NorthEast Community Bancorp, Inc. Reports Results for the Three and Nine Months Ended September 30, 2024
NorthEast Community Bancorp reported strong Q3 2024 financial results with net income of $12.7 million ($0.97 per basic share), up from $11.8 million in Q3 2023. For the nine months ended September 30, 2024, net income reached $36.9 million ($2.81 per basic share) compared to $34.2 million in the same period 2023. Total assets increased 11.6% to $2.0 billion, driven by net loan growth of $173.6 million and increased cash equivalents. The bank maintained strong performance metrics with a 2.62% return on assets and 16.48% return on equity. Net interest income grew by 4.6% to $26.3 million in Q3 2024, despite challenging interest rate conditions.
NorthEast Community Bancorp ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un utile netto di 12,7 milioni di dollari (0,97 dollari per azione base), in aumento rispetto agli 11,8 milioni di dollari del terzo trimestre del 2023. Nei nove mesi terminati il 30 settembre 2024, l'utile netto è stato di 36,9 milioni di dollari (2,81 dollari per azione base), rispetto ai 34,2 milioni di dollari nello stesso periodo del 2023. Gli attivi totali sono aumentati dell'11,6% a 2,0 miliardi di dollari, sostenuti da una crescita netta dei prestiti di 173,6 milioni di dollari e dall'aumento delle disponibilità liquide. La banca ha mantenuto parametri di prestazione solidi con un ritorno sugli attivi del 2,62% e un ritorno sul capitale del 16,48%. Il reddito netto da interessi è cresciuto del 4,6% a 26,3 milioni di dollari nel terzo trimestre del 2024, nonostante le difficili condizioni dei tassi d'interesse.
NorthEast Community Bancorp reportó fuertes resultados financieros del tercer trimestre de 2024, con un ingreso neto de 12,7 millones de dólares (0,97 dólares por acción básica), en comparación con 11,8 millones de dólares en el tercer trimestre de 2023. Para los nueve meses que finalizaron el 30 de septiembre de 2024, el ingreso neto alcanzó los 36,9 millones de dólares (2,81 dólares por acción básica) en comparación con 34,2 millones de dólares en el mismo período de 2023. Los activos totales crecieron un 11,6% hasta alcanzar los 2,0 mil millones de dólares, impulsados por un crecimiento neto de préstamos de 173,6 millones de dólares y un aumento en equivalentes de efectivo. El banco mantuvo métricas de rendimiento sólidas con un retorno sobre activos del 2,62% y un retorno sobre capital del 16,48%. El ingreso neto por intereses creció un 4,6% hasta alcanzar los 26,3 millones de dólares en el tercer trimestre de 2024, a pesar de las desafiantes condiciones de tasas de interés.
NorthEast Community Bancorp는 2024년 3분기 강력한 재무 성과를 보고하였으며, 순이익은 1,270만 달러(주당 0.97달러)로 2023년 3분기의 1,180만 달러에서 증가하였습니다. 2024년 9월 30일로 종료된 9개월 동안 순이익은 3,690만 달러(주당 2.81달러)로, 2023년 같은 기간의 3,420만 달러와 비교되었습니다. 총 자산은 11.6% 증가하여 20억 달러에 달하며, 이는 1억 7,360만 달러의 순 대출 성장과 유동 자산 증가에 힘입은 것입니다. 이 은행은 2.62%의 자산 수익률과 16.48%의 자기자본 수익률로 강력한 성과 지표를 유지하였습니다. 순 이자 수익은 2024년 3분기 동안 4.6% 증가하여 2,630만 달러에 달하였으며, 이는 어려운 이자율 조건 속에서도 이뤄낸 성과입니다.
