Form 8-K
8-K — NorthEast Community Bancorp, Inc./MD/
Accession: 0001104659-26-118368
Filed: 2026-10-23
Period: 2026-10-22
CIK: 0001847398
SIC: 6036 (SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED)
Item: Results of Operations and Financial Condition
Item: Financial Statements and Exhibits
Documents
8-K — tm2628181d1_8k.htm (Primary)
EX-99.1 — EXHIBIT 99.1 (tm2628181d1_ex99-1.htm)
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8-K — FORM 8-K
8-K (Primary)
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2026-10-22
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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported): October 22, 2026
NORTHEAST COMMUNITY BANCORP, INC.
(Exact Name of Registrant as Specified in Its
Charter)
Maryland
001-40589
86-3173858
(State or other jurisdiction of
(Commission
(IRS Employer
incorporation or organization)
File Number)
Identification No.)
325 Hamilton Avenue, White Plains, New York 10601
(Address of principal executive offices) (Zip Code)
(914) 684-2500
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
NECB
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934
(17 CFR §240.12b-2).
Emerging growth company x
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On October 22, 2026, NorthEast Community Bancorp, Inc. (the “Company”) issued a press release announcing its financial results
for the three and nine months ended September 30, 2026. A copy of the Company’s press release is attached as Exhibit 99.1 and is
furnished herewith.
The information contained in this Item 2.02 and in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of
the Securities Exchange Act of 1934 (the “Exchange Act”), or incorporated by reference in any filing under the Securities
Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific references in such a filing.
Item 9.01 Financial Statements and Other Exhibits.
(d)
Exhibits
Number
Description
99.1
Press Release dated October 22, 2026
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
NORTHEAST COMMUNITY BANCORP, INC.
Date: October 23, 2026
By:
/s/ Kenneth A. Martinek
Kenneth A. Martinek
Chairman and Chief Executive Officer
EX-99.1 — EXHIBIT 99.1
EX-99.1
Filename: tm2628181d1_ex99-1.htm · Sequence: 2
Exhibit 99.1
NECB Earnings Press Release for 09/30/2026:
NORTHEAST
COMMUNITY BANCORP, INC. REPORTS RESULTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30, 2026
White Plains,
New York, October 22, 2026 – NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent
holding company of NorthEast Community Bank (the “Bank”), reported net income of $10.7 million, or $0.81 per basic share and
$0.79 per diluted share, for the three months ended September 30, 2026 compared to net income of $11.9 million, or $0.90 per basic
share and $0.87 per diluted share, for the three months ended September 30, 2025. In addition, the Company reported net income
of $30.4 million, or $2.31 per basic share and $2.25 per diluted share, for the nine months ended September 30, 2026 compared to
net income of $33.6 million, or $2.54 per basic share and $2.47 per diluted share, for the nine months ended September 30, 2025.
Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer,
stated “As we close out the third quarter of 2026 and begin the fourth quarter, we are pleased to report continuing growth of our
loan portfolio, particularly in our construction loan portfolio.”
“Focusing on high demand, high growth submarkets in the Bronx,
Rockland, Orange, and Sullivan Counties, we continue to grow the portfolio while also providing much needed housing in low- and moderate-income
communities.”
“Demand for construction loans throughout these submarkets continues
to demonstrate robust growth and we look forward to continuing our efforts as a responsible corporate citizen to meet this growing demand
going forward.” Mr. Martinek continued.
“At September 30, 2026, construction loan commitments and
loans-in-process outstanding increased by approximately 18.2% as compared to the third quarter of 2025, with over $763 million in total
unfunded loan commitments outstanding, and representing a 12.2% increase over the amount of such total commitments outstanding at December 31,
2025.”
Highlights for the three months and nine months ended September 30,
2026 are as follows:
· Performance metrics continue to be strong with a return on average total assets ratio of 2.00%, a return on average shareholders’
equity ratio of 11.54%, and an efficiency ratio of 41.50% for the three months ended September 30, 2026. For the nine months ended
September 30, 2026, the Company reported a return on average total assets ratio of 1.97%, a return on average shareholders’
equity ratio of 11.16%, and an efficiency ratio of 42.36%.
· Total assets increased $152.5 million, or 7.4%, to $2.2 billion at September 30, 2026 from $2.1 billion at December 31,
2025, driven by loan portfolio growth of $160.0 million, or 8.6%, to $2.0 billion at September 30, 2026 from $1.9 billion at December 31,
2025. Our allowance for credit losses related to loans totaled $4.7 million, or 0.23% of total loans at September 30, 2026, compared
to $4.7 million, or 0.25% of total loans at December 31, 2025.
· Total stockholders’ equity increased by $19.0 million, or 5.4%, to $370.7 million, or 16.73% of total assets as of September 30,
2026 from $351.7 million, or 17.04% of total assets as of December 31, 2025.
Balance Sheet Summary
Total assets increased $152.5 million, or 7.4%, to $2.2 billion
at September 30, 2026, from $2.1 billion at December 31, 2025. The increase in assets was primarily due to an increase
in net loans of $160.0 million, partially offset by a decrease in cash and cash equivalents of $8.5 million.
