NorthEast Community Bancorp in White Plains, N.Y., plans to write off the only nonperforming loan on its books.
The $1.1 billion-asset company said in a press release Tuesday that the nonresidential real estate loan had a $3.6 million balance on June 30. It is secured by commercial real estate in Greenwich, Conn., and guaranteed by its two borrowers.
As a result of the writedown, the company said it expects to record a third-quarter loan-loss provision for at least $3.5 million. The loan-loss allowance should have at least $5.1 million following the writedown and the provision.