NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”),
the parent holding company of NorthEast Community Bank (the
“Bank”), reported net income of $11.1 million and $22.3 million, or
$0.75 and $1.56 per basic and diluted common share, for the three
months and six months ended June 30, 2023 compared to net income of
$5.4 million and $9.0 million, or $0.35 and $0.58 per basic and
diluted common share for the three months and six months ended June
30, 2022.
Kenneth A. Martinek, NorthEast Community Bancorp’s 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
continued increases in interest rates during 2023, loan demand
remained strong with originations and outstanding commitments
remaining robust. As has been in the past, construction lending for
affordable housing units in high demand-high absorption areas
continues to be our focus.”
Highlights for the three months and six months ended June 30,
2023 are as follows:
- Net income increased by $5.7
million and $13.3 million, or 105.6% and 147.1%, for the three
months and six months ended June 30, 2023 compared to the same
periods in the prior year.
- Net interest income increased by
$10.5 million and $21.4 million, or 77.4% and 84.0%, for the three
months and six months ended June 30, 2023 compared to the same
periods in 2022.
- Our commitments, loans-in-process,
and standby letters of credit outstanding totaled $815.8 million at
June 30, 2023 compared to $948.7 million at December 31, 2022.
Balance Sheet Summary
Total assets increased by $190.7 million, or 13.4%, to $1.6
billion at June 30, 2023, from $1.4 billion at December 31,
2022. The increase in assets was primarily due to an increase in
net loans of $175.2 million and an increase in cash and cash
equivalents of $24.6 million, partially offset by a decrease in
Federal Home Loan Bank advances of $7.0 million and a decrease in
bank owned life insurance of $1.1 million.
Cash and cash equivalents increased by $24.6 million, or 25.8%,
to $119.9 million at June 30, 2023 from $95.3 million at
December 31, 2022. The increase in cash and cash equivalents was a
result of increases in deposits of $193.9 million, partially offset
by a reduction in FHLB advances of $7.0 million, and stock
repurchases of $14.3 million.
Equity securities increased by $102,000, or 0.6%, to $18.1
million at June 30, 2023 from $18.0 million at December 31, 2022.
The increase in equity securities was attributable to market
appreciation of $102,000 due to market interest rate volatility
during the six months ended June 30, 2023.
Securities held-to-maturity decreased by $10.6 million, or
40.2%, to $15.8 million at June 30, 2023 from $26.4 million at
December 31, 2022 due to the maturity of $10.0 million in U.S.
Treasury holdings, the establishment of $135,000 in an allowance
for credit losses for held-to-maturity securities, and to
maturities and pay-downs of various investment securities.
The allowance for credit losses for held-to-maturity securities
totaling $135,000 was established pursuant to the adoption of the
current expected credit losses model (“CECL”) on held-to-maturity
investment securities loss exposures. In this regard, we recognized
a one-time credit of $132,000 due to the adoption of CECL at
January 1, 2023 and credit loss expense totaling $3,000 during the
six months ended June 30, 2023.
Loans, net of the allowance for credit losses, increased by
$175.2 million, or 14.5%, to $1.4 billion at June 30, 2023
from $1.2 billion at December 31, 2022. The
increase in loans, net of the allowance for credit losses, was
primarily due to loan originations of $448.0 million during the six
months ended June 30, 2023, consisting primarily of $405.6 million
in construction loans with respect to which approximately 42.5% of
the funds were disbursed at loan closings, with the remaining funds
to be disbursed over the terms of the construction loans. In
addition, we originated $20.9 million in commercial and industrial
loans, $13.3 million in multi-family loans, and $8.2 million in
mixed-use loans.
Loan originations resulted in a net increase of $168.1 million
in construction loans, $7.0 million in mixed-use loans, $4.0
million in commercial and industrial loans, and $184,000 in
consumer loans. The increase in our loan portfolio was partially
offset by decreases in non-residential loans of $4.5 million,
$409,000 in multi-family loans, and $116,000 in residential loans,
coupled with normal pay-downs and principal reductions.
The allowance for credit losses related to loans decreased to
$4.4 million as of June 30, 2023 from $5.5 million as of December
31, 2022. The decrease in the allowance for credit losses related
to loans was due to a one-time decrease of $1.6 million due to the
adoption of CECL at January 1, 2023 and charge-offs of $214,000,
partially offset by provision for credit losses totaling
$725,000.
Premises and equipment decreased by $417,000, or 1.6%, to $25.6
million at June 30, 2023 from $26.1 million at December 31, 2022
primarily due to depreciation of fixed assets.
Investments in Federal Home Loan Bank stock decreased by
$309,000, or 25.0%, to $929,000 at June 30, 2023 from $1.2 million
at December 31, 2022 due primarily to a reduction in mandatory
Federal Home Loan Bank stock in connection with the maturity of
$7.0 million in advances during the six months ended June 30,
2023.
Bank owned life insurance (“BOLI”) decreased by $1.1 million, or
4.3%, to $24.8 million at June 30, 2023 from $25.9 million at
December 31, 2022 due to two death claims totaling $1.8 million on
BOLI policies, partially offset by increases in the BOLI cash
value.
Accrued interest receivable increased by $1.9 million, or 22.5%,
to $10.5 million at June 30, 2023 from $8.6 million at December 31,
2022 due to an increase in the loan portfolio and three interest
rate increases in 2023 that resulted in an increase in the interest
rates on loans in our construction loan portfolio.