NorthEast Community Bancorp a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un revenu net de 12,7 millions de dollars (0,97 dollar par action ordinaire), en hausse par rapport aux 11,8 millions de dollars du troisième trimestre 2023. Pour les neuf mois se terminant le 30 septembre 2024, le revenu net a atteint 36,9 millions de dollars (2,81 dollars par action ordinaire) par rapport à 34,2 millions de dollars sur la même période en 2023. Les actifs totaux ont augmenté de 11,6% pour atteindre 2,0 milliards de dollars, soutenus par une croissance nette des prêts de 173,6 millions de dollars et une augmentation des liquidités. La banque a maintenu des indicateurs de performance solides avec un retour sur actifs de 2,62% et un retour sur fonds propres de 16,48%. Les revenus d'intérêts nets ont augmenté de 4,6% pour atteindre 26,3 millions de dollars au troisième trimestre 2024, malgré des conditions de taux d'intérêt difficiles.
NorthEast Community Bancorp berichtete über starke Finanzergebnisse im dritten Quartal 2024 mit einem Nettogewinn von 12,7 Millionen Dollar (0,97 Dollar pro Stammaktie), ein Anstieg von 11,8 Millionen Dollar im dritten Quartal 2023. Für die neun Monate bis zum 30. September 2024 belief sich der Nettogewinn auf 36,9 Millionen Dollar (2,81 Dollar pro Stammaktie) im Vergleich zu 34,2 Millionen Dollar im gleichen Zeitraum 2023. Die Gesamtrentabilität stieg um 11,6% auf 2,0 Milliarden Dollar, angetrieben durch ein Nettowachstum der Kredite von 173,6 Millionen Dollar und gestiegene liquide Mittel. Die Bank hielt starke Leistungskennzahlen mit einer Rendite von 2,62% auf Vermögenswerte und 16,48% auf Eigenkapital aufrecht. Die Nettozinseinnahmen stiegen um 4,6% auf 26,3 Millionen Dollar im dritten Quartal 2024, trotz herausfordernder Zinsbedingungen.
- Net income increased to $12.7M in Q3 2024 from $11.8M in Q3 2023
- Total assets grew 11.6% to $2.0B
- Net loans increased by $173.6M (11.0%)
- Net interest income rose 4.6% to $26.3M
- Strong performance metrics: 2.62% ROA, 16.48% ROE
- Net interest margin decreased 72 basis points to 5.68%
- Interest expense increased 48.9% to $14.9M
- Cost of interest-bearing liabilities increased 59 basis points to 4.45%
Insights
This quarterly earnings report shows strong financial performance with several positive indicators. Net income increased to
Key performance metrics are impressive with ROA of
Despite high interest rates, loan demand remained robust with
WHITE PLAINS, N.Y., Oct. 28, 2024 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), generated net income of
Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated, “We are pleased to report another quarter of strong earnings due to the strong performance of our loan portfolio. Despite the challenging high interest rate environment during 2023 that continued into most of 2024, offset by a reduction in interest rates towards the end of the third quarter of 2024, loan demand remained strong with originations and outstanding commitments remaining robust. As has been in the past, construction lending in high demand-high absorption areas continues to be our focus.”
Highlights for the three months and nine months ended September 30, 2024 are as follows:
- Performance metrics continue to be strong with a return on average total assets ratio of
2.62% , a return on average shareholders’ equity ratio of16.48% , and an efficiency ratio of36.04% for the three months ended September 30, 2024. For the nine months ended September 30, 2024, the Company generated a return on average total assets ratio of2.61% , a return on average shareholders’ equity ratio of16.55% , and an efficiency ratio of36.37% . - Net interest income increased by
$1.2 million and$5.5 million , or4.6% and7.7% , respectively, for the three months and nine months ended September 30, 2024 compared to the same periods in 2023. - Our commitments, loans-in-process, and standby letters of credit outstanding totaled
$659.0 million at September 30, 2024 compared to$719.6 million at December 31, 2023.
