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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 62.8GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
13.2%
Sector: 8.5%
Dividend Analysis audit
INCOME
5.16%
Trailing Yield
$5.16
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
37%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, NorthEast Community Bancorp, Inc./MD/ (NECB) receives a "Hold" rating with a composite score of 55.9/100, ranked #472 out of 4446 stocks. Key factor scores: Quality 63/100, Value 78/100, Momentum 48/100. This is quantitative analysis only — not investment advice.
NorthEast Community Bancorp, Inc./MD/ (NECB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does NorthEast Community Bancorp, Inc./MD/ Do?
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. NorthEast Community Bancorp, Inc./MD/ (NECB) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Kenneth A. Martinek and employs approximately 130 people, headquartered in WHITE PLAINS, New York. With a market capitalization of $324M, NECB is one of the notable companies in the Financials sector.
NorthEast Community Bancorp, Inc./MD/ (NECB) Stock Rating — Hold (April 2026)
As of April 2026, NorthEast Community Bancorp, Inc./MD/ receives a Hold rating with a composite score of 55.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NECB ranks #472 out of 4,446 stocks in our coverage universe. Within the Financials sector, NorthEast Community Bancorp, Inc./MD/ ranks #135 of 900 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NECB Stock Price and 52-Week Range
NorthEast Community Bancorp, Inc./MD/ (NECB) currently trades at $24.36. The 52-week high for NECB is $25.18, which means the stock is currently trading -3.3% from its annual peak. The 52-week low is $19.27, putting the stock 26.4% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is NECB Overvalued or Undervalued? — Valuation Analysis
NorthEast Community Bancorp, Inc./MD/ (NECB) carries a value factor score of 78/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 7.24x, compared to the Financials sector average of 14.78x — a discount of 51%. The price-to-book ratio stands at 0.95x, versus the sector average of 1.19x. The price-to-sales ratio is 2.14x, compared to 0.89x for the average Financials stock. On an enterprise value basis, NECB trades at 6.30x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, NorthEast Community Bancorp, Inc./MD/ appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
NorthEast Community Bancorp, Inc./MD/ Profitability — ROE, Margins, and Quality Score
NorthEast Community Bancorp, Inc./MD/ (NECB) earns a quality factor score of 63/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 13.2%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 2.2% versus the sector average of 1.3%.
On a margin basis, NorthEast Community Bancorp, Inc./MD/ reports gross margins of 0.0%. The operating margin is 41.0% (sector: 21.8%). Net profit margin stands at 29.5%, versus 17.8% for the average Financials stock. Revenue growth is running at -2.4% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
NECB Debt, Balance Sheet, and Financial Health
NorthEast Community Bancorp, Inc./MD/ has a debt-to-equity ratio of 20.0%, compared to the Financials sector average of 118.5%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.21x, suggesting adequate working capital coverage. Total debt on the balance sheet is $70M. Cash and equivalents stand at $11M.
NECB has a beta of 0.73, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for NorthEast Community Bancorp, Inc./MD/ is 78/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
NorthEast Community Bancorp, Inc./MD/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, NorthEast Community Bancorp, Inc./MD/ reported revenue of $157M and earnings per share (EPS) of $3.35. Net income for the quarter was $46M. Gross margin was 0.0%. Operating income came in at $64M.
In FY 2025, NorthEast Community Bancorp, Inc./MD/ reported revenue of $154M and earnings per share (EPS) of $3.35. Net income for the quarter was $44M. Revenue grew -3.7% year-over-year compared to FY 2024. Operating income came in at $62M.
In Q3 2025, NorthEast Community Bancorp, Inc./MD/ reported revenue of $39M and earnings per share (EPS) of $0.90. Net income for the quarter was $12M. Revenue grew -4.6% year-over-year compared to Q3 2024. Operating income came in at $17M.
In Q2 2025, NorthEast Community Bancorp, Inc./MD/ reported revenue of $38M and earnings per share (EPS) of $0.85. Net income for the quarter was $11M. Revenue grew -5.5% year-over-year compared to Q2 2024. Operating income came in at $15M.
Over the past 8 quarters, NorthEast Community Bancorp, Inc./MD/ has demonstrated a growth trajectory, with revenue expanding from $40M to $157M. Investors analyzing NECB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NECB Dividend Yield and Income Analysis
NorthEast Community Bancorp, Inc./MD/ (NECB) currently pays a dividend yield of 5.2%. At this yield, a $10,000 investment in NECB stock would generate approximately $$516.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.4%, meaning NECB offers above-average income for its sector. With a net margin of 29.5%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
NECB Momentum and Technical Analysis Profile
NorthEast Community Bancorp, Inc./MD/ (NECB) has a momentum factor score of 48/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 22/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NECB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing NECB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NECB vs S&P 500 (SPY) comparison to assess how NorthEast Community Bancorp, Inc./MD/ stacks up against the broader market across all factor dimensions.
