WHITE PLAINS, N.Y., July 24, 2026 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), reported net income of $9.8 million, or $0.75 per basic share and $0.72 per diluted share, for the three months ended June 30, 2026 compared to net income of $11.2 million, or $0.85 per basic share and $0.82 per diluted share, for the three months ended June 30, 2025. In addition, the Company reported net income of $19.7 million, or $1.50 per basic share and $1.46 per diluted share, for the six months ended June 30, 2026 compared to net income of $21.7 million, or $1.65 per basic share and $1.60 per diluted share, for the six months ended June 30, 2025.
Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated “We are again pleased to report continued strong performance throughout our entire loan portfolio. We continue our laser focus on construction lending in high demand, high absorption submarkets in the Bronx, Rockland, Orange, and Sullivan Counties.”
“Demand for construction loans throughout these submarkets continues to demonstrate robust growth and we look forward to continuing to meet this growing demand going forward. At June 30, 2026, construction loan commitments and loans-in-process outstanding increased by approximately 38.9% as compared to the second quarter of 2025, with over $883 million in total unfunded loan commitments outstanding, and representing a 30.0% increase over the amount of such total commitments outstanding at December 31, 2025.”
Highlights for the three months and six months ended June 30, 2026 are as follows:
- Performance metrics continue to be strong with a return on average total assets ratio of 1.95%, a return on average shareholders’ equity ratio of 10.81%, and an efficiency ratio of 41.99% for the three months ended June 30, 2026. For the six months ended June 30, 2026, the Company reported a return on average total assets ratio of 1.96%, a return on average shareholders’ equity ratio of 10.97%, and an efficiency ratio of 42.81%.
- Asset quality metrics continue to remain strong with no non-performing loans at either June 30, 2026 or December 31, 2025, and a non-performing assets to total assets ratio of 0.00% at both June 30, 2026 and at December 31, 2025. Our allowance for credit losses related to loans totaled $4.8 million, or 0.25% of total loans at June 30, 2026 compared to $4.7 million, or 0.25% of total loans at December 31, 2025.
- Total stockholders’ equity increased by $10.9 million, or 3.1%, to $362.6 million, or 17.14% of total assets as of June 30, 2026 from $351.7 million, or 17.04% of total assets as of December 31, 2025.
Balance Sheet Summary
Total assets increased $51.7 million, or 2.5%, to $2.1 billion at June 30, 2026, from $2.1 billion at December 31, 2025. The increase in assets was primarily due to an increase in net loans of $59.4 million, partially offset by a decrease in cash and cash equivalents of $7.8 million.
Cash and cash equivalents decreased $7.8 million, or 9.6%, to $73.4 million at June 30, 2026 from $81.2 million at December 31, 2025. The decrease in cash and cash equivalents partially funded the increase of $59.4 million in net loans.
Equity securities increased $757,000, or 2.8%, to $27.3 million at June 30, 2026 from $26.6 million at December 31, 2025. The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the six months ended June 30, 2026, partially offset by market depreciation of $243,000 due to market interest rate volatility during the six months ended June 30, 2026.
Securities held-to-maturity decreased $564,000, or 3.1%, to $17.8 million at June 30, 2026 from $18.3 million at December 31, 2025 due to pay-downs of various investment securities and an increase of $9,000 to the allowance for credit losses for held-to-maturity securities, partially offset by the purchase of $470,000 in municipal securities.
Loans, net of the allowance for credit losses, increased $59.4 million, or 3.2%, to $1.9 billion at June 30, 2026 from $1.9 billion at December 31, 2025. The increase in loans consisted of an increase of $67.2 million in construction loans, partially offset by decreases of $4.9 million in multi-family loans, $2.2 million in non-residential loans, $200,000 in mixed-use loans, $69,000 in one-to-four family loans, $23,000 in consumer loans, and $3,000 in commercial and industrial loans.
During the six months ended June 30, 2026, we originated loans totaling $653.2 million, which includes commitments and funded loans, consisting primarily of $606.7 million in construction loans, $25.1 million in commercial and industrial loans, $20.8 million in multi-family loans, and $675,000 in mixed-use loans. The $606.7 million in construction loans had $262.7 million, or 43.3%, disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans. These disbursements were offset by normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions. The commercial and industrial loans had $19.0 million, or 75.7%, disbursed at loan closing as of June 30, 2026.
