As part of the stock offering, the Bank established the Colonial Federal Savings Bank Employee Stock Ownership Plan ("ESOP') to provide eligible employees of the Bank the opportunity to own Company Stock. The ESOP is a tax-qualified retirement plan for the benefit of Bank employees. Contributions are allocated to eligible participants on the basis of compensation, subject to federal limits. The number of shares committed to be released per year is 10,226.

The ESOP funded its purchase of 255,648 shares through a loan from the Company equal to 100% of the purchase price of the common stock. The ESOP trustee will repay the loan principally through the Bank's contributions to the ESOP over the loan term of 25 years. At March 31, 2022, the principal balance on the ESOP loan was $2.6 million.


	March 31, 2022
Shares held by the ESOP include the following:
Committed to be allocated		2,027
Unallocated		253,621
Total		255,648

The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (the "Pentegra DB Plan”), a tax-qualified defined benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code.

Pension expense under the Pentegra DB Plan amounted to $180,000 and $195,000 for the three months ended March 31, 2022 and 2021, respectively, and $555,000 and $585,000 for the nine months ended March 31, 2022 and 2021, respectively. There were no contributions made to the Pentegra DB Plan during the three months ended March 31, 2022 and 2021, respectively.

The Bank has a savings plan which is intended to qualify under Section 401(k) of the Internal Revenue Code. The plan provides for voluntary contributions by participating employees ranging from 2% to 15% of their compensation, subject to certain limitations. The Bank matches 10% of the employee’s voluntary contributions up to 3% of their compensation. Employer 401(k) contribution expense amounted to $7,000 and $10,000 for the three months ended March 31, 2022 and 2021 and $27,000 and $29,000 for the nine months ended March 31, 2022 and 2021

The Bank has entered into a Supplemental Executive Retirement Plan (the “SERP”) with certain officers, which provides for payments upon attaining the retirement age noted in the SERP. The present value of these future payments is provided over the remaining terms of the officers’ employment and at March 31, 2022 and June 30, 2021, the accrued liability amounted to $799,000 and $748,000, respectively. SERP expense for the nine months ended March 31, 2022 and 2021 amounted to $52,000 and $62,000, respectively In connection with these SERPs, the Bank purchased life insurance policies, which had a cash surrender value of $5,677,000 and $4,922,000 at March 31, 2022 and June 30, 2021, respectively.

In addition, the Bank provides death benefits for officers and directors of the Bank under the terms of Split Dollar Agreements. The Bank has purchased life insurance contracts in connection with these agreements and the cash surrender value of the policies at March 31, 2022 and June 30, 2021 amounted to $4,391,000 and $4,328,000, respectively. For the nine months ended March 31, 2022 and 2021, post-retirement expense related to these obligations amounted to $41,000 and $29,000, respectively.