NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”),
the parent holding company of NorthEast Community Bank (the
“Bank”), reported 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 compared to net income of
$3.7 million and $7.0 million, or $0.23 and $0.43 per basic and
diluted common share, for the three months and six months ended
June 30, 2021.
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
continuing COVID-19 pandemic and the recent increase in interest
rates, loan demand remained strong with originations and
outstanding commitments increasing quarter over quarter. Our
commitments, loans-in-process, and standby letters of credit
outstanding totaled $879.0 million at June 30, 2022 compared to
$749.0 million at December 31, 2021. The performance of our loan
portfolio remains strong with only two non-residential loans
secured by the same property to one borrower that are on
non-accrual and in foreclosure due to a maturity default at June
30, 2022. At this time, we have no loans on deferral as a result of
the COVID-19 pandemic. 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,
2022 are as follows:
- Net income increased by $1.7
million and $2.0 million, or 44.9% and 29.7%, for the three months
and six months ended June 30, 2022 compared to the same periods in
the prior year.
- Net interest income increased by
$3.2 million and $4.7 million, or 30.5% and 22.8%, for the three
months and six months ended June 30, 2022 compared to the same
periods in 2021.
- Asset quality metrics continued to
remain strong with non-performing assets to total assets of 0.23%
and 0.16% at June 30, 2022 and at December 31, 2021. Our allowance
for loan losses totaled $5.5 million, or 0.53% of total loans at
June 30, 2022 compared to $5.2 million, or 0.54% of total loans at
December 31, 2021.
- In accordance with the provisions
of the Coronavirus Aid, Relief, and Economic Security Act (the
“CARES Act”), since March 2020, we granted pandemic-related loan
payment deferrals to 196 loans totaling $190.9 million at the time
payment deferral was requested. At June 30, 2022, we had no loans
in deferral status.
Balance Sheet SummaryTotal assets decreased by
$3.5 million, or 0.3%, to $1.2 billion at June 30, 2022, from
$1.2 billion at December 31, 2021. The decrease in assets
was primarily due to decreases in cash and cash equivalents of
$66.0 million and equity securities of $1.1 million, partially
offset by increases in net loans of $50.6 million, securities
held-to-maturity of $9.3 million, and premises and equipment of
$2.3 million.
Cash and cash equivalents decreased by $66.0 million, or
43.4%, to $86.2 million at June 30, 2022 from
$152.3 million at December 31, 2021. The decrease in cash
and cash equivalents was a result of cash being deployed to fund an
increase in net loans of $50.6 million, an increase in securities
held-to-maturity of $9.3 million, an increase in property and
equipment of $2.3 million due primarily to the purchase of property
and equipment for a new branch office, and a reduction in FHLB
advances of $7.0 million.
Equity securities decreased by $1.1 million, or 5.3%, to $18.9
million at June 30, 2022 from $19.9 million at December 31, 2021.
The decrease in equity securities was primarily attributable to
market depreciation of $1.1 million as market interest rates
increased during the six months ended June 30, 2022.
Securities held-to-maturity increased by $9.3 million, or 52.1%,
to $27.2 million at June 30, 2022 from $17.9 million at December
31, 2021 due primarily to the purchases of securities, partially
offset by maturities and pay-downs.
Loans, net of the allowance for loan losses, increased by
$50.6 million, or 5.2%, to $1.0 billion at June 30, 2022 from
$968.1 million at December 31, 2021. The
increase in loans, net of the allowance for loan losses, was
primarily due to loan originations of $307.4 million during the six
months ended June 30, 2022, consisting primarily of $266.3 million
in construction loans with respect to which approximately 32.1% of
the funds were disbursed at loan closings, with the remaining funds
to be disbursed over the terms of the construction
loans.
Loan originations resulted in a net increase of
$97.0 million in construction loans. The increase in our loan
portfolio was partially offset by decreases in non-residential
loans of $23.4 million, commercial and industrial loans of
$15.8 million, mixed-use loans of $5.2 million, residential loans
of $1.4 million, and multi-family loans of $560,000, coupled with
normal pay-downs and principal reductions.
Premises and equipment increased by $2.3 million, or 9.7%, to
$26.2 million at June 30, 2022 from $23.9 million at
December 31, 2021 due to the acquisition of property and
equipment for a new branch site located in Bloomingburg, New
York.
Investments in restricted stock decreased by $331,000, or 21.1%,
to $1.2 million at June 30, 2022 from $1.6 million at December 31,
2021 due primarily to a reduction in mandatory Federal Home Loan
Bank stock in connection with the maturity/pay-off of $7.0 million
in advances during the quarter ended June 30, 2022.
