WHITE PLAINS, N.Y.--(BUSINESS WIRE)--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 $3.42 million for the quarter ended June 30, 2019 compared to net income of $3.38 million for the quarter ended June 30, 2018, an increase of 1.36%.
Financial Condition and Operating Results for June 30, 2019 compared to June 30, 2018:
Net interest income for the three months ended June 30, 2019 increased by $892,000, or 9.52%, to $10.26 million from $9.37 million for the three months ended June 30, 2018.
Net income before taxes for the three months ended June 30, 2019 was $4.51 million compared to $4.41 million for the three months ended June 30, 2018, an increase of 2.34%. The increase in net income before taxes was the result of our continuing focus on construction lending.
Total consolidated assets increased by $87.13 million, or 10.11%, to $948.97 million at June 30, 2019 from $861.84 million at June 30 2018. Loans receivable (net) increased by $21.19 million, or 2.83%, to $770.09 million at June 30, 2019 from $748.90 million at June 30, 2018, while commitments, loans-in-process and standby letters of credit outstanding increased to $473.30 million at June 30, 2019 compared to $471.04 million at June 30, 2018. The increase in loans receivable was primarily due to growth in our construction loan portfolio.
Total liabilities at June 30, 2019 were $812.79 million compared to $738.31 million at June 30, 2018, an increase of $74.48 million, or 10.09%. The increase in total liabilities was primarily due to an increase of $113.22 million, or 17.02%, in deposits from $665.35 million at June 30, 2018 to $778.57 million at June 30, 2019, offset partially by a decrease of $40.92 million, or 65.09%, in Federal Home Loan Bank advances from $62.87 million at June 30, 2018 to $21.95 million at June 30, 2019.
Total stockholder’s equity increased by $12.65 million, or 10.24%, to $136.17 million at June 30, 2019 from $123.52 million at June 30, 2018. The increase was a result of net income of $12.78 million for the twelve month period ended June 30, 2019, partially offset by dividends declared and paid during the twelve month period.
Financial Condition and Operating Results for June 30, 2019 compared to December 31, 2018:
Net interest income for the quarter ended June 30, 2019 increased by $259,000 or 2.59% to $10.26 million compared to $10.00 million for the quarter ended December 31, 2018.
Net income before taxes for the quarter ended June 30, 2019 was $4.51 million compared to $6.23 million for the quarter ended December 31, 2018.
The Company recorded a credit of $2.32 million in provision for loan losses during the quarter ended December 31, 2018 compared to $61,000 in provision for loan losses during the quarter ended June 30, 2019. The credit of $2.32 million in provision for loan losses was primarily due to recoveries totaling $2.70 million as a result of a settlement attributable to two loans totaling $3.13 million that were fully written off during the September 30, 2018 quarter.
Total consolidated assets increased by $78.64 million, or 9.04%, to $948.97 million at June 30, 2019 from $870.33 million at December 31, 2018. Loans receivable (net) increased by $22.25 million or 2.97% to $770.09 million at June 30, 2019 from $747.84 million at December 31, 2018, while commitments, loans-in-process and standby letters of credit outstanding increased to $473.30 million as of June 30, 2019 compared to $458.06 million at December 31, 2018.
Total liabilities at June 30, 2019 were $812.80 million compared to $740.71 million at December 31, 2018, an increase of $72.09 million, or 9.73%. The increase in total liabilities was due to a $91.47 million increase in deposits from $687.10 million at December 31, 2018 to $778.57 million at June 30, 2019, offset partially by a decrease of $20.51 million, or 48.32%, in Federal Home Loan Bank advances from $42.46 million at December 31, 2018 to $21.95 million June 30, 2019.
NorthEast Community Bancorp, Inc.’s total stockholders’ equity at June 30, 2019 is a strong 14.35% compared to 14.89% at December 31, 2018.
NorthEast Community Bancorp, Inc. is the holding company for NorthEast Community Bank. NorthEast Community Bank is a New York State-chartered savings bank that operates six full-service branches in New York State and three full-service branches in Danvers, Framingham and Quincy, Massachusetts and loan production offices in White Plains and New City, New York.
This release contains “forward-looking statements” that are based on assumptions and may describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by the use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in market interest rates, regional and national economic 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 the Company’s market area, changes in the real estate market values in the Company’s market area and changes in relevant accounting principles and guidelines 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.