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Name
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Position(s) Held With
Coastway Bancorp, Inc.
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Age(1)
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Director
Since(2)
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Current
Term
Expires
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NOMINEES
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Mark E. Crevier
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Chairman of the Board
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66
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1986
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2017
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Hon. Francis X. Flaherty
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Director
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70
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2008
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2017
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Debra M. Paul
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Director
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53
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2008
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2017
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Angelo P. Lopresti
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Director
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53
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2016
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2017
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CONTINUING DIRECTORS
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William A. White
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President, Chief Executive Officer & Director
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60
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1994
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2018
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Dennis M. Murphy
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Director
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68
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2008
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2018
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James P. Fiore
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Director
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73
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1996
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2018
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David P. DiSanto
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Director
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60
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2013
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2019
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Lynda Dickinson
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Director
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67
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2001
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2019
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Phillip Kydd
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Vice Chairman of the Board
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57
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2002
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2019
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Malcolm G. Chace, Jr.
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Director
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49
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2016
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2019
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EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS
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Richard H. Petrarca
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Executive Vice President and Chief Operating Officer
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63
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N/A
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N/A
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Paul G. Wielgus(3)
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Executive Vice President and Chief Credit Officer
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64
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N/A
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N/A
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Jeanette Fritz
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Executive Vice President and Chief Financial Officer
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51
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N/A
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N/A
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Jana Planka(3)
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Executive Vice President and Chief Retail Officer
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56
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N/A
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N/A
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Stephen J. Gibbons(3)
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Executive Vice President and Chief Business Lending Officer
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57
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N/A
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N/A
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(1)
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As
of February 28, 2017.
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(2)
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Includes
service with Coastway Community Bank (and predecessor Coastway Credit Union) and Coastway Bancorp, Inc.
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(3)
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Ms. Planka
and Messrs. Gibbons and Wielgus are executive officers of Coastway Community Bank only.
The
biographies of each of the nominees, continuing board members and executive officers are set forth below. With respect to directors and nominees, the biographies also contain
information regarding the person's business experience and the experiences, qualifications, attributes or skills that caused the Nominating and Corporate Governance Committee to determine that the
person should serve as a director. Each director of Coastway Bancorp, Inc. is also a director of Coastway Community Bank, and if elected each nominee will be appointed as a director of Coastway
Community Bank.
Nominees and Continuing Directors
Mark E. Crevier
is a Certified Public Accountant and has served as chairman of the board of
directors of Coastway Community Bank since 1998. He also serves on the Executive Committee and the Compensation Committee. Mr. Crevier served as an executive with a number of hospital and
health care organizations beginning in 1985. From 2005 to 2008 he served as president and chief executive officer of Kent County Hospital in Warwick, Rhode Island, retiring in 2008. He currently
serves as an Executive-in-Residence at the University of Rhode Island. Mr. Crevier's executive service experience and accounting expertise bring valuable insight to the board of directors.
Francis X. Flaherty
is an Associate Justice of the Rhode Island Supreme Court and has served in that position since 2003. Prior to his
tenure on the court, Justice Flaherty served on the city council of the City of Warwick from 1978 until 1985. He served as the Mayor of Warwick from 1984 until 1991. Prior to his service on the court,
he was engaged in the private practice of law in Providence and Warwick, Rhode Island. Justice Flaherty's broad community service provides the board with a wide range of skills and experience to
address the many issues facing a financial institution in today's complex regulatory and economic environment.
Debra M. Paul
is the chief executive officer of Fellowship Health Resources, Inc. in Lincoln, Rhode Island, which provides
counseling and support services to people with emotional, mental and behavioral disorders. Prior to her appointment as chief executive officer in July 2013, she served as chief financial officer of
the organization from January 2012 until June 2013. From 2006 until October 2011, she served as chief financial officer of Women and Infants Hospital, Providence, Rhode Island. Ms. Paul is also
a Certified Public Accountant (non-active). Ms. Paul's accounting expertise and executive and financial management experience brings a valuable resource to the board.
