Employee Stock Ownership Plan

3 Months Ended

Sep. 30, 2022

Employee Stock Ownership Plan [Abstract]

Note 8. Employee Stock Ownership Plan

The Company sponsors a leveraged employee stock ownership plan (the "ESOP") that covers all nonunion employees who work 1,000 or more hours per year and are employed on June 30. The Company makes annual contributions to the ESOP equal to the ESOP's debt service less dividends on unallocated shares received by the ESOP. All dividends on unallocated shares received by the ESOP are used to pay debt service. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. As the debt is repaid, shares are released and allocated to active employees, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with FASB ASC 718-40. Accordingly, the shares purchased by the ESOP are reported as Unearned ESOP shares in the balance sheets and the statements of changes in stockholders’ equity. As shares are released or committed-to-be-released, the Company reports compensation expense equal to the current average market price of the shares, and the shares become outstanding for earnings-per-share (EPS) computations. ESOP compensation expense was $78,927 and $84,506 for the three-month periods ended September 30, 2022 and 2021, respectively.

Index

The ESOP shares as of September 30, 2022 and 2021 were as follows:

	September 30, 2022		September 30, 2021
Allocated shares		496,091		483,984
Committed-to-be-released shares		5,622		5,784
Unreleased shares		250,671		273,645

Total shares held by the ESOP		752,384		763,413

Fair value of unreleased shares	$	3,456,753	$	3,981,535

The Company may at times be required to repurchase shares at the ESOP participants’ request at the shares’ fair market value. During the three months ended September 30, 2022 and 2021, the Company did not repurchase shares previously held by the ESOP.

The ESOP allows for eligible participants to take whole share distributions from the Plan on specific dates in accordance with the provisions of the Plan. Share distributions from the ESOP during the three months ended September 30, 2022 and 2021 totaled 0 and 3,236 shares, respectively.