Cash and cash equivalents decreased $8.5 million, or 10.5%, to $72.6
million at September 30, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially
funded the increase of $160.0 million in net loans.
Equity securities decreased $341,000, or 1.3%, to $26.2 million at
September 30, 2026 from $26.6 million at December 31, 2025. The decrease in equity securities was attributable to market depreciation
of $1.3 million due to market interest rate volatility during the nine months ended September 30, 2026, partially offset by the purchase
of $1.0 million in equity securities during the nine months ended September 30, 2026.
Securities held-to-maturity increased $359,000, or 2.0%, to $18.7 million
at September 30, 2026 from $18.3 million at December 31, 2025 due to the purchase of $2.0 million in municipal securities, partially
offset by pay-downs of various investment securities and an increase of $9,000 to the allowance for credit losses for held-to-maturity
securities.
Loans, net of the allowance for credit losses, increased $160.0 million,
or 8.6%, to $2.0 billion at September 30, 2026 from $1.9 billion at December 31, 2025. The increase in loans consisted
of an increase of $207.3 million in construction loans, partially offset by decreases of $37.0 million in commercial and industrial loans,
$5.0 million in multi-family loans, $3.3 million in mixed-use loans, $1.6 million in non-residential loans, $104,000 in one-to-four family
loans, and $15,000 in consumer loans.
During the nine months ended September 30, 2026, we originated
loans totaling $966.4 million, which include commitments and funded loans, consisting primarily of $914.8 million in construction loans,
$26.3 million in commercial and industrial loans, $24.0 million in multi-family loans, $675,000 in mixed-use loans, and $500,000 in non-residential
loans. The $914.8 million in construction loans had $393.5 million, or 43.0%, disbursed at loan closing, with the remaining funds to be
disbursed over the terms of the construction loans. These disbursements were offset by normal pay-downs and principal reductions as construction
projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other
financial institutions. The commercial and industrial loans had $19.1 million, or 72.7%, disbursed at loan closing as of September 30,
2026.
The allowance for credit losses related to loans was $4.7 million at
September 30, 2026 and December 31, 2025. Although our total loan portfolio increased $160.0 million, or 8.6%, from December 31,
2025 to September 30, 2026, portfolios carrying higher allowance rates due to longer terms or higher credit risks have decreased.
During the nine months ended September 30, 2026, commercial and industrial loans decreased $37.0 million, or 24.6%, and residential,
multi-family, mixed use and non-residential mortgage loans decreased $10.0 million, or 2.7%. These decreases were mostly offset by an
increase in the construction loan portfolio, which carries a lower allowance rate, during the same period.
The allowance for credit losses for off-balance sheet commitments increased
$284,000, or 32.3%, to $1.2 million at September 30, 2026 from $879,000 at December 31, 2025 due primarily to an increase of
$83.1 million, or 12.2%, in off-balance sheet commitments from December 31, 2025 to September 30, 2026.
The allowance for credit losses for held-to-maturity securities increased
$9,000, or 7.1%, to $135,000 at September 30, 2026 from $126,000 at December 31, 2025 due to an increase in our municipal bond
portfolio.
Premises and
equipment decreased $339,000, or 1.3%, to $25.0 million at September 30, 2026 from $25.4 million at December 31, 2025 primarily
due to the amortization of fixed assets. Property held for investment was $1.3 million at both September 30, 2026 and December 31,
2025.
Federal Home Loan Bank stock increased by $133,000, or 32.4%, to $543,000
at September 30, 2026 from $410,000 at December 31, 2025 primarily due to an increase in our mortgage-related assets.
Bank owned life insurance (“BOLI”) increased $557,000,
or 2.1%, to $27.0 million at September 30, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value.
Accrued interest receivable increased $626,000, or 5.1%, to $12.9 million
at September 30, 2026 from $12.2 million at December 31, 2025 due to an increase in the loan portfolio.
Right of use assets — operating decreased $542,000,
or 11.6%, to $4.1 million at September 30, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation
of the right of use assets.
Other assets increased $603,000, or 5.5%, to $11.6 million at September 30,
2026 from $11.0 million at December 31, 2025 due to an increase of $1.3 million in suspense accounts, partially offset by decreases
of $592,000 in tax assets and $146,000 in prepaid expenses.
Total deposits increased $202.7 million, or 12.5%, to $1.8 billion
at September 30, 2026 from $1.6 billion at December 31, 2025. The increase in deposits was primarily due to increases in
certificates of deposit of $87.8 million, or 9.8%, NOW/money market accounts of $72.8 million, or 24.1%, and non-interest-bearing deposits
of $53.7 million, or 19.8%, partially offset by a decrease in savings account balances of $11.6 million, or 8.2%.
The increase of $87.8 million in certificates of deposit consisted
of increases of $201.8 million, or 54.5%, in brokered certificates of deposit, partially offset by decreases of $63.5 million, or 94.0%,
in non-brokered listing services certificates of deposit and $50.5 million, or 11.3%, in retail certificates of deposit.
