# EDGAR Filing Document

**Accession Number:** 0001847398
**File Stem:** 0001104659-23-009205
**Filing Date:** 2023-2
**Character Count:** 48162
**Document Hash:** bfae225236f5f246d8b995cf44f5601c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-009205.hdr.sgml**: 20230201

**ACCESSION NUMBER**: 0001104659-23-009205

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230131

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230201

**DATE AS OF CHANGE**: 20230201

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NorthEast Community Bancorp, Inc./MD/
- **CENTRAL INDEX KEY:** 0001847398
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40589
- **FILM NUMBER:** 23576553

**BUSINESS ADDRESS:**
- **STREET 1:** 325 HAMILTON AVENUE
- **CITY:** WHITE PLAINS
- **STATE:** NY
- **ZIP:** 10601
- **BUSINESS PHONE:** (914) 684-2500

**MAIL ADDRESS:**
- **STREET 1:** 325 HAMILTON AVENUE
- **CITY:** WHITE PLAINS
- **STATE:** NY
- **ZIP:** 10601

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): January 31, 2023

<u>NORTHEAST COMMUNITY BANCORP, INC.</u>

(Exact Name of Registrant as Specified in Its Charter)

<u>Maryland</u> <u>001-40589</u> <u>86-3173858</u> <br> (State or other jurisdiction of (Commission (IRS Employer <br> incorporation or organization) File Number) Identification No.)

<u>325 Hamilton Avenue, White Plains, New York 10601</u>

(Address of principal executive offices) (Zip Code)

<u>(914) 684-2500</u>

(Registrant's telephone number, including area code)

<u>Not Applicable</u>

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | |
|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;Common Stock, par value $0.01 per share &nbsp;&nbsp;NECB | &nbsp;&nbsp;The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

---

| | |
|:---|:---|
| **Item 2.02** | **<u>Results of Operations and Financial Condition</u>.** |

---

On January 31, 2023, NorthEast Community Bancorp, Inc. (the "Company") issued a press release announcing its financial results for the three months and year ended December 31, 2022. A copy of the Company's press release is attached as Exhibit 99.1 and is furnished herewith.

The information contained in this Item 2.02 and in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific references in such a filing.

---

| | |
|:---|:---|
| **Item 9.01** | **<u>Financial Statements and Other Exhibits</u>.** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits

---

| | |
|:---|:---|
| <u>Number</u> | <u>Description</u> |
| [99.1](tm235039d1_ex99-1.htm) | [Press Release dated January 31, 2023](tm235039d1_ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | NORTHEAST COMMUNITY BANCORP, INC. | NORTHEAST COMMUNITY BANCORP, INC. |
| Date: February 1, 2023 | By: | /s/ Kenneth A. Martinek |
|  |  | Kenneth A. Martinek |
|  |  | Chairman and Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**NECB Earnings Press Release for 12/31/2022:**

**NORTHEAST COMMUNITY BANCORP,** INC. REPORTS RESULTS**

**FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2022**

White Plains, New York, January 31, 2023 – NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the "Company"), the parent holding company of NorthEast Community Bank (the "Bank"), reported net income of $8.3 million, or $0.54 per basic and diluted common share, for the three months ended December 31, 2022 compared to net income of $4.2 million, or $0.27 per basic and diluted common share for the three months ended December 31, 2021.

For the year ended December 31, 2022, the Company reported net income of $24.8 million, or $1.61 and $1.58 per basic and diluted common share, compared to net income of $11.9 million, or $0.75 per basic and diluted common share, for the year ended December 31, 2021.

Kenneth A. Martinek, NorthEast Community Bancorp's Chairman of the Board and Chief Executive Officer, stated "We are pleased to report another quarter of strong earnings due to the strong performance of our loan portfolio. Despite the lingering effects of the COVID-19 pandemic and the recent increase in interest rates, loan demand remained strong with originations and outstanding commitments remaining robust. As has been in the past, construction lending for affordable housing units in high demand-high absorption areas continues to be our focus."

Highlights for the year ended December 31, 2022 are as follows:

● Net income increased by $4.1 million and $12.9 million, or 96.4% and 108.7%, respectively, for the three months and year ended December 31, 2022 compared to the same periods in the prior year.

● Net interest income increased by $9.3 million and $20.6 million, or 79.6% and 47.5%, for the three months and year ended December 31, 2022 compared to the same periods in 2021.

● Our commitments, loans-in-process, and standby letters of credit outstanding totaled $1.0 billion at December 31, 2022 compared to $749.0 million at December 31, 2021.

● The performance of our loan portfolio remains strong with no non-accrual loans. At this time, we have no loans on deferral as a result of the COVID-19 pandemic.

**<u>Balance Sheet Summary</u>**

Total assets increased by $200.0 million, or 16.3%, to $1.4 billion at December 31, 2022, from $1.2 billion at December 31, 2021. The increase in assets was primarily due to increases in net loans of $244.1 million, securities held-to-maturity of $8.5 million, accrued interest receivable of $4.3 million, and premises and equipment of $2.2 million, partially offset by decreases in cash and cash equivalents of $57.0 million and equity securities of $1.9 million.

