Stock Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

NOTE 8 – STOCK BASED COMPENSATION

In May 2020, the stockholders approved the Cullman Bancorp, Inc. 2020 Equity Incentive Plan (the “2020 Equity Incentive Plan”) for employees and directors of the Company. The Equity Incentive Plan authorizes the issuance of up to 200,000 shares of the Company’s common stock, with no more than 80,000 of shares as restricted stock awards and 120,000 as stock options, either incentive stock options or non-qualified stock options. These amounts have been subsequently converted at the exchange ratio of 2.8409-to-one for the mutual-to-stock conversion, rounding down for fractional shares. The exercise price of options granted under the Equity Incentive Plan may not be less than the fair market value on the date the stock option is granted. The compensation committee of the board of directors has sole discretion to determine the amount and to whom equity incentive awards are granted.

As of March 31, 2022, there were no shares available for future grants under this plan, except in the event of forfeitures.

NOTE 8 – STOCK BASED COMPENSATION (Continued)

The following table summarizes stock option activity for the three months ended March 31, 2022:

	Options		Weighted- Avg  Exercise Price/Share		Weighted- Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value(1)
Outstanding Beginning of period		340,903	$	9.86
Granted		—		—
Exercised		—		—
Forfeited		—
Outstanding End of Period		340,903	$	9.86		8.38	$	661
Vested or expected to vest		340,903	$	9.86		8.38	$	661
Exercisable at period end		68,177

(1) Based on close price of $11.80 as of March 31, 2022. Intrinsic value for stock options is defined as the difference between the current market value and the exercise price multiplied by the number of in-the-money options.

Stock based compensation expense for stock options for the three months ended March 31, 2022 and 2021 was $27 for each quarter. Unrecognized compensation cost related to nonvested stock options at March 31, 2022 was $360 and is expected to be recognized over 3.33 years.

The following table summarizes non-vested restricted stock activity for the quarter ended March 31, 2022:

	Shares
Balance – January 1, 2022		181,811
Granted		—
Vested		—
Balance – March 31, 2022		181,811

NOTE 8 – STOCK BASED COMPENSATION (Continued)

The following table summarizes the restricted stock fair value:

Date of Awards	Shares		Vesting Period (years)	Fair Value
August 2020		227,266	5	$	9.86

Stock-based compensation for the three months ended March 31, 2022 and 2021 was $112 for each quarter. Unrecognized compensation expense for nonvested restricted stock awards was $1,493 as of March 31, 2022 and is expected to be recognized over 3.33 years.