NECB Next Earnings Date
No upcoming earnings date has been announced for NorthEast Community Bancorp, Inc./MD/ (NECB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NECB? — Investment Thesis Summary
NorthEast Community Bancorp, Inc./MD/ presents a balanced picture with arguments on both sides. The quality score of 63/100 indicates above-average profitability and business fundamentals. The value score of 78/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 78/100) reduces downside risk.
In summary, NorthEast Community Bancorp, Inc./MD/ (NECB) earns a Hold rating with a composite score of 55.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NECB stock.
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Institutional Research Dossier
NorthEast Community Bancorp, Inc./MD/ (NECB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
NorthEast Community Bancorp (NECB) receives a Hold rating, driven by a mixed assessment of its financial performance and valuation. While the company exhibits strong profitability metrics compared to its sector, its negative revenue growth and limited investment in growth initiatives raise concerns about its long-term prospects. The current valuation appears attractive based on P/E and EV/EBITDA multiples, but this is tempered by the lack of free cash flow and potential risks associated with its loan portfolio and regional concentration.
The key takeaway is that NECB presents a value proposition based on current earnings, but investors should carefully consider the sustainability of these earnings given the company's revenue decline and the competitive landscape of the banking sector. Further analysis is needed to determine if NECB can overcome its growth challenges and maintain its profitability in the face of evolving market conditions.
Business Strategy & Overview
NorthEast Community Bancorp operates as a community bank, focusing on providing financial services to individuals and businesses primarily in New York and Massachusetts. Its core business revolves around accepting deposits and originating loans, including construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate, and consumer loans. This regional focus allows NECB to build relationships with local customers and tailor its services to the specific needs of its communities.
The company's revenue generation is primarily driven by net interest income, which is the difference between the interest earned on loans and investments and the interest paid on deposits. Additionally, NECB generates non-interest income through investment advisory and financial planning services, as well as the sale of life insurance products and fixed-rate annuities. This diversification of revenue streams helps to mitigate some of the risks associated with fluctuations in interest rates and loan demand.
NECB's strategic positioning centers on providing personalized service and local expertise, differentiating itself from larger national banks. The company operates a network of full-service branches and loan production offices in its target markets, allowing it to maintain a physical presence and build relationships with customers. This approach is particularly important in the community banking sector, where personal relationships and local knowledge are highly valued.
However, NECB's business strategy also faces challenges. The banking industry is highly competitive, with numerous players vying for customers and market share. Furthermore, the regulatory environment is complex and constantly evolving, requiring NECB to invest in compliance and risk management. The company's limited geographic footprint also exposes it to regional economic risks and competitive pressures.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-2.4%
Sector: 9.4%
-125% VS SCTR
Economic Moat Analysis
NorthEast Community Bancorp's economic moat is likely Narrow, stemming primarily from switching costs and local brand recognition. Community banks often benefit from established relationships with their customers, who may be hesitant to switch to a new bank due to the hassle of transferring accounts and the perceived value of personalized service. This creates a degree of customer stickiness, providing NECB with some pricing power and a stable deposit base.
The company's local brand recognition in its target markets also contributes to its narrow moat. By focusing on specific communities in New York and Massachusetts, NECB has been able to build a reputation for providing reliable and responsive financial services. This local presence can attract new customers and retain existing ones, particularly those who value community involvement and personalized attention.
However, NECB's moat is not particularly wide due to the relatively low barriers to entry in the banking industry. While establishing a physical branch network requires some capital investment, the regulatory requirements and competitive pressures make it difficult for any one bank to dominate a market. Furthermore, the rise of online banking and fintech companies has eroded some of the advantages of traditional brick-and-mortar banks.
The absence of significant cost advantages also limits NECB's moat. While the company may be able to achieve some economies of scale through its branch network and back-office operations, it is unlikely to have a substantial cost advantage over its competitors. This means that NECB must compete on factors such as service quality, loan pricing, and product offerings, which are more easily replicated by other banks.
Ultimately, NECB's narrow moat provides some protection against competition, but it is not insurmountable. The company must continue to invest in its customer relationships, local brand, and service quality to maintain its competitive position in the long run. The increasing prevalence of digital banking solutions also necessitates that NECB adapt its service offerings to remain competitive.
Financial Health & Profitability
NorthEast Community Bancorp exhibits a mixed financial profile. The company's profitability metrics, such as ROE (13.2%) and net margin (29.5%), significantly outperform the sector averages (8.5% and 17.8%, respectively), indicating efficient operations and strong earnings generation. The operating margin of 41.0% also surpasses the sector average of 22.0%, further highlighting NECB's ability to control costs and generate profits.
However, the company's revenue growth is a concern. The TTM revenue of $154.12 million represents a decline of 2.4% compared to the previous year ($160.01 million), while the sector average shows a growth of 9.3%. This negative revenue growth suggests that NECB is facing challenges in attracting new customers or expanding its loan portfolio. The quarterly financial history reveals fluctuating revenue figures, indicating a lack of consistent growth momentum.