The allowance for credit losses related to loans was $4.6 million at June 30, 2026 and December 31, 2025. The allowance for credit losses related to loans had a provision for credit losses totaling $568,000 and charge-offs totaling $547,000. The provision for credit losses totaling $568,000 was due to an increase in the loan portfolio and a slight increase in the remaining terms of the loan portfolio.
The allowance for credit losses for off-balance sheet commitments increased $284,000, or 32.3%, to $1.2 million at June 30, 2026 from $879,000 at December 31, 2025 due primarily to an increase of $204.2 million, or 30.0%, in off-balance sheet commitments from December 31, 2025 to June 30, 2026.
The allowance for credit losses for held-to-maturity securities increased $9,000, or 7.1%, to $135,000 at June 30, 2026 from $126,000 at December 31, 2025 due to an increase in our municipal bond portfolio.
Premises and equipment decreased $356,000, or 1.4%, to $25.0 million at June 30, 2026 from $25.4 million at December 31, 2025 primarily due to the amortization of fixed assets.
Federal Home Loan Bank stock increased by $133,000, or 32.4%, to $543,000 at June 30, 2026 from $410,000 at December 31, 2025 primarily due to an increase in our mortgage-related assets.
Bank owned life insurance (“BOLI”) increased $364,000, or 1.4%, to $26.8 million at June 30, 2026 from $26.4 million at December 31, 2025 due to increases in the BOLI cash value.
Accrued interest receivable decreased $39,000, or 0.3%, to $12.2 million at June 30, 2026 from $12.2 million at December 31, 2025 due to a decrease in the yield in the loan portfolio.
Property held for investment was $1.3 million at both June 30, 2026 and December 31, 2025.
Right of use assets — operating decreased $360,000, or 7.7%, to $4.3 million at June 30, 2026 from $4.7 million at December 31, 2025, primarily due to depreciation of the right of use assets.
Other assets increased $117,000, or 1.1%, to $11.1 million at June 30, 2026 from $11.0 million at December 31, 2025 due to an increase of $725,000 in suspense accounts, partially offset by decreases of $528,000 in tax assets and $90,000 in prepaid expenses.
Total deposits decreased $80.4 million, or 5.0%, to $1.5 billion at June 30, 2026 from $1.6 billion at December 31, 2025. The decrease in deposits was primarily due to decreases in certificates of deposit of $190.8 million, or 21.2%, and savings account balances of $10.6 million, or 7.5%, partially offset by increases in NOW/money market accounts of $67.5 million, or 22.3% and non-interest bearing deposits of $53.5 million, or 19.7%.
The decrease of $190.8 million in certificates of deposit consisted of decreases of $129.0 million, or 34.9%, in brokered certificates of deposit, $38.3 million, or 56.6%, in non-brokered listing services certificates of deposit, and $23.4 million, or 5.3% in retail certificates of deposit.
The decrease in brokered certificates of deposit and non-brokered listing services certificates of deposit was due to management’s strategy to reduce the cost of funds by “calling” higher rate brokered deposits on their call dates and to rely less on brokered deposits and non-brokered listing service deposits. The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts.
Advance payments by borrowers for taxes and insurance increased $210,000, or 8.9%, to $2.6 million at June 30, 2026 from $2.4 million at December 31, 2025 due primarily to accumulation of real estate tax payments from borrowers.
Borrowings increased $120.0 million, or 171.4%, to $190.0 million at June 30, 2026 from $70.0 million at December 31, 2025 due primarily to management’s strategy to reduce the cost of funds and lessen reliance on brokered deposits and non-brokered listing service deposits.
Lease liability – operating decreased $329,000, or 6.9%, to $4.5 million at June 30, 2026 from $4.8 million at December 31, 2025, primarily due to the amortization of the lease liability.
Accounts payable and accrued expenses increased $980,000, or 6.0%, to $18.6 million at June 30, 2026 from $17.3 million at December 31, 2025 due primarily to increases in accounts payable of $1.3 million, suspense account – loan closings of $322,000, deferred compensation of $291,000, the allowance for credit losses for off-balance sheet commitments of $284,000, and accrued interest expense of $107,000, partially offset by a decrease in accrued expenses of $1.0 million.
Stockholders’ equity increased $10.9 million, or 3.1% to $362.6 million at June 30, 2026, from $351.7 million at December 31, 2025. The increase in stockholders’ equity was due to net income of $19.7 million for the six months ended June 30, 2026, the amortization expense of $1.1 million relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, an increase of $371,000 in earned employee stock ownership plan shares coupled with a reduction of $261,000 in unearned employee stock ownership plan shares, $37,000 in stock options exercised, and $25,000 in other comprehensive income. These increases were offset by dividends declared of $6.0 million and stock repurchases and excise taxes of $4.7 million.