Balance Sheet Summary
Total assets increased
Cash and cash equivalents increased
Equity securities increased
Securities held-to-maturity decreased
Loans, net of the allowance for credit losses, increased
Loan originations during the nine months ended September 30, 2024 resulted in a net increase of
The allowance for credit losses related to loans decreased to
Premises and equipment decreased
Investments in Federal Home Loan Bank stock decreased
Bank owned life insurance (“BOLI”) increased
Accrued interest receivable increased
Real estate owned decreased
Right of use assets — operating decreased
Other assets decreased
Total deposits increased
Federal Home Loan Bank advances decreased
Advance payments by borrowers for taxes and insurance increased
Lease liability – operating decreased
Accounts payable and accrued expenses increased
Stockholders’ equity increased
Results of Operations for the Three Months Ended September 30, 2024 and 2023
Net Interest Income
Net interest income was
The increase in interest income is attributable to increases in the average balances of loans, interest-bearing deposits, and investment securities, partially offset by a decrease in the average balances of FHLB stock. The increase in interest income is also attributable to the Federal Reserve’s interest rate increases in 2023 that continued until September 2024.
The increase in market interest rates in 2023 that continued until September 2024 also caused an increase in our interest expense. As a result, the increase in interest expense for the three months ended September 30, 2024 was due to an increase in the cost of funds on our deposits and borrowed money. The increase in interest expense was also due to an increase in the average balances on our certificates of deposits, our interest-bearing demand deposits, and our borrowed money, offset by a decrease in the average balances on our savings and club deposits.
Total interest and dividend income increased
Interest expense increased
Our net interest margin decreased 72 basis points, or
Credit Loss Expense
The Company recorded a provision for credit loss of
With respect to the allowance for credit losses for loans, we charged-off
We recorded no recoveries from previously charged-off loans during the three months ended September 30, 2024 and 2023.
Non-Interest Income
Non-interest income for the three months ended September 30, 2024 was
The increase in unrealized gain (loss) on equity securities was due to an unrealized gain of
The increase of
The decrease in investment advisory fees was due to the disposition in January 2024 of the Bank’s assets relating to the Harbor West Wealth Management Group. As a result of the transaction, the Bank no longer generates investment advisory fees.
Non-Interest Expense
Non-interest expense increased
Income Taxes
We recorded income tax expense of
Results of Operations for the Nine Months Ended September 30, 2024 and 2023
Net Interest Income
Net interest income was
The increase in interest income is attributable to increases in loans and interest-bearing deposits, partially offset by decreases in investment securities and FHLB stock. The increase in interest income is also attributable to the Federal Reserve’s interest rate increases during 2023 that continued until September 2024.
The increase in market interest rates in 2023 that continued until September 2024 also caused an increase in our interest expense. As a result, the increase in interest expense for the nine months ended September 30, 2024 was due to an increase in the cost of funds on our deposits and borrowed money. The increase in interest expense was also due to increases in the balances on our certificates of deposits, our interest-bearing demand deposits, and our borrowed money, offset by a decrease in the balances of our savings and club deposits.
Total interest and dividend income increased
Interest expense increased
Net interest margin decreased 80 basis points, or
Credit Loss Expense
The Company recorded a credit loss expense reduction totaling
The credit loss expense of
We charged-off
We recorded no recoveries from previously charged-off loans during the nine months ended September 30, 2024 and 2023.
