The EPS miss and declining net income confirm the margin compression trend from prior quarters. With consensus already at $0.79 for next quarter, watch for further NIM erosion as the Fed rate cuts continue to pressure loan yields faster than deposit costs. The active buyback provides a floor but does not offset fundamental headwinds.
Price Chart
Executive Summary
NorthEast Community Bancorp reported Q1 2026 net income of $10.0M ($0.74 diluted EPS), down 5.8% YoY from $10.6M ($0.78), missing the $0.75 consensus estimate by 1.3%. Net interest income slipped 0.5% to $24.1M as net interest margin compressed 12 bps to 4.99%, while non-interest income dropped 35.5% due to an unrealized loss on equity securities. Asset quality remains pristine with zero non-performing assets, but the declining earnings trajectory and margin compression signal headwinds from the lower rate environment.
Key Financial Metrics
Key Facts
- Q1 2026 diluted EPS of $0.74 missed consensus of $0.75 (-1.3%) and declined 5.1% YoY from $0.78
- Net income fell 5.8% YoY to $10.0M from $10.6M
- Net interest margin compressed 12 bps to 4.99% from 5.11% a year ago
- Net interest income declined 0.5% to $24.1M as loan yield fell 61 bps to 7.44%
- Non-interest income dropped 35.5% to $796K, driven by a $421K swing from unrealized gain to loss on equity securities
- Total loans decreased 1.7% sequentially to $1.82B as construction loans paid down
- No non-performing assets at quarter end; allowance for credit losses at 0.25% of loans
- Third stock repurchase program active with 196,438 shares repurchased at $4.5M cost through March 31, 2026
Financial Impact
EPS miss of $0.01 vs consensus and 5.8% YoY net income decline on $335M market cap
Risk Factors
- Continued net interest margin compression as lower-rate environment pressures asset yields
- Construction loan pay-downs reducing the loan portfolio faster than new originations
- Unrealized losses on equity securities from interest rate volatility could further pressure non-interest income
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-053107 |
| Document: tm2613189d1_8k.htm | 0001104659-26-053107 |
| Document: 0001104659-26-053107-index-headers.html | 0001104659-26-053107 |
| Document: 0001104659-26-053107-index.html | 0001104659-26-053107 |
| Document: 0001104659-26-053107.txt | 0001104659-26-053107 |
| 8-K Data (Synthetic) | 0001104659-26-053107 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $27.60 | awaiting T+1 | — | $28.53 (−3.39%) |
Oct 22, 2026 4d ago | Press Release | $28.78 $27.77 | ▲ +3.51% | ▲ +2.99% | $28.53 (+0.87%) |
Sep 23, 2026 4w ago | Press Release | $26.38 $26.63 | ▲ +0.95% | ▲ +1.03% | $28.53 (+8.15%) |
Jul 24, 2026 13w ago | Press Release | $26.66 $26.72 | ▼ −0.23% | ▼ −0.20% | $28.53 (−7.01%) |
Jun 18, 2026 18w ago | Press Release | $25.74 $25.95 | ▲ +0.82% | ▲ +1.13% | $28.53 (+10.84%) |
Apr 30, 2026 25w ago | 8-K | $24.15 $23.73 | ▲ +1.74% | ▲ +1.40% | $28.53 (−18.14%) |
Apr 29, 2026 25w ago | Press Release | $24.28 $24.00 | ▼ −1.15% | ▼ −2.18% | $28.53 (+17.50%) |
Apr 10, 2026 28w ago | DEFA14A | $24.96 $25.01 | ▲ +0.20% | ▼ −1.01% | $28.53 (+14.30%) |
Mar 19, 2026 31w ago | Press Release | $23.06 $23.05 | ▼ −0.04% | ▲ +1.70% | $28.53 (+23.73%) |
Mar 5, 2026 33w ago | Insider Cluster | $23.46 $23.20 | ▼ −1.10% | ▲ +0.21% | $28.53 (+21.63%) |
US Market Status
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