STOCK OPTION PLAN

3 Months Ended

Dec. 31, 2015

NOTE 7.

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 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 three months ended December 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, 2015		189,088		$	25.74		3.16	$	3,027
Granted		-			-				-
Exercised		(6,111	)		28.90				99
Forfeited or expired		-			-				-
Options outstanding, December 31, 2015		182,977		$	25.64		2.93	$	3,701

Options exercisable, December 31, 2015		182,977		$	25.64		2.93	$	3,701

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

Nonvested shares outstanding, September 30, 2015		44,002		$	40.80
Granted		1,000			45.00
Vested		(15,208	)		41.54
Forfeited or expired		(313	)		41.77
Nonvested shares outstanding, December 31, 2015		29,481		$	40.56

At December 31, 2015, stock based compensation expense not yet recognized in income totaled $377,063, which is expected to be recognized over a weighted average remaining period of 1.83 years.