Cash and cash equivalents decreased by $57.0 million, or 37.4%, to $95.3 million at December 31, 2022 from $152.3 million at December 31, 2021. The decrease in cash and cash equivalents was a result of cash being deployed to fund an increase in net loans of $244.1 million, an increase in securities held-to-maturity of $8.5 million, an increase in property and equipment of $2.2 million due primarily to the purchase of property and equipment for a new branch office, and a reduction in FHLB advances of $7.0 million.

Equity securities decreased by $1.9 million, or 9.5%, to $18.0 million at December 31, 2022 from $19.9 million at December 31, 2021. The decrease in equity securities was attributable to market depreciation of $1.9 million as market interest rates increased during the year ended December 31, 2022.

Securities held-to-maturity increased by $8.5 million, or 47.6%, to $26.4 million at December 31, 2022 from $17.9 million at December 31, 2021 due primarily to the purchases of securities, partially offset by maturities and pay-downs.

Loans, net of the allowance for loan losses, increased by $244.1 million, or 25.2%, to $1.2 billion at December 31, 2022 from $968.1 million at December 31, 2021. The increase in loans, net of the allowance for loan losses, was primarily due to loan originations of $700.1 million during the year ended December 31, 2022, consisting primarily of $580.7 million in construction loans with respect to which approximately 31.3% of the funds were disbursed at loan closings, with the remaining funds to be disbursed over the terms of the construction loans.

Loan originations resulted in a net increase of $246.8 million in construction loans, $33.3 million in multi-family loans, and $277,000 in consumer loans. The increase in our loan portfolio was partially offset by decreases in non-residential loans of $19.1 million, commercial and industrial loans of $8.3 million, mixed-use loans of $6.8 million, and residential loans of $1.7 million, coupled with normal pay-downs and principal reductions.

Premises and equipment increased by $2.2 million, or 9.0%, to $26.1 million at December 31, 2022 from $23.9 million at December 31, 2021 due to the acquisition of property and equipment for a new branch site located in Bloomingburg, New York.

Investments in Federal Home Loan Bank stock decreased by $331,000, or 21.1%, to $1.2 million at December 31, 2022 from $1.6 million at December 31, 2021 due primarily to a reduction in mandatory Federal Home Loan Bank stock in connection with the maturity of $7.0 million in advances during the quarter ended March 31, 2022.

Accrued interest receivable increased by $4.3 million, or 100.7%, to $8.6 million at December 31, 2022 from $4.3 million at December 31, 2021 due to an increase in the loan portfolio and seven interest rate increases in 2022 that resulted in an increase in the interest rates on loans in our construction loan portfolio.

Foreclosed real estate decreased by $540,000, or 27.1%, to $1.5 million at December 31, 2022 from $2.0 million at December 31, 2021 due to a write down on the fair market value of the property because the increase in interest rates caused an increase in the capitalization rate thereby resulting in a reduction in the calculated fair market value of the property.

Right of use assets — operating decreased by $252,000, or 9.8%, to $2.3 million at December 31, 2022 from $2.6 million at December 31, 2021, primarily due to amortization.

Other assets increased by $730,000, or 15.6%, to $5.4 million at December 31, 2022 from $4.7 million at December 31, 2021 due to increases in suspense accounts of $641,000, tax assets of $98,000, and prepaid expense of $12,000, partially offset by decreases in securities and principal receivables of $19,000 and miscellaneous assets of $2,000.

Total deposits increased by $194.8 million, or 21.0%, to $1.1 billion at December 31, 2022 from $927.2 million at December 31, 2021. The increase was primarily due to increases in certificates of deposit of $90.7 million, or 31.0%, savings account balances of $88.9 million, or 48.1%, and non-interest bearing demand deposits of $45.4 million, or 13.7%. These increases were partially offset by a decrease in NOW/money market accounts of $30.3 million, or 25.6%, from December 31, 2021 to December 31, 2022.

Federal Home Loan Bank advances decreased by $7.0 million, or 25.0%, to $21.0 million at December 31, 2022 from $28.0 million at December 31, 2021 due to maturity of borrowings.

Advance payments by borrowers for taxes and insurance increased by $485,000, or 25.7%, to $2.4 million at December 31, 2022 from $1.9 million at December 31, 2021 due primarily to the accumulation of tax payments from borrowers.

Lease liability – operating decreased by $241,000, or 9.3%, to $2.4 million at December 31, 2022 from $2.6 million at December 31, 2021, primarily due to amortization.

Accounts payable and accrued expenses increased by $1.2 million, or 9.0%, to $14.8 million at December 31, 2022 from $13.5 million at December 31, 2021 due primarily to an increase in accrued bonus expense of $1.1 million for employees.

