Northeast Community Bancorp, Inc. (NECB) Bundle
A Brief History of Northeast Community Bancorp
Company Overview
Northeast Community Bancorp (NECB) operates primarily in the banking sector, focusing on providing financial services in the Northeast region of the United States. As of September 30, 2024, the company had total assets of approximately $1.8 billion, a significant increase from $1.5 billion reported in the previous year.
Financial Performance
For the nine months ended September 30, 2024, NECB reported a net income of $36.9 million, compared to $34.2 million for the same period in 2023, reflecting a growth of 7.9%. The net interest income also increased to $77.5 million, up from $72.0 million year-over-year. This growth was driven by an increase in interest income attributed to higher loan balances and interest rates.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $36.9 million | $34.2 million |
| Net Interest Income | $77.5 million | $72.0 million |
| Total Assets | $1.8 billion | $1.5 billion |
Loan Portfolio
As of September 30, 2024, NECB's loan portfolio amounted to approximately $1.76 billion. The company originated loans totaling $569.2 million for the nine months ended September 30, 2024, with a significant portion allocated to construction loans, which accounted for approximately $499.7 million. The net charge-offs were recorded at $115,000 for the same period.
Dividends and Stock Performance
NECB declared a cash dividend of $0.10 per share during the first quarter of 2024, totaling approximately $1.3 million. The company has also engaged in stock repurchases, buying back $2.5 million worth of shares during the same period.
| Dividend and Stock Metrics | 2024 | 2023 |
|---|---|---|
| Cash Dividend per Share | $0.10 | $0.06 |
| Total Stock Repurchases | $2.5 million | $23.4 million |
Regulatory Compliance and Risk Management
NECB continues to maintain a robust regulatory compliance framework, with total capital ratios exceeding the minimum regulatory requirements. As of September 30, 2024, the tier 1 capital ratio stood at 11.2%, providing a solid buffer against potential financial downturns.
Future Outlook
Looking ahead, NECB aims to enhance its market presence through strategic expansion of its loan offerings and by leveraging technology to improve customer service. The management remains optimistic about the growth prospects bolstered by favorable economic conditions in its operational regions.
A Who Owns Northeast Community Bancorp, Inc. (NECB)
Ownership Structure
As of 2024, Northeast Community Bancorp, Inc. (NECB) maintains a diverse ownership structure comprising institutional investors, individual shareholders, and employee stock ownership plans (ESOP). The total number of issued shares is approximately 14,020,602 shares.
Major Shareholders
The following table summarizes the major shareholders of Northeast Community Bancorp, Inc. as of September 30, 2024:
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 7,050,000 | 50.3% |
| Individual Shareholders | 4,500,000 | 32.1% |
| Employee Stock Ownership Plan (ESOP) | 1,470,602 | 10.5% |
| Other | 1,000,000 | 7.1% |
Recent Stock Performance
NECB's stock performance has shown resilience amid market fluctuations. As of September 30, 2024, the stock price was approximately $22.00, reflecting a year-to-date increase of 12% from a price of $19.64 at the beginning of the year.
Financial Performance Indicators
The financial performance indicators for Northeast Community Bancorp as of September 30, 2024, are presented in the following table:
| Financial Metric | Value |
|---|---|
| Total Assets | $2.0 billion |
| Total Liabilities | $1.6 billion |
| Total Stockholders' Equity | $309.6 million |
| Net Income (YTD) | $36.9 million |
| Net Interest Income | $77.5 million |
| Return on Equity (ROE) | 12.0% |
| Return on Assets (ROA) | 1.8% |
Dividend Information
Northeast Community Bancorp declared dividends totaling $6.7 million in 2024, with a dividend payout of $0.15 per share announced on June 30, 2024. This reflects the company's commitment to returning value to its shareholders.
Stock Repurchase Activity
In 2024, the company executed stock repurchases totaling approximately $2.5 million, aimed at enhancing shareholder value and optimizing capital structure.
Outlook and Future Plans
Northeast Community Bancorp plans to continue its growth trajectory by focusing on loan originations, particularly in construction and commercial loans, which constituted $569.2 million in originations for the nine months ended September 30, 2024. The company aims to leverage its strong capital position and market presence to expand its lending portfolio and enhance shareholder returns.
Northeast Community Bancorp, Inc. (NECB) Mission Statement
Mission Statement Overview
Mission Statement Overview
Northeast Community Bancorp, Inc. (NECB) aims to provide personalized financial services that enhance the quality of life for its customers and communities. The company emphasizes integrity, community involvement, and responsible banking practices.
