Employee Stock Ownership Plan

9 Months Ended

Mar. 31, 2020

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 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 $73,241 and $93,861 for the three-month periods ended March 31, 2020 and 2019, respectively. ESOP compensation expense was $239,061 and $297,670 for the nine-month periods ended March 31, 2020 and 2019, respectively.

The ESOP shares as of March 31, 2020 and 2019 were as follows:

	March 31, 2020		March 31, 2019
Allocated shares		452,763		441,753
Committed-to-be-released shares		10,625		11,250
Unreleased shares		3,541		17,916
Total shares held by the ESOP		466,929		470,919
Fair value of unreleased shares	$	65,544	$	443,421

The Company may at times be required to repurchase shares at the ESOP participants’ request at the fair market value. During the three and nine months ended March 31, 2020 the Company repurchased 0 and 2,180 shares previously held by the ESOP for $0 and $47,949, respectively. During the three and nine months ended March 31, 2019 the Company did not repurchase any shares 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 provision of the Plan.  Share distributions from the ESOP during the nine months ended March 31, 2020 and 2019 totaled 2,180 and 17,279, respectively.