NASDAQ$NECB

Northeast Community Bancorp Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong earnings for Q2 2023, driven by loan portfolio performance and despite interest rate increases.

NorthEast Community Bancorp reported a strong second quarter with net income significantly increased compared to the same period last year, driven by the robust performance of its loan portfolio and strategic focus on construction lending for affordable housing.

  • Net income increased to $11.1 million, or $0.75 per share, compared to $5.4 million, or $0.35 per share, in the same quarter last year.
  • Total assets grew by 13.4% to $1.6 billion, driven by increases in net loans and cash equivalents.
  • Net interest income rose by 77.4% to $24.0 million, due to an increase in interest income offset by an increase in interest expense.
  • Non-interest income increased by 90.3% to $1.0 million, primarily due to an increase in BOLI income and a decrease in unrealized loss on equity securities.

Headline financials

Total Revenue

$25M

Previous: $14.1M+77.9%
EPS (adj)

$0.75

Previous: $0.35+114.3%
Net Interest Margin

6.6%

Previous: 4.6%+44.1%
Non-Performing Assets to Assets

0.4%

Previous: 0.2%+56.5%
Tier 1 Leverage Ratio

15.8%

Previous: 16.3%-3.1%
Total Risk-Based Capital

14.0%

Previous: 14.5%-3.7%
Capital Expenditures

-$217K

Previous: -$2.86M+92.4%
Free Cash Flow

$10.9M

Previous: $2.53M+329.3%
Net Income

$11.1M

Previous: $5.39M+105.6%
Operating Income

$14.4M

Previous: $11M+30.6%
Gross Profit

$24.4M

Previous: $14.1M+73.5%
Cash & Equivalents

$120M

Previous: $86.2M+39.0%
Total Assets

$1.62B

Previous: $1.22B+32.3%

Revenue & EPS history

Northeast Community Bancorp · Revenue · Quarterly

$25M

Q2 2023+77.9%vs Q2 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

This press release contains forward-looking statements based on current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties.

Tailwinds

  • Statements regarding anticipated future events.
  • Statements including words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend”.
  • Statements including future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
  • Statements are based upon the current beliefs and expectations of the Company’s management.
  • Statements are subject to significant risks and uncertainties.

Headwinds

  • Changes in market interest rates.
  • Regional and national economic conditions (including higher inflation and its impact on 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.1%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.2%

Avg return

30 days after

66%

25 / 38 earnings

Positive

+20.1%

Q2 2010

Best reaction

-12.8%

Q1 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.5%-0.5%-0.2%
Q4 2025+0.9%+7.8%+6.0%
Q3 2025-0.1%-3.0%+5.3%
Q2 2025-0.9%-1.4%-3.3%
Q1 2025+1.2%+0.8%-1.0%
Q4 2024-0.6%+4.6%-4.6%
Q3 2024-0.8%-5.0%+10.7%
Q2 2024+9.9%+12.5%+7.2%
Q1 2024+2.8%+2.1%+12.2%
Q4 2023-2.4%-6.4%-9.8%
Q3 2023+7.1%+5.4%+17.3%
Q2 2023+3.2%+2.6%+3.3%
Q1 2023+0.3%-1.1%+1.8%
Q4 2022+2.3%+1.3%+2.3%
Q3 2022+1.4%+2.8%+8.8%
Q2 2022+0.2%+1.3%+6.1%
Q1 2022+0.7%+0.9%+1.8%
Q4 2021+2.2%+9.7%+4.6%
Q3 2021+1.4%+1.7%-1.2%
Q2 2021-0.2%-0.5%+0.5%
Q1 2021-0.4%-0.4%-9.9%
Q4 2020-0.4%-0.4%-9.9%
Q1 2014+3.4%
Q3 2013+0.2%
Q2 2013-0.6%
Q1 2013+0.0%
Q4 2012+0.8%
Q3 2012+0.2%
Q2 2012+3.0%
Q1 2012+0.5%
Q4 2011+1.4%
Q3 2011+1.8%
Q2 2011+0.2%
Q1 2011+0.2%
Q4 2010+2.4%
Q3 2010-1.4%
Q2 2010+20.1%
Q1 2010-12.8%

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