NECB Q3 Net Income Falls to $10.7M as Non-Performing Assets Jump From Zero to $17.4M
NECB sits 43% above its 52-week low of $19.27 on light trading volume (0.3× avg).
Summary
NorthEast Community Bancorp earned $10.7 million ($0.79 diluted) in Q3, down from $11.9 million a year ago on margin compression, while non-performing assets rose from zero to $17.4 million — 0.79% of total assets.
Key Events · Earnings and Guidance · NECB
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Q3 Profit Declines on Margin Compression
Net income was $10.7 million, or $0.79 per diluted share, versus $11.9 million and $0.87 a year earlier. Net interest margin fell 29 basis points to 5.09% as asset yields dropped 61 basis points to 7.54%.
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Non-Performing Assets Jump From Zero
NPAs totaled $17.4 million, or 0.79% of total assets, at September 30, 2026 versus none at December 31, 2025 — one $13.9 million construction loan and two C&I loans totaling $3.5 million in foreclosure on a Bronx multi-family building. Management expects no losses, citing sufficient collateral.
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Fraud Charge-Offs Lift Expenses
Miscellaneous charge-offs rose $1.1 million for the nine months due to increased customer fraud involving checks and debit cards, pushing other non-interest expense up 11.5% to $9.4 million.
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Loan Growth Funded by Deposit Inflows
Net loans grew $160.0 million, or 8.6%, to $2.0 billion, led by a $207.3 million increase in construction loans. Deposits rose $202.7 million, or 12.5%, to $1.8 billion and borrowings were repaid to zero from $70.0 million.
Analysis · NECB · Finance
Profit slipped 10% year over year to $10.7 million ($0.79 diluted) as the net interest margin compressed 29 basis points to 5.09%, but the bigger change is on the balance sheet: non-performing assets went from zero at year-end to $17.4 million, or 0.79% of total assets. That is one $13.9 million construction loan plus two commercial loans totaling $3.5 million in foreclosure on a Bronx mixed-use building. Management says the loans are sufficiently collateralized and expects no losses, and the allowance covers 27.08% of non-performing loans — but a bank that previously advertised zero NPAs now has a credit story, and the market will reprice that. Fraud-related charge-offs also rose $1.1 million for the nine months.
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In the 30 days to Oct 23, 2026, 29.5% of the 1575 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.19%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, NECB was trading at $27.61 on NASDAQ in the Finance sector, with a market capitalization of approximately $380.1M. The 52-week trading range was $19.27 to $29.05. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.