Stockholders' equity increased by $10.7 million, or 4.2% to $262.1 million at December 31, 2022, from $251.4 million at December 31, 2021. The increase in stockholders' equity was due to net income of $24.8 million for the year ended December 31, 2022, a reduction of $869,000 in unearned employee stock ownership plan shares coupled with an increase of $206,000 in earned employee stock ownership plan shares, $369,000 in other comprehensive income, and $208,000 in the amortization of restricted stocks and stock options awarded in connection with the Equity Incentive Plan, partially offset by stock repurchases totaling $9.3 million and dividends paid and declared of $6.5 million.

**<u>Net Interest Income</u>**

Net interest income totaled $20.9 million for the three months ended December 31, 2022, as compared to $11.7 million for the three months ended December 31, 2021. The increase in net interest income of $9.3 million, or 79.6%, was primarily due to an increase in interest income offset by an increase in interest expense.

The increase in interest income is attributable to increases in loans and investment securities, offset slightly by a decrease in interest-bearing deposits. The increase in interest income is also attributable to a rising interest rate environment as a result of the Federal Reserve's interest rate increases during the year ended December 31, 2022.

The increase in market interest rates during the year subsequent to December 31, 2021 also caused an increase in our interest expense. As a result, the increase in interest expense for the three months ended December 31, 2022 was due to an increase in the cost of funds on our deposits and an increase in the balances on our savings and club balances and our certificates of deposits, partially offset by a decrease in the balances on our interest-bearing demand deposits and a decrease in our borrowed money's cost of funds and balances.

Total interest and dividend income increased by $11.7 million, or 91.2%, to $24.5 million for the three months ended December 31, 2022 from $12.8 million for the three months ended December 31, 2021. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $182.6 million, or 16.9%, to $1.3 billion for the three months ended December 31, 2022 from $1.1 billion for the three months ended December 31, 2021 and an increase in the yield on interest earning assets by 302 basis points from 4.75% for the three months ended December 31, 2021 to 7.77% for the three months ended December 31, 2022.

Interest expense increased by $2.4 million, or 207.9%, to $3.6 million for the three months ended December 31, 2022 from $1.2 million for the three months ended December 31, 2021. The increase in interest expense was due to an increase in the cost of interest bearing liabilities by 122 basis points from 0.79% for the three months ended December 31, 2021 to 2.01% for the three months ended December 31, 2022, and an increase in average interest bearing liabilities of $124.4 million, or 21.4%, to $707.0 million for the three months ended December 31, 2022 from $582.6 million for the three months ended December 31, 2021.

Net interest margin increased by 232 basis points, or 53.7%, during the three months ended December 31, 2022 to 6.64% compared to 4.32% during the three months ended December 31, 2021.

Net interest income totaled $63.9 million for the year ended December 31, 2022, as compared to $43.3 million for the year ended December 31, 2021. The increase in net interest income of $20.6 million, or 47.5%, was primarily due to an increase in interest income offset by an increase in interest expense.

The increase in interest income is attributable to increases in loans and investment securities, offset by decreases in interest-bearing deposits and Federal Home Loan Bank stock, as we continued to grow the Company by leveraging the proceeds raised in our July 2021 second-step conversion. The increase in interest income is also due, in large part, to the increase in interest rates attributable to the Federal Reserve's rate increases during the year ended December 31, 2022.

The increase in market interest rates during the year ended December 31, 2022 also caused an increase in our interest expense. As a result, the increase in interest expense for the year ended December 31, 2022 is attributable to an increase in the cost of funds on our deposits and an increase in the balances on our savings and club balances, partially offset by decreases in the balances on our certificates of deposits and interest-bearing demand deposits and decreases in the cost of funds and balances on our borrowed money.

In this regard, interest and dividend income increased by $23.6 million, or 48.8%, to $72.0 million for the year ended December 31, 2022 from $48.4 million for the year ended December 31, 2021. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $217.5 million, or 22.1%, to $1.2 billion for the year ended December 31, 2022 from $985.1 million for the year ended December 31, 2021 and an increase in the yield on interest earning assets by 108 basis points from 4.92% for the year ended December 31, 2021 to 6.00% for the year ended December 31, 2022.

Interest expense increased by $3.0 million, or 59.3%, to $8.1 million for the year ended December 31, 2022 from $5.1 million for the year ended December 31, 2021. The increase in interest expense was due to an increase in the cost of interest bearing liabilities of 36 basis points from 0.90% for the year ended December 31, 2021 to 1.26% for the year ended December 31, 2022 and an increase in average interest bearing liabilities of $76.6 million, or 13.5%, to $645.1 million for the year ended December 31, 2022 from $568.5 million for the year ended December 31, 2021.

Net interest margin increased by 92 basis points, or 20.9%, during the year ended December 31, 2022 to 5.32% compared to 4.40% during the year ended December 31, 2021.

**<u>Provision for Loan Losses</u>**

The Company recorded loan loss provision of $439,000 for the three months ended December 31, 2022 compared to no loan loss provision for the three months ended December 31, 2021. We charged-off $426,000 during the three months ended December 31, 2022 comprised of a $328,000 charge-off against one construction project in connection with the sale of the project's two non-performing loans to a third party precipitated by legal action between the two partners/borrowers in the project, an $86,000 charge-off against two mixed-use loans to a borrower in connection with the sale of the two performing troubled debt restructured loans to a third party, and a $12,000 charge-off against various unpaid overdrafts in our demand deposit accounts. We had no charge-offs during the three months ended December 31, 2021.

