Stock Plans And Stock Based Compensation

3 Months Ended

Dec. 31, 2015

Stock Plans And Stock Based Compensation

STOCK COMPENSATION PLANS AND STOCK BASED COMPENSATION

Stock Compensation Plans

Under the Company’s prior stock compensation plans (1999 Stock Option Plan, 2003 Stock Option Plan and 1998 Management Recognition and Development Plan ("MRDP")), the Company was able to grant options and awards for restricted stock for up to a combined total of 2,151,500 shares of common stock to employees, officers, directors and directors emeriti. Under the Company's 2014 Equity Incentive Plan, which was approved by shareholders on January 27, 2015, the Company is able to grant options and awards of restricted stock (with or without performance measures) for up to 352,366 shares of common stock to employees, officers, directors and directors emeriti. 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 and restricted stock vest in 20% annual installments on each of the five anniversaries from the date of the grant. At December 31, 2015, there were 224,366 shares of restricted stock or options for common shares available for future grant under the 2014 Equity Incentive Plan. At December 31, 2015, there were no options or awards for restricted stock available for future grant under the 1999 Stock Option Plan, the 2003 Stock Option Plan, or the MRDP.

Activity under the Plans for the three months ended December 31, 2015 and 2014 is as follows:



	Three Months Ended December 31, 2015				Three Months Ended December 31, 2014
	Number of Shares		Weighted Average Exercise Price		Number of Shares		Weighted Average Exercise Price
Options outstanding, beginning of period	341,300		$	8.73	221,400		$	7.49
Exercised	(5,300	)	7.88		(5,300	)	4.62
Forfeited	(400	)	5.86		(200	)	4.55
Options outstanding, end of period	335,600		$	8.74	215,900		$	7.57

Options exercisable, end of period	101,800		$	6.75	69,500		$	6.18

The aggregate intrinsic value of options outstanding at December 31, 2015 was $1.1 million.

At December 31, 2015, there were 233,800 unvested options with an aggregate grant date fair value of $506,000, all of which the Company assumes will vest. The aggregate intrinsic value of unvested options at December 31, 2015 was $535,000. There were 28,500 options with an aggregate grant date fair value of $67,000 that vested during the three months ended December 31, 2015.

At December 31, 2014, there were 146,400 unvested options with an aggregate grant date fair value of $363,000. There were 37,700 options with an aggregate grant date fair value of $86,000 that vested during the three months ended December 31, 2014.

Expense for Stock Compensation Plans

Compensation expense during the three months ended December 31, 2015 and 2014 for all stock-based plans was as follows (dollars in thousands):



	Three Months Ended December 31,
	2015		2014
	Stock Options		Stock Options
Compensation expense	$	37	$	28
Less: related tax benefit recognized	4		2
Total	$	41	$	30

The compensation expense to be recognized in the future years ending September 30 for stock options that have been awarded as of December 31, 2015 is as follows (dollars in thousands):



	Stock Options
Remainder of 2016	$	115
2017	146
2018	115
2019	58
2020	36
Total	$	470