(16)	BENEFIT PLANS

Defined Contribution Plan:

The Bank has a qualified contributory defined contribution plan available to all eligible employees. The plan allows participating employees to make tax-deferred contributions under Internal Revenue Code Section 401(k). Company contributions to the plan amounted to $387,000 and $378,000 for the years ended September 30, 2016 and 2015, respectively.

Employee Stock Ownership Plan:

On October 6, 2008, the Company established a leveraged ESOP covering substantially all employees. The ESOP trust acquired 203,363 shares of Company common stock at a cost of $10.00 per share financed by a term loan with the Company. The employer loan and the related interest income are not recognized in the consolidated financial statements as the debt is serviced from Company contributions. Dividends payable on allocated shares are charged to retained earnings and are satisfied by the allocation of cash dividends to participant accounts or by utilizing the dividends as additional debt service on the ESOP loan. Dividends payable on unallocated shares are not considered dividends for financial reporting purposes. Shares held by the ESOP trust are allocated to participant accounts based on the ratio of the current year principal and interest payments to the total of the current year and future years’ principal and interest to be paid on the employer loan. Compensation expense is recognized based on the average fair value of shares released for allocation to participant accounts during the year with a corresponding credit to stockholders’ equity. Compensation expense recognized for the years ended September 30, 2016 and 2015 amounted to $628,000 and $851,000, respectively. The employer loan was fully repaid in December 2015 and all shares of Company stock have been allocated to participant accounts as of September 30, 2016.

Company common stock held by the ESOP trust at September 30, 2016 and 2015 was as follows:

	2016		2015

Allocated shares		172,870		164,409
Unearned shares		-		19,691
Total ESOP shares		172,870		184,100

Fair value of unearned shares	$	-	$	669,000