Angelo P. Lopresti
has served as the Senior Vice President, General Counsel and Corporate Secretary since 2001 for IPG Photonics
Corporation, a NASDAQ-listed company in Oxford, Massachusetts, where he is the senior legal and business advisor to its senior management and board of directors. At IPG Photonics, a global
manufacturing company with over 4,200 employees, he manages the legal operations and strategy, including compliance, governance, contracting, litigation and securities. Prior to joining IPG Photonics,
Mr. Lopresti was a partner at Winston & Strawn LLP in New York, New York, where his legal practice focused on corporate, securities and mergers and acquisition matters.
Mr. Lopresti provides valuable legal, governance, compliance, executive compensation and public company experience to the board.
William A. White
has served as president and chief executive officer of Coastway Community Bank and its predecessor Warwick Credit Union
since 1994. Mr. White is a present and past board member of a number of community service organizations in Rhode Island, including the Providence Performing Arts Center and the Meeting Street
School. Mr. White's service on the board of directors provides the board with first hand information on the bank's operations and his leadership in the growth of the
6
bank
and its conversion to a stock savings bank in 2014 evidence strong leadership qualities that are an asset to the board.
Dennis M. Murphy
is a former Executive Vice President at Fleet Bank. Over a 25 year career, he led various divisions including
consumer banking, small business lending, and asset based lending. He also served as President and CEO of the United Way of Rhode Island. Mr. Murphy's extensive banking experience and
involvement in the southeastern New England community, provide Coastway Community Bank with valuable banking expertise.
James P. Fiore
is the founder and president of Thames Records Management, Inc., a digital scanning and software company located in
Stonington, Connecticut. Mr. Fiore founded the company in 2008 after selling AMS Imaging, a scanning and software company that he founded and operated for 40 years. Mr. Fiore has
served as corporate secretary of Coastway Community Bank since 2000. Mr. Fiore's extensive experience in records management and technology provide the board of directors with valuable expertise
on similar issues concerning the bank.
Lynda Dickinson
is the founder and chief executive officer of CHILD, Inc., a private non-profit comprehensive child development and
family services agency serving children from low-income families from pre-birth to age five through four facilities located in Kent County, Rhode Island. She founded the organization in 1976.
Ms. Dickinson is a present and past board member of a number of community service organizations in Rhode Island, including the New England Head Start Association. Ms. Dickinson's
financial and managerial skills bring valuable expertise to the board.
Phillip Kydd
serves as vice chairman of the board, a position he has held since 2010. Mr. Kydd has served as the Deputy Director of
the Rhode Island Department of Transportation and is currently an Executive in Residence at the University of Rhode Island. He started his service with the Department of Transportation in 1986 and
held the position of Assistant Director of Administration immediately before attaining the position of Deputy Director. Mr. Kydd had oversight of engineering, construction and professional
service contracts in excess of $1 billion. Mr. Kydd is a present and past board member of a number of community service and educational organizations, including the Miriam Hospital
Foundation, University of Rhode Island Transportation Center, University of Rhode Island Foundation and the New England Institute of Technology. Mr. Kydd's extensive executive service with the
state government provides the board with expertise in addressing budgetary planning, administration and contract negotiating.
David P. DiSanto
, a Certified Public Accountant, is a partner in the accounting firm of DiSanto, Priest & Co. and has over
37 years experience in public accounting. His accounting practice focuses on privately held businesses and high net worth individuals. Prior to establishing his firm in 1984, Mr. DiSanto
was employed by KPMG Peat Marwick and served as a manager in the Private Business Group. Mr. DiSanto's accounting expertise provides the board of directors with perspective on Coastway
Community Bank's financial and accounting practices as well as its relationship with internal and external auditors.
