NorthEast Community Bancorp, Inc. (NasdaqCM: NECB) (the
“Company”), the parent holding company of NorthEast Community Bank
(the “Bank”) reported net income of $3.7 million and $7.0 million,
or $0.31 and $0.58 per basic and diluted common share, for the
three months and six months ended June 30, 2021,
respectively, compared to net income of $2.5 million and $5.7
million, or $0.21 and $0.48 per basic and diluted common share, for
the three months and six months ended June 30, 2020,
respectively.
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. Throughout the COVID-19
pandemic, 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 $785.7 million as of June 30, 2021. The
performance of our loan portfolios remains strong with one loan
past due and in foreclosure at June 30, 2021. At this time, we have
two loans on deferral as a result of the COVID-19 pandemic, both
with conservative loan to value ratios. As has been in the past,
construction lending for affordable housing units in homogeneous
high demand high absorption areas continues to be our focus.”
Highlights for the three and six months ended and at
June 30, 2021 are as follows:
- During the three months ended
June 30, 2021, the Company recorded net income of $3.7
million, or $0.31 per basic and diluted share.
- Net interest income increased by
$869,000, or 9.1%, for the three months ended June 30,
2021 compared to the same period in the prior year.
- The Company maintained strong
credit reserves amidst the uncertain economic environment and
recorded a $17,000 provision for loan losses during the
six months ended June 30, 2021.
- Asset quality metrics continued to
remain strong with non-performing assets to total assets of 0.52%
as of June 30, 2021. Our allowance for loan losses totaled
$5.1 million, or 0.61% of total loans as of June 30, 2021
compared to $5.2 million, or 0.64% of total loans as of
June 30, 2020.
- In accordance with the provisions
of the Coronavirus Aid, Relief, and Economic Security Act (the
“CARES Act”) since March 2020, we have granted pandemic-related
loan payment deferrals to 195 loans totaling $190.8 million at the
time payment deferral was requested. As of June 30, 2021, we
had two loans totaling $9.5 million still in deferral status.
Balance SheetTotal assets increased by
$108.3 million, or 11.2%, to $1.1 billion at June 30,
2021, from $968.2 million at December 31, 2020. The
increase in assets was primarily due to increases in cash and cash
equivalents of $94.6 million, premises and equipment of $4.5
million, net loans of $5.5 million, and investment securities
held-to-maturity of $3.5 million.
Cash and cash equivalents increased by $94.6 million, or
136.8%, to $163.8 million at June 30, 2021 from
$69.2 million at December 31, 2020. The increase in cash
can primarily be attributed to an increase in deposits of $27.1
million and an increase in stock subscriptions funds of $74.9
million related to our recently completed second-step conversion
offering, partially offset by an increase in loans of $5.5 million,
an increase in investment securities held-to-maturity of $3.5
million, an increase in premises and equipment of $4.5 million due
to the purchase of a branch building, a decrease in advance
payments by borrowers for taxes and insurance of $246,000 and cash
dividends of $295,000.
Securities held-to-maturity increased by $3.5 million, or 46.9%,
to $10.8 million at June 30, 2021 from $7.4 million at
December 31, 2020. The increase was primarily due to the
purchase of investment securities totaling $4.3 million, partially
offset by maturities and pay-downs of $793,000.
Loans, net of the allowance for loan losses, increased by
$5.5 million, or 0.7%, to $825.2 million at June 30,
2021 from $819.7 million at December 31, 2020. The
increase in loans, net of the allowance for loan losses, was
primarily due to a net increase in construction loans of
$26.2 million. The increases were partially offset by
decreases in non-residential loans of $5.5 million, mixed-use
loans of $2.3 million, commercial and industrial loans
of $10.6 million, one- to four-family loans of $1.4 million, and
multi-family loans of $992,000, coupled with normal pay-downs and
principal reductions.
Premises and equipment increased by $4.5 million, or 24.2%, to
$23.2 million at June 30, 2021 from $18.7 million at
December 31, 2020 due to the acquisition of property for a new
branch site located in Monsey, New York.
Foreclosed real estate was $2.0 million at June 30,
2021 and December 31, 2020.
Right of use assets — operating, recognized in accordance with
Accounting Standards Codification 842 “Leases”, decreased by
$264,000, or 8.5%, to $2.8 million at June 30, 2021 from
$3.1 million at December 31, 2020, primarily due to
amortization.
