NorthEast Community Bancorp第二季淨收入980萬美元 建築貸款儲備增38.9%

EX-99.1
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tm2621324d1_ex99-1.htm
EXHIBIT 99.1

 

Exhibit 99.1

 

NECB Earnings Press Release for 06/30/2026:

 

NORTHEAST
COMMUNITY BANCORP, INC. REPORTS RESULTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30,
2026

 

White Plains,
New York, July 24, 2026 – NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding
company of NorthEast Community Bank (the “Bank”), reported net income of $9.8 million, or $0.75 per basic share and $0.72
per diluted share, for the three months ended June 30, 2026 compared to net income of $11.2 million, or $0.85 per basic share and
$0.82 per diluted share, for the three months ended June 30, 2025. In addition, the Company reported net income of $19.7 million,
or $1.50 per basic share and $1.46 per diluted share, for the six months ended June 30, 2026 compared to net income of $21.7 million,
or $1.65 per basic share and $1.60 per diluted share, for the six months ended June 30, 2025.

 

Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer,
stated “We are again pleased to report continued strong performance throughout our entire loan portfolio. We continue our laser
focus on construction lending in high demand, high absorption submarkets in the Bronx, Rockland, Orange, and Sullivan Counties.”

 

“Demand for construction loans throughout these submarkets continues
to demonstrate robust growth and we look forward to continuing to meet this growing demand going forward. At June 30, 2026, construction
loan commitments and loans-in-process outstanding increased by approximately 38.9% as compared to the second quarter of 2025, with over
$883 million in total unfunded loan commitments outstanding, and representing a 30.0% increase over the amount of such total commitments
outstanding at December 31, 2025.”

 

Highlights for the three months and six months ended June 30,
2026 are as follows:

 

·Performance metrics continue to be strong with a return on average total assets ratio of 1.95%, a return on average shareholders’
equity ratio of 10.81%, and an efficiency ratio of 41.99% for the three months ended June 30, 2026. For the six months ended June 30,
2026, the Company reported a return on average total assets ratio of 1.96%, a return on average shareholders’ equity ratio of 10.97%,
and an efficiency ratio of 42.81%.

 

·Asset quality metrics continue to remain strong with no non-performing loans at either June 30, 2026 or December 31, 2025,
and a non-performing assets to total assets ratio of 0.00% at both June 30, 2026 and at December 31, 2025. Our allowance for
credit losses related to loans totaled $4.8 million, or 0.25% of total loans at June 30, 2026 compared to $4.7 million, or 0.25%
of total loans at December 31, 2025.

 

·Total stockholders’ equity increased by $10.9 million, or 3.1%, to $362.6 million, or 17.14% of total assets as of June 30,
2026 from $351.7 million, or 17.04% of total assets as of December 31, 2025.

 

Balance Sheet Summary

 

Total assets increased $51.7 million, or 2.5%, to $2.1 billion
at June 30, 2026, from $2.1 billion at December 31, 2025. The increase in assets was primarily due to an increase in net
loans of $59.4 million, partially offset by a decrease in cash and cash equivalents of $7.8 million.

 

Cash and cash equivalents decreased $7.8 million, or 9.6%, to $73.4
million at June 30, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially funded
the increase of $59.4 million in net loans.

 

Equity securities increased $757,000, or 2.8%, to $27.3 million at
June 30, 2026 from $26.6 million at December 31, 2025. The increase in equity securities was attributable to the purchase of
$1.0 million in equity securities during the six months ended June 30, 2026, partially offset by market depreciation of $243,000
due to market interest rate volatility during the six months ended June 30, 2026.

 

  

  

 

 

Securities held-to-maturity decreased $564,000, or 3.1%, to $17.8 million
at June 30, 2026 from $18.3 million at December 31, 2025 due to pay-downs of various investment securities and an increase of
$9,000 to the allowance for credit losses for held-to-maturity securities, partially offset by the purchase of $470,000 in municipal securities.

 

Loans, net of the allowance for credit losses, increased $59.4 million,
or 3.2%, to $1.9 billion at June 30, 2026 from $1.9 billion at December 31, 2025. The increase in loans consisted of an
increase of $67.2 million in construction loans, partially offset by decreases of $4.9 million in multi-family loans, $2.2 million in
non-residential loans, $200,000 in mixed-use loans, $69,000 in one-to-four family loans, $23,000 in consumer loans, and $3,000 in commercial
and industrial loans.

