NorthEast Community Bancorp reported net income of $9.8 million, or $0.75 per basic share and $0.72 per diluted share, for the quarter ended June 30, 2026, down from $11.2 million a year earlier. For the six months ended June 30, 2026 the company reported net income of $19.7 million, or $1.50 per basic share and $1.46 per diluted share, versus $21.7 million in the prior-year period. The quarter reflected a $860,000 provision for credit losses and a net interest margin of 5.14%.

Financial Highlights

  • Net income (Q2 2026): $9.8 million; basic EPS $0.75; diluted EPS $0.72 (Q2 2025: $11.2 million; basic $0.85; diluted $0.82).
  • Net income (six months 2026): $19.7 million; basic EPS $1.50; diluted EPS $1.46 (six months 2025: $21.7 million; basic $1.65; diluted $1.60).
  • Net interest income (Q2 2026): $24.65 million; net interest margin 5.14% (Q2 2025: $25.07 million; NIM 5.35%).
  • Provision for credit losses (Q2 2026): $860,000 (comprised of $680,000 loans, $171,000 off-balance sheet commitments, $9,000 held-to-maturity securities).
  • Total assets at June 30, 2026: $2,115.2 million; total stockholders’ equity: $362.6 million (17.14% of assets).

Business Highlights

  • Construction lending remained a primary focus; construction loan balances increased by $67.2 million year-over-year and total construction commitments and loans-in-process rose ~38.9% versus Q2 2025, with over $883 million in unfunded commitments at June 30, 2026.
  • Loan origination activity for the six months included $653.2 million of loans (commitments and funded): $606.7 million construction, $25.1 million commercial & industrial, $20.8 million multi-family, and $0.7 million mixed-use.
  • Deposit mix shifted: total deposits down $80.4 million (5.0%) from December 31, 2025, driven by a $190.8 million decline in certificates of deposit and increases in NOW/money market and non-interest bearing accounts.
  • Management executed funding strategy changes to reduce cost of funds—calling higher-rate brokered and listing service CDs and increasing borrowings (borrowings up $120.0 million to $190.0 million) to lessen reliance on brokered deposits.
  • Asset quality remained strong with no non-performing loans or assets at June 30, 2026; allowance for credit losses on loans was $4.8 million (0.25% of total loans).

Original SEC Filing:

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