NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”),
the parent holding company of NorthEast Community Bank (the
“Bank”), reported net income of $4.2 million, or $0.27 per basic
and diluted common share, for the quarter ended December 31, 2021
compared to net income of $3.5 million, or $0.22 per basic and
diluted common share, for the quarter ended December 31, 2020.
For the year ended December 31, 2021, the Company reported net
income of $11.9 million, or $0.75 per basic and diluted common
share, compared to $12.3 million, or $0.76 per basic and diluted
common share. Earnings for the year ended December 31, 2021 were
impacted by a $3.6 million write off reported in the third quarter
of 2021.
Kenneth A. Martinek, NorthEast Community Bancorp’s Chairman of
the Board and Chief Executive Officer, stated, “We are pleased to
report a strong finish to 2021 with a quarter of steady earnings
and good asset quality, with no loans past due or in foreclosure at
December 31, 2021. Despite the continuing COVID-19 pandemic, loan
demand remained strong with originations increasing quarter over
quarter. Our commitments, loans-in-process, and standby letters of
credit outstanding totaled $749.0 million at December 31, 2021
compared to $565.3 million at December 31, 2020. At this time, we
have one loan, with a conservative loan to value ratio, on deferral
as a result of the COVID-19 pandemic. As has been in the past,
construction lending for affordable housing units in high demand
high absorption areas continues to be our focus.”
Highlights for the quarter and year ended at December 31, 2021
are as follows:
- Net income increased by $695,000,
or 19.8%, for the quarter ended December 31, 2021 compared to the
same period in the prior year.
- For the year ended December 31,
2021, the Company recorded net income of $11.9 million, or $0.75
per basic and diluted share.
- Net interest income increased by
$1.4 million, or 13.9%, for the quarter ended December 31, 2021
compared to the same period in 2020 and by $4.3 million, or 11.0%,
for the year ended December 31, 2021 compared to the same period in
2020.
- Asset quality metrics continued to
remain strong with non-performing assets to total assets of 0.16%
at December 31, 2021 compared to 0.58% at December 31, 2020. Our
allowance for loan losses totaled $5.2 million, or 0.54% of total
loans at December 31, 2021 compared to $5.1 million, or 0.62% of
total loans at December 31, 2020.
- In accordance with the provisions
of the Coronavirus Aid, Relief, and Economic Security Act (the
“CARES Act”) since March 2020, we have granted pandemic-related
loan payment deferrals to 196 loans totaling $190.9 million at the
time payment deferral was requested. At December 31, 2021, we had
one loan totaling $79,000 still in deferral status.
Balance Sheet SummaryTotal assets increased by
$256.8 million, or 26.5%, to $1.2 billion at December 31,
2021, from $968.2 million at December 31, 2020. The
increase in assets was primarily due to increases in net loans of
$148.4 million, cash and cash equivalents of $83.1 million,
investment securities held-to-maturity of $10.5 million, investment
in equity securities of $9.6 million, and premises and equipment of
$5.2 million.
Cash and cash equivalents increased by $83.1 million, or
120.1%, to $152.3 million at December 31, 2021 from
$69.2 million at December 31, 2020. The increase in cash
was primarily attributable to an increase in deposits of $155.5
million coupled with an increase in stockholders’ equity primarily
due to the completion of the second-step conversion offering that
increased stockholders’ equity by $88.4 million, net of conversion
costs. These sources of funds were deployed via an increase in
loans of $148.4 million, an increase in investment securities
held-to-maturity of $10.5 million, an increase in equity securities
of $9.6 million, an increase in property and equipment of $5.2
million due primarily to the purchase of property for a new branch
office, and cash dividends of $2.3 million.
Equity securities increased by $9.6 million, or 93.0%, to $19.9
million at December 31, 2021 from $10.3 million at December 31,
2020. The increase in equity securities was primarily attributed to
the purchase of equity securities totaling $10.0 million, partially
offset by market depreciation of $389,000.
Securities held-to-maturity increased by $10.5 million, or
142.2%, to $17.9 million at December 31, 2021 from
$7.4 million at December 31, 2020. The increase was
primarily due to the purchase of investment securities totaling
$15.3 million, partially offset by maturities and pay-downs of $4.8
million.
Loans, net of the allowance for loan losses, increased by
$148.4 million, or 18.1%, to $968.1 million at December
31, 2021 from $819.7 million at December 31, 2020. The
increase in loans, net of the allowance for loan losses, was
primarily due to loan originations of $727.3 million, consisting
primarily of $603.4 million in construction loans with respect to
which approximately 36.8% of the funds were disbursed at loan
closings and the remaining funds to be disbursed over the terms of
the construction loans.
Loan originations resulted in a net increase of
$138.0 million in construction loans, $27.8 million in
commercial and industrial loans, $1.3 million in mixed-use
loans, and $1.0 million in one- to four-family loans. The increases
in our loan portfolio were partially offset by decreases in
non-residential loans of $13.7 million and multi-family loans
of $6.1 million, coupled with normal pay-downs and principal
reductions.
Premises and equipment increased by $5.2 million, or 28.0%, to
$23.9 million at December 31, 2021 from $18.7 million at
December 31, 2020 due to the acquisition of property for a new
branch site located in Monsey, New York.
