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 ...

Northeast Community Bancorp (NECB) shares rallied 6.6% in the last trading session to close at $27.30. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 17% gain over the past four weeks. Shares of Northeast Community Bancorp rallied for the third consecutive trading session and touched a new 52- week of $27.42 on Friday. The banking sector is in the spotlight driven by the clarity on the Federal Reserve's mone ...

Exhibit 99.1 NECB Earnings Press Release for 06/30/2024: NORTHEAST COMMUNITY BANCORP, INC. REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 White Plains, New York, July 22, 2024 – NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the "Company"), the parent holding company of NorthEast Community Bank (the "Bank"), generated net income of $12.8 million, or $0.98 per basic share and $0.97 per diluted share, for the three months ended June 30, 2024 compared to net income of $11.1 million, or $0. ...

What's Driving the Outperformance? For the current fiscal year, Northeast Community Bancorp is expected to post earnings of $2.94 per share on $99.23 million in revenues. This represents a -11.45% change in EPS on a -1.69% change in revenues. For the next fiscal year, the company is expected to earn $2.71 per share on $100.97 million in revenues. This represents a year-over-year change of -7.82% and 1.75%, respectively. Northeast Community Bancorp may be at a 52-week high right now, but what might the futur ...