Non-Interest Income
Non-interest income for the nine months ended September 30, 2024 was
The increase in unrealized gain (loss) on equity securities was due to an unrealized gain of
The increase of
The decrease in BOLI income was primarily due to two death claims totaling
Non-Interest Expense
Non-interest expense increased
Income Taxes
We recorded income tax expense of
Asset Quality
Non-performing assets were
The Company’s allowance for credit losses related to loans was
In addition, at September 30, 2024, the Company’s allowance for credit losses related to off-balance sheet commitments totaled
Capital
The Company’s total stockholders’ equity to assets ratio was
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, 2024, the Bank had a tier 1 leverage capital ratio of
The Company completed its first stock repurchase program on April 14, 2023 whereby the Company repurchased 1,637,794 shares, or
The Company commenced its second stock repurchase program on May 30, 2023 whereby the Company will repurchase 1,509,218, or
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 and its impact on regional and national economic conditions), legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, 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, | ||||||
| 2024 | 2023 | ||||||
| (In thousands, except share | |||||||
| and per share amounts) | |||||||
| ASSETS | |||||||
| Cash and amounts due from depository institutions | $ | 16,023 | $ | 13,394 | |||
| Interest-bearing deposits | 81,766 | 55,277 | |||||
| Total cash and cash equivalents | 97,789 | 68,671 | |||||
| Certificates of deposit | 100 | 100 | |||||
| Equity securities | 20,547 | 18,102 | |||||
| Securities held-to-maturity (net of allowance for credit losses of | 15,061 | 15,860 | |||||
| Loans receivable | 1,760,504 | 1,586,721 | |||||
| Deferred loan (fees) costs, net | (245 | ) | 176 | ||||
| Allowance for credit losses | (4,833 | ) | (5,093 | ) | |||
| Net loans | 1,755,426 | 1,581,804 | |||||
| Premises and equipment, net | 24,945 | 25,452 | |||||
| Investments in restricted stock, at cost | 712 | 929 | |||||
| Bank owned life insurance | 25,568 | 25,082 | |||||
| Accrued interest receivable | 13,463 | 12,311 | |||||
| Real estate owned | 978 | 1,456 | |||||
| Property held for investment | 1,380 | 1,407 | |||||
| Right of Use Assets – Operating | 4,144 | 4,566 | |||||
| Right of Use Assets – Financing | 348 | 351 | |||||
| Other assets | 7,496 | 8,044 | |||||
| Total assets | $ | 1,967,957 | $ | 1,764,135 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Liabilities: | |||||||
| Deposits: | |||||||
| Non-interest bearing | $ | 267,592 | $ | 300,184 | |||
| Interest bearing | 1,360,475 | 1,099,852 | |||||
| Total deposits | 1,628,067 | 1,400,036 | |||||
| Advance payments by borrowers for taxes and insurance | 2,462 | 2,020 | |||||
| Borrowings | 7,000 | 64,000 | |||||
| Lease Liability – Operating | 4,241 | 4,625 | |||||
| Lease Liability – Financing | 599 | 571 | |||||
| Accounts payable and accrued expenses | 15,965 | 13,558 | |||||
| Total liabilities | 1,658,334 | 1,484,810 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock, | $ | — | $ | — | |||
| Common stock, | 140 | 142 | |||||
| Additional paid-in capital | 109,368 | 109,924 | |||||
| Unearned Employee Stock Ownership Plan (“ESOP”) shares | (5,911 | ) | (6,563 | ) | |||
