SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a)
of the Securities
Exchange Act of 1934 (Amendment No.
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Filed by the
Registrant x
Filed by a Party
other than the Registrant o
Check the appropriate box: |
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Preliminary Proxy Statement |
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
x |
Definitive Proxy Statement |
o |
Definitive Additional Materials |
o |
Soliciting Material under §240.14a-12 |
NORTHEAST
COMMUNITY BANCORP, INC.
(Name of Registrant as Specified in Its
Charter)
(Name of Person(s)
Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate
box):
| o | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
| 1. | Title of each class of securities to which transaction applies: |
N/A
| 2. | Aggregate number of securities to which transaction applies: |
N/A
| 3. | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on
which the filing fee is calculated and state how it was determined): |
N/A
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4. |
Proposed maximum aggregate value of transaction: |
N/A
N/A
| o | Fee paid previously with preliminary materials. |
| o | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and
the date of its filing. |
| 1. | Amount Previously Paid: |
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| 2. | Form, Schedule or Registration Statement No.: |
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N/A
April 13, 2015
Dear Stockholder:
You are cordially invited
to attend the annual meeting of stockholders of NorthEast Community Bancorp, Inc. The meeting will be held at the Westchester Marriott
Hotel, 670 White Plains Road, Tarrytown, New York on Wednesday, May 20, 2015 at 9:00 a.m., local time.
The notice of annual meeting
and proxy statement appearing on the following pages describe the formal business to be transacted at the meeting. Officers and
directors of the Company, as well as a representative of BDO USA, LLP, the Company’s independent registered public accountants,
will be present to respond to appropriate questions of stockholders.
It is important that your
shares are represented at this meeting, whether or not you attend the meeting in person and regardless of the number of shares
you own. To make sure your shares are represented, we urge you to complete and mail the enclosed proxy card. If you attend the
meeting, you may vote in person even if you have previously mailed a proxy card.
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We look forward to seeing you at the meeting. |
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Sincerely, |
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/s/ Kenneth A. Martinek |
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Kenneth A. Martinek |
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Chairman and Chief Executive Officer |
Important Notice Regarding Attending the
Meeting
and Voting Shares Held in Street Name
If your shares are registered
directly in your name at our transfer agent, Computershare, Inc., you will need photo identification to be admitted to the annual
meeting.
If you hold your shares
in street name, you will need photo identification and proof of ownership to be admitted to the annual meeting. Examples
of proof of ownership include a recent brokerage statement or letter from a bank or broker. If you want to vote your shares of
NorthEast Community Bancorp common stock held in street name in person at the annual meeting, you must obtain a written proxy in
your name from the broker, bank or other holder of record of your shares.
325 Hamilton Avenue
White Plains, New York 10601
(914) 684-2500
____________________
NOTICE OF 2015 annual
meeting OF STOCKHOLDERS
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TIME AND DATE |
9:00 a.m. on Wednesday, May 20, 2015 |
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PLACE |
Westchester Marriott Hotel |
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670 White Plains Road |
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Tarrytown, New York |
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ITEMS OF BUSINESS |
(1) |
To elect three directors to serve for a term of three years; |
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(2) |
To ratify the appointment of BDO USA, LLP as our independent registered public accounting firm for fiscal year 2015; and |
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(3) |
To transact other business as may properly come before the meeting and any adjournment or postponement thereof. |
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RECORD DATE |
In order to vote, you must have been a stockholder at the close of business on March 27, 2015. |
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PROXY VOTING |
It is important that your shares be represented and voted at the meeting. You can vote your shares by completing and returning the proxy card or voting instruction card sent to you. Voting instructions are printed on your proxy card or voting instruction card. You can revoke a proxy at any time prior to its exercise at the meeting by following the instructions in the proxy statement. |
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/s/ Anne Stevenson-DeBlasi |
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Anne Stevenson-DeBlasi |
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Corporate Secretary |
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April 13, 2015 |
IMPORTANT: Whether or not you plan to attend
the annual meeting, please vote by marking, signing, dating and promptly returning the enclosed proxy card in the enclosed envelope.
NORTHEAST COMMUNITY BANCORP, INC.
PROXY STATEMENT
GENERAL INFORMATION
We are providing this proxy
statement to you in connection with the solicitation of proxies by the Board of Directors of NorthEast Community Bancorp, Inc.
for the 2015 annual meeting of stockholders and for any adjournment or postponement of the meeting. NorthEast Community Bancorp
is the holding company for NorthEast Community Bank.
We are holding the 2015
annual meeting at the Westchester Marriott Hotel, 670 White Plains Road, Tarrytown, New York on Wednesday, May 20, 2015 at 9:00
a.m., local time.
We intend to mail this
proxy statement and the enclosed proxy card to stockholders of record beginning on or about April 13, 2015.
INFORMATION ABOUT VOTING
Who Can Vote at the Meeting
You are entitled to vote
the shares of NorthEast Community Bancorp common stock that you owned as of the close of business on March 27, 2015. As of the
close of business on March 27, 2015, a total of 12,249,302 shares of NorthEast Community Bancorp common stock were outstanding,
including 7,273,750 shares of common stock held by NorthEast Community Bancorp, MHC (the “MHC”). Each share of common
stock has one vote.
Ownership of Shares; Attending the Meeting
You may own shares of NorthEast Community Bancorp
in one or more of the following ways:
| · | Directly in your name as the stockholder of record; |
| · | Indirectly through a broker, bank or other holder of record in “street name;” or |
| · | Indirectly through the NorthEast Community Bank Employee
Stock Ownership Plan (“ESOP”). |
If your shares are registered
directly in your name at our transfer agent, Computershare, Inc., you are the holder of record of these shares and we are sending
these proxy materials directly to you. As the holder of record, you have the right to give your proxy directly to us or to vote
in person at the annual meeting. If you plan to attend the annual meeting you must bring photo identification to be admitted
to the meeting.
If you hold your shares
in street name, your broker, bank or other holder of record is sending these proxy materials to you. As the beneficial owner, you
have the right to direct your broker, bank or other holder of record how to vote by filling out a voting instruction form that
accompanies your proxy materials. Your broker, bank or other holder of record may allow you to provide voting instructions by telephone
or by the Internet. Please see the voting instruction form provided by your broker, bank or other holder of record that accompanies
this proxy statement. If you hold your shares in street name, you will need photo identification and proof of ownership to be
admitted to the annual meeting. Examples of proof of ownership include a recent brokerage statement or letter from a bank or
broker. If you want to vote your shares of NorthEast Community Bancorp common stock held in street name in person at the annual
meeting, you must obtain a written proxy in your name from the broker, bank or other holder of record of your shares. If you hold
shares through the ESOP or the NorthEast Community Bank 401(k) Plan (the “401(k) Plan”) you will receive a voting instruction
card for each plan in which you participate that reflects all shares that you may direct the trustee to vote on your behalf under
such plan.
For information on your voting rights as a participant
under the ESOP or the 401(k) Plan, see “—Participants in the Bank’s ESOP or 401(k) Plan.”
Quorum and Votes Required
Quorum. We
will have a quorum and will be able to conduct the business of the annual meeting if the holders of a majority of the outstanding
shares of common stock entitled to vote are present at the meeting, either in person or by proxy.
Vote Required for
Proposals. At this year’s annual meeting, stockholders will elect three directors to each serve a term of three years.
In voting on the election of directors, you may vote in favor of all the nominees for director, withhold votes as to all nominees,
or withhold votes as to specific nominees. There is no cumulative voting for the election of directors. Directors must be elected
by a plurality of the votes cast at the annual meeting. This means that the three nominees receiving the greatest number of votes
will be elected.
In voting on the ratification
of the appointment of BDO USA, LLP as the Company’s independent registered public accounting firm, you may vote in favor
of the proposal, vote against the proposal or abstain from voting. To approve this matter, the affirmative vote of the majority
of the shares represented at the meeting and entitled to vote at the annual meeting is required.
Effect of Not Casting
Your Vote. If you hold your shares in street name it is critical that you cast your vote if you want it to count in the
election of directors (Item 1 of this Proxy Statement). Current regulation restricts the ability of your bank or broker to vote
your uninstructed shares on this matter on a discretionary basis. Thus, if you hold your shares in street name and you do not instruct
your bank or broker how to vote on this matter, no votes will be cast on your behalf. These are referred to as broker non-votes.
Your bank or broker does, however, have discretion to vote any uninstructed shares on the ratification of the appointment of the
Company’s independent registered public accounting firm (Item 2 of this Proxy Statement).
How We Count Votes.
If you return valid proxy instructions or attend the meeting in person, we will count your shares for purposes of determining whether
there is a quorum, even if you abstain from voting. Broker non-votes, if any, also will be counted for purposes of determining
the existence of a quorum.
In the election of directors,
votes withheld and broker non-votes will have no effect on the outcome of the election. In counting votes on the proposal to ratify
the appointment of the independent registered public accounting firm, abstentions and broker non-votes will have the same effect
as a vote against the proposal.
Because NorthEast Community
Bancorp, MHC owns in excess of 50% of the outstanding shares of NorthEast Community Bancorp, Inc. common stock, the votes it casts
will ensure the presence of a quorum and control the outcome of the vote on all proposals.
