STOCK OPTION PLAN

6 Months Ended

Mar. 31, 2015

NOTE 8.

STOCK OPTION PLAN

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.

Compensation expense for share based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. The Company assumes no projected forfeitures on its stock based compensation, since actual historical forfeiture rates on its stock based incentive awards has been negligible.

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 for the six months ended March 31, 2015:

	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		-		-		-		-
Forfeited or expired		-		-		-		-
Options outstanding, March 31, 2015		235,766	$	25.20		3.29	$	3,430

Options exercisable, March 31, 2015		235,766	$	25.20		3.29	$	3,430

	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		5,200			35.14
Vested		(5,450	)		33.62
Forfeited or expired		-			-
Nonvested shares outstanding, March 31, 2015		3,750		$	30.38

At March 31, 2015, stock based compensation expense not yet recognized in income totaled $63,000, which is expected to be recognized over a weighted average remaining period of 1.73 years.

- 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.

+ References+ Details