Foreclosed real estate was $2.0 million at both December
31, 2021 and December 31, 2020.
Right of use assets — operating decreased by $530,000, or 17.1%,
to $2.6 million at December 31, 2021 from $3.1 million at
December 31, 2020, primarily due to amortization.
Other assets decreased by $377,000, or 7.5%, to
$4.7 million at December 31, 2021 from $5.1 million at
December 31, 2020 due to a decrease in tax assets of $708,000
and a decrease in suspense accounts of $55,000, partially offset by
an increase in prepaid expense of $365,000.
Total deposits increased by $155.5 million, or 20.1%, to
$927.2 million at December 31, 2021 from $771.7 million
at December 31, 2020. The increase was primarily due to an
increase in non-interest bearing demand deposits
of $109.5 million, or 49.5%, an increase in savings account
balances of $83.2 million, or 81.8%, and an increase in NOW/money
market accounts of $17.5 million, or 17.3%, from December 31,
2020 to December 31, 2021. These increases were partially offset by
a decrease in certificates of deposit of $54.7 million, or
15.7%, from December 31, 2020 to December 31, 2021.
Federal Home Loan Bank advances were $28.0 million at both
December 31, 2021 and December 31, 2020.
Advance payments by borrowers for taxes and insurance decreased
by $374,000, or 16.6%, to $1.9 million at December 31, 2021 from
$2.3 million at December 31, 2020 due primarily to the reduction in
the commercial real estate loan portfolio.
Lease liability – operating decreased by $511,000, or 16.4%, to
$2.6 million at December 31, 2021 from $3.1 million at December 31,
2020, primarily due to amortization.
Accounts payable and accrued expenses increased by $4.7 million,
or 52.9%, to $13.5 million at December 31, 2021 from $8.8 million
at December 31, 2020 due primarily to an increase in suspense
accounts for loan closings of $2.7 million, an increase in deferred
compensation of $496,000, an increase in dividend declared but not
paid of $782,000, and an increase in accrued expenses of
$692,000.
Stockholders’ equity increased by $97.6 million, or 63.4%
to $251.4 million at December 31, 2021, from
$153.8 million at December 31, 2020. The increase in
stockholders’ equity was primarily a result of the completion of
the second-step conversion offering which increased stockholders’
equity by $88.4 million, net of conversion costs, coupled with a
$7.0 million from the retirement of treasury shares, offset by the
$7.8 million cost related to the implementation of an employee
stock ownership plan in connection with the second-step
conversion.
The increase in stockholders’ equity was also due to net income
of $11.9 million for the year ended December 31, 2021 and
a reduction of $931,000 in unearned employee stock ownership plan
shares, partially offset by dividends paid/declared of $2.9 million
and $46,000 in other comprehensive income.
Net Interest IncomeNet interest income totaled
$11.7 million for the quarter ended December 31, 2021, as
compared to $10.2 million for the quarter ended December
31, 2020. The increase in net interest income of $1.5 million, or
13.9%, was primarily due to an increase in interest income combined
with a decrease in interest expense.
The increase in interest income is attributable to increases in
loans, investment securities, equity securities, and
interest-bearing deposits as we continued to deploy the proceeds
raised in the second-step conversion. The decrease in interest
expense is attributable to a decrease in the balances and cost of
funds on our certificates of deposits, partially offset by
increases in the balances and cost of funds in our interest-bearing
demand deposits and our savings and club accounts.
In this regard, interest and dividend income increased by
$833,000, or 7.0%, to $12.8 million for the quarter ended December
31, 2021 from $12.0 million for the quarter ended December 31, 2020
due to an increase in the average balance of interest earning
assets of $196.9 million, or 22.3%, to $1.1 billion for the quarter
ended December 31, 2021 from $881.7 million for the quarter ended
December 31, 2020, partially offset by a decrease in the yield on
interest earning assets by 69 basis points from 5.44% for the
quarter ended December 31, 2020 to 4.75% for the quarter ended
December 31, 2021.
Interest expense decreased by $593,000, or 33.9%, to $1.2
million for the quarter ended December 31, 2021 from $1.7 million
for the quarter ended December 31, 2020 due to a decrease in the
cost of interest bearing liabilities by 43 basis points from 1.22%
for the quarter ended December 31, 2020 to 0.79% for the quarter
ended December 31, 2021, partially offset by an increase in average
interest bearing liabilities of $8.3 million, or 1.5%, to
$582.6 million for the quarter ended December 31, 2021 from $574.3
million for the quarter ended December 31, 2020.
Net interest margin decreased by 32 basis points, or 6.9%,
during the quarter ended December 31, 2021 to 4.32% compared
to 4.64% during the quarter ended December 31, 2020.
Net interest income totaled $43.3 million for the year
ended December 31, 2021, as compared to $39.0 million for
the year ended December 31, 2020. The increase in net interest
income of $4.3 million, or 11.0%, was primarily due to the decrease
in interest expense that exceeded a decrease in interest
income.
In a manner consistent with the decrease in interest rates in
response to the COVID-19 pandemic, our cost of interest bearing
liabilities decreased much greater than our yield on interest
earning assets as our interest bearing liabilities repriced much
faster to lower rates than our yield on interest earning assets. In
this regard, our cost of interest bearing liabilities decreased by
75 basis points from 1.65% for the year ended December 31, 2020 to
0.90% for the year ended December 31, 2021. Our yield on interest
earning assets decreased by 67 basis points from 5.59% for the year
ended December 31, 2020 to 4.92% for the year ended December 31,
2021.