Voting by Proxy
The Company’s Board
of Directors is sending you this proxy statement to request that you allow your shares of Company common stock to be represented
at the annual meeting by the persons named on the enclosed proxy card. All shares of Company common stock represented at the meeting
by properly executed and dated proxy cards will be voted according to the instructions indicated on the proxy card. If you sign,
date and return a proxy card without giving voting instructions, your shares will be voted as recommended by the Company’s
Board of Directors.
The Board of Directors recommends that you
vote:
| · | “FOR” each of the nominees for director; and |
| · | “FOR” ratification of the appointment of BDO USA, LLP as the Company’s independent registered public accounting
firm. |
If any matters not described
in this proxy statement are properly presented at the annual meeting, the persons named in the proxy card will use their judgment
to determine how to vote your shares. This includes a motion to adjourn or postpone the annual meeting in order to solicit additional
proxies. If the annual meeting is postponed or adjourned, your Company common stock may be voted by the persons named in the proxy
card on the new annual meeting date, provided you have not revoked your proxy. We do not know of any other matters to be presented
at the annual meeting.
You may revoke your proxy
at any time before the vote is taken at the meeting. To revoke your proxy, you must either advise the Corporate Secretary of the
Company in writing before your common stock has been voted at the annual meeting, deliver a later dated proxy or attend the meeting
and vote your shares in person. Attendance at the annual meeting will not itself constitute revocation of your proxy.
Participants in the Bank’s ESOP
or 401(k) Plan
If you participate in the
NorthEast Community Bank Employee Stock Ownership Plan (the “ESOP”) or if you hold Company common stock through the
NorthEast Community Bank 401(k) Plan (the “401(k) Plan”), you will receive a voting instruction card for each plan
in which you participate that reflects all shares that you may direct the trustee to vote on your behalf under such plan. Under
the terms of the ESOP, the ESOP trustee votes all shares held by the ESOP, but each ESOP participant may direct the trustee how
to vote the shares of common stock allocated to his or her account. The ESOP trustee, subject to the exercise of its fiduciary
duties, will vote all unallocated shares of Company common stock held by the ESOP and all allocated shares for which no voting
instructions are received in the same proportion as shares for which the trustee has received timely voting instructions. Under
the terms of the 401(k) Plan, a participant is entitled to direct the trustee how to vote the shares in the NorthEast Community
Bancorp, Inc. Stock Fund credited to his or her account. If the 401(k) Plan trustee does not receive timely voting instructions
for the shares of Company common stock held in the 401(k) Plan, the shares will not be voted. The deadline for returning your
voting instructions to each plan’s trustee is May 13, 2015.
CORPORATE GOVERNANCE AND BOARD MATTERS
Director Independence
The Company’s Board
of Directors currently consists of nine members, all of whom are independent under the listing requirements of The NASDAQ Stock
Market, except for Kenneth A. Martinek, Chief Executive Officer of the Company and the Bank, Jose M. Collazo, President and Chief
Operating Officer of the Company and the Bank and Charles A. Martinek, Vice President and Chief Compliance Officer of the Bank
and brother of Kenneth A. Martinek. In determining the independence of its directors, the Board considered transactions, relationships
and arrangements between the Company and its directors that are not required to be disclosed in this proxy statement under the
heading “Transactions with Related Persons,” including: (i) consultant services provided to the Bank by director
Kenneth H. Thomas; (ii) legal services provided to the Bank by a law firm in which director Diane B. Cavanaugh’s husband
is a partner; and (iii) legal services provided to the Bank by Eugene M. Magier.
Board Leadership Structure
The Company’s Board
of Directors endorses the view that one of its primary functions is to protect stockholders’ interests by providing independent
oversight of management, including the Chief Executive Officer. However, the Board does not believe that mandating a particular
structure, such as designating an independent lead director or having a separate Chairman and Chief Executive Officer, is necessary
to achieve effective oversight. The Board of the Company is currently comprised of ten directors, seven of whom are independent
directors under the listing standards of The NASDAQ Global Market. The Chairman of the Board has no greater nor lesser vote on
matters considered by the Board than any other director, and the Chairman does not vote on any related party transaction. All directors
of the Company, including the Chairman, are bound by fiduciary obligations, imposed by law, to serve the best interests of the
stockholders. Accordingly, separating the offices of Chairman and Chief Executive Officer would not serve to enhance or diminish
the fiduciary duties of any director of the Company.
The Chairman of the Board
and Chief Executive Officer positions are held by the same person, due in part to the fact that the Chief Executive Officer is
the Director most familiar with the Company’s business and industry and is best situated to lead discussions on important
matters affecting the business of the Company. Combining the Chief Executive Officer and Chairman positions creates a firm link
between the Company’s management and the Board and promotes the development and implementation of sound corporate strategy.
The Chairman of the Board provides leadership to the Board and works with the Board to define its structure and activities in the
fulfillment of its responsibilities. The Board of Directors does not currently have a lead director position. As a result of the
current structure of the Board, the independent members of the Board work together to provide strong, independent oversight of
the Company’s management and affairs through the Audit, Compensation and Nominating/Corporate Governance Committees and,
when necessary, special meetings of independent directors.
The Board’s Role in Risk Oversight
Risk is inherent with every
business, and how well a business manages risk can ultimately determine its success. We face a number of risks, including credit
risk, interest rate risk, liquidity risk, operational risk, strategic risk and reputation risk. Management is responsible for the
day-to-day management of risks the Company faces, while the Board, as a whole and through its committees, has responsibility for
the oversight of risk management. In its risk oversight role, the Board of Directors has the responsibility to satisfy itself that
the risk management processes designed and implemented by management are adequate and functioning as designed. To do this, the
Board meets regularly with management to discuss strategy and risks facing the Company. Senior management attends the Board meetings
and is available to address any questions or concerns raised by the Board on risk management and any other matters. The independent
members of the Board work together to provide strong, independent oversight of the Company’s management and affairs through
its standing committees and, when necessary, special meetings of independent directors.
Committees of the Board of Directors
The following table identifies
the members of our Audit, Compensation, and Nominating/Corporate Governance Committees as of December 31, 2014. All members of
each committee are independent in accordance with the listing requirements of The NASDAQ Global Market. Each of the committees
operates under a written charter that is approved by the Board of Directors. Each committee reviews and reassesses the adequacy
of its charter at least annually. The charters of all three committees are available in the Investor Relations section of the Company’s
website, www.necommunitybank.com.
Director | |
Audit Committee | |
Compensation Committee | |
Nominating/
Corporate Governance Committee |
Diane B. Cavanaugh | |
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X* | |
X |
Arthur M. Levine | |
X* | |
X | |
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Eugene M. Magier | |
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X |
John F. McKenzie | |
X | |
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Harry (Jeff) A.S. Read(1) | |
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X | |
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Linda M. Swan | |
X | |
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Kenneth H. Thomas | |
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X* |
Number of Meetings in 2014 | |
7 | |
1 | |
1 |
| (1) | Mr. Read passed away on January 26, 2015. |
Audit Committee
The Audit Committee assists
the Board of Directors in its oversight of the Company’s accounting and reporting practices, the quality and integrity of
the Company’s financial reports and the Company’s compliance with applicable laws and regulations. The Audit Committee
is also responsible for engaging the Company’s independent registered public accounting firm and monitoring its conduct and
independence. The Board of Directors has determined that Arthur M. Levine is an audit committee financial expert under the rules
of the Securities and Exchange Commission. The report of the Audit Committee required by the rules of the Securities and Exchange
Commission is included in this proxy statement. See “Report of the Audit Committee.”
Compensation Committee
The Compensation Committee
approves the compensation objectives for the Company and the Bank and establishes the compensation for the Chief Executive Officer
and other executives. Our Chief Executive Officer makes recommendations to the Compensation Committee from time to time regarding
the appropriate mix and level of compensation for other executives. Those recommendations consider the objectives of our compensation
philosophy and the range of compensation programs authorized by the Compensation Committee. The Compensation Committee reviews
all compensation components for the Company’s Chief Executive Officer and other highly compensated executive officers’
compensation including base salary, annual incentive, long-term incentives and other perquisites. In addition to reviewing competitive
market values, the Compensation Committee also examines the total compensation mix, pay-for-performance relationship, and how all
elements, in the aggregate, comprise the executive’s total compensation package. Decisions by the Compensation Committee
with respect to the compensation of executive officers are approved by the full Board of Directors. The Compensation Committee
also assists the Board of Directors in evaluating potential candidates for executive positions.
Nominating/Corporate Governance Committee
The
Company’s Nominating/Corporate Governance Committee assists the Board of Directors in identifying qualified individuals to
serve as Board members, in determining the composition of the Board of Directors and its committees, in monitoring a process to
assess Board effectiveness and in developing and implementing the Company’s corporate governance guidelines. The Nominating/Corporate
Governance Committee also considers and recommends the nominees for director to stand for election at the Company’s annual
meeting of stockholders. Further, when identifying nominees to serve as director, the Nominating/Corporate Governance Committee
seeks to create a Board that is strong in its collective knowledge and has a diversity of skills and experience with respect to
accounting and finance, management and leadership, vision and strategy, business operations, business judgment, industry knowledge
and corporate governance. The procedures of the Nominating/Corporate Governance Committee
required to be disclosed by the rules of the Securities and Exchange Commission are set forth below.
