SHARE BASED COMPENSATION PLANS

12 Months Ended

Sep. 30, 2015

SHARE BASED COMPENSATION PLANS [Abstract]

NOTE 13. SHARE-BASED COMPENSATION PLANS

The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, 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, 2015, 2014 and 2013.

Year Ended September 30,	2015		2014		2013
	(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $192, $66 and $51, respectively	$	334	$	120	$	103

As of September 30, 2015, stock-based compensation expense not yet recognized in income totaled $0.4 million, which is expected to be recognized over a weighted-average remaining period of 1.93 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, 2015, 2014 and 2013. The intrinsic value of options exercised during the years ended September 30, 2015, 2014 and 2013 were $0.9 million, $1.4 million and $0.8 million, respectively.

Shares are granted each year to executives and senior leadership members under the Company incentive plan. These shares vest at various times ranging from immediately to four years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date. Director shares are issued to the Company’s directors, and these shares vest immediately. The total fair value of director’s shares granted during the years ended September 30, 2015, 2014 and 2013 was $0.2 million, $0.1 million and $0.1 million, 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, 2015; 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, 2015 and 2014.

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

Options outstanding, September 30, 2014		235,766		$	25.20		3.78	$	2,507
Granted		-			-		-		-
Exercised		(46,678	)		22.98		-		925
Forfeited or expired		-			-		-		-
Options outstanding, September 30, 2015		189,088		$	25.74		3.16	$	3,027

Options exercisable end of year		189,088		$	25.74		3.16	$	3,027

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Yrs)		Aggregate Intrinsic 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

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

Nonvested shares outstanding, September 30, 2014		4,000		$	28.61
Granted		51,217			41.10
Vested		(11,215	)		37.81
Forfeited or expired		-			-
Nonvested shares outstanding, September 30, 2015		44,002		$	40.80

	Number of Shares			Weighted Average 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