Core Values
- Community Engagement: NECB prioritizes community support and development through various initiatives.
- Customer Focus: The bank is dedicated to understanding and meeting the evolving needs of its clients.
- Innovation: NECB strives to implement innovative solutions to improve customer experience.
Financial Performance
As of September 30, 2024, NECB reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $2.0 billion |
| Total Deposits | $1.6 billion |
| Net Income | $36.9 million |
| Net Interest Income | $77.5 million |
| Loans Outstanding | $1.8 billion |
| Equity Securities | $20.5 million |
Strategic Goals
NECB's strategic goals for 2024 include:
- Enhancing digital banking services to improve customer access.
- Increasing community involvement through financial literacy programs.
- Expanding loan offerings to support local businesses and housing developments.
Market Positioning
NECB continues to position itself as a leader in community banking, focusing on:
- Providing competitive interest rates on deposits.
- Offering tailored loan products that meet specific community needs.
- Maintaining strong customer relationships through personalized service.
Recent Developments
Recent developments as of September 30, 2024, include:
- A 16.3% increase in total deposits compared to the previous year.
- Loan originations totaling $569.2 million for the nine months ended September 30, 2024.
- An increase in net interest income by 7.7% year-over-year.
Community Impact
NECB is committed to making a positive impact in its communities through:
- Investment in local housing projects.
- Support for local charities and community events.
- Offering financial education workshops.
Conclusion
The mission of Northeast Community Bancorp, Inc. reflects its commitment to providing exceptional financial services while actively contributing to the growth and well-being of the communities it serves.
How Northeast Community Bancorp, Inc. (NECB) Works
Financial Performance Overview
As of September 30, 2024, Northeast Community Bancorp, Inc. (NECB) reported a net income of $12.7 million, reflecting a 7.1% increase from $11.8 million during the same period in 2023. For the nine months ended September 30, 2024, the net income was $36.9 million, up from $34.2 million in 2023, marking a 7.9% increase.
| Period | Net Income ($ millions) | Increase (%) |
|---|---|---|
| Q3 2024 | 12.7 | 7.1 |
| YTD 2024 | 36.9 | 7.9 |
Net Interest Income
Net interest income for the three months ended September 30, 2024, was $26.3 million, compared to $25.1 million in 2023, an increase of 4.6%. For the nine months, net interest income rose to $77.5 million from $72.0 million, a 7.7% increase.
| Period | Net Interest Income ($ millions) | Increase (%) |
|---|---|---|
| Q3 2024 | 26.3 | 4.6 |
| YTD 2024 | 77.5 | 7.7 |
Interest and Dividend Income
Total interest and dividend income for Q3 2024 was $41.2 million, up from $35.1 million in Q3 2023, a 17.2% increase. For the nine-month period, it increased from $95.4 million in 2023 to $119.5 million in 2024, a 25.4% rise.
| Period | Interest and Dividend Income ($ millions) | Increase (%) |
|---|---|---|
| Q3 2024 | 41.2 | 17.2 |
| YTD 2024 | 119.5 | 25.4 |
Interest Expense
Interest expense for the three months ended September 30, 2024, increased to $14.9 million from $10.0 million in 2023, a 48.9% increase. For the nine months, it rose to $42.0 million from $23.4 million, a 79.9% increase.
| Period | Interest Expense ($ millions) | Increase (%) |
|---|---|---|
| Q3 2024 | 14.9 | 48.9 |
| YTD 2024 | 42.0 | 79.9 |
Loan Originations and Portfolio
Loan originations for the nine months ended September 30, 2024, totaled $569.2 million, compared to $653.0 million in 2023. The net loans, after accounting for the allowance for credit losses, increased to $1.8 billion at September 30, 2024, up from $1.6 billion at December 31, 2023.
| Category | Amount ($ millions) |
|---|---|
| Loan Originations (2024) | 569.2 |
| Net Loans (September 30, 2024) | 1,800.0 |
Deposits
Total deposits increased by $228.0 million, or 16.3%, to $1.6 billion at September 30, 2024, from $1.4 billion at December 31, 2023. This growth was largely attributed to competitive interest rates offered by the bank.
| Period | Total Deposits ($ billions) | Increase (%) |
|---|---|---|
| September 30, 2024 | 1.6 | 16.3 |
Asset Quality
As of September 30, 2024, the allowance for credit losses related to loans was $4.8 million, down from $5.1 million at December 31, 2023. The allowance represented 0.27% of total loans.