Accrued interest receivable increased by $949,000, or 22.2%, to
$5.2 million at June 30, 2022 from $4.3 million at December 31,
2021 due to an increase in the loan portfolio.
Foreclosed real estate was $2.0 million at June 30, 2022
and December 31, 2021.
Right of use assets — operating decreased by $268,000, or 10.5%,
to $2.3 million at June 30, 2022 from $2.6 million at
December 31, 2021, primarily due to amortization.
Other assets increased by $793,000, or 16.9%, to
$5.5 million at June 30, 2022 from $4.7 million at
December 31, 2021 due to increases in suspense accounts of
$406,000, tax assets of $326,000, and prepaid expenses of
$84,000.
Total deposits increased by $1.4 million, or 0.2%, to
$928.6 million at June 30, 2022 from $927.2 million at
December 31, 2021. The increase was primarily due to an
increase in non-interest bearing demand deposits of
$31.6 million, or 9.6% and an increase in savings account
balances of $24.5 million, or 13.3%. These increases were partially
offset by a decrease in certificates of deposit of
$48.7 million, or 16.6% and a decrease in NOW/money market
accounts of $6.1 million, or 5.1%, from December 31, 2021 to
June 30, 2022.
Federal Home Loan Bank advances decreased by $7.0 million, or
25.0%, to $21.0 million at June 30, 2022 from $28.0 million at
December 31, 2021.
Advance payments by borrowers for taxes and insurance decreased
by $147,000, or 7.8%, to $1.7 million at June 30, 2022 from $1.9
million at December 31, 2021 due primarily to the payment of taxes
for borrowers, partially offset by the accumulation of tax payments
from borrowers.
Lease liability – operating decreased by $260,000, or 10.0%, to
$2.3 million at June 30, 2022 from $2.6 million at December 31,
2021, primarily due to amortization.
Accounts payable and accrued expenses decreased by $2.5 million,
or 18.1%, to $11.1 million at June 30, 2022 from $13.5 million at
December 31, 2021 due primarily to a decrease in suspense accounts
for loan closings of $1.6 million and a decrease in accrued
expenses of $1.2 million.
Stockholders’ equity increased by $4.9 million, or 2.0% to
$256.3 million at June 30, 2022, from $251.4 million at
December 31, 2021. The increase in stockholders’ equity was
due to net income of $9.0 million for the six months
ended June 30, 2022, a reduction of $504,000 in unearned employee
stock ownership plan shares, and $41,000 in other comprehensive
income, partially offset by dividends paid and declared of $4.7
million.
Net Interest IncomeNet interest income totaled
$13.5 million for the three months ended June 30, 2022,
as compared to $10.4 million for the three months ended
June 30, 2021. The increase in net interest income of $3.2 million,
or 30.5%, was primarily due to an increase in interest income
combined with a decrease in interest expense.
The increase in interest income is attributable to increases in
loans, investment securities, equity securities, and
interest-bearing deposits as we continued to deploy the proceeds
raised in our July 2021 second-step conversion. The increase in
interest income is also attributable to an increase in interest
rates during the three months ended June 30, 2022.
The decrease in interest expense is attributable to a decrease
in the balances and cost of funds on our certificates of deposits
and on our borrowed money, partially offset by increases in the
balances and cost of funds in our interest-bearing demand deposits
and our savings and club accounts.
In this regard, total interest income increased by $3.2 million,
or 27.1%, to $14.8 million for the three months ended June 30, 2022
from $11.7 million for the three months ended June 30, 2021 due to
an increase in the average balance of interest earning assets of
$257.0 million, or 27.8%, to $1.2 billion for the three months
ended June 30, 2022 from $924.9 million for the three months ended
June 30, 2021, partially offset by a decrease in the yield on
interest earning assets by 3 basis points from 5.05% for the three
months ended June 30, 2021 to 5.02% for the three months ended June
30, 2022.
Interest expense decreased by $2,000, or 0.2%, to $1.3 million
for the three months ended June 30, 2022 from $1.3 million for the
three months ended June 30, 2021 due to a decrease in the cost of
interest bearing liabilities by 7 basis points from 0.91% for the
three months ended June 30, 2021 to 0.84% for the three months
ended June 30, 2022, partially offset by an increase in average
interest bearing liabilities of $45.4 million, or 8.0%, to $613.6
million for the three months ended June 30, 2022 from $568.3
million for the three months ended June 30, 2021.
Net interest margin increased by 9 basis points, or 2.1%, during
the three months ended June 30, 2022 to 4.58% compared to
4.49% during the three months ended June 30, 2021.
