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CST: 23/05/2019 16:36:57   

NorthEast Community Bancorp, Inc. Reports Results for the Fourth Quarter and Year Ended December 31, 2018

111 Days ago

WHITE PLAINS, N.Y., Feb. 01, 2019 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (the “Company”) (OTCPX: NECB), a majority owned subsidiary of NorthEast Community Bancorp, MHC, and the parent holding company of NorthEast Community Bank (the “Bank”), reported net income of $4.92 million for the quarter ended December 31, 2018, an increase of 153.09%, compared to net income of $1.94 million for the quarter ended December 31, 2017.   For the year ended December 31, 2018, the Company reported net income of $13.03 million compared to net income of $8.05 million for the year ended December 31, 2017.

Financial Condition and Operating Results for December 31, 2018 compared to December 31, 2017:

Net income before taxes for the three months ended December 31, 2018 was $6.23 million compared to $4.36 million for the three months ended December 31, 2017, an increase of 42.64%.  The increase in net income before taxes was the result of our continuing focus on construction lending.

Net interest income for the three months ended December 31, 2018 increased by $1.51 million, or 17.82%, to $10.00 million from $8.49 million for the three months ended December 31, 2017.  The increase in net interest income was the result of our continuing focus on construction lending.

The Company had a credit of $2.32 million in provision for loan losses during the quarter ended December 31, 2018 compared to $51,000 in provision for loan losses during the quarter ended December 31, 2017.  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.

The allowance for loan losses was $4.20 million as of December 31, 2018 compared to $3.51 million as of December 31, 2017.  The increase in the allowance reflects the growth in our construction loan portfolio, which currently represents 55.65% of our total loan portfolio, partially offset by the lower loss factors on construction loans due to their positive credit performance and lower loan balances on other segments of our portfolio.

Total consolidated assets increased by $55.50 million, or 6.81%, to $870.32 million at December 31, 2018 from $814.82 million at December 31, 2017.  Loans receivable (net) increased by $43.72 million, or 6.21%, to $747.84 million at December 31, 2018 from $704.12 million at December 31, 2017, while commitments, loans-in-process and standby letters of credit outstanding increased to $458.05 million at December 31, 2018 compared to $359.42 million at December 31, 2017.  The increase in loans receivable was primarily due to growth in our construction loan portfolio.

Total liabilities at December 31, 2018 were $740.70 million compared to $697.92 million at December 31, 2017, an increase of $42.78 million, or 6.13%.  The increase in total liabilities was primarily due to a $61.89 million increase in deposits from $625.21 million at December 31, 2017 to $687.10 million at December 31, 2018.

Federal Home Loan Bank advances declined to $42.46 million at December 31, 2018 from $62.87 million at December 31, 2017.  The decrease in Federal Home Loan Bank borrowings was the result of several payoffs of maturing advances.

Total stockholder’s equity increased by $12.72 million, or 10.88%, to $129.62 million at December 31, 2018 from $116.90 million at December 31, 2017.  The increase was a result of net income of $13.03 million for the year ended December 31, 2018, partially offset by dividends declared and paid during the twelve month period.

Financial Condition at December 31, 2018 compared to September 30, 2018:

Total consolidated assets increased by $15.98 million, or 1.87%, to $870.32 million at December 31, 2018 from $854.34 million at September 30, 2018.  Loans receivable (net) decreased by $3.88 million or 0.52% to $747.84 million at December 31, 2018 from $751.72 million at September 30, 2018, while commitments, loans-in-process and standby letters of credit outstanding increased to $458.05 million as of December 31, 2018 compared to $443.02 million at September 30, 2018.  The increase in total assets was due to increases in our cash and cash equivalents.  The decrease in loans receivable (net) was due to decreases in our real estate mortgage and construction loan portfolio, partially offset by an increase in our commercial and industrial loan portfolio.

Total liabilities at December 31, 2018 were $740.71 million compared to $729.68 million at September 30, 2018, an increase of $11.03 million, or 1.51%.  The increase in total liabilities was due to a $29.54 million increase in deposits from $657.56 million at September 30, 2018 to $687.10 million at December 31, 2018.  Federal Home Loan Bank advances declined to $42.46 million at December 31, 2018 compared to $62.03 million as of September 30, 2018.

Non-performing loans remained unchanged at $1.86 million, or 0.21% of total assets at December 31, 2018 compared to 0.22% of total assets at September 30, 2018.    A provision for loan losses in the amount of $3.35 million was made in the third quarter of 2018 as a result of the write-off of a two commercial and industrial loans in the amount of $3.13 million.  The pending litigation concerning these loans was settled during the fourth quarter of 2018 and the Company recovered $2.70 million in settlement of the debt.

NorthEast Community Bancorp, Inc.’s total stockholders’ equity at December 31, 2018 is a strong 14.89% compared to 14.59% at September 30, 2018.

About NorthEast Community Bancorp, Inc. - 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 five 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.

Contact:
Kenneth A. Martinek
Chief Executive Officer
(914) 684-2500

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