Executive Summary

Solid quarter with EPS of $0.87 diluted and total revenue of $26.95M, modestly above S&P Global consensus EPS $0.84* and revenue $26.80M*, as net interest margin (NIM) stabilized sequentially to 5.38% and asset quality remained pristine (zero non‑performing loans) .
YoY comparisons remain pressured by lower asset yields following Fed cuts (NIM 5.38% vs 5.68% YoY), driving slight YoY declines in net interest income and EPS, partly offset by lower funding costs and strong fee traction .
Funding mix improvement continued (brokered CDs down; money market up) and management diversified funding via $170M in borrowings; total deposits fell 9% YTD, but mix optimization and liquidity access remained robust .
Loan demand remains strong with unfunded commitments >$645M and continued growth in NYC cooperative and Eastern Massachusetts multi‑family lending; construction balances declined on paydowns as projects completed .

What Went Well and What Went Wrong

What Went Well
- Asset quality exceptional: zero NPLs; non‑performing assets/total assets fell to 0.03% following sale of a Bronx OREO at no loss; ACL/loans steady at 0.25% .
- NIM stabilization QoQ: 5.38% vs 5.35% in Q2 despite rate headwinds; efficiency ratio improved QoQ to 38.40% from 40.52% .
- Management pipeline strength: “Loan demand remains strong with outstanding unfunded commitments exceeding $645 million at September 30, 2025” and momentum in NYC co‑op/multi‑family lending .
What Went Wrong
- NIM and yields still lower YoY due to Fed cuts (asset yield down 74 bps YoY in Q3), dragging YoY net interest income and EPS despite volume growth .
- Non‑interest income down YoY (-24.8%) on lower unrealized gains on equity securities; partially offset by higher fees .
- Deposit balances down 9.3% YTD; offset by mix shift (money market up) and higher borrowings to diversify funding .

Financial Results

Quarterly results (GAAP; $ in millions, except per‑share and %). Total revenue calculated as Net Interest Income + Total Non‑Interest Income.

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenue ($)	$25.50 (NII $24.26 + Non‑interest $1.24)	$25.93 (NII $25.07 + Non‑interest $0.86)	$26.95 (NII $25.94 + Non‑interest $1.01)
Net Interest Income ($)	$24.26	$25.07	$25.94
Non‑Interest Income ($)	$1.24	$0.86	$1.01
Net Income ($)	$10.57	$11.17	$11.87
Diluted EPS ($)	$0.78	$0.82	$0.87
Net Interest Margin (%)	5.11%	5.35%	5.38%
Efficiency Ratio (%)	41.64%	40.52%	38.40%
ROA (%)	2.12%	2.27%	2.35%
ROE (%)	12.98%	13.37%	13.84%

Q3 2025 actual vs S&P Global consensus

Metric	Consensus	Actual	Beat/(Miss)
Diluted EPS ($)	0.84*	0.87	+0.03*
Total Revenue ($M)	26.80*	26.95	+0.15*

Values retrieved from S&P Global*

KPIs and balance sheet (period‑end unless noted)

KPI	Q1 2025	Q2 2025	Q3 2025
Total Deposits ($B)	$1.586	$1.479	$1.515
Borrowings ($M)	$0	$135	$170
Non‑performing Assets / Total Assets (%)	0.26%	0.04%	0.03%
ACL / Total Loans (%)	0.30%	0.26%	0.25%
Unfunded Commitments ($M)	—	>$636	>$645
Construction Loans ($M)	$1,287.2	$1,323.5	$1,385.7
Multi‑family Loans ($M)	$253.0	$292.6	$298.4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial guidance (revenue, margins, OpEx, tax)	FY/Q4 2025	None provided	None provided	—
Dividend per share	Q2 2025	Declared $0.20/share payable Aug 6, 2025	No new dividend declaration in Q3 earnings PR	Maintained (no update)

Earnings Call Themes & Trends

Note: A Q3 2025 transcript was not available in our document index as of this analysis; themes below reflect management’s published commentary across recent quarters.