The provision recorded for the three months ended December 31, 2022 was primarily attributed to the afore-mentioned charge-off of $426,000 during the three months ended December 31, 2022.

We recorded no recoveries during the three months ended December 31, 2022 compared to recoveries of $1,000 during the three months ended December 31, 2021.

The Company recorded loan loss provision of $439,000 for the year ended December 31, 2022 compared to a loan loss provision of $3.6 million for the year ended December 31, 2021. The provision recorded for the year ended December 31, 2022 was primarily attributable to the afore-mentioned charge-offs totaling $414,000 against the sale of four loans and charge-off of $34,000 against various unpaid overdrafts in our demand deposit accounts.

The provision recorded for the year ended December 31, 2021 was primarily attributed to the charge-off of the previously disclosed non-residential bridge loan with a balance of $3.6 million secured by commercial real estate located in Greenwich, Connecticut. The loan is secured by commercial real estate located in Greenwich, Connecticut and guaranteed by the two borrowers. The loan originated in 2016 as a two-year bridge loan and, upon the borrower's failure to satisfy the loan at the maturity date, the loan was accelerated and a foreclosure action was instituted. Although the loan was fully charged-off, the loan remains in foreclosure and management and the borrower negotiated a standstill agreement which allows the borrowers to retain, at their own expense, the zoning and planning consultants necessary to obtain re-approvals from the town to proceed with the original planned residential condominium development. The Company intends to aggressively seek recovery of all amounts due from the personal guarantors of the loan. If successful against the guarantors, any recovery received would be added back to the allowance for loan losses and an analysis will be performed at that time to determine the appropriateness of the recovery into income. There has been no change in the status of the recovery action during the fourth quarter ended December 31, 2022.

We also charged-off $23,000 during the year ended December 31, 2021 against various unpaid overdrafts in our demand deposit accounts.

We recorded recoveries of $242,000 during the year ended December 31, 2022 comprised of recoveries of $146,000 regarding a previously charged-off multi-family property, $53,000 regarding a previously charged-off non-residential property, and $43,000 regarding a previously charged-off mixed-use property. We recorded recoveries of $160,000 during the year ended December 31, 2021 comprised primarily of recoveries of $150,000 regarding a previously charged-off multi-family property.

**<u>Non-Interest Income</u>**

Non-interest income for the three months ended December 31, 2022 was $779,000 compared to non-interest income of $601,000 for the three months ended December 31, 2021. The increase in total non-interest income was primarily due to a one-time capital gains distribution of $329,000 from our equity securities, partially offset by an unrealized loss of $267,000 on equity securities, resulting in a net unrealized gain on equity securities of $62,000 during the three months ended December 31, 2022 compared to an unrealized loss of $174,000 on equity securities during the three months ended December 31, 2021. The unrealized loss of $267,000 on equity securities during the 2022 period was due to a rising interest rate environment and the Federal Reserve's interest rate increases during the December 31, 2022 quarter.

The increase in total non-interest income was also due to increases of $3,000 in other non-interest income and $2,000 in bank-owned life insurance income, partially offset by decreases of $40,000 in other loan fees and service charges and $23,000 in investment advisory fees.

Non-interest income for the year ended December 31, 2022 was $1.7 million compared to non-interest income of $2.4 million for the year ended December 31, 2021. The decrease in total non-interest income was primarily due to an unrealized loss of $1.9 million on equity securities, partially offset by a one-time capital gains distribution of $329,000 from our equity securities resulting in a net unrealized loss on equity securities of $1.6 million during the year ended December 31, 2022 compared to an unrealized loss of $389,000 on equity securities during the year ended December 31, 2021. The unrealized loss of $1.9 million on equity securities during the 2022 period was due to a rising interest rate environment and the Federal Reserve's interest rate increases during the year ended December 31, 2022.

The decrease in total non-interest income was also due to a decrease of $40,000 in investment advisory fees, partially offset by an increase of $426,000 in other loan fees and service charges, an increase of $91,000 on gain from the sale of fixed assets, an increase of $31,000 in other non-interest income, and an increase of $5,000 in bank-owned life insurance income.

**<u>Non-Interest Expense</u>**

Non-interest expense increased by $1.9 million, or 27.9%, to $8.6 million for the three months ended December 31, 2022 from $6.8 million for the three months ended December 31, 2021. The increase resulted primarily from increases of $497,000 in other operating expense, $451,000 in goodwill impairment loss, $363,000 in real estate owned expense, $357,000 in salaries and employee benefits, $84,000 in occupancy expense, $63,000 in outside data processing expense, $60,000 in advertising expense, and $8,000 in equipment expense.

Non-interest expense increased by $4.2 million, or 15.9%, to $30.7 million for the year ended December 31, 2022 from $26.5 million for the year ended December 31, 2021. The increase resulted primarily from increases of $1.9 million in other operating expense, $553,000 in salaries and employee benefits, $530,000 in real estate owned expense, $451,000 in goodwill impairment loss, $313,000 in occupancy expense, $234,000 in outside data processing expense, $160,000 in advertising expense, and $114,000 in equipment expense.

