Core Viewpoint - NorthEast Community Bancorp, Inc. reported strong financial performance for the three and six months ended June 30, 2024, with significant increases in net income and total assets despite a challenging interest rate environment. Financial Performance - Net income for the three months ended June 30, 2024, was $12.8 million, or $0.98 per basic share, compared to $11.1 million, or $0.75 per basic share, for the same period in 2023 [2] - For the six months ended June 30, 2024, net income was $24.2 million, or $1.84 per basic share, compared to $22.3 million, or $1.56 per basic share, for the same period in 2023 [2] Asset Growth - Total assets increased by $166.1 million, or 9.4%, to $1.9 billion at June 30, 2024, from $1.8 billion at December 31, 2023, primarily due to a $121.5 million increase in net loans and a $45.2 million increase in cash and cash equivalents [3] - Cash and cash equivalents rose by $45.2 million, or 65.8%, to $113.9 million at June 30, 2024, driven by an increase in deposits of $163.8 million [29] Loan Portfolio - Loans, net of the allowance for credit losses, increased by $121.5 million, or 7.7%, to $1.7 billion at June 30, 2024, with loan originations totaling $364.7 million during the six months ended June 30, 2024 [30] - The increase in the loan portfolio included $323.8 million in construction loans, with approximately 34.0% of the funds disbursed at loan closings [30] Interest Income and Expense - Total interest and dividend income increased by $8.5 million, or 26.9%, to $40.2 million for the three months ended June 30, 2024, compared to $31.7 million for the same period in 2023 [14] - Interest expense rose by $13.8 million, or 103.1%, to $27.2 million for the six months ended June 30, 2024, due to an increase in the cost of interest-bearing liabilities [23] Credit Losses - The allowance for credit losses related to loans decreased to $4.9 million as of June 30, 2024, from $5.1 million as of December 31, 2023, representing 0.29% of total loans [31][78] - The company recorded a credit loss expense reduction of $226,000 for the three months ended June 30, 2024, compared to a credit loss expense of $610,000 for the same period in 2023 [16] Non-Interest Income and Expenses - Non-interest income for the three months ended June 30, 2024, was $731,000, down from $1.0 million for the same period in 2023, primarily due to decreases in BOLI income and investment advisory fees [18] - Non-interest expense increased by $617,000, or 6.9%, to $9.5 million for the three months ended June 30, 2024, driven by higher salaries and employee benefits [46] Capital Position - Stockholders' equity increased by $20.7 million, or 7.4%, to $300.0 million at June 30, 2024, from $279.3 million at December 31, 2023 [12] - The company's total stockholders' equity to assets ratio was 15.54% as of June 30, 2024, indicating a strong capital position relative to regulatory requirements [56][79]

The market expects Northeast Community Bancorp (NECB) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 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 other h ...

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zack ...

WHITE PLAINS, N.Y., June 20, 2024 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (the "Company") (NASDAQ:NECB) announced today that its Board of Directors has declared a quarterly cash dividend of $0.10 per common share. The dividend will be paid on or about August 6, 2024 to shareholders of record as of the close of business on July 5, 2024. This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be ide ...

Fly View ProductionsFor over a year now, I have been familiarizing myself with many of the financial institutions out there. Most of my emphasis has been on small to medium sized banks. Few of them have had market capitalizations exceeding $10 billion. And many have been $2 billion in size or less. But one of the smallest has got to be Northeast Community Bancorp (NASDAQ:NECB), a firm with a market capitalization as of this writing of $188 million. But small does not necessarily mean bad. In fact, in th ...