Net interest income totaled $25.5 million for the six
months ended June 30, 2022, as compared to $20.7 million for
the six months ended June 30, 2021. The increase in net
interest income of $4.7 million, or 22.8%, was primarily due to an
increase in interest income combined with a decrease in interest
expense.
The increase in interest income is attributable to increases in
loans, investment securities, equity securities, and
interest-bearing deposits as we continued to deploy the proceeds
raised in our July 2021 second-step conversion. The increase in
interest income is also attributable to an increase in interest
rates during the six months ended June 30, 2022.
The decrease in interest expense is attributable to a decrease
in the balances and cost of funds on our certificates of deposits
and on our borrowed money, partially offset by increases in the
balances and cost of funds in our interest-bearing demand deposits
and our savings and club accounts.
In this regard, interest income increased by $4.6 million, or
19.6%, to $28.1 million for the six months ended June 30, 2022 from
$23.5 million for the six months ended June 30, 2021 due to an
increase in the average balance of interest earning assets of
$262.5 million, or 28.7%, to $1.2 billion for the six months ended
June 30, 2022 from $913.5 million for the six months ended June 30,
2021, partially offset by a decrease in the yield on interest
earning assets by 36 basis points from 5.14% for the six months
ended June 30, 2021 to 4.78% for the six months ended June 30,
2022.
Interest expense decreased by $119,000, or 4.3%, to $2.6 million
for the six months ended June 30, 2022 from $2.8 million for the
six months ended June 30, 2021 due to a decrease in the cost of
interest bearing liabilities by 12 basis points from 0.97% for the
six months ended June 30, 2021 to 0.85% for the six months ended
June 30, 2022, partially offset by an increase in average interest
bearing liabilities of $52.6 million, or 9.2%, to $624.4 million
for the six months ended June 30, 2022 from $571.8 million for the
six months ended June 30, 2021.
Net interest margin decreased by 21 basis points, or 4.6%,
during the six months ended June 30, 2022 to 4.33% compared to
4.54% during the six months ended June 30, 2021.
Provision for Loan LossesThe Company recorded
no loan loss provision for the three months ended June 30, 2022 and
June 30, 2021. We charged-off $7,000 and $9,000 during the three
months ended June 30, 2022 and June 30, 2021, respectively, against
various unpaid overdrafts in our demand deposit accounts. We
recorded recoveries of $146,000 and $1,000 during the three months
ended June 30, 2022 and June 30, 2021, respectively.
The Company recorded no loan loss provision for the six months
ended June 30, 2022 compared to a loan loss provision of $17,000
for the six months ended June 30, 2021. We charged-off $17,000 and
$20,000 during the six months ended June 30, 2022 and June 30,
2021, respectively, against various unpaid overdrafts in our demand
deposit accounts. We recorded recoveries of $242,000 and $9,000
during the six months ended June 30, 2022 and June 30, 2021,
respectively. The recoveries of $242,000 during the six months
ended June 30, 2022 comprised of recoveries of $146,000 regarding a
previously charged-off multi-family property, $53,000 regarding a
previously charged-off non-residential property, and $43,000
regarding a previously charged-off mixed-use property.
Non-Interest IncomeNon-interest income for the
three months ended June 30, 2022 was $536,000 compared to
non-interest income of $778,000 for the three months ended June 30,
2021. The decrease in total non-interest income was primarily due
to an unrealized loss of $430,000 on equity securities during the
three months ended June 30, 2022 compared to an unrealized gain of
$93,000 on equity securities during the three months ended June 30,
2021. The unrealized loss of $430,000 on equity securities was
primarily due to a rising interest rate environment and the Federal
Reserve’s interest rate increases during the June 30, 2022
quarter.
The decrease in total non-interest income was partially offset
by an increase of $234,000 in other loan fees and service charges,
an increase of $39,000 on gain from the sale of fixed assets, an
increase of $10,000 in other non-interest income, an increase of
$2,000 in bank-owned life insurance income, and a decrease of
$4,000 in investment advisory fees.
Non-interest income for the six months ended June 30, 2022 was
$594,000 compared to non-interest income of $1.2 million for the
six months ended June 30, 2021. The decrease in total non-interest
income was primarily due to an unrealized loss of $1.1 million on
equity securities during the six months ended June 30, 2022
compared to an unrealized loss of $62,000 on equity securities
during the six months ended June 30, 2021. The unrealized loss of
$1.1 million on equity securities was primarily due to a rising
interest rate environment and the Federal Reserve’s interest rate
increases during the six months ended June 30, 2022.
