NorthEast Community Bancorp, Inc. (OTC:NECB) (the “Company”), a
majority owned subsidiary of NorthEast Community Bancorp, MHC, and
the parent holding company of NorthEast Community Bank (the
“Bank”), reported net income of $8.05 million for the year ended
December 31, 2017 compared to net income of $5.03 million for the
year ended December 31, 2016, an increase of 60.13%.
The increase in net income for 2017 continues to
be the result of construction loan growth in the lower Hudson
Valley and on-going loan portfolio restructuring through attrition
of specific asset types.
The Company’s net income for the three and
twelve-month periods ended December 31, 2017 was impacted
negatively by a one-time adjustment to the net deferred tax asset
in the amount of $1.08 million due to the effect of the tax law
changes established by the Tax Cuts and Jobs Act (the “Tax Act”),
which was signed into law on December 22, 2017. The Tax Act
reduced the federal corporate tax rate to 21%. This change required
the Company to revalue its net deferred tax asset, which represents
corporate tax benefits anticipated to be realized in the future.
The reduction in the federal corporate tax rate reduces the tax
benefits of the net deferred tax asset. While the one-time
adjustment caused a reduction in after-tax net income for the three
and twelve-month periods ended December 31, 2017, the reduction of
the corporate income tax rate is expected to be favorable to the
Company in future periods.
Financial Condition and Operating
Results for December 31, 2017 compared to December 31,
2016:
Net interest income for the year ended December
31, 2017 increased by $7.61 million, or 32.78%, to $30.81 million
from $23.20 million for the year ended December 31, 2016.
Net income before taxes for the year ended
December 31, 2017 was $14.53 million compared to $8.14 million for
the year ended December 31, 2016, an increase of
78.50%. Provision for income taxes for 2017 was $6.48
million compared to $3.12 million for 2016. The increase in
net income before taxes was primarily the result of our continued
focus on construction lending in Rockland and Orange
Counties. The increase in income taxes was the result of
increased net income and the write-down of the deferred tax assets
required by the new Tax Act signed in December 2017.
Total consolidated assets increased by $80.32
million, or 10.93%, to $814.82 million at December 31, 2017 from
$734.50 million at December 31, 2016. Loans receivable (net)
increased by $77.98 million, or 12.45%, to $704.12 million at
December 31, 2017 from $626.14 million at December 31, 2016, while
commitments, loans-in-process and standby letters of credit
outstanding increased to $359.42 million at December 31, 2017
compared to $253.83 million at December 31, 2016. The
increase in loans receivable was primarily due to growth in our
construction loan portfolio resulting from our continued focus on
growing our construction lending operations in the lower Hudson
Valley.
Total liabilities at December 31, 2017 were
$697.92 million compared to $625.05 million at December 31, 2016,
an increase of $72.87 million, or 11.66%. The increase in
total liabilities was primarily due to a $79.86 million increase in
deposits from $545.35 million at December 31, 2016 to $625.21
million at December 31, 2017.
Federal Home Loan Bank advances and other
borrowings decreased by $7.38 million to $62.87 million at December
31, 2017, compared to $70.25 million at December 31, 2016. The
decrease in Federal Home Loan Bank Borrowing was the result of a
payoff of a maturing advance.
Total stockholder’s equity increased by $7.45
million, or 6.80%, to $116.90 million at December 31, 2017 from
$109.45 million at December 31, 2016. The increase was
primarily a result of net income of $8.05 million for the year
ended December 31, 2017, partially offset by dividends declared and
paid during the year.
Financial Condition and Operating
Results for December 31, 2017 compared to September 30,
2017:
Net interest income for the three months ending
December 31, 2017 increased by $540.22 thousand, or 6.81% to $8.49
million compared to $7.95 million for the three months ending
September 30, 2017.
Net income before taxes for the three months
ending December 31, 2017 was $4.36 million compared to $3.91
million for the three months ending September 31, 2017.
Provision for income taxes during the fourth quarter of 2017 was
$2.42 million compared to $1.57 million for the third quarter of
2017. The increase in income taxes was partially due to
the write-down of the deferred tax assets required by the Tax Act
signed into law in December 2017.
Total consolidated assets increased by $46.19
million, or 6.01%, to $814.82 million at December 31, 2017 from
$768.63 million at September 30, 2017. Loans receivable (net)
increased by $30.12 million or 4.47% to $704.12 million at December
31, 2017 from $674.00 million at September 31, 2017, while
commitments, loans-in-process and standby letters of credit
outstanding decreased to $359.42 million as of December 31, 2017
compared to $361.64 million at September 30, 2017.
Total liabilities at December 31, 2017 were
$697.92 million compared to $653.55 million at September 30, 2017,
an increase of $44.37 million, or 6.79%. The increase in
total liabilities was due to a $48.16 million increase in deposits
from $577.05 million at September 30, 2017 to $625.21 million at
December 31, 2017, partially offset by a reduction of $1.00 million
in Federal Home Loan Bank advances and other borrowings to $62.87
million at the end of the fourth quarter of 2017, compared to
$63.87 million at September 30, 2017.
NorthEast Community Bancorp, Inc.’s total
stockholders’ equity at December 31, 2017 is a strong 14.35%
compared to 14.97% at September 30, 2017.
NorthEast Community Bancorp, Inc. is the holding
company for NorthEast Community Bank. NorthEast Community Bank is a
New York State-chartered savings bank that operates four
full-service branches in New York State and three full-service
branches in Danvers, Framingham and Quincy, Massachusetts and loan
production offices in Danvers, Massachusetts and White Plains and
New City, New York.
This release contains “forward-looking
statements” that are based on assumptions and may describe future
plans, strategies and expectations of the Company. These
forward-looking statements are generally identified by the use of
the words “believe,” “expect,” “intend,” “anticipate,” “estimate,”
“project” or similar expressions. The Company’s ability to predict
results or the actual effect of future plans or strategies is
inherently uncertain. Factors that could have a material adverse
effect on the operations of the Company and its subsidiaries
include, but are not limited to, changes in market interest rates,
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, deposit
flows, competition, demand for financial services in the Company’s
market area, changes in the real estate market values in the
Company’s market area and changes in relevant accounting principles
and guidelines 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. MartinekChief Executive Officer(914)
684-2500
NorthEast Community Banc... (NASDAQ:NECB)
Historical Stock Chart
From Jun 2024 to Jul 2024
NorthEast Community Banc... (NASDAQ:NECB)
Historical Stock Chart
From Jul 2023 to Jul 2024