Stock Compensation Plans

6 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

STOCK COMPENSATION PLANS Under the Company’s 2003 Stock Option Plan, the Company was able to grant options for up to 300,000 shares of common stock to employees, officers, directors and directors emeriti. Under the Company's 2014 Equity Incentive Plan, 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. Under the Company's 2019 Equity Incentive Plan, which was approved by shareholders on January 28, 2020, the Company is able to grant options and awards or restricted stock (with or

without performance measures) for up to 350,000 shares of common stock, of which 300,000 shares are reserved to be awarded to employees, including officers, and 50,000 shares are reserved to be awarded to 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, and options generally have a maximum contractual term of ten years from the date of grant. At March 31, 2021, there were 29,676 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, 2021, there were 298,000 shares of common stock available which may be awarded as options or restricted stock pursuant to future grant under the 2019 Equity Incentive Plan.

At both March 31, 2021 and 2020, there were no unvested restricted stock awards. There were no restricted stock grants awarded during the six months ended March 31, 2021 and 2020.

Stock option activity for the six months ended March 31, 2021 and 2020 is summarized as follows:


	Six Months Ended March 31, 2021			Six Months Ended March 31, 2020
	Number of Shares	Weighted Average Exercise Price		Number of Shares	Weighted Average Exercise Price
Options outstanding, beginning of period	395,349	$	18.45	378,304	$	18.15
Exercised	(53,564)	9.70		(36,375)	10.30
Granted	1,500	19.13		1,000	26.50
Forfeited	(4,520)	27.57		(8,650)	24.84
Options outstanding, end of period	338,765	$	19.71	334,279	$	18.86

The fair value of stock options is determined using the Black-Scholes valuation model.

The weighted average assumptions for options granted during the six months ended March 31, 2021 were as follows:


Expected volatility	33		%
Expected life (in years)	5
Expected dividend yield	4.76		%
Risk free interest rate	0.38		%
Grant date fair value per share	$	3.26

The aggregate intrinsic value of options exercised during the six months ended March 31, 2021 and 2020 was $947,000 and $628,000, respectively.

At March 31, 2021, there were 158,392 unvested options with an aggregate grant date fair value of $565,000, all of which the Company assumes will vest. The aggregate intrinsic value of unvested options at March 31, 2021 was $897,000. There were 200 options vested during the six months ended March 31, 2021 with a total fair value of $1,000.

At March 31, 2020, there were 154,670 unvested options with an aggregate grant date fair value of $584,000. There were no options that vested during the six months ended March 31, 2020.

Additional information regarding options outstanding at March 31, 2021 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)
$5.86	-	6.00	4,200	$	5.93	1.5	4,200	$	5.93	1.5
9.00			30,000	9.00		2.6	30,000	9.00		2.6
10.26	-	10.71	65,575	10.57		4.0	65,575	10.57		4.0
15.67	-	19.13	104,500	16.50		8.2	25,400	15.67		5.5
26.50	-	27.14	43,990	27.13		8.5	8,798	27.13		8.5
29.69			50,400	29.69		6.5	30,300	29.69		6.5
31.80			40,100	31.80		7.5	16,100	31.80		7.5
			338,765	$	19.71	6.5	180,373	$	16.83	4.9

The aggregate intrinsic value of options outstanding at March 31, 2021 and 2020 was $2.99 million and $1.41 million, respectively.

As of March 31, 2021, unrecognized compensation cost related to unvested stock options was $507,000, which is expected to be recognized over a weighted average life of 2.12 years.