August 7, 2025

Northeast Community Bancorp Reports Strong Q2 Earnings

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News Summary

Northeast Community Bancorp has revealed its financial performance for the second quarter, showing strong earnings per share despite a decline in revenue. The diluted EPS of $0.82 surpassed analyst expectations, although revenue dropped to $25.93 million. The bank’s net income also decreased, down 13% from the previous year. Key insights include rising operational costs and a significant decline in deposits. Nevertheless, the bank maintains a low nonperforming asset ratio and ongoing focus on construction lending, indicating a cautious yet proactive investment approach amid economic challenges.

Northeast Community Bancorp Reports Q2 2025 Earnings

Northeast Community Bancorp (Nasdaq: NECB) has announced its financial results for the second quarter of 2025, revealing strong earnings per share (EPS) amidst a backdrop of declining revenue. The bank reported diluted EPS of $0.82, exceeding analyst expectations of $0.79 by $0.03.

$25.93 million, falling short of estimates by $0.028 million. This figure represents a decline from $26.95 million in the same quarter one year ago. As a result, the net income for the second quarter was $11.2 million, down 13% from $12.8 million recorded in Q2 2024.

Half-Year Performance

$21.7 million, a decrease from $24.2 million in the same period in 2024. The net interest margin (NIM) saw a dip to 5.35%, compared to 5.79% one year prior. This decline was attributed to pressures from increased funding costs and compressed lending yields.

40.52% from 35.24% the previous year. This indicates that the operating expenses of the bank are rising quicker than its income, raising concerns about financial management. In addition, total assets diminished by $35.7 million, which is a 1.8% drop, leaving the total at $2.0 billion as of June 30, 2025, compared to year-end 2024.

Changes in Deposits

$191.2 million or 11.5%, largely driven by reductions in certificates of deposit. Despite these setbacks, the bank maintained a strong focus on construction lending, reporting $338.8 million in construction loan originations during the first half of 2025. This sector continues to attract attention, with management noting a strong demand for construction and cooperative building lending.

0.04% as of June 30, 2025, which suggests effective risk management in its lending practices. Additionally, non-interest income rose by 17.4%, totaling $858,000, helped along by increased loan fees and favorable market valuations of equity securities.

Rising Costs and Share Repurchases

non-interest expenses surged by 10.6%, mainly due to increases in salaries, employee benefits, real estate owned expenses, and data processing costs. This rising expense trend raises questions about the bank’s operational efficiency.

1.09 million shares repurchased at a cost of $17.2 million from May 2023 through June 30, 2025.

Future Insights

$636 million in yet-to-be-funded loan commitments, the bank is poised to keep its focus on growth, particularly in sectors like construction lending that show ongoing demand.

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Author: Construction FL News

FLORIDA STAFF WRITER The FLORIDA STAFF WRITER represents the experienced team at constructionflnews.com, your go-to source for actionable local news and information in Florida and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florida Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of Florida and the Florida Home Builders Association, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Shutts & Bowen LLP. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.

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