EMPLOYEE BENEFIT PLANS

12 Months Ended

Jun. 30, 2015

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

NOTE 14 — EMPLOYEE BENEFIT PLANS

The Company has deferred compensation agreements with certain of its directors whereby director fees are withheld to fund insurance contracts from which the funds will ultimately be disbursed. These agreements require the Company to make payments to such directors beginning at the age set forth in the agreement or upon death of the director if prior to the minimum age requirement. The directors vest ratably over periods established in the agreements. Interest on the liabilities is charged to earnings based on imputed interest rates established at the beginning of each agreement, which range from 6.69% to 8.05% at both June 30, 2015 and 2014, respectively. The total expense incurred under these plans for the years ended June 30, 2015 and 2014 was $59 and $61, respectively. The recorded liability for these agreements was $739 and $775 at June 30, 2015 and 2014, respectively, and is included in other accrued liabilities in the consolidated balance sheet.

To provide funds for the payments under these deferred compensation agreements, the Company has purchased insurance policies on the lives of the directors covered by these plans.

The Company has the option of making an annual contribution to a profit-sharing plan for all full-time employees over the age of 21 having completed one year of service. The Company has exercised this option in 2015 and 2014, and as such, total expense under the profit sharing plan for each of the years ended June 30, 2015 and 2014 was $101 and $64, respectively.