 

During the six months ended June 30, 2026, we originated loans
totaling $653.2 million, which includes commitments and funded loans, consisting primarily of $606.7 million in construction loans, $25.1
million in commercial and industrial loans, $20.8 million in multi-family loans, and $675,000 in mixed-use loans. The $606.7 million in
construction loans had $262.7 million, or 43.3%, disbursed at loan closing, with the remaining funds to be disbursed over the terms of
the construction loans. These disbursements were offset by normal pay-downs and principal reductions as construction projects were completed
and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions.
The commercial and industrial loans had $19.0 million, or 75.7%, disbursed at loan closing as of June 30, 2026.

 

The allowance for credit losses related to loans was $4.6 million at
June 30, 2026 and December 31, 2025. The allowance for credit losses related to loans had a provision for credit losses totaling
$568,000 and charge-offs totaling $547,000. The provision for credit losses totaling $568,000 was due to an increase in the loan portfolio
and a slight increase in the remaining terms of the loan portfolio.

 

The allowance for credit losses for off-balance sheet commitments increased
$284,000, or 32.3%, to $1.2 million at June 30, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $204.2
million, or 30.0%, in off-balance sheet commitments from December 31, 2025 to June 30, 2026.

 

The allowance for credit losses for held-to-maturity securities increased
$9,000, or 7.1%, to $135,000 at June 30, 2026 from $126,000 at December 31, 2025 due to an increase in our municipal bond portfolio.

 

Premises and equipment decreased $356,000, or 1.4%, to $25.0 million
at June 30, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets.

 

Federal Home Loan Bank stock increased by $133,000, or 32.4%, to $543,000
at June 30, 2026 from $410,000 at December 31, 2025 primarily due to an increase in our mortgage-related assets.

 

Bank owned life insurance (“BOLI”) increased $364,000,
or 1.4%, to $26.8 million at June 30, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value.

 

Accrued interest receivable decreased $39,000, or 0.3%, to $12.2 million
at June 30, 2026 from $12.2 million at December 31, 2025 due to a decrease in the yield in the loan portfolio.

 

Property held for investment was $1.3 million at both June 30,
2026 and December 31, 2025.

 

Right of use assets — operating decreased $360,000,
or 7.7%, to $4.3 million at June 30, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of
the right of use assets.

 

Other assets increased $117,000, or 1.1%, to $11.1 million at June 30,
2026 from $11.0 million at December 31, 2025 due to an increase of $725,000 in suspense accounts, partially offset by decreases
of $528,000 in tax assets and $90,000 in prepaid expenses.

 

Total deposits decreased $80.4 million, or 5.0%, to $1.5 billion
at June 30, 2026 from $1.6 billion at December 31, 2025. The decrease in deposits was primarily due to decreases in certificates
of deposit of $190.8 million, or 21.2%, and savings account balances of $10.6 million, or 7.5%, partially offset by increases in NOW/money
market accounts of $67.5 million, or 22.3% and non-interest bearing deposits of $53.5 million, or 19.7%.

 

  

  

 

 

The decrease of $190.8 million in certificates of deposit consisted
of decreases of $129.0 million, or 34.9%, in brokered certificates of deposit, $38.3 million, or 56.6%, in non-brokered listing services
certificates of deposit, and $23.4 million, or 5.3% in retail certificates of deposit.

 

The decrease in brokered certificates of deposit and non-brokered listing
services certificates of deposit was due to management’s strategy to reduce the cost of funds by “calling” higher rate
brokered deposits on their call dates and to rely less on brokered deposits and non-brokered listing service deposits. The decrease in
retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts.

 

Advance payments by borrowers for taxes and insurance increased $210,000,
or 8.9%, to $2.6 million at June 30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate
tax payments from borrowers.

 

Borrowings increased $120.0 million, or 171.4%, to $190.0 million at
June 30, 2026 from $70.0 million at December 31, 2025 due primarily to management’s strategy to reduce the cost of funds
and lessen reliance on brokered deposits and non-brokered listing service deposits.

 

Lease liability – operating decreased $329,000, or 6.9%, to $4.5
million at June 30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.

 

Accounts payable and accrued expenses increased $980,000, or 6.0%,
to $18.6 million at June 30, 2026 from $17.3 million at December 31, 2025 due primarily to increases in accounts payable of
$1.3 million, suspense account – loan closings of $322,000, deferred compensation of $291,000, the allowance for credit losses for
off-balance sheet commitments of $284,000, and accrued interest expense of $107,000, partially offset by a decrease in accrued expenses
of $1.0 million.

 

Stockholders’
equity increased $10.9 million, or 3.1% to $362.6 million at June 30, 2026, from $351.7 million at December 31, 2025.
The increase in stockholders’ equity was due to net income of $19.7 million for the six months ended June 30,
2026, the amortization expense of $1.1 million relating to restricted stock and stock options granted under the Company’s 2022 Equity
Incentive Plan, an increase of $371,000 in earned employee stock ownership plan shares coupled with a reduction of $261,000 in
unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $25,000 in other comprehensive income. These increases
were offset by dividends declared of $6.0 million and stock repurchases and excise taxes of $4.7 million.