Minimum Qualifications
For Director Nominees. The Nominating/Corporate Governance Committee has adopted a set of criteria that it considers when
it selects individuals to be nominated for election to the Board of Directors. A candidate must meet the eligibility requirements
set forth in the Company’s bylaws, which include a minimum stock ownership requirement and a requirement that the candidate
not have been subject to certain criminal or regulatory actions. A candidate also must meet any qualification requirements set
forth in any Board or committee governing documents.
Candidates deemed eligible
for election to the Board of Directors are evaluated by the Nominating/Corporate Governance Committee using the following criteria
for selecting nominees:
| · | financial, regulatory and business experience and skills; |
| · | familiarity with and participation in the local community; |
| · | integrity, honesty and reputation in connection with upholding a position of trust with respect to customers; |
| · | ability to devote sufficient time and energy to diligently perform duties; and |
The Nominating/Corporate
Governance Committee will also consider any other factors the Committee deems relevant, including age, diversity, size of the Board
of Directors and regulatory disclosure obligations.
In addition, before nominating
an existing director for re-election to the Board of Directors, the Nominating/Corporate Governance Committee will consider and
review an existing director’s integrity; Board and committee attendance and performance; length of Board service; experience,
skills and contributions that the existing director brings to the Board; and independence.
Director Nomination
Process. The process that the Nominating/Corporate Governance Committee follows to identify and evaluate individuals
to be nominated for election to the Board of Directors is as follows:
Identification. For
purposes of identifying nominees for the Board of Directors, the Nominating/Corporate Governance Committee relies on personal contacts
of the committee members and other members of the Board of Directors, as well as its knowledge of members of the communities served
by the Bank. The Nominating/Corporate Governance Committee will also consider director candidates recommended by stockholders in
accordance with the policy and procedures set forth below. The Nominating/Corporate Governance Committee has not previously used
an independent search firm to identify nominees.
Evaluation. In
evaluating potential nominees, the Nominating/Corporate Governance Committee determines whether the candidate is eligible and qualified
for service on the Board of Directors by evaluating the candidate under the selection criteria described above. If such individual
fulfills these criteria, the Nominating/Corporate Governance Committee will conduct a check of the individual’s background
and interview the candidate to further assess the qualities of the prospective nominee and the contributions he or she would make
to the Board.
Consideration of
Recommendations by Stockholders. It is the policy of the Nominating/Corporate Governance Committee of the Board of Directors
of the Company to consider director candidates recommended by stockholders who appear to be qualified to serve on the Company’s
Board of Directors. The Nominating/Corporate Governance Committee may choose not to consider an unsolicited recommendation if no
vacancy exists on the Board of Directors and the Nominating/Corporate Governance Committee does not perceive a need to increase
the size of the Board of Directors. To avoid the unnecessary use of the Nominating/Corporate Governance Committee’s resources,
the Nominating/Corporate Governance Committee will consider only those director candidates recommended in accordance with the procedures
set forth below.
Procedures to be
Followed by Stockholders. To submit a recommendation of a director candidate to the Nominating/Corporate Governance Committee,
a stockholder should submit the following information in writing, addressed to the Chairman of the Nominating/Corporate Governance
Committee, care of the Corporate Secretary, at the main office of the Company:
| 1. | The name of the person recommended as a director candidate; |
| 2. | All information relating to such person that is required to be disclosed in solicitations of proxies
for election of directors pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended; |
| 3. | The written consent of the person being recommended as a director candidate to being named in the
proxy statement as a nominee and to serving as a director if elected; |
| 4. | As to the stockholder making the recommendation, the name and address of such stockholder as they
appear on the Company’s books; provided, however, that if the stockholder is not a registered holder of the Company’s
common stock, the stockholder should submit his or her name and address along with a current written statement from the record
holder of the shares that reflects ownership of the Company’s common stock; and |
| 5. | A statement disclosing whether such stockholder is acting with or on behalf of any other person
and, if applicable, the identity of such person. |
In order for a director
candidate to be considered for nomination at the Company’s annual meeting of stockholders, the recommendation must be received
by the Nominating/Corporate Governance Committee at least 120 calendar days before the date the Company’s proxy statement
was released to stockholders in connection with the previous year’s annual meeting, advanced by one year.
Director Compensation
The following table provides
the compensation received by individuals, other than our named executive officers listed in the “Summary Compensation Table,”
who served as directors of the Company during the 2014 fiscal year.
Name | |
Fees Earned or Paid in Cash (1) | | |
All Other Compensation | | |
Total | |
Diane B. Cavanaugh | |
$ | 41,250 | | |
| — | | |
$ | 41,250 | |
Arthur M. Levine | |
| 47,500 | | |
| — | | |
| 47,500 | |
Eugene M. Magier | |
| 35,750 | | |
| 7,250 | (2) | |
| 43,000 | |
Charles A. Martinek | |
| — | | |
| — | | |
| — | (3) |
John F. McKenzie | |
| 37,750 | | |
| — | | |
| 37,750 | |
Harry (Jeff) A.S. Read(4) | |
| 35,750 | | |
| — | | |
| 35,750 | |
Linda M. Swan | |
| 36,750 | | |
| — | | |
| 36,750 | |
Kenneth H. Thomas | |
| 40,750 | | |
| 15,200 | (5) | |
| 55,950 | |
| (1) | Includes fees earned for service with the Company and the Bank. |
| (2) | Amount listed represents payment for legal work performed for the Bank. |
| (3) | As an employee of the Bank, Mr. Charles Martinek did not receive any fees for his service as a director of the Company or the
Bank. Mr. Martinek is not a named executive officer listed in the Summary Compensation Table. |
| (4) | Mr. Read passed away on January 26, 2015. |
| (5) | Amount listed represents payment for consulting work performed for the Bank on matters relating to bank branching and the Community
Reinvestment Act. Dr. Thomas has been a consultant to the Bank since 1978. |
Cash Retainer and
Meeting Fees for Non-Employee Directors. Each non-employee
director of the Bank receives a $3,000 quarterly retainer plus $1,000 per meeting attended. Non-employee directors also receive
a $750 quarterly retainer plus $750 per meeting attended for their service on the Board of Directors of the Company, $500 per meeting
attended for service on the Audit, Compensation, and Nominating/Corporate Governance Committees of the Board of the Company, and
$1,000 per meeting attended for service on the Strategic Planning Committee. In addition, the Chairperson of the Audit Committee
receives a $2,500 quarterly retainer and the Chairpersons of the Compensation and Nominating/Corporate Governance Committee each
receive a $1,250 quarterly retainer. Directors do not receive any fees for their service on the Board of Directors of NorthEast
Community Bancorp, MHC.
Outside Director
Retirement Plan. The Bank maintains the NorthEast Community Bank Outside Director Retirement Plan to provide non-employee
directors with long standing service with a supplemental retirement benefit. All current non-employee directors are participants
in the plan. Participating directors are entitled to receive a retirement benefit calculated based on years of service and director
fees paid during the 12 completed calendar months preceding a director’s termination of service multiplied by a vesting percentage.
Participating directors with less than 10 years of service will receive no benefit under the plan. Participating directors with
10 years but less than 15 years of service will receive a benefit based on 50% of the total directors fees paid during the 12 completed
calendar months preceding the director’s termination. Participating directors with 15 years but less than 20 years will receive
75% of the total directors fees paid during the 12 completed calendar months preceding the director’s termination. Participating
directors with 20 or more years of service will receive a benefit calculated using 100% of the director fees paid during the 12
months preceding the directors termination. Participating directors vest in their retirement benefit at a rate of 20% per year
for years of service after January 1, 2006. The annual director retirement benefit is generally paid monthly over a 120-month period
following the month in which a director terminates his service on the Board of Directors. In the event a participating director
dies while in pay status, the director’s beneficiary will receive his or her remaining installments beginning in the month
immediately following the director’s death. In the event a participating director is terminated in connection with a change
in control (as defined in the plan), the director will receive a lump sum payment equal to the actuarial equivalent of the director’s
monthly benefit. In the event a participating director is removed from the Board of Directors for cause, the director will forfeit
all rights and benefits under the plan.
Board and Committee Meetings
During 2014, the Board
of Directors held 14 meetings. Each of our current directors attended at least 95% of the Board meetings and the committee meetings
on which such director served during 2014.
Director Attendance at Annual Meeting of
Stockholders
The Board of Directors
encourages each director to attend annual meetings of stockholders. Nine of the directors then in office attended the 2014 Annual
Meeting of Stockholders.
Code of Ethics and Business Conduct
The Company has adopted
a Code of Ethics and Business Conduct that is designed to promote the highest standards of ethical conduct by the Company’s
directors, executive officers and employees. The Code of Ethics and Business Conduct requires that the Company’s directors,
executive officers and employees avoid conflicts of interest, comply with all laws and other legal requirements, conduct business
in an honest and ethical manner and otherwise act with integrity and in the Company’s best interest. Under the terms of the
Code of Ethics and Business Conduct, directors, executive officers and employees are required to report any conduct that they believe
in good faith to be an actual or apparent violation of the Code of Ethics and Business Conduct. A copy of the Code of Ethics and
Business Conduct can be found in the Investor Relations section of the Company’s website, www.necommunitybank.com.
