NorthEast Community Bancorp Q3 Net Income Falls to $10.7 Million
WHITE PLAINS, N.Y., Oct. 22. NorthEast Community Bancorp, Inc. reported net income of $10.7 million for the three months ended September 30, 2026, a decrease from $11.9 million in the same period last year. The company, parent holding company of NorthEast Community Bank, listed on Nasdaq under the ticker NECB, also disclosed net income of $30.4 million for the nine months ended September 30, 2026, compared to $33.6 million in the prior year period.
WHITE PLAINS, N.Y., Oct. 22. NorthEast Community Bancorp, Inc. reported net income of $10.7 million for the three months ended September 30, 2026, a decrease from $11.9 million in the same period last year. The company, parent holding company of NorthEast Community Bank, listed on Nasdaq under the ticker NECB, also disclosed net income of $30.4 million for the nine months ended September 30, 2026, compared to $33.6 million in the prior year period.
Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, attributed the performance to continued growth in the loan portfolio, specifically within construction loans. Martinek noted that the bank focuses on high-demand submarkets in the Bronx, Rockland, Orange, and Sullivan Counties, aiming to provide housing in low- and moderate-income communities. He stated that construction loan commitments and loans-in-process outstanding increased by approximately 18.2% compared to the third quarter of 2025.
As of September 30, 2026, total unfunded loan commitments exceeded $763 million, representing a 12.2% increase over the amount outstanding at December 31, 2025. The company reported a return on average total assets ratio of 2.00% and a return on average shareholders' equity ratio of 11.54% for the third quarter. The efficiency ratio for the same period was 41.50%. For the nine months ended September 30, 2026, the return on average total assets was 1.97%, and the return on average shareholders' equity was 11.16%.
Total assets increased by $152.5 million, or 7.4%, to reach $2.2 billion at September 30, 2026, up from $2.1 billion at December 31, 2025. This growth was driven primarily by a $160.0 million increase in the loan portfolio, which rose to $2.0 billion, or an 8.6% increase from year-end 2025. The allowance for credit losses related to loans remained at $4.7 million, equating to 0.23% of total loans at September 30, 2026.
During the nine months ended September 30, 2026, the bank originated loans totaling $966.4 million, including both commitments and funded loans. Construction loans accounted for $914.8 million of this total, with $393.5 million disbursed at closing. Commercial and industrial loans totaled $26.3 million in originations, while multi-family loans reached $24.0 million. The increase in the construction loan portfolio offset decreases in commercial and industrial loans, which fell by $37.0 million during the period.
Cash and cash equivalents decreased by $8.5 million to $72.6 million at September 30, 2026, from $81.2 million at year-end 2025, partially funding the loan growth. Total stockholders' equity increased by $19.0 million to $370.7 million, representing 16.73% of total assets as of September 30, 2026.