Table of Contents FORM 10-Q or UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40589 NorthEast Community Bancorp, Inc. (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 (Exact name of registrant as specified in its charter) Maryland 86-31 ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Earnings Summary](index=1&type=section&id=Earnings%20Summary) Net income for Q1 2024 rose to **$11.4 million**, with diluted EPS of **$0.86**, reflecting strong loan portfolio performance Q1 2024 vs Q1 2023 Earnings Comparison | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Income** | $11.4 million | $11.2 million | | **Basic EPS** | $0.87 | $0.77 | | **Diluted EPS** | $0.86 | $0.77 | - The company attributes its **strong earnings** to the **robust performance of its loan portfolio**, with continued **high demand for construction lending** in specific high-demand areas[3](index=3&type=chunk) [Key Performance Highlights](index=1&type=section&id=Key%20Performance%20Highlights) Strong profitability and efficiency maintained in Q1 2024, with **9.4%** net interest income growth and **$731.3 million** in loan commitments Key Performance Metrics for Q1 2024 | Metric | Value | | :--- | :--- | | **Return on Average Assets** | 2.50% | | **Return on Average Equity** | 15.88% | | **Efficiency Ratio** | 37.91% | - Net interest income increased by **$2.1 million**, or **9.4%**, to **$25.0 million** for the three months ended March 31, 2024, compared to the same period in 2023[10](index=10&type=chunk) - Commitments, loans-in-process, and standby letters of credit outstanding grew to **$731.3 million** at March 31, 2024, from **$719.6 million** at the end of 2023[10](index=10&type=chunk) [Financial Condition Analysis (Balance Sheet)](index=1&type=section&id=Financial%20Condition%20Analysis%20(Balance%20Sheet)) [Overall Balance Sheet Changes](index=1&type=section&id=Overall%20Balance%20Changes) Total assets grew **5.8%** to **$1.9 billion** by March 31, 2024, driven by increases in net loans, cash, and total deposits Balance Sheet Summary (QoQ) | Balance Sheet Item | March 31, 2024 | Dec 31, 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | $1.9 billion | $1.8 billion | +$102.8 million | +5.8% | | **Net Loans** | $1.6 billion | $1.6 billion | +$67.8 million | +4.3% | | **Cash & Cash Equivalents** | $107.4 million | $68.7 million | +$38.8 million | +56.5% | | **Total Deposits** | $1.5 billion | $1.4 billion | +$112.0 million | +8.0% | [Asset Analysis](index=1&type=section&id=Asset%20Analysis) Asset growth was fueled by **$180.5 million** in new loan originations, primarily construction loans, increasing net loans by **4.3%** - Net loans increased by **$67.8 million**, primarily due to **$180.5 million** in new loan originations during the quarter[8](index=8&type=chunk) - Construction loans were the main driver of loan growth, with **$170.9 million** in new originations[8](index=8&type=chunk) - Cash and cash equivalents increased by **$38.8 million** (**56.5%**) to **$107.4 million**, largely as a result of deposit growth[5](index=5&type=chunk) [Liabilities Analysis](index=2&type=section&id=Liabilities%20Analysis) Total deposits increased **8.0%** to **$1.5 billion** due to competitive rates, while total borrowings decreased by **$17.0 million** - A strategy of offering competitive interest rates led to a **$112.0 million** increase in total deposits[16](index=16&type=chunk) - The deposit mix shifted, with certificates of deposit increasing by **$90.9 million** and NOW/money market accounts by **$60.1 million**, while savings and non-interest-bearing demand deposits decreased[16](index=16&type=chunk) - Federal Home Loan Bank advances and Federal Reserve Bank borrowings decreased by a combined **$17.0 million**[17](index=17&type=chunk) [Stockholders' Equity Analysis](index=2&type=section&id=Stockholders%27%20Equity%20Analysis) Stockholders' equity increased **3.4%** to **$288.9 million**, primarily from **$11.4 million** net income, offsetting repurchases and dividends - The **$9.6 million** increase in stockholders' equity was primarily due to net income of **$11.4 million**[20](index=20&type=chunk) - Growth in equity was partially offset by stock repurchases totaling **$1.2 million** and dividends paid and declared of **$1.3 million**[20](index=20&type=chunk) [Results