Other assets increased by $510,000, or 10.1%, to
$5.6 million at June 30, 2021 from $5.1 million at
December 31, 2020 due to an increase in suspense accounts of
$1.0 million and an increase in prepaid expense of $240,000,
partially offset by a decrease in tax assets of $728,000.
Total deposits increased by $27.1 million, or 3.5%, to
$798.8 million at June 30, 2021, from $771.7 million
at December 31, 2020. The increase was primarily due to an
increase in non-interest bearing demand deposits
of $36.4 million, or 16.5%, and an increase in NOW/money
market accounts of $18.0 million, or 17.9%, from December 31,
2020 to June 30, 2021. The increase was partially offset by a
decrease in certificates of deposit of $25.3 million, or 7.3%,
and a decrease in savings account balances of $2.0 million, or
2.0%, from December 31, 2020 to June 30, 2021.
Federal Home Loan Bank advances were $28.0 million at both
June 30, 2021 and December 31, 2020.
Stock subscription was $74.9 million at June 30, 2021 due to
stock subscription orders received in connection with our recently
completed second-step conversion offering.
Stockholders’ equity increased by $7.0 million, or 4.6% to
$160.8 million at June 30, 2021, from $153.8 million
at December 31, 2020. The increase in stockholders’ equity was
primarily a result of net income of $7.0 million for
the six months ended June 30, 2021, a reduction
of $202,000 in unearned employee stock ownership plan shares,
partially offset by dividends declared of $144,000 and $3,000 in
other comprehensive loss.
Net Interest IncomeNet interest income totaled
$10.4 million for the three months ended
June 30, 2021, as compared to $9.5 million for
the three months ended June 30, 2020. The increase
in net interest income of $870,000, or 9.1%, was primarily due to
the decrease in interest expense that exceeded a decrease in
interest income.
The decrease in interest expense and interest income is
consistent with the decrease in interest rates in response to the
COVID-19 pandemic and its impact on the economy and interest rate
environment. However, our cost of interest bearing liabilities
decreased much greater than our yield on interest earning assets as
our interest bearing liabilities repriced much faster to lower
rates than our yield on interest earning assets. In this regard,
our cost of interest bearing liabilities decreased by 89 basis
points from 1.80% for the three months ended June 30, 2020 to 0.91%
for the three months ended June 30, 2021. Our yield on interest
earning assets decreased by 53 basis points from 5.58% for the
three months ended June 30, 2020 to 5.05% for the three months
ended June 30, 2021.
Net interest margin increased by 18 basis points, or 4.2%,
during the three months ended June 30, 2021 to 4.49%
compared to 4.31% during the three months ended June 30,
2020.
Net interest income totaled $20.7 million for
the six months ended June 30, 2021, as compared to
$19.0 million for the six months ended June 30,
2020. The increase in net interest income of $1.8 million, or 9.4%,
was primarily due to the decrease in interest expense that exceeded
a decrease in interest income.
In a manner consistent with the decrease in interest rates in
response to the COVID-19 pandemic, our cost of interest bearing
liabilities decreased much greater than our yield on interest
earning assets as our interest bearing liabilities repriced much
faster to lower rates than our yield on interest earning assets. In
this regard, our cost of interest bearing liabilities decreased by
96 basis points from 1.93% for the six months ended June 30, 2020
to 0.97% for the six months ended June 30, 2021. Our yield on
interest earning assets decreased by 62 basis points from 5.76% for
the six months ended June 30, 2020 to 5.14% for the six months
ended June 30, 2021.
Net interest margin increased by 17 basis points, or 3.9%,
during the six months ended June 30, 2021 to 4.54%
compared to 4.37% during the six months ended June 30,
2020.
Non-Interest IncomeNon-interest income for the
three months ended June 30, 2021 was $778,000 compared to
non-interest income of $541,000 for the three months ended
June 30, 2020. The increase in total non-interest income was
primarily due to an increase of $193,000 in other loan fees and
service charges, an increase of $32,000 in investment advisory
fees, a net gain of $7,000 on the sale of fixed assets, and an
increase of $6,000 in other non-interest income, partially offset
by a decrease of $1,000 in bank owned life insurance income.