| Retained earnings | 205,699 | 175,505 | |||||
| Accumulated other comprehensive income | 327 | 317 | |||||
| Total stockholders’ equity | 309,623 | 279,325 | |||||
| Total liabilities and stockholders’ equity | $ | 1,967,957 | $ | 1,764,135 | |||
| NORTHEAST COMMUNITY BANCORP, INC. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| (In thousands, except per share amounts) | ||||||||||||||
| INTEREST INCOME: | ||||||||||||||
| Loans | $ | 39,484 | $ | 33,757 | $ | 114,821 | $ | 91,826 | ||||||
| Interest-earning deposits | 1,472 | 1,181 | 4,058 | 2,886 | ||||||||||
| Securities | 227 | 199 | 662 | 650 | ||||||||||
| Total Interest Income | 41,183 | 35,137 | 119,541 | 95,362 | ||||||||||
| INTEREST EXPENSE: | ||||||||||||||
| Deposits | 14,630 | 9,889 | 40,459 | 23,050 | ||||||||||
| Borrowings | 257 | 109 | 1,559 | 299 | ||||||||||
| Financing lease | 10 | 10 | 29 | 28 | ||||||||||
| Total Interest Expense | 14,897 | 10,008 | 42,047 | 23,377 | ||||||||||
| Net Interest Income | 26,286 | 25,129 | 77,494 | 71,985 | ||||||||||
| Provision for (reversal of) credit loss | 105 | 156 | (286 | ) | 767 | |||||||||
| Net Interest Income after Provision for (Reversal of) Credit Loss | 26,181 | 24,973 | 77,780 | 71,218 | ||||||||||
| NON-INTEREST INCOME: | ||||||||||||||
| Other loan fees and service charges | 589 | 364 | 1,613 | 1,417 | ||||||||||
| Earnings on bank owned life insurance | 167 | 153 | 486 | 857 | ||||||||||
| Investment advisory fees | - | 114 | - | 343 | ||||||||||
| Unrealized gain (loss) on equity securities | 547 | (430 | ) | 445 | (327 | ) | ||||||||
| Other | 46 | 20 | 90 | 67 | ||||||||||
| Total Non-Interest Income | 1,349 | 221 | 2,634 | 2,357 | ||||||||||
| NON-INTEREST EXPENSES: | ||||||||||||||
| Salaries and employee benefits | 5,135 | 4,700 | 15,738 | 14,079 | ||||||||||
| Occupancy expense | 735 | 616 | 2,116 | 1,890 | ||||||||||
| Equipment | 187 | 240 | 661 | 844 | ||||||||||
| Outside data processing | 681 | 569 | 1,924 | 1,638 | ||||||||||
| Advertising | 128 | 133 | 310 | 420 | ||||||||||
| Real estate owned expense | 488 | 11 | 527 | 52 | ||||||||||
| Other | 2,607 | 2,646 | 7,864 | 7,064 | ||||||||||
| Total Non-Interest Expenses | 9,961 | 8,915 | 29,140 | 25,987 | ||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 17,569 | 16,279 | 51,274 | 47,588 | ||||||||||
| PROVISION FOR INCOME TAXES | 4,883 | 4,436 | 14,416 | 13,413 | ||||||||||
| NET INCOME | $ | 12,686 | $ | 11,843 | $ | 36,858 | $ | 34,175 | ||||||
| NORTHEAST COMMUNITY BANCORP, INC. | |||||||||||||||
| SELECTED CONSOLIDATED FINANCIAL DATA | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (In thousands, except per share amounts) | (In thousands, except per share amounts) | ||||||||||||||
| Per share data: | |||||||||||||||
| Earnings per share - basic | $ | 0.97 | $ | 0.80 | $ | 2.81 | $ | 2.42 | |||||||
| Earnings per share - diluted | 0.95 | 0.80 | 2.78 | 2.41 | |||||||||||
| Weighted average shares outstanding - basic | 13,075 | 14,743 | 13,108 | 14,143 | |||||||||||
| Weighted average shares outstanding - diluted | 13,417 | 14,822 | 13,279 | 14,192 | |||||||||||
| Performance ratios/data: | |||||||||||||||
| Return on average total assets | 2.62 | % | 2.87 | % | 2.61 | % | 2.95 | % | |||||||
| Return on average shareholders' equity | 16.48 | % | 17.26 | % | 16.55 | % | 16.95 | % | |||||||