Foreclosed real estate was $1.5 million at June 30, 2023 and
December 31, 2022.
Right of use assets — operating decreased by $257,000, or 11.1%,
to $2.1 million at June 30, 2023 from $2.3 million at
December 31, 2022, primarily due to amortization.
Other assets increased by $1.7 million, or 31.2%, to
$7.0 million at June 30, 2023 from $5.3 million at
December 31, 2022 due to an increase in tax assets of $2.0 million,
partially offset by a decrease in suspense accounts of $320,000 and
a decrease in prepaid expense of $6,000.
Total deposits increased by $193.9 million, or 17.3%, to
$1.3 billion at June 30, 2023 from $1.1 billion at December
31, 2022. The increase was primarily due to an increase in
certificates of deposit of $282.6 million, or 73.7%, partially
offset by decreases in non-interest bearing demand deposits of
$47.1 million, or 12.5 %, savings account balances of $32.0
million, or 11.7%, and NOW/money market accounts of $9.8 million,
or 11.1%.
Federal Home Loan Bank advances decreased by $7.0 million, or
33.3%, to $14.0 million at June 30, 2023 from $21.0 million at
December 31, 2022 due to maturity of borrowings.
Advance payments by borrowers for taxes and insurance decreased
by $216,000, or 9.1%, to $2.2 million at June 30, 2023 from $2.4
million at December 31, 2022 due primarily to real estate tax
payments remitted by the Bank on behalf of borrowers.
Lease liability – operating decreased by $254,000, or 10.7%, to
$2.1 million at June 30, 2023 from $2.4 million at December 31,
2022, primarily due to repayments.
Accounts payable and accrued expenses decreased by $3.3 million,
or 22.3%, to $11.5 million at June 30, 2023 from $14.8 million at
December 31, 2022 due primarily to a decrease in suspense account
for loan closings of $2.7 million and a decrease in accrued bonus
expense of $2.2 million for employees, partially offset by an
increase in the allowance for credit losses for off-balance sheet
commitments totaling $1.5 million.
The allowance for credit losses for off-balance sheet
commitments was $1.5 million at June 30, 2023 due to a one-time
credit of $1.6 million resulting from the adoption of CECL at
January 1, 2023, partially offset by a credit loss expense
reduction totaling $117,000 during the six months ended June 30,
2023.
Stockholders’ equity increased by $7.6 million, or 2.9% to
$269.6 million at June 30, 2023, from $262.0 million at
December 31, 2022. The increase in stockholders’ equity was due to
net income of $22.3 million for the six months ended June 30,
2023, $865,000 in the amortization of restricted stock and stock
options granted in connection with the 2022 Equity Incentive Plan,
a reduction of $435,000 in unearned employee stock ownership plan
shares coupled with an increase of $185,000 in earned employee
stock ownership plan shares, and $15,000 in other comprehensive
income, partially offset by stock repurchases totaling $14.3
million, dividends paid and declared of $1.7 million, and a
one-time adjustment to retained earnings of $99,000 due to the
adoption of CECL.
Net Interest Income
Net interest income totaled $24.0 million for
the three months ended June 30, 2023, as compared to
$13.5 million for the three months ended June 30, 2022.
The increase in net interest income of $10.5 million, or 77.4%, was
primarily due to an increase in interest income offset by an
increase in interest expense.
The increase in interest income is attributable to increases in
loans and interest-bearing deposits, partially offset by a decrease
in investment securities. The increase in interest income is also
attributable to a rising interest rate environment due to the
Federal Reserve’s interest rate increases in the past year.
The increase in market interest rates in the past year also
caused an increase in our interest expense. As a result, the
increase in interest expense for the three months ended June 30,
2023 was due to an increase in the cost of funds on our deposits,
partially offset by a decrease in the cost of our borrowed money.
The increase in interest expense was also due to an increase in the
balances on our certificates of deposits and an increase in the
balances on our savings and club deposits, offset by a decrease in
the balances on our interest-bearing demand deposits and a decrease
in the balances of our borrowed money.
Total interest and dividend income increased by $16.9 million,
or 113.7%, to $31.7 million for the three months ended June 30,
2023 from $14.8 million for the three months ended June 30, 2022.
The increase in interest and dividend income was due to an increase
in the average balance of interest earning assets of $273.6
million, or 23.2%, to $1.5 billion for the three months ended June
30, 2023 from $1.2 billion for the three months ended June 30, 2022
and an increase in the yield on interest earning assets by 370
basis points from 5.02% for the three months ended June 30, 2022 to
8.72% for the three months ended June 30, 2023.
Interest expense increased by $6.4 million, or 493.8%, to $7.7
million for the three months ended June 30, 2023 from $1.3 million
for the three months ended June 30, 2022. The increase in interest
expense was due to an increase in the cost of interest bearing
liabilities by 248 basis points from 0.84% for the three months
ended June 30, 2022 to 3.32% for the three months ended June 30,
2023 and an increase in average interest bearing liabilities of
$314.3 million, or 51.2%, to $928.0 million for the three months
ended June 30, 2023 from $613.6 million for the three months ended
June 30, 2022.
Net interest margin increased by 202 basis points, or 44.1%,
during the three months ended June 30, 2023 to 6.60% compared to
4.58% during the three months ended June 30, 2022.
Net interest income totaled $46.9 million for the six months
ended June 30, 2023 as compared to $25.5 million for
the six months ended June 30, 2022. The increase in net
interest income of $21.4 million, or 84.0%, was primarily due to an
increase in interest income offset by an increase in interest
expense.