Non-interest income for the six months ended June 30,
2021 was $1.2 million compared to non-interest income of $1.4
million for the six months ended June 30, 2020. The
decrease in total non-interest income was primarily due to an
unrealized loss of $62,000 in our equity securities in the 2021
period compared to an unrealized gain of $299,000 in the comparable
period in 2020, a decrease of $119,000 in other non-interest
income, and a decrease of $10,000 in bank owned life insurance
income. These were partially offset by an increase of $245,000 in
other loan fees and service charges, an increase of $36,000 in
investment advisory fees, and a net gain of $7,000 on the sale of
fixed assets.
Non-Interest ExpenseNon-interest expense
increased by $8,000, or 0.1%, to $6.3 million for
the three months ended June 30, 2021 from
$6.3 million for the three months ended
June 30, 2020. The increase resulted primarily from increases
of $244,000 in other operating expense and $45,000 in equipment
expense, partially offset by decreases of $88,000 in outside data
processing expense, $77,000 in salaries and employee benefits,
$67,000 in real estate owned expense, $42,000 in advertising
expense, and $7,000 in occupancy expense.
Non-interest expense increased by $493,000, or 4.0%, to
$12.9 million for the six months ended June 30,
2021 from $12.4 million for the six months ended
June 30, 2020. The increase resulted primarily from increases
of $303,000 in salaries and employee benefits, $195,000 in other
operating expense, $88,000 in occupancy expense, and $77,000 in
equipment expense, partially offset by decreases of $73,000 in real
estate owned expense, $71,000 in advertising expense, and $26,000
in outside data processing expense.
Income TaxesWe recorded income tax expense
of $1.1 million and $752,000 for the three months ended
June 31, 2021 and 2020, respectively. For
the three months ended June 30, 2021, we had
approximately $174,000 in tax exempt income, compared to
approximately $165,000 in tax exempt income for
the three months ended June 30, 2020. Our effective
income tax rates were 23.2% and 23.3% for
the three months ended June 30, 2021 and 2020,
respectively.
We recorded income tax expense of $2.1 million and $1.7 million
for the six months ended June 31, 2021 and 2020,
respectively. For the six months ended June 30,
2021, we had approximately $336,000 in tax exempt income, compared
to approximately $337,000 in tax exempt income for
the six months ended June 30, 2020. Our effective
income tax rates were 23.2% and 23.4% for the six months
ended June 30, 2021 and 2020, respectively.
Asset QualityOur ratio of non-performing assets
to total assets remained low at 0.52% as of June 30, 2021. Our
net charge-offs remained low with $11,000 of net charge-offs
recorded during the six months ended June 30, 2021,
compared to a net recovery of $21,000 during the six months
ended June 30, 2020. We recorded a $17,000 provision for loan
losses during the six months ended June 30, 2021,
compared to a $532,000 provision for loan losses during the
six months ended June 30, 2020.
The provision recorded for the six months ended
June 30, 2020 was primarily attributed to the perceived
potential credit risk associated with the COVID-19 pandemic,
although no specific or probable losses were identified at that
time. Although the COVID-19 pandemic and the resulting recession
has impacted the local economy, we have not experienced any
significant deterioration of our borrowers’ ability to keep current
in accordance with the terms of their obligations. Based on a
review of the loans that were in the loan portfolio at
June 30, 2021, management believes that the allowance is
maintained at a level that represents its best estimate of inherent
losses in the loan portfolio that were both probable and reasonably
estimable.
Our allowance for loan losses totaled $5.1 million, or 0.61% of
total loans as of June 30, 2021, compared to $5.1 million, or
0.62% of total loans as of December 31, 2020.
CapitalThe Bank’s capital position remains
strong relative to current regulatory requirements and is
considered a well-capitalized institution under the Prompt
Corrective Action framework. As of June 30, 2021, the Bank had
a tier 1 leverage capital ratio of 14.84% and a total risk-based
capital ratio of 13.58%. The Company’s total stockholder’s equity
to assets was 14.94% as of June 30, 2021. At June 30, 2021,
the Company had the ability to borrow $41.2 million from the
Federal Home Loan Bank of New York.
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 nine 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, 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. 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.
