CASH 2018 Annual Report

145 The Company completed the public offering of $75.0 million of 5.75% fixed-to-floating rate subordinated debentures during fiscal year 2016. These notes are due August 15, 2026. The subordinated debentures were sold at par, resulting in net proceeds of approximately $73.9 million. At September 30, 2018, the Company had $73.5 million in subordinated debentures, net of issuance costs of $1.5 million. Accumulated interest expense on the subordinated debentures was $8.6 million as of September 30, 2018. As of September 30, 2018, the Company was the lessee on three capital leases, two equipment leases and one property lease. At September 30, 2018, the portion of the liability expected to be expensed and amortized beyond 12 months was $1.8 million. The majority of the $1.8 million is related to the Urbandale, Iowa retail branch location . NOTE 10. EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split with respect to the Company's common stock effected on October 4, 2018. The Company maintains an Employee Stock Ownership Plan (“ESOP”) for eligible employees who have 1,000 hours of employment with the Bank, have worked at least one year at the Bank and who have attained age 21. ESOP expense of $2,073,000, $1,668,000 and $1,150,000 was recorded for the years ended September 30, 2018, 2017 and 2016, respectively. Contributions of $2,011,040, $1,606,102 and $1,174,682 were made to the ESOP during the years ended September 30, 2018, 2017 and 2016, respectively. Contributions to the ESOP and shares released from suspense are allocated among ESOP participants on the basis of compensation in the year of allocation. Benefits generally become 100% vested after seven years of credited service. Prior to the completion of seven years of credited service, a participant who terminates employment for reasons other than death or disability receives a reduced benefit based on the ESOP’s vesting schedule. Forfeitures are reallocated among remaining participating employees in the same proportion as contributions. Benefits are payable in the form of stock upon termination of employment. The Company’s contributions to the ESOP are not fixed, so benefits payable under the ESOP cannot be estimated. For the years ended September 30, 2018, 2017 and 2016, 72,996 shares, 61,458 shares and 58,143 shares, from the suspense account, with a fair value of $27.55, $26.13 and $20.20 per share, respectively, were released. For the years ended September 30, 2018, 2017 and 2016, allocated shares and total ESOP shares reflect 6,687 shares, 42,378 shares and 46,506 shares, respectively, withdrawn from the ESOP by participants who were no longer with the Company or by participants diversifying their holdings. At September 30, 2018, 2017 and 2016, there were 3,987, 4,437 and 8,130 shares purchased, respectively, for dividend reinvestment. Year-end ESOP shares are as follows: At September 30, 2018 2017 2016 (Dollars in Thousands) Allocated shares 812,346 768,657 788,616 Unearned shares — — Total ESOP shares 812,346 768,657 788,616 Fair value of unearned shares $ — $ — $ — The Company also has a profit sharing plan covering substantially all full-time employees. Contribution expense to the profit sharing plan, included in compensation and benefits, for the years ended September 30, 2018, 2017 and 2016 was $2.2 million, $1.6 million and $1.3 million, respectively.