Northeast Community Bancorp (NECB) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $10.0 million ($0.76 basic EPS, $0.74 diluted EPS), down 5.8% from $10.6 million ($0.80 basic, $0.78 diluted) in Q1 2025, mainly due to lower non-interest income and higher non-interest expense.

• Total assets decreased $38.4 million, or 1.9%, to $2.0 billion at March 31, 2026, primarily due to declines in net loans, cash, and other assets.

• Construction loan commitments and loans-in-process outstanding rose 37.8% year-over-year, with $819 million in unfunded commitments, up 20.6% sequentially.

• Asset quality remained strong with no non-performing loans or assets at quarter-end; no loans modified for financial difficulty.

Financial highlights

• Net interest income was $24.1 million, down 0.5% year-over-year; net interest margin decreased to 4.99% from 5.11%.

• Total interest income fell 5.9% to $36.0 million; interest expense decreased 15.1% to $11.8 million.

• Non-interest income dropped 35.5% to $796,000, mainly due to a $421,000 swing in unrealized gains/losses on equity securities.

• Non-interest expense rose 2.4% to $10.9 million, driven by higher salaries, occupancy, and data processing costs.

• Return on average assets was 1.97%; return on average equity was 11.13%; efficiency ratio was 43.64%.

• Income tax expense was $4.1 million, with an effective tax rate of 29.2%, up from 27.8% in Q1 2025.

Outlook and guidance

• Management expects continued robust demand for construction lending in high-absorption submarkets in New York and Massachusetts.

• Liquidity and capital positions remain strong, with sufficient resources to meet unexpected deposit outflows.

• No material changes in risk factors or critical accounting policies since the last annual report.