Employee Stock Ownership Plan (ESOP)

9 Months Ended

Jun. 30, 2025

Employee Stock Ownership Plan (ESOP)

Note 8: Employee Stock Ownership Plan (ESOP)

In connection with the Conversion in July 2023, the Company established a leveraged ESOP for eligible employees of the Bank. The ESOP trust purchased 81,838 shares of Company common stock at the initial public offering price of $10.00 per share financed by the 15-year term loan with the Company. The interest rate of the loan is 8.50% and the maturity date is December 31, 2037. The loan is secured by shares purchased with the loan proceeds and will be repaid by the ESOP with funds from the Bank’s discretionary contributions to the ESOP. When the loan payments are made, ESOP shares are allocated to the participants based on relative compensation. The Bank recognizes expense based on the average fair value of the shares to be allocated to the ESOP participants.

Activity in the ESOP for the nine months ended June 30, 2025 and 2024 is as follows:


	For the Nine Months Ended
	June 30,
	2025	2024
Shares committed to be released to participants	—	—
Shares allocated to participants	10,912	5,456
Unreleased shares	70,926	76,382

ESOP shares at end of plan year	81,838	81,838

Fair value of unreleased shares	$ 1,039,066	$ 1,031,157

Mercer Bancorp, Inc. 10-Q