Northeast Community Bancorp (NECB) investor relations material

Executive summary

• Total assets decreased $38.4 million, or 1.9%, to $2.0 billion at March 31, 2026, primarily due to declines in net loans, cash, and other assets.

• Net income for Q1 2026 was $10.0 million, down 5.8% from $10.6 million in Q1 2025, mainly due to lower non-interest income and higher non-interest expense.

• No non-performing assets or loans modified for financial difficulty as of March 31, 2026.

Financial highlights

• Net interest income was $24.1 million, down 0.5% year-over-year; net interest margin decreased to 4.99% from 5.11%.

• Total interest income fell 5.9% to $36.0 million; interest expense decreased 15.1% to $11.8 million.

• Non-interest income dropped 35.5% to $796,000, mainly due to a $421,000 swing in unrealized gains/losses on equity securities.

• Non-interest expense rose 2.4% to $10.9 million, driven by higher salaries, occupancy, and data processing costs.

• Earnings per share were $0.76 basic and $0.74 diluted, compared to $0.80 and $0.78, respectively, in Q1 2025.

Outlook and guidance

• Management expects continued focus on construction lending in high-demand New York and Massachusetts markets.

• Liquidity and capital positions remain strong, with sufficient resources to meet unexpected deposit outflows.

• No material changes in risk factors or critical accounting policies since the last annual report.