The police arrested two men as part of a hate crime investigation involving a Ku Klux Klan-clad group.
It comes after pictures in the social media, which allegedly show people dressed in Newtownards on October 19 as members of the far-right group.
On Thursday, searches were carried out in the Co-City. Two men aged 33 and 36 were arrested and items removed for examination.
"The 33-year-old man was arrested on suspicion of producing written material to arouse hatred or fear, and on suspicion of possessing a class C drug," a PSNI spokesman said.
"The 36-year-old man was arrested on suspicion of producing written material to incite hatred or fear."
The two men who were arrested have since been released on bail. Further investigations are pending.