10-Q - NorthEast Community Bancorp, Inc./MD/ (0001847398) (Filer)

Fri, May 9, 2:49 PM (4 days ago)

**NorthEast Community Bancorp, Inc. (NECB) - Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total revenue for Q1 2025 was $38.2 million, a slight increase from $38.1 million in Q1 2024. - **Net Income:** Net income decreased by 7.1% to $10.6 million from $11.4 million in the previous year. - **Profit Margins:** Net interest income after provision for credit losses decreased by 4.5% to $24.0 million. - **Cash Flow:** Net cash provided by operating activities was $10.9 million, down from $12.9 million in Q1 2024. **Earnings Changes:** - **Earnings Per Share (EPS):** Basic EPS was $0.80, down from $0.87 in Q1 2024. Diluted EPS was $0.78, down from $0.86. - **Non-Interest Income:** Increased by 122.9% to $1.2 million, driven by gains in equity securities and loan fees. **Quarterly Performance & Trends:** - **Loans:** Net loans decreased by 4.8% to $1.7 billion, with a significant reduction in construction loans. - **Deposits:** Total deposits decreased by 5.1% to $1.6 billion, with a shift from certificates of deposit to high-yield money market accounts. - **Asset Quality:** Non-performing assets remained at $5.1 million, with no non-accrual loans. **Uncertainties & Future Operations:** - **Interest Rate Risk:** The bank is exposed to interest rate fluctuations, with a net interest margin decrease of 64 basis points. - **Credit Risk:** The allowance for credit losses increased to $5.1 million, with recoveries and provisions offsetting charge-offs. - **Liquidity:** The bank maintains adequate liquidity ratios, with access to borrowing facilities from the Federal Home Loan Bank and Federal Reserve. **Management Discussion:** - **Economic Conditions:** The bank faces uncertainties due to higher inflation and potential recessionary conditions. - **Regulatory Environment:** The bank is subject to regulatory capital requirements and monitors its capital levels closely. - **Strategic Initiatives:** The bank is focusing on loan growth, deposit management, and cost control to mitigate risks and enhance shareholder value. **Ticker:** NECB **Note:** This summary is for informational purposes and should not be considered financial advice. Always consult with a financial professional for personalized advice.