The decrease in total non-interest income was partially offset
by an increase of $303,000 in other loan fees and service charges,
an increase of $39,000 on gain from the sale of fixed assets, an
increase of $15,000 in investment advisory fees, an increase of
$16,000 in other non-interest income, and an increase of $2,000 in
bank-owned life insurance income.
Non-Interest ExpenseNon-interest expense
increased by $698,000, or 11.0%, to $7.0 million for
the three months ended June 30, 2022 from $6.3 million
for the three months ended June 30, 2021. The increase
resulted primarily from increases of $305,000 in other operating
expense, $142,000 in outside data processing expense, $101,000 in
salaries and employee benefits, $90,000 in occupancy expense,
$38,000 in equipment expense, and $27,000 in advertising expense,
partially offset by a decrease of $5,000 in real estate owned
expense.
Non-interest expense increased by $1.4 million, or 10.6%, to
$14.2 million for the six months ended June 30, 2022 from
$12.9 million for the six months ended June 30, 2021. The
increase resulted primarily from increases of $759,000 in other
operating expense, $272,000 in salaries and employee benefits,
$121,000 in occupancy expense, $91,000 in outside data processing
expense, $78,000 in equipment expense, and $58,000 in advertising
expense, partially offset by a decrease of $16,000 in real estate
owned expense.
Income TaxesWe recorded income tax expense
of $1.7 million and $1.1 million for the three months ended
June 30, 2022 and 2021, respectively. For the three months
ended June 30, 2022, we had approximately $185,000 in tax exempt
income, compared to approximately $174,000 in tax exempt income for
the three months ended June 30, 2021. Our effective income tax
rates were 23.7% and 23.2% for the three months ended June 30,
2022 and 2021, respectively.
We recorded income tax expense of $2.8 million and $2.1 million
for the six months ended June 30, 2022 and 2021, respectively.
For the six months ended June 30, 2022, we had approximately
$370,000 in tax exempt income, compared to approximately $336,000
in tax exempt income for the six months ended June 30, 2021.
Our effective income tax rates were 23.6% and 23.2% for
the six months ended June 30, 2022 and 2021, respectively.
Asset QualityNon-performing assets totaled $2.8
million at June 30, 2022 compared to $2.0 million at December 31,
2021. We had two non-performing non-residential loans secured by
the same property to one borrower that are on non-accrual and in
foreclosure due to a maturity default at June 30, 2022 compared to
no non-performing loans at December 31, 2021. Our ratio of
non-performing assets to total assets remained low at 0.23% at June
30, 2022 and at 0.16% at December 31, 2021.
Based on a review of the loans that were in the loan portfolio
at June 30, 2022, management believes that the allowance for loan
losses is maintained at a level that represents its best estimate
of inherent losses in the loan portfolio that were both probable
and reasonably estimable.
The Company’s allowance for loan losses totaled $5.5 million, or
0.53% of total loans as of June 30, 2022, compared to $5.2 million,
or 0.54% of total loans as of December 31, 2021.
CapitalThe Company’s total stockholder’s equity
to assets was 20.98% as of June 30, 2022. At June 30, 2022, the
Company had the ability to borrow $24.1 million from the Federal
Home Loan Bank of New York.
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, 2022, the Bank had a tier 1 leverage
capital ratio of 16.25% and a total risk-based capital ratio of
14.52%.
About NorthEast Community BancorpNorthEast