**<u>Income Taxes</u>**

We recorded income tax expense of $4.4 million and $1.3 million for the three months ended December 31, 2022 and 2021, respectively. For the three months ended December 31, 2022 and 2021, we had approximately $186,000 and $189,000, respectively, in tax exempt income. Our effective income tax rates were 34.7% and 23.6% for the three months ended December 31, 2022 and 2021, respectively.

We recorded income tax expense of $9.6 million and $3.7 million for the year ended December 31, 2022 and 2021, respectively. For the year ended December 31, 2022, we had approximately $740,000 in tax exempt income, compared to approximately $711,000 in tax exempt income for the year ended December 31, 2021. Our effective income tax rates were 27.8% and 23.6% for the year ended December 31, 2022 and 2021, respectively.

**<u>Asset Quality</u>**

Non-performing assets totaled $1.5 million at December 31, 2022 compared to $2.0 million at December 31, 2021. We had no non-performing loans at December 31, 2022 and 2021. Our non-performing assets consisted of one foreclosed property at December 31, 2022 and 2021. Our ratio of non-performing assets to total assets remained low at 0.10% at December 31, 2022 and at 0.16% at December 31, 2021.

The Company's allowance for loan losses totaled $5.5 million, or 0.45% of total loans as of December 31, 2022, compared to $5.2 million, or 0.54% of total loans as of December 31, 2021. Based on a review of the loans that were in the loan portfolio at December 31, 2022, management believes that the allowance for loan losses is maintained at a level that represents its best estimate of inherent losses in the loan portfolio that were both probable and reasonably estimable.

**<u>Capital</u>**

The Company's total stockholder's equity to assets was 18.39% as of December 31, 2022. At December 31, 2022, the Company had the ability to borrow $31.5 million from the Federal Home Loan Bank of New York.

The Bank's capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of December 31, 2022, the Bank had a tier 1 leverage capital ratio of 16.49% and a total risk-based capital ratio of 13.49%.

**<u>Equity Incentive Plan</u>**

At a special shareholders meeting held on September 29, 2022, our shareholders approved the Company's 2022 Equity Incentive Plan whereby 1,369,771 shares of the Company's common stock have been reserved from authorized but unissued shares for purposes of grants of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, performance shares and performance units to selected employees and non-employee directors of the Company.

At September 30, 2022, 86,880 shares of restricted stock and 217,206 nonqualified stock options in the aggregate were granted to six non-employee directors of the Company as set forth in the 2022 Equity Incentive Plan. The aggregate value of the restricted stock and nonqualified stock options granted to the non-employee directors totaled $1.1 million and $843,000, respectively, at the date of the grant. The restricted stock and nonqualified stock options granted to the non-employee directors vest at a rate of 20% per year from the date of the grant.

At November 17, 2022, 265,157 shares of restricted stock and 662,891 nonqualified stock options in the aggregate were granted to 17 employees of the Company under the 2022 Equity Incentive Plan. The aggregate value of the restricted stock and nonqualified stock options granted to the employees totaled $3.7 million and $3.0 million, respectively, at the date of the grant. The restricted stock and nonqualified stock options granted to the employees vest at a rate of 20% per year from the date of the grant.

**<u>About NorthEast Community Bancorp</u>**

NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.

**<u>Forward Looking Statement</u>**

This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation and its impact on regional and national economic conditions), the effect of the COVID-19 pandemic (including its impact on NorthEast Community Bank's business operations and credit quality, on our customers and their ability to repay their loan obligations and on general economic and financial market 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 NorthEast Community Bank's market area, changes in the real estate market values in NorthEast Community Bank's market area and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the "SEC"), which are available through the SEC's website located at www.sec.gov. 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.

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| | |
|:---|:---|
| CONTACT: | Kenneth A. Martinek |
|  | Chairman and Chief Executive Officer |
| PHONE: | (914) 684-2500 |

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**NORTHEAST COMMUNITY BANCORP, INC.**

**CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION**

**(Unaudited)**

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
|  | **(In thousands, except share** | **(In thousands, except share** |
|  | **and per share amounts)** | **and per share amounts)** |
| **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and amounts due from depository institutions | $13210 | $8344 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits | 82098 | 143925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Cash and cash equivalents | 95308 | 152269 |
| &nbsp;&nbsp;&nbsp;Certificates of deposit | 100 | 100 |
| &nbsp;&nbsp;&nbsp;Equity securities | 18041 | 19943 |
| &nbsp;&nbsp;&nbsp;Securities available-for-sale, at fair value | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Securities held-to-maturity (fair value of $22,865 and $17,620, respectively) | 26395 | 17880 |
| &nbsp;&nbsp;&nbsp;Loans receivable | 1217321 | 972851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred loan costs, net | 372 | 484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for loan losses | (5475) | (5242) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans | 1212218 | 968093 |
| &nbsp;&nbsp;&nbsp;Premises and equipment, net | 26063 | 23907 |
| &nbsp;&nbsp;&nbsp;Investments in restricted stock, at cost | 1238 | 1569 |
| &nbsp;&nbsp;&nbsp;Bank owned life insurance | 25896 | 25291 |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 8597 | 4283 |
| &nbsp;&nbsp;&nbsp;Goodwill | 200 | 651 |
| &nbsp;&nbsp;&nbsp;Real estate owned | 1456 | 1996 |
| &nbsp;&nbsp;&nbsp;Property held for investment | 1444 | 1481 |
| &nbsp;&nbsp;&nbsp;Right of Use Assets – Operating | 2312 | 2564 |
| &nbsp;&nbsp;&nbsp;Right of Use Assets – Financing | 355 | 359 |
| &nbsp;&nbsp;&nbsp;Other assets | 5413 | 4683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $1425037 | $1225070 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-interest bearing | $376302 | $330853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest bearing | 745653 | 596311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 1121955 | 927164 |
| &nbsp;&nbsp;&nbsp;Advance payments by borrowers for taxes and insurance | 2369 | 1884 |
| &nbsp;&nbsp;&nbsp;Federal Home Loan Bank advances | 21000 | 28000 |
| &nbsp;&nbsp;&nbsp;Lease Liability – Operating | 2363 | 2604 |
| &nbsp;&nbsp;&nbsp;Lease Liability – Financing | 533 | 496 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 14754 | 13540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 1162974 | 973688 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding | $— | $— |
| &nbsp;&nbsp;&nbsp;Common stock, $0.01 par value; 75,000,000 shares authorized; 16,049,454 shares and 16,377,936 shares outstanding, respectively | 161 | 164 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 136434 | 145335 |
| &nbsp;&nbsp;&nbsp;Unearned Employee Stock Ownership Plan ("ESOP") shares | (7432) | (8301) |
| &nbsp;&nbsp;&nbsp;Retained earnings | 132670 | 114323 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive gain (loss) | 230 | (139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | 262063 | 251382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $1425037 | $1225070 |

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**NORTHEAST COMMUNITY BANCORP, INC.**

**CONSOLIDATED STATEMENTS OF INCOME**

**(Unaudited)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Quarter Ended December 31** | **Quarter Ended December 31** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** |
| **INTEREST INCOME:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans | $23748 | $12661 | $69992 | $47898 |
| &nbsp;&nbsp;&nbsp;Interest-earning deposits | 542 | 41 | 1260 | 115 |
| &nbsp;&nbsp;&nbsp;Securities | 216 | 114 | 750 | 391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Interest Income** | 24506 | 12816 | 72002 | 48404 |
| **INTEREST EXPENSE:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 3421 | 969 | 7544 | 4359 |
| &nbsp;&nbsp;&nbsp;Borrowings | 129 | 178 | 546 | 706 |
| &nbsp;&nbsp;&nbsp;Financing lease | 9 | 9 | 37 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Interest Expense** | 3559 | 1156 | 8127 | 5101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Interest Income** | 20947 | 11660 | 63875 | 43303 |
| **Provision for loan loss** | 439 |  | 439 | 3610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Interest Income after Provision for Loan Losses** | 20508 | 11660 | 63436 | 39693 |
| **NON-INTEREST INCOME:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other loan fees and service charges | 432 | 472 | 1994 | 1568 |
| &nbsp;&nbsp;&nbsp;Gain on disposition of equipment |  |  | 98 | 7 |
| &nbsp;&nbsp;&nbsp;Earnings on bank owned life insurance | 155 | 153 | 604 | 600 |
| &nbsp;&nbsp;&nbsp;Investment advisory fees | 110 | 133 | 474 | 514 |
| &nbsp;&nbsp;&nbsp;Realized and unrealized gain (loss) on equity securities | 62 | (174) | (1573) | (389) |
| &nbsp;&nbsp;&nbsp;Other | 20 | 17 | 86 | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Non-Interest Income** | 779 | 601 | 1683 | 2354 |
| **NON-INTEREST EXPENSES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and employee benefits | 4130 | 3773 | 15549 | 14996 |
| &nbsp;&nbsp;&nbsp;Occupancy expense | 665 | 581 | 2428 | 2115 |
| &nbsp;&nbsp;&nbsp;Equipment | 283 | 275 | 1107 | 993 |
| &nbsp;&nbsp;&nbsp;Outside data processing | 497 | 434 | 1886 | 1652 |
| &nbsp;&nbsp;&nbsp;Advertising | 115 | 55 | 299 | 139 |
| &nbsp;&nbsp;&nbsp;Impairment loss on goodwill | 451 |  | 451 |  |
| &nbsp;&nbsp;&nbsp;Real estate owned expense | 371 | 8 | 623 | 93 |
| &nbsp;&nbsp;&nbsp;Other | 2127 | 1630 | 8347 | 6485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Non-Interest Expenses** | 8639 | 6756 | 30690 | 26473 |
| **INCOME BEFORE PROVISION FOR INCOME TAXES** | 12648 | 5505 | 34429 | 15574 |
| **PROVISION FOR INCOME TAXES** | 4385 | 1297 | 9586 | 3669 |
| **NET INCOME** | $8263 | $4208 | $24843 | $11905 |

