Note 12 - ESOP

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Employees participate in an Employee Stock Ownership Plan ("ESOP"). The ESOP borrowed funds from the Company to purchase 431,836 shares of stock at $10 per share. The Bank makes discretionary contributions to the ESOP, as well as paying dividends on unallocated shares to the ESOP, and the ESOP uses funds it receives to repay the loan. When loan payments are made, ESOP shares are allocated to participants based on relative compensation. Participants receive the shares at the end of employment. Dividends on allocated shares increase participants accounts. 

There were no contributions to the ESOP during the first six months of 2022, as the initial annual loan payment will be made during the fourth quarter. Expense recorded was $54,000 and $103,000 during the three and six months ended months ended June 30, 2022, and is recognized over the service period. 

Shares held by the ESOP were as follows: 

	As of June 30, 2022
	2022
	(Dollars in thousands)
Shares committed for allocation		8,640
Unallocated		423,196
Total ESOP shares		431,836
Fair value of unearned shares at June 30, 2022	$	4,731