The EPS miss and emergence of NPLs are the primary negatives, but the strong loan growth and elimination of borrowings provide offsetting positives. Watch for further credit deterioration on the $17.4M in non-performing construction and C&I loans, and monitor the trajectory of net interest margin compression in a potentially rising rate environment.
Price Chart
Executive Summary
NECB reported Q3 2026 EPS of $0.79 diluted, missing the $0.89 consensus by 11.2%, while net interest income grew modestly 0.6% YoY. The miss was driven by a $1.1M unrealized loss on equity securities and a $729K increase in fraud-related charge-offs, partially offset by strong loan portfolio growth. The emergence of $17.4M in non-performing assets (0.79% of total assets) from zero at year-end 2025 is a notable credit quality deterioration.
Key Financial Metrics
Key Facts
- Q3 2026 diluted EPS of $0.79 missed consensus of $0.89 by 11.2%
- Net income fell to $10.7M from $11.9M YoY, a 10.1% decline
- Non-performing assets surged to $17.4M (0.79% of assets) from zero at Dec 2025
- Net interest margin compressed 29 bps to 5.09% from 5.38% YoY
- Non-interest income swung to a loss of $185K from +$1.0M YoY on equity securities losses
- Loan portfolio grew 8.6% YTD to $2.0B, driven by construction loans
- Borrowings eliminated to zero from $70M at Dec 2025
- Third stock repurchase program active with 239,894 shares repurchased at $5.6M cost
Financial Impact
EPS miss of ~$0.10 vs consensus; $17.4M in new non-performing assets; $1.1M unrealized loss on equity securities
Risk Factors
- Credit quality deterioration with $17.4M in non-performing assets from zero at year-end 2025
- Net interest margin compression of 29 bps YoY to 5.09%
- Elevated fraud-related charge-offs of $729K in the quarter
- Unrealized losses on equity securities due to interest rate volatility
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-118368 |
| Document: tm2628181d1_8k.htm | 0001104659-26-118368 |
| Document: 0001104659-26-118368-index-headers.html | 0001104659-26-118368 |
| Document: 0001104659-26-118368-index.html | 0001104659-26-118368 |
| Document: 0001104659-26-118368.txt | 0001104659-26-118368 |
| 8-K Data (Synthetic) | 0001104659-26-118368 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | 8-K | $27.77 | awaiting T+20 | — | $28.52 (−2.70%) |
Oct 22, 2026 5d ago | Press Release | $28.78 | awaiting T+20 | — | $28.52 (+0.90%) |
Sep 23, 2026 4w ago | Press Release | $26.38 $28.25 | ▲ +7.09% | ▲ +6.40% | $28.52 (+8.11%) |
Jul 24, 2026 13w ago | Press Release | $26.66 $26.37 | ▲ +1.09% | ▲ +4.71% | $28.52 (−6.98%) |
Jun 18, 2026 18w ago | Press Release | $25.74 $27.18 | ▲ +5.59% | ▲ +5.06% | $28.52 (+10.80%) |
Apr 30, 2026 25w ago | 8-K | $24.15 $24.23 | ▼ −0.33% | ▲ +4.93% | $28.52 (−18.10%) |
Apr 29, 2026 25w ago | Press Release | $24.28 $24.31 | ▲ +0.12% | ▼ −5.34% | $28.52 (+17.46%) |
Apr 10, 2026 28w ago | DEFA14A | $24.96 $23.98 | ▼ −3.93% | ▼ −11.65% | $28.52 (+14.26%) |
Mar 19, 2026 31w ago | Press Release | $23.06 $25.34 | ▲ +9.89% | ▲ +2.27% | $28.52 (+23.68%) |
Mar 5, 2026 33w ago | Insider Cluster | $23.46 $24.16 | ▲ +3.00% | ▲ +6.79% | $28.52 (+21.59%) |
US Market Status
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