NOTE 11. EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS

The Company maintains an Employee Stock Ownership Plan (ESOP) for eligible employees who have 1,000 hours of employment with the Bank, have worked one year at the Bank and who have attained age 21. ESOP expense of $694,000, $696,000 and $737,000 was recorded for the years ended September 30, 2013, 2012 and 2011, respectively. Contributions of $485,548, $659,000 and $772,000 were made to the ESOP during the years ended September 30, 2013, 2012 and 2011, respectively.

Contributions to the ESOP and shares released from suspense are allocated among ESOP participants on the basis of compensation in the year of allocation. Benefits generally become 100% vested after seven years of credited service. Prior to the completion of seven years of credited service, a participant who terminates employment for reasons other than death or disability receives a reduced benefit based on the ESOP’s vesting schedule. Forfeitures are reallocated among remaining participating employees in the same proportion as contributions. Benefits are payable in the form of stock upon termination of employment. The Company’s contributions to the ESOP are not fixed, so benefits payable under the ESOP cannot be estimated.

For the years ended September 30, 2013, 2012 and 2011, 17,715 shares, 27,846 shares and 43,898 shares with a fair value of $37.99, $23.65 and $17.58 per share, respectively, were released. Also for the years ended September 30, 2013, 2012 and 2011, allocated shares and total ESOP shares reflect 45,225 shares, 28,486 shares and 20,938 shares, respectively, withdrawn from the ESOP by participants who are no longer with the Company or by participants diversifying their holdings. At September 30, 2013 there were 3,526 shares purchased for dividend reinvestment. At September 30, 2012, no shares were purchased for dividend reinvestment. At September 30, 2011 there were 11,567 shares purchased for dividend reinvestment.

Year-end ESOP shares are as follows:

September 30,	2013		2012		2011
	(Dollars in Thousands)

Allocated shares		223,868		247,814		248,427
Unearned shares		-		-		-
Fair value of unearned shares	$	223,868	$	247,814	$	248,427

The Company also has a profit sharing plan covering substantially all full-time employees. Contribution expense to the profit sharing plan, included in compensation and benefits, for the years ended September 30, 2013, 2012 and 2011 was $774,000, $775,000 and $780,000, respectively.