Net interest margin decreased by 5 basis points, or 1.0%, during
the year ended December 31, 2021 to 4.40% compared to 4.45%
during the year ended December 31, 2020.
Provision for Loan LossesThe Company recorded
no loan loss provision for the quarter ended December 31, 2021
compared to a loan loss provision of $53,000 for the quarter ended
December 31, 2020. We had no charge-offs for the quarter ended
December 31, 2021 compared to charge-offs totaling $354,000 for the
quarter ended December 31, 2020. We recorded recoveries of $1,000
during each of the quarter ended December 31, 2021 and December 31,
2020.
The Company recorded a loan loss provision of $3.6 million for
the year ended December 31, 2021 compared to a loan loss provision
of $814,000 for the year ended December 31, 2020.
The provision recorded for the year ended December 31, 2021 was
primarily attributed to the charge-off of $3.6 million during the
quarter ended September 30, 2021 relating to a non-residential
bridge loan secured by real estate with a balance of $3.6 million.
The loan is secured by commercial real estate located in Greenwich,
Connecticut and guaranteed by the two borrowers. The loan was
originated in 2016 as a two-year bridge loan and, upon the
borrower’s failure to satisfy the loan at the maturity date, the
loan was accelerated and a foreclosure action was instituted. The
loan remains in foreclosure but is subject to Connecticut’s
continuing foreclosure backlog. The property securing the loan is
subject to a parking easement and based on a recently updated
appraisal showing the property’s value with the parking easement to
be zero, the Company determined to write off the $3.6 million loan
as a non-cash charge against the allowance for loan losses.
The Company is aggressively seeking recovery of all amounts due
from the personal guarantors of the loan. However, the recovery
process is uncertain and might take an extended period of time to
resolve this matter. In the event the Company is successful against
the guarantors, any recovery received would be added back to the
allowance for loan losses and an analysis would be performed at
that time to determine the appropriateness of the recovery into
income.
The provision recorded for the year ended December 31, 2020 was
primarily attributable to the perceived potential credit risk
associated with the COVID-19 pandemic, although no specific or
probable losses were identified at that time. Although the COVID-19
pandemic and the resulting recession has impacted the local
economy, we have not experienced any significant deterioration of
our borrowers’ ability to keep current in accordance with the terms
of their obligations.
We charged-off $23,000 and $28,000 during the year ended
December 31, 2021 and December 31, 2020, respectively, against
various unpaid overdrafts in our demand deposit accounts. We
recorded recoveries of $161,000 and $26,000 during the year ended
December 31, 2021 and December 31, 2020, respectively.
Non-Interest IncomeNon-interest income for the
quarter ended December 31, 2021 was $601,000 compared to
non-interest income of $613,000 for the quarter ended December 31,
2020. The decrease in total non-interest income was primarily due
to unrealized loss on equity securities of $174,000 during the
quarter ended December 31, 2021 compared to an unrealized loss on
equity securities of $10,000 during the quarter ended December 31,
2020 and a decrease of $82,000 in other non-interest income. These
decreases were partially offset by an increase of $148,000 in other
loan fees and service charges, an increase of $27,000 in investment
advisory fees, and a net loss of $59,000 on the sale of fixed
assets that occurred during the quarter ended December 31, 2020
compared to none during the quarter ended December 31, 2021.
Non-interest income for the year ended December 31, 2021 was
$2.4 million compared to non-interest income of $2.5 million for
the year ended December 31, 2020. The decrease in total
non-interest income was primarily due to an unrealized loss of
$389,000 in our equity securities in the 2021 period compared to an
unrealized gain of $288,000 in the comparable period in 2020, a
decrease of $153,000 in other non-interest income, and a decrease
of $9,000 in bank owned life insurance income. These were partially
offset by an increase of $523,000 in other loan fees and service
charges, an increase of $89,000 in investment advisory fees, and a
net gain of $7,000 on the sale of fixed assets in the 2021 period
compared to a net loss of $61,000 on the sale of fixed assets in
the 2020 period.
Non-Interest ExpenseNon-interest expense
increased by $54,000, or 0.8%, to $6.8 million for
the quarter ended December 31, 2021 from $6.7 million for
the quarter ended December 31, 2020. The increase resulted
primarily from increases of $197,000 in other operating expense,
$86,000 in occupancy expense, and $31,000 in advertising expense,
partially offset by decreases of $130,000 in real estate owned
expense, $48,000 in impairment loss on goodwill, $38,000 in
equipment expense, $38,000 in outside data processing expense, and
$6,000 in salaries and employee benefits.
Non-interest expense increased by $1.4 million, or 5.5%, to
$26.5 million for the year ended December 31, 2021 from
$25.1 million for the year ended December 31, 2020. The
increase resulted primarily from increases of $1.2 million in
salaries and employee benefits, $405,000 in other operating
expense, $183,000 in occupancy expense, and $76,000 in equipment
expense, partially offset by decreases of $220,000 in real estate
owned expense, $119,000 in outside data processing expense, $98,000
in impairment loss on goodwill, and $29,000 in advertising
expense.
