Financial Performance - Net income for the fourth quarter of 2024 was $10.9 million, or $0.83 per basic share, compared to $12.1 million, or $0.82 per basic share, in the fourth quarter of 2023[2] - Net income for the quarter ended December 31, 2024, was $10,933 thousand, a decrease of 9.8% from $12,101 thousand in the same quarter of 2023[68] - Earnings per share (basic) for the year ended December 31, 2024, was $3.64, up from $3.32 in 2023, indicating a growth of 9.6%[70] Asset Growth - Total assets increased by $246.2 million, or 14.0%, to $2.0 billion at December 31, 2024, from $1.8 billion at December 31, 2023[4] - Total assets grew to $2,000,060 thousand as of December 31, 2024, up from $1,745,721 thousand in 2023[72] - Total assets increased to $2,010,298 thousand as of December 31, 2024, up from $1,764,135 thousand in 2023, representing a growth of 13.4%[66] Loan and Deposit Growth - Net loans increased by $227.0 million, or 14.3%, to $1.8 billion at December 31, 2024, driven by loan originations of $656.0 million during the year[8] - Total deposits rose by $270.3 million, or 19.3%, to $1.7 billion at December 31, 2024, primarily due to competitive interest rates[16] - Total deposits increased to $1,670,375 thousand as of December 31, 2024, up from $1,400,036 thousand in 2023, marking a growth of 19.3%[66] Interest Income and Expense - Net interest income for the fourth quarter of 2024 was $25.3 million, a slight increase of $92,000, or 0.4%, from the same quarter in 2023[21] - Total interest and dividend income increased by $3.3 million, or 9.0%, to $40.5 million for the fourth quarter of 2024[24] - Total interest and dividend income increased by $27.5 million, or 20.8%, to $160.0 million for the year ended December 31, 2024 from $132.5 million in 2023[40] - Interest expense increased by $3.3 million, or 27.3%, to $15.2 million for the fourth quarter of 2024, due to higher costs of interest-bearing liabilities[25] - Interest expense for the year ended December 31, 2024 increased by $21.9 million, or 62.1%, to $57.2 million from $35.3 million in 2023[41] Credit Quality - The allowance for credit losses related to loans decreased to $4.8 million as of December 31, 2024, from $5.1 million as of December 31, 2023[11] - The allowance for credit losses related to loans was $4.8 million, or 0.27% of total loans, as of December 31, 2024, down from $5.1 million, or 0.32%, as of December 31, 2023[56] - Non-performing assets decreased to $5.1 million at December 31, 2024 from $5.8 million at December 31, 2023, resulting in a non-performing assets to total assets ratio of 0.25%[54][55] - The allowance for credit losses was $4,833 thousand for the quarter ended December 31, 2024, slightly higher than $4,771 thousand in the same quarter of 2023[72] Equity and Capital Position - Stockholders' equity increased by $39.7 million, or 14.2%, to $319.1 million at December 31, 2024[20] - The Company's total stockholders' equity to assets ratio was 15.87% as of December 31, 2024, indicating a strong capital position[58] - The bank's total capital to risk-weighted assets ratio improved to 13.92% as of December 31, 2024, compared to 13.43% in 2023, reflecting a stronger capital position[70] - The total equity as of December 31, 2024, was $316,788 thousand, an increase from $276,745 thousand in 2023[72] Operational Efficiency - The efficiency ratio for the year ended December 31, 2024, was 37.00%, compared to 34.90% in 2023, indicating a decline in operational efficiency[70] - Non-interest expense increased by $688,000, or 7.5%, to $9.9 million for the quarter ended December 31, 2024 from $9.2 million for the same quarter in 2023[35] - Non-interest income for the quarter ended December 31, 2024 decreased by $1.2 million, or 89.2%, to $149,000 compared to $1.4 million for the same quarter in 2023[31] Market Performance - The unrealized loss on equity securities for the quarter ended December 31, 2024 was $554,000, a significant decline from an unrealized gain of $621,000 in the same quarter of 2023[32] - The average loan receivable gross for the year ended December 31, 2024, was $1,701,079 thousand, generating an interest yield of 9.05%, slightly down from 9.10% in 2023[74] - Average interest-bearing liabilities increased to $1,398,133 thousand for the quarter ended December 31, 2024, with an average yield of 4.34%[72] - The total interest-bearing deposits for the year ended December 31, 2024, were $1,282,088 thousand, yielding 4.34%, compared to $957,305 thousand and 3.57% in 2023[74] Stock Repurchase - The Company completed its first stock repurchase program, repurchasing 1,637,794 shares at a total cost of $23.0 million[60]

