Employee Stock Ownership Plan

6 Months Ended

Dec. 31, 2022

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 $76,549 and $83,812 for the three-month periods ended December 31, 2022 and 2021, respectively. ESOP compensation expense was $155,477 and $168,318 for the six-month periods ended December 31, 2022 and 2021, respectively.

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The ESOP shares as of December 31, 2022 and 2021 were as follows:

	December 31, 2022		December 31, 2021
Allocated shares		465,248		478,935
Committed-to-be-released shares		11,244		11,568
Unreleased shares		245,049		267,861
Total shares held by the ESOP		721,541		758,364
Fair value of unreleased shares	$	3,479,696	$	3,806,305

The Company may at times be required to repurchase shares at the ESOP participants’ request at the shares’ fair market value. During the three and six months ended December 31, 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 six months ended December 31, 2022 and 2021 totaled 30,843 and 8,285 shares, respectively.