12 unchanged sentences
The Bank offers a variety of retail deposit products to the general public in the areas surrounding its main office and its branch offices, with interest rates that are competitive with those of similar products offered by other financial institutions operating in its market area.
−Removed: The Bank also utilizes borrowings as a source of funds.
+Added: The Bank also utilizes wholesale deposits and borrowings as a source of funds.
The Bank’s revenues are derived primarily from interest on loans and, to a lesser extent, interest on investment securities and mortgage-backed securities.
22 unchanged sentences
The counties of Massachusetts in which the Danvers, Framingham, and Quincy offices currently operate include a mixture of rural, suburban and urban markets.
−Removed: The economies of these areas were historically based on manufacturing, but, similar to many areas of the country, the underpinnings of these economies are now more service oriented, with employment spread across many economic sectors including service, finance, health-care, technology, real estate and government.
+Added: The economies of these areas were historically based on manufacturing, but, similar to many areas of the country, the underpinnings of these economies are now more technological and service oriented, with employment spread across many economic sectors including service, finance, health-care, technology, real estate and government.
While our New York and Massachusetts markets have different economic characteristics, our customer base in these states tends to be similar and is comprised mostly of owners of low- to moderate-income apartment buildings or non-residential real estate in low- to moderate-income areas.
20 unchanged sentences
This lack of balance between supply and demand leads to available units being under contracts of sale or leases signed very soon after certificates of occupancy are received by the building owners.
−Removed: Generally, in homogeneous communities, units that are under construction have purchase contracts before they are complete.
+Added: Generally, in homogeneous communities, units that are under construction have purchase agreements before they are complete.
We will make construction loans on condominium buildings, containing between two to more than 250 units or for single family homes and single family housing developments of as many as 400 homes, in each case in high absorption and/or homogeneous areas.
2 unchanged sentences
Construction loans are typically for 18 to 36 month terms, pay interest only during that period, and are indexed to the prime rate plus a margin.
−Removed: All construction loans are underwritten on an “as is” basis and an “as completed” basis and must meet our normal loan to value ratio requirements.
+Added: All construction loans are underwritten on an “as is” basis and an “as completed” basis and must meet our normal loan to value ratio requirements for construction loans.
In addition, if construction loans are for condominiums, as a backstop, the project will be underwritten as if they will be rental properties.
−Removed: We generally require the borrower to contribute 50% of the total raw land acquisition cost.
+Added: We generally require the borrower to contribute 50% to 60% of the total raw land acquisition cost.
If an existing structure is to be demolished, the loan to value ratio will be limited to 50% of the improved land value alone.
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Construction loans in Bronx County consist primarily of loans to construct affordable rental apartment buildings containing between ten and 100 or more apartments.
−Removed: Most buildings are granted real estate tax abatements under New York City’s former 421- A program or an equivalent program due to the affordable nature of the apartments in the buildings.
+Added: Most buildings in the Bronx are granted real estate tax abatements under New York City’s former 421-A tax abatement program or the new 485-x tax abatement program approved on April 27, 2024 by New York State to replace the expired 421-A tax abatement program.
Our average construction loans range from $5.0 million to $10.0 million on buildings and complexes ranging from 20 to 40 units.
3 unchanged sentences
At December 31, 2024, if we were to count land, construction and development loans as separate loans, our construction loan portfolio consisted of 485 loans totaling $1.9 billion in committed amount, comprised of outstanding disbursed balances of $1.4 billion and undisbursed loans in process of $398.4 million.
−Removed: At December 31, 2023, if we were to combine land, construction and development loans as one loan on a project, our construction loan portfolio consisted of 322 loans totaling $1.7 billion in committed amount, comprised of outstanding disbursed balance of $1.2 billion and undisbursed loans in process of $486.3 million.
At December 31, 2024, the construction loan portfolio was comprised primarily of 483 New York construction loans with $1.9 billion in committed amount, comprising of outstanding disbursed balances of $1.4 billion and undisbursed loans in process of $398.3 million.
−Removed: All construction loans were performing according to their terms at December 31, 2023, except for two non-performing construction loans with an aggregate outstanding disbursed balance of $4.4 million secured by the same project located in the Bronx, New York.
