SHARE-BASED COMPENSATION PLANS

All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company with respect to its common stock on October 4, 2018.

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, 2018, 2017 and 2016.



Year Ended September 30,	2018		2017		2016
	(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $3,139, $3,907, and $192, respectively	$	7,878	$	6,486	$	559

As of September 30, 2018, stock-based compensation expense not yet recognized in income totaled $17.0 million, which is expected to be recognized over a weighted-average remaining period of 3.59 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, 2018, 2017 or 2016. The intrinsic value of options exercised during the years ended September 30, 2018, 2017 and 2016 were $1.9 million, $1.8 million and $1.5 million, respectively.

Shares have previously been granted each year to executives and senior leadership members under the applicable 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, 2018, 2017 and 2016 was $1.1 million, $0.5 million and $0.2 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, 2018; however, previously awarded options were exercised under this plan during the year ended September 30, 2017.

In addition, during the first and second quarters of fiscal 2017, shares were granted to certain named executive officers (“NEOs”) of the Company in connection with their signing of employment agreements with the Company. These stock awards vest in equal installments over eight years.

The following tables show the activity of options and share awards (including shares of restricted stock subject to vesting and fully-vested restricted stock) granted, exercised or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2018 and 2017.



	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, 2017	227,271		$	7.54	2.28	$	4,225
Granted	—		—		—	—
Exercised	(71,310	)	5.48		—	1,909
Forfeited or expired	—		—		—	—
Options outstanding, September 30, 2018	155,961		$	8.48	1.78	$	2,974

Options exercisable end of year	155,961		$	8.48	1.78	$	2,974



	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, 2016	376,680		$	8.58	2.68	$	4,379
Granted	—		—		—	—
Exercised	(88,158	)	11.13		—	1,790
Forfeited or expired	(61,251	)	9		—	1,464
Options outstanding, September 30, 2017	227,271		$	7.54	2.28	$	4,225

Options exercisable end of year	227,271		$	7.54	2.28	$	4,225



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

Nonvested shares outstanding, September 30, 2017	913,578		$	28.99
Granted	354,108		30.36
Vested	(253,944	)	27.49
Forfeited or expired	(7,929	)	23.27
Nonvested shares outstanding, September 30, 2018	1,005,813		$	29.89



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

Nonvested shares outstanding, September 30, 2016	61,968		$	13.79
Granted	949,812		29.16
Vested	(87,405	)	21.41
Forfeited or expired	(10,797	)	18.80
Nonvested shares outstanding, September 30, 2017	913,578		$	28.99