WHITE PLAINS, N.Y., Nov. 04, 2020 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (OTC: NECB) (the “Company”), a majority owned subsidiary of NorthEast Community Bancorp, MHC (the “MHC”), and the parent holding company of NorthEast Community Bank (the “Bank”) announced today that its Board of Directors, together with the Boards of Directors of MHC and the Bank, have unanimously adopted a Plan of Conversion and Reorganization (the “Plan of Conversion”).
Pursuant to the Plan of Conversion, the MHC will sell its majority ownership in the Company to the public and the Company, which is currently in the mutual holding company structure, will reorganize to a fully public stock holding company in a transaction commonly referred to as a “second step” conversion.
As part of the second step conversion, the Bank will become a wholly owned subsidiary of a new holding company to be formed in connection with the transaction. Shares of common stock of the Company held by persons other than the MHC (whose shares will be canceled) will be converted into shares of common stock of the new holding company pursuant to an exchange ratio intended to preserve the percentage ownership interests of such persons. In the stock offering, depositors of the Bank with qualifying deposits as of September 30, 2019 will have first priority to purchase the shares of common stock of the new holding company.
The transactions contemplated by the second step conversion are subject to approval by the voting depositors of the Bank, by the Company’s stockholders (including the approval of a majority of the shares held by persons other than the MHC) and by the Board of Governors of the Federal Reserve System and the New York State Department of Financial Services.
A prospectus or proxy statement/prospectus, as applicable, and other proxy materials containing detailed information relating to the Plan of Conversion, details of the offering, and business and financial information about the Company will be sent to stockholders of the Company and depositors of the Bank following regulatory approval, which we anticipate will be in the second quarter of 2021.
NorthEast Community Bancorp, Inc. is the holding company for NorthEast Community Bank. NorthEast Community Bank is a New York state-chartered savings bank that operates six full-service branches in New York State and three full-service branches in Danvers, Framingham and Quincy, Massachusetts and loan production offices in White Plains and New City, New York.
This release is neither an offer to sell nor a solicitation of an offer to buy common stock. The offer is made only by the prospectus when accompanied by a stock order form. The shares of common stock of the Company are not savings accounts or savings deposits, may lose value and are not insured by the Federal Deposit Insurance Corporation or any other government agency.
This release c o nt ains “ f o r ward-looking st a t eme n ts” that are based on assum p tions and may describe future plans, s tra t egies and e xpec t ations of the Compa n y . These f o r ward-looking s t a t eme n ts are generally ide n tified b y the use of the words “beli e ve , ” “ e xpect , ” “i n t end , ” “ a n ticipa t e , ” “ e s tima t e , ” “ projec t ” or similar e xpressions. The Compa n y ’ s ability t o predict results or the actual ef f ect of future plans or s tra t egies is inhere n tly un c er t ain. F ac t ors that c ould have a ma t erial adverse ef f ect on the operations of the Compa n y and its subsidiaries include, but are not limi t ed t o , changes in mar k e t i nt ere s t ra t es, regional and national e c onomic c onditions, the effect of the COVID-19 pandemic (including its impact on our business operations and credit quality, on our customers and their ability to repay their loan obligations and on general economic and financial market conditions), legislative and regula t o r y changes, mon e t a r y and fis c al policies of the Uni t ed S t a t es g o vernme n t, including policies of the Uni t ed S t a t es T reasu r y and the F ederal R ese r ve Board, the quality and c omposition of the loan or i n ve s tme n t port f olios, demand f or loan products, deposit flows, c omp e tition, demand f or financial se r vi c es in the Compa n y ’ s mar k e t area, changes in the real e st a t e mar k e t values in the Compa n y ’ s mar k e t area and changes in rel e va n t a cc ou n ting principles and guidelines These ris k s and un c er t ai n ties should be c onsidered in e valuating a n y f o r ward-looking st a t eme n ts and undue relian c e should not be pla c ed on such st a t eme n ts. E x c e p t as required b y appli c able law or regulation, the Compa n y does not under t a k e, and specifi c ally disclaims a n y obligation, t o release publicly the result of a n y r e visions that may be made t o a n y f o r ward-looking s t a t eme n ts t o reflect e ve n ts or circum st an c es af t er the da t e of the st a t eme n ts or t o reflect the o c curren c e of a n ticipa t ed or una n ticipa t ed e ve n ts.
Contact :
Kenneth A. Martinek
Chief Executive Officer
(914) 684-2500