ESOP

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Employees participate in an Employee Stock Ownership Plan (ESOP). The ESOP borrowed funds from the Company to purchase 2,281,800 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 nine months of 2021, as the initial annual loan payment will be made during the fourth quarter. Expense recorded was $554 thousand during the first nine months of 2021, and is recognized over the service period.

Shares held by the ESOP were as follows:


	Nine Months Ended September 30,
	2021
	(Dollars in thousands)

Allocated to participants	41,290
Unallocated	2,240,510
Total ESOP shares	2,281,800

Fair value of unearned shares at September 30, 2021	$	30,897