WHITE PLAINS, N.Y., May 01, 2017 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (OTC:NECB) (the “Company”), a majority owned subsidiary of NorthEast Community Bancorp, MHC, reported net income of $1.5 million for the quarter ended March 31, 2017 compared to net income of $1.1 million for the quarter ended March 31, 2016. The increase in net income was primarily the result of loan growth in the lower Hudson Valley and continued loan portfolio restructuring through attrition of specific asset types.
Net interest income for the first quarter increased by $1.6 million or 30.2% to $6.8 million at March 31, 2017 from $5.2 million at March 31, 2016.
Net income before taxes for the quarter ending March 31, 2017 was $2.47 million compared to $1.77 million at March 31, 2016. Provision for income taxes during the first quarter of 2017 was $968 thousand compared to $670 thousand for the first quarter of 2016.
Total consolidated assets increased $91.2 million, or 14.0%, to $742.6 million at March 31, 2017 from $651.4 million at March 31, 2016. Loans receivable increased by $99.5 million or 18.9% to $627.3 million at March 31, 2017 from $527.8 million at March 31, 2016, while commitments, loans-in-process and standby letters of credit outstanding increased to $297.5 million as of March 31, 2017 compared to $184.3 million at March 31, 2016. The increase was primarily the result of our continued focus on growing our lending operations in the lower Hudson Valley.
Total liabilities at March 31, 2017 were $631.7 million compared to $545.4 million at March 31, 2016, an increase of $86.4 million, or 15.8%. The increase in total liabilities was due to a $94.7 million increase in deposits from $464.7 million at March 31, 2016 to $559.4 million at March 31, 2017. Federal Home Loan Bank advances decreased by $8.5 million to $62.9 million at the end of the first quarter of 2017, compared to $71.3 million at March 31, 2016.
Total stockholder’s equity increased $4.8 million or 4.5% to $110.9 million at March 31, 2017 from $106.1 million at March 31, 2016. The increase is primarily a result of net income of $5.4 million for the twelve months ending March 31, 2017 partially offset by dividends paid.
Financial Condition and Operating results for March 31, 2017 compared to December 31, 2016:
Net interest income for the first quarter increased by $234 thousand or 3.6% to $6.8 million at March 31, 2017 from $6.6 million at December 31, 2016.
Net income before taxes for the quarter ended March 31, 2017 was $2.47 million compared to $2.69 million for the quarter ended December 31, 2016. Provision for income taxes during the first quarter of 2017 was $968 thousand compared to $1.06 million for the fourth quarter of 2016.
Total consolidated assets increased $8.1 million, or 1.1%, to $742.6 million at March 31, 2017 from $734.5 million at December 31, 2016. Loans receivable decreased by $2.6 million or 0.4% to $627.3 million at March 31, 2017 from $629.9 million at December 31, 2016, while commitments, loans-in-process and standby letters of credit outstanding increased to $297.5 million as of March 31, 2017 compared to $253.8 million at December 31, 2016.
Total liabilities at March 31, 2017 were $631.7 million compared to $625.1 million at December 31, 2016, an increase of $6.6 million, or 1.1%. The increase in total liabilities was due to a $14.1 million increase in deposits from $545.3 million at December 31, 2016 to $559.4 million at March 31, 2017. Federal Home Loan Bank advances decreased by $7.4 million to $62.9 million at the end of the first quarter of 2017, compared to $70.2 million at December 31, 2016.
NorthEast Community Bancorp, Inc.’s total stockholder’s equity at March 31, 2017 is a strong 14.93% compared to 14.90% at December 31, 2016.
NorthEast Community Bancorp, Inc. is the holding company for NorthEast Community Bank. NorthEast Community Bank is a New York State-chartered savings bank that operates four full-service branches in New York and four full-service branches in Danvers, Plymouth, Framingham and Quincy, Massachusetts and loan production offices in Danvers, Massachusetts and White Plains and New City, New York.
This release contains “forward-looking statements” that are based on assumptions and may describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by the use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in market interest rates, 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 quality and composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in the real estate market values in the Company’s market area and changes in relevant accounting principles and guidelines These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.