Northeast Community Bancorp (NECB) AI Stock Analysis

• Market Cap: $323.44M
• Dividend Yield: 4.11%
• Average Volume (3M): 51.78K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.85
• Revenue Growth: -0.72%
• EPS Growth: -7.24%
• Country: US
• Employees: 136
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.79
• Shares Outstanding: 14,027,240
• 10 Day Avg. Volume: 47,565
• 30 Day Avg. Volume: 51,780
• PEG Ratio: -1.05
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 5.90
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 3.69
• Enterprise Value/Ebitda: 6.03
• 1Y Price Target: $25.50
• Price Target Upside: 9.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.39
• Revenue Forecast (FY): $112.91M

• Rating: 71 Outperform
• Price Target: $25.00 ▲(6.93% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven primarily by strong financial performance (profitability and cash conversion) and attractive valuation (low P/E and solid dividend yield). These positives are tempered by weak near-term technical momentum and some variability in revenue growth, leverage, and cash flow trends.

Positive Factors

High Profitability

A sustained net profit margin north of 27% signals durable operational efficiency and pricing power in core lending and fee businesses. That margin buffer supports dividend and buyback programs, helps absorb credit losses, and underpins earnings stability across economic cycles.

Strong Capital and Balance Sheet

A solid balance sheet and manageable debt-to-equity alongside a strong equity ratio indicate capital adequacy and regulatory resilience. This supports steady lending capacity, cushions stress scenarios, and preserves strategic optionality for growth or M&A over the medium term.

Capital Return Discipline

A third stock repurchase program up to 10% reflects management confidence and disciplined capital allocation. Buybacks can sustainably enhance shareholder returns and ROE when excess capital exists, and they signal a repeatable policy to return capital after regulatory and capital needs are met.

Negative Factors

Sharp Revenue Contraction

A steep recent revenue decline materially reduces scale and operating leverage, pressuring margins and the bank’s ability to fund growth initiatives. If persistent, this contraction can erode core lending capacity, compress profitability, and force strategic trade-offs over the coming quarters.

Weak Cash Generation Trends

Declining free cash flow growth and a low operating cash flow to net income ratio limit internal funding for loans, dividends, and buybacks. Persistent cash conversion weakness raises reliance on external funding, constrains capital deployment, and increases vulnerability in stressed funding environments.

Revenue Concentration in Interest Income

Heavy dependence on interest income concentrates exposure to loan demand, credit cycles, and interest-rate dynamics. That structural reliance can amplify margin volatility and credit-risk impact versus more diversified peers, requiring active asset/liability and credit risk management to preserve long-term earnings.

Northeast Community Bancorp Business Overview & Revenue Model

Company Description

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers investment advisory and financial planning services; and life insurance products and fixed-rate annuities. It operates seven full-service branches in New York and three full-service branches in Massachusetts; and loan production offices in White Plains and New City, New York, as well as Danvers, Massachusetts. The company was founded in 1934 and is based in White Plains, New York.

How the Company Makes Money

NECB primarily makes money through net interest income and, to a lesser extent, non-interest income. Net interest income is generated by earning interest and fees on loans and other interest-earning assets and paying interest on deposits and other funding sources; the spread between these yields and costs (and the volume of earning assets) is the main driver of earnings. Key revenue streams therefore include interest income from its loan portfolio (commercial and other lending) and interest income from securities or other interest-earning balances, offset by interest expense paid to depositors and on borrowings. NECB also generates non-interest income from banking-related fees and service charges (e.g., account-related fees and other service fees); if specific categories or major partnerships materially contributing to revenue are not publicly detailed in the provided context, they are null.

Northeast Community Bancorp Financial Statement Overview

Summary

Strong profitability (high net and operating margins) and generally good cash conversion support earnings quality. Offsetting this are a modest 2025 revenue dip versus 2024, leverage/funding mix volatility, and lumpy year-to-year cash flow growth.

