STOCK OPTION PLAN

6 Months Ended

Mar. 31, 2016

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 six months ended March 31, 2016:

	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		(12,283	)		26.21				211
Forfeited or expired		-			-				-
Options outstanding, March 31, 2016		176,805		$	25.71		2.60	$	3,505

Options exercisable, March 31, 2016		176,805		$	25.71		2.60	$	3,505

	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		6,710			29.69
Vested		(19,518	)		40.77
Forfeited or expired		(727	)		41.77
Nonvested shares outstanding, March 31, 2016		30,467		$	38.36

At March 31, 2016, stock based compensation expense not yet recognized in income totaled $278,978, which is expected to be recognized over a weighted average remaining period of 1.74 years.