−Removed: These two non-performing construction loans are in foreclosure.
+Added: The remaining two construction loans are located in New Jersey, with $10.6 million in committed amount, $10.5 million in disbursed amount, and undisbursed loans in process of $110,000.
+Added: At December 31, 2024, if we were to combine land, construction and development loans as one loan on a project, our construction loan portfolio consisted of 269 loans totaling $1.9 billion in committed amount, comprised of outstanding disbursed balance of $1.4 billion and undisbursed loans in process of $398.4 million.
+Added: All construction loans were performing according to their terms at December 31, 2024.
+Added: If we were to count land, construction and development loans as separate loans, the average loan size in our construction loan portfolio was $3.8 million in committed amount, comprised of outstanding disbursed balances of $2.9 million and undisbursed loans in process of $822,000 at December 31, 2024.
If we were to combine land, construction and development loans as one loan on a project, the average loan size in our construction loan portfolio was $5.4 million in committed amount, comprised of outstanding disbursed balances of $3.8 million and undisbursed loans in process of $1.5 million at December 31, 2024.
Our largest outstanding construction loan at December 31, 2024 had a committed amount of $27.2 million, an outstanding balance of $26.9 million, and an undisbursed available balance of $373,000.
−Removed: This loan was performing in accordance with its terms at December 31, 2023 and is secured by the development of a multi-family building located in the Bronx, New York that will include 111 apartment units with a first floor community space.
−Removed: Our largest committed construction loan project at December 31, 2023 was comprised of four loans with a total commitment of $43.6 million of which 50.0% of the commitment has been sold to another financial institution thereby reducing our committed portion to $21.8 million.
−Removed: Our portion of these construction loans had an outstanding balance of $17.4 million and an undisbursed available balance of $4.4 million at December 31, 2023 and was performing in accordance with its terms at December 31, 2023.
+Added: This loan was performing in accordance with its terms at December 31, 2024 and is secured by the development of a 110 apartment unit multi-family building located in the Bronx, New York.
+Added: Our largest committed construction loan project at December 31, 2024 was comprised of five loans with a total commitment of $49.2 million of which 50.0% of the commitment of four of the five loans has been sold to another financial institution thereby reducing our committed portion to $27.4 million.
+Added: Our portion of these construction loans had an outstanding balance of $26.7 million and an undisbursed available balance of $594,000 at December 31, 2024 and was performing in accordance with its terms at December 31, 2024.
These loans are secured by the development of a 160,000 square foot class A office building located in Monsey, New York.
−Removed: At December 31, 2023, our largest outstanding credit relationship with one borrower totaled $47.1 million, comprising of four construction loans with $31.2 million in committed amount, three commercial and industrial lines of credit with $15.0 million in committed amount, and five stand-by letters of credit with $855,000 in committed amount.
+Added: At December 31, 2024, our largest outstanding credit relationship with one borrower totaled $51.6 million, comprising of four construction loans with $33.1 million in committed amount, three commercial and industrial lines of credit with $15.0 million in committed amount, and six stand-by letters of credit with $3.5 million in committed amount.
Of the $51.6 million in committed amount, $11.2 million of the commitment in construction loans has been sold to two other financial institutions thereby reducing our committed portion to $40.4 million.
−Removed: Our portion of these construction loans had an outstanding balance of $17.5 million and undisbursed loans in process of $2.5 million at December 31, 2023.
+Added: Our portion of these construction loans had an outstanding balance of $18.8 million and undisbursed loans in process of $480,000 at December 31, 2024.
The three commercial and industrial lines of credit had an outstanding balance of $6.2 million and undisbursed available balance of $8.8 million at December 31, 2024.
−Removed: The five stand-by letters of credit have not been drawn upon.
+Added: The six stand-by letters of credit have not been drawn upon.
All of these loans were performing in accordance with their terms at December 31, 2024.
−Removed: At December 31, 2023, our largest outstanding committed construction loan relationship with one borrower totaled $37.6 million, comprising of four construction loans with $37.6 million in committed amount, an aggregate outstanding balance of $22.0 million, and undisbursed loans in process of $15.6 million.