Malcolm G. Chace Jr.
has been an investment professional and portfolio manager for over 20 years. Since 2013, Mr. Chace has
been a Managing Director and Portfolio Manager at WhaleRock Point Partners. Prior to joining WhaleRock Point Partners, in 2008 Mr. Chace was a managing director and portfolio manager with
Oppenheimer and Company and formed the Nulman/Chace Group. Mr. Chace has been responsible for investment policy, asset allocation by way of custom tailoring portfolios, investment process and
relationship management during the course of his career. Mr. Chace has served as a board member at The Providence Center since 2015. Mr. Chace is present board member of Meeting Street,
including participating as chairman of the board from 2006-2010. He is a current member of the Sophia Academy Investment Committee and heads the Advisory Council for Gordon School. He previously
served as a board member for Woman and Infants Hospital from 2005-2008 and
7
the
Providence Public Library from 2005-2008. He currently also serves as a Director of the Dromoland Castle County Clare Ireland. Mr. Chace brings financial expertise and board experience to
our board.
Executive Officers Who Are Not Directors
Richard H. Petrarca
is executive vice president and chief operating officer. Prior to his
appointment in May 2013, he served as the chief financial officer, a position he held since 1993.
Paul G. Wielgus
has been executive vice president and chief credit officer since 2009. In this capacity he oversees the credit policy and
loan review function of the bank and chairs the credit committee. He also serves as the bank's Community Reinvestment Act officer. Prior to joining the bank in 2009 he served as senior vice president
and senior credit officer at Bank Rhode Island beginning in 1998. Previously, he held senior credit positions with BankBoston and the Rhode Island Hospital Trust National Bank. He has over
30 years of credit related experience. He is a past and present board member of a number of community service organizations.
Jeanette Fritz
has served as executive vice president and chief financial officer since May 2013. Prior to joining the bank, she was an
audit partner at KPMG LLP where she was employed from 1987 until 2012. Ms. Fritz primarily performed audits of community banks as well as other financial services organizations during
her tenure at KPMG. Ms. Fritz is a Certified Public Accountant.
Jana M. Planka
has been executive vice president and chief retail officer since January 2010. She has held a number of managerial
positions at Coastway Community Bank, including consumer and residential mortgage lending, sales and marketing and branch operations since joining the bank's predecessor in 1994. Prior to joining
Coastway Community Bank's predecessor, Ms. Planka was employed at Fleet National Bank in the retail and community lending divisions. She is a present and past board member of a number of
community service organizations in the Providence metropolitan area.
Stephen J. Gibbons
is executive vice president in charge of business lending, a position he has held since 2008. Prior to joining the
bank, he served in various senior lending positions with Bank Rhode Island from 1996 to 2008. Mr. Gibbons has served with a number of community service organizations in the Cranston
metropolitan area.
Board Independence
The Board of Directors has determined that each of our directors, with the exception of President and Chief Executive Officer William A. White
is "independent" as defined in the listing standards of the Nasdaq Stock Market. Mr. White is not independent because he is one of our executive officers.
In
determining the independence of the other directors, the board of directors considered loans made to Directors Crevier, Dickinson and Kydd, and to CHILD, Inc., for which
Director Dickinson is the Chief Executive Officer, and to 20 Centerville Road Associates, LLC, in which Director Flaherty has an ownership interest.
Board Leadership Structure and Risk Oversight
Our Board of Directors is chaired by Mark E. Crevier, who is a non-executive director. William A. White, our President and Chief Executive
Officer, is a member of our Board of Directors. We intend to continue to separate the Chairman and Chief Executive Officer positions. This structure ensures a greater role for the independent
directors in the oversight of Coastway Bancorp, Inc. and Coastway Community Bank and active participation of the independent directors in setting agendas and establishing priorities and
procedures for the work of the Board.