REPORT OF THE AUDIT COMMITTEE
The Company’s management
is responsible for the Company’s internal controls and financial reporting process. The independent registered public accounting
firm (“independent accountants”) are responsible for performing an independent audit of the Company’s consolidated
financial statements and issuing an opinion on the conformity of those financial statements with generally accepted accounting
principles. The Audit Committee oversees the Company’s internal controls and financial reporting process on behalf of the
Board of Directors.
In this context, the Audit
Committee has met and held discussions with management and the independent accountants. Management represented to the Audit Committee
that the Company’s consolidated financial statements were prepared in accordance with generally accepted accounting principles,
and the Audit Committee has reviewed and discussed the consolidated financial statements with management and the independent accountants.
The Audit Committee discussed with the independent auditors matters required to be discussed pursuant to U.S. Auditing Standards
No. 16 (Communications with Audit Committees). In addition, the Audit Committee has received the written disclosures and the letter
from the independent accountants required by applicable requirements of the Public Company Accounting Oversight Board regarding
the independent accountant’s communications with the Audit Committee concerning independence and has discussed with the independent
accountants the independent accountants’ independence. In concluding that the auditors are independent, the Audit Committee
considered, among other factors, whether the non-audit services provided by the auditors were compatible with their independence.
The Audit Committee discussed
with the Company’s independent accountants the overall scope and plans for their audit. The Audit Committee meets with the
independent accountants, with and without management present, to discuss the results of their examination, their evaluation of
the Company’s internal controls, and the overall quality of the Company’s financial reporting.
In performing all of these
functions, the Audit Committee acts only in an oversight capacity. In its oversight role, the Audit Committee relies on the work
and assurances of the Company’s management, which has the primary responsibility for financial statements and reports, and
of the independent accountants who, in their report, express an opinion on the conformity of the Company’s financial statements
to generally accepted accounting principles. The Audit Committee’s oversight does not provide it with an independent basis
to determine that management has maintained appropriate accounting and financial reporting principles or policies, or appropriate
internal controls and procedures designed to assure compliance with accounting standards and applicable laws and regulations. Furthermore,
the Audit Committee’s considerations and discussions with management and the independent accountants do not assure that the
Company’s financial statements are presented in accordance with generally accepted accounting principles, that the audit
of the Company’s consolidated financial statements has been carried out in accordance with the standards of the Public Company
Accounting Oversight Board (United States) or that the Company’s independent accountants are in fact “independent.”
In reliance on the reviews
and discussions referred to above, the Audit Committee recommended to the Board of Directors, and the Board has approved, that
the audited consolidated financial statements be included in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2014 for filing with the Securities and Exchange Commission.
Audit Committee of the Board of Directors
of
NorthEast Community Bancorp, Inc.
Arthur M. Levine (Chairperson)
John F. McKenzie
Linda M. Swan
STOCK OWNERSHIP
The following table provides
information as of March 27, 2015, with respect to persons known by the Company to be the beneficial owners of more than 5% of the
Company’s outstanding common stock. A person may be considered to own any shares of common stock over which he or she has,
directly or indirectly, sole or shared voting or investing power.
Name and Address | |
Number of Shares Owned | |
Percent of Common Stock Outstanding (1) |
| |
| | | |
| | |
NorthEast Community Bancorp, MHC(2) 325 Hamilton Avenue White Plains, New York 10601 | |
| 7,273,750 | | |
| 59.38% | |
| |
| | | |
| | |
Stilwell Value Partners IV, L.P., Stilwell Activist Fund, L.P., Stilwell Activist Investments, L.P., Stilwell Associates, L.P., Stilwell Partners, L.P., Stilwell Value LLC, and Joseph Stilwell 111 Broadway, 12th Floor New York, New York 10006 | |
| 1,236,102 |
(3) | |
| 10.09% | |
| (1) | Based on 12,249,302 shares of the Company’s common stock outstanding and entitled to vote
as of March 27, 2015. |
| (2) | The members of the Board of Directors of NorthEast Community Bancorp and NorthEast Community Bank
also constitute the Board of Directors of NorthEast Community Bancorp, MHC. |
| (3) | Based on information contained in a Schedule 13D/A filed with the Securities and Exchange Commission
on April 17, 2014, which indicates that Stilwell Value Partners IV, L.P., Stilwell Activist Fund, L.P., Stilwell Activist Investments,
L.P., Stilwell Associates, L.P., Stilwell Partners, L.P., Stilwell Value LLC, and Joseph Stilwell have shared voting and dispositive
power over 1,236,102 shares. |
The following table provides
information as of March 27, 2015 about the shares of Company common stock that may be considered to be beneficially owned by each
director, nominee for director, executive officers named in the Summary Compensation Table and by all directors, nominees
for director and executive officers of the Company as a group. A person may be considered to beneficially own any shares of common
stock over which he or she has, directly or indirectly, sole or shared voting or investment power. Unless otherwise indicated,
none of the shares listed are pledged as security, and each of the named individuals has sole voting power and sole investment
power with respect to the shares shown. All directors and executive officers as a group do not own over 1% of the Company’s
outstanding shares based on 12,249,302 shares of the Company’s common stock outstanding and entitled to vote as of March
27, 2015.
Name | |
Number of Shares Owned (1)(2) |
| |
| | |
Diane B. Cavanaugh | |
| 500 | |
Jose M. Collazo | |
| 13,535 | |
Donald Hom | |
| 2,783 | |
Arthur M. Levine | |
| 2,076 | (3) |
Eugene M. Magier | |
| 9,000 | (4) |
Charles A. Martinek | |
| 9,872 | |
Kenneth A. Martinek | |
| 59,273 | |
John F. McKenzie | |
| 5,000 | |
Linda M. Swan | |
| 730 | |
Kenneth H. Thomas | |
| 10,000 | (5) |
| |
| | |
All Executive Officers, Directors and Director Nominees, as a Group (10 persons) | |
| 112,769 | |
| (1) | Includes shares allocated to the account of individuals under the Bank’s ESOP with respect
to which individuals have voting but not investment power as follows: Mr. Charles Martinek – 4,262 shares, Mr. Kenneth Martinek
– 12,744 shares (including 1,365 shares allocated to Mr. Martinek’s spouse), Mr. Collazo – 7,445 shares (including
2,458 shares allocated to Mr. Collazo’s spouse) and Mr. Hom – 2,783 shares. |
| (2) | Includes shares held in trust in the 401(k) Plan as to which each individual has investment and
voting power as follows: Mr. Charles Martinek – 4,034 shares, Mr. Kenneth Martinek – 46,529 shares, Mr. Collazo –
2,106 shares and Mr. Collazo’s spouse – 3,933. These amounts reflect ownership units in the employer stock fund of
the 401(k) Plan, which consists of both issuer stock and a reserve of cash. The actual number of shares held by the individual
may vary when such units are actually converted into shares upon distribution of the units to the individual. |
| (3) | Includes 1,000 shares held by Mr. Levine’s spouse as trustee. |
| (4) | Includes 1,900 shares held by Mr. Magier’s spouse’s IRA. |
| (5) | Includes 370 shares held by Mr. Thomas’ spouse’s IRA. |
ITEMS TO BE VOTED ON BY STOCKHOLDERS
Item 1 — Election of Directors
The Board of Directors
of NorthEast Community Bancorp is presently composed of nine members. On January 26, 2015, the Board of Directors amended Article
III, Section 2 of the Company’s bylaws to decrease the number of directors from ten to nine in connection with the passing
of director Harry (Jeff) A.S. Read. The Board is divided into three classes, each with three-year staggered terms, with one-third
of the directors elected each year. The nominees for election this year are Diane B. Cavanaugh, Charles A. Martinek and Kenneth
H. Thomas, all of whom are current directors of the Company and the Bank.
Unless you indicate on
your proxy card that your shares should not be voted for certain directors, the Board of Directors intends that the proxies solicited
by it will be voted for the election of all of the Board’s nominees. If any nominee is unable to serve, the persons named
in the proxy card will vote your shares to approve the election of any substitute proposed by the Board of Directors. Alternatively,
the Board of Directors may adopt a resolution to reduce the size of the Board. At this time, the Board of Directors knows of no
reason why any nominee might be unable to serve. The Board of Directors recommends a vote “FOR” the election of
all nominees.
Information regarding
the Board of Director’s nominees and the directors continuing in office is provided below. Unless otherwise stated, each
individual has held his or her current occupation for the last five years. The age indicated for each individual is as of December
31, 2014 and the indicated period of service as a director includes service as a director of the Bank. Based on their respective
experiences, qualifications, attributes and skills set forth below, the Board of Directors determined that each current director
and nominee should serve as a director.
Board Nominees for Terms Ending in 2018
Diane B. Cavanaugh
is an attorney with Lyons McGovern, LLP. Age 58. Director since 1992.
