Northeast Community Bancorp, Inc. (NECB) Cash Flow Statement

The OCF-to-earnings ratio of 1.31x in 2026Q2 and 1.40x in 2025Q2 indicates that core deposit and loan-flow mechanics generate cash more faithfully than accrual earnings alone, which may partially offset the five-quarter net interest income decline identified in prior analysis. However, since Q2 2025 net income has slipped from $11.2M to $9.8M while operating cash flow eased from $15.6M to $12.8M, the direction of travel suggests the retained-capital engine is losing momentum rather than accelerating, and investors should monitor whether OCF/NI continues to normalize toward parity.

Combined dividends of roughly $11.2M over the trailing four quarters plus cumulative buybacks of approximately $6.1M over the same period imply total shareholder distributions running near $17M annually against about $42.6M of trailing net income, a payout level that looks sustainable today but leaves less buffer if net interest income keeps contracting. The asymmetry between the $2.8M quarterly dividend run-rate, which is essentially fixed, and the discretionary buyback line warrants attention, since buybacks are the only flexible component of capital return and management appears to be using them to support the equity base while spreads compress.

The modest net additions to the securities book are notable given the deposit repricing pressure flagged in the income statement analysis; a more aggressive reinvestment posture would typically be visible as larger purchase outflows, which is not what the cash flow data shows. This could mean the bank is managing duration conservatively or simply lacks excess liquidity to redeploy, but the cash flow line alone cannot distinguish between these explanations, and analysts should cross-reference this against securities portfolio disclosures before drawing conclusions about asset-liability positioning.

Provision charges of roughly $1.2M across 2026Q1-Q2 stand against a combined release of about $391K in 2024Q2 and 2025Q4, meaning the two most recent quarters mark a clear reversal in reserve direction after a period of relief. Since operating cash flow held near $12.8M in 2026Q2 despite the provision charge, the reserve build appears manageable in liquidity terms today, but the pattern echoes the provision volatility already flagged in the prior income statement work and suggests credit-cost normalization is still unresolved rather than benign.