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, and Rockland 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 StatementThis 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.” Forward-looking statements, by their nature, are
subject to risks and uncertainties. Certain 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), the effect of the COVID-19 pandemic (including its
impact on NorthEast Community Bank’s business operations and credit
quality, on our customers and their ability to repay their loan
obligations and on general economic and financial market
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, deposit flows, 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, |
|
2022 |
|
2021 |
|
(In thousands, except share |
|
and per share amounts) |
ASSETS |
|
|
|
|
|
Cash and amounts due from depository institutions |
$ |
14,302 |
|
|
$ |
8,344 |
|
Interest-bearing deposits |
|
71,925 |
|
|
|
143,925 |
|
Total Cash and cash equivalents |
|
86,227 |
|
|
|
152,269 |
|
Certificates of deposit |
|
100 |
|
|
|
100 |
|
Equity securities |
|
18,879 |
|
|
|
19,943 |
|
Securities available-for-sale,
at fair value |
|
1 |
|
|
|
1 |
|
Securities held-to-maturity
(fair value of $24,385 and $17,620, respectively) |
|
27,189 |
|
|
|
17,880 |
|
Loans receivable |
|
1,023,622 |
|
|
|
972,851 |
|
Deferred loan costs, net |
|
527 |
|
|
|
484 |
|
Allowance for loan losses |
|
(5,467 |
) |
|
|
(5,242 |
) |
Net loans |
|
1,018,682 |
|
|
|
968,093 |
|
Premises and equipment,
net |
|
26,215 |
|
|
|
23,907 |
|
Investments in restricted
stock, at cost |
|
1,238 |
|
|
|
1,569 |
|
Bank owned life insurance |
|
25,588 |
|
|
|
25,291 |
|
Accrued interest
receivable |
|
5,232 |
|
|
|
4,283 |
|
Goodwill |
|
651 |
|
|
|
651 |
|
Real estate owned |
|
1,996 |
|
|
|
1,996 |
|
Property held for
investment |
|
1,463 |
|
|
|
1,481 |
|
Right of Use
Assets – Operating |
|
2,296 |
|
|
|
2,564 |
|
Right of Use
Assets – Financing |
|
357 |
|
|
|
359 |
|
Other assets |
|
5,476 |
|
|
|
4,683 |
|
Total assets |
$ |
1,221,590 |
|
|
$ |
1,225,070 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing |
$ |
362,484 |
|
|
$ |
330,853 |
|
Interest bearing |
|
566,116 |
|
|
|
596,311 |
|
Total deposits |
|
928,600 |
|
|
|
927,164 |
|
Advance payments by borrowers for taxes and insurance |
|
1,737 |
|
|
|
1,884 |
|
Federal Home Loan Bank advances |
|
21,000 |
|
|
|
28,000 |
|
Lease Liability – Operating |
|
2,344 |
|
|
|
2,604 |
|
Lease Liability – Financing |
|
514 |
|
|
|
496 |
|
Accounts payable and accrued expenses |
|
11,083 |
|
|
|
13,540 |
|
Total liabilities |
|
965,278 |
|
|
|
973,688 |
|
|
|
|
|
|
|
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;
16,377,936 shares issued; and 16,377,936 shares outstanding |
$ |
164 |
|
|
$ |
164 |
|
Additional paid-in capital |
|
145,404 |
|
|
|
145,335 |
|
Unearned Employee Stock Ownership Plan (“ESOP”) shares |
|
(7,866 |
) |
|
|
(8,301 |
) |
Retained earnings |
|
118,708 |
|
|
|
114,323 |
|
Accumulated other comprehensive loss |
|
(98 |
) |
|
|
(139 |
) |
Total stockholders’ equity |
|
256,312 |
|
|
|
251,382 |
|
Total liabilities and stockholders’ equity |
$ |
1,221,590 |
|
|
$ |
1,225,070 |
|
NORTHEAST COMMUNITY
BANCORP, INC.CONSOLIDATED STATEMENTS OF
INCOME(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
(In thousands, except per share amounts) |
INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
14,412 |
|
|
$ |
11,575 |
|
$ |
27,473 |
|
|
$ |
23,302 |
|
Interest-earning deposits |
|
249 |
|
|
|
11 |
|
|
304 |
|
|
|
21 |
|
Securities |
|
177 |
|
|
|
90 |
|
|
335 |
|
|
|
173 |
|
Total Interest Income |
|
14,838 |
|
|
|
11,676 |
|
|
28,112 |
|
|
|
23,496 |
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,160 |
