NECB charges off $1.0M loan after borrower fraud; reduces Q4 net income by $717K

NorthEast Community Bancorp, Inc./MD/

Borrower pleaded guilty to federal loan fraud; bail revoked on additional charges, now incarcerated.
$1.0M C&I loan fully charged off as of Dec 31, 2024; loan was performing at year-end.
Charge-off reduces Q4 net income by $717K ($0.04 EPS) via $1.0M provision increase and $283K tax benefit.
Total loans decreased by $1.0M; stockholders' equity down $717K; updated financials in Exhibit 99.1.
Management discussed with auditor S.R. Snodgrass and Board; company pursuing remedies.

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