NECB · Northeast Community Bancorp, Inc.

NorthEast Community Bancorp, Inc. reported solid Q1 2026 results with net income of $10.0 million, reflecting a slight decline from $10.6 million in Q1 2025, driven by a 5.9% drop in total interest and dividend income to $36.0 million due to a 61 basis point decrease in yield on interest-earning assets to 7.44%, despite a modest 1.9% increase in average balances. Interest expense fell more sharply by 15.1% to $11.8 million, aided by a 58 basis point reduction in cost of funds to 3.47% and lower average interest-bearing liabilities, resulting in a net interest margin contraction to 4.99% from 5.11%. Non-interest income dropped 35.5% to $796,000, primarily from an unrealized loss on equity securities versus a prior gain, while non-interest expense rose 2.4% to $10.9 million. No credit loss expense was recorded, contrasting with $237,000 last year, underscoring pristine asset quality with zero non-performing loans and assets. Balance sheet showed total assets at $2.0 billion, down 1.9% QoQ, with net loans at $1.8 billion after $31.8 million reduction mainly from construction and multi-family pay-downs, offset by $266.1 million in originations led by $244.2 million in construction loans. Deposits grew 0.6% to $1.6 billion, boosted by NOW/money market and non-interest bearing, while borrowings plunged 71.4% to $20.0 million as part of cost reduction strategy. CEO Kenneth A. Martinek highlighted robust construction lending demand in Bronx, Rockland, Orange, and Sullivan Counties, with commitments up 37.8% YoY and 20.6% QoQ to over $819 million unfunded, signaling growth potential. Performance metrics remained strong: ROA 1.97%, ROE 11.13%, efficiency 43.64%. Equity rose 1.3% to $356.3 million, supporting capital returns via $2.7 million dividends and $3.6 million repurchases.