EX-99.1 2 tm258804d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

NORTHEAST COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

 

   December 31,   December 31, 
   2024   2023 
   (In thousands, except share 
   and per share amounts) 
ASSETS          
Cash and amounts due from depository institutions  $13,700   $13,394 
Interest-bearing deposits   64,559    55,277 
       Total cash and cash equivalents   78,259    68,671 
Certificates of deposit   100    100 
Equity securities   21,994    18,102 
Securities held-to-maturity ( net of allowance for credit losses of $126 and $136, respectively )   14,616    15,860 
Loans receivable   1,812,647    1,586,721 
     Deferred loan (fees) costs, net   (49)   176 
     Allowance for credit losses   (4,830)   (5,093)
              Net loans   1,807,768    1,581,804 
Premises and equipment, net   24,805    25,452 
Investments in restricted stock, at cost   397    929 
Bank owned life insurance   25,738    25,082 
Accrued interest receivable   13,481    12,311 
Real estate owned   5,120    1,456 
Property held for investment   1,370    1,407 
Right of Use Assets – Operating   4,001    4,566 
Right of Use Assets – Financing   347    351 
Other assets   11,585    8,044 
Total assets  $2,009,581   $1,764,135 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Liabilities:          
Deposits:          
Non-interest bearing  $287,135   $300,184 
Interest bearing   1,383,240    1,099,852 
Total deposits   1,670,375    1,400,036 
Advance payments by borrowers for taxes and insurance   1,618    2,020 
Borrowings   -    64,000 
Lease Liability – Operating   4,108    4,625 
Lease Liability – Financing   609    571 
Accounts payable and accrued expenses   14,530    13,558 
Total liabilities   1,691,240    1,484,810 
           
Stockholders’ equity:          
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding  $—   $— 
Common stock, $0.01 par value; 75,000,000 shares authorized; 14,016,254 shares and 14,144,856 shares outstanding, respectively   140    142 
Additional paid-in capital   110,091    109,924 
Unearned Employee Stock Ownership Plan (“ESOP”) shares   (6,088)   (6,563)
Retained earnings   213,974    175,505 
Accumulated other comprehensive income   224    317 
Total stockholders’ equity   318,341    279,325 
Total liabilities and stockholders’ equity  $2,009,581   $1,764,135 

 

 

 

 

 

NORTHEAST COMMUNITY BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

                 
   Quarter Ended December 31,   Year Ended December 31, 
   2024   2023   2024   2023 
           (In thousands, except per share amounts) 
INTEREST INCOME:                    
Loans  $39,081   $35,660   $153,902   $127,486 
Interest-earning deposits   1,144    1,257    5,202    4,143 
Securities   247    209    909    859 
Total Interest Income   40,472    37,126    160,013    132,488 
INTEREST EXPENSE:                    
Deposits   15,160    11,131    55,619    34,181 
Borrowings   5    779    1,564    1,078 
Financing lease   9    10    38    38 
Total Interest Expense   15,174    11,920    57,221    35,297 
Net Interest Income   25,298    25,206    102,792    97,191 
Provision for credit loss   1,026    205    740    972 
Net Interest Income after Provision for (Reversal of) Credit Loss   24,272    25,001    102,052    96,219 
NON-INTEREST INCOME:                    
Other loan fees and service charges   485    474    2,098    1,891 
Gain (loss) on disposition of equipment   22    (18)   22    (18)
Earnings on bank owned life insurance   170    156    656    1,013 
Investment advisory fees   -    115    -    458 
Realized and unrealized (loss) gain on equity securities   (554)   621    (109)   294 
Other   26    38    116    105 
Total Non-Interest Income   149    1,386    2,783    3,743 
NON-INTEREST EXPENSES:                    
Salaries and employee benefits   5,204    4,760    20,942    18,839 
Occupancy expense   712    705    2,828    2,595 
Equipment   229    211    890    1,055 
Outside data processing   680    572    2,604    2,210 
Advertising   108    101    418    521 
Loss on disposition of business   -    138    -    138 
Real estate owned expense   204    41    731    93 
Other   2,785    2,706    10,649    9,770 
Total Non-Interest Expenses   9,922    9,234    39,062    35,221 
INCOME BEFORE PROVISION FOR INCOME TAXES   14,499    17,153    65,773    64,741 
PROVISION FOR INCOME TAXES   4,283    5,052    18,699    18,465 
NET INCOME  $10,216   $12,101   $47,074   $46,276 

 

 

 

  

NORTHEAST COMMUNITY BANCORP, INC.

SELECTED CONSOLIDATED FINANCIAL DATA

(Unaudited)

 

                 
   Quarter Ended December 31,   Year Ended December 31, 
   2024   2023   2024   2023 
   (In thousands, except per share amounts)   (In thousands, except per share amounts) 
Per share data:                    
Earnings per share - basic  $0.78   $0.82   $3.58   $3.32 
Earnings per share - diluted   0.75    0.82    3.52    3.32 
Weighted average shares outstanding - basic   13,132    14,720    13,136    13,930 
Weighted average shares outstanding - diluted   13,582    14,778    13,359    13,936 
Performance ratios/data:                    
Return on average total assets   2.04%   2.77%   2.46%   2.90%
Return on average shareholders' equity   12.90%   17.49%   15.59%   17.09%
Net interest income  $25,298   $25,206   $102,792   $97,191 
Net interest margin   5.29%   6.06%   5.62%   6.41%
Efficiency ratio   38.99%   34.72%   37.00%   34.90%
Net charge-off ratio   0.28%   0.01%   0.08%   0.02%

 

