SHARE BASED COMPENSATION PLANS

12 Months Ended

Sep. 30, 2014

SHARE BASED COMPENSATION PLANS [Abstract]

NOTE 12. SHARE BASED COMPENSATION PLANS

The Company maintains the 2002 Omnibus Incentive Plan which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company. Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2014, 2013 and 2012.

Year Ended September 30,	2014		2013		2012
	(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $66, $51 and $30, respectively	$	120	$	103	$	76

As of September 30, 2014, stock-based compensation expense not yet recognized in income totaled $56,000 which is expected to be recognized over a weighted average remaining period of 1.90 years.

At grant date, the fair value of options awarded to recipients is estimated using a Black-Scholes valuation model. The exercise price of stock options equals the fair market value of the underlying stock at the date of grant. Options are issued for 10 year periods with 100% vesting generally occurring either at grant date or over a four year period. No options were granted during the years ended September 30, 2014, 2013 and 2012. The intrinsic value of options exercised during the years ended September 30, 2014, 2013 and 2012 were $1.4 million, $807,000 and $117,000, respectively.

Shares are granted each year to Directors which vest immediately. The fair value is determined based on the fair market value of the Company’s stock on the grant date. The total fair value of director’s shares granted during the years ended September 30, 2014, 2013 and 2012 was $124,000, $113,000 and $79,000, respectively.

In addition to the Company’s 2002 Omnibus Incentive Plan, the Company also maintains the 1995 Stock Option and Incentive Plan. No new options were, or could have been, awarded under the 1995 plan during the year ended September 30, 2014; however, previously awarded options were exercised under this plan during the year.

The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2014 and 2013.

						Weighted
				Weighted		Average
	Number			Average		Remaining		Aggregate
	of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (Yrs)		Value
	(Dollars in Thousands, Except Share and Per Share Data)

Options outstanding, September 30, 2013		318,648		$	24.44		4.18	$	4,376
Granted		-			-		-		-
Exercised		(82,882	)		22.31		-		1,389
Forfeited or expired		-			-		-		-
Options outstanding, September 30, 2014		235,766		$	25.20		3.78	$	2,507

Options exercisable end of year		235,766		$	25.20		3.78	$	2,507

						Weighted
				Weighted		Average
	Number			Average		Remaining		Aggregate
	of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (Yrs)		Value
	(Dollars in Thousands, Except Share and Per Share Data)

Options outstanding, September 30, 2012		389,358		$	23.52		5.08	$	1,199
Granted		-			-
Exercised		(65,399	)		18.09				807
Forfeited or expired		(5,311	)		35.06				-
Options outstanding, September 30, 2013		318,648		$	24.44		4.18	$	4,376

Options exercisable end of year		315,898		$	24.40		4.16	$	4,352

The following tables show the activity of nonvested (restricted) shares granted, vested, or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2014 and 2013.

	Number of			Weighted Average
	Shares			Fair Value At Grant
	(Dollars in Thousands, Except Share and Per Share Data)

Nonvested shares outstanding, September 30, 2013		4,000		$	25.67
Granted		4,267			37.82
Vested		(4,267	)		35.07
Forfeited or expired		-			-
Nonvested shares outstanding, September 30, 2014		4,000		$	28.61

	Number of			Weighted Average
	Shares			Fair Value At Grant
	(Dollars in Thousands, Except Share and Per Share Data)

Nonvested shares outstanding, September 30, 2012		-		$	-
Granted		8,900			24.20
Vested		(4,900	)		23.00
Forfeited or expired		-			-
Nonvested shares outstanding, September 30, 2013		4,000		$	25.67

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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