As an attorney specializing
in commercial litigation, Ms. Cavanaugh has the ability to provide the Board with the legal knowledge necessary to assess issues
facing the Board effectively.
Charles A. Martinek
has served as Vice President and Chief Compliance Officer of NorthEast Community Bank since September, 2013. Prior to that
time, Mr. Martinek served as Internal Loan Review and Community Reinvestment Officer of the Bank since May, 2007, commercial loan
officer with the Bank since 2001, and as an assistant vice president since 2002. Before serving with the Bank, Mr. Martinek was
a quality control analyst with C. Cowles & Co. Mr. Martinek is also the owner of Martinek Investment Properties, LLC. Mr. Martinek’s
brother, Kenneth Martinek, also serves on the Board of Directors. Age 53. Director since 2002.
Mr. Martinek’s commercial
loan and compliance experience is crucial to the Board’s ability comprehend and adequately advise the Company on the specific
business issues facing the Company.
Kenneth H. Thomas
has been an independent bank analyst and consultant since 1969 and has been President of K.H. Thomas Associates, LLC since
1975. Dr. Thomas holds a Ph.D. in Finance from the Wharton School and has written extensively on the Community Reinvestment Act
of 1977. He has been a consultant to the Bank since 1978. Age 67. Director since 2001.
As an independent bank
analyst for over 40 years, Dr. Thomas offers the Board essential industry experience. In addition, Dr. Thomas is a critical advisor
to the Bank for operational, branching and Community Reinvestment Act matters.
Directors with Terms Ending in 2016
Arthur M. Levine
is a certified public accountant and Managing Member of the accounting firm A.L. Wellen LLC. Age 80. Director since 1995.
Mr. Levine’s accounting
and business experience for over 50 years provides the Board with valuable insight and expertise with regard to various financial
and accounting matters affecting the Company.
Eugene M. Magier
is an attorney and has been President of the Law Offices of Eugene M. Magier, P.C. since 1994. Mr. Magier is a licensed Massachusetts
Real Estate Broker and has managed residential and commercial real estate. Prior to starting his own law firm, Mr. Magier served
as Legal Counsel for CVS Corporation. Age 53. Director since 2012.
Mr. Magier’s experience
and background as an attorney specializing in commercial real estate, acquisitions, workouts and contracts provides the Board with
valuable knowledge and expertise directly related to the business issues facing the Company and the Bank.
Kenneth A. Martinek
has served as Chairman of the Board and Chief Executive Officer of NorthEast Community Bancorp since its formation in 2006
and previously served as President from 2006 until January 2013. He has served with NorthEast Community Bank since 1976 and has
been the Chief Executive Officer of the Bank since 1991 and was the President from 1991 until January 2013. Mr. Martinek was first
elected as a director of the Bank in 1983 and was appointed Chairman of the Board in 2002. Mr. Martinek’s brother, Charles
A. Martinek, also serves on the Board of Directors. Age 62.
Since becoming Chief Executive
Officer of the Bank in 1991, Mr. Martinek has successfully completed a mutual holding company reorganization and minority stock
offering and navigated the issues facing a public company in the banking sector. Mr. Martinek’s knowledge of all aspects
of the business and its history, combined with his success and strategic vision, position him well to continue to serve as our
Chairman and Chief Executive Officer.
John
F. McKenzie is a retired insurance executive. Prior to his retirement in early 2008,
Mr. McKenzie was the owner of an insurance agency in Orange, Connecticut, providing multiline personal and commercial insurance
products. Age 71. Director since November 2006.
Mr. McKenzie provides the
Board with significant management, strategic and operational knowledge through his previous experience as owner of an insurance
agency.
Directors with Terms Ending in 2017
Jose M. Collazo
has served as President of the Company and the Bank since January 2013 and Chief Operating Officer of the Company and the Bank
since February 2012. Prior to being appointed Chief Operating Officer Mr. Collazo served as Senior Vice President and Chief Information
Officer from 2002 to February 2012. Mr. Collazo joined the Bank in January 1986. Age 49. Director since 2013.
Mr. Collazo’s extensive
knowledge of all aspects of the Bank’s and the Company’s business and history, combined with his strategic vision,
position him well to continue to serve as our Director, President and Chief Operating Officer.
Linda M. Swan
is a retired Director of the Corporate Activities Division of the Office of Thrift Supervision. Age 65. Director since 1991.
Ms. Swan is a critical
member of a well rounded Board of Directors. As a former Vice President for the Office of Thrift Supervision, Ms. Swan provides
knowledge and expertise directly related to the various regulatory matters affecting the Company and the Bank.
Item 2 — Ratification of the Independent
Registered Public Accounting Firm
On August 12, 2013, the
Company dismissed ParenteBeard LLC as its independent certifying accountant. The Audit Committee of the Company’s Board of
Directors approved the dismissal.
The reports of ParenteBeard
LLC on the consolidated financial statements of the Company as of and for the fiscal years ended December 31, 2011 and December
31, 2012 did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit
scope, or accounting principles. During the two most recent fiscal years ended December 31, 2012 and 2011 and through the subsequent
interim period preceding August 12, 2013, there were: (1) no disagreements between the Company and ParenteBeard LLC on any matter
of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if
not resolved to the satisfaction of ParenteBeard LLC would have caused them to make reference thereto in their reports on the Company’s
financial statements for such years, and (2) no reportable events within the meaning set forth in Item 304(a)(1)(v) of Regulation
S-K.
On August 13, 2013, the
Company engaged BDO USA, LLP its independent certifying accountant. The Audit Committee of the Company’s Board of Directors
approved the engagement.
During the Company’s
fiscal years ended December 31, 2012 and 2011 and the subsequent interim period preceding the engagement of BDO USA, LLP, the Company
did not consult with BDO USA, LLP regarding: (1) the application of accounting principles to a specified transaction, either completed
or proposed; (2) the type of audit opinion that might be rendered on the Company’s financial statements, and BDO USA, LLP
did not provide any written report or oral advice that BDO USA, LLP concluded was an important factor considered by the Company
in reaching a decision as to any such accounting, auditing or financial reporting issue; or (3) any matter that was either the
subject of a disagreement with ParenteBeard LLC on any matter of accounting principles or practices, financial statement disclosure
or auditing scope or procedure or the subject of a reportable event.
The Audit Committee of
the Board of Directors has appointed BDO USA, LLP to be the Company’s independent registered public accounting firm for 2015,
subject to ratification by shareholders. A representative of BDO USA, LLP is expected to be present at the annual meeting to respond
to appropriate questions from stockholders and will have the opportunity to make a statement should he or she desire to do so.
If the ratification of
the appointment of the independent registered public accounting firm is not approved by the stockholders at the annual meeting,
the Audit Committee will consider other independent registered public accounting firm.
Auditor Fees
The following table sets
forth the fees billed to the Company for the fiscal years ended December 31, 2014 and December 31, 2013 by BDO USA, LLP, its independent
public accounting firm. As discussed in greater detail above, the Company dismissed ParenteBeard LLC on August 12, 2013 and engaged
BDO USA, LLP to serve as the Company’s independent registered public accounting firm on August 13, 2013.
| |
2014 | | |
2013 | |
| |
| | |
| |
Audit Fees(1) | |
$ | 40,000 | | |
$ | 13,766 | |
Audit-Related Fees(2) | |
| 142,896 | | |
| — | |
Tax Fees(3) | |
| 28,891 | | |
| — | |
All other fees(4) | |
| 19,750 | | |
| — | |
| (1) | Includes professional services rendered for the audit of the Company’s annual financial statements
and review of financial statements included in Forms 10-Q and 10-K. |
| (2) | Includes professional services rendered in connection with the state and city audits. |
| (3) | Includes professional services rendered for the preparation of federal, state and city tax returns. |
| (4) | Includes direct and administrative expenses. |
Policy on Pre-Approval of Audit and Permissible
Non-Audit Services
The Audit Committee is
responsible for appointing and setting the compensation and overseeing the work of the independent auditor. In accordance with
its charter, the Audit Committee approves, in advance, all audit and permissible non-audit services to be performed by the independent
auditor to ensure that the independent auditor does not provide any non-audit services to the Company that are prohibited by law
or regulation.
In addition, the Audit
Committee has established a policy regarding pre-approval of all audit and permissible non-audit services provided by the independent
auditor. Requests for services by the independent auditor must be specific as to the particular services to be provided. The request
may be made with respect to either specific services or a type of service for predictable or recurring services. During the year
ended December 31, 2014, all services provided by the independent auditor were approved, in advance, by the Audit Committee in
compliance with these procedures.
The Board of Directors
recommends that stockholders vote “FOR” the ratification of the appointment of BDO USA, LLP as the independent registered
public accounting firm.
EXECUTIVE COMPENSATION
Summary Compensation Table
The following table provides
information concerning total compensation earned or paid to the Chief Executive Officer and the three other most highly compensated
executive officers of the Company who served in such capacities at December 31, 2014. These four officers are referred to as the
“named executive officers” in this proxy statement.