Group 1: Earnings Performance - Northeast Community Bancorp (NECB) reported quarterly earnings of $0.80 per share, missing the Zacks Consensus Estimate of $0.82 per share, and down from $0.82 per share a year ago, representing an earnings surprise of -2.44% [1] - The company posted revenues of $25.45 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.79%, and down from $26.59 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Northeast Community Bancorp shares have increased approximately 5.1% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.74 on revenues of $25.55 million, and for the current fiscal year, it is $3.04 on revenues of $105.31 million [7] - The estimate revisions trend for Northeast Community Bancorp is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 9% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint NorthEast Community Bancorp, Inc. reported strong financial performance for the fourth quarter and the year ended December 31, 2024, with notable increases in net income, total assets, and loan originations despite a challenging high interest rate environment. Financial Performance - The company generated net income of $10.9 million for Q4 2024, a decrease from $12.1 million in Q4 2023, while annual net income increased to $47.8 million from $46.3 million year-over-year [1][2] - Earnings per share for Q4 2024 were $0.83 basic and $0.80 diluted, compared to $0.82 for both in Q4 2023 [1] Balance Sheet Summary - Total assets increased by $246.2 million, or 14.0%, to $2.0 billion as of December 31, 2024, driven by a $227.0 million increase in net loans [3] - Cash and cash equivalents rose by $9.6 million, or 14.0%, to $78.3 million, attributed to a $270.3 million increase in deposits [4] - Total deposits increased by 19.3% to $1.7 billion, with significant growth in certificates of deposit and NOW/money market accounts [15] Loan Portfolio - Net loans increased by $227.0 million, or 14.3%, to $1.8 billion, with loan originations totaling $656.0 million for the year [7][8] - Construction loans accounted for a significant portion of originations, with $573.8 million originated during the year [7] Interest Income and Expense - Net interest income for Q4 2024 was $25.3 million, a slight increase from $25.2 million in Q4 2023 [20] - Total interest and dividend income increased by $3.3 million, or 9.0%, to $40.5 million for Q4 2024 [23] - Interest expense rose by $3.3 million, or 27.3%, to $15.2 million for Q4 2024, reflecting higher costs of interest-bearing liabilities [24] Non-Interest Income and Expenses - Non-interest income for Q4 2024 decreased by $1.2 million, or 89.2%, primarily due to unrealized losses on equity securities [29][30] - Non-interest expense increased by $688,000, or 7.5%, to $9.9 million for Q4 2024, driven by higher salaries and employee benefits [33] Asset Quality - Non-performing assets decreased to $5.1 million, or 0.25% of total assets, from $5.8 million, or 0.33%, year-over-year [52][53] - The allowance for credit losses related to loans decreased to $4.8 million, or 0.27% of total loans, from $5.1 million, or 0.32% [53] Capital Position - Stockholders' equity increased by $39.7 million, or 14.2%, to $319.1 million as of December 31, 2024 [19] - The company's total stockholders' equity to assets ratio was 15.87%, indicating a strong capital position [55][56]

Core Viewpoint - Northeast Community Bancorp (NECB) has experienced a significant downtrend, with a 16.8% decline over the past four weeks, but is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Stock Performance and Technical Indicators - NECB's stock has faced heavy selling pressure, leading to an RSI reading of 25.7, indicating it is oversold and may soon reverse its trend [5]. - The Relative Strength Index (RSI) is a momentum oscillator that helps identify oversold conditions, typically when the RSI falls below 30 [2][3]. Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus EPS estimate for NECB has increased by 1.7%, reflecting a strong agreement among analysts regarding the company's ability to report better earnings than previously predicted [6]. - NECB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for price appreciation [7].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Northeast Community Bancorp (NECB) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][4][7]. Valuation Metrics - NECB has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock's P/E ratio is 9.13, significantly lower than the industry average of 12.13, suggesting it may be undervalued [4]. - NECB's P/B ratio stands at 1.25, compared to the industry's average P/B of 1.36, further indicating solid valuation [5]. - The P/CF ratio for NECB is 7.40, which is much lower than the industry average of 25.67, reinforcing the notion of undervaluation [6]. Earnings Outlook - The combination of NECB's strong valuation metrics and positive earnings outlook positions it as an impressive value stock currently [7].

