EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS

12 Months Ended

Sep. 30, 2021

EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]

EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS

Until September 30, 2021, the Company maintained an Employee Stock Ownership Plan (“ESOP”) for eligible employees who have 1,000 hours of employment with the Bank, have worked at least one year at the Bank and who have attained age 21. ESOP expense of $3.1 million, $3.0 million and $2.9 million was recorded for the fiscal years ended September 30, 2021, 2020 and 2019, respectively.

Contributions to the ESOP and shares released from suspense are allocated among ESOP participants on the basis of compensation in the year of allocation. Benefits generally become 100% vested after seven years of credited service. Prior to the completion of seven years of credited service, a participant who terminates employment for reasons other than death or disability receives a reduced benefit based on the ESOP’s vesting schedule. Forfeitures are reallocated among remaining participating employees in the same proportion as contributions. Benefits are payable in the form of stock upon termination of employment. The Company’s contributions to the ESOP are not fixed, so benefits payable under the ESOP cannot be estimated.

For the fiscal years ended September 30, 2021, 2020 and 2019, 54,985 shares, 157,909 shares and 98,753 shares, from the suspense account, with a fair value of $52.48, $19.22 and $32.61 per share, respectively, were released. For the fiscal years ended September 30, 2021, 2020 and 2019, allocated shares and total ESOP shares reflect 22,960 shares, 59,865 shares and 79,926 shares, respectively, withdrawn from the ESOP by participants who were no longer with the Company or by participants diversifying their holdings. At September 30, 2021, 2020 and 2019, there were 4,192, 5,662 and 5,336 shares purchased, respectively, for dividend reinvestment.

ESOP shares were as follows:


	At September 30,
(Dollars in Thousands)	2021		2020		2019
Allocated shares	787,299		809,116		778,088
Unearned shares	—		—		—
Total ESOP shares	787,299		809,116		778,088
Fair value of unearned shares	$	—	$	—	$	—

The Company also has a profit sharing plan covering substantially all full-time employees. Profit sharing expense included in compensation and benefits, for the fiscal years ended September 30, 2021, 2020 and 2019 was $3.1 million, $3.1 million and $3.0 million, respectively. As of October 1, 2021, the Company modified its profit sharing plan to incorporate a Qualified Automatic Contribution Arrangement safe harbor provision, whereby employee contributions are matched at 100% of the first 6% of eligible compensation contributed.