The increase in brokered certificates of deposit was due to management’s
strategy to reduce short term borrowings due to the potential for further increases in interest rates. The decrease in non-brokered listing
services certificates of deposit was due to management’s strategy to reduce the cost of funds. The decrease in retail certificates
of deposit was due to a shift in deposits to our retail high yield money market accounts.
Advance payments by borrowers for taxes and insurance increased $523,000,
or 22.2%, to $2.9 million at September 30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real
estate tax payments from borrowers.
Borrowings decreased $70.0 million to no borrowings at September 30,
2026 from $70.0 million at December 31, 2025 due primarily to management’s strategy to reduce interest rate risk with less
reliance on short term borrowings.
Lease liability – operating decreased $499,000, or 10.4%, to
$4.3 million at September 30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.
Accounts payable and accrued expenses increased $858,000, or 5.0%,
to $18.2 million at September 30, 2026 from $17.3 million at December 31, 2025 due primarily to increases in accounts payable
of $674,000, deferred compensation of $424,000, the allowance for credit losses for off-balance sheet commitments of $284,000, and suspense
account – loan closings of $44,000, partially offset by decreases in accrued interest expense of $504,000 and accrued expenses of
$64,000.
Stockholders’
equity increased $19.0 million, or 5.4% to $370.7 million at September 30, 2026, from $351.7 million at December 31,
2025. The increase in stockholders’ equity was due to net income of $30.4 million for the nine months ended September 30,
2026, the amortization expense of $1.6 million relating to restricted stock and stock options granted under the Company’s 2022 Equity
Incentive Plan, an increase of $589,000 in earned employee stock ownership plan shares coupled with a reduction of $391,000 in
unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $42,000 in other comprehensive income. These increases
were offset by dividends declared of $9.3 million and stock repurchases and excise taxes of $4.8 million.
Results of Operations for the Three Months Ended September 30,
2026 and 2025
Net Interest Income
Net interest income was $26.1 million for the three months ended
September 30, 2026, as compared to $25.9 million for the three months ended September 30, 2025. The increase in net interest
income of $154,000, or 0.6%, was primarily due to a decrease in interest expense that exceeded a decrease in interest income caused by
a decrease in the cost of funds for interest-bearing liabilities that exceeded a decrease in the yield on interest-earning assets.
Total interest
and dividend income decreased $608,000, or 1.5%, to $38.7 million for the three months ended September 30, 2026 from $39.3 million
for the three months ended September 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on
interest-earning assets by 61 basis points from 8.15% for the three months ended September 30, 2025 to 7.54% for the three months
ended September 30, 2026, partially offset by an increase in the average balance of interest-earning assets of $123.7 million, or
6.4%, to $2.1 billion for the three months ended September 30, 2026 from $1.9 billion for the three months ended September 30,
2025.
The decrease in the yield on interest-earning assets was due to a 75
basis points decrease in the Federal Funds rate from September 2025 to December 2025, partially offset by a 25 basis points
increase in the Federal Funds rate in September 2026. These interest rate movements resulted in a decrease in the yield on our construction
loans and commercial and industrial loans because the interest rates on these loans are indexed to the Prime Rate and change whenever
the Prime Rate changes.
Interest expense decreased $762,000, or 5.7%, to $12.6 million for
the three months ended September 30, 2026 from $13.3 million for the three months ended September 30, 2025. The decrease in
interest expense was due to a decrease in the cost of interest-bearing liabilities by 39 basis points from 3.91% for the three months
ended September 30, 2025 to 3.52% for the three months ended September 30, 2026. The decrease in the cost of interest-bearing
liabilities was offset by an increase in the average balance of interest-bearing liabilities of $62.6 million, or 4.6%, to $1.4
billion for the three months ended September 30, 2026 from $1.4 billion for the three months ended September 30, 2025.
Our net interest margin decreased 29 basis points, or 5.5%, to 5.09%
for the three months ended September 30, 2026 compared to 5.38% for the three months ended September 30, 2025. The decrease
in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025,
partially offset by a 25 basis points increase in the Federal Funds rate in September 2026. These interest rate movements resulted
in a decrease in the yield on interest-earning assets and a smaller decrease in the cost of funds on interest-bearing liabilities.
Credit Loss Expense
The Company recorded no credit loss expense for the three months ended
September 30, 2026 and September 30, 2025.
With respect to the allowance for credit losses for loans, we charged
off $37,000 during the quarter ended September 30, 2026, as compared to charge-offs of $75,000 during the quarter ended September 30,
2025. The charge-offs during the quarters ended September 30, 2026 and September 30, 2025 were against various unpaid overdrafts
in our demand deposit accounts.
We recorded recoveries of $8,000 during the quarter ended September 30,
2026 compared to recoveries of $99,000 during the quarter ended September 30, 2025. The recoveries during the quarters ended
September 30, 2026 and September 30, 2025 comprised of recoveries from previously charged-off unpaid overdraft on demand deposit
accounts.