 

Results of Operations for the Three Months Ended June 30,
2026 and 2025

 

Net Interest Income

 

Net interest income was $24.7 million for the three months ended
June 30, 2026, as compared to $25.1 million for the three months ended June 30, 2025. The decrease in net interest income
of $424,000, or 1.7%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense caused by a decrease
in the yield on interest-earning assets that exceeded the decrease in the cost of funds for interest-bearing liabilities.

 

Total interest
and dividend income decreased $2.0 million, or 5.2%, to $36.1 million for the three months ended June 30, 2026 from $38.1 million
for the three months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest-earning
assets by 60 basis points from 8.11% for the three months ended June 30, 2025 to 7.51% for the three months ended June 30, 2026,
partially offset by an increase in the average balance of interest-earning assets of $43.8 million, or 2.3%, to $1.9 billion for the three
months ended June 30, 2026 from $1.9 billion for the three months ended June 30, 2025.

 

Interest expense decreased $1.6 million, or 12.0%, to $11.4 million
for the three months ended June 30, 2026 from $13.0 million for the three months ended June 30, 2025. The decrease in interest
expense was due to a decrease in the cost of interest-bearing liabilities by 43 basis points from 3.88% for the three months ended June 30,
2025 to 3.45% for the three months ended June 30, 2026. The decrease in interest expense was also due to a decrease in the average
balance of interest-bearing liabilities of $16.0 million, or 1.2%, to $1.3 billion for the three months ended June 30, 2026
from $1.3 billion for the three months ended June 30, 2025.

 

  

  

 

 

Our net interest margin decreased 21 basis points, or 3.9%, to 5.14%
for the three months ended June 30, 2026 compared to 5.35% for the three months ended June 30, 2025. The decrease in the net
interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted
in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing
liabilities.

 

Credit Loss Expense

 

The Company recorded credit loss expense of $860,000 for the three
months ended June 30, 2026 compared to no credit loss expense for the three months ended June 30, 2025.

 

The credit loss expense of $860,000 for the three months ended June 30,
2026 was comprised of credit loss expense for loans of $680,000, credit loss expense for off-balance sheet commitments of $171,000, and
credit loss expense for held-to-maturity securities of $9,000. The credit loss expense for loans of $680,000 for the three months ended
June 30, 2026 was primarily due to an increase in the loan portfolio. The credit loss expense for off-balance sheet commitments of
$171,000 for the three months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The
credit loss expense for held-to-maturity securities of $9,000 for the three months ended June 30, 2026 was primarily due to an increase
in the municipal bond portfolio.

 

With respect to the allowance for credit losses for loans, we charged-off
$520,000 during the quarter ended June 30, 2026, as compared to charge-offs of $485,000 during the quarter ended June 30, 2025.
The charge-offs during the quarter ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $20,000
against various unpaid overdrafts in our demand deposit accounts. The charge-offs during the quarter ended June 30, 2025 were against
various unpaid overdrafts in our demand deposit accounts.

 

We recorded no recoveries during the quarter ended June 30, 2026
compared to recoveries of $82,000 during the quarter ended June 30, 2025. The recoveries of $82,000 during the quarter ended
June 30, 2025 comprised of recoveries from a previously charged-off unpaid overdraft on a demand deposit account.

 

Non-Interest Income

 

Non-interest income for the three months ended June 30, 2026 was
$642,000 compared to non-interest income of $858,000 for the three months ended June 30, 2025. The decrease of $216,000, or 25.2%,
in total non-interest income was primarily due to decreases of $173,000 in unrealized gain/(loss) on equity securities and $62,000 in
other loan fees and service charges, partially offset by increases of $15,000 in BOLI income and $4,000 in miscellaneous other non-interest
income.

 

The decrease
in unrealized gain/(loss) on equity securities was due to an unrealized loss of $122,000 on equity securities during the quarter ended
June 30, 2026 compared to an unrealized gain of $51,000 on equity securities during the quarter ended June 30, 2025. The unrealized
loss of $122,000 and unrealized gain of $51,000 on equity securities during the quarters ended June 30, 2026 and 2025, respectively,
were due to market interest rate volatility during both periods.

 

The decrease
of $62,000 in other loan fees and service charges was due to decreases of $82,000 in loan service charges and fees, partially offset by
an increase of $20,000 in ATM/debit card/ACH fees. The increase of $15,000 in BOLI income was due to an increase in the yield on
BOLI assets. The increase of $4,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income
during the quarter.