The increase in interest income is attributable to increases in
loans and investment securities, partially offset by a decrease in
interest-bearing deposits. The increase in interest income is also
attributable to a rising interest rate environment as a result of
the Federal Reserve’s interest rate increases during
2023.
The increase in market interest rates in 2023 also caused an
increase in our interest expense. As a result, the increase in
interest expense for the six months ended June 30, 2023 was due to
an increase in the cost of funds on our deposits, partially offset
by a decrease in the cost of our borrowed money. The increase in
interest expense was also due to an increase in the balances on our
certificates of deposits and an increase in the balances of our
savings and club deposits, offset by a decrease in the balances on
our interest-bearing demand deposits, and a decrease in the
balances of our borrowed money.
Total interest and dividend income increased by $32.1 million,
or 114.2%, to $60.2 million for the six months ended June 30, 2023
from $28.1 million for the six months ended June 30, 2022. The
increase in interest and dividend income was due to an increase in
the average balance of interest earning assets of $240.5 million,
or 20.5%, to $1.4 billion for the six months ended June 30, 2023
from $1.2 billion for the six months ended June 30, 2022 and an
increase in the yield on interest earning assets by 372 basis
points from 4.78% for the six months ended June 30, 2022 to 8.50%
for the six months ended June 30, 2023.
Interest expense increased by $10.7 million, or 405.7%, to $13.4
million for the six months ended June 30, 2023 from $2.6 million
for the six months ended June 30, 2022. The increase in interest
expense was due to an increase in the cost of interest bearing
liabilities by 220 basis points from 0.85% for the six months ended
June 30, 2022 to 3.05% for the six months ended June 30, 2023, and
an increase in average interest bearing liabilities of $253.4
million, or 40.6%, to $877.8 million for the six months ended June
30, 2023 from $624.4 million for the six months ended June 30,
2022.
Net interest margin increased by 229 basis points, or 52.9%,
during the six months ended June 30, 2023 to 6.62% compared to
4.33% during the six months ended June 30, 2022.
Credit Loss Expense
The Company recorded credit loss expenses totaling $610,000 for
the three months ended June 30, 2023 compared to no credit loss
expense for the three months ended June 30, 2023. The credit loss
expense of $610,000 for the three months ended June 30, 2023 was
comprised of credit loss expense for loans of $528,000 and credit
loss expense for off-balance sheet commitments of $83,000,
partially offset by credit loss expense reduction for
held-to-maturity investment securities of $1,000.
We charged-off $194,000 during the three months ended June 30,
2023 as compared to charge-offs of $7,000 during the three months
ended June 30, 2022. The charge-offs of $194,000 during the three
months ended June 30, 2023 comprised of a charge-off of $159,000
related to three performing construction loans on the same project
whereby we sold the loans to a third-party subsequent to June 30,
2023 at a loss of $159,000. The remaining charge-offs of $35,000
were against various unpaid overdrafts in our demand deposit
accounts. The charge-offs of $7,000 during the three months ended
June 30, 2022 were against various unpaid overdrafts in our demand
deposit accounts.
We recorded no recoveries from previously charged-off loans
during the three months ended June 30, 2023 compared to recoveries
of $146,000 during the three months ended June 30, 2022 from a
previously charged-off loan secured by a multi-family property.
The Company recorded credit loss expenses totaling $611,000 for
the six months ended June 30, 2023 compared to no credit loss
expense for the six months ended June 30, 2022. The credit loss
expense of $611,000 for the six months ended June 30, 2023 was
comprised of credit loss expense for loans of $725,000 and credit
loss expense for held-to-maturity investment securities of $3,000,
partially offset by a credit loss expense reduction for off-balance
sheet commitments of $117,000.
We charged-off $214,000 during the six months ended June 30,
2023 as compared to charge-offs of $17,000 during the six months
ended June 30, 2022. The charge-offs of $214,000 during the six
months ended June 30, 2023 comprised of a charge-off of $159,000
related to three performing construction loans on the same project
whereby we sold the loans to a third-party subsequent to June 30,
2023 at a loss of $159,000. The remaining charge-offs of $55,000
were against various unpaid overdrafts in our demand deposit
accounts. The charge-offs of $17,000 during the six months ended
June 30, 2022 were against various unpaid overdrafts in our demand
deposit accounts.
We recorded no recoveries from previously charged-off loans
during the six months ended June 30, 2023 compared to recoveries of
$242,000 during the six months ended June 30, 2022, which was
comprised of $146,000 from a previously charged-off loan secured by
a multi-family property, $53,000 from a previously charged-off loan
secured by a non-residential property, and $43,000 regarding a
previously charged-off loan secured by a mixed-use property.
Non-Interest Income
Non-interest income for the three months ended June 30, 2023 was
$1.0 million compared to non-interest income of $536,000 for the
three months ended June 30, 2022. The increase of $484,000, or
90.3%, in total non-interest income was primarily due to an
increase of $403,000 in BOLI income, a decrease of $307,000 in
unrealized loss on equity securities, and an increase of $7,000 in
other non-interest income, partially offset by a decrease of
$180,000 in other loan fees and service charges, a decrease of
$46,000 in gain on sale of fixed assets, and a decrease of $7,000
in investment advisory fees.
