Northeast Community Bancorp Inc. Reports Operating Results (10-Q)

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May 14, 2010
Northeast Community Bancorp Inc. (NECB, Financial) filed Quarterly Report for the period ended 2010-03-31.

Northeast Community Bancorp Inc. has a market cap of $72.6 million; its shares were traded at around $5.48 . The dividend yield of Northeast Community Bancorp Inc. stocks is 2.1%.

Highlight of Business Operations:

Reflecting the impact of the economic downturn on our market area and the continuing decline in the market value of collateral for commercial real estate and multi-family loans, our nonperforming loans increased to $35.6 million at March 31, 2010 from $20.2 million at December 31, 2009. Non-performing loans at March 31, 2010 consisted of 15 loans in the aggregate (nine non-residential mortgage loans and six multi-family mortgage loans). The increase in nonperforming loans during the first quarter of 2010 was primarily due to the addition of four nonperforming nonresidential mortgage loans totaling $15.7 million and three nonperforming multi-family mortgage loans totaling $3.5 million, offset by the removal from nonperforming status of one nonperforming multi-family mortgage loan totaling $2.9 million and one nonperforming nonresidential mortgage loan totaling $1.1 million both of which became current at March 31, 2010.

Total assets decreased by $10.1 million, or 1.9%, to $517.2 million at March 31, 2010 from $527.3 million at December 31, 2009. The decrease in total assets was due to a decrease of $33.7 million in cash and cash equivalents, a decrease of $5.0 million in certificates of deposits at other financial institutions, a decrease of $327,000 in other assets and a decrease of $181,000 in premises and equipment, partially offset by increases of $22.4 million in investment securities held-to-maturity, increases of $5.2 million in bank owned life insurance, and increases of $1.6 million in loans receivable, net.

Cash and cash equivalents decreased by $33.7 million, or 38.0%, to $55.0 million at March 31, 2010, from $88.7 million at December 31, 2009. In addition, certificates of deposits at other financial institutions decreased by $5.0 million, or 38.0%, to $3.7 million at March 31, 2010 from $8.7 million at December 31, 2009.

Investment securities increased by $22.4 million, or 188.9%, to $34.2 million at March 31, 2010 from $11.8 million at December 31, 2009 due to an effort to increase yield and earnings through the purchases of $12.4 million in U.S. Government agency securities, $5.1 million in mortgage-backed securities and $5.1 million in collateralized mortgage obligations.

Deposits decreased by $11.9 million, or 3.1%, to $367.6 million at March 31, 2010 from $379.5 million at December 31, 2009. The decrease in deposits was primarily attributable to decreases of $12.2 million in certificates of deposits and $2.7 million in non-interest bearing accounts, offset by increases of $2.0 million in our NOW and money market accounts and $1.0 million in our regular savings accounts.

General. Net income increased by $17,000, or 3.4%, to $523,000 for the quarter ended March 31, 2010, from $506,000 for the quarter ended March 31, 2009. The increase was primarily the result of an increase of $119,000 in net interest income, an increase of $55,000 in non-interest income, a decrease of $95,000 in the provision for income taxes, and a decrease of $16,000 in provision for loan losses, offset by an increase of $268,000 in non-interest expense.

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