NorthEast Community Bancorp, Inc. Reports Results for the Three and Six Months Ended June 30, 2025

Core Points - NorthEast Community Bancorp, Inc. reported a net income of $11.2 million for Q2 2025, a decrease from $12.8 million in Q2 2024, and a net income of $21.7 million for the first half of 2025, down from $24.2 million in the same period of 2024 [1][2] Financial Performance - For the three months ended June 30, 2025, net interest income was $25.1 million, down 4.4% from $26.2 million in Q2 2024 [25] - Total interest and dividend income decreased by $2.2 million, or 5.5%, to $38.0 million for Q2 2025 compared to $40.2 million for Q2 2024 [26] - Interest expense decreased by $1.1 million, or 7.5%, to $13.0 million for Q2 2025 from $14.0 million in Q2 2024 [27] - The net interest margin decreased by 44 basis points to 5.35% for Q2 2025 compared to 5.79% for Q2 2024 [28] Balance Sheet Summary - Total assets decreased by $35.7 million, or 1.8%, to $2.0 billion at June 30, 2025, primarily due to decreases in cash and cash equivalents, net loans, and real estate owned [3] - Cash and cash equivalents decreased by $18.9 million, or 24.1%, to $59.4 million at June 30, 2025 [4] - Total deposits decreased by $191.2 million, or 11.5%, to $1.5 billion at June 30, 2025 [17] Loan Portfolio - Loans, net of the allowance for credit losses, decreased by $14.9 million, or 0.8%, to $1.8 billion at June 30, 2025 [7] - The company originated loans totaling $462.7 million during the first half of 2025, primarily in construction and multi-family loans [10] Asset Quality - The allowance for credit losses related to loans decreased to $4.7 million, or 0.26% of total loans, as of June 30, 2025 [56] - Non-performing assets were $767,000 at June 30, 2025, significantly down from $5.1 million at December 31, 2024 [54][55] Stockholders' Equity - Total stockholders' equity increased by $18.3 million, or 5.8%, to $336.7 million at June 30, 2025 [24] - The company's total stockholders' equity to assets ratio was 17.06% as of June 30, 2025 [58] Non-Interest Income and Expenses - Non-interest income for Q2 2025 was $858,000, an increase of 17.4% from $731,000 in Q2 2024 [33] - Non-interest expense increased by $1.0 million, or 10.6%, to $10.5 million for Q2 2025 compared to $9.5 million for Q2 2024 [36]