The increase in BOLI income was primarily due to two death
claims totaling $1.8 million on BOLI policies that resulted in
additional BOLI income of $404,000 in the three months ended June
30, 2023. The decrease in unrealized loss on equity was due to an
unrealized loss of $123,000 on equity securities during the three
months ended June 30, 2023 compared to an unrealized loss of
$430,000 on equity securities during the three months ended June
30, 2022. The unrealized loss of $123,000 on equity securities
during the three months ended June 30, 2023 was due to market
interest rate volatility during the quarter ended June 30,
2023.
Non-interest income for the six months ended June 30, 2023 was
$2.1 million compared to non-interest income of $594,000 for the
six months ended June 30, 2022. The increase of $1.5 million, or
259.4%, in total non-interest income was primarily due to an
increase of $1.2 million in unrealized gain (loss) on equity
securities, an increase of $407,000 in BOLI income, an increase of
$36,000 in other loan fees and service charges, and an increase of
$6,000 in other non-interest income. These were partially offset by
a decrease of $46,000 in gain on sale of fixed assets and a
decrease of $28,000 in investment advisory fees.
The increase in BOLI income was primarily due to two death
claims totaling $1.8 million on BOLI policies that resulted in
additional BOLI income of $404,000 during the six months ended June
30, 2023. The increase in unrealized gain (loss) on
equity was due to an unrealized gain of $102,000 on equity
securities during the six months ended June 30, 2023 compared to an
unrealized loss of $1.1 million on equity securities during the six
months ended June 30, 2022. The unrealized gain of $102,000 on
equity securities during the 2023 period was due to market interest
rate volatility during the six months ended June 30, 2023.
Non-Interest Expense
Non-interest expense increased by $1.9 million, or 26.7%, to
$8.9 million for the three months ended June 30, 2023
from $7.0 million for the three months ended June 30,
2022. The increase resulted primarily from increases of $1.2
million in salaries and employee benefits, $321,000 in other
operating expense, $187,000 in advertising expense, $75,000 in
outside data processing expense, $43,000 in occupancy expense, and
$24,000 in equipment expense.
Non-interest expense increased by $2.8 million, or 20.0%, to
$17.1 million for the six months ended June 30, 2023 from
$14.2 million for the six months ended June 30, 2022. The
increase resulted primarily from increases of $1.9 million in
salaries and employee benefits, $435,000 in other operating
expense, $183,000 in advertising expense, $154,000 in outside data
processing expense, $108,000 in occupancy expense, and $38,000 in
equipment expense, partially offset by a decrease of $11,000 in
real estate owned expense.
Income Taxes
We recorded income tax expense of $4.5 million and $1.7 million
for the three months ended June 30, 2023 and 2022,
respectively. For the three months ended June 30, 2023, we had
approximately $587,000 in tax exempt income, compared to
approximately $185,000 in tax exempt income for the three
months ended June 30, 2022. Our effective income tax rates were
28.7% and 23.7% for the three months ended June 30, 2023 and
2022, respectively.
We recorded income tax expense of $9.0 million and $2.8 million
for the six months ended June 30, 2023 and 2022, respectively.
For the six months ended June 30, 2023 and 2022, we had
approximately $770,000 and $370,000, respectively, in tax exempt
income. Our effective income tax rates were 28.7% and 23.6% for
the six months ended June 30, 2023 and 2022, respectively.
Asset Quality
Non-performing assets totaled $5.8 million at June 30, 2023
compared to $1.5 million at December 31, 2022. At June 30, 2023, we
had two non-performing construction loans totaling $4.4 million
secured by the same project located in the Bronx, New York. We had
no non-performing loans at December 31, 2022. The other
non-performing assets consisted of one foreclosed property at June
30, 2023 and December 31, 2022. Our ratio of non-performing assets
to total assets remained low at 0.36% at June 30, 2023 and at 0.10%
at December 31, 2022.
The Company’s allowance for credit losses related to loans
totaled $4.4 million, or 0.32% of total loans as of June 30, 2023,
compared to $5.5 million, or 0.45% of total loans as of December
31, 2022. Based on a review of the loans that were in the loan
portfolio at June 30, 2023, management believes that the allowance
for credit losses related to loans is maintained at a level that
represents its best estimate of inherent losses in the loan
portfolio that were both probable and reasonably estimable.
In addition, the Company’s allowance for credit losses related
to off-balance sheet commitments totaled $1.5 million and the
allowance for credit losses related to held-to-maturity debt
securities totaled $135,000 at June 30, 2023.
Capital
The Company’s total stockholders’ equity to assets ratio was
16.68% as of June 30, 2023. At June 30, 2023, the Company had the
ability to borrow $32.6 million from the Federal Home Loan 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 June 30, 2023, the Bank had a tier 1 leverage
capital ratio of 15.75% and a total risk-based capital ratio of
13.99%.
The Company completed its first stock repurchase program on
April 14, 2023 whereby the Company repurchased 1,637,794 shares, or
10%, of the Company’s issued and outstanding common stock. The cost
of the stock repurchase program totaled $23.0 million, including
commission cost and Federal excise taxes. Of the total shares
repurchased, the Company repurchased 957,275 shares at a total cost
of $13.7 million, including commission cost and Federal excise tax,
during 2023.
The Company commenced its second stock repurchase program on May
30, 2023 whereby the Company will repurchase 1,509,218, or 10%, of
the Company’s issued and outstanding common stock. The Company has
repurchased 55,241 shares of the common stock at a cost of
$755,000, including commission cost and Federal excise tax, at June
30, 2023.
