Employee Stock Ownership Plan

3 Months Ended

Sep. 30, 2019

Employee Stock Ownership Plan [Abstract]

Employee Stock Ownership Plan

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 statement 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 $87,833 and $101,361 for the three-month periods ended September 30, 2019 and 2018, respectively.

The ESOP shares as of September 30, 2019 and 2018 were as follows:

	September 30, 2019		September 30, 2018
Allocated shares		454,610		459,032
Committed-to-be-released shares		3,542		3,750
Unreleased shares		10,624		25,416
Total shares held by the ESOP		468,776		488,198
Fair value of unreleased shares	$	252,001	$	759,684

The Company may at times be required to repurchase shares at the ESOP participants’ request at the fair market value. During the three months ended September 30, 2019 the Company repurchased 333 shares previously held by the ESOP for $8,291. During the three months ended September 30, 2018 the Company did not repurchase any shares held in the ESOP.

The ESOP allows for eligible participants to take whole share distributions from the plan on specific dates in accordance with the provision of the plan.  There were no share distributions from the ESOP during the three months ended September 30, 2019 and 2018.