Name and Principal Position | |
Year | |
Salary | | |
Bonus | | |
All Other Compensation(1) | | |
Total | |
| |
| |
| | |
| | |
| | |
| |
Kenneth A. Martinek | |
2014 | |
$ | 275,750 | | |
$ | — | | |
$ | — | | |
$ | 275,750 | |
Chief Executive Officer | |
2013 | |
| 275,750 | | |
| — | | |
| 8,266 | | |
| 284,016 | |
| |
| |
| | | |
| | | |
| | | |
| | |
Jose M. Collazo | |
2014 | |
$ | 181,250 | | |
$ | — | | |
$ | — | | |
$ | 181,250 | |
President and Chief Operating Officer | |
2013 | |
| 175,349 | | |
| 5,348 | | |
| 33,083 | | |
| 213,780 | |
| |
| |
| | | |
| | | |
| | | |
| | |
Donald S. Hom | |
2014 | |
$ | 150,000 | | |
$ | — | | |
$ | — | | |
$ | 150,000 | |
Executive Vice President and Chief Financial Officer | |
2013 | |
| 114,500 | | |
| — | | |
| 3,712 | | |
| 114,500 | |
| (1) | Each named executive officer participates in the ESOP; however, as of the date of this proxy statement
the ESOP allocations for the year ended December 31, 2014 were not available. |
Employment Agreements.
The Company and the Bank each maintain employment agreements with Kenneth A. Martinek and Jose M. Collazo. The employment agreements
with the Company and the Bank for each executive, which have essentially identical terms, provide that the Company will make any
payments not made by the Bank, but the executives will not receive any duplicative payments. Messrs. Martinek and Collazo are also
referred to below as the “executives” or the “executive.”
The employment agreements
with Messrs. Martinek and Collazo provide for three-year terms, subject to annual renewal by the Boards of Directors. In connection
with a review of the executive officers’ job performance, the Board of Directors of the Bank and the Company approved the
extension of the employment agreement with Mr. Martinek through July 5, 2018 and the extension of the employment agreement with
Mr. Collazo through May 11, 2018. The current base salaries under the employment agreements are $275,750 for Mr. Martinek and $181,250
for Mr. Collazo. The agreements also provide for participation in employee benefit plans and programs maintained for the benefit
of senior management personnel, including discretionary bonuses, participation in stock-based benefit plans, and fringe benefits.
Under the terms of the
agreements, the executives are subject to a one year non-compete if they terminate their employment for good reason (as defined
in the agreement) or if they are terminated without cause (as defined in the agreement). This non-compete provision shall not apply
if the executives are terminated within one year of a change of control.
See “Potential
Post-Termination Benefits” for a discussion of the benefits and payments the executives may receive under their employment
agreements upon retirement or termination of employment.
Supplemental Executive
Retirement Plan. The Bank also maintains a supplemental executive retirement plan in which Kenneth A. Martinek and Jose
M. Collazo participate.
See “Potential
Post-Termination Benefits” for a discussion of the benefits and payments the executives may receive under the supplemental
executive retirement plan upon retirement or termination of employment.
Potential Post-Termination
Benefits
Payments Made Upon
Termination for Cause. Under the employment agreements, an executive who is terminated for cause will receive base salary
through the date of termination and retain the rights to any vested benefits subject to the terms of the plan or agreement under
which those benefits are provided.
Payments Made Upon
Retirement. Under the terms of the employment agreements with the executives, the executives will be entitled to their
base salary earned as of the date of retirement, as well as all vested benefits under the Bank-sponsored tax-qualified retirement
plans. In addition, the Bank maintains supplemental executive retirement plans for Messrs. Martinek and Collazo. Under the terms
of the plans, upon termination of employment on or after the normal retirement age of 60 for Mr. Martinek and 65 for Mr. Collazo,
the executives each receive an annual retirement benefit equal to fifty percent (50%) of average base salary over the three-year
period preceding termination of employment. Upon termination on or after age 60 and upon completing a minimum of 20 years of service
Mr. Collazo may receive an early retirement benefit equal to the normal retirement benefit, reduced by .25% for each month by which
Mr. Collazo’s age at termination is less than age 65. The early or normal retirement benefit is payable in equal monthly
installments for the greater of the executive’s lifetime or 15 years following retirement. All unvested equity awards granted
to the executives will be forfeited upon retirement.
Payments Made Upon
Voluntarily Termination and Termination without Cause or for Good Reason. If the Bank and the Company terminate the executives
for reasons other than cause, or if the executives terminate voluntarily under certain circumstances outlined in the employment
agreements that constitute constructive termination, the executives, or their beneficiaries should they die prior to receipt of
payment, each receive an amount equal to their base salary and employer contributions to benefit plans payable for the remaining
term of the agreement. The Bank and the Company also agree to continue and/or pay for the executives’ life, health and dental
coverage for the remaining term of the agreements. The executives will be entitled to their supplemental benefits under the supplemental
executive retirement plan as described under “Payments Made Upon Retirement” depending on their age as of the termination
date.
Payments Made Upon
Disability. Under the employment agreements, if the executives become disabled, the Bank and the Company agree to provide
them with monthly disability pay equal to 75% of their monthly base salaries for a period ending on the earliest to occur of (1)
a return to full-time employment with the Bank and the Company; (2) death; (3) attainment of age 65; or (4) the expiration of the
employment agreement. The disability payments under the agreement would be reduced, however, by the amount of any short- or long-term
disability benefits that would become payable to the executives under the terms of any disability insurance programs sponsored
by the Bank and the Company.
In the event of termination
due to disability, the executives will receive the early retirement benefit or normal retirement benefit due under the supplemental
executive retirement plan if they have reached age 65 (or age 60 in the case of Mr. Martinek), respectively, prior to termination.
If they have not attained early retirement age prior to termination due to disability, they will receive a benefit equal to their
accrued benefit under the plan as of the date of termination.
Payments Made Upon
Death. Upon the death of an executive, the executive’s employment agreement terminates and the executive’s
beneficiary will receive base salary and accrued benefits through the last day of the month of death.
The supplemental executive
retirement plan provides that upon the death of the executive while actively employed, they, or their beneficiary, would receive
an actuarially equivalent lump sum benefit, calculated as if the executive had attained the normal retirement age prior to his
death.
Payments Made Upon
a Change in Control. Under the employment agreements, if an executive is involuntarily or constructively terminated within
one year of a change in control (as defined in the agreements), the executive will receive a severance payment equal to three times
his or her average annual compensation over the five preceding years, as well as continued life, medical and dental benefits for
three years following termination of employment.
The benefits provided to
the executives under the employment agreements upon a change in control are limited to avoid adverse tax consequences to the Company
and the Bank under Section 280G of the Internal Revenue Code of 1986. The “280G Limit” provides that total payments
and benefits to the executives that are contingent upon a change in control shall not equal or exceed in the aggregate three times
the individual’s average annual taxable income over the five preceding years.
The supplemental executive
retirement plan provides that upon termination in connection with a change in control Messrs. Martinek and Collazo, or their beneficiary,
would receive an actuarially equivalent lump sum benefit, calculated as if they had attained age 60 for Mr. Martinek and age 65
for Mr. Collazo prior to termination of employment.
Under the terms of our
employee stock ownership plan, upon a change in control (as defined in the plan), the plan will terminate and the plan trustee
will repay in full any outstanding acquisition loan. After repayment of the acquisition loan, all remaining shares of our stock
held in the loan suspense account, all other stock or securities, and any cash proceeds from the sale or other disposition of any
shares of our stock held in the loan suspense account will be allocated among the accounts of all participants in the plan who
were employed by us on the date immediately preceding the effective date of the change in control. The allocations of shares or
cash proceeds shall be credited to each eligible participant in proportion to the opening balances in their accounts as of the
first day of the valuation period in which the change in control occurred. Payments under our employee stock ownership plan do
not count towards the executives’ 280G Limits.
OTHER INFORMATION RELATING TO
DIRECTORS AND EXECUTIVE OFFICERS
Section 16(a) Beneficial Ownership Reporting
Compliance
Section 16(a) of the
Securities Exchange Act of 1934 requires the Company’s executive officers and directors, and persons who own more than 10%
of any registered class of the Company’s equity securities, to file reports of ownership and changes in ownership with the
Securities and Exchange Commission. These individuals or entities are required by regulation to furnish the Company with copies
of all Section 16(a) reports they file.
Based solely on its review
of the copies of the reports it has received and written representations provided to the Company from the individuals required
to file the reports, the Company believes that each of its executive officers and directors has complied with applicable reporting
requirements for transactions in Company common stock during the fiscal year ended December 31, 2014.
Transactions with Related Persons
The Sarbanes-Oxley Act
of 2002 generally prohibits loans by the Company to its executive officers and directors. However, the Sarbanes-Oxley Act contains
a specific exemption from such prohibition for loans by the Bank to its executive officers and directors in compliance with federal
banking regulations. Federal regulations require that all loans or extensions of credit to executive officers and directors of
insured institutions must be made on substantially the same terms, including interest rates and collateral, as those prevailing
at the time for comparable transactions with other persons and must not involve more than the normal risk of repayment or present
other unfavorable features. The Bank is therefore prohibited from making any new loans or extensions of credit to executive officers
and directors at different rates or terms than those offered to the general public, except for loans made pursuant to programs
generally available to all employees. Notwithstanding this rule, federal regulations permit the Bank to make loans to executive
officers and directors at reduced interest rates if the loan is made under a benefit program generally available to all other employees
and does not give preference to any executive officer or director over any other employee, although the Bank does not currently
have such a program in place.