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 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) |
| |
|
|
|
|
|
|
| |
|
June 30, |
|
December 31, |
| |
|
2023 |
|
2022 |
| |
|
(In thousands, except share |
| |
|
and per share amounts) |
|
ASSETS |
|
|
|
|
|
|
|
Cash and amounts due from depository institutions |
|
$ |
14,345 |
|
|
$ |
13,210 |
|
|
Interest-bearing deposits |
|
|
105,530 |
|
|
|
82,098 |
|
|
Total cash and cash equivalents |
|
|
119,875 |
|
|
|
95,308 |
|
|
Certificates of deposit |
|
|
100 |
|
|
|
100 |
|
|
Equity securities |
|
|
18,143 |
|
|
|
18,041 |
|
|
Securities available-for-sale, at fair value |
|
|
- |
|
|
|
1 |
|
|
Securities held-to-maturity ( net of allowance for credit losses of
$135 ) |
|
|
15,777 |
|
|
|
26,395 |
|
|
Loans receivable |
|
|
1,391,543 |
|
|
|
1,217,321 |
|
|
Deferred loan costs, net |
|
|
243 |
|
|
|
372 |
|
|
Allowance for credit losses |
|
|
(4,400 |
) |
|
|
(5,474 |
) |
|
Net loans |
|
|
1,387,386 |
|
|
|
1,212,219 |
|
|
Premises and equipment, net |
|
|
25,646 |
|
|
|
26,063 |
|
|
Investments in restricted stock, at cost |
|
|
929 |
|
|
|
1,238 |
|
|
Bank owned life insurance |
|
|
24,772 |
|
|
|
25,896 |
|
|
Accrued interest receivable |
|
|
10,532 |
|
|
|
8,597 |
|
|
Goodwill |
|
|
200 |
|
|
|
200 |
|
|
Real estate owned |
|
|
1,456 |
|
|
|
1,456 |
|
|
Property held for investment |
|
|
1,426 |
|
|
|
1,444 |
|
|
Right of Use Assets – Operating |
|
|
2,055 |
|
|
|
2,312 |
|
|
Right of Use Assets – Financing |
|
|
353 |
|
|
|
355 |
|
|
Other assets |
|
|
7,002 |
|
|
|
5,338 |
|
|
Total assets |
|
$ |
1,615,652 |
|
|
$ |
1,424,963 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
329,236 |
|
|
$ |
376,302 |
|
|
Interest bearing |
|
|
986,580 |
|
|
|
745,653 |
|
|
Total deposits |
|
|
1,315,816 |
|
|
|
1,121,955 |
|
|
Advance payments by borrowers for taxes and insurance |
|
|
2,153 |
|
|
|
2,369 |
|
|
Federal Home Loan Bank advances |
|
|
14,000 |
|
|
|
21,000 |
|
|
Lease Liability – Operating |
|
|
2,109 |
|
|
|
2,363 |
|
|
Lease Liability – Financing |
|
|
552 |
|
|
|
533 |
|
|
Accounts payable and accrued expenses |
|
|
11,462 |
|
|
|
14,754 |
|
|
Total liabilities |
|
|
1,346,092 |
|
|
|
1,162,974 |
|
| |
|
|
|
|
|
|
| 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;
15,036,938 shares and 16,049,454 shares outstanding,
respectively |
|
|
150 |
|
|
|
161 |
|
|
Additional paid-in capital |
|
|
123,054 |
|
|
|
136,434 |
|
|
Unearned Employee Stock Ownership Plan (“ESOP”) shares |
|
|
(6,997 |
) |
|
|
(7,432 |
) |
|
Retained earnings |
|
|
153,182 |
|
|
|
132,670 |
|
|
Accumulated other comprehensive gain |
|
|
171 |
|
|
|
156 |
|
|
Total stockholders’ equity |
|
|
269,560 |
|
|
|
261,989 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
1,615,652 |
|
|
$ |
1,424,963 |
|
| |
|
|
|
|
|
|
|
|
| |
|
NORTHEAST COMMUNITY
BANCORP, INC.CONSOLIDATED STATEMENTS OF
INCOME(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
| |
|
(In thousands, except per share amounts) |
| INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
30,494 |
|
|
$ |
14,412 |
|
|
$ |
58,069 |
|
|
$ |
27,473 |
|
|
Interest-earning deposits |
|
|
219 |
|
|
|
249 |
|
|
|
452 |
|
|
|
304 |
|
|
Securities |
|
|
1,001 |
|
|
|
177 |
|
|
|
1,705 |
|
|
|
335 |
|
|
Total Interest Income |
|
|
31,714 |
|
|
|
14,838 |
|
|
|
60,226 |
|
|
|
28,112 |
|
| INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
7,609 |
|
|
|
1,160 |
|
|
|
13,161 |
|
|
|
2,337 |
|
|
Borrowings |
|
|
78 |
|
|
|
127 |
|
|
|
190 |
|
|
|
288 |
|
|
Financing lease |
|
|
9 |
|
|
|
9 |
|
|
|
19 |
|
|
|
19 |
|
|
Total Interest Expense |
|
|
7,696 |
|
|
|
1,296 |
|
|
|
13,370 |
