- NorthEast Community Bancorp (NECB, Financial) reported a decrease in net income to $10.6 million in Q1 2025.
- Total assets decreased by 3.8% to $1.9 billion, with a 5.1% drop in deposits.
- Robust new loan originations amounted to $170.1 million, primarily in construction and multi-family segments.
NorthEast Community Bancorp, Inc. (NECB) announced a net income of $10.6 million, or $0.80 per basic share, for the first quarter of 2025. This figure marks a decrease from the $11.4 million, or $0.87 per basic share, reported in the same quarter of the previous year. The return on average assets was 2.12%, and the return on average equity stood at 12.98%, illustrating strong performance metrics.
The company's total assets saw a reduction of 3.8%, settling at $1.9 billion, while net loans decreased by 4.8% to $1.7 billion. Deposits also fell by 5.1%, amounting to $1.6 billion. During this period, the bank generated new loan originations totaling $170.1 million, with $110.2 million allocated to construction loans and $49.1 million to multi-family loans, indicating a strong focus on these segments.
Asset quality remained robust, with no non-performing loans and a non-performing assets ratio of 0.26%. The allowance for credit losses was reported at $5.1 million, which is 0.30% of total loans, reflecting prudent financial management.
Net interest income experienced a decline of 2.9%, reaching $24.3 million for the quarter, while the net interest margin decreased from 5.75% to 5.11%, highlighting a slight margin compression. Despite these challenges, the company's strategic reduction in higher-cost brokered deposits suggests a focused approach to optimizing funding costs.
Overall, NorthEast Community Bancorp (NECB, Financial) continues to demonstrate resilient profitability and strong fundamentals amidst a challenging economic environment.
