Northeast Community Bancorp, Inc. (NECB), the holding company for NorthEast Community Bank, said Friday that NorthEast Community Bancorp, MHC, the mutual holding company that owns 57.5% of the company's outstanding common stock, will hold a special meeting of its members on November 9 to vote on a proposal to waive the MHC's right to receive annual dividends of up to $0.12 per share that may be declared by the company during the 12-month period following the member vote.
Regulations of the Board of Governors of the Federal Reserve System prohibit the waiver of dividends by the MHC unless the waiver has been approved by its members, consisting of depositors and certain borrowers of the Bank.
Pending the outcome of the member vote, the company's Board of Directors has determined to delay the declaration of its quarterly cash dividend that normally would have been declared around this time.
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