|
|
|
2,644 |
|
|
Net Interest Income |
|
|
24,018 |
|
|
|
13,542 |
|
|
|
46,856 |
|
|
|
25,468 |
|
| Credit loss
expenses |
|
|
610 |
|
|
|
— |
|
|
|
611 |
|
|
|
— |
|
|
Net Interest Income after Credit Loss Expense |
|
|
23,408 |
|
|
|
13,542 |
|
|
|
46,245 |
|
|
|
25,468 |
|
| NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loan fees and service charges |
|
|
447 |
|
|
|
627 |
|
|
|
1,054 |
|
|
|
1,018 |
|
|
Gain on disposition of equipment |
|
|
- |
|
|
|
46 |
|
|
|
- |
|
|
|
46 |
|
|
Earnings on bank owned life insurance |
|
|
553 |
|
|
|
150 |
|
|
|
704 |
|
|
|
297 |
|
|
Investment advisory fees |
|
|
113 |
|
|
|
120 |
|
|
|
229 |
|
|
|
257 |
|
|
Realized and unrealized gain (loss) on equity securities |
|
|
(123 |
) |
|
|
(430 |
) |
|
|
102 |
|
|
|
(1,064 |
) |
|
Other |
|
|
30 |
|
|
|
23 |
|
|
|
46 |
|
|
|
40 |
|
|
Total Non-Interest Income |
|
|
1,020 |
|
|
|
536 |
|
|
|
2,135 |
|
|
|
594 |
|
| NON-INTEREST
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
4,837 |
|
|
|
3,613 |
|
|
|
9,378 |
|
|
|
7,441 |
|
|
Occupancy expense |
|
|
605 |
|
|
|
562 |
|
|
|
1,274 |
|
|
|
1,166 |
|
|
Equipment |
|
|
300 |
|
|
|
276 |
|
|
|
604 |
|
|
|
566 |
|
|
Outside data processing |
|
|
554 |
|
|
|
479 |
|
|
|
1,069 |
|
|
|
915 |
|
|
Advertising |
|
|
238 |
|
|
|
51 |
|
|
|
288 |
|
|
|
105 |
|
|
Real estate owned expense |
|
|
21 |
|
|
|
21 |
|
|
|
41 |
|
|
|
52 |
|
|
Other |
|
|
2,326 |
|
|
|
2,005 |
|
|
|
4,417 |
|
|
|
3,982 |
|
|
Total Non-Interest Expenses |
|
|
8,881 |
|
|
|
7,007 |
|
|
|
17,071 |
|
|
|
14,227 |
|
| INCOME BEFORE
PROVISION FOR INCOME TAXES |
|
|
15,547 |
|
|
|
7,071 |
|
|
|
31,309 |
|
|
|
11,835 |
|
| PROVISION FOR INCOME
TAXES |
|
|
4,460 |
|
|
|
1,678 |
|
|
|
8,978 |
|
|
|
2,797 |
|
| NET
INCOME |
|
$ |
11,087 |
|
|
$ |
5,393 |
|
|
$ |
22,331 |
|
|
$ |
9,038 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
NORTHEAST COMMUNITY
BANCORP, INC.SELECTED CONSOLIDATED FINANCIAL
DATA(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
| |
|
(In thousands, except per share amounts) |
| Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
|
$ |
0.75 |
|
|
$ |
0.35 |
|
|
$ |
1.56 |
|
|
$ |
0.58 |
|
|
Earnings per share - diluted |
|
|
0.75 |
|
|
|
0.35 |
|
|
|
1.56 |
|
|
|
0.58 |
|
|
Weighted average shares outstanding - basic |
|
|
14,700 |
|
|
|
15,544 |
|
|
|
14,322 |
|
|
|
15,534 |
|
|
Weighted average shares outstanding - diluted |
|
|
14,731 |
|
|
|
15,544 |
|
|
|
14,361 |
|
|
|
15,534 |
|
| Performance
ratios/data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average total assets |
|
|
2.89 |
% |
|
|
1.72 |
% |
|
|
2.91 |
% |
|
|
1.45 |
% |
|
Return on average shareholders' equity |
|
|
16.61 |
% |
|
|
8.42 |
% |
|
|
16.73 |
% |
|
|
7.09 |
% |
|
Net interest income |
|
$ |
24,018 |
|
|
$ |
13,542 |
|
|
$ |
46,856 |
|
|
$ |
25,468 |
|
|
Net interest margin |
|
|
6.60 |
% |
|
|
4.58 |
% |
|
|
6.62 |
% |
|
|
4.33 |
% |
|
Efficiency ratio |
|
|
35.47 |
% |
|
|
49.77 |
% |
|
|
34.85 |
% |
|
|
54.59 |
% |
|
Net charge-off ratio |
|
|
0.06 |
% |
|
|
(0.01 |
)% |
|
|
0.03 |
% |
|
|
(0.02 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan portfolio
composition: |
|
|
|
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
|
One-to-four family |
|
|
|
|
|
|
|
$ |
5,351 |
|
|
$ |
5,467 |
|
|
Multi-family |
|
|
|
|
|
|
|
|
122,976 |
|
|
|
123,385 |
|
|
Mixed-use |
|
|
|
|
|
|
|
|
28,890 |
|
|
|
21,902 |
|
|
Total residential real estate |
|
|
|
|
|
|
|
|
157,217 |
|
|
|
150,754 |
|
|
Non-residential real estate |
|
|
|
|
|
|
|
|
20,805 |
|
|
|
25,324 |
|
|
Construction |
|
|
|
|
|
|
|
|
1,098,756 |
|
|
|
930,628 |
|
|
Commercial and industrial |
|
|
|
|