Non-Interest Income
The Company recorded non-interest loss of $185,000 for the three months
ended September 30, 2026 compared to non-interest income of $1.0 million for the three months ended September 30, 2025. The
decrease of $1.2 million, or 118.2%, in total non-interest income was primarily due to a decrease of $1.3 million in unrealized gain/(loss)
on equity securities and a loss of $10,000 on the disposition of fixed assets. These were partially offset by increases of $51,000 in
other loan fees and service charges, $16,000 in BOLI income, and $13,000 in miscellaneous other non-interest income.
The decrease
in unrealized gain/(loss) on equity securities was due to an unrealized loss of $1.1 million on equity securities during the quarter ended
September 30, 2026 compared to an unrealized gain of $170,000 on equity securities during the quarter ended September 30, 2025.
The unrealized loss of $1.1 million and unrealized gain of $170,000 on equity securities during the quarters ended September 30,
2026 and 2025, respectively, were due to market interest rate volatility during both periods.
The increase
of $51,000 in other loan fees and service charges was due to increases of $62,000 in ATM/debit card/ACH fees and $3,000 in deposit account
fees, partially offset by a decrease of $14,000 in loan service charges and fees. The increase of $16,000 in BOLI income was due
to an increase in the yield on BOLI assets. The increase of $13,000 in miscellaneous other non-interest income was due to increases in
miscellaneous operating income during the quarter.
Non-Interest Expense
Non-interest expense increased $402,000, or 3.9%, to $10.7 million
for the three months ended September 30, 2026 from $10.4 million for the three months ended September 30, 2025. The increase
resulted primarily from increases of $757,000 in other operating expenses, $43,000 in salaries and employee benefits, $26,000 in occupancy
expense, and $10,000 in equipment expense, partially offset by decreases of $238,000 in real estate owned expense, $103,000 in outside
data processing expense, and $93,000 in advertising expense.
Other non-interest operating expense increased $757,000, or 27.0%,
to $3.6 million for the three months ended September 30, 2026 from $2.8 million for the three months ended September 30, 2025
due mainly to increases of $844,000 in miscellaneous other non-interest expense, $64,000 in consulting fees, $60,000 in service contracts
expense, $52,000 in personnel recruitment expense, $8,000 in directors compensation, $4,000 in directors, officers and employees expense,
$4,000 in office supplies, and $3,000 in insurance expense. These increases were partially offset by decreases of $179,000 in regulatory
fees, $46,000 in legal fees, $21,000 in telephone expense, $20,000 in audit and accounting expense, and $16,000 in dues and subscription
expense.
The increase of $844,000 in miscellaneous other non-interest expense
was mainly due to increases of $729,000 in miscellaneous charge-offs, $66,000 in public company expense, $48,000 in miscellaneous other
non-interest expense, and $2,000 in check and correspondent bank charges, partially offset by a decrease of $1,000 in postage expense.
The increase of $729,000 in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit cards.
Income Taxes
We recorded income tax expense of $4.5 million and $4.7 million
for the three months ended September 30, 2026 and 2025, respectively. For the three months ended September 30, 2026, we
had approximately $259,000 in tax exempt income, compared to approximately $216,000 in tax exempt income for the three months ended September 30,
2025. Our effective income tax rate was 29.6% for the three months ended September 30, 2026 compared to 28.5% for the three months
ended September 30, 2025.
Results of Operations for the Nine Months Ended September 30,
2026 and 2025
Net Interest Income
Net interest income was $74.9 million for the nine months ended September 30,
2026 as compared to $75.3 million for the nine months ended September 30, 2025. The decrease in net interest income of $401,000,
or 0.5%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense and a decrease in the yield on
interest earning assets, partially offset by a smaller decrease in the cost of funds for interest bearing liabilities.
Total interest
and dividend income decreased $4.8 million, or 4.2%, to $110.7 million for the nine months ended September 30, 2026 from $115.5 million
for the nine months ended September 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on
interest earning assets by 61 basis points from 8.10% for the nine months ended September 30, 2025 to 7.50% for the nine months ended
September 30, 2026, partially offset by an increase in the average balance of interest earning assets of $67.9 million, or 3.6%,
to $2.0 billion for the nine months ended September 30, 2026 from $1.9 billion for the nine months ended September 30, 2025.
The decrease in the yield on interest-earning assets was due to a 75
basis points decrease in the Federal Funds rate from September 2025 to December 2025, partially offset by a 25 basis points
increase in the Federal Funds rate in September 2026. These interest rate movements resulted in a decrease in the yield on our construction
loans and commercial and industrial loans because the interest rates on these loans are indexed to the Prime Rate and change whenever
the Prime Rate changes.
Interest expense decreased $4.4 million, or 11.0%, to $35.8 million
for the nine months ended September 30, 2026 from $40.2 million for the nine months ended September 30, 2025. The decrease in
interest expense was due to a decrease in the cost of interest bearing liabilities by 47 basis points from 3.95% for the nine months ended
September 30, 2025 to 3.48% for the nine months ended September 30, 2026, partially offset by an increase in average interest
bearing liabilities of $12.5 million, or 0.9%, to $1.4 billion for the nine months ended September 30, 2026 from $1.4 billion
for the nine months ended September 30, 2025.
