XML 27 R17.htm IDEA: XBRL DOCUMENT

Stock Based Compensation

3 Months Ended

Mar. 31, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

8.	Stock Based Compensation

Employee Stock Ownership Plan

The Company maintains the First Seacoast Bank Employee Stock Ownership Plan (“ESOP”) to provide eligible employees of the Company the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal limits. The number of shares committed to be released per year through 2038 is 11,924.

The ESOP funded its purchase of 238,473 shares through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. The ESOP trustee is repaying the loan principally through the Bank’s contributions to the ESOP over the remaining loan term that matures on December 31, 2038. At March 31, 2022 and December 31, 2021, the remaining principal balance on the ESOP debt was $2.1 million.

Under applicable accounting requirements, the Company records compensation expense for the ESOP equal to fair market value of shares when they are committed to be released from the suspense account to participants’ accounts under the plan. Total compensation expense recognized in connection with the ESOP for the three months ended March 31, 2022 and 2021 was $31,000 and $28,000, respectively. At March 31, 2022 and December 31, 2021, total unearned compensation for the ESOP was $2.0 million.

	March 31, 2022		December 31, 2021
Shares held by the ESOP include the following:
Allocated		35,772		23,848
Committed to be allocated		2,981		11,924
Unallocated		199,720		202,701
Total		238,473		238,473

The fair value of unallocated shares was approximately $2.1 million and $2.2 million at March 31, 2022 and December 31, 2021, respectively.

Equity Incentive Plan

Effective May 27, 2021, the Company adopted the First Seacoast Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The Company’s stockholders approved the 2021 plan on that date. The 2021 Plan provides for the granting of incentive and non-statutory stock options to purchase shares of common stock and the granting of shares of restricted stock awards and restricted stock units.

The 2021 Plan authorizes the issuance or delivery to participants of up to 417,327 shares of common stock. Of this number, the maximum number of shares of common stock that may be issued pursuant to the exercise of stock options is 298,091 shares and the maximum number of shares of common stock that may be issued as restricted stock awards or restricted stock units is 119,236 shares. The exercise price of stock options may not be less than the fair market value on the date the stock option is granted. Further, stock options may not be granted with a term that is longer than 10 years.

As of March 31, 2022, no stock options have been granted. On November 18, 2021, 118,270 restricted stock awards were granted to directors and certain members of management at $9.99 per share. The total fair value related to the November 18, 2021 grant was $1.2 million. Restricted stock awards time-vest over a three year period and have been fair valued as of the date of grant. The holders of restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting rights when granted and dividend rights when vested. A summary of non-vested restricted shares outstanding as of March 31, 2022 and changes during the three months ended is presented below:

	March 31, 2022
	Number of Shares		Weighted Average Grant Value
Restricted stock:
Non-vested at beginning of period		118,270	$	9.99
Granted		—		—
Vested		—		—
Forfeited		—		—
Non-vested at end of period		118,270	$	9.99

For the three months ended March 31, 2022, the expense recognized for this equity incentive plan was $99,000 which provided a tax benefit of $27,000. At March 31, 2022 and December 31, 2021, total unrecognized compensation expense for this equity incentive plan was $1.0 million and $1.1 million, respectively, with a 2.6 and 2.9 year weighted average future recognition period, respectively.