 

Non-Interest Expense

 

Non-interest expense increased $110,000, or 1.0%, to $10.6 million
for the three months ended June 30, 2026 from $10.5 million for the three months ended June 30, 2025. The increase resulted
primarily from increases of $291,000 in other operating expense, $166,000 in salaries and employee benefits, and $44,000 in occupancy
expense, partially offset by decreases of $247,000 in real estate owned expense, $79,000 in advertising expense, $33,000 in outside data
processing expense, and $32,000 in equipment expense.

 

Income Taxes

 

We recorded income tax expense of $4.0 million and $4.3 million
for the three months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026, we had approximately
$252,000 in tax exempt income, compared to approximately $210,000 in tax exempt income for the three months ended June 30, 2025.
Our effective income tax rate was 29.1% for the three months ended June 30, 2026 compared to 27.6% for the three months ended June 30,
2025.

 

  

  

 

 

Results of Operations for the Six Months Ended June 30,
2026 and 2025

 

Net Interest Income

 

Net interest income was $48.8 million for the six months ended June 30,
2026 as compared to $49.3 million for the six months ended June 30, 2025. The decrease in net interest income of $555,000, or 1.1%,
was primarily due to a decrease in interest income that exceeded a decrease in interest expense and a decrease in the yield on interest
earning assets, partially offset by a smaller decrease in the cost of funds for interest bearing liabilities.

 

Total interest
and dividend income decreased $4.2 million, or 5.5%, to $72.0 million for the six months ended June 30, 2026 from $76.2 million for
the six months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest earning
assets by 60 basis points from 8.08% for the six months ended June 30, 2025 to 7.48% for the six months ended June 30, 2026,
partially offset by an increase in the average balance of interest earning assets of $39.5 million, or 2.1%, to $1.9 billion for the six
months ended June 30, 2026 from $1.9 billion for the six months ended June 30, 2025.

 

Interest expense decreased $3.7 million, or 13.6%, to $23.2 million
for the six months ended June 30, 2026 from $26.9 million for the six months ended June 30, 2025. The decrease in interest expense
was due to a decrease in the cost of interest bearing liabilities by 51 basis points from 3.97% for the six months ended June 30,
2025 to 3.46% for the six months ended June 30, 2026 and a decrease in average interest bearing liabilities of $13.0 million,
or 1.0%, to $1.3 billion for the six months ended June 30, 2026 from $1.4 billion for the six months ended June 30, 2025.

 

Net interest margin decreased 17 basis points, or 3.2%, to 5.06% for
the six months ended June 30, 2026 compared to 5.23% for the six months ended June 30, 2025. The decrease in the net interest
margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in
a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities.

 

Credit Loss Expense

 

The Company recorded a credit loss expense of $860,000 for the six
months ended June 30, 2026 compared to a credit loss expense of $237,000 for the six months ended June 30, 2025. The credit
loss expense of $860,000 for the six months ended June 30, 2026 was comprised of credit loss expense for loans of $568,000, credit
loss expense for off-balance sheet commitments of $283,000, and credit loss expense for held-to-maturity securities of $9,000. The credit
loss expense of $237,000 for the six months ended June 30, 2025 was comprised of credit loss expense for loans of $62,000 and credit
loss expense for off-balance sheet commitments of $175,000.

 

The credit loss expense for loans of $568,000 for the six months ended
June 30, 2026 was primarily due to an increase in the loan portfolio. The credit loss expense for off-balance sheet commitments of
$283,000 for the six months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit
loss expense for held-to-maturity securities of $9,000 for the six months ended June 30, 2026 was primarily due to an increase in
the municipal bond portfolio.

 

The credit loss expense for loans of $62,000 for the six months ended
June 30, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet
commitments of $175,000 for the six months ended June 30, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.

 

With respect
to the allowance for credit losses for loans, we charged-off $547,000 during the six months ended June 30, 2026 as compared to charge-offs
of $602,000 during the six months ended June 30, 2025. The charge-offs during the six months ended June 30, 2026 comprised
of $500,000 against a commercial and industrial loan and $47,000 against various unpaid overdrafts in our demand deposit accounts. The
charge-offs during the six months ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.

 

We recorded no recoveries during the six months ended June 30,
2026 compared to recoveries of $434,000 during the six months ended June 30, 2025. The recoveries of $434,000 during the six
months ended June 30, 2025 comprised of recoveries of $350,000 with respect to a previously charged-off non-residential mortgage
loan and $84,000 from previously charged-off unpaid overdrafts on demand deposit accounts.

 

  

  

 

 

Non-Interest Income

 

Non-interest income for the six months ended June 30, 2026 was
$1.4 million compared to non-interest income of $2.1 million for the six months ended June 30, 2025. The decrease of $655,000, or
31.3%, in total non-interest income was primarily due to decreases of $594,000 in unrealized gain/(loss) on equity securities and $133,000
in other loan fees and service charges, partially offset by increases of $45,000 in miscellaneous other non-interest income and $27,000
in BOLI income.