| Net interest income | $ | 26,286 | $ | 25,129 | $ | 77,494 | $ | 71,985 | |||||||
| Net interest margin | 5.68 | % | 6.40 | % | 5.74 | % | 6.54 | % | |||||||
| Efficiency ratio | 36.04 | % | 35.17 | % | 36.37 | % | 34.96 | % | |||||||
| Net charge-off ratio | 0.02 | % | 0.02 | % | 0.01 | % | 0.03 | % | |||||||
| Loan portfolio composition: | September 30, 2024 | December 31, 2023 | |||||||||||||
| One-to-four family | $ | 3,507 | $ | 5,252 | |||||||||||
| Multi-family | 202,516 | 198,927 | |||||||||||||
| Mixed-use | 28,399 | 29,643 | |||||||||||||
| Total residential real estate | 234,422 | 233,822 | |||||||||||||
| Non-residential real estate | 30,312 | 21,130 | |||||||||||||
| Construction | 1,368,222 | 1,219,413 | |||||||||||||
| Commercial and industrial | 125,520 | 111,116 | |||||||||||||
| Consumer | 2,028 | 1,240 | |||||||||||||
| Gross loans | 1,760,504 | 1,586,721 | |||||||||||||
| Deferred loan (fees) costs, net | (245 | ) | 176 | ||||||||||||
| Total loans | $ | 1,760,259 | $ | 1,586,897 | |||||||||||
| Asset quality data: | |||||||||||||||
| Loans past due over 90 days and still accruing | $ | - | $ | - | |||||||||||
| Non-accrual loans | 4,413 | 4,385 | |||||||||||||
| OREO property | 978 | 1,456 | |||||||||||||
| Total non-performing assets | $ | 5,391 | $ | 5,841 | |||||||||||
| Allowance for credit losses to total loans | 0.27 | % | 0.32 | % | |||||||||||
| Allowance for credit losses to non-performing loans | 109.52 | % | 116.15 | % | |||||||||||
| Non-performing loans to total loans | 0.25 | % | 0.28 | % | |||||||||||
| Non-performing assets to total assets | 0.27 | % | 0.33 | % | |||||||||||
| Bank's Regulatory Capital ratios: | |||||||||||||||
| Total capital to risk-weighted assets | 14.04 | % | 14.11 | % | |||||||||||
| Common equity tier 1 capital to risk-weighted assets | 13.76 | % | 13.78 | % | |||||||||||
| Tier 1 capital to risk-weighted assets | 13.76 | % | 13.78 | % | |||||||||||
| Tier 1 leverage ratio | 14.76 | % | 16.21 | % | |||||||||||
| NORTHEAST COMMUNITY BANCORP, INC. | |||||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | ||||||||||||||||||||
| 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 | $ | 1,717,875 | $ | 39,484 | 9.19 | % | $ | 1,446,946 | $ | 33,757 | 9.33 | % | |||||||||
| Securities | 34,920 | 212 | 2.43 | % | 33,754 | 181 | 2.14 | % | |||||||||||||
| Federal Home Loan Bank stock | 712 | 15 | 8.43 | % | 929 | 18 | 7.75 | % | |||||||||||||
| Other interest-earning assets | 98,903 | 1,472 | 5.95 | % | 88,156 | 1,181 | 5.36 | % | |||||||||||||
| Total interest-earning assets | 1,852,410 | 41,183 | 8.89 | % | 1,569,785 | 35,137 | 8.95 | % | |||||||||||||
| Allowance for credit losses | (4,914 | ) | (4,404 | ) | |||||||||||||||||
| Non-interest-earning assets | 90,313 | 85,133 | |||||||||||||||||||
| Total assets | $ | 1,937,809 | $ | 1,650,514 | |||||||||||||||||
| Interest-bearing demand deposit | $ | 228,975 | $ | 2,423 | 4.23 | % | $ | 78,768 | $ | 522 | 2.65 | % | |||||||||
| Savings and club accounts | 140,047 | 848 | 2.42 | % | 235,613 | 1,624 | 2.76 | % | |||||||||||||
| Certificates of deposit | 946,290 | 11,359 | 4.80 | % | 707,142 | 7,743 | 4.38 | % | |||||||||||||
| Total interest-bearing deposits | 1,315,312 | 14,630 | 4.45 | % | 1,021,523 | 9,889 | 3.87 | % | |||||||||||||
| Borrowed money | 23,603 | 267 | 4.52 | % | 15,631 | 119 | 3.05 | % | |||||||||||||
