Stock Plans And Stock Based Compensation	3 Months Ended
Dec. 31, 2011
Stock Plans And Stock Based Compensation
Stock Plans And Stock Based Compensation	(8) STOCK PLANS AND STOCK BASED COMPENSATION Stock Option Plans ------------------ Under the Company's stock option plans (the 1999 Stock Option Plan and the 2003 Stock Option Plan), the Company was able to grant options for up to a combined total of 1,622,500 shares of common stock to employees, officers and directors. Shares issued may be purchased in the open market or may be issued from authorized and unissued shares. The exercise price of each option equals the fair market value of the Company's common stock on the date of grant. Generally, options vest in 20% annual installments on each of the five anniversaries from the date of the grant. At December 31, 2011, options for 218,938 shares are available for future grant under the 2003 Stock Option Plan and no shares are available for future grant under the 1999 Stock Option Plan. Activity under the plans for the three months ended December 31, 2011 and 2010 is as follows: Three Months Ended Three Months Ended December 31, 2011 December 31, 2010 ------------------------ ------------------------ Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price ------ -------- -------- --------- Options outstanding, beginning of period 137,726 $ 9.25 194,864 $ 8.71 Granted 33,500 4.01 - - - - Forfeited 2,200 4.55 - - - - ------- ------- Options outstanding, end of period 169,026 $ 8.27 194,864 $ 8.71 ====== ====== Options exercisable, end of period 123,326 174,064 ====== ====== There was no aggregate intrinsic value of options outstanding at December 31, 2011. At December 31, 2011, there were 46,700 unvested options with an aggregate grant date fair value of $69,000, all of which the Company assumes will vest. There was no aggregate intrinsic value of unvested options at December 31, 2011. There were 5,000 options with an aggregate grant date fair value of $6,000 that vested during the three months ended December 31, 2011. At December 31, 2010, there were 20,800 unvested options with an aggregate grant date fair value of $27,000. There were 5,200 options with an aggregate grant date fair value of $7,000 that vested during the three months ended December 31, 2010. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards with the weighted average assumptions noted in the following table. The risk-free interest rate is based on the U.S. Treasury rate of a similar term as the stock option at the particular grant date. The expected life is based on historical data, vesting terms and estimated exercise dates. The expected dividend yield is based on the most recent quarterly dividend on an annualized basis in effect at the time the options were granted. The expected volatility is based on historical volatility of the Company's stock price. There were 33,500 options granted during the three months ended December 31, 2011 with an aggregate grant date fair value of $52,000. There were no options granted during the three months ended December 31, 2010. The Black-Scholes option pricing model was used in estimating the fair value of option grants. The weighted average assumptions used for options granted during the three months ended December 31, 2011 were: Expected Volatility 44% Expected term (in years) 5 Expected dividend yield - -% Risk free interest rate 0.89% Grant date fair value per share $1.56 Stock Grant Plan --------------------- The Company adopted the Management Recognition and Development Plan ("MRDP") in 1998 for the benefit of employees, officers and directors of the Company. The objective of the MRDP is to retain and attract personnel of experience and ability in key positions by providing them with a proprietary interest in the Company. The MRDP allowed for the issuance to participants of up to 529,000 shares of the Company's common stock. Awards under the MRDP are made in the form of shares of common stock that are subject to restrictions on the transfer of ownership and are subject to a five-year vesting period. Compensation expense is the amount of the fair value of the common stock at the date of the grant to the plan participants and is recognized over a five-year vesting period, with 20% vesting on each of the five anniversaries from the date of the grant. There were no MRDP shares granted to officers or directors during the three months ended December 31, 2011 and 2010. At December 31, 2011, there were a total of 15,161 unvested MRDP shares with an aggregated grant date fair value of $155,000. There were 7,231 MRDP shares that vested during the three months ended December 31, 2011 with an aggregated grant date fair value of $79,000. There were 100 MRDP shares forfeited during the three months ended December 31, 2011 with a grant date fair value of $1,000. At December 31, 2011, there were no shares available for future awards under the MRDP. At December 31, 2010, there were a total of 28,992 unvested MRDP shares with an aggregate grant date fair value of $329,000. There were 7,433 MRDP shares that vested during the three months ended December 31, 2010 with and aggregated grant date fair value of $81,000. Expenses for Stock Compensation Plans ------------------------------------------------- Compensation expenses for all stock-based plans were as follows: Three Months Ended December 31, ------------------------------------------ 2011 2010 ---- ---- (Dollars in thousands) Stock Stock Stock Stock Options Grants Options Grants ------- ------ ------- ------ Compensation expense recognized in income $ 2 $ 25 $ 1 $ 44 Related tax benefit recognized - - 9 - - 15 As of December 31, 2011, the compensation expense yet to be recognized for stock based awards that have been awarded but not vested for the years ending September 30 is as follows (dollars in thousands): Stock Stock Total Options Grants Awards ------- ------ ------ 2012 $ 13 $ 80 $ 93 2013 17 39 56 2014 17 2 19 2015 11 - - 11 2016 10 - - 10 2017 2 - - 2 ---- ----- ----- Total $ 70 $ 121 $ 191 ==== ==== ====

Stock Plans And Stock Based Compensation

3 Months Ended

Dec. 31, 2011

Stock Plans And Stock Based Compensation

Stock Plans And Stock Based Compensation

(8) STOCK PLANS AND STOCK BASED COMPENSATION

Stock Option Plans

------------------

Under the Company's stock option plans (the 1999 Stock Option Plan and the 2003 Stock

Option Plan), the Company was able to grant options for up to a combined total of

1,622,500 shares of common stock to employees, officers and directors. Shares issued

may be purchased in the open market or may be issued from authorized and unissued

shares. The exercise price of each option equals the fair market value of the

Company's common stock on the date of grant. Generally, options vest in 20% annual

installments on each of the five anniversaries from the date of the grant. At

December 31, 2011, options for 218,938 shares are available for future grant under the

2003 Stock Option Plan and no shares are available for future grant under the 1999

Stock Option Plan.