Net interest margin decreased 21 basis points, or 4.0%, to 5.07% for
the nine months ended September 30, 2026 compared to 5.28% for the nine months ended September 30, 2025. The decrease in
the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025,
partially offset by a 25 basis points increase in the Federal Funds rate in September 2026. These interest rate movements resulted
in a decrease in the yield on interest-earning assets and a smaller decrease in the cost of funds on interest-bearing liabilities.
Credit Loss Expense
The Company recorded a credit loss expense of $860,000 for the nine
months ended September 30, 2026 compared to a credit loss expense of $237,000 for the nine months ended September 30, 2025.
The credit loss expense of $860,000 for the nine months ended September 30, 2026 was comprised of credit loss expense for loans of
$568,000, credit loss expense for off-balance sheet commitments of $283,000, and credit loss expense for held-to-maturity securities of
$9,000. The credit loss expense of $237,000 for the nine months ended September 30, 2025 was comprised of credit loss expense for
loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000.
The credit
loss expense for loans of $568,000 for the nine months ended September 30, 2026 was primarily due to replenishment of the
allowance for credit losses due to charge-offs totaling $584,000.
The credit loss expense for off-balance sheet commitments of $283,000
for the nine months ended September 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit
loss expense for held-to-maturity securities of $9,000 for the nine months ended September 30, 2026 was primarily due to an increase
in the municipal bond portfolio.
The credit loss expense for loans of $62,000 for the nine months ended
September 30, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet
commitments of $175,000 for the nine months ended September 30, 2025 was primarily due to an increase in unfunded off-balance sheet
commitments.
With respect
to the allowance for credit losses for loans, we charged off $584,000 during the nine months ended September 30, 2026 as compared
to charge-offs of $678,000 during the nine months ended September 30, 2025. The charge-offs during the nine months ended September 30,
2026 comprised of $500,000 against a commercial and industrial loan and $84,000 against various unpaid overdrafts in our demand deposit
accounts. The charge-offs during the nine months ended September 30, 2025 were against various unpaid overdrafts in our demand deposit
accounts.
We recorded recoveries of $8,000 during the nine months ended September 30,
2026 compared to recoveries of $534,000 during the nine months ended September 30, 2025. The recoveries during the quarter
ended September 30, 2026 comprised of recoveries from previously charged-off unpaid overdraft on demand deposit accounts. The recoveries
of $534,000 during the nine months ended September 30, 2025 comprised of recoveries of $350,000 with respect to a previously charged-off
non-residential mortgage loan and $184,000 from previously charged-off unpaid overdrafts on demand deposit accounts.
Non-Interest Income
Non-interest income for the nine months ended September 30, 2026
was $1.3 million compared to non-interest income of $3.1 million for the nine months ended September 30, 2025. The decrease of $1.9
million, or 59.7%, in total non-interest income was primarily due to decreases of $1.9 million in unrealized gain/(loss) on equity securities,
$82,000 in other loan fees and service charges, and a loss of $10,000 on the disposition of fixed assets, partially offset by increases
of $57,000 in miscellaneous other non-interest income and $43,000 in BOLI income.
The decrease
in unrealized gain on equity securities was due to an unrealized loss of $1.3 million on equity securities during the nine months ended
September 30, 2026 compared to an unrealized gain of $521,000 on equity securities during the nine months ended September 30,
2025. Both the unrealized loss of $1.3 million on equity securities during the 2026 period and the unrealized gain of $521,000
on equity securities during the 2025 period were due to market interest rate volatility during both periods.
The decrease
of $82,000 in other loan fees and service charges was due to a decrease of $240,000 in other loan fees and loan servicing fees, partially
offset by an increase of $154,000 in ATM/debit card/ACH fees and $3,000 in deposit account fees. The increase of $57,000 in miscellaneous
other non-interest income was due to increases in miscellaneous operating income during the quarter. The increase in BOLI income of $43,000
was due to an increase in the yield on BOLI assets.
Non-Interest Expense
Non-interest
expense increased $773,000, or 2.5%, to $32.3 million for the nine months ended September 30, 2026 from $31.5 million for the nine
months ended September 30, 2025. The increase resulted primarily from increases of $965,000 in other operating expenses, $448,000
in salaries and employee benefits, and $199,000 in occupancy expense, partially offset by decreases of $277,000 in real estate owned expense,
$232,000 in advertising expense, $76,000 in outside data processing expense, and $16,000 in equipment expense.
Other non-interest expense increased $965,000, or 11.5%, to $9.4 million
for the nine months ended September 30, 2026 from $8.4 million for the nine months ended September 30, 2025 due mainly
to increases of $1.2 million in miscellaneous other non-interest expense, $120,000 in service contract expense, $87,000 in consulting
fees, $37,000 in insurance expense, $37,000 in directors, officers, and employee expense, $28,000 in directors compensation, and $11,000
in personnel recruitment expense. These increases were partially offset by decreases of $368,000 in regulatory fees, $61,000 in audit
and accounting fees, $60,000 in telephone expense, $34,000 in dues and subscriptions expense, $25,000 in office supplies expense, and
$3,000 in legal fees.