Income TaxesWe recorded income tax expense
of $1.3 million and $579,000 for the quarter ended December
31, 2021 and 2020, respectively. For the quarter ended
December 31, 2021, we had approximately $189,000 in tax exempt
income, compared to approximately $168,000 in tax exempt income for
the quarter ended December 31, 2020. Our effective income tax
rates were 23.6% and 14.2% for the quarter ended December 31,
2021 and 2020, respectively.
We recorded income tax expense of $3.7 million and $3.3 million
for the year ended December 31, 2021 and 2020, respectively.
For the year ended December 31, 2021, we had approximately
$711,000 in tax exempt income, compared to approximately $671,000
in tax exempt income for the year ended December 31, 2020. Our
effective income tax rates were 23.6% and 21.0% for the year
ended December 31, 2021 and 2020, respectively.
Asset QualityDuring the year ended December 31,
2021, non-performing assets decreased by $3.6 million, or 64.2%, to
$2.0 million from $5.6 million as of December 31,
2020. The decrease in non-performing assets was primarily due to
the previously disclosed charge-off of $3.6 million on a
non-accrual, non-residential bridge loan during the third quarter
of 2021. We had no non-performing loans at December 31,
2021 compared to one non-performing loan at December 31, 2020.
Our ratio of non-performing assets to total assets remained low at
0.16% as of December 31, 2021 compared to 0.58% as of December 31,
2020.
Based on a review of the loans that were in the loan portfolio
at December 31, 2021, management believes that the allowance is
maintained at a level that represents its best estimate of inherent
losses in the loan portfolio that were both probable and reasonably
estimable.
The Company’s allowance for loan losses totaled $5.2 million, or
0.54% of total loans as of December 31, 2021, compared to $5.1
million, or 0.62% of total loans as of December 31, 2020.
CapitalThe Company’s total stockholder’s equity
to assets was 20.52% as of December 31, 2021. At December 31, 2021,
the Company had the ability to borrow $29.4 million from the
Federal Home Loan Bank of New York.
The Bank’s capital position remains strong relative to current
regulatory requirements and the Bank is considered a
well-capitalized institution under the Prompt Corrective Action
framework. As of December 31, 2021, the Bank had a tier 1 leverage
capital ratio of 16.79% and a total risk-based capital ratio of
14.87%.
Annual Meeting of StockholdersOn February 4,
2022, the Company also announced that its annual meeting of
stockholders will be held on May 26, 2022.
About NorthEast Community BancorpNorthEast
Community Bancorp, headquartered at 325 Hamilton Avenue, White
Plains, New York 10601, is the holding company for NorthEast
Community Bank, which conducts business through its ten branch
offices located in Bronx, New York, Orange, and Rockland Counties
in New York and Essex, Middlesex, and Norfolk Counties in
Massachusetts and three loan production offices located in New
City, New York, White Plains, New York, and Danvers, Massachusetts.
For more information about NorthEast Community Bancorp and
NorthEast Community Bank, please visit www.necb.com.
Forward Looking StatementThis press release
contains certain forward-looking statements. Forward-looking
statements include statements regarding anticipated future events
and can be identified by the fact that they do not relate strictly
to historical or current facts. They often include words such as
“believe,” “expect,” “anticipate,” “estimate,” and “intend” or
future or conditional verbs such as “will,” “would,” “should,”
“could,” or “may.” Forward-looking statements, by their nature, are
subject to risks and uncertainties. Certain factors that could
cause actual results to differ materially from expected results
include, but are not limited to, changes in market interest rates,
regional and national economic conditions, the effect of the
COVID-19 pandemic (including its impact on NorthEast Community
Bank’s business operations and credit quality, on our customers and
their ability to repay their loan obligations and on general
economic and financial market conditions), legislative and
regulatory changes, monetary and fiscal policies of the United
States government, including policies of the United States Treasury
and the Federal Reserve Board, the quality and composition of the
loan or investment portfolios, demand for loan products, deposit
flows, competition, demand for financial services in NorthEast
Community Bank’s market area, changes in the real estate market
values in NorthEast Community Bank’s market area and changes in
relevant accounting principles and guidelines. Additionally, other
risks and uncertainties may be described in our annual and
quarterly reports filed with the U.S. Securities and Exchange
Commission (the “SEC”), which are available through the SEC’s
website located at www.sec.gov. These risks and uncertainties
should be considered in evaluating any forward-looking statements
and undue reliance should not be placed on such statements. Except
as required by applicable law or regulation, the Company does not
undertake, and specifically disclaims any obligation, to release
publicly the result of any revisions that may be made to any
forward-looking statements to reflect events or circumstances after
the date of the statements or to reflect the occurrence of
anticipated or unanticipated events.
