Employee Stock Ownership Plan

3 Months Ended

Sep. 30, 2012

Employee Stock Ownership Plan

Employee Stock Ownership Plan

Note 6. 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 statement of financial position. 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 $139,701 for the three-month period ended September 30, 2012 and $127,761 for the three-month period ended September 30, 2011. The ESOP shares as of September 30, 2012 and 2011 were as follows:

	September 30,		September 30,
	2012		2011
Allocated shares		456,909		440,023
Committed-to-be-released shares		5,000		5,208
Unreleased shares		131,666		152,292
Total shares held by the ESOP		593,575		597,523
Fair value of unreleased shares	$	3,465,449	$	3,531,651