Note 11 - Employee Stock Ownership Plan

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Employee Stock Ownership Plan [Text Block]

(11)    Employee Stock Ownership Plan

The Bank established an employee stock ownership plan (the “ESOP”) to provide eligible employees the opportunity to own Company stock. The plan is a tax-qualified plan for the benefit of all Bank employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax law limits. The ESOP acquired 1,538,868 shares between the initial and second-step stock offerings with the proceeds of a loan totaling $11.8 million. The loan is payable over 15 years at a rate per annum equal to 5.00%. Shares used as collateral to secure the loan are released and available for allocation to eligible employees as the principal and interest on the loan is paid. The number of shares committed to be released per year through 2033 is 89,758.

Shares held by the ESOP include the following:

	September 30, 2024		December 31, 2023
Allocated		641,288		551,530
Committed to be allocated		67,318		89,758
Unallocated		830,262		897,580
Total		1,538,868		1,538,868

The fair value of unallocated shares was approximately $9.0 million at September 30, 2024.

Total compensation expense recognized in connection with the ESOP for the three months ended  September 30, 2024 and 2023 was $239,000 and $213,000, respectively. Total compensation expense recognized for the nine months ended September 30, 2024 and 2023 was $673,000 and $568,000, respectively.