Activity under the plans for the three months ended December 31, 2011 and 2010 is as

follows:

Three Months Ended Three Months Ended

December 31, 2011 December 31, 2010

------------------------ ------------------------

Weighted Weighted

Average Average

Exercise Exercise

Shares Price Shares Price

------ -------- -------- ---------

Options outstanding, beginning of

period 137,726 $ 9.25 194,864 $ 8.71

Granted 33,500 4.01 - - - -

Forfeited 2,200 4.55 - - - -

------- -------

Options outstanding, end of period 169,026 $ 8.27 194,864 $ 8.71

====== ======

Options exercisable, end of period 123,326 174,064

====== ======

There was no aggregate intrinsic value of options outstanding at December 31, 2011.

At December 31, 2011, there were 46,700 unvested options with an aggregate grant date

fair value of $69,000, all of which the Company assumes will vest. There was no

aggregate intrinsic value of unvested options at December 31, 2011. There were 5,000

options with an aggregate grant date fair value of $6,000 that vested during the three

months ended December 31, 2011.

At December 31, 2010, there were 20,800 unvested options with an aggregate grant date

fair value of $27,000. There were 5,200 options with an aggregate grant date fair

value of $7,000 that vested during the three months ended December 31, 2010.

The Company uses the Black-Scholes option pricing model to estimate the fair value of

stock-based awards with the weighted average assumptions noted in the following table.

The risk-free interest rate is based on the U.S. Treasury rate of a similar term as

the stock option at the particular grant date. The expected life is based on

historical data, vesting terms and estimated exercise dates. The expected dividend

yield is based on the most recent quarterly dividend on an annualized basis in effect

at the time the options were granted. The expected volatility is based on historical

volatility of the Company's stock price. There were 33,500 options granted during the

three months ended December 31, 2011 with an aggregate grant date fair value of

$52,000. There were no options granted during the three months ended December 31,

2010.

The Black-Scholes option pricing model was used in estimating the fair value of option

grants. The weighted average assumptions used for options granted during the three

months ended December 31, 2011 were:

Expected Volatility 44%

Expected term (in years) 5

Expected dividend yield - -%

Risk free interest rate 0.89%

Grant date fair value per share $1.56

Stock Grant Plan

---------------------

The Company adopted the Management Recognition and Development Plan ("MRDP") in 1998

for the benefit of employees, officers and directors of the Company. The objective of

the MRDP is to retain and attract personnel of experience and ability in key positions

by providing them with a proprietary interest in the Company.

The MRDP allowed for the issuance to participants of up to 529,000 shares of the

Company's common stock. Awards under the MRDP are made in the form of shares of

common stock that are subject to restrictions on the transfer of ownership and are

subject to a five-year vesting period. Compensation expense is the amount of the fair

value of the common stock at the date of the grant to the plan participants and is

recognized over a five-year vesting period, with 20% vesting on each of the five

anniversaries from the date of the grant.

There were no MRDP shares granted to officers or directors during the three months

ended December 31, 2011 and 2010.

At December 31, 2011, there were a total of 15,161 unvested MRDP shares with an

aggregated grant date fair value of $155,000. There were 7,231 MRDP shares that

vested during the three months ended December 31, 2011 with an aggregated grant date

fair value of $79,000. There were 100 MRDP shares forfeited during the three months

ended December 31, 2011 with a grant date fair value of $1,000. At December 31, 2011,

there were no shares available for future awards under the MRDP.

At December 31, 2010, there were a total of 28,992 unvested MRDP shares with an

aggregate grant date fair value of $329,000. There were 7,433 MRDP shares that vested

during the three months ended December 31, 2010 with and aggregated grant date fair

value of $81,000.

Expenses for Stock Compensation Plans

-------------------------------------------------

Compensation expenses for all stock-based plans were as follows:

Three Months Ended December 31,

------------------------------------------

2011 2010

---- ----

(Dollars in thousands)

Stock Stock Stock Stock

Options Grants Options Grants

------- ------ ------- ------

Compensation expense recognized in income $ 2 $ 25 $ 1 $ 44

Related tax benefit recognized - - 9 - - 15

As of December 31, 2011, the compensation expense yet to be recognized for stock based

awards that have been awarded but not vested for the years ending September 30 is as

follows (dollars in thousands):

Stock Stock Total

Options Grants Awards

------- ------ ------

2012 $ 13 $ 80 $ 93

2013 17 39 56

2014 17 2 19

2015 11 - - 11

2016 10 - - 10

2017 2 - - 2

---- ----- -----

Total $ 70 $ 121 $ 191

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