NORTHEAST COMMUNITY
BANCORP, INC.CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION(Unaudited)
|
|
June 30, |
|
December 31, |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
(In thousands, except share |
|
|
and per share amounts) |
ASSETS |
|
|
|
|
|
|
Cash and amounts due from depository institutions |
|
$ |
8,953 |
|
|
$ |
7,613 |
|
Interest-bearing deposits |
|
|
154,882 |
|
|
|
61,578 |
|
Cash and cash equivalents |
|
|
163,835 |
|
|
|
69,191 |
|
Certificates of deposit |
|
|
100 |
|
|
|
100 |
|
Equity Securities |
|
|
10,270 |
|
|
|
10,332 |
|
Securities available-for-sale, at fair value |
|
|
2 |
|
|
|
2 |
|
Securities held-to-maturity (fair value of $10,932 and $7,519,
respectively) |
|
|
10,842 |
|
|
|
7,382 |
|
Loans receivable |
|
|
829,970 |
|
|
|
824,708 |
|
Deferred loan (fees) costs, net |
|
|
338 |
|
|
|
113 |
|
Allowance for loan losses |
|
|
(5,094 |
) |
|
|
(5,088 |
) |
Net loans |
|
|
825,214 |
|
|
|
819,733 |
|
Premises and equipment, net |
|
|
23,187 |
|
|
|
18,675 |
|
Investments in restricted stock, at cost |
|
|
1,569 |
|
|
|
1,595 |
|
Bank owned life insurance |
|
|
24,987 |
|
|
|
24,691 |
|
Accrued interest receivable |
|
|
3,619 |
|
|
|
3,838 |
|
Goodwill |
|
|
651 |
|
|
|
651 |
|
Real estate owned |
|
|
1,996 |
|
|
|
1,996 |
|
Property held for investment |
|
|
1,500 |
|
|
|
1,518 |
|
Right of Use Assets – Operating |
|
|
2,830 |
|
|
|
3,094 |
|
Right of Use Assets – Financing |
|
|
361 |
|
|
|
363 |
|
Other assets |
|
|
5,570 |
|
|
|
5,060 |
|
Total assets |
|
$ |
1,076,533 |
|
|
$ |
968,221 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
257,808 |
|
|
$ |
221,371 |
|
Interest bearing |
|
|
540,996 |
|
|
|
550,335 |
|
Total deposits |
|
|
798,804 |
|
|
|
771,706 |
|
Advance payments by borrowers for taxes and insurance |
|
|
2,012 |
|
|
|
2,258 |
|
Federal Home Loan Bank advances |
|
|
28,000 |
|
|
|
28,000 |
|
Lease Liability – Operating |
|
|
2,864 |
|
|
|
3,115 |
|
Lease Liability – Financing |
|
|
478 |
|
|
|
460 |
|
Stock Subscription |
|
|
74,933 |
|
|
|
- |
|
Accounts payable and accrued expenses |
|
|
8,595 |
|
|
|
8,857 |
|
Total liabilities |
|
|
915,686 |
|
|
|
814,396 |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock, $0.01 par value; 1,000,000 shares authorized, none
issued |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value;
19,000,000 shares authorized; 13,225,000 shares issued; and
12,194,611 shares outstanding at June 30, 2021 and December 31,
2020, respectively |
|
$ |
132 |
|
|
$ |
132 |
|
Additional paid-in capital |
|
|
56,974 |
|
|
|
56,901 |
|
Unearned Employee Stock Ownership Plan (“ESOP”) shares |
|
|
(1,166 |
) |
|
|
(1,296 |
) |
Treasury stock – at cost, 1,030,389 shares at June 30, 2021 and
December 31, 2020, respectively |
|
|
(7,032 |
) |
|
|
(7,032 |
) |
Retained earnings |
|
|
112,127 |
|
|
|
105,305 |
|
Accumulated other comprehensive loss |
|
|
(188 |
) |
|
|
(185 |
) |
Total stockholders’ equity |
