Q3 Net Income Slips to $10.7M as Margin Compresses and Non-Performers Emerge
NECB sits 50% above its 52-week low of $19.27.
Summary
Q3 net income came in at $10.7M, or $0.79 diluted EPS, down from $11.9M and $0.87 a year ago. The culprit is margin: net interest margin fell to 5.09% from 5.38%, continuing the compression that already cut Q2 earnings to $9.8M from $11.2M. The new wrinkle is credit — non-performing assets rose to $17.4M, or 0.79% of assets, tied to one construction and two C&I loans, a shift from the zero-NPA profile the bank has touted. Growth itself is intact: loans rose $160.0M to $2.0B and deposits $202.7M to $1.8B, though the deposit mix is tilting toward brokered CDs, which raises funding costs later. With the stock near its 52-week high, the margin and credit trends are the debate; resolution of those three loans without losses is the next checkpoint.
At the time of this announcement, NECB was trading at $28.83 on NASDAQ in the Finance sector, with a market capitalization of approximately $396.9M. The 52-week trading range was $19.27 to $29.05. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.