 

The decrease
in unrealized gain on equity securities was due to an unrealized loss of $243,000 on equity securities during the six months ended June 30,
2026 compared to an unrealized gain of $351,000 on equity securities during the six months ended June 30, 2025. Both the unrealized
loss of $243,000 on equity securities during the 2026 period and the unrealized gain of $351,000 on equity securities during the 2025
period were due to market interest rate volatility during both periods.

 

The decrease of $133,000 in other loan fees and service charges was
due to a decrease of $226,000 in other loan fees and loan servicing fees, partially offset by an increase of $92,000 in ATM/debit card/ACH
fees. The increase of $45,000 in miscellaneous other non-interest income was due to general accrual adjustments during the first quarter
of 2026. The increase in BOLI income of $27,000 was due to an increase in the yield on BOLI assets.

 

Non-Interest Expense

 

Non-interest
expense increased $371,000, or 1.8%, to $21.5 million for the six months ended June 30, 2026 from $21.1 million for the six
months ended June 30, 2025. The increase resulted primarily from increases of $406,000 in salaries and employee benefits, $208,000
in other operating expense, $172,000 in occupancy expense, and $27,000 in outside data processing expense, partially offset by
decreases of $277,000 in real estate owned expense, $139,000 in advertising expense, and $26,000 in equipment expense.

 

Income Taxes

 

We recorded income tax expense of $8.1 million and $8.3 million
for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026, we had approximately
$500,000 in tax exempt income, compared to approximately $415,000 in tax exempt income for the six months ended June 30, 2025.
Our effective income tax rates were 29.1% and 27.7% for the six months ended June 30, 2026 and 2025, respectively.

 

Asset Quality

 

We had no non-performing assets at June 30, 2026 and December 31,
2025. Our ratio of non-performing assets to total assets was 0.00% at June 30, 2026 and December 31, 2025.

 

The Company’s allowance for credit losses related to loans was
$4.8 million, or 0.25% of total loans as of June 30, 2026, compared to $4.7 million, or 0.25% of total loans as of December 31,
2025. Based on a review of the loans that were in the loan portfolio at June 30, 2026, management believes that the allowance for
credit losses related to loans is maintained at a level that represents its best estimate of expected losses in the loan portfolio.

 

In addition, at June 30, 2026, the Company’s allowance for
credit losses related to off-balance sheet commitments totaled $1.2 million and the allowance for credit losses related to held-to-maturity
debt securities totaled $135,000.

 

Capital

 

The Company’s total stockholders’ equity to assets ratio
was 17.14% as of June 30, 2026. At June 30, 2026, the Company had the ability to borrow $633.0 million from the Federal Reserve
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, 2026, the Bank had a tier 1 leverage capital ratio of 17.32% and a total risk-based capital ratio of 15.31%.

 

The Company commenced its third stock repurchase program on December 10,
2025 whereby the Company will repurchase 1,400,435, or 10%, of the Company’s issued and outstanding common stock. As of June 30,
2026, the Company had repurchased 239,894 shares of common stock under its third repurchase program, at a cost of $5.6 million, including
commission costs and Federal excise taxes.

 

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 or recessionary conditions and their impact
on regional and national economic conditions), legislative and regulatory changes, changes relating to rent regulation and housing, including
recent legislative action in New York City to freeze rents on certain rent-regulated properties, monetary and fiscal policies of the United
States government, including policies of the United States Treasury and the Federal Reserve Board, the impacts of tariffs, sanctions and
other trade policies of the United States and its global trading counterparts, the impact of changing political conditions or federal
government shutdowns, 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)

 

 
   
 June 30,  
 December 31, 

 
   
 2026  
 2025 

 
   
 (In thousands, except share 

 
   
 and per share amounts) 

 
 ASSETS 
    
   

 
 Cash and amounts due from depository institutions 
 $9,473  
 $10,456 

 
 Interest-bearing deposits 
  63,941  
  70,719 

 
 Total cash and cash equivalents 
  73,414  
  81,175 

 
 Certificates of deposit 
  100  
  100 

 
 Equity securities 
  27,327  
  26,570 

 
 Securities held-to-maturity (net of allowance for credit losses of $135 and $126, respectively ) 
  17,751  
  18,315 

 
 Loans receivable 
  1,919,908  
  1,860,066 

 
 Deferred loan (fees) costs, net 
  (149) 
  268 

 
 Allowance for credit losses 
  (4,752) 
  (4,731)