|
|
|
|
114,035 |
|
|
|
110,069 |
|
|
Consumer |
|
|
|
|
|
|
|
|
730 |
|
|
|
546 |
|
|
Gross loans |
|
|
|
|
|
|
|
|
1,391,543 |
|
|
|
1,217,321 |
|
|
Deferred loan costs, net |
|
|
|
|
|
|
|
|
243 |
|
|
|
372 |
|
|
Total loans |
|
|
|
|
|
|
|
$ |
1,391,786 |
|
|
$ |
1,217,693 |
|
| Asset quality
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due over 90 days and still accruing |
|
|
|
|
|
|
|
$ |
- |
|
|
$ |
- |
|
|
Non-accrual loans |
|
|
|
|
|
|
|
|
4,353 |
|
|
|
- |
|
|
OREO property |
|
|
|
|
|
|
|
|
1,456 |
|
|
|
1,456 |
|
| Total non-performing
assets |
|
|
|
|
|
|
|
$ |
5,809 |
|
|
$ |
1,456 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses to
total loans |
|
|
|
|
|
|
|
|
0.32 |
% |
|
|
0.45 |
% |
| Allowance for credit losses to
non-performing loans |
|
|
|
|
|
|
|
|
101.08 |
% |
|
|
NA |
|
| Non-performing loans to total
loans |
|
|
|
|
|
|
|
|
0.31 |
% |
|
|
0.00 |
% |
| Non-performing assets to total
assets |
|
|
|
|
|
|
|
|
0.36 |
% |
|
|
0.10 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Bank's Regulatory
Capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to risk-weighted assets |
|
|
|
|
|
|
|
|
13.99 |
% |
|
|
13.66 |
% |
|
Common equity tier 1 capital to risk-weighted assets |
|
|
|
|
|
|
|
|
13.64 |
% |
|
|
13.33 |
% |
|
Tier 1 capital to risk-weighted assets |
|
|
|
|
|
|
|
|
13.64 |
% |
|
|
13.33 |
% |
|
Tier 1 leverage ratio |
|
|
|
|
|
|
|
|
15.75 |
% |
|
|
16.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
NORTHEAST COMMUNITY BANCORP, INC.NET
INTEREST MARGIN ANALYSIS(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended June 30, 2023 |
|
Three Months Ended June 30, 2022 |
| |
|
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
| |
|
Balance |
|
and dividend |
|
Yield |
|
Balance |
|
and dividend |
|
Yield |
| |
|
(In thousands, except yield/cost
information) |
|
Loan receivable gross |
|
$ |
1,341,597 |
|
|
$ |
30,494 |
|
|
9.09 |
% |
|
$ |
997,983 |
|
|
$ |
14,412 |
|
|
5.78 |
% |
| Securities |
|
|
39,967 |
|
|
|
198 |
|
|
1.98 |
% |
|
|
42,641 |
|
|
|
160 |
|
|
1.50 |
% |
| Federal Home Loan Bank
stock |
|
|
928 |
|
|
|
21 |
|
|
9.05 |
% |
|
|
1,239 |
|
|
|
17 |
|
|
5.49 |
% |
| Other interest-earning
assets |
|
|
72,991 |
|
|
|
1,001 |
|
|
5.49 |
% |
|
|
139,978 |
|
|
|
249 |
|
|
0.71 |
% |
|
Total interest-earning assets |
|
|
1,455,483 |
|
|
|
31,714 |
|
|
8.72 |
% |
|
|
1,181,841 |
|
|
|
14,838 |
|
|
5.02 |
% |
| Allowance for loan losses |
|
|
(4,070 |
) |
|
|
|
|
|
|
|
|
(5,333 |
) |
|
|
|
|
|
|
| Non-interest-earning
assets |
|
|
83,521 |
|
|
|
|
|
|
|
|
|
77,693 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,534,934 |
|
|
|
|
|
|
|
|
$ |
1,254,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand
deposit |
|
$ |
85,919 |
|
|
$ |
483 |
|
|
2.25 |
% |
|
$ |
115,097 |
|
|
$ |
190 |
|
|
0.66 |
% |
| Savings and club accounts |
|
|
267,368 |
|
|
|
1,836 |
|
|
2.75 |
% |
|
|
214,840 |
|
|
|
354 |
|
|
0.66 |
% |
| Certificates of deposit |
|
|
560,702 |
|
|
|
5,290 |
|
|
3.77 |
% |
|
|
262,703 |
|
|
|
616 |
|
|
0.94 |
% |
|
Total interest-bearing deposits |
|
|
913,989 |
|
|
|
7,609 |
|
|
3.33 |
% |
|
|
592,640 |
|
|
|
1,160 |
|
|
0.78 |
% |
| Borrowed money |
|
|
14,000 |
|
|
|
87 |
|
|
2.49 |
% |
|
|
21,000 |
|
|
|
136 |
|
|
2.59 |
% |
|
Total interest-bearing liabilities |
|
|
927,989 |
|
|
|
7,696 |
|
|
3.32 |
% |
|
|
613,640 |
|
|
|
1,296 |
|
|
0.84 |
% |
| Non-interest-bearing
demand deposit |
|
|
322,722 |
|
|
|
|
|
|
|
|
|
368,359 |
|
|
|
|
|
|
|
| Other
non-interest-bearing liabilities |
|
|
17,224 |
|
|
|
|
|
|
|
|
|
16,108 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,267,935 |
|
|
|
|
