]. - Average interest-earning assets increased to $1,965,215 in Q4 2025 from $1,912,471 in Q4 2024, contributing to interest income generation [69]. - The average interest-earning assets to interest-bearing liabilities ratio improved to 139.48% in Q4 2025 from 136.79% in Q4 2024, indicating better asset management [69]. Stock Repurchase - The Company commenced its third stock repurchase program on December 10, 2025, with plans to repurchase 1,400,435 shares, or 10%, of the Company's issued and outstanding common stock [59].