The increase of $1.2 million in miscellaneous other non-interest expense
was mainly due to increases of $1.1 million in miscellaneous charge-offs, $112,000 in public company expenses, and $24,000 in check and
correspondent bank charges, partially offset by decreases of $4,000 in postage expense and $3,000 in miscellaneous other non-interest
expense. The increase of $1.1 million in miscellaneous charge-offs was due to an increase in customer fraud involving checks and debit
cards.
Income Taxes
We recorded income tax expense of $12.6 million and $13.1 million
for the nine months ended September 30, 2026 and 2025, respectively. For the nine months ended September 30, 2026,
we had approximately $759,000 in tax exempt income, compared to approximately $630,000 in tax exempt income for the nine months ended
September 30, 2025. Our effective income tax rates were 29.3% and 28.0% for the nine months ended September 30, 2026 and
2025, respectively.
Asset Quality
Non-performing assets totaled $17.4 million at September 30, 2026
compared to no non-performing assets at December 31, 2025. The non-performing assets at September 30, 2026 comprised of one
construction loan totaling $13.9 million and two commercial and industrial loans totaling $3.5 million that are in foreclosure and are
secured by a seven story multi-family building with 63 apartment units and one ground floor commercial space occupied by a supermarket
located in the Bronx, New York. We do not currently anticipate any losses on these three loans because we believe the outstanding loan
balance is sufficiently collateralized by the value of the security property.
Our ratio of non-performing assets to total assets was 0.79% at September 30,
2026 compared to 0.00% at December 31, 2025.
The Company’s allowance for credit losses related to loans was
$4.7 million, or 0.23% of total loans at September 30, 2026, compared to $4.7 million, or 0.25% of total loans at December 31,
2025. Based on a review of the loans that were in the loan portfolio at September 30, 2026, management believes that the allowance
for credit losses related to loans is maintained at a level that represents its best estimate of expected losses in the loan portfolio.
In addition, at September 30, 2026, the Company’s allowance
for credit losses related to off-balance sheet commitments totaled $1.2 million and the allowance for credit losses related to held-to-maturity
debt securities totaled $135,000.
Capital
The Company’s total stockholders’ equity to assets ratio
was 16.73% as of September 30, 2026. At September 30, 2026, the Company had the ability to borrow $1.0 billion from the Federal
Reserve Bank of New York and $8.0 million from Atlantic Community Bankers Bank.
The Bank’s capital position remains strong relative to current
regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of
September 30, 2026, the Bank had a tier 1 leverage capital ratio of 16.79% and a total risk-based capital ratio of 15.15%.
The Company commenced its third stock repurchase program on December 10,
2025 whereby the Company is authorized to repurchase up to 1,400,435, or 10%, of the Company’s issued and outstanding common stock.
As of September 30, 2026, the Company had repurchased 239,894 shares of common stock under its third repurchase program, at a cost
of $5.6 million, including commission costs and Federal excise taxes.
About NorthEast Community Bancorp
NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue,
White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices
located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts
and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information
about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.
Forward Looking Statement
This
press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future
events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such
as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or
conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These
statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks
and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous
factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in
market interest rates, regional and national economic conditions (including higher inflation or recessionary conditions and their impact
on regional and national economic conditions), legislative and regulatory changes, changes relating to rent regulation and housing, including
recent legislative action in New York City to freeze rents on certain rent-regulated properties, monetary and fiscal policies of the United
States government, including policies of the United States Treasury and the Federal Reserve Board, the impacts of tariffs, sanctions and
other trade policies of the United States and its global trading counterparts, the impact of changing political conditions or federal
government shutdowns, the quality and composition of the loan or investment portfolios, demand for loan products, decreases in deposit
levels necessitating increased borrowing to fund loans and securities, competition, demand for financial services in NorthEast Community
Bank’s market area, changes in the real estate market values in NorthEast Community Bank’s market area, the impact of failures
or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties,
including as a result of cyberattacks or campaigns, and changes in relevant accounting principles and guidelines. Additionally, other
risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the
“SEC”), which are available through the SEC’s website located at www.sec.gov. These risks and uncertainties should
be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required
by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result
of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements
or to reflect the occurrence of anticipated or unanticipated events.
