NECB Overview

Earnings Decline: NorthEast Community Bancorp Inc. reported a decrease in earnings for the third quarter, with profits falling to $11.86 million, or $0.87 per share, compared to $12.68 million, or $0.95 per share, from the previous year.

Revenue Decrease: The company's revenue also saw a decline of 1.3%, dropping to $25.93 million from $26.28 million in the same quarter last year.

Financial Performance: NorthEast Community Bancorp reported a net income of $11.9 million for Q3 2025, a decrease from $12.7 million in Q3 2024, with year-to-date net income of $33.6 million compared to $36.9 million in the previous year.

Loan Portfolio and Asset Quality: The company experienced strong loan demand, particularly in construction and multi-family lending, with no non-performing loans reported as of September 30, 2025, and a low non-performing assets ratio of 0.03%.

Capital and Equity Growth: Total stockholders' equity increased by 8.1% to $344 million, with a strong capital position reflected in a 16.73% equity-to-assets ratio, maintaining well-capitalized status under regulatory requirements.

Interest Income Trends: Net interest income decreased slightly to $25.9 million in Q3 2025, attributed to lower interest income despite a rise in average interest-earning assets, while the net interest margin also declined to 5.38%.

Special Dividend Announcement: NorthEast Community Bancorp, Inc. declared a special cash dividend of $0.20 per share on its common stock, to be paid on or about October 6, 2025.

Record Date for Shareholders: The dividend will be distributed to shareholders who are on record as of the close of business on September 8, 2025.

Commitment to Shareholder Value: Kenneth A. Martinek, the Chairman and CEO, emphasized that paying dividends reflects the company's long-term commitment to enhancing shareholder value.

Cautionary Note on Forward-Looking Statements: The press release includes forward-looking statements that may differ from actual results due to various risks and uncertainties affecting the company’s performance.

Earnings Performance: Northeast Community Bancorp (NECB) reported quarterly earnings of $0.82 per share, exceeding expectations but down from $0.97 a year ago; revenues of $25.93 million fell short of estimates, marking a mixed performance over the last four quarters.

Market Outlook: Despite underperforming the market with a 6% decline this year, NECB holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market; future stock movements will depend on earnings estimate revisions and industry outlook.

Financial Performance Overview: NorthEast Community Bancorp, Inc. reported a decline in net income for Q2 2025 to $11.2 million from $12.8 million in Q2 2024, with total assets decreasing to approximately $1.97 billion and net loans slightly down to $1.79 billion. However, stockholders' equity rose to $336.7 million, reflecting strong loan performance despite economic uncertainties.

Operational Highlights: The company maintained robust asset quality with no non-performing loans and an allowance for credit losses of $4.7 million. Non-interest income increased significantly by 62.9% in the first half of 2025, driven by unrealized gains on equity securities and higher loan fees, while non-interest expenses also rose due to increased salaries and operational costs.