2021 Annual Report

The following table presents an analysis of nonvested restricted stock units outstanding for the year ended December 31, 2021 and 2020:

December 31, 2021

December 31, 2020

Weighted

Weighted Average

Number of Average Grant Shares Date Fair Value

Shares Exercise Price

Nonvested at December 31, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205,666 $ Granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191,468 Vested. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,146) Forfeited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,080) Nonvested at December 31, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344,908 $

12.27

— $

—

17.22 205,666

12.27

12.27 12.27

— —

— —

15.02 205,666 $

12.27

Compensation expense associated with the restricted stock units is recognized on a straight-line basis over the period that the restrictions associated with the units lapse based on the total cost of the unit at the grant date. For the years ended December 31, 2021 and 2020, the Company recognized compensation expense for restricted stock units of $731,000 and $43,000, respectively. No compensation expense was recognized for restricted stock units for the year ended December 31, 2019. As of December 31, 2021, there was $5.0 million of total unrecognized compensation cost related to nonvested restricted stock units granted under the 2019 EIP that is expected to be recognized over a weighted-average period of 3.5 years. Note 17: Profit Sharing Plan The Company has a combined profit sharing 401(k) plan which provides that an annual contribution, up to 100% of each participating employee’s total pay, may be contributed to the plan. Employees are eligible to participate after meeting certain eligibility requirements as defined in the plan and are allowed to make pre-tax contributions up to the maximum amount allowed by the Internal Revenue Service. The terms of the 401(k) plan require employer match contributions equal to 100% of the employee contributions up to 4% of pay. In addition, the terms of the plan allow for discretionary contributions as determined by the Company and approved by the Board of Directors. The employer match contributions for the 401(k) plan were $840,000, $743,000, and $603,000 for the years ended December 31, 2021, 2020 and 2019, respectively. The total employer profit sharing contributions to the plan were $636,000, $533,000, and $473,000 for the years ended December 31, 2021, 2020 and 2019, respectively. Note 18: Deferred Compensation Plan In 2013, the Company implemented a deferred compensation plan for certain employees which allows the Company to make a discretionary contribution to the account of any employee designated as a participant in the plan based upon the participant’s performance for the calendar year. Company contributions to the plan vest on the fourth anniversary of the last day of the calendar year for which the contribution was made to the plan and accrue interest at a rate equal to the Bank’s return on average equity for the immediately preceding calendar year, or an alternative rate set by the Company’s board of directors. Distribution of amounts contributed under the plan, including accrued interest, is made in a lump sum cash payment within 75 days following the date such amounts become vested. As of December 31, 2021 and 2020, the Company had a liability of $3.1 million and $3.6 million, respectively, recorded on the consolidated balance sheets. There were no new contributions made to the plan during the years ended December 31, 2021 and 2020. Note 19: Preferred Stock On August 17, 2021, the Company announced the closing of its underwritten public offering of 2,400,000 depositary shares, each representing a 1/100 th interest in a share of the Company’s 5.875% Non-Cumulative Perpetual Preferred Stock, Series A, $0.01 par value per share (“Series A Preferred Stock”). On August 20, 2021, the underwriters

120