Results of Operations for the Three Months Ended June 30, 2026 and 2025
Net Interest Income
Net interest income was $24.7 million for the three months ended June 30, 2026, as compared to $25.1 million for the three months ended June 30, 2025. The decrease in net interest income of $424,000, or 1.7%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense caused by a decrease in the yield on interest-earning assets that exceeded the decrease in the cost of funds for interest-bearing liabilities.
Total interest and dividend income decreased $2.0 million, or 5.2%, to $36.1 million for the three months ended June 30, 2026 from $38.1 million for the three months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest-earning assets by 60 basis points from 8.11% for the three months ended June 30, 2025 to 7.51% for the three months ended June 30, 2026, partially offset by an increase in the average balance of interest-earning assets of $43.8 million, or 2.3%, to $1.9 billion for the three months ended June 30, 2026 from $1.9 billion for the three months ended June 30, 2025.
Interest expense decreased $1.6 million, or 12.0%, to $11.4 million for the three months ended June 30, 2026 from $13.0 million for the three months ended June 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest-bearing liabilities by 43 basis points from 3.88% for the three months ended June 30, 2025 to 3.45% for the three months ended June 30, 2026. The decrease in interest expense was also due to a decrease in the average balance of interest-bearing liabilities of $16.0 million, or 1.2%, to $1.3 billion for the three months ended June 30, 2026 from $1.3 billion for the three months ended June 30, 2025.
Our net interest margin decreased 21 basis points, or 3.9%, to 5.14% for the three months ended June 30, 2026 compared to 5.35% for the three months ended June 30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities.
Credit Loss Expense
The Company recorded credit loss expense of $860,000 for the three months ended June 30, 2026 compared to no credit loss expense for the three months ended June 30, 2025.
The credit loss expense of $860,000 for the three months ended June 30, 2026 was comprised of credit loss expense for loans of $680,000, credit loss expense for off-balance sheet commitments of $171,000, and credit loss expense for held-to-maturity securities of $9,000. The credit loss expense for loans of $680,000 for the three months ended June 30, 2026 was primarily due to an increase in the loan portfolio. The credit loss expense for off-balance sheet commitments of $171,000 for the three months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit loss expense for held-to-maturity securities of $9,000 for the three months ended June 30, 2026 was primarily due to an increase in the municipal bond portfolio.
With respect to the allowance for credit losses for loans, we charged-off $520,000 during the quarter ended June 30, 2026, as compared to charge-offs of $485,000 during the quarter ended June 30, 2025. The charge-offs during the quarter ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $20,000 against various unpaid overdrafts in our demand deposit accounts. The charge-offs during the quarter ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.
We recorded no recoveries during the quarter ended June 30, 2026 compared to recoveries of $82,000 during the quarter ended June 30, 2025. The recoveries of $82,000 during the quarter ended June 30, 2025 comprised of recoveries from a previously charged-off unpaid overdraft on a demand deposit account.
Non-Interest Income
Non-interest income for the three months ended June 30, 2026 was $642,000 compared to non-interest income of $858,000 for the three months ended June 30, 2025. The decrease of $216,000, or 25.2%, in total non-interest income was primarily due to decreases of $173,000 in unrealized gain/(loss) on equity securities and $62,000 in other loan fees and service charges, partially offset by increases of $15,000 in BOLI income and $4,000 in miscellaneous other non-interest income.
The decrease in unrealized gain/(loss) on equity securities was due to an unrealized loss of $122,000 on equity securities during the quarter ended June 30, 2026 compared to an unrealized gain of $51,000 on equity securities during the quarter ended June 30, 2025. The unrealized loss of $122,000 and unrealized gain of $51,000 on equity securities during the quarters ended June 30, 2026 and 2025, respectively, were due to market interest rate volatility during both periods.
The decrease of $62,000 in other loan fees and service charges was due to decreases of $82,000 in loan service charges and fees, partially offset by an increase of $20,000 in ATM/debit card/ACH fees. The increase of $15,000 in BOLI income was due to an increase in the yield on BOLI assets. The increase of $4,000 in miscellaneous other non-interest income was due to increases in miscellaneous operating income during the quarter.