|
|
CONTACT: |
Kenneth A. Martinek |
|
Chairman and Chief Executive Officer |
|
|
PHONE: |
(914) 684-2500 |
|
|
|
|
NORTHEAST COMMUNITY
BANCORP, INC.CONSOLIDATED STATEMENTS OF
FINANCIAL CONDITION(Unaudited)
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
2020 |
|
|
|
(In thousands, except share |
|
|
and per share amounts) |
ASSETS |
|
|
|
|
|
|
Cash and amounts due from depository institutions |
|
$ |
8,344 |
|
|
$ |
7,613 |
|
Interest-bearing deposits |
|
|
143,925 |
|
|
|
61,578 |
|
Total Cash and cash equivalents |
|
|
152,269 |
|
|
|
69,191 |
|
Certificates of deposit |
|
|
100 |
|
|
|
100 |
|
Equity securities |
|
|
19,943 |
|
|
|
10,332 |
|
Securities available-for-sale,
at fair value |
|
|
1 |
|
|
|
2 |
|
Securities held-to-maturity
(fair value of $17,383 and $7,519, respectively) |
|
|
17,880 |
|
|
|
7,382 |
|
Loans receivable |
|
|
972,851 |
|
|
|
824,708 |
|
Deferred loan costs, net |
|
|
484 |
|
|
|
113 |
|
Allowance for loan losses |
|
|
(5,242 |
) |
|
|
(5,088 |
) |
Net loans |
|
|
968,093 |
|
|
|
819,733 |
|
Premises and equipment,
net |
|
|
23,907 |
|
|
|
18,675 |
|
Investments in restricted
stock, at cost |
|
|
1,569 |
|
|
|
1,595 |
|
Bank owned life insurance |
|
|
25,291 |
|
|
|
24,691 |
|
Accrued interest
receivable |
|
|
4,283 |
|
|
|
3,838 |
|
Goodwill |
|
|
651 |
|
|
|
651 |
|
Real estate owned |
|
|
1,996 |
|
|
|
1,996 |
|
Property held for
investment |
|
|
1,481 |
|
|
|
1,518 |
|
Right of Use
Assets – Operating |
|
|
2,564 |
|
|
|
3,094 |
|
Right of Use
Assets – Financing |
|
|
359 |
|
|
|
363 |
|
Other assets |
|
|
4,683 |
|
|
|
5,060 |
|
Total assets |
|
$ |
1,225,070 |
|
|
$ |
968,221 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
330,853 |
|
|
$ |
221,371 |
|
Interest bearing |
|
|
596,311 |
|
|
|
550,335 |
|
Total deposits |
|
|
927,164 |
|
|
|
771,706 |
|
Advance payments by borrowers
for taxes and insurance |
|
|
1,884 |
|
|
|
2,258 |
|
Federal Home Loan Bank
advances |
|
|
28,000 |
|
|
|
28,000 |
|
Lease
Liability – Operating |
|
|
2,604 |
|
|
|
3,115 |
|
Lease
Liability – Financing |
|
|
496 |
|
|
|
460 |
|
Accounts payable and accrued
expenses |
|
|
13,540 |
|
|
|
8,857 |
|
Total liabilities |
|
|
973,688 |
|
|
|
814,396 |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock, $0.01 and $0.01 par value; 25,000,000 shares and
1,340,000 shares authorized; none issued or outstanding,
respectively |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 and $0.01 par value; 75,000,000 shares and
25,460,000 shares authorized; 16,377,936 shares and 17,721,500
shares issued; and 16,377,936 shares and 16,340,779 shares
outstanding, respectively¹ |
|
$ |
164 |
|
|
$ |
132 |
|
Additional paid-in capital |
|
|
145,335 |
|
|
|
56,901 |
|
Unearned Employee Stock Ownership Plan (“ESOP”) shares |
|
|
(8,301 |
) |
|
|
(1,296 |
) |
Treasury stock – at cost, 0 and 1,380,721 shares,
respectively¹ |
|
|
- |
|
|
|
(7,032 |
) |
Retained earnings |
|
|
114,323 |
|
|
|
105,305 |
|
Accumulated other comprehensive loss |
|
|
(139 |
) |
|
|
(185 |
) |
Total stockholders’ equity |
|
|
251,382 |
|
|
|
153,825 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,225,070 |
|
|
$ |
968,221 |
|
|
|
|
|
|
|
|
¹Shares amounts related to periods prior to the July 12, 2021
closing of the conversion offering have been restated to give
retroactive recognition to the 1.34 exchange ratio applied in the
conversion offering.