 
 Net loans 
  1,915,007  
  1,855,603 

 
 Premises and equipment, net 
  25,021  
  25,377 

 
 Investments in restricted stock, at cost 
  543  
  410 

 
 Bank owned life insurance 
  26,797  
  26,433 

 
 Accrued interest receivable 
  12,189  
  12,228 

 
 Property held for investment 
  1,315  
  1,334 

 
 Right of Use Assets – Operating 
  4,296  
  4,656 

 
 Right of Use Assets – Financing 
  342  
  343 

 
 Other assets 
  11,081  
  10,964 

 
 Total assets 
 $2,115,183  
 $2,063,508 

 
 LIABILITIES AND STOCKHOLDERS’ EQUITY 
     
    

 
 Liabilities: 
     
    

 
 Deposits: 
     
    

 
 Non-interest bearing 
 $325,415  
 $271,924 

 
 Interest bearing 
  1,211,128  
  1,344,977 

 
 Total deposits 
  1,536,543  
  1,616,901 

 
 Advance payments by borrowers for taxes and insurance 
  2,562  
  2,352 

 
 Borrowings 
  190,000  
  70,000 

 
 Lease Liability – Operating 
  4,467  
  4,796 

 
 Lease Liability – Financing 
  454  
  434 

 
 Accounts payable and accrued expenses 
  18,589  
  17,325 

 
 Total liabilities 
  1,752,615  
  1,711,808 

 
   
     
    

 
 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; 13,771,951 shares and 13,963,432 shares outstanding, respectively 
  138  
  140 

 
 Additional paid-in capital 
  108,383  
  111,575 

 
 Unearned Employee Stock Ownership Plan (“ESOP”) shares 
  (4,957) 
  (5,218)

 
 Retained earnings 
  258,746  
  244,970 

 
 Accumulated other comprehensive gain 
  258  
  233 

 
 Total stockholders’ equity 
  362,568  
  351,700 

 
 Total liabilities and stockholders’ equity 
 $2,115,183  
 $2,063,508 

 

 

  

  

 

 

NORTHEAST COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 
   
 Three Months Ended June 30,  
 Six Months Ended June 30, 

 
   
 2026  
 2025  
 2026  
 2025 

 
   
 (In thousands, except per share amounts)  
 (In thousands, except per share amounts) 

 
 INTEREST INCOME: 
     
     
     
    

 
 Loans 
 $35,174  
 $36,740  
 $70,216  
 $73,622 

 
 Interest-earning deposits 
  554  
  1,027  
  1,156  
  2,108 

 
 Securities 
  332  
  272  
  657  
  516 

 
 Total Interest Income 
  36,060  
  38,039  
  72,029  
  76,246 

 
 INTEREST EXPENSE: 
     
     
     
    

 
 Deposits 
  10,610  
  12,053  
  22,012  
  25,986 

 
 Borrowings 
  790  
  902  
  1,213  
  902 

 
 Financing lease 
  10  
  10  
  20  
  20 

 
 Total Interest Expense 
  11,410  
  12,965  
  23,245  
  26,908 

 
 Net Interest Income 
  24,650  
  25,074  
  48,784  
  49,338 

 
 Provision for credit loss 
  860  
  —  
  860  
  237 

 
 Net Interest Income after Provision for Credit Loss 
  23,790  
  25,074  
  47,924  
  49,101 

 
 NON-INTEREST INCOME: 
     
     
     
    

 
 Other loan fees and service charges 
  549  
  611  
  1,218  
  1,351 

 
 Earnings on bank owned life insurance 
  185  
  170  
  364  
  336 

 
 Unrealized (loss) gain on equity securities 
  (122) 
  51  
  (243) 
  351 

 
 Other 
  30  
  26  
  99  
  55 

 
 Total Non-Interest Income 
  642  
  858  
  1,438  
  2,093 

 
 NON-INTEREST EXPENSES: 
     
     
     
    

 
 Salaries and employee benefits 
  5,817  
  5,650  
  11,989  
  11,583 

 
 Occupancy expense 
  787  
  743  
  1,661  
  1,489 

 
 Equipment 
  221  
  253  
  444  
  470 

 
 Outside data processing 
  725  
  758  
  1,521  
  1,494 

 
 Advertising 
  43  
  123  
  86  
  225 

 
 Real estate owned expense 
  -  
  247  
  -  
  277 

 
 Other 
  3,026  
  2,734  
  5,797  
  5,589 

 
 Total Non-Interest Expenses 
  10,619  
  10,508  
  21,498  
  21,127 

 
 INCOME BEFORE PROVISION FOR INCOME TAXES 
  13,813  
  15,424  
  27,864  
  30,067 

 
 PROVISION FOR INCOME TAXES 
  4,018  
  4,254  
  8,117  
  8,330 

 
 NET INCOME 
 $9,795  
 $11,170  
 $19,747  
 $21,737 

 

 

  

  

 

 

NORTHEAST COMMUNITY BANCORP, INC.