SUBMISSION OF BUSINESS PROPOSALS AND
STOCKHOLDER NOMINATIONS
The Company must receive
proposals that stockholders seek to include in the proxy statement for the Company’s next annual meeting no later than December
15, 2015. If next year’s annual meeting is held on a date more than 30 calendar days from May 20, 2016, a stockholder proposal
must be received by a reasonable time before the Company begins to print and mail its proxy solicitation for such annual meeting.
Any stockholder proposals will be subject to the requirements of the proxy rules adopted by the Securities and Exchange Commission.
The Company’s bylaws
provide that, in order for a stockholder to make nominations for the election of directors or proposals for business to be brought
before the annual meeting, a stockholder must deliver notice of such nominations and/or proposals to the Secretary not less than
30 days before the date of the annual meeting. However, if less than 40 days’ notice or prior public disclosure of the date
of the annual meeting is given to stockholders, such notice of stockholder nominations or proposals must be received not later
than the close of business of the tenth day following the day on which notice of the date of the annual meeting was mailed to stockholders
or prior public disclosure of the meeting date was made. A copy of the bylaws may be obtained from the Company.
STOCKHOLDER COMMUNICATIONS
The Company
encourages stockholder communications to the Board of Directors. All communications from stockholders should be addressed to
NorthEast Community Bancorp, Inc., 325 Hamilton Avenue, White Plains, New York 10601. Communications to the Board of
Directors should be in the care of Anne Stevenson-DeBlasi, Corporate Secretary. Stockholders who wish to communicate with a
Committee of the Board should send their communications to the care of the Chairperson of the particular committee, with a
copy to Kenneth H. Thomas, the Chair of the Nominating/Corporate Governance Committee. It is in the discretion of the
Nominating/Corporate Governance Committee whether any communication sent to the full Board should be brought before the full
Board.
NOTICE OF INTERNET AVAILABILITY OF PROXY
MATERIALS
Important Notice Regarding
the Availability of Proxy Materials for the Stockholders Meeting to be held on May 20, 2015.
The Proxy Statement
and Annual Report to Stockholders are available at https://www.necb.com/portals/NorthEastCommunityBank/PDF/2015_Meeting_2014_Proxy_Annual_Rpt.pdf
MISCELLANEOUS
The Company will pay
the cost of this proxy solicitation. The Company will reimburse brokerage firms and other custodians, nominees and fiduciaries
for reasonable expenses incurred by them in sending proxy materials to the beneficial owners of the Company. Additionally, directors,
officers and other employees of the Company may solicit proxies personally or by telephone. None of these persons will receive
additional compensation for these activities.
The Company’s Annual
Report to Stockholders has been included with this proxy statement. The Annual Report is not to be treated as part of the proxy
solicitation material or as having been incorporated by reference into this proxy statement.
If you and others who share
your address own your shares in “street name,” your broker or other holder of record may be sending only one annual
report and proxy statement to your address. This practice, known as “householding,” is designed to reduce our printing
and postage costs. However, if a stockholder residing at such an address wishes to receive a separate annual report or proxy statement
in the future, he or she should contact the broker or other holder of record. If you own your shares in “street name”
and are receiving multiple copies of our annual report and proxy statement, you can request householding by contacting your broker
or other holder of record.
Whether or not you plan
to attend the annual meeting, please vote by marking, signing, dating and promptly returning the enclosed proxy card in the enclosed
envelope.
|
BY ORDER OF THE BOARD OF DIRECTORS |
|
|
|
/s/ Anne Stevenson-DeBlasi |
|
|
|
Anne Stevenson-DeBlasi |
|
Corporate Secretary |
White Plains, New York
April 13, 2015
Northeast Community Bancorp, Inc.
MMMMMMMMMMMM
MMMMMMMMMMMMMMM C123456789
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IMPORTANT ANNUAL MEETING INFORMATION 000004
000000000.000000 ext 000000000.000000 ext
ENDORSEMENT_LINE______________ SACKPACK_____________
000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext
MR A SAMPLE
DESIGNATION (IF ANY)
ADD 1
ADD 2
ADD 3
ADD 4
ADD 5
ADD 6
Using a black ink pen, mark your votes with an X as shown in this example. Please do not write outside the designated areas.
X
Annual Meeting Proxy Card
• PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. •
Proposals — The Board of Directors recommends a vote FOR all the nominees listed and FOR Proposal 2.
1. Election of Directors: For Withhold For Withhold For Withhold 01 - Diane B. Cavanaugh
+
02 - Charles A. Martinek
03 - Kenneth H. Thomas
For Against Abstain
2. The ratification of the appointment of BDO USA, LLP as independent registered public accounting firm of Northeast Community Bancorp, Inc. for the fiscal year ending December 31, 2015.
Non-Voting Items
Change of Address — Please print your new address below. Comments — Please print your comments below. Meeting Attendance Mark the box to the right if you plan to attend the Annual Meeting.
Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below
Please sign exactly as your name appears on this card. When signing as attorney, executor, administrator, trustee or guardian, please give your full title. If shares are held jointly, each holder may
sign but only one signature is required.
Date (mm/dd/yyyy) — Please print date below. Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box.
MR A SAMPLE (THIS AREA IS SET UP TO ACCOMMODATE
C 1234567890 J N T
140 CHARACTERS) MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND 31DV 2224161 MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND
MMMMMMM +
021WDC
• PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. •
REVOCABLE PROXY — NORTHEAST COMMUNITY BANCORP, INC.
ANNUAL MEETING OF STOCKHOLDERS May 20, 2015, 9:00 a.m., Local Time
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS.
The undersigned hereby appoints the official proxy committee of Northeast Community Bancorp, Inc. (the “Company”), consisting of Arthur M. Levine, Eugene M. Magier, John F. McKenzie and Linda M. Swan, or any of them, with full power of substitution in each, to act as proxy for the undersigned, and to vote all shares of common stock of the Company which the undersigned is entitled to vote only at the Annual Meeting of Stockholders to be held on May 20, 2015 at 9:00 a.m., local time, at the Westchester Marriott Hotel, 670 White Plains Road, Tarrytown, New York and at any and all adjournments thereof, with all of the powers the undersigned would possess if personally present at such meeting as indicated on this proxy card.
This proxy is revocable and will be voted as directed, but if no instructions are specified, this proxy, properly signed and dated, will be voted “FOR” all nominees and “FOR” proposal 2. If any other business is presented at the Annual Meeting, including whether or not to adjourn the meeting, this proxy will be voted by the proxies in their judgment. At the present time, the Board of Directors knows of no other business to be presented at the Annual Meeting. This proxy also confers discretionary authority on the proxy committee of the Board of Directors to vote (1) with respect to the election of any person as director, where the nominees are unable to serve or for good cause will not serve and (2) matters incident to the conduct of the meeting.
PLEASE COMPLETE, DATE, SIGN, AND MAIL THIS PROXY CARD IN THE ENCLOSED POSTAGE-PAID ENVELOPE.
.
MMMMMMMMMMMM
Northeast Community Bancorp, Inc.
IMPORTANT ANNUAL MEETING INFORMATION
MMMMMMMMM
Using a black ink pen, mark your votes with an X as shown in this example. Please do not write outside the designated areas.
X
Annual Meeting Proxy Card
• PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. •
Proposals — The Board of Directors recommends a vote FOR all the nominees listed and FOR Proposal 2.
1. Election of Directors: For Withhold For Withhold For Withhold 01 - Diane B. Cavanaugh
+
02 - Charles A. Martinek 03 - Kenneth H. Thomas
For Against Abstain
2. The ratification of the appointment of BDO USA, LLP as independent registered public accounting firm of Northeast
Community Bancorp, Inc. for the fiscal year ending December 31, 2015.
Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below
Please sign exactly as your name appears on this card. When signing as attorney, executor, administrator, trustee or guardian, please give your full title. If shares are held jointly, each holder may
sign but only one signature is required.
Date (mm/dd/yyyy) — Please print date below. Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box.
1UPX 2224162
+
021WEC
• PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. •
REVOCABLE PROXY — NORTHEAST COMMUNITY BANCORP, INC.
ANNUAL MEETING OF STOCKHOLDERS May 20, 2015, 9:00 a.m., Local Time
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS.
The undersigned hereby appoints the official proxy committee of Northeast Community Bancorp, Inc. (the “Company”), consisting of Arthur M. Levine, Eugene M. Magier, John F. McKenzie and Linda M. Swan, or any of them, with full power of substitution in each, to act as proxy for the undersigned, and to vote all shares of common stock of the Company which the undersigned is entitled to vote only at the Annual Meeting of Stockholders to be held on May 20, 2015 at 9:00 a.m., local time, at the Westchester Marriott Hotel, 670 White Plains Road, Tarrytown, New York and at any and all adjournments thereof, with all of the powers the undersigned would possess if personally present at such meeting as indicated on this proxy card.