+Added: At December 31, 2024, our largest outstanding committed construction loan relationship with one borrower totaled $45.9 million, of which $8.0 million of the commitment in construction loans has been sold to two other financial institutions thereby reducing our committed portion to $37.9 million.
+Added: Our portion of these construction loans had an outstanding balance of $31.6 million and undisbursed loans in process of $6.2 million at December 31, 2024.
All of these loans were performing in accordance with their terms at December 31, 2024.
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We provide credit to commercial and industrial businesses that are located within our market area.
−Removed: We also provide commercial and industrial loans to real estate developers in the New York Metropolitan Area.
+Added: We also provide commercial and industrial loans to real estate developers in the New York
+Added: Metropolitan Area.
Pursuant to our lending policy, we generally limit the aggregate of all loans and lines of credit (including unused commitments) to any one borrower to no more than 10% of our Tier 1 Capital.
−Removed: Our policy requires a
−Removed: guaranty of all owners of the borrower who own 20% or more of the business and we impose collateral requirements on our commercial and industrial loans.
+Added: Our policy requires a guaranty of all owners of the borrower who own 20% or more of the business and we impose collateral requirements on our commercial and industrial loans.
Interest rates and payments on our commercial and industrial loans are typically indexed to the prime rate as published in the Wall Street Journal and adjusted as the prime rate changes.
1 unchanged sentence
At December 31, 2024, the largest outstanding commercial and industrial loan was comprised of an unsecured line of credit with an outstanding balance of $10.0 million and no remaining available line of credit.
−Removed: This borrower also had one construction loan with an outstanding disbursed balance of $1.7 million with no remaining undisbursed available balance and two other commercial and industrial loans with aggregate outstanding balances of $1.3 million and remaining available line of credit of $750,000 at December 31, 2023.
−Removed: At December 31, 2023, our largest outstanding commercial and industrial line of credit relationship with one borrower was comprised of two lines of credit totaling $20.0 million, with no outstanding balances and remaining available lines of credit totaling $20.0 million.
−Removed: All the aforementioned commercial and industrial loans were performing according to their terms at December 31, 2023.
+Added: The borrower also has two other commercial and industrial loans with total lines of credit of $2.1 million, outstanding balances of $1.3 million, and remaining available line of credit of $750,000 at December 31, 2024.
+Added: In addition, this borrower has three construction loans with a total commitment of $16.0 million, an outstanding disbursed balance of $13.4 million, and undisbursed loans in process balance of $2.5 million at December 31, 2024.
+Added: At December 31, 2024, our largest outstanding commercial and industrial loan relationship with one borrower was comprised of five lines of credit totaling $9.7 million, outstanding balances of $5.4 million, and remaining available lines of credit totaling $4.3 million.
+Added: The borrower also has two commercial and industrial term loans with outstanding balances of $2.5 million at December 31, 2024.
+Added: In addition, the borrower has a mortgage loan secured by a non-residential property with an outstanding balance of $369,000 at December 31, 2024.
+Added: All the aforementioned commercial and industrial loans and mortgage loan were performing according to their terms at December 31, 2024.
Multifamily and Mixed-Use Real Estate Loans.
We offer adjustable-rate mortgage loans secured by multifamily and mixed-use real estate.
−Removed: These loans are comprised primarily of loans on moderate income apartment buildings located in our lending territory and include, loans on cooperative apartment buildings (in the New York area), and loans for Section 8 multifamily housing.
+Added: These loans are comprised primarily of loans on moderate income apartment buildings located in our lending territory and include;
+Added: loans on cooperative apartment buildings (in the New York area);
+Added: and loans for Section 8 multifamily housing.
In New York, most of the apartment buildings that we lend on are rent-stabilized or free market buildings.
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Maturities on these loans can be up to 15 years, and typically they amortize over a 20 to 30- year period.
−Removed: Interest rates on our adjustable-rate loans are adjusted to a rate that equals the applicable one-, two-, three- or five-year Federal Home Loan Bank (“FHLB”) of New York or FHLB of Boston advance rate plus a margin.
+Added: Interest rates on our adjustable-rate loans are adjusted to a rate that equals the applicable one-, two-, three- or five-year Federal Home Loan Bank (“FHLB”) of New York or FHLB of Boston advance
+Added: rate plus a margin.
