Post-Retirement Benefits

9 Months Ended

Mar. 31, 2022

Compensation And Retirement Disclosure [Abstract]

Post-Retirement Benefits

Note 6. Post-Retirement Benefits

Employee Pension Plan

The Company maintains a non-contributory defined benefit pension plan that covers employees meeting specific requirements as to age and length of service. The Company’s contributions to this qualified plan are determined on the basis of (i) the maximum amount that can be deducted for federal income tax purposes, and (ii) the amount determined by a consulting actuary as necessary to avoid an accumulated funding deficiency as defined by the Employee Retirement Income Security Act of 1974 (“ERISA”). Contributions are intended to provide for benefits attributed to service to date but also those expected to be earned in the future. On February 15, 2017, the Board of Directors approved the freezing of the defined benefit pension plan effective May 1, 2017.

Supplemental Executive Retirement Plans

The Company also maintains unfunded and non-qualified supplemental executive retirement plans ("SERP") to provide pension benefits in addition to those provided under the qualified pension plan.

Net periodic benefit cost and other amounts recognized in other comprehensive income for the three and nine months ended March 31, 2022 and 2021 (in thousands):

	Three Months Ended					Three Months Ended
	March 31, 2022					March 31, 2021
	Defined Benefit Plan			Supplemental Retirement Plans		Defined Benefit Plan			Supplemental Retirement Plans
Service cost	$	-		$	82	$	-		$	130
Interest cost		149			25		136			18
Expected return on plan assets		(509	)		-		(454	)		-
Amortization of prior net loss		38			17		240			14
Settlement charges		-			-		65			-
Net periodic (benefit) cost	$	(322	)	$	124	$	(13	)	$	162
	Nine Months Ended					Nine Months Ended
	March 31, 2022					March 31, 2021
	Defined Benefit Plan			Supplemental Retirement Plan		Defined Benefit Plan			Supplemental Retirement Plan
Service cost	$	-		$	343	$	-		$	311
Interest cost		446			60		409			65
Expected return on plan assets		(1,528	)		-		(1,365	)		-
Amortization of prior net loss		113			49		719			42
Settlement charges		-			-		158			-
Net periodic (benefit) cost	$	(969	)	$	452	$	(79	)	$	418

The Company made no contributions to the defined benefit plan during the three and nine months ended March 31, 2022.

Employee Stock Ownership Plan

On January 1, 2017, the Company established an Employee Stock Ownership Plan (“ESOP”) to provide eligible employees the opportunity to own Company stock. The ESOP is a tax-qualified retirement plan for the benefit of Company employees. On April 20, 2017, the Holding Company granted a loan to the ESOP in the amount of $14.5 million for the purchase of 1,453,209 shares of the Company’s common stock at a price of $10.00 per share. The loan obtained by the ESOP from the Holding Company to purchase the common stock is payable annually over 15 years at a rate per annum equal to the Prime Rate, reset annually on January 1st (3.25% for 2022). Loan payments are principally funded by cash contributions from the Bank. The loan is secured by the shares purchased, which are held in a suspense account for allocation among participants as the loan is repaid. The balance of the ESOP loan at March 31, 2022 was $9.7 million. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The number of shares committed to be released annually is 96,881 through 2032. Dividends on allocated shares increase participant accounts and are used to purchase additional shares of stock. Participants receive the shares at the end of employment.

Shares held by the ESOP include the following (Dollars in thousands):

	March 31, 2022		June 30, 2021
Allocated to participants		494,510		417,902
Unearned		944,921		1,017,648
Total ESOP shares		1,439,431		1,435,550
Fair value of unearned shares	$	18,057	$	18,491

Total compensation expense recognized in connection with the ESOP for the three and nine months ended March 31, 2022 was $453,000 and $1.4 million, respectively, and for the three and nine months ended March 31, 2021 was $392,000 and $1.1 million, respectively