|
|
|
1,113 |
|
|
2,337 |
|
|
|
2,395 |
|
Borrowings |
|
127 |
|
|
|
176 |
|
|
288 |
|
|
|
350 |
|
Financing lease |
|
9 |
|
|
|
9 |
|
|
19 |
|
|
|
18 |
|
Total Interest Expense |
|
1,296 |
|
|
|
1,298 |
|
|
2,644 |
|
|
|
2,763 |
|
Net Interest Income |
|
13,542 |
|
|
|
10,378 |
|
|
25,468 |
|
|
|
20,733 |
|
Provision for loan
loss |
|
— |
|
|
|
— |
|
|
— |
|
|
|
17 |
|
Net Interest Income after Provision for Loan
Losses |
|
13,542 |
|
|
|
10,378 |
|
|
25,468 |
|
|
|
20,716 |
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
Other loan fees and service charges |
|
627 |
|
|
|
393 |
|
|
1,018 |
|
|
|
715 |
|
Gain (loss) on disposition of equipment |
|
46 |
|
|
|
7 |
|
|
46 |
|
|
|
7 |
|
Earnings on bank owned life insurance |
|
150 |
|
|
|
148 |
|
|
297 |
|
|
|
295 |
|
Investment advisory fees |
|
120 |
|
|
|
124 |
|
|
257 |
|
|
|
242 |
|
Unrealized loss on equity securities |
|
(430 |
) |
|
|
93 |
|
|
(1,064 |
) |
|
|
(62 |
) |
Other |
|
23 |
|
|
|
13 |
|
|
40 |
|
|
|
24 |
|
Total Non-Interest Income |
|
536 |
|
|
|
778 |
|
|
594 |
|
|
|
1,221 |
|
NON-INTEREST
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
3,613 |
|
|
|
3,512 |
|
|
7,441 |
|
|
|
7,169 |
|
Occupancy expense |
|
562 |
|
|
|
472 |
|
|
1,166 |
|
|
|
1,045 |
|
Equipment |
|
277 |
|
|
|
239 |
|
|
566 |
|
|
|
488 |
|
Outside data processing |
|
479 |
|
|
|
337 |
|
|
915 |
|
|
|
824 |
|
Advertising |
|
51 |
|
|
|
24 |
|
|
105 |
|
|
|
47 |
|
Real estate owned expense |
|
21 |
|
|
|
26 |
|
|
52 |
|
|
|
68 |
|
Other |
|
2,004 |
|
|
|
1,699 |
|
|
3,982 |
|
|
|
3,223 |
|
Total Non-Interest Expenses |
|
7,007 |
|
|
|
6,309 |
|
|
14,227 |
|
|
|
12,864 |
|
INCOME BEFORE
PROVISION FOR INCOME TAXES |
|
7,071 |
|
|
|
4,847 |
|
|
11,835 |
|
|
|
9,073 |
|
PROVISION FOR INCOME
TAXES |
|
1,678 |
|
|
|
1,126 |
|
|
2,797 |
|
|
|
2,107 |
|
NET
INCOME |
$ |
5,393 |
|
|
$ |
3,721 |
|
$ |
9,038 |
|
|
$ |
6,966 |
|
NORTHEAST COMMUNITY
BANCORP, INC.SELECTED CONSOLIDATED FINANCIAL
DATA(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
(In thousands, except per share amounts) |
|
(In thousands, except per share amounts) |
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted¹ |
$ |
0.35 |
|
|
$ |
0.23 |
|
|
$ |
0.58 |
|
|
$ |
0.43 |
|
Weighted average shares outstanding - basic and diluted¹ |
|
15,544 |
|
|
|
16,181 |
|
|
|
15,534 |
|
|
|
16,176 |
|
Performance
ratios/data: |
|
|
|
|
|
|
|
|
|
|
|
Return on average total assets |
|
1.72 |
% |
|
|
1.50 |
% |
|
|
1.45 |
% |
|
|
1.42 |
% |
Return on average shareholders' equity |
|
8.42 |
% |
|
|
9.32 |
% |
|
|
7.09 |
% |
|
|
8.83 |
% |
Net interest income |
$ |
13,542 |
|
|
$ |
10,378 |
|
|
$ |
25,468 |
|
|
$ |
20,733 |
|
Net interest margin |
|
4.58 |
% |
|
|
4.49 |
% |
|
|
4.33 |
% |
|
|
4.54 |
% |
Efficiency ratio |
|
49.77 |
% |
|
|
56.56 |
% |
|
|
54.59 |
% |
|
|
58.60 |
% |
Net charge-off ratio |
|
(0.01 |
)% |
|
|
0.00 |
% |
|
|
(0.02 |
)% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio
composition: |
|
|
|
|
|
|
June 30, 2022 |
|
December 31, 2021 |
One-to-four family |
|
|
|
|
|
|
$ |
5,758 |
|
|
$ |
7,189 |
|
Multi-family |
|
|
|
|
|
|
|
83,866 |
|
|
|
84,425 |
|
Mixed-use |
|
|
|
|
|
|
|
23,495 |
|
|
|
28,744 |
|
Total residential real estate |
|
|
|
|
|
|
|
113,119 |
|
|
|
120,358 |
|
Non-residential real estate |
|
|
|
|
|
|
|
26,633 |
|
|
|
50,016 |
|
Construction |
|
|
|
|
|
|
|
780,858 |
|
|
|
683,830 |
|
Commercial and industrial |
|
|
|
|
|
|
|
102,594 |
|
|
|
118,378 |
|
Consumer |
|
|
|
|
|
|
|
418 |
|
|
|
269 |
|
Gross loans |
|
|
|
|
|
|
|
1,023,622 |
|
|
|
972,851 |
|
Deferred loan (fees) costs, net |
|
|
|
|
|
|
|
527 |
|
|
|
484 |
|
Total loans |
|
|
|
|
|
|
$ |
1,024,149 |
|
|
$ |
973,335 |