| Total interest-bearing liabilities | 1,338,915 | 14,897 | 4.45 | % | 1,037,154 | 10,008 | 3.86 | % | |||||||||||||
| Non-interest-bearing demand deposit | 271,207 | 322,213 | |||||||||||||||||||
| Other non-interest-bearing liabilities | 19,758 | 16,694 | |||||||||||||||||||
| Total liabilities | 1,629,880 | 1,376,061 | |||||||||||||||||||
| Equity | 307,929 | 274,453 | |||||||||||||||||||
| Total liabilities and equity | $ | 1,937,809 | $ | 1,650,514 | |||||||||||||||||
| Net interest income / interest spread | $ | 26,286 | 4.44 | % | $ | 25,129 | 5.09 | % | |||||||||||||
| Net interest rate margin | 5.68 | % | 6.40 | % | |||||||||||||||||
| Net interest earning assets | $ | 513,495 | $ | 532,631 | |||||||||||||||||
| Average interest-earning assets | |||||||||||||||||||||
| to interest-bearing liabilities | 138.35 | % | 151.36 | % | |||||||||||||||||
| NORTHEAST COMMUNITY BANCORP, INC. | |||||||||||||||||||||
| NET INTEREST MARGIN ANALYSIS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | ||||||||||||||||||||
| 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 | $ | 1,672,582 | $ | 114,821 | 9.15 | % | $ | 1,353,446 | $ | 91,826 | 9.05 | % | |||||||||
| Securities | 34,071 | 607 | 2.38 | % | 39,375 | 589 | 1.99 | % | |||||||||||||
| Federal Home Loan Bank stock | 752 | 55 | 9.75 | % | 1,002 | 61 | 8.12 | % | |||||||||||||
| Other interest-earning assets | 93,417 | 4,058 | 5.79 | % | 74,308 | 2,886 | 5.18 | % | |||||||||||||
| Total interest-earning assets | 1,800,822 | 119,541 | 8.85 | % | 1,468,131 | 95,362 | 8.66 | % | |||||||||||||
| Allowance for credit losses | (4,977 | ) | (4,640 | ) | |||||||||||||||||
| Non-interest-earning assets | 90,087 | 83,200 | |||||||||||||||||||
| Total assets | $ | 1,885,932 | $ | 1,546,691 | |||||||||||||||||
| Interest-bearing demand deposit | $ | 202,097 | $ | 6,300 | 4.16 | % | $ | 84,920 | $ | 1,433 | 2.25 | % | |||||||||
| Savings and club accounts | 160,296 | 3,032 | 2.52 | % | 262,977 | 5,373 | 2.72 | % | |||||||||||||
| Certificates of deposit | 880,741 | 31,127 | 4.71 | % | 567,378 | 16,244 | 3.82 | % | |||||||||||||
| Total interest-bearing deposits | 1,243,134 | 40,459 | 4.34 | % | 915,275 | 23,050 | 3.36 | % | |||||||||||||
| Borrowed money | 43,916 | 1,588 | 4.82 | % | 16,216 | 327 | 2.69 | % | |||||||||||||
| Total interest-bearing liabilities | 1,287,050 | 42,047 | 4.36 | % | 931,491 | 23,377 | 3.35 | % | |||||||||||||
| Non-interest-bearing demand deposit | 282,786 | 329,993 | |||||||||||||||||||
| Other non-interest-bearing liabilities | 19,163 | 16,373 | |||||||||||||||||||
| Total liabilities | 1,588,999 | 1,277,857 | |||||||||||||||||||
| Equity | 296,933 | 268,834 | |||||||||||||||||||
| Total liabilities and equity | $ | 1,885,932 | $ | 1,546,691 | |||||||||||||||||
| Net interest income / interest spread | $ | 77,494 | 4.49 | % | $ | 71,985 | 5.31 | % | |||||||||||||
| Net interest rate margin | 5.74 | % | 6.54 | % | |||||||||||||||||
| Net interest earning assets | $ | 513,772 | $ | 536,640 | |||||||||||||||||
| Average interest-earning assets | |||||||||||||||||||||
| to interest-bearing liabilities | 139.92 | % | 157.61 | % | |||||||||||||||||
FAQ
What was NorthEast Community Bancorp's (NECB) net income for Q3 2024?
How much did NECB's total assets grow in Q3 2024?
What was NECB's net interest margin in Q3 2024?
How much did NECB's loan portfolio grow in Q3 2024?