|
|
|
|
|
998,107 |
|
|
|
|
|
|
|
| Equity |
|
|
266,999 |
|
|
|
|
|
|
|
|
|
256,094 |
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
1,534,934 |
|
|
|
|
|
|
|
|
$ |
1,254,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / interest spread |
|
|
|
|
$ |
24,018 |
|
|
5.40 |
% |
|
|
|
|
$ |
13,542 |
|
|
4.18 |
% |
|
Net interest rate margin |
|
|
|
|
|
|
|
|
6.60 |
% |
|
|
|
|
|
|
|
|
4.58 |
% |
|
Net interest earning assets |
|
$ |
527,494 |
|
|
|
|
|
|
|
|
$ |
568,201 |
|
|
|
|
|
|
|
|
Average interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing liabilities |
|
|
156.84 |
% |
|
|
|
|
|
|
|
|
192.60 |
% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
NORTHEAST COMMUNITY BANCORP, INC.NET
INTEREST MARGIN ANALYSIS(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2022 |
| |
|
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
| |
|
Balance |
|
and dividend |
|
Yield |
|
Balance |
|
and dividend |
|
Yield |
| |
|
(In thousands, except yield/cost
information) |
|
Loan receivable gross |
|
$ |
1,305,922 |
|
|
$ |
58,069 |
|
|
8.89 |
% |
|
$ |
993,879 |
|
|
$ |
27,473 |
|
|
5.53 |
% |
| Securities |
|
|
42,232 |
|
|
|
409 |
|
|
1.94 |
% |
|
|
40,128 |
|
|
|
301 |
|
|
1.50 |
% |
| Federal Home Loan Bank
stock |
|
|
1,039 |
|
|
|
43 |
|
|
8.28 |
% |
|
|
1,361 |
|
|
|
34 |
|
|
5.00 |
% |
| Other interest-earning
assets |
|
|
67,269 |
|
|
|
1,705 |
|
|
5.07 |
% |
|
|
140,582 |
|
|
|
304 |
|
|
0.43 |
% |
|
Total interest-earning assets |
|
|
1,416,462 |
|
|
|
60,226 |
|
|
8.50 |
% |
|
|
1,175,950 |
|
|
|
28,112 |
|
|
4.78 |
% |
| Allowance for loan losses |
|
|
(4,760 |
) |
|
|
|
|
|
|
|
|
(5,308 |
) |
|
|
|
|
|
|
| Non-interest-earning
assets |
|
|
82,217 |
|
|
|
|
|
|
|
|
|
76,927 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,493,919 |
|
|
|
|
|
|
|
|
$ |
1,247,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand
deposit |
|
$ |
88,047 |
|
|
$ |
911 |
|
|
2.07 |
% |
|
$ |
116,228 |
|
|
$ |
359 |
|
|
0.62 |
% |
| Savings and club accounts |
|
|
276,886 |
|
|
|
3,749 |
|
|
2.71 |
% |
|
|
209,080 |
|
|
|
681 |
|
|
0.65 |
% |
| Certificates of deposit |
|
|
496,338 |
|
|
|
8,501 |
|
|
3.43 |
% |
|
|
275,612 |
|
|
|
1,297 |
|
|
0.94 |
% |
|
Total interest-bearing deposits |
|
|
861,271 |
|
|
|
13,161 |
|
|
3.06 |
% |
|
|
600,920 |
|
|
|
2,337 |
|
|
0.78 |
% |
| Borrowed money |
|
|
16,514 |
|
|
|
209 |
|
|
2.53 |
% |
|
|
23,514 |
|
|
|
307 |
|
|
2.61 |
% |
|
Total interest-bearing liabilities |
|
|
877,785 |
|
|
|
13,370 |
|
|
3.05 |
% |
|
|
624,434 |
|
|
|
2,644 |
|
|
0.85 |
% |
| Non-interest-bearing
demand deposit |
|
|
333,948 |
|
|
|
|
|
|
|
|
|
352,689 |
|
|
|
|
|
|
|
| Other
non-interest-bearing liabilities |
|
|
16,208 |
|
|
|
|
|
|
|
|
|
15,352 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,227,941 |
|
|
|
|
|
|
|
|
|
992,475 |
|
|
|
|
|
|
|
| Equity |
|
|
265,978 |
|
|
|
|
|
|
|
|
|
255,094 |
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
1,493,919 |
|
|
|
|
|
|
|
|
$ |
1,247,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / interest spread |
|
|
|
|
$ |
46,856 |
|
|
5.46 |
% |
|
|
|
|
$ |
25,468 |
|
|
3.93 |
% |
|
Net interest rate margin |
|
|
|
|
|
|
|
|
6.62 |
% |
|
|
|
|
|
|
|
|
4.33 |
% |
|
Net interest earning assets |
|
$ |
538,677 |
|
|
|
|
|
|
|
|
$ |
551,516 |
|
|
|
|
|
|
|
|
Average interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing liabilities |
|
|
161.37 |
% |
|
|
|
|
|
|
|
|
188.32 |
% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NorthEast Community Banc... (NASDAQ:NECB)
과거 데이터 주식 차트
부터 12월(12) 2024 으로 1월(1) 2025
NorthEast Community Banc... (NASDAQ:NECB)
과거 데이터 주식 차트
부터 1월(1) 2024 으로 1월(1) 2025
