Quarterly report pursuant to Section 13 or 15(d)

Note 12 - ESOP

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Note 12 - ESOP
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Equity [Text Block]

Note 12: ESOP

 

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 three months of 2023, as the annual loan payment will be made during the fourth quarter. Expense recorded was $55,000 and $54,000 during the three months ended March 31, 2023 and 2022, respectively, and is recognized over the service period. 

 

Shares held by the ESOP were as follows: 

 

    Three Months Ended March 31,  
   

2023

    

2022

  
   

(Dollars in thousands)

  

Shares allocated

     22,009       -  

Shares committed for allocation

     5,404       4,320  

Unallocated

     404,423       427,516  

Total ESOP shares

     431,836       431,836  
                 

Fair value of unearned shares as March 31, 2023 and 2022, respectively

   $ 3,676     $ 5,164  

 

Fair value of unearned shares is based on a stock price of $9.09 and $12.08 as of March 31, 2023 and 2022, respectively.