NorthEast Community Bancorp, Inc. reported a net income of $44.4 million for the fiscal year ending December 31, 2025, a decrease from $47.1 million in the previous year. This decline was primarily attributed to a reduction in net interest income, which fell to $100.7 million from $102.8 million, alongside an increase in non-interest expenses. The company's total assets increased by 2.7% to $2.1 billion, driven by a rise in net loans, which reached $1.9 billion, up from $1.8 billion in 2024. The allowance for credit losses related to loans decreased slightly to $4.7 million, reflecting a credit loss expense reduction for the year.
In terms of operational changes, NorthEast Community Bancorp has shifted its focus towards construction loans, which now represent 71.8% of its total loan portfolio. The company originated loans totaling $860.7 million during the year, with significant contributions from construction and multi-family loans. The bank's strategy includes expanding its branch network to capture growth opportunities in high-demand areas, particularly in New York and Massachusetts. As of December 31, 2025, the bank operated 11 branches and three loan production offices.
The bank's deposit base saw a decrease of 3.2%, totaling $1.6 billion, primarily due to declines in certificates of deposit and non-interest-bearing deposits. However, there were increases in NOW/money market accounts and savings account balances. The bank's reliance on brokered deposits, which accounted for 22.9% of total deposits, remains a key aspect of its funding strategy. The bank's liquidity ratios indicate a strong position, with a Cash and Borrowing Capacity ratio of 71.7% as of December 31, 2025.
Looking ahead, NorthEast Community Bancorp anticipates continued growth in its construction loan portfolio, supported by the ongoing demand for housing in its primary markets. The bank's management remains focused on maintaining strong asset quality and managing credit risk, with a commitment to conservative lending practices. The company also plans to enhance its technology and infrastructure to support future growth, while navigating the challenges posed by changing economic conditions and regulatory environments.
About NorthEast Community Bancorp, Inc./MD/
Northeast Community Bancorp, Inc. is a Maryland-based holding company primarily owning and operating a community-oriented, New York-chartered savings bank. The bank offers construction, multifamily, commercial, and non-residential real estate loans, along with retail deposit products. Serving markets in New York and Massachusetts, it competes through personalized service, local relationships, and a focus on high-growth, high-demand communities. Its business model emphasizes lending, deposit gathering, and investment in securities.
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