NorthEast Community Bancorp, Inc./MD/ Segments Disclosure
Note 26 – Business Segments
Accounting policies for segments are the same as those described in Note 1. The Company has one reportable segment. Substantially most of the Company’s operations occur through the bank and involve the delivery of loan and deposit products to customers.
The Company’s chief operating decision maker is the Executive Committee that includes the Chief Executive Officer, Chief Operating Officer and Chief Financial Officer. The Executive Committee assesses performance of the Company on a consolidated basis and decides how to allocate resources based on net income that is also reported as net income on the Consolidated Statement of Income.
The Executive Committee uses net income, which is the measure of segment profit and loss, to evaluate income generated from segment assets (return on assets) and other measures, such as net interest margin, return on average assets, and return on common equity, in deciding how to reinvest profits, such as originating loans, investing in investment securities, or to repurchase shares in the Company’s common stock.
Net income is used to monitor budget versus actual results. The Executive Committee also uses net income and other measures in comparing to the Company’s peer banks. The comparison of the Company’s net income and other measures to its peer banks, along with the comparison of budgeted versus actual results are used in assessing the Company’s performance and in establishing management compensation. Loans, investments, and deposits provide the revenues in the banking operation. Interest expense and payroll provide the significant expenses in the banking operation. All operations are domestic.
Note 26 – Business Segments (continued)
The following table presents the Company’s reported segment revenues, profit or loss and significant segment expenses for the years ended December 31, 2025 and 2024:
Years Ended December 31, | ||||||
2025 | | 2024 | ||||
(In Thousand) | ||||||
Total interest income | $ | 154,118 | $ | 160,013 | ||
Total interest expense |
| 53,383 |
| 57,221 | ||
Net interest income |
| 100,735 |
| 102,792 | ||
Provision for (reversal of) credit losses | (99) | 740 | ||||
Net interest income after provision for credit losses | 100,834 | 102,052 | ||||
Total non-interest income | 4,093 | 2,783 | ||||
Non-interest expense: | ||||||
Salaries and employee benefits | 23,184 | 20,942 | ||||
Occupancy expense | 2,992 | 2,828 | ||||
Equipment | 868 | 890 | ||||
Outside data processing | 3,078 | 2,604 | ||||
Advertising | 426 | 418 | ||||
Real estate owned expense | 845 | 731 | ||||
Other | 11,275 | 10,649 | ||||
Total Non-Interest Expenses | 42,668 | 39,062 | ||||
Income before income tax expense | 62,259 | 65,773 | ||||
Income tax expense |
| 17,846 |
| 18,699 | ||
Segment net income | $ | 44,413 | $ | 47,074 | ||
Reconciliation of profit or loss | ||||||
Adjustments and reconciling items |
| — |
| — | ||
Consolidated net income | $ | 44,413 | $ | 47,074 | ||
Earnings per common share - Basis | $ | 3.35 | $ | 3.58 | ||
Earnings per common share - Diluted | 3.25 | 3.52 | ||||
The measure of segment assets is reported as total assets on the Consolidated Statement of Condition.
The following table presents the Company’s reported segment assets as of December 31, 2025 and 2024:
December 31, | ||||||
2025 | | 2024 | ||||
(In Thousand) | ||||||
Segment assets | |
| | |||
Adjustments and reconciling items | $ | — | $ | — | ||
Consolidated total assets |
| 2,063,508 |
| 2,009,581 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.