CONTACT: Kenneth
A. Martinek
Chairman and Chief Executive Officer
PHONE: (914)
684-2500
NORTHEAST COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
September 30,
December 31,
2026
2025
(In thousands, except share
and per share amounts)
ASSETS
Cash and amounts due from depository institutions
$ 7,711
$ 10,456
Interest-bearing deposits
64,918
70,719
Total cash and cash equivalents
72,629
81,175
Certificates of deposit
100
100
Equity securities
26,229
26,570
Securities held-to-maturity (net of allowance for credit losses of $135 and $126, respectively)
18,674
18,315
Loans receivable
2,020,340
1,860,066
Deferred loan costs, net
36
268
Allowance for credit losses
(4,723 )
(4,731 )
Net loans
2,015,653
1,855,603
Premises and equipment, net
25,038
25,377
Investments in restricted stock, at cost
543
410
Bank owned life insurance
26,990
26,433
Accrued interest receivable
12,854
12,228
Property held for investment
1,306
1,334
Right of Use Assets – Operating
4,114
4,656
Right of Use Assets – Financing
340
343
Other assets
11,567
10,964
Total assets
$ 2,216,037
$ 2,063,508
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing
$ 325,624
$ 271,924
Interest bearing
1,493,944
1,344,977
Total deposits
1,819,568
1,616,901
Advance payments by borrowers for taxes and insurance
2,875
2,352
Borrowings
-
70,000
Lease Liability – Operating
4,297
4,796
Lease Liability – Financing
464
434
Accounts payable and accrued expenses
18,183
17,325
Total liabilities
1,845,387
1,711,808
Stockholders’ equity:
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding
$ —
$ —
Common stock, $0.01 par value; 75,000,000 shares authorized; 13,766,631 shares and 13,963,432 shares outstanding, respectively
138
140
Additional paid-in capital
108,957
111,575
Unearned Employee Stock Ownership Plan (“ESOP”) shares
(4,827 )
(5,218 )
Retained earnings
266,107
244,970
Accumulated other comprehensive gain
275
233
Total stockholders’ equity
370,650
351,700
Total liabilities and stockholders’ equity
$ 2,216,037
$ 2,063,508
NORTHEAST COMMUNITY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(In thousands, except per share amounts)
(In thousands, except per share amounts)
INTEREST INCOME:
Loans
$ 37,858
$ 38,281
$ 108,074
$ 111,903
Interest-earning deposits
482
716
1,638
2,824
Securities
331
282
988
798
Total Interest Income
38,671
39,279
110,700
115,525
INTEREST EXPENSE:
Deposits
11,409
11,929
33,421
37,915
Borrowings
1,159
1,401
2,372
2,303
Financing lease
10
10
30
29
Total Interest Expense
12,578
13,340
35,823
40,247
Net Interest Income
26,093
25,939
74,877
75,278
Provision for credit loss
—
—
860
237
Net Interest Income after Provision for Credit Loss
26,093
25,939
74,017
75,041
NON-INTEREST (LOSS) INCOME:
Other loan fees and service charges
688
638
1,907
1,989
Loss on disposition of equipment
(10 )
-
(10 )
-
Earnings on bank owned life insurance
193
177
557
514
Unrealized (loss) gain on equity securities
(1,098 )
170
(1,341 )
521
Other
42
29
140
83
Total Non-Interest (Loss) Income
(185 )
1,014
1,253
3,107
NON-INTEREST EXPENSES:
Salaries and employee benefits
5,459
5,416
17,448
17,000
Occupancy expense
764
738
2,426
2,227
Equipment
235
225
679
695
Outside data processing
711
814
2,232
2,307
Advertising
22
115
108
340
Real estate owned expense
-
238
-
515
Other
3,562
2,805
9,358
8,394
Total Non-Interest Expenses
10,753
10,351
32,251
31,478
INCOME BEFORE PROVISION FOR INCOME TAXES
15,155
16,602
43,019
46,670
PROVISION FOR INCOME TAXES
4,483
4,737
12,600
13,068
NET INCOME
$ 10,672
$ 11,865
$ 30,419
$ 33,602
NORTHEAST COMMUNITY BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(In thousands, except per share amounts)
(In thousands, except per share amounts)
Per share data:
Earnings per share - basic
$ 0.81
$ 0.90
$ 2.31
$ 2.54
Earnings per share - diluted
0.79
0.87
2.25
2.47
Weighted average shares outstanding - basic
13,131
13,252
13,156
13,228
Weighted average shares outstanding - diluted
13,566
13,632
13,537
13,626
Performance ratios/data:
Return on average total assets
2.00 %
2.35 %
1.97 %
2.25 %
Return on average shareholders' equity
11.54 %
13.84 %
11.16 %
13.40 %
Net interest income
$ 26,093
$ 25,939
$ 74,877
$ 75,278
Net interest margin
5.09 %
5.38 %
5.07 %
5.28 %
Efficiency ratio
41.50 %
38.40 %
42.36 %
40.16 %
Net charge-off ratio
0.01 %
0.00 %
0.04 %
0.01 %
Loan portfolio composition:
September 30, 2026
December 31, 2025
One-to-four family
$ 3,010
$ 3,114
Multi-family
301,486
306,508
Mixed-use
21,862
25,197
Total residential real estate
326,358
334,819
Non-residential real estate