Non-Interest Expense
Non-interest expense increased $110,000, or 1.0%, to $10.6 million for the three months ended June 30, 2026 from $10.5 million for the three months ended June 30, 2025. The increase resulted primarily from increases of $291,000 in other operating expense, $166,000 in salaries and employee benefits, and $44,000 in occupancy expense, partially offset by decreases of $247,000 in real estate owned expense, $79,000 in advertising expense, $33,000 in outside data processing expense, and $32,000 in equipment expense.
Income Taxes
We recorded income tax expense of $4.0 million and $4.3 million for the three months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026, we had approximately $252,000 in tax exempt income, compared to approximately $210,000 in tax exempt income for the three months ended June 30, 2025. Our effective income tax rate was 29.1% for the three months ended June 30, 2026 compared to 27.6% for the three months ended June 30, 2025.
Results of Operations for the Six Months Ended June 30, 2026 and 2025
Net Interest Income
Net interest income was $48.8 million for the six months ended June 30, 2026 as compared to $49.3 million for the six months ended June 30, 2025. The decrease in net interest income of $555,000, or 1.1%, was primarily due to a decrease in interest income that exceeded a decrease in interest expense and a decrease in the yield on interest earning assets, partially offset by a smaller decrease in the cost of funds for interest bearing liabilities.
Total interest and dividend income decreased $4.2 million, or 5.5%, to $72.0 million for the six months ended June 30, 2026 from $76.2 million for the six months ended June 30, 2025. The decrease in interest and dividend income was due to a decrease in the yield on interest earning assets by 60 basis points from 8.08% for the six months ended June 30, 2025 to 7.48% for the six months ended June 30, 2026, partially offset by an increase in the average balance of interest earning assets of $39.5 million, or 2.1%, to $1.9 billion for the six months ended June 30, 2026 from $1.9 billion for the six months ended June 30, 2025.
Interest expense decreased $3.7 million, or 13.6%, to $23.2 million for the six months ended June 30, 2026 from $26.9 million for the six months ended June 30, 2025. The decrease in interest expense was due to a decrease in the cost of interest bearing liabilities by 51 basis points from 3.97% for the six months ended June 30, 2025 to 3.46% for the six months ended June 30, 2026 and a decrease in average interest bearing liabilities of $13.0 million, or 1.0%, to $1.3 billion for the six months ended June 30, 2026 from $1.4 billion for the six months ended June 30, 2025.
Net interest margin decreased 17 basis points, or 3.2%, to 5.06% for the six months ended June 30, 2026 compared to 5.23% for the six months ended June 30, 2025. The decrease in the net interest margin was due to a 75 basis points decrease in the Federal Funds rate from September 2025 to December 2025 that resulted in a decrease in the yield on interest-earning assets, partially offset by a smaller decrease in the cost of funds on interest-bearing liabilities.
Credit Loss Expense
The Company recorded a credit loss expense of $860,000 for the six months ended June 30, 2026 compared to a credit loss expense of $237,000 for the six months ended June 30, 2025. The credit loss expense of $860,000 for the six months ended June 30, 2026 was comprised of credit loss expense for loans of $568,000, credit loss expense for off-balance sheet commitments of $283,000, and credit loss expense for held-to-maturity securities of $9,000. The credit loss expense of $237,000 for the six months ended June 30, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000.
The credit loss expense for loans of $568,000 for the six months ended June 30, 2026 was primarily due to an increase in the loan portfolio. The credit loss expense for off-balance sheet commitments of $283,000 for the six months ended June 30, 2026 was primarily due to an increase in unfunded off-balance sheet commitments. The credit loss expense for held-to-maturity securities of $9,000 for the six months ended June 30, 2026 was primarily due to an increase in the municipal bond portfolio.
The credit loss expense for loans of $62,000 for the six months ended June 30, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet commitments of $175,000 for the six months ended June 30, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.
With respect to the allowance for credit losses for loans, we charged-off $547,000 during the six months ended June 30, 2026 as compared to charge-offs of $602,000 during the six months ended June 30, 2025. The charge-offs during the six months ended June 30, 2026 comprised of $500,000 against a commercial and industrial loan and $47,000 against various unpaid overdrafts in our demand deposit accounts. The charge-offs during the six months ended June 30, 2025 were against various unpaid overdrafts in our demand deposit accounts.
