Employee Benefits

3 Months Ended

Mar. 31, 2018

Employee Benefits [Abstract]

Employee Benefits

8.     EMPLOYEE BENEFITS

ESOP

In connection with our conversion and public offering, we established an ESOP. The ESOP borrowed from the Company to purchase 350,000 shares in the offering. The issuance of the shares to the ESOP resulted in a contra account established in the shareholder’s equity section of the balance sheet for the unallocated shares at an amount equal to their $10.00 per share purchase price.

The Company may make discretionary contributions to the ESOP and pay dividends on unallocated shares to the ESOP, 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 and expense is recorded. No contributions to the ESOP were made during the three months ended March 31, 2018 and 2017, respectively.

A compensation expense charge is booked monthly during each year for the shares committed to be allocated to participants that year, determined with reference to the fair market value of our stock at the time the commitment to allocate the shares is accrued and recognized. For the three months ended March  31, 2018, we recognized compensation expense of $95,241 related to 5,795 shares of our common stock that are committed to be released to participants’ accounts at December 31, 2018. Of the 5,795 shares committed to be released, 1,996 shares were committed on March 31, 2018 and had no impact on the weighted average common shares outstanding for the three months ended March 31, 2018.For the three months ended March 31, 2017, we recognized compensation expense of $22,111 related to 1,433 shares of our common stock that were committed to be released to participants’ accounts at December 31, 2017. The commitment to release these shares was recognized on March 31, 2017 and had no impact on the weighted average common shares outstanding for the three months ended March 31, 2017.

RESTRICTED STOCK UNITS

RSUs were granted for the first time in February 2018. RSUs have a grant date value equal to the closing price of the Company’s stock on the dates the shares are granted. The RSUs vest 1/3 over three years from the date of grant.

As of March 31, 2018, 11,700 RSUs have been granted at a fair market value of $15.10. We recognized $6,292 of expense on these units in the first quarter of 2018. Total unrecognized compensation expense relating to outstanding and unvested RSUs was $170,338, which will be recognized over the remainder of the three-year vesting period.