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Stock Plans And Stock Based Compensation
 3 Months Ended
Dec. 31, 2013
Share-based Compensation [Abstract]  
Stock Plans And Stock Based Compensation
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, 2013, options for 51,338 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, 2013 and 2012 is as follows:

 
Three Months Ended December 31, 2013
 
Three Months Ended
December 31, 2012
 
 
 
Shares
 
Weighted
Average
Exercise
Price

 
 
 
Shares
 
Weighted
Average
Exercise
Price

Options outstanding, beginning of period
162,946

 
$
6.96

 
195,626

 
$
7.97

Exercised
(2,600
)
 
4.59

 
—

 
—

Granted
106,000

 
9.00

 
29,000

 
6.00

Options outstanding, end of period
266,346

 
$
7.10

 
224,626

 
$
7.71

 
 
 
 
 
 
 
 
Options exercisable, end of period
83,946

 
$
8.09

 
125,126

 
$
9.54



The aggregate intrinsic value of options outstanding at December 31, 2013 was $569,000.

At December 31, 2013, there were 182,400 unvested options with an aggregate grant date fair value of $429,000, all of which the Company assumes will vest. The aggregate intrinsic value of unvested options at December 31, 2013 was $279,000.  There were 14,600 options with an aggregate grant date fair value of $26,000 that vested during the three months ended December 31, 2013.

At December 31, 2012, there were 99,500 unvested options with an aggregate grant date fair value of $208,000. There were 8,800 options with an aggregate grant date fair value of $13,000 that vested during the three months ended December 31, 2012.

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, adjusted, if appropriate for management's expectations regarding future dividends.  The expected volatility is based on historical volatility of the Company’s stock price.  There were 106,000 options granted during the three months ended December 31, 2013 with an aggregate grant date fair value of $267,000.  There were 29,000 options granted during the three months ended December 31, 2012 with an aggregate grant date fair value of $69,000.

The weighted average assumptions used for options granted during the three months ended December 31, 2013 and 2012 were:
 
2013
 
2012
Expected volatility
39
%
 
45
%
Expected term (in years)
5

 
5

Expected dividend yield
2.56
%
 
—
%
Risk free interest rate
1.35
%
 
0.76
%
Grant date fair value per share
$
2.52

 
$
2.37



Stock Grant Plan
The Company adopted the 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 were 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.  

No MRDP shares were granted to officers or directors during the three months ended December 31, 2013 or 2012.  At December 31, 2013, no shares were available for future awards under the MRDP.

At December 31, 2013, there were no unvested MRDP shares. There were 3,254 MRDP shares that vested during the three months ended December 31, 2013 with an aggregate grant date fair value of $23,000.

At December 31, 2012, there were 3,848 unvested MRDP shares with an aggregated grant date fair value of $28,000. There were 5,613 MRDP shares that vested during the three months ended December 31, 2012 with an aggregated grant date fair value of $57,000. At December 31, 2012, no shares were available for future awards under the MRDP.


Expense for Stock Compensation Plans
Compensation expense for all stock-based plans were as follows:
 
Three Months Ended December 31,
 
2013
 
2012
 
(Dollars in thousands) 
 
Stock
Options
 
Stock
Grants
 
Stock
Options
 
Stock
Grants 
Compensation expense recognized in income
$
22

 
$
2

 
$
11

 
$
13


 
 
As of December 31, 2013, 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
Options
 
Stock
Grants
 
Total
Awards
Remainder of 2014
$
78

 
$
—

 
$
78

2015
98

 
—

 
98

2016
97

 
—

 
97

2017
88

 
—

 
88

2018
55

 
—

 
55

2019
4

 
—

 
4

Total
$
420

 
$
—

 
$
420