of Operations (Income Statement)](index=3&type=section&id=Results%20of%20Operations%20(Income%20Statement)) [Net Interest Income](index=3&type=section&id=Net%20Interest%20Income) Net interest income grew **9.4%** to **$25.0 million**, but rising funding costs compressed net interest margin by **88 basis points** to **5.75%** Net Interest Income Analysis (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Net Interest Income** | $25.0 million | $22.8 million | +9.4% | | **Total Interest & Dividend Income** | $38.1 million | $28.5 million | +33.7% | | **Total Interest Expense** | $13.1 million | $5.7 million | +131.5% | | **Net Interest Margin** | 5.75% | 6.63% | -88 bps | - The decrease in net interest margin was due to the **increase in the cost of interest-bearing liabilities outpacing the increase in the yield on interest-earning assets**[26](index=26&type=chunk) [Credit Loss Expense](index=3&type=section&id=Credit%20Loss%20Expense) A **$165,000** credit loss expense reduction was recorded in Q1 2024 due to favorable economic trends, with minimal net charge-offs - A credit loss expense reduction of **$165,000** was recorded in Q1 2024, compared to an expense of **$1,000** in Q1 2023[27](index=27&type=chunk) - The reduction was primarily attributed to a **$145,000** credit for loans due to favorable economic trends[27](index=27&type=chunk) - Charge-offs were minimal at **$21,000**, consistent with the prior-year period, and related to unpaid overdrafts[28](index=28&type=chunk) [Non-Interest Income](index=3&type=section&id=Non-Interest%20Income) Non-interest income declined **50.3%** to **$554,000**, impacted by unrealized losses, lower loan fees, and wealth management disposition Non-Interest Income Breakdown (Q1 2024 vs Q1 2023) | Component | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Non-Interest Income** | $554,000 | $1,115,000 | -50.3% | | **Unrealized (Loss)/Gain on Equity Securities** | ($82,000) | $225,000 | -$307,000 | | **Other Loan Fees & Service Charges** | $462,000 | $607,000 | -$145,000 | | **Investment Advisory Fees** | $0 | $117,000 | -$117,000 | [Non-Interest Expense](index=4&type=section&id=Non-Interest%20Expense) Non-interest expense increased **18.2%** to **$9.7 million**, mainly due to higher salaries, employee benefits, and other operating costs - Total non-interest expense increased by **$1.5 million**, or **18.2%**, from **$8.2 million** in Q1 2023[33](index=33&type=chunk) - The primary drivers of the increase were salaries and employee benefits (**+$809,000**) and other operating expenses (**+$543,000**)[33](index=33&type=chunk) [Income Taxes](index=4&type=section&id=Income%20Taxes) Income tax expense was **$4.7 million** for the quarter, with an effective tax rate of **29.0%** Income Tax Summary (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Income Tax Expense** | $4.7 million | $4.5 million | | **Effective Tax Rate** | 29.0% | 28.7% | [Key Metrics and Risk Management](index=4&type=section&id=Key%20Metrics%20and%20Risk%20Management) [Asset Quality](index=4&type=section&id=Asset%20Quality) Asset quality remained strong with non-performing assets stable at **$5.8 million**, and the allowance for credit losses at **0.30%** of total loans - Non-performing assets were stable at **$5.8 million** at both March 31, 2024, and December 31, 2023[35](index=35&type=chunk) Asset Quality Ratios | Ratio | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Non-performing assets to total assets** | 0.31% | 0.33% | | **Allowance for credit losses to total loans** | 0.30% | 0.32% | [Capital](index=4&type=section&id=Capital) The company maintains a robust capital position, with a tier 1 leverage ratio of **14.65%**, and continues its stock repurchase program - The Bank's capital position is strong, with a tier 1 leverage capital ratio of **14.65%** and a total risk-based capital ratio of **13.78%** as of March 31, 2024[39](index=39&type=chunk) - The company is executing its second stock repurchase program, having bought back **1,015,980 shares** for **$16.0 million** under this plan as of March 31, 2024[41](index=41&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Financial Condition](index=6&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) This section provides the unaudited consolidated balance sheet as of March 31, 2024, detailing