8
The
Board of Directors is actively involved in oversight of risks that could affect Coastway Bancorp, Inc. This oversight is conducted in part through committees of the Board of
Directors, but the full Board of Directors has retained responsibility for general oversight of risks. The Board of Directors satisfies this responsibility through full reports by each committee
regarding its considerations and actions, regular reports directly from officers responsible for oversight of particular risks within Coastway Bancorp, Inc. as well as through internal and
external audits. Risks relating to the direct operations of Coastway Community Bank are further overseen by the Board of Directors of Coastway Community Bank, who are the same individuals who serve on
the Board of Directors of Coastway Bancorp, Inc. The Board of Directors of Coastway Community Bank also has additional committees that conduct risk oversight separate from Coastway
Bancorp, Inc. Further, the Board of Directors oversees risks through the establishment of policies and procedures that are designed to guide daily operations in a manner consistent with
applicable laws, regulations and risks acceptable to the organization.
References to our Website Address
References to our website address throughout this proxy statement and the accompanying materials are for informational purposes only, or to
fulfill specific disclosure requirements of the Securities and Exchange Commission's rules. These references are not intended to, and do not, incorporate the contents of our website by reference into
this proxy statement or the accompanying materials.
Section 16(a) Beneficial Ownership Reporting Compliance
Our executive officers and directors and beneficial owners of greater than 10% of the outstanding shares of common stock are required to file
reports with the Securities and Exchange Commission disclosing beneficial ownership and changes in beneficial ownership of our common stock. Securities and Exchange Commission rules require disclosure
if an executive officer, director or 10% beneficial owner fails to file these reports on a timely basis. No executive officer, director or 10% beneficial owner of our shares of common stock failed to
file ownership reports for 2016 on a timely basis.
Code of Ethics
Coastway Bancorp, Inc. has adopted a Code of Ethics that is applicable to its senior financial officers, including the principal
executive officer, principal financial officer, principal accounting officer and all officers performing similar functions. We have posted this Code of Ethics on our Internet website at
www.coastway.com. Amendments to and waivers from the Code of Ethics will also be disclosed on Coastway Bancorp, Inc.'s website.
Attendance at Annual Meetings of Stockholders
Coastway Bancorp, Inc. does not have a written policy regarding director attendance at annual meetings of stockholders, although
directors are expected to attend these meetings absent unavoidable scheduling conflicts. All members of the Board attended the 2016 annual meeting.
Communications with the Board of Directors
Any stockholder who wishes to contact our Board of Directors or an individual director may do so by writing to: Coastway Bancorp, Inc.,
One Coastway Blvd., Warwick, Rhode Island 02886, Attention: Secretary. The letter should indicate that the sender is a stockholder and if shares are not held of record, should include appropriate
evidence of stock ownership. Communications are reviewed by the Secretary and are then distributed to the Board of Directors or the individual director, as appropriate, depending on the facts and
circumstances outlined in the communications received. The Secretary may
9
attempt
to handle an inquiry directly or forward a communication for response by the director or directors to whom it is addressed. The Secretary has the authority not to forward a communication if it
is primarily commercial in nature, relates to an improper or irrelevant topic, or is unduly hostile, threatening, illegal or otherwise inappropriate.
Meetings and Committees of the Board of Directors
The business of Coastway Bancorp, Inc. is conducted at regular and special meetings of the Board of Directors and its committees. In
addition, the "independent\" members of the Board of Directors (as defined in the listing standards of the NASDAQ Stock Market) meet in executive sessions. The standing committees of the Board of
Directors of Coastway Bancorp, Inc. are the Audit, Compensation and Nominating and Corporate Governance Committees.
The
Board of Directors had ten meetings during the year ended December 31, 2016. No member of the Board of Directors of Coastway Bancorp, Inc. or any committee thereof
attended fewer than 75% of the aggregate of: (i) the total number of meetings of the Board of Directors (held during the period for which he or she has been a director); and (ii) the
total number of meetings held by all committees on which he or she served (during the periods that he or she served).
