Note

Employee Stock Ownership Plan

The Company maintains a leveraged employee stock ownership plan (“ESOP”) that covers substantially all employees. The ESOP was established in conjunction with the Company’s stock offering completed in

October 2017

and operates on a plan year ending

September 30.

The loan to fund the acquisition of stock by the ESOP was made by the Company. The Bank makes annual contributions to the ESOP equal to the ESOP’s debt service. The ESOP shares initially were pledged as collateral for this debt. As the debt is repaid, shares are released from collateral and allocated to active participants, based on the proportion of debt service paid in the year. Because the debt is intercompany, it is eliminated in consolidation for presentation in these financial statements. The shares pledged as collateral are reported as unearned ESOP shares in the balance sheet. As shares are committed to be released from collateral and allocated to active participants, the Company reports compensation expense equal to the current market price of the shares and the shares will become outstanding for earnings-per-shares (EPS) computations. During the period ended

June 30, 2018,

6,480

shares were committed to be released. During the period ended

June 30, 2018,

the average fair value per share of stock was

$10.95

resulting in total ESOP compensation expense of

$71

for the

six

months ended

June 30, 2018.

The ESOP shares as of

June 30, 2018

and

December 31, 2017

were as follows:

	June 30, 2018		December 31, 2017
Shares committed to be released and allocated to participants		9,427		2,947
Total unallocated shares		249,783		256,263
Total ESOP shares		259,210		259,210