assets, liabilities, and stockholders' equity Consolidated Statements of Financial Condition (In thousands) | ASSETS | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total cash and cash equivalents | $107,448 | $68,671 | | Net loans | $1,649,647 | $1,581,804 | | **Total assets** | **$1,866,908** | **$1,764,135** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total deposits | $1,512,002 | $1,400,036 | | Borrowings | $47,000 | $64,000 | | **Total liabilities** | **$1,577,984** | **$1,484,810** | | **Total stockholders' equity** | **$288,924** | **$279,325** | | **Total liabilities and stockholders' equity** | **$1,866,908** | **$1,764,135** | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the unaudited consolidated income statement for Q1 2024 and Q1 2023, detailing revenues, expenses, and net income Consolidated Statements of Income (In thousands) | | Quarter Ended March 31, 2024 | Quarter Ended March 31, 2023 | | :--- | :--- | :--- | | Total Interest Income | $38,121 | $28,511 | | Total Interest Expense | $13,135 | $5,673 | | **Net Interest Income** | **$24,986** | **$22,838** | | Provision for credit loss | ($165) | $1 | | Total Non-Interest Income | $554 | $1,115 | | Total Non-Interest Expenses | $9,681 | $8,191 | | INCOME BEFORE PROVISION FOR INCOME TAXES | $16,024 | $15,761 | | PROVISION FOR INCOME TAXES | $4,650 | $4,517 | | **NET INCOME** | **$11,374** | **$11,244** | [Selected Consolidated Financial Data](index=8&type=section&id=Selected%20Consolidated%20Financial%20Data) This section summarizes key financial data, performance ratios, loan portfolio composition, asset quality, and regulatory capital ratios Selected Performance Ratios | Ratio | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Earnings per share - diluted | $0.86 | $0.77 | | Return on average total assets | 2.50% | 3.10% | | Return on average shareholders' equity | 15.88% | 16.98% | | Net interest margin | 5.75% | 6.63% | | Efficiency ratio | 37.91% | 34.20% | Selected Asset Quality and Capital Ratios (as of March 31, 2024) | Ratio | Value | | :--- | :--- | | Non-performing assets to total assets | 0.31% | | Tier 1 leverage ratio | 14.65% | | Total capital to risk-weighted assets | 13.78% | [Net Interest Margin Analysis](index=9&type=section&id=Net%20Interest%20Margin%20Analysis) This section details average balances, interest income/expense, and yields/costs for assets and liabilities, illustrating net interest margin Net Interest Margin Analysis Summary (Q1 2024 vs Q1 2023) | | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Average Yield on Interest-Earning Assets** | 8.77% | 8.28% | | **Average Cost of Interest-Bearing Liabilities** | 4.29% | 2.74% | | **Net Interest Spread** | 4.48% | 5.54% | | **Net Interest Margin** | 5.75% | 6.63% | [Company Information and Disclosures](index=5&type=section&id=Company%20Information%20and%20Disclosures) [About NorthEast Community Bancorp](index=5&type=section&id=About%20NorthEast%20Community%20Bancorp) NorthEast Community Bancorp is the holding company for **NorthEast Community Bank**, headquartered in **White Plains, New York**, operating eleven branches and three loan production offices - The company is the holding company for **NorthEast Community Bank** and is headquartered in **White Plains, New York**[42](index=42&type=chunk) [Forward Looking Statement](index=5&type=section&id=Forward%20Looking%20Statement) This section cautions that forward-looking statements are subject to **risks and uncertainties**, including **market interest rates**, **economic conditions**, and **regulatory policies** - The press release includes forward-looking statements subject to **risks and uncertainties**, including changes in **market interest rates**, **economic conditions**, and **regulatory policies**[43](index=43&type=chunk)

WHITE PLAINS, N.Y., April 25, 2024 (GLOBE NEWSWIRE) -- NorthEast Community Bancorp, Inc. (NASDAQ:NECB) (the "Company"), the parent holding company of NorthEast Community Bank (the "Bank"), reported net income of $11.4 million, or $0.87 per basic share and $0.86 per diluted share, for the three months ended March 31, 2024 compared to net income of $11.2 million, or $0.77 per basic and diluted share, for the three months ended March 31, 2023. Kenneth A. Martinek, NorthEast Community Bancorp's Chairman of the ...