NORTHEAST COMMUNITY
BANCORP, INC.CONSOLIDATED STATEMENTS OF
INCOME(Unaudited)
|
|
Quarter Ended December 31 |
|
Year Ended December 31 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(In thousands, except per share amounts) |
INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
12,661 |
|
|
$ |
11,880 |
|
|
$ |
47,898 |
|
|
$ |
48,202 |
|
Interest-earning deposits |
|
|
41 |
|
|
|
13 |
|
|
|
115 |
|
|
|
360 |
|
Securities |
|
|
114 |
|
|
|
90 |
|
|
|
391 |
|
|
|
415 |
|
Total Interest Income |
|
|
12,816 |
|
|
|
11,983 |
|
|
|
48,404 |
|
|
|
48,977 |
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
969 |
|
|
|
1,562 |
|
|
|
4,359 |
|
|
|
9,254 |
|
Borrowings |
|
|
178 |
|
|
|
178 |
|
|
|
706 |
|
|
|
687 |
|
Financing lease |
|
|
9 |
|
|
|
9 |
|
|
|
36 |
|
|
|
36 |
|
Total Interest Expense |
|
|
1,156 |
|
|
|
1,749 |
|
|
|
5,101 |
|
|
|
9,977 |
|
Net Interest Income |
|
|
11,660 |
|
|
|
10,234 |
|
|
|
43,303 |
|
|
|
39,000 |
|
Provision for loan
loss |
|
|
— |
|
|
|
53 |
|
|
|
3,610 |
|
|
|
814 |
|
Net Interest Income after Provision for Loan
Losses |
|
|
11,660 |
|
|
|
10,181 |
|
|
|
39,693 |
|
|
|
38,186 |
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
Other loan fees and service charges |
|
|
472 |
|
|
|
324 |
|
|
|
1,568 |
|
|
|
1,045 |
|
Gain (loss) on disposition of equipment |
|
|
— |
|
|
|
(59 |
) |
|
|
7 |
|
|
|
(61 |
) |
Earnings on bank owned life insurance |
|
|
153 |
|
|
|
153 |
|
|
|
600 |
|
|
|
609 |
|
Investment advisory fees |
|
|
133 |
|
|
|
106 |
|
|
|
514 |
|
|
|
425 |
|
Unrealized gain (loss) on equity securities |
|
|
(174 |
) |
|
|
(10 |
) |
|
|
(389 |
) |
|
|
288 |
|
Other |
|
|
17 |
|
|
|
99 |
|
|
|
54 |
|
|
|
207 |
|
Total Non-Interest Income |
|
|
601 |
|
|
|
613 |
|
|
|
2,354 |
|
|
|
2,513 |
|
NON-INTEREST
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
3,773 |
|
|
|
3,779 |
|
|
|
14,996 |
|
|
|
13,809 |
|
Occupancy expense |
|
|
581 |
|
|
|
495 |
|
|
|
2,115 |
|
|
|
1,932 |
|
Equipment |
|
|
275 |
|
|
|
313 |
|
|
|
993 |
|
|
|
917 |
|
Outside data processing |
|
|
434 |
|
|
|
472 |
|
|
|
1,652 |
|
|
|
1,771 |
|
Advertising |
|
|
55 |
|
|
|
24 |
|
|
|
139 |
|
|
|
168 |
|
Impairment loss on goodwill |
|
|
- |
|
|
|
48 |
|
|
|
- |
|
|
|
98 |
|
Real estate owned expense |
|
|
8 |
|
|
|
138 |
|
|
|
93 |
|
|
|
313 |
|
Other |
|
|
1,630 |
|
|
|
1,433 |
|
|
|
6,485 |
|
|
|
6,080 |
|
Total Non-Interest Expenses |
|
|
6,756 |
|
|
|
6,702 |
|
|
|
26,473 |
|
|
|
25,088 |
|
INCOME BEFORE
PROVISION FOR INCOME TAXES |
|
|
5,505 |
|
|
|
4,092 |
|
|
|
15,574 |
|
|
|
15,611 |
|
PROVISION FOR INCOME
TAXES |
|
|
1,297 |
|
|
|
579 |
|
|
|
3,669 |
|
|
|
3,282 |
|
NET
INCOME |
|
$ |
4,208 |
|
|
$ |
3,513 |
|
|
$ |
11,905 |
|
|
$ |
12,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTHEAST COMMUNITY
BANCORP, INC.SELECTED CONSOLIDATED FINANCIAL
DATA(Unaudited)
|
|
Quarter Ended December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
(In thousands, except per share amounts) |
|
(In thousands, except per share amounts) |
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted¹ |
|
$ |
0.27 |
|
|
$ |
0.22 |
|
|
$ |
0.75 |
|
|
$ |
0.76 |
|
Weighted average shares outstanding - basic and diluted¹ |
|
|
15,501 |
|
|
|
16,163 |
|
|
|
15,854 |
|
|
|
16,150 |
|
Performance
ratios/data: |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average total assets |
|
|
1.46% |
|
|
|
1.49% |
|
|
|
1.13% |
|
|
|
1.31% |
|
Return on average shareholders' equity |
|
|
6.71% |
|
|
|
9.20% |
|
|
|
6.03% |
|
|
|
8.31% |
|
Net interest income |
|
$ |
11,660 |
|
|
$ |
10,234 |
|
|
$ |
43,303 |
|
|
$ |
39,000 |
|
Net interest margin |
|
|
4.32% |
|
|
|
4.64% |
|
|
|
4.40% |
|
|
|
4.45% |
|
Efficiency ratio |
|
|
55.10% |
|
|
|
62.25% |
|
|
|
57.98% |
|
|
|
60.43% |
|
Net charge-off ratio |
|
|
0.00% |
|
|
|
0.17% |
|
|
|
0.40% |
|
|
|
0.04% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan portfolio