We recorded no recoveries during the six months ended June 30, 2026 compared to recoveries of $434,000 during the six months ended June 30, 2025. The recoveries of $434,000 during the six months ended June 30, 2025 comprised of recoveries of $350,000 with respect to a previously charged-off non-residential mortgage loan and $84,000 from previously charged-off unpaid overdrafts on demand deposit accounts.
Non-Interest Income
Non-interest income for the six months ended June 30, 2026 was $1.4 million compared to non-interest income of $2.1 million for the six months ended June 30, 2025. The decrease of $655,000, or 31.3%, in total non-interest income was primarily due to decreases of $594,000 in unrealized gain/(loss) on equity securities and $133,000 in other loan fees and service charges, partially offset by increases of $45,000 in miscellaneous other non-interest income and $27,000 in BOLI income.
The decrease in unrealized gain on equity securities was due to an unrealized loss of $243,000 on equity securities during the six months ended June 30, 2026 compared to an unrealized gain of $351,000 on equity securities during the six months ended June 30, 2025. Both the unrealized loss of $243,000 on equity securities during the 2026 period and the unrealized gain of $351,000 on equity securities during the 2025 period were due to market interest rate volatility during both periods.
The decrease of $133,000 in other loan fees and service charges was due to a decrease of $226,000 in other loan fees and loan servicing fees, partially offset by an increase of $92,000 in ATM/debit card/ACH fees. The increase of $45,000 in miscellaneous other non-interest income was due to general accrual adjustments during the first quarter of 2026. The increase in BOLI income of $27,000 was due to an increase in the yield on BOLI assets.
Non-Interest Expense
Non-interest expense increased $371,000, or 1.8%, to $21.5 million for the six months ended June 30, 2026 from $21.1 million for the six months ended June 30, 2025. The increase resulted primarily from increases of $406,000 in salaries and employee benefits, $208,000 in other operating expense, $172,000 in occupancy expense, and $27,000 in outside data processing expense, partially offset by decreases of $277,000 in real estate owned expense, $139,000 in advertising expense, and $26,000 in equipment expense.
Income Taxes
We recorded income tax expense of $8.1 million and $8.3 million for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026, we had approximately $500,000 in tax exempt income, compared to approximately $415,000 in tax exempt income for the six months ended June 30, 2025. Our effective income tax rates were 29.1% and 27.7% for the six months ended June 30, 2026 and 2025, respectively.
Asset Quality
We had no non-performing assets at June 30, 2026 and December 31, 2025. Our ratio of non-performing assets to total assets was 0.00% at June 30, 2026 and December 31, 2025.
The Company’s allowance for credit losses related to loans was $4.8 million, or 0.25% of total loans as of June 30, 2026, compared to $4.7 million, or 0.25% of total loans as of December 31, 2025. Based on a review of the loans that were in the loan portfolio at June 30, 2026, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of expected losses in the loan portfolio.
In addition, at June 30, 2026, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $1.2 million and the allowance for credit losses related to held-to-maturity debt securities totaled $135,000.
Capital
The Company’s total stockholders’ equity to assets ratio was 17.14% as of June 30, 2026. At June 30, 2026, the Company had the ability to borrow $633.0 million from the Federal Reserve Bank of New York and $8.0 million from Atlantic Community Bankers Bank.
The Bank’s capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of June 30, 2026, the Bank had a tier 1 leverage capital ratio of 17.32% and a total risk-based capital ratio of 15.31%.
The Company commenced its third stock repurchase program on December 10, 2025 whereby the Company will repurchase 1,400,435, or 10%, of the Company’s issued and outstanding common stock. As of June 30, 2026, the Company had repurchased 239,894 shares of common stock under its third repurchase program, at a cost of $5.6 million, including commission costs and Federal excise taxes.
About NorthEast Community Bancorp
NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.