Financial Performance - Net income for the three months ended September 30, 2024, was $12.7 million, a 7.1% increase from $11.8 million for the same period in 2023[151]. - Net income for the nine months ended September 30, 2024, was $36.9 million, a 7.9% increase from $34.2 million for the same period in 2023, attributed to higher net interest income and reduced credit loss expenses[180]. - Non-interest income increased by $1.1 million, or 510.4%, to $1.3 million for the three months ended September 30, 2024, driven by unrealized gains on equity securities and other loan fees[162]. - Non-interest income increased by $277,000, or 11.8%, to $2.6 million for the nine months ended September 30, 2024, compared to $2.4 million in 2023[191]. Asset and Deposit Growth - Total assets increased by $203.8 million, or 11.6%, to $2.0 billion as of September 30, 2024, from $1.8 billion at December 31, 2023[134]. - Total deposits increased by $228.0 million, or 16.3%, to $1.6 billion at September 30, 2024, from $1.4 billion at December 31, 2023[145]. - Total interest-earning assets increased to $1,852,410 million in September 2024, up from $1,569,785 million in September 2023, reflecting a growth of 18%[210]. - Total assets reached $1,937,809 million in September 2024, up from $1,650,514 million in September 2023, marking an increase of 17.4%[210]. Loan and Credit Quality - Loans, net of the allowance for credit losses, increased by $173.6 million, or 11.0%, to $1.8 billion at September 30, 2024, from $1.6 billion at December 31, 2023[138]. - The allowance for credit losses related to loans decreased to $4.8 million as of September 30, 2024, from $5.1 million as of December 31, 2023[140]. - Total loans outstanding increased from $1.586 billion at December 31, 2023 to $1.760 billion at September 30, 2024, an increase of approximately 10.9%[221]. - The total net charge-offs decreased from $313,000 in the nine months ended September 30, 2023 to $115,000 in the same period of 2024, a reduction of approximately 63.3%[221]. Interest Income and Expense - Net interest income rose by $1.2 million, or 4.6%, to $26.3 million for the three months ended September 30, 2024, compared to $25.1 million for the same period in 2023[152]. - Net interest income rose by $5.5 million, or 7.7%, to $77.5 million for the nine months ended September 30, 2024, due to increased interest income from loans and interest-bearing deposits[181]. - Total interest and dividend income increased by $6.0 million, or 17.2%, to $41.2 million for the three months ended September 30, 2024, from $35.1 million for the same period in 2023[155]. - Interest expense increased by $4.9 million, or 48.9%, to $14.9 million for the three months ended September 30, 2024, from $10.0 million for the same period in 2023[156]. Non-Interest Expense - Non-interest expense rose by $1.0 million, or 11.7%, to $10.0 million for the three months ended September 30, 2024, driven by higher real estate owned expenses and salaries[166]. - Non-interest expense increased by $3.2 million, or 12.1%, to $29.1 million for the nine months ended September 30, 2024, from $26.0 million in 2023[196]. - Salaries and employee benefits increased by $435,000, or 9.3%, to $5.1 million for the three months ended September 30, 2024, primarily due to increased compensation to retain key personnel[168]. - Salaries and employee benefits rose by $1.6 million, or 11.8%, to $15.7 million for the nine months ended September 30, 2024, driven by increased compensation to retain key personnel[197]. Interest Rate Risk Management - The company has established an interest rate floor of zero percent for measuring interest rate risk[250]. - The results as of September 30, 2024, indicate that the company is adequately positioned with acceptable net interest income and economic value at risk[251]. - All interest rate risk results continue to remain within the company's policy guidelines[251]. - The simulation reports are discussed quarterly to monitor and control interest rate risk exposure[244].

