Northeast Community Bancorp Reports $47.1 Million Net Income and 13.9% Asset Growth for Fiscal Year 2024

Northeast Community Bancorp, Inc. reported a net income of $47.1 million for the fiscal year ending December 31, 2024, reflecting a slight increase from $46.3 million in the previous year. The company's total assets grew by 13.9% to $2.01 billion, driven primarily by a $226 million increase in net loans, which reached $1.81 billion. This growth in loans was largely attributed to a focus on construction lending, which constituted 78.7% of the total loan portfolio. The increase in net interest income, which rose to $102.8 million from $97.2 million, was a key factor in the overall profitability, despite a rise in interest expenses due to higher rates.

In terms of operational changes, Northeast Community Bancorp completed the sale of its investment advisory assets related to the Harbor West Wealth Management Group in January 2024, resulting in the cessation of investment advisory fee income. This contributed to a decrease in non-interest income, which fell to $2.78 million from $3.74 million in 2023. The company also reported a reduction in its allowance for credit losses, which decreased to $4.83 million from $5.09 million, reflecting improved credit quality and a reduction in non-performing assets.

The bank's customer base expanded, with total deposits increasing by 19.3% to $1.67 billion, driven by competitive interest rates that attracted new deposits. The bank's strategy includes maintaining low customer fees to enhance deposit growth, and it plans to explore further branch expansion opportunities in high-demand areas. As of December 31, 2024, the bank operated 11 branches across New York and Massachusetts, with a focus on construction loans in high absorption areas.

Looking ahead, Northeast Community Bancorp expressed optimism about its growth trajectory, particularly in construction lending, which remains a significant focus due to ongoing demand in its primary markets. The company is also committed to managing its credit risk effectively while continuing to invest in its infrastructure and technology to support future growth. The bank's capital position remains strong, with a well-capitalized status under regulatory standards, positioning it favorably for potential expansion and operational initiatives in the coming years.