Loan portfolio composition:             December 31, 2024    December 31, 2023 
One-to-four family            $3,472   $5,252 
Multi-family             206,606    198,927 
Mixed-use             26,571    29,643 
   Total residential real estate             236,649    233,822 
Non-residential real estate             29,446    21,130 
Construction             1,426,167    1,219,413 
Commercial and industrial             118,736    111,116 
Consumer             1,649    1,240 
    Gross loans             1,812,647    1,586,721 
Deferred loan (fees) costs, net             (49)   176 
Total loans            $1,812,598   $1,586,897 
Asset quality data:                    
Loans past due over 90 days and still accruing            $-   $- 
Non-accrual loans             -    4,385 
OREO property             5,120    1,456 
Total non-performing assets            $5,120   $5,841 
                     
Allowance for credit losses to total loans             0.27%   0.32%
Allowance for credit losses to non-performing loans             0.00%   116.15%
Non-performing loans to total loans             0.00%   0.28%
Non-performing assets to total assets             0.25%   0.33%
                     
Bank's Regulatory Capital ratios:                    
Total capital to risk-weighted assets             13.92%   13.43%
Common equity tier 1 capital to risk-weighted assets             13.65%   13.10%
Tier 1 capital to risk-weighted assets             13.65%   13.10%
Tier 1 leverage ratio             14.44%   14.43%

  

 

 

 

NORTHEAST COMMUNITY BANCORP, INC.

NET INTEREST MARGIN ANALYSIS

(Unaudited)

 

                         
   Quarter Ended December 31, 2024   Quarter Ended December 31, 2023 
   Average   Interest   Average   Average   Interest   Average 
   Balance   and dividend   Yield   Balance   and dividend   Yield 
   (In thousands, except yield/cost information)   (In thousands, except yield/cost information) 
Loan receivable gross  $1,784,920   $39,081    8.76%  $1,545,446   $35,660    9.23%
Securities   36,817    232    2.52%   33,124    188    2.27%
Federal Home Loan Bank stock   455    15    13.19%   929    21    9.04%
Other interest-earning assets   90,279    1,144    5.07%   83,436    1,257    6.03%
Total interest-earning assets   1,912,471    40,472    8.46%   1,662,935    37,126    8.93%
Allowance for credit losses   (4,833)             (4,771)          
Non-interest-earning assets   92,422              87,557           
Total assets  $2,000,060             $1,745,721           
                               
Interest-bearing demand deposit  $233,112   $2,198    3.77%  $118,691   $1,026    3.46%
Savings and club accounts   137,295    767    2.23%   206,120    1,404    2.72%
Certificates of deposit   1,026,433    12,195    4.75%   758,928    8,701    4.59%
Total interest-bearing deposits   1,396,840    15,160    4.34%   1,083,739    11,131    4.11%
Borrowed money   1,293    14    4.33%   67,049    789    4.71%
Total interest-bearing liabilities   1,398,133    15,174    4.34%   1,150,788    11,920    4.14%
Non-interest-bearing demand deposit   263,711              298,739           
Other non-interest-bearing liabilities   21,428              19,449           
Total liabilities   1,683,272              1,468,976           
Equity   316,788              276,745           
Total liabilities and equity  $2,000,060             $1,745,721           
                               
Net interest income / interest spread       $25,298    4.12%       $25,206    4.79%
Net interest rate margin             5.29%             6.06%
Net interest earning assets  $514,338             $512,147           
Average interest-earning assets                              
       to interest-bearing liabilities  136.79%            144.50%          

  

 

 

 

 

NORTHEAST COMMUNITY BANCORP, INC.

NET INTEREST MARGIN ANALYSIS

(Unaudited)

 

                         
   Year Ended December 31, 2024   Year Ended December 31, 2023 
   Average   Interest   Average   Average   Interest   Average 
   Balance   and dividend   Yield   Balance   and dividend   Yield 
   (In thousands, except yield/cost information)   (In thousands, except yield/cost information) 
Loan receivable gross  $1,701,079   $153,902    9.05%  $1,401,492   $127,486    9.10%
Securities   34,765    839    2.41%   37,819    777    2.05%
Federal Home Loan Bank stock   677    70    10.34%   984    82    8.33%
Other interest-earning assets   92,610    5,202    5.62%   76,542    4,143    5.41%
Total interest-earning assets   1,829,131    160,013    8.75%   1,516,837    132,488    8.73%
Allowance for credit losses   (4,940)             (4,676)          
Non-interest-earning assets   90,675              84,287           
Total assets  $1,914,866             $1,596,448           
                               
Interest-bearing demand deposit  $209,993   $8,498    4.05%  $93,426   $2,459    2.63%
Savings and club accounts   154,430    3,799    2.46%   248,755    6,777    2.72%
Certificates of deposit   917,665    43,322    4.72%   615,124    24,945    4.06%
Total interest-bearing deposits   1,282,088    55,619    4.34%   957,305    34,181    3.57%
Borrowed money   33,117    1,602    4.84%   29,007    1,116    3.85%
Total interest-bearing liabilities   1,315,205    57,221    4.35%   986,312    35,297    3.58%
Non-interest-bearing demand deposit   277,957              322,185           
Other non-interest-bearing liabilities   19,739              17,139           
Total liabilities   1,612,901              1,325,636           
Equity   301,965              270,812           
Total liabilities and equity  $1,914,866             $1,596,448           
                               
Net interest income / interest spread       $102,792    4.40%       $97,191    5.15%
Net interest rate margin             5.62%             6.41%
Net interest earning assets  $513,926             $530,525           
Average interest-earning assets                              
       to interest-bearing liabilities  139.08%            153.79%