This proxy is revocable and will be voted as directed, but if no instructions are specified, this proxy, properly signed and dated, will be voted “FOR” all nominees and “FOR” proposal 2. If any other business is presented at the Annual Meeting, including whether or not to adjourn the meeting, this proxy will be voted by the proxies in their judgment. At the present time, the Board of Directors knows of no other business to be presented at the Annual Meeting. This proxy also confers discretionary authority on the proxy committee of the Board of Directors to vote (1) with respect to the election of any person as director, where the nominees are unable to serve or for good cause will not serve and (2) matters incident to the conduct of the meeting.
PLEASE COMPLETE, DATE, SIGN, AND MAIL THIS PROXY CARD IN THE ENCLOSED POSTAGE-PAID ENVELOPE.
Dear 401(k) Plan Participant:
On behalf of the Board of Directors of Northeast Community Bancorp, Inc. (the “Company”), I am forwarding you the attached green voting instruction card provided for the purpose of conveying your voting instructions to Fidelity Management Trust Company (the “Trustee”) of the Northeast Community Bank 401(k) Plan (the “401(k) Plan”) on the proposals to be presented at the Annual Meeting of Stockholders of the Company to be held on May 20, 2015. Also enclosed is a Notice of 2015 Annual Meeting, Proxy Statement and 2014 Annual Report.
As a holder of the Company’s common stock (“Common Stock”) through the 401(k) Plan, you are entitled to direct the Trustee how to vote the shares of Common Stock credited to your account as of March 27, 2015, the record date for the Annual Meeting. If the Trustee does not receive your voting instructions by May 13, 2015, your shares will not be voted at the Annual Meeting.
Please complete, sign and return the enclosed green voting instruction card in the postage paid envelope provided by Computershare no later than May 13, 2015. Computershare will tabulate participant voting instructions and forward them to the Trustee who will vote the shares held in the 401(k) Plan Trust as directed by participants. Your vote will not be revealed, directly or indirectly, to any employee or director of the Company or Northeast Community Bank.
As an employee of Northeast Community Bank you may participate in more than one
stock-based benefit plan. Please submit your voting instructions for all of the plans.
Sincerely,
Kenneth A. Martinek
Chairman and
Chief Executive Officer
Northeast Community Bancorp, Inc.
MMMMMMMMMMMM
MMMMMMMMMMMMMMM C123456789
MMMMMMMMM
IMPORTANT ANNUAL MEETING INFORMATION 000004
000000000.000000 ext 000000000.000000 ext
ENDORSEMENT_LINE______________ SACKPACK_____________
000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext
MR A SAMPLE
DESIGNATION (IF ANY)
ADD 1
ADD 2
ADD 3
ADD 4
ADD 5
ADD 6
Using a black ink pen, mark your votes with an X as shown in this example. Please do not write outside the designated areas.
X
Annual Meeting Voting Instruction Card
• PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. •
Proposals — The Board of Directors recommends a vote FOR all the nominees listed and FOR Proposal 2.
1. Election of Directors: For Withhold For Withhold For Withhold 01 - Diane B. Cavanaugh
+
02 - Charles A. Martinek
03 - Kenneth H. Thomas
For Against Abstain
2. The ratification of the appointment of BDO USA, LLP as independent registered public accounting firm of Northeast Community Bancorp, Inc. for the fiscal year ending December 31, 2015.
Non-Voting Items
Change of Address — Please print your new address below. Comments — Please print your comments below. Meeting Attendance Mark the box to the right if you plan to attend the Annual Meeting.
Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below
Please be sure to date and sign this voting instruction card in the box below.
Date (mm/dd/yyyy) — Please print date below. Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box.
MR A SAMPLE (THIS AREA IS SET UP TO ACCOMMODATE
C 1234567890 J N T
140 CHARACTERS) MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND 31DV 2224163 MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND
MMMMMMM +
021WWC
• PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. •
VOTING INSTRUCTION CARD — NORTHEAST COMMUNITY BANCORP, INC. 401K Plan
ANNUAL MEETING OF STOCKHOLDERS May 20, 2015, 9:00 a.m., Local Time
The undersigned hereby directs the Trustee(s) to vote all shares of common stock of Northeast Community Bancorp, Inc. (the “Company”) credited to the undersigned’s 401(k) Plan account, for which the undersigned is entitled to vote at the Annual Meeting of Stockholders to be held on May 20, 2015 at
9:00 a.m., local time, at the Westchester Marriott Hotel, 670 White Plains Road, Tarrytown, New York and at any and all adjournments thereof, as indicated on this voting instruction card.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” ALL NOMINEES AND “FOR” PROPOSAL 2.
PLEASE COMPLETE, DATE, SIGN, AND MAIL THIS VOTING INSTRUCTION CARD IN THE ENCLOSED POSTAGE-PAID ENVELOPE.
Dear ESOP Participant:
On behalf of the Board of Directors of Northeast Community Bancorp, Inc. (the “Company”), I am forwarding you the attached blue voting instruction card provided for the purpose of conveying your voting instructions to GreatBanc Trust Company (the “Trustee”) on the proposals to be presented at the Annual Meeting of Stockholders of the Company to be held on May 20, 2015. Also enclosed is a Notice of 2015 Annual Meeting, Proxy Statement and 2014 Annual Report.
As a participant in the Northeast Community Bank Employee Stock Ownership Plan, as amended and restated (the “ESOP”), you are entitled to vote all shares of Company common stock allocated to your account as of March 27, 2015, the record date for the Annual Meeting. All allocated shares of Company common stock will be voted as directed by participants, so long as participant instructions are received by the Trustee on or before May 13, 2015. If you do not direct the Trustee as to how to vote the shares of Company common stock allocated to your ESOP account, or your voting instructions are not received by May 13, 2015, the Trustee will vote your shares in a manner calculated to most accurately reflect the voting instructions it receives from other ESOP participants, subject to its fiduciary duties.
Please complete, sign and return the enclosed blue voting instruction card in the postage paid envelope provided by Computershare no later than May 13, 2015. Computershare will tabulate participant voting instructions and forward them to the Trustee who will vote all of the shares held in the ESOP Trust. Your vote will not be revealed, directly or indirectly, to any employee or director of the Company or Northeast Community Bank.
As an employee of Northeast Community Bank you may participate in more than one
stock-based benefit plan. Please submit your voting instructions for all of the plans.
Sincerely,
Kenneth A. Martinek
Chairman and
Chief Executive Officer
Northeast Community Bancorp, Inc.
MMMMMMMMMMMM
MMMMMMMMMMMMMMM C123456789
MMMMMMMMM
IMPORTANT ANNUAL MEETING INFORMATION 000004
000000000.000000 ext 000000000.000000 ext
ENDORSEMENT_LINE______________ SACKPACK_____________
000000000.000000 ext 000000000.000000 ext 000000000.000000 ext 000000000.000000 ext
MR A SAMPLE
DESIGNATION (IF ANY)
ADD 1
ADD 2
ADD 3
ADD 4
ADD 5
ADD 6
Using a black ink pen, mark your votes with an X as shown in this example. Please do not write outside the designated areas.
X
Annual Meeting Voting Instruction Card
• PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. •
Proposals — The Board of Directors recommends a vote FOR all the nominees listed and FOR Proposal 2.
1. Election of Directors: For Withhold For Withhold For Withhold 01 - Diane B. Cavanaugh
+
02 - Charles A. Martinek
03 - Kenneth H. Thomas
For Against Abstain
2. The ratification of the appointment of BDO USA, LLP as independent registered public accounting firm of Northeast Community Bancorp, Inc. for the fiscal year ending December 31, 2015.
Non-Voting Items
Change of Address — Please print your new address below. Comments — Please print your comments below. Meeting Attendance Mark the box to the right if you plan to attend the Annual Meeting.
Authorized Signatures — This section must be completed for your vote to be counted. — Date and Sign Below
Please be sure to date and sign this voting instruction card in the box below.
Date (mm/dd/yyyy) — Please print date below. Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box.
MR A SAMPLE (THIS AREA IS SET UP TO ACCOMMODATE
C 1234567890 J N T
140 CHARACTERS) MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND 31DV 2224164 MR A SAMPLE AND MR A SAMPLE AND MR A SAMPLE AND
MMMMMMM +
021WGC
• PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. •
VOTING INSTRUCTION CARD — NORTHEAST COMMUNITY BANCORP, INC. ESOP
ANNUAL MEETING OF STOCKHOLDERS May 20, 2015, 9:00 a.m., Local Time
The undersigned hereby directs the Trustee(s) to vote all shares of common stock of Northeast Community Bancorp, Inc. (the “Company”) credited to the undersigned’s ESOP account, for which the undersigned is entitled to vote at the Annual Meeting of Stockholders to be held on May 20, 2015 at 9:00 a.m., local time, at the Westchester Marriott Hotel, 670 White Plains Road, Tarrytown, New York and at any and all adjournments thereof, as indicated on this voting instruction card.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” ALL NOMINEES AND “FOR” PROPOSAL 2.
PLEASE COMPLETE, DATE, SIGN, AND MAIL THIS VOTING INSTRUCTION CARD IN THE ENCLOSED POSTAGE-PAID ENVELOPE.