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Retirement Plans
 3 Months Ended
Mar. 31, 2021
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

9. Retirement Plans

401(k) Plan - We maintain a 401(k) plan for qualified employees which is subject to “safe harbor” provisions. Those provisions include a matching employer contribution to consist of 100.0% of the first 3.0% of employee contributions and 50.0% of the next 2.0% of employee contributions. In addition, all employer matching funds vest immediately. We ceased making matching employer contributions effective May 16, 2020.  Contributions to the plan totaled $0 and $32,853 for the three months ended March 31, 2021 and 2020, respectively.

Employee Stock Ownership Plan - The Company adopted an Employee Stock Ownership Plan in December 2016, effective January 1, 2016.  The ESOP is a non-contributory defined contribution plan covering all employees of the Company. The Company sponsors and maintains the ESOP and related trust for the benefit of its eligible employees.  The ESOP is a leveraged ESOP, meaning funds are loaned to the ESOP from the Company.  The Company entered into a loan agreement with the ESOP on December 29, 2016, pursuant to which the ESOP may borrow up to $5.0 million to purchase shares of the Company’s common stock on the open market, which serve as collateral for the loan.  Between January 3, 2017 and February 28, 2017, the Company’s ESOP purchased 682,500 shares of the Company’s common stock of an aggregate cost of $4.9 million.  

Shares purchased by the ESOP are held in a suspense account for allocation among participants as contributions are made to the ESOP by the Company.  The share allocations will be accounted for at fair value at the date of allocation.  As of March 31, 2021, the ESOP had purchased 682,500 shares of the Company’s common stock in the open market at a cost of approximately $4.9 million, which the ESOP borrowed from the Company pursuant to the loan agreement.  A total of 178,251 shares with a fair value of $620,313 remained allocated or committed to be released from the suspense account as of March 31, 2021.  We recognized as compensation cost $22,086 and $56,516 during the three months ended March 31, 2021 and 2020, respectively.  The remaining 501,237 unallocated shares have an approximate fair value of $1,744,305, as of March 31, 2021.  As of March 31, 2021, the ESOP held a total of 170,419 allocated shares, 7,832 committed-to-be-released shares and 501,237 suspense shares.  Dividends on allocated and unallocated shares are used to pay down the ESOP loan from the Operating Partnership.  The share allocations are accounted for at fair value on the date of allocation as follows:

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

Number of Shares

 

 

Fair Value

 

 

Number of Shares

 

 

Fair Value

 

Allocated shares

 

 

170,419

 

 

$

593,058

 

 

 

170,419

 

 

$

426,048

 

Committed to be released shares

 

 

7,832

 

 

 

27,255

 

 

 

-

 

 

 

-

 

Total Allocated and Committed-to-be-Released

 

 

178,251

 

 

$

620,313

 

 

 

170,419

 

 

$

426,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated shares

 

 

501,237

 

 

 

1,744,305

 

 

 

509,069

 

 

 

1,272,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total ESOP Shares

 

 

679,488

 

 

$

2,364,618

 

 

 

679,488

 

 

$

1,698,720