Company: NECB
Filing Date: 2025-06-23
Form Type: 11-K
Source: 0001104659-25-061580
Chunk: 7

Company: NorthEast Community Bancorp, Inc./MD/
Filing Date: 2025-06-23
Form: 11-K
Chunk 7
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 recorded on the accrual basis. No
allowance for credit losses has been recorded as of December 31, 2024 or 2023. Delinquent participant loans are reclassified as distributions
based upon the terms of the plan document.

Benefits are recorded when paid.

Expenses that are paid by the Company
are excluded from these financial statements. The majority of expenses incurred in the administration of the Plan are paid by the Company.
Remaining expenses are paid by the Plan.

The preparation of financial statements
in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities.
Actual results could differ from those estimates.

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NORTHEAST COMMUNITY BANK EMPLOYEES’

SAVINGS & PROFIT SHARING PLAN AND TRUST

NOTES TO FINANCIAL STATEMENTS</div>

C. :

The framework for measuring fair value
provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the
highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to
unobservable inputs (level 3). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows:

Level 1 - Inputs to the valuation
methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.

Level 2 - Inputs to the valuation
methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or
liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived
principally from or corroborated by observable market data by correlation or other means. If the assets or liability has a specified (contractual)
term, the level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 - Inputs to the valuation
methodology are unobservable and significant to the fair value measurement.

The asset or liability’s fair
value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value
measurement.

Following is a description of the valuation
methodologies used by the Plan:

Northeast Community Bancorp, Inc. Stock – At December