Northeast Community Bancorp, Inc. (NECB) SEC Filings & Earnings Calls

Net income declined YoY due to higher provision or expenses; allowance for off-balance sheet commitments increased 32.3% reflecting higher unfunded commitments.

“Net income $10.7M vs $11.9M YoY; allowance for off-balance sheet commitments increased $284,000 to $1.2M.”

Equity securities decreased due to market depreciation of $1.3M from interest rate volatility.

“Equity securities decreased $341,000 ... attributable to market depreciation of $1.3 million due to market interest rate volatility.” · word for word

Credit loss expense increase

“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.” · word for word

Deposit outflow

“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.” · word for word

Multi-family loan demand decline

“Multi-family loan originations decreased by $74.6 million, or 78.2%, to $20.8 million for the six months ended June 30, 2026 from $95.4 million for the six months ended June 30, 2025 due to changes related to rent and housing regulations in New York City and the uncertainty regarding interest rates.” · word for word

Net income decreased YoY due to higher provision and charge-offs.

“Net income declined from $11.2M to $9.8M in Q2; provision for credit losses totaled $568,000 and charge-offs $547,000.”

Concentration in construction lending exposes to real estate cycle risk.

“Construction loans dominate originations ($606.7M of $653.2M) and unfunded commitments are large ($883M).”

Net interest margin compression from falling rates

“Our net interest margin decreased 12 basis points, or 2.4%, to 4.99% for the three months ended March 31, 2026 compared to 5.11% for the three months ended March 31, 2025.” · word for word

Loan portfolio contraction

“Loans, net of the allowance for credit losses, decreased $31.8 million, or 1.7%, to $1.8 billion at March 31, 2026 from $1.9 billion at December 31, 2025.” · word for word

Concentration risk in construction lending; loan portfolio decreased due to paydowns and refinancing by other institutions.

“The decrease in our construction loan portfolio was due to 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.” · word for word

Concentration in construction lending

“The 2026 Equity Incentive Plan is intended to serve as a successor to the Company’s existing 2022 Equity Incentive Plan. (No direct risk factor in proxy, but the 10-Q shows heavy construction loan concentration.)”

Dependence on key executives

“Employment agreements with Messrs. Martinek, Collazo and Hom provide for 36-month terms and significant severance benefits.”

Construction Lending Concentration

“Construction loans represented 392% of the Bank’s total risk-based capital at December 31, 2025” · word for word

Deposit Outflow and Funding Shift

“Total deposits decreased $53.5 million, or 3.2%, to $1.6 billion at December 31, 2025 from $1.7 billion at December 31, 2024.” · word for word

Net Interest Margin Compression

“Net interest margin decreased 37 basis points, or 6.6%, to 5.25% for the year ended December 31, 2025 compared to 5.62% for the year ended December 31, 2024.” · word for word

Concentration in construction lending; any real estate downturn could impact portfolio.

“Construction loans dominant; unfunded commitments large.”

Deposit outflow; borrowings increased to fund loan growth.

“decrease of $53.5 million in deposits...increase of $70.0 million in borrowings” · word for word

Minimal risk from board change; no operational impact.

“No disagreement or material arrangements.”

Buyback may reduce liquidity but signals management confidence.

“Program is discretionary; no obligation to purchase.”

Deposit outflow risk

“Total deposits decreased $155.0 million, or 9.3%, to $1.5 billion at September 30, 2025 from $1.7 billion at December 31, 2024.” · word for word

Net interest margin compression

“Our net interest margin decreased 30 basis points, or 5.3%, to 5.38% for the three months ended September 30, 2025 compared to 5.68% for the three months ended September 30, 2024.” · word for word

Commercial real estate exposure

“The write down of $222,000 on the fair market value of a foreclosed property during the nine months ended September 30, 2025 was due to the office occupancy rate in the Pittsburgh business district office market continuing to deteriorate due to workers continuing to work remotely post pandemic and the high operating expenses due to inflation.” · word for word

Earnings decline due to lower net income; asset quality remains strong.

“Net income down 6.3% YoY; no non-performing loans.”