Employee Stock Ownership Plan

9 Months Ended

Mar. 31, 2014

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 $144,323 and $129,101 for the three-month periods ended March 31, 2014 and 2013, respectively. ESOP compensation expense was $427,987 and $401,554 for the nine-month periods ended March 31, 2014 and 2013, respectively.

The ESOP shares as of March 31, 2014 and 2013 were as follows:

	March  31, 2014		March 31, 2013
Allocated Shares		453,026		449,338
Committed-to-be-released shares		14,375		15,000
Unreleased shares		102,291		121,666
Total shares held by the ESOP		569,692		586,004
Fair value of unreleased shares	$	2,787,430	$	3,152,366