The emergence of $17.4M in non-performing assets from zero and the $500K commercial loan charge-off signal potential credit deterioration in the construction and commercial portfolios. Monitor the resolution of the Bronx construction loan in foreclosure and any further charge-off activity in upcoming quarters.
Price Chart
Executive Summary
NorthEast Community Bancorp reported Q3 2026 EPS of $0.79 diluted, missing the $0.89 consensus by 11.2%, with net income declining to $10.7M from $11.9M a year ago. Net interest margin compressed 29bp to 5.09%, non-interest income swung to a loss of $185K from a $1.0M gain, and non-performing assets emerged at $17.4M (0.79% of assets) from zero. Loan portfolio grew 8.6% YTD driven by construction lending, but the earnings miss and credit quality deterioration are the dominant signals.
Key Financial Metrics
Key Facts
- Q3 2026 diluted EPS $0.79 vs $0.89 consensus (11.2% miss) and vs $0.87 year-ago
- Net income $10.7M vs $11.9M year-ago, down 10.1%
- Net interest margin fell 29bp to 5.09% from 5.38%
- Non-interest income swung to a loss of $185K from +$1.0M, driven by $1.1M unrealized loss on equity securities
- Non-performing assets of $17.4M emerged from zero at year-end 2025, including a $13.9M construction loan in foreclosure
- Credit loss expense $860K YTD vs $237K YTD last year, with $584K in charge-offs including a $500K commercial loan
- Loan portfolio grew $160M or 8.6% YTD to $2.0B, led by $207M construction loan growth
- Stock buyback program active: 239,894 shares repurchased at $5.6M through Sep 30
- Return on average assets fell to 2.00% from 2.35%; ROE fell to 11.54% from 13.84%
Financial Impact
EPS miss of $0.10 vs consensus (11.2%) and net income decline of $1.2M YoY; non-performing assets of $17.4M represent 0.79% of total assets
Risk Factors
- Non-performing assets of $17.4M (0.79% of assets) from zero at year-end, concentrated in one $13.9M construction loan
- Net interest margin compression of 29bp YoY to 5.09% due to rate cuts and repricing
- Non-interest income volatility from $1.1M unrealized loss on equity securities
- Elevated miscellaneous charge-offs of $1.1M YTD from customer fraud
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3386856 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $27.77 | awaiting T+20 | — | $28.53 (−2.74%) |
Oct 22, 2026 4d ago | Press Release | $28.78 | awaiting T+20 | — | $28.53 (+0.87%) |
Sep 23, 2026 4w ago | Press Release | $26.38 $28.25 | ▲ +7.09% | ▲ +6.40% | $28.53 (+8.15%) |
Jul 24, 2026 13w ago | Press Release | $26.66 $26.37 | ▲ +1.09% | ▲ +4.71% | $28.53 (−7.01%) |
Jun 18, 2026 18w ago | Press Release | $25.74 $27.18 | ▲ +5.59% | ▲ +5.06% | $28.53 (+10.84%) |
Apr 30, 2026 25w ago | 8-K | $24.15 $24.23 | ▼ −0.33% | ▲ +4.93% | $28.53 (−18.14%) |
Apr 29, 2026 25w ago | Press Release | $24.28 $24.31 | ▲ +0.12% | ▼ −5.34% | $28.53 (+17.50%) |
Apr 10, 2026 28w ago | DEFA14A | $24.96 $23.98 | ▼ −3.93% | ▼ −11.65% | $28.53 (+14.30%) |
Mar 19, 2026 31w ago | Press Release | $23.06 $25.34 | ▲ +9.89% | ▲ +2.27% | $28.53 (+23.73%) |
Mar 5, 2026 33w ago | Insider Cluster | $23.46 $24.16 | ▲ +3.00% | ▲ +6.79% | $28.53 (+21.63%) |
US Market Status
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