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Stock Award Plans
 12 Months Ended
Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Option Plans
STOCK AWARD PLANS

The Company has one equity-based compensation plan which was approved by stockholders and provides for a combination of stock options and stock grants. Stockholders authorized 5,000,000 shares of common stock to be reserved pursuant to the 2011 Incentive Plan. Under the Plan, 4,357,600 shares remain available for issuance.

Stock option awards are granted with an exercise price equal to the market price of the Company's stock at the date of grant; those option awards generally vest based on 5 years of continuous service and have 10-year contractual terms. The Company's policy is to issue new shares upon option exercises. The fair value of options granted is estimated on the date of grant using the Black-Scholes option-pricing model. This model requires input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Expected volatility is based on the historical volatility of the Company's stock. The risk-free interest rate is based on the U.S. Treasury yield curve that is in effect at the time of grant with a remaining term equal to the options' expected life. The expected term represents the period of time that options granted are expected to be outstanding.

The following weighted-average assumptions were used to estimate the fair value of stock options granted during the periods indicated:
Year ended September 30,
2013
2012
2011
Annual dividend yield
—
%
2.34
%
1.89
%
Expected volatility
—
%
31
%
30
%
Risk-free interest rate
—
%
0.77
%
2.00
%
Expected life
0.0 years

4.5 years

4.5 years



A summary of stock option activity under the Plan as of 2013 and changes during the year is as follows:
Options
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(In thousands)
Outstanding at September 30, 2012
2,300,106

$
20.60

4
$
1,269

Granted
—

—

 
 
Exercised
(236,691
)
18.12

 
 
Forfeited
(159,837
)
20.31

 
 
Outstanding at September 30, 2013
1,903,578

$
20.93

4
$
2,563

Exercisable at September 30, 2013
1,615,828

$
21.82

3
$
1,196



Miscellaneous information related to stock options is presented below:
 
2013
2012
2011
 
(Dollars in thousands)
Compensation cost for stock options
$
473

$
848

$
1,087

Weighted avg. grant date FV
3.24

3.53

3.89

Total intrinsic value of options exercised
781

125

259

Grant date FV of options exercised
791

54

312

Cash received from option exercises
4,261

357

1,630

Tax benefit realized for option exercises
1

—

37



A summary of the Company's non-vested stock options as of 2013 and changes during the year is as follows:
Non-vested Options
Shares
Weighted
Average
Grant Date
Fair Value
Outstanding at September 30, 2012
614,272

$
3.20

Granted
—

—

Vested
(283,407
)
2.95

Forfeited
(43,115
)
3.25

Outstanding at September 30, 2013
287,750

$
3.44



As of September 30, 2013, unrecognized compensation cost for stock options, net of forfeitures, totaled $740,123, which is expected to be recognized over a weighted average remaining period of 2.1 years.


The Company also grants shares of restricted stock awards pursuant to its 2011 Incentive Plan. These shares of restricted stock vest over a period of one to seven years. The Company had a total of 834,935 shares of restricted stock issued as of September 30, 2013, with a fair market value at the date of grant of $14.2 million. At the prior year end, the Company had a total of 630,735 shares issued with a fair market value at the date of grant of $10.7 million.
A summary of the Company's non-vested share awards as of 2013 and changes during the year is as follows:
Non-vested Share Awards
Shares
Weighted
Average
Grant Date
Fair Value
Outstanding at September 30, 2012
189,609

 
Granted
268,750

 
Vested
(225,542
)
 
Forfeited
(23,150
)
 
Outstanding at September 30, 2013
209,667

$
15.89

The Company accounts for restricted stock grants by recording the fair value of the grant to compensation expense over the vesting period. Compensation expense related to restricted stock was $2,815,049, $1,992,000 and $1,537,000 for the years ended 2013, 2012 and 2011, respectively.