The balloon loans have a maximum maturity of five years.
1 unchanged sentence
The typical multifamily or mixed-use real estate loan refinances within the first five-year period and, in doing so, generates prepayment penalties ranging from one to five points of the outstanding loan balance.
−Removed: Under our loan-refinancing program, borrowers who are current under the terms and conditions of their contractual obligations can
−Removed: apply to refinance their existing loans to the rates and terms then offered on new loans after the payment of their contractual prepayment penalties.
+Added: Under our loan-refinancing program, borrowers who are current under the terms and conditions of their contractual obligations can apply to refinance their existing loans to the rates and terms then offered on new loans after the payment of their contractual prepayment penalties.
In making multifamily and mixed-use real estate loans, we primarily consider the net operating income generated by the real estate to support the debt service, the borrower’s financial resources, the income level and managerial expertise of the borrower, the marketability of the property and our lending experience with the borrower.
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Our non-residential real estate loans are generally secured by office buildings, medical facilities, and retail shopping centers that are primarily located within our lending area.
−Removed: At December 31, 2023, our non-residential real estate loan portfolio was comprised mainly of $15.7 million of loans secured by properties in the New York State/New York Metropolitan Area, $3.9 million of loans secured by properties in the Massachusetts/Boston Metropolitan Area, and $1.5 million of loans secured by properties in Connecticut and New Jersey.
−Removed: We have de-emphasized the origination of non-residential real estate loans in recent years as we began increasing our origination of construction loans and multifamily loans.
+Added: At December 31, 2024, our non-residential real estate loan portfolio was comprised of $25.3 million of loans secured by properties in the New York State/New York Metropolitan Area, $3.1 million of loans secured by properties in the Massachusetts/Boston Metropolitan Area, and $993,000 of loans secured by properties in New Jersey.
Our non-residential real estate loans are structured in a manner similar to our multifamily and mixed-use real estate loans, typically at a fixed rate of interest for three to five years and then a rate that adjusts every three to five years over the term of the loan, which is typically 15 years.
Interest rates and payments on these loans generally are based on the one-, two-, three- or five-year FHLB of New York or FHLB of Boston advance rate plus a margin.
−Removed: The lifetime interest rate cap is five percentage points over the initial interest rate of the loan (four percentage points for loans with
−Removed: one-, two- and three-year terms).
+Added: interest rate cap is five percentage points over the initial interest rate of the loan (four percentage points for loans with one-, two- and three-year terms).
Loans are secured by first mortgages that generally do not exceed 75% of the property’s appraised value.
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At December 31, 2024, the largest outstanding non-residential real estate loan had an outstanding balance of $13.9 million and was performing in accordance with its terms.
−Removed: This loan is secured by three properties located in Brooklyn, New York consisting of a 17,850 square foot single story warehouse building, a 7,650 square foot single story bus maintenance garage, and a 0.39 acre paved parking lot.
−Removed: As of December 31, 2023, the average balance of loans in our non-residential loan portfolio was $621,000.
+Added: This loan is secured by a 50,000 square foot four story plus basement commercial building located in Blooming Grove, New York, with a kosher supermarket on the first floor and basement and offices on the second to fourth floors.
+Added: Based on 28 outstanding non-residential loans as of December 31, 2024, the average balance of non-residential loans was $1.1 million.
Consumer Loans.
−Removed: We offer personal loans, loans secured by savings accounts or certificates of deposit (share loans), and overdraft protection for checking accounts which is linked to statement savings accounts and has the ability to transfer funds from the statement savings account to the checking account when needed to cover overdrafts.
+Added: We offer personal loans and overdraft protection for checking accounts which is linked to statement savings accounts and has the ability to transfer funds from the statement savings account to the checking account when needed to cover overdrafts.
We no longer offer the overdraft protection for checking accounts linked to statement savings accounts.
We also consider any checking accounts with overdrawn balances as a consumer loan even though the customer typically deposits sufficient funds the next business day to cover the overdrawn balance.
−Removed: At December 31, 2023, our portfolio of consumer loans was $1.2 million, or 0.08% of total loans, comprised primarily of checking accounts with overdrawn balances of $1.2 million and lines for overdraft protection with balances of $10,000.