SELECTED CONSOLIDATED FINANCIAL DATA

(Unaudited)

 

 
   
 Three Months Ended June 30,  
 Six Months Ended June 30, 

 
   
 2026  
 2025  
 2026  
 2025 

 
   
 (In thousands, except per share amounts)  
 (In thousands, except per share amounts) 

 
 Per share data: 
    
    
    
   

 
 Earnings per share - basic 
 $0.75  
 $0.85  
 $1.50  
 $1.65 

 
 Earnings per share - diluted 
  0.72  
  0.82  
  1.46  
  1.60 

 
 Weighted average shares outstanding - basic 
  13,135  
  13,216  
  13,155  
  13,204 

 
 Weighted average shares outstanding - diluted 
  13,538  
  13,568  
  13,533  
  13,563 

 
 Performance ratios/data: 
     
     
     
    

 
 Return on average total assets 
  1.95% 
  2.27% 
  1.96% 
  2.20%

 
 Return on average shareholders' equity 
  10.81% 
  13.37% 
  10.97% 
  13.18%

 
 Net interest income 
 $24,650  
 $25,074  
 $48,784  
 $49,338 

 
 Net interest margin 
  5.14% 
  5.35% 
  5.06% 
  5.23%

 
 Efficiency ratio 
  41.99% 
  40.52% 
  42.81% 
  41.08%

 
 Net charge-off ratio 
  0.11% 
  0.09% 
  0.06% 
  0.01%

   
     
     
     
    

 Loan portfolio composition: 
     
     
 June 30, 2026  
 December 31, 2025 

 
 One-to-four family 
     
     
 $3,046  
 $3,114 

 
 Multi-family 
     
     
  301,628  
  306,508 

 
 Mixed-use 
     
     
  24,997  
  25,197 

 
 Total residential real estate 
     
     
  329,671  
  334,819 

 
 Non-residential real estate 
     
     
  36,247  
  38,463 

 
 Construction 
     
     
  1,403,562  
  1,336,329 

 
 Commercial and industrial 
     
     
  150,394  
  150,397 

 
 Consumer 
     
     
  34  
  58 

 
 Gross loans 
     
     
  1,919,908  
  1,860,066 

 
 Deferred loan (fees) cost, net 
     
     
  (149) 
  268 

 
 Total loans 
     
     
 $1,919,759  
 $1,860,334 

 
 Asset quality data: 
     
     
     
    

 
 Loans past due over 90 days and still accruing 
     
     
 $-  
 $- 

 
 Non-accrual loans 
     
     
  -  
  - 

 
 Total non-performing assets 
     
     
 $—  
 $— 

 
   
     
     
     
    

 
 Allowance for credit losses to total loans 
     
     
  0.25% 
  0.25%

 
 Allowance for credit losses to non-performing loans 
     
     
  0.00% 
  0.00%

 
 Non-performing loans to total loans 
     
     
  0.00% 
  0.00%

 
 Non-performing assets to total assets 
     
     
  0.00% 
  0.00%

 
   
     
     
     
    

 
 Bank's Regulatory Capital ratios: 
     
     
     
    

 
 Total capital to risk-weighted assets 
     
     
  15.31% 
  15.62%

 
 Common equity tier 1 capital to risk-weighted assets 
     
     
  15.05% 
  15.36%

 
 Tier 1 capital to risk-weighted assets 
     
     
  15.05% 
  15.36%

 
 Tier 1 leverage ratio 
     
     
  17.32% 
  16.39%

 

 

  

  

 

 

NORTHEAST COMMUNITY BANCORP, INC.

NET INTEREST MARGIN ANALYSIS

(Unaudited)

 

 
   
 Three Months Ended June 30, 2026  
 Three Months Ended June 30, 2025 

 
   
 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 
 $1,823,222  
 $35,174  
  7.72% 
 $1,754,363  
 $36,740  
  8.38%

 
 Securities 
  45,375  
  324  
  2.86% 
  37,839  
  265  
  2.80%

 
 Federal Home Loan Bank stock 
  536  
  8  
  5.97% 
  438  
  7  
  6.39%

 
 Other interest-earning assets 
  50,466  
  554  
  4.39% 
  83,135  
  1,027  
  4.94%

 
 Total interest-earning assets 
  1,919,599  
  36,060  
  7.51% 
  1,875,775  
  38,039  
  8.11%

 
 Allowance for credit losses 
  (4,594) 
     
     
  (5,122) 
     
    

 
 Non-interest-earning assets 
  93,251  
     
     
  95,651  
     
    

