NECB

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.