Audit Committee.
The Audit Committee is comprised of Directors Paul (Chair), Murphy and DiSanto, each of whom is "independent"
in accordance with
applicable SEC rules and Nasdaq listing standards. The Audit Committee also serves as the audit committee of the board of directors of Coastway Community Bank. The Board of Directors has determined
that Ms. Paul qualifies as an "audit committee financial expert" as defined under applicable SEC rules because Ms. Paul is a Certified Public Accountant and has nearly nine years of
public accounting experience. In addition, each Audit Committee member has the ability to analyze and evaluate our financial statements as well as an understanding of the Audit Committee's functions.
Our
Board of Directors has adopted a written charter for the Audit Committee, which is available on our Internet website at www.coastway.com. As more fully described in the Audit
Committee Charter, the Audit Committee reviews the financial statements, records and affairs of Coastway Bancorp, Inc. and monitors adherence in accounting and financial reporting to accounting
principles generally accepted in the United States of America. The Audit Committee of Coastway Bancorp, Inc. met six times during the year ended December 31, 2016.
The
Audit Committee has issued a report that states as follows:
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We have reviewed and discussed with management our audited consolidated financial statements for the year ended December 31, 2016;
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We have discussed with the independent registered public accounting firm the matters required to be discussed by Statement on Auditing
Standards No. 16, "Communication With Audit Committees" as amended; and
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We received the written disclosures and the letter from the independent registered public accounting firm required by applicable requirements
of the Public Company Accounting Oversight Board regarding the independent registered public accounting firm's communications with the audit committee concerning independence, and have discussed with
the independent registered public accounting firm their independence from us.
Based
on the review and discussions referred to above, the Audit Committee recommended to the Board of Directors that the audited consolidated financial statements be included in our
Annual
Report on Form 10-K for the year ended December 31, 2016 for filing with the Securities and Exchange Commission.
10
This
report shall not be deemed incorporated by reference by any general statement incorporating by reference this proxy statement into any filing under the Securities Act of 1933, as
amended, or the Securities Exchange Act of 1934, as amended, except to the extent that Coastway Bancorp, Inc. specifically incorporates this information by reference, and shall not otherwise be
deemed filed under such Acts.
This
report has been provided by the Audit Committee:
Debra M. Paul (Chair)
Dennis M. Murphy
David P. DiSanto
Nominating and Corporate Governance Committee.
The Nominating and Corporate Governance Committee is comprised of Directors
DiSanto (Chairman),
Flaherty and Kydd, each of whom is independent in accordance with Nasdaq listing standards. The Nominating and Corporate Governance Committee also serves as the nominating committee of the board of
directors of Coastway Community Bank. The Nominating and Corporate Governance Committee operates under a written charter which is available on our Internet website at www.coastway.com. The Nominating
and Corporate Governance Committee of Coastway Bancorp, Inc. met three times during the year ended December 31, 2016.
