NASDAQ$NECB

Northeast Community Bancorp Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong earnings due to the strong performance of the loan portfolio.

NorthEast Community Bancorp reported a net income of $11.8 million for the three months ended September 30, 2023, compared to $7.5 million for the same period in 2022. The increase was primarily due to a strong loan portfolio performance and continued strength in loan demand, particularly for construction lending in affordable housing.

  • Net income increased to $11.8 million, or $0.80 per basic and diluted common share, compared to $7.5 million, or $0.49 per basic and diluted common share, for the three months ended September 30, 2022.
  • Total assets increased by $295.0 million, or 20.7%, to $1.7 billion at September 30, 2023, from $1.4 billion at December 31, 2022.
  • Net interest income increased by $7.7 million, or 43.9%, to $25.1 million for the three months ended September 30, 2023, compared to $17.5 million for the three months ended September 30, 2022.
  • The company recorded credit loss expenses totaling $156,000 for the three months ended September 30, 2023 compared to no credit loss expense for the three months ended September 30, 2022.

Headline financials

Total Revenue

$25.4M

Previous: $17.8M+42.7%
EPS (adj)

$0.80

Previous: $0.49+63.3%
Net Interest Margin

6.4%

Previous: 5.9%+8.8%
Non-Performing Assets to Assets

0.3%

No prior period
Tier 1 Leverage Ratio

14.7%

Previous: 16.9%-13.1%
Total Risk-Based Capital

13.5%

Previous: 13.5%+0.0%
Capital Expenditures

-$380K

Previous: -$3.24M+88.3%
Free Cash Flow

$11.5M

Previous: $4.31M+166.2%
Net Income

$11.8M

Previous: $7.54M+57.0%
Operating Income

$12.6M

Previous: $13.8M-9.0%
Gross Profit

$25.2M

Previous: $17.8M+41.8%
Cash & Equivalents

$107M

Previous: $54.9M+94.3%
Total Assets

$1.72B

Previous: $1.28B+33.9%

Revenue & EPS history

Northeast Community Bancorp · Revenue · Quarterly

$25.4M

Q3 2023+42.7%vs Q3 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

This press release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors.

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 based upon the current beliefs and expectations of the Company’s management
  • Statements regarding the quality and composition of the loan or investment portfolios

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 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

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 Q3 2023

Historical avgQ3 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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