Northeast Community Bancorp (NECB) AI Stock Analysis

• Market Cap: $331.04M
• Dividend Yield: 4.11%
• Average Volume (3M): 46.36K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.80
• 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: 46,050
• 30 Day Avg. Volume: 46,357
• PEG Ratio: 0.87
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 6.67
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 4.27
• Enterprise Value/Ebitda: 6.88
• 1Y Price Target: $25.50
• Price Target Upside: 8.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.39
• Revenue Forecast (FY): $112.91M

• Rating: 71 Outperform
• Price Target: $26.00 ▲(10.17% Upside)

Northeast Community Bancorp's strong financial performance and attractive valuation are key strengths, despite technical indicators suggesting a bearish trend. The stock's low P/E ratio and high dividend yield make it appealing for value investors, while recent revenue and cash flow challenges warrant caution.

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

Northeast Community Bancorp generates revenue through several key streams. The primary source of income comes from interest earned on loans, which include commercial, residential, and consumer loans. The bank charges interest on these loans, creating a significant portion of its earnings. Additionally, NECB earns income from fees associated with various banking services, such as account maintenance fees, transaction fees, and service charges. The bank may also earn revenue from investment securities and other financial products. Partnerships with local businesses for mutual referrals and community engagement initiatives further enhance its customer base and revenue potential. Economic conditions, interest rates, and regulatory factors also play crucial roles in influencing its profitability.

Northeast Community Bancorp Financial Statement Overview

Summary

Northeast Community Bancorp demonstrates strong profitability with a consistent net profit margin above 27% and a solid balance sheet with a manageable debt-to-equity ratio. However, recent declines in revenue growth and free cash flow growth rate indicate potential challenges.

Income Statement

Northeast Community Bancorp has demonstrated strong profitability with a consistent net profit margin above 27% over the years. However, the recent TTM data shows a slight decline in revenue growth rate, indicating potential challenges in revenue generation. Despite this, the company maintains healthy EBIT and EBITDA margins, reflecting efficient operations.

Balance Sheet

The company exhibits a solid balance sheet with a manageable debt-to-equity ratio, particularly in the latest TTM period. Return on equity remains robust, showcasing effective utilization of shareholder funds. The equity ratio indicates a strong capital position, providing stability in the regional banking sector.

Cash Flow

Cash flow analysis reveals a mixed picture. While the free cash flow to net income ratio is nearly 1, indicating good cash conversion, the recent decline in free cash flow growth rate suggests potential cash flow management challenges. The operating cash flow to net income ratio is low, highlighting room for improvement in operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	157.02M	159.84M	133.70M	73.59M	50.75M	51.55M
Gross Profit	100.34M	101.88M	97.44M	65.02M	42.04M	40.76M
EBITDA	62.34M	66.96M	65.96M	35.67M	16.69M	16.68M
Net Income	43.82M	47.07M	46.28M	24.84M	11.90M	12.33M
Balance Sheet
Total Assets	2.06B	2.01B	1.76B	1.42B	1.23B	968.22M
Cash, Cash Equivalents and Short-Term Investments	64.44M	78.36M	68.77M	95.41M	152.37M	69.29M
Total Debt	174.97M	4.72M	69.20M	23.90M	31.10M	31.57M
Total Liabilities	1.71B	1.69B	1.48B	1.16B	973.69M	814.40M
Stockholders Equity	344.04M	318.34M	279.32M	261.99M	251.38M	153.82M
Cash Flow
Free Cash Flow	49.14M	48.17M	42.21M	24.23M	15.11M	14.40M
Operating Cash Flow	50.85M	48.69M	42.84M	27.54M	21.56M	15.66M
Investing Cash Flow	-122.24M	-233.99M	-357.84M	-256.59M	-178.86M	-72.12M
Financing Cash Flow	37.94M	194.89M	288.37M	172.09M	240.38M	-2.03M

Northeast Community Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.60
• 50DMA: Positive
• 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 Positive. The current price of 23.6 is above the 20-day moving average (MA) of 23.03, above the 50-day MA of 22.39, and above the 200-day MA of 21.59, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 59.44 is Neutral, neither overbought nor oversold. The STOCH value of 46.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NECB.

Northeast Community Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNLC	77 Outperform	$306.85M	8.91	11.86%	5.24%	10.46%	18.70%
PCB	72 Outperform	$320.01M	8.70	9.38%	3.57%	10.93%	42.68%
NECB	71 Outperform	$331.04M	7.26	13.26%	4.11%	-0.72%	-7.24%
CZFS	71 Outperform	$304.00M	8.30	10.88%	3.38%	2.16%	24.43%
JMSB	70 Outperform	$292.58M	13.85	7.97%	1.48%	2.59%	18.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WSBF	63 Neutral	$337.58M	12.36	6.95%	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.

Northeast Community Bancorp Launches Third Stock Repurchase Program

On December 8, 2025, NorthEast Community Bancorp announced the authorization of a third stock repurchase program to acquire up to 1,400,435 shares, representing 10% of its common stock. This follows the second repurchase program announced on May 30, 2023, under which the company repurchased 1,091,174 shares at an average cost of $15.78 per share. The new program allows for stock repurchases through open market or privately negotiated transactions and may be adjusted based on various factors, including market conditions and regulatory requirements.

The most recent analyst rating on (NECB) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Northeast Community Bancorp stock, see the NECB Stock Forecast page.