|
Asset quality
data: |
|
|
|
|
|
|
|
|
|
|
|
Loans past due over 90 days and still accruing |
|
|
|
|
|
|
$ |
- |
|
|
$ |
- |
|
Non-accrual loans |
|
|
|
|
|
|
|
769 |
|
|
|
- |
|
OREO property |
|
|
|
|
|
|
|
1,996 |
|
|
|
1,996 |
|
Total non-performing
assets |
|
|
|
|
|
|
$ |
2,765 |
|
|
$ |
1,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
total loans |
|
|
|
|
|
|
|
0.53 |
% |
|
|
0.54 |
% |
Allowance for loan losses to
non-performing loans |
|
|
|
|
|
|
|
710.92 |
% |
|
|
NA |
|
Non-performing loans to total
loans |
|
|
|
|
|
|
|
0.08 |
% |
|
|
0.00 |
% |
Non-performing assets to total
assets |
|
|
|
|
|
|
|
0.23 |
% |
|
|
0.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Bank's Regulatory
Capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets |
|
|
|
|
|
|
|
14.52 |
% |
|
|
15.28 |
% |
Total capital to risk-weighted assets |
|
|
|
|
|
|
|
14.14 |
% |
|
|
14.87 |
% |
Tier 1 capital to risk-weighted assets |
|
|
|
|
|
|
|
14.14 |
% |
|
|
14.87 |
% |
Tier 1 leverage ratio |
|
|
|
|
|
|
|
16.25 |
% |
|
|
16.79 |
% |
¹Shares amounts related to periods prior to the July 12, 2021
closing of the conversion offering have been restated to give
retroactive recognition to the 1.3400 exchange ratio applied in the
conversion offering.
NORTHEAST COMMUNITY
BANCORP, INC.NET INTEREST MARGIN
ANALYSIS(Unaudited)
|
Three Months Ended June 30, 2022 |
|
Three Months Ended June 30, 2021 |
|
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 |
$ |
997,983 |
|
|
$ |
14,412 |
|
|
5.78 |
% |
|
$ |
833,973 |
|
|
$ |
11,575 |
|
5.55 |
% |
Securities (1) |
|
43,880 |
|
|
|
177 |
|
|
1.61 |
% |
|
|
21,513 |
|
|
|
90 |
|
1.67 |
% |
Other interest-earning
assets |
|
139,978 |
|
|
|
249 |
|
|
0.71 |
% |
|
|
69,368 |
|
|
|
11 |
|
0.06 |
% |
Total interest-earning assets |
|
1,181,841 |
|
|
|
14,838 |
|
|
5.02 |
% |
|
|
924,854 |
|
|
|
11,676 |
|
5.05 |
% |
Allowance for loan losses |
|
(5,333 |
) |
|
|
|
|
|
|
|
|
(5,103 |
) |
|
|
|
|
|
Non-interest-earning
assets |
|
77,693 |
|
|
|
|
|
|
|
|
|
72,615 |
|
|
|
|
|
|
Total assets |
$ |
1,254,201 |
|
|
|
|
|
|
|
|
$ |
992,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposit |
$ |
115,097 |
|
|
$ |
190 |
|
|
0.66 |
% |
|
$ |
114,675 |
|
|
$ |
164 |
|
0.57 |
% |
Savings and club accounts |
|
214,840 |
|
|
|
354 |
|
|
0.66 |
% |
|
|
101,162 |
|
|
|
48 |
|
0.19 |
% |
Certificates of deposit |
|
262,703 |
|
|
|
616 |
|
|
0.94 |
% |
|
|
324,420 |
|
|
|
901 |
|
1.11 |
% |
Total interest-bearing deposits |
|
592,640 |
|
|
|
1,160 |
|
|
0.78 |
% |
|
|
540,257 |
|
|
|
1,113 |
|
0.82 |
% |
Borrowed money |
|
21,000 |
|
|
|
136 |
|
|
2.59 |
% |
|
|
28,000 |
|
|
|
185 |
|
2.64 |
% |
Total interest-bearing liabilities |
|
613,640 |
|
|
|
1,296 |
|
|
0.84 |
% |
|
|
568,257 |
|
|
|
1,298 |
|
0.91 |
% |
Non-interest-bearing
demand deposit |
|
368,359 |
|
|
|
|
|
|
|
|
|
239,996 |
|
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
16,108 |
|
|
|
|
|
|
|
|
|
24,429 |
|
|
|
|
|
|
Total liabilities |
|
998,107 |
|
|
|
|
|
|
|
|
|
832,682 |
|
|
|
|
|
|
Equity |
|
256,094 |
|
|
|
|
|
|
|
|
|
159,684 |
|
|
|
|
|
|
Total liabilities and equity |
$ |
1,254,201 |
|
|
|
|
|
|
|
|
$ |
992,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / interest spread |
|
|
|
$ |
13,542 |
|
|
4.18 |
% |
|
|
|
|
$ |
10,378 |
|
4.14 |
% |
Net interest rate margin |
|
|
|
|
|
|
|
4.58 |
% |
|
|
|
|
|
|
|
4.49 |
% |
Net interest earning assets |
$ |
568,201 |
|
|
|
|
|
|
|
|
$ |
356,597 |
|
|
|
|
|
|
Average interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing liabilities |
|
192.60 |
% |
|
|
|
|
|
|
|
|
162.75 |
% |
|
|
|
|
|
______________________
(1) Includes Federal Home Loan Bank of
New York stock.