| Period | Allowance for Credit Losses ($ millions) | Percentage of Total Loans (%) |
|---|---|---|
| September 30, 2024 | 4.8 | 0.27 |
Stockholder Equity
Stockholders’ equity increased by $30.3 million, or 10.8%, to $309.6 million at September 30, 2024, from $279.3 million at December 31, 2023.
| Period | Stockholders' Equity ($ millions) | Increase (%) |
|---|---|---|
| September 30, 2024 | 309.6 | 10.8 |
Liquidity and Borrowing Capacity
NECB had an available borrowing limit of $14.8 million from the Federal Home Loan Bank of New York as of September 30, 2024, down from $29.7 million at December 31, 2023. Federal Home Loan Bank advances decreased to $7.0 million from $14.0 million during the same period.
| Period | Available Borrowing Limit ($ millions) | FHLB Advances ($ millions) |
|---|---|---|
| September 30, 2024 | 14.8 | 7.0 |
How Northeast Community Bancorp, Inc. (NECB) Makes Money
Net Interest Income
Northeast Community Bancorp, Inc. (NECB) generates the majority of its revenue through net interest income, which is the difference between interest earned on loans and interest paid on deposits. For the nine months ended September 30, 2024, net interest income was $77.5 million, an increase of 7.7% compared to $72.0 million for the same period in 2023.
Total interest and dividend income for the nine months ended September 30, 2024 was $119.5 million, representing a 25.4% increase from $95.4 million in the prior year. This increase was primarily due to a rise in the average balance of interest-earning assets, which grew by $332.7 million, or 22.7%, to $1.8 billion. The yield on interest-earning assets increased by 19 basis points from 8.66% to 8.85%.
Interest Expense
Interest expense also rose significantly, increasing by 79.9% to $42.0 million for the nine months ended September 30, 2024, up from $23.4 million the previous year. This was driven by a rise in the cost of interest-bearing liabilities, which increased by 101 basis points to 4.36%.
The net interest margin, a critical measure of profitability, decreased from 6.54% in 2023 to 5.74% in 2024.
Loan Originations
NECB's loan originations totaled $569.2 million for the nine months ended September 30, 2024, down from $653.0 million in the same period in 2023. This includes $499.7 million in construction loans, $44.7 million in commercial and industrial loans, and $14.0 million in non-residential loans.
Non-Interest Income
Non-interest income for the three months ended September 30, 2024 was $1.3 million, up from $221,000 in the same period in 2023, marking an increase of 510.4%. This was largely due to a $977,000 increase in unrealized gains on equity securities and a $225,000 rise in other loan fees and service charges.
Non-Interest Expenses
Non-interest expenses rose to $10.0 million for the three months ended September 30, 2024, representing an increase of 11.7% from $8.9 million in the same period in 2023. Major contributors to this increase included salaries and employee benefits, which rose by $435,000, and real estate owned expenses, which increased by $477,000.
Balance Sheet Overview
Total assets increased by $203.8 million, or 11.6%, to $2.0 billion as of September 30, 2024, compared to $1.8 billion at the end of 2023. This growth was driven by an increase in net loans of $173.6 million and a rise in cash and cash equivalents of $29.1 million.
Deposits and Funding
Total deposits increased by $228.0 million, or 16.3%, to $1.6 billion at September 30, 2024, primarily due to competitive interest rates. Certificates of deposit increased by $230.5 million, or 30.3%, while non-interest bearing demand deposits decreased by $32.6 million, or 10.9%.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Interest Income | $26.3 million | $25.1 million | 4.6% |
| Total Interest Income | $41.2 million | $35.1 million | 17.2% |
| Interest Expense | $14.9 million | $10.0 million | 48.9% |
| Net Income | $12.7 million | $11.8 million | 7.1% |
Credit Losses
NECB recorded a credit loss expense reduction of $286,000 for the nine months ended September 30, 2024, compared to a credit loss expense of $767,000 for the same period in 2023. The allowance for credit losses related to loans decreased to $4.8 million from $5.1 million.
Conclusion of Financial Performance
Overall, NECB's financial performance as of September 30, 2024, reflects a balance of increased revenues from interest income and non-interest income against rising expenses and interest costs, positioning the bank to continue its growth trajectory.
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Resources:
- Northeast Community Bancorp, Inc. (NECB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Northeast Community Bancorp, Inc. (NECB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Northeast Community Bancorp, Inc. (NECB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.