Item 3. Legal Proceedings
ITEM 3. LEGAL PROCEEDINGS.
During the fiscal year ended December 31,
2023, except as set forth below, the Company was not involved in any material pending legal proceedings as a plaintiff or as a
defendant, other than routine legal proceedings occurring in the ordinary course of business. Management believes that those
routine legal proceedings involve, in the aggregate, amounts that are immaterial to the Company’s financial condition and
results of operations financial condition or results of operations.
In the fourth quarter of 2023, the Company
reached an agreement to settle two (2) purported class action lawsuits concerning the Company’s deposit products and related
disclosures, specifically involving overdraft fees and insufficient funds fees.
The matters, which asserted claims for
breach of contract including the covenant of good faith and fair dealing against the Company, were filed in the Massachusetts
Superior Court, County of Suffolk, on June 10, 2022 and July 29, 2022, respectively. Also in March 2022, the Company received from
the named plaintiff in one of the putative class action lawsuits a demand letter pursuant to the Massachusetts Consumer Protection
Act, M.G.L Ch. 93A (“Chapter 93A”). The demand letter sought restitution and debt forgiveness for the named plaintiff
and the putative class, plus double or treble damages and reasonable attorneys’ fees, as may be allowed under Chapter 93A.
The Bank retained outside litigation counsel in these matters, and discussions to find a mutually acceptable resolution, including
an arms-length mediation before a neutral mediator, proceeded between the parties.
On January 5, 2024, the cases were refiled
as a single action in federal court in Massachusetts, where the plaintiffs have moved for preliminarily approval of a class settlement,
under which the Bank expects to pay damages of approximately $510,000 in exchange for the dismissal with prejudice and release
of all claims that were or could have been asserted in the putative class action lawsuits on behalf of the plaintiffs and all putative
settlement class members. The proposed settlement remains subject to preliminary court approval, notice to class members, and final
court approval. The $510,000 in settlement expense was included in non-interest expense in the Company’s Consolidated Statements
of Net Income for the year ended December 31, 2023.
ITEM 4. MINE SAFETY DISCLOSURES.
n ot Applicable.
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PART II
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