Forward Looking Statement
This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation or recessionary conditions and their impact on regional and national economic conditions), legislative and regulatory changes, changes relating to rent regulation and housing, including recent legislative action in New York City to freeze rents on certain rent-regulated properties, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts, the impact of changing political conditions or federal government shutdowns, the quality and composition of the loan or investment portfolios, demand for loan products, decreases in deposit levels necessitating increased borrowing to fund loans and securities, competition, demand for financial services in NorthEast Community Bank’s market area, changes in the real estate market values in NorthEast Community Bank’s market area, the impact of failures or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns, and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the “SEC”), which are available through the SEC’s website located at www.sec.gov. 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. MartinekChairman and Chief Executive Officer PHONE:(914) 684-2500
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited) June 30, December 31, 2026
2025
(In thousands, except share and per share amounts)ASSETS Cash and amounts due from depository institutions $9,473 $10,456 Interest-bearing deposits 63,941 70,719 Total cash and cash equivalents 73,414 81,175 Certificates of deposit 100 100 Equity securities 27,327 26,570 Securities held-to-maturity (net of allowance for credit losses of $135 and $126, respectively ) 17,751 18,315 Loans receivable 1,919,908 1,860,066 Deferred loan (fees) costs, net (149) 268 Allowance for credit losses (4,752) (4,731)Net loans 1,915,007 1,855,603 Premises and equipment, net 25,021 25,377 Investments in restricted stock, at cost 543 410 Bank owned life insurance 26,797 26,433 Accrued interest receivable 12,189 12,228 Property held for investment 1,315 1,334 Right of Use Assets – Operating 4,296 4,656 Right of Use Assets – Financing 342 343 Other assets 11,081 10,964 Total assets $2,115,183 $2,063,508 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Deposits: Non-interest bearing $325,415 $271,924 Interest bearing 1,211,128 1,344,977 Total deposits 1,536,543 1,616,901 Advance payments by borrowers for taxes and insurance 2,562 2,352 Borrowings 190,000 70,000 Lease Liability – Operating 4,467 4,796 Lease Liability – Financing 454 434 Accounts payable and accrued expenses 18,589 17,325 Total liabilities 1,752,615 1,711,808 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; 13,771,951 shares and 13,963,432 shares outstanding, respectively 138 140 Additional paid-in capital 108,383 111,575 Unearned Employee Stock Ownership Plan (“ESOP”) shares (4,957) (5,218)Retained earnings 258,746 244,970 Accumulated other comprehensive gain 258 233 Total stockholders’ equity 362,568 351,700 Total liabilities and stockholders’ equity $2,115,183 $2,063,508
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands, except per share amounts) (In thousands, except per share amounts)INTEREST INCOME: Loans $35,174 $36,740 $70,216 $73,622Interest-earning deposits 554 1,027 1,156 2,108Securities 332 272 657 516Total Interest Income 36,060 38,039 72,029 76,246INTEREST EXPENSE: Deposits 10,610 12,053 22,012 25,986Borrowings 790 902 1,213 902Financing lease 10 10 20 20Total Interest Expense 11,410 12,965 23,245 26,908Net Interest Income 24,650 25,074 48,784 49,338Provision for credit loss 860 — 860 237Net Interest Income after Provision for Credit Loss 23,790 25,074 47,924 49,101NON-INTEREST INCOME: Other loan fees and service charges 549 611 1,218 1,351Earnings on bank owned life insurance 185 170 364 336Unrealized (loss) gain on equity securities (122) 51 (243) 351Other 30 26 99 55Total Non-Interest Income 642 858 1,438 2,093NON-INTEREST EXPENSES: Salaries and employee benefits 5,817 5,650 11,989 11,583Occupancy expense 787 743 1,661 1,489Equipment 221 253 444 470Outside data processing 725 758 1,521 1,494Advertising 43 123 86 225Real estate owned expense - 247 - 277Other 3,026 2,734 5,797 5,589Total Non-Interest Expenses 10,619 10,508 21,498 21,127INCOME BEFORE PROVISION FOR INCOME TAXES 13,813 15,424 27,864 30,067PROVISION FOR INCOME TAXES 4,018 4,254 8,117 8,330NET INCOME $9,795 $11,170 $19,747 $21,737