|
|
160,847 |
|
|
|
153,825 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,076,533 |
|
|
$ |
968,221 |
|
|
|
|
|
|
|
|
NORTHEAST COMMUNITY
BANCORP, INC.CONSOLIDATED STATEMENTS OF
INCOME(Unaudited)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2021 |
|
2020 |
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
(In thousands, except per share amounts) |
|
(In thousands, except per share amounts) |
|
INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
11,575 |
|
$ |
12,196 |
|
$ |
23,302 |
|
|
$ |
24,441 |
|
Interest-earning deposits |
|
|
11 |
|
|
11 |
|
|
21 |
|
|
|
331 |
|
Securities – taxable |
|
|
90 |
|
|
108 |
|
|
173 |
|
|
|
224 |
|
Total Interest Income |
|
|
11,676 |
|
|
12,315 |
|
|
23,496 |
|
|
|
24,996 |
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,113 |
|
|
2,622 |
|
|
2,395 |
|
|
|
5,685 |
|
Borrowings |
|
|
176 |
|
|
176 |
|
|
350 |
|
|
|
332 |
|
Financing Lease |
|
|
9 |
|
|
9 |
|
|
18 |
|
|
|
18 |
|
Total Interest Expense |
|
|
1,298 |
|
|
2,807 |
|
|
2,763 |
|
|
|
6,035 |
|
Net Interest Income |
|
|
10,378 |
|
|
9,508 |
|
|
20,733 |
|
|
|
18,961 |
|
Provision for loan
loss |
|
|
— |
|
|
518 |
|
|
17 |
|
|
|
532 |
|
Net Interest Income after Provision for Loan
Losses |
|
|
10,378 |
|
|
8,990 |
|
|
20,716 |
|
|
|
18,429 |
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loan fees and service charges |
|
|
393 |
|
|
200 |
|
|
715 |
|
|
|
470 |
|
Gain on disposition of equipment |
|
|
7 |
|
|
— |
|
|
7 |
|
|
|
— |
|
Earnings on bank owned life insurance |
|
|
148 |
|
|
149 |
|
|
295 |
|
|
|
305 |
|
Investment advisory fees |
|
|
124 |
|
|
92 |
|
|
242 |
|
|
|
206 |
|
Unrealized gain (loss) on equity securities |
|
|
93 |
|
|
93 |
|
|
(62 |
) |
|
|
299 |
|
Other |
|
|
13 |
|
|
7 |
|
|
24 |
|
|
|
143 |
|
Total Non-Interest Income |
|
|
778 |
|
|
541 |
|
|
1,221 |
|
|
|
1,423 |
|
NON-INTEREST
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
3,512 |
|
|
3,589 |
|
|
7,169 |
|
|
|
6,866 |
|
Occupancy expense |
|
|
472 |
|
|
479 |
|
|
1,045 |
|
|
|
957 |
|
Equipment |
|
|
239 |
|
|
194 |
|
|
488 |
|
|
|
411 |
|
Outside data processing |
|
|
337 |
|
|
425 |
|
|
824 |
|
|
|
850 |
|
Advertising |
|
|
24 |
|
|
66 |
|
|
47 |
|
|
|
118 |
|
Real estate owned expense |
|
|
26 |
|
|
93 |
|
|
68 |
|
|
|
141 |
|
Other |
|
|
1,699 |
|
|
1,455 |
|
|
3,223 |
|
|
|
3,028 |
|
Total Non-Interest Expenses |
|
|
6,309 |
|
|
6,301 |
|
|
12,864 |
|
|
|
12,371 |
|
INCOME BEFORE
PROVISION FOR INCOME TAXES |
|
|
4,847 |
|
|
3,230 |
|
|
9,073 |
|
|
|
7,481 |
|
PROVISION FOR INCOME
TAXES |
|
|
1,126 |
|
|
752 |
|
|
2,107 |
|
|
|
1,747 |
|
NET
INCOME |
|
$ |
3,721 |
|
$ |
2,478 |
|
$ |
6,966 |
|
|
$ |
5,734 |
|
EARNINGS PER COMMON
SHARE – BASIC AND DILUTED |
|
$ |
0.31 |
|
$ |
0.21 |
|
$ |
0.58 |
|
|
$ |
0.48 |
|
WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING – BASIC AND
DILUTED |
|
|
12,075 |
|
|
12,049 |
|
|
12,075 |
|
|
|
12,049 |
|
DIVIDENDS DECLARED PER
COMMON SHARE |