36,907
38,463
Construction
1,543,624
1,336,329
Commercial and industrial
113,408
150,397
Consumer
43
58
Gross loans
2,020,340
1,860,066
Deferred loan cost, net
36
268
Total loans
$ 2,020,376
$ 1,860,334
Asset quality data:
Loans past due over 90 days and still accruing
$ -
$ -
Non-accrual loans
17,444
-
Total non-performing assets
$ 17,444
$ —
Allowance for credit losses to total loans
0.23 %
0.25 %
Allowance for credit losses to non-performing loans
27.08 %
0.00 %
Non-performing loans to total loans
0.86 %
0.00 %
Non-performing assets to total assets
0.79 %
0.00 %
Bank's Regulatory Capital ratios:
Total capital to risk-weighted assets
15.15 %
15.62 %
Common equity tier 1 capital to risk-weighted assets
14.90 %
15.36 %
Tier 1 capital to risk-weighted assets
14.90 %
15.36 %
Tier 1 leverage ratio
16.79 %
16.39 %
NORTHEAST COMMUNITY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(Unaudited)
Three Months Ended September 30, 2026
Three Months Ended September 30, 2025
Average
Interest
Average
Average
Interest
Average
Balance
and dividend
Yield
Balance
and dividend
Yield
(In thousands, except yield/cost information)
(In thousands, except yield/cost information)
Loan receivable gross
$ 1,962,183
$ 37,858
7.72 %
$ 1,826,726
$ 38,281
8.38 %
Securities
45,008
323
2.87 %
39,901
275
2.76 %
Federal Home Loan Bank stock
543
8
5.89 %
1,070
7
2.62 %
Other interest-earning assets
44,799
482
4.30 %
61,177
716
4.68 %
Total interest-earning assets
2,052,533
38,671
7.54 %
1,928,874
39,279
8.15 %
Allowance for credit losses
(4,752 )
(4,724 )
Non-interest-earning assets
90,933
91,219
Total assets
$ 2,138,714
$ 2,015,369
Interest-bearing demand deposit
$ 377,489
$ 2,894
3.07 %
$ 298,408
$ 2,559
3.43 %
Savings and club accounts
130,622
657
2.01 %
134,258
730
2.17 %
Certificates of deposit
798,602
7,858
3.94 %
807,285
8,640
4.28 %
Total interest-bearing deposits
1,306,713
11,409
3.49 %
1,239,951
11,929
3.85 %
Borrowed money
121,146
1,169
3.86 %
125,346
1,411
4.50 %
Total interest-bearing liabilities
1,427,859
12,578
3.52 %
1,365,297
13,340
3.91 %
Non-interest-bearing demand deposit
316,512
284,100
Other non-interest-bearing liabilities
24,473
23,046
Total liabilities
1,768,844
1,672,443
Equity
369,870
342,926
Total liabilities and equity
$ 2,138,714
$ 2,015,369
Net interest income / interest spread
$ 26,093
4.01 %
$ 25,939
4.24 %
Net interest rate margin
5.09 %
5.38 %
Net interest earning assets
$ 624,674
$ 563,577
Average interest-earning assets to interest-bearing liabilities
143.75 %
141.28 %
NORTHEAST COMMUNITY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(Unaudited)
Nine Months Ended September 30, 2026
Nine Months Ended September 30, 2025
Average
Interest
Average
Average
Interest
Average
Balance
and dividend
Yield
Balance
and dividend
Yield
(In thousands, except yield/cost information)
(In thousands, except yield/cost information)
Loan receivable gross
$ 1,871,662
$ 108,074
7.70 %
$ 1,783,195
$ 111,903
8.37 %
Securities
45,158
966
2.85 %
38,176
775
2.71 %
Federal Home Loan Bank stock
497
22
5.90 %
637
23
4.81 %
Other interest-earning assets
51,729
1,638
4.22 %
79,145
2,824
4.76 %
Total interest-earning assets
1,969,046
110,700
7.50 %
1,901,153
115,525
8.10 %
Allowance for credit losses
(4,692 )
(4,892 )
Non-interest-earning assets
91,797
94,435
Total assets
$ 2,056,151
$ 1,990,696
Interest-bearing demand deposit
$ 349,140
$ 7,999
3.05 %
$ 290,663
$ 7,405
3.40 %
Savings and club accounts
133,457
1,989
1.99 %
138,116
2,221
2.14 %
Certificates of deposit
803,627
23,433
3.89 %
860,890
28,289
4.38 %
Total interest-bearing deposits
1,286,224
33,421
3.46 %
1,289,669
37,915
3.92 %
Borrowed money
85,718
2,402
3.74 %
69,812
2,332
4.45 %
Total interest-bearing liabilities
1,371,942
35,823
3.48 %
1,359,481
40,247
3.95 %
Non-interest-bearing demand deposit
297,161
276,529
Other non-interest-bearing liabilities
23,754
20,433
Total liabilities
1,692,857
1,656,443
Equity
363,294
334,253
Total liabilities and equity
$ 2,056,151
$ 1,990,696
Net interest income / interest spread
$ 74,877
4.01 %
$ 75,278
4.15 %
Net interest rate margin
5.07 %
5.28 %
Net interest earning assets
$ 597,104
$ 541,672
Average interest-earning assets to interest-bearing liabilities
143.52 %
139.84 %
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Title of a 12(b) registered security.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
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Trading symbol of an instrument as listed on an exchange.
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