composition: |
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
One-to-four family |
|
|
|
|
|
|
|
$ |
7,189 |
|
|
$ |
6,170 |
|
Multi-family |
|
|
|
|
|
|
|
|
84,426 |
|
|
|
90,506 |
|
Mixed-use |
|
|
|
|
|
|
|
|
31,827 |
|
|
|
30,508 |
|
Total residential real estate |
|
|
|
|
|
|
|
|
123,442 |
|
|
|
127,184 |
|
Non-residential real estate |
|
|
|
|
|
|
|
|
46,933 |
|
|
|
60,665 |
|
Construction |
|
|
|
|
|
|
|
|
683,830 |
|
|
|
545,788 |
|
Commercial and industrial |
|
|
|
|
|
|
|
|
118,378 |
|
|
|
90,577 |
|
Consumer |
|
|
|
|
|
|
|
|
268 |
|
|
|
494 |
|
Gross loans |
|
|
|
|
|
|
|
|
972,851 |
|
|
|
824,708 |
|
Deferred loan (fees) costs, net |
|
|
|
|
|
|
|
|
484 |
|
|
|
113 |
|
Total loans |
|
|
|
|
|
|
|
$ |
973,335 |
|
|
$ |
824,821 |
|
Asset quality
data: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due over 90 days and still accruing |
|
|
|
|
|
|
|
$ |
- |
|
|
$ |
- |
|
Non-accrual loans |
|
|
|
|
|
|
|
|
- |
|
|
|
3,572 |
|
OREO property |
|
|
|
|
|
|
|
|
1,996 |
|
|
|
1,996 |
|
Total non-performing
assets |
|
|
|
|
|
|
|
$ |
1,996 |
|
|
$ |
5,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
total loans |
|
|
|
|
|
|
|
|
0.54% |
|
|
|
0.62% |
|
Allowance for loan losses to
non-performing loans |
|
|
|
|
|
|
|
|
NA |
|
|
|
142.44% |
|
Non-performing loans to total
loans |
|
|
|
|
|
|
|
|
0.00% |
|
|
|
0.43% |
|
Non-performing assets to total
assets |
|
|
|
|
|
|
|
|
0.16% |
|
|
|
0.58% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank's Regulatory
Capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk-weighted assets |
|
|
|
|
|
|
|
|
15.28% |
|
|
|
13.72% |
|
Total capital to risk-weighted assets |
|
|
|
|
|
|
|
|
14.87% |
|
|
|
13.23% |
|
Tier 1 capital to risk-weighted assets |
|
|
|
|
|
|
|
|
14.87% |
|
|
|
13.23% |
|
Tier 1 leverage ratio |
|
|
|
|
|
|
|
|
16.79% |
|
|
|
14.79% |
|
¹Shares amounts related to periods prior to the July 12, 2021
closing of the conversion offering have been restated to give
retroactive recognition to the 1.34 exchange ratio applied in the
conversion offering.
NORTHEAST COMMUNITY
BANCORP, INC.NET INTEREST MARGIN
ANALYSIS(Unaudited)
|
|
Quarter Ended December 31, 2021 |
|
Quarter Ended December 31, 2020 |
|
|
|
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
|
|
|
Balance |
|
and dividend |
|
Yield |
|
Balance |
|
and dividend |
|
Yield |
|
|
|
(In thousands, except yield/cost
information) |
|
(In thousands, except yield/cost
information) |
|
Loan receivable Gross |
|
$ |
933,783 |
|
|
$ |
12,661 |
|
|
5.42 |
% |
|
$ |
811,487 |
|
|
$ |
11,880 |
|
|
5.86 |
% |
|
Securities (1) |
|
|
30,435 |
|
|
|
114 |
|
|
1.50 |
% |
|
|
19,507 |
|
|
|
90 |
|
|
1.85 |
% |
|
Other interest-earning
assets |
|
|
114,356 |
|
|
|
41 |
|
|
0.14 |
% |
|
|
50,694 |
|
|
|
13 |
|
|
0.10 |
% |
|
Total interest-earning assets |
|
|
1,078,574 |
|
|
|
12,816 |
|
|
4.75 |
% |
|
|
881,688 |
|
|
|
11,983 |
|
|
5.44 |
% |
|
Allowance for loan losses |
|
|
(5,242 |
) |
|
|
|
|
|
|
|
|
(5,182 |
) |
|
|
|
|
|
|
|
Non-interest-earning
assets |
|
|
77,027 |
|
|
|
|
|
|
|
|
|
68,584 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,150,359 |
|
|
|
|
|
|
|
|
$ |
945,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposit |
|
$ |
119,598 |
|
|
$ |
193 |
|
|
0.65 |
% |
|
$ |
97,501 |
|
|
$ |
153 |
|
|
0.63 |
% |
|
Savings and club accounts |
|
|
133,938 |
|
|
|
153 |
|
|
0.46 |
% |
|
|
100,538 |
|
|
|
84 |
|
|
0.33 |
% |
|
Certificates of deposit |
|
|
301,062 |
|
|
|
623 |
|
|
0.83 |
% |
|
|
348,224 |
|
|
|
1,326 |
|
|
1.52 |
% |
|
Total interest-bearing deposits |
|
|
554,598 |
|
|
|
969 |
|
|
0.70 |
% |
|
|
546,263 |
|
|
|
1,563 |
|
|
1.14 |
% |
|
Borrowed money |
|
|
28,000 |
|
|
|
187 |
|
|
2.67 |
% |
|
|
28,000 |
|
|
|
186 |
|
|
2.66 |
% |
|
Total interest-bearing liabilities |
|
|
582,598 |
|
|
|
1,156 |
|
|
0.79 |