|
$ |
0.03 |
|
$ |
0.03 |
|
$ |
0.03 |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTHEAST COMMUNITY
BANCORP, INC.SELECTED CONSOLIDATED FINANCIAL
DATA(Unaudited)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share amounts) |
|
(In thousands, except per share amounts) |
|
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted |
|
$ |
0.31 |
|
|
$ |
0.21 |
|
|
$ |
0.58 |
|
|
$ |
0.48 |
|
|
Weighted average shares outstanding - basic and diluted |
|
|
12,075 |
|
|
|
12,049 |
|
|
|
12,075 |
|
|
|
12,049 |
|
|
Performance
ratios/data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average total assets |
|
|
1.50 |
% |
|
|
1.05 |
% |
|
|
1.42 |
% |
|
|
1.23 |
% |
|
Return on average shareholders' equity |
|
|
9.32 |
% |
|
|
6.75 |
% |
|
|
8.83 |
% |
|
|
7.88 |
% |
|
Net interest income |
|
$ |
10,378 |
|
|
$ |
9,509 |
|
|
$ |
20,733 |
|
|
$ |
18,960 |
|
|
Net interest margin |
|
|
4.49 |
% |
|
|
4.31 |
% |
|
|
4.54 |
% |
|
|
4.37 |
% |
|
Efficiency ratio |
|
|
56.56 |
% |
|
|
62.71 |
% |
|
|
58.60 |
% |
|
|
60.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio
composition: |
|
|
|
|
|
|
|
|
June 30, 2021 |
|
|
December 31, 2020 |
|
One-to-four family |
|
|
|
|
|
|
|
$ |
4,803 |
|
|
$ |
6,170 |
|
|
Multi-family |
|
|
|
|
|
|
|
|
89,514 |
|
|
|
90,506 |
|
|
Mixed-use |
|
|
|
|
|
|
|
|
28,230 |
|
|
|
30,508 |
|
|
Total residential real estate |
|
|
|
|
|
|
|
|
122,547 |
|
|
|
127,184 |
|
|
Non-residential real estate |
|
|
|
|
|
|
|
|
55,144 |
|
|
|
60,665 |
|
|
Construction |
|
|
|
|
|
|
|
|
571,963 |
|
|
|
545,788 |
|
|
Commercial and industrial |
|
|
|
|
|
|
|
|
79,973 |
|
|
|
90,577 |
|
|
Overdrafts |
|
|
|
|
|
|
|
|
302 |
|
|
|
452 |
|
|
Consumer |
|
|
|
|
|
|
|
|
41 |
|
|
|
42 |
|
|
Gross loans |
|
|
|
|
|
|
|
|
829,970 |
|
|
|
824,708 |
|
|
Deferred loan (fees) costs, net |
|
|
|
|
|
|
|
|
338 |
|
|
|
113 |
|
|
Total loans |
|
|
|
|
|
|
|
$ |
830,308 |
|
|
$ |
824,821 |
|
|
Asset quality
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due over 90 days and still accruing |
|
|
|
|
|
|
|
$ |
- |
|
|
$ |
- |
|
|
Non-accrual loans |
|
|
|
|
|
|
|
|
3,593 |
|
|
|
3,572 |
|
|
OREO property |
|
|
|
|
|
|
|
|
1,996 |
|
|
|
1,996 |
|
|
Total non-performing
assets |
|
|
|
|
|
|
|
$ |
5,589 |
|
|
$ |
5,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net recoveries
(charge-offs) |
|
$ |
(8 |
) |
|
$ |
7 |
|
|
$ |
(11 |
) |
|
$ |
21 |
|
|
Allowance for loan losses to
total loans |
|
|
|
|
|
|
|
|
0.61 |
% |
|
|
0.62 |
% |
|
Allowance for loan losses to
non-performing loans |
|
|
|
|
|
|
|
|
141.78 |
% |
|
|
142.60 |
% |
|
Non-performing loans to total
loans |
|
|
|
|
|
|
|
|
0.43 |
% |
|
|
0.43 |
% |
|
Non-performing assets to total
assets |
|
|
|
|
|
|
|
|
0.52 |
% |
|
|
0.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank's Regulatory
Capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets |
|
|
|
|
|
|
|
|
13.58 |
% |
|
|
13.72 |
% |
|