Income Statement

NECB shows strong profitability with consistently high net margins (~23%–35%) and robust operating margins, indicating solid underlying earnings power. Revenue expanded materially from 2021 through 2024 (including an outsized jump in 2023), but 2025 revenue dipped modestly versus 2024, suggesting growth is becoming less consistent. Overall, margins remain a clear strength, while the main watch item is the recent slowdown/variability in top-line momentum.

Balance Sheet

The balance sheet appears well-capitalized with equity building over time and generally modest leverage (debt-to-equity mostly low-to-moderate). Returns on equity improved meaningfully from 2021 and remain healthy in recent years, though they have eased from the 2023–2024 highs into 2025. A key weakness is leverage volatility—total debt and debt-to-equity swung sharply year-to-year (notably very low in 2024 and higher again in 2025), which adds some uncertainty around funding mix and risk posture.

Cash Flow

Cash generation is solid, with free cash flow generally tracking net income closely (near 1.0 in most years), supporting earnings quality. Operating cash flow and free cash flow rose over the period, but the growth rate is lumpy (including an unusually large spike in 2025), which reduces predictability. Overall, cash flow is supportive of profitability, but the variability in year-to-year cash flow growth is the main drawback.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	157.37M	159.84M	133.70M	73.59M	50.75M
Gross Profit	104.08M	101.88M	97.44M	65.02M	42.04M
EBITDA	62.26M	66.96M	65.96M	35.67M	16.69M
Net Income	44.41M	47.07M	46.28M	24.84M	11.90M
Balance Sheet
Total Assets	2.06B	2.01B	1.76B	1.42B	1.23B
Cash, Cash Equivalents and Short-Term Investments	10.46M	78.36M	68.77M	95.41M	152.37M
Total Debt	80.03M	4.72M	69.20M	23.90M	31.10M
Total Liabilities	1.71B	1.69B	1.48B	1.16B	973.69M
Stockholders Equity	351.70M	318.34M	279.32M	261.99M	251.38M
Cash Flow
Free Cash Flow	50.84M	48.17M	42.21M	24.23M	15.11M
Operating Cash Flow	52.59M	48.69M	42.84M	27.54M	21.56M
Investing Cash Flow	-52.03M	-233.99M	-357.84M	-256.59M	-178.86M
Financing Cash Flow	2.36M	194.89M	288.37M	172.09M	240.38M

Northeast Community Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NECB, the sentiment is Negative. The current price of 23.38 is below the 20-day moving average (MA) of 23.67, below the 50-day MA of 23.62, and above the 200-day MA of 21.87, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 36.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NECB.

Northeast Community Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NECB	71 Outperform	$323.44M	6.75	13.07%	4.11%	-0.72%	-7.24%
CZFS	71 Outperform	$284.78M	7.48	11.36%	3.38%	2.16%	24.43%
PCB	70 Outperform	$311.74M	8.21	9.62%	3.57%	10.93%	42.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FNLC	67 Neutral	$311.62M	8.51	12.70%	5.24%	10.46%	18.70%
JMSB	66 Neutral	$283.70M	11.95	7.97%	1.48%	2.59%	18.83%
WSBF	62 Neutral	$324.05M	11.18	7.67%	3.59%	-0.09%	83.67%

Northeast Community Bancorp Corporate Events

Northeast Community Bancorp Announces Routine Board Transition

On January 20, 2026, NorthEast Community Bancorp, Inc. and NorthEast Community Bank announced that director Linda M. Swan retired from the boards of both the company and the bank, with the departure explicitly stated as not being due to any disagreement over operations, policies, or practices. On January 22, 2026, the boards appointed Lynette Bennett as a director of both entities to fill the vacancy created by Swan’s retirement, with the company noting she was not immediately assigned to any board committee, had no special arrangements leading to her selection, and had no related-party transactions requiring disclosure, underscoring a routine governance transition with limited anticipated disruption for stakeholders.

The most recent analyst rating on (NECB) stock is a Hold with a $24.50 price target. To see the full list of analyst forecasts on Northeast Community Bancorp stock, see the NECB Stock Forecast page.