NorthEast Community Bancorp, Inc. (Nasdaq Global Market: NECB), the holding company for NorthEast Community Bank (the “Bank”), today announced that the Bank has submitted an application to the New York State Department of Financial Services to convert its charter from a federally-chartered savings bank to a New York-chartered savings bank.
Kenneth A. Martinek, President and Chief Executive Officer of NorthEast Community Bancorp, commented, “We have had considerable success as a federally chartered savings bank. We have determined, however, that converting to a New York-chartered savings bank best positions the Bank to compete in our market and to further execute our business strategy. Our Board of Directors believes that the charter conversion is in the best interests NorthEast Community Bancorp, the Bank, our customers, depositors and the communities we serve because it is consistent with and promotes our community banking focus. From our customers’ perspective, the charter conversion should be transparent. The terms and conditions of our customers’ loans and deposit accounts will not be affected by the charter change.”
Subject to receiving the necessary regulatory approvals, the charter conversion is expected to be completed in second or third quarter of calendar year 2012. As a result of the charter conversion, the New York State Department of Financial Services and the Federal Deposit Insurance Corporation will be the Bank’s primary regulators. The Federal Reserve Board will continue to be the primary banking regulator for NorthEast Community Bancorp, MHC and NorthEast Bancorp, Inc., both of which will remain as savings and loan holding companies following the charter conversion.
NorthEast Community Bancorp, Inc. is the holding company for NorthEast Community Bank. NorthEast Community Bank is a federally chartered savings bank that operates four full-service offices in New York, two full service branches in Danvers and Plymouth, Massachusetts and a loan production office in Danvers, Massachusetts.