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**NORTHEAST COMMUNITY BANCORP, INC.**

**SELECTED CONSOLIDATED FINANCIAL DATA**

**(Unaudited)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Quarter Ended December 31** | **Quarter Ended December 31** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** | **(In thousands, except per share amounts)** |
| **Per share data:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Earnings per share - basic | $0.54 | $0.27 | $1.61 | $0.75 |
| &nbsp;&nbsp;&nbsp;Earnings per share - diluted | 0.54 | NA | 1.58 | NA |
| &nbsp;&nbsp;&nbsp;Weighted average shares outstanding - basic | 15187 | 15501 | 15433 | 15854 |
| &nbsp;&nbsp;&nbsp;Weighted average shares outstanding - diluted | 15330 | NA | 15726 | NA |
| **Performance ratios/data:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Return on average total assets | 2.47% | 1.46% | 1.95% | 1.13% |
| &nbsp;&nbsp;&nbsp;Return on average shareholders' equity | 12.50% | 6.71% | 9.60% | 6.03% |
| &nbsp;&nbsp;&nbsp;Net interest income | $20947 | $11660 | $63875 | $43303 |
| &nbsp;&nbsp;&nbsp;Net interest margin | 6.64% | 4.32% | 5.32% | 4.40% |
| &nbsp;&nbsp;&nbsp;Efficiency ratio | 39.76% | 55.10% | 46.81% | 57.98% |
| &nbsp;&nbsp;&nbsp;Net charge-off ratio | 0.15% | 0.00% | 0.02% | 0.40% |
| **Loan portfolio composition:** |  |  | **December 31, 2022** | **December 31, 2021** |
| &nbsp;&nbsp;&nbsp;One-to-four family |  |  | $5467 | $7189 |
| &nbsp;&nbsp;&nbsp;Multi-family |  |  | 117760 | 84425 |
| &nbsp;&nbsp;&nbsp;Mixed-use |  |  | 21902 | 28744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total residential real estate |  |  | 145129 | 120358 |
| &nbsp;&nbsp;&nbsp;Non-residential real estate |  |  | 30949 | 50016 |
| &nbsp;&nbsp;&nbsp;Construction |  |  | 930628 | 683830 |
| &nbsp;&nbsp;&nbsp;Commercial and industrial |  |  | 110069 | 118378 |
| &nbsp;&nbsp;&nbsp;Consumer |  |  | 546 | 269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross loans |  |  | 1217321 | 972851 |
| &nbsp;&nbsp;&nbsp;Deferred loan (fees) costs, net |  |  | 372 | 484 |
| &nbsp;&nbsp;&nbsp;Total loans |  |  | $1217693 | $973335 |
| **Asset quality data:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans past due over 90 days and still accruing |  |  | $- | $- |
| &nbsp;&nbsp;&nbsp;Non-accrual loans |  |  |  |  |
| &nbsp;&nbsp;&nbsp;OREO property |  |  | 1456 | 1996 |
| Total non-performing assets |  |  | $1456 | $1996 |
| Allowance for loan losses to total loans |  |  | 0.45% | 0.54% |
| Allowance for loan losses to non-performing loans |  |  | NA | NA |
| Non-performing loans to total loans |  |  | 0.00% | 0.00% |
| Non-performing assets to total assets |  |  | 0.10% | 0.16% |
| **Bank's Regulatory Capital ratios:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total capital to risk-weighted assets |  |  | 13.49% | 15.28% |
| &nbsp;&nbsp;&nbsp;Common equity tier 1 capital to risk-weighted assets |  |  | 13.16% | 14.87% |
| &nbsp;&nbsp;&nbsp;Tier 1 capital to risk-weighted assets |  |  | 13.16% | 14.87% |
| &nbsp;&nbsp;&nbsp;Tier 1 leverage ratio |  |  | 16.49% | 16.79% |

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**NORTHEAST COMMUNITY BANCORP, INC.**