Total capital to risk-weighted assets |
|
|
|
|
|
|
|
|
13.12 |
% |
|
|
13.23 |
% |
|
Tier 1 capital to risk-weighted assets |
|
|
|
|
|
|
|
|
13.12 |
% |
|
|
13.23 |
% |
|
Tier 1 leverage ratio |
|
|
|
|
|
|
|
|
14.84 |
% |
|
|
14.79 |
% |
|
NORTHEAST COMMUNITY
BANCORP, INC.NET INTEREST MARGIN
ANALYSIS(Unaudited)
|
|
Three Months Ended June 30, 2021 |
|
Three Months Ended June 30, 2020 |
|
|
Average |
|
Interest |
|
Average |
|
Average |
|
|
|
Average |
|
|
Balance |
|
and dividend |
|
Yield |
|
Balance |
|
Interest |
|
Yield |
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except yield/cost
information) |
|
(In thousands, except yield/cost
information) |
Loan receivable Gross |
|
$ |
833,973 |
|
|
$ |
11,575 |
|
|
5.55 |
% |
|
$ |
804,843 |
|
|
$ |
12,196 |
|
|
6.06 |
% |
Securities (1) |
|
|
21,513 |
|
|
|
90 |
|
|
1.67 |
% |
|
|
20,689 |
|
|
|
108 |
|
|
2.09 |
% |
Other interest-earning
assets |
|
|
69,368 |
|
|
|
11 |
|
|
0.06 |
% |
|
|
57,037 |
|
|
|
11 |
|
|
0.08 |
% |
Total interest-earning assets |
|
|
924,854 |
|
|
|
11,676 |
|
|
5.05 |
% |
|
|
882,569 |
|
|
|
12,315 |
|
|
5.58 |
% |
Allowance for loan losses |
|
|
(5,103 |
) |
|
|
|
|
|
|
|
|
(4,881 |
) |
|
|
|
|
|
|
Non-interest-earning
assets |
|
|
72,615 |
|
|
|
|
|
|
|
|
|
62,887 |
|
|
|
|
|
|
|
Total assets |
|
$ |
992,366 |
|
|
|
|
|
|
|
|
$ |
940,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposit |
|
$ |
114,675 |
|
|
$ |
164 |
|
|
0.57 |
% |
|
$ |
109,640 |
|
|
$ |
142 |
|
|
0.52 |
% |
Savings and club accounts |
|
|
101,162 |
|
|
|
48 |
|
|
0.19 |
% |
|
|
104,526 |
|
|
|
236 |
|
|
0.90 |
% |
Certificates of deposit |
|
|
324,420 |
|
|
|
901 |
|
|
1.11 |
% |
|
|
379,913 |
|
|
|
2,244 |
|
|
2.36 |
% |
Total interest-bearing deposits |
|
|
540,257 |
|
|
|
1,113 |
|
|
0.82 |
% |
|
|
594,079 |
|
|
|
2,622 |
|
|
1.77 |
% |
Borrowed money |
|
|
28,000 |
|
|
|
185 |
|
|
2.64 |
% |
|
|
28,000 |
|
|
|
185 |
|
|
2.64 |
% |
Total interest-bearing liabilities |
|
|
568,257 |
|
|
|
1,298 |
|
|
0.91 |
% |
|
|
622,079 |
|
|
|
2,807 |
|
|
1.80 |
% |
Non-interest-bearing
demand deposit |
|
|
239,996 |
|
|
|
|
|
|
|
|
|
159,953 |
|
|
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
|
24,429 |
|
|
|
|
|
|
|
|
|
11,656 |
|
|
|
|
|
|
|
Total liabilities |
|
|
832,682 |
|
|
|
|
|
|
|
|
|
793,688 |
|
|
|
|
|
|
|
Equity |
|
|
159,684 |
|
|
|
|
|
|
|
|
|
146,887 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
992,366 |
|
|
|
|
|
|
|
|
$ |
940,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / interest spread |
|
|
|
|
$ |
10,378 |
|
|
4.14 |
% |
|
|
|
|
$ |
9,508 |
|
|
3.78 |
% |
Net interest rate margin |
|
|
|
|
|
|
|
|
4.49 |
% |
|
|
|
|
|
|
|
|
4.31 |
% |
Net interest earning assets |
|
$ |
356,597 |
|
|
|
|
|
|
|
|
$ |
260,490 |
|
|
|
|
|
|
|
Average interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing liabilities |
|
|
162.75 |
% |
|
|
|
|
|
|
|
|
141.87 |
% |
|
|
|
|
|
|
(1) Includes
Federal Home Loan Bank of New York stock.
