NORTHEAST COMMUNITY BANCORP INC (NECB)
Sector: Financials
2026 Annual Meeting Analysis
NORTHEAST COMMUNITY BANCORP INC · Meeting: May 21, 2026
Directors FOR
4
Directors AGAINST
0
Say on Pay
FOR
Auditor
FOR
Director Elections
Election of Directors
NECB's 3-year price return of 110.9% outpaces the community bank benchmark QABA (3-year return 59.4%) by +51.5 percentage points, which is below the 65-percentage-point threshold required to trigger a negative vote for a company with strong positive returns; Collazo has been director since 2013 and brings deep institutional knowledge as President and COO, and all meeting attendance was 100%.
The TSR underperformance trigger does not apply because NECB's 3-year outperformance versus QABA of +51.5 percentage points is below the 65-percentage-point threshold; McKenzie has served since 2006, attended 100% of meetings, and provides relevant management and operational experience.
Morgenthau joined in 2024, which is within the 24-month exemption window under policy, so the TSR trigger does not apply; he brings relevant construction finance and legal expertise directly aligned with NECB's primary lending focus, though shareholders should note his law firm received $303,000 in fees from the Bank in 2025, which the board has reviewed and disclosed.
Bennett joined in 2026 and is exempt from the TSR trigger as a newly appointed director; her accounting and compliance background at Cherry Bekaert LLC is directly relevant to the Company's risk and financial reporting needs.
All four nominees pass policy screens. NECB's stock has risen approximately 111% over three years, outpacing the community bank benchmark QABA (First Trust NASDAQ ABA Community Bank Index) by +51.5 percentage points — strong performance that falls short of the 65-percentage-point gap needed to trigger a negative vote under the policy. Two nominees (Morgenthau, Bennett) joined recently enough to qualify for the new-director exemption. All directors attended 100% of meetings in 2025.
Say on Pay
✓ FORCEO
Kenneth A. Martinek
Total Comp
$1,259,679
Prior Support
N/A
CEO Kenneth Martinek received total compensation of $1,259,679 for 2025, consisting of a $670,000 base salary and $463,213 in performance-based cash incentive (plus benefits), with no equity grants made in 2025. The incentive plan used objective, pre-established financial metrics — return on average assets, pre-tax pre-provision net income, efficiency ratio, and a discretionary component — and payouts were earned at the stretch level because the company genuinely exceeded all targets, including a return on average assets of 2.21% against a stretch target of 2.14% and a near-zero non-performing loan ratio. Pay-for-performance alignment is strong given that NECB's stock has returned approximately 111% over three years, far outpacing the QABA community bank benchmark by +51.5 percentage points, meaning above-target incentive pay is well-supported by shareholder outcomes.
Auditor Ratification
✓ FORAuditor
S.R. Snodgrass, P.C.
Tenure
N/A
Audit Fees
$284,384
Non-Audit Fees
$52,121
The non-audit fees (audit-related fees of $27,668 plus tax fees of $24,453, totaling $52,121) represent approximately 18.3% of the core audit fees of $284,384, which is well below the 50% threshold that would raise independence concerns. Auditor tenure is not disclosed in the filing, so the tenure trigger cannot be applied and policy requires a FOR vote in that circumstance. No material restatements were identified, and S.R. Snodgrass is an appropriate firm for a community bank of NECB's size and complexity.
Overall Assessment
NECB's 2026 annual meeting ballot contains three standard proposals plus an equity plan approval. The company has delivered exceptional shareholder returns over three years (+110.9% versus QABA's +59.4%), its executive pay is tied to objective financial metrics that were genuinely achieved, auditor fees are clean, and all four director nominees pass policy screens — resulting in FOR votes across all evaluated proposals.