NECB's balance sheet appears relatively healthy, with a current ratio of 1.21 indicating sufficient liquidity to meet short-term obligations. The debt-to-equity ratio of 20.00 is significantly lower than the sector average of 115.00, suggesting a conservative approach to leverage. However, the total cash balance of $11.15 million is relatively low, which could limit the company's ability to pursue growth opportunities or weather unexpected financial challenges.
The negative free cash flow of $-185.56 million is a significant concern. While community banks often have fluctuating FCF due to the nature of their lending activities, a consistently negative FCF could indicate underlying problems with the company's business model or capital allocation decisions. This warrants further investigation to determine the causes of the negative FCF and its potential impact on the company's long-term financial health.
Overall, NECB's financial health is characterized by strong profitability but weak revenue growth and negative free cash flow. The company's conservative balance sheet provides some stability, but the lack of revenue growth and negative FCF raise concerns about its long-term sustainability. Investors should carefully monitor these trends and assess the company's ability to improve its revenue growth and generate positive free cash flow in the future.
Valuation Assessment
NorthEast Community Bancorp's valuation presents a mixed picture. The company's P/E ratio of 6.9x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 1.5x is substantially lower than the sector average of 3.5x, further indicating a potential undervaluation. These multiples suggest that investors are not fully recognizing the company's earnings potential.
However, the lack of free cash flow complicates the valuation assessment. Traditional valuation methods, such as discounted cash flow analysis, are difficult to apply when a company consistently generates negative free cash flow. This makes it challenging to determine the intrinsic value of the stock based on its future cash flow potential.
The company's strong profitability metrics, such as ROE and net margin, could justify a higher valuation. However, the negative revenue growth and negative free cash flow offset some of the positive impact of these metrics. Investors may be hesitant to pay a premium for a company that is not growing its revenue and is not generating positive free cash flow.
Compared to its historical valuation, NECB's current multiples may appear attractive. However, it is important to consider the company's recent performance and future prospects. The negative revenue growth and negative free cash flow suggest that the company's earnings may not be sustainable in the long run, which could justify a lower valuation.
Overall, NECB's valuation is a complex issue. The company's low P/E and EV/EBITDA multiples suggest that the stock is undervalued, but the negative revenue growth and negative free cash flow raise concerns about its long-term sustainability. Investors should carefully consider these factors and conduct further research to determine the fair value of the stock.
Risk & Uncertainty
NorthEast Community Bancorp faces several specific risks that could negatively impact its business and financial performance. One of the primary risks is credit risk, which is the risk that borrowers will default on their loans. Given the company's focus on real estate lending, it is particularly vulnerable to downturns in the real estate market. A decline in property values or an increase in interest rates could lead to higher default rates and significant losses for NECB.
Another significant risk is interest rate risk. As a community bank, NECB's profitability is highly sensitive to changes in interest rates. An increase in interest rates could reduce the demand for loans and increase the cost of deposits, squeezing the company's net interest margin. Conversely, a decrease in interest rates could reduce the yield on its loan portfolio and negatively impact its earnings.
Regulatory risk is also a concern for NECB. The banking industry is heavily regulated, and changes in regulations could increase the company's compliance costs or restrict its business activities. For example, new capital requirements or lending restrictions could limit NECB's ability to grow its loan portfolio and generate profits.
Competition from larger banks and fintech companies poses another risk to NECB. Larger banks have greater resources and economies of scale, allowing them to offer a wider range of products and services at competitive prices. Fintech companies are disrupting the traditional banking industry with innovative technologies and business models, posing a threat to NECB's market share.
Finally, NECB's geographic concentration in New York and Massachusetts exposes it to regional economic risks. A downturn in the economy of these states could negatively impact the demand for loans and increase the risk of loan defaults. This lack of geographic diversification makes NECB more vulnerable to regional economic shocks.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNECB's low valuation multiples (P/E and EV/EBITDA) offer a compelling entry point for value investors seeking exposure to a profitable community bank.
BULL VIEWThe company's strong ROE and net margin demonstrate efficient operations and the potential for sustained earnings generation, even in a challenging economic environment.
BULL VIEWNECB's conservative balance sheet and low debt-to-equity ratio provide a cushion against economic downturns and allow for potential strategic acquisitions or investments.
The Bear Case
BEAR VIEWNECB's negative revenue growth and free cash flow raise serious concerns about its long-term sustainability and ability to compete in a rapidly evolving banking landscape.
BEAR VIEWThe company's geographic concentration in New York and Massachusetts exposes it to significant regional economic risks and limits its growth potential.
BEAR VIEWIncreased competition from larger banks and fintech companies will likely erode NECB's market share and put downward pressure on its profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NECB and 4,400+ other equities.
NorthEast Community Bancorp, Inc./MD/ exhibits a 41% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
2.2%
Sector: 1.3%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
41.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
29.5%
Sector: 17.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.41%
Yield Delta+114%
Income Projection audit
A $10,000 investment would generate approximately $516 annually in dividends at the current trailing rate.
