Northeast Community Bancorp (NECB) investor relations material

Executive summary

• Total assets increased 2.5% to $2.1 billion at June 30, 2026, driven by a $59.4 million rise in net loans, partially offset by a $7.8 million decrease in cash and cash equivalents.

• Net income for Q2 2026 was $9.8 million, down 12.3% year-over-year, and $19.7 million for the first half, down 9.2% from the prior year.

• Loan originations totaled $653.2 million for the six months, primarily in construction loans.

Financial highlights

• Net interest income for Q2 2026 was $24.7 million, down 1.7% year-over-year; for the first half, $48.8 million, down 1.1%.

• Total interest income decreased 5.2% in Q2 and 5.5% for the first half, mainly due to lower yields on interest-earning assets.

• Interest expense fell 12.0% in Q2 and 13.6% for the first half, reflecting lower cost of funds and reduced average balances.

• Non-interest income declined 25.2% in Q2 and 31.3% for the first half, mainly from unrealized losses on equity securities.

• Non-interest expense rose 1.0% in Q2 and 1.8% for the first half, driven by higher salaries and miscellaneous charge-offs.

• Effective tax rate was 29.1% for both Q2 and the first half of 2026.

Outlook and guidance

• Management continues to monitor interest rate risk and expects net interest income and economic value at risk to remain within policy guidelines.

• Liquidity ratios and borrowing capacity are considered sufficient to meet potential deposit outflows.