Loan Portfolio - As of December 31, 2023, the construction loan portfolio consisted of 322 loans totaling $1.7 billion in committed amount, with outstanding disbursed balances of $1.2 billion and undisbursed loans in process of $486.3 million[39]. - At December 31, 2023, 88.1% of the loan portfolio, amounting to $1.4 billion, was secured by loans in the New York State/New York Metropolitan Area[29]. - The average committed amount for construction loans was $5.4 million, with outstanding disbursed balances of $3.8 million and undisbursed loans in process of $1.5 million at December 31, 2023[41]. - The largest outstanding construction loan at December 31, 2023, had a committed amount of $28.0 million and was performing according to its terms[42]. - As of December 31, 2023, the average balance of loans in the commercial and industrial loan portfolio was $639,000[48]. - The largest outstanding commercial and industrial loan was an unsecured line of credit with an outstanding balance of $10.0 million[49]. - Multifamily and mixed-use real estate loans to borrowers in the New York State/New York Metropolitan Area totaled $71.3 million as of December 31, 2023[53]. - Multifamily and mixed-use real estate loans to borrowers in the Massachusetts/Boston Metropolitan Area totaled $151.2 million as of December 31, 2023[54]. - The average debt-service coverage ratio for multifamily loans is 2.91x, and the average loan-to-value ratio is 31.2%[58]. - The average balance of loans in the non-residential loan portfolio was $621,000 as of December 31, 2023[71]. - The largest outstanding non-residential real estate loan had an outstanding balance of $2.2 million[71]. - The portfolio of consumer loans was $1.2 million, or 0.08% of total loans, primarily from checking accounts with overdrawn balances[73]. - At December 31, 2023, the company held $14.1 million in participation interests in construction loans originated by the bank[79]. - The bank's loans-to-one-borrower limit was approximately $38.3 million as of December 31, 2023[82]. - As of December 31, 2023, the company had approximately $14.0 million in Federal Home Loan Bank advances outstanding and the ability to borrow an additional $29.7 million[92]. - The company had $50.0 million in borrowings from the Federal Reserve Bank of New York with an available borrowing limit of $865.1 million as of December 31, 2023[93]. - At December 31, 2023, the construction loan portfolio has increased to $1.2 billion, representing 76.9% of total loans, up from $251.0 million or 39.8% in 2016[172]. - At December 31, 2023, multifamily, mixed-use, and non-residential real estate loans accounted for $249.7 million, or 15.8% of the loan portfolio[174]. - Construction loans represented 478% of the Bank's total risk-based capital at December 31, 2023, while multifamily, mixed-use, and non-residential real estate loans represented 98%[179]. - The company requires borrowers to fund an interest reserve account in advance for construction loans originated[173]. Revenue and Income Sources - The Bank's revenues are primarily derived from interest on loans, with additional income from deposit fees, service charges, and investment advisory fees[17]. - The Bank completed the sale of its investment advisory and financial planning services in January 2024, ceasing to generate investment advisory fees[18]. Competition and Market Conditions - The Bank faces significant competition from various financial institutions and non-depository financial service companies in attracting deposits and originating loans[27]. - Competition for loans in the New York and Massachusetts markets is intense, affecting the company's growth and profitability[189]. - The geographic concentration of the loan portfolio makes the company vulnerable to downturns in the New York Metropolitan Area and Boston Metropolitan Area[186]. - Recent bank failures, including Silicon Valley Bank and Signature Bank, have raised concerns about depositor confidence, which could lead to destabilizing deposit outflows across the banking industry[202]. Capital and Regulatory Compliance - The company exceeded the fully phased-in regulatory requirement for the capital conservation buffer as of December 31, 2023[108]. - The company’s capital requirements include a common equity Tier 1 capital to risk-based assets ratio of 4.5% and a total capital to risk-based assets ratio of 8%[105]. - The Bank is classified as "well capitalized" under FDIC regulations as of December 31, 2023, with a total risk-based capital ratio of 10.0% or greater[119]. - The FDIC's risk-based assessment