+Added: At December 31, 2024, our portfolio of consumer loans was $1.6 million, or 0.09% of total loans, comprised primarily of checking accounts with overdrawn balances of $1.6 million and one line for overdraft protection with a balance of $1,000.
Consumer loans may entail greater risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly.
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Historically, we have primarily originated our own loans and retained them in our portfolio.
−Removed: While in the past we purchased a limited number of participations from one financial institution that also serves high absorption areas in Brooklyn, New York, we currently do not have any purchased participation loan in our portfolio.
+Added: While in the past we purchased a limited number of participations from one financial institution that also serves high absorption areas in Brooklyn, New York, we currently do not have any purchased participation loans in our portfolio.
We also purchased whole residential and non-residential mortgage loans from a Massachusetts financial
1 unchanged sentence
At December 31, 2024, these whole purchased loans totaled $2.2 million and were performing according to their terms.
−Removed: We occasionally sell participations interests in construction loans we have originated in high absorption areas to other community banks in order to maintain compliance with our loans-to-one borrower limits.
+Added: We occasionally sell participation interests in construction loans we have originated in high absorption areas to other community banks in order to maintain compliance with our loans-to-one borrower limits.
We have also historically sold participation interests in our construction loans to the Company and we may continue to do so in the future.
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In addition, we utilize brokered, listing service and military deposits, which represent a viable and cost effective addition to our deposit gathering and maintenance strategy, often at a lower “all-in” cost when compared to our retail branch network.
−Removed: This strategy allows us to very effectively match the maturity of these deposits to the term of our construction loans, which make up a majority of the loans in our loan portfolio.
+Added: This strategy allows us to match the maturity of these deposits very effectively to the term of our construction loans, which make up a majority of the loans in our loan portfolio.
We may utilize advances from the Federal Home Loan Bank of New York to supplement our supply of lendable funds and to meet deposit withdrawal requirements.
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The Federal Home Loan Bank determines specific lines of credit for each member institution.
−Removed: We had approximately $14.0 million of Federal Home Loan Bank advances outstanding at December 31, 2023.
−Removed: At December 31, 2023, we had the ability to borrow an additional $29.7 million from the Federal Home Loan Bank of New York.
+Added: At December 31, 2024, we had no Federal Home Loan Bank advances outstanding and an available borrowing limit of $18.2 million.
The Federal Reserve Bank of New York (“FRBNY”) approved on August 30, 2023 the Bank’s eligibility to pledge loans under the Borrower-in-Custody program of the FRBNY thereby allowing the Bank to borrow from the Discount Window at the FRBNY.
−Removed: As of December 31, 2023, we had $50.0 million in FRBNY borrowings and an available borrowing limit of $865.1 million.
+Added: As of December 31, 2024, we had no FRBNY borrowings and an available borrowing limit of $834.7 million.
In addition, we are party to a loan agreement with Atlantic Community Bankers Bank under which we can borrow up to $8.0 million in short-term borrowings.
There were no outstanding borrowings with Atlantic Community Bankers Bank at December 31, 2024.
−Removed: Investment Advisory and Financial Planning Activities
−Removed: The Bank previously offered investment advisory and financial planning service under the name Harbor West Wealth Management Group, a division of the Bank through a networking arrangement with a registered broker-dealer and investment advisor.
−Removed: However, in January 2024, the Bank sold all assets relating to the Harbor West Wealth Management Group to a third party and no longer directly offers wealth management services.
Regulation and Supervision
20 unchanged sentences
Under New York State banking law, New York State-chartered stock form savings banks and commercial banks may declare and pay dividends out of their net profits, unless there is an impairment of capital.
−Removed: Approval of the
−Removed: Superintendent is required if the total of all dividends declared by the bank in a calendar year would exceed the total of its net profits for that year combined with its retained net profits for the preceding two years, less prior dividends paid.
+Added: Approval of the Superintendent is required if the total of all dividends declared by the bank in a calendar year would exceed the total of its net profits for that year combined with its retained net profits for the preceding two years, less prior dividends paid.