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
Loan demand & pipeline	“Loan demand is strong with originations and outstanding commitments robust and increasing.” (Q1) “Unfunded commitments >$636M” (Q2)	“Outstanding unfunded commitments exceeding $645M” (Q3)	Strong and growing
Focus areas: construction, NYC co‑ops, MA multi‑family	Emphasis on construction in high demand/absorption areas (Q1)	Emphasis continued; NYC cooperative program growing; MA multi‑family growth (Q3)	Consistent expansion
Funding mix & costs	Retail high‑yield money market growth; brokered CDs reduced; borrowings introduced by Q2 ($135M)	Continued brokered CD reduction; money market up; borrowings $170M; strategy to diversify funding and reduce cost of funds	Ongoing optimization
Rate environment & NIM	NIM pressured by lower asset yields post 2024 cuts (Q1)	NIM 5.38%; YoY down 30 bps; asset yields lower after Fed cuts incl. Sept 2025	Stabilizing QoQ, down YoY
Asset quality	Two OREOs at Q1; sold Bronx OREO at no loss by Q2; NPA ratio 0.04% (Q2)	NPLs = 0; NPAs/Assets 0.03%; ACL/loans 0.25% (Q3)	Improving

Management Commentary

“We are once again pleased to be able to report continued strong performance throughout our entire loan portfolio... Loan demand remains strong with outstanding unfunded commitments exceeding $645 million at September 30, 2025.” — Kenneth A. Martinek, Chairman & CEO .
“Our New York City cooperative corporation lending program continues to grow, as does our multi-family lending throughout Eastern Massachusetts.” .
Recognition: Ranked #1 nationwide for banks < $5B assets and #2 among top 25 banks by Bank Director Ranking Banks 2025; prior recognitions from Piper Sandler and Raymond James cited .

Q&A Highlights

Q3 2025 earnings call transcript was not available via our document sources; MarketBeat lists the event but does not provide a full transcript for citation at this time .
No additional call-specific Q&A details or guidance clarifications could be verified.

Estimates Context

S&P Global consensus for Q3 2025: EPS $0.84*, revenue $26.80M*. Actual: EPS $0.87, revenue $26.95M — modest beats on both; small sequential improvement in NIM and efficiency ratio support the outperformance versus expectations .
Prior quarters also modestly exceeded consensus EPS (Q2: $0.82 vs $0.79*; Q1: $0.76 vs $0.77* slight miss) indicating generally steady delivery through 2025 YTD*.
Values retrieved from S&P Global*

Key Takeaways for Investors

Credit quality remains a differentiator: zero NPLs, NPAs/Assets 0.03%, and modest ACL given portfolio mix — supports lower credit cost run‑rate and ROA >2% .
Net interest margin appears to have found a floor, improving modestly QoQ to 5.38% despite lower asset yields; continued deposit mix optimization and diversified borrowings are key levers into Q4 .
Funding strategy is working: brokered CDs down sharply YTD; money market balances up; borrowings now provide incremental flexibility — expect focus on cost of funds to continue in 2026 planning .
Pipeline remains strong with >$645M unfunded commitments and ongoing growth in NYC co‑ops and MA multi‑family; construction balances ebb/flow with completions and refinancing, but origination engine is active .
Operating efficiency improved (38.4% efficiency ratio), suggesting room for positive operating leverage if NIM stabilizes and fee traction continues .
Watch items: sustained pressure on asset yields if rate cuts persist; deposit competition; and continued execution on funding mix to protect NIM .
Near‑term: modest estimate revisions upward for EPS/revenue are plausible given Q3 beats*; medium‑term: thesis centers on above‑peer profitability, pristine credit, and disciplined funding strategy.

NorthEast Community Bancorp, Inc./MD/ (NECB)·Q3 2025 Earnings Summary