Employee Stock Ownership Plan

3 Months Ended

Sep. 30, 2025

Employee Stock Ownership Plan [Abstract]

Employee Stock Ownership Plan

Note 8. Employee Stock Ownership Plan

The Company sponsors a leveraged employee stock ownership plan (the "ESOP") that covers all nonunion employees who work 1,000 or more hours per year and are employed on June 30. The Company makes annual contributions to the ESOP equal to the ESOP's debt service less dividends on unallocated shares received by the ESOP. All dividends on unallocated shares received by the ESOP are used to pay debt service. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. As the debt is repaid, shares are released and allocated to active employees, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with FASB ASC 718-40 “Share-based Payments.” Accordingly, the shares purchased by the ESOP are reported as Unearned ESOP shares in the balance sheet and the statement of changes in stockholders’ equity. As shares are released or committed-to-be-released, the Company reports compensation expense equal to the current average market price of the shares, and the shares become outstanding for earnings-per-share (EPS) computations. The ESOP borrowed from the Company an amount equal to the purchase price of the ESOP shares. The current outstanding loan will be repaid in fifteen (15) equal annual installments of principal which commenced June 2021. The unpaid balance bears interest at a fixed rate of 3.00% per annum. ESOP compensation expense was $247,344 and $123,194 for the three-month periods ended September 30, 2025 and 2024, respectively.

The ESOP shares as of September 30, 2025 and 2024 were as follows:

	September 30, 2025		September 30, 2024
Allocated shares		374,656		437,201
Committed-to-be-released shares		5,295		5,417
Unreleased shares		184,522		206,070
Total shares held by the ESOP		564,473		648,688
Fair value of unearned shares	$	8,619,023	$	6,200,646

The Company may at times be required to repurchase shares at the ESOP participants’ request at the shares’ fair market value. During the three months ended September 30, 2025 and 2024, the Company did not repurchase shares held by the ESOP.

The ESOP allows for eligible participants to take whole share distributions from the Plan on specific dates in accordance with the provision of the Plan. Total share distributions from the ESOP during the three months ended September 30, 2025 totaled 30,826, of which 20,985 were liquidated and 9,841 were transferred. Total share distributions from the ESOP during the three months ended September 30, 2024 totaled 14,357, of which 13,931 were liquidated and 426 were transferred.