% |
|
|
574,263 |
|
|
|
1,749 |
|
|
1.22 |
% |
|
Non-interest-bearing
demand deposit |
|
|
299,911 |
|
|
|
|
|
|
|
|
|
202,587 |
|
|
|
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
|
17,036 |
|
|
|
|
|
|
|
|
|
15,545 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
899,545 |
|
|
|
|
|
|
|
|
|
792,395 |
|
|
|
|
|
|
|
|
Equity |
|
|
250,814 |
|
|
|
|
|
|
|
|
|
152,695 |
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
1,150,359 |
|
|
|
|
|
|
|
|
$ |
945,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / interest spread |
|
|
|
|
$ |
11,660 |
|
|
3.96 |
% |
|
|
|
|
$ |
10,234 |
|
|
4.22 |
% |
|
Net interest rate margin |
|
|
|
|
|
|
|
|
4.32 |
% |
|
|
|
|
|
|
|
|
4.64 |
% |
|
Net interest earning assets |
|
$ |
495,976 |
|
|
|
|
|
|
|
|
$ |
307,425 |
|
|
|
|
|
|
|
|
Average interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing liabilities |
|
|
185.13% |
|
|
|
|
|
|
|
|
|
153.53% |
|
|
|
|
|
|
|
|
____________(1) Includes Federal Home Loan Bank
of New York stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2021 |
|
Year Ended December 31, 2020 |
|
|
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
|
|
Balance |
|
and dividend |
|
Yield |
|
Balance |
|
and dividend |
|
Yield |
|
|
(In thousands, except yield/cost
information) |
|
(In thousands, except yield/cost
information) |
Loan receivable Gross |
|
$ |
866,518 |
|
|
$ |
47,898 |
|
|
5.53 |
% |
|
$ |
797,735 |
|
|
$ |
48,202 |
|
|
6.04 |
% |
Securities (1) |
|
|
24,602 |
|
|
|
391 |
|
|
1.59 |
% |
|
|
20,264 |
|
|
|
415 |
|
|
2.05 |
% |
Other interest-earning
assets |
|
|
91,999 |
|
|
|
115 |
|
|
0.13 |
% |
|
|
58,438 |
|
|
|
360 |
|
|
0.62 |
% |
Total interest-earning assets |
|
|
983,119 |
|
|
|
48,404 |
|
|
4.92 |
% |
|
|
876,437 |
|
|
|
48,977 |
|
|
5.59 |
% |
Allowance for loan losses |
|
|
(5,154 |
) |
|
|
|
|
|
|
|
|
(4,965 |
) |
|
|
|
|
|
|
Non-interest-earning
assets |
|
|
72,855 |
|
|
|
|
|
|
|
|
|
67,494 |
|
|
|
|
|
|
|
Total assets |
|
$ |
1,050,820 |
|
|
|
|
|
|
|
|
$ |
938,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposit |
|
$ |
114,940 |
|
|
$ |
696 |
|
|
0.61 |
% |
|
$ |
104,390 |
|
|
$ |
768 |
|
|
0.74 |
% |
Savings and club accounts |
|
|
108,877 |
|
|
|
328 |
|
|
0.30 |
% |
|
|
101,738 |
|
|
|
626 |
|
|
0.62 |
% |
Certificates of deposit |
|
|
316,690 |
|
|
|
3,335 |
|
|
1.05 |
% |
|
|
372,535 |
|
|
|
7,860 |
|
|
2.11 |
% |
Total interest-bearing deposits |
|
|
540,507 |
|
|
|
4,359 |
|
|
0.81 |
% |
|
|
578,663 |
|
|
|
9,254 |
|
|
1.60 |
% |
Borrowed money |
|
|
28,000 |
|
|
|
742 |
|
|
2.65 |
% |
|
|
26,811 |
|
|
|
723 |
|
|
2.70 |
% |
Total interest-bearing liabilities |
|
|
568,507 |
|
|
|
5,101 |
|
|
0.90 |
% |
|
|
605,474 |
|
|
|
9,977 |
|
|
1.65 |
% |
Non-interest-bearing
demand deposit |
|
|
260,529 |
|
|
|
|
|
|
|
|
|
172,508 |
|
|
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
|
24,310 |
|
|
|
|
|
|
|
|
|
12,595 |
|
|
|
|
|
|
|
Total liabilities |
|
|
853,346 |
|
|
|
|
|
|
|
|
|
790,577 |
|
|
|
|
|
|
|
Equity |
|
|
197,474 |
|
|
|
|
|
|
|
|
|
148,389 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
1,050,820 |
|
|
|
|
|
|
|
|
$ |
938,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / interest spread |
|
|
|
|
$ |
43,303 |
|
|
4.03 |
% |
|
|
|
|
$ |
39,000 |
|
|
3.94 |
% |
Net interest rate margin |
|
|
|
|
|
|
|
|
4.40 |
% |
|
|
|
|
|
|
|
|
4.45 |
% |
Net interest earning assets |
|
$ |
414,612 |
|
|
|
|
|
|
|
|
$ |
270,963 |
|
|
|
|
|
|
|
Average interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing liabilities |
|
|
172.93% |
|
|
|
|
|
|
|
|
|
144.75% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________(1) Includes Federal Home Loan
Bank of New York stock.
NorthEast Community Banc... (NASDAQ:NECB)
Historical Stock Chart
From Jun 2024 to Jul 2024
NorthEast Community Banc... (NASDAQ:NECB)
Historical Stock Chart
From Jul 2023 to Jul 2024