NorthEast Community Bancorp, Inc. Reports Results for the Quarter Ended March 31, 2020

WHITE PLAINS, N.Y., May 01, 2020 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (OTC: NECB) (the “Company”), a majority owned subsidiary of NorthEast Community Bancorp, MHC, and the parent holding company of NorthEast Community Bank (the “Bank”), reported net income of $3.26 million for the quarter ended March 31, 2020 compared to net income of $3.22 million for the quarter ended March 31, 2019, an increase of 1.24%.

Financial Condition and Operating Results for March 31, 2020 compared to March 31, 2019:

Net interest income for the three months ended March 31, 2020 decreased by $340,000, or 3.40%, to $9.67 million from $10.01 million for the three months ended March 31, 2019.

Net income before taxes for the three months ended March 31, 2020 was $4.25 million compared to $4.21 million for the three months ended March 31, 2019, an increase of 1.09%.  The increase in net income before taxes was the result of an increase of $278,000 in non-interest income and a decrease of $162,000 in provision for loan losses, partially offset by a decrease of $340,000 in net interest income and an increase of $54,000 in non-interest expense.

Total consolidated assets decreased by $23.6 million, or 2.53%, to $908.48 million at March 31, 2020 from $932.07 million at March 31, 2019.  Loans receivable (net) increased by $23.08 million, or 3.02%, to $787.53 million at March 31, 2020 from $764.45 million at March 31, 2019, while commitments, loans-in-process and standby letters of credit outstanding decreased to $444.51 million at March 31, 2020 compared to $484.79 million at March 31, 2019.  The increase in loans receivable was primarily due to growth in our construction loan portfolio resulting from our continued focus on growing our construction lending operations in the lower Hudson Valley.

Total liabilities at March 31, 2020 were $763.39 million compared to $799.38 million at March 31, 2019, a decrease of $35.99 million, or 4.50%.  The decrease in total liabilities was primarily due to a $24.42 million decrease in deposits from $748.73 million at March 31, 2019 to $724.31 million at March 31, 2020 as we decreased our sourced wholesale deposits and increased our retail deposits.

Federal Home Loan Bank advances decreased by $10.30 million, or 26.89% to $28.00 million at March 31, 2020 from $38.30 million at March 31, 2019.

Total stockholder’s equity increased by $12.40 million, or 9.34%, to $145.09 million at March 31, 2020 from $132.69 million at March 31, 2019.  The increase was a result of net income of $12.99 million for the twelve month period ended March 31, 2020, partially offset by dividends declared and paid and accounting adjustments during the twelve month period.