system assigns insured institutions to risk categories, with assessment rates for banks with less than $10 billion in assets ranging from 1.5 to 30 basis points of total assets less tangible capital[128]. - The Dodd-Frank Act increased the minimum target Deposit Insurance Fund ratio from 1.15% to 1.35% of estimated insured deposits, which was exceeded by the FDIC in November 2018[129]. - The Bank's latest FDIC CRA rating was "Satisfactory," indicating compliance with the Community Reinvestment Act[135]. - The Bank's latest NYCRA rating was "Outstanding," reflecting strong performance in serving local credit needs[137]. - The FDIC requires institutions classified as undercapitalized to submit a capital restoration plan, which must be guaranteed by the controlling company[120]. - The Company is subject to capital adequacy guidelines similar to those of the FDIC, with a threshold for the "small bank holding company" exception raised to $3.0 billion[152]. Operational Risks and Management - The company faces significant operational risks due to the high volume of transactions processed, which includes potential fraud and compliance failures[196]. - The company relies heavily on its management team for strategy implementation, and the loss of key personnel could adversely affect operations and competitive positioning[205]. - The company must keep pace with technological advancements to remain competitive in the increasingly technology-driven financial services market[213]. - Cybersecurity threats pose significant risks to the company, as breaches could compromise sensitive data and adversely affect operations and reputation[211]. Liquidity Management - Effective liquidity management is critical for the company to meet customer loan requests and deposit withdrawals, with potential adverse effects if liquidity is not maintained[199]. - The company reported uninsured deposits totaling $344.8 million and available liquidity of $102.7 million, including $68.7 million in cash, as of December 31, 2023, which is sufficient to cover uninsured deposits[202]. - The company has a borrowing capacity of $865.1 million at the FRBNY, which could be utilized to manage liquidity needs[202]. Branch Operations and Expansion - The Bank operates through eleven branch offices and three loan production offices across New York and Massachusetts, focusing on community-oriented financial services[16]. - The company plans to expand its branch network from ten existing branches to capture growth opportunities in primary and adjacent markets, although this may negatively impact earnings due to initial costs and time required to generate revenue from new branches[197]. Investment Portfolio - The investment portfolio primarily consists of mutual funds, residential mortgage-backed securities, and municipal securities, with stated final maturities of 10 years or more for mortgage-backed securities[86]. - The company’s investment management policy aims to provide adequate liquidity to meet deposit outflows and anticipated increases in the loan portfolio[88]. - The company’s investment portfolio is designed to generate stable income and provide collateral for advances and repurchase agreements[88]. - The Bank's investment in the Federal Home Loan Bank of New York was $859,000 as of December 31, 2023, meeting compliance requirements[144]. Regulatory Changes and Compliance - The final rule amending CRA regulations will become effective on January 1, 2026, and includes a metrics-based approach to evaluating bank retail lending[136]. - The Bank is subject to federal consumer protection regulations that impose sanctions for non-compliance, including administrative fines and civil actions[138]. - The Federal Reserve Board has the authority to prohibit dividends if actions are deemed unsafe or unsound, emphasizing the need for sufficient net income to cover dividends[154]. - The Company is classified as an emerging growth company and may take advantage of exemptions from various reporting requirements until it exceeds $1.1 billion in annual gross revenues or other specified thresholds[161][162]. - The Company has terminated its license in Connecticut as of February 22, 2024, following the sale of all assets related to Harbor West Wealth Management Group[166]. - The Company is prohibited from acquiring more than 5% of voting stock in another savings association without prior approval from the Federal Reserve Board[147]. - The Company must submit a notice to the Federal Reserve Board for any acquisition of direct or indirect control of a savings and loan holding company[155].