New York State banking law gives the Superintendent authority to issue an order to a New York State-chartered banking institution to appear and explain an apparent violation of law, to discontinue unauthorized or unsafe practices, and to keep prescribed books and accounts.
−Removed: Upon a finding by the New York State Department of Financial Services that any director, trustee, or officer of any banking organization has violated any law, or has continued unauthorized or unsafe practices in conducting the business of the banking organization after having been notified by the Superintendent to discontinue such practices, such director, trustee, or officer may be removed from office after notice and an opportunity to be heard.
+Added: Upon a finding by the New York State Department of Financial Services that any director, trustee, or officer of any banking organization has violated any law, or has continued unauthorized or unsafe practices in conducting the business of the banking organization after having been notified by the Superintendent
+Added: to discontinue such practices, such director, trustee, or officer may be removed from office after notice and an opportunity to be heard.
The Superintendent also has authority to appoint a conservator or a receiver for a savings or commercial bank under certain circumstances.
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The Economic Growth, Regulatory Relief, and Consumer Protection Act enacted in May 2018 required the federal banking agencies, including the FDIC, to establish for banks with assets of less than $10 billion of assets a community bank leverage ratio (the ratio of a bank’s tangible equity capital to average total consolidated assets) of 8 to 10%.
−Removed: A qualifying community bank with capital meeting the specified requirements (including off balance sheet exposures of 25% or less of total assets and trading assets and liabilities of 5% or less of total assets) and electing to follow the alternative framework is considered to meet all applicable regulatory capital requirements including the risk-
−Removed: based requirements.
+Added: A qualifying community bank with capital meeting the specified requirements (including off balance sheet exposures of 25% or less of total assets and trading assets and liabilities of 5% or less of total assets) and electing to follow the alternative framework is considered to meet all applicable regulatory capital requirements including the risk-based requirements.
The community bank leverage ratio was established at 9%, effective January 1, 2021.
2 unchanged sentences
As of December 31, 2024, the Bank had not elected the community bank leverage ratio alternative reporting framework.
−Removed: The Federal Deposit Insurance Corporation Improvement Act required each federal banking agency to revise its risk-based capital standards for insured institutions to ensure that those standards take adequate account of interest-rate risk, concentration of credit risk, and the risk of nontraditional activities, as well as to reflect the actual performance and expected risk of loss on multifamily residential loans.
+Added: The Federal Deposit Insurance Corporation Improvement Act required each federal banking agency to revise its risk-based capital standards for insured institutions to ensure that those standards take adequate account of interest-rate
+Added: risk, concentration of credit risk, and the risk of nontraditional activities, as well as to reflect the actual performance and expected risk of loss on multifamily residential loans.
The FDIC, along with the other federal banking agencies, adopted a regulation providing that the agencies will take into account the exposure of a bank’s capital and economic value to changes in interest rate risk in assessing a bank’s capital adequacy.
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Section 22(h) of the Federal Reserve Act also requires that loans to directors, executive officers and principal stockholders be made on terms and conditions substantially the same as offered in comparable transactions to persons who are not insiders and also requires prior board approval for certain loans.
−Removed: In addition, the aggregate amount of
−Removed: extensions of credit by a financial institution to insiders cannot exceed the institution’s unimpaired capital and surplus.
+Added: In addition, the aggregate amount of extensions of credit by a financial institution to insiders cannot exceed the institution’s unimpaired capital and surplus.
Section 22(g) of the Federal Reserve Act places additional restrictions on loans to executive officers.
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The CRA does not establish specific lending requirements or programs for financial institutions nor does it limit an institution’s discretion to develop the types of products and services that it believes are best suited to its particular community, consistent with the CRA.
−Removed: The CRA does require the FDIC, in connection with its examination of a non-member bank, to assess the institution’s record of meeting the credit needs of its community and to take such record into account in its evaluation of certain applications by such institution, including applications to acquire branches and other
−Removed: financial institutions.
+Added: The CRA does require the FDIC, in connection with its examination of a non-member bank, to assess the institution’s record of meeting the credit needs of its community and to take such record into account in its evaluation of certain applications by such institution, including applications to acquire branches and other financial institutions.
The CRA requires the FDIC to provide a written evaluation of an institution’s CRA performance utilizing a four-tiered descriptive rating system.