NORTHEAST COMMUNITY
BANCORP, INC.NET INTEREST MARGIN
ANALYSIS(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2022 |
|
Six Months Ended June 30, 2021 |
|
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 |
$ |
993,879 |
|
|
$ |
27,473 |
|
|
5.53 |
% |
|
$ |
834,219 |
|
|
$ |
23,302 |
|
5.59 |
% |
Securities (1) |
|
41,489 |
|
|
|
335 |
|
|
1.61 |
% |
|
|
20,312 |
|
|
|
173 |
|
1.70 |
% |
Other interest-earning
assets |
|
140,582 |
|
|
|
304 |
|
|
0.43 |
% |
|
|
58,942 |
|
|
|
21 |
|
0.07 |
% |
Total interest-earning assets |
|
1,175,950 |
|
|
|
28,112 |
|
|
4.78 |
% |
|
|
913,473 |
|
|
|
23,496 |
|
5.14 |
% |
Allowance for loan losses |
|
(5,308 |
) |
|
|
|
|
|
|
|
|
(5,096 |
) |
|
|
|
|
|
Non-interest-earning
assets |
|
76,927 |
|
|
|
|
|
|
|
|
|
70,157 |
|
|
|
|
|
|
Total assets |
$ |
1,247,569 |
|
|
|
|
|
|
|
|
$ |
978,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposit |
$ |
116,228 |
|
|
$ |
359 |
|
|
0.62 |
% |
|
$ |
111,357 |
|
|
$ |
320 |
|
0.57 |
% |
Savings and club accounts |
|
209,080 |
|
|
|
681 |
|
|
0.65 |
% |
|
|
101,893 |
|
|
|
127 |
|
0.25 |
% |
Certificates of deposit |
|
275,612 |
|
|
|
1,297 |
|
|
0.94 |
% |
|
|
330,546 |
|
|
|
1,948 |
|
1.18 |
% |
Total interest-bearing deposits |
|
600,920 |
|
|
|
2,337 |
|
|
0.78 |
% |
|
|
543,796 |
|
|
|
2,395 |
|
0.88 |
% |
Borrowed money |
|
23,514 |
|
|
|
307 |
|
|
2.61 |
% |
|
|
28,000 |
|
|
|
368 |
|
2.63 |
% |
Total interest-bearing liabilities |
|
624,434 |
|
|
|
2,644 |
|
|
0.85 |
% |
|
|
571,796 |
|
|
|
2,763 |
|
0.97 |
% |
Non-interest-bearing
demand deposit |
|
352,689 |
|
|
|
|
|
|
|
|
|
229,854 |
|
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
15,352 |
|
|
|
|
|
|
|
|
|
19,020 |
|
|
|
|
|
|
Total liabilities |
|
992,475 |
|
|
|
|
|
|
|
|
|
820,670 |
|
|
|
|
|
|
Equity |
|
255,094 |
|
|
|
|
|
|
|
|
|
157,864 |
|
|
|
|
|
|
Total liabilities and equity |
$ |
1,247,569 |
|
|
|
|
|
|
|
|
$ |
978,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / interest spread |
|
|
|
$ |
25,468 |
|
|
3.93 |
% |
|
|
|
|
$ |
20,733 |
|
4.18 |
% |
Net interest rate margin |
|
|
|
|
|
|
|
4.33 |
% |
|
|
|
|
|
|
|
4.54 |
% |
Net interest earning assets |
$ |
551,516 |
|
|
|
|
|
|
|
|
$ |
341,677 |
|
|
|
|
|
|
Average interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing liabilities |
|
188.32 |
% |
|
|
|
|
|
|
|
|
159.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________
(1) Includes Federal Home Loan Bank of
New York stock.
NorthEast Community Banc... (NASDAQ:NECB)
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De Mai 2024 até Jun 2024
NorthEast Community Banc... (NASDAQ:NECB)
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