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands, except per share amounts) (In thousands, except per share amounts)Per share data: Earnings per share - basic $0.75 $0.85 $1.50 $1.65 Earnings per share - diluted 0.72 0.82 1.46 1.60 Weighted average shares outstanding - basic 13,135 13,216 13,155 13,204 Weighted average shares outstanding - diluted 13,538 13,568 13,533 13,563 Performance ratios/data: Return on average total assets 1.95% 2.27% 1.96% 2.20%Return on average shareholders' equity 10.81% 13.37% 10.97% 13.18%Net interest income $24,650 $25,074 $48,784 $49,338 Net interest margin 5.14% 5.35% 5.06% 5.23%Efficiency ratio 41.99% 40.52% 42.81% 41.08%Net charge-off ratio 0.11% 0.09% 0.06% 0.01% Loan portfolio composition: June 30, 2026 December 31, 2025One-to-four family $3,046 $3,114 Multi-family 301,628 306,508 Mixed-use 24,997 25,197 Total residential real estate 329,671 334,819 Non-residential real estate 36,247 38,463 Construction 1,403,562 1,336,329 Commercial and industrial 150,394 150,397 Consumer 34 58 Gross loans 1,919,908 1,860,066 Deferred loan (fees) cost, net (149) 268 Total loans $1,919,759 $1,860,334 Asset quality data: Loans past due over 90 days and still accruing $- $- Non-accrual loans - - Total non-performing assets $— $— Allowance for credit losses to total loans 0.25% 0.25%Allowance for credit losses to non-performing loans 0.00% 0.00%Non-performing loans to total loans 0.00% 0.00%Non-performing assets to total assets 0.00% 0.00% Bank's Regulatory Capital ratios: Total capital to risk-weighted assets 15.31% 15.62%Common equity tier 1 capital to risk-weighted assets 15.05% 15.36%Tier 1 capital to risk-weighted assets 15.05% 15.36%Tier 1 leverage ratio 17.32% 16.39%
NET INTEREST MARGIN ANALYSIS
(Unaudited) Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 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 $1,823,222 $35,174 7.72% $1,754,363 $36,740 8.38%Securities 45,375 324 2.86% 37,839 265 2.80%Federal Home Loan Bank stock 536 8 5.97% 438 7 6.39%Other interest-earning assets 50,466 554 4.39% 83,135 1,027 4.94%Total interest-earning assets 1,919,599 36,060 7.51% 1,875,775 38,039 8.11%Allowance for credit losses (4,594) (5,122) Non-interest-earning assets 93,251 95,651 Total assets $2,008,256 $1,966,304 Interest-bearing demand deposit $346,797 $2,652 3.06% $298,689 $2,401 3.22%Savings and club accounts 133,982 662 1.98% 141,238 761 2.16%Certificates of deposit 754,660 7,296 3.87% 815,000 8,891 4.36%Total interest-bearing deposits 1,235,439 10,610 3.44% 1,254,927 12,053 3.84%Borrowed money 86,151 800 3.71% 82,712 912 4.41%Total interest-bearing liabilities 1,321,590 11,410 3.45% 1,337,639 12,965 3.88%Non-interest-bearing demand deposit 299,529 274,466 Other non-interest-bearing liabilities 24,773 20,114 Total liabilities 1,645,892 1,632,219 Equity 362,364 334,085 Total liabilities and equity $2,008,256 $1,966,304 Net interest income / interest spread $24,650 4.06% $25,074 4.23%Net interest rate margin 5.14% 5.35%Net interest earning assets $598,009 $538,136 Average interest-earning assets to interest-bearing liabilities 145.25% 140.23%
NET INTEREST MARGIN ANALYSIS
(Unaudited) Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 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 $1,825,651 $70,216 7.69% $1,761,069 $73,622 8.36%Securities 45,234 643 2.84% 37,298 500 2.68%Federal Home Loan Bank stock 473 14 5.92% 418 16 7.66%Other interest-earning assets 55,251 1,156 4.18% 88,277 2,108 4.78%Total interest-earning assets 1,926,609 72,029 7.48% 1,887,062 76,246 8.08%Allowance for credit losses (4,661) (4,978) Non-interest-earning assets 92,237 96,071 Total assets $2,014,185 $1,978,155 Interest-bearing demand deposit $334,730 $5,105 3.05% $286,726 $4,846 3.38%Savings and club accounts 134,899 1,332 1.97% 140,077 1,491 2.13%Certificates of deposit 806,181 15,575 3.86% 888,136 19,649 4.42%Total interest-bearing deposits 1,275,810 22,012 3.45% 1,314,939 25,986 3.95%Borrowed money 67,710 1,233 3.64% 41,584 922 4.43%Total interest-bearing liabilities 1,343,520 23,245 3.46% 1,356,523 26,908 3.97%Non-interest-bearing demand deposit 287,324 272,680 Other non-interest-bearing liabilities 23,389 19,107 Total liabilities 1,654,233 1,648,310 Equity 359,952 329,845 Total liabilities and equity $2,014,185 $1,978,155 Net interest income / interest spread $48,784 4.02% $49,338 4.11%Net interest rate margin 5.06% 5.23%Net interest earning assets $583,089 $530,539 Average interest-earning assets to interest-bearing liabilities 143.40% 139.11%