−Removed: The Bank’s latest FDIC CRA rating was “Satisfactory”.
+Added: The Bank’s latest FDIC CRA rating was “Outstanding.”
On October 24, 2023, the FDIC, the OCC and the Federal Reserve issued a final rule amending the agencies’ CRA regulations.
The final rule (i) encourages banks to expand access to credit, investment and banking services in low- and moderate-income communities, (ii) adapts to changes in the banking industry, including mobile and online banking, (iii) provides greater clarity and consistency in the application of CRA regulations and (iv) tailors CRA evaluations and data collection to bank size and type.
−Removed: Under the final rule, the agencies will evaluate bank performance across the varied activities they conduct and communities in which they operate so that the CRA continues to be an effective tool to address inequities in access to credit and financial services.
+Added: Under the final rule, the agencies will evaluate bank performance
+Added: across the varied activities they conduct and communities in which they operate so that the CRA continues to be an effective tool to address inequities in access to credit and financial services.
The final rule also updates existing CRA regulations to evaluate lending outside traditional assessment areas generated by the growth of non-branch delivery systems, such as online and mobile banking, branchless banking, and hybrid models.
14 unchanged sentences
Further, certain provisions of Title III impose affirmative obligations on a broad range of financial institutions, including banks, thrifts, brokers, dealers, credit unions, money transfer agents, and parties registered under the Commodity Exchange Act.
+Added: In July 2024, the federal banking agencies, including the Federal Reserve and OCC, proposed amendments to update the requirements for supervised institutions to establish, implement and maintain effective, risk-based and reasonably designed anti-money laundering and countering the financing of terrorism (“CFT”) programs.
+Added: The proposed amendments would require supervised institutions to identify, evaluate and document the regulated institution’s money laundering, terrorist financing and other illicit finance activity risks, as well as consider, as appropriate, the U.S.
+Added: Department of Treasury’s Financial Crimes Enforcement Network’s (“FinCEN”) published national anti-money laundering and CFT priorities.
+Added: Cybersecurity.
+Added: The Cybersecurity Information Sharing Act (the “CISA”) is intended to improve cybersecurity in the U.S.
+Added: through sharing of information about security threats between the U.S.
+Added: government and private sector organizations, including financial institutions such as the Company.
+Added: The Cybersecurity Information Sharing Act also authorizes companies to monitor their own systems, notwithstanding any other provision of law, and allows companies to carry out defensive measures on their own systems from potential cyber-attacks.
+Added: The federal bank regulators have adopted rules providing for new notification requirements for banking organizations and their service providers for significant cybersecurity incidents.
+Added: Specifically, the new rules require a banking organization to notify its primary federal regulator as soon as possible, and no later than 36 hours after, the banking organization determines that a "computer-security incident" rising to the level of a "notification incident" has occurred.
+Added: Notification is required for incidents that have materially affected or are reasonably likely to materially affect
+Added: the viability of a banking organization's operations, its ability to deliver banking products and services, or the stability of the financial sector.
+Added: Service providers are required under the rule to notify affected banking organization customers as soon as possible when the provider determines that it has experienced a computer-security incident that has materially affected or is reasonably likely to materially affect the banking organization's customers for four or more hours.
+Added: Cybersecurity and data privacy are also areas of increasing state legislative focus.
+Added: For example, under California state law, the California Consumer Privacy Act (“CCPA”) broadly defines personal information and substantially increases the rights of California residents to understand how their personal information is collected, used, and otherwise processed by commercial businesses, such as affording them the right to access and request deletion of their information and to opt out of certain sharing and sales of personal information.
+Added: The CCPA contemplates civil penalties of up to $2,500 for each violation and up to $7,500 for each intentional violation and includes a private right of action (permitting lawsuits to be brought by private individuals instead of the state Attorney General or other government actor for certain breaches).
+Added: Numerous other states have enacted, or are considering enacting, comprehensive data privacy laws that share similarities with the CCPA.
+Added: In addition, laws in all 50 U.S.
+Added: states require businesses to provide notice under certain circumstances to consumers whose personal information has been disclosed as a result of a data breach.
Other Regulations.