**NET INTEREST MARGIN ANALYSIS**

**(Unaudited)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarter Ended December 31, 2022** | **Quarter Ended December 31, 2022** | **Quarter Ended December 31, 2022** | **Quarter Ended December 31, 2021** | **Quarter Ended December 31, 2021** | **Quarter Ended December 31, 2021** |
|  | **Average**<br>**Balance** | **Interest**<br>**and dividend** | **Average**<br>**Yield** | **Average**<br>**Balance** | **Interest**<br>**and dividend** | **Average**<br>**Yield** |
|  | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** |
| Loan receivable Gross | $1160736 | $23748 | 8.18% | $933783 | $12661 | 5.42% |
| Securities | 44825 | 196 | 1.75% | 28866 | 97 | 1.34% |
| Federal Home Loan Bank stock | 1238 | 20 | 6.46% | 1569 | 17 | 4.33% |
| Other interest-earning assets | 54339 | 542 | 3.99% | 114356 | 41 | 0.14% |
| &nbsp;&nbsp;&nbsp;**Total interest-earning assets** | 1261138 | 24506 | 7.77% | 1078574 | 12816 | 4.75% |
| Allowance for loan losses | (5462) |  |  | (5242) |  |  |
| Non-interest-earning assets | 83687 |  |  | 77027 |  |  |
| &nbsp;&nbsp;&nbsp;**Total assets** | $1339363 |  |  | $1150359 |  |  |
| Interest-bearing demand deposit | $95448 | $317 | 1.33% | $119598 | $193 | 0.65% |
| Savings and club accounts | 262994 | 1347 | 2.05% | 133938 | 153 | 0.46% |
| Certificates of deposit | 327551 | 1757 | 2.15% | 301062 | 623 | 0.83% |
| &nbsp;&nbsp;&nbsp;**Total interest-bearing deposits** | 685993 | 3421 | 1.99% | 554598 | 969 | 0.70% |
| Borrowed money | 21000 | 138 | 2.63% | 28000 | 187 | 2.67% |
| &nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 706993 | 3559 | 2.01% | 582598 | 1156 | 0.79% |
| **Non-interest-bearing demand deposit** | 349991 |  |  | 299911 |  |  |
| **Other non-interest-bearing liabilities** | 18034 |  |  | 17036 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities | 1075018 |  |  | 899545 |  |  |
| **Equity** | 264345 |  |  | 250814 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities and equity | $1339363 |  |  | $1150359 |  |  |
| &nbsp;&nbsp;&nbsp;Net interest income / interest spread |  | $20947 | 5.76% |  | $11660 | 3.96% |
| &nbsp;&nbsp;&nbsp;Net interest rate margin |  |  | 6.64% |  |  | 4.32% |
| &nbsp;&nbsp;&nbsp;Net interest earning assets | $554145 |  |  | $495976 |  |  |
| &nbsp;&nbsp;&nbsp;Average interest-earning assets to interest-bearing liabilities | 178.38% |  |  | 185.13% |  |  |

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**NORTHEAST COMMUNITY BANCORP, INC.**

**NET INTEREST MARGIN ANALYSIS**

**(Unaudited)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
|  | **Average**<br>**Balance** | **Interest**<br>**and dividend** | **Average**<br>**Yield** | **Average**<br>**Balance** | **Interest**<br>**and dividend** | **Average**<br>**Yield** |
|  | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** | **(In thousands, except yield/cost information)** |
| Loan receivable Gross | $1054577 | $69992 | 6.64% | $866518 | $47898 | 5.53% |
| Securities | 42771 | 681 | 1.59% | 23026 | 320 | 1.39% |
| Federal Home Loan Bank stock | 1299 | 69 | 5.31% | 1576 | 71 | 4.51% |
| Other interest-earning assets | 101999 | 1260 | 1.24% | 91999 | 115 | 0.13% |
| &nbsp;&nbsp;&nbsp;**Total interest-earning assets** | 1200646 | 72002 | 6.00% | 983119 | 48404 | 4.92% |
| Allowance for loan losses | (5387) |  |  | (5154) |  |  |
| Non-interest-earning assets | 79835 |  |  | 72855 |  |  |
| &nbsp;&nbsp;&nbsp;**Total assets** | $1275094 |  |  | $1050820 |  |  |
| Interest-bearing demand deposit | $108077 | $918 | 0.85% | $114940 | $696 | 0.61% |
| Savings and club accounts | 228811 | 2688 | 1.17% | 108877 | 328 | 0.30% |
| Certificates of deposit | 285991 | 3938 | 1.38% | 316690 | 3335 | 1.05% |
| &nbsp;&nbsp;&nbsp;**Total interest-bearing deposits** | 622879 | 7544 | 1.21% | 540507 | 4359 | 0.81% |
| Borrowed money | 22247 | 583 | 2.62% | 28000 | 742 | 2.65% |
| &nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 645126 | 8127 | 1.26% | 568507 | 5101 | 0.90% |
| **Non-interest-bearing demand deposit** | 355118 |  |  | 260529 |  |  |
| **Other non-interest-bearing liabilities** | 16137 |  |  | 24310 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities | 1016381 |  |  | 853346 |  |  |
| **Equity** | 258713 |  |  | 197474 |  |  |
| &nbsp;&nbsp;&nbsp;Total liabilities and equity | $1275094 |  |  | $1050820 |  |  |
| &nbsp;&nbsp;&nbsp;Net interest income / interest spread |  | $63875 | 4.74% |  | $43303 | 4.02% |
| &nbsp;&nbsp;&nbsp;Net interest rate margin |  |  | 5.32% |  |  | 4.40% |
| &nbsp;&nbsp;&nbsp;Net interest earning assets | $555520 |  |  | $414612 |  |  |
| &nbsp;&nbsp;&nbsp;Average interest-earning assets to interest-bearing liabilities | 186.11% |  |  | 172.93% |  |  |

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