Stock Compensation Plans And Stock Based Compensation

6 Months Ended

Mar. 31, 2016

Stock Compensation 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 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 March 31, 2016, there were 226,866 shares of common stock available which may be awarded as options or restricted stock pursuant to future grant under the 2014 Equity Incentive Plan. At March 31, 2016, 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. At March 31, 2016 and 2015, there were no unvested restricted stock grant shares.

Activity under the Plans for the six months ended March 31, 2016 and 2015 is as follows:



	Six Months Ended March 31, 2016				Six Months Ended March 31, 2015
	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	(10,220	)	8.37		(5,300	)	4.62
Forfeited	(2,900	)	9.96		(200	)	4.55
Options outstanding, end of period	328,180		$	8.73	215,900		$	7.57

The aggregate intrinsic value of options outstanding at March 31, 2016 was $1.28 million.

At March 31, 2016, there were 226,100 unvested options with an aggregate grant date fair value of $486,000, all of which the Company assumes will vest. The aggregate intrinsic value of unvested options at March 31, 2016 was $691,000. There were 33,700 options with an aggregate grant date fair value of $82,000 that vested during the six months ended March 31, 2016.

At March 31, 2015, there were 141,200 unvested options with an aggregate grant date fair value of $348,000. There were 42,900 options with an aggregate grant date fair value of $100,000 that vested during the six months ended March 31, 2015.

Additional information regarding options outstanding at March 31, 2016 is as follows:



	Options Outstanding				Options Exercisable
Range of Exercise Prices ($)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
$ 4.01 - 4.55	30,200	$	4.22	4.8	26,400	$	4.26	4.7
5.86 - 6.00	58,000	5.92		6.5	34,400	5.92		6.5
9.00	91,600	9.00		7.6	34,000	9.00		7.6
10.26 - 10.71	148,380	10.57		9.0	7,280	10.37		7.8
	328,180	$	8.73	7.8	102,080	$	6.83	6.5

Expense for Stock Compensation Plans

Compensation expense during the six months ended March 31, 2016 and 2015 for all stock-based plans was as follows (dollars in thousands):



	Six Months Ended March 31,
	2016			2015
	Stock Options			Stock Options
Compensation expense	$	84		$	58
Less: related tax benefit recognized	(9		)	(2		)
Total	$	75		$	56

The compensation expense to be recognized in the years ending September 30 for stock options that have been awarded as of March 31, 2016 is as follows (dollars in thousands):



	Stock Options
Remainder of 2016	$	77
2017	146
2018	115
2019	58
2020	35
Total	$	431

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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