The
Nominating and Corporate Governance Committee does not have a formal policy or specific guidelines regarding diversity among board members. However, the Nominating and Corporate
Governance Committee seeks members who represent a mix of backgrounds that will reflect the diversity of our stockholders, employees, and customers, and experiences that will enhance the quality of
the Board of Directors' deliberations and decisions. As the holding company for a community bank, the Nominating and Corporate Governance Committee also seeks directors who can continue to strengthen
Coastway Community Bank's position in its community and can assist Coastway Community Bank with business development through business and other community contacts. The Nominating and Corporate
Governance Committee considers the following criteria in evaluating and selecting candidates for nomination:
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the extent to which the candidate would contribute to the range of talent, skill and expertise appropriate for the Board of Directors;
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the candidate's relevant financial, regulatory and business experience and skills, including knowledge of the banking and financial services
industries, familiarity with the operations of public companies and the ability to read and understand financial statements;
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the candidate's familiarity with the Coastway Bancorp, Inc.'s market areas, participation in local business, civic, or charitable
organizations, and ties to local businesses;
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the candidate's personal and professional integrity, honesty and reputation;
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the candidate's ability to represent the best interests of Coastway Bancorp, Inc. and its stockholders, including potential for
conflicts of interest with the candidate's other endeavors;
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the candidate's ability to devote sufficient time and energy to perform his or her duties, including the ability to attend meetings;
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whether or not the candidate would be independent under applicable SEC rules and Nasdaq listing standards for purposes of service on the Board
of Directors or on any particular committee; and
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any other factors that the Nominating Committee deems relevant to a candidate's nomination, including the extent to which the candidate helps
the Board of Directors reflect the diversity of Coastway Bancorp, Inc.'s stockholders, employees, customers and communities, the current
11
The
Nominating and Corporate Governance Committee identifies nominees by first evaluating the current members of the Board of Directors willing to continue in service, including the
current members' board and committee attendance and performance, length of board service, experience and contributions, and independence. Current members of the Board of Directors with skills and
experience that are relevant to Coastway Bancorp, Inc.'s business and who are willing to continue in service are considered for re-nomination, balancing the value of continuity of service by
existing members of the board with that of obtaining a new perspective. If there is a vacancy on the Board of Directors because any member of the Board of Directors does not wish to continue in
service or if the Nominating and Corporate Governance Committee decides not to re-nominate a member for re-election, the Nominating and Corporate Governance Committee would determine the desired
skills and experience of a new nominee (including a review of the skills set forth above), may solicit suggestions for director candidates from all board members and may engage in other search
activities.
In
accordance with our Bylaws, a person is not eligible for election or appointment to the Board of Directors: (a) if such person has been the subject of supervisory action by a
financial or securities regulatory agency that resulted in a cease and desist order or an agreement or other written statement subject to public disclosure under 12 U.S.C. §1818(u), or any
successor provision; (b) if such person has been convicted of a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under state or
federal law; or (c) if such person is currently charged in any information, indictment, or other complaint with the commission or of participation in such a crime. No person may serve on the
Board of Directors and at the same time be a director or officer of a co-operative bank, credit union, savings bank, savings and loan association, trust company, bank holding company or banking
association (in each case whether chartered by a state, the federal government or any other jurisdiction), other than of a subsidiary of Coastway Bancorp, Inc., that engages in business
activities or solicits customers, whether through a physical presence or electronically, in the same market area as Coastway Bancorp, Inc. or any of its subsidiaries. No person shall be
eligible for election or appointment to the Board of Directors if such person (i) does not agree to comply with board policies, (ii) is a party to an agreement or understanding with a
third
party (a) to receive material benefits in the case of a sale of Coastway Community Bancorp, Inc. or (b) materially limits or impairs his voting discretion or discharge of his
fiduciary duty with respect to the fundamental strategic direction of the company or (iii) is the nominee or representative, as that term is defined in the regulations of the Board of Governors
of the Federal Reserve System, 12 C.F.R § 212.2(n), of a company the directors, partners, trustees or 10% stockholders of which would not be eligible for election or appointment to
the Board of Directors under the foregoing restrictions. The Board of Directors has the power to construe and apply the foregoing restrictions and to make all determinations necessary or desirable to
implement such provisions.
During
the year ended December 31, 2016 we did not pay a fee to any third party to identify or evaluate or assist in identifying or evaluating potential nominees for director.
