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Employee Stock Ownership and 401(k) Plan | 12 Months Ended
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Sep. 30, 2020
Retirement Benefits [Abstract] |
Employee Stock Ownership and 401(k) Plan | Employee Stock Ownership and 401(k) Plan The Timberland Bank Employee Stock Ownership and 401(k) Plan (“KSOP”) is comprised of two components, the ESOP and the 401(k) Plan. The KSOP benefits employees with at least one year of service who are 18 years of age or older. The Bank may fund the ESOP with contributions of cash or stock, and may fund the 401(k) Plan with contributions of cash. Employee vesting occurs over six years. ESOP In January 1998, the ESOP borrowed $7,930,000 from the Company to purchase 1,058,000 shares of common stock of the Company. The loan was repaid primarily from the Bank’s contributions to the ESOP and was fully repaid by March 31, 2019. The interest rate on the loan was 8.5%. Interest expense on the ESOP debt was $9,000 and $53,000 for the years ended September 30, 2019 and 2018, respectively. The amount of the Bank's annual contribution was discretionary, except that it must have been sufficient to enable the ESOP to service its debt. All dividends received by the ESOP were used to pay debt service through March 31, 2019. The dividends received after March 31, 2019 have been paid directly to participants. Dividends of $176,000 and $291,000 were used to service the debt during the years ended September 30, 2019 and 2018, respectively. As the Plan made each payment of principal and interest, an appropriate percentage of stock was released and allocated annually to eligible employee accounts, in accordance with applicable regulations. As of September 30, 2020, an aggregate of 642,302 ESOP shares, which were previously released for allocation to participants, had been distributed to participants. Shares held by the ESOP as of September 30, 2020, 2019 and 2018 were classified as follows:
| 2020 |  | 2019 |  | 2018
Unallocated shares | — |  |  | — |  |  | 17,639 |
Shares released for allocation | 415,698 |  |  | 425,281 |  |  | 451,644 |
Total ESOP shares | 415,698 |  |  | 425,281 |  |  | 469,283 |
The approximate fair market value of the ESOP’s unallocated shares at September 30, 2018 was $551,000. There was no compensation expense recognized for the ESOP for the year ended September 30, 2020. Compensation expense recognized for the ESOP for the years ended September 30, 2019 and 2018 was $318,000, and $823,000, respectively. 401(k) Plan Eligible employees may contribute a portion of their wages to the 401(k) Plan up to the maximum established under the Internal Revenue Code. Contributions by the Bank are at the discretion of the Board except for a safe harbor contribution of 3% of eligible employees' wages, which is mandatory according to the plan document. Bank contributions totaled $908,000, $743,000 and $379,000 for the years ended September 30, 2020, 2019 and 2018, respectively.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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