 
 Total assets 
 $2,008,256  
     
     
 $1,966,304  
     
    

 
   
     
     
     
     
     
    

 
 Interest-bearing demand deposit 
 $346,797  
 $2,652  
  3.06% 
 $298,689  
 $2,401  
  3.22%

 
 Savings and club accounts 
  133,982  
  662  
  1.98% 
  141,238  
  761  
  2.16%

 
 Certificates of deposit 
  754,660  
  7,296  
  3.87% 
  815,000  
  8,891  
  4.36%

 
 Total interest-bearing deposits 
  1,235,439  
  10,610  
  3.44% 
  1,254,927  
  12,053  
  3.84%

 
 Borrowed money 
  86,151  
  800  
  3.71% 
  82,712  
  912  
  4.41%

 
 Total interest-bearing liabilities 
  1,321,590  
  11,410  
  3.45% 
  1,337,639  
  12,965  
  3.88%

 
 Non-interest-bearing demand deposit 
  299,529  
     
     
  274,466  
     
    

 
 Other non-interest-bearing liabilities 
  24,773  
     
     
  20,114  
     
    

 
 Total liabilities 
  1,645,892  
     
     
  1,632,219  
     
    

 
 Equity 
  362,364  
     
     
  334,085  
     
    

 
 Total liabilities and equity 
 $2,008,256  
     
     
 $1,966,304  
     
    

 
   
     
     
     
     
     
    

 
 Net interest income / interest spread 
     
 $24,650  
  4.06% 
     
 $25,074  
  4.23%

 
 Net interest rate margin 
     
     
  5.14% 
     
     
  5.35%

 
 Net interest earning assets 
 $598,009  
     
     
 $538,136  
     
    

 
 Average
 interest-earning assets to interest-bearing liabilities 
  145.25% 
     
     
  140.23% 
     
    

 

 

  

  

 

 

NORTHEAST COMMUNITY BANCORP, INC.

NET INTEREST MARGIN ANALYSIS

(Unaudited)

 

 
   
 Six Months Ended June 30, 2026  
 Six Months Ended June 30, 2025 

 
   
 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 
 $1,825,651  
 $70,216  
  7.69% 
 $1,761,069  
 $73,622  
  8.36%

 
 Securities 
  45,234  
  643  
  2.84% 
  37,298  
  500  
  2.68%

 
 Federal Home Loan Bank stock 
  473  
  14  
  5.92% 
  418  
  16  
  7.66%

 
 Other interest-earning assets 
  55,251  
  1,156  
  4.18% 
  88,277  
  2,108  
  4.78%

 
 Total interest-earning assets 
  1,926,609  
  72,029  
  7.48% 
  1,887,062  
  76,246  
  8.08%

 
 Allowance for credit losses 
  (4,661) 
     
     
  (4,978) 
     
    

 
 Non-interest-earning assets 
  92,237  
     
     
  96,071  
     
    

 
 Total assets 
 $2,014,185  
     
     
 $1,978,155  
     
    

 
   
     
     
     
     
     
    

 
 Interest-bearing demand deposit 
 $334,730  
 $5,105  
  3.05% 
 $286,726  
 $4,846  
  3.38%

 
 Savings and club accounts 
  134,899  
  1,332  
  1.97% 
  140,077  
  1,491  
  2.13%

 
 Certificates of deposit 
  806,181  
  15,575  
  3.86% 
  888,136  
  19,649  
  4.42%

 
 Total interest-bearing deposits 
  1,275,810  
  22,012  
  3.45% 
  1,314,939  
  25,986  
  3.95%

 
 Borrowed money 
  67,710  
  1,233  
  3.64% 
  41,584  
  922  
  4.43%

 
 Total interest-bearing liabilities 
  1,343,520  
  23,245  
  3.46% 
  1,356,523  
  26,908  
  3.97%

 
 Non-interest-bearing demand deposit 
  287,324  
     
     
  272,680  
     
    

 
 Other non-interest-bearing liabilities 
  23,389  
     
     
  19,107  
     
    

 
 Total liabilities 
  1,654,233  
     
     
  1,648,310  
     
    

 
 Equity 
  359,952  
     
     
  329,845  
     
    

 
 Total liabilities and equity 
 $2,014,185  
     
     
 $1,978,155  
     
    

 
   
     
     
     
     
     
    

 
 Net interest income / interest spread 
     
 $48,784  
  4.02% 
     
 $49,338  
  4.11%

 
 Net interest rate margin 
     
     
  5.06% 
     
     
  5.23%

 
 Net interest earning assets 
 $583,089  
     
     
 $530,539  
     
    

 
 Average interest-earning assets to interest-bearing liabilities 
  143.40% 
     
     
  139.11%