Company: NECB
Filing Date: 2025-06-23
Form Type: 11-K
Source: 0001104659-25-061580
Chunk: 6

Company: NorthEast Community Bancorp, Inc./MD/
Filing Date: 2025-06-23
Form: 11-K
Chunk 6
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Forfeitures can be used to reduce administrative expenses or to reduce employer contributions. There was no forfeiture activity during
the year ended on December 31, 2024. Total unapplied forfeiture were $3 at December 31, 2024 and 2023.

Benefits may be distributed to participants
upon termination of employment by reason of retirement, disability, death, or other separation from service. Distributions from the Plan
may be made in the form of a lump sum or annuity.

A participant may also request a withdrawal
upon attainment of age 59 ½ or upon demonstration by the participant to the plan administrator that the participant is suffering
from “hardship”, as defined in the plan document. A participant may also take a distribution from their rollover account balance
at any time.

Participants may borrow from their fund
accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50 percent of their vested account balance. The loans are
secured by the balance in the participant's account. Loans must bear a reasonable rate of interest. All loans must be repaid within five
years unless the proceeds are used to acquire a principal residence, in which case a longer repayment period is allowed. No more than
two loans may be outstanding at any time. Principal and interest is generally paid ratably through payroll deductions each pay period.

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NORTHEAST COMMUNITY BANK EMPLOYEES’

SAVINGS & PROFIT SHARING PLAN AND TRUST

NOTES TO FINANCIAL STATEMENTS</div>

| B. | Summary of Significant Accounting Policies: |

The accompanying financial statements
have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States
of America.

Investments are reported at fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants on the measurement date. See Note C for discussion of fair value measurements.

Purchases and sales of securities are
recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net
appreciation (depreciation) includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

Notes receivable from participants are
measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is