16 unchanged sentences
The Bank complied with the foregoing requirements during 2019.
−Removed: On March 15, 2020, the Federal Reserve Board reduced reserve requirement to 0% effective as of March 26, 2020, which eliminated reserve requirements for all depository institutions.
+Added: March 15, 2020, the Federal Reserve Board reduced reserve requirement to 0% effective as of March 26, 2020, which eliminated reserve requirements for all depository institutions.
Federal Home Loan Bank System.
1 unchanged sentence
The Federal Home Loan Bank provides a central credit facility primarily for member institutions.
−Removed: At December 31, 2023, the Bank had a maximum borrowing capacity from the Federal Home Loan Bank of New York of $43.7 million comprising of $29.7 million in available borrowings and $14.0 million in outstanding borrowings.
+Added: At December 31, 2024, the Bank had a maximum borrowing capacity of $18.2 million from the Federal Home Loan Bank of New York.
The Bank, as a member of the Federal Home Loan Bank of New York, is required to acquire and hold shares of capital stock in that Federal Home Loan Bank.
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A savings and loan holding company is also prohibited from acquiring more than 5% of a company engaged in activities other than those authorized by federal law or acquiring or retaining control of a depository institution that is not insured by the FDIC.
−Removed: evaluating applications by holding companies to acquire savings associations, the Federal Reserve Board must consider the financial and managerial resources and future prospects of the company and institution involved, the effect of the acquisition on the risk to the insurance funds the convenience and needs of the community and competitive factors.
+Added: In evaluating applications by holding companies to acquire savings associations, the Federal Reserve Board must consider the financial and managerial resources and future prospects of the company and institution involved, the effect of the acquisition on the risk to the insurance funds the convenience and needs of the community and competitive factors.
The Federal Reserve Board is prohibited from approving any acquisition that would result in a multiple savings and loan holding company controlling savings associations in more than one state, except:
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Emerging Growth Company Status
−Removed: The Company is an emerging growth company and, for so long as it continues to be an emerging growth company, the Company may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to “emerging growth companies,” including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
+Added: The Company is an emerging growth company and, for so long as it continues to be an emerging growth company, the Company may choose to take advantage of exemptions from various reporting requirements applicable to
+Added: other public companies but not to “emerging growth companies,” including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
As an emerging growth company, the Company is not subject to Section 404(b) of the Sarbanes-Oxley Act of 2002, which would require that our independent auditors review and attest as to the effectiveness of our internal control over financial reporting.
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or (iv) the end of any fiscal year in which the market value of our common stock held by non-affiliates exceeded $700 million at the end of the second quarter of that fiscal year.
−Removed: At December 31, 2023, we had 135 full-time employees and six part-time employees, none of whom are represented by a collective bargaining unit.
+Added: At December 31, 2024, we had 136 full-time employees and seven part-time employees, none of whom are represented by a collective bargaining unit.
We believe our relationship with our employees is good.
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New England Commercial Properties LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in October 2007 to facilitate the purchase or lease of real property by the Bank.
−Removed: New England Commercial Properties, LLC currently owns one foreclosed property located in Pennsylvania.
+Added: New England Commercial Properties, LLC currently owns one foreclosed property located in the Bronx, New York and one foreclosed property located in Pittsburgh, Pennsylvania.
NECB Financial Services Group, LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in the third quarter of 2012 as a complement to Harbor West Wealth Management Group to sell life insurance and fixed rate annuities.
−Removed: NECB Financial Services Group, LLC is licensed in New York State.
−Removed: We terminated our license in Connecticut on February 22, 2024 due to the sale of all the Bank’s assets relating to Harbor West Wealth Management Group to a third party in January 2024.
+Added: NECB Financial Services Group, LLC is licensed in New York State but terminated its license in Connecticut on February 22, 2024 due to the sale of all the Bank’s assets relating to Harbor West Wealth Management Group to a third party in January 2024.
+Added: This subsidiary is currently inactive.
72 West Eckerson LLC , a New York limited liability company and wholly owned subsidiary of the Bank, was formed in April 2015 to facilitate the purchase or lease of real property by the Bank and currently owns the Bank branch locations in Spring Valley, New York and Monroe, New York.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.