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

Core Insights - NorthEast Community Bancorp, Inc. reported a net income of $11.9 million for Q3 2025, a decrease from $12.7 million in Q3 2024, and a net income of $33.6 million for the nine months ended September 30, 2025, down from $36.9 million for the same period in 2024 [1][2][3] Financial Performance - Net interest income for Q3 2025 was $25.9 million, a slight decrease from $26.3 million in Q3 2024, primarily due to a decrease in interest income [23][36] - Total interest and dividend income decreased by $1.9 million, or 4.6%, to $39.3 million for Q3 2025 compared to $41.2 million in Q3 2024 [24] - Non-interest income for Q3 2025 was $1.0 million, down from $1.3 million in Q3 2024, mainly due to a decrease in unrealized gains on equity securities [30][31] Balance Sheet Highlights - Total assets increased by $46.7 million, or 2.3%, to $2.1 billion as of September 30, 2025, driven by an increase in net loans [3] - Cash and cash equivalents decreased by $13.9 million, or 17.8%, to $64.3 million, attributed to funding an increase in net loans [4] - Total deposits decreased by $155.0 million, or 9.3%, to $1.5 billion, primarily due to a reduction in certificates of deposit [16][17] Loan Portfolio - Net loans increased by $61.2 million, or 3.4%, to $1.9 billion as of September 30, 2025, with significant growth in multi-family loans [8] - The company originated loans totaling $714.3 million during the nine months ended September 30, 2025, with a focus on construction loans [9] Asset Quality - Non-performing assets decreased significantly to $545,000 as of September 30, 2025, from $5.1 million at December 31, 2024, reflecting improved asset quality [49][50] - The allowance for credit losses related to loans was $4.7 million, or 0.25% of total loans, as of September 30, 2025, slightly down from $4.8 million at the end of 2024 [51] Capital Position - Total stockholders' equity increased by $25.7 million, or 8.1%, to $344.0 million as of September 30, 2025, supported by net income and stock repurchase programs [22][55] - The company's capital ratios remain strong, with a total stockholders' equity to assets ratio of 16.73% and a tier 1 leverage capital ratio of 16.10% [53][54]