The
Nominating and Corporate Governance Committee may consider qualified candidates for director suggested by our stockholders. Stockholders can suggest qualified candidates for director
by writing to our Secretary at One Coastway Blvd., Warwick, Rhode Island 02886. In order for the Nominating and Corporate Governance Committee to consider a candidate suggested by a stockholder, the
Secretary must receive a submission not less than 180 days prior to the anniversary of the prior year's annual meeting. The submission must include the
following:
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the name, address and contact information of the candidate, and the number of shares of Coastway Bancorp, Inc.'s common stock that are
owned by the candidate;
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a statement of the candidate's business and educational experience;
12
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such other information regarding the candidate as would be required to be included in Coastway Bancorp, Inc.'s proxy statement pursuant
to Securities and Exchange Commission Regulation 14A;
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the candidate's written consent to serve as a director;
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a statement that the writer is a stockholder and is proposing a candidate for consideration by the Nominating and Corporate Governance
Committee;
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a statement detailing any relationship between the candidate and any customer, supplier or competitor of Coastway Bancorp, Inc.;
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the name and address of the stockholder, and the number of shares of Coastway Bancorp, Inc.'s common stock that are held of record by
such stockholder; and
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detailed information about any relationship or understanding between the proposing stockholder and the candidate.
Submissions
that are received and that satisfy the above requirements are forwarded to the Nominating and Corporate Governance Committee for further review and consideration, using the same criteria
to evaluate the candidate as it uses for evaluating other candidates that it considers.
Compensation Committee.
The Compensation Committee is comprised of Directors Crevier (Chairman), Fiore, Dickinson and Kydd, each
of whom is
independent in accordance with applicable Nasdaq listing standards. No member of the Compensation Committee is a current or former officer or employee of Coastway Bancorp, Inc. or Coastway
Community Bank. The Compensation Committee also serves as the compensation committee of the board of directors of Coastway Community Bank. The Compensation Committee of Coastway Bancorp, Inc.
met three times during the year ended December 31, 2016.
The
Compensation Committee is responsible for establishing the compensation philosophy, developing compensation guidelines, establishing (or recommending to the entire Board of
Directors) the compensation of the Chief Executive Officer and the other senior executive officers. No executive officer who is also a director participates with respect to decisions on his
compensation. The Compensation Committee also administers the 2015 Equity Incentive Plan. The Compensation Committee may retain, at its discretion, compensation consultants to assist it in making
compensation related decisions. For 2016, the Compensation Committee engaged Pearl Meyer & Partners, an independent compensation consulting firm, as its advisor on executive and Board
compensation matters. Pearl Meyer & Partners provided the Compensation Committee with updates on current executive compensation trends.
The
Compensation Committee operates under a written charter which is available on our Internet website at www.coastway.com. This charter sets forth the responsibilities of the
Compensation Committee and reflects the Compensation Committee's commitment to create a compensation structure that not only compensates senior management but also aligns the interests of senior
management with those of our stockholders.
Our
goal is to determine appropriate compensation levels that will enable us to meet the following objectives:
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to attract, retain and motivate an experienced, competent executive management team;
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to reward the executive management team for the enhancement of stockholder value based on our annual performance and the market price of our
stock;
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to provide compensation rewards that are adequately balanced between short-term and long-term performance goals;
13
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to encourage ownership of our common stock through stock-based compensation to all levels of management; and
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to maintain compensation levels that are competitive with other financial institutions, particularly those in our peer group based on asset
size and market area.
The
Compensation Committee considers a number of factors in their decisions regarding executive compensation, including, but not limited to, the level of responsibility and performance
of the individual executive officers and the overall performance of Coastway Bancorp, Inc. The Compensation Committee also considers the recommendations of the Chief Executive Officer with
respect to the compensation of executive officers other than the Chief Executive Officer.
The
base salary levels for our executive officers are set to reflect the duties and levels of responsibilities inherent in the position and to reflect competitive conditions in the
banking business in Coastway Bancorp, Inc.'s market area. Comparative salaries paid by other financial institutions are considered in establishing the salary for our executive officers. In
setting the base salaries, the Compensation Committee also considers a number of factors relating to the executive officers, including individual performance, job responsibilities, experience level,
ability and the knowledge of the position. These factors are considered subjectively and none of the factors are accorded a specific weight.