|
|
Six Months Ended June 30, 2021 |
|
Six Months Ended June 30, 2020 |
|
|
Average |
|
Interest |
|
Average |
|
Average |
|
|
|
Average |
|
|
Balance |
|
and dividend |
|
Yield |
|
Balance |
|
Interest |
|
Yield |
|
|
(In thousands, except yield/cost
information) |
|
(In thousands, except yield/cost
information) |
Loan receivable Gross |
|
$ |
834,219 |
|
|
$ |
23,302 |
|
|
5.59 |
% |
|
$ |
785,691 |
|
|
$ |
24,441 |
|
|
6.22 |
% |
Securities (1) |
|
|
20,312 |
|
|
|
173 |
|
|
1.70 |
% |
|
|
20,683 |
|
|
|
224 |
|
|
2.17 |
% |
Other interest-earning
assets |
|
|
58,942 |
|
|
|
21 |
|
|
0.07 |
% |
|
|
61,079 |
|
|
|
331 |
|
|
1.08 |
% |
Total interest-earning assets |
|
|
913,473 |
|
|
|
23,496 |
|
|
5.14 |
% |
|
|
867,453 |
|
|
|
24,996 |
|
|
5.76 |
% |
Allowance for loan losses |
|
|
(5,096 |
) |
|
|
|
|
|
|
|
|
(4,751 |
) |
|
|
|
|
|
|
Non-interest-earning
assets |
|
|
70,157 |
|
|
|
|
|
|
|
|
|
67,842 |
|
|
|
|
|
|
|
Total assets |
|
$ |
978,534 |
|
|
|
|
|
|
|
|
$ |
930,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposit |
|
$ |
111,357 |
|
|
$ |
320 |
|
|
0.57 |
% |
|
$ |
109,973 |
|
|
$ |
464 |
|
|
0.84 |
% |
Savings and club accounts |
|
|
101,893 |
|
|
|
127 |
|
|
0.25 |
% |
|
|
102,163 |
|
|
|
459 |
|
|
0.90 |
% |
Certificates of deposit |
|
|
330,546 |
|
|
|
1,948 |
|
|
1.18 |
% |
|
|
387,125 |
|
|
|
4,762 |
|
|
2.46 |
% |
Total interest-bearing deposits |
|
|
543,796 |
|
|
|
2,395 |
|
|
0.88 |
% |
|
|
599,261 |
|
|
|
5,685 |
|
|
1.90 |
% |
Borrowed money |
|
|
28,000 |
|
|
|
368 |
|
|
2.63 |
% |
|
|
25,577 |
|
|
|
350 |
|
|
2.74 |
% |
Total interest-bearing liabilities |
|
|
571,796 |
|
|
|
2,763 |
|
|
0.97 |
% |
|
|
624,838 |
|
|
|
6,035 |
|
|
1.93 |
% |
Non-interest-bearing
demand deposit |
|
|
229,854 |
|
|
|
|
|
|
|
|
|
148,964 |
|
|
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
|
19,020 |
|
|
|
|
|
|
|
|
|
11,221 |
|
|
|
|
|
|
|
Total liabilities |
|
|
820,670 |
|
|
|
|
|
|
|
|
|
785,023 |
|
|
|
|
|
|
|
Equity |
|
|
157,864 |
|
|
|
|
|
|
|
|
|
145,521 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
978,534 |
|
|
|
|
|
|
|
|
$ |
930,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / interest spread |
|
|
|
|
$ |
20,733 |
|
|
4.18 |
% |
|
|
|
|
$ |
18,961 |
|
|
3.83 |
% |
Net interest rate margin |
|
|
|
|
|
|
|
|
4.54 |
% |
|
|
|
|
|
|
|
|
4.37 |
% |
Net interest earning assets |
|
$ |
341,677 |
|
|
|
|
|
|
|
|
$ |
242,615 |
|
|
|
|
|
|
|
Average interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing liabilities |
|
|
159.76 |
% |
|
|
|
|
|
|
|
|
138.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes Federal Home Loan Bank of New York
stock.
CONTACT:
Kenneth A. Martinek
Chairman and Chief Executive Officer
PHONE: 914) 684-2500
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