Employee Stock Ownership Plan

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Employee Stock Ownership Plan

13. Employee Stock Ownership Plan

The Company sponsors an employee stock ownership plan (“ESOP”) that covers all employees who meet certain service requirements. The Company makes annual contributions to the ESOP in amounts as defined by the plan document. These contributions are used to pay debt service. As the debt is repaid, shares are released from collateral and allocated to active employees, based on the proportion of debt service paid in the year.

In 2024, the ESOP borrowed $17.9 million payable to the Company for the purpose of purchasing shares of the Company’s common stock. A total of 1,587,000 shares were purchased with the loan proceeds as part of the Company’s initial stock offering. The ESOP loan accrues interest at the the national prime rate adjusted quarterly. Principal and interest payments are made annually. Since the loan is internally leveraged, the Company does not report the loan receivable on the statement of financial condition. Any interest accrued and paid is eliminated as part of the consolidated statements of operations.

The Company recognized ESOP expense of $769 thousand for the year ended December 31, 2024.

The following table presents the components of the ESOP shares:

	December 31, 2024
Previously allocated shares	$	—
Shares committed to be released in current year		63,480
Unearned ESOP shares		1,523,520
Total ESOP shares	$	1,587,000