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Employee Stock Ownership Plan

6 Months Ended

Jun. 30, 2022

Employee Stock Ownership Plan [Abstract]

(10) Employee Stock Ownership Plan

The Bank established an 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 a total of 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 the prime rate (3.25% as of December 31, 2021). 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:



	June 30, 2022		December 31, 2021
Allocated		461,772		372,014
Committed to be released		44,879		89,758
Unallocated		1,032,217		1,077,096
Total		1,538,868		1,538,868

The fair value of unallocated shares was approximately $16.2 million at June 30, 2022.

Total compensation expense recognized in connection with the ESOP for the three months ended June 30, 2022 and 2021 was $349,000 and $361,000, respectively. Total compensation expense recognized for the six months ended June 30, 2022 and 2021 was $732,000 and $647,000, respectively.