Financial Performance - Net income for Q3 2024 was $12.7 million, or $0.97 per basic share, up from $11.8 million, or $0.80 per basic share in Q3 2023, representing a 7.6% increase[2] - For the nine months ended September 30, 2024, net income was $36.9 million, or $2.81 per basic share, compared to $34.2 million, or $2.42 per basic share for the same period in 2023, reflecting a 7.9% increase[2] - Basic earnings per share increased to $0.97 for the three months ended September 30, 2024, compared to $0.80 for the same period in 2023, representing a 21.25% increase[61] Asset and Loan Growth - Total assets rose by $203.8 million, or 11.6%, to $2.0 billion as of September 30, 2024, driven by a $173.6 million increase in net loans[5] - Loans, net of the allowance for credit losses, increased by $173.6 million, or 11.0%, to $1.8 billion as of September 30, 2024, with loan originations of $569.2 million during the nine months[9] - Total loans increased to $1,760,259 thousand as of September 30, 2024, compared to $1,586,897 thousand at the end of 2023, marking an increase of 10.9%[61] Deposits and Interest Income - Total deposits increased by $228.0 million, or 16.3%, to $1.6 billion, attributed to competitive interest rates offered by the Bank[16] - Total interest and dividend income increased by $24.2 million, or 25.4%, to $119.5 million for the nine months ended September 30, 2024[37] - Total interest income for the three months ended September 30, 2024, was $41,183 thousand, up 17.4% from $35,137 thousand in the same period of 2023[60] Interest and Non-Interest Income - Net interest income increased by $1.2 million, or 4.6%, for Q3 2024 compared to Q3 2023, totaling $26.3 million[4][21] - Non-interest income for the three months ended September 30, 2024 was $1.3 million, a 510.4% increase from $221,000 in the same period of 2023[29] - Net interest income for the nine months ended September 30, 2024 was $77.5 million, up 7.7% from $72.0 million for the same period in 2023[34] Expenses and Taxation - Non-interest expense increased by $3.2 million, or 12.1%, to $29.1 million for the nine months ended September 30, 2024[48] - The provision for income taxes was $4,883 thousand for the three months ended September 30, 2024, compared to $4,436 thousand in the same period of 2023, indicating a rise of 10.0%[60] - Non-interest expenses increased to $9,961 thousand for the three months ended September 30, 2024, compared to $8,915 thousand in the same period of 2023, reflecting a rise of 11.7%[60] Credit Quality and Allowance for Credit Losses - The allowance for credit losses related to loans decreased to $4.8 million as of September 30, 2024, down from $5.1 million at December 31, 2023[11] - Non-performing assets decreased to $5.4 million at September 30, 2024, down from $5.8 million at December 31, 2023[50] - The allowance for credit losses to total loans ratio improved to 0.27% as of September 30, 2024, down from 0.32% at the end of 2023[61] Equity and Capital Ratios - Stockholders' equity increased by $30.3 million, or 10.8%, to $309.6 million as of September 30, 2024, primarily due to net income for the period[20] - The Company's total stockholders' equity to assets ratio was 15.73% as of September 30, 2024[53] - Total capital to risk-weighted assets ratio was 14.04% as of September 30, 2024, slightly down from 14.11% in the previous quarter[61] Share Repurchase - The company repurchased 1,091,174 shares of common stock under its second stock repurchase program at a cost of $17.2 million as of September 30, 2024[56]

Group 1: Earnings Performance - Northeast Community Bancorp (NECB) reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and up from $0.80 per share a year ago, representing an earnings surprise of 4.40% [1] - The company posted revenues of $27.64 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.17%, compared to year-ago revenues of $25.35 million [2] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Northeast Community Bancorp shares have increased approximately 53.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 21.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $26.06 million, and for the current fiscal year, it is $3.61 on revenues of $106.73 million [7] - The company holds a Zacks Rank 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 14% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

The market expects Northeast Community Bancorp (NECB) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...